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Does CSX Corporation (CSX) Deserve To Get Investors Attention ?

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In the previous session, stock of CSX Corporation (CSX) opened at $52.04 and last traded at $53.29 x 100. More than 49,877,067 shares exchanged hands compared to an average daily volume of 5,902,980 shares. At the current pps, the market capitalization stands at 47.305B.

Fundamentals you simply cannot ignore

Investors try to use stocks with high beta values to quickly recoup their investments after sharp market losses. CSX Corporation (CSX) currently has a Beta value of 1.20 . Beta is a measurement of a stock’s price fluctuations, which is often called volatility and is used by investors to gauge how quickly a stock’s price will rise or fall. A stock with a beta of greater than 1.0 is riskier and has greater price fluctuations, while stocks with beta values of less than 1.0 are steadier and generally larger companies. Beta is often measured against the S&P; 500 index. An S&P; 500 stock with a beta of 2.0 produced a 20 percent increase in returns during a period of time when the S&P; 500 Index grew only 10 percent. This same measurement also means the stock would lose 20 percent when the market dropped by only 10 percent. Next, let’s take a look at CSX Corporation (CSX) current P/E ratio. CSX Corporation (CSX) currently has a PE ratio of 27.27. PE ratio is an important parameter to look at when trading a stock mostly because it is easy to calculate. There are a couple of ways to calculate PE ratio either by dividing share price by earnings per share or dividing the market cap by net income. It is important to note that the earnings are usually taken from the trailing twelve months (TTM). Nevertheless, P/E tells us how much an investor is willing to pay for $1 of a company’s earnings. The long-term average P/E is around 15, so on average, investors are willing to pay $15 for every dollar of earnings. Another useful way to look at this: Turn the P/E ratio around to look at the E/P ratio, which when expressed as a percentage gives us the earnings yield. For instance: 1/15 gives us an earnings yield of 6.67%.

While we have already looked at CSX Corporation (CSX) beta and P/E ratio, the EPS cannot be ignored. CSX Corporation (CSX) EPS for the trailing twelve months was 1.94. Traders and investors often use earnings per share (TTM) to determine a company’s profitability for the past year. So in essence, EPS is the amount of a company’s net income per share of common stock. Earnings per share equal the company’s net income less any dividends paid on preferred stock divided by the weighted average number of common stock shares outstanding during the year. CSX Corporation (CSX) is estimated to release its next earnings report on 12 / 2017 (N/A-Not know at this time). It would be interesting to see how the earnings fair out considering the recent developments.

 The Analyst Chirp:

CSX Corporation (CSX) has received an average target price from analysts of $59.24 amounting to a recommendation rating of Overweight. That comes from 28 different analysts. Perhaps, the driver for that assessment comes from the company’s valuations. Right now, we are looking at a median price-to-earnings ratio for this calendar year of 25.99. To give a sense of trend, the same data point on the estimate for next year is currently sitting at 21.57 times earnings. Drilling down a bit further, this quarter, we are looking at an average estimate from analysts for earnings per share level of 25.00. That shift to 17.00 heading into next quarter.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of argusjournal.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please click HERE

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Bitcoin, Ripple, Ethereum are crashing and here’s why

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All hell is breaking loose on cryptocurrency this week. Bitcoin is currently trading at $10,805 as we write this article. Earlier on Monday, Bitcoin was trading at $14K+ and looks like investors have already lost over ~40% in a span of 2 days.

Let’s blame is on China for now. China, as we all know, is the major generator (miner) of bitcoin that requires a high magnitude of the energy-intensive process of solving complex math problems to add transactions to the Blockchain. For the novices, Bitcoin mining is estimated to use up to 4 gigawatts of electricity, equivalent to three nuclear reactors’ production levels. This is the prime reason why China’s government is planning to shut down Bitcoin miners in its latest crackdown on the cryptocurrency. It’s important to note that the crackdown is not limited to China. Government agencies in India, South Korea and across the globe have cautioned investors to stay away from the high volatility in daily bitcoin trading.

Ethereum dropped more than 30 percent since yesterday while Ripple, the third-largest digital currency by market capitalization, briefly fell 40 percent.

 

 

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of argusjournal.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please click HERE

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Should you spew Intel Corp. (NASDAQ:INTC)?

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We are going to take a deep look at Intel Corp. (NASDAQ:INTC) to get a better view of the company and its prevailing status, as well as the prospect it may offer for investors. Today’s prime focus will be a fundamental assessment of the equity from top to bottom.

As such, let’s begin with the top line, i.e. revenue trends. Last quarter, the firm saw its overall revenue come at $16.15B. That represents a change in revenues, on a quarterly/yearly basis, of 0.02%. If it is translated into sequential terms, the firm witnessed sales grow by 0.09% from quarter to quarter.

It’s important to track the top line data. There’s no better way to compute the end market’s reception of a firms products. But no one wins without bottom line performance, which is what is required to look at next. Intel Corp. (NASDAQ: INTC) is intriguing when segregated to its core data. The cost of selling goods in preceding quarter was $6.13B, resulting in a gross basic income of $10.02B. For shareholders, provided the total diluted due shares of 4.82B, this means earnings per share of $0.94. Note, this assesses with a consensus analyst projection of $0.72 in EPS for its next quarterly report.

Given that data, now is the time to turn to a thorough glance across analyst projections for the firm going forward. At present, analysts have a consensus average recommendation of Overweight. This is grounded on a total of 38 analysts. While we don’t recommend taking analyst calls as face value strategies for action in a portfolio, we do consider it is vital to note where consensus is on an equity to understand what basic assumptions are possibly already discounted into the pricing of shares. As far as price targets, market analysts have an average target of $46.64. In addition, for next year, estimates of a fiscal year forecast is 3.25 in total EPS. On a median price to earnings ratio, that outlook results in a valuation of $12.84 times earnings.

For Intel Corp. (NASDAQ: INTC), the firm presently holds around $9.08B in cash. That cash is balanced against around $4.14B in total current liabilities. The firm’s debt is $growing, while total assets are $127.09B balanced by total liablities of $55.28B. The free cash flow last quarter was $3.29B, representing a net change in cash of $(2.61B). On a net operating level, the cash flow was about $6.26B.

Let’s take a look at the technical analysis. The Barchart Technical Opinion rating is a 8% Sell with a Weakest short term outlook on maintaining the current direction. Longer term, the trend strength is Minimum. The market is approaching oversold territory. Be watchful of a trend reversal.

We will apprise the interesting story of Intel Corp. (NASDAQ: INTC) as new events transpire.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of argusjournal.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please click HERE

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What will happen to Cisco Systems Inc. (NASDAQ:CSCO) next?

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Today, we are going to evaluate Cisco Systems, Inc. (CSCO) so as to get clarity on this organization and its current standing from a fundamental perspective. In that process, we hope to give some insight into what this stock may offer as an investment opportunity for prospective investors. To accomplish that, we will be moving from top to bottom in our evaluation. As such, our first point of focus will be a look at the company from a revenue perspective.

Over the course of the prior fiscal quarter, the company saw sales of 12.14B[3. Sales mrq]. That number needs context to grant us any insight: by comparison, we can see an overall change in revenues, on a quarterly year/year basis, of -0.02%. However, in sequential terms, the situation looks a little different, with sales grow by 0% from quarter to quarter. While revenue analysis gives us a strong sense of changing demand trends in the company?s end market, and how the company is executing in terms of its relationship with potential customers, real shareholder value is only truly created by profitability. With this in mind, we turn to the company?s bottom line data.

Cisco Systems, Inc. (CSCO) may offer even more interest as an object of analysis if we zoom in a bit more and look at some of its core trends. For example, the cost of selling goods last quarter was 4.63B, which yielded a gross basic income of 7.51B.

The company?s recently reported data shows total diluted outstanding shares of 4.99B, which implies an overall EPS (or earnings per share) of 0.48. To give the reader a little context that number compares to an analyst consensus expected value of 0.62 in next fiscal quarter EPS data. Next, let?s look ahead at coming performance based on what analysts are projecting for the company more generally, before closing with a survey of the balance sheet and cash flow. Among analysts, the average recommendation for this stock is Overweight. That number represents the product of the work of 28 analysts. It is important to consider the views of the analyst community even though we don?t suggest taking analyst recommendations as face value plans for action in a portfolio. The primary value of looking at analyst opinions is in knowing what sort of views may already be priced into the stock.

If we look at price targets, we can see that analysts currently have things pegged around an average target at about 39.76. When we look at next year, we can things shake out in terms of estimates of a fiscal year forecast to bring about 2.60 in terms of total EPS. That works out to a median P/E ratio basis valuation of right around 15.41 times earnings.

So far, we have covered how the company is doing on both the top and bottom line, as well as what professional analysts believe about its core trends and operational and financial performance going forward. However, we would be remiss if we did not also take a quick look at cash flows and the company?s balance sheet to round out our perspective on the name.

The last thing we like to look at for a company like is the balance sheet. That really is the heart of the company?s ability to weather tough times, and the basis for an experienced investor?s sense of the real downside risk inherent in a stock. So, as we like to see, the balance sheet is the seat of faith for the market. In this case, for CSCO, the company has about 11.04B in cash in the bank, according to its most recent reports. That cash sits opposite about 10.24B in total current liabilities on the ledger. But balance sheet health isn?t a fixed idea. Trends matter. And the best way to understand real risk, particularly where debt levels are concerned, is to trace a line connecting the past with the future. In this case, the company?s debt has been growing. The company also has 130.52B in total assets, balanced by 64.97B in total liabilities. That should put things into perspective quite a bit more in terms of how one can justify the current market cap of the stock.

Finally, we want to take a peek at cash flows. In this case, the company saw free cash flowing at 2.91B last quarter, which represents a net change for the quarter in cash levels of (665M). That works out to about 3.08B in terms of cash flow on a net operating basis.

This is certainly an interesting story and one we plan to check back on soon.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of argusjournal.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please click HERE

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