PYPL Chart done on daily candles. Many stocks in different sectors and industries have enjoyed a strong reversal from their 2022 lows this year, but names like PayPal and Square have stayed near the bottom, despite seemingly healthy earnings. Taking a further dive into PayPal’s earnings, we notice there’s a significant drop in revenue growth from 2020-2021. PayPal saw an influx of online transactions when the pandemic lockdowns forced buyers online, which also helped boost their net income by 100%; however their bottomline has dropped back by 50% to pre-pandemic levels. Their inability to sustain the strong bottomline is overshadowing their optimistic revenue. Another critical point to take into consideration is PayPal’s lack of innovation and how competition may run...
KTOS Chart done on daily timeframe. Companies who land contracts with the U.S. Military often go on to enjoy an influx of revenue in the years to follow. Kratos Defense’s recent quarterly earnings reflected this by beating expectations on both revenue and profits. Looking back at their performance over the last several quarters, there’s definitely inconsistency in profitability, but revenue has mostly manage to grow steadily. The company’s balance sheet also reflects a healthy 3:1 ratio of assets to liabilities, but annual cash flow is still negative. We generally give companies with low/no free cash-flow a high risk rating just because it makes them vulnerable as a business to unexpected events, making KTOS a high risk short to medium term...
OII Chart done on daily candles. Oceaneering International is labeled as a company in the oil & gas equipment sector, but it does far more than just that. The company wears many hats, and provides services and products to a variety of industries such as energy, defense, aerospace, manufacturing, and more. They have a list of customers that’s too large to list, so I’ve attached a link so you can see for yourself. Unfortunately, most companies in the heavy equipment industry suffer from high cost of revenue, which has been a challenge for OII when we look at the their net income. Revenue is healthy and slowly making a comeback from the pandemic shutdowns, but investors want to see cost-cutting...
$CELH
Chart done on daily candles. Celsius Holdings hit it big with their popular energy drink the results show in their earnings. The company posted a bolstering profit of $.52 per share versus the expected $.26, a 100% beat for the quarter, and more than quadrupling from one year ago. Revenues have also skyrocketed to $325M this quarter compared to last year’s quarter performance at $154M. The biggest thing to point out about $CELH however is their short float percentage, lastly reported at 23%. This makes it a prime target for a short squeeze, meaning this rally could be just starting. We will be watching for a potential entry when the time is right to play the continuation.
$DIS
Chart done on daily timeframe. Disney shares are rocketing higher this morning after the company reported its quarterly earnings. Although Disney missed on revenue, shares are likely pushing due to their announcement to raise prices on their streaming platform Disney+ and Hulu. Disney got into the streaming business during a tough time for their parks when Covid forced closures and revenue was hit hard, but they’ve taken many measures to restore their revenue and reduce costs. Disney’s fundamentals are solid and now that streaming prices are going up, they may finally see their streaming investment paying off. All in all impressive earnings, but still no sign of a dividend again.
