PAYX Chart done on daily timeframe. Paychex is a company that provides payroll, human resource, and benefits outsourcing solutions to businesses of various sizes. Its revenue is primarily derived from subscription-based services for payroll processing, HR management, and related services. Fundamentally, the company has generally maintained healthy profit margins due to its subscription-based business model, which contributes to stable profitability. The company serves a wide range of clients, including small, medium, and large businesses across various industries. The diversity of its client base helps mitigate risks associated with economic fluctuations in specific sectors. Paychex’s market cap is less than half of its primary competitor, ADP. ADP’s market cap is currently at 103B and revenue annual revenue is 18B (TTM), while...
SE Chart done on hourly candles. Sea Limited is trading at a level not seen in over three years, which places it either in a great buying range, or in a very risky range depending on how you view their fundamentals. Sea Limited shares have fallen more than 30% since their most recent earnings, which is a trend we’ve seen in other companies within the online gaming industry. Companies like Roblox and Sea Limited both reported weak growth in the digital entertainment business, but SE has the advantage of other revenue streams. SE owns Shopee and Sea Money, both of which grew YoY. Fundamentally, SE is growing in a healthy direction, so this decline may be an opportunity, but some...
SLV
Chart done on daily timeframe. Precious metals have been a safety net investment for centuries. They’ve become indispensable to our world as demand for them in both fashion and utility has stayed consistent. Gold and silver are of course the most popular precious metals to buy, but we’ve chosen silver to take on because of its industrial demand. Silver has a wide range of industrial applications, including electronics, solar panels, medical devices, and more. This industrial demand can help maintain a baseline level of demand for silver, which can contribute to its value. Silver also provides diversification within an investment portfolio. It behaves differently than other assets like stocks or bonds, which can help reduce overall risk.
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...
