Chevron Analysis:Energy companies enjoyed a massive revenue increase in 2021 and 2022 following the end of the lockdown restrictions and the jump in oil prices amidst the Ukraine/Russia war. Stocks like Chevron gained more than 100% in those years as investors poured into the company, but have struggled to gain any traction in the past two years. During its rally in 21-22, Chevron’s revenue grew by 65% and 51% respectively, reflecting directly in their stock as it rallied to a new all time high; then the struggles came as soon as they began reporting a decline in revenue Q1 of 2023. The losing streak last from Q1 23 to Q1 24, but Chevron reversed that trend in Q2 of this...
Target Shares Soar After Earnings Report. Is it a Buy? Target stock soared higher after the company’s earnings report early Wednesday morning. Same-store sales were the biggest highlight of the call, with the number increasing by 2%, above the 1.1% forecast. Target had been on a one year long losing streak amidst public relations issues they faced and a more cautious customer, but their increase in same store revenue this quarter helped end that streak. Retail were also happy to learn that discretionary items, especially apparel, saw an uptick in demand. This was taken as a sign that consumers are starting to spend on non-essential items again. However this could also be interpreted as consumers shopping for apparel at Target...
General Dynamics Corporation General Dynamics has rewarded its investors in the past 12 months after growing by 50% in market cap, but as it sits near all time highs, investors are wondering if it has the momentum to keep going. Looking at the company’s quarterly performance, it has impressively posted consistent growth in the past year, growing by as much as 18% in the last quarter. Demand for aerospace products and defense solutions has grown, especially with rising global tensions, which have boosted defense exports, especially aircrafts from the United States. GD’s growth from its 52 week lows has brought its current price to earnings ratio to 23x (TTM). This places it on the more expensive side of the 15-25...
Lowe’s Companies (LOW) Post-Earnings Analysis In their latest quarterly earnings report, Lowe’s fell short of market expectations and lowered their outlook on guidance, making it the second home improvement retailer to slash forecasts. Their earnings were released this morning, exactly one week after Home Depot’s earnings last week, which also pointed to a slow down in home improvement spending over the next 12 months. Both retailers showed concerns over macroeconomic factors, as well as a significant slowdown in “do-it-yourself” project spending. Big ticket item spending has also wained as consumers hit the break on financing any products, and with interest rates still elevated, that is expected to continue placing pressure on the industry. Year over year sales for the company...
Nike’s stock is bouncing at a familiar trend line in recent weeks, the same support line that it visited back in January and April. The stock’s short term bounce is impressive, but the general trend this year is still making lower highs. Fierce competition and cautious customers forced Nike to post flat yearly growth, which has reflected in its stock price. The company’s long term durability is still strong, but the short term may continue to be a challenge until economic conditions improve. Investors are probably accepting that at this point, Nike is no longer a growth company, but it will likely be consistent enough to earn a spot in someone's dividend portfolio. Their valuation is fair, and they're steadily...
