It is guilt by association. Anything railroad related is getting killed. All rail stocks are priced for a coming recession. Hopefully that isn't going to happen and these stocks will come back strong.
They beat this quarter, but the midpoint for management's eps range for the next Q is $.54, which is below analyst's estimate of $.56. Thus, I doubt that this small bounce will lead to a strong run higher.
This stock's PE ratio is currently just under 13. Going back over the last 3 years it has usually averaged about 15. So there seems to be some upside here. Upper $ 40's to low $50's seems doable.
Even after the beat down this stock still trades at a 70 PE on this year's eps estimate. This is really high given that eps growth is expected to slow some to about 22.5% over the next 5 years. I don't think that this is such a great value here. Could possibly even drop some more.
Revenue is estimated to rise 7% in 2016 FY, but eps is estimated to drop 5%. What gives with this? Are they expected to issue new shares or are their margins expected to decline? SinceIi don't follow this company closely, can anyone else provide some insight into this divergence between sales and expected eps.
I am holding through earnings and hoping for a beat. However, one could certainly argue that this stock is at a rich PE ratio at 16-17 x this year's eps estimate. The PE is up from 11 x going back 2 year's ago. There has been some earnings growth acceleration over the last few year's, but anyway you slice it this isn't cheap for a defense firm growing eps about 10% or less per year.
This is a solid company, but its PE is now 31x this year's eps estimate. In the 5 previous years. the PE ranged from 15 - 26 x the estimate for each year. Plus, its annual growth rate in earnings (now about 15%) is lower than it was in prior years. This is probably a good time to take profits on this.
The price of oil is down 20% over the last month, but the price of unleaded gas is down only 10%. Some of this difference must be going into the refiners pockets. I have to believe that the refiners are very profitable right now.
I expect the downtrend to continue. The PE is almost 50% above its historical average and more than 2x its eps growth rate. The dividend rate is essentially the same as it has been over the last 5 years. Earnings estimates have been lowered for this and next year and the dollar is probably still going to get stronger.
Someone wanted out badly today. Wonder if there might be some fraud or improprieties going on here.There are a couple of lawsuits regarding SEC Act violations. This is now a stock to stay away from until the next earnings release.
A global recession could send these shares to $50, if not lower. A collapse of the Chinese economy will quickly spread to the U.S. and Europe. This is one of the more risky big company stocks to own at this point.
MU has eps estimates that are falling from prior years. SMCI's eps estimates are higher than prior years. Also, MU has 1B shares outstanding and SMCI has only 47M. These are two totally different situations. Just because SMCI's chart might look a little like MU's did at the beginning of its decline means little. Plus, there is tons of support on SMCI's chart going back to last summer where the $27 area was resistance for 3 months. Sure, SMCI could badley miss their eps estimates and the stock could wind up looking like MU, but what reason is there to suspect that that will happen? Do you have inside information?
At $47.50 the PE on 2015 estimated eps is just over 8. That is a very low PE for a firm whose business is growing and that hasn't missed estimates in the last 4 quarters. Is there something ominous below the surface that I am not seeing?
This stock is very cheap right now, particularly if eps can grow 13% in fiscal 2016. The decline in expected eps for the current year has really knocked the shares down to a very low level. It is at least a $50 stock if they do anything close to the 2016 estimate.
A 17 PE for a stock only expected to grow eps at 5% or so over the next 5 years. Even the dividend at 2.5% isn't so great. CAT pays 3.5%. A 5% eps grower shouldn't sell for more than a 15 PE, especially without a higher dividend.
The 3.5% dividend is what is keeping this stock in the $80s. If interest rates were at normal levels, this would be a $65 stock. This won't be a good stock to be in if interest start rising. But heck, the Fed may keep them low forever, so I am not shorting it.
It seems bad guidance is already baked into the price. It is selling as if GBX only makes tank cars or as if we are entering into a recession. I will be very surprised if we don't get some kind of bounce post earnings. But i have been wrong before.