|Bid||154.37 x 1000|
|Ask||154.44 x 800|
|Day's Range||151.13 - 154.85|
|52 Week Range||99.53 - 156.00|
|Beta (3Y Monthly)||-0.00|
|PE Ratio (TTM)||31.29|
|Earnings Date||Jun 27, 2019|
|Forward Dividend & Yield||2.28 (1.51%)|
|1y Target Est||147.80|
When you buy shares in a company, it's worth keeping in mind the possibility that it could fail, and you could lose your money. But on a lighter note, a good company can see its share price rise well over 100%. Long term McCo...
The provider of spices and seasonings showed enhanced profitability in its latest earnings report, but the innovations could be priced in.
The two most often cited financial metrics from a company's quarterly results are revenue and earnings per share. This is referred to as year-over-year comparison. Some companies, especially those that have a similar level of business throughout the year, may offer a comparison from the previous quarter.
Lamb Weston (LW) focuses on LTO innovation. Further, the company is gaining from its strong Global segment and efficient price/mix.
FIRST PLACE: McCormick & Co. Inc.'s new headquarters in Hunt Valley Developer: Greenfield Partners LLC Architect: Studios Architecture Interior design: IA Interior Architects General contractor: Gilbane Engineering and architectural support: CBRE From the layout to the building's address, McCormick & Co. Inc. planned every detail of its new headquarters with the goals of honoring the company's 130-year heritage and creating the best experience for the 1,000-plus employees who work there. The spice maker opened the doors to its $170 million headquarters in Hunt Valley in October. McCormick's address is 24 Schilling Road, Suite 1 — a homage to the spice giant's "two-for-one" mantra that was inscribed on a stone displayed in its old headquarters.
It's been a roller-coaster ride for shares of International Business Machines (NYSE:IBM) over the past several months. In late 2018, amid a broader market selloff, IBM stock dropped to near-decade lows below $110, after falling more than 30% over the course of two months. But at $110, IBM stock was simply far too undervalued. Thus, as broader financial markets have rebounded in 2019 amid stabilizing economic fundamentals, IBM stock has rallied, too. Year-to-date, IBM stock is up 25%.Source: Shutterstock For IBM stock, that's a massive rally. This is a stock that has been stuck in a consistent downtrend for the past five years. As such, this year's 29% rally is actually one of the biggest rallies that IBM stock has staged in the last several years.The overriding question now: can it last?InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Dow Jones Stocks Holding the Blue Chip Index Back I'm not convinced. I was bullish on IBM stock in late 2018 since the valuation was out of whack with fundamentals. Specifically, you had a stock trading at multi-year low valuation levels with a multi-year high yield. This dynamic occurred amid improving fundamentals which implied that profit growth was going to return to the picture. Today, the fundamentals are still improving, and this company looks due for consistent profit growth over the next several years. But the current valuation appropriately reflects that growth outlook, so further upside is limited.Consequently, this surprising 2019 rally in IBM stock seems to be on its last legs. Late-2018 buyers may want to do some profit taking here in early 2019. The Outlook Continues to ImproveThe story at IBM has been pretty bad for several years. Revenue growth has been consistently negative as the company was slow to pivot to the AI, cloud, and data markets. Furthermore, it has consequently been losing share in its legacy IT business. Margins have concurrently dropped amid stiffer competition in this space. Profits have been falling. IBM stock has been falling, too.But there have been signs of gradual improvement over the past several quarters.Specifically, the company has continued to push more aggressively into the cloud and AI markets. Subsequently, robust growth in these new businesses has largely offset declines in the legacy IT segment. Revenue growth rates have improved. Last year, constant currency-adjusted revenue growth was flat year-over-year for the first time since 2012. Meanwhile, thanks to these stabilizing revenue trends, margins have stabilized. Plus, pre-tax profit margins have been hugging the 17.5% level for three consecutive years now, after several consecutive years of huge declines.These improvements should persist throughout 2019, mostly because the cloud and AI businesses remain on fire. Of note in 2019, IBM has announced a wide-ranging AI collaboration project with food giant McCormick (NYSE:MKC), formed a new 5G cloud-tech venture with Vodafone (NASDAQ:VOD), and scored a big IT deal with Juniper Networks (NYSE:JNPR). IBM has also landed a $700 million IT contract with Spanish bank Banco Santander (NYSE:SAN).Broadly speaking, then, it appears that IBM's cloud and AI businesses remain on track. So long as this remains true, then IBM is positioned to flip into positive revenue-growth territory soon. The Valuation Reflects RealityAt this point in time, the valuation underlying IBM stock fully accounts for renewed revenue and profit growth. Therefore, it doesn't leave much room for nearer-term upside.When you look at IBM, you have a business that won't grow by much over the next several years. At best, robust cloud growth and legacy IT market-share losses largely offset one another. At best, they produce tepid revenue growth of 0% to 1%. Meanwhile, margins should improve as revenue declines turn into revenue growth. But such improvements will be largely mitigated by competition in the broader IT market.Consequently, IBM projects as a slow revenue grower with mild margin expansion potential over the next several years. Modeling that out, I think IBM can do about $15 in earnings per share by fiscal 2025. IBM stock's trailing five-year average, forward price-to-earnings multiple is 10. But, over the past five years, revenues and margins were in free fall. Over the next five years, they should rise, albeit slowly.As such, IBM stock deserves more than its historical average 10x forward multiple, but less than the market average 16 forward multiple. Using the midpoint of these two metrics, a reasonable fiscal 2024 price target of IBM stock is $195. Discounted back by 6% per year (4 points below my normal 10% discount rate to account for the yield), that equates to a fiscal 2019 price target of just over $145.That's roughly where IBM stock trades today. Thus, upside over the next several months looks limited. Bottom Line on IBM StockIn late 2018, IBM stock fell into deeply undervalued territory. That was the time to buy. Now, the stock has rallied more than 30% off those lows, and IBM stock is now in fairly valued territory. As such, late-2018 dip buyers may turn into early 2019 rally sellers. That's a real risk for the stock going forward.As of this writing, Luke Lango did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 9 Best Dividend Stocks to Buy for Every Investor * 7 Catalysts That Will Send Marijuana Stocks Soaring in 2019 * 8 Risky Stocks to Watch as Earnings Season Kicks Off Compare Brokers The post IBM Stock Is On Its Last Legs -- Sell, Sell, Sell! appeared first on InvestorPlace.
General Mills (GIS) is committed toward boosting market share through innovation. Also, the company is on track with its four key global priorities.
"When a company with a terrific long-term track record suffers a setback and the stock implodes, the pain can make you want to dump the stock and forget about it," CNBC's Jim Cramer says. "But as we've seen from Apple, Nvidia, and McCormick, these moments of extreme weakness and desperation, they tend to be terrific buying opportunities," the "Mad Money" host says. "We have seen the same pattern from Home Depot.
Why the Uptrend in McCormick Stock Might Be Limited(Continued from Prior Part)Analysts remain on the sidelinesNumerous analysts increased their target price on McCormick (MKC) stock following the company’s stronger-than-expected bottom-line
Why the Uptrend in McCormick Stock Might Be LimitedStock performance McCormick (MKC) stock bounced back in the past two months. The stock has risen ~23% since February 1. McCormick stock has risen 8.6% on a YTD (year-to-date) basis as of April 3.
McCormick (MKC) is on track with the CCI program to drive savings. Also, it focuses on new product development to augment market reach.
Want to participate in a research study? Help shape the future of investing tools and earn a $60 gift card! There are a number of reasons that attract investors towards large-cap companies such as McCormick & Company, Incorporated (N...
The company is focusing on product innovation, pivoting to cleaner-label products in order to keep up with changing consumer tastes. Additionally, the company's partnership with BuzzFeed Tasty could increase its reach among younger customers. With the use of artificial intelligence, it may become more efficient and be able to innovate at a faster pace.
Key Takeaways from McCormick’s Q1 2019 Results(Continued from Prior Part)Analysts maintain “hold” ratingsMcCormick (MKC) impressed with its strong bottom line performance in the first quarter of fiscal 2019. However, most analysts continue to
How do you pick the next stock to invest in? One way would be to spend hours of research browsing through thousands of publicly traded companies. However, an easier way is to look at the stocks that smart money investors are collectively bullish on. Hedge funds and other institutional investors usually invest large amounts of […]
Marketing spend, artificial intelligence, and the approach to driving profits higher were among the spicier topics broached with investors.
Key Takeaways from McCormick’s Q1 2019 Results(Continued from Prior Part)Adjusted operating margin expanded McCormick (MKC) impressed with its improved performance on the margin front in the first quarter of fiscal 2019. McCormick’s gross margin
Key Takeaways from McCormick’s Q1 2019 Results(Continued from Prior Part)Flavor Solutions sales benefited from higher volumes and pricing McCormick’s (MKC) Flavor Solutions segment’s sales increased 3.4% YoY (year-over-year) to $0.50 billion,