|Bid||18.50 x 900|
|Ask||20.00 x 1400|
|Day's Range||19.26 - 19.82|
|52 Week Range||18.84 - 46.83|
|Beta (3Y Monthly)||0.78|
|PE Ratio (TTM)||10.49|
|Forward Dividend & Yield||1.08 (4.94%)|
|1y Target Est||N/A|
Is Petmed Express Inc (NASDAQ:PETS) a good investment right now? We check hedge fund and billionaire investor sentiment before delving into hours of research. Hedge funds spend millions of dollars on Ivy League graduates, expert networks, and get tips from investment bankers and industry insiders. Sure they sometimes fail miserably but historically their consensus stock […]
Even in a broad market near all-time highs, it hasn't been a great time to be an income investor. Dividend stocks largely have underperformed. The winners this decade generally have been tech and/or growth stocks, most of which don't pay dividends. Adding insult to injury, of late there have been several high-profile dividend cuts in widely owned names.General Electric (NYSE:GE) in fact cut its dividend in both 2017 and 2018. It now pays just a penny per share each quarter. Owens & Minor (NYSE:OMI), a seemingly safe healthcare distributor that like GE was slow to adapt to changes in its industry, similarly executed a double cut, to just $0.0025 (a penny per year). Anheuser-Busch InBev (NYSE:BUD) halved its payout last year to attack its debt load. Frontier Communications (NASDAQ:FTR) and Mattel (NASDAQ:MAT) eliminated their dividends for similar reasons.All stocks wound up being yield traps -- dividend stocks that investors bought for yield, only to wind up losing both income and principal as the stocks fell. They are reminders that buying a stock just for its dividend is a risky, and even dangerous, strategy. An investor owning a stock needs to focus on the company -- not a single metric.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Great Stocks to Buy on Dips These 7 dividend stocks may not join the list of companies who cut their dividends soon -- or ever. But they are among the riskier stocks for income investors at the moment. An attractive dividend isn't so attractive when principal shrinks, offsetting those payouts. And all 7 of these dividend stocks seem to be at serious risk of at least seeing share price declines that will offset the high yields they offer at the moment. AT&T (T)Source: Shutterstock AT&T (NYSE:T) appears to be an income investor's dream. T stock has been a "widows and orphans" stock since the days when it was still 'Ma Bell'. Even after the breakup, the move into cellular service, and the acquisition of Time Warner, AT&T stock still looks like a great dividend stock.It yields 6.67%, and in December announced its 35th consecutive annual increase, making T stock a so-called Dividend Aristocrat. That dividend still represents only about 57% of projected 2019 EPS, a reasonable payout ratio that leaves some room for AT&T to pay down its massive debt load.But I've long been skeptical toward AT&T stock -- and I continue to be so. The attractive dividend continues to be offset by a tumbling T stock price. Over the last five years, including dividends, AT&T stock has returned a little over 12% -- total. It's not just underperformed the market, it's barely outperformed Treasury bills at a time of historically low interest rates. Over the past year, T investors have made barely 1%; over the last three years, they've lost money including dividends while the S&P 500 has returned nearly 50% on the same basis.Simply put, T has been a disappointing investment. Looking forward, it's not clear how that is supposed to change. The cellular business is brutally competitive and at this point low-growth. The wireline business is declining. So is DIRECTV, and streaming service DIRECTV NOW is losing customers.Outside of HBO, Time Warner -- now WarnerMedia -- faces a real threat from cord-cutting. And AT&T' new streaming service seems unlikely to outcompete Disney (NYSE:DIS) and Netflix (NASDAQ:NFLX), let alone Comcast (NASDAQ:CMCSA).AT&T may keep its dividend rising. But that's been of little help to shareholders for most of this decade, and I'm skeptical that will change in the next one. Macerich (MAC)Source: Shutterstock Shopping mall REIT Macerich (NYSE:MAC) has offered an attractive yield for years now -- yet MAC stock keeps heading in the wrong direction. MAC trades near its lowest levels in almost eight years -- a decline that has driven the stock's dividend yield above 7%.At these levels, the dividend stock does look potentially attractive. MAC trades at a little over 11x the midpoint of 2019 guidance for FFO (funds from operations, a common adjusted net income figure used by REITs). The dividend yield is healthy. Support for the stock around $40 seems to have held since December. And the company's higher-end properties -- what it calls "fortress malls" -- in theory should better manage the changes in U.S. shopping patterns and the steady growth of e-commerce.The problem is that the same case could have been made for the past few years. Yet MAC's yield continued to creep up, touching 5% in 2017, 6% last year, and 7% this year. It's not higher payouts driving those increases (though Macerich has managed to increase its payout modestly in recent years). Rather, the declining MAC share price has driven those yields higher.The same phenomenon has played out elsewhere in the mall space, notably with lower-quality rivals Washington Prime (NYSE:WPG) and CBL & Associates (NYSE:CBL). Macerich still has a reasonably large debt load, and with the dividend payout about 80% of FFO, it may freeze increases or cut the payout to attack those borrowings. And any economic weakness can hit occupancy and cause real problems going forward. * 5 Clean Energy ETFs to Buy for 2019 Macerich might look like it's at a bottom, but investors have believed that before, and been wrong in doing so. Occidental Petroleum (OXY)Source: Hayden Irwin via FlickrOccidental Petroleum (NYSE:OXY) is making a big bet on U.S. shale, with some help from Warren Buffett and Berkshire Hathaway (NYSE:BRK.A,NYSE:BRK.B). Backed by the issuance of $10 billion in preferred stock to Berkshire, Occidental seems likely to win its bidding war with Chevron (NYSE:CVX) for shale driller Anadarko Petroleum (NYSE:APC).Whether that's good news for OXY stock remains to be seen. So far, investors seem displeased. OXY has sold off in recent sessions, and trades not far from multi-year lows. But, again, OXY is making a big bet, paying an estimated $38 billion for Anadarko against its current market capitalization of $44 billion. It is a high-risk play -- but one that also will offer high rewards if rising optimism toward U.S. shale proves correct.But for dividend stock investors, the deal raises a clear risk toward Occidental's payout. Analysts at Mizuho pointed out that dividend coverage may not be sufficient, particularly as the acquisition is integrated. Meanwhile, the Berkshire deal alone adds some $800 million in annual preferred stock distributions.And so it wouldn't be a surprise if Oxy cut or eliminated its dividend. Much like Anheuser-Busch after its takeover of SABMiller, Occidental will have significantly higher interest and distribution payments -- and may choose to redirect cash flow toward deleveraging. That might be the right play long-term - but it raises a significant near- to mid-term risk to the Occidental dividend, and thus to OXY stock. Weaker oil prices would only add to the pressure.Again, this isn't to say OXY stock is a short. But income investors looking for energy exposure have a better and hedged option in larger Exxon Mobil (NYSE:XOM). At this point, OXY is much more of a speculative play -- and not a stock to be owned just because it's a dividend stock. PetMed Express (PETS)Source: Shutterstock I've long thought online pet retailer PetMed Express (NASDAQ:PETS) was attractive at the right price. But after recent results, the risks are clear, even with PETS offering a 5.5% yield.Chewy.com, now owned by Petsmart, is entering the online pet prescription space in a big way. And it's clearly taking share from PetMed Express. Revenue was flat year-over-year in fiscal Q3 (the December quarter), a notable deceleration from recent performance. In Q4, sales dropped 4% - despite sharply higher advertising spend. Lower sales and higher spending drove EPS down 35% in the quarter - and sets up a difficult fiscal 2020 for the company. * 5 Big Announcements From Google I/O 2019 PETS may be able to maintain its dividend: the company still has nearly $5 per share in cash on the balance sheet, and no debt. But with sales and margin pressure almost certain to continue into 2020, even a 5%+ payout isn't enough to take the risk that PETS shares will keep falling. Coca-Cola (KO)Source: Leo Hidalgo via Flickr (Modified)To be sure, Coca-Cola (NYSE:KO) might be in the best spot of any stock our list of dividend stocks -- at least on a relative basis. It doesn't have the debt problems of AT&T. Rival Pepsi (NASDAQ:PEP) is unlikely to take huge amount of market share, even if smaller sparkling water companies and other alternative beverage producers might. Even Coca-Cola's history is better: the stock is a Dividend King, a designation for companies who have raised their dividends for at least 50 consecutive years.But dividend aside, KO stock seems a risky play here. It trades at over 21x next year's consensus EPS -- despite the fact that earnings haven't grown for years. Soda consumption is plunging. The $5 billion acquisition of a coffee chain doesn't diversify the $200 billion-plus company enough away from that issue. KO simply looks overvalued, as I argued in March.More broadly, as I noted last year, there's also the fact that a number of stocks similar to KO have taken big hits of late. Branded consumer products stocks like Coca-Cola historically have been attractive, and safe, long-term income plays. (Berkshire Hathaway, of course, has made billions off its stake in the company.)But those 'safe' stocks don't look all that safe anymore. BUD shares tumbled last year, and still haven't recovered their gains. Altria (NYSE:MO) lost a third of its value in less than three months. Kraft Heinz (NASDAQ:KHC) is a mess and trades at post-merger lows. Campbell Soup (NYSE:CPB) doesn't look much better.Tastes are changing. Healthy offerings and independent brands are hot right now -- and that may not change. If it doesn't, KO's earnings are going to stay stagnant at best -- and at some point, investors are going to stop pricing growth into Coca-Cola shares. Western Digital (WDC)Source: Shutterstock Investors spent the second half of 2018 worrying that earnings at chip stocks and memory plays like Western Digital (NASDAQ:WDC) were going to plunge. They've spent the first months of 2019 shrugging now that the earnings declines finally have arrived. WDC's Q3 earnings missed badly, with adjusted EPS of $0.17 missing consensus estimates of $0.46 and declining a stunning 95% year-over-year.The drop in earnings isn't necessarily fatal to the bull case for WDC stock. Memory is a cyclical business due to volatile pricing, and it certainly seems like pricing is closer to a bottom than a top. But I wrote in March, with WDC at similar levels, that investors were underestimating the risks here -- and the Q3 report strengthens that argument.Meanwhile, Western Digital's dividend may be at risk. EPS estimates for FY20 are now under $4 - suggesting a payout ratio climbing above 50%. The company still has over $10 billion in debt that needs to be managed. If expectations for next year keep coming down, Western Digital could choose to cut or eliminate its payout to focus on deleveraging. Analysts at Evercore (NYSE:EVR) made exactly that argument in a note in January -- and it sent Western Digital stock tumbling. * 7 Marijuana Stocks That Are Bleeding Cash A dividend cut combined with lowered earnings expectations would be something close to a disaster for WDC stock. Given that the dividend stock has bounced over 40% from December lows, it might be time for investors to take profits. Income investors, in particular, may want to look past a yield that now clears 4%. New Media (NEWM)Source: Shutterstock New Media Investment Group (NYSE:NEWM) seems like an intriguing high-yield play. New Media buys local and mid-sized newspapers, presumably on the cheap, and then uses its scale to cut costs and wring out profits. A decent amount of those profits go back to investors, or so it seems: NEWM yields nearly 15% at the moment.But there are several problems with this story -- and one big one for income investors. New Media isn't actually funneling profits to investors. Rather, it's funding the dividend through steady issuance of NEWM stock -- usually at below-market prices. These offerings also involve hefty incentive fees for , New Media's external manager. (Fortress now is owned by Softbank (OTCMKTS:SFTBY).)And so investors aren't really 'earning' a dividend. Rather, their ownership is being diluted for cash. With NEWM stock now at an all-time low, it seems like the market finally is catching on.But even those lows don't look low enough. I called NEWM stock 'toxic' a year ago and still believe that's the case. Unsurprisingly, New Media's revenue and profits keep falling outside of the contribution from acquisitions. The strategy is the same that sent predecessor GateHouse Media into bankruptcy. And the company still is buying yet more papers, instead of using a 'cigar butt' strategy that focuses on returning actual cash to shareholders, not just selling NEWM shares to fund more acquisitions.As such, NEWM looks like a true yield trap. A 15% yield might seem attractive, but it's unlikely to last unless New Media changes its strategy, and its ways.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Great Stocks to Buy on Dips * 6 Growth Stocks to Buy for the Rest of 2019 * 4 Mega-Cap Stocks to Sell Before They Melt Down Compare Brokers The post 7 Dangerous Dividend Stocks to Stay Far Away From appeared first on InvestorPlace.
Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card! Today we will run through one way of estimating the intrinsic value of PetMed Express, Inc. (NASDAQ:P...
PetMed Express earnings for the company's fiscal fourth quarter of 2019 have PETS stock falling hard on Monday.Source: Shutterstock PetMed Express (NASDAQ:PETS) earnings for its fiscal fourth quarter of the year include earnings per share of 32 cents. This is a major drop from the company's earnings per share of 50 cents from the same time last year. It was also a blow to PETS stock by missing Wall Street's earnings per share estimate of 46 cents for the period.The PetMed Express earnings report for its fiscal fourth quarter of 2019 has net income coming in at $6.62 million. This is down from the company's net income of $10.18 million reported in its fiscal fourth quarter of 2018.InvestorPlace - Stock Market News, Stock Advice & Trading TipsOperating income reported in the PetMed Express earnings release for its fiscal fourth quarter of the year comes in at $7.80 million. That's a decrease from the company's operating income of $14.49 million reported in the same period of the year prior.PetMed Express earnings for the company's fiscal fourth quarter of the year also include revenue of $64.57 million. This is worse than the company's revenue of $67.32 million reported in its fiscal fourth quarter of the previous year. Unfortunately for PETS stock, this also doesn't meet analysts' revenue estimate of $69.06 million for the quarter. * 7 Energy Stocks to Buy to Light Up Your Portfolio The most recent PetMed Express earnings report also has it announcing a dividend of 27 cents per share. This dividend will be payable on May 24, 2019 to investors that are on record as of May 17, 2019.PETS stock was down 8% as of Monday afternoon. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Energy Stocks to Buy to Light Up Your Portfolio * 10 Vice Stocks to Spice Up Your Portfolio * 7 of the Best ETFs to Buy for a Slowing Economy As of this writing, William White did not hold a position in any of the aforementioned securities.Compare Brokers The post PetMed Express Earnings: PETS Stock Plunges on Q4 Miss appeared first on InvestorPlace.
On a per-share basis, the Delray Beach, Florida-based company said it had net income of 32 cents. The pet pharmacy company posted revenue of $64.6 million in the period. For the year, the company reported ...
Results from my 2018 tax-loss-selling rebound tracking portfolio improved slightly over the last month, although its advantage over my selected benchmarks -- the S&P 500 and Russell 2000 -- has narrowed as the two indices had a solid month.
One of the best investments we can make is in our own knowledge and skill set. With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. We'll use ROE to examine PetMe...
Generally speaking the aim of active stock picking is to find companies that provide returns that are superior to the market average. And in our experience, buying the right stocksRead More...
Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card! If you are an income investor, thenRead More...
This article is written for those who want to get better at using price to earnings ratios (P/E ratios). We'll look at PetMed Express, Inc.'s (NASDAQ:PETS) P/E ratio and reflect Read More...
PetMed (PETS) sees reorder sales growth in Q3. Rising competition forced the company to offer additional discounts to customers in the quarter which had a negative impact on the gross margin.
On a per-share basis, the Delray Beach, Florida-based company said it had net income of 38 cents. The pet pharmacy company posted revenue of $60.1 million in the period. PetMed shares have risen slightly ...
While the markets have made up lots of ground since the steep drop in the fourth quarter of 2018, there are still concerns. The upcoming earnings season could mean negative surprises for investors. Of course, we've already seen this with Apple (NASDAQ:AAPL). Despite all this, there may be opportunities -- that is, with small-cap stocks. Based on data from Refinitiv, the projection is for 30% profit gains in 2019. A big part of this is that the U.S. economy will likely continue to grow (although, it may be at a slower rate). Small-cap stocks should also not be as vulnerable to global market tensions. And yes, there continue to be strong secular growth trends, such as in technologies like cloud computing and AI. InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 8 Dividend Stocks With Growth on the Horizon So then what are the best small-cap stocks to consider now? Here's a look at seven: Source: Shutterstock ### Small-Cap Stocks: Arlo Technologies (ARLO) Last month, the shares of Arlo Technologies (NYSE:ARLO) got crushed, as the company announced disappointing guidance for the fourth quarter. During the past three months, the stock price is off by about 41%. The reason was a delay of its main home security system (called Arlo Ultra). It will now be launched this month. But for investors looking for an interesting long-term opportunity, ARLO stock does look like a good option. The company -- which recently spun-off from NetGear (NASDAQ:NTGR) -- first launched its cameras in late 2014. Since then, ARLO has shipped over 10 million units and there are currently 2.5 million registered users. Note that about 74 million videos are streamed every day. It's true that the market is highly competitive, with mega players like Amazon.com (NASDAQ:AMZN) and Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL). Yet the market opportunity is substantial. According to Gartner, the segment is expected to see spending on the connected home to go from $45 billion in 2017 to $146 billion by 2021. This represents a compound annual growth rate of about 34%. Source: Shutterstock ### Cloudera (CLDR) The cloud market has provided lucrative gains for investors during the past few years. But some companies have been left in the dust. One example is Cloudera (NYSE:CLDR), which operates a platform that helps with analytics and machine learning. Since last year, the shares have plunged from $21 to $11. But the fortunes of the company could change -- and soon. Why? Well, CLDR recently struck a merger with another big data provider, Hortonworks. With this combination, there will be a much richer platform for customers, allowing for hybrid and multi-cloud deployments, better AI and a powerful open-source software footprint. * 10 A-Rated Stocks the Smart Money Is Piling Into There will also be greater scale, which will help deal with larger competitors. For example, CLDR will now have over 2,500 customers and annual revenues of $720 million. In fact, this means that the price-to-sales ratio is at about 2.4X, which is fairly low for an enterprise cloud company. Source: Shutterstock ### Petmed Express (PETS) Since its founding in 1996, Petmed Express (NASDAQ:PETS) has built a solid platform -- with both the internet and an 1-800 call center -- to sell pet medications and other health products. The company is licensed in all 50 states and has 1,000 of its own SKUs as well as 2,000 from third parties. Now, the company has its issues. After all, there has been pressure on profit margins as the competitive environment has gotten more intense. But it does look like the selling has been overdone. Keep in mind that PETS has a dividend yield of nearly 5% and the forward price-to-earnings multiple is only about 10X. Wall Street analysts are upbeat too. Note that the average price target is $31. This implies 41% upside from current levels. Source: Shutterstock ### Varonis Systems (VRNS) Varonis Systems (NASDAQ:VRNS) is a leader in providing systems for data security and analytics. The focus is on protecting highly sensitive information like customer/patient/employee files, financial records and IP (intellectual property). The company, which was founded in 2005, has 6,350 customers across the world. Growth has also been solid. During the latest quarter, total revenues grew by 26% to $67.1 million. Even though the company is still unprofitable, there are positive cash flows. They came to $16.3 million for the first nine months of last year. There is currently $158.1 million in the bank. * 7 Stocks at Risk of the Global Smartphone Slowdown Varonis' technology spans many critical technology categories, such as IT operations management, storage management, infrastructure software and data integration. As a result, the addressable market opportunity is enormous. According to the company's own estimates, its about $15 billion. Source: Shutterstock ### Talend (TLND) When data analytics company Talend (NASDAQ:TLND) went public in the summer of 2016, the shares jumped by 42%. But unfortunately, lately the stock price has come under lots of pressure. Since September, TLND stock has plunged from $71 to under $36. While the company did have a less-than-stellar earnings report, I still think Wall Street's reaction was overdone. For the most part, the long-term growth story still looks intact. TLND builds automation tools for data integration, which has historically been a time-consuming manual process. TLND's platform, which is called Data Fabric, can integrate data in real-time, allowing for a unified view. This is extremely important for customers since they are spending large amounts on revamping their digital infrastructures. In terms of growth, even among small-cap stocks it continues to be robust. Based on preliminary estimates, the fourth quarter will see an increase in sales of 33% to 34%. Source: (C)iStock.com/AlexRaths ### Radius Health (RDUS) In the healthcare sector, plenty of small-cap stocks have gotten hit hard during the recent bear move in the markets. But this is typical. Early stage operators usually rely heavily on raising capital. So as markets get more volatile, this puts pressure on companies. But there are many commercial-stage operators that have strong cash balances and growth prospects. Just look at Radius Health (NASDAQ:RDUS). The company ended 2018 with $235 million in the bank. RDUS sells treatments for osteoporosis, which is a growing market because of the aging of populations around the world. The lead drug is Tymlos, which has proven to be quite effective. But the RDUS pipeline has other treatments for male osteoporosis and even breast cancer. Growth has also been running at a breakneck pace. RDUS recently provided guidance that revenues will soar from $95 to $98 million in 2018 to $155 million to $175 million this year. * Morgan Stanley: 7 Risky Stocks to Sell Now As for stock analysts, they definitely see tremendous upside, with the target stock price at $36. Currently, RDUS is trading at $16. Source: GotCredit ### EverQuote (EVER) Last year, EverQuote (NASDAQ:EVER), a company that operates an online platform to sell insurance, came public. But life as a public company has been mostly a nightmare for investors. Consider that EVER stock is off about 68%! The reason: During the third quarter, the company reported a much larger loss than Wall Street expected. However, the company indicated it will take swift actions to cut back on costs. Oh, and it's important to note that the growth continues to be strong. Sales for Q3 were up 30% to $41.7 million. But more importantly, the long-term prospects for EVER do look bright. After all, there is a major shift for insurance companies to allocate their advertising budgets to online platforms. According to EVER, the long-term addressable market could be $120 billion per year. That makes it among the best small-cap stocks to keep an eye on right now. Tom Taulli is the author of High-Profit IPO Strategies, All About Commodities and All About Short Selling. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Companies That Could Post Decelerating Profits * 10 A-Rated Stocks the Smart Money Is Piling Into * Mizuho: 7 Long-Term Value Stocks to Buy Now Compare Brokers The post 7 Oversold Small-Cap Stocks With Massive Profit Growth appeared first on InvestorPlace.
Today we are going to look at PetMed Express, Inc. (NASDAQ:PETS) to see whether it might be an attractive investment prospect. To be precise, we'll consider its Return On Capital Read More...