|Bid||103.96 x 800|
|Ask||105.14 x 900|
|Day's Range||106.04 - 107.26|
|52 Week Range||91.73 - 118.13|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||1.08|
|Expense Ratio (net)||0.13%|
Can SBUX Overcome the Chinese Slowdown to Post Robust Q1 Results?SBUX’s performanceStarbucks (SBUX) is expected to post its fiscal 2019 first-quarter earnings results after the market closes on January 24.As of January 17, the company’s stock
Have Ford's F-Series Sales Started a Weak Trend in 2018?Ford Motor CompanyToday, investors seem to be showing in disappointment in America’s second-largest carmaker, Ford Motor Company (F). The stock has underperformed the S&P 500 Index for
Why Ford Stock Dove 6% TodayFord stockThe second-largest US automaker, Ford Motor Company (F), has disappointed investors by underperforming the broader market for the last six years. In 2018, the stock lost 38.1% against 6.2% losses in the S&P
Could Auto Executives Make President Trump End the Trade War?The auto industryLast week, the S&P 500 Index (SPY), NASDAQ Composite Index, and Dow Jones inched up 2.5%, 3.5%, and 2.4%, respectively. The broader market started the third week of
Bulls versus Bears: Who Will Rule the Stock Markets in 2019?(Continued from Prior Part)Goldman Sachs’ S&P 500 target As of December 14, Goldman Sachs’ (GS) chief equity strategist, David Kostin, expects the S&P 500 (SPY) to reach 3,000 by
Could NIO’s Car Deliveries Improve This Year? (Continued from Prior Part) ## Strong car deliveries last year Previously, we reviewed NIO’s (NIO) car deliveries last year and how they could boost investors’ expectations for 2019. Let’s now look at analysts’ recommendations for its stock. ## Analysts’ recommendations Of the 11 Reuters-surveyed analysts covering NIO on January 10, ~36% recommended “buy,” ~55% recommended “hold,” and ~9% recommended “sell.” Their 12-month consensus target price of $7.98 for NIO was 19.8% higher than its January 10 price of $6.66. On November 19, Citron Research recommended “buy” for NIO and set its price target at $12, which implies a huge 53.1% upside to NIO’s Monday closing price of $7.84. In its report, Citron wrote, “Compelling Product and strong management combined with absurd short interest makes NIO the worst way to bet against China.” Citron also interviewed many NIO ES8 owners for their feedback and “to test the strength of the brand.” These interviewees, who had previously owned cars by luxury brands such as Porsche, Lexus, and Audi, had highly positive feedback on the ES8. NIO, founded in 2014, is fairly a new automaker (XLY). As of January 10, it had a market cap of $6.8 billion, compared with Tesla’s (TSLA) $59.2 billion. Chinese companies Alibaba (BABA) and Baidu (BIDU) had market caps of $393.2 billion and $58.7 billion, respectively. Browse this series on Market Realist: * Part 1 - How NIO Stock Is Faring after Solid December Car Deliveries * Part 2 - NIO’s Car Deliveries: Could This Year Be More Successful?
Could NIO’s Car Deliveries Improve This Year? (Continued from Prior Part) ## NIO Previously, we discussed NIO’s (NIO) strong car delivery data for December. Let’s now look at the company’s performance last year and what this year may bring. ## Key achievements last year In last year’s third quarter, NIO guided for fourth-quarter car deliveries of 6,700–7,000 units. By delivering 7,980 cars last quarter, the company exceeded the upper range of its guidance by 14.0%. In the third quarter, NIO delivered 3,268 units. The Chinese automaker currently produces just one vehicle, the ES8—an SUV (sports utility vehicle), like Tesla’s (TSLA) Model X. NIO launched the ES8, its first mass-production electric vehicle, in December 2017, and began its deliveries last June. The company delivered 11,348 ES8s last year, beating its guidance of 10,000 vehicles by 13.4%. ## ES6 plans On NIO Day in Shanghai on December 15, NIO launched its second mass-market electric car, the ES6. The ES6 is a five-seater SUV, whereas the ES8 is a seven-seater. The company claims the ES6 base model delivers ~255 miles from a single charge, and the high-end variant delivers ~317 miles. Standard versions of NIO’s ES6 start at 358,000 Chinese yuan (or ~$51,900) and performance versions start at 398,000 yuan (or ~$57,700). The company has started taking orders for ES6s and expected deliveries to start this June. As the company now needs to focus on mass-producing two vehicles, this year could be more challenging, though last year’s strong ES8 production paints a positive picture. In last year’s fourth quarter, NIO stock fell 8.7%, while US peer (XLY) Tesla rose 25.7%. Chinese stocks Alibaba (BABA) and Baidu (BIDU) fell 16.8% and 30.6%, respectively. Continue to Next Part Browse this series on Market Realist: * Part 1 - How NIO Stock Is Faring after Solid December Car Deliveries * Part 3 - What Analysts Recommend for NIO Stock
Could NIO’s Car Deliveries Improve This Year? ## NIO On January 10, Chinese electric carmaker NIO (NIO) released its December vehicle delivery data. The company delivered 3,318 units of its seven-seater ES8 SUV (sports utility vehicle) to customers last month, a ~7.4% rise from November, when it delivered 3,089 car units. In November, its deliveries rose by a solid 96.4% from the 1,573 units it delivered in October. ## The stock This year, NIO stock has traded positively. Whereas the stock fell 1.7% last week, it had risen 4.6% this week as of Thursday. After the company released its solid December car delivery data on Thursday, its stock rose slightly, by 0.5%. Broader markets’ (XLY) mixed sentiments may have kept the company’s stock from moving further upward. In the last few days, markets’ focus has been on the latest US-China trade talks. As of January 10, the S&P 500 and NASDAQ Composite had risen 3.6% and 5.3%, respectively, this month. Meanwhile, Chinese stocks NIO, Alibaba (BABA), and Baidu (BIDU) had risen 4.6%, 10.7%, and 6.1%, respectively, and US electric carmaker Tesla (TSLA) had risen 3.7%. Next, we’ll review NIO’s performance last year and its outlook for 2019. Continue to Next Part Browse this series on Market Realist: * Part 2 - NIO’s Car Deliveries: Could This Year Be More Successful? * Part 3 - What Analysts Recommend for NIO Stock
Yum! Brands Stock Fell after Goldman Sachs’s Downgrade ## Goldman Sachs’s downgrade On January 11, Goldman Sach downgraded Yum! Brands (YUM) from “neutral” to “sell” due to concerns its high valuation and sales momentum at Pizza Hut and Taco Bell restaurants in the United States, as reported by CNBC. Goldman Sach also lowered its target price from $83 to $76. The new target price represents a fall of 17.2% from its closing price of $91.79 on January 10. ## Analysts’ recommendations Among the 24 analysts that follow Yum! Brands (YUM), 41.7% recommended a “buy,” 54.2% recommended a “hold,” and 4.2% recommended a “sell.” On average, analysts have set a target price of $94.84, which represents an upside potential of 3.3% from its closing price on January 10. Since investors’ meeting on December 5, Morgan Stanley, Barclays, and J.P. Morgan have all raised their target prices. On January 10, Morgan Stanley raised its target price from $90 to $97. Barclays raised its target price from $94 to $97 on December 19. J.P. Morgan raised its target price from $90 to $91 on December 17. ## Stock performance Goldman Sachs’s downgrade had a negative impact on Yum! Brands’ stock price. Yum! Brands was trading ~3.0% lower in the pre-market trading hours on January 11. The company’s stock price is trading flat year-to-date as of the closing price on January 10. During the same period, Domino’s Pizza (DPZ) and Papa John’s (PZZA) have returned -0.7% and 6.7%, respectively. The broader comparative index, the Consumer Discretionary Select Sector SPDR ETF (XLY), which invests ~7.5% of its holdings in restaurant and travel companies, has returned 5.5% during the same period.
Why Goldman Sachs Downgraded Starbucks Today ## Goldman Sachs’s downgrade Today, Goldman Sachs downgraded Starbucks (SBUX) from a “buy” to a “neutral” due to concerns about its expansion in China, Starbucks’s second-largest market. Goldman Sachs also lowered its price target from $75 to $68. The new price target represents a potential upside of 5.9% from the stock’s January 10 closing price of $64.19. As reported by CNBC, Goldman Sachs analyst Karen Holthouse wrote in a research note, “The recent AAPL [Apple] announcement (while potentially also product-driven) cited trade concerns/macro, and MCD [McDonald’s] acknowledged softer trends in the region at a late November event. The GS macro team also expects a continued slow down in GDP, at least partially driven by consumption.” ## Other analysts’ recommendations Of the 33 analysts that follow Starbucks, 48.5% are favoring “buys,” 48.5% are favoring “holds,” and 3.0% are favoring “sells” on the stock. On average, analysts have given SBUX a price target of $68.44, which represents a potential upside of 6.6% for the stock. Since the company’s investors meeting on December 13, Morgan Stanley, Barclays, Stifel, JPMorgan Chase, BMO, Wells Fargo, and RBC have all raised their price targets on its stock. On January 10, Morgan Stanley raised its price target from $64 to $70. Barclays raised its price target from $65 to $69 on December 19. ## Stock performance The downgrade appears to have negatively affected Starbucks stock. Today, it was trading down ~2.7% in premarket trading hours. Since the beginning of 2019, it’s fallen 0.3% as of its January 10 closing price. During the same period, its peers McDonald’s (MCD) and Dunkin’ Brands (DNKN) have returned 2.2% and 9.5%, respectively. The broader comparative index, the Consumer Discretionary Select Sector SPDR ETF (XLY), which invests ~7.5% of its holdings in restaurant and travel companies, has returned 5.5% year-to-date.
To help investors keep up with the markets, we present our ETF Scorecard. The Scorecard takes a step back and looks at how various asset classes across the globe are performing. The weekly performance is from last Friday’s open to this week’s Thursday close. Despite worries about trade wars and an economic slowdown across the board, the U.S. job market is making great strides. In the last month of 2018, the U.S. economy added 312,000 jobs, nearly double the figure expected by analysts. The showing for November itself was revised up by 21,000 to 176,000. At the same time, hourly earnings increased by 0.4% in December on average compared with 0.3% expected by pundits. Such a rise in hourly earnings has not been seen since September. Meanwhile, the unemployment rate jumped from 3.7% to 3.9%, a sign the labor market is expanding and more people are joining the labor force. Amid market turbulence, Federal Reserve Chair Jerome Powell attempted to ease market concerns, saying he was aware of the risks stemmed from raising interest rates too quickly and was listening carefully to what the markets had to say. Stocks posted a strong rally this week. On Thursday, Powell spoke again, saying the Fed can be patient on monetary policy given the stable inflation. The Federal Reserve minutes revealed that policymakers have become more dovish, finally acknowledging the risks related to a slowdown in China, trade wars and political turbulence. U.S. non-manufacturing purchasing managers’ index (PMI) dropped dramatically in December, from 60.7 to 57.6, signaling a deteriorating sentiment. U.S. crude oil inventories declined by 1.7 million barrels in the week ended January 4, following two straight weeks of flat gains. Stockpiles have not seen a weekly rise since the end of November when they ended a ten-week streak of gains. U.K. economic output expanded 0.2% in November, beating expectations of 0.1%. The upbeat figure comes as the country still struggles to reach a Brexit solution, with the government and the Parliament at odds. An increasingly likely scenario is to push back the March 29 exit date to avoid chaos.
NIO Reports Solid Q4 Deliveries: Already Outperforming Tesla? ## NIO Today, Chinese electric carmaker NIO (NIO) announced its December vehicle deliveries and production data. The company crushed its fourth-quarter deliveries guidance of 6,700–7,000 units, delivering 7,980 cars. Let’s take a closer look. ## NIO’s December car deliveries data In December, the company delivered about 3,318 units of its seven-seater ES8 SUV, up about 7.4% from November, when it delivered 3,089 units—a solid 96.4% increase from 1,573 in October. In a press release, NIO’s CFO Louis T. Hsieh said, “We are pleased with the solid ramp-up in production and delivery in 2018, which demonstrated our execution capabilities.” ## NIO ES6 NIO launched its highly anticipated five-seater SUV- ES6 on December 15 at an event in Shanghai. It started taking priority pre-orders for the ES6 on December 1, limited to ES8 owners and their friends and requiring an invitation. The company started taking pre-orders without an invitation on December 15. We might expect the company to hint toward its ES6 pre-orders when it releases its fourth quarter of 2018 results in the first half of February. In its initial years, Tesla (TSLA) missed its quarterly car deliveries (XLY) guidance many times, which raised concerns about weak execution. In this respect, NIO seems to have already gone beyond the worries that Tesla faced initially. As of January 9, NIO, Tesla, Alibaba (BABA), and Baidu (BIDU) were up 4.1%, 1.7%, 10.8%, and 5.1%, respectively, month-to-date. Meanwhile, the S&P 500 benchmark and NASDAQ Composite Index have risen 3.1% and 4.8%, respectively, in January so far.
Consumer discretionary stocks, of those companies which offer goods and services which are desirable to consumers when they have sufficient means, were able to ride out some of the overall downward pressures on the stock market in late 2018. While many sectors plummeted in the final weeks of the year as a result of increasing trade tensions, geopolitical events and more, consumer discretionary companies were more likely than many of their rivals to see a boost from holiday shopping. For investors interested in broad exposure to the consumer discretionary space, exchange-traded funds (ETFs) remain a strong option.
Legacy automaker Ford Motor Company’s (F) stock is outperforming today, extending its solid gains of the last four sessions. While the company’s December sales fell 8.8% YoY (year-over-year), they were better than Edmunds.com’s estimates of a 9.5% YoY drop. Today at 3:18 PM ET, Ford was trading at $8.77, its high for the day and about 4.8% up from the previous closing day’s price. Let’s take a look at what could be driving today’s rally.
We have highlighted several ETFs that would be in focus in the days ahead given that the partial government shutdown is now the second longest in history.
Though the last quarter of 2018 was the worst in a decade for Amazon, it still has plenty to offer for investors, putting related ETFs in focus.
McDonald’s Stock Is Up 8.2% since Its Last Earnings: What’s Next? ## Stock performance As of January 8, McDonald’s (MCD) stock is trading at $180.22, which represents a rise of 8.2% since the company’s announcement of its third-quarter earnings results on October 23. The company is trading 22.7% higher than its 52-week low of $146.84 and 5.6% lower than its 52-week high of $190.88. In the third quarter, McDonald’s outperformed analysts’ EPS and revenue expectations. Also, the company’s same-store sales growth for the quarter came in at 4.2%, beating analysts’ expectation of 3.6%. Along with the company’s impressive third-quarter results, investors’ optimism surrounding its initiative to modernize its restaurants—including the implementation of self-order kiosks, the remodeling of its restaurants, and the expansion of its deployment of the Experience of the Future initiative—drove the stock’s performance. The company’s stock price was also positively affected by Morgan Stanley’s upgrade on November 29. The upgrade led MCD to hit a 52-week high of $190.88 on the day. ## Year-to-date performance In 2018, McDonald’s stock price rose 3.2%. In comparison, its peers Starbucks (SBUX), Wendy’s (WEN), and Jack in the Box (JACK) returned 12.1%, -4.9%, and -20.9%, respectively. The broader comparative index, the Consumer Discretionary Select Sector SPDR ETF (XLY), which invests 7.9% of its holdings in restaurant and travel companies, returned 0.3% in 2018. Since the beginning of 2019, McDonald’s has returned 1.5%, while Starbucks, Wendy’s, and Jack in the Box have returned -1.3%, 3.5%, and 4.9%, respectively. Next, let’s look at analysts’ recommendations for McDonald’s. Continue to Next Part Browse this series on Market Realist: * Part 2 - Why Analysts Continue to Favor ‘Buy’ Ratings for McDonald’s * Part 3 - What Analysts Expect from McDonald’s Revenue in 2019 * Part 4 - Analysts Expect McDonald’s EPS Growth to Slow in 2019
Why Tesla Is Up 6% Today ## Tesla stock On Monday, January 7, Tesla stock was rallying for the second consecutive day. The stock started 2019 on a negative note with 4.5% losses last week. However, on Friday, the stock saw a sharp recovery of about 5.8%, mainly due to the broader-market optimism. Extending these gains, at around 1:10 PM ET, TSLA was trading with 6.0% gains at $336.60. Let’s find out what could be driving optimism in the stock today. ## Key positive factors In a recent series of tweets, Tesla CEO Elon Musk said, “Looking forward to breaking ground on the @Tesla Shanghai Gigafactory today!” He added that Tesla is “aiming to finish initial construction this summer, start Model 3 production end of the year & reach high volume production next year.” In the last couple of quarters, China’s high tariffs on US-imported vehicles has hurt Tesla’s competitiveness in the country and affected its margins. As a result, the company sped up its plans to build its Shanghai-based Gigafactory, where it plans to produce cars as well as batteries. Musk, in his tweets, also said that the China Gigafactory “will produce affordable versions of 3/Y for greater China. All Model S/X & higher cost versions of Model 3/Y will still be built in the US for WW market, incl China.” Tesla signed a cooperative agreement with Shanghai authorities to start building the Gigafactory in July. The company’s update today on its Chinese Gigafactory could the main factor driving the stock up, apart from the broader-market positive movement. Interestingly, in the fourth quarter of 2018, Tesla yielded a 25.7% positive return despite the broader-market sell-off. Other automakers (XLY) General Motors (GM), Ford (F), Fiat Chrysler (FCAU), and NIO (NIO) lost 0.7%, 17.3%, 17.4%, and 8.7%, respectively, in the last quarter.
Ford Stock Rallied over 4% Today despite Terrible December Sales ## Ford stock Legacy automaker Ford Motor Company (F) has been disappointing investors for the last five years. The stock remained in negative territory in four of those five years, just not in 2017, when it yielded a still dismal 1.4% positive return. The company made big changes to its top leadership in May 2017, replacing its former CEO Mark Fields with Jim Hackett. But these efforts were in vain as it continued to yield a negative return, losing 38.3% in 2018. ## Terrible December sales Today, Ford’s stock posted a day high of $8.12, up about 4.4% from its previous session’s closing price. Yesterday, the company reported an 8.8% year-over-year decline in its December sales to 220,774 units despite holiday season discounts. This was the fourth consecutive month when Ford’s home market sales continued to fall on a year-over-year basis. December 2018 was also the fourth sequential month when its trucks segment sales, especially F-Series units, fell year-over-year. Last month, Ford’s passenger car sales fell 27.8% year-over-year to 34,950 units. But more worrisome was a decline in its SUV and truck segment sales. The company posted 4.4% and 3.8% year-over-year declines in SUV and truck US sales, respectively. Plus, the company continues to struggle in China. Its sales in the country had tanked 34% in the first 11 months of 2018 while it’s yet to report its December Chinese sales. ## Then why did the stock go up? Apart from today’s broader-market recovery, Ford’s consistency in F-Series US sales of over 70,000 units per month and solid F-Series pickup transaction prices could be the main reason for its stock rally today. In 2018, other mainstream automakers (XLY) General Motors (GM), Toyota (TM), and Fiat Chrysler (FCAU) also lost 24.7%, 11.9%, 26.5%, respectively. Subscribe now to Market Realist Pro and receive our newsletters The Thirty Percent and Disruptors & Innovators, featuring stock recommendations from our CEO, JP Gravitt, and market strategist Joey Solitro.
Ford Motor Company (F), the second largest US automaker, released its US sales figures for December 2018 yesterday. December 2018 was the fourth consecutive month that Ford’s F-Series sales continued to fall. Last month, Ford’s F-Series sales fell by 1.8% YoY to 87,772 units.
Ford's December Sales Tanked 8.8%: Is a US Slowdown Coming? In December, all of Ford’s segments by vehicle type reflected weakness. Its passenger car sales fell 27.8% YoY to 34,950 units in the month.