Commodity Channel Index
|Bid||117.90 x 800|
|Ask||117.89 x 1300|
|Day's Range||116.82 - 118.14|
|52 Week Range||94.34 - 128.09|
|Beta (5Y Monthly)||0.42|
|PE Ratio (TTM)||63.61|
|Earnings Date||Jul 28, 2020 - Aug 03, 2020|
|Forward Dividend & Yield||3.16 (2.70%)|
|Ex-Dividend Date||Apr 23, 2020|
|1y Target Est||129.43|
Investors fortunate enough to have bought Chevron (NYSE:CVX) stock at its March 23 low of $54.22 per share have made a very nice return. Since then, Chevron stock rebounded nicely to trade in the low-$90s for the past month. At $91.70, there's a lot of upside between here and $120, which is where CVX traded for basically all of 2019.Source: Jeff Whyte / Shutterstock.com Share prices may very well rise to meet those pre-pandemic levels. And investors will continue to pile on considering its potential upside. But even if they do, I'd stay away from Chevron for several reasons.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Chevron Stock Revenue Per Share Continues SlidingInvestors like to see revenue per share within a given company rise. After all, they give their money to companies for shares of stock. The underlying premise is that companies will invest it wisely, producing increasing revenue, and ultimately, rising stock prices.But Chevron stock's revenue per share has been doing the opposite for the past five years. And that should make investors think twice. Chevron does not have the ability to make money as easily as it did in the past. The dual shocks of recent oil price wars and coronavirus put that truth in stark contrast for the entire oil industry. Not just Chevron. But even before the recent shocks, signs like Chevron's sliding revenue per share year-after-year pointed to the same conclusion … Oil's heyday has likely passed. * 10 Penny Stocks to Buy Under $5 That Might Be Worth the Risk Fossil fuel pundits will point to alternative energy, and its inability to thus far supplant oil, to counteract the idea that oil is on the decline. They'll also project that oil will have a resurgence in the coming years because crude prices are near decade lows. And while oil may rise again, the trend toward a more varied energy landscape is an irreversible one. Chevron's stock will feature heavily in this conversation. Gross Margins Are SlippingTo be fair, oil has been having a rough go of it over the last several years. So, Chevron does deserve some leeway in that its industry faces strong external headwinds. But gross margins have been decreasing 5.7% long-term. That means the cost of goods sold has increased relative to revenue. Put another way, it has cost Chevron more and more to make a dollar, each of the past five years. Investors want to buy shares in companies that adapt efficiently, finding new revenue in changing times. Chevron hasn't been able to do that. Being an Aristocrat Isn't Always GreatThe company is a member of the so-called dividend aristocrats. As per Investopedia, the dividend aristocrats are companies distinguished by having paid increasing annual dividends for the past 25 years.>Being a dividend aristocrat is viewed positively by the market. The expectation is that these companies will continue to do what they have done for such a long period of time -- consistently increase their dividends.Part of the reason such established companies pay dividends is as an enticement to investors. Dividend aristocrats are not companies that are going to grow at a fast pace. Such days are well behind these companies. Investors do not purchase a Chevron or a Procter & Gamble (NYSE:PG) with the expectation of making a significant return on investment via stock price appreciation. Rather, investors purchase these companies under the assumption that dividend income will flow therefrom. And it does -- but this predictability comes at a cost. Chevron Stock's Payout Ratio Is UnhealthyChevron's dividend payout ratio is among the weakest in the oil and gas industry over the past decade-plus. This puts Chevron's management between a rock and a hard place. Investors love Chevron's dividends, but management is hamstrung by them. InvestorPlace's Thomas Neil sees the same inherent dividend problem facing Chevron, adding that recent stock gains are likely to taper off.The problem for Chevron and the other dividend aristocrats is simple. These companies must prioritize dividends each quarter, no matter the circumstances. That gets expensive, and it means that Chevron has to sacrifice that cash for the dividend even when there are other needs within the company. Because the market will react swiftly to punish dividend stocks that unexpectedly miss a dividend payout.There's little risk of Chevron reducing or missing a dividend soon. But that's not really what's important. The more cash Chevron has to earmark quarter after quarter to pay ever increasing dividends, the less it has to reinvest in the company. For Chevron (a company in a changing industry), such cash could otherwise be directed toward investments that improve efficiency, gross margin and revenue per share. Bottom Line on ChevronFundamental stock analysis views all of the problems listed above as red flags. These warning signs don't bode well for Chevron in the medium to long term. As an investor, such factors should give you pause when deciding whether to add Chevron to your portfolio.Technical analysts will view Chevron based much more on the movement of stock's recent price with less regard for underlying financial indicators. And neither school of thought is inherently wrong or right. Each investor views the market through their own particular lens.Personally though, in judging a mature stock like Chevron, I like to first see fundamentally sound financials, and then positive technical indicators. In this case, I see little of the former, giving me no reason to search for any of the latter.As of this writing, Alex Sirois did not hold a position in any of the aforementioned securities. More From InvestorPlace * Top Stock Picker Reveals His Next 1,000% Winner * The Huge Story for 2020 & Beyond That You Aren't Hearing About * Revolutionary Tech Behind 5G Rollout Is Being Pioneered By This 1 Company * The 1 Stock All Retirees Must Own The post Chevron Stock's Fundamental Issues Outweigh Its Upside Potential appeared first on InvestorPlace.
Investors are always ready to buy into a good value, and in today’s markets – with their combination of bear cycle and bull rally – those value stocks are more appealing than ever. Using TipRanks’ database, which features extensive market data collated in real time, we’ve pulled up the details on three great stock market values. All three of these stocks offer investors a solid package: a one-year upside potential of at least 10%, a dividend over 2%, and a history of long-term share appreciation. While all three are down in the current market cycle, Wall Street’s analyst corps sees each of them as a Strong Buy. Even the economic shutdowns, which forced so many companies into losses for Q1, couldn’t derail these three – each showed profits in the quarter, and beat the earnings forecasts. Let’s dive into the details, and find out what makes these three stocks so valuable. Procter & Gamble Company (PG) We’ll start with one of the blue-chip staples of the Dow Jones average. Procter & Gamble showed steady earnings growth through 2019, beating estimates in every quarter, before recording a sharp drop in Q1. That drop, however, needs to be put into context – the company’s calendar first quarter is historically its lowest of the year. Not to mention Q1 2020 reflected both a fifth consecutive earnings beat and a modest year-over-year gain of 4.4%, despite the economic shutdowns. In an odd way, the coronavirus crisis may have even helped PG – the company’s strong presence in the home & consumer health, personal care, and hygiene niches meant that demand for PG products remained strong, even as overall consumer activity declined. In the company’s Q1 earnings release (PG’s fiscal Q3), the company reported 4.2% year-over-year revenue growth. In addition to its solid position in the current environment, Procter & Gamble is also one of the market’s true dividend champs. The company has a 16-year history of steady dividend growth and reliable payments. The current payment is 79 cents, the company raised it by 4 cents in Q1, annualizing to $3.16 per quarter and giving a yield of 2.7%. While that is only slightly higher than the consumer goods sector average of 2.5%, Procter’s dividend is backed by that long history – and it has a payout ratio of 64%, indicating that the payment is easily sustainable with current income levels. Covering PG stock for Evercore ISI, Robert Ottenstein headlines his note “Better, More Resilient, Wiser.” As for forward prospects, Ottenstein writes, “We see Procter as a reliable 6-8% EPS grower, as underscored by the firm’s confidence to raise the dividend by 6% in the face of unprecedented challenges…” Ottenstein keeps his Buy rating on PG shares, and raises his price target from $130 to $140. This implies 21% upside potential for the stock in the coming 12 months. (To watch Ottenstein’s track record, click here) Overall, PG’s Strong Buy analyst consensus rating is based on 10 reviews, which include 9 Buys against a single Hold. Wall Street is slightly less aggressive here than Ottenstein, but the $133 average price target still suggests an upside potential of 15%. (See Procter & Gamble stock analysis on TipRanks) Linde PLC (LIN) Next up is Linde, an important player in the industrial gas industry. This is not a consumer utility; rather, Linde dominates the market for pure gasses such as oxygen, nitrogen, hydrogen, and argon, along with compound gasses such as carbon monoxide. All have important uses in industry, especially within the medical and HVAC sectors – which have been deemed essential even during the public health crisis. Like PG above, Linde has a secure niche and product line-up despite the recessionary pressures. The quality of Linde’s market position is demonstrated by the quarterly performance. Where most companies registered declines or even losses, Linde reported Q1 EPS level with Q4. At $1.89, the quarterly earnings beat the forecast by 3.2%, and was the fifth quarter in a row to top the estimates. In another similarity to PG, Linde’s continued profitability is directly related to its strong presence in the healthcare industry. Some 20% of company revenues come from sales in the medical field (oxygen, for example, is a vital item in treating respiratory ailments), and Linde has been able to successfully absorb losses in other segments. With revenues secure, Linde was not shy about declaring its dividend going forward. The company announced that it will pay out 96 cents per share in Q2. That annualizes to $3.85, and gives a yield almost exactly at the S&P average: 2%. Michael Sison, 5-star analyst with Well Fargo, makes the simple case for LIN shares, “[We] believe this stable cash flow business and strong balance sheet make LIN an attractive story in the current uncertain environment. We also view LIN as a growth story, with the $9.5B project backlog as the pipeline for future earnings growth. Finally, we continue to expect the company to deliver on additional merger cost and revenue synergies once the recovery starts to take shape, likely before 2021.” To this end, Sison puts a $235 price target on the stock, showing his confidence in a 16% one-year upside potential. With this positive outlook, Sison rates the stock a Buy. (To watch Sison’s track record, click here) LIN is another stock with a Strong Buy analyst consensus rating. The shares have 22 reviews on record, breaking down into 17 Buys and 5 Holds. The current trading price is $202.34, and the average price target of $216 implies room for 7% growth this year. (See Linde stock analysis on TipRanks) Raytheon Technologies (RTX) Last on our list is Raytheon, a staple in the aerospace and defense industries, as well as a major contractor for the Pentagon. Raytheon’s better-known products include radars for the Air Force’s front line fighter aircraft and many of the military’s front line air-to-air and air-to-surface guided missiles. No one ever went broke selling weapons, and Raytheon is a good example of that old saw. The company’s $1.78 Q1 EPS was 60% higher than the estimates. Even more impressive, it was the eighth quarter in a row that RTX beat the earnings estimates. The solid EPS was derived from $18.2 billion in revenues, a figure in-line with both the estimates and the year-ago figure. Raytheon management declared a 47.5 cent quarterly dividend, to be paid out in June. In deference to the difficult economic times, and the possibility of reduced defense contracts as budgets contract, this dividend was a sharp decline from the 74 cents paid out in Q4. The important point for investors, however, is that Raytheon remains committed to maintaining its dividend, with the yield at 2.8%, which is above the industrial goods sector average of 2%. In his note on RTX for Credit Suisse, 5-star analyst Robert Spingarn states, “[We] assume that RTX defense can sustain a 2019-2022 sales CAGR of 6%+ (consistent with its record backlog), and that improving trends for defense margins, working capital, and capex can offset pension headwinds, then RTX defense likely stands to generate ~$5.3 billion of FCF in 2022…” This solid outlook contributes to his Buy rating and $81 price target on the stock. At current prices, this target implies a 26% potential upside to RTX. (To watch Spingarn’s track record, click here) With a share price of $64.52, and an average price target of $75.25, RTX boasts a 17% upside potential for the next 12 months. The consensus on the Street here is a Strong Buy, with 11 Buy reviews and 3 Holds. (See Raytheon stock analysis on TipRanks)
DOW UPDATE Shares of Merck and Pfizer are trading higher Thursday afternoon, sending the Dow Jones Industrial Average into positive territory. Shares of Merck (MRK) and Pfizer (PFE) are contributing to the blue-chip gauge's intraday rally, as the Dow (DJIA) is trading 86 points, or 0.
DOW UPDATE Shares of Boeing and Pfizer are posting strong returns Thursday afternoon, propelling the Dow Jones Industrial Average into positive territory. The Dow (DJIA) was most recently trading 205 points, or 0.
DOW UPDATE The Dow Jones Industrial Average is climbing Thursday morning with shares of Boeing and Merck delivering the strongest returns for the blue-chip average. The Dow (DJIA) is trading 138 points higher (0.
Distillate Capital recently released its Q1 2020 Investor Letter, a copy of which you can download below. The Distillate Capital’s U.S. Fundamental Stability & Value (U.S. FSV) strategy posted a return of -19.39% for the quarter (net of fees), outperforming its benchmark, the S&P 500 Index which returned -19.60% in the same quarter. You should […]
Lysol is starring with celebrities and rock-bottom prices in the $8 trillion global travel industry's pitch to get people back on the road and in the air. What was scrubbed from view now leads marketing campaigns as cleanliness is tops for travelers in the coronavirus era, marketing experts said. As the summer vacation season kicks off, airlines and hotel chains are racing to brand themselves as spotless, in efforts to wipe out memories of grimy seat-back tray tables and bed bug-ridden rooms for travelers fearing exposure to the coronavirus.
In an effort to keep trading during the coronavirus pandemic, Old Ebbitt Grill, one of Washington DC’s oldest restaurants, began serving takeaways. Its menu, which usually offers oysters and steaks to tourists lunching across from the White House, now features a new item: toilet paper, costing $2.50 a roll and limited to two per order. As the Covid-19 panic-buying empties supermarket shelves of toilet paper, many restaurants, hotels and offices — devoid of their usual visitors — are flush with it.
Procter & Gamble (NYSE:PG), a leading fast-moving consumer goods company, announces collaboration with Shopee, a leading e-commerce platform in Southeast Asia and Taiwan, with the launch of Show Me My Home*, an online campaign that simulates the household environment to provide consumers with a seamless and easy online shopping experience.
Insider Monkey has processed numerous 13F filings of hedge funds and successful value investors to create an extensive database of hedge fund holdings. The 13F filings show the hedge funds' and successful investors' positions as of the end of the first quarter. You can find articles about an individual hedge fund's trades on numerous financial […]
Today, Gillette (NYSE: PG) is announcing the launch of King C. Gillette, a new brand offering the complete range of tools and products any man needs to help him perfect his facial hair style and grooming regimen at home. Inspired by more than 115 years of innovation and grooming experience, the line gives a nod to the company's heritage by bearing the name of founder King Camp Gillette, with products that meet the grooming needs of today's man.
While it's not the end-all indicator of a company's staying power, a company that has consistently raised its dividend for decades is likely one that possesses a durable competitive advantage that allows it to grow its revenue and profits over time. Here are two stocks that have delivered a good balance of capital appreciation and rising dividend payments for more than 25 years. Walmart (NYSE: WMT) currently pays a dividend yield of 1.72%.
DOW UPDATE The Dow Jones Industrial Average is up Friday afternoon with shares of UnitedHealth and Travelers leading the way for the price-weighted average. Shares of UnitedHealth (UNH) and Travelers (TRV) are contributing to the index's intraday rally, as the Dow (DJIA) is trading 7 points (0.
Major stock indexes held in a tight intraday range Friday, not moving much in either direction. The Nasdaq composite and S&P 500 firmed up after some selling Thursday as growth stocks outperformed. The Dow Jones Industrial Average was led by Procter & Gamble (PG). Big winners in the Nasdaq 100 included Lululemon Athletica (LULU), featured in today's New Highs story,...
PG stock outperforms the S&P; 500 by a margin of over 25%. This Dow leader offers both stability and growth. Is Proctor And Gamble stock a buy?
Wall Street is itching to know what’s on Nelson Peltz’s shopping list after the activist investor teased two new positions last week. Gordon Haskett suggests Colgate-Palmolive and Dollar Tree.
P&G; Ventures, the early-stage startup studio within P&G; (NYSE:PG), is inviting entrepreneurs, inventors, and startups to submit a product pitch for its first-ever Virtual Innovation Challenge. The challenge, now in its third iteration, seeks out budding entrepreneurs who are driving the next generation of technologies that will change consumers' lives, and helps fuel innovation amidst the global pandemic.
Very few stocks do well when the economy is spluttering, so the best option for an investor generally is to find someplace to hide their investment funds while waiting for things to get better. The company provides co-location and interconnection services and owns 225 data centers.
DOW UPDATE The Dow Jones Industrial Average is trading down Tuesday afternoon with shares of Merck and Procter & Gamble facing the biggest setback for the blue-chip average. Shares of Merck (MRK) and Procter & Gamble (PG) are contributing to the blue-chip gauge's intraday decline, as the Dow (DJIA) was most recently trading 109 points (0.
DOW UPDATE Behind negative returns for shares of Merck and Procter & Gamble, the Dow Jones Industrial Average is declining Tuesday afternoon. Shares of Merck (MRK) and Procter & Gamble (PG) have contributed to the blue-chip gauge's intraday decline, as the Dow (DJIA) was most recently trading 36 points, or 0.
DOW UPDATE The Dow Jones Industrial Average is declining Tuesday afternoon with shares of Merck and Home Depot delivering the stiffest headwinds for the price-weighted average. The Dow (DJIA) was most recently trading 99 points lower (-0.
DOW UPDATE The Dow Jones Industrial Average is declining Tuesday morning with shares of Exxon Mobil and Chevron delivering the stiffest headwinds for the index. Shares of Exxon Mobil (XOM) and Chevron (CVX) are contributing to the blue-chip gauge's intraday decline, as the Dow (DJIA) was most recently trading 29 points lower (-0.