|Bid||0.00 x 1400|
|Ask||0.00 x 4000|
|Day's Range||105.11 - 105.80|
|52 Week Range||87.89 - 109.34|
|PE Ratio (TTM)||N/A|
|Expense Ratio (net)||0.14%|
As of May 22, Domino’s Pizza (DPZ) was trading at $248.21, which represents growth of 6.3% since the announcement of its first-quarter earnings on April 26. The company had posted adjusted EPS of $2.0 on revenues of $785.4 million. Analysts were expecting the company to post EPS of $1.77 on revenues of $691.9 million. The company also outperformed analysts’ SSSG (same-store sales growth) expectation of 5.4% in the domestic market by posting 8.3%. Domino’s strong sales and earnings in the first quarter appear to have increased investors’ confidence, leading to a rise in its stock price.
Will US-China Trade War Relief Be Fruitful for the Auto Industry? In the week ended May 18, Ferrari stock (RACE) remained negative and settled at $132.53 with a drop of 2.6%. Let’s take a look at key technical support and resistance levels in its stock for the trading sessions.
Last week, Tesla stock (TSLA) fell sharply by 8.1% to $276.82 against a 0.5% drop seen in the S&P 500 Index. In the previous week, TSLA stock rose 2.4%. Tesla began the second quarter with optimism, and its stock recovered by 10.4% in April after witnessing the massive decline of 22.4% in March. TSLA ended Q1 in negative territory with 14.5% losses. In Q1 2018, auto stocks (XLY) General Motors (GM), Ford (F), and Harley-Davidson (HOG) fell 11.3%, 10.3%, and 15.7%, respectively.
Last week, Fiat Chrysler stock (FCAU) fell 3.7% to settle at $21.86. In the previous week, the stock lost ~1%. April proved to be a good month for FCAU, as its stock recovered 6.4% after falling in the previous two months. As of May 21, the company has delivered 2.3% MTD (month-to-date) positive returns as compared to 3.2% gains in the S&P 500 Index. Now, let’s find out what could be hurting FCAU’s stock in May.
The largest US auto parts retailer by store count, AutoZone (AZO), released its fiscal Q3 2018 earnings today before the market opened. The company’s third fiscal quarter covered the 12 weeks that ended on May 5. AZO’s third-quarter adjusted earnings rose 17% year-over-year to $13.42 per share, beating Wall Street’s consensus estimates of $12.97 per share.
Advance Auto Parts (AAP) released its fiscal Q1 2018 earnings today before the market opened, which covered the 16 weeks up to April 21. On the negative side, Advance Auto Parts’ first-quarter sales continued to disappoint investors with a negative trend for the third consecutive quarter. In the first quarter, the company’s net sales fell 0.6% year-over-year to $2.87 billion, also worse than Wall Street’s consensus estimates of $2.91 billion.
In the consumer sector, 93% of the companies have already reported their earnings for the first quarter. Last week was okay for most of the sectors in the S&P 500. The S&P 500 Index (SPY) fell 0.54% due to an ~3% and 1.4% slump in the utility and technology sectors.
The FAANG stocks need no introduction. Their cumulative market cap forms 27% of the NASDAQ. The Fidelity NASDAQ Composite Index Track (ONEQ) has 44% exposure to technology. It has a PE (price-to-earnings ratio) of 23.9x and a YTD (year-to-date) return of 6.3%. Facebook
Index providers Standard & Poor's and MSCI previously announced the creation of the communication services sector, an expanded, refreshed look at the old telecommunications sector. On Thursday, S&P Dow Jones Indices said the Communication Services Select Sector Index is up and running. As the communication services sector comes to life, big changes are coming for some well-known consumer discretionary and technology exchange traded funds, including the Consumer Discretionary Select Sector SPDR (XLY) and the Technology Select Sector SPDR (XLK) .
According to Reuters’ latest consensus data, 46% of analysts covering AutoZone (AZO) gave its stock a “buy” recommendation. 50% of these analysts recommended a “hold,” while only one out of the total 24 analysts gave it a “sell” rating. As of May 16, analysts’ consensus target price for AutoZone stock was $774.06 for the next 12 months, which reflected upside potential of about 20% from the market price of $647.93.
In April 2018, Ford Motor Company’s (F) F-Series US truck sales were at 73,104 units, which reflected sales gains of about 3.5% on a YoY (year-over-year) basis. In March, 87,011 units of F-Series trucks were sold in the US, up 7% YoY. In 2017, the company sold about 0.90 million F-Series units, reflecting 9.3% YoY growth. 2017 was the best year for F-Series US sales since 2005.
In the previous part of this series, we looked at some key reasons why AutoZone’s (AZO) revenue could continue to grow in Q3 2018. However, analysts’ estimates suggest that the company’s fourth-quarter margins could remain weak. In fiscal Q2 2018, AZO reported gross profit margins of 52.9%, better than its gross profit margin of 52.7% in fiscal Q2 2017. In contrast, AutoZone’s adjusted EBIT (earnings before interest and tax) margin fell to 16.7% in fiscal Q2 2018 as compared to 16.8% in fiscal Q2 2017.