Stocks investment
What was your goal?
Analysis:
· What was your stock picking strategy?
· List your initial 5 stocks and why you picked each one of them?
· At the Halfway point: What was your analysis? Did you change any? Why or Why not?
· At the End: How much money did you make for each stock and in total?
Conclusion:
· What should you have done differently?
· What conclusion can you make?
· References
Portfolio Review
2
Portfolio Review
Learning Team B
FIN/402
03/09/2020
Troy Mahone
The stocks in this portfolio are the following: PepsiCo, Apple, Microsoft, Aritzia, and Amazon. While investing in stock an investor should consider return, risk, features, stock quotes, and types of dividends. An analysis was conducted to determine if the aforementioned stocks should remain in the portfolio.
Stock Reviews and Discussion:
PepsiCo has a persistent dividend increase over the years and have extensive product line with increasing demand, which means that it will keep growing in the future as well. This stock should remain in the portfolio considering its persistent growth.
Apple’s dividend yield is 1.3% and is expected to increase in May 2020. Its quarterly revenue and profit has increased as compared to its previous yearly report. It is expected that its revenue and earnings will grow from 10% to 11% and 20% to 21% respectively. It shows that its stock will grow in the future so it is a good investment opportunity. Investors who have owned Apple stock over the past decade have been amply rewarded, as its shares are up close to 1,000% over this period. The iconic smartphone company has been at the forefront of the technological era, and its innovative culture and visionary products have captured the hearts and minds of many consumers. As a result, smartphones are now a ubiquitous part of life. Apple literally created a whole new industry from scratch through its iPhone, inviting a slew of other companies to mimic its features. However, other companies have not come close to establishing a parallel level of brand loyalty and status. The decision is to keep this investment due to its expected growth potential.
Microsoft has constant growth and its historical data shows it is a safer investment that provides predictable and constant growth due to its position in the marketplace as a long-time and trusted tech giant. While investment in this stock is not intended to provide immediate and significant returns, it out performs other players in its industry such as Cisco. When reviewing the prior five-year performance of these stocks, Microsoft had better yields and a more stable upward momentum. Hold on to this stock, as it is a less risky investment.
The Aritzia (ATZAF) has stable gross margins and its stock is predicted to be $29 higher this year, which indicates future stock growth so it will be beneficial in term of investment. In January of 2020 it reported positive comparable sales growth for its 21st consecutive quarter. This growth is only predicted to increase due to the company’s recent focus on digital online selling and the use of influencer marketing. It also branched out into the menswear market, which will increase its customer base (Aritzia, 2020). This investment also assists in the diversification of this portfolio. It is an industry separate from the tech industry. As stores are currently focused in Canada and only recently expanding throughout the U.S, it also provides diversification in terms of geographical and political factors that may affect its market price. As it is expecting future growth, this stock remains in the portfolio.
In 2016, Amazon’s gross profit was $47,722,000 and its net income applicable to common shareholders was $2,371,000. While in 2019, its end of year gross profit totals were up to $114,986,000, with net income applicable to common shareholders also increased to $11,588,000. These values indicate a growth trend in the company. It joined the grocery/meal delivery service; and has been investing in computing, transportation, and video services. Amazon is leading the market with their Amazon smart speakers and now offers next day shipping for their prime membership customers. It is constantly joining new markets to expand its available services and to become more competitive. Amazon is beginning to join the transportation market, to offer its own delivery service, and is discussing health/online pharmacy options as well. Ninety-six out of a ninety-nine IBD Composite Rating proves that Amazon is a fantastic stock to invest in, with an 84 Relative Strength Rating (Deagon, 2020). Even though its stock value has slightly decreased, it is expected to bounce back. Continue to hold this investment based on historical trends and potential for future growth.
The stocks discussed above are thought to be good investments as they are either proven to have great return on investment with consistency or are a solid start-up with massive growth and expected potential. The mix of stocks selected offer diversification in terms of industry, geography and political environments. We feel confident that investment in these companies will provide a strong and profitable portfolio.
References
Aritzia. (2020, January 9). Aritzia Reports Third Quarter Fiscal 2020 Financial Results. Retrieved from Aritzia: https://investors.aritzia.com/investor-news/press-release-details/2020/Aritzia-Reports-Third-Quarter-Fiscal-2020-Financial-Results/default.aspx
Deagon, B. (2020, March). Is Amazon Stock A Buy Right Now? Here’s What Earnings, Charts Show. Retrieved from Investor’s Business Daily: https://www.investors.com/news/technology/amazon-stock-buy-now/
Smart, S. B., Gitman, L. J., & Joehnk, M. D. (n.d.). Fundamentals of Investing. Pearson.
What was your goal?
Analysis:
· What was your stock picking strategy?
· List your initial 5 stocks and why you picked each one of them?
· At the Halfway point: What was your analysis? Did you change any? Why or Why not?
· At the End: How much money did you make for each stock and in total?
Conclusion:
· What should you have done differently?
· What conclusion can you make?
· References
Format your submission consistent with APA guidelines.
Investing in Stocks
2
Investing in Stocks
Learning Team B
Fin/402
3/2/2020
Troy Mahone
Investing in Stocks
When considering which stocks to invest in there are a few things to consider. Such as return, risk, features, stock quotes, and types of dividends. When searching for 5 companies currently traded on the NASDAQ that we thought we should invest in we considered these things. We chose PepsiCo, Apple, Microsoft, Aritzia, and Amazon.
Our Top 5 Stocks
PepsiCo is known for its popularity among the beverage and snack industry. It is a billion-dollar company which has maintained a streak of consistently increasing dividend for 47 years now. Among the reasons why people should invest in this company is the extensive product range which is still growing by the day. This extensive product line caters to billions of people and is a constant favorite which means its demand will probably never stop.
Apple is one of the biggest smartphone companies in the world. In current times, the return promised by Apple is 1.3% dividend yield and an increase can be expected by investors in May 2020. Based on Apple’s latest earnings release for the quarter ending December 31, the company reported a quarterly revenue of $91.72 billion and net profit of $22.24 billion. In comparison, last year the company earned revenue of $84.37 billion and had a net profit of $19.97 billion. As of March 1,2020, shares of Apple (NASDAQ:AAPL) fell as much as 6.3%. Experts are predicting that this year’s revenues will grow about 10% to 11% and earnings growing 20% to 21%. Estimates keep going higher, the company keeps making more money, and margins are also going higher. It’s setting up for a very good opportunity and a reasoned buy.
Microsoft is a multinational company which reaches the global market as its target market which means its demand is also global. has had constant, nearly uninterrupted growth in the last 5 years, experiencing only one major dip at the start of 2019, but fully recovering and continuing its constant upward growth. In 2015 the value of MSFT began the year at 43.05 and as of Feb 29th it closed at 163.33. There was a steep rise at the end of January of 2020. As of Feb 29th, MSFT market cap is 1,232,255,676,090, 50-day average is 31,917,072, PE ratio is 28.22. The earning’s/share is $5.74. While this stock is not likely to achieve very high returns today, it’s historical data shows it is a safer investment that provides predictable and constant growth due to its position in the market place as a long time and trusted tech giant.
The Aritzia (ATZAF) is one of the trendiest names in current fashion. The clothing retailer based out of Canada had six consecutive quarters of double-digit revenue growth leading into 2020. The clothing retailer invests strongly in infrastructure, talent, and marketing. Even in times of rising raw material costs, Aritzia able to maintain stable gross margins by focusing on sourcing terms and higher sales volumes. The stock while currently down, has a six-month trend of increases in price. On 02/27/20 the stock closed at $16.54, however analysts are predicting a $29 high this year. Market cap is $1.672B. This company has been a favorite among Canadian’s for years, only now starting to develop a following in the U.S. It was recently noted as a strong buy right before the holiday season. As this is currently lesser known but strong, it is beneficial to buy now.
Amazon’s mission statements says that it wants to be the most customer-centric which means customer satisfaction is very important for Amazon. Amazon is a very low risk business to invest in with high capital stock gains. As of February 28th, 2020, the Amazon Market Cap is $937,750,423,885; 50-day average vol. is $4,146,009, and their PE Ratio being 81.87. At the end of 2016, the Amazon gross profit reached $47,722,000 and their net income applicable to common shareholders were $2,371,000. Three years later, in 2019, their end of year gross profit totals were up to $114,986,000 with the net income applicable to common shareholders also being up to $11,588,000. While the stocks may be down right now by 0.03%, they shouldn’t be down too long. Amazon is a growing company and is a go to business for many people these days. It is very common for most individuals to go to the Amazon.com website to price products before their final purchase, if their final purchase is through Amazon or not (“Nasdaq”, 2020).
Conclusion
All of these stocks are considered good investments as they are either proven to have great return on investment with consistency or are a solid start-up with massive growth and expected potential. We feel confident that investment in these companies would provide strength and profitability to any portfolio.
References
Market Activity. (2020, Mar 01). Retrieved from Nasdaq: https://www.nasdaq.com/market-activity/stocks/atzaf
NASDAQ. (n.d.). Retrieved FEBRUARY 29, 2020, from NASDAQ: https://www.nasdaq.com/
Retail Stocks. (2020, Mar 1). Retrieved from Yahoo: https://finance.yahoo.com/m/ad2f787b-8b67-3e64-b256-fff09e52df70/ss_2-%E2%80%98strong-buy%E2%80%99-retail-stocks.html
2
Evaluating Stocks
Evaluating Stocks
Learning Team B
FIN/402
03/16/2020
Troy Mahone
The stocks in this portfolio are the following: PepsiCo, Apple, Microsoft, Aritzia, and Amazon. An assessment was conducted to establish if the stocks should remain in the portfolio.
Stock Reviews and Discussion
If I review the investment in PepsiCo., the business has reflected a slight decrease in the stock price, as being traded daily on the floor, the reason which we can assume is the over all market turbulence, being caused by the Oil market, and it is directly impacting US economy, and hence reflecting the same on the stocks trade in the market.
Apple Inc., stock has also reflected a bit decline as directly related to activities being performed in the market, more over the share is constantly moving the range of $30 up/down, being range bound, hence reflects that the business is performing well, and keeping at the place in the market. Citing Chinese government data, Reuters recently reported that Apple sold just 494,000 iPhones in the country in February. That was a steep decline from the 1.27 million units the company had shipped in the prior-year period and the two million units sold in January. The situation was bad across the board, as overall smartphone shipments fell 54.7% annually during the month, according to the China Academy of Information and Communications Technology.
Microsoft has reflected a steady decline, although it is not much material, and market expectancy is to correct it, I believe the more effect on Microsoft stock price down fall is related to news spread in the market, that Bill Gates is resigning himself, from the position of the President and leaving the board, market sentiments are attached to this news, but I believe in coming few months, business is going to show tremendous growth in the shares value. I feel that Microsoft offers many types of shares like mutual funds holders, individuals, stakeholders and other institutional shares. With these shares they are often bought and sold. The rates of shares range 42.14% to 6.18%.
Aritizia has shown some of the great moment during the last tenure, touching up the higher side and then again the lower side, is a mixed up reaction, as it moved between range of $200-250 in few days, the reason of such movement is overall market performance, the oil war, and the Corona virus worldwide economic impact. The current state of our society has resulted in a very volatile market. In times like these investors may be cautious towards putting their savings into stocks. However, this is also a good time to buy at low prices. ATZAF has seen a decline in market price over the past month, however a significant amount of that decline can be attributed to nation-wide panic. Most of the clothing inventory held by Aritzia comes from Vietnam. Countries in Asia are being hit especially hard by the virus and as a result North American companies are seeing experiencing breaks in their supply chains. The company itself if still strong and considered a good buy. Share price was at a lifetime high in February, immediately before the nationwide emergency was declared. Investors should hold what they have and wait to see if the price continues to drop, then purchase more. If the stock continues to perform how it did prior to the emergency, it could mean high returns for investors who buy during this period of falling prices.
Amazon has also reflected, just like all other stocks in portfolio, a slight downward trend, but yet has not taken up much correction, as the other stocks have taken, over all the stock is still in good and positive outlook. As of March 13, 2020, Amazon has a 6.46% (108.39) increase ($1785.00). According to Amazon Analyst Research Ratings, investing in Amazon common stock is a strong buy, with an average price target of $2430.54 (high estimate is $2700 and low $2150). In millions, the total value of holdings is $512,614, with the total shares outstanding being 498, with 57.69% being institutional ownership. The total institutional shares are 287,178,635 with 3,099 holders (Nasdaq, 2020). While the market continues to decline, online businesses like Amazon, continue to strive – shipping necessary items, straight to your front door!
Conclusion
The market overall is impacted because of world events, and still showing resistance to downward trends, the portfolio worth is slightly moving up/down, depending upon market sentiments, but this is clear that the over all market is being impacted by the Oil war, and the Corona virus global economic impacts.
We believe the portfolio is still healthy and will show related correction over the period of time.
References
Nasdaq. (2020, January 9). Amazon.com,Inc Common Stock. Retrieved from Amazon: https://www.nasdaq.com/market-activity/stocks/amzn/analyst-research
Deagon, B. (2020, March). Is Amazon Stock A Buy Right Now? Here’s What Earnings, Charts Show. Retrieved from Investor’s Business Daily: https://www.investors.com/news/technology/amazon-stock-buy-now/
Smart, S. B., Gitman, L. J., & Joehnk, M. D. (n.d.). Fundamentals of Investing. Pearson.