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The Latest from
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November 27, 2019
The Goodyear Tire & Rubber Company (GT:USA) currently trades near recent lows relative to UAFRS-based (Uniform) Assets, with a 0.6x Uniform P/B, implying bearish expectations for the firm, but management is...
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November 26, 2019
Each week, the Valens Research team highlights our most interesting insights from across our tools and our analysis, including individual company, industry, and macro insights. Top Highlight: UNH – UnitedHealth Group Incorporated Other Highlights: COST, MSFT, OMC...
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November 26, 2019
Ford Motor Company (F:USA) currently trades below corporate averages relative to UAFRS-based (Uniform) Earnings, with a 17.1x Uniform P/E. At these levels, markets are...
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November 25, 2019
Omnicom Group Inc. (OMC:USA) currently trades below corporate averages relative to UAFRS-based (Uniform) Earnings, with a 13.2x Uniform P/E, implying bearish expectations for the firm. However, management...
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November 22, 2019
Microsoft Corporation (MSFT:USA) currently trades at historical highs relative to UAFRS-based (Uniform) Earnings, with a 23.6x Uniform P/E. However, even at these levels...
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November 21, 2019
Each week, Valens focuses on several companies that were analyzed in the prior week, where material distortions caused by as-reported GAAP accounting need to be corrected to understand a company’s economic fundamentals.
Company Specific Highlights & Insights...
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November 21, 2019
UnitedHealth Group Incorporated (UNH:USA) currently trades below recent averages relative to UAFRS-based (Uniform) Earnings, with a 17.9x Uniform P/E. At these levels, the market...
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November 21, 2019
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November 21, 2019
Summary Headlines – Inside This Month
- Early credit warning signs and accelerating growth sounds like a late stage Bull. The last few Market Phase Cycle reports read like a mid cycle Bull report for a sideways market digesting earnings growth. However, fundamental and management sentiment data coming out of Q3 earnings season point to accelerating earnings growth, at the same time that credit lending standards are starting to flash signs of tightening. This is a classic set up for the beginning of the late stage of a bull market, where growth takes over, driving a market higher. Signs of strong 2020 earnings growth and growing management confidence on this issue point to continued reason for fundamental acceleration
- While credit lending standards point to early reasons for monitoring credit, there are still no signals of an impending credit crisis. Low cost to borrow, favorable credit fundamentals, and a recent wave of refinancing gives room for corporates. A low to no credit risk environment suggests limited risk to US equities in 2019 and into 2020...