...Read More
The Latest from
-
July 30, 2021
NIKE, Inc. (NKE:USA) currently trades near historical highs relative to UAFRS-based (Uniform) earnings, with a 30.9x Uniform P/E. At these levels, the market has bullish expectations for the firm...
Read More -
July 29, 2021
Veeva Systems Inc. (VEEV:USA) currently trades at a historical high relative to UAFRS-based (Uniform) earnings with a 108.4x Uniform P/E, implying bullish expectations for the firm...
Read More -
July 28, 2021
General Mills, Inc. (GIS:USA) currently trades near corporate averages relative to UAFRS-based (Uniform) earnings, with a 21.7x Uniform P/E. At these levels, the market is pricing in expectations for profitability to contract...
Read More -
July 27, 2021
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: LPLA – LPL Financial Holdings Inc. Other Highlights: DOCU, GM, MAR...
Read More -
July 27, 2021
Dollar General Corporation (DG:USA) currently trades at a historical high relative to UAFRS-based (Uniform) earnings, with a 24.1x Uniform P/E. Even at these levels...
Read More -
July 26, 2021
FANG – Base Case iCDS 149bps
Negative Case iCDS 232bps, 2025 5.625% Bond YTW of 3.722%
iYTW of 1.742%, Ba1 Rating from Moody’s, IG4+ (equivalent to Baa1) Rating from Valens
Low Refinancing Need...
Read More -
July 26, 2021
IDEXX Laboratories, Inc. (IDXX:USA) currently trades at a historical high relative to UAFRS-based (Uniform) earnings, with a 75.1x Uniform P/E. At these levels, the market has bullish expectations for the firm...
Read More -
July 23, 2021
DocuSign, Inc. (DOCU:USA) currently trades at a significant premium to UAFRS-based (Uniform) assets, with a 47.8x Uniform P/B. At these levels, the market is pricing in expectations for profitability to inflect positively, but management may have concerns about customer additions growth, Agreement Cloud opportunities, and digital client transformation...
Read More -
July 22, 2021
General Motors Company (GM:USA) currently trades below corporate averages relative to UAFRS-based (Uniform) earnings, with a 13.7x Uniform P/E. At these levels, the market is pricing in expectations for profitability to remain muted, but management is confident about their Ultium platform, Super Cruise, and the Chevy Silverado...
Read More -
July 22, 2021
- This Market Appears Well Positioned to Climb the Wall of Worry. For the past several months, we have been highlighting a lack of management commitment to growth as an overhang for the market, and the market’s pause over the last several months has confirmed this. However, even as the market is uncertain about headlines around the Delta variant and inflation there are very early signs this might be lifting, and if they are confirmed, it is bullish for stocks. Concerns about an investment pause may be lifting, which could accelerate corporate earnings growth.
- Credit markets remain supportive of growth and profitability, as all facets of the credit market are giving positive signals.
- With investors no longer in an exceptionally overbought position, short-term downside risk for the market is much lower. At the same time, high valuations and rising inflation risks may offer headwinds for appreciation. Neutral sentiment removes overhangs for the market, and if growth is accelerating, the market can be positioned to rise even with elevated valuation risk.
- Timetable Recommendation: 50/50 Split for 5-10 Year Money and upgrade to 8 Month Dollar Cost Averaging....