Valuentum Exclusive Analysis for the Discerning Investor

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Aug 7, 2021

Valuentum Weekly
Image: Bitcoin, technology and large cap growth have led the pack the past 5 years while pipeline MLPs, crude oil and energy stocks have fallen way behind. Large cap growth > small cap value. Bonds, non-US stocks continue to lag. The Valuentum Weekly is a brand-new weekly market commentary from Valuentum Securities, released each weekend in digital form. The Valuentum Weekly offers members a weekly synopsis of the markets and major events. It will be straight and to-the-point. Our goal is to deliver to you the latest information and insights. We welcome your feedback on how we can make the Valuentum Weekly as useful and as relevant for you as ever!

Aug 6, 2021

ExxonMobil’s Great Earnings Report and Promising Growth Outlook
Image Shown: An overview of ExxonMobil Corporation’s strategy to generate shareholder value going forward. Image Source: ExxonMobil Corporation – Second Quarter of 2021 Earnings IR Presentation. ExxonMobil’s financial performance is on the upswing, and its operational performance has been firing on all cylinders of late. We continue to be big fans of both ExxonMobil’s capital appreciation upside and dividend growth potential. Our fair value estimate for ExxonMobil under our “base” case scenario sits at $83 per share, well above where shares of XOM are trading as of this writing. The company’s Dividend Cushion ratio sits near parity at 0.9, and we rate both ExxonMobil’s Dividend Growth and Dividend Safety ratings as “GOOD” given its impressive cash flow generating potential. Shares of XOM yield a nice ~6.0% as of this writing.

Aug 3, 2021

Rounding Up the 2Q Earnings Reports of Some of America’s Most Recognizable Brands: Coca-Cola, McDonald’s, Ford, Boeing, and Procter & Gamble
Image Source: Valuentum. The world is bouncing back in a big way from the coronavirus (“COVID-19”) pandemic, and some of America’s top brands have put up impressive calendar second-quarter results. Ford’s performance may have been the most interesting from an investor perspective, and we continue to warn against Boeing in light of its weak cash-based fundamentals and the tremendous flexibility that program accounting can have with respect to GAAP financials. Though the following five companies are not included in the newsletter portfolios, they should be on your radar, especially as it relates to market-moving trends and economic information: Coca-Cola, McDonald’s, Ford, Boeing, and Procter & Gamble.

Aug 3, 2021

Chevron Posts a Great Earnings Update, Share Repurchases to Resume
Image Shown: An overview of Chevron Corporation’s performance in the second quarter of 2021. We include shares of Chevron as an idea in both our Best Ideas Newsletter and Dividend Growth Newsletter portfolios and continue to be huge fans of the name as the global energy complex continues to recover from the worst of the coronavirus (‘COVID-19 pandemic). Image Source: Chevron Corporation – Second Quarter of 2021 IR Earnings Presentation. The global energy complex continues to recover from the worst of the COVID-19 pandemic, and that speaks quite favorably to Chevron’s outlook. Management is committed to improving the company’s balance sheet strength going forward, which we really appreciate. Chevron’s free cash flow performance in the second quarter highlights the incredibly powerful positive effect the recovery is having on its financial performance. Share buybacks, in moderation, represent a good use of capital in our view (based on where shares of CVX are trading at as of this writing). With all of this in mind, we would like to stress that Chevron remains committed to its dividend (the firm moderately boosted its quarterly dividend during the second quarter of 2021 by ~4% sequentially). We continue to like Chevron as an idea in both the Best Ideas Newsletter portfolio and Dividend Growth Newsletter portfolio.

Jul 29, 2021

Facebook, PayPal, Apple Earnings Reports and More!
Image shown: Qualcomm’s chart is looking mighty attractive. Thus far, second-quarter earnings season has been solid. Investors may be looking to take some profits, but we believe they’ll likely be buying back their favorite ideas toward the back half of the year. The market continues to be a bit cautious on tech in light of growing regulatory concerns in China, and inflationary pressures may temporarily hurt some within the consumer staples arena, but we’re not reading too much into either of these concerns. We maintain our very bullish take on the markets, and we believe that the newsletter portfolios are very well positioned for the ongoing bull market.

Jul 28, 2021

The Valuentum Buying Index’s Flow Chart
Image: The Valuentum Buying Index flow chart. Each stock in our general operating coverage receives a systematically-applied rating. The Valuentum Buying Index is a powerful tool to use in conjunction with a variety of other investment considerations from the Economic Castle, the Dividend Cushion ratio, the fair value estimate and range to forward-looking relative valuation assessments, the dividend yield, dividend growth prospects and beyond. We hope you continue to enjoy your membership, and please let us know if you have any questions.

Jul 27, 2021

The Valuentum Buying Index as a Differentiating Factor
Image: The Valuentum Buying Index explanatory stock market return model. For illustratiive and educational purposes only. The Valuentum Buying Index should not be used by itself. No other research provider has approached mapping the market in this manner, making Valuentum’s research a differentiating factor behind your practice and a must-have for any investor. No system is perfect, but we continue to be impressed with how well 9- and 10-rated equities have performed, including the most recent 10, Facebook. We hope to continue to help you in all your equity research needs, but please be sure to always do your own due diligence. We can never provide you with buy/sell advice.

Jul 27, 2021

Why Valuentum Buying Index Ratings Matter
Let's take a look at the results of a case study of an institutional money manager's application of the Valuentum Buying Index rating system.

Jul 23, 2021

Shares of Best Idea Domino’s Pizza Jump Higher!
Image Shown: In the wake of Domino’s Pizza Inc’s stellar fiscal second quarter earnings report published on July 22, shares of DPZ surged higher. We include Domino’s Pizza as an idea in the Best Ideas Newsletter portfolio and continue to be huge fans of the name. On July 22, Domino’s Pizza reported second quarter earnings for fiscal 2021 (period ended June 20, 2021) that smashed past consensus top- and bottom-line estimates with its US same-store sales growing by 3.5% and its international same-store sales increasing by 13.9%. The company noted that last fiscal quarter represented its 41st consecutive quarter of same-store sales growth in the US as its digital and delivery investments over the past decade have really paid off. Domino’s Pizza announced that it had authorized a new $1.0 billion share buyback program after the end of the fiscal second quarter after recently completing its previous $1.0 billion share repurchase program via an accelerated share repurchase (‘ASR’) agreement.

Jul 22, 2021

Johnson & Johnson Beats Estimates, Raises Guidance Once Again
Image Source: Johnson & Johnson – Second Quarter of 2021 IR Earnings Presentation. On July 21, Johnson & Johnson reported second-quarter 2021 earnings that beat both consensus top- and bottom-line estimates. The company (once again) boosted its full-year guidance in conjunction with its latest earnings update as Johnson & Johnson’s business is steadily rebounding from the worst of the coronavirus (‘COVID-19’) pandemic, with an eye towards the ongoing recovery in the sales of its medical devices and related offerings. We include shares of JNJ as an idea in both the Best Ideas Newsletter and Dividend Growth Newsletter portfolios. Its latest earnings report and guidance boost reinforced our favorable view towards the name. Shares of JNJ yield ~2.5% as of this writing, and the top end of our recently updated fair value estimate range sits at $206 per share of Johnson & Johnson, well above where shares are trading at as of this writing.