Valuentum Exclusive Analysis for the Discerning Investor

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Jul 2, 2021

Dividend Increases/Decreases for the Week July 2
Let's take a look at companies that raised/lowered their dividend this week.

Jun 25, 2021

Nike Beats Estimates Aided By Its Omni-Channel Selling Strength
Image Shown: Shares of Nike Inc popped higher after its latest earnings report. On June 24, Nike reported fourth quarter earnings for fiscal 2021 (period ended May 31, 2021) that beat both consensus top- and bottom-line estimates. Shares of NKE popped higher after the report. The top end of our fair value estimate range for Nike sits at $160 per share, meaningfully above where shares of NKE are trading at as of this writing--even after the latest bounce in its stock price.

Jun 25, 2021

Dividend Increases/Decreases for the Week June 25
Let's take a look at companies that raised/lowered their dividend this week.

Jun 24, 2021

Energy: A Small Part of the S&P 500 But Making a Comeback
Image Source: Bureau of Land Management. The energy sector is now a small part of the S&P 500, but improving energy resource pricing has enhanced the merits of many in the space, namely the dividend growth and income prospects at ExxonMobil and Chevron. Both companies offer investors dividend yields north of 5%, and both have experienced tremendous improvements in free cash flow generation thanks in part to more prudent capital spending. We’ll be looking to add both to the Best Ideas Newsletter portfolio and Dividend Growth Newsletter portfolio on any market breather. We like the risk/reward opportunity.

Jun 24, 2021

Lululemon’s Growth Outlook Is Bright
Image Source: Lululemon Athletica Inc – First Quarter of Fiscal 2021 IR Earnings Infographic. Athleisure wear maker Lululemon Athletica recently reported first quarter earnings for fiscal 2021 (period ended May 2, 2021) that smashed past both consensus top- and bottom-line estimates. Its company-operated stores posted net revenue growth of 106% year-over-year as global economies began to recover from the coronavirus (‘COVID-19’) pandemic. The company’s direct-to-consumer (‘DTC’) net revenue grew 55% year-over-year (the e-commerce side of its business) last fiscal quarter, keeping in mind its DTC business more than doubled its net revenues in fiscal 2020. We were impressed with Lululemon’s latest results, and there could be room for shares of LULU to continue climbing higher. The top end of our fair value estimate range sits at $450 per share (well above where LULU is trading at as of this writing).

Jun 23, 2021

Best Idea Korn Ferry Posts Record Results, Shares Surge
Image Shown: Korn Ferry posted record fee revenue and diluted EPS performance in the final quarter of fiscal 2021 as its business continued to recover. We include Korn Ferry as an idea in our Best Ideas Newsletter portfolio and continue to be huge fans of the name. Image Source: Korn Ferry – Fourth Quarter of Fiscal 2021 IR Earnings Presentation. We continue to be enormous fans of Korn Ferry and its capital appreciation upside potential. Part of the firm’s strength comes from its industrial clients representing approximately 25%-30% of Korn Ferry’s business (according to recent management commentary), keeping in mind industrial activity has rebounded strongly from the depths of the pandemic-induced downturn last calendar year. As the services side of the global economy starts to recover in earnest, Korn Ferry’s financials should continue to improve going forward, while management also sees room for additional upside from its industrial clients as well.

Jun 22, 2021

Kroger Raises Guidance After Solid Earnings Report
Image Source: Kroger Co – First Quarter of Fiscal 2021 IR Earnings Presentation. Grocers are facing tough year-over-year comparisons due to the pantry stockpiling dynamic seen in 2020 in the wake of the coronavirus (‘COVID-19’) pandemic, though demand for consumer staples products remains healthy. On June 17, Kroger Co reported first quarter earnings for fiscal 2021 (period ended May 22, 2021) that beat both consensus top- and bottom-line estimates. Kroger’s management team also noted how the grocer views the current inflationary landscape, which we will cover in this note.

Jun 21, 2021

Best Idea Korn Ferry Getting Ready to Post Earnings
Image Shown: Korn Ferry’s revenue generation mix across business operating segments, geographies, and industries as of the third quarter of fiscal 2021. Image Source: Korn Ferry – Third Quarter of Fiscal 2021 Earnings IR Presentation. The management consulting firm Korn Ferry was added to the Best Ideas Newsletter portfolio on January 12, 2021 after the firm registered a 9 on the Valuentum Buying Index (‘VBI’). Shares of KFY have increased by 31% since then versus an 11% gain for the S&P 500 as of the end of normal trading hours on June 18. The top end of our fair value estimate range sits $79 per share of KFY, well above where shares of Korn Ferry are trading as of this writing, and we see room for additional capital appreciation upside going forward. Though Korn Ferry’s business faced tremendous headwinds due to the coronavirus (‘COVID-19’) pandemic, ongoing vaccine distribution efforts are beginning to pick up steam worldwide and demand for the firm’s services is on the rebound.

Jun 18, 2021

Best Ideas PayPal and Visa Have Ample Capital Appreciation Upside Potential
Image Shown: PayPal Holdings Inc’s digital wallet offers the firm multiple sources of upside. Image Source: PayPal Holdings Inc – February 2021 Investor Day Presentation. The payment processing and fintech industries are incredibly lucrative and supported by powerful secular growth tailwinds such as the proliferation of e-commerce and the global shift away from cash (towards card, tap to pay, QR code, online, and other payment methods). PayPal Holdings and Visa are two of our favorites in the space, and we include both firms as ideas in the Best Ideas Newsletter portfolio.

Jun 16, 2021

Best Idea Alphabet on the Move!
Image Shown: Shares of Alphabet Inc Class C have been on a nice upward climb over the past several months with ample room for additional capital appreciation upside, in our view. We include shares of GOOG as a top-weighted idea in the Best Ideas Newsletter portfolio. Companies with real pricing power are well-positioned to navigate headwinds arising from inflation pressures as cost increases can be passed along to the consumer and then some (i.e. price increases above inflation). Many large cap tech firms fit this bill including one of our favorite ideas Alphabet Inc, with an eye towards the pricing strength seen at its enormous digital advertising business. We include shares of Alphabet Class C (ticker: GOOG) as a top-weighted idea in the Best Ideas Newsletter portfolio. In this article, we will highlight why we view Alphabet’s growth outlook and capital appreciation potential quite favorably in the face of major hurdles.