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28 July 2021
18:35 hour

The Next share price soars after smashing sales guidance. Should I still buy?

The Motley Fool UK

21/07/2021 - 14:05

The Next share price soars on an excellent trading update. Harshil Patel looks at whether he’d buy this well-known fashion retailer. The post The Next share price soars after smashing sales guidance. Should I still buy? appeared first on The Motley Fool UK.


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  2. The Next share price is up 8% today! What’s going on? (21/07/2021 - The Motley Fool UK)
    There has been a lot of focus this week on the fall in the FTSE 100 index. This is newsworthy, given the size of the move lower earlier this week to well below 7,000 points. Among all of this are a few standout performers. One of them is Next (LSE:NXT). Despite the broader market issues, Next shares are up 8% today. With such a divergence from other stocks in the index, what’s going on here? Positive trading update The main news that’s providing the lift to the Next share price is a trading update just released. In it, the news focused on the past quarter. In a similar way to some other companies, it’s using the comparison from 2019 instead of a year-on-year measurement. This more accurately reflects performance given that 2020 was such an outlier. There was a lot of positive news to be taken from the release. At a broad level, total online sales grew by 44%, with total product full price sales also up 20.8% for the 11 week quarter. Given that the previous guidance was only looking for a total overall increase by 3%, it’s easy to see why the Next share price jumped so much. The positive results meant that Next has upgraded its full-year profit projection by £30m to £750m. Higher profits also mean higher cash flow. Surplus cash is expected at £240m, meaning that several dividends are due to be paid out over the rest of the financial year and beyond.  Is this just a short spike in the Next share price? Although investors were clearly surprised by the results, it could be seen as a blip. After all, full-year 2020 results saw profit before tax drop by over 50% due to the impact of the pandemic. In my opinion, I don’t think today’s news is just a good blip in performance for Next shares. The lockdown over the past year has meant many consumers have cut back on spending. With regards to clothing, I think a lot of people have adopted a make-do approach. Yet now that we are seeing restrictions eased and life starting to get back to normal, people are feeling more confident in the state of the economy. I think this was particularly evident in this period within the trading update. As a result, higher discretionary spending is benefiting a fashion retailer like Next. Looking forward, I personally think the UK economic recovery is still on track. Despite the FTSE 100 crash, I think the concern will be short-lived. On this basis, I think the Next share price has further legs to move higher throughout H2.  One risk I do note though is that being optimistic in reports early in the year can sometimes come back to bite firms. The good news of upgraded profit forecasts is now factored in to the share price. So any underperformance (or even just being in line with expectations) is unlikely to materially boost the shares. Any results that miss the upgraded figures could be seen as a negative, even though they are better than original expectations. On balance, I would invest in Next shares currently but given that I have missed the move today, would only allocate a small amount. The post The Next share price is up 8% today! What’s going on? appeared first on The Motley Fool UK. Is this little-known company the next ‘Monster’ IPO? Right now, this ‘screaming BUY’ stock is trading at a steep discount from its IPO price, but it looks like the sky is the limit in the years ahead. Because this North American company is the clear leader in its field which is estimated to be worth US$261 BILLION by 2025. The Motley Fool UK analyst team has just published a comprehensive report that shows you exactly why we believe it has so much upside potential. But I warn you, you’ll need to act quickly, given how fast this ‘Monster IPO’ is already moving. Click here to see how you can get a copy of this report for yourself today More reading The Next share price soars after smashing sales guidance. Should I still buy? jonathansmith1 has no position in any share mentioned. The Motley Fool UK owns shares of and has recommended Next. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  4. I’d buy this FTSE 100 stock now that it’s paying a special dividend (26/07/2021 - The Motley Fool UK)
    Next (LSE: NXT) is a FTSE 100 stock that I’ve been bullish on for some time. Since the beginning of the year, the shares have increased by over 15% and they’re up more than 55% during the past 12 months. Last week, the retailer released a trading statement and the market was clearly impressed by what it announced. I’m still bullish on the FTSE 100 stock and would buy it right now. The update As I said, the update was positive. Full-price sales in the 11 weeks to 17 July were up 18.6% versus two years ago. Like many companies, Next is comparing its performance to 2019 rather than 2020. Last year was an odd year due to Covid-19, so it makes sense to compare trading with pre-pandemic levels. I’m not surprised that online sales were the driving force behind the increase in revenue. In fact, e-commerce has helped the fashion retailer survive the coronavirus crisis. And this is paying off again. Strong performance came from home and childrenswear, as well as its third-party LABEL operation. Next’s digital sales gives me some comfort. It offers the firm a long-term scalable solution. And if we go into another lockdown, it should be able to cope. Stores But it’s hasn’t been all rosy for the firm. The retail environment is tough and getting people to pay a visit to its shops has been a problem for Next. Retail store sales are still struggling and I wouldn’t be surprised if it starts to shrink its store estate in the future. It needs to find ways to increase footfall at its shops. Otherwise this will become a cost that could dampen profitability. Outlook But just when I question whether Next can improve its performance any further, it goes and upgrades it guidance. It has upped its growth forecast for full-price sales for the rest of the year from 3% to 6%. Not only that, it has also increased its central forecast for full-year profit before tax by £30m to £750m (pre-IFRS 16). It’s worth noting here that this is the top end of its previous guidance. The retailer is clearly doing well, which should push the FTSE 100 stock higher. Special dividend For me, the icing on the cake was Next announcing that it will be paying shareholders a special dividend of 110p in September. What’s more, it expects to distribute surplus cash generated as a second special dividend at the end of January 2022. Of course there’s no guarantee that this will happen. But if it does, it would be announced early next year in its Christmas trading statement. I guess it’s happy days for income investors. Risks The FTSE 100 stock isn’t cheap. It trades on a price-to-earnings (P/E) ratio of 36x. Some may be discouraged by this expensive valuation. Next has seen a surge in online sales but there’s no certainty that this trend will continue. That’s especially as it faces stiff competition from other pureplay e-tailers. But Next continues to outperform and I reckon this can continue. Hence, I’d buy the FTSE 100 stock right now. The post I’d buy this FTSE 100 stock now that it’s paying a special dividend appeared first on The Motley Fool UK. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading 2 FTSE 100 stocks to buy in a market crash The Next share price is up 8% today! What’s going on? The Next share price soars after smashing sales guidance. Should I still buy? Nadia Yaqub has no position in any of the shares mentioned. The Motley Fool UK owns shares of and has recommended Next. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  5. 2 FTSE 100 stocks to buy in a market crash (23/07/2021 - The Motley Fool UK)
    There is nothing like buying a winning stock. All I need to do is make the right choice and watch my money grow. FTSE 100 retail shares have been a good example of such stocks in the past year. I bought one such — athleisure retailer JD Sports Fashion (LSE: JD). And it has pretty much consistently been the best performing stock in my portfolio, along with a couple of miners. I do regret, however, not buying another FTSE 100 retailer, Next (LSE: NXT) during the last stock market crash.  Next shows impressive share price growth Over the past year, it has seen an almost 60% share price increase. And its recent trading guidance only builds up more expectations. It just reported robust performance for the 11 weeks ending 17 July.  Its revenues increased by 18.6% from the numbers two years ago. It does not compare them with last year’s figures, presumably because they do not accurately represent a comparison between normal years. But even compared to 2019, the revenue growth number was a huge increase from the 3% that was expected. As a result, Next has increased its profit guidance for the full year by £30m to £750m.  JD Sports Fashion is optimistic Similarly, JD Sports Fashion stock is up almost 50% over the past year. In its latest trading statement, the company said that it is on track to deliver pre-tax profits of “no less than” £550m. This follows encouraging spending trends by consumers.  The downside to buying these FTSE 100 stocks As positive as these developments sound, I do wonder as an investor now, if it is too late to buy these stocks. I say this for several reasons. The first is that they are more expensive than some other high-quality FTSE 100 stocks. Next, for instance has a price-to-earnings (P/E) ratio of 36 times, while the P/E is at 40 times for JD Sports Fashion. I think they are in for competition for investors’ money at these levels. Moreover, there are at least a few one-time reasons for a rise in recent sales numbers. After the easing of lockdowns, people are going out again and for that reason, buying more clothes and shoes. Also, savings have increased during the lockdown as there were limited avenues to spend. These benefits are likely to diminish in the next few months.  The pickup in the economy has been limited so far as well. The latest retail sales numbers have bounced back in June, but they did fall in May, even if unexpectedly. My point here is, that the recovery may not be as strong as was earlier anticipated.  Stock market crash buys That said, the stock market has had a wobble in the past few days. If the markets continue to slide downwards or there is another big stock market crash, I think both Next and JD Sports Fashion would be good stocks for me to buy into or buy more of. The post 2 FTSE 100 stocks to buy in a market crash appeared first on The Motley Fool UK. One FTSE “Snowball Stock” With Runaway Revenues Looking for new share ideas? Grab this FREE report now. Inside, you discover one FTSE company with a runaway snowball of profits. From 2015-2019… Revenues increased 38.6%. Its net income went up 19.7 times! Since 2012, revenues from regular users have almost DOUBLED The opportunity here really is astounding. In fact, one of its own board members recently snapped up 25,000 shares using their own money… So why sit on the side lines a minute longer? You could have the full details on this company right now. Grab your free report – while it’s online. More reading The Next share price is up 8% today! What’s going on? The Next share price soars after smashing sales guidance. Should I still buy? 3 FTSE 100 shares to buy today Shares to buy: 2 UK stocks I’d snap up today 2 FTSE 100 stocks I’d buy right now Manika Premsingh owns shares of JD Sports Fashion. The Motley Fool UK owns shares of and has recommended Next. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  24. The Next share price is rising. Should I buy? (07/05/2021 - The Motley Fool UK)
    The Next (LSE: NXT) share price just keeps on rising. Since the beginning of the year, the stock is up 20%. And over the last 12 months, it has increased by approximately 70%. I’ve covered the FTSE 100 company several times and have been bullish for some time. Even though the Next share price is trading close to all-time highs, I’d still buy the stock in my portfolio today. I reckon the retailer has a strong brand and a diversified product offering. It has a growing online presence, which has served it well during the coronavirus crisis. Next released a trading statement yesterday, which I think is worth exploring further. Headlines First quarter revenue for 2021 was down 1.5% on two years ago. I think it’s worth adding here that Next has specifically used sale comparisons relative to 2019/2020 rather than the last financial year (2020/2021). This means that it’s comparing the current performance with pre-coronavirus numbers. I’m impressed by this. Although sales were down slightly, it highlights to me that trading in the first three months of the year is predominately on par with a period before Covid-19. In fact, the retailer assumed that “Q1 would be down -10%”. So it has surpassed its own guidance and Next even mentions in the trading statement that it has “beaten this Q1 forecast by £75m”. Sweet profits But I think what is fantastic news is how the company has upped its profit guidance despite the current climate. This has boosted the Next share price and I reckon it could go higher. It’s pleasing to see that the retailer has increased its “central guidance for full year profit before tax by £20m to £720m”. But I’m not surprised that the beat has come due to strong online sales. In particular from third-party brands through LABEL as well as home and childrenswear. Overseas sales seems to be making up for revenue lost in its shops. Will it continue? The question I now ask myself is will this stellar performance continue? Well, according to the retailer, it expects sales to settle back to its guidance levels within the next few weeks. Next is maintaining it forecast for full price sales for the rest of the year to be up 3% versus 2019. In particular, within this guidance it has “maintained the assumption that Retail will be down -20% and Online will be up +24%”. Risks The Next share price is expensive and is currently trading at a price-to-earnings (P/E) ratio of 37 times. Some investors may be uncomfortable buying a stock at this valuation. It also did not mention anything about dividends in the trading update. It’s worth noting that the retailer had previously indicated that it did not expect to resume any income payments or share buybacks until it has visibility on sales from its stores. I guess I’ll have to wait and see. The company will be releasing a second quarter statement on 4 August. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading I was right about the Next share price! Here’s what I’d do now ISA investing: this is what I’m doing about the Next share price right now! 2 of the best UK shares to buy for a reopening economy 2 FTSE 100 reopening stocks to buy today The Next share price is rising. But I have one worry Nadia Yaqub has no position in any of the shares mentioned. The Motley Fool UK owns shares of Next. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post The Next share price is rising. Should I buy? appeared first on The Motley Fool UK.
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    Apple stock has been a superb buy over the years. Even with all of the company’s past success, it’s still going from strength to strength and had an incredible last year. However, not everyone seems confident that the company’s run will continue, and traders on the Fineco platform have been selling Apple shares. Here’s what’s going on with Apple shares along with the other companies traders are buying and selling right now. [top_pitch] What’s going on with Apple (AAPL) stock? Weekly trading data from FinecoBank shows that only 24% of global traders were buying these shares. This means that the other 76% of trading volume was people selling Apple stock. Things have actually been looking positive for the business. Recent reports suggest that Apple is looking to boost iPhone production throughout the rest of this year. This may help to increase the company’s sales. This news comes alongside a continuation of strong earnings, which helped boost Apple’s share price to an all-time high, pushing the valuation of the company close to $2.5 trillion. So why are traders selling Apple stock? With plenty of good news, you are probably wondering why people are selling Apple shares. Some potential reasons for this sell-off include: Following recent share price increases, some investors believe there will not be any further price rises in the short term Global markets have turned slightly pessimistic with worries that the coronavirus pandemic may still have some sting left in its tail Although Apple’s sales have been strong and the company wants to ramp up production, supply issues for components could slow its ambitious roll Expectations are very high for a company with such strong performance figures, making it difficult for it to really make a splash and wow investors All that being said, Apple appears to be a victim of its own success. The business is in strong shape with good long-term prospects. So although some doubt they can keep smashing expectations, they’re not necessarily doing anything wrong right now. [middle_pitch] Other than Apple stock, what are traders buying and selling? Here are the other businesses being bought and sold heavily on the Fineco platform right now. Norwegian Cruise Line Holdings (NCLH) It’s been a tough time for cruise companies across the world. They were one of the hardest-hit areas within a struggling travel sector. These shares were the most popular for traders globally this week. The stock was bought by 52% of investors and sold by the other 48%. This comes after news of ongoing battles between the company and regulators around the vaccination of staff and passengers. Many believe this industry will come back strong, but there is a divide on when this full recovery might happen. Cassava Sciences (SAVA) This was the top mover in the United States this week. Trading volume was split with 51% buying and 49% selling. Cassava Sciences is an American company that’s had an incredible year in terms of its share price. Despite this, the price of the stock fell by 11.4% last Friday, which some investors saw as a great buying opportunity to purchase the stock at a discount. Halfords Group (HFD) Lots of people have turned to cycling in the past year. This has been good business for companies like Halfords. However, global supply shortages and ongoing Covid-19 issues in Japan and Taiwan have made it difficult for the retailer to meet customer demand. So although the company’s goods are highly popular, 65% of traders are selling Halfords shares and only 35% are buying them. Where can I buy and sell stock like Apple? Using one of our top-rated share dealing accounts, you can invest in businesses you believe will succeed in the long run. It’s worth considering taking a long-term approach and avoiding too much trading because this can increase your investing costs and tax liabilities. Setting up a tax-efficient account like the FinecoBank stocks and shares ISA is one good way to potentially reduce your tax responsibility. Just remember that all investing carries risk and you may get out less than what you put in. So always be sure to have a plan and research any investments thoroughly before diving in. Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in the future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions. 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  26. After the Sainsbury’s share price soars 21%, would I still buy SBRY? (07/07/2021 - The Motley Fool UK)
    The orange branding of J Sainsbury (LSE: SBRY) is a familiar sight on Britain’s high streets. The supermarket chain is the UK’s second-biggest grocer, with a market share of almost a sixth (15.2%), well behind Tesco‘s 27.1%. Founded in 1869, Sainsbury’s became the UK’s largest grocery chain in 1922. However, from the 1970s, the group lost ground to Tesco, falling to second place in 1995. The chain has been listed on the London Stock Exchange since July 1973. It has also been a member of the FTSE 100 since the index’s creation in 1984. And the Sainsbury’s share price has been rising steadily recently. The Sainsbury’s share price surges Over the past three years or so, the Sainsbury’s share price has been on something of a roller-coaster ride. On 24 August 2018, the shares hit 336.4p, their highest level of the past five years. But then the stock went into steep decline. At its Covid-19 pandemic low, the price fell to an intra-day low of 172.32p on 1 September 2020. But after ‘Vaccine Monday’ (9 November 2020), it soon bounced back, closing at 252.89p on 27 January 2021. The Sainsbury’s share price soon weakened again, dipping to close at 235p on 28 April. As it happens, I wrote favourably about the stock on that very day. With the shares trading at 236.7p, I said that, “I see value in SBRY” after a near-8% rise in yearly sales. As I write (on Wednesday afternoon), the shares trade around 284.9p. That’s almost 50p above their close on 28 April — a healthy return of more than a fifth (21.2%) in 10 weeks. Delightful. Sainsbury’s profits are set to soar Despite this impressive sales growth, Sainsbury’s slumped to a full-year loss of £261m in 2020/21. But this was largely due to additional Covid-19 costs and one-off exceptional charges. In its latest quarterly sales update (PDF), the £6.4bn group raised its guidance for underlying pre-tax profit in 2021/22 from £620m to £660m. That’s an uplift of an eighth (12.6%) on the £580m the chain achieved in 2019/20. While sales growth in Q1 was ahead of expectations, total retail sales rose by only 1.6% in the 16 weeks to 26 June. But that’s pretty good, given the huge sales boost as the UK went into lockdown in spring 2020. Hence, I see these latest figures as helping to underpin the current Sainsbury’s share price of nearly 285p. Would I buy SBRY after this 21% price rise? Though this latest set of figures look fairly pleasing to me, the Sainsbury’s share price has been on a tear recently. Today, it hit a 52-week high, having leapt by almost half (+47.2%) in the past 12 months. It’s also up by 26.3% in 2021, 14.9% over six months and 8.3% over one month. Those are very respectable returns, easily beating the wider FTSE 100. However, it could be that much good news and optimism is already baked into the shares, so they might be positioned for a fall. What’s more, recent takeover activity in the UK supermarket sector may have had a ‘halo effect’ by lifting the Sainsbury’s share price. Also, the grocer is under relentless pressure from privately owned German discounters Aldi and Lidl. Despite these headwinds, I like the dividend yield of 3.7% a year, plus the forward price-to-earnings ratio of around 9.7. Hence, although I don’t own Sainsbury’s stock now, I would be a cautious buyer at the current price! The post After the Sainsbury’s share price soars 21%, would I still buy SBRY? appeared first on The Motley Fool UK. Our 5 Top Shares for the New “Green Industrial Revolution" It was released in November 2020, and make no mistake: It’s happening. The UK Government’s 10-point plan for a new “Green Industrial Revolution.” PriceWaterhouse Coopers believes this trend will cost £400billion… …That’s just here in Britain over the next 10 years. Worldwide, the Green Industrial Revolution could be worth TRILLIONS. It’s why I’m urging all investors to read this special presentation carefully, and learn how you can uncover the 5 companies that we believe are poised to profit from this gargantuan trend ahead! Access this special "Green Industrial Revolution" presentation now More reading Are Sainsbury shares now a screaming buy? 3 top UK dividend stocks to buy now Should I buy these cheap FTSE 100 stocks for July? 2 UK dividend stocks I’d buy now Should I buy Tesco shares or Sainsbury? Cliffdarcy has no position in any of the shares mentioned. The Motley Fool UK has recommended Tesco. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  28. How to Value a Company with Multiples (03/07/2021 - Reddit Stock Market)
    Let’s take a look at 4 commonly used ratios and why 2 of these ratios may tell a better story than the other 2: P/S (Price to Sales): Price/ Sales per share or Market cap/ Sales P/E (Price to Earnings): Price/ EPS (earnings per share) or Market Cap/ earnings EV/ NTM Sales (Enterprise Value/ Next Twelve Months Sales): (Market cap + debt - cash & cash equivalents)/ Next 12 months estimated sales EV/ EBITDA (Enterprise Value/ Earnings* before Interest, Taxes, Depreciation, and Amortization): (Market cap + debt - cash & cash equivalents)/ Earnings* before Interest, Taxes, Depreciation, and Amortization *Earnings is the amount of profit left after all expenses have been paid, mostly synonymous with net income. ​ Before diving in, let’s compare using Market Capitalization in our ratios versus Enterprise Value. Market Cap: Share price x Shares outstanding Enterprise Value: Market cap + Debt - Cash & Cash equivalents Notice what Market Cap is missing? It doesn’t include a company’s debt. Debt is inherently included in the value of a company, because if a company were to be bought out, the buyers would have to take on the debt obligation. Both the P/E and the P/S ratios don’t consider the amount of debt a company is obligated to pay. This is why I prefer to use the EV/ NTM Sales ratio over the P/S ratio, and the EV/EBITDA ratio over the P/E ratio, as it gives a more accurate representation of a company’s worth. Cash and cash equivalents are subtracted in the EV formula because it is assumed they are already included when calculating market cap. Think of it like this: If you bought a company for $10,000, but that company had $2,000 of cash on hand, your “real” cost to buy the company would be $8,000 since you would have access to the company’s cash after buying it. ​ Complete article here: https://foryoureyesonly.substack.com/p/valuing-a-company-with-multiples   submitted by   /u/yolamanskrt [link]   [comments]
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  29. The FTSE 100’s Spirax-Sarco share price soars as it expects to beat guidance! (12/05/2021 - The Motley Fool UK)
    UK share prices are back on the front foot on Wednesday following recent meaty losses. The FTSE 100 is stepping back towards the critical 7,000 marker as modest dip-buying emerges. And Spirax-Sarco Engineering (LSE: SPX) is currently the index’s biggest riser in midweek trading. At £119.50 per share, the steam system and pump manufacturer was last trading 3% higher on the day. Growing ahead of the market Spirax-Sarco has bounced back on Wednesday thanks to a positive reception to fresh trading details. At its AGM the FTSE 100 firm said organic sales growth in the four months to April “was ahead” of growth in the broader global industrial production (IP) market. It noted that the IP marketplace rose 7.4% in the first four months of 2021. This was also ahead of the 6.1% increase for January-April it had predicted in March. Its Watson-Marlow unit “continued to experience exceptional Covid-19 vaccine-related demand from its customers in the Pharmaceutical & Biotechnology sector”. Sales at this particular division account for just over a quarter of the group total. Elsewhere, organic sales growth across Spirax-Sarco’s Steam Specialties, Electric Thermal Solutions and Watson-Marlow’s Process Industries sectors also outperformed expansion in the broader global IP market. Markets recover faster than expected Speaking more broadly, Spirax-Sarco said “the world is recovering faster than previously anticipated from the adverse economic effects of the Covid-19 pandemic, supported by sizeable fiscal stimulus packages”. As a consequence, it thinks the IP sector will grow 8.5% in 2021. This is upgraded from the 7% improvement the company predicted two months ago. However, the FTSE 100 business cautioned that forecasts could be subject to further revisions. This is due to “the difficulties faced by many emerging economies in implementing their vaccination plans and the continued uncertainty surrounding the ability to resume normal international trading activities,” it said. Spirax-Sarco hikes guidance For the moment, it thinks Watson-Marlow’s organic sales to the Pharmaceutical & Biotechnology sector “will be over 55% in 2021 due to continuing strong COVID-19 related demand.” sales to these customers accounted for 55% of all Watson-Marlow revenues in 2020. The company also predicted that its other revenue streams will deliver organic sales growth in 2021 above the increased forecast for global IP growth. And it said its Electric Thermal Solutions unit “ended 2020 with a higher than-normal order book”. This is expected to add at least a further £8m to sales in 2021. Finally Spirax-Sarco said that it is “accelerating capacity expansion initiatives in Watson-Marlow and we continue to step-up our revenue investments”. These increased expenditures are weighted towards the second half of 2021. When taken together with higher sales growth and the impact of operational gearing, it expects the annual drop-through from the organic increase in sales to operating profit to be close to 35%. This is also above its previous guidance. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading 3 UK shares I’d pick to hold for a decade Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post The FTSE 100’s Spirax-Sarco share price soars as it expects to beat guidance! appeared first on The Motley Fool UK.
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  30. Acadia maintains 2021 sales guidance as Q1 net sales rise 18% (05/05/2021 - Seeking Alpha)

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  31. The Ratings Game: Google parent Alphabet’s worth to Wall Street soars after blowout results, with UBS lifting share-price target to $3,600 a share (28/07/2021 - Market Watch)
    The love-in was in session Wednesday on Wall Street after Alphabet's results as big tech rivals Apple and Microsoft also reported quarterly financial results.
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  32. Twilio Earnings Announced (06/05/2021 - Reddit Stocks)
    Twilio TWLO reported a surprise beat for first-quarter losses of $206.5 million, or $1.24 a share, on sales of $590 million, up from $365 million a year ago. After adjusting for stock compensation and other effects, the software company reported earnings of 5 cents a share, after posting adjusted earnings of 6 cents a share a year ago. Analysts on average expected an adjusted loss of 10 cents a share on sales of $533 million, according to FactSet, after Twilio guided to adjusted losses of 9 cents to 12 cents a share on sales of $526 million to $536 million. Shares declined more than 5% in the after-hours trading session, after closing with a daily decline of 1.8% at $335.72. Company has excellent growth right now with very good retention. Exceeded all of wall streets expectations and a raised guidance. Stock fell because they’re concerned whether expansion is eating into profits, and company just doesn’t become more profitable. Expansion is good, but of course those writing articles will shill whatever they’re paid to write. Thoughts on a comeback to mid 350s in the next month or so?   submitted by   /u/lilaznjocky [link]   [comments]
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  33. Valuing a Company with Multiples (02/07/2021 - Reddit Stocks)
    Let’s take a look at 4 commonly used ratios and why 2 of these ratios may tell a better story than the other 2: P/S (Price to Sales): Price/ Sales per share or Market cap/ Sales P/E (Price to Earnings): Price/ EPS (earnings per share) or Market Cap/ earnings EV/ NTM Sales (Enterprise Value/ Next Twelve Months Sales): (Market cap + debt - cash & cash equivalents)/ Next 12 months estimated sales EV/ EBITDA (Enterprise Value/ Earnings* before Interest, Taxes, Depreciation, and Amortization): (Market cap + debt - cash & cash equivalents)/ Earnings* before Interest, Taxes, Depreciation, and Amortization *Earnings is the amount of profit left after all expenses have been paid, mostly synonymous with net income. ​ Let’s compare using Market Capitalization in our ratios versus Enterprise Value. Market Cap: Share price x Shares outstanding Enterprise Value: Market cap + Debt - Cash & Cash equivalents Notice what Market Cap is missing? It doesn’t include a company’s debt. Debt is inherently included in the value of a company, because if a company were to be bought out, the buyers would have to take on the debt obligation. Both the P/E and the P/S ratios don’t consider the amount of debt a company is obligated to pay. This is why I prefer to use the EV/ NTM Sales ratio over the P/S ratio, and the EV/EBITDA ratio over the P/E ratio, as it gives a more accurate representation of a company’s worth. Cash and cash equivalents are subtracted in the EV formula because it is assumed they are already included when calculating market cap. Think of it like this: If you bought a company for $10,000, but that company had $2,000 of cash on hand, your “real” cost to buy the company would be $8,000 since you would have access to the company’s cash after buying it. ​ Full Article: https://foryoureyesonly.substack.com/p/valuing-a-company-with-multiples   submitted by   /u/yolamanskrt [link]   [comments]
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  34. Dillard's stock soars as vaccine, stimulus tailwinds boost sales (14/05/2021 - Seeking Alpha)

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  35. Now a good time to sink $ into Ford? (07/07/2021 - Reddit Stocks)
    With the price dropping and support seemingly breaking I’m wondering if it’s a good idea to buy in while prices are low? I’m new to investing but with sales figures up for their electric lineup I’m wondering if Ford, solely through sales and good PR, can have a meaningful bounce back in terms of share price? Thanks for the advice.   submitted by   /u/MajorStoney [link]   [comments]
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  36. Apple soars past sales, profit targets with strong iPhone demand, warns of chip shortages (29/04/2021 - Investing.com)

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  37. The Tell: Tesla bitcoin gambit already made $1 billion, more than 2020 profit from car sales, estimates analyst (21/02/2021 - Market Watch)
    Prominent technology analyst Dan Ives estimates that Telsa's investment in bitcoin has minted a digital paper profit of about $1 billion, as the price of the asset soars to records.
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  38. Infographic: How GameStop (GME) performed in Q4 2020 (23/03/2021 - AlphaStreet)
    GameStop Corp. (NYSE: GME) reported its fourth quarter 2020 earnings results today. Net sales totaled $2.12 billion compared to $2.19 billion in the year-ago period owing to a decrease in the store base due to strategic de-densification efforts and a reduction in European store operating days due to temporary store closures caused by the COVID-19 pandemic. Comparable store sales increased 6.5%. GAAP net income was $80.5 million, or $1.19 per share, compared to $21 million, or $0.32 per share, last year. Adjusted net income was $90.7 million, or $1.34 per share. The company is not providing guidance for fiscal year 2021 at present. (This story will be updated shortly with an infographic)The post Infographic: How GameStop (GME) performed in Q4 2020 first appeared on AlphaStreet.
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  39. Burlington Stores heads south despite smashing Q1 estimates (27/05/2021 - Seeking Alpha)

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  40. Earnings Results: Vroom stock soars after online car seller narrows quarterly loss, sales rise (12/05/2021 - Market Watch)
    Shares of Vroom Inc. rallied more than 12% in after-hours trading Wednesday after the online used-car retailer reported a narrower-than-expected first-quarter loss and sales that came above forecast, saying demand for its online car-buying model remains strong.
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  41. EOG Resources Q1 profit soars as oil price rebounds (07/05/2021 - Seeking Alpha)

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  42. BP to resume share buybacks as profit soars on strong oil, gas trading (27/04/2021 - Investing.com)

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  43. Coinbase Soars Above Reference Price in Nasdaq Debut (14/04/2021 - Investing.com)

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  44. Is one share of AMZN arguably better than 6 smaller stocks? (30/05/2021 - Reddit Stocks)
    So currently own AMD, ALLY, TGT, PEP, V, SMT (a UK ETF), IAG, DIS, AAPL, MSFT and F to the value of one AMZN share. The rest is VWRP (VT equivalent) so not selling that. Looking to long hold, so aside from the diversification argument is a greater ROI in one share of AMZN over these other companies? Can actually hold AAPL, MSFT, TGT, DIS and V and stump up the extra few hundred for a AMZN share so really it’s sell off between; AMD, ALLY, PEP, SMT, IAG, F for one AMZN. Only own like 2-3 shares of AMD, ALLY, PEP whilst a few more for SMT, IAG and F but only to value of about £2000 so that’s the one AMZN share price. So $3,000. Be interesting to know of what others might do with these shares for the long hold. Either keep the current portfolio and pay into VWRP or sell off half of the value and keep AAPL, MSFT, TGT, DIS, V and buy AMZN alongside the ETF instead. Would not want to sell any of those six but is it too tech heavy? Personally think AMZN has the ability to increase share price more over 10 years than AMD, ALLY, PEP, SMT, IAG and F can do combined. The only one of those that could increase a fair bit is AMD but only own 2 shares at a value of £110. Thanks all for any guidance and whether it’s worth doing. Could also add GOOGL and AMZN at one share each but then basically own the top companies in S&P alongside a global ETF which top holdings are also those same businesses. Bullish on US and those stocks regardless so the ETF is there for the 45 per cent outside US stocks and companies.   submitted by   /u/Maximum-Fudge6438 [link]   [comments]
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  45. Etsy stock falls after KeyBanc warns smashing earnings reports could fade (26/04/2021 - Seeking Alpha)

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  46. Three Cannabis ETFs that are riding high as Tilray's stock price soars (28/07/2021 - Seeking Alpha)

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  47. Dick's Sporting Goods rallies after smashing earnings estimates off sports and fitness boom (26/05/2021 - Seeking Alpha)

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  48. The Deliveroo share price is climbing. How much further will it go? (28/07/2021 - The Motley Fool UK)
    Deliveroo (LSE: ROO) came to market in March, with an offer price of 390p per share. Then it went into a nosedive. The fast food delivery firm looked like it was set to become the latest in a line of UK IPO flops. But the Deliveroo share price has been regaining ground since May, standing at 314p as I write. That’s still some way short of the offer price. But the performance is still far than the most widely publicised flotation failure of the past few years, Aston Martin. But where is Deliveroo likely to go by the end of the year? A Q2 trading update in early July didn’t do much for the shares, despite an increase in full-year guidance. Gross transaction value (GTV) gained 76% year-on-year, to £1,739m. At the same time, orders increased 88%, to 78m in the second quarter. And the renewed guidance? “Deliveroo has seen continued strong growth and consumer engagement in H1, and as a result of that plus increased expectations for H2 is increasing the guidance for full year annual GTV growth from between 30% to 40% to between 50% to 60%.” Acquisitions to come? In addition to organic growth, the company also said it “sees an opportunity to make further discretionary investments into growth opportunities in the second half.” The company did also add that it now expects gross profit margin to be “in the lower half of our previously communicated range.” So maybe that’s what caused the Deliveroo share price to go off the boil a little. My Motley Fool colleague Jonathan Smith made what I think is a key observation. He pointed out that in the comparative 2020 period we were in full lockdown, and that gave takeaway deliveries a boost. A year later, under far less strict regulations, Deliveroo’s orders are significantly higher. Does that suggest we’re looking at a sustainable growth model here, and not just a pandemic flash in the pan? I agree with Jonathan. I think it does. Deliveroo share price valuation To get any feel for valuation, I’ll need to see a lot more than just the Deliveroo share price coupled with sales figures. I particularly want to examine the balance sheet, to see what debt and cash the company has. Cash flow, too, is of key importance. And, dare I mention the “profit” word? We should have plenty more numbers to crunch when Deliveroo delivers first-half results on 11 August. Do I think I’m likely to buy when I see them? Probably not. I do think Deliveroo has a solid future ahead of it. But the trouble with companies like this, coming to market before they’re established with a record of profits, is that many of them fail. And of the ones that succeed, they’re often overvalued in the early days and suffer a volatile first year or two. For me it’s maybe one for the future. I’ll keep watching. The post The Deliveroo share price is climbing. How much further will it go? appeared first on The Motley Fool UK. Is this little-known company the next ‘Monster’ IPO? Right now, this ‘screaming BUY’ stock is trading at a steep discount from its IPO price, but it looks like the sky is the limit in the years ahead. Because this North American company is the clear leader in its field which is estimated to be worth US$261 BILLION by 2025. The Motley Fool UK analyst team has just published a comprehensive report that shows you exactly why we believe it has so much upside potential. But I warn you, you’ll need to act quickly, given how fast this ‘Monster IPO’ is already moving. Click here to see how you can get a copy of this report for yourself today More reading Deliveroo share price: I’m still down, but here’s the good news Can the Deliveroo share price keep climbing? Why did the Deliveroo share price fall? Is the Deliveroo share price still a cheap buy? Why I’ve changed my view of the Deliveroo share price Alan Oscroft has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  49. Stitch Fix soars after earning beat and Wall Street price target resets (08/06/2021 - Seeking Alpha)

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