Financial stock – Purple Ribbon Project http://purpleribbonproject.com/ Fri, 15 Oct 2021 19:17:40 +0000 en-US hourly 1 https://wordpress.org/?v=5.8 https://purpleribbonproject.com/wp-content/uploads/2021/10/icon-12.png Financial stock – Purple Ribbon Project http://purpleribbonproject.com/ 32 32 Is Truist Financial stock a buy as the regional bank beats Q3 expectations? https://purpleribbonproject.com/is-truist-financial-stock-a-buy-as-the-regional-bank-beats-q3-expectations/ Fri, 15 Oct 2021 19:17:40 +0000 https://purpleribbonproject.com/is-truist-financial-stock-a-buy-as-the-regional-bank-beats-q3-expectations/ Shares of Truist Financial Corp (NYSE: TFC) jumped nearly 1% on Friday after its latest quarterly results were announced. The company reported strong third quarter revenue and earnings ahead of the market opening, beating analysts’ expectations. Truist posted non-GAAP FQ3 earnings per share of $ 1.42, beating the average analyst expectations of $ 1.20. Additionally, […]]]>

Shares of Truist Financial Corp (NYSE: TFC) jumped nearly 1% on Friday after its latest quarterly results were announced. The company reported strong third quarter revenue and earnings ahead of the market opening, beating analysts’ expectations.

Truist posted non-GAAP FQ3 earnings per share of $ 1.42, beating the average analyst expectations of $ 1.20. Additionally, the company’s GAAP EPS of $ 1.20 exceeded Street’s estimate of $ 1.09, while quarterly revenue of $ 5.63 billion was $ 100 million higher. dollars estimated despite marginal growth of 0.5% year-on-year.

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Shares of Truist Financial have risen almost 30% this year and over 45% in the past 12 months.

Is it time to buy TFC shares?

From an investment perspective, Truist Financial stock is trading at an attractive 12-month P / E of 15.98 and an even better forward P / E of 12.45. Therefore, value investors might find stock to be an attractive option for their portfolios.

However, analysts expect the Charlotte, NC-based bank’s earnings per share to decline by more than 17% this year, before falling further 4.62% next year. Therefore, growth investors could opt for alternatives in the market.

Nonetheless, TFC’s exciting dividend yield of 3.14% may attract the attention of dividend investors.

Source – TradingView

Is a downturn imminent?

Technically, shares of Truist Financial appear to be trading within an ascending channel formation in the intraday chart. As a result, the stock price moved closer to the 14-day RSI overbought conditions, creating an opportunity for a short-term pullback.

Therefore, investors could target potential withdrawals at around $ 58.82, or less at $ 56.92, while $ 62.58 is a crucial support area.

It might be time to short sell TFC shares

In summary, while Truist Financial shares are still trading at lucrative valuation multiples after the strong quarterly performance, its growth prospects are disappointing.

TFC stock is up more than 13% since September 21, pushing the stock price closer to overbought conditions. Therefore, the stock looks poised for a short-term pullback before the rally continues.

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Wednesday was a big day for this small business https://purpleribbonproject.com/wednesday-was-a-big-day-for-this-small-business/ Wed, 06 Oct 2021 16:02:51 +0000 https://purpleribbonproject.com/wednesday-was-a-big-day-for-this-small-business/ Great news from Ontario this morning. According to a press release, a micro-cap technology company announced that together with the Ontario Convenience Stores Association (OCSA), the company has “signed an initial agreement, effective September 27, 2021, to support the digital innovation in the convenience store industry and develop Smart Age, a digital age verification program […]]]>


Great news from Ontario this morning. According to a press release, a micro-cap technology company announced that together with the Ontario Convenience Stores Association (OCSA), the company has “signed an initial agreement, effective September 27, 2021, to support the digital innovation in the convenience store industry and develop Smart Age, a digital age verification program to help local, regional and national Ontario convenience retailers verify the age of their customers as these operators distribute products subject to an age restriction. The announcement skyrocketed shares of Liquid Avatar Technologies Inc. (OTCQB: LQAVF) (CSE: LQID) during Wednesday’s session.

Liquid Avatar focuses on digital ID verification, management and monetization, empowering users to control and benefit from engagements. The Liquid Avatar app allows users to create facets of their online ID giving them control over data usage through its biometric-based SSI, using blockchain technology. At no cost to consumers, Liquid Avatar generates revenue through authorization-based offerings and services, such as the KABN Visa card, KABN KASH, and other market services and programs.

Traders were bullish on the news as stocks climbed to $ 0.09 / share (+ 60.14%) from the session high after the news. This move is a beacon of hope for long-term shareholders who have been riding the downtrend for several months.


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Which financial action is a better buy? https://purpleribbonproject.com/which-financial-action-is-a-better-buy/ Thu, 23 Sep 2021 13:06:14 +0000 https://purpleribbonproject.com/which-financial-action-is-a-better-buy/ LoanDepot, Inc. (LDI), in Foothill Ranch, California, is a technology-driven, customer-centric residential mortgage platform. Additionally, its technology platform, mello, works across all aspects of its business, including lead generation, origination, and data integration. By comparison, diversified consumer finance company CURO Group Holdings Corp. (CURO) offers unsecured installment loans, secured installment loans, open-ended loans and lump-sum […]]]>

LoanDepot, Inc. (LDI), in Foothill Ranch, California, is a technology-driven, customer-centric residential mortgage platform. Additionally, its technology platform, mello, works across all aspects of its business, including lead generation, origination, and data integration. By comparison, diversified consumer finance company CURO Group Holdings Corp. (CURO) offers unsecured installment loans, secured installment loans, open-ended loans and lump-sum loans. CURO is based at Wichita, Kans.

Even though interest rates remained close to zero for an extended period, the financial sector rebounded significantly earlier this year as the economy gradually recovered thanks to solid progress on the vaccination front. COVID-19. In addition, following yesterday’s Federal Reserve announcement, half of U.S. Federal Reserve policymakers now plan to start increase interest rates next year, which should bode well for the financial sector. Thus, LDI and CURO could benefit from it.

LDI fell 12.9% over the past month, while CURO lost 1%. Additionally, in terms of performance over the past six months, CURO is the clear winner with 9.5% gains over LDI’s negative returns.

But which of these two titles is the best buy now? Let’s find out.

Latest developments

Several law firms have launched LDI surveys regarding alleged violations of federal securities laws. For example, it is alleged that the company made false and misleading statements in the market. In addition, its refinancing operations were in decline at the time of the IPO due to competition, among other factors.

On June 9, CURO announced several benefits of completing the business combination between Katapult Holding, Inc. and FinServ Acquisition Corp. CURO CEO Don Gayhardt said, “We believe our investment in Katapult will allow CURO and its stakeholders to continue to participate in the rapidly growing e-commerce point-of-sale financing space in the United States. United.

Recent financial results

LDI’s adjusted total revenue decreased 28.5% year-on-year to $ 825.33 million for the second quarter ended June 30, 2021. Company adjusted net profit decreased 88.3% year-on-year to $ 57.50 million, while its adjusted EPS was down 81.8%. sequentially at $ 0.18. In addition, its Adjusted EBITDA amounted to $ 109.26 million, compared to $ 682.59 million for the period of the previous year.

For the second quarter ended June 30, 2021, CURO’s net sales increased 8.1% year-over-year to $ 142.53 million. However, while its adjusted net income declined 21.5% year-on-year to $ 17.39 million, its adjusted EPS fell 24.5% year-over-year to $ 0.40. In addition, its Adjusted EBITDA decreased 1.6% year-over-year to $ 50.30 million.

Expected financial performance

LDI’s revenue is expected to decline 46.6% for the quarter ending December 31, 2021 and 10% in its fiscal year 2022. Additionally, its EPS is expected to decline 1.1% next year . In addition, its EPS is expected to decline at a rate of 14.7% per year over the next five years.

By comparison, analysts expect CURO’s revenue to grow 14.4% for the quarter ending December 31, 2021 and 28.7% in its fiscal year 2022. In addition, the EPS of the Company is expected to grow 63.3% in fiscal 2022. In addition, its EPS is expected to grow at a rate of 3.6% per year over the next five years.

Profitability

LDI’s revenue of $ 4.94 billion over the past 12 months compares to CURO’s $ 768.33 million. Additionally, LDI is more profitable, with gross profit and net margins of 94.48% and 41.85%, respectively, compared to 73.7% and 19.21% for CURO.

Evaluation

In terms of 12-month rolling P / S, CURO is currently trading at 0.84x which is higher than LDI’s 0.18x. In addition, the 2.46x guardrail from CURO-12 months P / B is 40.6% higher than the 1.75x of LDI.

While CURO appears to be much more expensive than LDI, we believe it is worth paying this premium given CURO’s significantly higher revenue and profit growth potential.

POWR odds

LDI has an overall rating of C, which equates to Neutral in our POWR odds system. In comparison, CURO has an overall rating of B, which translates into a buy. POWR scores are calculated taking into account 118 separate factors, each factor being weighted to an optimal degree.

LDI has a C rating for quality, which is in line with 1.09% CAPEX / 12-month sales, which is below the industry average of 1.73%. On the flip side, CURO has a B grade for quality, which is its 12-month rolling CAPEX / S of 1.74%, which is above the industry average of 1.73%.

LDI has a C rating for Momentum, which is in line with its 65.6% loss in the past six months, while CURO’s 9.5% gains in the past six months have seen it achieve a B rating for Momentum.

Additionally, LDI has a C rating for Sentiment, consistent with negative analyst sentiment. CURO has a B rating for sentiment.

Of the 51 actions of Consumer financial services Industry, LDI is ranked No.27 while CURO is ranked No.4.

In addition to the POWR ratings I just outlined, we also rated stocks for value, growth and stability. Click here to view all LDI reviews. Also get all CURO ratings here.

The winner

As interest rates could be raised earlier than expected, the financial sector should benefit significantly. So while LDI and CURO should eventually win, we think it might be wise to grab CURO shares now due to their better finances and significantly higher revenue and EPS growth estimates.

Our research shows that the chances of success increase when investing in stocks with an overall strong buy or buy rating. See all the top rated stocks in the consumer financial services industry here.


CURO shares remained unchanged in pre-market on Thursday. Year-to-date, CURO has gained 11.61%, compared to an 18.97% increase in the benchmark S&P 500 over the same period.

About the Author: Manisha Chatterjee

Since she was young, Manisha has had a strong interest in the stock market. She specialized in economics at university and has a passion for writing, which led to his career as a research analyst. Following…

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Will SVB financial action continue its growth trajectory? https://purpleribbonproject.com/will-svb-financial-action-continue-its-growth-trajectory/ Thu, 23 Sep 2021 09:30:10 +0000 https://purpleribbonproject.com/will-svb-financial-action-continue-its-growth-trajectory/ BRAZIL – 2019/08/12: in this photo, the logo of Silicon Valley Bank (SVB) is displayed … [+] on a smartphone. (Photo illustration by Rafael Henrique / SOPA Images / LightRocket via Getty Images) SOPA Images / LightRocket via Getty Images SVB Financial Group shares (NASDAQ: SIVB), rose 7.7% in the past twenty-one trading days. In […]]]>

SVB Financial Group shares (NASDAQ: SIVB), rose 7.7% in the past twenty-one trading days. In comparison, the larger S & P500 index fell 2.2% over the same period. SVB Financial Group is a bank for start-ups and their investors, providing commercial and private banking, asset management, private wealth management, brokerage and investment, and fund management services. The main reason for the recent rise in equities was the recent announcement that it was expanding its investment banking business to include the tech sector. The bank has benefited from high volumes of underwriting transactions in recent quarters and is expected to post strong growth figures in fiscal 2021.

Now, is the stock of SIVB about to grow? Based on our machine learning analysis of stock price trends over the past ten years, there is a 65% chance that SIVB stock will rise in the next month (twenty-one trading days). ). See our analysis on The risk of an increase in the shares of SVB Financial Group for more details.

Five days: SIVB 1.5%, vs. S & P500 -2.4%; Outperformed market

(47% probability of event)

  • SVB Financial Group shares increased by 1.5% over a five-day trading period ending 9/21/2021, versus the larger market (S & P500) which fell 2.4%
  • A change of 1.5% or more over five trading days has an event probability of 47%, which has occurred 1,172 out of 2,516 times in the past ten years

Ten Days: SIVB 1.2%, vs S & P500 -3.9%; Outperformed market

(53% probability of event)

  • SVB Financial Group shares gained 1.2% over the last ten trading days (two weeks), compared to the broader market decline (S & P500) of 3.9%
  • A change of 1.2% or more over ten trading days has an event probability of 53%, which has occurred 1332 out of 2516 times in the past ten years

Twenty-one days: SIVB 7.7%, vs S & P500 -2.2%; Outperformed market

(29% probability of event)

  • SVB Financial Group shares gained 7.7% over the last twenty-one trading days (one month), compared to the broader market decline (S & P500) of 2.2%
  • A change of 7.7% or more in twenty-one trading days has an event probability of 29%, which has occurred 729 times out of 2,515 in the past ten years

Invest with Trefis Wallets that beat the market

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Raymond James Financial shares are down more than 34% today https://purpleribbonproject.com/raymond-james-financial-shares-are-down-more-than-34-today/ Wed, 22 Sep 2021 05:44:59 +0000 https://purpleribbonproject.com/raymond-james-financial-shares-are-down-more-than-34-today/ (VIANEWS) – Actions of Raymond James Financial (NYSE Composite: RJF) fell 34.36% to $ 85.90 as of 1:43 a.m. EST Wednesday, following the downtrend from the last session. NYSE Composite jumped 0.1% to $ 16,184.50, after five consecutive sessions of losses. It seems, so far, a somewhat bullish trend trading session today. Raymond James Financial’s […]]]>

(VIANEWS) – Actions of Raymond James Financial (NYSE Composite: RJF) fell 34.36% to $ 85.90 as of 1:43 a.m. EST Wednesday, following the downtrend from the last session. NYSE Composite jumped 0.1% to $ 16,184.50, after five consecutive sessions of losses. It seems, so far, a somewhat bullish trend trading session today.

Raymond James Financial’s latest close was $ 139.04, 2.86% below its 52-week high of $ 143.14.

Volume

The latest volume reported today for Raymond James Financial is 420,598, which is 19.61% lower than its average volume of 523,238.

Raymond James Financial sales

Raymond James Financial’s sales growth is 21.2% for the current quarter and 22.8% for the next. The company’s growth estimates for the current quarter and the next are 39.9% and 10.3%, respectively.

Raymond James Financial turnover

The year-over-year quarterly revenue growth rose 25.7% to $ 8.46 billion for the past twelve months.

Upper and lower annual value of Raymond James Financial shares

Raymond James Financial stock is valued at $ 85.90 at 1:43 am EST, well below its 52-week high of $ 143.14 and well above its 52-week low of $ 67.66 .

Raymond James Financial moving average

Raymond James Financial’s value is well below its 50-day moving average of $ 136.32 and well below its 200-day moving average of $ 130.46.

More news on Raymond James Financial (RJF).


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What is the outlook for Raymond James Financial Stock over the next month? https://purpleribbonproject.com/what-is-the-outlook-for-raymond-james-financial-stock-over-the-next-month/ Thu, 16 Sep 2021 07:00:00 +0000 https://purpleribbonproject.com/what-is-the-outlook-for-raymond-james-financial-stock-over-the-next-month/ Raymond James Financial Actions (NYSE: RJF) has lost 1.9% in the past five trading days and is currently trading at nearly $ 136 per share. Raymond James Financial is a financial holding company which provides services such as investment management, sales and trading, merchant and retail banking, etc. Its stock gained nearly 43% on the […]]]>

Raymond James Financial Actions (NYSE: RJF) has lost 1.9% in the past five trading days and is currently trading at nearly $ 136 per share. Raymond James Financial is a financial holding company which provides services such as investment management, sales and trading, merchant and retail banking, etc. Its stock gained nearly 43% on the year, compared to the S & P500’s 19% rise.

The company recently approved a three-for-two stock split in the form of a 50% stock dividend. This means that its shareholders will receive one additional RJF share for every two RJF shares they hold. In addition, shareholders of record on September 9 will be eligible for the process, which is due to be completed on September 21. In addition, the company decreased the amount of the dividend per share from $ 0.39 to $ 0.26 per share to compensate for the increase in the number of shares.

But will RJF stock continue its bearish path over the next few weeks, or is the stock more likely to rise? According to the Trefis Machine Learning Engine, which identifies trends in a company’s stock price data over the past ten years, RJF stock returns average close to 3.1% then one month (21 trading days) period after experiencing a 1.9% drop in the past week (five trading days). In addition, there is a 69% chance that the stock will give positive returns over the next month.

But how would those numbers change if you are interested in holding RJF shares for a shorter or longer period? You can test the answer and many other combinations on the Trefis Machine learning to test Rise risks for Raymond James Financial shares after a fall and vice versa. You can test the chances of recovery over different time intervals of a quarter, a month, or even a single day!

MACHINE LEARNING MOTOR – try it yourself:

IF The RJF share has evolved by -5% over five trading days, SO Over the next 21 trading days, the RJF share moves an average of 2.7% with a 68.3% probability of positive returns.

Some fun scenarios, FAQs and direction of the movements of financial stocks from Raymond James:

Question 1: Is the average return of Raymond James Financial Stock higher after a decline?

Reply:

Consider two situations,

Case 1: Raymond James Financial shares fall -5% or more in one week

Case 2: Raymond James Financial stock increases by 5% or more in a week

Is the average return on the Raymond James Financial share higher in the next month after Case 1 or Case 2?

RJF Actions fares better after case 1, with an average yield of 2.7% during the following month (21 trading days) in case 1 (where the stock has just suffered a loss of 5% during the previous week), against an average return of 1.3% for case 2.

In comparison, the S&P 500 has an average return of 3.1% over the next 21 trading days in case 1, and an average return of only 0.5% for case 2, as detailed in our dashboard. which details the average return of the S&P 500 after a fall or rise.

Try the Trefis machine learning engine above to see for yourself how Raymond James Financial stock is likely to behave after a specific gain or loss over a period of time.

Question 2: Does patience pay?

Reply:

If you buy and hold shares in Raymond James Financial, it is expected that over time short-term fluctuations will cancel each other out and the long-term positive trend will be in your favor, at least if the company is otherwise solid.

Overall, according to data and calculations from the machine learning engine Trefis, patience absolutely pays for most actions!

For RJF stock, returns over the following N days after a variation of -5% over the last five trading days is detailed in the table below, along with the returns of the S & P500:

Question 3: What about the average return after a rise if you wait a while?

Reply:

The average return after a rise is naturally lower than that after a fall, as detailed in the previous question. Interestingly, however, if a stock has won in the last few days, you’d better avoid short-term bets for most stocks.

RJF’s returns in the next N days after a variation of 5% over the last five trading days is detailed in the table below, along with the returns of the S & P500:

It is powerful enough to test the trend for the Raymond James Financial stock yourself by changing the entries in the charts above.

Trefis Market Flying Trefis Wallets
Price estimates

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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Experts give a call to buy this financial security https://purpleribbonproject.com/experts-give-a-call-to-buy-this-financial-security/ Wed, 15 Sep 2021 07:00:00 +0000 https://purpleribbonproject.com/experts-give-a-call-to-buy-this-financial-security/ Rakesh Jhunjhunwala portfolio: Indiabulls Housing Finance is one of three stocks in which Big Bull Rakesh Jhunjhunwala bought a new stake during the quarter from April to June 2021. The other two stocks are Canara Bank and Steel Authority of India (SAIL). According to stock market experts, the “Warren Buffett of India” invested in this […]]]>

Rakesh Jhunjhunwala portfolio: Indiabulls Housing Finance is one of three stocks in which Big Bull Rakesh Jhunjhunwala bought a new stake during the quarter from April to June 2021. The other two stocks are Canara Bank and Steel Authority of India (SAIL). According to stock market experts, the “Warren Buffett of India” invested in this financial title because it was available at a reduced price. They said Indiabulls Housing Finance’s share price is still being discounted as it is nearly 25 percent below its 52-week high. They stated that Rakesh Jhunjhunwala’s stock is very bullish and one can buy this script in the short, medium or long term, depending on what suits his portfolio.

Speaking on financial data that could fuel this portfolio of Rakesh Jhunjhunwala shares; Rahul Sharma, Co-Founder of Equity99, said: “Indiabulls Housing Finance is engaged in the business of a housing finance institution without accepting public deposits. with HDFC Ltd to offer homebuyers home loans at competitive rates. ??1000 crore via MNT. “

Highlight the triggers of Indiabulls Housing Finance actions; Santosh Meena, Head of Research at Swastika Investmart Ltd, said: “The real estate industry is showing a turnaround and we are hearing strong comments from the management of real estate companies and housing finance companies. The big boy HDFC ltd and Canfin homes remain investors. ‘preferred stock, however big bull Rakesh Jhunjhunwala seeks valuation comfort in Indian bull housing finance, as the stock is trading at a price relative to its book value of 0.66. ”He said that the outlook for the financial sector was optimistic and the company was also looking to raise funds for its future growth.

For those who want to buy this Rakesh Jhunjhunwala stock for a short term perspective; Sumeet Bagadia, Executive Director of Choice Broking, said: “Indiabulls Housing Finance stock looks bullish on the chart and this stock can be bought from CMP for the short term goal of. ??250 to ??270 by keeping the stop loss at ??221. “

On the medium-term outlook for Indiabulls Housing Finance shares; Santosh Meena of Swastika Investmart Ltd said: “Technically this creates a solid base at 200-DMA which is currently placed around ??225 level. Therefore, the risk-reward ratio is very favorable when ??250 to ??Zone 260 will be a critical supply area; beyond that, we can expect a strong rally towards ??300 to ??315 zones. The momentum indicators also show a strong positive divergence for a pullback rally. “

On the Indiabulls Housing Finance share price target for long-term investors; Rahul Sharma of Equity99 said, “Considering improving trading structures, we expect this meter to hit a target price of ??385 long term. “

Rakesh Jhunjhunwala owns a stake in Indiabulls Housing Finance

According to this company’s shareholder model Rakesh Jhunjhunwala, Big Bull bought 1 crore of the company’s shares in the first quarter of fiscal year 2021-22, which is about 2.17% of the company’s net shares.

Disclaimer: The opinions and recommendations expressed above are those of individual analysts or brokerage firms, not Mint.

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1 Financial action under the radar Warren Buffett likes https://purpleribbonproject.com/1-financial-action-under-the-radar-warren-buffett-likes/ Sat, 11 Sep 2021 10:41:00 +0000 https://purpleribbonproject.com/1-financial-action-under-the-radar-warren-buffett-likes/ Warren Buffett is well known for his love of bank stocks, but one of his biggest holdings in the financial industry is a company investors may not be so familiar with. In this Motley fool live Video clip, registered on August 30, Fool.com contributors Matt Frankel, CFP and Jason Hall discuss what the company is, […]]]>

Warren Buffett is well known for his love of bank stocks, but one of his biggest holdings in the financial industry is a company investors may not be so familiar with. In this Motley fool live Video clip, registered on August 30, Fool.com contributors Matt Frankel, CFP and Jason Hall discuss what the company is, what it does and why it plays such an important role in Berkshire Hathaway‘s (NYSE: BRK.A) (NYSE: BRK.B) equity portfolio.

Matt Frankel: You’ll talk about this one first – and I want to jump in on that as well – is in a bad mood‘s (NYSE: MCO), MCO.

Jason Hall: Yes. What I wanted to do with Moody’s is just because I think it’s so interesting. We talked about S&P Global recently, and there are basically three companies that are pretty much the same as rating companies for pretty much anything public, be it corporate debt, corporate credit ratings, etc. ‘business, all of these things that they do that put them in a position of just immense power that does that.

I will show this table. Seventy-four percent gross margins, and if you notice here you can see that the margins are actually trending up. Although you chart five years, you see the margins increase. Operating margins, upward trend. Cash flow, I really wanted to show that, we were talking about a huge cash cow business.

The first graph I showed is the global financial crisis. It’s the real estate bubble, the debt bubble, all that, and it drove the company’s operating margins, cash margins for a while. But again, the idea here, we thought these companies were going to have big problems and the federal government was going to regulate all of that, and the business model was potentially a major threat. But as we have seen, cash flow and margins have continued to flow in very well.

Where I think Moody’s is really well positioned right now, that’s for sure, it’s still very important for ratings, it’s still their core business, but it’s an analytical business now.

Frankel: Yes. I mean, the core business by far is the scoring business, I think that’s what really attracted Buffett. They don’t own the business, but there are three main players. There are S&P [Global] (NYSE: SPGI), there’s Moody’s, and there’s Fitch Ratings. I bet you can’t tell me who # 4 is. I do not know who it is.

Room: It is not worth knowing.

Frankel: No, you don’t need to know. But then they have their analytical tools. It’s a very similar business to S&P Global, if you saw our show a few weeks ago where we talked about it. They are one of the best players in a market that has only a few players. I think that’s really what attracted Buffett here. It is a company in the financial sector. He reduced a lot of his holdings in the financial sector. I don’t really see his Moody’s stake going anywhere. They currently own just over 13% of the business, and I think it’s going to stay that way.

Room: I think it’s going to increase because, again, this is the ideal Buffett company in so many ways. He’s been paying a dividend, he’s been increasing that dividend every year, for a dozen years now. Because of its scale and size, they’re going to start buying back stocks over time, so you’re going to see so many of those other Buffett stocks. While Buffett may never buy another stock, his position will grow as the company repurchases and reduces the count of those shares. These are the things that make him very Buffett.

I think it’s too easy to take on. There are three of these companies, they each have their own market share, and that doesn’t really change significantly from year to year. It seems like it’s not just “Why own it?” But at the end of the day, the company will see medium to low single-digit revenue growth. But because of its business model, the extra margins and extra cash margins from that revenue is the reason you saw on the chart that its margins and operating results continue to grow at an inordinate rate. It can increase profits and cash flow at a double digit rate every year just because those new sales are worth more money.

This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are heterogeneous! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.


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Genworth Financial shares drop 5% as session ends today https://purpleribbonproject.com/genworth-financial-shares-drop-5-as-session-ends-today/ Fri, 10 Sep 2021 19:45:04 +0000 https://purpleribbonproject.com/genworth-financial-shares-drop-5-as-session-ends-today/ (VIANEWS) – Actions of Genworth Financial (NYSE Composite: GNW) fell 5.12% to $ 3.43 at 3:43 p.m. EST Friday, following the downtrend from the last session. The NYSE Composite fell 0.42% to $ 16,731.05, after two consecutive losing sessions. It seems, for now, a somewhat bearish trading session today. Genworth Financial’s latest close was $ […]]]>

(VIANEWS) – Actions of Genworth Financial (NYSE Composite: GNW) fell 5.12% to $ 3.43 at 3:43 p.m. EST Friday, following the downtrend from the last session. The NYSE Composite fell 0.42% to $ 16,731.05, after two consecutive losing sessions. It seems, for now, a somewhat bearish trading session today.

Genworth Financial’s latest close was $ 3.65, 23.32% lower than its 52-week high of $ 4.76.

Volume

The latest volume reported today for Genworth Financial is 2,473,612, which is 19.74% lower than its average volume of 3,082,146.

Genworth Financial sales

Genworth Financial’s sales growth is negative 4.5% for the current quarter and 19.2% for the next. The company’s growth estimates for the current quarter are 131.4% and a decrease of 75.6% for the next.

Genworth Financial revenue

The year-over-year quarterly revenue growth increased 8.1% to now stand at 8.83 billion for the last twelve months.

Upper and lower annual value of Genworth Financial shares

Genworth Financial stock is valued at $ 3.43 at 3:43 p.m. EST, well below its 52-week high of $ 4.76 and well above its 52-week low of 2.56 $.

Genworth Financial Moving Average

Genworth Financial’s value is below its 50-day moving average of $ 3.54 and below its 200-day moving average of $ 3.70.

More news on Genworth Financial (GNW).


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Manulife Financial: Equity Growth Depends On Rate Outlook, Asset Management Division https://purpleribbonproject.com/manulife-financial-equity-growth-depends-on-rate-outlook-asset-management-division/ Mon, 30 Aug 2021 07:00:00 +0000 https://purpleribbonproject.com/manulife-financial-equity-growth-depends-on-rate-outlook-asset-management-division/ Manulife Financial (NYSE 🙂 is Canada’s largest insurance company in total assets. In addition to various types of insurance, including annuities, the company offers a range of money management services. MFC anticipates that much of its growth will come from its Wealth and Asset Management (WAM) division. The low interest rate environment of recent years […]]]>

Manulife Financial (NYSE 🙂 is Canada’s largest insurance company in total assets. In addition to various types of insurance, including annuities, the company offers a range of money management services.

MFC anticipates that much of its growth will come from its Wealth and Asset Management (WAM) division. The low interest rate environment of recent years has been difficult for insurance companies and MFC is no exception. Uncertainty over the interest rate outlook limits earnings expectations for MFC.

Manulife is well diversified geographically and much of the expected growth in the insurance and WAM business is should come from Asia. Globally, MFC’s WAM business exceeds 1000 billion dollars in assets under management and under administration. Looking ahead, the bullish narrative for MFC hinges on rising interest rates and substantial growth in WAM.

After closing at an annual high of $ 22.16 on May 5, the shares fell 10% to the current price of $ 19.91. After closing on December 31, 2020 at $ 17.82, shares are up 11.7% for the current year.

MFC: 12 month price history

Source: Investing.com

Over longer periods, MFC’s total returns have been poor and the 15-year total return is slightly negative. More recently, over 1, 3 and 5 years, MFC has significantly outperformed the life insurance industry, although these returns are much lower than those provided by the US stock market and the US financial sector.

The IShares US Financials ETF (NYSE 🙂 has returned over 13% per year over the last 3, 5, and 10 year periods, for example.

MFC: sliding total returns vs Life Ins.  industry, canadian market

MFC: sliding total returns vs Life Ins. industry, canadian market

Source: The morning star

MFC is a value stock, with a P / E TTM of 6.9 and a dividend yield of 4.5%. The PER ratio has been very stable since the end of 2018. Over the 3 and 5 year periods, the annualized dividend growth rate is about 11%. From the point of view of Gordon’s growth model, MFC should have expected returns of around 15% if the trailing dividend growth rate can be extrapolated forward.

P / E History for MFC

P / E History for MFC

Source: Macrotrends.com

Neither MFC nor its industry is generally considered to have great growth potential. Total stock returns will not attract the attention of investors in the current bull market. Based on the final P / E, MFC does not appear to be undervalued compared to recent years.

To formulate a point of view on MFC, I rely on two forms of consensual perspectives. The first is the well-known consensus rating and 12-month price target from Wall Street analysts. The second is the implicit market perspective, the consensus view of the options market as reflected in the prices of call and put options at a range of strike prices.

The price of an option represents the consensus opinion of the market on the likelihood of the price going above (call option) or below (put option) a specific level (the strike price) at from today until the expiration date of the option. By analyzing call and put options at a common strike price range and expiration date, it is possible to derive the overall view of the options market on the probabilities of possible price returns between now and expiration date.

For those who do not know this concept, I wrote a review article, including links to relevant financial literature.

Wall Street Consensus Outlook for MFC

ETrade’s calculation of the Wall Street Consensus Outlook combines the views of 10 ranked analysts who have posted opinions in the past 90 days. The consensus rating is bullish and the 12-month consensus price target is 27.4% above the current price. Even the lowest of analysts’ price targets is 6.9% above the current price. The implied price appreciation of the consensus price target is slightly below the 12-month rolling yield but well above longer-term historical yields.

MFC: consensus rating from Wall Street analysts, 12-month price target

MFC: consensus rating from Wall Street analysts, 12-month price target

Source: Electronic commerce

Investing.comThe Wall Street consensus version aggregates the views of 8 analysts. The consensus rating is bullish and none of the analysts give MFC a rating below neutrality. The 12-month consensus price target is 22.4% higher than the current price.

Source: Investing.com

Implicit Market Outlook for MFC

I analyzed the prices of the put and call options at a range of strike prices and two expiration dates. Options expiring January 21, 2022 provide an implied market outlook for the next 4.74 months and options expiring March 18, 2022 provide an implied market outlook for the next 6.57 months. I analyzed the options with these two expiration dates to give a view until early 2022 and then to check the consistency of the implied market outlook for a slightly longer period.

The standard presentation of the implicit market outlook is a probability distribution of the price return, with the probability on the vertical axis and the price return on the horizontal.

MFC: Implicit Market Outlook, 4.74M Period, Today-Jan.  21 2022

MFC: Implicit Market Outlook, 4.74M Period, Today-Jan. 21 2022

Source: Author’s calculations using eTrade option quotes

The implied market outlook for the next 4.74 months is heavily tilted towards positive price returns. The probability peak corresponds to a price return of 5% over this period. The median price return of this distribution (50% probability of having a higher return / 50% probability of having a lower return) is 1%. The annualized volatility derived from this implied market outlook is 24%. This is quite low for an individual stock. This implicit market outlook is distinctly bullish.

To make it easier to compare the probabilities of positive and negative returns of the same magnitude, I rotate the negative return side of the distribution around the vertical axis (see chart below).

MFC: Implicit Market Outlook, 4.74M Period, Today-Jan.  21 2022

MFC: Implicit Market Outlook, 4.74M Period, Today-Jan. 21 2022

The negative side of the distribution has been rotated around the vertical axis (Source: author’s calculations using eTrade option quotes)

This view shows that the probability of having a positive return is significantly higher than for a negative return for a range of most likely outcomes (returns in the range +/- 10%), which supports a bullish view. For large amplitude returns (+/- 15% or more) the probability of negative returns is higher than for positive returns, but overall these are low probability outcomes.

One limitation in interpreting the implied market outlook for MFC is that options trading on this stock is light. This reduces confidence in the direction of prospects. However, when I analyzed the options expiring in March, the outlook is qualitatively the same, with the probability tilting strongly towards positive price returns.

MFC: Implicit Market Outlook, 6.6 million period, today-March.  18 2022

MFC: Implicit Market Outlook, 6.6 million period, today-March. 18 2022

The negative side of the distribution has been rotated around the vertical axis (Source: author’s calculations using eTrade option quotes)

Over this longer time horizon, the maximum probability is a price return of 5.6% and the annualized volatility is 23%. This implied bullish outlook for the market is reassuring, but overall confidence in the results is modest due to weak options trading.

Summary

The last few years have been difficult for insurance companies, in large part due to low interest rates. MFC has responded to this business environment by focusing on expanding Wealth and Asset Management (WAM), a group of lines of business with higher margins.

Stocks are cheap compared to, but higher multiples are based on evidence of faster earnings growth. For the moment, the market does not seem convinced.

However, the consensus opinion of stock analysts who follow MFC is remarkably bullish, with 12-month price appreciation expected to exceed 20%. The implicit market outlook for MFC through early 2022 is also bullish, with a maximum probability of price returns of 5-6% over the next six months. The annualized volatility derived from options is approximately 24%.

Taking the analyst consensus price target at face value, MFC expects a price return of over 20% with volatility of 24%. I find the expected return on a stock above half the volatility attractive, so MFC looks like a solid buy.

Tempering this bullish outlook, however, there is considerable uncertainty as to when interest rates will rise. The implied market outlook is bullish as well, the stock has moderate expected volatility and, let’s not forget, a dividend yield of 4.5%. I partially rule out the implied market outlook due to the low levels of option trading activity. I am broadly bullish, but I do not expect prices to return as high as analysts’ consensus.


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