Author: Trefis

Harley-Davidson stock (NYSE:HOG) currently trades at $33 per share, around 36% below its level of $52 seen on May 17, 2021 (pre-inflation shock high), and seems like a good investment opportunity. Harley saw its stock trading at around $30.30 at the end of June 2022, just before the Fed started increasing rates, and remains up by about 9% from those levels. In comparison, the S&P 500 gained about 11% during this period.  Harley stock has benefited from better than expected Q1 results, rising motorcycle shipments (up 14% in Q1), and easing supply chain issues.  Returning to the pre-inflation shock level…

Corning stock (NYSE: GLW) currently trades at $32 per share, around 32% below its level of $46 on April 25, 2021 (pre-inflation shock high), and it seems like a good investment opportunity. Corning saw its stock trading at around $32 at the end of June 2022, just before the Fed started increasing rates, and it is now at the same level. In comparison, the S&P 500 gained about 11% during this period.  Returning to the pre-inflation shock level means that Corning stock will have to gain more than 45% from here. While it’s likely that the stock may recover to…

Salesforce (NYSE: CRM) is scheduled to report its fiscal Q1 2024 results on Wednesday, May 31, 2023. We expect Salesforce to edge past the consensus estimates. The company surpassed the street expectations in the last quarter, with total revenues increasing 14% y-o-y to $8.38 billion. It was because of a 14% increase in the subscription & support revenues and a 19% rise in the professional services & other segment. The subscription & support revenues benefited from growth in all the sub-segments – sales cloud, marketing & commerce cloud, service cloud, platform & other, and data. We expect the same trend…

[Note: Lululemon’s FY’22 ended on January 29, 2023] Lululemon (NASDAQ: LULU), a company designing and selling athletic and casual apparel, is scheduled to report its fiscal first-quarter results on Thursday, June 1. We expect LULU stock to likely trade higher due to revenues and earnings beating market expectations. Retail stocks have continued to come under pressure as economic headwinds coupled with inflation have intensified. Despite the current macro headwinds, Lululemon has been able to churn out robust quarterly earnings reports in FY 2022. Management now expects net revenue to be in the range of $9.30 billion to $9.41 billion, representing growth…

After a 14% rise in Seagate stock (NASDAQ: STX) this year, outperforming the broader S&P500 index, which is up 8%, we believe STX is now fully valued. Looking at a slightly longer term, STX stock is down 47% from levels seen in late 2021. This can be attributed to 1. the company’s P/S ratio falling a significant 45% to 1.3x trailing revenues, 2. Seagate’s revenue decline of 12% to $9.4 billion, partly offset by 3. a 9.6% fall in its average total shares outstanding to 209 million. Our dashboard on Why Seagate Stock Moved has more details. A decline in Seagate’s sales can be attributed to weak consumer…

Philip Morris stock (NYSE: PM) currently trades at $91 per share, around 19% below its level of $112 on Feb 17, 2022 (pre-inflation shock high), and it seems like a good investment opportunity. Philip Morris saw its stock trading at around $99 at the end of June 2022, just before the Fed started increasing rates, and is still 8% below that level. In comparison, the S&P 500 gained about 10% during this period. The stock price has suffered over recent months due to a Q1 decline in the volume of cigarettes sold, lower margins, and a cut in the full-year…

Union Pacific stock (NYSE: UNP) currently trades at $192 per share, around 30% below its level of $277 on March 30, 2022 (pre-inflation shock high), and seems like a good investment opportunity. Union Pacific saw its stock trading at around $213 at the end of June 2022, just before the Fed started increasing rates, and is still 10% below that level. In comparison, the S&P 500 gained about 10% during this period. The stock price has suffered over recent months due to a decline in the volume of carloads, and with economic growth deteriorating, volumes may remain tepid in the…

American Airlines stock (NASDAQ: AAL) currently trades at $15 per share, more than 40% below its level in June 2021, and it seems like it can see higher levels over time. American Airlines, one of the largest players in the country’s airline industry, saw its stock trading at around $25 in early June 2021, just before the Fed started increasing rates, and is still 40% below that level. The stock has gained 15% since its low in September 2022 compared to the S&P 500, which gained about 6% during this period. The rally in the stock over recent months has…

We believe Illumina stock (NASDAQ: ILMN) and its industry peer Thermo Fisher Scientific stock (NYSE: TMO) are good buying opportunities and will likely offer similar returns in the next three years.  ILMN trades at a higher valuation of 7.3x trailing revenues, compared to 4.6x for TMO, partly due to its financial position. However, Thermo Fisher Scientific has seen better revenue growth in recent years and is more profitable, as discussed below. Looking at stock returns, ILMN has fared slightly better with 1% returns this year vs. -5% returns for TMO. However, both have underperformed the broader S&P500 index, up 8%. There is more…

Dish Network stock (NASDAQ: DISH) currently trades at $6.60 per share, around 86% below its level of $46.50 on May 7, 2021 (pre-inflation shock high), and seems like a good investment opportunity. Dish Network saw its stock trading at around $17.90 at the end of June 2022, just before the Fed started increasing rates, and is still 64% below that level. In comparison, the S&P 500 gained about 10% during this period. The stock price has suffered over recent months due to a cyber attack on Dish’s IT systems and a secular decline in the company’s core satellite TV operations. …