Financials
At the end of March, Cmind predicted the 1Q23 earnings for 573 firms within the financial service sector. Their model predicts an 84% probability that ALL will miss street forecasts. Besides the sector-level volatility, they find that its financial metrics such as Cash/Operating Profit, Current Assets/Capitalised Expenses, and Receivables - Estimated Doubtful are excessively high when compared against its peers. Additionally, the sentiment extracted from the analysts participating in previous earnings calls has been consistently negative over the last several quarters. ALL is scheduled to release its earnings on 3rd May.
Edition: 159
- 28 April, 2023
Market Cap of Companies Over 10x Sales is Out of Control
The market’s greed for speculative tech stocks is creating fantastic opportunities for long-term investors - Kailash Concepts believe now is the time to be focusing on the cheapest stocks in the market - these companies generate FCF of 5%; trade at 1x sales; P/E ratio of 22x; ~10% operating margins and 3% dividend yield. In fact, they have far more sustainable business models and having grown revenues by 24% over the last three years offer growth at a reasonable price! Some of the top ranked S&P500 firms highlighted include Molina Healthcare, Albertsons, Allstate and Ford.
Edition: 119
- 17 September, 2021