Enterprise to drive growth With 34 % of total revenue, the enterprise and infrastructure business is a key driver of earnings and
share price growth for Jabil.
Not exact matches
The Sunnyvale, Calif. company's lucrative piece of the Chinese e-commerce company (BABA) has done wonders
for its coffers and
share price but lately has sent it into an existential crisis as investors seek
growth from the beleaguered company.
Collect a Check When stock
price growth is sluggish, dividends account
for a much bigger
share of investors» gains.
Such risks, uncertainties and other factors include, without limitation: (1) the effect of economic conditions in the industries and markets in which United Technologies and Rockwell Collins operate in the U.S. and globally and any changes therein, including financial market conditions, fluctuations in commodity
prices, interest rates and foreign currency exchange rates, levels of end market demand in construction and in both the commercial and defense segments of the aerospace industry, levels of air travel, financial condition of commercial airlines, the impact of weather conditions and natural disasters and the financial condition of our customers and suppliers; (2) challenges in the development, production, delivery, support, performance and realization of the anticipated benefits of advanced technologies and new products and services; (3) the scope, nature, impact or timing of acquisition and divestiture or restructuring activity, including the pending acquisition of Rockwell Collins, including among other things integration of acquired businesses into United Technologies» existing businesses and realization of synergies and opportunities
for growth and innovation; (4) future timing and levels of indebtedness, including indebtedness expected to be incurred by United Technologies in connection with the pending Rockwell Collins acquisition, and capital spending and research and development spending, including in connection with the pending Rockwell Collins acquisition; (5) future availability of credit and factors that may affect such availability, including credit market conditions and our capital structure; (6) the timing and scope of future repurchases of United Technologies» common stock, which may be suspended at any time due to various factors, including market conditions and the level of other investing activities and uses of cash, including in connection with the proposed acquisition of Rockwell; (7) delays and disruption in delivery of materials and services from suppliers; (8) company and customer - directed cost reduction efforts and restructuring costs and savings and other consequences thereof; (9) new business and investment opportunities; (10) our ability to realize the intended benefits of organizational changes; (11) the anticipated benefits of diversification and balance of operations across product lines, regions and industries; (12) the outcome of legal proceedings, investigations and other contingencies; (13) pension plan assumptions and future contributions; (14) the impact of the negotiation of collective bargaining agreements and labor disputes; (15) the effect of changes in political conditions in the U.S. and other countries in which United Technologies and Rockwell Collins operate, including the effect of changes in U.S. trade policies or the U.K.'s pending withdrawal from the EU, on general market conditions, global trade policies and currency exchange rates in the near term and beyond; (16) the effect of changes in tax (including U.S. tax reform enacted on December 22, 2017, which is commonly referred to as the Tax Cuts and Jobs Act of 2017), environmental, regulatory (including among other things import / export) and other laws and regulations in the U.S. and other countries in which United Technologies and Rockwell Collins operate; (17) the ability of United Technologies and Rockwell Collins to receive the required regulatory approvals (and the risk that such approvals may result in the imposition of conditions that could adversely affect the combined company or the expected benefits of the merger) and to satisfy the other conditions to the closing of the pending acquisition on a timely basis or at all; (18) the occurrence of events that may give rise to a right of one or both of United Technologies or Rockwell Collins to terminate the merger agreement, including in circumstances that might require Rockwell Collins to pay a termination fee of $ 695 million to United Technologies or $ 50 million of expense reimbursement; (19) negative effects of the announcement or the completion of the merger on the market
price of United Technologies» and / or Rockwell Collins» common stock and / or on their respective financial performance; (20) risks related to Rockwell Collins and United Technologies being restricted in their operation of their businesses while the merger agreement is in effect; (21) risks relating to the value of the United Technologies»
shares to be issued in connection with the pending Rockwell acquisition, significant merger costs and / or unknown liabilities; (22) risks associated with third party contracts containing consent and / or other provisions that may be triggered by the Rockwell merger agreement; (23) risks associated with merger - related litigation or appraisal proceedings; and (24) the ability of United Technologies and Rockwell Collins, or the combined company, to retain and hire key personnel.
But
growth is the main driver
for M&A deals: Not just
growth in drug distribution scale or earnings
growth through cost - cutting, but in revenues — and especially
share price.
The company's financial performance in the year to date has been mixed after its decision to raise the
prices of its products weakened its market
share and forced it to trim its sales
growth forecast
for the full year.
These risks and uncertainties include: Gilead's ability to achieve its anticipated full year 2018 financial results; Gilead's ability to sustain
growth in revenues
for its antiviral and other programs; the risk that private and public payers may be reluctant to provide, or continue to provide, coverage or reimbursement
for new products, including Vosevi, Yescarta, Epclusa, Harvoni, Genvoya, Odefsey, Descovy, Biktarvy and Vemlidy ®; austerity measures in European countries that may increase the amount of discount required on Gilead's products; an increase in discounts, chargebacks and rebates due to ongoing contracts and future negotiations with commercial and government payers; a larger than anticipated shift in payer mix to more highly discounted payer segments and geographic regions and decreases in treatment duration; availability of funding
for state AIDS Drug Assistance Programs (ADAPs); continued fluctuations in ADAP purchases driven by federal and state grant cycles which may not mirror patient demand and may cause fluctuations in Gilead's earnings; market
share and
price erosion caused by the introduction of generic versions of Viread and Truvada, an uncertain global macroeconomic environment; and potential amendments to the Affordable Care Act or other government action that could have the effect of lowering
prices or reducing the number of insured patients; the possibility of unfavorable results from clinical trials involving investigational compounds; Gilead's ability to initiate clinical trials in its currently anticipated timeframes; the levels of inventory held by wholesalers and retailers which may cause fluctuations in Gilead's earnings; Kite's ability to develop and commercialize cell therapies utilizing the zinc finger nuclease technology platform and realize the benefits of the Sangamo partnership; Gilead's ability to submit new drug applications
for new product candidates in the timelines currently anticipated; Gilead's ability to receive regulatory approvals in a timely manner or at all,
for new and current products, including Biktarvy; Gilead's ability to successfully commercialize its products, including Biktarvy; the risk that physicians and patients may not see advantages of these products over other therapies and may therefore be reluctant to prescribe the products; Gilead's ability to successfully develop its hematology / oncology and inflammation / respiratory programs; safety and efficacy data from clinical studies may not warrant further development of Gilead's product candidates, including GS - 9620 and Yescarta in combination with Pfizer's utomilumab; Gilead's ability to pay dividends or complete its
share repurchase program due to changes in its stock
price, corporate or other market conditions; fluctuations in the foreign exchange rate of the U.S. dollar that may cause an unfavorable foreign currency exchange impact on Gilead's future revenues and pre-tax earnings; and other risks identified from time to time in Gilead's reports filed with the U.S. Securities and Exchange Commission (the SEC).
But anyone hoping
for the kind of stock
growth Shoppers enjoyed over the past decade — when its
share price climbed from less than $ 18 to, at one point, over $ 55 — will be disappointed.
At its current valuation of ~ $ 67 /
share, HLF has a
price to economic book value ratio (
price - to - EBV) of 1.2 That ratio means that the market expects only 20 %
growth in NOPAT
for the remainder of HLF's existence.
At its new
price of ~ $ 23 /
share, the market expects 10 % compounded annual NOPAT
growth for the next 11 years.
Figure 1 shows this value - destroying behavior in action
for GE (GE) by comparing between the amount of money spent buying back
shares and the
price to economic book value (PEBV), a measure of the
growth expectations embedded in the stock
price.
While the $ 2.36 per
share offer only implies a «small» 15 per cent takeover premium to Deutsche's $ 2.05
price target, the research team points to «recent operational risks in the hospital portfolio, the execution risks of the Northern Beaches greenfield project and our lower revenue
growth outlook
for the private hospital industry.»
With consistent profit
growth, strong free cash flow, and the opportunity
for share price appreciation, Brocade Communications Systems (BRCD) is this week's Long Idea.
In 2015, news reports revealed that Uber had an operating loss of $ 470 million on $ 415 million in revenue, confirming suspicions that the company has been bleeding money
for the sake of achieving steep
growth and acquiring market
share.391 In China, the company has lost more than $ 1 billion a year.392 The strategy of aggressive
price competition and brazen leadership coupled with soaring
growth prompted immediate comparisons to Amazon.393 Like Amazon, Uber has drawn immense interest from investors.
Mac — in a declining PC industry, we expect Mac to continue its market
share gain and support our forecast
for its strong performance of 7.3 % revenue
growth in FY 2015, followed by 3.6 % in FY 2016, and 4.6 % in FY 2017 on flat average selling
prices over the three year period of $ 1,230.
For example, an investor that ponders the probability that a company will report a certain earnings
growth rate over a five - or ten - year period is much more apt to ride out short - term fluctuations in the
share price.
«Boards that authorise
share - repurchase initiatives at market
prices below what the businesses are intrinsically worth per
share (without foregoing investment in even more compelling
growth opportunities and with due regard
for the financial security of the remaining shareholders) are clearly putting the shareholder's interest high on the priority list» Frank Martin
While these network effects have generated enormous revenues, today's glamour stocks also trade at earnings and
price / revenue multiples that have historically been reserved
for companies at a much earlier point in their
growth trajectories, not
for mature companies with already overwhelming market
share.
Business
growth is just beginning to catch up with
share price for Shake Shack.
If you solve
for»n' such that the present value of the cash flows is equal to the
share price you get an indication of the
growth rate implied in the stock
price.
FedEx still offers an earnings
growth rate that is high
for large companies, yet we were able to purchase
shares at
prices that were first seen in 2003, even though earnings per
share have more than doubled over the period.
For the safety of stable
growth, you often give up some return so don't expect the
share prices to shoot higher in any given year.
The current stock
price (~ $ 33 /
share) implies over about 12 %
growth in profits compounded annually
for about 10 years.
Some of this difference is driven by slightly different
growth factors;
for example, VONG looks at book - to -
price ratios, medium - term
growth forecasts and historical sales - per -
share growth, while IWY only uses the latter two factors.
Medium Risk —
Growth (M / GRW) Lower to average risk equities of companies with sound financials, consistent earnings growth, the potential for long - term price appreciation, a potential dividend yield, and / or share repurchase pr
Growth (M / GRW) Lower to average risk equities of companies with sound financials, consistent earnings
growth, the potential for long - term price appreciation, a potential dividend yield, and / or share repurchase pr
growth, the potential
for long - term
price appreciation, a potential dividend yield, and / or
share repurchase program.
«The later stages of the 2009 — 2017 bull market are a valuation illusion built on
share buyback alchemy... The technique optically reduces the price - to - earnings multiple because the denominator doesn't adjust for the reduced share count... Share buybacks are a major contributor to the low volatility regime because a large price insensitive buyer is always ready to purchase the market on weakness... Share buybacks result in a lower volatility, lower liquidity, which in turn incentivizes more share buybacks, further incentivizing passive and systematic strategies that are short volatility in all their forms... Like a snake eating its own tail, the market can not rely on share buybacks indefinitely to nourish the illusion of gr
share buyback alchemy... The technique optically reduces the
price - to - earnings multiple because the denominator doesn't adjust
for the reduced
share count... Share buybacks are a major contributor to the low volatility regime because a large price insensitive buyer is always ready to purchase the market on weakness... Share buybacks result in a lower volatility, lower liquidity, which in turn incentivizes more share buybacks, further incentivizing passive and systematic strategies that are short volatility in all their forms... Like a snake eating its own tail, the market can not rely on share buybacks indefinitely to nourish the illusion of gr
share count...
Share buybacks are a major contributor to the low volatility regime because a large price insensitive buyer is always ready to purchase the market on weakness... Share buybacks result in a lower volatility, lower liquidity, which in turn incentivizes more share buybacks, further incentivizing passive and systematic strategies that are short volatility in all their forms... Like a snake eating its own tail, the market can not rely on share buybacks indefinitely to nourish the illusion of gr
Share buybacks are a major contributor to the low volatility regime because a large
price insensitive buyer is always ready to purchase the market on weakness...
Share buybacks result in a lower volatility, lower liquidity, which in turn incentivizes more share buybacks, further incentivizing passive and systematic strategies that are short volatility in all their forms... Like a snake eating its own tail, the market can not rely on share buybacks indefinitely to nourish the illusion of gr
Share buybacks result in a lower volatility, lower liquidity, which in turn incentivizes more
share buybacks, further incentivizing passive and systematic strategies that are short volatility in all their forms... Like a snake eating its own tail, the market can not rely on share buybacks indefinitely to nourish the illusion of gr
share buybacks, further incentivizing passive and systematic strategies that are short volatility in all their forms... Like a snake eating its own tail, the market can not rely on
share buybacks indefinitely to nourish the illusion of gr
share buybacks indefinitely to nourish the illusion of
growth.
Sluggish beverage
growth in North America has helped to constrain the
share price for the past year.
Based on the year - end 2016
price for the
growth share being 10 % below average (63 % vs 70 %), this model suggests that stocks presently could be more attractive than usual.
China has been the strongest
growth area
for Treasury, whose
share price has more than doubled in the past two years.
Coca - Cola Amatil has cut
prices for its market - leading Mt Franklin brand to reduce the
price gap with Asahi's Frantelle and Cool Ridge brands and Woolworths» private - label water, in an attempt to regain market
share and volume
growth.
In a statement quoted by Barrons.com, the bank said that Treasury, which had seen its market
share in China grow over the last three years, was
priced for «unrealistically high volume
growth in China, at peak
price points and peak margins».
$ 8 billion) over first ten years
for deficit reductionObeys PAYGO; Starting in 2026, 25 % of auction revenues
for deficit reductionFuels and TransportationIncrease biofuels to 60 million gallons by 2030, low - carbon fuel standard of 10 % by 2010, 1 million plug» in hybrid cars by 2025, raise fuel economy standards, smart
growth funding, end oil subsidies, promote natural gas drilling, enhanced oil recoverySmart
growth funding, plug - in hybrids, raise fuel economy standards $ 7 billion a year
for smart
growth funding, plug - in hybrids, natural gas vehicles, raise fuel economy standards; offshore drilling with revenue
sharing and oil spill veto, natural gas fracking disclosureCost ContainmentInternational offsetsOffset pool, banking and borrowing flexibility, soft
price collar using permit reserve auction at $ 28 per ton going to 60 % above three - year - average market
price» Hard»
price collar between $ 12 and $ 25 per ton, floor increases at 3 % + CPI, ceiling at 5 % + CPI, plus permit reserve auction, offsets like W - MClean Air Act And StatesNot discussedOnly polluters above 25,000 tons of carbon dioxide equivalent a year, regional cap and trade suspended until 2017, EPA to set stationary source performance standards in 2016, some Clean Air Act provisions excludedOnly polluters above 25,000 tons of carbon dioxide equivalent a year, regional cap and trade pre-empted, establishes coal - fired plant performance standards, some Clean Air Act provisions excludedInternational CompetitivenessTax incentives
for domestic auto industryFree allowances
for trade - exposed industries, 2020 carbon tariff on importsCarbon tariff on importsReferences: Barack Obama, 2007; Barack Obama, 8/3/08; Pew Center, 6/26/09; leaked drafts of American Power Act, 5/11/10.
For example, consider the following figure that compares how the growth estimates from four different models are related to the school share of students who are eligible for free or reduced price lunch
For example, consider the following figure that compares how the
growth estimates from four different models are related to the school
share of students who are eligible
for free or reduced price lunch
for free or reduced
price lunches.
The Defendants» purpose in adopting the agency model was to end competitive
pricing for ebooks, and to slow the
growth of ebooks in general, and the
growth of Amazon's dominant market
share in particular.
For dividend
growth investors, they offer a rare opportunity to buy
shares of a high quality dividend grower at a bargain
price.
In the latest Stock Pickers Digest, we take a close look at the company's
growth plans, and the outlook
for oil and gas, and see what they could mean
for its
share price.
ROYAL BANK OF CANADA $ 105 (Toronto symbol RY; Conservative
Growth and Income Portfolios, Finance sector;
Shares outstanding: 1.5 billion; Market cap: $ 157.5 billion;
Price - to - sales ratio: 3.9; Dividend yield: 3.5 %; TSINetwork Rating: Above Average; www.rbc.com) acquired Los Angeles - based City National Bank in November 2015
for $ 5.5... Read More
A momentum investor generally looks not just
for growth but
for accelerating
growth that is attracting a lot of investors and causing the
share price to rise.
For instance, they may want to see a p / e ratio (the ratio of a stock's
price to its per -
share earnings) below 15.0, along with an earnings
growth rate of 20 % or more a year, and perhaps a 2 % dividend yield.
Friess Associates is a
growth - oriented manager driven by individual company research that seeks to isolate companies with fundamental profiles that position them
for share price appreciation.
A valuation metric
for determining the relative trade - off between the
price of a stock, earnings generated per
share (EPS), dividend yield and the company's expected
growth.
Take,
for example, the following chart, which shows both the earnings - per -
share (EPS)
growth and the price performance of the MSCI World Growth and MSCI World Value indices during the first six months of
growth and the
price performance of the MSCI World
Growth and MSCI World Value indices during the first six months of
Growth and MSCI World Value indices during the first six months of 2017.
For instance, they may want to see a p / e ratio (the ratio of a stock
price to its per -
share earnings) below 15.0, say, along with an earnings
growth rate of 20 % or more annually, and perhaps a 2 % dividend yield.
The
growth rate needs to be pretty good to be acquiring
shares each month regardless of
share price (you can always halt auto - purchases
for a time being if you think the
price gets too high
for a season).
This should mean continues strong distribution
growth among MLPs as an asset class — and higher
prices for MLP
shares.
Canadian marijuana stocks may move higher on momentum — but they need significant revenue
growth to justify their huge market caps
Share prices for many Canadian marijuana stocks have soared since mid-2016.
The
price - earnings ratio based on forecasted earnings
for the next fiscal year is no more than one - half the projected long - term
growth rate in earnings per
share
Growth - income funds,
for example, tend to invest in Blue Chip companies that pay steady dividends but may also provide capital gains through
share price appreciation.
If the company recovers and increases exponentially over the coming decades, those 7
shares will not participate in the
growth of the stock
price after the split event — you will only get the much lower cash - out amount
for the
shares.
True Religion Drops — Gualberto Diaz believes the recent drop in
share price in True Religion (TRGL) has created an opportunity
for buying into an amazingly undervalued, high
growth company.