$BK with a bullish outlook following its earnings #StocksThe PEAD projected a bullish outlook for NYSE:BK after a positive under reaction following its earnings release placing the stock in drift A with an expected accuracy of 81.82%.
Usstocks
$FAST with a bullish outlook following its earnings #StocksThe PEAD projected a bullish outlook for NASDAQ:FAST after a positive under reaction following its earnings release placing the stock in drift A with an expected accuracy of 85.71%.
$DAL with a bullish outlook following its earnings #StocksThe PEAD projected a bullish outlook for NYSE:DAL after a negative over reaction following its earnings release placing the stock in drift C with an expected accuracy of 62.5%.
$STZ with a bearish outlook following its earnings #StocksThe PEAD projected a bearish outlook for NYSE:STZ after a negative under reaction following its earnings release placing the stock in drift D with an expected accuracy of 50%.
$CAG with a bearish outlook following its earnings #StocksThe PEAD projected a bearish outlook for NYSE:CAG after a negative under reaction following its earnings release placing the stock in drift D with an expected accuracy of 85.71%.
POET: A Technical Play with Fundamental RisksThe recent announcement of POET Technologies, Inc.'s ( NASDAQ:POET ) collaboration with Mitsubishi Electric on September 19, 2024, suggests greater upside potential for the company. Given the current trend, the stock could reach $6-7 per share by year-end.
Over the past year, the stock has risen 56%, with a 377% increase year-to-date. Despite this strong performance, there are several risks to consider:
• Negative net income (the company has not been profitable)
• Frequent stock-based compensation (a 39% increase in shares outstanding since 2020)
• Negative operating cash flow
• Regulatory risks related to business operations in China
While there is potential for substantial price growth, it does come with risks. I think starting with a small position and monitoring the technical and fundamental developments is the best way to play this opportunity.
US Markets Demonstrate Confidence Despite Election JittersThe US markets are currently demonstrating a bullish sentiment, despite concerns surrounding the upcoming election.
All major indices, including the S&P 500, NYSE Composite, and Nasdaq Composite, have formed a bullish Cup & Handle chart pattern and have subsequently broken to follow an upward trend.
While the S&P 500 and NYSE Composite have reached new all-time highs, the Nasdaq Composite is close to its highest peak, further reinforcing the positive market outlook.
'This overall bullish sentiment suggests that the upward trend in the US markets is likely to continue, even in the face of election-related uncertainties.
$PAYX with a bullish outlook following its earnings #StocksThe PEAD projected a bullish outlook for NASDAQ:PAYX after a positive under reaction following its earnings release placing the stock in drift A with an expected accuracy of 50%.
$PEP with a bullish outlook following its earnings #StocksThe PEAD projected a bullish outlook for NASDAQ:PEP after a positive under reaction following its earnings release placing the stock in drift A with an expected accuracy of 86.67%.
$AZO with a bullish outlook following its earnings #StocksThe PEAD projected a bullish outlook for NYSE:AZO after a negative over reaction following its earnings release placing the stock in drift C with an expected accuracy of 100%.
$CTAS with a bullish outlook following its earnings #StocksThe PEAD projected a bullish outlook for NASDAQ:CTAS after a positive over reaction following its earnings release placing the stock in drift B with an expected accuracy of 91.67%.
$MU with a bullish outlook following its earnings #StocksThe PEAD projected a bullish outlook for NASDAQ:MU after a positive over reaction following its earnings release placing the stock in drift B with an expected accuracy of 75%.
$NKE with a neutral outlook following its earnings #StocksThe PEAD projected a neutral outlook for NYSE:NKE after a negative over reaction following its earnings release placing the stock in drift C with an expected accuracy of 66.67%.
Exxon's Make-or-Break Moment: $123 Resistance in FocusThe chart distinctly illustrates that the stock has been in a consolidation phase for over a year and is presently trading slightly below its resistance zone.
For a potential upward movement, the price must surpass the 123 level and maintain its position above this threshold.
At the same time, there is a significant likelihood that the stock price may encounter rejection once more, leading to a decline towards its trendline support level.
$MKC with a bullish outlook following its earnings #StocksThe PEAD projected a bullish outlook for NYSE:MKC after a positive over reaction following its earnings release placing the stock in drift B with an expected accuracy of 50%.
$DRI with a bullish outlook following its earnings #StocksThe PEAD projected a bullish outlook for NYSE:DRI after a positive over reaction following its earnings release placing the stock in drift B with an expected accuracy of 88.89%.
Ralph Lauren: Elevate Your Wealth with the Essence of Luxury◉ Abstract
Ralph Lauren is thriving in the booming luxury apparel market. The company, founded in 1967, has a market cap of $11.83 billion and generates nearly 44% of its revenue from North America, totaling $2.93 billion. The industry is valued at approximately $110.13 billion in 2024 and projected to reach $151.32 billion by 2029, growing at a CAGR of 6.56%.
Recent technical analysis shows Ralph Lauren's stock has outperformed the NYSE Composite index with a 66% annual return. Despite a slight revenue increase of 2.9% year-on-year, EBITDA soared to $1,024 million, reflecting strong financial health. With a current P/E ratio of 17.4x, Ralph Lauren presents an attractive investment opportunity amidst rising global wealth and consumer demand for luxury goods.
Read full analysis here . . .
◉ Introduction
The global luxury apparel market is currently experiencing significant growth, driven by various factors including increasing disposable incomes, brand loyalty, and the rising influence of social media on consumer behaviour.
Here’s a detailed overview of the market size and growth outlook:
◉ Current Market Size
According to Mordor Intelligence, the global luxury apparel market was valued at approximately USD 110.13 billion in 2024, with expectations to grow to USD 151.32 billion by 2029, reflecting a CAGR of 6.56%.
◉ Growth Drivers
● Increasing Wealth: The rising number of millionaires globally and growing middle-class affluence, particularly in regions like Asia-Pacific, are significant contributors to luxury apparel demand.
● Consumer Trends: There is a growing perception that luxury goods enhance social status, which fuels consumer interest in high-end fashion.
● Digital Influence: Enhanced online shopping experiences and the effective use of social media for marketing have opened new avenues for luxury brands to reach consumers.
◉ Regional Insights
● Europe
Dominant Market: Holds a market share of approximately 34% to 43%. The presence of numerous luxury brands and high purchasing power among consumers drive demand, supported by significant tourist spending on luxury goods.
● North America
Strong Demand: The U.S. is a key player, characterized by a wealthy consumer base and increasing brand loyalty, particularly among younger generations who view luxury items as status symbols.
● Asia-Pacific
Fastest Growing Market: Anticipated to grow rapidly due to rising disposable incomes and brand awareness, especially in countries like China and India.
● Latin America
Emerging Potential: Currently holds a smaller market share but shows promise for growth as consumer awareness and travel increase.
● Middle East & Africa
Limited Contribution: This region contributes the least to the luxury apparel market, although countries like the UAE are seeing growth due to tourism.
The overall outlook for the luxury apparel market remains optimistic, supported by evolving consumer preferences and increasing global wealth.
Amidst the global luxury apparel market's promising growth prospects, we have identified Ralph Lauren as a prime opportunity for investment. With its robust financial performance and impressive technical indicators, Ralph Lauren is well-positioned to propel success.
◉ Company Overview
Ralph Lauren Corporation NYSE:RL is a renowned American fashion company known for its high-quality, luxury lifestyle products. Founded in 1967 by the iconic designer Ralph Lauren, the company has become a global symbol of timeless style and sophistication. The company offers a wide range of products, including apparel, footwear, accessories, home goods, fragrances, and hospitality. Ralph Lauren's iconic polo shirt and strong brand identity have contributed to its success, making it a global leader in the luxury fashion industry.
◉ Investment Advice
💡 Buy Ralph Lauren Corporation NYSE:RL
● Buy Range - 190 - 193
● Sell Target - 245 - 250
● Potential Return - 27% - 30%
● Approx Holding Period - 8-10 months
◉ Market Capitalization - $11.83 B
◉ Peer Companies
● Tapestry NYSE:TPR - $10.59 B
● Levi Strauss NYSE:LEVI - $8.57 B
● PVH Corp. NYSE:PVH - $5.44 B
● Columbia Sportswear Company NASDAQ:COLM - $4.87 B
◉ Relative Strength
The chart clearly illustrates that Ralph Lauren has greatly outperformed the NYSE Composite index, achieving an impressive annual return of 66%.
◉ Technical Aspects
● Monthly Chart
➖ The monthly chart clearly shows that the stock price faced several rejections near the 190 level, which ultimately triggered a significant drop, brought the price down to the 66 level.
➖ Afterward, the price experienced various fluctuations and, after a prolonged consolidation phase, developed an Inverted Head & Shoulders pattern.
➖ Upon breaking out, the price surged upward but encountered resistance again at the previous resistance zone.
➖ However, after a pullback, the stock has successfully surpassed this resistance for the first time in almost 11 years.
● Daily Chart
➖ On the daily chart, the price has formed a Rectangle pattern following a brief consolidation phase and has recently made a breakout.
➖ If the price can hold above the 190 level, we can expect a bullish movement in the coming days.
◉ Revenue Breakdown - Location Wise
Ralph Lauren Corporation is a global luxury brand with a strong presence in various regions.
➖ North America remains Ralph Lauren's biggest market, contributing nearly 44% of its total revenue, which amounts to $2.93 billion.
➖ In Europe , the brand is seeing consistent growth, with revenue reaching around $2 billion, making up about 30% of total earnings.
➖ Asia , especially China, is becoming a key player for Ralph Lauren, generating approximately $1.58 billion, or 24% of total revenue.
◉ Revenue & Profit Analysis
● Year-on-year
➖ In the fiscal year 2024, the company achieved a modest revenue increase of 2.9%, totaling $6,631 million, compared to $6,443 million in the prior year.
➖ On the other hand, EBITDA growth has been remarkable, soaring to $1,024 million from $801 million in FY23. The current EBITDA margin stands at an impressive 15.5%.
➖ Additionally, diluted earnings per share (EPS) experienced a substantial year-over-year rise of 28%, reaching $9.71 in FY24, up from $7.58 in FY22.
● Quarter-on-quarter
➖ In terms of quarterly performance, the company reported a decline in sales over the last three quarters, with the most recent quarter showing sales of $1,512 million, down from $1,568 million in March 2024 and $1,934 million in December 2023.
➖ Nevertheless, EBITDA demonstrated significant growth in the June quarter, climbing to $265 million from $176 million in March 2023.
◉ Valuation
● P/E Ratio
➖ Current P/E Ratio vs. Median P/E Ratio
The current price-to-earnings ratio for this stock stands at 17.4x, which is notably elevated compared to its four-year median P/E ratio of 5.7x. This suggests that the stock is presently overvalued.
➖ Current P/E vs. Peer Average P/E
When evaluating the stock's Price-To-Earnings Ratio of 17.4x, it shows a more attractive valuation, as it is lower than the peer average of 25.5x.
➖ Current P/E vs. Industry Average P/E
RL is positioned at a more appealing price point, with a Price-To-Earnings Ratio of 17.4x, which is significantly less than the US Luxury industry's average of 19.x.
● P/B Ratio
➖ Current P/B vs. Peer Average P/B
The current P/B ratio reveals that the stock is considerably higher than its peers, with a ratio of 5x compared to the peer average of 3x.
➖ Current P/B vs. Industry Average P/B
In comparison to the industry average, RL's current P/B ratio of 5x indicates that it is substantially overvalued, as the industry average is only 2.2x.
● PEG Ratio
A PEG ratio of 0.54 suggests that the stock is undervalued relative to its expected earnings growth.
◉ Cash Flow Analysis
In fiscal year 2024, operational cash flow experienced remarkable growth, reaching $1,069 million, a substantial increase from $411 million in fiscal year 2023.
◉ Debt Analysis
The company currently holds a long term debt of $1,141 million with a total equity of $2,367 million, makes long-term debt to equity of 48%.
◉ Top Shareholders
➖ The Vanguard Group has significantly increased its investment in this stock, now owning an impressive 8.23% stake, which marks a 3.9% rise since the end of the March quarter.
➖ Meanwhile, Blackrock holds a stake of around 4.11% in the company.
◉ Conclusion
After a thorough evaluation, we find that Ralph Lauren Corporation is strategically poised to thrive in the expanding luxury apparel market, driven by increasing disposable incomes and a growing appetite for high-end products.
$JBL with a bullish outlook following its earnings #StocksThe PEAD projected a bullish outlook for NYSE:JBL after a positive over reaction following its earnings release placing the stock in drift B with an expected accuracy of 70%.
$FDS with a bullish outlook following its earnings #StocksThe PEAD projected a bullish outlook for NYSE:FDS after a positive under reaction following its earnings release placing the stock in drift A with an expected accuracy of 71.43%.
$COST with a bullish outlook following its earnings #StocksThe PEAD projected a bullish outlook for NASDAQ:COST after a negative under reaction following its earnings release placing the stock in drift D with an expected accuracy of 80%.
$ACN with a bullish outlook following its earnings #StocksThe PEAD projected a bullish outlook for NYSE:ACN after a positive over reaction following its earnings release placing the stock in drift B with an expected accuracy of 71.43%.
US30 (DowJones) - Daily Bearish SetupThe BLACKBULL:US30 index experienced a bullish spike, followed by a period of consolidation within a bullish channel. However, after a fake breakout above the upper boundary of this channel, it appears that the index could be poised for a downward correction. Based on the technical analysis, a fall toward the lower boundary of the channel is expected, providing traders with potential shorting opportunities in the near term.
Fundamentally, stock market volatility tends to rise during September, a historically weak month for stocks. This pattern is often attributed to traders returning from summer vacations, rebalancing portfolios, and increased bond offerings, which divert capital away from equities. In 2024, this volatility is further exacerbated by uncertainty around the Federal Reserve’s rate decisions and the upcoming U.S. presidential election. Investors are closely watching labor market data, inflation trends, and the Fed’s stance on potential rate cuts, all of which could impact market sentiment and drive further fluctuations in stock prices.
With the TVC:DJI at the top of the bullish channel and signs of weakness after the fake breakout, a pullback to the lower end of the channel seems likely. Traders should stay cautious and monitor key economic events and technical signals for opportunities to re-enter positions at more favorable levels.
Analyzing Microsoft: Patterns and Profit-Taking Opportunities
Microsoft is in a profit-taking zone based on the Parallel Channels and Equal Weight method.
The round number of $500 could act as a psychological level, affecting future price movements.
This is not a shorting zone, but a chance to manage your position and consider taking profits if it fits your strategy.
The second time in my analysis, I want to highlight the idea of Parallel Channels and Equal Waves, which is a helpful method for deciding when to take profits. One of its main benefits is that it helps find profit-taking areas, especially when there’s no major resistance or "traffic" on the left side of the chart.
Right now, Microsoft has reached important levels that look similar to patterns we’ve seen in gold. Also, the price is approaching a third key point, the round number of $500, which could play an important role in the near future.
It’s important to point out again that this is not a shorting area, but rather a potential profit-taking zone. If you’re managing your position as a mid-term investor and you might need your invested money soon, this could be a good place to take some profits.
Make sure to align this analysis with your overall investment plan. If you're ready to act, now could be a good time to lock in some profits.
Regards,
Vaido
