Stock Picks and Analysis
Choosing two profitable stocks amongst a myriad of potential alternatives is a daunting task to say the least. In order to narrow my choices from thousands to two, I examined several aspects of companies I was interested in. Among these were, company overview, alpha and beta ratings, price ratios, price charts, and company headlines. After evaluating this information, I chose Intuit INC (INTU) listed on the NASDAQ and Johnson and Johnson (JNJ) listed on the NYSE.
Intuit, Inc.
Intuit, Inc. is a provider of small business, tax preparation and personal finance software products and Web-based services that simplify complex financial tasks for consumers, small businesses and accounting professionals. The Company's principal products and services include Quicken, QuickBooks, Quicken TurboTax, ProSeries, Lacerte and Quicken Loans. Intuit offers products and services in five principal business divisions which include Small Business, Tax, Personal Finance, Quicken Loans and Global Business (Market Guide).
Intuit develops, sells and supports small business accounting, tax preparation and consumer finance desktop software products, financial supplies, and Internet-based products and services for individuals and small businesses. This past fiscal year ended on 7/31/02 and revenues rose 18% to $1.36 billion. Net income from continuing operations totaled $69.8 million vs. a loss of $118.1 million. “Results reflected higher quicken loans division sales and lower acquisition-related charges.” (Market Guide) Inuit has continually met or surpassed previous financial estimates in a time when most companies are barely staying out of the red.
On 9/8/02 Inuit, Inc had an Alpha rating of .0084 indicating it was performing better than previously estimated. Intuit also had a Beta rating of .24 indicating its volatility had decreased. This beta indicates that the company could possibly increase or decrease .76% less than the index. Due to this small Beta, Intuit is of relatively low risk as it is independent of the motion of the index. Inuit has a Relative Performance Rating of 53.81. This stock overperforms the NASDAQ 100 INDEX by 53.81 %. Intuit has gained 7.29% since December 31.
The current price of Inuit was $45.900 with a P/E of 29.61. The stock’s fair value using its P/E Ratio was dismal at $24.58. From a fundamentalist view the stock should be sol...
... middle of paper ...
...On September 25, it announced a large clinical trial showed its experimental devices to treat clogged heart arteries performed significantly better than current technology. Doctors and analysts expect the new technology to revolutionize the treatment of coronary artery disease. Although many analysts downgraded Johnson and Johnson from a strong buy to outperform Monday, they still site it as a good buy.
Johnson and Johnson has been trading above both its 50 and 200 day averages and is promising. Its current market position is very attractive as it may become a market leader when the DOW turns around. Johnson and Johnson’s undervalued price, market position, and earnings make it a good pick in a sea of ambiguity.
After considering the market position I have decided to take a moderate risk approach. I will allocate 40% of my resources to Johnson and Johnson and 30% to Intuit, Inc. The remaining 30% I will hold in cash. Although the saying “Cash is trash,” applies to a bull market, I am still apprehensive as to when this turnaround will occur. For now I will benefit by holding cash, but if the market turns at the end of our two month period as many analysts believe, I will lose out.
...s are doing well and over the many years have gone up. The company has not lawsuits currently pending which is good. The company as a whole seems to be growing even when the market is down.
Although I am convinced that Chipotle is a wonderful concept with a proven track record as well as significant brand presence in the US, the return that an investor receives depends on the price paid for the shares, and with respect to that Chipotle doesn’t seem great. There is no doubt that the company has a lot of room for growth, even within the US, however it is likely to face considerable headwinds as it grows larger and larger. In view of such factors, the cons outweigh the pros of the stock.
They offer a variety of accounting software to growing companies. Armanino focus on changing QuickBooks, MAS, Peachtree, and other software to Intacct, which gives access to real-time financial and non-financial data, simplifies and minimizes order processing times, financial consolidations, close processes, and more. These changes in technology contribute to the growth of their clients because they are getting the best resources. Also, Armanino provides innovation according to the company’s industry, so they can succeed in whereever they
Mondavi’s stock appears to be over valued by approximately 100% compared to 1997 and 1998’s per share market value. According to the EPS ratio, such over valuation appears to be consistent from ’97 to ’98, according to the EPS ratio. Therefore, it seems that investors would be hesitant to purchase Mondavi’s stock.
Target, the nation's #2 discount chain, now operates more than 1,500 Target and Super Target stores in 47 states, as well as an online business called Target.com. Target and its larger grocery-carrying stores, Super Target, have carved out a niche by offering more upscale, fashion-forward merchandise than rivals Wal-Mart and Kmart. After years of struggling to turn around its Marshall Fields and Mervyns departments stores divisions, the discounter sold them both in 2004. Target also owns apparel supplier The Associated Merchandising Corp. and issues Target Visa and its proprietary Target Card (www.Answers.com/topic/target-corporation).
Merck & Co., Inc. is one of the largest pharmaceuticals companies in the world. After analyzing recent performances and looking at the current events of the company, it would be in the best interest of a stockholder of “MRK” to either hold their stock or buy more stock dependent upon their current financial situation. Due to recent company developments such as multiple acquisitions and positive financial performances, investors are justified to continue to hold their stocks and potentially even buy more because stock prices will most likely continue to rise. This holding/buying stock is the best option in order for investors to be the most profitable.
Their acquisition of other pharmaceutical companies and advancements in their diagnostics placed Johnson & Johnson in the running of increasing their revenues and consumer sales greatly by 2016.
...e General Dynamics higher so that led me to purchase this stock. For the stock NXP, it was rumored that Apple could be adding near field communication chips so I researched it and stumbled onto NXP. I can do things over again I would want the website to not fail on my portfolio that was in the top ten for the whole year and then reached the top 3 and then number one right as the glitch occurred.
Johnson & Johnson is one of the most successful companies and it can still be if it maintains doing the right thing continuously. They should keep being smart and fast decision makers to always be on top and ahead of their competitors.
QuickBooks is an accounting software package which is developed by Intuit, Inc. It was launched in the 90's and since than it is one of the market leaders in accounting software. The software was designed to help the small business owners who had no formal accounting training. Very shortly after the introduction, there was no doubt that the product is going to be a hit. With a deep focus for the non-accountant, and a lower price than the competitor's products, it outsmarted its competitions. Intuit states that the company's mission is to create new ways to manage personal finances and small businesses that are so profound and simple, customers cannot i...
Important factors of a company’s outlook are its financial strength and weaknesses. These factors can be evaluated by reviewing the firm’s financial statements and using ratios to help measure a company’s liquidity, leverage, activity, profitability, and growth. Financial ratios are computed by using the information found in a company’s financial statements: primarily income statement and balance sheet. The calculations from the current year, previous years, and other companies in the industry are used as a basis to identify and ev...
The financial position of a company offers great insight on the performance of the company on short-term and long-term basis. This work argues that Facebook Inc. is a company with a subjective investment portfolio. The purpose of this paper is to use ratio analysis to determine the position of the Facebook as an investment destination. The first section explores two ratios and their implications to a potential investor. The second part evaluates whether Facebook is bankrupt. The succeeding section offers advice to potential investors. The work culminates by highlighting key points and making necessary recommendations.
We analyzed the market for two weeks to determine when the equity market would turn from a bearish to bullish market. Without a change in the market and a declining bond price, we decided to invest in equities according to our investment strategy, which brought us into the second phase of our portfolio. Therefore, at the beginning of February we bought shares in Sirius, Microsoft, Neon, Washington Mutual, and Nike. As assumed, the equity market continued to plummet decreasing the value of all our stocks except for our Gold Corporation stock.
Jonson & Jonson is one of the largest worlds well known company in health care, operates in three different segments through more than 275 operating companies located in more than 60 countries and employs approximately 128,300 people worldwide. Johnson & Johnson was organized in the State of New Jersey in 1886 and specialized in three main segments first pharmaceutical such as hematology drugs or anti-fungal drugs, second consumer products such as products for skin care, wound care, as well as baby and child care, and third segment is medical devices and diagnostics that’s includes wide range of surgical products to disposable contact lenses. (Johnson, 2014) .Jonson & Jonson now considered one of the world leading companies in health care (world’s eighth-largest pharmaceuticals company) and succeed to compete other health manufacturing organization such as Pfizer Inc. (United States) and Covidien plc. (Ireland) they also had so many world awards and recognition from different organizations such as Most Admired Pharmaceutical Company for 2013 form Med Ad News magazine (Top 50 Pharmaceutical companys, 2013) and the best products for Working Mothers in 2013 from Working Mother Magazine.
Today, there is a range of computerised systems in the market that business can use to keep track of their finances; few of the most recognised for their performance are Sage, Microsoft Dynamics, Oracle, QuickBooks, SA...