10 stocks tell you why U.S. stocks plunged!

On February 24, 2020, the U.S. stock market plummeted by 1,000 points. Since the outbreak of the new coronavirus epidemic, although market funds have already begun to flow into safe-haven assets such as gold and bond markets, the epidemic does not seem to have an impact on the stock market trend.

As the new coronavirus epidemic spread further, and companies began to publish performance reports, investors began to worry that the epidemic would affect the company's next quarter's profit growth and made predictions for the company's next quarter's performance.

Analysts lowered the companies The profit forecast for the next quarter, and the Fed is expected to cut interest rates in March, the Fed's rate cut indicates that the economy may further decline.

S & P 500 Index

Fed watch

As an investor, you need to know how to value a company using PEG indicators. Generally speaking, the valuation using the PEG indicator is more accurate, but it is only used to analyze the latest quarterly data, because the company's profit growth is always changing, and the long-term valuation of the company may not be applicable. The so-called PEG indicator is the company's price-earnings ratio (PE) divided by the company's annual growth rate of earnings per share (G).

(PE) simply reflects the current value of a stock, and PEG links the current value of the stock to the earnings growth of the stock. For example, the current price-earnings ratio of a stock is 20 times, and the performance report shows that the annual growth rate of EPS is 20%, then the PEG of this stock is 1. When PEG equals 1, it indicates that the valuation given to this stock by the market can fully reflect the growth of its performance.

PEG = PE / G x100

If the PEG is greater than 1, the value of the stock may be overvalued, or the market believes that the company's performance growth is lower than market expectations. When the PEG is less than 1, the value of the stock may be undervalued, or the market believes that the company's performance growth is higher than the market's expectations.

Usually, the company's profit is in the growth stage, and the PEG index will be lower than 1. Investors need to note that like other financial indicators, PEG cannot be used alone, and must be combined with other indicators. The most important thing here is the expectations of the company's performance.

Then, by analyzing the company's profit forecast for the next quarter, we analyze the PEG index of the ten weighted stocks of the S & P 500 index.

Microsoft PEG=0.96

Apple PEG=1.38

Amazon PEG=2.421

Google PEG=2.24

JPMorgan PEG=0.77

Johnson & Johnson PEG=4.28

Visa PEG=2.48

Procter & Gamble PEG=9.52

Mastercard PEG=2.16

Facebook PEG=1.63

The analysis of the PEG index of the top ten heavyweights of the S & P 500 shows that the value of most companies' stocks is overvalued, so the decline in company stock prices is reasonable, and the value of the US stock market may also be overvalued, causing the US stock market to fall.

Comments

FNKO VS PLBY: Which NFT stock is more attractive for investment?

The market for NFT stocks is recently booming, and investors have begun to show strong interest in NFT stocks. NFT is a digital asset created using blockchain encryption technology, such as works of art, music or video, etc. Each NFT has a unique digital signature to determine its unique attributes, making it difficult for NFTs to exchange with each other. NFT provides a unique way for content creators to earn income by paying copyright fees or selling their artworks directly to consumers. According to data provided by Forbes Advisor, since November 2017, nearly $174 million has been used for NFT transactions. On May 12, Eastern Time, eBay (EBAY.US) added NFT to its online shopping mall product list. Funko (FNKO.US) and PLBY Group (PLBY.US) recently had the most popular NFT concept stocks, which stock is more attractive for investment? Let's look at what Wall Street analysts think of these two stocks. Funko is a pop culture consumer goods company who...

TSM Stock Forecast and Price Target 2021

Today, I will analyze TSMC stocks in-depth with you. In the semiconductor sector, TSMC has always been my most promising stock. TSMC has just announced its results for the fourth quarter of 2020. At the same time, there are new developments in the entire chip industry recently. Therefore, today I will combine the financial report and chips. The latest developments in the industry to analyze the trend of TSMC stocks, First of all, we analyze TSMC’s fourth-quarter and full-year 2020 financial reports to see what are the key points worthy of investors’ attention. First, TSMC’s fourth-quarter revenue and profitability are very good. Compared with the outlook for Q4 in Q3, the outlook at that time was US$12.4-12.7 billion, and the actual revenue was US$12.68 billion. Actual revenue As the upper limit of the outlook, the gross profit margin outlook is 51.5%-53.5%, while the actual gross profit margin is 54%, which is better than the outlook. The operating net profit margin is expected t...

Bitcoin vs Ethereum vs Dogecoin: Which one is suitable to buy?

Bitcoin（BTC), Ethereum(ETH), and Dogecoin（DOGE） are the three most-watched cryptocurrencies. As a young investor, he has a strong mentality of pursuing returns and accepting new things. In recent years, cryptocurrencies have become the new favorites of many people. In particular, these three digital currencies have attracted the most attention: Bitcoin, Ethereum, and Dogecoin. However, not all cryptocurrencies are created equally and trying to determine which type is right for you can cause confusion. Each currency has advantages and disadvantages, and which currency you choose to invest in will depend on your situation. Investing in cryptocurrency must bear the risk First of all, you must consider whether cryptocurrencies are suitable for you because all cryptocurrencies are highly speculative and subject to great volatility. They have experienced the "currency disaster" in recent weeks, with an adjustable-rate of more than 30%. Fur...

XPEV stock forecast 2025: can selling software make money?

The new energy vehicle industry has a relatively high degree of attention, that is, Xiaopeng(XPEV) released its first-quarter 2021 financial report. The general performance data of XPEV are as follows: The total delivery volume reached 13,340 units, a year-on-year increase of 487.4%. Total revenue was USD 450 million, a year-on-year increase of 616.1%. Auto sales revenue was US$429 million, an increase of 655.2% year-on-year. The gross profit margin was 11.2%, compared with -4.8% and 7.4% in the same period last year and the fourth quarter of 2020, respectively. The gross profit margin of automobile sales was 10.1%, compared with -5.3% and 6.8% in the same period last year and the fourth quarter of 2020. To be honest, this data itself is not eye-catching in comparison with Weilai and ideals. Although for officials, this quarter’s financial report has ushered in two major milestones. One is that gross profit margin continues to improve and ...

4 economic indicators that must be observed!

Stocks are one of the simplest and most passive types of income, but when we invest in the stock market, we always feel that the current stock price is on the high side, but if we don’t enter the market to buy stocks, we are afraid that the stock price will continue to rise. When the U.S. stock market continues to hit new highs, should it enter the market or should it wait and see and wait for the crash to enter the market. First of all, I want to declare that I am a value investor and insist on the BUY AND HOLD operation method. We all know that stocks are cyclical, and we are now experiencing the longest bull market in history. Stock market analysts believe that a crash may come at any time, but we just have no way to predict the specific time. I believe everyone understands. But I know that a bear market will definitely come. The long-term trend of stocks often has several economic data as a reference. Today we will take a look at these economic data. source: tradingview...

What is a spac stock in the Investment market?

Let me talk about SPAC first. SPAC (Special Purpose Acquisition Company) means "Special Purpose Acquisition Company", also known as "Blank Check" or "Shell Company". As the name suggests, this company has no actual business, and its essence is a financial innovation tool that provides companies with listing services. More simply, SPAC is a shell resource company established by professional institutions such as investment banks and fund companies as promoters. The sole purpose of this company's listing is to find the target company, through reverse mergers and acquisitions, to achieve the target company's listing and financing. Most people pay attention to SPAC from 2020, but in fact, SPAC is nothing new. The SPAC structure was first born in the 1990s and was pioneered by David Nabers, who worked for the Wall Street investment bank GKN. However, in the past few decades, compared with traditional IPOs, the number of SPACs is very limited, and ...

Barrick Gold stock price soars after Warren Buffett's buys a stake?

Has Buffett bought gold ? Buffett has not changed. Buffett does not want to hold physical gold, but he has never said that he will not buy shares in gold mining companies. Looking at the entire market, there are not many stocks that fit Buffett's trading. And Barrick Gold Company is just one of them. Buffett bought nearly 21 million shares, and the current share value is $563 million. We now look at the underlying logic of Buffett's purchase of Barrick Gold stock. Compared with physical gold ETFs, gold mining companies can respond positively to market conditions. There are financial reports to analyze, With dividends and stock repurchase plans, gold mining companies have the right to reward shareholders through capital return plans. In contrast, the physical gold ETF has no gains. The market generally believes that it is still in the upward cycle of gold prices . The current international environment is one where black swans emerge one after another. While paying att...

TSMC VS Nvidia, AMD, Intel. How to choose semiconductor stocks?

The general pattern of the semiconductor industry, the overall trend and target price of TSMC in 2021, how the Nvidia(NVDA), AMD, and Intel(INTC) semiconductor stocks are laid out, what is the decisive factors, and whether there is a predictable time point, we conducted a more systematic discussion. The big picture of the semiconductor industry The semiconductor industry is cyclical. Since the second half of 2019, global semiconductors have entered a new round of the business cycle. This is very important. Only when you understand this reason can you hold stocks with peace of mind. The following analysis is based on the time dimension. In the short term, looking at one to three months now, with the outbreak of the epidemic again, the production capacity of 8-inch wafers are in short supply, the semiconductor industry chain is out of stock, wafer foundry, packaging, and testing links have seen price increases, and production capacity is in short supply. High economic situation, In ...

Capital Flows Tracking Weekly

Release: January 27, 2021 The weekly Capital Flows estimate the industry's total, based on the report covering more than 98% of mutual fund and ETF assets. Collect actual mutual fund net new cash flows and ETF net issuance together monthly; therefore, there is a discrepancy between these weekly estimates and monthly flows. The data from the previous few weeks reflect revisions due to data adjustments, reclassifications, and changes in the number of fund reports. Mutual fund data represents the estimated value of net new cash flows, that is, new sales minus redemptions plus net exchanges, while exchange-traded fund (ETF) data represents net issuance, that is, net issuance minus total Redemption amount. This series does not include data on mutual funds that primarily invest in other mutual funds and ETFs that primarily invest in other ETFs.

AMZN stock forecast 2025： Amazon's main advantages

On July 6, after the US stock market opened, Amazon broke through $3,600, a record high. Amazon has been oscillating between 3000-3500 US dollars in the past year, and the stock price finally broke through. Amazon is a stock that has a high valuation from PE but is seriously undervalued by the market from the perspective of its development prospects. It is one of my favorite technology stocks. Amazon's main advantages are: 1. Amazon's current GMV is only half that of Alibaba. Looking at the current penetration rate of e-commerce in China and the future penetration rate of e-commerce in the United States, we will find that Amazon e-commerce has huge growth potential in the United States. Amazon e-commerce is far from saturated in the United States. 2. Cloud computing has unlimited potential. As the industry leader, Amazon's cloud computing can maintain a growth rate of 20%-30% for many years in the future. 3. The international ...

FinanceLinkway

Search This Blog