Subject: How to Tell if a Stock is Undervalued

Job Openings and Labor Turnover Survey, Productivity and Costs, International Trade | View this email in your browser

 
           
 

 
Rover's Weekly Market Brief
Rover

Indices

DJIA: 25,316.50 (+2.77%)

NASDAQ: 7,646.00 (+1.21%)

S&P 500: 2,779.00 (+1.62%)

Commodities

Gold: 1,302.80 (+0.27%)

Copper: 327.50 (+5.70%)

Crude Oil: 65.63 (-0.27%)

Economy

There were 6.7 million jobs available at the end of April, up +65,000 from the previous month, with hires (5.6 million, +92,000) and separations (5.4 million, +86,000) also remaining relatively unchanged from March. Within separations, the rate of layoffs and discharges rose from 1.0% to 1.2%, but the quits rate remained unchanged at 2.3%. Job openings grew the most quickly for information (+6.0%), professional services (+5.7%), accommodation and food services (+5.7%), health care (+5.5%), and transportation (+5.0%), and, while the South had the most job openings at 2.3 million, the rate of openings grew the most quickly for the Midwest (+4.8%) and West (+4.4%).

 

Nonfarm labor productivity increased at a seasonally adjusted annual rate of 0.4% in Q1 2018, with a +2.3% increase in hours worked taking away from a +2.7% increase in output. On a yearly basis output increased +3.6% while hours worked increased +2.3%, bringing productivity up +1.3%. A +3.3% increase in hourly compensation in Q1 and a +0.4% productivity increase brought labor costs up +2.9%. However, inflation adjusted real hourly compensation for Q1 2018 vs Q1 2017 dropped -0.2% overall for all nonfarm businesses, with rates varying from a -3.4% drop for non durable manufacturing to a +2.2% increase for durable manufacturing.

 

In April, exports rose +$0.6 billion to $211.2 billion, while imports dropped -$0.4 billion to $257.4 billion, shrinking the US goods and services deficit by -$1 billion to $46.2 billion. Compared to the same year-to-date period in 2017, both exports (+$62 billion) and imports (+$82.8 billion) increased, and the trade deficit was +$20.8 billion larger, Export increases in April included fuel oil (+$0.5 billion), soybeans (+$0.3 billion), and corn (+$0.3 billion), while civilian aircraft exports decreased -$2.8 billion. Imports dropped for cell phones (-$2.2 billion) and cars (-$1.0 billion), but increased for crude oil (+$1.0 billion). By country, trade deficits increased with China (+$4.7 billion to $93.4 billion) and Germany (+$1.7 billion to $18.7 billion), and the surplus increased with Canada (+$3.7 billion to $4.2 billion).

Upcoming Events:

Wednesday June 13 - Federal Open Market Committee (FOMC) Meeting Announcement

Thursday June 14 - Retail Sales

Earnings Calendar

Monday Tuesday Wednesday Thursday Friday
AmTrust
Financial Servs
(AFSI)
H&R Block
(HRB)
Bitauto
Holdings
(BITA)
Jabil
(JBL)
Hexindai
(HX)
RH
(RH)
Pivotal
Software
(PVTL)
Myovant
Sciences
(MYOV)
Michaels
Companies
(MIK)
Nobility
Homes
(NOH)

 

 

Quick and Dirty Way to Test if a Stock is Undervalued

 

How can you find undervalued companies that are trading at a discount but have long-term earnings growth expectations? Or - conversely - how can you tell is a stock is overvalued? This week we take a look at a quick and dirty formula that can indicate if a stock is undervalued or overvalued.

Read the Article
 

Guru Portfolio Updates

 

Wondering which stocks the stock market Gurus are investing in? Visit Stock Rover's Library and import Guru inspired portfolios. Our latest updates include:

  • Bill Ackman - Pershing Square
  • Bill Gates Like
  • Bill Nygren - Oakmark Select
  • Bruce Berkowitz - Fairholme Fund
  • Carl Icahn - Icahn Capital Management
  • Daniel Loeb - Third Point
  • David Einhorn - Greenlight Capital Top 25
  • David Katz - Matrix Advisors Value Top 25
  • David Rolfe Top 25 - Wedgewood Partners
  • David Tepper Top 25
  • Dodge & Cox Top 25
  • Goldfarb & Poppe - Sequoia
  • Seth Klarman - Baupost Group
  • Tweedy Browne Value Top 25
  • Warren Buffett Top 25
  • Weitz Value
  • Yacktman Focused - Top 25

You can download any of our featured screeners directly into your account by clicking the “Add to Account” link.

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The Stock Rover Team
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