Subject: Know Your Profitability Metrics

Plus, Rover's Weekly Brief | View this email in your browser

 
           
 

 
Rover's Weekly Market Brief
Rover

Indices

DJIA: 20,896.60 (-0.53%)

NASDAQ: 6,121.23 (+0.34%)

S&P 500: 2,390.90 (-0.35%)

Commodities

Gold: 1,227.80 (+0.07%)

Copper: 252.75 (-0.04%)

Crude Oil: 47.89 (+3.61%)

Economy

After a -0.1% drop in March, the April Producer Price Index (PPI) for final demand rose by a stronger than expected +0.5%, bringing the Y/Y increase to +2.5%, which is the highest rate since February 2012. Core PPI, which strips out more volatile components for a look at broad based pricing, was up +0.7% M/M, and +2.1% Y/Y. While almost two-thirds of the PPI gain can be attributed to a +0.4% increase in services, energy costs also rebounded from a -2.9% March drop to a +0.8% gain in April.

 

Although consumer prices recovered from March’s -0.3% drop to a +0.2% M/M (+2.2% Y/Y) increase in April’s Consumer Price Index (CPI) report, the increase lagged producer costs in the PPI report. Consumer costs for food (+0.2%), energy (+1.1%), tobacco (+4.2%) and rent (+0.3%) were up, and costs were down for physician’s services (-1.2%), airline fares (-0.6%), apparel (-0.3%), wireless phone services (-1.7%) and new and used vehicles (-0.2% and -0.5%). Excluding food and energy components, core CPI was up +0.1% M/M (+1.9% Y/Y).

 

Retail sales estimates for March were revised upwards from -0.2% to +0.1%, and April sales were up +0.4% in the Advance Retail Sales report. Brick and mortar stores continued to trend downward with a -0.5% drop in April, bringing losses for the first 4 months of the year to -5.2%, with online sales rising by +1.4% and +10.7% for the same periods. April sales increased for building/garden supplies (+1.2%), electronics/appliances (+1.3%), and motor vehicles (+0.7%), and decreased for furniture (-0.5%), food (-0.3%), and clothing (-0.5%).

Upcoming Events:

Tuesday May 16 — Housing Starts

Tuesday May 16 — Industrial Production

 

Earnings Calendar

Mon
NTTYY
MTU
Tues
HD
TJX
Wed
CSCO
TGT
Thurs
WMT
CRM
Fri
DE
FL

 

 

Know Your Profitability Metrics

 

One major feature of quality that fundamental investors look for in companies is profitability. That means the ability to translate revenue (top line) into profits (bottom line). What do different indicators, such as net margin and ROE, tell you? This article explores six measures of profitability, including their limitations and advantages.

Read the Article

 

 

Find Profitable Companies

 

In Ideas this week you’ll find screeners using several profitability metrics described on our blog post “Know Your Profitability Metrics”, with the goal of bringing you quality, efficient companies. Check it out!

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

Go to Ideas

The CAN SLIM Investing Framework

 

The CAN SLIM investing framework incorporates criteria for picking growth stocks with momentum using qualitative and quantitive factors while still leaving room for subjective interpretation. Follow along as we revisit an analysis of one of CAN SLIM's picks.

Read the Article
 
All Recent SR News
 

 
 

 

Thank you, as always, for being a Stock Rover member.

Wishing you a productive week,

The Stock Rover Team

www.stockrover.com

SR Markets Investing Ideas
Our Blog Getting Started
Link Your Brokerage Premium Free Trial

 

Change your email preferences