3 Reasons Why Susquehanna Downgraded FedEx Shares To Neutral

After nearly one year of maintaining positive rating for the FedEx (NYSE: FDX) shares, Susquehanna has downgraded the shares to neutral. The last rating was done during March 2017. The macroeconomic conditions weren’t as bad compared to these days for FedEx. The research firm has cited three reasons for the recent downgrade. Below are our interpretations of the cited reasons.

  1. The first reason is the lack of visibility on the value addition resulting from the TNT integration. (Susquehanna has raised concerns on the decreasing European market share.)
  2. The second reason is the unfavorable macroeconomic condition. Most probably, trade war should have been one of the factors considered by Susquehanna.
  3. The third reason is related to an increase in capital expenditures, especially after the bonus depreciation by the US as a part of Govt tax reforms. The move by the US has encouraged companies like FedEx to invest in assets that will add value in the long term. However, the shares may not benefit in the near term.
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This Simple Analysis Shows Apple Shares Returned Twice As Microsoft In 10 Years

Investors often compare the performance of similar stocks (based on sectors, competition, etc.) to identify the better one. Now we are going to compare two prominent tech stocks – Apple and Microsoft.

10 Year Gain of Apple Shares

The metric of comparison is the 10 year gain of both the stocks (without factoring in the dividend). In 10 years between Feb 17, 2009, and Feb 11, 2019, the stock price of Apple has jumped from $11.88 to $169.43. The increase is an incredible 1326.18%. A $100 invested during Feb 17, 2009, would have become $1326.18 during Feb 11, 2019. Now let us check the gain of Microsoft during the same period.

10 Year Gain of Microsoft Shares

Microsoft has grown from $14.22 to $105.25 in the same time range used for our analysis of Apple stock’s gain. The jump in percentage is 640.15%.

Observation

Apple shares have grown nearly twice (1326.18%/640.15%) as that of Microsoft in 10 years.

Reference: AAPL Vs MSFT Report

This Quick Analysis Shows Tesla Shareholders Gained 5 Times More Than GM Investors in 5 Years

When we (Netcials) analyzed the top searched keywords on our site, we found many were interested in keywords like Tesla vs GM, Tesla vs Apple, etc. This post tries to answer how Tesla (NASDAQ: TSLA) shares have performed against GM (NYSE: GM). You will not see an in-depth analysis but a simple comparison of 5 year gain of the stocks (without factoring in dividends).

5-Year Gain of Tesla Shares

The close price of Tesla on March 28, 2019, was $278.62. 5 years ago, during March 28, 2014, the close price was $212.37. So the 5 year gain is 31.2%.

5-Year Gain of GM Shares

Between March 28, 2014, and March 28, 2019, GM shares jumped from $34.73 to $37.06. The gain is a mere 6.7%.

Comparison

Based on share price growth, Tesla shares have gained nearly 5 times (31.2%/6.7%) as that of GM in 5 years.

This Is How Monster Beverage Stock Can Beat The Markets After Credit Suisse Raises Target

Credit Suisse has raised the price target to $75. On March 28, 2019, the Monster Beverage (NASDAQ: MNST) closed at $54.46. The target value if realized will result in a gain of 37.71% compared to the March 28 close price. In other words, for a $1000 invested in MNST shares, you will gain $377.71 if the target is achieved.

Let us now check if MNST can beat the broad market indices in the next 12 months?

MNST Vs S&P 500

S&P500 (SPX) is a widely used index to track the US markets. Let us now check if MNST can beat the market i.e the SPX. The annual average return (CAGR) of the S&P 500 for 5 years (up to March 28, 2019) is 8.67%. Let us assume the return of the S&P 500 is going to remain the same (8.6%) for the next 12 months. In that case, MNST returns will beat the market by a whopping 29.04%. (37.71% – 8.67%).

MNST Vs Dow Jones Industrial Average

DJI or Dow Jones Industrial average is another popular broad market index. The annual average return of DJIA for the 5 years up to March 28, 2019, is 9.6%. In case Credit Suisse’s target is achieved, the MNST will beat the DJI by 28.11%.

Your $1000 may turn into $1202 with this stock, according to RBC experts

RBC Capital has raised the price target of Western Digital (NASDAQ: WDC) to $55 per share. The target price revision has been accompanied by an ‘Outperform’ rating.

Gain on a $1000 Invested if Target is Achieved

Let us calculate the potential gain on a $1000 invested if RBC Capital’s target is realized.

Close Price as on March 28, 2019 = $45.75
New Price Target by RBC = $55
Difference = $55 – $45.75 = $9.25

Expected Gain per Share = ($9.25/$45.75) x 100% = 20.21%

Potential 12-Month Gain on a $1000 Invested = 20.21% x $1000 = $202.10

Let us check if the expected returns can beat the markets. We are going to compare WDC to two broad indexes namely S&P 500 and DJI.

WDC Vs S&P 500

Annual Average Return (CAGR) of S&P 500 (SPX) in 5 years ending on March 28, 2019, is 8.67%

Let us assume the future 12-month return of SPX will be 8.67% again. The difference in the expected returns from WDC and SPX = 20.21%-8.67% = 11.54%

So WDC will beat the S&P 500 by 11.54% if RBC’s target is realized.

WDC Vs DJI

Annual Average Return (CAGR) of DJI in 5 years ending on March 28, 2019, is 9.6%

Difference in expected returns from WDC and SPX = 20.21%-9.6% = 10.61%

Therefore, WDC will beat DJI by 10.61% if RBC’s target price becomes true.