3 Stocks To Watch! January 2018
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Three stocks to watch January 2018. That is what we’re doing here today guys, welcome into one of my favorite series on the entire channel. I am Jeremy. This is a financial education channel and today we’re talking about three stocks that all three of these companies are probably going to be reporting numbers in the month of January and kind of why you want to pay attention to him and whatnot.
Very interesting three companies I’m going to be sharing with you guys here today. I hope you absolutely enjoyed this video. Make sure if you’re not already in my stock market membership group you get in there, this is your last chance to get in for $29 a month. It’s going up to $49 a month on December 31.
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Look at this one down nearly 50% year to date, what a disaster of a stock unarmed has been from one of the Wall Street darling, one of the hottest stocks to absolute disaster zone stock. Now in the last five days, the stock has bounced back very strongly up around 11% in the past five days.
That’s actually pretty impressive. Now last time on normal reported numbers, oh my gosh, it was just it was just a disaster. weaker demand for underarmor products across the US and Canada is clearly hurting the athletic apparel retailer, the company’s trimmed its profit and revenue expectations for the full year Tuesday.
Citing a difficult backdrop in North America, its largest market by sales, although it’s too early for us to provide an outlook for 2018 our initial assumptions anticipate continued strength across our international direct to consumer business. Contrast that with a difficult environment in North America and wholesale business well into the next year CEO Kevin Plank said okay, then we look at their actual results here and their revenue.
This was reported back in October, right revenue was down 5% guys and this is supposed to be a growth company. This is supposed to be a growth company and their revenue was down 5% last quarter. Now the reason being is obviously if you look there, the wholesale business declined 13% X is not to do absolute disaster.
Now on the flip side, direct to consumer was actually really strong look at that revenue up 15%. So direct to consumer business is really strong. The wholesale business is really weak, the wholesale business meaning the products they actually sell into retailers that then go ahead and sell those products.
Okay, direct to consumers more like people go into actual underarmor stores ordering on Under Armour calm and things like that that’s more direct to consumer stuff, rather than this other wholesale business, which is a sell to, you know, Dick’s Sporting Goods or whatever stores out there that sell Under Armour products.
Okay, so it’s a difference there. So when you think about Under Armour, you got to think about what are some of their biggest customers? Obviously, Dick’s is going to be probably their biggest customer, right? They’re the biggest, you know, especially retailer in North America, as far as athletic apparel goes, right?
If we look here comes store sales in the last quarter were down for Dick’s Sporting Goods, guys, that’s really bad news for anybody that sells into Dick’s Sporting Goods, especially a company like armour Under Armour, like it’s a significant amount of its revenues and profits from a company like Dick’s when you’re when your comfort or sales go negative.
That means that everything in that store is probably selling less and less. Okay, so that’s very bad sign. Last year Sports Authority filed for bankruptcy. Okay, that was another one of armors biggest customers. So Sports Authority files for bankruptcy, that’s like 450 stores there, they closed down and you would think that Dick’s would be able to pick up all that business and just get a ton of more business in those stores.
But then you look at Dick’s Sporting Goods and what what happened there same store sales were actually negative guys it was actually negative. So it’s not like things have picked up so it’s so strong addicts so this obviously hurts unarmoured big time now if we looked at what’s expected for this upcoming quarter, not much is expected ilus are expecting basically a breakeven quarter as far as earnings go year ago.
They actually had 23 cent profit then we look at the revenue side analysts are expecting only 1.4% sales growth guys that’s like nothing there with our normal. So this is a very interesting company because it’s kind of a situation like has this one been beaten down too much.
That’s one thing we got to ask ourselves has it been beaten down too much? You know, the wholesale business maybe this is just something that’s going to have to go through over the next year and then they’re going to kind of bounce back we see direct to consumer is a very strong which is obviously a very good sign for the company that maybe the brand isn’t as weak as it seems.
It could just be wholesale customers just aren’t moving as much merchandise as they were before. And for that reason it’s hurt Under Armour in a big way. So this will be a very interesting quarter to kind of look at the numbers and see what’s going on with this one. Are they are they going to be on the comeback?
Or are they just going to be you know a dog and just keep getting beaten down here guys, stock number two to watch in the month of January 2018 is Netflix. This is a super popular stock that I heard the ever talk about on this channel. I heard they ever talked about it.
This one but it’s such a popular stock we see year to date up 52% attendance an amazing year this past year right now if we look at their last quarter they reported in October once again, they should be reporting numbers in January. Netflix nailed these numbers unreal numbers Netflix at 5.3 million subscribers during the third third quarter past 5.3 million signed up for Netflix in a three month span.
That’s ridiculous. Beating analysts estimates revenue of 2.9 8 billion versus 2.9 7 billion was expected epsu actually came in much stronger than expected 37 cents versus 32 cents was expected obviously the subscriber number there 5.3 million gained versus the analysts thought.
Somewhere around 4.5 million there look at this here is willing to spend money to continue that trajectory with a new content budget of between 7 billion and $8 billion for next year figure up from $7 billion guys this is absolutely amazing.
I mean this is so much money and we’re going to kind of get into some things here in just a second but that is so much money to be spending on new content next year seven to $8 billion imagine how much content you can you can make or buy with that type of number guys the company has added about 109 point.
3 million subscribers globally or the that’s crazy Netflix set it at 850 million subscribers up to 850,000 subscribers in the US ahead of the 810 million that the street was expecting okay on real numbers there guys now so we look at there obviously the show that there are like advertising like crazy which is this new one is a show called bright okay.
Scott Will Smith is a star of it probably one of the highest paid actors in in literally the world. And you know they got a full soundtrack around this feature and tons of big name artists I noticed imagine how much money they’re spending just on the show name break.
It’ll be very interesting to see what type of results they get from this and if this is going to obviously help the subscriber base grow a ton because they are funneling a massive amount of money not just in you know having stars on the show show not just you know it all special effects and in you know soundtracks and all this stuff.
There’s been a massive amount of money on advertising this new show called bright I’ve never seen I’ve never seen Netflix advertise a show so much like I’m watching NFL games and college football games and I’m seeing the commercials in those spots are very expensive to do and Netflix is doing these in mass scale.
I’ve seen it on YouTube everywhere I’m seeing the ads for this new Will Smith show called bright showdown Fresh Prince of Bel Air Part Two where he’s like the father that would have been much cooler Netflix here we go so look at this here a year ago epsc to 15 cents analysts are expecting 42 cents okay so over like a triple up basically in the APS there that’s a big jump there and then.
If we look at the sales growth and as far as revenues growth goes there are analysts are expecting remember 32.5% jump in revenue there guys. So it’s going to be very interesting here with Netflix to see are can they keep up this type of growth because there’s at a certain point you would think that numbers are starting to get too too hard to keep beating, you know, to keep adding 5.3 million subscribers a quarter that you know that might be a little unrealistic.
But then when you have big launches like this and you’re spending huge marketing budgets and whatnot, maybe you can keep up that type of growth. This is gonna be a very interesting one to pay attention to when they report numbers probably in January.
Caterpillar is stuck number three here, Caterpillar This one’s up 64% year to date. It has had an absolutely amazing year. If we look at the three year on this it’s a very interesting chart because this chart reminds me of a stock I actually own so 2015 the stock went down 26% in 2016.
It came bounce back big time of 36% this past year of 64% three year change up 61% this chart reminds me so much a Wynn resorts obviously the my biggest position because in 2015 it was even more of a disaster in Caterpillar down 52% on weakness from China and that’s actually what hurt Caterpillar back then.
Then you look it bottoms out literally rate almost at the same time. Caterpillar does frayed around January February 2016. That’s almost exactly where Caterpillar bottomed out there in 2016. Guys, that’s crazy. Then it goes up 25% in 2016 another 95% plus this past year.
It’s crazy just how much those charts remind me of each other Caterpillar so this is last time they report numbers were in October they should be reporting new numbers here in January, Caterpillar and Tuesday blew past Wall Street’s profit or revenue estimates on surprisingly strong demand for its construction equipment in North America and robust sales in China pushing it pushing shares up 7% in early trading here.
The company also raised its full year forecast for sales and earnings expecting revenue in its construction business to surge about 20% in its mining business to jump 30% guys I guess there’s a ton of bytecoin miners and lik coin miners that are using Caterpillar equipment to mine some of these coins and what I’m just messing with you guys.
But that’s still like crazy impressive growth there in the Asian Pacific region. Caterpillar stirred busy biggest sales jumped 57% guys to 1.2 9 billion boosted by demand from China at least these numbers are insane 57% sales jumped in the Asian Pacific region.
So if we look at what analysts are expecting here and also expecting earnings around $1.76 year ago they were they did about 83 cents was basically about a double up there in ETS growth some very impressive if they can hit those numbers and then as far as revenue growth goes 20 almost 24% revenue growth the analysts are expecting for this upcoming quarter so.
Caterpillar is really interesting name with we know North America is getting stronger and we know China is also getting stronger so they’re in a very good position because when the macro economics in those two markets are very strong, that is like caterpillars business guide caterpillars business is so dedicated to the US market and so dedicated to China.
I mean I don’t know the exact breakdown and I don’t know if they break out exactly how much revenue comes from just you know North America in just comes from just China alone, but I can almost guarantee you is probably around 80 plus percent guys are heavily reliant on those two markets in a big way guys, so be very interesting to see what happens there.
I hope you guys enjoy the steak, three stocks to watch in the month of January 2018. Hope you enjoyed hit a thumbs up if you did. Thank you for watching, guys and have a great day.