Review your stock value using the New York and NASDAQ stock markets.

Discuss the total value of your portfolio.

Submit your portfolio amount.

Assignment Content

1.

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Review your stock value using the New York and NASDAQ stock markets.

Discuss the total value of your portfolio.

Submit your portfolio amount.

Bottom of Form

Investing in Stocks

2

Investing in Stocks

Learning Team B

Fin/402

3/2/2020

Troy Mahone

Investing in Stocks

When considering which stocks to invest in there are a few things to consider. Such as return, risk, features, stock quotes, and types of dividends. When searching for 5 companies currently traded on the NASDAQ that we thought we should invest in we considered these things. We chose PepsiCo, Apple, Microsoft, Aritzia, and Amazon.

Our Top 5 Stocks

PepsiCo is known for its popularity among the beverage and snack industry. It is a billion-dollar company which has maintained a streak of consistently increasing dividend for 47 years now. Among the reasons why people should invest in this company is the extensive product range which is still growing by the day. This extensive product line caters to billions of people and is a constant favorite which means its demand will probably never stop.

Apple is one of the biggest smartphone companies in the world. In current times, the return promised by Apple is 1.3% dividend yield and an increase can be expected by investors in May 2020. Based on Apple’s latest earnings release for the quarter ending December 31, the company reported a quarterly revenue of $91.72 billion and net profit of $22.24 billion. In comparison, last year the company earned revenue of $84.37 billion and had a net profit of $19.97 billion. As of March 1,2020, shares of Apple (NASDAQ:AAPL) fell as much as 6.3%. Experts are predicting that this year’s revenues will grow about 10% to 11% and earnings growing 20% to 21%. Estimates keep going higher, the company keeps making more money, and margins are also going higher. It’s setting up for a very good opportunity and a reasoned buy.

Microsoft is a multinational company which reaches the global market as its target market which means its demand is also global. has had constant, nearly uninterrupted growth in the last 5 years, experiencing only one major dip at the start of 2019, but fully recovering and continuing its constant upward growth. In 2015 the value of MSFT began the year at 43.05 and as of Feb 29th it closed at 163.33. There was a steep rise at the end of January of 2020. As of Feb 29th, MSFT market cap is 1,232,255,676,090, 50-day average is 31,917,072, PE ratio is 28.22. The earning’s/share is $5.74. While this stock is not likely to achieve very high returns today, it’s historical data shows it is a safer investment that provides predictable and constant growth due to its position in the market place as a long time and trusted tech giant.

The Aritzia (ATZAF) is one of the trendiest names in current fashion. The clothing retailer based out of Canada had six consecutive quarters of double-digit revenue growth leading into 2020. The clothing retailer invests strongly in infrastructure, talent, and marketing. Even in times of rising raw material costs, Aritzia able to maintain stable gross margins by focusing on sourcing terms and higher sales volumes. The stock while currently down, has a six-month trend of increases in price. On 02/27/20 the stock closed at $16.54, however analysts are predicting a $29 high this year. Market cap is $1.672B. This company has been a favorite among Canadian’s for years, only now starting to develop a following in the U.S. It was recently noted as a strong buy right before the holiday season. As this is currently lesser known but strong, it is beneficial to buy now.

Amazon’s mission statements says that it wants to be the most customer-centric which means customer satisfaction is very important for Amazon. Amazon is a very low risk business to invest in with high capital stock gains. As of February 28th, 2020, the Amazon Market Cap is $937,750,423,885; 50-day average vol. is $4,146,009, and their PE Ratio being 81.87. At the end of 2016, the Amazon gross profit reached $47,722,000 and their net income applicable to common shareholders were $2,371,000. Three years later, in 2019, their end of year gross profit totals were up to $114,986,000 with the net income applicable to common shareholders also being up to $11,588,000. While the stocks may be down right now by 0.03%, they shouldn’t be down too long. Amazon is a growing company and is a go to business for many people these days. It is very common for most individuals to go to the Amazon.com website to price products before their final purchase, if their final purchase is through Amazon or not (“Nasdaq”, 2020).

Conclusion

All of these stocks are considered good investments as they are either proven to have great return on investment with consistency or are a solid start-up with massive growth and expected potential. We feel confident that investment in these companies would provide strength and profitability to any portfolio.

References
Market Activity. (2020, Mar 01). Retrieved from Nasdaq: https://www.nasdaq.com/market-activity/stocks/atzaf
NASDAQ. (n.d.). Retrieved FEBRUARY 29, 2020, from NASDAQ: https://www.nasdaq.com/
Retail Stocks. (2020, Mar 1). Retrieved from Yahoo: https://finance.yahoo.com/m/ad2f787b-8b67-3e64-b256-fff09e52df70/ss_2-%E2%80%98strong-buy%E2%80%99-retail-stocks.html

Portfolio Review

2

Portfolio Review

Learning Team B

FIN/402

03/09/2020

Troy Mahone

The stocks in this portfolio are the following: PepsiCo, Apple, Microsoft, Aritzia, and Amazon. While investing in stock an investor should consider return, risk, features, stock quotes, and types of dividends. An analysis was conducted to determine if the aforementioned stocks should remain in the portfolio.

Stock Reviews and Discussion:

PepsiCo has a persistent dividend increase over the years and have extensive product line with increasing demand, which means that it will keep growing in the future as well. This stock should remain in the portfolio considering its persistent growth.

Apple’s dividend yield is 1.3% and is expected to increase in May 2020. Its quarterly revenue and profit has increased as compared to its previous yearly report. It is expected that its revenue and earnings will grow from 10% to 11% and 20% to 21% respectively. It shows that its stock will grow in the future so it is a good investment opportunity. Investors who have owned Apple stock over the past decade have been amply rewarded, as its shares are up close to 1,000% over this period. The iconic smartphone company has been at the forefront of the technological era, and its innovative culture and visionary products have captured the hearts and minds of many consumers. As a result, smartphones are now a ubiquitous part of life. Apple literally created a whole new industry from scratch through its iPhone, inviting a slew of other companies to mimic its features. However, other companies have not come close to establishing a parallel level of brand loyalty and status. The decision is to keep this investment due to its expected growth potential.

Microsoft has constant growth and its historical data shows it is a safer investment that provides predictable and constant growth due to its position in the marketplace as a long-time and trusted tech giant. While investment in this stock is not intended to provide immediate and significant returns, it out performs other players in its industry such as Cisco. When reviewing the prior five-year performance of these stocks, Microsoft had better yields and a more stable upward momentum. Hold on to this stock, as it is a less risky investment.

The Aritzia (ATZAF) has stable gross margins and its stock is predicted to be $29 higher this year, which indicates future stock growth so it will be beneficial in term of investment. In January of 2020 it reported positive comparable sales growth for its 21st consecutive quarter. This growth is only predicted to increase due to the company’s recent focus on digital online selling and the use of influencer marketing. It also branched out into the menswear market, which will increase its customer base (Aritzia, 2020). This investment also assists in the diversification of this portfolio. It is an industry separate from the tech industry. As stores are currently focused in Canada and only recently expanding throughout the U.S, it also provides diversification in terms of geographical and political factors that may affect its market price. As it is expecting future growth, this stock remains in the portfolio.

In 2016, Amazon’s gross profit was $47,722,000 and its net income applicable to common shareholders was $2,371,000. While in 2019, its end of year gross profit totals were up to $114,986,000, with net income applicable to common shareholders also increased to $11,588,000. These values indicate a growth trend in the company. It joined the grocery/meal delivery service; and has been investing in computing, transportation, and video services. Amazon is leading the market with their Amazon smart speakers and now offers next day shipping for their prime membership customers. It is constantly joining new markets to expand its available services and to become more competitive. Amazon is beginning to join the transportation market, to offer its own delivery service, and is discussing health/online pharmacy options as well. Ninety-six out of a ninety-nine IBD Composite Rating proves that Amazon is a fantastic stock to invest in, with an 84 Relative Strength Rating (Deagon, 2020). Even though its stock value has slightly decreased, it is expected to bounce back. Continue to hold this investment based on historical trends and potential for future growth.

The stocks discussed above are thought to be good investments as they are either proven to have great return on investment with consistency or are a solid start-up with massive growth and expected potential. The mix of stocks selected offer diversification in terms of industry, geography and political environments. We feel confident that investment in these companies will provide a strong and profitable portfolio.

References
Aritzia. (2020, January 9). Aritzia Reports Third Quarter Fiscal 2020 Financial Results. Retrieved from Aritzia: https://investors.aritzia.com/investor-news/press-release-details/2020/Aritzia-Reports-Third-Quarter-Fiscal-2020-Financial-Results/default.aspx
Deagon, B. (2020, March). Is Amazon Stock A Buy Right Now? Here’s What Earnings, Charts Show. Retrieved from Investor’s Business Daily: https://www.investors.com/news/technology/amazon-stock-buy-now/
Smart, S. B., Gitman, L. J., & Joehnk, M. D. (n.d.). Fundamentals of Investing. Pearson.