ipl-logo

Stock Picks And Rationale: Skyworks Solutions, And The Southern Company

969 Words4 Pages

Stock Picks and Rationale 1

Stock Picks and Rationale
Chad Robinson
Central Piedmont Community College
BUS110-22

Abstract
This paper will include the reasoning behind my choosing of three companies for the assigned Stock Project. During this project, the objective is to follow three companies of my choosing over a 12 week period. The companies I have chosen include: Skyworks Solutions (SKWS), Bank of America (BAC), and The Southern Company (SO). I have chosen each stock for a definitive reason and will explain as to why in the following paper.

For this Stock Project, I am purchasing three stocks: Skyworks Solutions, Bank of America, and The Southern Company. I have chosen three companies …show more content…

Now with the economy showing signs of strengthening, interest rates could possibly be increased by the Federal Reserve Bank in order to stave off inflation. In turn, this should increase banks’ profits. (Russonello, G. 2016, December 14) This is why I have decided to also invest in Bank of America (BAC). The financial sector, more accurately the banking sector, is a great opportunity for value investing. Value investors search for stocks that the market price doesn’t fully reflect the business's future cash flow. BAC is currently operating at a P/E ratio of 17.1 which is about 13 times the earnings, which is below average according to Investopedia. (I. 2015, April 17) A low P/E can indicate that a company may be undervalued or that the company is doing exceptionally well in comparison to its past trends. Therefore, based on the current economic climate, I believe that BAC is in for an upward swing in price over the next few …show more content…

(2016, January 21). Skyworks Solutions Inc.: Investing in the New World (SWKS). Retrieved January 29, 2017, from http://investorplace.com/2016/01/skyworks-solutions-inc-investing-in-the-new-world-swks/#.WIbJEH3DgVg
Detar, J. (2015, June 22). Apple Chip Supplier Skyworks Targets 5G, IoT Markets. Retrieved January 29, 2017, from http://www.investors.com/news/technology/skyworks-lab-to-design-internet-of-things-chips/
Russonello, G. (2016, December 14). How the Fed’s Interest Rate Increase Can Affect You. The New York Times. Retrieved January 24, 2017, from https://www.nytimes.com/2016/12/14/business/economy/how-the-feds-interest-rate-increase-can-affect-you.html?_r=0
I. (2015, April 17). Is the banking sector a good choice for value investing? Retrieved January 29, 2017, from http://www.investopedia.com/ask/answers/041715/banking-sector-good-choice-value-investing.asp
Brewer, R. G. (2016, March 04). How Risky Is Southern Company's Stock? Retrieved January 29, 2017, from

Show More
Related

What Are The Similarities Between Dick Sporting Goods Inc. And Verizon

1229 Words | 5 Pages

N.Y.S.E Corporation Comparison The New York Stock Exchange has a large list of corporations. Out of the list I chose two corporations, Dicks Sporting Goods Inc. and Verizon Communications. Dicks Sporting Goods Inc. is a sporting retail and Verizon is a utility of communication. There are many factors that go into comparing them, for example you have to look at each of the corporations and compare their money flow.

Read More

Walgreens Executive Summary

433 Words | 2 Pages

For this project, the class has been asked to evaluate all of the financial statements for the companies CVS and Walgreens. In the previous three parts, we have been asked to do research on the companies and evaluate many different ratios for each company. The following paragraphs will explain why I believe CVS would be the best company to invest in. Competition drives our economy and the growth of companies. If you take a look at the two companies were have been researching, they are fighting for the same client base.

Read More

Lockheed Martin Essay

1758 Words | 8 Pages

I calculated a beta of 0.364013 by finding the covariance of the LMT shares and the S&P 500 and then dividing that by the variance of the S&P 500. Using a 10-year treasury bond’s return as the risk-free rate of return, 3.298% (“U.S. 10 Year Treasury Note”), a realized market return of 8.210% (“S&P 500 Index”), and a beta of 0.364013, Lockheed Martin’s alpha comes out to -0.7679%. I used the rates of the treasury bond and market return as they were on April 5th. Valuating the stock through the Dividend Discount Model, Lockheed Martin is valued at $437.07.

Read More

Crown Connelly: A Case Study

1491 Words | 6 Pages

With stock parts and value thankfulness, $100 put resources into Crown stock in 1957 would be worth roughly $30,000 in 1989. In the wake of rebuilding the organization in his initial three years, incomes developed at 12.2% for every year while salary developed at 14.0% through the following two decades. return on value arrived at the midpoint of 15.8% for a great part of the 1970s, while Continental Can and American Can felled a long ways behind at 10.3% and 7.1%, individually. Over the period 1968-1978 Crown's aggregate come back to shareholders positioned 114 out of the Fortune 500, well in front of IBM (183) and Xerox (374). In the early 1980s, level industry deals, joined together with an inexorably solid abroad and overcapacity in can producing at home, prompted declining deals incomes at Crown.

Read More

Target Corporation Executive Summary

84 Words | 1 Pages

The Target Corporation is one of the most recognizable brands on the market today and has seen significant growth since 1962, becoming the second largest retailer in the world (Cathcart, 2016). In this paper, I will discuss how the Target Corporation was able to achieve this growth by focusing on its review process by the Capital Expenditure Committee (CEC) and the five projects that are currently under review and rank them from one to five based on which project add the most shareholder value.

Read More

Intertwining World Of Baseball Statistics Essay

546 Words | 3 Pages

Order 3 The Intertwining World Of Baseball Statistics And Picking Stocks There are numerous methods by which one can go about choosing the stocks that will be included in their portfolio. One way is a so-called qualitative approach, which eschews the use of numbers to instead focus on the intangible aspects of the stock. The main problem with utilizing this method is that, inevitably, emotions start to creep in to the investor’s decision-making, clouding judgment in the process. On the other hand, there is the quantitative approach to picking stocks or other financial assets.

Read More

New Deal Dbq

750 Words | 3 Pages

(Banks and the stock

Read More

Calaveras Vineyard Case Study Solution

1061 Words | 5 Pages

This was done with the help of a weighted average unlevered beta, the market risk premium and the risk free rate. The risk free rate of 5.85 % has been acquired from the 30 year T bond rates. The beta was found out using the three other comparable companies and their unleveraged betas. With help of all these values the discount rate of 10.847% was calculated which contributed in discounting the cash flows and obtaining the present value of cash flows. The continuing value for Calaveras has been estimated using the key value driver formula which was found out to be $ 7019.715.

Read More

Comparing Baldwin's Bond Rating Of A, B And B

208 Words | 1 Pages

The decisions made by each company affect their bond rating, which enable investors to evaluate the company’s financial health. These ratings had in impact on both company’s ability to raise capital to invest in R&D, Marketing, Product, etc. During the first year, Baldwin

Read More

Stakeholder Analysis: Lockheed Martin Corporation

1461 Words | 6 Pages

At Lockheed Martin, shareholders represent a significant portion of this demographic. They are anyone who owns Lockheed’s stock and is impacted by its performance; positively when the stock rises and negatively in times of poor performance. Lockheed is concerned about its shareholders because they are entitled to earning profits from its stock as investors and owners of the company. If shareholders become dissatisfied they can change how the company is run; for example, they can replace the existing board of directors through a voting process. Consequently, Lockheed Martin’s decisions are focused on generating profit for their shareholders to increase stock valuation.

Read More

Tootsie Roll Financial Analysis

668 Words | 3 Pages

The Hershey manufacturer and the Tootsie Roll company both are firms in confection enterprise; they specialize in a vast form of chocolate sweet products. I compared each companies for the years 2002, 2003, and 2004 towards every different and in opposition to the enterprise averages so as to make a selection about which organization investors would decide on to put money into. The comparisons I used to make this decision were ratios for liquidity, solvency, and

Read More

TSLA Financial Report

1003 Words | 5 Pages

In a late report, S&P Capital IQ slapped Tesla (NASDAQ:TSLA) with an "offer" rating and a 12-month target cost of $185 while evaluating per share profit as $1.4 for 2016, $3.6 for 2017 and $5.75 for 2018. They recognize that Tesla ought to be assessed as a development organization, at the same time, they refer to execution hazard and rivalry for "treating our eagerness. " In this article, I utilize two diverse valuation strategies to gauge an objective cost for the end of 2016. The two techniques considered here are the income based valuation and the procuring based valuation. Income based valuation is frequently utilized for youthful and quickly developing organizations with a hot item.

Read More

Nasa Trader Project Essay

1515 Words | 7 Pages

Nasa Trader Project Introduction The developers of Nasa Trader Project binary trading system has studied NASA’s every movement and discovered that every new project that is developed by NASA has a huge influence on the stock market largely because of all the companies that they do work with globally. Online trading is closely related to technology advancements and Nasa Trader Project combines sophisticated algorithms coding to send the right signals at the right times for all the right motives. Not all binary systems are as good as the next one and rely on how quickly and accurately the system can analyse process and deliver the relevant information.

Read More

J. P. Morgan & Chase

906 Words | 4 Pages

Volatile markets lead to the instability in the banking industry, and jeopardize the firm?s bottom-line in short-term and long-term outlooks. Likewise, nonperforming loans, such as credit card, auto loans, and other factors may impact severely to J.P Morgan & Chase bottom-line. Weaker mortgage demand may reduce the organization?s earnings, and can harm the future growth. Recessions and unexpected financial crises generate major financial losses, and stock selloffs. Moreover, rigorous regulations impact negatively to J.P Morgan businesses in terms of earnings, expansion, and market anticipations.

Read More

Finance Case Study: The Wilkerson Company

895 Words | 4 Pages

Abstract The Wilkerson Company started facing declination in profits due to the price cutting on their pumps. On the contrary, while the price pumps were decreasing to record numbers, the flow controllers, which controlled the rate and direction flow of chemicals, could increase its prices without significant loss or any competitive response. Wilkerson, his controller, and manufacturing manager developed an activity-based cost model (ABC) to better comprehend the various demands that each product line makes on the organization 's indirect and support resources. Exhibit 1 showed us our operating results, Exhibit 2 showed us our product profitability analysis, Exhibit 3 displayed our product data, and Exhibit 4 was a compilation of the monthly

Read More

More about Stock Picks And Rationale: Skyworks Solutions, And The Southern Company

Related Topics

Open Document