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Three socks to watch january 2018 that is what we were 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 them and whatnot very interesting three companies i’m gonna be sharing with you guys here today i hope you absolutely enjoy this video make sure if you’re not already in my stock market membership group you get in there so your last chance to get in for $29 a month it’s going up to $49 a month on december 31st guys for anybody that joins after that
Point so make sure you get in there you’ve got a ton of access in there to my twelve part stock market options course to knowing what stocks i’m getting in and out of a stocks i’m looking into all that kind of stuff guys you definitely want to be in there is the third link in the description under armours a first stock we’re talking about here today guys this one
Has been an absolute disaster look at this one down nearly 50 percent year-to-date what a disaster of a stock under armour 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 so 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 under armour products across the u.s. in canada is clearly hurting the athletic apparel of retailer the company 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 and outlook for 2018 our initial ins assumptions anticipate continued strength across our international direct-to-consumer business contrast it 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 the the wholesale business declined 13% x is not the absolute disaster now on the flip side directory 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 going to actual under armour stores ordering on under larimer comm and things like
That that’s more direct to consumer stuff rather than this other wholesale business which is they 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’re thinking about wonder arm you’re gonna 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 pump store sales in the last quarter we’re 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 arm under armour that gives
A significant amount of its revenues and profits from a company like dick’s when you’re when you’re comp store sales go negative that means everything in that store is probably selling less and less okay so that’s very bad sign last year sports authority file for bankruptcy okay that was another one of under armour’s 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 they’re the same store steals were actually negative guys it was actually negative so it’s not like things have
Picked up so it was so strong a dick so this obviously hurts under armour big-time now if we look at what’s expected for this upcoming quarter not much is expected analysts are expecting basically a break-even quarter as far as earnings go year ago they actually have twenty three cent profit then we look at the revenue side analysts are expecting only one point
Four percent sales growth guys that’s like nothing there with under armour so this is a very interesting company because it’s kind of at 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 then they’re gonna 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 start moving as much merchandise as they were before and for that reason that’s her under armor in a big way so this will be a
Very interesting quarter to kind of look at the numbers and see hmm what’s going on with this one are they are they gonna be on the comeback or are they just gonna 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 now this is a super popular stock that i heard the ever talk about on this
Channel i hardly ever talk about this one but it’s such a popular stock we see here today up 52 percent it’s had 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 added 5.3 million subscribers during the third
Third quarter pest 5.3 million signed up for netflix in a three-month span that’s ridiculous eating analyst estimates revenue of two point nine eight billion versus two point nine seven billion was expected eeps can actually came in much stronger than expected 37 cents versus 32 cents was expected and obviously the subscriber number there 5.3 million gained versus
The analysts thought somewhere around 4.5 million there look at this here and it’s willing to spend money to continue that trajectory with a new content budget of between 7 billion and 8 billion dollars for next year figure up from seven billion dollars guys this is absolutely amazing i mean this is so much money and we’re gonna kind of get into some things here in
Just a second but that is so much money to just be spending on new content next year 7 at 8 billion dollars 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 early that’s crazy netflix said it added 850 million subscriber than 850,000 subscribers in the u.s. ahead
Of the eight hundred and ten million that the street was expecting okay on real numbers there guys now so we look at obviously the show that they are like advertising they crazy which is this new one is a show called bright okay it’s got will smith as a star of it probably one of the highest paid actors in the in literally the world and you know they got a full
Soundtrack around this if you’re featuring tons of big name artists i noticed imagine how much money they’re spending just on this show name break it’ll be very interesting to see what type of results they get from this and if this is gonna 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 shoulder showed not just you know at all special effects and then you know soundtracks and stuff they’re spending a massive amount of money on advertising this new show called bright i’ve never seen i’ve never seen netflix advertised a show so much like i’m watching nfl games and college football game and i’m seeing their the commercials and those
Spots are very expensive to do and netflix is doing these in mass scale i’ve seen it on youtube everywhere i’ve seen the ads for this new will smith show called bright sugar don fresh prince of bel air part 2 where he’s like the father that would have been much cooler netflix here we go so look at this here a year ago eps they did $0.15 analysts are expecting 42
Cents ok so over like a triple up basically in the eps 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 around a thirty two point five percent jump in revenue there guys so it’s gonna be very interesting here with netflix to see or can they keep up this type of growth because
There’s at a certain point you would think that numbers would start to get too too hard to keep eating 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 stock number three here caterpillar this one’s up 64% year 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% 2016
It came and bounced back big time up 36% this past year of 64% three-year change up 61% this chart reminds me so much of wynn resorts obviously is in my biggest position because in 2015 it was even more of a disaster in caterpillar down 52% on the 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 breed 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 percent plus this past year it’s crazy just how much those charts remind me of each other caterpillar is so this is last time they reported numbers were in october
They should be reporting new numbers here in january caterpillar on tuesday blew past wall street’s profit and revenue estimates unsurprisingly strong demand for its construction equipment in north america and robust sales in china pushing and pushing a shares up to 7% in early trading here the company also bases full-year forecasts 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 bike coin miners and lik coin miners that are using caterpillar equipment to mine some of these coins and what now i’m just messing with you guys but that’s still a crazy impressive growth there in the asia-pacific region caterpillars third biggest
Sales jump 57 percent guys two one points to nine billion boosted by demand from china these these numbers aren’t saying 57 percent sales jump in the asian pacific region so if we look at what analysts are expecting here and also expecting earnings of around $1 76 year ago they were they did about 83 cents less basically about a double up there in eps growth so
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 first upcoming quarter so caterpillar is a 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 macroeconomics
And those two markets are very strong that is like caterpillars business guy caterpillars business is so dedicated to the us market and so dedicated to china i mean i don’t know the exact breakout and i don’t know if they break out exactly how much revenue comes from just you know north america and just comes from just china alone but i can almost guarantee you
Is probably around 80 plus percent guys they’re heavily reliant on those two markets and a big way guys so be very interesting to see what happens there i hope you guys enjoy this day three stocks to watch in the month of january 2018 hope you enjoyed here thumbs up if you did thank you for watching guys and have a great day
Transcribed from video
3 Stocks To Watch! January 2018 By Financial Education
