1 Strong Trending Financial Stock And 1 To Avoid

Posted on by The MarketClub Team

With a slower increase in supplier and consumer prices signaling an easing of inflationary pressures, hopes of less aggressive interest rate hikes by the Federal Reserve are also rising.

While a broad economic recovery bodes well for the financial services sector, given rising borrowing costs and credit risks, traders should be judicious in picking stocks from this space.

How much do you expect the Fed to hike interest rates in December?

View Results

Loading ... Loading ...

Given its strong price trends, it could be wise to buy NerdWallet, Inc. (NRDS) to capitalize on the industry tailwinds. On the other hand, Ally Financial Inc. (ALLY) might be best avoided now, given its downtrend.

NerdWallet, Inc. (NRDS)

NRDS operates as a personal finance company. Through its platform, it delivers a range of financial products, including credit cards, mortgages, insurance, SMB products, personal loans, banking, investing, and student loans, to empower consumers and small and medium-sized businesses (SMBs) to make informed financial decisions at the right time.

For the fiscal 2022 third quarter, which ended September 30, 2022, NRDS’s revenue increased 45% year-over-year to $142.6 million, driven primarily by success across credit cards, banking, personal loans, and SMB verticals. During the same period, the company’s net income came in at $0.7 million or $0.01 per share, compared to a net loss of $7.8 million or $0.16 per share in the previous-year quarter.

Analysts expect NRDS to report revenue of $139.59 million for the fourth quarter of the current fiscal, ending December 2022, registering a 40.3% year-over-year increase. During the same period, the company’s EPS is expected to come in at $0.08, compared to a loss of $0.13 per share in the year-ago period.

Owing to its strong performance and solid growth prospects, NRDS is currently commanding a premium valuation compared to its peers. In terms of forward P/E, NRDS is currently trading at 67.53x compared to the industry average of 10.39x. Also, its forward EV/EBITDA multiple of 15.43 compares to the industry average of 12.28. Continue reading "1 Strong Trending Financial Stock And 1 To Avoid" →

Should You Buy This Restaurant Stock Right Now?

Posted on by The MarketClub Team

Leading restaurant chain operator BJ’s Restaurants, Inc. (BJRI) operates more than 213 restaurants in 29 states.

The company’s impressive third-quarter sales reflect the progress of its sales-building initiatives and its guests’ strong affinity for the brand.

BJRI’s comparable restaurant sales increased by 8.9% and 8.2% compared to the third quarters of 2021 and 2019, respectively. While restaurant-level operating margins were impacted by inflationary pressures, they benefited from labor management efficiencies and early successes of its margin improvement initiative.

“Our sales performance has continued into October with period-to-date comparable restaurant sales increasing approximately 8% and 6% compared to the same periods in 2021 and 2019, respectively,” said Greg Levin, BJRI’s CEO and President.

Moreover, BJRI’s operating stability, sales building, and margin improvement positioned it to opportunistically return capital to shareholders through share repurchases in the third quarter. During the third quarter, BJRI repurchased and retired nearly 91,000 shares of its common stock for approximately $2.4 million. The company has $22.1 million available under its currently authorized share repurchase program.

Furthermore, BJRI’s long-term target remains to operate at least 425 domestic locations. The company recently announced opening its restaurant in North Las Vegas, Nevada. This restaurant is BJRI’s fifth restaurant in the Las Vegas area and its seventh restaurant in the state of Nevada.

“We are on track to open our sixth and last restaurant of the year next month in Phoenix, Arizona,” said Greg Levin. Additionally, BJRI’s restaurant model initiative continues to deliver strong sales growth and financial returns by adding seating capacity and enhancing its bar statement. The company plans to increase its remodel initiative to more restaurants in 2023.

Shares of BJRI have gained 39.9% over the past six months. The stock is currently trading above its 50-day and 200-day moving averages of $28.25 and $26.71, respectively.

BJRI Chart

Source: MarketClub

Continue reading "Should You Buy This Restaurant Stock Right Now?" →

Happy Thanksgiving From INO.com

Posted on by The INO.com Team

The team at INO.com has so much to be thankful for this year.

Every day we get to do what we love, help members like you, make better trading decisions. We are grateful for your support and the trust you put in us.

We sincerely hope that you too find many things to be thankful for this holiday season.

Our office will be closed Thursday and Friday to celebrate Thanksgiving with our families. The U.S. markets will also be closed Thursday and will close at 1 PM on Friday.

If you need assistance, please email

su*****@in*.com











 and we will connect with you as soon as possible.

With sincere thanks,
The INO.com Team

Gold Market Sentiment Adjusts To Recent Fed Comments

Posted on by The INO.com Team

The Merriam-Webster dictionary defines sentiment as, “an attitude, thought, or judgment prompted by feeling: predilection.: a specific view or notion: opinion.: emotion.: refined feeling: delicate sensibility especially as expressed in a work of art.: emotional idealism.”

As it pertains to the financial markets, market sentiment is the view or attitude that creates our opinion as to whether an asset class is overvalued or undervalued. It shapes and changes the value of a stock or commodity’s price.

Market sentiment is overly sensitive to statements and comments made by Federal Reserve officials because those individuals have the power and influence to change monetary policy.

There is a dramatic difference between the perception of upcoming Federal Reserve monetary policy changes and the actions of Federal Reserve officials.

The Federal Reserve raised rates at every FOMC meeting this year except in January, from March through November, a total of six rate hikes. Over the last four FOMC meetings (June, July, September, and November) they raised rates by 75 basis points.

The aggressive nature of the Federal Reserve’s monetary policy moved gold dramatically lower from March up until the beginning of November. Gold traded to its highest value this year of $2078 in March. By the beginning of November, gold prices had dropped to approximately $1621, resulting in a price decline of 21.99%.

During the first week of November, market sentiment shifted because inflation rates had declined fractionally, and investors viewed this fractional drop as a signal that the Federal Reserve would begin to loosen its aggressive monetary policy. This caused gold to rise dramatically from $1621 to an intraday high of $1792 by Tuesday, November 15. Continue reading "Gold Market Sentiment Adjusts To Recent Fed Comments" →

Two Tasty Stocks With Current Uptrends

Posted on by The MarketClub Team

The consumer price index (CPI) increased 7.7% year-over-year in October, lower than expectations. This indicates that the inflationary pressures have started to cool.

Thanks to the slightly cooled inflation, the S&P 500 has gained 7.7% over the past month, while the Dow Jones and Nasdaq Composite climbed 10.6% and 5%, respectively.

Furthermore, Fed Vice Chair Lael Brainard signaled that the Fed would likely slow the pace of its interest rate hikes.

What percentage do you expect the Fed to raise interest rates by in December?

View Results

Loading ... Loading ...

The U.S. Census Bureau reported that the overall retail sales in October grew 1.3% from September and 8.3% year-over-year.

“October’s performance is a strong foothold as we go into the holiday season,” said NRF Chief Economist Jack Kleinhenz. Thus, holiday spending is expected to remain healthy despite the recent inflationary pressures.

According to the latest forecast by the National Retail Federation, holiday retail sales during November and December will advance between 6% and 8% over the last year to $942.60-$960.40 billion.

Historical Holiday Sales and 2022 Forecast

Source: National Retail Federation

Continue reading "Two Tasty Stocks With Current Uptrends" →