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727200.0
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2013-03-05 00:00:00 UTC
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Good News: Emerging Markets ETFs Are Cheap
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DEM
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https://www.nasdaq.com/articles/good-news-emerging-markets-etfs-are-cheap-2013-03-05
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nan
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nan
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Well-documented have been the struggles of some emerging markets ETFs to start 2013. Among diversified funds, the two largest emerging markets ETFs, the Vanguard FTSE Emerging Markets ETF (NYSE: VWO ) and the iShares MSCI Emerging Markets Index Fund (NYSE: EEM ), are each off nearly two percent year-to-date.
At the country-specific level, fears of tighter monetary policy and a property bubble have hampered China ETFs. Slowing economic growth has plagued Brazil while India ETFs have have tumbled amid concerns the country will lose its investment-grade credit rating .
All of that is to say 2013, to this point, has been a challenging year for emerging markets bulls. If there is good news it is this: The aforementioned declines mean some emerging markets ETFs are now sporting attractive valuations.
Newly released research from WisdomTree (NASDAQ: WETF ) shows that while valuations may be compelling in the emerging markets universe, investors should also pay attention to trailing 12-month dividend yield.
WisdomTree Research Director Jeremy Schwartz split the 24-year history of the MSCI Emerging Markets Index, the index EEM tracks, into high dividend years and low dividend years. High dividend years are those that start with a trailing 12-month dividend yield above the MSCI Emerging Markets Index median of 2.25 percent, according to the research note .
"Higher trailing 12-month dividend yields indicate that a greater amount of aggregate dividends has been generated over the past 12 months relative to the current share price, while lower trailing 12-month dividend yields indicate the opposite," said Schwartz.
Schwartz notes that following high dividend years, the MSCI Emerging Markets Index returned an average of 33.03 percent compared to its average 24-year return of 17.47 percent.
EEM currently has a P/E ratio of 18.18 and a 30-day SEC yield of 2.07 percent, according to iShares data . Investors looking for a more deeply discounted valuation with a higher yield do have options among diversified emerging markets ETFs, including the WisdomTree Emerging Markets Equity Income Fund (NYSE: DEM ).
DEM, which has almost $5.4 billion in assets under management, tracks the WisdomTree Emerging Markets Equity Income Index. That index had a P/E ratio of just 10.8 at the end of last year. Additionally, that index has been about 500 basis less volatile than its MSCI equivalent since inception, according to WisdomTree data .
DEM tracks the performance of the highest yielding stocks selected from its index, usually those in the top 30 percent by yield. That leads to some different country exposures than what EEM or VWO investors may be accustomed to. While DEM is heavy on the usual emerging markets suspects such as China, Taiwan and Brazil, the ETF also features an almost 13 percent allocation to Russia. That higher exposure to Russia has recently sparked some concern that DEM may become more volatile than its rivals.
However, Russian firms are highly profitable relative to other developing markets and the government there has moved to force more of the state-owned companies to pay higher dividends. Not to mention, Russian equities have a history of trading at a discount to the broader emerging markets universe . The iShares MSCI Russia Capped Index Fund (NYSE: ERUS ) currently has a P/E of just over 10 .
Bottom line: If past performance is any indicator, investors will want some emerging markets exposure coming off a high dividend year, as Schwartz notes.
"Four of the five best yearly return periods for the MSCI Emerging Markets Index followed trailing 12-month dividend yields that ranked among the five highest of all 24 calendar year returns. Notably, at the 2008 year-end, the dividend yield on the MSCI Emerging Markets Index was 4.75% (the highest value) and the 12-month forward return of the index was 79.02% (the highest 12-month forward return)," he said.
For more on ETFs, click here .
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Profit with More New & Research . Gain access to a streaming platform with all the information you need to invest better today. Click here to start your 14 Day Trial of Benzinga Professional
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Investors looking for a more deeply discounted valuation with a higher yield do have options among diversified emerging markets ETFs, including the WisdomTree Emerging Markets Equity Income Fund (NYSE: DEM ). DEM, which has almost $5.4 billion in assets under management, tracks the WisdomTree Emerging Markets Equity Income Index. DEM tracks the performance of the highest yielding stocks selected from its index, usually those in the top 30 percent by yield.
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Investors looking for a more deeply discounted valuation with a higher yield do have options among diversified emerging markets ETFs, including the WisdomTree Emerging Markets Equity Income Fund (NYSE: DEM ). DEM, which has almost $5.4 billion in assets under management, tracks the WisdomTree Emerging Markets Equity Income Index. DEM tracks the performance of the highest yielding stocks selected from its index, usually those in the top 30 percent by yield.
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Investors looking for a more deeply discounted valuation with a higher yield do have options among diversified emerging markets ETFs, including the WisdomTree Emerging Markets Equity Income Fund (NYSE: DEM ). DEM, which has almost $5.4 billion in assets under management, tracks the WisdomTree Emerging Markets Equity Income Index. DEM tracks the performance of the highest yielding stocks selected from its index, usually those in the top 30 percent by yield.
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Investors looking for a more deeply discounted valuation with a higher yield do have options among diversified emerging markets ETFs, including the WisdomTree Emerging Markets Equity Income Fund (NYSE: DEM ). DEM, which has almost $5.4 billion in assets under management, tracks the WisdomTree Emerging Markets Equity Income Index. DEM tracks the performance of the highest yielding stocks selected from its index, usually those in the top 30 percent by yield.
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8249e455-7ce2-40de-83d3-c9341c1f0f14
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727201.0
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2013-02-04 00:00:00 UTC
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S&P Weighs Merits of Various ETF Compositions
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DEM
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https://www.nasdaq.com/articles/sp-weighs-merits-various-etf-compositions-2013-02-04
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nan
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nan
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As the exchange-traded products industry, just days removed from its 20th anniversary in the U.S., has continued to evolve so has the debate surrounding how ETFs are constructed. Cap-weighting, the methodology that is most pervasive across equity-based funds, is what many investors are most familiar.
That concept is simple as it usually involves ranking an ETF's holdings by market value with the largest company in the fund garnering the biggest weight. For example, Exxon Mobil (NYSE: XOM ) is the largest U.S. oil company. Therefore it commands the largest weight in ETFs such as the Energy Select SPDR (NYSE: XLE ) and the Vanguard Energy ETF (NYSE: VDE ).
The cap-weighting approach has served issuers well, allowing them to offer low-cost broad market and sector funds to investors. Using VDE and XLE as the examples again, those are the two lowest cost energy sector ETFs on the market today.
However, as Apple's (NASDAQ: AAPL ) recent tribulations highlighted, there are alternatives to traditional cap-weighting that can also benefit investors .
Some ETF sponsors have taken to introducing equal-weight products. Other issuers sponsor funds that screen for stocks using growth and value factors while some sponsors use dividend growth or yield as ways of building income funds.
In a new research note, S&P Capital IQ examined several ETFs employing various methodologies while noting various approaches do have merit, but "investors and advisors need to understand the structure of the ETF they are considering, regardless of its role in a broader portfolio."
Among the ETFs discussed in the note are two of WisdomTree's (NASDAQ: WETF ) most popular products, the WisdomTree Emerging Markets Equity Income Fund (NYSE: DEM ) and the WisdomTree Japan Hedged Equity Fund (NYSE: DXJ ). DEM, which has seen its assets under management tally, jump to over $5.3 billion from $3 billion in about a year, competes with the popular Vanguard FTSE Emerging Markets ETF (NYSE: VWO ) and the iShares MSCI Emerging Markets Index Fund (NYSE: EEM ).
S&P Capital IQ notes DEM has an expense ratio of 0.63 percent, well above the 0.2 percent charged by VWO, and that partially leads to S&P's Marketweight rating on DEM. However, DEM's results are hard to argue with. The fund, which tracks an index that is re-weighted annually based on paid dividends, has surged almost 18 percent in the past five years and currently sports a 30-day SEC yield of 3.91 percent, according to WisdomTree data .
S&P has an Overweight rating on DXJ, which has seen its AUM total jump to over $2.6 billion from $516 million in early December . DXJ eschews traditional cap-weighting by focusing on two critical factors: Offering investors a hedge luctuations between the value of the U.S. dollar and the Japanese yen and building a portfolio of companies that derive the bulk of their revenue from outside of Japan.
The latter factor increases DXJ's leverage to a weak yen and the recent results have been stellar. DXJ is up 25 percent in the past 90 days while the cap-weighted iShares MSCI Japan Index Fund (NYSE: EWJ ) is up just 9.6 percent.
S&P Capital IQ also has overweight ratings on the PowerShares FTSE RAFI US 1000 Portfolio (NYSE: PRF ) and the PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio (NYSE: PXF ). Both ETFs track indexes developed by Research Affiliates and are based on the following fundamental factors: Book value, cash flow, sales and dividends.
That methodology has worked over time. As of the end of 2012, $10,000 in invested in PRF at the end of 2005 would have been worth over $14,300, far outpacing the $13,265 offered by the S&P 500 over the same time, according to PowerShares data .
PRF, which charges 0.39 percent per year, is home to over $1.58 billion in AUM and 991 stocks. Top holdings currently include Bank of America (NYSE: BAC ), General Electric (NYSE: GE ) and Citigroup (NYSE: C ).
Regarding PXF, the fund is up about 10 percent in the past three months. The U.K., Japan and France combine for over 46 percent of the $502.8 million ETF's weight. PXF's 30-day SEC yield is a decent 3.74 percent. Top holdings among the 1,016 featured in the fund include HSBC (NYSE: HBC ), BP (NYSE: BP ) and Total (NYSE: TOT ).
For more on ETFs, click here .
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Gain access to more investing ideas, tools & education. Get Started on Marketfy, the first ever curated & verified Marketplace for everything trading.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Among the ETFs discussed in the note are two of WisdomTree's (NASDAQ: WETF ) most popular products, the WisdomTree Emerging Markets Equity Income Fund (NYSE: DEM ) and the WisdomTree Japan Hedged Equity Fund (NYSE: DXJ ). DEM, which has seen its assets under management tally, jump to over $5.3 billion from $3 billion in about a year, competes with the popular Vanguard FTSE Emerging Markets ETF (NYSE: VWO ) and the iShares MSCI Emerging Markets Index Fund (NYSE: EEM ). S&P Capital IQ notes DEM has an expense ratio of 0.63 percent, well above the 0.2 percent charged by VWO, and that partially leads to S&P's Marketweight rating on DEM.
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Among the ETFs discussed in the note are two of WisdomTree's (NASDAQ: WETF ) most popular products, the WisdomTree Emerging Markets Equity Income Fund (NYSE: DEM ) and the WisdomTree Japan Hedged Equity Fund (NYSE: DXJ ). DEM, which has seen its assets under management tally, jump to over $5.3 billion from $3 billion in about a year, competes with the popular Vanguard FTSE Emerging Markets ETF (NYSE: VWO ) and the iShares MSCI Emerging Markets Index Fund (NYSE: EEM ). S&P Capital IQ notes DEM has an expense ratio of 0.63 percent, well above the 0.2 percent charged by VWO, and that partially leads to S&P's Marketweight rating on DEM.
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Among the ETFs discussed in the note are two of WisdomTree's (NASDAQ: WETF ) most popular products, the WisdomTree Emerging Markets Equity Income Fund (NYSE: DEM ) and the WisdomTree Japan Hedged Equity Fund (NYSE: DXJ ). DEM, which has seen its assets under management tally, jump to over $5.3 billion from $3 billion in about a year, competes with the popular Vanguard FTSE Emerging Markets ETF (NYSE: VWO ) and the iShares MSCI Emerging Markets Index Fund (NYSE: EEM ). S&P Capital IQ notes DEM has an expense ratio of 0.63 percent, well above the 0.2 percent charged by VWO, and that partially leads to S&P's Marketweight rating on DEM.
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Among the ETFs discussed in the note are two of WisdomTree's (NASDAQ: WETF ) most popular products, the WisdomTree Emerging Markets Equity Income Fund (NYSE: DEM ) and the WisdomTree Japan Hedged Equity Fund (NYSE: DXJ ). DEM, which has seen its assets under management tally, jump to over $5.3 billion from $3 billion in about a year, competes with the popular Vanguard FTSE Emerging Markets ETF (NYSE: VWO ) and the iShares MSCI Emerging Markets Index Fund (NYSE: EEM ). S&P Capital IQ notes DEM has an expense ratio of 0.63 percent, well above the 0.2 percent charged by VWO, and that partially leads to S&P's Marketweight rating on DEM.
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8ad06b67-5a8b-4e3b-add7-d3a66f39e765
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727202.0
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2013-02-01 00:00:00 UTC
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Bull of the Day: WisdomTree Investments (WETF) - Bull of the Day
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DEM
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https://www.nasdaq.com/articles/bull-day-wisdomtree-investments-wetf-bull-day-2013-02-01
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nan
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nan
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This investment company could do well thanks to a strong earnings picture and impressive growth in the ETF space.
WISDMTR-EM EQ I (DEM): ETF Research Reports
WISDMTR-J HEF (DXJ): ETF Research Reports
WISDOMTREE INV (WETF): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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WISDMTR-EM EQ I (DEM): ETF Research Reports WISDMTR-J HEF (DXJ): ETF Research Reports WISDOMTREE INV (WETF): Free Stock Analysis Report To read this article on Zacks.com click here. This investment company could do well thanks to a strong earnings picture and impressive growth in the ETF space. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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WISDMTR-EM EQ I (DEM): ETF Research Reports WISDMTR-J HEF (DXJ): ETF Research Reports WISDOMTREE INV (WETF): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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WISDMTR-EM EQ I (DEM): ETF Research Reports WISDMTR-J HEF (DXJ): ETF Research Reports WISDOMTREE INV (WETF): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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WISDMTR-EM EQ I (DEM): ETF Research Reports WISDMTR-J HEF (DXJ): ETF Research Reports WISDOMTREE INV (WETF): Free Stock Analysis Report To read this article on Zacks.com click here. This investment company could do well thanks to a strong earnings picture and impressive growth in the ETF space. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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f984e9a8-7045-4bc0-ad48-855ed4529196
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727203.0
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2013-01-18 00:00:00 UTC
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London Asset Manager Takes Diverse Approach to EM ETFs
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DEM
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https://www.nasdaq.com/articles/london-asset-manager-takes-diverse-approach-em-etfs-2013-01-18
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nan
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nan
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In the ever-expanding world of emerging markets ETFs , some diversified funds still sit atop this corner of the exchange-traded products universe. For example, the Vanguard FTSE Emerging Markets Index (NYSE: VWO ) and the iShares MSCI Emerging Markets Index Fund (NYSE: EEM ) remain favorites of investors - both professional and retail.
Some investors choose to use an ETF such as EEM and VWO as their sole avenue for exposure to the developing world, but there are plenty of other worthy options when it comes to multi-country emerging markets funds.
In fact, one London-based asset manager is proving it is possible to use the likes of EEM, VWO and related fare simultaneously, in one portfolio, to deliver impressive risk-adjusted returns. Generation Asset Management, a unit of Canadian hedge fund giant Arrow Capital Management, uses a unique, systematic approach to investing in the developing world with the objective being superior risk-adjusted returns in what is often viewed as a volatile asset class..
Generation Asset's model portfolio rebalances on a weekly basis and is 50 percent benchmarked to the MSCI Emerging Markets Index and 50 percent to JP Morgan EMBI Global Core Index. That means the model features both equity and bond ETFs.
In addition to VWO, which currently represents about 25 percent of the model portfolio's equity-based weight, Generation Asset is using other, less heralded emerging markets ETFs such as the EGShares Emerging Markets Consumer ETF (NYSE: ECON ). ECON is heavy on local brands that emerging markets consumers are most familiar with, not multinational brands that only derive a sliver of their total sales from the developing world.
"We strongly believe in the EM consumer story," said Generation Asset analyst Bartlomiej Fraszczyk. Emerging market consumers do most of their business with familiar local or regional brands, and tend to have less affinity for developed world brands. We believe domestic demand will be the main driver of EM economies growth."
Fraszczyk said Generation Asset views ECON's country weights in a favorable light. South Africa, Mexico and Brazil combine for over 54 percent of the ETF's weight. Malaysia receives an allocation of 6.25 percent.
"Our observation is that over the period of the last three years South Africa, Mexico and Malaysia have consistently outperformed the MSCI EM Index," noted Fraszczyk. "We also like Brazil, India and Chile as they display unique consumer growth themes. The point is, the ECON provides us with a perfect country allocation split."
Betting on Dividends, Damping Volatility A cornerstone of Generation Asset's rules-based model is capturing dividends while mitigating volatility. The dividend portion of the firm's model portfolio centers around the rapidly growing WisdomTree Emerging Markets Income Fund (NYSE:DEM ) and DEM's small-cap equivalent, the WisdomTree Emerging Markets SmallCap Dividend Fund (NYSE: DGS ).
"We like the fact that these ETFs are sizeable in terms of assets and offer good liquidity," said Fraszczyk. "We value the WisdomTree research development work and new products creation innovation. We have seen those two ETFs being successful so far and we believe the dividend space will continue to grow in 2013."
DGS currently sports a 30-day SEC yield of 4.17 percent. Taiwan, Thailand and South Korea combine for almost 44 percent of that fund's country weight. DEM has a 30-day SEC yield of 3.87 percent. Taiwan, China, Russia and Brazil loom large in DEM, combing for over 51 percent of that ETF's weight.
When it comes to damping out emerging markets volatility, a theme that soared to the front of the ETF lexicon in 2012 , Generation Asset prefers the $915.6 million iShares MSCI Emerging Markets Minimum Volatility Index Fund (NYSE: EEMV ).
With lower volatility relative to the MSCI Emerging Markets Index, EEMV has easily outpaced EEM and VWO over the past year. Fraszczyk does not foresee ETFs such as EEMV overshadowing flagship funds such as EEM and VWO, but he likes EEMV's utility in limiting the model's downside equity risk while delivering alpha.
EEMV's ability to skirt volatility comes almost as much by way of what countries are excluded from the ETF as what markets the fund does offer exposure. Prominent allocations to Taiwan, China and South Korea are arguably not surprising. However, the fund features no exposure to India and Russia represents less than one percent of EEMV's weight.
Another Prominent Theme Due to reduced correlations to U.S. equities, improving credit ratings and sturdy government balance sheets in many developing markets, emerging markets bond ETFs soared last year . Both in terms of assets gained and delivered returns.
Generation Asset's emerging markets fixed income holdings are the iShares J.P. Morgan USD Emerging Markets Bond Fund (NYSE: EMB ) and the PowerShares Emerging Markets Sovereign Debt Portfolio (NYSE: PCY ). Fraszczyk sees both EMB and PCY as currently being in strong uptrends. It is hard to argue with that assessment as EMB is up 17.1 percent in the past year while PCY has surged almost 22 percent.
Investors continue to pour cash into these products. In just over two months, EMB has seen its assets under management grow to $7 billion from $6.2 billion. PCY had $2.5 billion in AUM in early November, but that number was almost $3.1 billion as of January 18.
On the surface, it may appear that owning both EMB and PCY is duplicative, but these funds have noticeable differences at the country level. For example, EMB's top-five country weights are Brazil, Russia, Turkey Mexico and the Philippines. PCY's are Turkey, Croatia, Romania, Hungary and Lithuania.
Generation Asset's current preference is for dollar-denominated emerging markets debt. However, the firm's model, which can be transposed across myriad regions with sufficient liquidity, can be custom-tailored to give clients exposure to local currency emerging markets bonds.
For more on ETFs, click here .
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Profit with More New & Research . Gain access to a streaming platform with all the information you need to invest better today. Click here to start your 14 Day Trial of Benzinga Professional
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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We believe domestic demand will be the main driver of EM economies growth." The dividend portion of the firm's model portfolio centers around the rapidly growing WisdomTree Emerging Markets Income Fund (NYSE:DEM ) and DEM's small-cap equivalent, the WisdomTree Emerging Markets SmallCap Dividend Fund (NYSE: DGS ). DEM has a 30-day SEC yield of 3.87 percent.
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The dividend portion of the firm's model portfolio centers around the rapidly growing WisdomTree Emerging Markets Income Fund (NYSE:DEM ) and DEM's small-cap equivalent, the WisdomTree Emerging Markets SmallCap Dividend Fund (NYSE: DGS ). We believe domestic demand will be the main driver of EM economies growth." DEM has a 30-day SEC yield of 3.87 percent.
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We believe domestic demand will be the main driver of EM economies growth." The dividend portion of the firm's model portfolio centers around the rapidly growing WisdomTree Emerging Markets Income Fund (NYSE:DEM ) and DEM's small-cap equivalent, the WisdomTree Emerging Markets SmallCap Dividend Fund (NYSE: DGS ). DEM has a 30-day SEC yield of 3.87 percent.
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The dividend portion of the firm's model portfolio centers around the rapidly growing WisdomTree Emerging Markets Income Fund (NYSE:DEM ) and DEM's small-cap equivalent, the WisdomTree Emerging Markets SmallCap Dividend Fund (NYSE: DGS ). We believe domestic demand will be the main driver of EM economies growth." DEM has a 30-day SEC yield of 3.87 percent.
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85ef1de6-2942-4811-bd57-9183c661fda9
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727204.0
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2013-01-11 00:00:00 UTC
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Some EM Sector ETFs Could Soar in 2013
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DEM
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https://www.nasdaq.com/articles/some-em-sector-etfs-could-soar-2013-2013-01-11
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nan
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nan
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Well-documented was the rise of diversified emerging markets ETFs in 2012. Multi-country funds such as the iShares MSCI Emerging Markets Index Fund (NYSE: EEM ) and the WisdomTree Emerging Markets Equity Income Fund (NYSE: DEM ) delivered solid returns while attracting a steady stream of new assets from investors.
Country-specific funds such as the those tracking the Philippines and Turkey got in on the act as well, delivering jaw-dropping returns.
Just a few trading days into 2013, emerging markets ETFs are extending their 2012 gains as EEM and DEM are in the green and some country funds such as the Market Vectors Vietnam ETF (NYSE:VNM ) have already set a torrid pace.
Amidst all the ebullience, emerging markets sector ETFs can go overlooked. Ignoring these sector funds in 2013 could prove to be a mistake because some have already outperformed traditional diversified and country-specific developing markets ETFs. With that in mind, consider the following ETFs as the among the best bets at sector level in the developing world this year.
EGShares Emerging Markets Domestic Demand ETF (NYSE: EMDD ) The EGShares Emerging Markets Domestic Demand ETF is more of a thematic concept than a sector-specific play. That theme, as EMDD's name implies, is a goal of a plethora emerging markets, both large and small: Increased domestic consumption.
While rapidly rising export numbers can be seductive, a heavy dependence on exports exposes any country to the economic woes of its trading partners. Just ask Australia, Brazil and on and on. Is it possible for a developing economy to be focused on domestic consumption while growing in size? The answer is yes. Just look at Indonesia, Southeast Asia's largest economy, where domestic consumption represents 60 percent of GDP .
Regarding EMDD, the ETF is one way of avoiding a misguided approach to tapping into the emerging markets consumer theme. That being the flawed thinking that Western multinationals are the way to play rising middle classes in the developing world. In reality, many emerging markets consumers prefer the brands they have known their whole lives.
At the sector level, EMDD is fairly conservative as the fund is heavy on food and beverage and telecommunications names. EMDD does offer a direct avenue to the expected vibrancy of Asia's local demand story over the coming years. India and China combine for over 30 percent of the fund's weight. EMDD also features smaller allocations to Indonesia, Malaysia, Thailand and the Philippines. EMDD has returned 12.3 percent over the past six months.
Global X China Consumer ETF (NYSE: CHIQ ) In early October 2012 , the Global X China Consumer ETF was identified as one China fund beyond the usual suspects that could benefit from a rebounding Chinese economy and government stimulus efforts. Since then, CHIQ has jumped 13.6 percent.
With retail and food names combing for over 41 percent of CHIQ's weight, the ETF is heavily exposed to Chinese consumers' everyday needs. Being exposed to the Chinese consumer at all is not such a bad thing, particularly for patient investors.
A study by Boston Consulting Group shows consumer spending in China and India is expected to reach a combined $10 trillion per year by 2020. In the years leading up to 2020, .
CHIQ already has some believers. The ETF had about $111 million in assets under management in October 2012. That number is now almost $198 million, according to Global X data .
iShares S&P Emerging Markets Infrastructure Index Fund (NYSE: EMIF ) Investing in the emerging markets infrastructure theme can be a frustrating endeavor. Back in 2011, Bank of America Merrill Lynch forecast that select emerging markets will need to spend about $6 trillion on infrastructure over just the next three years.
Not to mention, many emerging markets such as . However, those fundamental factors have not always lead to stellar returns for EM infrastructure funds.
With the iShares S&P Emerging Markets Infrastructure Index Fund, it pays to keep in mind that Brazil and China combine for almost 58 percent of the fund's weight. The latter has a reputation for not being shy about using infrastructure spending as domestic economic stimulus, a trend that should it continue, will benefit EMIF.
For its part, Brazil announced a $66 billion stimulus program in August, but immediately following that announcement, the EGShares Brazil Infrastructure ETF (NYSE: BRXX ) tumbled. Whether or not ETFs such as BRXX and EMIF benefit from Brazilian infrastructure projects this year remains to be seen. This much is clear, however. The funds' constituents will be busy. On its own, the state of Rio de Janeiro needs $13.5 billion in new infrastructure and upgrades in advance of the 2014 World Cup.
EGShares Emerging Markets Metals & Mining ETF (NYSE: EMT ) The EGShares Emerging Markets Metals & Mining ETF has a nifty feature to it often goes ignored.
"EMT is designed to provide non-U.S. dollar, equity-based commodity exposure to the largest miners of copper, nickel, platinum, palladium, iron ore, and coal in the emerging markets. With exposure to emerging market currencies such as the Brazilian real, South African rand, and Russian ruble, EMT can benefit from currency appreciation versus the U.S. dollar," according to EGShares .
In other words, EMT can act as a dollar hedge within portfolios. Still, EMT is another case of investors needing to know exactly what they are buying before jumping. Four countries - South Africa, Brazil, China and Russia - combine for about two-thirds of the fund's country weight. Additionally, Brazil's Vale (NYSE: VALE ) is the fund's top holding at almost 10.4 percent.
That means the recent rebound in iron ore prices, due in part to a spate of positive Chinese economic news, needs to continue to help EMT move higher. Add to that, EMT does feature some exposure to gold miners an often .
Bottom line: EMT has a lot of moving parts to its upside case in 2013, but the ETF has gained 9.3 percent in the past month.
For more on ETFs, click .
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Gain access to more investing ideas, tools & education. Get Started on Marketfy, the first ever curated & verified Marketplace for everything trading.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Multi-country funds such as the iShares MSCI Emerging Markets Index Fund (NYSE: EEM ) and the WisdomTree Emerging Markets Equity Income Fund (NYSE: DEM ) delivered solid returns while attracting a steady stream of new assets from investors. Just a few trading days into 2013, emerging markets ETFs are extending their 2012 gains as EEM and DEM are in the green and some country funds such as the Market Vectors Vietnam ETF (NYSE:VNM ) have already set a torrid pace. EGShares Emerging Markets Domestic Demand ETF (NYSE: EMDD ) The EGShares Emerging Markets Domestic Demand ETF is more of a thematic concept than a sector-specific play.
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EGShares Emerging Markets Domestic Demand ETF (NYSE: EMDD ) The EGShares Emerging Markets Domestic Demand ETF is more of a thematic concept than a sector-specific play. Multi-country funds such as the iShares MSCI Emerging Markets Index Fund (NYSE: EEM ) and the WisdomTree Emerging Markets Equity Income Fund (NYSE: DEM ) delivered solid returns while attracting a steady stream of new assets from investors. Just a few trading days into 2013, emerging markets ETFs are extending their 2012 gains as EEM and DEM are in the green and some country funds such as the Market Vectors Vietnam ETF (NYSE:VNM ) have already set a torrid pace.
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Multi-country funds such as the iShares MSCI Emerging Markets Index Fund (NYSE: EEM ) and the WisdomTree Emerging Markets Equity Income Fund (NYSE: DEM ) delivered solid returns while attracting a steady stream of new assets from investors. EGShares Emerging Markets Domestic Demand ETF (NYSE: EMDD ) The EGShares Emerging Markets Domestic Demand ETF is more of a thematic concept than a sector-specific play. Just a few trading days into 2013, emerging markets ETFs are extending their 2012 gains as EEM and DEM are in the green and some country funds such as the Market Vectors Vietnam ETF (NYSE:VNM ) have already set a torrid pace.
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EGShares Emerging Markets Domestic Demand ETF (NYSE: EMDD ) The EGShares Emerging Markets Domestic Demand ETF is more of a thematic concept than a sector-specific play. Multi-country funds such as the iShares MSCI Emerging Markets Index Fund (NYSE: EEM ) and the WisdomTree Emerging Markets Equity Income Fund (NYSE: DEM ) delivered solid returns while attracting a steady stream of new assets from investors. Just a few trading days into 2013, emerging markets ETFs are extending their 2012 gains as EEM and DEM are in the green and some country funds such as the Market Vectors Vietnam ETF (NYSE:VNM ) have already set a torrid pace.
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2012-12-21 00:00:00 UTC
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Emerging Market Stocks: 5 Pros' Top Picks For 2013
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https://www.nasdaq.com/articles/emerging-market-stocks-5-pros-top-picks-2013-2012-12-21
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Investment strategists are overwhelmingly bullish on emerging markets, especially China, for 2013. Several analysts make their case for investing in the People's Republic and other developing countries in the New Year and which ETF they're most bullish on for the New Year.
Wojtek Zarzycki, chief investment officer at Optimal Investing, based in Toronto and New York, with $150 million in assets under management:
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Investment strategists are overwhelmingly bullish on emerging markets, especially China, for 2013. Several analysts make their case for investing in the People's Republic and other developing countries in the New Year and which ETF they're most bullish on for the New Year. Wojtek Zarzycki, chief investment officer at Optimal Investing, based in Toronto and New York, with $150 million in assets under management:
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Investment strategists are overwhelmingly bullish on emerging markets, especially China, for 2013. Several analysts make their case for investing in the People's Republic and other developing countries in the New Year and which ETF they're most bullish on for the New Year. Wojtek Zarzycki, chief investment officer at Optimal Investing, based in Toronto and New York, with $150 million in assets under management:
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Investment strategists are overwhelmingly bullish on emerging markets, especially China, for 2013. Several analysts make their case for investing in the People's Republic and other developing countries in the New Year and which ETF they're most bullish on for the New Year. Wojtek Zarzycki, chief investment officer at Optimal Investing, based in Toronto and New York, with $150 million in assets under management:
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Investment strategists are overwhelmingly bullish on emerging markets, especially China, for 2013. Several analysts make their case for investing in the People's Republic and other developing countries in the New Year and which ETF they're most bullish on for the New Year. Wojtek Zarzycki, chief investment officer at Optimal Investing, based in Toronto and New York, with $150 million in assets under management:
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727206.0
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2012-12-21 00:00:00 UTC
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The Top Diversified EM ETFs for 2013
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https://www.nasdaq.com/articles/top-diversified-em-etfs-2013-2012-12-21
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When it comes to diversified, or multi-country, emerging markets ETFs , two funds reign supreme. Those being the Vanguard MSCI Emerging Markets (NYSE: VWO ), which will soon drop MSCI as its index provider , and the iShares MSCI Emerging Markets Index Fund (NYSE: EEM ).
VWO and EEM are the two largest emerging markets ETFs by assets. Both have superior brand recognition and both have delivered impressive performances over long-term time frames. Those factors might imply that VWO and EEM do not have worthy rivals in diversified emerging markets ETF realm.
Actually, the opposite is true. There are several diversified emerging markets ETFs that represent credible alternatives to the aforementioned juggernauts. Remember that in this case, "diversified" means the ETF offers decent exposure to a variety of countries and regions and holds a large number of stocks. For the purposes of this list, multi-country funds tracking just four or five countries with just 30 or 40 holdings were excluded.
With that in mind, here are some of the top diversified EM ETF ideas for 2013. In no particular order, of course.
FlexShares Morningstar Emerging Market Factor Tilt Index ETF (NYSE: TLTE ) In less than three months of trading, albeit somewhat quietly, TLTE has proven itself to be one of the better new ETFs to debut in 2012. TLTE has already attracted almost $37 million in assets and has outperformed VWO since early October.
South Korea, Taiwan, Brazil and China are TLTE's largest country weights and the ETF's 1,521 holdings familiar large-cap emerging markets names such as Samsung, Taiwan Semiconductor (NYSE: TSM ) and Petrobras (NYSE: PBR ).
Before investors go thinking they have seen this movie before, it is worth noting that TLTE really does "tilt" in a different direction. Meaning, the ETF's index is screened for value names and small-caps. As such, small-caps represent almost 30 percent of TLTE's weight, a high percentage for a fund of this type.
iShares Core MSCI Emerging Markets ETF (NYSE: IEMG ) It is fare to say that every ETF investor and his sister is aware of the fee war that has taken place among issuers in 2012. Perhaps it is too trite to say that investors are the beneficiaries of rampant fee cuts, but IEMG indicates that might be the case.
At its core, not pun intended, IEMG is the iShares vehicle for undercutting VWO on price. Rather than lower EEM's expense ratio, iShares simply created a new ETF, IEMG. IEMG charges 0.18 percent per year compared to 0.2 percent for VWO.
The iShares product is another China-South Korea-Brazil-Taiwan (in that order) heavy diversified EM ETF full of a familiar roster of holdings. In terms of what 2013 may have in store, as is the case with all the ETFs mentioned to this point, IEMG will benefit from continued bullishness in Chinese equities and a rebound for moribund Brazil.
SPDR S&P Emerging Markets Dividend ETF (NYSE: EDIV ) Emerging markets firms are upping their dividend game this year with the expect payouts from the 300 largest non-bank stocks in the MSCI Emerging Markets Index expected to rise to $52.2 billion from $48.9 billion last year.
Better still is the fact that from China to India to Russia and other developing nations as well, governments are forcing companies to pay higher dividends. Some state-owned firms are already decent dividend payers, but since their largest shareholders (the home government) often want more money, there is the potential for dividend growth and that buoys the case for EDIV in 2013.
Brazil and Taiwan, already two of the better emerging markets destinations for income investors, combine for nearly a third or EDIV's weight. Remember this: EDIV has a 5.7 to Russia where state-run firms are now required to pay a quarter of their profits in dividends .
Suitable alternatives to EDIV include the WisdomTree Emerging Markets Equity Income Fund (NYSE: DEM ) and the iShares Emerging Markets Dividend Index Fund (NYSE: DVYE ).
WisdomTree Emerging Markets SmallCap Dividend Fund (NYSE: DGS ) The WisdomTree Emerging Markets SmallCap Dividend Fund is the dominant name among emerging markets dividend ETF focusing on small-caps and with a distribution yield of six percent, it is easy to see why. Year-to-date, DGS has risen 20.6 percent, including dividends paid. Noteworthy is the fact that the ETF's volatility of 15.7 percent makes it below that of large-cap focused rivals such as EEM and VWO.
Looking to 2013, DGS needs a couple of things to go right in order to repeat 2012's strong run. With Taiwanese equities dominating the fund at 23.1 percent of its weight, Taiwan either needs to keep the upside coming or multiple markets with DGS's fold need to rise to the occasion and step in the event Taiwan lags.
Second, DGS devotes 10.4 percent of its weight to Thailand, one of the best performing Asian markets in 2012. As the premier ETF for gaining exposure to Thai small-caps, DGS will benefit if that market continues to flourish. The primary risk to this thesis is that some experts are saying Thailand is overbought at the moment.
iShares MSCI Emerging Markets Minimum Volatility Index Fund (NYSE: EEMV ) The popularity of low volatility ETFs found its way to the emerging markets genre where it has proven wildly successful as well. As was previously noted , it is almost a foregone conclusion that EEMV crosses the $1 billion in AUM mark in 2013.
It was just a few months ago that EEMV had about $600 million in assets. Today, that total is over $817 million. Investors will have to take on a richer valuation for the privilege of EEMV's low volatility. The fund has a price-to-earnings ratio of 20.51 and a price-to-book ratio of 3.91, according to iShares data .
Those numbers are well ahead of what is found with EEM, implying investors are paying up to reduce beta. EEMV does that. The ETF's beta against the S&P 500 is 1.16 compared to 1.52 for EEM .
Alternative idea: PowerShares S&P Emerging Markets Low Volatility Portfolio (NYSE: EELV ). EELV's country weights differ significantly from EEMV's, so while both are "low vol" plays, they are by no means close to being the same ETF.
PowerShares DWA Emerging Markets Technical Leaders Portfolio (NYSE: PIE ) Country exposure can make all the difference with diversified EM ETFs and PIE's 14.1 percent year-to-date gain may be just as attributable to what countries are not prominently displayed in the ETF as it would be to those that are. That is to say PIE has benefited from Brazil not being a large part of its lineup this year at a time when Brazil has been the worst performer among the BRIC nations.
In fact, PIE can be used as an alternative to or paired with BRIC-heavy funds because PIE's largest allocation to a BRIC nation is a 4.1 percent weight to China. Primarily, PIE is a play on Asia's secondary and tertiary markets as South Korea, Indonesia, Thailand and Malaysia represent over 48 percent of the ETF's weight.
What that means for 2013 is that it would be constructive if Indonesia sheds its laggard status . Next, PIE can keep climbing if Thailand and Mexico (9.8 percent weight) deliver anything close to the returns they have provided in 2012.
For more on emerging markets ETFs, click here .
(c) 2012 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Suitable alternatives to EDIV include the WisdomTree Emerging Markets Equity Income Fund (NYSE: DEM ) and the iShares Emerging Markets Dividend Index Fund (NYSE: DVYE ). Remember that in this case, "diversified" means the ETF offers decent exposure to a variety of countries and regions and holds a large number of stocks. In terms of what 2013 may have in store, as is the case with all the ETFs mentioned to this point, IEMG will benefit from continued bullishness in Chinese equities and a rebound for moribund Brazil.
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Suitable alternatives to EDIV include the WisdomTree Emerging Markets Equity Income Fund (NYSE: DEM ) and the iShares Emerging Markets Dividend Index Fund (NYSE: DVYE ). SPDR S&P Emerging Markets Dividend ETF (NYSE: EDIV ) Emerging markets firms are upping their dividend game this year with the expect payouts from the 300 largest non-bank stocks in the MSCI Emerging Markets Index expected to rise to $52.2 billion from $48.9 billion last year. WisdomTree Emerging Markets SmallCap Dividend Fund (NYSE: DGS ) The WisdomTree Emerging Markets SmallCap Dividend Fund is the dominant name among emerging markets dividend ETF focusing on small-caps and with a distribution yield of six percent, it is easy to see why.
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Suitable alternatives to EDIV include the WisdomTree Emerging Markets Equity Income Fund (NYSE: DEM ) and the iShares Emerging Markets Dividend Index Fund (NYSE: DVYE ). SPDR S&P Emerging Markets Dividend ETF (NYSE: EDIV ) Emerging markets firms are upping their dividend game this year with the expect payouts from the 300 largest non-bank stocks in the MSCI Emerging Markets Index expected to rise to $52.2 billion from $48.9 billion last year. WisdomTree Emerging Markets SmallCap Dividend Fund (NYSE: DGS ) The WisdomTree Emerging Markets SmallCap Dividend Fund is the dominant name among emerging markets dividend ETF focusing on small-caps and with a distribution yield of six percent, it is easy to see why.
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Suitable alternatives to EDIV include the WisdomTree Emerging Markets Equity Income Fund (NYSE: DEM ) and the iShares Emerging Markets Dividend Index Fund (NYSE: DVYE ). VWO and EEM are the two largest emerging markets ETFs by assets. Second, DGS devotes 10.4 percent of its weight to Thailand, one of the best performing Asian markets in 2012.
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727207.0
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2012-12-18 00:00:00 UTC
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Three of 2012's Most Disappointing EM ETFs
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https://www.nasdaq.com/articles/three-2012s-most-disappointing-em-etfs-2012-12-18
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Broadly speaking, 2012 has been a good year for emerging markets ETFs . Diversified funds such as the iShares MSCI Emerging Markets Index Fund (NYSE: EEM ), the iShares MSCI Emerging Markets Minimum Volatility Index Fund (NYSE: EEMV ) and the WisdomTree Emerging Markets Equity Income Fund (NYSE: DEM ) have delivered solid returns.
At the country level, ETFs tracking developing nations ranging from Colombia to Mexico to the Philippines to Thailand to Poland and scores of others have impressed as well.
That all sounds good, but it does not mean all emerging markets ETFs have delivered for investors in 2012. Some have been downright disappointments, including marquee emerging markets ETFs such as the iShares MSCI Brazil Index Fund (NYSE: EWZ ).
To be sure, disappointment comes in a variety of forms and EWZ has been not the only emerging markets ETF turkey this year. Some of the following funds have been just equally, if not more, disappointing.
Market Vectors Vietnam ETF (NYSE: VNM ) Looking at VNM's year-to-date gain of 16.7 percent could make the ETF's inclusion on this list confusing to the untrained eye. However, a quick glance at VNM's chart shows the bulk of the ETF's gains were accrued in the first quarter and after the fund failed to run much past $21 in May, the ensuing tumble was disheartening.
Coming off a 2011 when Vietnamese stocks were hammered by rampant inflation and currency devaluations, it looked like VNM finally had its act together early this year. That theory would be dispelled. In the third quarter came news of the arrest of two noteworthy Vietnamese banking scions, headlines that dealt a blow to investor confidence in Vietnamese banks .
Investors were harshly reminded this is a corrupt country and headlines about a banking sector awash in bad loans did not help. In other words, Vietnam squandered a great opportunity for itself and VNM this year.
The good news is VNM has shown signs of life in recent weeks . The fund, which tracks a market that is cheap relative to the broader emerging markets universe, has surged 7.7 percent in the past month. Remember, it was in the late fourth quarter of 2011 that VNM started perking up before surging in the early part of the new year. Perhaps a sequel is in store.
Market Vectors Indonesia ETF (NYSE: IDX ) As early as early February, ETFs tracking Indonesia were showing laggard signs and that is exactly what they have been this year. In the case of IDX, the ETF is up almost 2.5 percent year-to-date, but that is nowhere the returns offered by ETFs tracking Malaysia, the Philippines, Thailand and the aforementioned VNM.
There are some cautionary tales regarding the Indonesian economy, Southeast Asia's largest. Like many emerging markets, Indonesia is home to decrepit infrastructure. For now at least, Indonesia is on the India infrastructure plan, which is short on action. Second, there are some signs of a property bubble. The last time Indonesian real estate reached bubble heights was in 1998 right before the Asian financial crisis.
Still, a bull case remains for Indonesia and IDX. The economy is expected to grow 6.4 percent per year from 2013 through 2017, the highest growth rate of the ASEAN nations, according to the Jakarta Post .
Additionally, the Indonesian economy has done something that would make even China green with envy: Increase domestic consumption. Domestic consumption accounts for nearly two-thirds of Indonesian GDP .
PowerShares Golden Dragon China Portfolio (NYSE: PGJ ) The PowerShares Golden Dragon China Portfolio is a disappointment relative to its peer group as the ETF is down almost 5.3 percent this year. That loss is bad on its own, but it looks worse when measured against an almost 13 percent gain for the iShares FTSE China 25 Index Fund (NYSE: FXI ), an almost 18 percent jump for the iShares MSCI China Index Fund (NYSE: MCHI ) and a 16.2 percent gain for the SPDR S&P China ETF (NYSE: GXC ).
What has bitten PGJ is its exposure to small-cap growth names (an allocation of 10.6 percent) and its exposure to Chinese Internet names . For example, Baidu (NASDAQ: BIDU ), Sina (NASDAQ: SINA ) and NetEase (NASDAQ: NTES ) are down an average of 12 percent this year and those three names combine for almost 18 percent of China's weight.
There is hope for PGJ. The Chinese economy is rebounding in earnest and there is something to be said for controversial stocks, of which Chinese Internet names fit the bill. When the darkest clouds have passed, controversial stocks can rally in significant fashion. That means there could be upside in store for PGJ in 2013.
For more on ETFs, click here .
(c) 2012 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Diversified funds such as the iShares MSCI Emerging Markets Index Fund (NYSE: EEM ), the iShares MSCI Emerging Markets Minimum Volatility Index Fund (NYSE: EEMV ) and the WisdomTree Emerging Markets Equity Income Fund (NYSE: DEM ) have delivered solid returns. At the country level, ETFs tracking developing nations ranging from Colombia to Mexico to the Philippines to Thailand to Poland and scores of others have impressed as well. Some have been downright disappointments, including marquee emerging markets ETFs such as the iShares MSCI Brazil Index Fund (NYSE: EWZ ).
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Diversified funds such as the iShares MSCI Emerging Markets Index Fund (NYSE: EEM ), the iShares MSCI Emerging Markets Minimum Volatility Index Fund (NYSE: EEMV ) and the WisdomTree Emerging Markets Equity Income Fund (NYSE: DEM ) have delivered solid returns. Market Vectors Indonesia ETF (NYSE: IDX ) As early as early February, ETFs tracking Indonesia were showing laggard signs and that is exactly what they have been this year. PowerShares Golden Dragon China Portfolio (NYSE: PGJ ) The PowerShares Golden Dragon China Portfolio is a disappointment relative to its peer group as the ETF is down almost 5.3 percent this year.
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Diversified funds such as the iShares MSCI Emerging Markets Index Fund (NYSE: EEM ), the iShares MSCI Emerging Markets Minimum Volatility Index Fund (NYSE: EEMV ) and the WisdomTree Emerging Markets Equity Income Fund (NYSE: DEM ) have delivered solid returns. Market Vectors Indonesia ETF (NYSE: IDX ) As early as early February, ETFs tracking Indonesia were showing laggard signs and that is exactly what they have been this year. That loss is bad on its own, but it looks worse when measured against an almost 13 percent gain for the iShares FTSE China 25 Index Fund (NYSE: FXI ), an almost 18 percent jump for the iShares MSCI China Index Fund (NYSE: MCHI ) and a 16.2 percent gain for the SPDR S&P China ETF (NYSE: GXC ).
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Diversified funds such as the iShares MSCI Emerging Markets Index Fund (NYSE: EEM ), the iShares MSCI Emerging Markets Minimum Volatility Index Fund (NYSE: EEMV ) and the WisdomTree Emerging Markets Equity Income Fund (NYSE: DEM ) have delivered solid returns. That all sounds good, but it does not mean all emerging markets ETFs have delivered for investors in 2012. Market Vectors Indonesia ETF (NYSE: IDX ) As early as early February, ETFs tracking Indonesia were showing laggard signs and that is exactly what they have been this year.
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2012-12-13 00:00:00 UTC
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4 Best New ETFs of 2012 - Investment Ideas
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https://www.nasdaq.com/articles/4-best-new-etfs-2012-investment-ideas-2012-12-13
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2012 will go down as another significant year in the history of ETF industry. Net inflows for the year through November surged to $159.1 billion, up 55.4% from the inflows for the same period last year. While the number of products launched this year was lower compared to recent years and the closures were higher, the assets under management increased.
Investors' appetite for fixed income and emerging markets assets increased significantly this year, resulting in many new products being added in these categories. (Read: Play Four Megatrends with These ETFs )
Of about 160 products launched this year through November, most are designed to follow the popular strategies that have worked so far, whereas few offer unique, innovative investing opportunities that were earlier unavailable to regular investors. Some will flourish while some will languish due to lack of investor interest.
Below we highlight four best ETFs launched this year that in our view will emerge as big winners in the industry in the days to come. (Read: 3 ETFs to prepare for the fiscal cliff )
Market Vectors Wide Moat ETF ( MOAT )
The term "economic moat" was popularized by Warren Buffet who said that he seeks "economic castles protected by unbreachable 'moats'." In simple words moat is a unique competitive advantage that allows a company to outperform others in the same industry over time.
Thanks to Market Vectors Wide Moat ETF, investors can now own a diversified group of such potential winners. (Read: Invest like Warren Buffett with These ETFs )
Launched in April this year, MOAT tracks Morningstar Wide Moat Focus Index which gives equal-weighted exposure to 20 least-expensive wide-moat companies. These are mostly large-cap companies with sustainable competitive advantage in their respective industries. The ETF charges just 49 basis points in annual expenses and has already attracted almost $99 million in assets.
The index strategy has worked so far. In five years through July, the Moat index gained 7.4% annualized , with dividends, versus a total return of 1.1% for the S&P index and 2.6% for the S&P 500 equal-weighted index.
PIMCO Total Return ETF ( BOND )
BOND is the ETF version of PIMCO's flagship blockbuster mutual fund-the PIMCO Total Return Institutional Fund. (Read: 3 Actively Managed Bond ETFs for Stability and Income )
BOND is a very popular product since it provides the opportunity of getting the portfolio management expertise of Bill Gross, one of the most respected investment managers in the world. The ETF has become the most successful ETF launch since GLD's launch in 2004.
The fund currently has $3.9 billion in AUM and charges an expense ratio of 55 basis points per year. Though the ETF does not use swaps or other similar derivative instruments which are in the mutual fund versions of the product (due to SEC rules), it has been outperforming its mutual fund counterpart since inception in March this year.
The portfolio currently holds 816 securities with an effective maturity of 7.6 years and effective duration of 4.8 years.
According to some industry experts actively managed bond ETFs are likely to become popular in future and further with time-proven success of PIMCO Total Return strategy, we expect this ETF to be an outperformer in the fixed income world.
PowerShares S&P 500 High Dividend Portfolio ( SPHD )
As the traditional fixed income instruments currently yield miniscule returns, yield-hungry investors have poured a lot of money into high-dividend yielding stocks and ETFs in the past couple of years. While we like the high-quality companies with strong fundamentals, which have consistently increased their pay-outs in the past, many high-yield stocks are fundamentally not so sound, exhibit high volatility and may ultimately result in losses.
Many academic studies have shown that low-volatility stocks outperform the broader market over longer period and they consistently deliver better risk-adjusted returns. (Read: 4 low volatility ETFs to hedge your portfolio )
While dividend paying stocks have taken a hit of late due to cliff related tax concerns, we believe that high-quality, low-volatility dividend payers still represent long-term value.
SPHD intends to combine two most desirable investment themes-high dividend and low volatility, which almost guarantees the long-term success of this ETF. The index is composed of 50 stocks that historically have provided high dividend yields and exhibited low volatility.
Launched in October this year, the fund has attracted more than $22 million in assets so far. It charges an expense ratio of 30 basis points and currently has a distribution yield of 5.03%.
Emerging Markets Dividend Index Fund ( DVYE )
The investment case for Emerging Markets Dividend ETFs is pretty strong now since the investors can benefit from the higher growth potential in the emerging markets with the steady flow of dividend income in addition to 'escape' from the "fiscal-cliff" issues in the US.
This ETF is designed to compete with the very popular WisdomTree ETF DEM , providing a lower cost alternative to the investors, while fulfilling similar investment objective. ( Escape the Cliff with These Dividend ETFs )
The fund seeks to replicate the Dow Jones Emerging Markets Select Dividend Index. DVYE has much less exposure to the volatile Financials sector (15.2%) compared to DEM (27.1%), with top weighting assigned to Industrials (17.7%) and Telecom (15.4%).
Taiwan leads the country allocation with 22.6% weight, followed by South Africa (10.5%) and Turkey (9.6%). The fund holds 101 stocks and thus focuses on a smaller group of companies compared with DEM (293 holdings).
The ETF currently charges 0.49% to the investors compared with 0.63% for DEM. This product pays out a yield of 3.28% currently. In terms of returns, it has managed to outperform DEM with an impressive 15.1% return for the past 26 weeks compared with 10.7% for DEM.
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PIMCO-TOT RETRN (BOND): ETF Research Reports
PIMCO-TOT RETRN (BOND): ETF Research Reports
PIMCO-TOT RETRN (BOND): ETF Research Reports
WISDMTR-EM EQ I (DEM): ETF Research Reports
WISDMTR-EM EQ I (DEM): ETF Research Reports
WISDMTR-EM EQ I (DEM): ETF Research Reports
ISHARS-EM DIV (DVYE): ETF Research Reports
ISHARS-EM DIV (DVYE): ETF Research Reports
ISHARS-EM DIV (DVYE): ETF Research Reports
MKT VEC-MS WMFF (MOAT): ETF Research Reports
MKT VEC-MS WMFF (MOAT): ETF Research Reports
MKT VEC-MS WMFF (MOAT): ETF Research Reports
PWRSH-SP5 HI DV (SPHD): ETF Research Reports
PWRSH-SP5 HI DV (SPHD): ETF Research Reports
PWRSH-SP5 HI DV (SPHD): ETF Research Reports
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Many academic studies have shown that low-volatility stocks outperform the broader market over longer period and they consistently deliver better risk-adjusted returns. This ETF is designed to compete with the very popular WisdomTree ETF DEM , providing a lower cost alternative to the investors, while fulfilling similar investment objective. DVYE has much less exposure to the volatile Financials sector (15.2%) compared to DEM (27.1%), with top weighting assigned to Industrials (17.7%) and Telecom (15.4%).
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Click to get this free report >> PIMCO-TOT RETRN (BOND): ETF Research Reports PIMCO-TOT RETRN (BOND): ETF Research Reports PIMCO-TOT RETRN (BOND): ETF Research Reports WISDMTR-EM EQ I (DEM): ETF Research Reports WISDMTR-EM EQ I (DEM): ETF Research Reports WISDMTR-EM EQ I (DEM): ETF Research Reports ISHARS-EM DIV (DVYE): ETF Research Reports ISHARS-EM DIV (DVYE): ETF Research Reports ISHARS-EM DIV (DVYE): ETF Research Reports MKT VEC-MS WMFF (MOAT): ETF Research Reports MKT VEC-MS WMFF (MOAT): ETF Research Reports MKT VEC-MS WMFF (MOAT): ETF Research Reports PWRSH-SP5 HI DV (SPHD): ETF Research Reports PWRSH-SP5 HI DV (SPHD): ETF Research Reports PWRSH-SP5 HI DV (SPHD): ETF Research Reports To read this article on Zacks.com click here. Many academic studies have shown that low-volatility stocks outperform the broader market over longer period and they consistently deliver better risk-adjusted returns. This ETF is designed to compete with the very popular WisdomTree ETF DEM , providing a lower cost alternative to the investors, while fulfilling similar investment objective.
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Click to get this free report >> PIMCO-TOT RETRN (BOND): ETF Research Reports PIMCO-TOT RETRN (BOND): ETF Research Reports PIMCO-TOT RETRN (BOND): ETF Research Reports WISDMTR-EM EQ I (DEM): ETF Research Reports WISDMTR-EM EQ I (DEM): ETF Research Reports WISDMTR-EM EQ I (DEM): ETF Research Reports ISHARS-EM DIV (DVYE): ETF Research Reports ISHARS-EM DIV (DVYE): ETF Research Reports ISHARS-EM DIV (DVYE): ETF Research Reports MKT VEC-MS WMFF (MOAT): ETF Research Reports MKT VEC-MS WMFF (MOAT): ETF Research Reports MKT VEC-MS WMFF (MOAT): ETF Research Reports PWRSH-SP5 HI DV (SPHD): ETF Research Reports PWRSH-SP5 HI DV (SPHD): ETF Research Reports PWRSH-SP5 HI DV (SPHD): ETF Research Reports To read this article on Zacks.com click here. Many academic studies have shown that low-volatility stocks outperform the broader market over longer period and they consistently deliver better risk-adjusted returns. This ETF is designed to compete with the very popular WisdomTree ETF DEM , providing a lower cost alternative to the investors, while fulfilling similar investment objective.
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The ETF currently charges 0.49% to the investors compared with 0.63% for DEM. In terms of returns, it has managed to outperform DEM with an impressive 15.1% return for the past 26 weeks compared with 10.7% for DEM. Many academic studies have shown that low-volatility stocks outperform the broader market over longer period and they consistently deliver better risk-adjusted returns.
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0e45b2a2-1c78-4e08-b703-61ed281ae6d8
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727209.0
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2012-12-05 00:00:00 UTC
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More to VWO's Asset Loss Than Meets The Eye
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DEM
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https://www.nasdaq.com/articles/more-vwos-asset-loss-meets-eye-2012-12-05
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nan
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nan
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One of the big ETF stories of this week is news that the Vanguard MSCI Emerging Markets ETF (NYSE: VWO ) hemorrhaged $887 million in assets last month. Do not shed any tears for VWO. This is still the largest emerging markets ETF and the third-largest U.S.-listed by assets with $56.8 billion, according to ETFdb data .
While VWO was losing assets in November, it's primary rival, the iShares MSCI Emerging Markets Index Fund (NYSE: EEM ), was busying raking in $2.34 billion in fresh capital, Bloomberg reported .
On the surface, it appears VWO's loss of assets can be blamed on Vanguard's October announcement that the ETF and 21 of its other funds will stop using MSCI Indexes . VWO will move over to the FTSE Emerging Markets Index next year. Vanguard even said in the aforementioned Bloomberg piece it anticipated some asset "leakage" as a result.
So blaming VWO's one-month asset woes on an index change and some pilfering by EEM are nice, tidy excuses. They are convenient excuses, too. On the other hand, this could be like a suspense movie where the pieces of a major crime case fit together too nicely and, later on, one intrepid cop, probably named Jack, gets to the bottom of a wider-ranging problem.
In the essence of clarity, no one is saying VWO is going out of business. On the basis of its 0.2 percent expense ratio, one that will likely come down at some point, the fund will remain attractive to investors for years to come. It is also not overly ambitious to say VWO will remain one of the five largest ETFs .
However, maybe, just maybe, the November outflows highlight another situation: Competition. As in VWO faces a lot more competition than just EEM. It is convenient to think that every dollar that leaves VWO goes to EEM, but the reality is that probably is not the case. Perhaps VWO's November outflows indicate that investors are becoming a bit more savvy when it comes to multi-country emerging markets ETFs.
Take the example of the WisdomTree Emerging Markets Equity Income Fund (NYSE: DEM ). Yes, DEM charges 0.63 percent per year, more than triple VWO's expense ratio. DEM makes up for that with a dividend yield that is more than 240 basis higher than VWO's. Over the last 24 months, DEM has been the better performer and 400 basis points less volatile than VWO.
And DEM is gaining assets in a big way . The fund celebrated reaching the $3 billion in AUM level in the first quarter. That number was close to $4.6 billion at the start of trading today. A better than 50 percent AUM jump in less than a year's work is impressive, no doubt about it.
It is also reasonable to surmise that some of VWO's lost assets have flowed to the newly minted iShares Core MSCI Emerging Markets ETF (NYSE: IEMG ). Rather than lower the fees on EEM to better compete with VWO, BlackRock (NYSE: BLK ), parent company of iShares, just created a new ETF. The idea appears to be working as IEMG has hauled in more than $127 million in AUM in less than two months of trading, according to iShares data . IEMG undercuts VWO with annual fees of 0.18 percent.
VWO has another problem in the form of the iShares MSCI Emerging Markets Minimum Volatility Index Fund (NYSE: EEMV ). As been previously noted , EEMV is a credible alternative to both EEM and VWO for investors looking for a low volatility entry to emerging markets.
With an expense ratio of 0.25 percent, EEMV is far cheaper than EEM and not much more expensive than VWO. Here is the problem for VWO: EEMV has outperformed the Vanguard fund by 500 basis points this year. How long can a difference of five basis points in fees outweigh 500 basis points in additional alpha, especially when EEMV is less volatile?
Bottom line: Some of VWO's assets may have gone to EEMV. The latter had $544 million in AUM in mid-October. Today, that number is north of $672 million.
Another fund that does not get the credit it deserves for being a thorn in VWO's side is the PowerShares DWA Emerging Markets Technical Leaders Portfolio (NYSE: PIE ). The knock on PIE compared to VWO is fees. PIE charges 0.9 percent a year, but the ETF makes up for it.
VWO has consistently lagged PIE by margins that are wide enough to justify paying up for the PowerShares offering. Over the past 12, 24 and 36 months and year-to-date, PIE has bested VWO. Over the past 36 months PIE has delivered triple the returns of VWO and has been less volatile than the Vanguard fund over that time.
All this is to say convenient excuses do not always tell the entire story. Index change or not, VWO has some serious competition in the multi-country emerging markets ETF space. The danger for VWO it is trumped by some of the ETFs highlighted here either on a yield basis, a performance basis or both. Again, VWO is not going anywhere, but it might have more Novembers ahead of it if it cannot keep pace with its marquee rivals.
For more on ETFs, click here .
(c) 2012 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Take the example of the WisdomTree Emerging Markets Equity Income Fund (NYSE: DEM ). Yes, DEM charges 0.63 percent per year, more than triple VWO's expense ratio. DEM makes up for that with a dividend yield that is more than 240 basis higher than VWO's.
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Take the example of the WisdomTree Emerging Markets Equity Income Fund (NYSE: DEM ). Yes, DEM charges 0.63 percent per year, more than triple VWO's expense ratio. DEM makes up for that with a dividend yield that is more than 240 basis higher than VWO's.
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Take the example of the WisdomTree Emerging Markets Equity Income Fund (NYSE: DEM ). Yes, DEM charges 0.63 percent per year, more than triple VWO's expense ratio. DEM makes up for that with a dividend yield that is more than 240 basis higher than VWO's.
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Take the example of the WisdomTree Emerging Markets Equity Income Fund (NYSE: DEM ). Yes, DEM charges 0.63 percent per year, more than triple VWO's expense ratio. DEM makes up for that with a dividend yield that is more than 240 basis higher than VWO's.
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52ac3e76-b7ac-43cf-8e9c-bdb0d2662a4e
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727210.0
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2012-11-27 00:00:00 UTC
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Escape the Cliff with These Dividend ETFs - Investment Ideas
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DEM
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https://www.nasdaq.com/articles/escape-cliff-these-dividend-etfs-investment-ideas-2012-11-27
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nan
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nan
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With the fiscal cliff just a few weeks away and the two parties still at odds, the nervous investors are looking for assets that may provide refuge from the cliff. ( 3 ETFs to Prepare for the Fiscal Cliff)
A new report released by the White House yesterday warned that the fiscal cliff could "slow real GDP growth by 1.4% and limit consumer spending during the holiday season".
Earlier this month the Congressional Budget Office said that the cliff would drive the U.S. economy back into recession next year and result in a jump in the jobless rate to 9.1% by the end of 2013.
Though the laws will change on January 1 st , their actual impact will be felt over the course of next year. But the psychological impact of the changes is already visible as the businesses have curtailed investments and investors are selling stocks ahead of the potential capital gains tax hike.
While it is most likely that the two parties will reach some agreement, it remains to be seen what kind of changes they will agree to. They may agree to change the "threshold" for high-income or take away itemized deductions. It is possible that the dividend taxes may not go up for all the investors.
In anticipation of the increase in tax rate on dividends, many investors have been selling their dividend stocks. Some companies-particularly the ones with high insider ownership-are rushing to make accelerated or special dividends this year. ( MLP ETFs: Unfortunate Victims of The Fiscal Cliff )
Currently the qualified dividends are taxed at 15% top rate, same as long-term capital gains rate. If the tax cuts are not extended, long-term capital gains tax will revert to 20% but the dividends will be taxed as income, at rates up to 39.6%. Additionally, there will be a 3.8% surcharge on investment income for investors with higher incomes.
While high-quality dividend-paying stocks still represent long-term value, it is almost certain that these stocks will experience further sell-off if the tax laws become unfavorable. ( Biotech ETFs: A Fiscal Cliff Safe Haven? )
For investors who are concerned about the "dividend-cliff", an attractive option is to invest in the Emerging Markets Dividend ETFs that combine the opportunity to benefit from the higher growth potential in the emerging markets with the steady flow of dividend income in addition to providing the escape from the "fiscal-cliff" issues in the US.
Here are ten reasons for investing in Emerging Markets Dividend ETFs now:
1) The stocks held by these ETFs are not/will not be affected by the fiscal cliff issues, as these are mostly held by the investors who are not impacted by the U.S. tax laws.
2) About 70% of global dividend s comes from the companies outside of the U.S. and hence by focusing just on the domestic companies, the investors are losing the bigger dividend opportunity.
3) Dividend payout ratios have been on a decline in the U.S. and the trend is expected to continue. Further, high corporate tax rates in the U.S. act as a disincentive to the large multinational corporations to repatriate their profits from international operations.
4) Emerging markets currently represent about one-third of global GDP and their share will continue to grow in the coming years. As such they ought to be a part of any investment portfolio.
5) The IMF projects that the emerging economies will grow at 5.6% in 2013, versus 1.5% growth for the developed economies and hence investment in emerging markets companies provides greater chances of capital appreciation.
6) These markets have low correlations with the developed markets and thus provide diversification benefits to the portfolio.
7) The emerging markets companies often offer a higher rate of dividend yield compared with the domestic companies.
8) Some of the U.S. stocks/sector ETFs that are high dividend payers have become expensive compared with the broader market, as the yield-starved investors poured money into them in the last 2-3 years.
9) If the U.S. actually goes over the cliff, the economy would fall into a recession next year, whereas many other countries-especially the ones with a high level of domestic consumption--will continue to grow unaffected by the global headwinds.
10) The largest and most important emerging economy-China-finally seems to be bottoming out.
WisdomTree Emerging Markets Equity Income Fund ( DEM )
DEM tracks the WisdomTree Emerging Markets Equity Income Index, which is a fundamentally weighted index that measures the performance of the high dividend yielding stocks in emerging markets. The fund has currently has more than $4.5 billion in assets under management and charges 63 basis points annually for operating expenses.
The funds assigns heaviest weight to Financials (26.7%), followed by Energy (18.5%) and Materials (18.2%).
In terms of country allocations, Taiwan is at the top (20.5%), followed by China (15.6%), Russia (13.2%) and Brazil (11.9%). Its annual dividend yield is 3.64% versus average US dividend yield of less than 2%.
SPDR S&P Emerging Markets Dividend ETF ( EDIV )
EDIV tracks S&P Emerging Markets Dividend Opportunities Index, consisting of dividend paying securities of 100 publicly-traded companies in emerging markets. The ETF was launched in February last year and has so far attracted $321 million in assets.
Currently, it is heaviest weighted in financials (21.8%), followed by Materials (20.3%) and Telecom (18.1%). Country weights for the top three are Brazil (18.8%), Taiwan (14.1%), and Poland (10.0%).
The expense ratio for this fund is 0.59%, and it pays out a very attractive dividend yield of 6.01%.
Emerging Markets Dividend Index Fund (DVYE)
This ETF introduced very recently (February 24, 2012), is designed to compete with the popular WisdomTree ETF mentioned above by providing a lower cost alternative to the investors, while fulfilling similar investment objective.
The fund seeks to replicate the Dow Jones Emerging Markets Select Dividend Index. This fund is less exposed to the Financials (14.6%) compared to DEM, with top weighting assigned to Industrials (17.7%) and Telecom (15.4%).
Taiwan leads the country allocation with 22.6% weight, followed South Africa (10.5%) and by Turkey (9.6%). The fund holds 101 stocks and thus focuses on a smaller group of companies compared with DEM (293 holdings).
The underlying stocks are selected on the basis of dividend yield. The ETF currently charges 0.49% to the investors. The adviser to the fund has agreed to waive a part of its management fee to limit the expense ratio at this level through the end of December 2014.
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WISDMTR-EM EQ I (DEM): ETF Research Reports
WISDMTR-EM EQ I (DEM): ETF Research Reports
ISHARS-EM DIV (DVYE): ETF Research Reports
ISHARS-EM DIV (DVYE): ETF Research Reports
SPDR-SP EM DVD (EDIV): ETF Research Reports
SPDR-SP EM DVD (EDIV): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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WisdomTree Emerging Markets Equity Income Fund ( DEM ) DEM tracks the WisdomTree Emerging Markets Equity Income Index, which is a fundamentally weighted index that measures the performance of the high dividend yielding stocks in emerging markets. This fund is less exposed to the Financials (14.6%) compared to DEM, with top weighting assigned to Industrials (17.7%) and Telecom (15.4%). The fund holds 101 stocks and thus focuses on a smaller group of companies compared with DEM (293 holdings).
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WisdomTree Emerging Markets Equity Income Fund ( DEM ) DEM tracks the WisdomTree Emerging Markets Equity Income Index, which is a fundamentally weighted index that measures the performance of the high dividend yielding stocks in emerging markets. WISDMTR-EM EQ I (DEM): ETF Research Reports WISDMTR-EM EQ I (DEM): ETF Research Reports ISHARS-EM DIV (DVYE): ETF Research Reports ISHARS-EM DIV (DVYE): ETF Research Reports SPDR-SP EM DVD (EDIV): ETF Research Reports SPDR-SP EM DVD (EDIV): ETF Research Reports To read this article on Zacks.com click here. This fund is less exposed to the Financials (14.6%) compared to DEM, with top weighting assigned to Industrials (17.7%) and Telecom (15.4%).
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WisdomTree Emerging Markets Equity Income Fund ( DEM ) DEM tracks the WisdomTree Emerging Markets Equity Income Index, which is a fundamentally weighted index that measures the performance of the high dividend yielding stocks in emerging markets. WISDMTR-EM EQ I (DEM): ETF Research Reports WISDMTR-EM EQ I (DEM): ETF Research Reports ISHARS-EM DIV (DVYE): ETF Research Reports ISHARS-EM DIV (DVYE): ETF Research Reports SPDR-SP EM DVD (EDIV): ETF Research Reports SPDR-SP EM DVD (EDIV): ETF Research Reports To read this article on Zacks.com click here. This fund is less exposed to the Financials (14.6%) compared to DEM, with top weighting assigned to Industrials (17.7%) and Telecom (15.4%).
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WisdomTree Emerging Markets Equity Income Fund ( DEM ) DEM tracks the WisdomTree Emerging Markets Equity Income Index, which is a fundamentally weighted index that measures the performance of the high dividend yielding stocks in emerging markets. This fund is less exposed to the Financials (14.6%) compared to DEM, with top weighting assigned to Industrials (17.7%) and Telecom (15.4%). The fund holds 101 stocks and thus focuses on a smaller group of companies compared with DEM (293 holdings).
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0c8e54b1-c2ae-41d8-a504-365eb738b9ee
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727211.0
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2012-11-21 00:00:00 UTC
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Time to Taiwan? Maybe, Maybe Not
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DEM
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https://www.nasdaq.com/articles/time-taiwan-maybe-maybe-not-2012-11-21
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nan
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nan
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Despite being one of the largest country weights in the iShares MSCI Emerging Markets Index Fund (NYSE: EEM ), the Vanguard MSCI Emerging Markets ETF (NYSE: VWO ) and scores of other multi-country ETFs , it sure feels like Taiwan has been flying under the radar as of late.
Even as Chinese stocks have rebounded over the past several months , Taiwanese issues have been stagnant. Over that time, the iShares FTSE China 25 Index Fund (NYSE: FXI ) is up five percent while the iShares MSCI Taiwan Index Fund (NYSE: EWT ) is up just 1.2 percent.
Part of the reason for the lethargy of EWT and the names it tracks is weakness in the technology sector, which accounts for nearly 56 percent of EWT's weight.
"In the semiconductor business, for example, inventory levels have surged recently, resulting in lower capacity utilization rates, which are generally associated with less pricing power for companies, and posing near-term headwinds," iShares Global Chief Investment Strategist Russ Koesterich said in a note. "Meanwhile, weak global capital expenditures and sagging consumer demand adds pressure on the personal computer market."
Weakness in the semiconductor sub-sector is bad news for EWT because the ETF is home to several chip names. Taiwan Semiconductor (NYSE: TSM ) is the fund's largest holding with a weight of over 20 percent. Inflation has also been a problem.
"For the past three months, headline inflation measures have been persistently above the 2% inflation target set by the central bank, a result of higher fuel, electricity and food prices," Koesterich said in reducing his rating on Taiwan to Neutral from Overweight.
Bolstering the bear case for Taiwan is a premium market valuation. EWT has a price-to-earnings ratio of 20.5 and a price-to-book ratio of 2.32. That implies Taiwan is far pricier than China and the broader emerging markets universe as measured by EEM .
With the global economy still tepid at best, Taiwan's dependence on exports has been exposed. However, there is another side to the story. The country was recently 16th-best country for business by Forbes . The International Monetary Fund is projecting Taiwanese GDP growth of 3.9 percent next year, a stark improvement from the 1.05 percent growth the government expects this year.
Investors looking for Taiwan exposure without making a full commitment as required by EWT should consider the falling ETFs.
iShares Emerging Markets Dividend Index Fund (NYSE: DVYE ) Based purely on the fact that emerging markets firms are are becoming better dividend payers , the iShares Emerging Markets Dividend Index Fund is alluring.
On that note, Taiwan has long been one of the preferred destinations in the developing world for income investors so it is not surprising to see the country dominate DVYE with a weight of over 22 percent. The fund debuted in February and has thus far accumulated almost $49 million in assets under management. DVYE's 30-day SEC yield is 5.11 percent.
Income investors seeking Taiwan exposure should also consider the WisdomTree Emerging Markets Equity Income Fund (NYSE: DEM ) and the SPDR S&P Emerging Markets Dividend ETF (NYSE: EDIV ).
WisdomTree Emerging Markets SmallCap Dividend Fund (NYSE: DGS ) The WisdomTree Emerging Markets SmallCap Dividend Fund's name might imply a level of risk that some investors do not want to take because it combines emerging markets and small-caps. What is important to note, however, is that DGS devotes over a third of its weight to Taiwan and South Korea. Those are two of the least volatile emerging markets and that assertion is borne out in the statistics.
For example, the aforementioned iShares MSCI Taiwan Index Fund has been less volatile this year than VWO, FXI and the Market Vectors Indonesia ETF (NYSE:IDX ), just to name a few. DGS itself is also less volatile than all those funds, including EWT. The fund has 30-day SEC yield of 3.4 percent.
IndexIQ Emerging Markets Mid Cap ETF (NYSE: EMER ) Unknown to many investors, the IndexIQ Emerging Markets Mid Cap ETF has been a solid performer this year with a gain of over 11 percent. EMER is something of a dichotomy. At the sector level, financials and consumer discretionary names combine for over 42 percent of the fund's weight. That gives EMER a high-beta flair.
On the other hand, EMER is by no means ultra-risky because Taiwan and South Korea combine for nearly 41 percent of the ETF's country weight. Taiwan alone represents over a quarter of the fund's weight. Year-to-date and over the past 90 days, EMER has been a better bet than EWT.
For more on ETFs, click here .
(c) 2012 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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"Meanwhile, weak global capital expenditures and sagging consumer demand adds pressure on the personal computer market." Income investors seeking Taiwan exposure should also consider the WisdomTree Emerging Markets Equity Income Fund (NYSE: DEM ) and the SPDR S&P Emerging Markets Dividend ETF (NYSE: EDIV ). "In the semiconductor business, for example, inventory levels have surged recently, resulting in lower capacity utilization rates, which are generally associated with less pricing power for companies, and posing near-term headwinds," iShares Global Chief Investment Strategist Russ Koesterich said in a note.
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"Meanwhile, weak global capital expenditures and sagging consumer demand adds pressure on the personal computer market." Income investors seeking Taiwan exposure should also consider the WisdomTree Emerging Markets Equity Income Fund (NYSE: DEM ) and the SPDR S&P Emerging Markets Dividend ETF (NYSE: EDIV ). Despite being one of the largest country weights in the iShares MSCI Emerging Markets Index Fund (NYSE: EEM ), the Vanguard MSCI Emerging Markets ETF (NYSE: VWO ) and scores of other multi-country ETFs , it sure feels like Taiwan has been flying under the radar as of late.
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"Meanwhile, weak global capital expenditures and sagging consumer demand adds pressure on the personal computer market." Income investors seeking Taiwan exposure should also consider the WisdomTree Emerging Markets Equity Income Fund (NYSE: DEM ) and the SPDR S&P Emerging Markets Dividend ETF (NYSE: EDIV ). Despite being one of the largest country weights in the iShares MSCI Emerging Markets Index Fund (NYSE: EEM ), the Vanguard MSCI Emerging Markets ETF (NYSE: VWO ) and scores of other multi-country ETFs , it sure feels like Taiwan has been flying under the radar as of late.
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Income investors seeking Taiwan exposure should also consider the WisdomTree Emerging Markets Equity Income Fund (NYSE: DEM ) and the SPDR S&P Emerging Markets Dividend ETF (NYSE: EDIV ). "Meanwhile, weak global capital expenditures and sagging consumer demand adds pressure on the personal computer market." Despite being one of the largest country weights in the iShares MSCI Emerging Markets Index Fund (NYSE: EEM ), the Vanguard MSCI Emerging Markets ETF (NYSE: VWO ) and scores of other multi-country ETFs , it sure feels like Taiwan has been flying under the radar as of late.
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c4047a65-b6b0-4091-8e73-a2a38de6c669
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727212.0
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2012-11-16 00:00:00 UTC
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International Dividend ETFs: A Fiscal Cliff Survival Tool?
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DEM
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https://www.nasdaq.com/articles/international-dividend-etfs-fiscal-cliff-survival-tool-2012-11-16
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nan
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nan
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An ominous tone set by the fiscal cliff that has grown louder since Election Day is the primary excuse behind the recent declines endured by dividend ETFs . Popular, multi-sector dividend ETFs focused on U.S. equities have been hammered in the past week.
Since November 7, the Vanguard Dividend Appreciation ETF (NYSE: VIG ), the SPDR S&P Dividend ETF (NYSE: SDY ) and the iShares High Dividend Equity Fund (NYSE: HDV ) have lost an average of 4.2 percent. Things are worse for some so-called dividend sectors funds , such as those tracking telecommunications and utilities names. As one example, the Utilities Select Sector SPDR (NYSE: XLU ) is off six percent since November 7.
Despite the presentation of compelling evidence that doomsday will not arrive if the dividend tax rate rises, investors have been punishing U.S. dividend-paying stocks, the aforementioned ETFs and related funds. Although payout ratios at U.S. firms are historically low and high-yielding stocks rose in the decade following last dividend tax increase in 1993, investors are no longer convinced that domestic dividend names are worth the risk.
International dividend stocks and ETFs might just be the elixir income investors are looking for to deal with the fiscal cliff. Because "international investors are not affected by changes in U.S. tax rates and dividend yields are still attractive in the current environment, we do not anticipate a broad-based flight from global dividend-paying companies stemming from the U.S. Fiscal Cliff," said PIMCO in a research note .
Here is a sampling of some of the globally-focused dividend ETFs investors will want to have a look if the fiscal cliff morphs from bad dream to harsh reality.
iShares Dow Jones International Select Dividend Index Fund (NYSE: IDV ) The iShares Dow Jones International Select Dividend Index Fund is not a perfect "avoid the fiscal cliff" play. A 22 percent allocation to the financial services sector and a beta of almost 1.5. However, IDV is sufficiently allocated to conservative sectors such as consumer staples, utilities and telecommunications. That trio represents over 38 percent of the fund's weight.
Remember, it is ETFs that are heavy on U.S.-based utilities, and to a slightly less extent telecom names, that are most vulnerable to the fiscal cliff. PIMCO paints the picture: "For example, a Latin American utility with shareholders from Europe, Asia and the Middle East unaffected by the possible U.S. tax change is unlikely to see less demand for its stock."
Translation: The fiscal cliff may prompt a U.S.-based utility to become suddenly stingy with its dividend. That does not mean a European or Latin American utility will do the same.
WisdomTree International Dividend ex-Financials Fund (NYSE: DOO ) Not only is the the WisdomTree International Dividend ex-Financials Fund an ex-financials ETF, it is also an ex-U.S. ETF. DOO's 14.4 percent allocation to utilities names is not a red flag, because international utilities trade at much lower valuations than their U.S. counterparts.
DOO's 30-day SEC yield of 4.77 percent is certainly alluring, but the primary risk to this ETF is its large weight (over 45 percent) to eurozone nations. Still, select European equities are attractively valued and many of DOO's Europe-based constituents derive sizable portions of their revenue from other parts of the globe.
WisdomTree Emerging Markets Equity Income Fund (NYSE: DEM ) Emerging markets firms are upping their dividend game this year with the expect payouts from the 300 largest non-bank stocks in the MSCI Emerging Markets Index expected to rise to $52.2 billion $48.9 billion last year.
High profitability and low corporate debt bolster the case for emerging markets dividend payers and ETFs such as DEM. So does the fact U.S. dividend tax policy likely will not factor prominently in the decision of a Polish or Thai company's dividend decisions.
There is another reason DEM could work as a fiscal cliff play: State-owned enterprises. As in some state-owned firms are already decent dividend payers, but since their largest shareholders (the home government) often want more money, there is the potential for dividend growth.
Along those lines, investors should also evaluate the EGShares Low Volatility Emerging Markets Dividend ETF (NYSE: HILO ). Both DEM and HILO offer ample exposure to various state-controlled firms.
Global X SuperDividend ETF (NYSE: SDIV ) The Global X SuperDividend ETF does devote about 29.3 percent of its weight to U.S. equities, but many of those are real estate investment trusts that are obligated by law to payout a certain percentage of their profits in the form of dividends. That might not be enough to assuage some investors that SDIV is immune from the fiscal cliff.
Still, SDIV features plenty of positive traits and those traits extend beyond a 7.72 30-day SEC yield and a monthly dividend. SDIV is diverse and less volatile than other international dividend funds . With a price-to-earnings ratio of less than 12 and a price-to-book ratio of 1.14, SDIV is not richly valued.
And while SDIV offers exposure to both developed and developing markets, its eurozone exposure is not significant to be a major cause for concern. SDIV's recent pullback seems appears to be a case of too much too fast and below $21, the ETF is a steal.
For more on dividend ETFs, click here .
(c) 2012 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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PIMCO paints the picture: "For example, a Latin American utility with shareholders from Europe, Asia and the Middle East unaffected by the possible U.S. tax change is unlikely to see less demand for its stock." WisdomTree Emerging Markets Equity Income Fund (NYSE: DEM ) Emerging markets firms are upping their dividend game this year with the expect payouts from the 300 largest non-bank stocks in the MSCI Emerging Markets Index expected to rise to $52.2 billion $48.9 billion last year. High profitability and low corporate debt bolster the case for emerging markets dividend payers and ETFs such as DEM.
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WisdomTree Emerging Markets Equity Income Fund (NYSE: DEM ) Emerging markets firms are upping their dividend game this year with the expect payouts from the 300 largest non-bank stocks in the MSCI Emerging Markets Index expected to rise to $52.2 billion $48.9 billion last year. PIMCO paints the picture: "For example, a Latin American utility with shareholders from Europe, Asia and the Middle East unaffected by the possible U.S. tax change is unlikely to see less demand for its stock." High profitability and low corporate debt bolster the case for emerging markets dividend payers and ETFs such as DEM.
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PIMCO paints the picture: "For example, a Latin American utility with shareholders from Europe, Asia and the Middle East unaffected by the possible U.S. tax change is unlikely to see less demand for its stock." WisdomTree Emerging Markets Equity Income Fund (NYSE: DEM ) Emerging markets firms are upping their dividend game this year with the expect payouts from the 300 largest non-bank stocks in the MSCI Emerging Markets Index expected to rise to $52.2 billion $48.9 billion last year. High profitability and low corporate debt bolster the case for emerging markets dividend payers and ETFs such as DEM.
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PIMCO paints the picture: "For example, a Latin American utility with shareholders from Europe, Asia and the Middle East unaffected by the possible U.S. tax change is unlikely to see less demand for its stock." WisdomTree Emerging Markets Equity Income Fund (NYSE: DEM ) Emerging markets firms are upping their dividend game this year with the expect payouts from the 300 largest non-bank stocks in the MSCI Emerging Markets Index expected to rise to $52.2 billion $48.9 billion last year. High profitability and low corporate debt bolster the case for emerging markets dividend payers and ETFs such as DEM.
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710334d4-b2ee-4173-a96c-325cc29ab154
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727213.0
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2012-11-12 00:00:00 UTC
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VWO: Should I Stay Or Should I Go?
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DEM
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https://www.nasdaq.com/articles/vwo-should-i-stay-or-should-i-go-2012-11-12
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nan
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nan
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By Morningstar :
By Patricia Oey
Investors have poured $38 billion into Vanguard MSCI Emerging Markets ETF ( VWO ) over the past three years, making it the third-largest exchange-traded fund on the market. It is also the largest fund of any sort focusing on broad emerging-markets exposure, thanks to its very attractive price of 0.20%.
In early October, Vanguard announced that it is changing the fund's benchmark from the MSCI Emerging Markets Index to the FTSE Emerging Index, and the most significant difference between the indexes is that South Korean equities (which currently account for 15% of the fund) are not part of the FTSE Index. While investors may be concerned about the significance of this change, we think there is a more relevant question investors should be asking themselves--is a cap-weighted fund the best way to passively invest in the emerging markets?
More Than Just a Korea Conundrum
South Korean equities have a cyclical orientation, given their heavy exposure to tech (such as Samsung Electronics), consumer discretionary (such as Hyundai and Kia), and industrial firms (such as shipbuilders), many of which are major exporters to both the emerging and developed world. That said, since the FTSE Emerging Index and the MSCI Emerging Markets Index are both cap-weighted, the indexes are very similar (with the exception of South Korean equities), and the correlation in performance over the past three years has been nearly 100% (FTSE moved South Korea out of its Emerging Index in September 2009). So, for those considering moving out of VWO into a product that tracks the MSCI index, such as iShares MSCI Emerging Markets Index ( EEM ) or its new low-priced (0.18%), all-cap sibling iShares Core MSCI Emerging Markets ( IEMG ), we would say this is not necessary.
For investors willing to step away from traditional indexing methods, we suggest considering non-cap-weighted exposure to emerging markets. Many emerging-markets countries practice some form of state capitalism, and as a result, large caps tend to be government-owned entities (such as Brazil's Petrobras and Russia's Gazprom), which may place economic or political goals ahead of shareholder interests. Large caps can also be bloated organizations (such as India's Reliance Industries) whose historically protected status may be ebbing away. We also note that cap-weighted funds have low exposure to entrepreneurial companies, which tend to be smaller in size but have greater exposure to market trends such as rising consumption levels.
Informational Advantage of Dividends
We think dividend ETFs provide a more attractive exposure to emerging markets. One of the most obvious reasons for this is that dividends are clearly measurable, which is even more important in emerging markets, where accounting practices are less transparent. Dividend-oriented funds tend to have higher-quality portfolios and over the past few years have provided better risk-adjusted returns, relative to a cap-weighted exposure. Dividend funds have a heavy weighting in Taiwan (around 20%), where tax rules are very dividend-friendly. (Shareholders are allowed to offset individual income tax liabilities with corporate taxes paid on dividends received, and corporates are charged an extra tax on retained earnings.) At this time, China is Taiwan's largest trading partner, and the two are continuing to liberalize certain trade and investment restrictions--this means that an investment in Taiwanese companies provides exposure to China's growth and perhaps is a better alternative than investing in Chinese large caps.
We have long been fans of WisdomTree Emerging Markets Equity Income ( DEM ), which tracks a dividends-paid-weighted index. Over the past five years, DEM's annualized returns (to Sept. 30, 2012) of 4.0% handily beat the MSCI's negative 3.2% with significantly lower volatility, earning the fund a Morningstar Rating of 5 stars. This ETF's 12-month yield is 3.7%, and its fee is 0.63%. Another option is SPDR S&P Emerging Markets Dividend ( EDIV ), which tracks an index whose constituents are screened for earnings quality and liquidity and are weighted by dividend yield. Despite this ETF's high-yield focus and mid-cap tilt, its volatility has been in line with that of the MSCI index over the past five years and has generated five-year annualized returns of 1.9%. EDIV's 12-month yield is more than 6%, and its expense ratio is 0.59%. Investors may want to hold dividend-focused funds in tax-deferred accounts, especially if dividends will be taxed at ordinary income rates next year. That said, these funds pay out dividends net of foreign tax withholding--investors can claim a tax credit but only if the fund is held in a taxable account.
Another "fundamental" approach to passive emerging-markets investing that we like is a minimum-volatility product such as iShares MSCI Emerging Market Minimum Volatility Index (EEMV). EEMV holds a portfolio of stocks culled from the MSCI EM Index that has the lowest absolute volatility with a given set of constraints to maintain country and sector diversification and typically results in a bias toward stocks with low idiosyncratic risks. Over the past 10 years, this minimum-volatility index has provided an average 400 basis points a year of excess return relative to its parent index, on much lower volatility, even with its mid-cap tilt. And consistent with our view that dividends are a good indicator for quality in emerging markets, this ETF's index's yield of 3.6% is 70 basis points higher than that of the parent index. Interestingly, while this ETF has similar overweightings in Taiwan and telecoms like dividend ETFs (which tend to have a value tilt), this ETF has a growth tilt and not much overlap with dividend-focused funds. As such, investors can consider holding both EEMV and a dividend ETF.
Disclosure: Morningstar, Inc. licenses its indexes to institutions for a variety of reasons, including the creation of investment products and the benchmarking of existing products. When licensing indexes for the creation or benchmarking of investment products, Morningstar receives fees that are mainly based on fund assets under management. As of Sept. 30, 2012, AlphaPro Management, BlackRock Asset Management, First Asset, First Trust, Invesco, Merrill Lynch, Northern Trust, Nuveen, and Van Eck license one or more Morningstar indexes for this purpose. These investment products are not sponsored, issued, marketed, or sold by Morningstar. Morningstar does not make any representation regarding the advisability of investing in any investment product based on or benchmarked against a Morningstar index.
See also TVIX: Don't Be Left Holding The Zero on seekingalpha.com
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Over the past five years, DEM's annualized returns (to Sept. 30, 2012) of 4.0% handily beat the MSCI's negative 3.2% with significantly lower volatility, earning the fund a Morningstar Rating of 5 stars. We have long been fans of WisdomTree Emerging Markets Equity Income ( DEM ), which tracks a dividends-paid-weighted index. More Than Just a Korea Conundrum South Korean equities have a cyclical orientation, given their heavy exposure to tech (such as Samsung Electronics), consumer discretionary (such as Hyundai and Kia), and industrial firms (such as shipbuilders), many of which are major exporters to both the emerging and developed world.
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We have long been fans of WisdomTree Emerging Markets Equity Income ( DEM ), which tracks a dividends-paid-weighted index. Over the past five years, DEM's annualized returns (to Sept. 30, 2012) of 4.0% handily beat the MSCI's negative 3.2% with significantly lower volatility, earning the fund a Morningstar Rating of 5 stars. In early October, Vanguard announced that it is changing the fund's benchmark from the MSCI Emerging Markets Index to the FTSE Emerging Index, and the most significant difference between the indexes is that South Korean equities (which currently account for 15% of the fund) are not part of the FTSE Index.
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We have long been fans of WisdomTree Emerging Markets Equity Income ( DEM ), which tracks a dividends-paid-weighted index. Over the past five years, DEM's annualized returns (to Sept. 30, 2012) of 4.0% handily beat the MSCI's negative 3.2% with significantly lower volatility, earning the fund a Morningstar Rating of 5 stars. In early October, Vanguard announced that it is changing the fund's benchmark from the MSCI Emerging Markets Index to the FTSE Emerging Index, and the most significant difference between the indexes is that South Korean equities (which currently account for 15% of the fund) are not part of the FTSE Index.
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We have long been fans of WisdomTree Emerging Markets Equity Income ( DEM ), which tracks a dividends-paid-weighted index. Over the past five years, DEM's annualized returns (to Sept. 30, 2012) of 4.0% handily beat the MSCI's negative 3.2% with significantly lower volatility, earning the fund a Morningstar Rating of 5 stars. Informational Advantage of Dividends We think dividend ETFs provide a more attractive exposure to emerging markets.
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febe710e-d1d2-45fa-af4b-e0585ff422ba
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727214.0
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2012-11-07 00:00:00 UTC
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Despite Fiscal Cliff, Dividend Outlook Not All Bad
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DEM
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https://www.nasdaq.com/articles/despite-fiscal-cliff-dividend-outlook-not-all-bad-2012-11-07
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nan
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nan
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A possible reason is that U.S. stocks are sliding Wednesday is that investors now view the chances of the fiscal cliff arriving as heightened following President Obama's re-election. In the days leading up to the election, the Obama Administration promised to veto any legislation aimed at avoiding the fiscal cliff that did not include tax increases for the wealthiest Americans.
Not only could the fiscal cliff sap $600 billion in U.S. GDP and cause another recession , it is viewed as potentially damaging to dividend stocks and the ETFs that track those equities.
Conventional wisdom says that when tax rates on dividends rise, companies are less inclined to pay and increase shareholder payouts. Not surprisingly, investors view the consequences for dividend ETFs as negative.
However, the impact on payouts and dividend-paying stocks and ETFs may not be as bad as some investors are thinking, according to new research from ETF issuer WisdomTree (NASDAQ: WETF ). WisdomTree's research assumes the Obama plan to raise taxes those earning more than $250,000 per year .
At that income threshold, 52 percent of dividends would be subject to the tax increase, WisdomTree noted, citing IRS data from 2009.
"While dividend-paying investments represent the majority of the market, only about half of qualified dividends would be subject to the harshest dividend tax increases," according to the research. "If tax fears cause dividend stock prices to fall, this could make them more attractive for tax-insensitive accounts. In fact, approx. 40% of the equities held by U.S. investors are in tax-deferred retirement vehicles, and therefore, not immediately impacted by any changes in dividend tax rates."
The potential impact on dividend ETFs could be palpable. These funds have been among the most prodigious gathers of ETF assets this year. Thirty-two dividend ETFs tracked by Dorsey Wright & Associates collectively grew assets by 40 percent through the end of the third quarter compared to asset growth of 23 percent for all ETFs, according to data from that firm .
Several WisdomTree ETFs have been the beneficiaries of increase inflows to dividend ETFs. The WisdomTree Emerging Markets Equity Income Fund's (NYSE: DEM ) has more than doubled this year while inflows to other global funds such as the WisdomTree Global Equity Income Fund (NYSE: DEW ) and the WisdomTree International Div ex-Financials ETF (NYSE: DOO ) have been robust as well.
There are other factors that could work in favor of income investors even if the fiscal cliff comes to pass, including dwindling payout ratios. WisdomTree said payout ratios have been dropping for the past three decades.
"We therefore believe the impact of a tax hike is less severe than it might have been in the past because, to put it simply, firms are paying out less of their earnings as dividends," according to the research.
As WisdomTree points out, it is worth noting the dividend tax went up in 1993, but the highest-yielding stocks performed quite well from the end of 1992 through the end of 2002. Said another way, market environment is more important than the tax landscape.
Going back to November 2011, the market environment has been quite favorable to dividend ETFs. Over that time, the Vanguard Dividend Appreciation ETF (NYSE: VIG ), the SPDR S&P Dividend ETF (NYSE: SDY ), the iShares High Dividend Equity Fund (NYSE: HDV ), the WisdomTree U.S. Equity Dividend Income Fund (NYSE: DHS ) and the WisdomTree U.S. LargeCap Dividend Fund (NYSE: DLN ) have returned an average of 15.4 percent including paid dividends. All five of those ETFs have also been less volatile than the SPDR S&P 500 (NYSE: SPY ) over the same time frame.
Bottom line: A dividend tax increase will not be the best news in the world, but it may not spell disaster, either.
"For equity investors, there is little question or debate about the fact that lower dividend tax rates are preferable to higher dividend tax rates, but we hope people recognize and understand that, historically, dividend tax rates have tended to be much higher than 15% and dividend--‐paying equities have still delivered attractive returns," according to WisdomTree.
For more on dividend ETFs, click here .
(c) 2012 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The WisdomTree Emerging Markets Equity Income Fund's (NYSE: DEM ) has more than doubled this year while inflows to other global funds such as the WisdomTree Global Equity Income Fund (NYSE: DEW ) and the WisdomTree International Div ex-Financials ETF (NYSE: DOO ) have been robust as well. A possible reason is that U.S. stocks are sliding Wednesday is that investors now view the chances of the fiscal cliff arriving as heightened following President Obama's re-election. In the days leading up to the election, the Obama Administration promised to veto any legislation aimed at avoiding the fiscal cliff that did not include tax increases for the wealthiest Americans.
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The WisdomTree Emerging Markets Equity Income Fund's (NYSE: DEM ) has more than doubled this year while inflows to other global funds such as the WisdomTree Global Equity Income Fund (NYSE: DEW ) and the WisdomTree International Div ex-Financials ETF (NYSE: DOO ) have been robust as well. Over that time, the Vanguard Dividend Appreciation ETF (NYSE: VIG ), the SPDR S&P Dividend ETF (NYSE: SDY ), the iShares High Dividend Equity Fund (NYSE: HDV ), the WisdomTree U.S. Equity Dividend Income Fund (NYSE: DHS ) and the WisdomTree U.S. LargeCap Dividend Fund (NYSE: DLN ) have returned an average of 15.4 percent including paid dividends. "For equity investors, there is little question or debate about the fact that lower dividend tax rates are preferable to higher dividend tax rates, but we hope people recognize and understand that, historically, dividend tax rates have tended to be much higher than 15% and dividend--‐paying equities have still delivered attractive returns," according to WisdomTree.
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The WisdomTree Emerging Markets Equity Income Fund's (NYSE: DEM ) has more than doubled this year while inflows to other global funds such as the WisdomTree Global Equity Income Fund (NYSE: DEW ) and the WisdomTree International Div ex-Financials ETF (NYSE: DOO ) have been robust as well. Over that time, the Vanguard Dividend Appreciation ETF (NYSE: VIG ), the SPDR S&P Dividend ETF (NYSE: SDY ), the iShares High Dividend Equity Fund (NYSE: HDV ), the WisdomTree U.S. Equity Dividend Income Fund (NYSE: DHS ) and the WisdomTree U.S. LargeCap Dividend Fund (NYSE: DLN ) have returned an average of 15.4 percent including paid dividends. "For equity investors, there is little question or debate about the fact that lower dividend tax rates are preferable to higher dividend tax rates, but we hope people recognize and understand that, historically, dividend tax rates have tended to be much higher than 15% and dividend--‐paying equities have still delivered attractive returns," according to WisdomTree.
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The WisdomTree Emerging Markets Equity Income Fund's (NYSE: DEM ) has more than doubled this year while inflows to other global funds such as the WisdomTree Global Equity Income Fund (NYSE: DEW ) and the WisdomTree International Div ex-Financials ETF (NYSE: DOO ) have been robust as well. Several WisdomTree ETFs have been the beneficiaries of increase inflows to dividend ETFs. There are other factors that could work in favor of income investors even if the fiscal cliff comes to pass, including dwindling payout ratios.
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4eb0a157-15a2-47e4-b861-bc5278c68cac
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727215.0
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2012-11-06 00:00:00 UTC
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Barclays: South Korea is an Emerging Market
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DEM
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https://www.nasdaq.com/articles/barclays-south-korea-emerging-market-2012-11-06
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nan
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nan
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The ongoing debate regarding South Korea's status as a developed or developing market grew a bit on Monday when Barclays (NYSE: BCS ) announced its bond indexes will view the country as an emerging market. South Korea's status as an emerging market has long debated, particularly as the nation's wealth has grown in recent years.
Earlier this year, index provider MSCI (NYSE: MSCI ) maintained South Korea as an emerging market for its indexes, though the country remains on MSCI's list for possible promotion to developed market status .
The debate gained more steam in early October when Vanguard, the third largest U.S. ETF provider, announced it would drop the MSCI Emerging Markets Index being used as the benchmark for the Vanguard MSCI Emerging Markets ETF (NYSE: VWO ). VWO will use the FTSE Emerging Markets Index, which does not classify South Korea as a developing nation .
"Barclays EM benchmark bond indices (hard currency, local currency, and inflation-linked) will use a single consistent list of countries classified as EM when determining index eligibility. Criteria for inclusion in this list include both World Bank income group classifications and International Monetary Fund country designations. In addition, the list will include countries that bond investors generally classify as EM: South Korea, Israel, Taiwan, and Czech Republic," according to a statement issued by Barclays .
The changes will take effect in March 2013, Barclays said in the statement.
Taiwan is also on the MSCI list of countries that could make the jump to developed market status and Israel did just that several years ago.
In addition to FTSE, Standard & Poor's, the International Monetary Fund and the World Bank view South Korea as a developed nation. However, Barclays and MSCI are not alone in still classifying South Korea as emerging. Allocations to South Korea are found in several popular WisdomTree (NASDAQ: WETF ) ETFs , including the WisdomTree Emerging Markets Equity Income Fund (NYSE: DEM ).
In terms of emerging market bond ETFs that include exposure to South Korea, that list includes the following well-known ETFs: The WisdomTree Emerging Markets Local Debt Fund (NYSE: ELD ), the WisdomTree Emerging Markets Corporate Bond Fund (NASDAQ: EMCB ) and the iShares Emerging Markets Local Currency Bond Fund (NYSE: LEMB ).
For more on ETFs, click here .
(c) 2012 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Allocations to South Korea are found in several popular WisdomTree (NASDAQ: WETF ) ETFs , including the WisdomTree Emerging Markets Equity Income Fund (NYSE: DEM ). Criteria for inclusion in this list include both World Bank income group classifications and International Monetary Fund country designations. In addition, the list will include countries that bond investors generally classify as EM: South Korea, Israel, Taiwan, and Czech Republic," according to a statement issued by Barclays .
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Allocations to South Korea are found in several popular WisdomTree (NASDAQ: WETF ) ETFs , including the WisdomTree Emerging Markets Equity Income Fund (NYSE: DEM ). Earlier this year, index provider MSCI (NYSE: MSCI ) maintained South Korea as an emerging market for its indexes, though the country remains on MSCI's list for possible promotion to developed market status . In terms of emerging market bond ETFs that include exposure to South Korea, that list includes the following well-known ETFs: The WisdomTree Emerging Markets Local Debt Fund (NYSE: ELD ), the WisdomTree Emerging Markets Corporate Bond Fund (NASDAQ: EMCB ) and the iShares Emerging Markets Local Currency Bond Fund (NYSE: LEMB ).
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Allocations to South Korea are found in several popular WisdomTree (NASDAQ: WETF ) ETFs , including the WisdomTree Emerging Markets Equity Income Fund (NYSE: DEM ). The ongoing debate regarding South Korea's status as a developed or developing market grew a bit on Monday when Barclays (NYSE: BCS ) announced its bond indexes will view the country as an emerging market. Earlier this year, index provider MSCI (NYSE: MSCI ) maintained South Korea as an emerging market for its indexes, though the country remains on MSCI's list for possible promotion to developed market status .
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Allocations to South Korea are found in several popular WisdomTree (NASDAQ: WETF ) ETFs , including the WisdomTree Emerging Markets Equity Income Fund (NYSE: DEM ). The ongoing debate regarding South Korea's status as a developed or developing market grew a bit on Monday when Barclays (NYSE: BCS ) announced its bond indexes will view the country as an emerging market. However, Barclays and MSCI are not alone in still classifying South Korea as emerging.
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9cd2d78a-d218-471f-9870-2f44f3b53166
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727216.0
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2012-10-24 00:00:00 UTC
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Reminder: Dividend ETFs Are Long-Term Investments
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DEM
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https://www.nasdaq.com/articles/reminder-dividend-etfs-are-long-term-investments-2012-10-24
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nan
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nan
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Since the financial crisis, investors have frequently heard that buy-and-hold investing is dead. At the same time, dividends have taken on increased importance in portfolios. Simple math dictates that in order for investors to gain the maximum benefit from dividend stocks and ETFs, those vehicles cannot be traded as short-term trades.
The performance of several marquee dividend ETFs this year reminds investors that these funds, and the stocks held by them, are most potent over longer time horizons. This is the reality of plenty of noteworthy dividend ETFs in 2012: Many are seeing impressive inflows , but are still lagging broader market funds. That is the case even when accounting for dividends paid.
All this while the amount of dividends on a monthly basis set a record at $34 billion in August .
Even some ETFs tracking sectors known for being home to prodigious dividend payers have had problems significantly outpacing the SPDR S&P 500 (NYSE: SPY ). The Health Care Selector Sector SPDR (NYSE: XLV ) and the iShares Dow Jones U.S. Telecommunications Sector Index Fund (NYSE: IYZ ) have outpaced SPY by 300 and 420 basis points, respectively, when accounting for paid dividends. Conversely, the Consumer Staples Select Sector SPDR (NYSE: XLP ) trails SPY by 360 basis points year-to-date and the Utilities Select Sector SPDR (NYSE: XLU ) is behind SPY by 950 basis points.
Not Just Sector Funds Sector funds known for being home to solid dividends and decent yields are not the only dividend-based ETFs trailing the broader market this year. More importantly, it is those funds with "dividend" in the names that are relative laggards.
Take the example of the Vanguard Dividend Appreciation ETF (NYSE: VIG ), the largest dividend ETF by assets. VIG is up nine percent this year with dividends paid, but to get that return, investors have had to deal with 11.5 percent volatility, according to ETF Replay data . SPY has offered 540 basis points more in return with just another 120 basis points in volatility.
It is not fair to solely pick on VIG, though. The average year-to-date return for the SPDR S&P Dividend ETF (NYSE: SDY ), the iShares High Dividend Equity Index Fund (NYSE: HDV ) and the Schwab Dow Jones U.S. Dividend Equity ETF (NYSE: SCHD ) is 10.7 percent.
The reminder that ETFs such as these are long-term plays comes when looking at the three-year returns against SPY. In this case, HDV and SCHD were dropped because neither is three-years-old and the WisdomTree Total Dividend Fund (NYSE: DTD ) was added. Since October 23, 2009, DTD, SDY and VIG are up an average of 41.7 percent with dividends paid. That tops the S&P 500 by 270 basis points and all three ETFs have been less volatile than SPY over that time.
Sectors Winning In 2012 Matching up four select sector SPDRs and IYZ against the aforementioned dividend funds on a year-to-date basis proves interesting as well. The four SPDRs chosen were XLP, XLV, the Financial Services Select Sector SPDR (NYSE: XLF ) and the Technology Select SPDR (NYSE: XLK ). XLF and XLK were chosen because the sectors tracked by the ETFs have been the primary drivers of dividend growth in the U.S. this year . Technology and financial services are also the largest sector weights in the S&P 500.
Given VIG's low weights to financials and technology (just over six percent in both cases), it is not surprising XLF has blown that fund away this year. However, XLF is up 23.3 percent year-to-date, meaning it trounces a lot of ETFs out there.
Again, it is not fair to pick on just VIG. Neither, HDV nor SCHD have anything more than scant allocations to financials and technology issues and that is a large part of the reason these ETFs have lagged XLF and XLF.
Emerging Markets, Too Emerging markets are getting on the dividend action, too. Earlier this year, UBS said the 300 largest non-financial firms in the MSCI Emerging Markets Index are expected to pay $52.2 billion in dividends in 2012, up from $48.9 billion last year .
That is solid growth on a year-over-year basis, but the numbers indicate the emerging markets dividend theme will take a while to mature. Translation: Emerging markets dividend ETFs are long-term investments, too, and that much is highlighted by the year-to-date returns.
Take the WisdomTree Emerging Markets Equity Income Fund (NYSE: DEM ), an ETF that has more than doubled in size this year . When accounting for paid dividends, DEM has lagged the Vanguard MSCI Emerging Markets ETF (NYSE: VWO ) by 240 basis year-to-date, according to ETF Replay data .
The same trend is spotted at the small-cap level where the WisdomTree Emerging Markets SmallCap Dividend Fund (NYSE: DGS ) has lagged the SPDR S&P Emerging Markets Small Cap ETF (NYSE: EWX ) by a wide margin this year.
As is the case with U.S.-focused dividend ETFs, stretch the time frame out for emerging markets dividend ETFs and the result is superior returns. Over the past 36 months, DEM and DGS are up 22.4 percent and 22.8, respectively. VWO and EWX are up 9.2 percent and 6.3 percent. DEM and DGS have also been less volatile over that time than VWO and EWX.
For more on dividend ETFs, click here .
(c) 2012 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Take the WisdomTree Emerging Markets Equity Income Fund (NYSE: DEM ), an ETF that has more than doubled in size this year . When accounting for paid dividends, DEM has lagged the Vanguard MSCI Emerging Markets ETF (NYSE: VWO ) by 240 basis year-to-date, according to ETF Replay data . Over the past 36 months, DEM and DGS are up 22.4 percent and 22.8, respectively.
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Take the WisdomTree Emerging Markets Equity Income Fund (NYSE: DEM ), an ETF that has more than doubled in size this year . When accounting for paid dividends, DEM has lagged the Vanguard MSCI Emerging Markets ETF (NYSE: VWO ) by 240 basis year-to-date, according to ETF Replay data . Over the past 36 months, DEM and DGS are up 22.4 percent and 22.8, respectively.
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When accounting for paid dividends, DEM has lagged the Vanguard MSCI Emerging Markets ETF (NYSE: VWO ) by 240 basis year-to-date, according to ETF Replay data . Take the WisdomTree Emerging Markets Equity Income Fund (NYSE: DEM ), an ETF that has more than doubled in size this year . Over the past 36 months, DEM and DGS are up 22.4 percent and 22.8, respectively.
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When accounting for paid dividends, DEM has lagged the Vanguard MSCI Emerging Markets ETF (NYSE: VWO ) by 240 basis year-to-date, according to ETF Replay data . Take the WisdomTree Emerging Markets Equity Income Fund (NYSE: DEM ), an ETF that has more than doubled in size this year . Over the past 36 months, DEM and DGS are up 22.4 percent and 22.8, respectively.
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901051c9-8c0d-45be-bebb-c94e6f3aa570
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727217.0
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2012-10-03 00:00:00 UTC
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Seeing Beyond VWO And Its New FTSE Index
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DEM
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https://www.nasdaq.com/articles/seeing-beyond-vwo-and-its-new-ftse-index-2012-10-03
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nan
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nan
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When I heard about the $57 billion Vanguard MSCI Emerging Markets ETF (NYSEArca:VWO) dropping the MSCI Emerging Markets Index for the FTSE Emerging Index, my first thoughts were favorable.
That's mostly because I've questioned for some time South Korea's "emerging" status in MSCI's index.
That said, the coming changes aren't enough to alter my tune about VWO or, for that matter, the iShares MSCI Emerging Markets Index Fund (NYSEArca:EEM).
I've always thought comparing VWO and EEM was like comparing two identical apples with simply different stem lengths. They track the same index and, for the retail investor, VWO probably made more sense simply because it's so much cheaper than EEM.
I think I've made it clear in recent blogs that I'm not exactly a fan of either VWO or EEM. While EEM was certainly the fund to own over the past decade-VWO didn't launch until 2005-I think there are now better emerging markets ETF options with more potential for the next decade.
Still, VWO and EEM are the third- and fourth-largest ETFs in the world, and Vanguard's switch to FTSE comes with some serious material differences that should be discussed.
There's a lot to cover here, so I'm going to point out the main differences most relevant to the retail investor that will separate the new VWO from EEM.
Country Exposure
FTSE's "developed" classification of South Korea is by far the biggest difference here. Not only did FTSE upgrade South Korea to "developed" status three years ago, S&P long ago upgraded South Korea to classify it as a developed market as well.
MSCI still classifies South Korea as "emerging," which is why the country has about a 15 percent weighting in EEM and the current VWO. But once VWO switches over to the new FTSE index, the 15 percent weighting will be reallocated to the remaining countries in the index. (Thankfully, that transition will take place gradually.)
Looking ahead, it's worth noting that MSCI currently has South Korea and Taiwan on its watch list for possible upgrades to "developed" status. Should that happen, which seems inevitable, both of those countries would eventually leave EEM.
Meanwhile, MSCI has Greece on a watch list to be downgraded to emerging, meaning EEM investors might see some Greek companies in their fund in the coming years. Qatar and UAE are on watch to be upgraded from frontier to emerging, so those two gulf states might appear in EEM as well.
On the FTSE side, like MSCI, Taiwan is on watch to be upgraded to developed-country status and Greece is also on watch to be downgraded to emerging.
But that's where the similarities in their watch lists end.
FTSE has Poland on watch for upgrade to a developed market and Kuwait to be upgraded to emerging, meaning investors who hold on to VWO through the transition might see Polish companies taken out and Kuwaiti companies added.
Company Exposure
The exclusion of South Korea would inevitably mean investors in the new VWO would lose exposure to Korean mega-caps like Samsung, Hyundai, Posco and Kia.
But beyond South Korean firms, exposure to certain Chinese companies classified as P-chips might also be lost. P-chips are nonstate-owned Chinese companies incorporated outside of the mainland, most often in certain foreign jurisdictions (Cayman Islands) and traded in Hong Kong.
While MSCI includes P-chips in its indexes, FTSE currently classifies P-chips as Hong Kong companies, meaning they're excluded from the FTSE Emerging Index.
VWO may lose exposure to some significant P-chips like Tencent Holdings, Want Want China and Belle International.
It's worth noting that FTSE recently announced a reclassification of P-chips to China, so beginning in March 2013, P-chips will be reviewed for possible inclusion into the FTSE Emerging Index.
Cost Wars And Schwab's SCHE
Interestingly, the $515 million Schwab Emerging Markets Equity ETF (NYSEArca:SCHE), which also tracks the same FTSE index that VWO will track, made headlines last month when Schwab cut the expense ratio on the fund by 25 percent to 0.15 percent, undercutting VWO by 5 basis points.
The timing was quite interesting. VWO has been taking significant market share away from EEM for years, mostly due to its much lower expense ratio.
Now, only two weeks after SCHE's fee-cut announcement, it looks like VWO is looking to slash again, as much of this index change was attributed to lowering costs.
My guess is that VWO will be cutting its expense ratio again-probably after the transition to the FTSE index is complete. I'd guess that VWO's new price might match or even undercut SCHE's 0.15 percent.
Final Takeaway
To put all this into context, my guess is that to the average investor, these changes will mean very little, notwithstanding some big differences in country exposure.
When all is said and done, I expect to see VWO and EEM still being the No. 3 and No. 4 ETFs by assets for a while.
Still, to me, the real question is, Why invest in VWO or EEM?
Even excluding the South Korea factor, both indexes are heavily weighted in China, Brazil, Taiwan and South Africa. As these countries rapidly developed over the past decade, the funds' correlations in returns to the broad equity markets have also spiked.
Smaller Is Better
I think it's starting to make more sense to look at smaller emerging markets and even some frontier markets poised for higher growth in the next decade.
For example, ETFs such as the new EGShares Beyond BRICs ETF (NYSEArca:BBRC) as well as country-specific ETFs focused on countries like Turkey, Poland, Indonesia, Thailand and the Philippines look promising.
If you're looking at the frontier space and willing to take on the extra risk, the iShares MSCI Frontier 100 Index Fund (NYSEArca:FM) also looks promising.
Or, if you want to stay with the BRICs, the dividend-weighted WisdomTree Emerging Markets Equity Income Fund (NYSEArca:DEM) has also done well compared with EEM and VWO.
More broadly, how much do the MSCI and FTSE emerging markets indexes really differ when it comes to returns? Over the past three years-a good time period to look at because FTSE upgraded South Korea to "emerging" in 2009-they barely look different.
Don't forget to check IndexUniverse.com's ETF Data section.
Copyright ® 2012 IndexUniverse LLC . All Rights Reserved.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Or, if you want to stay with the BRICs, the dividend-weighted WisdomTree Emerging Markets Equity Income Fund (NYSEArca:DEM) has also done well compared with EEM and VWO. That said, the coming changes aren't enough to alter my tune about VWO or, for that matter, the iShares MSCI Emerging Markets Index Fund (NYSEArca:EEM). Meanwhile, MSCI has Greece on a watch list to be downgraded to emerging, meaning EEM investors might see some Greek companies in their fund in the coming years.
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Or, if you want to stay with the BRICs, the dividend-weighted WisdomTree Emerging Markets Equity Income Fund (NYSEArca:DEM) has also done well compared with EEM and VWO. When I heard about the $57 billion Vanguard MSCI Emerging Markets ETF (NYSEArca:VWO) dropping the MSCI Emerging Markets Index for the FTSE Emerging Index, my first thoughts were favorable. Not only did FTSE upgrade South Korea to "developed" status three years ago, S&P long ago upgraded South Korea to classify it as a developed market as well.
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Or, if you want to stay with the BRICs, the dividend-weighted WisdomTree Emerging Markets Equity Income Fund (NYSEArca:DEM) has also done well compared with EEM and VWO. When I heard about the $57 billion Vanguard MSCI Emerging Markets ETF (NYSEArca:VWO) dropping the MSCI Emerging Markets Index for the FTSE Emerging Index, my first thoughts were favorable. FTSE has Poland on watch for upgrade to a developed market and Kuwait to be upgraded to emerging, meaning investors who hold on to VWO through the transition might see Polish companies taken out and Kuwaiti companies added.
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Or, if you want to stay with the BRICs, the dividend-weighted WisdomTree Emerging Markets Equity Income Fund (NYSEArca:DEM) has also done well compared with EEM and VWO. When I heard about the $57 billion Vanguard MSCI Emerging Markets ETF (NYSEArca:VWO) dropping the MSCI Emerging Markets Index for the FTSE Emerging Index, my first thoughts were favorable. Country Exposure FTSE's "developed" classification of South Korea is by far the biggest difference here.
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87a794b9-b65d-4d09-a8f2-620fe109fdc9
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727218.0
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2012-07-27 00:00:00 UTC
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WisdomTree Income Drops On Proxy Costs
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DEM
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https://www.nasdaq.com/articles/wisdomtree-income-drops-proxy-costs-2012-07-27
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nan
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nan
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(A previous version of this story misstated the effects of WisdomTree's litigation with Research Affiliates. Its litigation costs are covered by insurance, and company officials said its deductible on that coverage counted against previous quarterly results. We regret the inaccuracy.)
WisdomTree, the only pure ETF company whose shares trade publicly, posted an 85 percent drop in second-quarter earnings-a figure that included costs related to shareholder proxies. But its litigation with Research Affiliates over fundamental indexes was not a factor, and the company emphasized that its dividend-focused funds were resonating with investors.
The company said net income dropped to $100,000 from $700,000 in the same year-earlier period. Assets under management rose 16 percent from a year earlier to just over $15 billion, the New York-based company said in a press release on Friday. However, its assets dropped 4 percent from the end of the first quarter due to $1 billion in market declines that offset inflows.
The net figure reflects costs related to its suit with Research Affliates, which sued WisdomTree for patent infringement. WisdomTree said legal costs have totaled $1.6 million, but $1.5 million of that is qualified for insurance coverage. It has a $300,000 deductible that counted against previous quarterly results. It listed second-quarter litigation fees at $821,000, but said insurance reimbursement was a bit more than $1 million.
The bigger expense that helped pulled its resutlts down--nearly $3.2 million--was related to ongoing previously disclosed shareholder proxies. The costs of three different shareholder votes, which relate to various changes to all the company's 48 existing ETFs, are reflected in the second-quarter results.
Apart from a press release Rob Arnott's Research Affliliates circulated when it filed the lawsuit last autumn, neither side has commented on the proceedings.
Still, the suit is topical to the extent that WisdomTree said today it believes its version of fundamentally weighted index funds is behind the outperformance of some of WisdomTree ETFs. Arnott's firm claims that WisdomTree's version borrows from the RAFI methodology Research Affiliates pioneered.
'WisdomTree gathered $338 million predominantly in our dividend based strategies in a difficult market environment where, at an industry level, net inflows were almost entirely concentrated in domestic fixed income," the company's chief executive Jonathan Steinberg said in the press release.
One of those successful funds, the WisdomTree Emerging Markets Equity Income Fund (NYSEArca:DEM), has $3.73 billion and attracted more than $500 million in fresh assets during the second quarter, according to data compiled by IndexUniverse.
Trumpeting Outperformance
On an operating basis, without those fees that dragged its net income lower, WisdomTree said it earned $3.1 million compared with $800,000 in the 2011 second quarter. Total revenues rose 22 percent to $20.39 billion.
"While this market cycle was challenging for our product set, our ability to buck the trend in equities demonstrates our strategies are differentiated and desirable," Steinberg said.
More to the point, Steinberg noted that the company's fundamentally weighted ETFs that screen stocks for variables like dividends are building track records of strong performance. He said 24 of its 34 equity ETFs outperformed their capitalization weighted or competitive benchmarks from their inceptions through the end of the second quarter.
"I believe this powerful performance story will be an important driver of future growth," Steinberg said.
About a year ago, WisdomTree changed its stock's listing to the Nasdaq from the over-the-counter "Pink Sheets," a shift the company said reflected its growth and represented a new chapter in its history. Its shares trade on Nasdaq under the symbol "WETF."
WisdomTree's shares opened about 2 percent higher and were changing hands at $6.57 a share early in the trading session. That move was more than the broad U.S. market. The S&P 500, for example, was up 0.46 percent at 1.366.24.
Permalink | 'copy; Copyright 2009 IndexUniverse LLC. All rights reserved
Don't forget to check IndexUniverse.com's ETF Data section.
Copyright ® 2012 IndexUniverse LLC . All Rights Reserved.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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One of those successful funds, the WisdomTree Emerging Markets Equity Income Fund (NYSEArca:DEM), has $3.73 billion and attracted more than $500 million in fresh assets during the second quarter, according to data compiled by IndexUniverse. "While this market cycle was challenging for our product set, our ability to buck the trend in equities demonstrates our strategies are differentiated and desirable," Steinberg said. WisdomTree, the only pure ETF company whose shares trade publicly, posted an 85 percent drop in second-quarter earnings-a figure that included costs related to shareholder proxies.
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One of those successful funds, the WisdomTree Emerging Markets Equity Income Fund (NYSEArca:DEM), has $3.73 billion and attracted more than $500 million in fresh assets during the second quarter, according to data compiled by IndexUniverse. "While this market cycle was challenging for our product set, our ability to buck the trend in equities demonstrates our strategies are differentiated and desirable," Steinberg said. Its litigation costs are covered by insurance, and company officials said its deductible on that coverage counted against previous quarterly results.
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One of those successful funds, the WisdomTree Emerging Markets Equity Income Fund (NYSEArca:DEM), has $3.73 billion and attracted more than $500 million in fresh assets during the second quarter, according to data compiled by IndexUniverse. "While this market cycle was challenging for our product set, our ability to buck the trend in equities demonstrates our strategies are differentiated and desirable," Steinberg said. WisdomTree, the only pure ETF company whose shares trade publicly, posted an 85 percent drop in second-quarter earnings-a figure that included costs related to shareholder proxies.
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One of those successful funds, the WisdomTree Emerging Markets Equity Income Fund (NYSEArca:DEM), has $3.73 billion and attracted more than $500 million in fresh assets during the second quarter, according to data compiled by IndexUniverse. "While this market cycle was challenging for our product set, our ability to buck the trend in equities demonstrates our strategies are differentiated and desirable," Steinberg said. WisdomTree, the only pure ETF company whose shares trade publicly, posted an 85 percent drop in second-quarter earnings-a figure that included costs related to shareholder proxies.
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a39a3f72-a7be-4724-a223-269e1d61e2a1
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727219.0
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2012-07-03 00:00:00 UTC
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The Definitive ASEAN ETF Guide
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DEM
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https://www.nasdaq.com/articles/definitive-asean-etf-guide-2012-07-03
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nan
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nan
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The Association of Southeast Asian Nations, or ASEAN, is more than just another catchy investment acronym. ASEAN encompasses an alluring mix of 10 nations including one developed market (Singapore), several familiar emerging economies, a frontier market and some markets that are downright hard for U.S. investors to access.
The 10 ASEAN member states are as follows: Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam. Some ASEAN constituents have already found their way into other well-known acronyms. For example, Indonesia and Vietnam are members of CIVETS while the Philippines and Thailand have found a home in the underrated CAPPT acronym .
At is core, the ASEAN region is the epitome of a profit/peril conundrum. Even amid a slowing global economy, the ASEAN member states offer some of the best GDP growth rates in the world. The downside is several of these countries are next to impossible for U.S. investors to gain direct exposure to or are home to red flags such as corruption and under-developed banking and legal systems.
The rewards are there to be had with ASEAN, but use this guide to invest in the region the right way.
Global X FTSE ASEAN 40 ETF (NYSE: ASEA ) Now 26-months-old, the Global X FTSE ASEAN 40 ETF remains an under-appreciated ETF. Not only is it one of the few noteworthy multi-country ETFs tracking Asian nations that does not feature exposure to China, Taiwan or South Korea, the fund is the only ETF devoted exclusively to ASEAN member states.
That said, ASEA is a play on just five ASEAN countries - Singapore, Malaysia, Indonesia, Thailand and the Philippines, but the fund's weight to the Philippines is less than one percent. ASEA tempers its emerging markets flare with a 37.2 percent weight to Singapore, a developed market. One critique: It would be nice to see ASEA raise its allocations to Thailand and the Philippines, which combine for just over 12 percent of the fund's total weight.
iShares MSCI Singapore Index Fund (NYSE: EWS ) As one of the few developed markets in a region littered with emerging economies, Singapore is often viewed as the beacon of stability in the ASEAN lineup. EWS features an allocation of 47 percent to financials, which might scare off some investors in this market environment. However, Singapore is one of the financial centers of the world.
The city-state not only receives more financial foreign investment than any other major financial center in the world, it receives more than New York, London, Frankfurt and Switzerland....combined, according to AlphaVN.com .
That is a telling anecdote and one that underscores the notion that Singapore is a viable developed market alternative to the U.S. and Europe. Also consider the Shares MSCI Singapore Small Cap Index Fund (NYSE: EWSS ), which debuted in January.
Market Vectors Indonesia ETF (NYSE: IDX )
For all of 2012, Indonesia has been an emerging markets laggard and that much is highlighted by the fact that IDX, the largest of three Indonesia ETFs, is down nearly 3.7 percent year-to-date while the Vanguard MSCI Emerging Markets ETF (NYSE: VWO ) is higher by 4.6 percent.
That glum performance aside, IDX has been one of the best performing ETFs since the March 2009 market bottom and it pays to remember that Indonesia is Southeast Asia's largest economy. Indonesia's economy grew at 6.3 percent in the first quarter. While that may be the country's most sluggish pace in six quarters, foreign direct investment surged 30 percent, Reuters reported .
Investors have a tendency to forget that Indonesia is a young democracy and that it is still moving toward enhanced transparency and increased adaptation of free market ideals. The long-term outlook is strong. Also consider the iShares MSCI Indonesia Investable Market Index Fund (NYSE: EIDO ) and the newly minted Market Vectors Indonesia Small-Cap ETF (NYSE: IDXJ ).
iShares MSCI Malaysia Index Fund (NYSE: EWM ) The iShares MSCI Malaysia Index Fund has not been as exciting as some other ETFs tracking ASEAN nations, but it has also outperformed IDX as well as the major ETFs tracking non-ASEAN nations such as China, South Korea and Taiwan.
Driven by strong domestic demand, Malaysia expects solid GDP growth in the second half of this year and it is worth noting country is a marginal oil exporter. It is also worth noting that Malaysia has been the top IPO destination in Asia this year .
That trend probably will not last year, but it does highlight the strength in Malaysian equities relative to larger Asian markets this year.
iShares MSCI Philippines Investable Market Index Fund (NYSE: EPHE ) The iShares MSCI Philippines Investable Market Index Fund was one of the top-performing non-leveraged ETFs in the first half of the year . That is not surprising for those investors that have been savvy enough to get acquainted with the Philippines over the past year.
EPHE trades at a premium to the broader emerging markets universe, but the fund is worthy of a valuation that some may consider lofty. There are real catalysts that make EPHE and the Philippines worth embracing. A current debt-to-GDP ratio of around 50%. Controlled inflation relative to many other emerging markets. Of course, there is the World Bank GDP growth forecast of 4.2% this year and 5% in 2013.
Investors also cannot ignore the fact that that Philippines improving economic and political situations put the country in prime position for an upgrade to its sovereign credit ratings.
The Philippines also provides an indirect way for investors to gain exposure, albeit small for the moment, to Cambodia. For long-term investors, the good news/bad news scenario is that the Philippines is still heavily impoverished with one of the lowest per capita GDP ratios in the world. That is bad news on the surface, but the statistic also implies that with the benefit of a sound fiscal situation, the Philippine government can invest in avenues to reduce poverty.
iShares MSCI Thailand Investable Market Index Fund (NYSE: THD ) THD has been one of the best-performing ETFs since the March 2009 market bottom and despite some political issues of its own in 2010, Thailand is now one of the more politically stable countries in Southeast Asia. The country shares borders with Cambodia and Myanmar, meaning investors can grab some access (again, small and indirect) to those markets.
Broadly speaking, there is a lot to like with Thailand, Southeast Asia's second-largest economy behind Indonesia. GDP growth is expected to be in the neighborhood of 5.2 percent to 6.2 percent this year and inflation is tolerable.
However, there is a bear case regarding Thailand. A senior economist at the Thailand Development Research Institute said on Monday the populist policies of the Pheu Thai Party could set Thailand on a to a Greece-like collapse in "no less than 10 years .
That is a bold proclamation and one that may be colored by the economist possibly supporting ousted premier Thaksin Shinawatra's Thai Rak Thai party. For now, Thailand looks nothing like Greece, but despite a solid economic track record as of late and immense potential going forward, Thailand does need to address rising unemployment among its young people.
Market Vectors Vietnam ETF (NYSE: VNM ) The Market Vectors Vietnam ETF was one of the best-performing non-leveraged ETFs during the first quarter, but the fund gave back some of the gains with a 5.8 percent second-quarter decline. That performance speaks to the fact Vietnam is a frontier market, implying risk here is higher than with a traditional emerging market.
VNM's recent woes also underscore slowing economic growth at the hand's slack bank lending, the byproduct of woefully high inflation seen in recent years. Still, Vietnam's economy grew 4.7 percent in the second quarter and inflation has been tamed to the point where the central bank has lowered the refinancing and discount rates in an effort to spur bolster domestic growth.
The bull case for VNM and exists in the form of compelling valuations for Vietnamese equities and the expectation that those stocks will surge through 2013.
Vietnam is a small equity market with a total market capitalization of around $40 billion. Vietnamese banks are flush with excess cash and foreign direct investment has ample room to grow , indicating VNM's best days may be forthcoming.
Investors should note there are other multi-country ETFs on the market that offer exposure to some ASEAN nations. Those funds include the EGShares Low Volatility Emerging Markets Dividend ETF (NYSE: HILO ), the WisdomTree Emerging Markets SmallCap Dividend Fund (NYSE: DGS ), the WisdomTree Emerging Markets Equity Income Fund (NYSE: DEM ), the EGShares Industrials GEMS ETF (NYSE: IGEM ), the SPDR S&P Small Cap Emerging Asia Pacific ETF (NYSE: GMFS ), the SPDR S&P Emerging Asia Pacific ETF (NYSE: GMF ), the iShares Emerging Markets Dividend Index Fund (NYSE: DVYE ) and the iShares MSCI Emerging Markets Minimum Volatility Index Fund (NYSE: EEMV ), among others.
(c) 2012 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Driven by strong domestic demand, Malaysia expects solid GDP growth in the second half of this year and it is worth noting country is a marginal oil exporter. Investors have a tendency to forget that Indonesia is a young democracy and that it is still moving toward enhanced transparency and increased adaptation of free market ideals. Those funds include the EGShares Low Volatility Emerging Markets Dividend ETF (NYSE: HILO ), the WisdomTree Emerging Markets SmallCap Dividend Fund (NYSE: DGS ), the WisdomTree Emerging Markets Equity Income Fund (NYSE: DEM ), the EGShares Industrials GEMS ETF (NYSE: IGEM ), the SPDR S&P Small Cap Emerging Asia Pacific ETF (NYSE: GMFS ), the SPDR S&P Emerging Asia Pacific ETF (NYSE: GMF ), the iShares Emerging Markets Dividend Index Fund (NYSE: DVYE ) and the iShares MSCI Emerging Markets Minimum Volatility Index Fund (NYSE: EEMV ), among others.
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Those funds include the EGShares Low Volatility Emerging Markets Dividend ETF (NYSE: HILO ), the WisdomTree Emerging Markets SmallCap Dividend Fund (NYSE: DGS ), the WisdomTree Emerging Markets Equity Income Fund (NYSE: DEM ), the EGShares Industrials GEMS ETF (NYSE: IGEM ), the SPDR S&P Small Cap Emerging Asia Pacific ETF (NYSE: GMFS ), the SPDR S&P Emerging Asia Pacific ETF (NYSE: GMF ), the iShares Emerging Markets Dividend Index Fund (NYSE: DVYE ) and the iShares MSCI Emerging Markets Minimum Volatility Index Fund (NYSE: EEMV ), among others. Investors have a tendency to forget that Indonesia is a young democracy and that it is still moving toward enhanced transparency and increased adaptation of free market ideals. Driven by strong domestic demand, Malaysia expects solid GDP growth in the second half of this year and it is worth noting country is a marginal oil exporter.
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Those funds include the EGShares Low Volatility Emerging Markets Dividend ETF (NYSE: HILO ), the WisdomTree Emerging Markets SmallCap Dividend Fund (NYSE: DGS ), the WisdomTree Emerging Markets Equity Income Fund (NYSE: DEM ), the EGShares Industrials GEMS ETF (NYSE: IGEM ), the SPDR S&P Small Cap Emerging Asia Pacific ETF (NYSE: GMFS ), the SPDR S&P Emerging Asia Pacific ETF (NYSE: GMF ), the iShares Emerging Markets Dividend Index Fund (NYSE: DVYE ) and the iShares MSCI Emerging Markets Minimum Volatility Index Fund (NYSE: EEMV ), among others. Investors have a tendency to forget that Indonesia is a young democracy and that it is still moving toward enhanced transparency and increased adaptation of free market ideals. Driven by strong domestic demand, Malaysia expects solid GDP growth in the second half of this year and it is worth noting country is a marginal oil exporter.
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Investors have a tendency to forget that Indonesia is a young democracy and that it is still moving toward enhanced transparency and increased adaptation of free market ideals. Driven by strong domestic demand, Malaysia expects solid GDP growth in the second half of this year and it is worth noting country is a marginal oil exporter. Those funds include the EGShares Low Volatility Emerging Markets Dividend ETF (NYSE: HILO ), the WisdomTree Emerging Markets SmallCap Dividend Fund (NYSE: DGS ), the WisdomTree Emerging Markets Equity Income Fund (NYSE: DEM ), the EGShares Industrials GEMS ETF (NYSE: IGEM ), the SPDR S&P Small Cap Emerging Asia Pacific ETF (NYSE: GMFS ), the SPDR S&P Emerging Asia Pacific ETF (NYSE: GMF ), the iShares Emerging Markets Dividend Index Fund (NYSE: DVYE ) and the iShares MSCI Emerging Markets Minimum Volatility Index Fund (NYSE: EEMV ), among others.
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d16c0e17-d024-4070-9355-e3323f811363
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727220.0
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2012-07-02 00:00:00 UTC
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Small-Cap Corner: Buying The ETF Issuer
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DEM
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https://www.nasdaq.com/articles/small-cap-corner-buying-etf-issuer-2012-07-02
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nan
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nan
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The exchange-traded products industry has grown to include nearly 1,500 ETFs and ETNs with almost $1.2 trillion in assets under management (those are just the U.S. numbers), and investors have understandably focused on which ETFs generate profitable trading ideas.
Said another way, many investors overlook the fact that some of the ETF industry's biggest players are units of large, publicly-traded financial services firms. It is possible for investors to profit from the ETF industry's exponential growth without actually owning a single ETF. This objective can be accomplished by owning the stocks of ETF issuers.
There are several such stocks, but just one that can be considered a pure-play ETF sponsor: WisdomTree Investments (NASDAQ: WETF ). WisdomTree's ascent up the financial services food chain has mirrored the growth of the ETF business at large. Later this month, the company will celebrate its first anniversary as a Nasdaq-listed stock. Prior to that, New York-based WisdomTree traded on the pink sheets.
With a market value of just over $827 million, WisdomTree is by definition a small-cap stock. In the ETF universe, however, WisdomTree is far from small. The company, which sponsors 48 ETFs, had $14.95 billion in assets under management at the end of June, according to data from the ETF Industry Association. That makes WisdomTree the seventh-largest U.S. ETF sponsor as ranked by AUM.
Year-over-year, WisdomTree's ETF assets have jumped 16 percent, an increase that compares quite favorably to the two percent and 12 percent increases posted by BlackRock's (NYSE: BLK ) iShares and State Street's (NYSE: STT ), State Street Global Advisors. iShares and SSgA are the two largest U.S. ETF sponsors.
The impact on shares of WisdomTree is palpable. Compare WisdomTree against four other publicy traded ETF sponsors - BlackRock, State Street, Invesco (NYSE: IVZ ) and Charles Schwab (NYSE: SCHW ) - and the results are impressive. Year-to-date, only Schwab has delivered better returns than WisdomTree.
Shares of WisdomTree are up almost 13 percent this year, and some analysts see more upside. The stock closed below $7 on Monday, but last week Goldman Sachs initiated coverage of WisdomTree with a Buy rating and a $9 price target.
In the note, Goldman Sachs stated, "We view WETF as a rarity in financials: A growth stock with ample runway for 30%+ revenue and EBIT growth amid 20% annual industry growth in ETF assets. We believe investors underappreciate and undervalue: (1) the firm's sector-leading organic growth profile, driven by differentiated "nontraditional" ETFs; (2) the scalability of WETF's model and powerful margin expansion potential; and (3) the scarcity value in owning the only public pure-play ETF manager ($15bn in AuM), with a valuable asset in exemptive relief for active ETFs."
The Goldman Sachs note also points out that WisdomTree could be a takeover target .
A bearish scenario for WisdomTree exists in the potential for the ETF industry to see its growth stall and lose assets to rival products. Another possible, though not likely, problem would be a dramatic change in the company's highly-respected management team. Former hedge fund manager Michael Steinhardt is the company's chairman and Jonathan Steinberg is the CEO.
Investors seem to like what the pair are doing for the company because the stock is up 5.6 percent since the days leading up to WisdomTree's move to the Nasdaq in July 2011. All of the other ETF sponsor stocks mentioned in this piece are in the red over the same time period.
Neither a dramatic stall in ETF asset growth or management changes at WisdomTree appear imminent, indicating that WisdomTree may indeed have more near-term upside to offer investors. Some of the firm's most popular ETFs inlcude the WisdomTree Emerging Markets Equity Income Fund (NYSE: DEM ), the WisdomTree India Earnings ETF (NYSE: EPI ) and the WisdomTree Dividend ex-Financials Fund (NYSE: DTN ).
(c) 2012 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Some of the firm's most popular ETFs inlcude the WisdomTree Emerging Markets Equity Income Fund (NYSE: DEM ), the WisdomTree India Earnings ETF (NYSE: EPI ) and the WisdomTree Dividend ex-Financials Fund (NYSE: DTN ). Said another way, many investors overlook the fact that some of the ETF industry's biggest players are units of large, publicly-traded financial services firms. The stock closed below $7 on Monday, but last week Goldman Sachs initiated coverage of WisdomTree with a Buy rating and a $9 price target.
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Some of the firm's most popular ETFs inlcude the WisdomTree Emerging Markets Equity Income Fund (NYSE: DEM ), the WisdomTree India Earnings ETF (NYSE: EPI ) and the WisdomTree Dividend ex-Financials Fund (NYSE: DTN ). There are several such stocks, but just one that can be considered a pure-play ETF sponsor: WisdomTree Investments (NASDAQ: WETF ). Year-over-year, WisdomTree's ETF assets have jumped 16 percent, an increase that compares quite favorably to the two percent and 12 percent increases posted by BlackRock's (NYSE: BLK ) iShares and State Street's (NYSE: STT ), State Street Global Advisors.
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Some of the firm's most popular ETFs inlcude the WisdomTree Emerging Markets Equity Income Fund (NYSE: DEM ), the WisdomTree India Earnings ETF (NYSE: EPI ) and the WisdomTree Dividend ex-Financials Fund (NYSE: DTN ). We believe investors underappreciate and undervalue: (1) the firm's sector-leading organic growth profile, driven by differentiated "nontraditional" ETFs; (2) the scalability of WETF's model and powerful margin expansion potential; and (3) the scarcity value in owning the only public pure-play ETF manager ($15bn in AuM), with a valuable asset in exemptive relief for active ETFs." Neither a dramatic stall in ETF asset growth or management changes at WisdomTree appear imminent, indicating that WisdomTree may indeed have more near-term upside to offer investors.
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Some of the firm's most popular ETFs inlcude the WisdomTree Emerging Markets Equity Income Fund (NYSE: DEM ), the WisdomTree India Earnings ETF (NYSE: EPI ) and the WisdomTree Dividend ex-Financials Fund (NYSE: DTN ). It is possible for investors to profit from the ETF industry's exponential growth without actually owning a single ETF. There are several such stocks, but just one that can be considered a pure-play ETF sponsor: WisdomTree Investments (NASDAQ: WETF ).
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a61b5884-f90d-441e-b44e-6dc64a73997c
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727221.0
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2012-06-29 00:00:00 UTC
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ETFs Hedge Fund Titan John Paulson Would Love
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DEM
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https://www.nasdaq.com/articles/etfs-hedge-fund-titan-john-paulson-would-love-2012-06-29
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nan
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nan
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The ups and downs of John Paulson's eponymous hedge fund, Paulson & Co., are well-documented. Paulson rose to acclaim for his prescient bets against sub-prime mortgage securities.
Paulson, who has not been known as the media's biggest fan, was featured on the cover of the latest issue of the Bloomberg Businessweek and was the subject of a wide-ranging interview. In the interview, he spoke a bit about his firm's recent struggles.
Despite Paulson's legendary performance in 2008, his firm's two largest funds, Paulson Advantage and Advantage Plus, experienced dreadful 2011 performances. Paulson Advantage gave up 36 percent while Advantage Plus tumbled 52 percent according to Businessweek . However, Paulson & Co. did not become one of the largest U.S. hedge funds by consistently losing clients' money.
For those that want to try their hands at outperforming Paulson, here are some ETFs the man himself might like.
Market Vectors Gold Miners ETF (NYSE: GDX ) Paulson's bullish stance on gold is well-known. The SPDR Gold Shares (NYSE: GLD ) could also easily make this list because the fund was also among his firm's holdings at the end of the first quarter .
Gold miners have drawn favor from Paulson & Co. as the firm held at least seven at the end of the first quarter, including Barrick Gold (NYSE: ABX ) and Gold Fields (NYSE: GFI ). Overall, Paulson's first-quarter 13F filing indicates the firm's gold miner stakes comprise roughly a third of GDX's weight, making the ETF an ideal way for investors to mirror Paulson.
Market Vectors Gaming ETF (NYSE: BJK ) Paulson held stakes in two casino stocks - MGM Resorts (NYSE: MGM ) and Caesars Entertainment (NYSE: CZR ) - at the end of the first quarter. MGM is a top-10 holding in BJK, but Caesars has not made it into the ETF yet since returning as a public company earlier this year. Particularly in the case of Caesars, Paulson is betting on one of the more controversial casino stock as the company has $19 billion in debt, nearly quadruple the debt load of Wynn Resorts (NASDAQ:WYNN ).
Investors might want to wait to see if BJK can find a floor in the $30-$31 area before rushing into this fund, which has taken a double-digit loss since the start of the second quarter.
iShares Dow Jones U.S. Oil & Gas Exploration & Production Index Fund (NYSE: IEO ) Paulson did not hold a lot of energy stocks at the end of the first quarter and the hedge fund eliminated its entire position in Transocean (NYSE: RIG ), the world's largest provider of offshore drilling services. The firm did, however, hold a stake in Anadarko Petroleum (NYSE: APC ) at the end of Q1.
Anadarko, one of the largest U.S. independent oil and natural gas producers, was Paulson & Co.'s seventh-largest holding, according to Whale Wisdom. Investors might note two facts about Paulson's Anadarko stake. First, Paulson &Co.'s Q1 13F filing showed that the hedge fund significantly reduced its position in the stock. Second, anyone that buys Anadarko at current levels would be getting superior pricing to what Paulson got. The firm added the stock in the first quarter of 2011 when it traded around $80. Friday, it traded closer to $65. Anadarko is IEO's third-largest holding with a weight of almost eight percent.
ProShares UltraShort Euro (NYSE: EUO ) Earlier this year, Paulson said in a letter to investors the euro is "structurally flawed," and will eventually fall apart. He has put client money where his mouth is by betting against European sovereign debt and establishing a long position on credit default swaps used to insure that debt against default.
Financial Select Sector SPDR (NYSE: DEM ) Paulson is known for shorting sub-prime mortgages, but he was quick to embrace the financial services sector just as the darkest clouds from the credit crisis appeared to have passed. Wells Fargo (NYSE: WFC ) and Bank of America (NYSE: BAC ), which combine for over 13 percent of XLF's weight, are found among Paulson's holdings.
For more ETFs John Paulson might enjoy, click here .
(c) 2012 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Financial Select Sector SPDR (NYSE: DEM ) Paulson is known for shorting sub-prime mortgages, but he was quick to embrace the financial services sector just as the darkest clouds from the credit crisis appeared to have passed. Paulson, who has not been known as the media's biggest fan, was featured on the cover of the latest issue of the Bloomberg Businessweek and was the subject of a wide-ranging interview. The SPDR Gold Shares (NYSE: GLD ) could also easily make this list because the fund was also among his firm's holdings at the end of the first quarter .
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Financial Select Sector SPDR (NYSE: DEM ) Paulson is known for shorting sub-prime mortgages, but he was quick to embrace the financial services sector just as the darkest clouds from the credit crisis appeared to have passed. Despite Paulson's legendary performance in 2008, his firm's two largest funds, Paulson Advantage and Advantage Plus, experienced dreadful 2011 performances. Market Vectors Gold Miners ETF (NYSE: GDX ) Paulson's bullish stance on gold is well-known.
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Financial Select Sector SPDR (NYSE: DEM ) Paulson is known for shorting sub-prime mortgages, but he was quick to embrace the financial services sector just as the darkest clouds from the credit crisis appeared to have passed. Gold miners have drawn favor from Paulson & Co. as the firm held at least seven at the end of the first quarter, including Barrick Gold (NYSE: ABX ) and Gold Fields (NYSE: GFI ). Market Vectors Gaming ETF (NYSE: BJK ) Paulson held stakes in two casino stocks - MGM Resorts (NYSE: MGM ) and Caesars Entertainment (NYSE: CZR ) - at the end of the first quarter.
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Financial Select Sector SPDR (NYSE: DEM ) Paulson is known for shorting sub-prime mortgages, but he was quick to embrace the financial services sector just as the darkest clouds from the credit crisis appeared to have passed. Market Vectors Gaming ETF (NYSE: BJK ) Paulson held stakes in two casino stocks - MGM Resorts (NYSE: MGM ) and Caesars Entertainment (NYSE: CZR ) - at the end of the first quarter. The firm did, however, hold a stake in Anadarko Petroleum (NYSE: APC ) at the end of Q1.
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727222.0
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2012-06-13 00:00:00 UTC
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The Definitive Guide to Emerging Markets Dividend ETFs
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DEM
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https://www.nasdaq.com/articles/definitive-guide-emerging-markets-dividend-etfs-2012-06-13
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nan
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nan
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In this era of artificially low interest rates and the resulting low yields on U.S. Treasuries, dividends have taken on elevated importance. The exchange-traded products industry has met investor demand for dividend products with aplomb, introducing new income-generating funds at a rapid-fire pace over the past several years.
Investors looking for some emerging markets exposure to go along with their dividends are in long. Not only can investors grab high yields and hedge currency risk with a number of emerging markets bond ETFs , there are plenty of noteworthy and anonymous equity-based emerging markets dividend funds that merit consideration.
One piece of advice: Read the fine print because not all emerging markets dividend ETFs are created equal.
WisdomTree Emerging Markets Equity Income Fund (NYSE: DEM ) The WisdomTree Emerging Markets Equity Income Fund, which will turn five-years-old next month, is most often compared to the Vanguard MSCI Emerging Markets ETF (NYSE: VWO ) and the iShares MSCI Emerging Markets Index Fund (NYSE: EEM ), the two largest emerging markets ETFs. DEM isn't as large as those two funds, but it did top $3 billion in assets under management earlier this year .
Measuring DEM against VWO is proof positive that dividends matter. In the past five years, DEM is down less than 1% while VWO is off more than 22%. Taiwan, Brazil and South Africa combine for over 52% of DEM's country weight and the fund gives double-digit allocations to four sectors - financials, telecommunications, technology and utilities. DEM charges 0.63% per year.
WisdomTree Emerging Markets SmallCap Dividend Fund (NYSE: DGS ) The WisdomTree Emerging Markets SmallCap Dividend Fund is the proverbial king of small-cap emerging markets dividend ETFs with a first-to-market advantage that could prove daunting for rivals. Home to almost $883 million in AUM, DGS holds 542 stocks, none receiving a weight of more than 1.07%, and charges 0.63%.
More importantly, the fund shares something in common with many of its large-cap focused brethren: A heavy weight to Taiwan. That country, whose emerging markets status is dubious at best, accounts for almost 26% of DGS' weight. Another 8.3% goes to South Korea, another country that many experts and traders are reluctant to call an emerging market. Israel checks in at 6% and that country lost its emerging markets status several years ago.
DGS is another prime example of dividends making a difference. The fund is a direct rival to the SPDR S&P Emerging Markets Small Cap ETF (NYSE: EWX ), but in the past year, has offered more than 600 basis points in superior returns. Over the past five years, DGS has outperformed EWX by about 900 basis points.
EGShares Low Volatility Emerging Markets Dividend ETF (NYSE: HILO ) HILO has toiled in obscurity since coming to market in August 2011 . That means a lot of investors are missing out on an ETF that has a lot to like.
Not only does HILO feature an almost 17% allocation to Thailand, one of the top-performing emerging markets in recent years, the ETF's index sports a yield of 6.44%. Beyond that, HILO lives up to its low volatility billing as telecommunications and utilities names combine for almost 45% of the fund's sector weight.
HILO charges 0.85%. Other top country weights include China at 16.7%, Brazil at 16.1% and South Africa at 14.7%.
SPDR S&P Emerging Markets Dividend ETF (NYSE: EDIV ) Since coming to market in February 2011, EDIV has outperformed VWO by about 450 basis points. Today, EDIV is found sporting a yield of almost 5%. Home to 122 stocks and almost $287 million in AUM, EDIV charges 0.59% annually. With a price/earnings ratio of 8.1, EDIV trades at 1.22, according to data on the SPDRs Web site. That means EDIV is cheaper on a valuation than EEM and the broader emerging markets universe.
Financials and technology issues combine for about 48% of EDIV's weight. At the country level, Taiwan, China and Brazil combine for 48% as well. One interesting note: In the absence of a country-specific fund, EDIV offers one of the largest allocations of any ETF to the Czech Republic at 8.45%.
iShares Emerging Markets Dividend Index Fund (NYSE: DVYE ) The iShares Emerging Markets Dividend Index Fund is the iShares answer to EDIV. DVYE debuted in February, exactly one year to the day after EDIV. The iShares offering is cheaper at 0.49% and a tad more diverse at the sector level as six industry groups - industrials, telecommunications, consumer goods, financial, materials and utilities - receive double-digit allocations.
Taiwan, Brazil and South Africa represent 48% of DVYE's weight. While the iShares offering may be cheaper in terms of fees, its valuation metrics are pricy compared to EDIV. DVYE trades 14.3 times earnings and 3.4 times book value, according to iShares data. The fund has a 30-day SEC yield of 6.08%.
For more on emerging markets dividend ETFs, please click HERE .
(c) 2012 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Taiwan, Brazil and South Africa combine for over 52% of DEM's country weight and the fund gives double-digit allocations to four sectors - financials, telecommunications, technology and utilities. The exchange-traded products industry has met investor demand for dividend products with aplomb, introducing new income-generating funds at a rapid-fire pace over the past several years. WisdomTree Emerging Markets Equity Income Fund (NYSE: DEM ) The WisdomTree Emerging Markets Equity Income Fund, which will turn five-years-old next month, is most often compared to the Vanguard MSCI Emerging Markets ETF (NYSE: VWO ) and the iShares MSCI Emerging Markets Index Fund (NYSE: EEM ), the two largest emerging markets ETFs.
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WisdomTree Emerging Markets Equity Income Fund (NYSE: DEM ) The WisdomTree Emerging Markets Equity Income Fund, which will turn five-years-old next month, is most often compared to the Vanguard MSCI Emerging Markets ETF (NYSE: VWO ) and the iShares MSCI Emerging Markets Index Fund (NYSE: EEM ), the two largest emerging markets ETFs. The exchange-traded products industry has met investor demand for dividend products with aplomb, introducing new income-generating funds at a rapid-fire pace over the past several years. DEM isn't as large as those two funds, but it did top $3 billion in assets under management earlier this year .
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WisdomTree Emerging Markets Equity Income Fund (NYSE: DEM ) The WisdomTree Emerging Markets Equity Income Fund, which will turn five-years-old next month, is most often compared to the Vanguard MSCI Emerging Markets ETF (NYSE: VWO ) and the iShares MSCI Emerging Markets Index Fund (NYSE: EEM ), the two largest emerging markets ETFs. The exchange-traded products industry has met investor demand for dividend products with aplomb, introducing new income-generating funds at a rapid-fire pace over the past several years. DEM isn't as large as those two funds, but it did top $3 billion in assets under management earlier this year .
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Taiwan, Brazil and South Africa combine for over 52% of DEM's country weight and the fund gives double-digit allocations to four sectors - financials, telecommunications, technology and utilities. The exchange-traded products industry has met investor demand for dividend products with aplomb, introducing new income-generating funds at a rapid-fire pace over the past several years. WisdomTree Emerging Markets Equity Income Fund (NYSE: DEM ) The WisdomTree Emerging Markets Equity Income Fund, which will turn five-years-old next month, is most often compared to the Vanguard MSCI Emerging Markets ETF (NYSE: VWO ) and the iShares MSCI Emerging Markets Index Fund (NYSE: EEM ), the two largest emerging markets ETFs.
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3f88a9e9-6608-4cbf-8da3-604c3c8c8143
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727223.0
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2012-06-08 00:00:00 UTC
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DEM Beats Out VWO And EEM
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DEM
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https://www.nasdaq.com/articles/dem-beats-out-vwo-and-eem-2012-06-08
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nan
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nan
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A couple of weeks ago, I blogged about looking beyond the Vanguard MSCI Emerging Markets ETF (NYSEArca:VWO) and the iShares MSCI Emerging Markets Index Fund (NYSE Arca:EEM) for emerging markets exposure.
Specifically, I mentioned a few single-country ETFs with potential for outperformance in the coming decade.
But for investors uncomfortable with jumping into country-specific ETFs and who prefer broad exposure, dividend-weighted funds like the WisdomTree Emerging Markets Equity Income Fund (NYSEArca:DEM), can offer a great alternative way to play emerging markets.
DEM differs from cap-weighted funds like VWO and EEM by not only weighting its constituents by annual dividends paid, but also by selecting its holdings based on dividend yields.
And true to its word, DEM sports an impressive dividend yield.
It might come as a surprise to you that DEM actually has a trailing 12-month yield of 4.45 percent and a 30-day SEC yield of 3.21 percent. In comparison, VWO and EEM have a trailing 12-month yield of 2.36 and 2.12 percent, respectively.
DEM's dividend-based methodology also leads to a unique portfolio with very different country exposures than what investors get in VWO or EEM via the MSCI Emerging Markets Index.
Source:Issuer websites
But the real kicker here is that it's handily outperformed both VWO and EEM over one- and three-year periods in total returns-and in also in price returns.
Source:Bloomberg
The SPDR S&P Emerging Markets Dividend ETF (NYSEArca:EDIV) is also worth mentioning here. The dividend-weighted fund launched in February 2011, and while it doesn't have a long track record yet, it also beat out VWO and EEM over the past one-year period.
For emerging markets dividend plays, the iShares Emerging Markets Dividend Index Fund (NYSEArca:DVYE) is also available. The fund was only launched this past February, but it's one to watch.
But beyond simply broad-based funds, yield-hungry investors might also be interested in the WisdomTree Emerging Markets SmallCap Dividend Fund (NYSEArca:DGS), which was the first small-cap-focused emerging markets ETF to launch.
DGS also sports a handsome dividend yield, a trailing 12-month yield of 3.84 percent and a 30-day SEC yield of 7.63 percent.
Plus, DGS' small-cap tilt gives the fund significant exposure to industrials and the consumer side of emerging markets, as opposed to large, state-owned financial and energy companies that play a heavy hand in broad, cap-weighted funds like VWO and EEM.
Source:Issuser websites
And once again, it's outperformed both VWO and EEM over the past three-year period.
Don't forget to check IndexUniverse.com's ETF Data section.
Copyright ® 2012 IndexUniverse LLC . All Rights Reserved.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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DEM's dividend-based methodology also leads to a unique portfolio with very different country exposures than what investors get in VWO or EEM via the MSCI Emerging Markets Index. But for investors uncomfortable with jumping into country-specific ETFs and who prefer broad exposure, dividend-weighted funds like the WisdomTree Emerging Markets Equity Income Fund (NYSEArca:DEM), can offer a great alternative way to play emerging markets. DEM differs from cap-weighted funds like VWO and EEM by not only weighting its constituents by annual dividends paid, but also by selecting its holdings based on dividend yields.
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But for investors uncomfortable with jumping into country-specific ETFs and who prefer broad exposure, dividend-weighted funds like the WisdomTree Emerging Markets Equity Income Fund (NYSEArca:DEM), can offer a great alternative way to play emerging markets. DEM differs from cap-weighted funds like VWO and EEM by not only weighting its constituents by annual dividends paid, but also by selecting its holdings based on dividend yields. And true to its word, DEM sports an impressive dividend yield.
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But for investors uncomfortable with jumping into country-specific ETFs and who prefer broad exposure, dividend-weighted funds like the WisdomTree Emerging Markets Equity Income Fund (NYSEArca:DEM), can offer a great alternative way to play emerging markets. DEM differs from cap-weighted funds like VWO and EEM by not only weighting its constituents by annual dividends paid, but also by selecting its holdings based on dividend yields. And true to its word, DEM sports an impressive dividend yield.
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But for investors uncomfortable with jumping into country-specific ETFs and who prefer broad exposure, dividend-weighted funds like the WisdomTree Emerging Markets Equity Income Fund (NYSEArca:DEM), can offer a great alternative way to play emerging markets. DEM differs from cap-weighted funds like VWO and EEM by not only weighting its constituents by annual dividends paid, but also by selecting its holdings based on dividend yields. And true to its word, DEM sports an impressive dividend yield.
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2a01c015-15e3-4f90-828e-232d80aff408
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727224.0
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2012-05-02 00:00:00 UTC
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4 ETFs For Patient Investors (EMCB, FCG, ECON)
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DEM
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https://www.nasdaq.com/articles/4-etfs-patient-investors-emcb-fcg-econ-2012-05-02
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nan
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nan
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These days, it's hard to fathom investing for the long-term, unless the conversation involves Warren Buffett. Buffett, the legendary value investor and chairman CEO of Berkshire Hathaway (NYSE: BRK-A, BRK-B) has made a fortune taking a long-term view of his company's investments, whether they be acquired businesses or equity stakes.
Even with the obvious lessons investors can learn from the Oracle of Omaha, these days most investors want to be traders as well. That's not surprising when phrases such as "high-frequency trading" and "buy-and-hold is dead" are oft-repeated buzzwords.
Of course there is also the misnomer that all ETFs are volatile instruments only worthy of use over short-term time frames. Contrary to that misinformation, there are myriad ETF options for investors looking to play long-term ideas. Here are some to consider.
First Trust ISE-Revere Natural Gas Index Fund (NYSE: FCG ) Did you notice that as natural gas prices have started to rebound the First Trust ISE-Revere Natural Gas Index Fund went on a seven-day winning streak? Getting in the business of calling a bottom in natural gas has proven foolhardy, but if the commodity does experience a renaissance, FCG is one ETF that will benefit .
FCG's long-term prospects are bright for multiple reasons. First, many Americans are realizing the benefits of moving toward natural gas for power generation and as a transportation fuel. Second, many of FCG's holdings are oily plays, so the ETF is somewhat levered to rising oil prices. Third, this ETF is littered with potential takeover targets.
EGShares Emerging Markets Consumer ETF (NYSE: ECON ) The emerging markets consumer is is certainly an investable theme, but it has to be executed the right way . That means gaining exposure to local brands and ECON, one of the original and dominant EM consumer ETFs, does that.
The knock on ECON, particularly as a long-term play, is the 0.85% expense ratio. On the other hand, ECON is up 22% since its late 2010 debut. The fund is also heavier on staples names over discretionary stocks, indicating it has a more conservative posture than meets the eye.
WisdomTree Emerging Markets Equity Income Fund (NYSE: DEM ) The WisdomTree Emerging Markets Equity Income Fund proves one point long-term investors should be aware of: Dividends matter. DEM can be viewed as the dividend-paying answer to the Vanguard MSCI Emerging Markets ETF (NYSE: VWO ) and the iShares MSCI Emerging Markets Index Fund (NYSE: EEM ).
VWO and EEM are the two largest EM ETFs and two of the largest U.S. ETFs overall. Both are down significantly over the past five years, but DEM is up by almost 10%. Someone must be paying attention. DEM had $3 billion in AUM in late February . Today, that number is over $3.8 billion.
WisdomTree Emerging Markets Corporate Bond Fund (Nasdaq: EMCB ) The WisdomTree Emerging Markets Corporate Bond Fund has proven to be one of the better new ETF ideas of 2012 and the fund will always be able to say it was the first to be devoted exclusively to EM corporate bonds. Better yet, EMCB will probably always offer better yields than U.S. Treasuries.
Approximately three-quarters of the fund's holdings are investment-grade and about 14% of EMCB's country weight goes to Hong Kong (not an emerging market) and South Korea (only an emerging market in the eyes of one particular index provider).
Bottom line: There are multiple reasons why emerging markets bonds are more attractive than their developed markets counterparts and EMCB is poised to benefit over time from those reasons .
For more ETFs for patient investors, please click HERE .
(c) 2012 Benzinga.com. All rights reserved. This material may not be published in its entirety or redistributed without the approval of Benzinga.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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WisdomTree Emerging Markets Equity Income Fund (NYSE: DEM ) The WisdomTree Emerging Markets Equity Income Fund proves one point long-term investors should be aware of: Dividends matter. DEM can be viewed as the dividend-paying answer to the Vanguard MSCI Emerging Markets ETF (NYSE: VWO ) and the iShares MSCI Emerging Markets Index Fund (NYSE: EEM ). Both are down significantly over the past five years, but DEM is up by almost 10%.
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WisdomTree Emerging Markets Equity Income Fund (NYSE: DEM ) The WisdomTree Emerging Markets Equity Income Fund proves one point long-term investors should be aware of: Dividends matter. DEM can be viewed as the dividend-paying answer to the Vanguard MSCI Emerging Markets ETF (NYSE: VWO ) and the iShares MSCI Emerging Markets Index Fund (NYSE: EEM ). Both are down significantly over the past five years, but DEM is up by almost 10%.
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WisdomTree Emerging Markets Equity Income Fund (NYSE: DEM ) The WisdomTree Emerging Markets Equity Income Fund proves one point long-term investors should be aware of: Dividends matter. DEM can be viewed as the dividend-paying answer to the Vanguard MSCI Emerging Markets ETF (NYSE: VWO ) and the iShares MSCI Emerging Markets Index Fund (NYSE: EEM ). Both are down significantly over the past five years, but DEM is up by almost 10%.
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DEM can be viewed as the dividend-paying answer to the Vanguard MSCI Emerging Markets ETF (NYSE: VWO ) and the iShares MSCI Emerging Markets Index Fund (NYSE: EEM ). DEM had $3 billion in AUM in late February . WisdomTree Emerging Markets Equity Income Fund (NYSE: DEM ) The WisdomTree Emerging Markets Equity Income Fund proves one point long-term investors should be aware of: Dividends matter.
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727225.0
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2012-04-17 00:00:00 UTC
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4 ETFs to Buy With Your Tax Refund (DEM, OIH, EMCB)
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DEM
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https://www.nasdaq.com/articles/4-etfs-buy-your-tax-refund-dem-oih-emcb-2012-04-17
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nan
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nan
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April 17 is usually just another day, but this year, it has the distinction of replacing April 15 as Tax Day in the U.S. Most folks don't like paying taxes, but some such as Warren Buffett, have been kind enough to volunteer to pay more.
Eschewing a laborious debate on U.S. tax code and policy, let's just run with the simple facts. As the Wall Street Journal reported, in 2011 the IRS refunded $300 billion, or 25 cents for every $1 it collected. That means 80% of the 143 million returns filed earned a refund, the Journal reported.
The average refund is around $3,000. That's not Buffett money, but it's still a decent chunk of change. So before you go spending most of that refund on the new iPad or cargo shorts from Abercrombie & Fitch (NYSE: ANF ), consider some ETF portfolio building with the following funds.
WisdomTree Emerging Markets Equity Income Fund (NYSE: DEM ) Somewhat quietly, the WisdomTree Emerging Markets Equity Income Fund continues to rake in assets under management. At the end of February, we noted the fund eclipsed the $3 billion AUM mark . Today, DEM has nearly $3.7 billion in AUM.
The fund offers exposure to 18 countries, but Taiwan, Brazil and South Africa combine for 53% of the country weight. DEM features a 30-day SEC yield of almost 6.8%. That's better than triple what the iShares MSCI Emerging Markets Index Fund (NYSE: EEM ) offers. Plus, DEM's expenes ratio of 0.63% is better than EEM's 0.67%/ and DEM has sharply outperformed the iShares fund over the past five years.
WisdomTree Emerging Markets Corporate Bond Fund (Nasdaq: EMCB ) Why not use some of that tax refund to kill multiple birds with one ETF stone. The still new EMCB, the first emerging markets corporate debt bond fund to come market, helps investors fill bond, emerging markets and yield voids in their portfolios.
EMCB features a 30-day SEC yield of 4.7% and most its holdings rate as investment grade as 48.3% of the fund's issues are rated BBB and another 19.9% are rated A. Brazilian, Russian and Mexican bonds combine for about 55% of EMCB's weight. The fund has proven so popular that iShares has decided to copy the idea .
SPDR S&P Retail ETF (NYSE: XRT ) Instead of squandering your refund at some of XRT's 96 constituents, use your refund and bullish consumer data to your advantage by considering a stake in XRT. At the start of trading today, XRT had slid more than 2% in the past month, but has erased almost all of those losses and there's still plenty of time to go in Tuesday's session. If U.S. economic data remains supportive, XRT could challenge the $64-$65 area later this year.
Market Vectors Oil Services ETF (NYSE: OIH ) For those that already have their tax refunds, OIH might be worth a look now ahead of some critical earnings reports this week . OIH doesn't have the best looking chart out there and the ETF has slid 9.5% in the past month, but Wednesday's earnings update from Halliburton (NYSE: HAL ) and Friday's report from Schluberger (NYSE: SLB ) will impact OIH one way or the other. Those two stocks account for over 29% of OIH's weight.
(c) 2012 Benzinga.com. All rights reserved. This material may not be published in its entirety or redistributed without the approval of Benzinga.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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WisdomTree Emerging Markets Equity Income Fund (NYSE: DEM ) Somewhat quietly, the WisdomTree Emerging Markets Equity Income Fund continues to rake in assets under management. Today, DEM has nearly $3.7 billion in AUM. DEM features a 30-day SEC yield of almost 6.8%.
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WisdomTree Emerging Markets Equity Income Fund (NYSE: DEM ) Somewhat quietly, the WisdomTree Emerging Markets Equity Income Fund continues to rake in assets under management. Today, DEM has nearly $3.7 billion in AUM. DEM features a 30-day SEC yield of almost 6.8%.
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WisdomTree Emerging Markets Equity Income Fund (NYSE: DEM ) Somewhat quietly, the WisdomTree Emerging Markets Equity Income Fund continues to rake in assets under management. Today, DEM has nearly $3.7 billion in AUM. DEM features a 30-day SEC yield of almost 6.8%.
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Today, DEM has nearly $3.7 billion in AUM. WisdomTree Emerging Markets Equity Income Fund (NYSE: DEM ) Somewhat quietly, the WisdomTree Emerging Markets Equity Income Fund continues to rake in assets under management. DEM features a 30-day SEC yield of almost 6.8%.
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240bb9b9-bdd3-4ac0-8efb-35b4ea94aa07
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727226.0
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2012-02-24 00:00:00 UTC
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iShares Launches Emerging, Asia Payout ETFs
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DEM
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https://www.nasdaq.com/articles/ishares-launches-emerging-asia-payout-etfs-2012-02-24
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nan
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nan
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iShares, the world's largest sponsor of ETFs, today rolled out two dividend-focused ETFs that canvass emerging markets as well as Asia-Pacific equities, the latest to target investor appetite for income-generating stocks.
Both the iShares Emerging Markets Dividend Index Fund (NYSEArca:DVYE) and the iShares Asia/Pacific Dividend 30 Index Fund (NYSEArca:DVYA) are linked to Dow Jones benchmarks, and each has an annual expense ratio of 0.49 percent.
The funds join a growing roster of payout-seeking ETFs that promise investors steady income at time when stock prices have been volatile and bonds unusually low-yielding. Many ETF providers have been stuffing the regulatory pipeline with dividend-focused ETFs in an effort to snatch the demand for such instruments.
Still, strategies that deliver a blend of dividend-paying equities with the prospective elements associated with developing economies are still relatively rare, even if their projected returns have exceeded those of the S&P 500 in the past year, according to iShares data.
DVYE, Cheapest In Class
iShares' DVYE, for instance, while set to face the sizable $3.26 billion WisdomTree Emerging Markets Equity Income (NYSEArca:DEM), can count its direct competitors in one hand. The fund is also the cheapest of its kind.
DVYE's expense ratio is less than DEM's 0.63 percent price tag, and is also cheaper than the one-year-old $213 million SPDR Emerging Markets Dividend (NYSEArca:EDIV), which has a 0.59 percent expense ratio.
Even the EGShares Low Volatility Emerging Markets Dividend ETF (NYSEArca:HILO), which adds a volatility screen to the strategy, costs more at 0.85 percent.
DVYA's Targeted Exposure
By comparison, iShares Asia Pacific fund, DVYA, is even more unique, serving up targeted exposure to dividend-paying stocks from companies in Australia, Hong Kong, Japan, New Zealand and Singapore in a mix that is a first for U.S. investors. The fund, too, is relatively price-competitive.
The $710 million SPDR International Dividend (NYSEArca:DWX), with a 0.45 percent annual expense ratio, offers some overlapping exposure to iShares' DVYA as far as country exposure. However, most international dividend ETFs on the market today from providers such as WisdomTree, State Street Global Advisors, Invesco PowerShares, Guggenheim and First Trust are broader in scope.
Focus On Australia
DVYA tracks a Dow Jones index that taps into high-dividend-paying stocks in Australia, Hong Kong, Japan, New Zealand and Singapore. It rebalances annually.
The fund, comprised of 30 names, allocates roughly a quarter of its portfolio to financials, while consumer services and telecommunications each take up just under 20 percent of the pie, according to information on iShares' website.
DVYA's country allocation is heavily tilted toward Australia, which represents nearly 45 percent of the portfolio, with Hong Kong coming second at 21 percent. At the other end is Japan, snagging less than a 7 percent share of the exposure.
Australia is also the focus of a WisdomTree dividend ETF, "AUSE"-a fund that taps exclusively into that country's high-payout names. Although AUSE has been around since 2006, it has gathered an unimpressive $57 million in assets.
Emerging Market Breakdown
The new emerging markets ETF, DVYE, focuses on the top-100 dividend-paying emerging market companies, in a mix that's rebalanced annually, iShares said on its website.
The fund allocates nearly a quarter of its portfolio to Taiwanese securities, and also has Brazilian and South African equities, each of the latter snagging more than 10 percent of the mix.
Countries like Turkey, Malaysia, Thailand, Czech Republic, Indonesia and Hong Kong also make the cut, at about 4 percent of the pie.
China, however, is bundled with nine other countries under the "other" country allocation tag iShares uses to denote smaller allocations, representing less than 3 percent of the portfolio.
DVYE has telecommunications, industrials and basic materials as its largest sector allocations, each representing around 15 percent of the portfolio.
Permalink | 'copy; Copyright 2009 IndexUniverse LLC. All rights reserved
Don't forget to check IndexUniverse.com's ETF Data section.
Copyright ® 2012 IndexUniverse LLC . All Rights Reserved.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Many ETF providers have been stuffing the regulatory pipeline with dividend-focused ETFs in an effort to snatch the demand for such instruments. DVYE, Cheapest In Class iShares' DVYE, for instance, while set to face the sizable $3.26 billion WisdomTree Emerging Markets Equity Income (NYSEArca:DEM), can count its direct competitors in one hand. DVYE's expense ratio is less than DEM's 0.63 percent price tag, and is also cheaper than the one-year-old $213 million SPDR Emerging Markets Dividend (NYSEArca:EDIV), which has a 0.59 percent expense ratio.
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Many ETF providers have been stuffing the regulatory pipeline with dividend-focused ETFs in an effort to snatch the demand for such instruments. DVYE, Cheapest In Class iShares' DVYE, for instance, while set to face the sizable $3.26 billion WisdomTree Emerging Markets Equity Income (NYSEArca:DEM), can count its direct competitors in one hand. DVYE's expense ratio is less than DEM's 0.63 percent price tag, and is also cheaper than the one-year-old $213 million SPDR Emerging Markets Dividend (NYSEArca:EDIV), which has a 0.59 percent expense ratio.
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DVYE's expense ratio is less than DEM's 0.63 percent price tag, and is also cheaper than the one-year-old $213 million SPDR Emerging Markets Dividend (NYSEArca:EDIV), which has a 0.59 percent expense ratio. Many ETF providers have been stuffing the regulatory pipeline with dividend-focused ETFs in an effort to snatch the demand for such instruments. DVYE, Cheapest In Class iShares' DVYE, for instance, while set to face the sizable $3.26 billion WisdomTree Emerging Markets Equity Income (NYSEArca:DEM), can count its direct competitors in one hand.
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Many ETF providers have been stuffing the regulatory pipeline with dividend-focused ETFs in an effort to snatch the demand for such instruments. DVYE, Cheapest In Class iShares' DVYE, for instance, while set to face the sizable $3.26 billion WisdomTree Emerging Markets Equity Income (NYSEArca:DEM), can count its direct competitors in one hand. DVYE's expense ratio is less than DEM's 0.63 percent price tag, and is also cheaper than the one-year-old $213 million SPDR Emerging Markets Dividend (NYSEArca:EDIV), which has a 0.59 percent expense ratio.
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b8fa62c5-36fa-44b9-a532-d2344b8773d6
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727227.0
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2012-01-30 00:00:00 UTC
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WisdomTree Swings To Fourth-Quarter Profit
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DEM
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https://www.nasdaq.com/articles/wisdomtree-swings-fourth-quarter-profit-2012-01-30
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nan
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nan
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WisdomTree, the only publicly traded U.S. money management firm focused solely on ETFs, swung to a fourth-quarter profit of $889,000 compared with a $580,000 loss in the same year-earlier period. The results were fueled by a more than 20 percent increase in revenue, as it continued to attract investors to ETFs such as its WisdomTree Emerging Markets Local Debt Fund (NYSEArca:ELD).
However, on a sequential basis, WisdomTreeâs fourth-quarter net income was more than a third lower than the $1.36 million it earned in last yearâs third quarter. That was largely because its average assets under management fell by 7.3 percent during a relatively volatile fourth quarter, the company said today in a press release. Fourth-quarter revenue totaled almost $16.2 million.
But year-on-year, the companyâs average ETF assets under management rose 30 percent to $11.84 billion, a clear sign that the ETF industry is gathering momentum, and that New York-based WisdomTree is at the center of that expansion with the success of funds such as its now $2.62 billion WisdomTree Emerging Markets Equity Income Fund (NYSEArca:DEM) . The company ended the year with $12.18 billion in assets, 23 percent higher than $9.89 billion at the end of 2010.
ETFs still only represent 11 percent of the combined ETF and mutual fund market, but ETFs are beginning to pull in assets more quickly than mutual funds, WisdomTree Chief Executive Officer Jonathan Steinberg said in the press release.
âThe larger ETF industry growth story remains intact,â Steinberg said. "2011 was another strong year, with ETFs taking $115 billion versus $32 billion for mutual funds, or 78 percent of total inflows."
The company's fourth-quarter revenue rose to $16.2 million from $13.4 million in the same year-earlier quarter.
In all of 2011, the company earned $3.1 million compared with a net loss of $7.5 million in 2010, as revenues jumped almost 56 percent to $65.2 million.
The companyâs total expenses increased 9.2 percent to $15.3 million from $14.0 million in the fourth quarter of 2010.
Separately, the company is in the middle of a secondary share offering, and it plans to use proceeds from the sale of 1 million newly issued shares for general corporate expenses.
Among the milestones it highlighted, WisdomTree said it entered into a commission-free ETF trading arrangement with the online broker E*Trade in December. Also, it said it will use Legg Masonâs Western Asset Management unit as a subadvisor for global fixed-income ETFs.
ELD, the company's emerging markets debt fund, now has $1.13 billion in assets. It launched in August 2010.
Â
Â
Don't forget to check IndexUniverse.com's ETF Data section.
Copyright ® 2012 IndexUniverse LLC . All Rights Reserved.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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But year-on-year, the companyâs average ETF assets under management rose 30 percent to $11.84 billion, a clear sign that the ETF industry is gathering momentum, and that New York-based WisdomTree is at the center of that expansion with the success of funds such as its now $2.62 billion WisdomTree Emerging Markets Equity Income Fund (NYSEArca:DEM) . WisdomTree, the only publicly traded U.S. money management firm focused solely on ETFs, swung to a fourth-quarter profit of $889,000 compared with a $580,000 loss in the same year-earlier period. The results were fueled by a more than 20 percent increase in revenue, as it continued to attract investors to ETFs such as its WisdomTree Emerging Markets Local Debt Fund (NYSEArca:ELD).
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But year-on-year, the companyâs average ETF assets under management rose 30 percent to $11.84 billion, a clear sign that the ETF industry is gathering momentum, and that New York-based WisdomTree is at the center of that expansion with the success of funds such as its now $2.62 billion WisdomTree Emerging Markets Equity Income Fund (NYSEArca:DEM) . The results were fueled by a more than 20 percent increase in revenue, as it continued to attract investors to ETFs such as its WisdomTree Emerging Markets Local Debt Fund (NYSEArca:ELD). In all of 2011, the company earned $3.1 million compared with a net loss of $7.5 million in 2010, as revenues jumped almost 56 percent to $65.2 million.
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But year-on-year, the companyâs average ETF assets under management rose 30 percent to $11.84 billion, a clear sign that the ETF industry is gathering momentum, and that New York-based WisdomTree is at the center of that expansion with the success of funds such as its now $2.62 billion WisdomTree Emerging Markets Equity Income Fund (NYSEArca:DEM) . ETFs still only represent 11 percent of the combined ETF and mutual fund market, but ETFs are beginning to pull in assets more quickly than mutual funds, WisdomTree Chief Executive Officer Jonathan Steinberg said in the press release. In all of 2011, the company earned $3.1 million compared with a net loss of $7.5 million in 2010, as revenues jumped almost 56 percent to $65.2 million.
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But year-on-year, the companyâs average ETF assets under management rose 30 percent to $11.84 billion, a clear sign that the ETF industry is gathering momentum, and that New York-based WisdomTree is at the center of that expansion with the success of funds such as its now $2.62 billion WisdomTree Emerging Markets Equity Income Fund (NYSEArca:DEM) . The company's fourth-quarter revenue rose to $16.2 million from $13.4 million in the same year-earlier quarter. The companyâs total expenses increased 9.2 percent to $15.3 million from $14.0 million in the fourth quarter of 2010.
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35148c18-0792-4bbc-877a-e76abdee952b
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727228.0
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2012-01-30 00:00:00 UTC
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WisdomTree Starts Share Offering
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DEM
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https://www.nasdaq.com/articles/wisdomtree-starts-share-offering-2012-01-30
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nan
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nan
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WisdomTree, the only pure U.S. exchange-traded fund company thatâs publicly traded, is now in the process of carrying out a secondary stock offering it first filed for last year. The sale will provide the fast-growing New York-based company with funds to fuel its quickening expansion.
Of the 14,362,251 shares on offer, 1 million are newly issued, while the balance of shares is coming from selling shareholders, according to an amended âS-1â filing the company made with the Securities and Exchange Commission today. Proceeds from the 1 million newly issued shares will be used for âgeneral corporate purposes,â but the company wonât receive proceeds from the selling shareholders. A company official declined to comment, apart from confirming that the new filing suggests the share offering was under way.
The sale of shares to the public comes at a time when WisdomTree and the ETF industry as a whole are growing briskly despite challenging economic times. WisdomTreeâs assets under management rose last year by $2.3 billion, or 23 percent. Net inflows into its ETFs reached $3.9Â billion in 2011, up 24 percent from 2010, and the companyâs market share of ETF industry net inflows reached 3.4 percent, compared with 2.7 percent in 2010.
The company, whose shares trade on Nasdaq under the symbol âWETF,â said in the prospectus the maximum offering price would be $6.31 a share. The stock fell by more than 10 percent today to $5.66 a share, according to data on Google Finance. The company isnât commenting beyond the information contained in the prospectus.
Successful Funds
Some of the companyâs funds, such as the WisdomTree Emerging Markets Local Debt Fund (NYSEArca:ELD), have been among the most popular ETFs. ELD, which also happens to be an actively managed fund, now has $1.13 billion in assets. Overall, WisdomTree had $13.6 billion of assets under management as of Jan. 27, making it the seventh-largest U.S. ETF firm, according to the prospectus.
Total ETF assets, including market movement, rose 5 percent last year, to $1.062 trillion. Net ETF inflows totaled $119 billionâabout twice the fresh investment going into traditional mutual funds. In the past week, total ETF assets are again reaching records levels, eclipsing a previous high set in early May 2011. As of Jan. 27, total assets in U.S.-listed ETFs were at a record $1.152 trillion, according to data compiled by IndexUniverse.
WisdomTree has 47 ETFs and is known for its lineup of funds that screen securities for attractive dividends and earnings. In the share-offering prospectus, the company said its indexing methodology has helped 26 of its 34 equity ETFs outperform their market capitalization-weighted or competitive benchmarks.
That indexing methodology is now also the subject of a lawsuit brought by Rob Arnottâs fundamental indexation firm Research Affiliates, which charged WisdomTree with patent infringement. WisdomTree officials havenât commented on the suit, in part because of the quiet period regulators imposed in connection with the share offering.
WisdomTree also said in the prospectus that it has the ETF marketâs only managed-futures strategy. That was a reference to the WisdomTree Managed Futures Strategy Fund (NYSEArca:WDTI), which had assets of $233.7 million.
Apart from ELD, some of the companyâs other funds that have been hits with the investing public include the WisdomTree EM Equity Income ETF (NYSEArca:DEM), which has $2.62 billion in assets, and the WisdomTree Dreyfus Chinese Yuan Fund (NYSEArca:CYB), which has $443.9 million in assets.
The company said in its prospectus that the underwriters also have an option to buy an additional 2,154,336 shares from some of the selling stockholders.
Â
Don't forget to check IndexUniverse.com's ETF Data section.
Copyright ® 2012 IndexUniverse LLC . All Rights Reserved.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apart from ELD, some of the companyâs other funds that have been hits with the investing public include the WisdomTree EM Equity Income ETF (NYSEArca:DEM), which has $2.62 billion in assets, and the WisdomTree Dreyfus Chinese Yuan Fund (NYSEArca:CYB), which has $443.9 million in assets. WisdomTree, the only pure U.S. exchange-traded fund company thatâs publicly traded, is now in the process of carrying out a secondary stock offering it first filed for last year. In the past week, total ETF assets are again reaching records levels, eclipsing a previous high set in early May 2011.
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Apart from ELD, some of the companyâs other funds that have been hits with the investing public include the WisdomTree EM Equity Income ETF (NYSEArca:DEM), which has $2.62 billion in assets, and the WisdomTree Dreyfus Chinese Yuan Fund (NYSEArca:CYB), which has $443.9 million in assets. Net inflows into its ETFs reached $3.9Â billion in 2011, up 24 percent from 2010, and the companyâs market share of ETF industry net inflows reached 3.4 percent, compared with 2.7 percent in 2010. Total ETF assets, including market movement, rose 5 percent last year, to $1.062 trillion.
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Apart from ELD, some of the companyâs other funds that have been hits with the investing public include the WisdomTree EM Equity Income ETF (NYSEArca:DEM), which has $2.62 billion in assets, and the WisdomTree Dreyfus Chinese Yuan Fund (NYSEArca:CYB), which has $443.9 million in assets. Net inflows into its ETFs reached $3.9Â billion in 2011, up 24 percent from 2010, and the companyâs market share of ETF industry net inflows reached 3.4 percent, compared with 2.7 percent in 2010. Successful Funds Some of the companyâs funds, such as the WisdomTree Emerging Markets Local Debt Fund (NYSEArca:ELD), have been among the most popular ETFs.
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Apart from ELD, some of the companyâs other funds that have been hits with the investing public include the WisdomTree EM Equity Income ETF (NYSEArca:DEM), which has $2.62 billion in assets, and the WisdomTree Dreyfus Chinese Yuan Fund (NYSEArca:CYB), which has $443.9 million in assets. WisdomTreeâs assets under management rose last year by $2.3 billion, or 23 percent. As of Jan. 27, total assets in U.S.-listed ETFs were at a record $1.152 trillion, according to data compiled by IndexUniverse.
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e4a7c1a9-c449-489f-9a5c-db2bcaea8a2e
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727229.0
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2011-12-16 00:00:00 UTC
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E-Trade Rolls Out Free ETF Trading Program
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DEM
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https://www.nasdaq.com/articles/e-trade-rolls-out-free-etf-trading-program-2011-12-16
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nan
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nan
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E-Trade, the online discount broker that burst onto the scene around the time of the Internet bubble, today became the latest company to unveil commission-free ETF trading, with a program that includes 93 ETFs from three different fund sponsors, WisdomTree, Global X and Deutsche Bankâs db-X.
E-Tradeâs foray into the world of free ETF trading is the latest in a string of moves by various online brokers and fund sponsors looking to encourage investorsâ growing interest in exchange traded funds. The most recent addition was by Scottrade, which began offering free trades on its proprietary FocusShares line of ETFs when they came to market in March. Charles Schwab was the first.
E-Tradeâs program bears a strong resemblance to TD Ameritradeâs offering, which features commission-free trading on about 100 ETFs from a number of different sponsors. And like TD Ameritrade, E-Trade will charge investors who buy a fund and then sell it within 30 days a short-term trading fee, a move that is likely to help long-term investors more easily access the ETF market.
Commission-free trading programs are designed in part to make ETFs more palatable to individual investors, who can be dissuaded from investing in ETFs by commission costs.
While ETFs often have lower expense ratios than competing mutual funds, those advantages can be overwhelmed by commission costs unless you are buying a large amount of an ETF. If you purchase $1,000 of an ETF, a commission of just $10 amounts to a full 1 percent of the purchase price. Commission-free programs put ETFs on-par with mutual funds in many ways.
Itâs worth noting that E-Tradeâs initiative wasnât accompanied by any promotional campaign, and one wonders if that if that isnât because free ETF trading is the exact opposite of a profit center for the companies that offer it.
The E-Trade Program
The ETFs featured in the program include some of New York-based WisdomTreeâs most successful funds, such as its line-up of equity products designed with indexes that screen companies for a history of attractive dividend payments. That includes the $1.99 billion WisdomTree Emerging Markets Equity Income Fund (NYSEArca:DEM).
The program also includes the Wisdomtree Asia Local Debt Fund (NYSEArca:ALD), which has attracted almost $400 million since its launch in March, and the WisdomTree Dreyfus Chinese Yuan Fund (NYSEArca:CYB), a nearly $500 million fund that targets Chinaâs currency.
Among the funds from New York-based Global X, which specializes in part on equity ETFs targeting the world of commodities, E-Trade will offer commission-free trading on the Global X Uranium ETF (NYSEARca:URA) and the Global X Global X Silver Miners ETF (NYSEArca:SIL). The two funds have $163.7 million and $310.5 million in assets, respectively.
It is also featuring db-Xâs lineup of target date ETFs, which have different allocations schemes appropriate to an investorâs planned year of retirement.
Schwab Started Trend
As noted, San Francisco-based Schwab started the trend when it rolled out the first of its proprietary ETFs in November 2009, offering free trades to any of its clients that invested in its ETFs. It now has 15 ETFs that together have amassed $4.72 billion in assets, according to data compiled by IndexUniverse.
Fidelity Investments followed shortly thereafter in February 2010, offering commission-free trades on 30 ETFs sponsored by San Francisco-based iShares. Fidelity only has only one ETF currently on the market, though it recently filed with the Securities and Exchange Commission to offer what may well end up being a rather extensive lineup of exchange-traded funds.
The trend was rubber-stamped in the spring of 2010, when Vanguard Group, now the biggest U.S. mutual fund company excluding money-market instruments, began offering its client free trades on its ETFs.
Â
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Vanguard is known -- along with Schwab, and now Scottrade's FocusShares â as a firm devoted to low cost investment products, so such a move by such a big player definitely turned heads.
Vanguard now has 64 U.S.-listed exchange-traded funds, including the biggest developing markets fund, the $41.77 billion Vanguard MSCI Emerging Markets ETF (NYSEArca:VWO).
But Vanguardâs move raised questions about who pays for such commission-free trades.
In the end, the owners of other Vanguard funds probably pick up the tab in the form of expense ratios that arenât as low as they might otherwise be. Or, in the case of a publicly traded company like Schwab, shareholders probably pick up the tab.
Exceptions To E-Trade Program
Thatâs why itâs worth looking at what E-Trade isnât giving away.
Thatâs especially true regarding companies like E-Trade and TD Ameritrade, that arenât marketing their own ETFs that would be generating revenues from expense ratios that would offset those lost revenues.
So, in addition to requiring a 30-day holding period to dodge the short-term trading fee, E-Tradeâs program also doesnât cover short sales of ETFs, nor buy to cover and buy-write orders.
Options trades, widely considered to be one of the few remaining domains of juicy commissions in the world of trading, are also off the table in E-Tradeâs new program.
Additionally, for margin customers, the ETFs purchased through the commission-free ETF program arenât margin eligible for 30 days from purchase date.
Don't forget to check IndexUniverse.com's ETF Data section.
Copyright ® 2011 IndexUniverse LLC . All Rights Reserved.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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That includes the $1.99 billion WisdomTree Emerging Markets Equity Income Fund (NYSEArca:DEM). Itâs worth noting that E-Tradeâs initiative wasnât accompanied by any promotional campaign, and one wonders if that if that isnât because free ETF trading is the exact opposite of a profit center for the companies that offer it. The trend was rubber-stamped in the spring of 2010, when Vanguard Group, now the biggest U.S. mutual fund company excluding money-market instruments, began offering its client free trades on its ETFs.
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That includes the $1.99 billion WisdomTree Emerging Markets Equity Income Fund (NYSEArca:DEM). Among the funds from New York-based Global X, which specializes in part on equity ETFs targeting the world of commodities, E-Trade will offer commission-free trading on the Global X Uranium ETF (NYSEARca:URA) and the Global X Global X Silver Miners ETF (NYSEArca:SIL). Schwab Started Trend As noted, San Francisco-based Schwab started the trend when it rolled out the first of its proprietary ETFs in November 2009, offering free trades to any of its clients that invested in its ETFs.
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That includes the $1.99 billion WisdomTree Emerging Markets Equity Income Fund (NYSEArca:DEM). E-Trade, the online discount broker that burst onto the scene around the time of the Internet bubble, today became the latest company to unveil commission-free ETF trading, with a program that includes 93 ETFs from three different fund sponsors, WisdomTree, Global X and Deutsche Bankâs db-X. Among the funds from New York-based Global X, which specializes in part on equity ETFs targeting the world of commodities, E-Trade will offer commission-free trading on the Global X Uranium ETF (NYSEARca:URA) and the Global X Global X Silver Miners ETF (NYSEArca:SIL).
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That includes the $1.99 billion WisdomTree Emerging Markets Equity Income Fund (NYSEArca:DEM). The E-Trade Program The ETFs featured in the program include some of New York-based WisdomTreeâs most successful funds, such as its line-up of equity products designed with indexes that screen companies for a history of attractive dividend payments. Schwab Started Trend As noted, San Francisco-based Schwab started the trend when it rolled out the first of its proprietary ETFs in November 2009, offering free trades to any of its clients that invested in its ETFs.
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f52a120d-dfc7-483b-bb79-61e3e2c6567e
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727230.0
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2011-12-08 00:00:00 UTC
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Are Emerging Markets Cheap?
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DEM
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https://www.nasdaq.com/articles/are-emerging-markets-cheap-2011-12-08
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nan
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nan
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By Morningstar :
By Patricia Oey
Emerging markets have been one of the worst-performing asset classes in 2011, weighed by heavy losses in markets such as Brazil and India. Some of the issues that affected emerging markets earlier this year include rising inflation and an anticipated slowdown in growth due to local tightening monetary policies and weaker export demand. And whenglobal marketvolatility shot up in August and September, emerging markets dropped far lower than did U.S. equities, though not to the degree observed in late 2008. Investors in emerging markets were also negatively affected when strong risk aversion resulted in a rising U.S. dollar--in September, the Brazilian real fell about 16% and the South Korean won fell 9% against the U.S. dollar. Will emerging-markets equities have a better year in 2012?
Valuations in emerging markets (as measured by the MSCI Emerging Markets Index) are near 10-year lows, excluding 2008, which reflects slowing GDP growth rates and manufacturing activity. Emerging markets' trailing 12-month P/Es are also near five-year lows relative to that of the S&P 500. Most emerging-markets countries have more leeway to adjust their monetary and fiscal policies to support growth, and inflation risks have ebbed since earlier this year. Should global volatility recede to more normal levels, we think low valuations and proactive stimulus measures should support improving emerging-markets performance in 2012.
But while we are comfortable with the fundamentals for most of the larger emerging markets, when sentiment regarding the Europe debt crisis become very negative, it will have an outsized negative effect on emerging-markets stocks, relative to developed-markets stocks.
The two largest emerging-markets ETFs both track the market-cap-weighted MSCI Emerging Markets Index-- Vanguard MSCI Emerging Markets ( VWO ) and iShares MSCI Emerging Markets ( EEM ). These funds have heavy weightings in countries such as China, Brazil, South Korea, and Taiwan. We'll take a closer look at these markets to identify what some of the main drivers of these funds will be in 2012.
click to enlarge
China
Pessimism reigns on Chinese stocks--the MSCI China Index fell 20.2% (in the year to date through Nov. 30), versus a decline of 17.2% for the MSCI Emerging Markets Index. The Chinese manufacturing sector contracted in November for the first time in nearly three years, which reflected declines in both export orders and new domestic orders. And while China has made progress in taming the real estate bubble, a construction slowdown may be difficult to afford as export growth slows. The weakening real estate market and uncertainties regarding the quality of Chinese banks' loan book are the two major reasons for the underperformance of the Chinese financial sector, which accounts for 34% of the MSCI China Index. The financial sector is generally the largest sector weighting in a Chinese cap-weighted index fund.
After a year of monetary tightening to address rising inflation, the Chinese government unexpectedly lowered the reserve requirement ratio for banks by 50 basis points on Nov. 30. This suggests that the government remains committed to maintaining high-single-digit GDP growth. It will be a difficult balancing act in the near term, as the Chinese government tries to stimulate growth without reflating an asset bubble, maintain control over the yuan exchange rate, and ensure stability in its banking and real estate sector.
Given these risks, we are the least optimistic about the outlook for China in 2012 relative to the other major emerging markets. However, we expect the Chinese government to continue to take steps to stimulate growth into 2012, and this could provide a small boost to Chinese equities. Investors in broad cap-weighted funds such as VWO and EEM who are negative on China can consider reducing their heavy 17% China exposure by taking a short position in iShares FTSE China 25 Index ( FXI ), whose holdings are very similar to the Chinese holdings of EEM and VWO.
Taiwan
Aside from China, we are more optimistic about the outlook for the other larger emerging markets. Taiwan accounts for about 11% in VWO and EEM, but it accounts for a significant 22% and 26% in popular dividend-weighted WisdomTree Emerging Markets Equity ( DEM ) and WisdomTree Emerging Markets Small Cap ( DGS ), respectively. At this time, the Taiwan market, as measured by the MSCI Taiwan Index, is trading near a five-year trailing 12-months P/E low relative to that of the S&P 500 and the MSCI EM Index. This is due to Taiwanese companies' strong export orientation (exports account for 62% of Taiwan's GDP), where slowing developed markets is expected to negatively affect corporate Taiwan. However, 50% of the MSCI Taiwan Index is composed of technology firms, which are positioned to capitalize on rising penetration of smart phone and tablet use, especially in the emerging markets. The index's second-largest sector allocation is financials (at 16%), which will benefit from planned regulation that will allow for stronger ties with Mainland banks. We also think that stimulatory measures in China may benefit Taiwan's material (15% of the index) and industrial (4%) sectors.
However, one near-term risk is Taiwan's elections on Jan. 14. At this time, the incumbent Ma Ying-jeou, who has overseen strengthening economic ties between Taiwan and China during this four-year term, is polling with a very small lead over his main challenger who, if elected, will likely slow down the pace of economic liberalization with China. Should Ma lose this election, we think this would be a negative for Taiwanese equities.
Brazil
Like Taiwan, Brazil is another major emerging market that is trading at trailing 12-months P/E ratios that are near a five-year low relative to that of the S&P 500 and the MSCI EM Index. Inflation, which continues to be near the central bank's 6.5% limit, appears to be easing, and the government has started to move forward with fiscal and monetary stimulus. This should provide a near-term boost, as Brazil's longer-term growth story--a relatively young and growing population and rising commodity exports to emerging markets--hits a speed bump due to slowing global economic growth. Two weeks ago, Brazil eliminated the 2% tax foreign investors have to pay when they purchase Brazilian equities--this law was instituted in October 2009 when strong foreign fund flows into Brazil drove a strong rally in Brazil equities and the Brazilian real.
Miner Vale (VALE), which accounts for about 15% of the MSCI Brazil Index, should benefit from planned domestic infrastructure spending ahead of the 2014 World Cup and 2016 Summer Olympics. Vale is also leveraged to China's economic growth and may benefit from a Chinese stimulus. Brazilian banks, the index's largest sector allocation at 25%, have healthy balance sheets and attractive long-term growth opportunities in consumer and commercial banking.
South Korea
South Korea has been one of the stronger-performing emerging markets. For the year to date (through Nov. 30), iShares MSCI South Korea Index (EWY) was down only 10.9%. One of the reasons for this is that, as an exporter, it competes more with Japanese companies. Both countries have globally recognized brands, and South Korean firms have benefited as the Japanese yen has continued to appreciate since the 2008 financial crisis. South Korean exporters should also enjoy a boost in the near term following the recent signed free-trade agreement with the U.S. Samsung Electronics, which accounts for 18.5% of the MSCI South Korea Index, is a global technology leader in LCDs and memory chips, giving it a competitive advantage in these highly cyclical sectors, and stands to benefit from strong sales of its smart phones (Samsung climbed to the top of the global smartphone market in the third quarter of 2011, with a 23.8% market share) and tablets.
However, the South Korean market isn't as cheap as the other larger emerging markets, and besides slowing global growth, its consumers have one of the highest levels of household debt among major countries in the OECD, which could weigh on domestic consumption growth.
Disclosure: Morningstar licenses its indexes to certain ETF and ETN providers, including BlackRock, Invesco, Merrill Lynch, Northern Trust, and Scottrade for use in exchange-traded funds and notes. These ETFs and ETNs are not sponsored, issued, or sold by Morningstar. Morningstar does not make any representation regarding the advisability of investing in ETFs or ETNs that are based on Morningstar indexes.
See also The Top 3 Dow Dogs For 2012 on seekingalpha.com
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Some of the issues that affected emerging markets earlier this year include rising inflation and an anticipated slowdown in growth due to local tightening monetary policies and weaker export demand. Taiwan accounts for about 11% in VWO and EEM, but it accounts for a significant 22% and 26% in popular dividend-weighted WisdomTree Emerging Markets Equity ( DEM ) and WisdomTree Emerging Markets Small Cap ( DGS ), respectively. It will be a difficult balancing act in the near term, as the Chinese government tries to stimulate growth without reflating an asset bubble, maintain control over the yuan exchange rate, and ensure stability in its banking and real estate sector.
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Some of the issues that affected emerging markets earlier this year include rising inflation and an anticipated slowdown in growth due to local tightening monetary policies and weaker export demand. Taiwan accounts for about 11% in VWO and EEM, but it accounts for a significant 22% and 26% in popular dividend-weighted WisdomTree Emerging Markets Equity ( DEM ) and WisdomTree Emerging Markets Small Cap ( DGS ), respectively. Valuations in emerging markets (as measured by the MSCI Emerging Markets Index) are near 10-year lows, excluding 2008, which reflects slowing GDP growth rates and manufacturing activity.
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Some of the issues that affected emerging markets earlier this year include rising inflation and an anticipated slowdown in growth due to local tightening monetary policies and weaker export demand. Taiwan accounts for about 11% in VWO and EEM, but it accounts for a significant 22% and 26% in popular dividend-weighted WisdomTree Emerging Markets Equity ( DEM ) and WisdomTree Emerging Markets Small Cap ( DGS ), respectively. Valuations in emerging markets (as measured by the MSCI Emerging Markets Index) are near 10-year lows, excluding 2008, which reflects slowing GDP growth rates and manufacturing activity.
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Some of the issues that affected emerging markets earlier this year include rising inflation and an anticipated slowdown in growth due to local tightening monetary policies and weaker export demand. Taiwan accounts for about 11% in VWO and EEM, but it accounts for a significant 22% and 26% in popular dividend-weighted WisdomTree Emerging Markets Equity ( DEM ) and WisdomTree Emerging Markets Small Cap ( DGS ), respectively. Will emerging-markets equities have a better year in 2012?
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727231.0
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2011-12-02 00:00:00 UTC
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Arnottâs Research Affiliates Sues WisdomTree
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https://www.nasdaq.com/articles/arnottas-research-affiliates-sues-wisdomtree-2011-12-02
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nan
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Research Affiliates, Rob Arnottâs fundamental indexing firm, filed a patent infringement lawsuit against WisdomTree Investments in federal court in Los Angeles, making real what some in the ETF industry have suspected was brewing for some time.
Many had suspected a legal showdown was in the cards, as both firms are behind exchange-traded funds using indexes that screen securities for specific properties that are designed to enhance investment returns. Arnottâs firm is widely recognized in the ETF industry as the pioneer of what he calls âfundamental indexing,â though it remains to be seen whether his Newport Beach, Calif.-based firm will prevail in the suit it launched.
The lawsuit, filed in the U.S. District Court for the Central District of California, alleges that WisdomTree developed financial products using proprietary information that Research Affiliates already had patented, Arnottâs firm said in a press release. Also named in the lawsuit were Mellon Capital Management Corp., and WisdomTreeâs exchange-traded fund distributor, ALPS Distributors.
âResearch Affiliates has always been a leading innovator of financial products, and we have protected our intellectual property with patents,â Arnott, the chairman and chief executive officer of Research Affiliates, said in the press release. âOur main focus is product quality and performance, but we will protect our intellectual property and the interests of our business partners when our patents are infringed.â
Research Affiliatesâ system screens companies for four different qualities before they can be included in a so-called RAFI index. Those parameters are:book value, cash flow, sales and dividends.
The dividend screen may have an outsized importance in the suit, as WisdomTreeâs take on fundamental indexing also involves screening companies for their histories of paying dividends. WisdomTree indexes also screens for earnings.
Officials at New York-based WisdomTree werenât immediately available to comment.
Research Affiliates is strictly an indexing firm, licensing its benchmarks to fund sponsors, while WisdomTree is both an indexing firm and an ETF sponsor. It is one of the rare companies in the U.S. ETF industry that creates and owns indexes that underlie its own funds.
At issue in the lawsuit are the following patents:
U.S. Patent No. 7,747,502 entitled âUsing Accounting Data Based Indexing to Create a Portfolio of Assetsâ
U.S. Patent No. 7,792,719 entitled âValuation Indifferent Non-Capitalization Weighted Index and Portfolioâ
U.S. Patent No. 8,005,740 entitled âUsing Accounting Data Based Indexing to Create a Portfolio of Financial Objectsâ
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The Story Of PRF
One of Research Affiliatesâ bigger clients is Wheaton, Ill.-based Invesco PowerShares, which has 17 ETFs linked to RAFI indexes that together have $3.17 billion in assets. PowerShares listed the first RAFI-based ETF a bit more than five years ago.
Early this year, PowerShares and Research Affiliates trumpeted the returns of that fund, the PowerShares FTSE RAFI US 1000 Portfolio (NYSEArca:PRF), saying the fundamentally indexed large-cap fund had five-year returns that were almost twice those of the S'P 500 Index.
They said PRF returned 23.1 percent in the period, including reinvested dividends, compared with 11.99 percent for the S'P 500 and 13.81 percent for the Russell 1000 Index of large-cap companies.
WisdomTree, which employs Wharton economics professor Jeremy Siegel as a senior consultant, had total ETF assets of almost $12 billion as of Dec. 1, according to data compiled by IndexUniverse.
It has a number of successful funds, many that screen securities for dividends. One such fund that has gotten good traction recently is the WisdomTree Emerging Markets Equity Income Fund (NYSEArca:DEM). DEM, which launched in July 2007, now has almost $2 billion in assets.
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Don't forget to check IndexUniverse.com's ETF Data section.
Copyright ® 2011 IndexUniverse LLC . All Rights Reserved.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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One such fund that has gotten good traction recently is the WisdomTree Emerging Markets Equity Income Fund (NYSEArca:DEM). DEM, which launched in July 2007, now has almost $2 billion in assets. Research Affiliates, Rob Arnottâs fundamental indexing firm, filed a patent infringement lawsuit against WisdomTree Investments in federal court in Los Angeles, making real what some in the ETF industry have suspected was brewing for some time.
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One such fund that has gotten good traction recently is the WisdomTree Emerging Markets Equity Income Fund (NYSEArca:DEM). DEM, which launched in July 2007, now has almost $2 billion in assets. Research Affiliates, Rob Arnottâs fundamental indexing firm, filed a patent infringement lawsuit against WisdomTree Investments in federal court in Los Angeles, making real what some in the ETF industry have suspected was brewing for some time.
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One such fund that has gotten good traction recently is the WisdomTree Emerging Markets Equity Income Fund (NYSEArca:DEM). DEM, which launched in July 2007, now has almost $2 billion in assets. Research Affiliates, Rob Arnottâs fundamental indexing firm, filed a patent infringement lawsuit against WisdomTree Investments in federal court in Los Angeles, making real what some in the ETF industry have suspected was brewing for some time.
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One such fund that has gotten good traction recently is the WisdomTree Emerging Markets Equity Income Fund (NYSEArca:DEM). DEM, which launched in July 2007, now has almost $2 billion in assets. The dividend screen may have an outsized importance in the suit, as WisdomTreeâs take on fundamental indexing also involves screening companies for their histories of paying dividends.
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0bd16b8c-86fc-4478-83f0-b4e46d2c4102
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727232.0
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2011-11-09 00:00:00 UTC
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ETFs For A Deleveraging World
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DEM
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https://www.nasdaq.com/articles/etfs-deleveraging-world-2011-11-09
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nan
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nan
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By Morningstar :
A version of this article first appeared in the September 2011 issue ofMorningstar ETFInvestor.
By Samuel Lee
Those who predicted a phoenix-like recovery from the financial crisis were wrong. Even some bearish prognosticators have been surprised by the rich world's weak growth. Why has this been the case? And what can investors do about it?
The last recession wasn't like others. Prognosticators wedded to the traditional, central-bank-induced recession framework have consistently gotten things wrong. The economy didn't swiftly bounce back up to its trend line. The Federal Reserve's unprecedented monetary expansion hasn't resulted in hyperinflation, nor does it seem to have helped the economy much. Massive government deficits haven't caused interest rates to surge.
One approach stands out for its ability to explain these facts: a rich-world "balance-sheet" recession, postulated by international economist Richard Koo. Such a recession begins when a nationwide debt-fueled asset bubble pops and burdens firms and households with devalued assets and mounds of debt. Normal profit-maximizing behavior is turned on its head as private actors focus on paying down their debts. Monetary policy becomes impotent as firms become unwilling to borrow money at any interest rate. The deleveraging process takes years and smothers growth until private balance sheets are repaired. In the mean time, public deficit spending has to take up the slack lest the economy shrivel. However, the rich world lacks the appetite for more public spending; austerity is the watchword. The model motivating the balance-sheet recession suggests closing the public purse will hurt the economy and prolong the pain.
According to the McKinsey Global Institute report "Debt and deleveraging: The global credit bubble and its economic consequences," the rich world has only started deleveraging thanks to government spending taking up the slack. The report identifies four deleveraging patterns based on 45 episodes from 1930 to the present: belt-tightening, high inflation, massive default, and growing out of debt. Deleveragings have historically taken about seven years and usually caused recessions in the first few years. Growing out of debt has been rare: The few times it occurred were associated with a peace-time dividend or an oil boom.
If history repeats, a rich-world recession is a good possibility, motivating our first pick: PowerShares S&P 500 Low Volatility ( SPLV ). Its constituent stocks are slower-growing enterprises with low debt and ample cash flow and are less sensitive to the market's gyrations. We're hedging our bets here. If the market tanks, this fund will go down with it, just not as much. However, if the economy picks up, we still get rewarded. Besides, low-volatility stocks seem to be underpriced worldwide because of investor biases and skewed fund manager incentives--they're just a good idea in general.
Deleveragings are sometimes helped along by inflation, currency devaluation, or financial repression. Inflation and currency devaluation are usually the tools of emerging markets. Carmen Reinhardt argues that many developed countries have engaged in "financial repression," the subtle liquidation of government debt through policies such as interest-rate caps, capital controls, and forced lending to captive audiences. Gold generally does well under any of the three scenarios. Our pick is iShares Gold Trust ( IAU ). Gold prices have been on an upward tear recently, raising fears of frothiness. However, its attractive insurancelike qualities warrant a premium. Because gold prices tend to exhibit strong autocorrelation--trendiness--gold's risk can be mitigated by keeping an eye on the price trend.
Finally, avoiding deleveraging economies may make sense. Emerging markets are engaged in massive expansion of their balance sheets, leading to a virtuous cycle of asset appreciation and income growth, which in turn spurs further asset appreciation. With relatively low debt/GDP ratios and massive foreign exchange reserves, some emerging markets have years to go before they reach rich-world levels of leverage. However, emerging markets still have endemic corruption and poor rule of law. We like WisdomTree Emerging Markets Equity Income ( DEM ) for its focus on dividend-paying companies, which we believe muzzles manager misbehavior such as share dilution and empire-building. The value effect is also stronger in less-efficient markets, so DEM might reap a higher premium than value strategies in developed markets.
Many investors seem to think that the last recession was like others, just deeper. History and theory suggest that massive deleveragings are creatures unto themselves. Ignore them at your peril.
See also Is There More Than Meets The Eye To The Capstone-GE Collaboration? on seekingalpha.com
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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We like WisdomTree Emerging Markets Equity Income ( DEM ) for its focus on dividend-paying companies, which we believe muzzles manager misbehavior such as share dilution and empire-building. However, emerging markets still have endemic corruption and poor rule of law. The value effect is also stronger in less-efficient markets, so DEM might reap a higher premium than value strategies in developed markets.
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However, emerging markets still have endemic corruption and poor rule of law. We like WisdomTree Emerging Markets Equity Income ( DEM ) for its focus on dividend-paying companies, which we believe muzzles manager misbehavior such as share dilution and empire-building. The value effect is also stronger in less-efficient markets, so DEM might reap a higher premium than value strategies in developed markets.
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However, emerging markets still have endemic corruption and poor rule of law. We like WisdomTree Emerging Markets Equity Income ( DEM ) for its focus on dividend-paying companies, which we believe muzzles manager misbehavior such as share dilution and empire-building. The value effect is also stronger in less-efficient markets, so DEM might reap a higher premium than value strategies in developed markets.
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However, emerging markets still have endemic corruption and poor rule of law. We like WisdomTree Emerging Markets Equity Income ( DEM ) for its focus on dividend-paying companies, which we believe muzzles manager misbehavior such as share dilution and empire-building. The value effect is also stronger in less-efficient markets, so DEM might reap a higher premium than value strategies in developed markets.
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b5f0c1bc-0ea6-48c3-bfdc-b52a0175c02b
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727233.0
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2011-05-09 00:00:00 UTC
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Mature Bull Market: Good Time to Lighten Exposure to Risk
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https://www.nasdaq.com/articles/mature-bull-market-good-time-lighten-exposure-risk-2011-05-09
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nan
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The stock market adage "sell in May and go away" is based on the historical tendency for stocks to generate most of their positive returns during the six-month period from November 1 through April 30. Since 1950, the Dow has appreciated 7.4% on average during this favorable period, versus only a 0.4% average return in the May 1 through October 31 interval. It is not difficult to imagine this seasonal pattern playing out again this year. The stock market was very strong in the favorable six month period just ended. The Dow gained 13% from November 1 through April 30. Looking out over the next six months, there are plenty of factors that could derail the bull market, including:
1. The end of Fed money printing (for now anyway). When the Federal Reserve completes its $600 billion debt monetization program at the end of June, it will no longer be injecting $75 billion per month of newly printed money into the financial system. To be sure, the Fed will not be tightening monetary policy by either restoring a positive interest rate or reducing it bloated $2.7 trillion balance sheet. Nonetheless, the end of so-called quantitative easing will undoubtedly test investor risk appetites and the powerful upside momentum of stocks since the program was announced.
2. Peaking leading economic indicators. The economy has positive momentum now, but unprecedented monetary and fiscal stimulus will begin to be withdrawn in the months ahead, and it remains to be seen how the economy will fare. The stock market leads the economy, and the U.S. economy in 2012 is very likely to be weaker than 2011, due in part to the expiration of stimulus enacted in late 2010 (i.e. reduced social security withholding and 100% depreciation on new capital investment).
3. Inflation pressures unlikely to be "transitory." The Fed continues to obfuscate the inflation problem and is out on a limb relative to almost every major central bank in the world. Inflation pressures are much more likely to be "sticky" than "transitory." Given that the U.S. average price of gasoline is $3.94 today versus $2.80 six months ago (a 40% increase), Americans know that the Fed's story doesn't add up. Although monetary policy remains extraordinarily loose in the U.S., most foreign central banks are tightening monetary conditions to confront obvious inflation pressures, which raises risks for assets tied to the global growth and reflation theme.
4. U.S. debt-ceiling turmoil and the recognition that we are entering the endgame of the debt issue. The country and its politicians are finally acknowledging the scope and urgency of our fiscal problem. There is a growing recognition of the necessity of an overhaul of the federal budget and entitlement programs, combined with increased federal tax revenue. There is no intellectual mystery involved in balancing the budget in a centrist fashion, but the political parties are intransigent and deeply entrenched. Unless the bipartisan "gang of six" in the U.S. Senate can save the day, the parties appear incapable of compromising around a plan for fiscal sustainability. This would be a tragic crisis of leadership. The issue for the markets is that we can't take enough out of the debt without hurting the economy, but if we don't act, we continue down the immoral path of mortgaging our economic future and debasing the dollar. Our fiscal situation is clearly unsustainable and dangerous, but for the time being we face neither an imminent collapse nor a probable solution, which creates a perplexing investment environment indeed.
5. U.S. Dollar in the danger zone. Given the "print and spend" policies of the U.S., it is not surprising that the U.S. dollar index is testing historic lows (See Exhibit 1). On the back of deeply negative "real" interest rates, in contrast to the tightening posture of most foreign central banks, the dollar has recently been depreciating at an increasingly rapid pace. Sentiment is very bearish against the US dollar, and the anti-dollar trade is crowded. Contrarian investing suggests that at least a temporary low in the USD should be close at hand, but given how dollar-bearish our policies are, and how the world is looking for ways to reduce USD exposure, I wouldn't want to call a bottom. A break to new all-time lows in the USD has the potential to be very destabilizing to global financial markets.
Exhibit 1: Not a Pretty Picture
Given the above risks, and with stocks trading at or near bull market highs, it makes sense to trim risk in portfolios. Another reason to take a more cautious stance is the sentiment backdrop. Indicators of investor psychology suggest that optimism is becoming excessive. Examples include: (i) a three-to-one ratio of bulls-to-bears in the most recent report from Investors Intelligence, which tracks the opinion of investment newsletter writers; (ii) an 82% commitment to equities reflected in the latest investment manager survey conducted by the American Association of Investment Managers; (iii) a recent sub-15 reading in the CBOE Volatility Index ((VIX)), reflecting extreme complacency (see Exhibit 2); and (iv) over three-to-one bull-to-bear positioning among market-timing retail investors who use Rydex leveraged mutual funds (see Exhibit 3). When a bullish outlook is the opinion of the vast majority, it is usually a good time to lighten up on exposure to risk.
Exhibit 2: Lowest VIX Reading Since Start of Bull Market
Exhibit 3: Extreme Bullishness of Rydex Leveraged Mutual Fund Traders is a Contrarian Sell Signal
Today's bull market is mature by historical standards, both in terms of duration and magnitude, and has quite possibly entered a phase where the remaining upside potential is smaller than the downside risk from whatever peak is reached. The current investment environment is one where no asset class looks attractively priced, and most look expensive with little margin of safety. The situation is made even more difficult by the dearth of safe assets offering reasonable returns while waiting for risky assets to become more attractively priced. This makes asset allocation decisions neither simple nor comfortable.
The principal cause of this investment dilemma is of course the Federal Reserve, which exercises far too much influence on financial markets and must eventually be reformed. The investment landscape today is excessively defined by a psychological battle between the Fed and investors. Investors rationally want to control their risk exposures, but any money held in short-term, dollar-denominated deposits runs the risk of being victimized by negative real interest rate and dollar debasement. One analyst I follow offered the wry metaphor that investors today are guinea pigs in some kind of Princeton Economics Department experiment! Prudent investors with an average tolerance for risk are naturally looking for a solution to this problem. With that in mind, I assembled the following fully invested ETF portfolio as one potential approach.
Stocks:
The stock market as a whole is overvalued on the basis of cyclically adjusted earnings, but not egregiously so. There are areas of the stock market that provide reasonable value. Moreover, the Fed "owns" the stock market like it has never owned it before, given that it has articulated a policy of stimulating and supporting stock prices. Fed policy will remain very loose, and it is reasonable to expect another round of quantitative easing the next time the stock market falls 15% or more. To protect purchasing power and achieve some real growth of capital, after inflation, investors need to maintain exposure to stocks. We think around 40% to 50% is appropriate at this point in time for a moderate risk asset allocation portfolio, allocated along the following lines.
10%-15% Vanguard Dividend Appreciation (VIG): VIG provides exposure to approximately 130 highquality U.S. stocks - large-cap companies with global franchises, solid balance sheets, and consistent earnings and dividends. VIG has a current dividend yield of 2.1%, net of fund expenses.
10%-15% WidomTree Large Cap Dividend ( DLN ): DLN provides exposure to the 300 largest dividend paying companies in the U.S. DLN is weighted by aggregate annual dividends paid rather than dividend yield, and has a current dividend yield of 2.7%, net of fund expenses
10% Vanguard FTSE All-World Ex-U.S. (VEU): VEU provides broad-based exposure to foreign stocks, which account for 60% of global stock market capitalization. VEU tracks an index of over 2,100 foreign stocks from over 40 countries in developed and emerging markets.
5% WisdomTree Japan Total Dividend ( DXJ ): DXJ tracks a dividend-weighted index of over 300 Japanese stocks. The fund hedges exposure to fluctuations between the value of the U.S. dollar and the Japanese yen. As a result, DXJ provides exposure to Japanese stocks but not the Japanese currency. Japanese stocks are among the most attractively valued in the world. The index underlying DXJ is valued at approximately one times book value (net assets). DXJ's current dividend yield is 2.1%, net of fund expenses.
5% WisdomTree Emerging Markets Equity Income ( DEM ): DEM tracks a dividend-weighted index of approximately 270 companies from approximately 20 emerging markets. DEM's dividend yield of approximately 4% (net of fund expenses) provides attractive exposure to emerging markets stocks.
Bonds:
It is exceedingly difficult to find anything attractively priced in the bond markets. In virtually every area of the investment grade bond market, yields are lower than duration, so investors are not getting paid to take interest rate risk. The consequence is that for most bond funds, the upside is strictly limited, and returns can be easily wiped out by as little as a one percent rise in interest rates. The objective from the following package of bond ETFs is to preserve capital on an inflation-adjusted basis, and have dry powder to deploy when better opportunities arise, either in the bond market or in other asset classes.
10% SPDR Barclays Capital Short Term Corporate Bond (SCPB): SCPB owns approximately 450 short-term, investment grade U.S. corporate bonds. The fund has an average duration of 1.9 years and a 1.4% yield.
10-15% PIMCO Enhanced Short Maturity Strategy (MINT): MINT is an enhanced money market fund, which owns investment-grade debt securities with maturities under one year. The fund has a 1.0% yield.
5% PIMCO 1-5 Year U.S. TIPS (STPZ): STPZ tracks an index of short-term inflation-linked Treasury bonds. Given that short-term TIPs bonds currently have slightly negative real yields, the returns from STPZ are driven by increases in the CPI (the consumer price index inclusive of food and energy prices), which are passed along to TIPs bond holders.
5% WisdomTree Asia Local Debt Fund ( ALD ): ALD owns government debt issued by twelve countries in the Asia Pacific ex-Japan region, including Australia, South Korea, Singapore, Malaysia, and others. The debt is denominated in the currencies of the issuing countries, providing exposure to currencies with attractive fundamentals and appreciation prospects. ALD is investment-grade, has an average duration of 3 years and a current yield of 2.8%.
Alternative Investments:
5% to 10% SPDR Gold Shares ( GLD ): GLD tracks the performance of the price of gold bullion. Gold continues to be supported by investment demand for a safe haven from potential economic and financial shocks, and from the debasement of paper currencies. The negative real interest rate policy recently reaffirmed by the Federal Reserve will continue to cause gold to appreciate in U.S. dollar terms. Gold is in a well-defined upward price channel (see Exhibit 4), and can be more safely purchased in the lower portion of this channel.
5% United States Commodity Index Fund (USCI): USCI provides exposure to a diverse group of 14 commodities encompassing the major commodity sectors. USCI employs rules-based strategies to mitigate the effects of contango (i.e. the negative return from rolling futures contracts) and take advantage of positive momentum trends.
3% Proshares Ultrashort Euro (EUO) : EUO provides 200% inverse exposure to fluctuations between the value of the U.S. dollar and the Euro. This position provides a hedge to commodity positions and to risks arising from the European sovereign debt crisis.
3% iPath S&P 500 VIX Mid-Term Futures ETN (VXZ): VXZ is a hedge against possible stock market volatility and weakness over the coming six months. Currently, VXZ owns VIX futures that expire between August and November, and this term structure will be moved out one month as each month passes (i.e. next month the holdings will encompass VIX futures expiring September through December).
Exhibit 4: GLD at Upper End of Price Channel
See also iShares Turkey ETF Poised for Success on seekingalpha.com
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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5% WisdomTree Emerging Markets Equity Income ( DEM ): DEM tracks a dividend-weighted index of approximately 270 companies from approximately 20 emerging markets. DEM's dividend yield of approximately 4% (net of fund expenses) provides attractive exposure to emerging markets stocks. Gold continues to be supported by investment demand for a safe haven from potential economic and financial shocks, and from the debasement of paper currencies.
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5% WisdomTree Emerging Markets Equity Income ( DEM ): DEM tracks a dividend-weighted index of approximately 270 companies from approximately 20 emerging markets. DEM's dividend yield of approximately 4% (net of fund expenses) provides attractive exposure to emerging markets stocks. Gold continues to be supported by investment demand for a safe haven from potential economic and financial shocks, and from the debasement of paper currencies.
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5% WisdomTree Emerging Markets Equity Income ( DEM ): DEM tracks a dividend-weighted index of approximately 270 companies from approximately 20 emerging markets. DEM's dividend yield of approximately 4% (net of fund expenses) provides attractive exposure to emerging markets stocks. Gold continues to be supported by investment demand for a safe haven from potential economic and financial shocks, and from the debasement of paper currencies.
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Gold continues to be supported by investment demand for a safe haven from potential economic and financial shocks, and from the debasement of paper currencies. 5% WisdomTree Emerging Markets Equity Income ( DEM ): DEM tracks a dividend-weighted index of approximately 270 companies from approximately 20 emerging markets. DEM's dividend yield of approximately 4% (net of fund expenses) provides attractive exposure to emerging markets stocks.
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e336ba50-3811-4f6f-904c-0344a2433173
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727234.0
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2011-03-10 00:00:00 UTC
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A Surprising Dividend Play That May Make You Rich
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DEM
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https://www.nasdaq.com/articles/surprising-dividend-play-may-make-you-rich-2011-03-10
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nan
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nan
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Theacquisition of wealth is paramount to our financial futures . Most Americans have historically depended on home ownership for accumulation of wealth, the recent crisis notwithstanding. But most people don't realize that there's a better way.
One of the greatest ways to compound wealth is to buy dividend-paying stocks and reinvest the dividends. Each quarter (some stocks even pay monthly), your dividends buy moreshares , adding to the total on which your nextdividend payment is calculated. But investing in dividend-paying stocks that consistently raise dividends puts the compounding effect on steroids.
Consider this:
Johnson & Johnson ( JNJ ) has increased its dividends for the past 48 straight years, at an average rate of about 13.4% per year since 2000. If you purchased 200shares of JNJ in 1980 (an investment of $14,600) and never added new money but just reinvested all the dividends, the position would be worth $1.15 million today. That's a 7,868% return. In other words, it's like buying a house in 1980 for $146,000 that today is worth about $11.5 million. Home values didn't appreciate anywhere near that much. That's the power of growing dividends.
Similarly, a 200-share investment in Pepsi ( PEP ) -- which has also grown itsdividend consistently -- in 1990 would have cost $21,420. With reinvested dividends, the position would have grown to $759,000 today. Again, imagine buying a $214,000 house in 1990 that is worth about $7.6 million today.
Going forward, dividends are most likely to grow in markets that are most likely to grow. Where do future markets look most promising? The same place economies are growing at light speed -- emerging markets .
Dividends and emerging markets seem like two terms that don't go together. Emerging markets have been known for capital appreciation and have typically not paid dividends. But things are changing. As these markets mature, more and more companies are beginning to pay dividends, returning more cash to shareholders than ever before. In fact, about 634 equities in the MSCI Emerging MarketsIndex paid dividends as of the end of September, according to data compiled by Bloomberg and JPMorgan Chase.
Investors have been noticing. The WisdomTree Emerging Markets Equity Income Fund ( DEM ) is an exchange-traded fund (ETF) that invests in 292 emerging-market dividend-paying companies (as of December 31) and currently yields about 3.3%. Although DEM was formed in 2007, it has since outperformed 99% of all emerging-market ETFs, returning more than 30%.
In addition to strong growth, emerging-market dividends offer something else -- diversification from the U.S. dollar. As the dollar continues to decline, the relative value of many emerging-market currencies appreciates, increasing the value of dividends in dollar terms.
Here are a couple of promising dividend payers...
CPFL Energia SA ( CPL ) is a Brazilian utility holding company and one of the largest companies in South America, with a 13% share of Brazil's power distribution market. The utility serves 6.4 million customers concentrated in the affluent states of Sao Paulo and Rio Grande do Sul.
A boomingeconomy and population growth have led to consistently rising power usage. Asearnings for CPFL have increased, so has the dividend, which has grown by an average of more than 27% in the past five years and by 37% in 2010. The stock currently yields a solid 6.4%, with the next dividend payment expected in May. The stock has returned a stellar average of more than 18% per year in the past five years, compared with an average of less than 3% for the S&P 500.
There is no withholding tax on the dividends. Payments are made in Brazilian reals and converted to U.S. dollars. Brazil's stronger relative economic growth bodes well for the future strength of the real versus the dollar, which could help sweeten the dividend when it is translated into dollars.
Philippine Long Distance Telephone Co. ( PHI ) is the largest telecom provider in the Philippines, serving more than 60% of the nation's fixed lines and about 55% of the cellular market. The Philippines is one hot market. Theeconomy grew at a whopping 7.3% in 2010 and the Philippine stock market was the best-performing market in the world for the year, posting a 77% return.
The market has pulled back about 12% from its highs, and Philippine Long Distance has also pulled back 18% from its yearly high. Although the market has recently consolidated, the future appears bright for the Philippine market. The government has forecast 8%GDP growth for 2011.
The stock pays two dividends a year, which totaled $4.80 per American depository share (ADS) in 2010, equating to ayield of about 9%. This company also has a strong history of raising dividends, which have risen more than 600% since 2005. Consensus analyst estimates are calling for earnings growth of 9% in 2011.
Action to Take --> Reinvesting growing dividends over time has proven to be an amazing wealth builder. Emerging markets will likely provide strong economic growth in the years ahead. Both of these stocks are excellent candidates to provide consistent and growing dividends in the years ahead.
-- Tom Hutchinson
P.S. -- I don't know if you've seen this or not, but a Texas man has figured out how to collect thousands of dollars a month in dividend payments alone. Last year he made $41,161 this way. Whether you're on a fixed income or not, I'm sure you could benefit by copying this man's formula for your own use. Here's everything you need to know…
Disclosure: Neither Tom Hutchinson nor StreetAuthority, LLC hold positions in any securities mentioned in this article.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
© Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The WisdomTree Emerging Markets Equity Income Fund ( DEM ) is an exchange-traded fund (ETF) that invests in 292 emerging-market dividend-paying companies (as of December 31) and currently yields about 3.3%. Although DEM was formed in 2007, it has since outperformed 99% of all emerging-market ETFs, returning more than 30%. Each quarter (some stocks even pay monthly), your dividends buy moreshares , adding to the total on which your nextdividend payment is calculated.
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The WisdomTree Emerging Markets Equity Income Fund ( DEM ) is an exchange-traded fund (ETF) that invests in 292 emerging-market dividend-paying companies (as of December 31) and currently yields about 3.3%. Although DEM was formed in 2007, it has since outperformed 99% of all emerging-market ETFs, returning more than 30%. The market has pulled back about 12% from its highs, and Philippine Long Distance has also pulled back 18% from its yearly high.
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The WisdomTree Emerging Markets Equity Income Fund ( DEM ) is an exchange-traded fund (ETF) that invests in 292 emerging-market dividend-paying companies (as of December 31) and currently yields about 3.3%. Although DEM was formed in 2007, it has since outperformed 99% of all emerging-market ETFs, returning more than 30%. Dividends and emerging markets seem like two terms that don't go together.
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The WisdomTree Emerging Markets Equity Income Fund ( DEM ) is an exchange-traded fund (ETF) that invests in 292 emerging-market dividend-paying companies (as of December 31) and currently yields about 3.3%. Although DEM was formed in 2007, it has since outperformed 99% of all emerging-market ETFs, returning more than 30%. With reinvested dividends, the position would have grown to $759,000 today.
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768e0e35-1454-4de7-853d-b2b775cd5c7c
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727235.0
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2010-12-22 00:00:00 UTC
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McCall’s Call: ETFs For 2011, Part I
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DEM
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https://www.nasdaq.com/articles/mccalls-call-etfs-2011-part-i-2010-12-22
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nan
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nan
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U.S. stock markets are about to close out 2010 on a high note with all major indexes trading near two-year highs. It'll also be the second straight year of gains.
Unfortunately, many investors missed a majority of the rally in 2010 as they sat on the sidelines waiting for the double-dip recession to occur. But now that the probability of a double-dip has subsided, I think there are good reasons to be in stocks, and I'll try to make the case for reluctant investors to move at least some of their money out of cash and into equities next year.
I was bullish throughout 2010 and remain bullish heading into 2011. My price target for the S&P 500 Index is 1500. That's based on attractive valuations, the midterm election cycle as well as economic and technical factors. To put my outlook in context, the S&P 500 closed on Dec. 22 at 1258.84. Plainly stated, earnings seem to again be growing at a solid pace.
Typically I skirt the question of what my favorite investments are. But I'll stick my neck out this time and share some of my favorite ETFs heading into 2011. I chose these funds because they reflect long-term investment themes I've been focused on for a while.
I'll start with the first five now and fill in the rest next week in my final IndexUniverse.com column of 2010.
Financials And Emerging Markets
Financials seem like a good place to start. The large-cap financial stocks have been battered in the media as the culprits behind the financial collapse that arguably were one of the greatest contributors to the recession. Whether you subscribe to that, the bottom line is that investors must now analyze the sector going forward.
I think large-cap financial stocks will outperform the market in the coming year as investors realize the value in the beaten-down sector. My recommendation is the SPDR Financial Select Sector ETF (NYSEArca:XLF), which invests in a basket of 83 U.S.-based financial firms. The ETF has an expense ratio of 0.23 percent and a dividend yield of 1.0 percent.
Investors searching for exposure to the emerging markets as well as an above average dividend yield should consider the WisdomTree Emerging Markets Equity Income ETF (NYSEArca:DEM).
The ETF currently pays out a 4.5 percent dividend with an expense ratio of 0.63 percent. Taiwan and Brazil each make up about 19 percent of the ETF. Other top countries include South Africa, Turkey and Israel. DEM also has a big concentration in the telecom and financial sectors because it invests in companies that have relatively high payouts.
Commodities And Inflation
The next ETF, the Global X Lithium ETF (NYSEArca:LIT), makes the list because it gives investors exposure to a major investment theme that I think has years to grow, namely the emergence and growing importance of electric vehicles around the globe. It's also a supply/demand commodity play.
LIT invests in a total of 20 companies that search for and mine lithium as well as those that produce lithium batteries. The demand for lithium batteries should increase dramatically as the rollout of electric vehicles continues to expand. The ETF's expense ratio is 0.75 percent.
In my mind, inflation is already apparent in commodity prices, and over the next year, it will become a major headline-grabbing topic.
One of the better-performing sectors during inflationary times is timber and land. The Guggenheim Timber ETF (NYSEArca:CUT) invests in a basket of timber-related stocks from around the globe. The U.S. makes up 30 percent of the ETF, followed by Japan at 17 percent and Finland at 10 percent. CUT's expense ratio is 0.65 percent.
Another theme worth exploring for investors is rising food prices, and the Market Vectors Agribusiness ETF (NYSEArca:MOO) is a good mousetrap for taking advantage of the trend. It invests in agricultural commodity stocks as well as equipment and operations-related companies.
Supply issues are dogging agricultural commodities, as droughts have taken a toll on Australia and the U.S., and a deep freeze cut wheat supplies in Russia. Many companies MOO invests in are part of the solution, as they focus on ways of increasing food supplies with genetically altered seeds and pesticides. The ETF also gives investors exposure to international markets; 50 percent of the allocation in the U.S. Its net expense ratio is 0.56 percent.
As I said, I'll talk about the remaining five top ETFs for 2011 in my column next week. Among them will be my favorite metal ETF and an interesting way to play consumer spending. Until then, Happy Holidays.
Matthew D. McCall is editor of The ETF Bulletin andpresident of Penn Financial Group LLC, a Ridgewood, N.J.-based wealth management firm specializing in investment strategies using ETFs.
Don't forget to check IndexUniverse.com's ETF Data section.
Copyright ® 2010 Index Publications LLC . All Rights Reserved.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Investors searching for exposure to the emerging markets as well as an above average dividend yield should consider the WisdomTree Emerging Markets Equity Income ETF (NYSEArca:DEM). DEM also has a big concentration in the telecom and financial sectors because it invests in companies that have relatively high payouts. It's also a supply/demand commodity play.
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Investors searching for exposure to the emerging markets as well as an above average dividend yield should consider the WisdomTree Emerging Markets Equity Income ETF (NYSEArca:DEM). DEM also has a big concentration in the telecom and financial sectors because it invests in companies that have relatively high payouts. It's also a supply/demand commodity play.
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Investors searching for exposure to the emerging markets as well as an above average dividend yield should consider the WisdomTree Emerging Markets Equity Income ETF (NYSEArca:DEM). DEM also has a big concentration in the telecom and financial sectors because it invests in companies that have relatively high payouts. It's also a supply/demand commodity play.
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Investors searching for exposure to the emerging markets as well as an above average dividend yield should consider the WisdomTree Emerging Markets Equity Income ETF (NYSEArca:DEM). DEM also has a big concentration in the telecom and financial sectors because it invests in companies that have relatively high payouts. It's also a supply/demand commodity play.
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11e4539c-f878-4d4e-a7af-292d99652e12
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727236.0
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2010-11-25 00:00:00 UTC
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Short Term Risks of Investing in Emerging Markets Significantly Higher
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DEM
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https://www.nasdaq.com/articles/short-term-risks-investing-emerging-markets-significantly-higher-2010-11-25
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nan
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nan
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Prieur du Plessis submits:
Emerging-market equity prices as measured by the MSCI Emerging Markets Free Index are primarily driven by commodity prices and in particular by metal prices as measured by the Economist Metals Price Index. Currently emerging-market equities are approximately 8 - 10% overpriced given the level of metal prices.
Click on charts below to enlarge:
Sources: I-Net Bridge; Plexus Asset Management.
The ratio of the MSCI Emerging Market Free Index and MSCI Global Index is also driven by commodity prices and specifically metal prices. On a relative basis emerging-market equities tend to bottom earlier than mature markets and the ratio therefore acts as a leading indicator of metal prices. At this stage the still-rising and elevated level of the ratio suggests that metal prices are likely to hold up well despite the recent sell-off.
Sources: I-Net Bridge; Plexus Asset Management.
The yield on the JP Morgan Emerging Market Bond Index is at its lowest on record. Sentiment regarding emerging-market bonds is also significantly influenced by metal prices. The JP Morgan Emerging Market Bond Index yield (please note the reverse axis) has dropped significantly more than what metal prices suggested and therefore points to increased risk in emerging-market bonds.
Sources: I-Net Bridge; Plexus Asset Management.
Emerging-market bond yields took their cue from mature-market bonds, though, as the yield spread narrowly tracks that of the Metals Index. However, the yield spread (please note reverse axis) is currently 50 basis points lower than what it should have been given the current levels of the Metals Index. It therefore also indicates that emerging-market bonds are expensive relative to mature-market bonds.
Sources: I-Net Bridge; Plexus Asset Management.
The yield spread between the JP Morgan Emerging Market Bond Index and the calculated mature-market bond index is even lower than the range that existed before the economic malaise started in 2008. It will need a big push in metal prices to reduce the spread further.
My equally-weighted commodity currency index − consisting of the Australian dollar, Turkish lira, Brazilian real, Czech koruna, Thai baht, Hungarian forint, Russian rouble and SA rand - is driven by the same forces behind investments in emerging markets, namely metal prices. For some unknown reason the commodity currency index lagged and opened a gap with metal prices towards the end of last year. The gap closed only recently.
Sources: I-Net Bridge; Plexus Asset Management.
The commodity currency index has an inverse relationship with the yield spread of emerging-market bonds to U.S. treasuries, thereby indicating that commodity currencies rise when the risk of investing in emerging markets − as measured by the yield spread - declines and vice versa.
With the emerging-market bond yield spread expected to widen somewhat in the short term, commodity currencies can be expected to follow suit and weaken.
Sources: I-Net Bridge; Plexus Asset Management.
My country's currency, the South African rand, is currently slightly (5%) overvalued against the commodity currency index.
Sources: I-Net Bridge; Plexus Asset Management.
Bar the current situation where emerging-market equities and bonds are somewhat overpriced and a healthy market correction is needed to pull them back to realistic levels compared to mature markets, the longer-term outlook for investment markets in emerging economies is cloudy and becoming increasingly uncertain. Despite QE2, I see no quick fix to substantially boost consumer sentiment in the U.S., especially in light of the absence of new fixed investment given the significantly surplus capacity, severe problems in the housing market and the inelasticity of job creation to stimulatory measures.
Furthermore, global demand is likely to remain under pressure. I expect demand in the Eurozone to be lethargic, especially in light of the fiscal crisis in the PIIGS, Japan running the risk of returning to a recession, and emerging economies and China in particular reigning in their economies by hiking interest rates.
I do not see emerging-market economies tanking, though, but in my opinion the short-term risk of investing in emerging markets has increased significantly.
Disclosure : None
See also Steve Jobs: MarketWatch's CEO of the Decade on seekingalpha.com
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Furthermore, global demand is likely to remain under pressure. I expect demand in the Eurozone to be lethargic, especially in light of the fiscal crisis in the PIIGS, Japan running the risk of returning to a recession, and emerging economies and China in particular reigning in their economies by hiking interest rates. On a relative basis emerging-market equities tend to bottom earlier than mature markets and the ratio therefore acts as a leading indicator of metal prices.
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Furthermore, global demand is likely to remain under pressure. I expect demand in the Eurozone to be lethargic, especially in light of the fiscal crisis in the PIIGS, Japan running the risk of returning to a recession, and emerging economies and China in particular reigning in their economies by hiking interest rates. Prieur du Plessis submits: Emerging-market equity prices as measured by the MSCI Emerging Markets Free Index are primarily driven by commodity prices and in particular by metal prices as measured by the Economist Metals Price Index.
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Furthermore, global demand is likely to remain under pressure. I expect demand in the Eurozone to be lethargic, especially in light of the fiscal crisis in the PIIGS, Japan running the risk of returning to a recession, and emerging economies and China in particular reigning in their economies by hiking interest rates. Prieur du Plessis submits: Emerging-market equity prices as measured by the MSCI Emerging Markets Free Index are primarily driven by commodity prices and in particular by metal prices as measured by the Economist Metals Price Index.
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Furthermore, global demand is likely to remain under pressure. I expect demand in the Eurozone to be lethargic, especially in light of the fiscal crisis in the PIIGS, Japan running the risk of returning to a recession, and emerging economies and China in particular reigning in their economies by hiking interest rates. Prieur du Plessis submits: Emerging-market equity prices as measured by the MSCI Emerging Markets Free Index are primarily driven by commodity prices and in particular by metal prices as measured by the Economist Metals Price Index.
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9ff9c216-7c9d-49fb-8306-43ae4bc09ca3
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727237.0
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2010-11-01 00:00:00 UTC
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QE2 And Midterm Election Positions
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DEM
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https://www.nasdaq.com/articles/qe2-and-midterm-election-positions-2010-11-01
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nan
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nan
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In advance of the most news-filled week of the year-between the mid-term elections on Tuesday and the Fed's monetary easing announcement on Wednesday-we offer our thoughts on the following investment questions:
Stocks have been up for eight consecutive weeks, and the S&P 500 has gained 13%. What has been driving the rally in the stock market?
Since Fed Chairman Bernanke unexpectedly announced plans for another round of quantitative easing (i.e. asset purchases funded with newly printed money) in late August, the stock market has been in a virtually uninterrupted advance. The anticipation of this monetary stimulus, rather than substantive improvement in the economic backdrop, has been the predominant factor driving the recent stock market rally. How do we know this? Because commodity prices, foreign currencies, and inflation expectations have ramped upward over the past two months in approximate proportion to the gains in stocks. In other words, U.S. stocks have made negligible upside progress relative to commodities and foreign currencies.
Is the stock market poised to "sell the fact" of the Fed announcement, after having "bought the rumor" over the past two months?
Although a number of Fed governors have voiced strong dissent to further quantitative easing, the Fed is universally expected to formally announce "QE2" at the conclusion of this week's FOMC meeting on Wednesday. Ben Bernanke and other Fed officials have signaled this intention to the markets for two months. The only open question at this point are details of the program - its size and timetable and the degree to which it will conditioned upon economic conditions. Given that expectations of QE2 on a robust scale (i.e. $500 billion or more) have likely been priced into markets, we could be in for a classic case of "sell the fact" after the announcement, especially if the Fed decides on a more cautious, incremental approach. It would be pure conjecture to predict what the FOMC will announce on Wednesday, and how the market will react to the announcement. It is far more prudent to wait until after the fact to assess the announcement and the market's reaction.
Are there other reasons to expect a fourth quarter correction?
Stocks are overextended after eight straight weeks of gains, and certainly due for a correction. Investor sentiment has become complacent and over-bullish on a short-term basis. For example, the percentage of bears in the most recent American Association of Individual Investors survey slid to 22% -the lowest level in more than three years (Exhibit 1). Our best guess is that an interim peak will be to be established in the next week or two, followed by a 5% to 8% correction.
Exhibit 1
What is the Fed trying to accomplish with QE2?
QE2 is merely the latest example of the Fed manipulating asset prices under the spurious premise that this will bring down the unemployment rate. We have written extensively about our view that Fed policy has been misguided since the late 1990s and the source of many of the problems that have afflicted the U.S. economy over the past fifteen years or so. It is frankly shocking that more voices are not now being raised in objection to Fed policy, which today (1) specifies higher inflation as a policy goal; (2) imposes negative real (inflation-adjusted) yields on bond maturities out to five years-a confiscatory policy for anyone seeking to protect purchasing power in high-quality fixed-income assets; and (3) accelerates the demise of the U.S. dollar as the dominant reserve currency.
The distortions in the bond market created by Fed manipulation have become truly mind-boggling. A case in point is the current 5-year TIPs bond yield ofnegative 0.46% . Between yield suppression through quantitative easing on the one hand and inflation targeting on the other, the Fed has engineered an environment where bond investors are all but guaranteed to lose purchasing power in fixed income investments. Thankfully, some prominent commentators are drawing attention to this deplorable state of affairs. PIMCO's Bill Gross, in his just-published November investment outlook, described U.S. fiscal policy as a Ponzi scheme, called the Treasury bond market a "turkey" of an investment (Exhibit 2), and predicted that QE2 would be the last chapter in the 30-year bull market in bonds.
Exhibit 2
We agree with Gross' assessment, but as always, the timing is tricky. It is entirely possible that the Fed will be able to sustain its manipulation of the bond market until one of the following events comes to pass:inflation becomes an undeniable problem, or there is a crisis of confidence in the U.S. dollar and U.S. government finances.
What does QE2 imply for the stock market?
It is hard to imagine a Fed policy more inviting of risk-taking in the stock market. The purpose of QE2 is to further suppress bond yields and force investors into riskier assets. With negative real interest rates not just on cash but on short maturity bonds, and with the Fed now openly targeting higher inflation and preparing to pump hundreds of billions of dollars of new money into the financial system, stocks will likely retain an upward bias into the first half of 2011. Investors will feel impelled to bump up their stock allocations because the Fed has created an environment that provides no low-risk options to maintain their purchasing power. Our best guess is that following an interim peak in early November, there will be a stock market correction that will probably only take the S&P 500 down to the 1125 area. This was the key resistance level during the midyear stock market correction and should now serve as strong support. For investors inclined to play the QE2 rally, this would be a reasonable place to add to equity exposure. Despite the tailwind to stocks from quantitative easing, we do not think a strong bull market is getting starting, and we think the upside potential in 2011 will be considerably less than the 20% gains that have been typical in the year following mid-term elections. Investors should recall that this recovery, and years one and two of this election cycle, have been anything but typical.
Everyone on Wall Street is aware of the remarkable historical record for Year 3s (i.e. the year following the mid-term election) of the four-year Presidential Cycle. In the past 19 election cycles -going back to FDR -there has not been one bear market in Year 3 of the Presidential Cycle. In addition, the upcoming six months from November through April are seasonally the strongest for the stock market. Taken together, the next three quarters, including the quarter currently in progress, historically provide three of the four biggest quarterly gains over the past 20 election cycles since 1929, with average returns of 5% to 6% per quarter (Exhibit 3).
Exhibit 3
Those are not the sort of odds you want to bet against, especially with a Federal Reserve pursuing asset price inflation as a method of stimulating economic activity. That said, we admit to being somewhat skeptical that election cycle and seasonal trends will play out at neatly and profitably as the historic record would suggest. The stock market has already rallied in anticipation of QE2 and it is hard to conceive that fiscal policy could provide any more stimulus in 2011, given our deficit of $1.3 trillion in fiscal 2010. It is futile to make any sort of longer term stock market predictions in an environment like this, with so many risks surrounding government policy, so we prefer to take it one month at a time.
Over the late spring and summer, markets were worried about the risk of a double-dip recession in the economy. In the past two months, as the economic data have marginally improved and the Fed has laid the groundwork for more monetary easing, markets have quickly priced out the risk of a double-dip. The Economic Cycle Research Institute (ECRI), whose widely followed leading economic indicators had for months been signaling an uncomfortably high degree of recession risk, just last week asserted that recession risks are off the table for the foreseeable future (for ECRI this implies the next two to three quarters):
"The good news is that the much-feared double-dip recession is not going to happen. That is the message from leading business cycle indicators, which are unmistakably veering away from the recession track, following the patterns seen in post-World War II slowdowns that didn't lead to recession. After completing an exhaustive review of key drivers of the business cycle, ranging from credit to inventories and measures of labor market conditions, we can forecast with confidence that the economy will avoid a double dip. But the bad news is that a revival in economic growth is not yet in sight. The slowing of economic growth that began in mid-2010 will continue through early 2011. Thus, private sector job growth, which is already easing, will slow further, keeping the double-dip debate alive."
That doesn't strike us as a particularly sanguine outlook, especially given how dependent the economy is on public spending, transfer payments, and monetary easing. Given the scope of government support for the economy, the underlying fundamentals are largely unfathomable. Until we see evidence of sustained private sector job creation and less dependence upon government stimulation, the economic recovery rests on an insecure foundation. However, given that many investors have been worried about a double-dip in the economy, ECRI's forecast, if it is accurate, is a positive factor in terms of the stock market outlook.
What is the likely impact of the elections on the markets?
For months, markets have anticipated that the Republicans will gain control of the House of Representative and that this will result in more business-friendly government policy. Practically speaking, it is highly unpredictable what government policy will look like following this election. It seems doubtful there will be meaningful change, particularly as it relates to the paramount issue of getting the country's fiscal house in order on a longer-term basis. Unless circumstances drastically change, the political climate simply doesn't exist to enact serious reforms. Pragmatism, bi-partisanship and compromise will be in short supply, and most likely very little will get done. Markets may perceive gridlock as a positive for awhile, but time is running out to fix America's fiscal mess, and if the government "kicks the can down the road" for another two years, we may find that a crisis is inevitable. In the near term, the stock market and economy still have to deal with the major uncertainty surrounding tax policy. Markets could be disappointed in November by a lack of legislative action on extending the tax cuts due to expire at year end (lame-duck Congresses rarely get anything done). At present, the top income tax rate is due to rise to 39.6%, the capital gains rate will rise to 20%, and dividends would revert to being treated as ordinary income.
Is it time to take profits in gold?
Gold is up 24% year to date, and is up 17% since its late July low at $1160. This is clearly not a low-risk time to be adding to gold positions. However, given government policies of currency debasement, we do not think it is time to take profits in core gold investments. Despite the fact that gold has risen for ten consecutive years, the end of the secular bull market in gold is probably still several years from now. We may well be entering the endgame for the U.S. dollar as the world's dominant reserve currency, and the other major currencies in the world do not inspire confidence. Gold is rightly seen as an alternative to paper currencies and an attractive store of value. We expect the U.S. dollar price of gold to rise to at least $2,000 over the next two to three years.
Apart from gold, which areas of the financial markets appear to offer the best risk/reward characteristics on a medium to longer-term basis?
We continue to like high-quality U.S. stocks - large-cap companies with global franchises, solid balance sheets, and consistent earnings and dividends. The best ETF vehicles for accessing this asset class are the Vanguard Dividend Appreciation ETF (symbol:VIG) and the WisdomTree LargeCap Dividend Fund (symbol:DLN). We also favor emerging markets stocks- accessed through a core position in the Vanguard Emerging Markets ETF (symbol:VWO) and a complementary position in the dividend-weighted WisdomTree Emerging Markets Equity Income Fund (symbol:DEM). There is a tendency to extrapolate the problems of the U.S. to the rest of the world, but most emerging economies are experiencing dynamic growth and are in much better fiscal shape. Given that emerging markets account for 40% of global output, and emerging markets stocks account for 16% of global market capitalization, investors who are underweight emerging markets in the equity portion of their portfolios (i.e. emerging markets represent less than 16% of their stock allocation) should view global market sell-offs such as what we experienced in early summer as an opportunity to rebalance portfolios towards emerging markets investments. Emerging markets stocks are up nearly 30% from their early summer lows, so investors should wait for a correction of 10% or so to consider adding to positions.
J.D. Steinhilber is president of Agile Investments, a Nashville, Tenn.-based adviser. He can be contacted at:info@agileinvesting.com.
Don't forget to check IndexUniverse.com's ETF Data section.
Copyright ® 2010 Index Publications LLC . All Rights Reserved.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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It is frankly shocking that more voices are not now being raised in objection to Fed policy, which today (1) specifies higher inflation as a policy goal; (2) imposes negative real (inflation-adjusted) yields on bond maturities out to five years-a confiscatory policy for anyone seeking to protect purchasing power in high-quality fixed-income assets; and (3) accelerates the demise of the U.S. dollar as the dominant reserve currency. We also favor emerging markets stocks- accessed through a core position in the Vanguard Emerging Markets ETF (symbol:VWO) and a complementary position in the dividend-weighted WisdomTree Emerging Markets Equity Income Fund (symbol:DEM). Since Fed Chairman Bernanke unexpectedly announced plans for another round of quantitative easing (i.e. asset purchases funded with newly printed money) in late August, the stock market has been in a virtually uninterrupted advance.
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It is frankly shocking that more voices are not now being raised in objection to Fed policy, which today (1) specifies higher inflation as a policy goal; (2) imposes negative real (inflation-adjusted) yields on bond maturities out to five years-a confiscatory policy for anyone seeking to protect purchasing power in high-quality fixed-income assets; and (3) accelerates the demise of the U.S. dollar as the dominant reserve currency. We also favor emerging markets stocks- accessed through a core position in the Vanguard Emerging Markets ETF (symbol:VWO) and a complementary position in the dividend-weighted WisdomTree Emerging Markets Equity Income Fund (symbol:DEM). The Economic Cycle Research Institute (ECRI), whose widely followed leading economic indicators had for months been signaling an uncomfortably high degree of recession risk, just last week asserted that recession risks are off the table for the foreseeable future (for ECRI this implies the next two to three quarters): "The good news is that the much-feared double-dip recession is not going to happen.
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We also favor emerging markets stocks- accessed through a core position in the Vanguard Emerging Markets ETF (symbol:VWO) and a complementary position in the dividend-weighted WisdomTree Emerging Markets Equity Income Fund (symbol:DEM). It is frankly shocking that more voices are not now being raised in objection to Fed policy, which today (1) specifies higher inflation as a policy goal; (2) imposes negative real (inflation-adjusted) yields on bond maturities out to five years-a confiscatory policy for anyone seeking to protect purchasing power in high-quality fixed-income assets; and (3) accelerates the demise of the U.S. dollar as the dominant reserve currency. PIMCO's Bill Gross, in his just-published November investment outlook, described U.S. fiscal policy as a Ponzi scheme, called the Treasury bond market a "turkey" of an investment (Exhibit 2), and predicted that QE2 would be the last chapter in the 30-year bull market in bonds.
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It is frankly shocking that more voices are not now being raised in objection to Fed policy, which today (1) specifies higher inflation as a policy goal; (2) imposes negative real (inflation-adjusted) yields on bond maturities out to five years-a confiscatory policy for anyone seeking to protect purchasing power in high-quality fixed-income assets; and (3) accelerates the demise of the U.S. dollar as the dominant reserve currency. We also favor emerging markets stocks- accessed through a core position in the Vanguard Emerging Markets ETF (symbol:VWO) and a complementary position in the dividend-weighted WisdomTree Emerging Markets Equity Income Fund (symbol:DEM). The stock market has already rallied in anticipation of QE2 and it is hard to conceive that fiscal policy could provide any more stimulus in 2011, given our deficit of $1.3 trillion in fiscal 2010.
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d9025d95-4ee0-4fa6-b487-15566f057b1e
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727238.0
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2023-10-31 00:00:00 UTC
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Wedbush Reiterates Denny`s (DENN) Neutral Recommendation
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DENN
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https://www.nasdaq.com/articles/wedbush-reiterates-dennys-denn-neutral-recommendation-1
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nan
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nan
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Fintel reports that on October 31, 2023, Wedbush reiterated coverage of Denny`s (NASDAQ:DENN) with a Neutral recommendation.
Analyst Price Forecast Suggests 54.98% Upside
As of October 5, 2023, the average one-year price target for Denny`s is 13.41. The forecasts range from a low of 10.10 to a high of $16.80. The average price target represents an increase of 54.98% from its latest reported closing price of 8.65.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Denny`s is 474MM, an increase of 0.92%. The projected annual non-GAAP EPS is 0.67.
What is the Fund Sentiment?
There are 338 funds or institutions reporting positions in Denny`s. This is a decrease of 9 owner(s) or 2.59% in the last quarter. Average portfolio weight of all funds dedicated to DENN is 0.10%, a decrease of 4.23%. Total shares owned by institutions increased in the last three months by 0.26% to 62,583K shares.
The put/call ratio of DENN is 0.55, indicating a bullish outlook.
What are Other Shareholders Doing?
Allspring Global Investments Holdings holds 8,049K shares representing 14.51% ownership of the company. In it's prior filing, the firm reported owning 7,753K shares, representing an increase of 3.68%. The firm decreased its portfolio allocation in DENN by 24.06% over the last quarter.
Wellington Management Group Llp holds 5,028K shares representing 9.07% ownership of the company. In it's prior filing, the firm reported owning 5,291K shares, representing a decrease of 5.22%. The firm increased its portfolio allocation in DENN by 0.12% over the last quarter.
ESPAX - Wells Fargo Special Small Cap Value Fund holds 4,692K shares representing 8.46% ownership of the company. In it's prior filing, the firm reported owning 4,604K shares, representing an increase of 1.87%. The firm increased its portfolio allocation in DENN by 6.11% over the last quarter.
Bank Of America holds 2,807K shares representing 5.06% ownership of the company. In it's prior filing, the firm reported owning 2,735K shares, representing an increase of 2.56%. The firm increased its portfolio allocation in DENN by 15.62% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 1,741K shares representing 3.14% ownership of the company. No change in the last quarter.
Denny`s Background Information
(This description is provided by the company.)
Denny's Corporation is the franchisor and operator of one of America's largest franchised full-service restaurant chains, based on the number of restaurants. As of December 30, 2020, Denny's had 1,650 franchised, licensed, and company restaurants around the world including 146 restaurants in Canada, Puerto Rico, Mexico, the Philippines, New Zealand, Honduras, the United Arab Emirates, Costa Rica, Guam, Guatemala, El Salvador, Indonesia, and the United Kingdom.
Fintel is one of the most comprehensive investing research platforms available to individual investors, traders, financial advisors, and small hedge funds.
Our data covers the world, and includes fundamentals, analyst reports, ownership data and fund sentiment, options sentiment, insider trading, options flow, unusual options trades, and much more. Additionally, our exclusive stock picks are powered by advanced, backtested quantitative models for improved profits.
Click to Learn More
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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As of December 30, 2020, Denny's had 1,650 franchised, licensed, and company restaurants around the world including 146 restaurants in Canada, Puerto Rico, Mexico, the Philippines, New Zealand, Honduras, the United Arab Emirates, Costa Rica, Guam, Guatemala, El Salvador, Indonesia, and the United Kingdom. Fintel reports that on October 31, 2023, Wedbush reiterated coverage of Denny`s (NASDAQ:DENN) with a Neutral recommendation. Analyst Price Forecast Suggests 54.98% Upside As of October 5, 2023, the average one-year price target for Denny`s is 13.41.
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Fintel reports that on October 31, 2023, Wedbush reiterated coverage of Denny`s (NASDAQ:DENN) with a Neutral recommendation. Analyst Price Forecast Suggests 54.98% Upside As of October 5, 2023, the average one-year price target for Denny`s is 13.41. The projected annual revenue for Denny`s is 474MM, an increase of 0.92%.
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Fintel reports that on October 31, 2023, Wedbush reiterated coverage of Denny`s (NASDAQ:DENN) with a Neutral recommendation. Analyst Price Forecast Suggests 54.98% Upside As of October 5, 2023, the average one-year price target for Denny`s is 13.41. The projected annual revenue for Denny`s is 474MM, an increase of 0.92%.
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Analyst Price Forecast Suggests 54.98% Upside As of October 5, 2023, the average one-year price target for Denny`s is 13.41. Fintel reports that on October 31, 2023, Wedbush reiterated coverage of Denny`s (NASDAQ:DENN) with a Neutral recommendation. The projected annual revenue for Denny`s is 474MM, an increase of 0.92%.
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b4b33b29-7aa1-417c-99de-ff3349fad2e1
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727239.0
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2023-10-30 00:00:00 UTC
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Denny's (DENN) Q3 Earnings: How Key Metrics Compare to Wall Street Estimates
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DENN
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https://www.nasdaq.com/articles/dennys-denn-q3-earnings%3A-how-key-metrics-compare-to-wall-street-estimates
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nan
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nan
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For the quarter ended September 2023, Denny's (DENN) reported revenue of $114.18 million, down 2.8% over the same period last year. EPS came in at $0.17, compared to $0.12 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $116.99 million, representing a surprise of -2.40%. The company delivered an EPS surprise of +13.33%, with the consensus EPS estimate being $0.15.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Denny's performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Company operated restaurants at end of period: 74 compared to the 75 average estimate based on six analysts.
Total restaurants end of period: 1,644 versus the six-analyst average estimate of 1,642.
Franchised and licensed restaurants at end of period: 1,570 compared to the 1,567 average estimate based on six analysts.
Changes in Same-Restaurant Sales - Domestic Franchise Restaurants: 2.1% compared to the 3.1% average estimate based on five analysts.
Changes in Same-Restaurant Sales - Company Restaurants: -1.4% compared to the 2.3% average estimate based on five analysts.
Changes in Same-Restaurant Sales - Domestic System-wide Restaurants: 1.8% compared to the 2.9% average estimate based on five analysts.
Revenue- Franchise and license revenue: $61.03 million versus the six-analyst average estimate of $62.20 million. The reported number represents a year-over-year change of -6.5%.
Revenue- Company restaurant sales: $53.15 million compared to the $54.82 million average estimate based on six analysts. The reported number represents a change of +1.8% year over year.
Revenue- Franchise and license revenue- Advertising revenue: $19.30 million versus $20 million estimated by three analysts on average.
Revenue- Franchise and license revenue- Occupancy revenue: $8.64 million compared to the $9.21 million average estimate based on three analysts.
Revenue- Franchise and license revenue- Initial and other fees: $3.39 million versus $3.25 million estimated by two analysts on average.
Revenue- Franchise and license revenue- Royalties: $29.70 million compared to the $30.11 million average estimate based on two analysts.
View all Key Company Metrics for Denny's here>>>
Shares of Denny's have returned +0.6% over the past month versus the Zacks S&P 500 composite's -3.6% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s credited with a “watershed medical breakthrough” and is developing a bustling pipeline of other projects that could make a world of difference for patients suffering from diseases involving the liver, lungs, and blood. This is a timely investment that you can catch while it emerges from its bear market lows.
It could rival or surpass other recent Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Denny's Corporation (DENN) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For the quarter ended September 2023, Denny's (DENN) reported revenue of $114.18 million, down 2.8% over the same period last year. Here is how Denny's performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Company operated restaurants at end of period: 74 compared to the 75 average estimate based on six analysts. View all Key Company Metrics for Denny's here>>>
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Here is how Denny's performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Company operated restaurants at end of period: 74 compared to the 75 average estimate based on six analysts. For the quarter ended September 2023, Denny's (DENN) reported revenue of $114.18 million, down 2.8% over the same period last year. View all Key Company Metrics for Denny's here>>>
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Here is how Denny's performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Company operated restaurants at end of period: 74 compared to the 75 average estimate based on six analysts. For the quarter ended September 2023, Denny's (DENN) reported revenue of $114.18 million, down 2.8% over the same period last year. View all Key Company Metrics for Denny's here>>>
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For the quarter ended September 2023, Denny's (DENN) reported revenue of $114.18 million, down 2.8% over the same period last year. Here is how Denny's performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Company operated restaurants at end of period: 74 compared to the 75 average estimate based on six analysts. View all Key Company Metrics for Denny's here>>>
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f3ab9389-1146-48e4-8adc-ef896bf71e31
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727240.0
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2023-10-30 00:00:00 UTC
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Denny's (DENN) Q3 Earnings Surpass Estimates
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DENN
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https://www.nasdaq.com/articles/dennys-denn-q3-earnings-surpass-estimates
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nan
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nan
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Denny's (DENN) came out with quarterly earnings of $0.17 per share, beating the Zacks Consensus Estimate of $0.15 per share. This compares to earnings of $0.12 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 13.33%. A quarter ago, it was expected that this restaurant operator would post earnings of $0.17 per share when it actually produced earnings of $0.14, delivering a surprise of -17.65%.
Over the last four quarters, the company has surpassed consensus EPS estimates two times.
Denny's, which belongs to the Zacks Retail - Restaurants industry, posted revenues of $114.18 million for the quarter ended September 2023, missing the Zacks Consensus Estimate by 2.40%. This compares to year-ago revenues of $117.46 million. The company has topped consensus revenue estimates two times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Denny's shares have lost about 7.5% since the beginning of the year versus the S&P 500's gain of 7.2%.
What's Next for Denny's?
While Denny's has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Denny's: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.17 on $119.65 million in revenues for the coming quarter and $0.59 on $471 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Retail - Restaurants is currently in the top 28% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, Chuy's Holdings (CHUY), has yet to report results for the quarter ended September 2023. The results are expected to be released on November 2.
This restaurant operator is expected to post quarterly earnings of $0.36 per share in its upcoming report, which represents a year-over-year change of +16.1%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Chuy's Holdings' revenues are expected to be $111.61 million, up 4.6% from the year-ago quarter.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s credited with a “watershed medical breakthrough” and is developing a bustling pipeline of other projects that could make a world of difference for patients suffering from diseases involving the liver, lungs, and blood. This is a timely investment that you can catch while it emerges from its bear market lows.
It could rival or surpass other recent Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Denny's Corporation (DENN) : Free Stock Analysis Report
Chuy's Holdings, Inc. (CHUY) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Denny's (DENN) came out with quarterly earnings of $0.17 per share, beating the Zacks Consensus Estimate of $0.15 per share. Denny's, which belongs to the Zacks Retail - Restaurants industry, posted revenues of $114.18 million for the quarter ended September 2023, missing the Zacks Consensus Estimate by 2.40%. Denny's shares have lost about 7.5% since the beginning of the year versus the S&P 500's gain of 7.2%.
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Denny's, which belongs to the Zacks Retail - Restaurants industry, posted revenues of $114.18 million for the quarter ended September 2023, missing the Zacks Consensus Estimate by 2.40%. Click to get this free report Denny's Corporation (DENN) : Free Stock Analysis Report Chuy's Holdings, Inc. (CHUY) : Free Stock Analysis Report To read this article on Zacks.com click here. Denny's (DENN) came out with quarterly earnings of $0.17 per share, beating the Zacks Consensus Estimate of $0.15 per share.
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Denny's (DENN) came out with quarterly earnings of $0.17 per share, beating the Zacks Consensus Estimate of $0.15 per share. Denny's, which belongs to the Zacks Retail - Restaurants industry, posted revenues of $114.18 million for the quarter ended September 2023, missing the Zacks Consensus Estimate by 2.40%. Denny's shares have lost about 7.5% since the beginning of the year versus the S&P 500's gain of 7.2%.
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Denny's (DENN) came out with quarterly earnings of $0.17 per share, beating the Zacks Consensus Estimate of $0.15 per share. Denny's, which belongs to the Zacks Retail - Restaurants industry, posted revenues of $114.18 million for the quarter ended September 2023, missing the Zacks Consensus Estimate by 2.40%. Denny's shares have lost about 7.5% since the beginning of the year versus the S&P 500's gain of 7.2%.
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06115a95-20ab-4709-9b1a-1d42b8e406ab
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727241.0
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2023-10-25 00:00:00 UTC
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Brinker International (EAT) Earnings Expected to Grow: What to Know Ahead of Next Week's Release
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DENN
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https://www.nasdaq.com/articles/brinker-international-eat-earnings-expected-to-grow%3A-what-to-know-ahead-of-next-weeks-0
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nan
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nan
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Wall Street expects a year-over-year increase in earnings on higher revenues when Brinker International (EAT) reports results for the quarter ended September 2023. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The earnings report, which is expected to be released on November 1, 2023, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on theearnings callwill mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus Estimate
This operator of restaurant chains Chili's Grill & Bar and Maggiano's Little Italy is expected to post quarterly earnings of $0.03 per share in its upcoming report, which represents a year-over-year change of +105.3%.
Revenues are expected to be $1.01 billion, up 5.2% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 3.52% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Earnings Whisper
Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Brinker International?
For Brinker International, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +130%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination indicates that Brinker International will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?
While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Brinker International would post earnings of $1.30 per share when it actually produced earnings of $1.39, delivering a surprise of +6.92%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom Line
An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Brinker International appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
An Industry Player's Expected Results
Among the stocks in the Zacks Retail - Restaurants industry, Denny's (DENN) is soon expected to post earnings of $0.15 per share for the quarter ended September 2023. This estimate indicates a year-over-year change of +25%. This quarter's revenue is expected to be $116.99 million, down 0.4% from the year-ago quarter.
Over the last 30 days, the consensus EPS estimate for Denny's has been revised 1% down to the current level. Nevertheless, the company now has an Earnings ESP of -7.69%, reflecting a lower Most Accurate Estimate.
When combined with a Zacks Rank of #3 (Hold), this Earnings ESP makes it difficult to conclusively predict that Denny's will beat the consensus EPS estimate. Over the last four quarters, the company surpassed EPS estimates just once.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2023. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
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Brinker International, Inc. (EAT) : Free Stock Analysis Report
Denny's Corporation (DENN) : Free Stock Analysis Report
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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An Industry Player's Expected Results Among the stocks in the Zacks Retail - Restaurants industry, Denny's (DENN) is soon expected to post earnings of $0.15 per share for the quarter ended September 2023. Over the last 30 days, the consensus EPS estimate for Denny's has been revised 1% down to the current level. When combined with a Zacks Rank of #3 (Hold), this Earnings ESP makes it difficult to conclusively predict that Denny's will beat the consensus EPS estimate.
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Click to get this free report Brinker International, Inc. (EAT) : Free Stock Analysis Report Denny's Corporation (DENN) : Free Stock Analysis Report To read this article on Zacks.com click here. An Industry Player's Expected Results Among the stocks in the Zacks Retail - Restaurants industry, Denny's (DENN) is soon expected to post earnings of $0.15 per share for the quarter ended September 2023. Over the last 30 days, the consensus EPS estimate for Denny's has been revised 1% down to the current level.
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An Industry Player's Expected Results Among the stocks in the Zacks Retail - Restaurants industry, Denny's (DENN) is soon expected to post earnings of $0.15 per share for the quarter ended September 2023. Over the last 30 days, the consensus EPS estimate for Denny's has been revised 1% down to the current level. When combined with a Zacks Rank of #3 (Hold), this Earnings ESP makes it difficult to conclusively predict that Denny's will beat the consensus EPS estimate.
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An Industry Player's Expected Results Among the stocks in the Zacks Retail - Restaurants industry, Denny's (DENN) is soon expected to post earnings of $0.15 per share for the quarter ended September 2023. Over the last 30 days, the consensus EPS estimate for Denny's has been revised 1% down to the current level. When combined with a Zacks Rank of #3 (Hold), this Earnings ESP makes it difficult to conclusively predict that Denny's will beat the consensus EPS estimate.
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f2442696-7a57-4a85-9bc5-f3722843b69f
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727242.0
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2023-10-23 00:00:00 UTC
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Denny's (DENN) Earnings Expected to Grow: What to Know Ahead of Next Week's Release
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DENN
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https://www.nasdaq.com/articles/dennys-denn-earnings-expected-to-grow%3A-what-to-know-ahead-of-next-weeks-release-1
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The market expects Denny's (DENN) to deliver a year-over-year increase in earnings on lower revenues when it reports results for the quarter ended September 2023. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on October 30. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on theearnings call it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus Estimate
This restaurant operator is expected to post quarterly earnings of $0.15 per share in its upcoming report, which represents a year-over-year change of +25%.
Revenues are expected to be $116.99 million, down 0.4% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 0.98% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Earnings Whisper
Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Denny's?
For Denny's, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -7.69%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that Denny's will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?
While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Denny's would post earnings of $0.17 per share when it actually produced earnings of $0.14, delivering a surprise of -17.65%.
Over the last four quarters, the company has beaten consensus EPS estimates just once.
Bottom Line
An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Denny's doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
An Industry Player's Expected Results
Texas Roadhouse (TXRH), another stock in the Zacks Retail - Restaurants industry, is expected to report earnings per share of $1.05 for the quarter ended September 2023. This estimate points to a year-over-year change of +12.9%. Revenues for the quarter are expected to be $1.12 billion, up 12.7% from the year-ago quarter.
The consensus EPS estimate for Texas Roadhouse has been revised 2% lower over the last 30 days to the current level. However, a lower Most Accurate Estimate has resulted in an Earnings ESP of -0.96%.
When combined with a Zacks Rank of #4 (Sell), this Earnings ESP makes it difficult to conclusively predict that Texas Roadhouse will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates two times.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Denny's Corporation (DENN) : Free Stock Analysis Report
Texas Roadhouse, Inc. (TXRH) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The market expects Denny's (DENN) to deliver a year-over-year increase in earnings on lower revenues when it reports results for the quarter ended September 2023. How Have the Numbers Shaped Up for Denny's? For Denny's, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects.
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Click to get this free report Denny's Corporation (DENN) : Free Stock Analysis Report Texas Roadhouse, Inc. (TXRH) : Free Stock Analysis Report To read this article on Zacks.com click here. The market expects Denny's (DENN) to deliver a year-over-year increase in earnings on lower revenues when it reports results for the quarter ended September 2023. How Have the Numbers Shaped Up for Denny's?
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For Denny's, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. The market expects Denny's (DENN) to deliver a year-over-year increase in earnings on lower revenues when it reports results for the quarter ended September 2023. How Have the Numbers Shaped Up for Denny's?
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The market expects Denny's (DENN) to deliver a year-over-year increase in earnings on lower revenues when it reports results for the quarter ended September 2023. How Have the Numbers Shaped Up for Denny's? For Denny's, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects.
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e9b24b90-df17-461c-b2d0-6efb341e8474
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727243.0
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2023-10-20 00:00:00 UTC
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Do Options Traders Know Something About Denny's (DENN) Stock We Don't?
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DENN
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https://www.nasdaq.com/articles/do-options-traders-know-something-about-dennys-denn-stock-we-dont-0
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Investors in Denny's Corporation DENN need to pay close attention to the stock based on moves in the options market lately. That is because the Nov 17, 2023 $2.50 Call had some of the highest implied volatility of all equity options today.
What is Implied Volatility?
Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
What do the Analysts Think?
Clearly, options traders are pricing in a big move for Denny's shares, but what is the fundamental picture for the company? Currently, Denny's is a Zacks Rank #3 (Hold) in the Retail - Restaurants industry that ranks in the Top 38% of our Zacks Industry Rank. Over the last 30 days, no analysts have increased their earnings estimates for the current quarter, while two analysts have revised their estimates downward. The net effect has taken our Zacks Consensus Estimate for the current quarter from 16 cents per share to 15 cents in that period.
Given the way analysts feel about Denny's right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.
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Denny's Corporation (DENN) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Investors in Denny's Corporation DENN need to pay close attention to the stock based on moves in the options market lately. Clearly, options traders are pricing in a big move for Denny's shares, but what is the fundamental picture for the company? Currently, Denny's is a Zacks Rank #3 (Hold) in the Retail - Restaurants industry that ranks in the Top 38% of our Zacks Industry Rank.
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Clearly, options traders are pricing in a big move for Denny's shares, but what is the fundamental picture for the company? Click to get this free report Denny's Corporation (DENN) : Free Stock Analysis Report To read this article on Zacks.com click here. Investors in Denny's Corporation DENN need to pay close attention to the stock based on moves in the options market lately.
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Click to get this free report Denny's Corporation (DENN) : Free Stock Analysis Report To read this article on Zacks.com click here. Investors in Denny's Corporation DENN need to pay close attention to the stock based on moves in the options market lately. Clearly, options traders are pricing in a big move for Denny's shares, but what is the fundamental picture for the company?
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Investors in Denny's Corporation DENN need to pay close attention to the stock based on moves in the options market lately. Clearly, options traders are pricing in a big move for Denny's shares, but what is the fundamental picture for the company? Currently, Denny's is a Zacks Rank #3 (Hold) in the Retail - Restaurants industry that ranks in the Top 38% of our Zacks Industry Rank.
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727244.0
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2023-10-17 00:00:00 UTC
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Citigroup Maintains Denny`s (DENN) Neutral Recommendation
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DENN
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https://www.nasdaq.com/articles/citigroup-maintains-dennys-denn-neutral-recommendation
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Fintel reports that on October 16, 2023, Citigroup maintained coverage of Denny`s (NASDAQ:DENN) with a Neutral recommendation.
Analyst Price Forecast Suggests 57.34% Upside
As of October 5, 2023, the average one-year price target for Denny`s is 13.41. The forecasts range from a low of 10.10 to a high of $16.80. The average price target represents an increase of 57.34% from its latest reported closing price of 8.52.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Denny`s is 474MM, an increase of 0.22%. The projected annual non-GAAP EPS is 0.67.
What is the Fund Sentiment?
There are 340 funds or institutions reporting positions in Denny`s. This is a decrease of 8 owner(s) or 2.30% in the last quarter. Average portfolio weight of all funds dedicated to DENN is 0.11%, an increase of 1.26%. Total shares owned by institutions increased in the last three months by 0.03% to 62,288K shares.
The put/call ratio of DENN is 0.42, indicating a bullish outlook.
What are Other Shareholders Doing?
Allspring Global Investments Holdings holds 7,753K shares representing 13.98% ownership of the company. In it's prior filing, the firm reported owning 7,651K shares, representing an increase of 1.31%. The firm increased its portfolio allocation in DENN by 12.30% over the last quarter.
Wellington Management Group Llp holds 5,028K shares representing 9.07% ownership of the company. In it's prior filing, the firm reported owning 5,291K shares, representing a decrease of 5.22%. The firm increased its portfolio allocation in DENN by 0.12% over the last quarter.
ESPAX - Wells Fargo Special Small Cap Value Fund holds 4,692K shares representing 8.46% ownership of the company. In it's prior filing, the firm reported owning 4,604K shares, representing an increase of 1.87%. The firm increased its portfolio allocation in DENN by 6.11% over the last quarter.
Bank Of America holds 2,807K shares representing 5.06% ownership of the company. In it's prior filing, the firm reported owning 2,735K shares, representing an increase of 2.56%. The firm increased its portfolio allocation in DENN by 15.62% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 1,741K shares representing 3.14% ownership of the company. No change in the last quarter.
Denny`s Background Information
(This description is provided by the company.)
Denny's Corporation is the franchisor and operator of one of America's largest franchised full-service restaurant chains, based on the number of restaurants. As of December 30, 2020, Denny's had 1,650 franchised, licensed, and company restaurants around the world including 146 restaurants in Canada, Puerto Rico, Mexico, the Philippines, New Zealand, Honduras, the United Arab Emirates, Costa Rica, Guam, Guatemala, El Salvador, Indonesia, and the United Kingdom.
Fintel is one of the most comprehensive investing research platforms available to individual investors, traders, financial advisors, and small hedge funds.
Our data covers the world, and includes fundamentals, analyst reports, ownership data and fund sentiment, options sentiment, insider trading, options flow, unusual options trades, and much more. Additionally, our exclusive stock picks are powered by advanced, backtested quantitative models for improved profits.
Click to Learn More
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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As of December 30, 2020, Denny's had 1,650 franchised, licensed, and company restaurants around the world including 146 restaurants in Canada, Puerto Rico, Mexico, the Philippines, New Zealand, Honduras, the United Arab Emirates, Costa Rica, Guam, Guatemala, El Salvador, Indonesia, and the United Kingdom. Fintel reports that on October 16, 2023, Citigroup maintained coverage of Denny`s (NASDAQ:DENN) with a Neutral recommendation. Analyst Price Forecast Suggests 57.34% Upside As of October 5, 2023, the average one-year price target for Denny`s is 13.41.
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Fintel reports that on October 16, 2023, Citigroup maintained coverage of Denny`s (NASDAQ:DENN) with a Neutral recommendation. Analyst Price Forecast Suggests 57.34% Upside As of October 5, 2023, the average one-year price target for Denny`s is 13.41. The projected annual revenue for Denny`s is 474MM, an increase of 0.22%.
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Fintel reports that on October 16, 2023, Citigroup maintained coverage of Denny`s (NASDAQ:DENN) with a Neutral recommendation. Analyst Price Forecast Suggests 57.34% Upside As of October 5, 2023, the average one-year price target for Denny`s is 13.41. The projected annual revenue for Denny`s is 474MM, an increase of 0.22%.
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Analyst Price Forecast Suggests 57.34% Upside As of October 5, 2023, the average one-year price target for Denny`s is 13.41. Fintel reports that on October 16, 2023, Citigroup maintained coverage of Denny`s (NASDAQ:DENN) with a Neutral recommendation. The projected annual revenue for Denny`s is 474MM, an increase of 0.22%.
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2023-09-13 00:00:00 UTC
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The 3 Most Undervalued Consumer Stocks to Buy in September 2023
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https://www.nasdaq.com/articles/the-3-most-undervalued-consumer-stocks-to-buy-in-september-2023
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Without a doubt, American consumers have been extremely resilient this year. They have been continuing to spend a great deal of money on many experiences and certain products despite inflation which remains rather high despite having fallen significantly. I believe that the key reason for consumers’ resilience has been the labor market which is still quite strong. Going forward, I expect the unemployment rate to remain historically low, as the onshoring trend, the energy revolution, the government’s elevated spending on infrastructure and elevated consumer spending continue to cause many companies to expand and look for new employees. On the flip side, there are a ton of undervalued consumer stocks.
I predict that consumer spending will keep climbing. However, with many consumers’ yearning for vacations now satiated, I expect their spending to shift away from airplane flights and hotels and towards electronics products and restaurants near their homes. These undervalued consumer stocks will enable longer-term investors to profit from these trends.
Best Buy (BBY)
Source: Ken Wolter / Shutterstock.com
During Best Buy’s (NYSE:BBY) second-quarterearnings callheld on Aug. 29, CEO Corie Barry said, “We believe next year the consumer electronics industry should see stabilization and possibly growth driven by the natural upgrade and replacement cycles for the tech bought early in the pandemic and the normalization of tech innovation.”
With artificial intelligence-oriented products likely to reach Best Buy’s shelves next year, and many more consumers buying smart TVs as streaming proliferates, Barry’s statement is likely to prove to be quite conservative. Speaking of AI, Intel (NYSE:INTC) CEO Pat Gelsinger has asserted that new PCs will be used to unlock some features of AI, including “real-time language translation and AI-powered gaming environments.” Utilizing AI PCs will make users “more efficient,” the CEO explained.
Of course, Best Buy will sell those new PCs, which could surface, as soon as the middle of next year.
BBY has a low forward price-earnings ratio of just 12 and a miniscule trailing price-sales ratio of 0.36, making it one of the best undervalued consumer stocks to buy.
Denny’s (DENN)
Source: JHVEPhoto / Shutterstock.com
Denny’s (NASDAQ:DENN) reported strong second-quarter results last month as its “company restaurant sales” climbed 12% versus the same period a year earlier. Its operating income rose 8% year-over-year to $14.93 million. For all of 2023, the company expects to generate impressive adjusted EBITDA of $86 million to $90 million.
I believe that the company’s results and guidance suggest that my thesis of the company are correct. They are benefiting from the migration of consumers to the south from the northeast is playing out well. Specifically, I predicted that many of those migrants would eat at Denny’s because they missed the multitude of diners in the northeastern states, while Denny’s menu is similar to that of a diner.
DENN has a rather low forward price-earnings ratio of 11.
Restaurant Brands International (QSR)
Source: Shutterstock
JPMorgan on Aug. 21 started coverage of Restaurant Brands (NYSE:QSR) and gave the Burger King owner an “overweight” rating.
The bank is upbeat about the company’s top executives, including “very widely respected former Dominos CEO Patrick Doyle.” In the past, I’ve also been bullish on QSR’s decision to appoint Doyle executive chairman late last year, as I noted that Dominos had performed very well during his tenure as CEO there.
JPMorgan expects QSR’s emphasis of “unit economics” to boost its overall financial results and predicts that the company’s international restaurants will grow meaningfully.
JPMorgan placed an $82 price target on SR stock.
The shares have a low forward price-earnings ratio of 14, well below McDonald’s 22.7. Additionally, QSR stock has a dividend yield of 3.3%.
On the date of publication, Larry Ramer held a long position in INTC. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Larry Ramer has conducted research and written articles on U.S. stocks for 15 years. He has been employed by The Fly and Israel’s largest business newspaper, Globes. Larry began writing columns for InvestorPlace in 2015. Among his highly successful, contrarian picks have been PLUG, XOM and solar stocks. You can reach him on Stocktwits at @larryramer.
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The post The 3 Most Undervalued Consumer Stocks to Buy in September 2023 appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Denny’s (DENN) Source: JHVEPhoto / Shutterstock.com Denny’s (NASDAQ:DENN) reported strong second-quarter results last month as its “company restaurant sales” climbed 12% versus the same period a year earlier. Specifically, I predicted that many of those migrants would eat at Denny’s because they missed the multitude of diners in the northeastern states, while Denny’s menu is similar to that of a diner. DENN has a rather low forward price-earnings ratio of 11.
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Denny’s (DENN) Source: JHVEPhoto / Shutterstock.com Denny’s (NASDAQ:DENN) reported strong second-quarter results last month as its “company restaurant sales” climbed 12% versus the same period a year earlier. Specifically, I predicted that many of those migrants would eat at Denny’s because they missed the multitude of diners in the northeastern states, while Denny’s menu is similar to that of a diner. DENN has a rather low forward price-earnings ratio of 11.
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Denny’s (DENN) Source: JHVEPhoto / Shutterstock.com Denny’s (NASDAQ:DENN) reported strong second-quarter results last month as its “company restaurant sales” climbed 12% versus the same period a year earlier. Specifically, I predicted that many of those migrants would eat at Denny’s because they missed the multitude of diners in the northeastern states, while Denny’s menu is similar to that of a diner. DENN has a rather low forward price-earnings ratio of 11.
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Denny’s (DENN) Source: JHVEPhoto / Shutterstock.com Denny’s (NASDAQ:DENN) reported strong second-quarter results last month as its “company restaurant sales” climbed 12% versus the same period a year earlier. Specifically, I predicted that many of those migrants would eat at Denny’s because they missed the multitude of diners in the northeastern states, while Denny’s menu is similar to that of a diner. DENN has a rather low forward price-earnings ratio of 11.
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2023-09-06 00:00:00 UTC
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Column: Starbucks ruling is a warning: Companies can be liable for violence at stores in dodgy areas
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https://www.nasdaq.com/articles/column%3A-starbucks-ruling-is-a-warning%3A-companies-can-be-liable-for-violence-at-stores-in
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nan
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By Alison Frankel
Sept 6 (Reuters) - As U.S. retailers contemplate whether to keep their doors open in neighborhoods hard hit by crime, a ruling last week by a New York judge gives them another reason for concern.
U.S. District Judge Paul Engelmayer of Manhattan held that Starbucks SBUX.O must face trial on claims that it negligently failed to prevent a vicious 2019 attack on a customer at its Union Square café in New York City.
The judge acknowledged that reports of crime in the Union Square neighborhood were not sufficient evidence that Starbucks should have anticipated an attack on one of its customers. Engelmayer also accepted Starbucks' contention that before the 2019 assault on the plaintiff, Michael Johnson, the Union Square store had not experienced a similar incident of physical violence between customers who did not know one another.
But the judge nevertheless said a jury might reasonably conclude that Starbucks should have known such an attack might occur.
The warning signs, according to Engelmayer, included the café’s location beneath a second-floor methadone clinic, previous drug-related skirmishes between visitors to the store, and several altercations between customers and Starbucks employees. Some of those employees, the judge noted, even pushed for additional security measures because they felt unsafe in the store.
Engelmayer also cited Starbucks’ company-wide policy of allowing non-paying customers to use restrooms. It's not known whether Johnson's assailant — who repeatedly punched and kicked Johnson after he knocked on the restroom door and then fled the scene, inflicting lacerations on Johnson's face and legs — was a paying customer, although he had been asked earlier in the day to leave the store because he looked "disheveled." Johnson alleged that after the company adopted the so-called open-door policy in 2018, the Union Square Starbucks failed to respond to an influx of homeless people using the store’s bathrooms. The judge said reasonable jurors might agree that the company’s open-door policy helped “enable” the physical assault on Johnson.
Engelmayer's decision, which denied Starbucks’ motion for summary judgment, does not mean that the company will eventually be held responsible for the attack on Johnson. Starbucks must now persuade a jury that it could not have predicted the attack.
Neither Starbucks' counsel Joseph Hanna of Goldberg Segalla, nor a company spokesperson offered comment in response to my email query about the Sept. 1 decision and its broader potential implications for stores in troubled neighborhoods in New York. Johnson’s lawyer, Michael Kremins of Raskin & Kremins, also did not respond to a query.
State laws vary on when a property owner or lessee can be held liable for a visitor’s injuries, including injuries resulting from someone else’s crimes, but broadly require owners and proprietors to avert foreseeable dangers. In New York, the state’s highest court has held, in 2004’s Maheshwari v. City of New York and 2016’s Pink v. Rome Youth Hockey Association Inc, that public establishments are not required to protect patrons against unexpected assaults.
In the Maheshwari case, the Court of Appeals granted summary judgment to defendants accused of failing to protect a pamphleteer who was attacked in a parking lot outside of a Lollapalooza concert. The Pink decision dismissed claims by a plaintiff who was injured in a fight at a kids’ hockey tournament.
Starbucks argued that the attack on Johnson, like the assaults in the Maheshwari and Pink cases, was unprecedented. The company did not dispute that panhandling and petty theft were a problem at the Union Square store, as were drunk customers.
There were also violent incidents: A longtime store manager and another Starbucks employee testified about occasional disputes between customers at the Union Square cafe, including visitors to the methadone clinic who, according to the manager, would “fight amongst each other for their drugs.” Employees also described incidents in which patrons shouted at or threatened them, including one customer who spit at an employee and another who threw a cup of coffee.
But those confrontations, Starbucks said, were akin to the “low-level criminal behavior” that failed to sway the court in the Maheshwari and Pink cases. The company insisted that Johnson was the first Union Square customer to have been physically attacked by a complete stranger, so Starbucks could not be blamed for failing to anticipate the crime.
Engelmayer said the more appropriate precedent came from the 2nd U.S. Circuit Court of Appeals, in its unpublished 2013 opinion in Gray v. Denny’s Corp. The federal appeals court ruled that Denny’s was not entitled to summary judgment against claims by a customer, Kelly Gray, who was attacked during a visit to a Syracuse Denny’s restaurant after asking a rowdy group of diners to quiet down.
The 2nd Circuit said that because Denny’s was aware of the potential for violence from late-night customers who patronized the restaurant after bar-hopping, jurors might reasonably hold the restaurant liable for the attack on Gray. (Denny's subsequently settled Gray's case for an undisclosed amount.)
Like Denny’s, Engelmayer said, Starbucks was on notice from previous incidents that some Union Square customers posed a threat of physical violence, even though none of the prior attacks precisely matched the circumstances in the Johnson assault.
Johnson previously demanded a $75,000 settlement from Starbucks for his physical and psychological injuries, according to Engelmayer’s opinion. It’s not clear whether he plans to ask the jury for more.
Obviously, Starbucks won’t be driven into ruin by this case alone. And I don’t want to exaggerate the significance of a decision by a lone trial judge.
But under Engelmayer’s reasoning, Starbucks could face liability if an act of violence occurs at any store where customers get into scraps with employees or each other. And there’s no reason why the analysis is limited to Starbucks (as you can see from the Denny’s decision).
This decision puts public establishments in New York at risk of liability to assault victims if they haven’t beefed up security in response to low-level violence.
For a lot of businesses, that’s a real threat.
(Reporting By Alison Frankel)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Like Denny’s, Engelmayer said, Starbucks was on notice from previous incidents that some Union Square customers posed a threat of physical violence, even though none of the prior attacks precisely matched the circumstances in the Johnson assault. Circuit Court of Appeals, in its unpublished 2013 opinion in Gray v. Denny’s Corp. The federal appeals court ruled that Denny’s was not entitled to summary judgment against claims by a customer, Kelly Gray, who was attacked during a visit to a Syracuse Denny’s restaurant after asking a rowdy group of diners to quiet down.
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The 2nd Circuit said that because Denny’s was aware of the potential for violence from late-night customers who patronized the restaurant after bar-hopping, jurors might reasonably hold the restaurant liable for the attack on Gray. Circuit Court of Appeals, in its unpublished 2013 opinion in Gray v. Denny’s Corp. The federal appeals court ruled that Denny’s was not entitled to summary judgment against claims by a customer, Kelly Gray, who was attacked during a visit to a Syracuse Denny’s restaurant after asking a rowdy group of diners to quiet down.
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Like Denny’s, Engelmayer said, Starbucks was on notice from previous incidents that some Union Square customers posed a threat of physical violence, even though none of the prior attacks precisely matched the circumstances in the Johnson assault. Circuit Court of Appeals, in its unpublished 2013 opinion in Gray v. Denny’s Corp. The federal appeals court ruled that Denny’s was not entitled to summary judgment against claims by a customer, Kelly Gray, who was attacked during a visit to a Syracuse Denny’s restaurant after asking a rowdy group of diners to quiet down.
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Circuit Court of Appeals, in its unpublished 2013 opinion in Gray v. Denny’s Corp. The federal appeals court ruled that Denny’s was not entitled to summary judgment against claims by a customer, Kelly Gray, who was attacked during a visit to a Syracuse Denny’s restaurant after asking a rowdy group of diners to quiet down. The 2nd Circuit said that because Denny’s was aware of the potential for violence from late-night customers who patronized the restaurant after bar-hopping, jurors might reasonably hold the restaurant liable for the attack on Gray.
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c1538e67-d5a6-48eb-bc96-103fbc1c7878
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727247.0
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2023-08-02 00:00:00 UTC
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Wedbush Reiterates Denny`s (DENN) Neutral Recommendation
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DENN
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https://www.nasdaq.com/articles/wedbush-reiterates-dennys-denn-neutral-recommendation-0
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nan
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nan
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Fintel reports that on August 2, 2023, Wedbush reiterated coverage of Denny`s (NASDAQ:DENN) with a Neutral recommendation.
Analyst Price Forecast Suggests 20.19% Upside
As of August 2, 2023, the average one-year price target for Denny`s is 14.13. The forecasts range from a low of 12.12 to a high of $17.85. The average price target represents an increase of 20.19% from its latest reported closing price of 11.76.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Denny`s is 474MM, an increase of 0.22%. The projected annual non-GAAP EPS is 0.67.
What is the Fund Sentiment?
There are 349 funds or institutions reporting positions in Denny`s. This is a decrease of 7 owner(s) or 1.97% in the last quarter. Average portfolio weight of all funds dedicated to DENN is 0.11%, a decrease of 3.86%. Total shares owned by institutions decreased in the last three months by 8.13% to 62,275K shares.
The put/call ratio of DENN is 0.59, indicating a bullish outlook.
What are Other Shareholders Doing?
Allspring Global Investments Holdings holds 7,753K shares representing 13.83% ownership of the company. In it's prior filing, the firm reported owning 7,651K shares, representing an increase of 1.31%. The firm increased its portfolio allocation in DENN by 8.18% over the last quarter.
Wellington Management Group Llp holds 5,291K shares representing 9.44% ownership of the company. In it's prior filing, the firm reported owning 5,450K shares, representing a decrease of 3.02%. The firm decreased its portfolio allocation in DENN by 83.59% over the last quarter.
ESPAX - Wells Fargo Special Small Cap Value Fund holds 4,604K shares representing 8.22% ownership of the company. In it's prior filing, the firm reported owning 4,611K shares, representing a decrease of 0.16%. The firm increased its portfolio allocation in DENN by 18.20% over the last quarter.
Bank Of America holds 2,735K shares representing 4.88% ownership of the company. In it's prior filing, the firm reported owning 2,167K shares, representing an increase of 20.76%. The firm increased its portfolio allocation in DENN by 37.90% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 1,741K shares representing 3.11% ownership of the company. No change in the last quarter.
Denny`s Background Information
(This description is provided by the company.)
Denny's Corporation is the franchisor and operator of one of America's largest franchised full-service restaurant chains, based on the number of restaurants. As of December 30, 2020, Denny's had 1,650 franchised, licensed, and company restaurants around the world including 146 restaurants in Canada, Puerto Rico, Mexico, the Philippines, New Zealand, Honduras, the United Arab Emirates, Costa Rica, Guam, Guatemala, El Salvador, Indonesia, and the United Kingdom.
Additional reading:
D E N N Y ’ S C O R P O R AT I O N INVESTOR PRESENTATION A U G U S T T H R O U G H S E P T E M B E R 2 0 2 3 FORWARD-LOOKING STATEMENTS AND NON-GAAP FINANCIAL MEASURES The Company urges caution in considering its current trends and any outlook on ear
DENNY’S CORPORATION REPORTS RESULTS FOR SECOND QUARTER 2023 REITERATES FULL YEAR 2023 ADJUSTED EBITDA GUIDANCE
INVESTOR PRESENTATION M A Y T H R O U G H J U N E 2 0 2 3 DENNY ’S CORPOR AT ION The Company urges caution in considering its current trends and any outlook on earnings disclosed either in this presentation or in its press releases. In addition, cert
DENNY’S CORPORATION REPORTS RESULTS FOR FIRST QUARTER 2023 REITERATES FULL YEAR 2023 GUIDANCE
Fourth Amended and Restated Credit Agreement, dated as of March 31, 2023, among Denny's, Inc., as the Borrower, Denny's Corporation, as Parent, and Certain Subsidiaries of Parent, as Guarantors, Wells Fargo Bank, National Association, as Administrative Agent on behalf of the Lenders under the Credit Agreement, and the Lenders.
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Fourth Amended and Restated Credit Agreement, dated as of March 31, 2023, among Denny's, Inc., as the Borrower, Denny's Corporation, as Parent, and Certain Subsidiaries of Parent, as Guarantors, Wells Fargo Bank, National Association, as Administrative Agent on behalf of the Lenders under the Credit Agreement, and the Lenders. Fintel reports that on August 2, 2023, Wedbush reiterated coverage of Denny`s (NASDAQ:DENN) with a Neutral recommendation. Analyst Price Forecast Suggests 20.19% Upside As of August 2, 2023, the average one-year price target for Denny`s is 14.13.
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Fintel reports that on August 2, 2023, Wedbush reiterated coverage of Denny`s (NASDAQ:DENN) with a Neutral recommendation. Analyst Price Forecast Suggests 20.19% Upside As of August 2, 2023, the average one-year price target for Denny`s is 14.13. The projected annual revenue for Denny`s is 474MM, an increase of 0.22%.
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Fintel reports that on August 2, 2023, Wedbush reiterated coverage of Denny`s (NASDAQ:DENN) with a Neutral recommendation. Analyst Price Forecast Suggests 20.19% Upside As of August 2, 2023, the average one-year price target for Denny`s is 14.13. The projected annual revenue for Denny`s is 474MM, an increase of 0.22%.
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Analyst Price Forecast Suggests 20.19% Upside As of August 2, 2023, the average one-year price target for Denny`s is 14.13. Fintel reports that on August 2, 2023, Wedbush reiterated coverage of Denny`s (NASDAQ:DENN) with a Neutral recommendation. The projected annual revenue for Denny`s is 474MM, an increase of 0.22%.
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5b85fb86-7df3-4814-82f2-7738360a7892
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727248.0
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2023-08-02 00:00:00 UTC
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Truist Securities Maintains Denny`s (DENN) Buy Recommendation
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DENN
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https://www.nasdaq.com/articles/truist-securities-maintains-dennys-denn-buy-recommendation-0
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nan
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nan
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Fintel reports that on August 2, 2023, Truist Securities maintained coverage of Denny`s (NASDAQ:DENN) with a Buy recommendation.
Analyst Price Forecast Suggests 20.19% Upside
As of August 2, 2023, the average one-year price target for Denny`s is 14.13. The forecasts range from a low of 12.12 to a high of $17.85. The average price target represents an increase of 20.19% from its latest reported closing price of 11.76.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Denny`s is 474MM, an increase of 0.22%. The projected annual non-GAAP EPS is 0.67.
What is the Fund Sentiment?
There are 349 funds or institutions reporting positions in Denny`s. This is a decrease of 7 owner(s) or 1.97% in the last quarter. Average portfolio weight of all funds dedicated to DENN is 0.11%, a decrease of 3.86%. Total shares owned by institutions decreased in the last three months by 8.13% to 62,275K shares.
The put/call ratio of DENN is 0.59, indicating a bullish outlook.
What are Other Shareholders Doing?
Allspring Global Investments Holdings holds 7,753K shares representing 13.83% ownership of the company. In it's prior filing, the firm reported owning 7,651K shares, representing an increase of 1.31%. The firm increased its portfolio allocation in DENN by 8.18% over the last quarter.
Wellington Management Group Llp holds 5,291K shares representing 9.44% ownership of the company. In it's prior filing, the firm reported owning 5,450K shares, representing a decrease of 3.02%. The firm decreased its portfolio allocation in DENN by 83.59% over the last quarter.
ESPAX - Wells Fargo Special Small Cap Value Fund holds 4,604K shares representing 8.22% ownership of the company. In it's prior filing, the firm reported owning 4,611K shares, representing a decrease of 0.16%. The firm increased its portfolio allocation in DENN by 18.20% over the last quarter.
Bank Of America holds 2,735K shares representing 4.88% ownership of the company. In it's prior filing, the firm reported owning 2,167K shares, representing an increase of 20.76%. The firm increased its portfolio allocation in DENN by 37.90% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 1,741K shares representing 3.11% ownership of the company. No change in the last quarter.
Denny`s Background Information
(This description is provided by the company.)
Denny's Corporation is the franchisor and operator of one of America's largest franchised full-service restaurant chains, based on the number of restaurants. As of December 30, 2020, Denny's had 1,650 franchised, licensed, and company restaurants around the world including 146 restaurants in Canada, Puerto Rico, Mexico, the Philippines, New Zealand, Honduras, the United Arab Emirates, Costa Rica, Guam, Guatemala, El Salvador, Indonesia, and the United Kingdom.
Additional reading:
D E N N Y ’ S C O R P O R AT I O N INVESTOR PRESENTATION A U G U S T T H R O U G H S E P T E M B E R 2 0 2 3 FORWARD-LOOKING STATEMENTS AND NON-GAAP FINANCIAL MEASURES The Company urges caution in considering its current trends and any outlook on ear
DENNY’S CORPORATION REPORTS RESULTS FOR SECOND QUARTER 2023 REITERATES FULL YEAR 2023 ADJUSTED EBITDA GUIDANCE
INVESTOR PRESENTATION M A Y T H R O U G H J U N E 2 0 2 3 DENNY ’S CORPOR AT ION The Company urges caution in considering its current trends and any outlook on earnings disclosed either in this presentation or in its press releases. In addition, cert
DENNY’S CORPORATION REPORTS RESULTS FOR FIRST QUARTER 2023 REITERATES FULL YEAR 2023 GUIDANCE
Fourth Amended and Restated Credit Agreement, dated as of March 31, 2023, among Denny's, Inc., as the Borrower, Denny's Corporation, as Parent, and Certain Subsidiaries of Parent, as Guarantors, Wells Fargo Bank, National Association, as Administrative Agent on behalf of the Lenders under the Credit Agreement, and the Lenders.
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Fintel reports that on August 2, 2023, Truist Securities maintained coverage of Denny`s (NASDAQ:DENN) with a Buy recommendation. Analyst Price Forecast Suggests 20.19% Upside As of August 2, 2023, the average one-year price target for Denny`s is 14.13. The projected annual revenue for Denny`s is 474MM, an increase of 0.22%.
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Fintel reports that on August 2, 2023, Truist Securities maintained coverage of Denny`s (NASDAQ:DENN) with a Buy recommendation. Analyst Price Forecast Suggests 20.19% Upside As of August 2, 2023, the average one-year price target for Denny`s is 14.13. The projected annual revenue for Denny`s is 474MM, an increase of 0.22%.
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Fintel reports that on August 2, 2023, Truist Securities maintained coverage of Denny`s (NASDAQ:DENN) with a Buy recommendation. Analyst Price Forecast Suggests 20.19% Upside As of August 2, 2023, the average one-year price target for Denny`s is 14.13. The projected annual revenue for Denny`s is 474MM, an increase of 0.22%.
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Analyst Price Forecast Suggests 20.19% Upside As of August 2, 2023, the average one-year price target for Denny`s is 14.13. Fintel reports that on August 2, 2023, Truist Securities maintained coverage of Denny`s (NASDAQ:DENN) with a Buy recommendation. The projected annual revenue for Denny`s is 474MM, an increase of 0.22%.
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56cf0236-7a43-496d-b041-06f900408fdf
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727249.0
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2023-08-02 00:00:00 UTC
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Benchmark Maintains Denny`s (DENN) Buy Recommendation
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DENN
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https://www.nasdaq.com/articles/benchmark-maintains-dennys-denn-buy-recommendation
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nan
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nan
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Fintel reports that on August 2, 2023, Benchmark maintained coverage of Denny`s (NASDAQ:DENN) with a Buy recommendation.
Analyst Price Forecast Suggests 20.19% Upside
As of August 2, 2023, the average one-year price target for Denny`s is 14.13. The forecasts range from a low of 12.12 to a high of $17.85. The average price target represents an increase of 20.19% from its latest reported closing price of 11.76.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Denny`s is 474MM, an increase of 0.22%. The projected annual non-GAAP EPS is 0.67.
What is the Fund Sentiment?
There are 349 funds or institutions reporting positions in Denny`s. This is a decrease of 7 owner(s) or 1.97% in the last quarter. Average portfolio weight of all funds dedicated to DENN is 0.11%, a decrease of 3.86%. Total shares owned by institutions decreased in the last three months by 8.13% to 62,275K shares.
The put/call ratio of DENN is 0.59, indicating a bullish outlook.
What are Other Shareholders Doing?
Allspring Global Investments Holdings holds 7,753K shares representing 13.83% ownership of the company. In it's prior filing, the firm reported owning 7,651K shares, representing an increase of 1.31%. The firm increased its portfolio allocation in DENN by 8.18% over the last quarter.
Wellington Management Group Llp holds 5,291K shares representing 9.44% ownership of the company. In it's prior filing, the firm reported owning 5,450K shares, representing a decrease of 3.02%. The firm decreased its portfolio allocation in DENN by 83.59% over the last quarter.
ESPAX - Wells Fargo Special Small Cap Value Fund holds 4,604K shares representing 8.22% ownership of the company. In it's prior filing, the firm reported owning 4,611K shares, representing a decrease of 0.16%. The firm increased its portfolio allocation in DENN by 18.20% over the last quarter.
Bank Of America holds 2,735K shares representing 4.88% ownership of the company. In it's prior filing, the firm reported owning 2,167K shares, representing an increase of 20.76%. The firm increased its portfolio allocation in DENN by 37.90% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 1,741K shares representing 3.11% ownership of the company. No change in the last quarter.
Denny`s Background Information
(This description is provided by the company.)
Denny's Corporation is the franchisor and operator of one of America's largest franchised full-service restaurant chains, based on the number of restaurants. As of December 30, 2020, Denny's had 1,650 franchised, licensed, and company restaurants around the world including 146 restaurants in Canada, Puerto Rico, Mexico, the Philippines, New Zealand, Honduras, the United Arab Emirates, Costa Rica, Guam, Guatemala, El Salvador, Indonesia, and the United Kingdom.
Additional reading:
D E N N Y ’ S C O R P O R AT I O N INVESTOR PRESENTATION A U G U S T T H R O U G H S E P T E M B E R 2 0 2 3 FORWARD-LOOKING STATEMENTS AND NON-GAAP FINANCIAL MEASURES The Company urges caution in considering its current trends and any outlook on ear
DENNY’S CORPORATION REPORTS RESULTS FOR SECOND QUARTER 2023 REITERATES FULL YEAR 2023 ADJUSTED EBITDA GUIDANCE
INVESTOR PRESENTATION M A Y T H R O U G H J U N E 2 0 2 3 DENNY ’S CORPOR AT ION The Company urges caution in considering its current trends and any outlook on earnings disclosed either in this presentation or in its press releases. In addition, cert
DENNY’S CORPORATION REPORTS RESULTS FOR FIRST QUARTER 2023 REITERATES FULL YEAR 2023 GUIDANCE
Fourth Amended and Restated Credit Agreement, dated as of March 31, 2023, among Denny's, Inc., as the Borrower, Denny's Corporation, as Parent, and Certain Subsidiaries of Parent, as Guarantors, Wells Fargo Bank, National Association, as Administrative Agent on behalf of the Lenders under the Credit Agreement, and the Lenders.
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Fourth Amended and Restated Credit Agreement, dated as of March 31, 2023, among Denny's, Inc., as the Borrower, Denny's Corporation, as Parent, and Certain Subsidiaries of Parent, as Guarantors, Wells Fargo Bank, National Association, as Administrative Agent on behalf of the Lenders under the Credit Agreement, and the Lenders. Fintel reports that on August 2, 2023, Benchmark maintained coverage of Denny`s (NASDAQ:DENN) with a Buy recommendation. Analyst Price Forecast Suggests 20.19% Upside As of August 2, 2023, the average one-year price target for Denny`s is 14.13.
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Fintel reports that on August 2, 2023, Benchmark maintained coverage of Denny`s (NASDAQ:DENN) with a Buy recommendation. Analyst Price Forecast Suggests 20.19% Upside As of August 2, 2023, the average one-year price target for Denny`s is 14.13. The projected annual revenue for Denny`s is 474MM, an increase of 0.22%.
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Fintel reports that on August 2, 2023, Benchmark maintained coverage of Denny`s (NASDAQ:DENN) with a Buy recommendation. Analyst Price Forecast Suggests 20.19% Upside As of August 2, 2023, the average one-year price target for Denny`s is 14.13. The projected annual revenue for Denny`s is 474MM, an increase of 0.22%.
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Analyst Price Forecast Suggests 20.19% Upside As of August 2, 2023, the average one-year price target for Denny`s is 14.13. Fintel reports that on August 2, 2023, Benchmark maintained coverage of Denny`s (NASDAQ:DENN) with a Buy recommendation. The projected annual revenue for Denny`s is 474MM, an increase of 0.22%.
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21907a11-a262-4b5d-85fe-429e3e7bf06b
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727250.0
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2023-08-02 00:00:00 UTC
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DENN Makes Notable Cross Below Critical Moving Average
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DENN
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https://www.nasdaq.com/articles/denn-makes-notable-cross-below-critical-moving-average
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nan
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nan
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In trading on Wednesday, shares of Denny's Corp (Symbol: DENN) crossed below their 200 day moving average of $11.35, changing hands as low as $10.26 per share. Denny's Corp shares are currently trading down about 8.3% on the day. The chart below shows the one year performance of DENN shares, versus its 200 day moving average:
Looking at the chart above, DENN's low point in its 52 week range is $8.66 per share, with $13.125 as the 52 week high point — that compares with a last trade of $10.58.
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Click here to find out which 9 other stocks recently crossed below their 200 day moving average »
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Wednesday, shares of Denny's Corp (Symbol: DENN) crossed below their 200 day moving average of $11.35, changing hands as low as $10.26 per share. The chart below shows the one year performance of DENN shares, versus its 200 day moving average: Looking at the chart above, DENN's low point in its 52 week range is $8.66 per share, with $13.125 as the 52 week high point — that compares with a last trade of $10.58. Denny's Corp shares are currently trading down about 8.3% on the day.
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In trading on Wednesday, shares of Denny's Corp (Symbol: DENN) crossed below their 200 day moving average of $11.35, changing hands as low as $10.26 per share. Denny's Corp shares are currently trading down about 8.3% on the day. The chart below shows the one year performance of DENN shares, versus its 200 day moving average: Looking at the chart above, DENN's low point in its 52 week range is $8.66 per share, with $13.125 as the 52 week high point — that compares with a last trade of $10.58.
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In trading on Wednesday, shares of Denny's Corp (Symbol: DENN) crossed below their 200 day moving average of $11.35, changing hands as low as $10.26 per share. The chart below shows the one year performance of DENN shares, versus its 200 day moving average: Looking at the chart above, DENN's low point in its 52 week range is $8.66 per share, with $13.125 as the 52 week high point — that compares with a last trade of $10.58. Denny's Corp shares are currently trading down about 8.3% on the day.
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In trading on Wednesday, shares of Denny's Corp (Symbol: DENN) crossed below their 200 day moving average of $11.35, changing hands as low as $10.26 per share. Denny's Corp shares are currently trading down about 8.3% on the day. The chart below shows the one year performance of DENN shares, versus its 200 day moving average: Looking at the chart above, DENN's low point in its 52 week range is $8.66 per share, with $13.125 as the 52 week high point — that compares with a last trade of $10.58.
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561a4423-5525-40fc-9250-2b5277235afe
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727251.0
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2023-08-01 00:00:00 UTC
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Compared to Estimates, Denny's (DENN) Q2 Earnings: A Look at Key Metrics
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DENN
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https://www.nasdaq.com/articles/compared-to-estimates-dennys-denn-q2-earnings%3A-a-look-at-key-metrics
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nan
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nan
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For the quarter ended June 2023, Denny's (DENN) reported revenue of $116.92 million, up 1.7% over the same period last year. EPS came in at $0.14, compared to $0.11 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $120.86 million, representing a surprise of -3.27%. The company delivered an EPS surprise of -17.65%, with the consensus EPS estimate being $0.17.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Denny's performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Changes in Same-Restaurant Sales - Domestic Franchise Restaurants: 3% versus the five-analyst average estimate of 4.2%.
Changes in Same-Restaurant Sales - Company Restaurants: 3% versus 4.56% estimated by five analysts on average.
Changes in Same-Restaurant Sales - Domestic System-wide Restaurants: 3% compared to the 4.16% average estimate based on four analysts.
Franchised and licensed restaurants at end of period: 1572 versus the four-analyst average estimate of 1544.
Company operated restaurants at end of period: 74 versus the three-analyst average estimate of 71.33.
Total restaurants end of period: 1646 versus 1601.67 estimated by three analysts on average.
Revenue- Company restaurant sales: $54.88 million versus the six-analyst average estimate of $56.52 million. The reported number represents a year-over-year change of +11.6%.
Revenue- Franchise and license revenue: $62.03 million versus the six-analyst average estimate of $64.36 million. The reported number represents a year-over-year change of -5.8%.
Company Restaurant Operating Margin: $8.31 million compared to the $7.91 million average estimate based on four analysts.
Franchise Operating Margin: $31.57 million versus the three-analyst average estimate of $33.31 million.
View all Key Company Metrics for Denny's here>>>
Shares of Denny's have returned -5.9% over the past month versus the Zacks S&P 500 composite's +3.3% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.
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Denny's Corporation (DENN) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Here is how Denny's performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Changes in Same-Restaurant Sales - Domestic Franchise Restaurants: 3% versus the five-analyst average estimate of 4.2%. For the quarter ended June 2023, Denny's (DENN) reported revenue of $116.92 million, up 1.7% over the same period last year. View all Key Company Metrics for Denny's here>>>
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Here is how Denny's performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Changes in Same-Restaurant Sales - Domestic Franchise Restaurants: 3% versus the five-analyst average estimate of 4.2%. For the quarter ended June 2023, Denny's (DENN) reported revenue of $116.92 million, up 1.7% over the same period last year. View all Key Company Metrics for Denny's here>>>
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Here is how Denny's performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Changes in Same-Restaurant Sales - Domestic Franchise Restaurants: 3% versus the five-analyst average estimate of 4.2%. For the quarter ended June 2023, Denny's (DENN) reported revenue of $116.92 million, up 1.7% over the same period last year. View all Key Company Metrics for Denny's here>>>
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For the quarter ended June 2023, Denny's (DENN) reported revenue of $116.92 million, up 1.7% over the same period last year. Here is how Denny's performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Changes in Same-Restaurant Sales - Domestic Franchise Restaurants: 3% versus the five-analyst average estimate of 4.2%. View all Key Company Metrics for Denny's here>>>
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7af290b3-8c94-4187-89e0-3d1cc9eda97f
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727252.0
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2023-07-28 00:00:00 UTC
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Wedbush Reiterates Denny`s (DENN) Neutral Recommendation
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DENN
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https://www.nasdaq.com/articles/wedbush-reiterates-dennys-denn-neutral-recommendation
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Fintel reports that on July 28, 2023, Wedbush reiterated coverage of Denny`s (NASDAQ:DENN) with a Neutral recommendation.
Analyst Price Forecast Suggests 25.43% Upside
As of July 6, 2023, the average one-year price target for Denny`s is 14.45. The forecasts range from a low of 12.12 to a high of $17.85. The average price target represents an increase of 25.43% from its latest reported closing price of 11.52.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Denny`s is 474MM, an increase of 0.62%. The projected annual non-GAAP EPS is 0.67.
What is the Fund Sentiment?
There are 351 funds or institutions reporting positions in Denny`s. This is a decrease of 6 owner(s) or 1.68% in the last quarter. Average portfolio weight of all funds dedicated to DENN is 0.11%, a decrease of 4.26%. Total shares owned by institutions decreased in the last three months by 8.03% to 62,374K shares.
The put/call ratio of DENN is 0.58, indicating a bullish outlook.
What are Other Shareholders Doing?
Allspring Global Investments Holdings holds 7,753K shares representing 13.83% ownership of the company. In it's prior filing, the firm reported owning 7,651K shares, representing an increase of 1.31%. The firm increased its portfolio allocation in DENN by 8.18% over the last quarter.
Wellington Management Group Llp holds 5,291K shares representing 9.44% ownership of the company. In it's prior filing, the firm reported owning 5,450K shares, representing a decrease of 3.02%. The firm decreased its portfolio allocation in DENN by 83.59% over the last quarter.
ESPAX - Wells Fargo Special Small Cap Value Fund holds 4,604K shares representing 8.22% ownership of the company. In it's prior filing, the firm reported owning 4,611K shares, representing a decrease of 0.16%. The firm increased its portfolio allocation in DENN by 18.20% over the last quarter.
Bank Of America holds 2,735K shares representing 4.88% ownership of the company. In it's prior filing, the firm reported owning 2,167K shares, representing an increase of 20.76%. The firm increased its portfolio allocation in DENN by 37.90% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 1,741K shares representing 3.11% ownership of the company. No change in the last quarter.
Denny`s Background Information
(This description is provided by the company.)
Denny's Corporation is the franchisor and operator of one of America's largest franchised full-service restaurant chains, based on the number of restaurants. As of December 30, 2020, Denny's had 1,650 franchised, licensed, and company restaurants around the world including 146 restaurants in Canada, Puerto Rico, Mexico, the Philippines, New Zealand, Honduras, the United Arab Emirates, Costa Rica, Guam, Guatemala, El Salvador, Indonesia, and the United Kingdom.
Additional reading:
INVESTOR PRESENTATION M A Y T H R O U G H J U N E 2 0 2 3 DENNY ’S CORPOR AT ION The Company urges caution in considering its current trends and any outlook on earnings disclosed either in this presentation or in its press releases. In addition, cert
DENNY’S CORPORATION REPORTS RESULTS FOR FIRST QUARTER 2023 REITERATES FULL YEAR 2023 GUIDANCE
Fourth Amended and Restated Credit Agreement, dated as of March 31, 2023, among Denny's, Inc., as the Borrower, Denny's Corporation, as Parent, and Certain Subsidiaries of Parent, as Guarantors, Wells Fargo Bank, National Association, as Administrative Agent on behalf of the Lenders under the Credit Agreement, and the Lenders.
Form of 2023 Long-Term Incentive Program Performance Share Unit Award Certificate.
Form of 2023 Long-Term Incentive Program Restricted Stock Unit Award Certificate.
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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As of December 30, 2020, Denny's had 1,650 franchised, licensed, and company restaurants around the world including 146 restaurants in Canada, Puerto Rico, Mexico, the Philippines, New Zealand, Honduras, the United Arab Emirates, Costa Rica, Guam, Guatemala, El Salvador, Indonesia, and the United Kingdom. Fourth Amended and Restated Credit Agreement, dated as of March 31, 2023, among Denny's, Inc., as the Borrower, Denny's Corporation, as Parent, and Certain Subsidiaries of Parent, as Guarantors, Wells Fargo Bank, National Association, as Administrative Agent on behalf of the Lenders under the Credit Agreement, and the Lenders. Fintel reports that on July 28, 2023, Wedbush reiterated coverage of Denny`s (NASDAQ:DENN) with a Neutral recommendation.
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Fintel reports that on July 28, 2023, Wedbush reiterated coverage of Denny`s (NASDAQ:DENN) with a Neutral recommendation. Analyst Price Forecast Suggests 25.43% Upside As of July 6, 2023, the average one-year price target for Denny`s is 14.45. The projected annual revenue for Denny`s is 474MM, an increase of 0.62%.
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Fintel reports that on July 28, 2023, Wedbush reiterated coverage of Denny`s (NASDAQ:DENN) with a Neutral recommendation. Analyst Price Forecast Suggests 25.43% Upside As of July 6, 2023, the average one-year price target for Denny`s is 14.45. The projected annual revenue for Denny`s is 474MM, an increase of 0.62%.
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Fintel reports that on July 28, 2023, Wedbush reiterated coverage of Denny`s (NASDAQ:DENN) with a Neutral recommendation. Analyst Price Forecast Suggests 25.43% Upside As of July 6, 2023, the average one-year price target for Denny`s is 14.45. The projected annual revenue for Denny`s is 474MM, an increase of 0.62%.
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05896f50-8f1e-4b62-b712-cb6907e9ec01
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727253.0
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2023-07-28 00:00:00 UTC
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Overstock.com's (OSTK) Q2 Earnings Beat, Revenues Fall Y/Y
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DENN
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https://www.nasdaq.com/articles/overstock.coms-ostk-q2-earnings-beat-revenues-fall-y-y
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Overstock.com OSTK reported second-quarter 2023 loss of 2 cents per share, which was narrower than the Zacks Consensus Estimate of a loss of 9 cents per share. It was also narrower than the year-ago loss by 110.5%.
Revenues of $422.2 million decreased 20.1% year over year. However, the top line beat the consensus mark by 3.77%.
Revenues were hit by contraction in demand in the real estate sector. The combination of lower consumer engagement and a weak housing market created constant pressure on the top line in the reported quarter.
Active customers reached 4.621 million at the end of the second quarter of 2023, down 28.8% year over year.
The number of active customers declined due to a fall in home related spending, change in spending preference and the company’s strategy to shift completely online.
The average order value was $234 in the reported quarter, declining 5.3% year over year. Orders delivered were 1.803 million, down 15.7% year over year.
Overstock.com, Inc. Price, Consensus and EPS Surprise
Overstock.com, Inc. price-consensus-eps-surprise-chart | Overstock.com, Inc. Quote
Operating Details
Gross margin contracted 60 basis points (bps) to 22.4% in the reported quarter.
Sales & marketing (S&M) expenses decreased 15% year over year to $49.2 million. As a percentage of revenues, S&M expenses increased 70 bps to 11.7%.
Technology expenses were $27.7 million, down 9.3% year over year. As a percentage of revenues, technology expenses jumped 80 bps on a year-over-year basis to 6.6%.
General & administrative (G&A) expenses decreased 2.8% year over year to $21.7 million. As a percentage of revenues, G&A increased 110 bps to 5.1%.
Adjusted EBITDA was $8.2 million, which declined 60.3% from the year-ago quarter.
Operating loss was $4.2 million against $11.5 million profit reported in the year-ago quarter.
Balance Sheet
As of Jun 30, 2023, OSTK had cash and cash equivalents worth $342.8 million compared with $374.7 million as of Mar 31, 2023.
Long-term debt, as of Jun 30, 2023, was $34.219 million compared with $34.207 million as of Mar 31, 2023.
Zacks Rank & Stocks to Consider
Overstock.com currently carries a Zacks Rank #3 (Hold).
Investors interested in the broader Zacks Retail-wholesale sector can also consider some better-ranked stocks like Chuy’s CHUY, Denny’s DENN, carrying a Zacks Rank #2 (Buy) and Jack In The Box JACK, sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Chuy’s, Denny’s and Jack In The Box are scheduled to report the quarterly results on Aug 3, Aug 1 and Aug 9, respectively.
The Zacks Consensus Estimate for CHUY’s second-quarter 2023 earnings is pegged at 53 cents per share, which has remained unchanged over the past 30 days.
The Zacks Consensus Estimate for DENN’s second-quarter 2023 earnings is pegged at 17 cents per share, which has remained steady over the past 30 days.
The Zacks Consensus Estimate for JACK’s second-quarter 2023 earnings is pegged at $1.33 per share, which has remained unchanged over the past 30 days.
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This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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Janus Henderson Sustainable & Impact Core Bond ETF (JACK) : Free Stock Analysis Report
Denny's Corporation (DENN) : Free Stock Analysis Report
Chuy's Holdings, Inc. (CHUY) : Free Stock Analysis Report
Overstock.com, Inc. (OSTK) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Investors interested in the broader Zacks Retail-wholesale sector can also consider some better-ranked stocks like Chuy’s CHUY, Denny’s DENN, carrying a Zacks Rank #2 (Buy) and Jack In The Box JACK, sporting a Zacks Rank #1 (Strong Buy) at present. Chuy’s, Denny’s and Jack In The Box are scheduled to report the quarterly results on Aug 3, Aug 1 and Aug 9, respectively. The Zacks Consensus Estimate for DENN’s second-quarter 2023 earnings is pegged at 17 cents per share, which has remained steady over the past 30 days.
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Investors interested in the broader Zacks Retail-wholesale sector can also consider some better-ranked stocks like Chuy’s CHUY, Denny’s DENN, carrying a Zacks Rank #2 (Buy) and Jack In The Box JACK, sporting a Zacks Rank #1 (Strong Buy) at present. Click to get this free report Janus Henderson Sustainable & Impact Core Bond ETF (JACK) : Free Stock Analysis Report Denny's Corporation (DENN) : Free Stock Analysis Report Chuy's Holdings, Inc. (CHUY) : Free Stock Analysis Report Overstock.com, Inc. (OSTK) : Free Stock Analysis Report To read this article on Zacks.com click here. Chuy’s, Denny’s and Jack In The Box are scheduled to report the quarterly results on Aug 3, Aug 1 and Aug 9, respectively.
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Investors interested in the broader Zacks Retail-wholesale sector can also consider some better-ranked stocks like Chuy’s CHUY, Denny’s DENN, carrying a Zacks Rank #2 (Buy) and Jack In The Box JACK, sporting a Zacks Rank #1 (Strong Buy) at present. Click to get this free report Janus Henderson Sustainable & Impact Core Bond ETF (JACK) : Free Stock Analysis Report Denny's Corporation (DENN) : Free Stock Analysis Report Chuy's Holdings, Inc. (CHUY) : Free Stock Analysis Report Overstock.com, Inc. (OSTK) : Free Stock Analysis Report To read this article on Zacks.com click here. Chuy’s, Denny’s and Jack In The Box are scheduled to report the quarterly results on Aug 3, Aug 1 and Aug 9, respectively.
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Investors interested in the broader Zacks Retail-wholesale sector can also consider some better-ranked stocks like Chuy’s CHUY, Denny’s DENN, carrying a Zacks Rank #2 (Buy) and Jack In The Box JACK, sporting a Zacks Rank #1 (Strong Buy) at present. Chuy’s, Denny’s and Jack In The Box are scheduled to report the quarterly results on Aug 3, Aug 1 and Aug 9, respectively. The Zacks Consensus Estimate for DENN’s second-quarter 2023 earnings is pegged at 17 cents per share, which has remained steady over the past 30 days.
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8363d7b8-e9f7-4703-a971-d52339cbbf92
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727254.0
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2023-07-25 00:00:00 UTC
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Denny's (DENN) Earnings Expected to Grow: What to Know Ahead of Next Week's Release
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DENN
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https://www.nasdaq.com/articles/dennys-denn-earnings-expected-to-grow%3A-what-to-know-ahead-of-next-weeks-release-0
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Denny's (DENN) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2023. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The earnings report, which is expected to be released on August 1, 2023, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on theearnings call it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus Estimate
This restaurant operator is expected to post quarterly earnings of $0.17 per share in its upcoming report, which represents a year-over-year change of +54.6%.
Revenues are expected to be $120.89 million, up 5.1% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 2.22% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Earnings Whisper
Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Denny's?
For Denny's, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -9.09%.
On the other hand, the stock currently carries a Zacks Rank of #2.
So, this combination makes it difficult to conclusively predict that Denny's will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?
Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Denny's would post earnings of $0.14 per share when it actually produced earnings of $0.13, delivering a surprise of -7.14%.
Over the last four quarters, the company has beaten consensus EPS estimates just once.
Bottom Line
An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Denny's doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Expected Results of an Industry Player
Another stock from the Zacks Retail - Restaurants industry, Texas Roadhouse (TXRH), is soon expected to post earnings of $1.21 per share for the quarter ended June 2023. This estimate indicates a year-over-year change of +13.1%. Revenues for the quarter are expected to be $1.17 billion, up 14.3% from the year-ago quarter.
The consensus EPS estimate for Texas Roadhouse has been revised 0.3% lower over the last 30 days to the current level. However, a lower Most Accurate Estimate has resulted in an Earnings ESP of -0.30%.
This Earnings ESP, combined with its Zacks Rank #2 (Buy), makes it difficult to conclusively predict that Texas Roadhouse will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates two times.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Denny's Corporation (DENN) : Free Stock Analysis Report
Texas Roadhouse, Inc. (TXRH) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Denny's (DENN) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2023. How Have the Numbers Shaped Up for Denny's? For Denny's, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects.
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Click to get this free report Denny's Corporation (DENN) : Free Stock Analysis Report Texas Roadhouse, Inc. (TXRH) : Free Stock Analysis Report To read this article on Zacks.com click here. Denny's (DENN) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2023. How Have the Numbers Shaped Up for Denny's?
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For Denny's, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. Denny's (DENN) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2023. How Have the Numbers Shaped Up for Denny's?
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Denny's (DENN) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2023. How Have the Numbers Shaped Up for Denny's? For Denny's, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects.
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f17ddbc4-3ea0-436c-a69f-f353e4e5ebbf
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727255.0
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2023-07-18 00:00:00 UTC
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Piper Sandler Initiates Coverage of Denny`s (DENN) with Neutral Recommendation
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DENN
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https://www.nasdaq.com/articles/piper-sandler-initiates-coverage-of-dennys-denn-with-neutral-recommendation
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Fintel reports that on July 18, 2023, Piper Sandler initiated coverage of Denny`s (NASDAQ:DENN) with a Neutral recommendation.
Analyst Price Forecast Suggests 30.06% Upside
As of July 6, 2023, the average one-year price target for Denny`s is 14.45. The forecasts range from a low of 12.12 to a high of $17.85. The average price target represents an increase of 30.06% from its latest reported closing price of 11.11.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Denny`s is 474MM, an increase of 0.62%. The projected annual non-GAAP EPS is 0.67.
What is the Fund Sentiment?
There are 350 funds or institutions reporting positions in Denny`s. This is a decrease of 8 owner(s) or 2.23% in the last quarter. Average portfolio weight of all funds dedicated to DENN is 0.10%, a decrease of 1.46%. Total shares owned by institutions decreased in the last three months by 8.26% to 62,269K shares.
The put/call ratio of DENN is 0.50, indicating a bullish outlook.
What are Other Shareholders Doing?
Allspring Global Investments Holdings holds 7,651K shares representing 13.65% ownership of the company. In it's prior filing, the firm reported owning 7,471K shares, representing an increase of 2.36%. The firm increased its portfolio allocation in DENN by 20.42% over the last quarter.
Wellington Management Group Llp holds 5,291K shares representing 9.44% ownership of the company. In it's prior filing, the firm reported owning 5,450K shares, representing a decrease of 3.02%. The firm decreased its portfolio allocation in DENN by 83.59% over the last quarter.
ESPAX - Wells Fargo Special Small Cap Value Fund holds 4,604K shares representing 8.22% ownership of the company. In it's prior filing, the firm reported owning 4,611K shares, representing a decrease of 0.16%. The firm increased its portfolio allocation in DENN by 18.20% over the last quarter.
Bank Of America holds 2,735K shares representing 4.88% ownership of the company. In it's prior filing, the firm reported owning 2,167K shares, representing an increase of 20.76%. The firm increased its portfolio allocation in DENN by 37.90% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 1,741K shares representing 3.11% ownership of the company. No change in the last quarter.
Denny`s Background Information
(This description is provided by the company.)
Denny's Corporation is the franchisor and operator of one of America's largest franchised full-service restaurant chains, based on the number of restaurants. As of December 30, 2020, Denny's had 1,650 franchised, licensed, and company restaurants around the world including 146 restaurants in Canada, Puerto Rico, Mexico, the Philippines, New Zealand, Honduras, the United Arab Emirates, Costa Rica, Guam, Guatemala, El Salvador, Indonesia, and the United Kingdom.
Additional reading:
INVESTOR PRESENTATION M A Y T H R O U G H J U N E 2 0 2 3 DENNY ’S CORPOR AT ION The Company urges caution in considering its current trends and any outlook on earnings disclosed either in this presentation or in its press releases. In addition, cert
DENNY’S CORPORATION REPORTS RESULTS FOR FIRST QUARTER 2023 REITERATES FULL YEAR 2023 GUIDANCE
Fourth Amended and Restated Credit Agreement, dated as of March 31, 2023, among Denny's, Inc., as the Borrower, Denny's Corporation, as Parent, and Certain Subsidiaries of Parent, as Guarantors, Wells Fargo Bank, National Association, as Administrative Agent on behalf of the Lenders under the Credit Agreement, and the Lenders.
Form of 2023 Long-Term Incentive Program Performance Share Unit Award Certificate.
Form of 2023 Long-Term Incentive Program Restricted Stock Unit Award Certificate.
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Fintel reports that on July 18, 2023, Piper Sandler initiated coverage of Denny`s (NASDAQ:DENN) with a Neutral recommendation. Fourth Amended and Restated Credit Agreement, dated as of March 31, 2023, among Denny's, Inc., as the Borrower, Denny's Corporation, as Parent, and Certain Subsidiaries of Parent, as Guarantors, Wells Fargo Bank, National Association, as Administrative Agent on behalf of the Lenders under the Credit Agreement, and the Lenders. Analyst Price Forecast Suggests 30.06% Upside As of July 6, 2023, the average one-year price target for Denny`s is 14.45.
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Fintel reports that on July 18, 2023, Piper Sandler initiated coverage of Denny`s (NASDAQ:DENN) with a Neutral recommendation. Analyst Price Forecast Suggests 30.06% Upside As of July 6, 2023, the average one-year price target for Denny`s is 14.45. The projected annual revenue for Denny`s is 474MM, an increase of 0.62%.
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Fintel reports that on July 18, 2023, Piper Sandler initiated coverage of Denny`s (NASDAQ:DENN) with a Neutral recommendation. Analyst Price Forecast Suggests 30.06% Upside As of July 6, 2023, the average one-year price target for Denny`s is 14.45. The projected annual revenue for Denny`s is 474MM, an increase of 0.62%.
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Analyst Price Forecast Suggests 30.06% Upside As of July 6, 2023, the average one-year price target for Denny`s is 14.45. Fintel reports that on July 18, 2023, Piper Sandler initiated coverage of Denny`s (NASDAQ:DENN) with a Neutral recommendation. The projected annual revenue for Denny`s is 474MM, an increase of 0.62%.
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727256.0
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2023-06-29 00:00:00 UTC
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Validea's Top 5 Consumer Discretionary Stocks Based On Warren Buffett - 6/29/2023
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DENN
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https://www.nasdaq.com/articles/valideas-top-5-consumer-discretionary-stocks-based-on-warren-buffett-6-29-2023
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The following are the top rated Consumer Discretionary stocks according to Validea's Patient Investor model based on the published strategy of Warren Buffett. This strategy seeks out firms with long-term, predictable profitability and low debt that trade at reasonable valuations.
DANA INC (DAN) is a mid-cap growth stock in the Auto & Truck Parts industry. The rating according to our strategy based on Warren Buffett is 0% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Dana Incorporated is engaged in providing power-conveyance and energy-management solutions for vehicles and machinery. The Company's portfolio improves the efficiency, performance, and sustainability of light vehicles, commercial vehicles, and off-highway equipment. It offers axles, driveshafts, transmissions, sealing and thermal products to electrifications products including motors, inverters, controllers, e-sealing, e-thermal and digital solutions. The Company operates through four segments: Light Vehicle Drive Systems, Commercial Vehicle Drive and Motion Systems, Off-Highway Drive and Motion Systems, and Power Technologies. The Company owns and have licensed trademarks, such as Spicer Electrified, Victor Reinz, Long, Graziano and Dana TM4. The Company operates in North America, Europe, South America, Asia Pacific, Canada, Belgium, Netherlands, Argentina, Australia, Mexico, Finland, and more.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
EARNINGS PREDICTABILITY: FAIL
DEBT SERVICE: FAIL
RETURN ON EQUITY: FAIL
RETURN ON TOTAL CAPITAL: FAIL
FREE CASH FLOW: PASS
USE OF RETAINED EARNINGS: FAIL
SHARE REPURCHASE: PASS
Detailed Analysis of DANA INC
DAN Guru Analysis
DAN Fundamental Analysis
MERCADOLIBRE INC (MELI) is a large-cap growth stock in the Retail (Specialty) industry. The rating according to our strategy based on Warren Buffett is 0% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Mercado Libre Inc is a Uruguay-based e-commerce business facilitator of Argentinian origins. The e-commerce products enable retail and wholesale via Internet platforms designed to provide users with a portfolio of services to facilitate commercial transactions. The Company's geographic coverage includes 18 countries of Latin America. The primary offer is an ecosystem of six integrated e-commerce services: the Mercado Libre Marketplace, the Mercado Libre Classifieds service, the Mercado Pago payments solution, the Mercado Credito financial solutions, the Mercado Envios logistic solutions including shipping, the Mercado Ads advertising platform and the Mercado Shops digital storefront solution.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
EARNINGS PREDICTABILITY: FAIL
DEBT SERVICE: PASS
RETURN ON EQUITY: FAIL
RETURN ON TOTAL CAPITAL: FAIL
FREE CASH FLOW: PASS
USE OF RETAINED EARNINGS: PASS
SHARE REPURCHASE: PASS
INITIAL RATE OF RETURN: FAIL
EXPECTED RETURN: FAIL
Detailed Analysis of MERCADOLIBRE INC
MELI Guru Analysis
MELI Fundamental Analysis
IROBOT CORPORATION (IRBT) is a small-cap growth stock in the Appliance & Tool industry. The rating according to our strategy based on Warren Buffett is 0% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: iRobot Corporation is a global consumer robot company. The Company designs, builds, sells and supports durable robots through the integration of software, electronics and hardware. Its portfolio of home robots and smart home devices features technologies for the connected home and advanced concepts in cleaning, mapping and navigation, human-robot interaction and physical solutions. Its products include Roomba, Braava, H1 Handheld Vacuum, Aeris Air Purifiers, Root and iRobot Create 3. It offers the Braava family of automatic floor mopping robots, which are designed for hard-surface floors. It also sells Roomba accessories and consumables, including the Clean Base Automatic Dirt Disposal, replacement dirt disposal bags for the clean base, filters, brushes and batteries. It also provides ongoing customer service and support through the iRobot HOME App. It offers its products through distributor and retail sales channels, as well as the online store on its Website and through its Home App.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
EARNINGS PREDICTABILITY: FAIL
DEBT SERVICE: PASS
RETURN ON EQUITY: FAIL
RETURN ON TOTAL CAPITAL: FAIL
FREE CASH FLOW: FAIL
USE OF RETAINED EARNINGS: FAIL
SHARE REPURCHASE: PASS
Detailed Analysis of IROBOT CORPORATION
IRBT Guru Analysis
IRBT Fundamental Analysis
DENNY'S CORP (DENN) is a small-cap value stock in the Restaurants industry. The rating according to our strategy based on Warren Buffett is 0% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Denny's Corporation is a franchised full-service restaurant brand, based on a number of restaurants. It owns and operates the Denny's brand (Denny's) and the Keke's Breakfast Cafe brand (Keke's). It operates in two segments: Denny's and Keke's. The Company has approximately 1,656 restaurants, 1,582 of which were franchised/licensed restaurants and 74 of which were company operated. Denny's brand consists of approximately 1,602 franchised, licensed and company restaurants around the world, including 1,445 restaurants in the United States and 157 international restaurant locations. Its The Build Your Own Grand Slam, one of its popular menu items. Denny's offers a range of selection of lunch and dinner items, including entrees, burgers, sandwiches and salads, along with an assortment of appetizers and desserts. It has four dayparts, breakfast, lunch, dinner and late night. Keke's brand consists of approximately 54 restaurants. Keke's also serves burgers, paninis, salads, and sandwiches.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
EARNINGS PREDICTABILITY: FAIL
DEBT SERVICE: FAIL
RETURN ON EQUITY: FAIL
RETURN ON TOTAL CAPITAL: FAIL
FREE CASH FLOW: PASS
USE OF RETAINED EARNINGS: PASS
SHARE REPURCHASE: PASS
INITIAL RATE OF RETURN: PASS
EXPECTED RETURN: FAIL
Detailed Analysis of DENNY'S CORP
DENN Guru Analysis
DENN Fundamental Analysis
MONRO INC (MNRO) is a small-cap growth stock in the Business Services industry. The rating according to our strategy based on Warren Buffett is 0% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Monro, Inc. is an operator of retail tire and automotive repair stores in the United States. The Company offers replacement tires and tire related services, automotive undercar repair services, as well as a range of routine maintenance services, primarily on passenger cars, light trucks, and vans. The Company provides other products and services for brakes; mufflers and exhaust systems; as well as steering, drive train, suspension, and wheel alignment. The Company's retail tire and automotive repair stores operate primarily under the brands Monro Auto Service and Tire Centers, Tire Choice Auto Service Centers, Mr. Tire Auto Service Centers, Car-X Tire & Auto, Tire Warehouse Tires for Less, Ken Towery's Tire & Auto Care, Mountain View Tire & Auto Service, and Tire Barn Warehouse. It has approximately 1,299 Company-operated retail stores located in 32 states and over 76 Car-X franchised locations. Its subsidiaries include Monro Service Corporation; Car-X, LLC; and MNRO Holdings, LLC.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
EARNINGS PREDICTABILITY: FAIL
DEBT SERVICE: FAIL
RETURN ON EQUITY: FAIL
RETURN ON TOTAL CAPITAL: FAIL
FREE CASH FLOW: PASS
USE OF RETAINED EARNINGS: FAIL
SHARE REPURCHASE: PASS
Detailed Analysis of MONRO INC
MNRO Guru Analysis
MNRO Fundamental Analysis
Warren Buffett Portfolio
Top Warren Buffett Stocks
About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. As the chairman of Berkshire Hathaway, Buffett has consistently outperformed the S&P 500 for decades, and in the process has become one of the world's richest men. (Forbes puts his net worth at $37 billion.) Despite his fortune, Buffett is known for living a modest lifestyle, by billionaire standards. His primary residence remains the gray stucco Nebraska home he purchased for $31,500 nearly 50 years ago, according to Forbes, and his folksy Midwestern manner and penchant for simple pleasures -- a cherry Coke, a good burger, and a good book are all near the top of the list -- have been well-documented.
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Denny's offers a range of selection of lunch and dinner items, including entrees, burgers, sandwiches and salads, along with an assortment of appetizers and desserts. Detailed Analysis of IROBOT CORPORATION IRBT Guru Analysis IRBT Fundamental Analysis DENNY'S CORP (DENN) is a small-cap value stock in the Restaurants industry. Company Description: Denny's Corporation is a franchised full-service restaurant brand, based on a number of restaurants.
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Detailed Analysis of DENNY'S CORP DENN Guru Analysis DENN Fundamental Analysis MONRO INC (MNRO) is a small-cap growth stock in the Business Services industry. Detailed Analysis of IROBOT CORPORATION IRBT Guru Analysis IRBT Fundamental Analysis DENNY'S CORP (DENN) is a small-cap value stock in the Restaurants industry. Company Description: Denny's Corporation is a franchised full-service restaurant brand, based on a number of restaurants.
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Detailed Analysis of IROBOT CORPORATION IRBT Guru Analysis IRBT Fundamental Analysis DENNY'S CORP (DENN) is a small-cap value stock in the Restaurants industry. Company Description: Denny's Corporation is a franchised full-service restaurant brand, based on a number of restaurants. It owns and operates the Denny's brand (Denny's) and the Keke's Breakfast Cafe brand (Keke's).
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Detailed Analysis of IROBOT CORPORATION IRBT Guru Analysis IRBT Fundamental Analysis DENNY'S CORP (DENN) is a small-cap value stock in the Restaurants industry. Company Description: Denny's Corporation is a franchised full-service restaurant brand, based on a number of restaurants. It owns and operates the Denny's brand (Denny's) and the Keke's Breakfast Cafe brand (Keke's).
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8f19e841-cad3-403b-8674-ba88cf5a3c17
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727257.0
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2023-06-20 00:00:00 UTC
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Why Options Traders May Be Targeting America’s Diner Denny’s
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DENN
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https://www.nasdaq.com/articles/why-options-traders-may-be-targeting-americas-diner-dennys
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nan
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nan
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After a three-day Juneteenth weekend that saw U.S. travelers take to the roads in record numbers, shares of self-labeled 'America’s Diner' Denny’s (US:DENN) are moving up more than 7% in Tuesday's premarket trading. Already up 25% year to date, the desire to get out of the house -- following a collective bout of cabin fever due to the pandemic -- may be helping.
With those gains, rumblings for DENN stock in the derivatives market have materialized, lending a possible opportunity for speculators.
As COVID-19 restrictions began fading in earnest globally last year, the phenomenon known as “revenge travel” quickly dominated the cultural lexicon. Throughout the worst of the public health crisis, consumers had little choice but to be sequestered from the rest of society as multiple jurisdictions clamped down on non-essential activities. Subsequently, the forced denial of personal mobility catalyzed pent-up demand for travel.
Enticingly for DENN stock and other downwind beneficiaries, consumer behavioral data indicates that revenge travel continues to motivate people this year – especially among those in the Generation Z demographic. Therefore, it’s possible that as the occupier of the lower rungs of the trade-down effect -- that is, the provider of cheaper alternatives -- Denny’s may rise higher, especially during the summer travel season.
That's quite a turnaround from three years ago, when S&P Global Market Intelligence put Denny's on its list of the largest publicly traded U.S. restaurant companies most likely to default.
Placing Bets
Notably, speculators seem to have placed their bets. Following the close of the June 14 session, DENN stock surfaced among the highlights on Fintel’s dashboard of unusual stock options volume.
Specifically, call volume hit 1,479 contracts against an open interest reading of 454. On the other end of the scale, put volume only mustered 73 contracts against open interest of 592. For both the call and put volumes, the Wednesday metrics well exceeded their average volume levels of 8 and 6 contracts, respectively.
Interestingly, though options flow data are limited for DENN stock, the printed transactions this year have all pointed toward a positive trajectory. As well, current options sentiment, defined here as a put/call ratio sitting at 0.53, indicates wide optimism.
It's the Economy
To be fair, a risk factor for Denny’s centers on the true viability of the broader economy. Though the latest total nonfarm payroll employment of 339,000 exceeded expectations, the pace of average hourly earnings growth declined. Also, the unemployment rate increased by 0.3 percentage point to 3.7% in May, reflecting rising obstacles.
In addition, Americans have been racking up debt, particularly those in their 30s who have been doing so at record rates. Should layoffs continue to materialize amid tough circumstances for particular industries, DENN stock may court troubles down the line.
At the moment, though, U.S. consumer spending is strong, particularly for experiential purchases. Therefore, an air pocket within the economy may keep DENN stock afloat in the interim.
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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After a three-day Juneteenth weekend that saw U.S. travelers take to the roads in record numbers, shares of self-labeled 'America’s Diner' Denny’s (US:DENN) are moving up more than 7% in Tuesday's premarket trading. Enticingly for DENN stock and other downwind beneficiaries, consumer behavioral data indicates that revenge travel continues to motivate people this year – especially among those in the Generation Z demographic. That's quite a turnaround from three years ago, when S&P Global Market Intelligence put Denny's on its list of the largest publicly traded U.S. restaurant companies most likely to default.
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Enticingly for DENN stock and other downwind beneficiaries, consumer behavioral data indicates that revenge travel continues to motivate people this year – especially among those in the Generation Z demographic. That's quite a turnaround from three years ago, when S&P Global Market Intelligence put Denny's on its list of the largest publicly traded U.S. restaurant companies most likely to default. After a three-day Juneteenth weekend that saw U.S. travelers take to the roads in record numbers, shares of self-labeled 'America’s Diner' Denny’s (US:DENN) are moving up more than 7% in Tuesday's premarket trading.
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Enticingly for DENN stock and other downwind beneficiaries, consumer behavioral data indicates that revenge travel continues to motivate people this year – especially among those in the Generation Z demographic. Following the close of the June 14 session, DENN stock surfaced among the highlights on Fintel’s dashboard of unusual stock options volume. Interestingly, though options flow data are limited for DENN stock, the printed transactions this year have all pointed toward a positive trajectory.
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Enticingly for DENN stock and other downwind beneficiaries, consumer behavioral data indicates that revenge travel continues to motivate people this year – especially among those in the Generation Z demographic. Following the close of the June 14 session, DENN stock surfaced among the highlights on Fintel’s dashboard of unusual stock options volume. After a three-day Juneteenth weekend that saw U.S. travelers take to the roads in record numbers, shares of self-labeled 'America’s Diner' Denny’s (US:DENN) are moving up more than 7% in Tuesday's premarket trading.
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ed5aa383-c6c0-45d9-812d-65bcee35aead
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727258.0
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2023-06-06 00:00:00 UTC
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3 Cheap Blue-Chip Stocks Under $15 to Buy Now
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DENN
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https://www.nasdaq.com/articles/3-cheap-blue-chip-stocks-under-%2415-to-buy-now
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
In the last 18 months, many high-quality stocks took huge hits as investors waited for the recession that hasn’t come and that, in my opinion, will not arrive any time soon. Given the huge pullbacks that these names underwent, there are plenty of affordable blue-chip stocks under $15 to buy.
The biggest reason I believe that a recession is not in the cards is the great condition of the labor market, which remains very strong according to the most recent data. And although the bears like to talk about “deteriorating consumer balance sheets” and “exploding credit card debt,” the fact is that, according to the Fed, the ratio of household debt to GDP at the end of last year was 76%, versus 78% at the end of 2018.
Importantly, I used my usual definition of “blue-chip stocks,” which is perhaps somewhat atypical for this column. Specifically, I define “blue chip” as firms that are among the leaders of their sectors and that are profitable or are poised to enter the black within the next year or two.
Macy’s (M)
Source: digitalreflections / Shutterstock.com
Macy’s (NYSE:M) stock is priced for disaster, as its forward price-earnings ratio is a tiny 4.7, and its price-sales ratio is an infinitesimal 0.16.
And while its comparable sales did sink 7.2% last quarter, that’s far from a disaster, as it still managed to generate earnings per share, excluding certain items, of 56 cents.
The company cut its full-year sales guidance slightly and lowered its adjusted EPS guidance range to $2.70 to $3.20 from $3.67 to $4.11. However, as I mentioned earlier, its valuation is still extremely attractive. What’s more, I expect the retailer to benefit from consumers’ increased spending on goods starting later this year.
Research firm Gordon Haskett was also bullish on M stock in the wake of its Q1 results, which upgraded the shares to “buy,” citing valuation. Additionally, the firm reported that in May, Macy’s “same-store sales accelerated from April across all banners with a notable recovery in the…seasonal parts of the company’s business.”
Also noteworthy is that according to Gordon Haskett, Macy’s “less weather sensitive categories..have remained healthy since February.”
ChargePoint (CHPT)
Source: JL IMAGES / Shutterstock.com
ChargePoint (NYSE:CHPT), which sells and services EV chargers, reported very impressive first-quarter results as its top line soared 59% versus the same period a year earlier to $130 million.
And in another very positive development, CHPT reported that it intends to cut its EBITDA loss, excluding certain items, by “approximately two-thirds by the fourth quarter of [its current fiscal year]…compared to the first quarter.” Clearly, the company is rapidly closing in on profitability.
The company reported a Q1 EBITDA loss of $48.9 million. So by the end of this year, its quarterly adjusted EBITDA loss will be down to a rather low $16 million.
Wall Street was probably disappointed by the company’s Q2 revenue guidance which came in below analysts’ average estimate. However, if the company reaches the midpoint of the guidance range, ChargePoint’s sales will have surged 41% year-over-year.
Denny’s (DENN)
Source: JHVEPhoto / Shutterstock.com
Denny’s (NYSE:DENN) reported strong first-quarter results on May 2, as its U.S. same-restaurant sales jumped 8.4% versus the same period a year earlier, and its operating income climbed to $16.1 million from $13.3 in Q1 of 2022.
Denny’s reiterated its previous 2023 guidance, which calls for a U.S. same-restaurant sales increase of 3%-6% and the opening of 35-45 new restaurants. Additionally, Denny’s expects to generate EBITDA, excluding some items, of $86 million to $90 million.
The company’s strong Q1 results and upbeat guidance increase my confidence in my positive thesis on Denny’s, which I described in a previous column. Specifically, I believe that Denny’s is benefiting from the migration of many Americans from the Northeast, where diners are prevalent, to the South, where there are many fewer diners. Given Denny’s wide-ranging menu and many breakfast choices, I believe that it can serve as a “diner substitute” for these migrants.
DENN stock has a low forward price-earnings ratio of 17, making it one of the best blue-chip stocks under $15.
On the date of publication, Larry Ramer did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Larry Ramer has conducted research and written articles on U.S. stocks for 15 years. He has been employed by The Fly and Israel’s largest business newspaper, Globes. Larry began writing columns for InvestorPlace in 2015. Among his highly successful, contrarian picks have been PLUG, XOM and solar stocks. You can reach him on Stocktwits at @larryramer.
The post 3 Cheap Blue-Chip Stocks Under $15 to Buy Now appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Denny’s (DENN) Source: JHVEPhoto / Shutterstock.com Denny’s (NYSE:DENN) reported strong first-quarter results on May 2, as its U.S. same-restaurant sales jumped 8.4% versus the same period a year earlier, and its operating income climbed to $16.1 million from $13.3 in Q1 of 2022. Denny’s reiterated its previous 2023 guidance, which calls for a U.S. same-restaurant sales increase of 3%-6% and the opening of 35-45 new restaurants. Additionally, Denny’s expects to generate EBITDA, excluding some items, of $86 million to $90 million.
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Denny’s (DENN) Source: JHVEPhoto / Shutterstock.com Denny’s (NYSE:DENN) reported strong first-quarter results on May 2, as its U.S. same-restaurant sales jumped 8.4% versus the same period a year earlier, and its operating income climbed to $16.1 million from $13.3 in Q1 of 2022. Additionally, Denny’s expects to generate EBITDA, excluding some items, of $86 million to $90 million. DENN stock has a low forward price-earnings ratio of 17, making it one of the best blue-chip stocks under $15.
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Denny’s (DENN) Source: JHVEPhoto / Shutterstock.com Denny’s (NYSE:DENN) reported strong first-quarter results on May 2, as its U.S. same-restaurant sales jumped 8.4% versus the same period a year earlier, and its operating income climbed to $16.1 million from $13.3 in Q1 of 2022. Denny’s reiterated its previous 2023 guidance, which calls for a U.S. same-restaurant sales increase of 3%-6% and the opening of 35-45 new restaurants. Additionally, Denny’s expects to generate EBITDA, excluding some items, of $86 million to $90 million.
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Additionally, Denny’s expects to generate EBITDA, excluding some items, of $86 million to $90 million. DENN stock has a low forward price-earnings ratio of 17, making it one of the best blue-chip stocks under $15. Denny’s (DENN) Source: JHVEPhoto / Shutterstock.com Denny’s (NYSE:DENN) reported strong first-quarter results on May 2, as its U.S. same-restaurant sales jumped 8.4% versus the same period a year earlier, and its operating income climbed to $16.1 million from $13.3 in Q1 of 2022.
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7fcea4df-7705-4fe6-94d1-339e3dacf24c
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727259.0
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2023-05-03 00:00:00 UTC
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Wedbush Maintains Denny's (DENN) Neutral Recommendation
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DENN
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https://www.nasdaq.com/articles/wedbush-maintains-dennys-denn-neutral-recommendation
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nan
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nan
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Fintel reports that on May 3, 2023, Wedbush maintained coverage of Denny's (NASDAQ:DENN) with a Neutral recommendation.
Analyst Price Forecast Suggests 29.66% Upside
As of April 24, 2023, the average one-year price target for Denny's is 14.54. The forecasts range from a low of 12.12 to a high of $17.85. The average price target represents an increase of 29.66% from its latest reported closing price of 11.21.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Denny's is 474MM, an increase of 3.79%. The projected annual non-GAAP EPS is 0.67.
What is the Fund Sentiment?
There are 356 funds or institutions reporting positions in Denny's. This is an increase of 3 owner(s) or 0.85% in the last quarter. Average portfolio weight of all funds dedicated to DENN is 0.11%, a decrease of 5.05%. Total shares owned by institutions decreased in the last three months by 3.18% to 67,782K shares.
The put/call ratio of DENN is 1.81, indicating a bearish outlook.
What are Other Shareholders Doing?
Allspring Global Investments Holdings holds 7,651K shares representing 13.54% ownership of the company. In it's prior filing, the firm reported owning 7,471K shares, representing an increase of 2.36%. The firm increased its portfolio allocation in DENN by 20.42% over the last quarter.
Wellington Management Group Llp holds 5,450K shares representing 9.65% ownership of the company. In it's prior filing, the firm reported owning 5,499K shares, representing a decrease of 0.89%. The firm decreased its portfolio allocation in DENN by 8.67% over the last quarter.
ESPAX - Wells Fargo Special Small Cap Value Fund holds 4,611K shares representing 8.16% ownership of the company. In it's prior filing, the firm reported owning 4,560K shares, representing an increase of 1.11%. The firm decreased its portfolio allocation in DENN by 8.40% over the last quarter.
Franklin Resources holds 3,585K shares representing 6.35% ownership of the company. In it's prior filing, the firm reported owning 5,620K shares, representing a decrease of 56.76%. The firm decreased its portfolio allocation in DENN by 86.85% over the last quarter.
FRVLX - Franklin Small Cap Value Fund holds 2,224K shares representing 3.94% ownership of the company. In it's prior filing, the firm reported owning 3,830K shares, representing a decrease of 72.18%. The firm decreased its portfolio allocation in DENN by 42.34% over the last quarter.
Denny`s Background Information
(This description is provided by the company.)
Denny's Corporation is the franchisor and operator of one of America's largest franchised full-service restaurant chains, based on the number of restaurants. As of December 30, 2020, Denny's had 1,650 franchised, licensed, and company restaurants around the world including 146 restaurants in Canada, Puerto Rico, Mexico, the Philippines, New Zealand, Honduras, the United Arab Emirates, Costa Rica, Guam, Guatemala, El Salvador, Indonesia, and the United Kingdom.
See all Denny's regulatory filings.
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Fintel reports that on May 3, 2023, Wedbush maintained coverage of Denny's (NASDAQ:DENN) with a Neutral recommendation. As of December 30, 2020, Denny's had 1,650 franchised, licensed, and company restaurants around the world including 146 restaurants in Canada, Puerto Rico, Mexico, the Philippines, New Zealand, Honduras, the United Arab Emirates, Costa Rica, Guam, Guatemala, El Salvador, Indonesia, and the United Kingdom. Analyst Price Forecast Suggests 29.66% Upside As of April 24, 2023, the average one-year price target for Denny's is 14.54.
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Fintel reports that on May 3, 2023, Wedbush maintained coverage of Denny's (NASDAQ:DENN) with a Neutral recommendation. Analyst Price Forecast Suggests 29.66% Upside As of April 24, 2023, the average one-year price target for Denny's is 14.54. The projected annual revenue for Denny's is 474MM, an increase of 3.79%.
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Fintel reports that on May 3, 2023, Wedbush maintained coverage of Denny's (NASDAQ:DENN) with a Neutral recommendation. Analyst Price Forecast Suggests 29.66% Upside As of April 24, 2023, the average one-year price target for Denny's is 14.54. The projected annual revenue for Denny's is 474MM, an increase of 3.79%.
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There are 356 funds or institutions reporting positions in Denny's. Fintel reports that on May 3, 2023, Wedbush maintained coverage of Denny's (NASDAQ:DENN) with a Neutral recommendation. Analyst Price Forecast Suggests 29.66% Upside As of April 24, 2023, the average one-year price target for Denny's is 14.54.
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a2dd096f-15d4-472b-aced-cad5cada8788
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727260.0
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2023-05-02 00:00:00 UTC
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Denny's (DENN) Lags Q1 Earnings Estimates
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DENN
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https://www.nasdaq.com/articles/dennys-denn-lags-q1-earnings-estimates
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nan
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nan
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Denny's (DENN) came out with quarterly earnings of $0.13 per share, missing the Zacks Consensus Estimate of $0.14 per share. This compares to earnings of $0.11 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -7.14%. A quarter ago, it was expected that this restaurant operator would post earnings of $0.16 per share when it actually produced earnings of $0.18, delivering a surprise of 12.50%.
Over the last four quarters, the company has surpassed consensus EPS estimates just once.
Denny's, which belongs to the Zacks Retail - Restaurants industry, posted revenues of $117.47 million for the quarter ended March 2023, surpassing the Zacks Consensus Estimate by 2.67%. This compares to year-ago revenues of $103.11 million. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Denny's shares have added about 21.2% since the beginning of the year versus the S&P 500's gain of 8.6%.
What's Next for Denny's?
While Denny's has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Denny's: unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.18 on $120.31 million in revenues for the coming quarter and $0.63 on $473.22 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Retail - Restaurants is currently in the top 22% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, Ruth's Hospitality (RUTH), is yet to report results for the quarter ended March 2023. The results are expected to be released on May 5.
This restaurant chain is expected to post quarterly earnings of $0.39 per share in its upcoming report, which represents a year-over-year change of +25.8%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Ruth's Hospitality's revenues are expected to be $139.8 million, up 10.8% from the year-ago quarter.
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Denny's Corporation (DENN) : Free Stock Analysis Report
Ruth's Hospitality Group, Inc. (RUTH) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Denny's (DENN) came out with quarterly earnings of $0.13 per share, missing the Zacks Consensus Estimate of $0.14 per share. Denny's, which belongs to the Zacks Retail - Restaurants industry, posted revenues of $117.47 million for the quarter ended March 2023, surpassing the Zacks Consensus Estimate by 2.67%. Denny's shares have added about 21.2% since the beginning of the year versus the S&P 500's gain of 8.6%.
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Denny's, which belongs to the Zacks Retail - Restaurants industry, posted revenues of $117.47 million for the quarter ended March 2023, surpassing the Zacks Consensus Estimate by 2.67%. Click to get this free report Denny's Corporation (DENN) : Free Stock Analysis Report Ruth's Hospitality Group, Inc. (RUTH) : Free Stock Analysis Report To read this article on Zacks.com click here. Denny's (DENN) came out with quarterly earnings of $0.13 per share, missing the Zacks Consensus Estimate of $0.14 per share.
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Denny's (DENN) came out with quarterly earnings of $0.13 per share, missing the Zacks Consensus Estimate of $0.14 per share. Denny's, which belongs to the Zacks Retail - Restaurants industry, posted revenues of $117.47 million for the quarter ended March 2023, surpassing the Zacks Consensus Estimate by 2.67%. Click to get this free report Denny's Corporation (DENN) : Free Stock Analysis Report Ruth's Hospitality Group, Inc. (RUTH) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Denny's, which belongs to the Zacks Retail - Restaurants industry, posted revenues of $117.47 million for the quarter ended March 2023, surpassing the Zacks Consensus Estimate by 2.67%. Denny's (DENN) came out with quarterly earnings of $0.13 per share, missing the Zacks Consensus Estimate of $0.14 per share. Denny's shares have added about 21.2% since the beginning of the year versus the S&P 500's gain of 8.6%.
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f250065e-770b-4a44-ae78-6ec25ac9bb52
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727261.0
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2023-04-29 00:00:00 UTC
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Truist Securities Maintains Denny's (DENN) Buy Recommendation
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https://www.nasdaq.com/articles/truist-securities-maintains-dennys-denn-buy-recommendation
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Fintel reports that on April 28, 2023, Truist Securities maintained coverage of Denny's (NASDAQ:DENN) with a Buy recommendation.
Analyst Price Forecast Suggests 29.66% Upside
As of April 24, 2023, the average one-year price target for Denny's is 14.54. The forecasts range from a low of 12.12 to a high of $17.85. The average price target represents an increase of 29.66% from its latest reported closing price of 11.21.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Denny's is 474MM, an increase of 3.79%. The projected annual non-GAAP EPS is 0.67.
What is the Fund Sentiment?
There are 358 funds or institutions reporting positions in Denny's. This is an increase of 7 owner(s) or 1.99% in the last quarter. Average portfolio weight of all funds dedicated to DENN is 0.11%, a decrease of 7.42%. Total shares owned by institutions decreased in the last three months by 3.21% to 67,792K shares.
The put/call ratio of DENN is 1.80, indicating a bearish outlook.
What are Other Shareholders Doing?
Allspring Global Investments Holdings holds 7,651K shares representing 13.54% ownership of the company. In it's prior filing, the firm reported owning 7,471K shares, representing an increase of 2.36%. The firm increased its portfolio allocation in DENN by 20.42% over the last quarter.
Wellington Management Group Llp holds 5,450K shares representing 9.65% ownership of the company. In it's prior filing, the firm reported owning 5,499K shares, representing a decrease of 0.89%. The firm decreased its portfolio allocation in DENN by 8.67% over the last quarter.
ESPAX - Wells Fargo Special Small Cap Value Fund holds 4,611K shares representing 8.16% ownership of the company. In it's prior filing, the firm reported owning 4,560K shares, representing an increase of 1.11%. The firm decreased its portfolio allocation in DENN by 8.40% over the last quarter.
Franklin Resources holds 3,585K shares representing 6.35% ownership of the company. In it's prior filing, the firm reported owning 5,620K shares, representing a decrease of 56.76%. The firm decreased its portfolio allocation in DENN by 86.85% over the last quarter.
FRVLX - Franklin Small Cap Value Fund holds 2,224K shares representing 3.94% ownership of the company. In it's prior filing, the firm reported owning 3,830K shares, representing a decrease of 72.18%. The firm decreased its portfolio allocation in DENN by 42.34% over the last quarter.
Denny`s Background Information
(This description is provided by the company.)
Denny's Corporation is the franchisor and operator of one of America's largest franchised full-service restaurant chains, based on the number of restaurants. As of December 30, 2020, Denny's had 1,650 franchised, licensed, and company restaurants around the world including 146 restaurants in Canada, Puerto Rico, Mexico, the Philippines, New Zealand, Honduras, the United Arab Emirates, Costa Rica, Guam, Guatemala, El Salvador, Indonesia, and the United Kingdom.
See all Denny's regulatory filings.
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Fintel reports that on April 28, 2023, Truist Securities maintained coverage of Denny's (NASDAQ:DENN) with a Buy recommendation. As of December 30, 2020, Denny's had 1,650 franchised, licensed, and company restaurants around the world including 146 restaurants in Canada, Puerto Rico, Mexico, the Philippines, New Zealand, Honduras, the United Arab Emirates, Costa Rica, Guam, Guatemala, El Salvador, Indonesia, and the United Kingdom. Analyst Price Forecast Suggests 29.66% Upside As of April 24, 2023, the average one-year price target for Denny's is 14.54.
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Fintel reports that on April 28, 2023, Truist Securities maintained coverage of Denny's (NASDAQ:DENN) with a Buy recommendation. Analyst Price Forecast Suggests 29.66% Upside As of April 24, 2023, the average one-year price target for Denny's is 14.54. The projected annual revenue for Denny's is 474MM, an increase of 3.79%.
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Fintel reports that on April 28, 2023, Truist Securities maintained coverage of Denny's (NASDAQ:DENN) with a Buy recommendation. Analyst Price Forecast Suggests 29.66% Upside As of April 24, 2023, the average one-year price target for Denny's is 14.54. The projected annual revenue for Denny's is 474MM, an increase of 3.79%.
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Analyst Price Forecast Suggests 29.66% Upside As of April 24, 2023, the average one-year price target for Denny's is 14.54. Fintel reports that on April 28, 2023, Truist Securities maintained coverage of Denny's (NASDAQ:DENN) with a Buy recommendation. The projected annual revenue for Denny's is 474MM, an increase of 3.79%.
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9af2ffc7-acc7-4b8b-8b0b-52d912fd166b
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727262.0
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2023-04-11 00:00:00 UTC
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Benchmark Reiterates Denny's (DENN) Buy Recommendation
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https://www.nasdaq.com/articles/benchmark-reiterates-dennys-denn-buy-recommendation
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Fintel reports that on April 10, 2023, Benchmark reiterated coverage of Denny's (NASDAQ:DENN) with a Buy recommendation.
Analyst Price Forecast Suggests 31.41% Upside
As of April 6, 2023, the average one-year price target for Denny's is $14.71. The forecasts range from a low of $13.13 to a high of $17.85. The average price target represents an increase of 31.41% from its latest reported closing price of $11.19.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Denny's is $474MM, an increase of 3.79%. The projected annual non-GAAP EPS is $0.67.
What are Other Shareholders Doing?
WELLS FARGO MASTER TRUST - Wells Fargo Factor Enhanced Small Cap Portfolio holds 3K shares representing 0.00% ownership of the company. In it's prior filing, the firm reported owning 3K shares, representing a decrease of 2.22%. The firm increased its portfolio allocation in DENN by 22.70% over the last quarter.
Ameritas Investment Partners holds 5K shares representing 0.01% ownership of the company. No change in the last quarter.
QCEQRX - Equity Index Account Class R1 holds 41K shares representing 0.07% ownership of the company. No change in the last quarter.
SPGM - SPDR Portfolio MSCI Global Stock Market ETF holds 1K shares representing 0.00% ownership of the company. In it's prior filing, the firm reported owning 0K shares, representing an increase of 3.11%. The firm decreased its portfolio allocation in DENN by 10.68% over the last quarter.
FinTrust Capital Advisors holds 0K shares representing 0.00% ownership of the company. In it's prior filing, the firm reported owning 0K shares, representing an increase of 33.54%. The firm increased its portfolio allocation in DENN by 33.82% over the last quarter.
What is the Fund Sentiment?
There are 356 funds or institutions reporting positions in Denny's. This is unchanged over the last quarter. Average portfolio weight of all funds dedicated to DENN is 0.11%, a decrease of 1.60%. Total shares owned by institutions decreased in the last three months by 4.26% to 67,648K shares.
The put/call ratio of DENN is 1.61, indicating a bearish outlook.
Denny`s Background Information
(This description is provided by the company.)
Denny's Corporation is the franchisor and operator of one of America's largest franchised full-service restaurant chains, based on the number of restaurants. As of December 30, 2020, Denny's had 1,650 franchised, licensed, and company restaurants around the world including 146 restaurants in Canada, Puerto Rico, Mexico, the Philippines, New Zealand, Honduras, the United Arab Emirates, Costa Rica, Guam, Guatemala, El Salvador, Indonesia, and the United Kingdom.
See all Denny's regulatory filings.
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Fintel reports that on April 10, 2023, Benchmark reiterated coverage of Denny's (NASDAQ:DENN) with a Buy recommendation. As of December 30, 2020, Denny's had 1,650 franchised, licensed, and company restaurants around the world including 146 restaurants in Canada, Puerto Rico, Mexico, the Philippines, New Zealand, Honduras, the United Arab Emirates, Costa Rica, Guam, Guatemala, El Salvador, Indonesia, and the United Kingdom. Analyst Price Forecast Suggests 31.41% Upside As of April 6, 2023, the average one-year price target for Denny's is $14.71.
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Fintel reports that on April 10, 2023, Benchmark reiterated coverage of Denny's (NASDAQ:DENN) with a Buy recommendation. Analyst Price Forecast Suggests 31.41% Upside As of April 6, 2023, the average one-year price target for Denny's is $14.71. The projected annual revenue for Denny's is $474MM, an increase of 3.79%.
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Fintel reports that on April 10, 2023, Benchmark reiterated coverage of Denny's (NASDAQ:DENN) with a Buy recommendation. Analyst Price Forecast Suggests 31.41% Upside As of April 6, 2023, the average one-year price target for Denny's is $14.71. The projected annual revenue for Denny's is $474MM, an increase of 3.79%.
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The firm increased its portfolio allocation in DENN by 22.70% over the last quarter. The firm increased its portfolio allocation in DENN by 33.82% over the last quarter. Fintel reports that on April 10, 2023, Benchmark reiterated coverage of Denny's (NASDAQ:DENN) with a Buy recommendation.
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2893de11-0987-4c70-be95-683685064bd5
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727263.0
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2023-03-15 00:00:00 UTC
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Do Options Traders Know Something About Denny's (DENN) Stock We Don't?
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https://www.nasdaq.com/articles/do-options-traders-know-something-about-dennys-denn-stock-we-dont
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Investors in Denny's DENN need to pay close attention to the stock based on moves in the options market lately. That is because the May 19, 2023 $2.50 Call had some of the highest implied volatility of all equity options today.
What is Implied Volatility?
Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
What do the Analysts Think?
Clearly, options traders are pricing in a big move for Denny's shares, but what is the fundamental picture for the company? Currently, Denny's is a Zacks Rank #3 (Hold) in the Retail - Restaurants industry that ranks in the Top 30% of our Zacks Industry Rank. Over the last 30 days, two analysts have increased their earnings estimates for the current quarter, while one analyst has revised the estimate downward. The net effect has taken our Zacks Consensus Estimate for the current quarter from 15 cents per share to 14 cents in that period.
Given the way analysts feel about Denny's right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.
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5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Denny's Corporation (DENN) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Investors in Denny's DENN need to pay close attention to the stock based on moves in the options market lately. Clearly, options traders are pricing in a big move for Denny's shares, but what is the fundamental picture for the company? Currently, Denny's is a Zacks Rank #3 (Hold) in the Retail - Restaurants industry that ranks in the Top 30% of our Zacks Industry Rank.
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Click to get this free report Denny's Corporation (DENN) : Free Stock Analysis Report To read this article on Zacks.com click here. Investors in Denny's DENN need to pay close attention to the stock based on moves in the options market lately. Clearly, options traders are pricing in a big move for Denny's shares, but what is the fundamental picture for the company?
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Given the way analysts feel about Denny's right now, this huge implied volatility could mean there’s a trade developing. Investors in Denny's DENN need to pay close attention to the stock based on moves in the options market lately. Clearly, options traders are pricing in a big move for Denny's shares, but what is the fundamental picture for the company?
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Given the way analysts feel about Denny's right now, this huge implied volatility could mean there’s a trade developing. Investors in Denny's DENN need to pay close attention to the stock based on moves in the options market lately. Clearly, options traders are pricing in a big move for Denny's shares, but what is the fundamental picture for the company?
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727264.0
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2023-02-16 00:00:00 UTC
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3 Smaller Stocks to Buy for Conversational AI Exposure
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https://www.nasdaq.com/articles/3-smaller-stocks-to-buy-for-conversational-ai-exposure
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nan
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Long the exclusive domain of science fiction, artificial intelligence (AI) platforms have become integrated across a range of applications. In particular, the role of conversational AI – or digital platforms that facilitate interactions with human end users through normal language – expanded considerably. And while it’s instinctive to target the largest enterprises for profiting off this sector, certain smaller stocks to buy may offer a bigger bang for the buck.
As TipRanks reporter Marty Shtrubel mentioned, AI commands incredible, wide-ranging relevancies. “From image recognition to healthcare, e-commerce to advertising to credit scoring and many other industries – all are making use of AI’s human-like capabilities. And with computing power continuously improving, it is set to get more prevalent over time.”
Specifically, Shtrubel highlights ChatGPT – an AI chatbot developed by OpenAI and supported by software giant Microsoft (NASDAQ:MSFT). “The tool has quickly caught the public’s imagination with its ability to perform different tasks such as write articles, songs, and even write code and its success has only highlighted how AI will keep on impacting our lives.”
Naturally, investors intrigued with the opportunities inherent in conversational AI may want to target MSFT. With the company commanding a Strong Buy rating on Wall Street, it easily ranks among the stocks to buy. However, by specifically targeting smaller enterprises, prospective investors may enjoy far greater rewards (albeit at higher risk profiles).
For the brave contrarian, below are three smaller stocks to buy on the rise of conversational AI.
SoundHound (NASDAQ:SOUN)
First on the list stands SoundHound, one of the direct players in the conversational AI arena. According to Shtrubel, the voice assisting specialist enables consumers to interact with products. Most notably, the company commands a massive total addressable market of $160 billion. By 2024, AI industry experts forecast that manufacturers will produce 8 billion voice assistants. Moreover, they will integrate with 75 billion connected devices operating globally by 2025.
Adding to SoundHound’s street cred, the company leverages an enviable client roster, including Mercedes-Benz Group (OTCMKTS:MBGAF), Hyundai, Kia, Snap (NYSE:SNAP), and Vizio (NYSE:VZIO). Interestingly, SoundHound represents a recent public offering, entering the capital market via a merger with a special purpose acquisition company back in April last year.
To be 100% clear, SOUN represents an aspirational stock. Financially, the company could use plenty of work, particularly with its balance sheet. Not surprisingly, for a limited-revenue firm, SoundHound’s profit margins rank deep in negative territory. As well, by most key measures – whether against sales, book value, or free cash flow – SOUN pings as overvalued relative to its peers.
Still, Cantor’s Brett Knoblauch believes SoundHound’s Dynamic Interaction platform – which utilizes conversational AI to service customers – could be a game-changer. Therefore, SOUN stands among the speculative stocks to buy.
Is SOUN Stock a Buy, According to Analysts?
Turning to Wall Street, SOUN stock has a Moderate consensus rating based on two Buys, zero Holds, and zero Sell ratings. The average SOUN stock price target is $3.05, implying 16.7% downside potential.
Lemonade (NYSE:LMND)
Combining two enterprises into one, insurance technology firm Lemonade offers an enticing narrative. Part financial technology (fintech) specialist and part insurance provider, Lemonade speaks the language of millennials and Generation Z, and increasingly, that language doesn’t really involve human interactions.
Instead, many of Lemonade’s frontline interactions utilize chatbots. Levering advanced conversational AI protocols, the company can effectively have computers address basic member inquiries and concerns. Fundamentally, the deployment of AI carries the advantage of 24/7/365 service. Frankly, in some cases, AI bots operate in a superior fashion to their human counterparts. They don’t require downtime, nor do they complain about the numerous frustrations real workers encounter.
As well, the utilization of AI frees up Lemonade’s core employees to conduct essential services, such as underwriting, customer care, and claims processing. Therefore, the business found a happy medium between digitalization and traditional “analog” operations.
Similar to SoundHound, though, Lemonade requires some shoring up of its financials. Eventually, investors will want to see margins move into positive territory, and for now, LMND rates as overvalued against trailing-year sales compared to its peers.
However, insurance represents a fundamentally relevant industry. Therefore, Lemonade’s inelastic demand profile makes it one of the AI-related stocks to consider buying.
Is LMND Stock a Buy, According to Analysts?
Turning to Wall Street, LMND stock has a Hold consensus rating based on one Buy, two Holds, and one Sell rating. The average LMND stock price target is $23.25, implying 34.55% upside potential.
Denny’s (NASDAQ:DENN)
Typically, whenever the topic of Denny’s comes up, it’s usually because of hunger and the fact that no other eatery is open. However, as an example of AI-related stocks to buy, DENN would probably rank near the bottom of the relevancy scale. Still, the reality is that such a quick dismissal of “America’s Diner” would be a mistake.
In 2017, Denny’s rolled out a 24/7 online and mobile ordering platform for pickup and delivery called Denny’s on Demand. According to Marketing Dive, “The platform was created with the help of digital ordering provider Olo and includes a total revamp of Denny’s mobile app that makes it easier for users to find a restaurant location, place orders, and pay for takeout or delivery where available.”
Further, the diner announced the launch of a branded chatbot integrated into social media, thus enhancing the customer experience. Again, the underlying implication is that robots can handle much of the mundane frontline requests, sparing core employees for more critical work – such as food preparation.
Notably, in 2022, Denny’s replaced its on-premise contact center solution with 3CLogic’s service management protocol to manage employee incidents and human resource-related requests.
Financially, Denny’s enjoys a leg up on the competition because of its value proposition. Currently, the market prices DENN at a forward multiple of 17.9. This ranks better than 60% of sector peers, making it an attractive stock to consider buying.
Is DENN Stock a Buy, According to Analysts?
Turning to Wall Street, DENN stock has a Moderate Buy consensus rating based on three Buys and two Hold ratings assigned in the past three months. The average DENN stock price target is $13.25, implying 13.8% upside potential.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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According to Marketing Dive, “The platform was created with the help of digital ordering provider Olo and includes a total revamp of Denny’s mobile app that makes it easier for users to find a restaurant location, place orders, and pay for takeout or delivery where available.” Further, the diner announced the launch of a branded chatbot integrated into social media, thus enhancing the customer experience. Denny’s (NASDAQ:DENN) Typically, whenever the topic of Denny’s comes up, it’s usually because of hunger and the fact that no other eatery is open. However, as an example of AI-related stocks to buy, DENN would probably rank near the bottom of the relevancy scale.
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Turning to Wall Street, DENN stock has a Moderate Buy consensus rating based on three Buys and two Hold ratings assigned in the past three months. Denny’s (NASDAQ:DENN) Typically, whenever the topic of Denny’s comes up, it’s usually because of hunger and the fact that no other eatery is open. However, as an example of AI-related stocks to buy, DENN would probably rank near the bottom of the relevancy scale.
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Turning to Wall Street, DENN stock has a Moderate Buy consensus rating based on three Buys and two Hold ratings assigned in the past three months. Denny’s (NASDAQ:DENN) Typically, whenever the topic of Denny’s comes up, it’s usually because of hunger and the fact that no other eatery is open. However, as an example of AI-related stocks to buy, DENN would probably rank near the bottom of the relevancy scale.
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Denny’s (NASDAQ:DENN) Typically, whenever the topic of Denny’s comes up, it’s usually because of hunger and the fact that no other eatery is open. However, as an example of AI-related stocks to buy, DENN would probably rank near the bottom of the relevancy scale. In 2017, Denny’s rolled out a 24/7 online and mobile ordering platform for pickup and delivery called Denny’s on Demand.
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2023-02-15 00:00:00 UTC
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Analysts Like The Flavor Of Restaurant Brands International
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https://www.nasdaq.com/articles/analysts-like-the-flavor-of-restaurant-brands-international
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Restaurant Brands International (NYSE: QSR) issued a mixed q4 report and is still facing headwinds, but that is no deterrent for the analysts. At least 6 sell-side analysts have come out with commentary since the Q4 release, and all support the price action. There were no upgrades or downgrades, and the activity includes 2 price target reductions, but all are above the Marketbeat.com consensus estimate.
The consensus estimate is trending higher on this activity and commentaries issued over the last 2 quarters and not only implies upside for the market but is quickly approaching the highs set last year.
The $68.53 consensus target is barely above the current price action. The takeaway is that this target coincides with the post-COVID highs in the stock price and is trending higher. If this trend continues, it will support the market and may help it to break out to new highs.
The stock is highly valued at this level, trading about 22X its earnings, but this is consistent with the restaurant market, so it may not be a concern now. McDonald’s (NYSE: MCD) and Yum! Brands (NYSE: YUM) both trade near 25X earnings and represent the 2 most prominent fast food franchises on the planet, while quick-serve sit-down brand Denny’s (NASDAQ: DENN) trades at 19X earnings. Because McDonald’s and Yum! Brands pay dividends with yields below Restaurant Brands International it may even be under-valued.
Restaurant Brands Has Mixed Quarter
Restaurant Brands had a good quarter, but 1 in which the strengths were priced in and 1-off factors cut into the bottom line. The company reported $1.69 billion in net revenue for a gain of 9.7% versus last year. The gains were driven by strength in Tim Hortons, which is getting a boost from improving traffic, and strength in Burger King International. Regardless, all segments posted double-digit YOY growth except the recently acquired Firehouse Subs, which grew by low single digits.
Global system-wide sales growth topped 12% but was impacted by FX headwinds. The systemwide comp came in at 8% and was boosted by a strong year of expansion. Popeyes, in particular, saw its strongest year of growth since the brand was brought into the QSR fold. On a channel basis, the digital channels grew by 30% and are now more than 33% of the net revenue. The company’s strategies are working.
The margin is where the news is mixed, but there is a mitigating factor. The isolation of Russian businesses had a 2% impact on the EBITDA margin. That, along with cost pressures, resulted in EPS of $0.72, which is $0.02 below the consensus.
The salient point is that earnings and cash flow remain robust and allow aggressive expansion, investment in the Reach The Flame turnaround plan, dividend increases and a reduction in net-debt leverage. Those are all positives for the stock price long term.
Capital Returns Help Support QSR Share Prices
Restaurant Brands International’s dividend is attractive enough for its 3.35% yield but is also growing. The company has been growing the yield aggressively over the past few years, but this may stop. The payout ratio is sufficiently high at 68%, so a 20% CAGR should not be expected to continue. The 2% increase announced with the Q4 results is more in-line with the long-term outlook.
The chart shows QSR is range bound but trading at the top end of that range following an upswing. The Q4 results sparked a sell-off in the stock, but support is already evident above key levels like the 150-day moving average and $60, a critical post-COVID pivot point for the market. Assuming the market stays interested in this company, the stock should move sideways and even break above $70.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Brands (NYSE: YUM) both trade near 25X earnings and represent the 2 most prominent fast food franchises on the planet, while quick-serve sit-down brand Denny’s (NASDAQ: DENN) trades at 19X earnings. The consensus estimate is trending higher on this activity and commentaries issued over the last 2 quarters and not only implies upside for the market but is quickly approaching the highs set last year. The salient point is that earnings and cash flow remain robust and allow aggressive expansion, investment in the Reach The Flame turnaround plan, dividend increases and a reduction in net-debt leverage.
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Brands (NYSE: YUM) both trade near 25X earnings and represent the 2 most prominent fast food franchises on the planet, while quick-serve sit-down brand Denny’s (NASDAQ: DENN) trades at 19X earnings. Restaurant Brands International (NYSE: QSR) issued a mixed q4 report and is still facing headwinds, but that is no deterrent for the analysts. Restaurant Brands Has Mixed Quarter Restaurant Brands had a good quarter, but 1 in which the strengths were priced in and 1-off factors cut into the bottom line.
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Brands (NYSE: YUM) both trade near 25X earnings and represent the 2 most prominent fast food franchises on the planet, while quick-serve sit-down brand Denny’s (NASDAQ: DENN) trades at 19X earnings. Restaurant Brands Has Mixed Quarter Restaurant Brands had a good quarter, but 1 in which the strengths were priced in and 1-off factors cut into the bottom line. Capital Returns Help Support QSR Share Prices Restaurant Brands International’s dividend is attractive enough for its 3.35% yield but is also growing.
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Brands (NYSE: YUM) both trade near 25X earnings and represent the 2 most prominent fast food franchises on the planet, while quick-serve sit-down brand Denny’s (NASDAQ: DENN) trades at 19X earnings. Restaurant Brands International (NYSE: QSR) issued a mixed q4 report and is still facing headwinds, but that is no deterrent for the analysts. The takeaway is that this target coincides with the post-COVID highs in the stock price and is trending higher.
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ac2ce42a-0113-4434-ac43-b62f08ef7dfa
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727266.0
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2023-02-13 00:00:00 UTC
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Denny's (DENN) Beats Q4 Earnings and Revenue Estimates
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DENN
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https://www.nasdaq.com/articles/dennys-denn-beats-q4-earnings-and-revenue-estimates
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nan
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Denny's (DENN) came out with quarterly earnings of $0.18 per share, beating the Zacks Consensus Estimate of $0.16 per share. This compares to earnings of $0.16 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 12.50%. A quarter ago, it was expected that this restaurant operator would post earnings of $0.14 per share when it actually produced earnings of $0.12, delivering a surprise of -14.29%.
Over the last four quarters, the company has surpassed consensus EPS estimates just once.
Denny's, which belongs to the Zacks Retail - Restaurants industry, posted revenues of $120.85 million for the quarter ended December 2022, surpassing the Zacks Consensus Estimate by 0.15%. This compares to year-ago revenues of $107.64 million. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Denny's shares have added about 30.7% since the beginning of the year versus the S&P 500's gain of 6.5%.
What's Next for Denny's?
While Denny's has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Denny's: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.15 on $109.7 million in revenues for the coming quarter and $0.66 on $466.98 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Retail - Restaurants is currently in the top 35% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
BJ's Restaurants (BJRI), another stock in the same industry, has yet to report results for the quarter ended December 2022. The results are expected to be released on February 16.
This restaurant chain is expected to post quarterly earnings of $0.07 per share in its upcoming report, which represents a year-over-year change of +135%. The consensus EPS estimate for the quarter has been revised 5.6% higher over the last 30 days to the current level.
BJ's Restaurants' revenues are expected to be $344.01 million, up 18.1% from the year-ago quarter.
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Denny's Corporation (DENN) : Free Stock Analysis Report
BJ's Restaurants, Inc. (BJRI) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Denny's (DENN) came out with quarterly earnings of $0.18 per share, beating the Zacks Consensus Estimate of $0.16 per share. Denny's, which belongs to the Zacks Retail - Restaurants industry, posted revenues of $120.85 million for the quarter ended December 2022, surpassing the Zacks Consensus Estimate by 0.15%. Denny's shares have added about 30.7% since the beginning of the year versus the S&P 500's gain of 6.5%.
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Denny's, which belongs to the Zacks Retail - Restaurants industry, posted revenues of $120.85 million for the quarter ended December 2022, surpassing the Zacks Consensus Estimate by 0.15%. Click to get this free report Denny's Corporation (DENN) : Free Stock Analysis Report BJ's Restaurants, Inc. (BJRI) : Free Stock Analysis Report To read this article on Zacks.com click here. Denny's (DENN) came out with quarterly earnings of $0.18 per share, beating the Zacks Consensus Estimate of $0.16 per share.
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Denny's (DENN) came out with quarterly earnings of $0.18 per share, beating the Zacks Consensus Estimate of $0.16 per share. Denny's, which belongs to the Zacks Retail - Restaurants industry, posted revenues of $120.85 million for the quarter ended December 2022, surpassing the Zacks Consensus Estimate by 0.15%. Denny's shares have added about 30.7% since the beginning of the year versus the S&P 500's gain of 6.5%.
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Denny's (DENN) came out with quarterly earnings of $0.18 per share, beating the Zacks Consensus Estimate of $0.16 per share. Denny's, which belongs to the Zacks Retail - Restaurants industry, posted revenues of $120.85 million for the quarter ended December 2022, surpassing the Zacks Consensus Estimate by 0.15%. Denny's shares have added about 30.7% since the beginning of the year versus the S&P 500's gain of 6.5%.
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a9ece95d-3560-453d-a8b9-6c482d1efe74
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727267.0
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2023-02-09 00:00:00 UTC
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Is a Surprise Coming for Denny's (DENN) This Earnings Season?
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DENN
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https://www.nasdaq.com/articles/is-a-surprise-coming-for-dennys-denn-this-earnings-season
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nan
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Investors are always looking for stocks that are poised to beat at earnings season and Denny's Corporation DENN may be one such company. The firm has earnings coming up pretty soon, and events are shaping up quite nicely for their report.
That is because Denny's is seeing favorable earnings estimate revision activity as of late, which is generally a precursor to an earnings beat. After all, analysts raising estimates right before earnings — with the most up-to-date information possible — is a pretty good indicator of some favorable trends underneath the surface for DENN in this report.
In fact, the Most Accurate Estimate for the current quarter is currently at 17 cents per share for DENN, compared to a broader Zacks Consensus Estimate of 16 cents per share. This suggests that analysts have very recently bumped up their estimates for DENN, giving the stock a Zacks Earnings ESP of +5.15% heading into earnings season.
Denny's Corporation Price and EPS Surprise
Denny's Corporation price-eps-surprise | Denny's Corporation Quote
Why is this Important?
A positive reading for the Zacks Earnings ESP has proven to be very powerful in producing both positive surprises, and outperforming the market. Our recent 10-year backtest shows that stocks that have a positive Earnings ESP and a Zacks Rank #3 (Hold) or better show a positive surprise nearly 70% of the time, and have returned over 28% on average in annual returns (see more Top Earnings ESP stocks here).
Given that DENN has a Zacks Rank #3 and an ESP in positive territory, investors might want to consider this stock ahead of earnings. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Clearly, recent earnings estimate revisions suggest that good things are ahead for Denny's, and that a beat might be in the cards for the upcoming report.
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Denny's Corporation (DENN) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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After all, analysts raising estimates right before earnings — with the most up-to-date information possible — is a pretty good indicator of some favorable trends underneath the surface for DENN in this report. Clearly, recent earnings estimate revisions suggest that good things are ahead for Denny's, and that a beat might be in the cards for the upcoming report. Investors are always looking for stocks that are poised to beat at earnings season and Denny's Corporation DENN may be one such company.
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Denny's Corporation Price and EPS Surprise Denny's Corporation price-eps-surprise | Denny's Corporation Quote Why is this Important? Click to get this free report Denny's Corporation (DENN) : Free Stock Analysis Report To read this article on Zacks.com click here. Investors are always looking for stocks that are poised to beat at earnings season and Denny's Corporation DENN may be one such company.
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This suggests that analysts have very recently bumped up their estimates for DENN, giving the stock a Zacks Earnings ESP of +5.15% heading into earnings season. Click to get this free report Denny's Corporation (DENN) : Free Stock Analysis Report To read this article on Zacks.com click here. Investors are always looking for stocks that are poised to beat at earnings season and Denny's Corporation DENN may be one such company.
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Investors are always looking for stocks that are poised to beat at earnings season and Denny's Corporation DENN may be one such company. This suggests that analysts have very recently bumped up their estimates for DENN, giving the stock a Zacks Earnings ESP of +5.15% heading into earnings season. Given that DENN has a Zacks Rank #3 and an ESP in positive territory, investors might want to consider this stock ahead of earnings.
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1f732e11-3a98-46ff-ad49-f4aa0f69aa21
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727268.0
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2023-02-07 00:00:00 UTC
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Restaurant Brands (QSR) Expected to Beat Earnings Estimates: What to Know Ahead of Q4 Release
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DENN
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https://www.nasdaq.com/articles/restaurant-brands-qsr-expected-to-beat-earnings-estimates%3A-what-to-know-ahead-of-q4
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nan
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Wall Street expects a year-over-year decline in earnings on higher revenues when Restaurant Brands (QSR) reports results for the quarter ended December 2022. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on February 14. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on theearnings call it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus Estimate
This operator of Burger King and Tim Hortons restaurant chains is expected to post quarterly earnings of $0.72 per share in its upcoming report, which represents a year-over-year change of -2.7%.
Revenues are expected to be $1.67 billion, up 7.9% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 0.46% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Earnings Whisper
Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Restaurant Brands?
For Restaurant Brands, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +2.48%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination indicates that Restaurant Brands will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?
While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Restaurant Brands would post earnings of $0.80 per share when it actually produced earnings of $0.96, delivering a surprise of +20%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom Line
An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Restaurant Brands appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
An Industry Player's Expected Results
Denny's (DENN), another stock in the Zacks Retail - Restaurants industry, is expected to report earnings per share of $0.16 for the quarter ended December 2022. This estimate points to no change from the year-ago quarter. Revenues for the quarter are expected to be $120.67 million, up 12.1% from the year-ago quarter.
Over the last 30 days, the consensus EPS estimate for Denny's has been revised 1.7% down to the current level. Nevertheless, the company now has an Earnings ESP of 5.15%, reflecting a higher Most Accurate Estimate.
This Earnings ESP, combined with its Zacks Rank #4 (Sell), makes it difficult to conclusively predict that Denny's will beat the consensus EPS estimate. The company could not beat consensus EPS estimates in any of the last four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Restaurant Brands International Inc. (QSR) : Free Stock Analysis Report
Denny's Corporation (DENN) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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An Industry Player's Expected Results Denny's (DENN), another stock in the Zacks Retail - Restaurants industry, is expected to report earnings per share of $0.16 for the quarter ended December 2022. Over the last 30 days, the consensus EPS estimate for Denny's has been revised 1.7% down to the current level. This Earnings ESP, combined with its Zacks Rank #4 (Sell), makes it difficult to conclusively predict that Denny's will beat the consensus EPS estimate.
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An Industry Player's Expected Results Denny's (DENN), another stock in the Zacks Retail - Restaurants industry, is expected to report earnings per share of $0.16 for the quarter ended December 2022. Click to get this free report Restaurant Brands International Inc. (QSR) : Free Stock Analysis Report Denny's Corporation (DENN) : Free Stock Analysis Report To read this article on Zacks.com click here. Over the last 30 days, the consensus EPS estimate for Denny's has been revised 1.7% down to the current level.
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An Industry Player's Expected Results Denny's (DENN), another stock in the Zacks Retail - Restaurants industry, is expected to report earnings per share of $0.16 for the quarter ended December 2022. Over the last 30 days, the consensus EPS estimate for Denny's has been revised 1.7% down to the current level. This Earnings ESP, combined with its Zacks Rank #4 (Sell), makes it difficult to conclusively predict that Denny's will beat the consensus EPS estimate.
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An Industry Player's Expected Results Denny's (DENN), another stock in the Zacks Retail - Restaurants industry, is expected to report earnings per share of $0.16 for the quarter ended December 2022. Over the last 30 days, the consensus EPS estimate for Denny's has been revised 1.7% down to the current level. This Earnings ESP, combined with its Zacks Rank #4 (Sell), makes it difficult to conclusively predict that Denny's will beat the consensus EPS estimate.
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9f3867fb-7549-4fef-85e8-58baa1e709a9
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727269.0
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2023-02-06 00:00:00 UTC
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Wellington Management Group Llp Cuts Stake in Denny's (DENN)
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DENN
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https://www.nasdaq.com/articles/wellington-management-group-llp-cuts-stake-in-dennys-denn
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nan
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nan
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Fintel reports that Wellington Management Group Llp has filed a 13G/A form with the SEC disclosing ownership of 5.45MM shares of Denny's Corp (DENN). This represents 9.52% of the company.
In their previous filing dated February 4, 2022 they reported 6.20MM shares and 9.78% of the company, a decrease in shares of 12.04% and a decrease in total ownership of 0.26% (calculated as current - previous percent ownership).
Analyst Price Forecast Suggests 6.08% Upside
As of February 5, 2023, the average one-year price target for Denny's is $13.26. The forecasts range from a low of $10.10 to a high of $15.75. The average price target represents an increase of 6.08% from its latest reported closing price of $12.50.
The projected annual revenue for Denny's is $474MM, an increase of 6.88%. The projected annual EPS is $0.67, a decrease of 60.14%.
Fund Sentiment
There are 353 funds or institutions reporting positions in Denny's. This is a decrease of 9 owner(s) or 2.49%.
Average portfolio weight of all funds dedicated to US:DENN is 0.1199%, an increase of 12.0378%. Total shares owned by institutions decreased in the last three months by 4.54% to 70,043K shares.
What are large shareholders doing?
Allspring Global Investments Holdings holds 7,470,975 shares representing 13.05% ownership of the company. In it's prior filing, the firm reported owning 6,790,660 shares, representing an increase of 9.11%. The firm decreased its portfolio allocation in DENN by 55.79% over the last quarter.
Franklin Resources holds 5,620,450 shares representing 9.82% ownership of the company. In it's prior filing, the firm reported owning 6,935,016 shares, representing a decrease of 23.39%. The firm decreased its portfolio allocation in DENN by 78.65% over the last quarter.
ESPAX - Wells Fargo Special Small Cap Value Fund holds 4,560,412 shares representing 7.97% ownership of the company. In it's prior filing, the firm reported owning 4,556,612 shares, representing an increase of 0.08%. The firm increased its portfolio allocation in DENN by 19.36% over the last quarter.
FRVLX - Franklin Small Cap Value Fund holds 3,829,853 shares representing 6.69% ownership of the company. In it's prior filing, the firm reported owning 4,691,189 shares, representing a decrease of 22.49%. The firm decreased its portfolio allocation in DENN by 4.43% over the last quarter.
Brown Advisory holds 2,217,150 shares representing 3.87% ownership of the company. In it's prior filing, the firm reported owning 2,238,312 shares, representing a decrease of 0.95%. The firm increased its portfolio allocation in DENN by 14.67% over the last quarter.
Denny`s Background Information
(This description is provided by the company.)
Denny's Corporation is the franchisor and operator of one of America's largest franchised full-service restaurant chains, based on the number of restaurants. As of December 30, 2020, Denny's had 1,650 franchised, licensed, and company restaurants around the world including 146 restaurants in Canada, Puerto Rico, Mexico, the Philippines, New Zealand, Honduras, the United Arab Emirates, Costa Rica, Guam, Guatemala, El Salvador, Indonesia, and the United Kingdom.
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Fintel reports that Wellington Management Group Llp has filed a 13G/A form with the SEC disclosing ownership of 5.45MM shares of Denny's Corp (DENN). As of December 30, 2020, Denny's had 1,650 franchised, licensed, and company restaurants around the world including 146 restaurants in Canada, Puerto Rico, Mexico, the Philippines, New Zealand, Honduras, the United Arab Emirates, Costa Rica, Guam, Guatemala, El Salvador, Indonesia, and the United Kingdom. Analyst Price Forecast Suggests 6.08% Upside As of February 5, 2023, the average one-year price target for Denny's is $13.26.
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Fintel reports that Wellington Management Group Llp has filed a 13G/A form with the SEC disclosing ownership of 5.45MM shares of Denny's Corp (DENN). Analyst Price Forecast Suggests 6.08% Upside As of February 5, 2023, the average one-year price target for Denny's is $13.26. The projected annual revenue for Denny's is $474MM, an increase of 6.88%.
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Fintel reports that Wellington Management Group Llp has filed a 13G/A form with the SEC disclosing ownership of 5.45MM shares of Denny's Corp (DENN). Analyst Price Forecast Suggests 6.08% Upside As of February 5, 2023, the average one-year price target for Denny's is $13.26. The projected annual revenue for Denny's is $474MM, an increase of 6.88%.
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Fintel reports that Wellington Management Group Llp has filed a 13G/A form with the SEC disclosing ownership of 5.45MM shares of Denny's Corp (DENN). Analyst Price Forecast Suggests 6.08% Upside As of February 5, 2023, the average one-year price target for Denny's is $13.26. The projected annual revenue for Denny's is $474MM, an increase of 6.88%.
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81f2233a-797e-4c2c-b0bb-05671fb7fed5
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727270.0
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2023-02-06 00:00:00 UTC
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Denny's (DENN) Q4 Earnings Preview: What's in the Cards?
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DENN
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https://www.nasdaq.com/articles/dennys-denn-q4-earnings-preview%3A-whats-in-the-cards
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nan
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nan
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The market expects Denny's (DENN) to deliver flat earnings compared to the year-ago quarter on higher revenues when it reports results for the quarter ended December 2022. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on February 13. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on theearnings call it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus Estimate
This restaurant operator is expected to post quarterly earnings of $0.16 per share in its upcoming report, which represents no change from the year-ago quarter.
Revenues are expected to be $120.67 million, up 12.1% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 0.58% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Earnings Whisper
Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Denny's?
For Denny's, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +5.15%.
On the other hand, the stock currently carries a Zacks Rank of #4.
So, this combination makes it difficult to conclusively predict that Denny's will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?
Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Denny's would post earnings of $0.14 per share when it actually produced earnings of $0.12, delivering a surprise of -14.29%.
The company has not been able to beat consensus EPS estimates in any of the last four quarters.
Bottom Line
An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Denny's doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Expected Results of an Industry Player
Among the stocks in the Zacks Retail - Restaurants industry, Yum Brands (YUM) is soon expected to post earnings of $1.25 per share for the quarter ended December 2022. This estimate indicates a year-over-year change of +22.6%. This quarter's revenue is expected to be $1.93 billion, up 2% from the year-ago quarter.
Over the last 30 days, the consensus EPS estimate for Yum has been revised 1.3% up to the current level. Nevertheless, the company now has an Earnings ESP of 1.85%, reflecting a higher Most Accurate Estimate.
When combined with a Zacks Rank of #2 (Buy), this Earnings ESP indicates that Yum will most likely beat the consensus EPS estimate. The company could not beat consensus EPS estimates in any of the last four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Denny's Corporation (DENN) : Free Stock Analysis Report
Yum! Brands, Inc. (YUM) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The market expects Denny's (DENN) to deliver flat earnings compared to the year-ago quarter on higher revenues when it reports results for the quarter ended December 2022. How Have the Numbers Shaped Up for Denny's? For Denny's, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects.
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The market expects Denny's (DENN) to deliver flat earnings compared to the year-ago quarter on higher revenues when it reports results for the quarter ended December 2022. How Have the Numbers Shaped Up for Denny's? For Denny's, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects.
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The market expects Denny's (DENN) to deliver flat earnings compared to the year-ago quarter on higher revenues when it reports results for the quarter ended December 2022. How Have the Numbers Shaped Up for Denny's? For Denny's, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects.
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The market expects Denny's (DENN) to deliver flat earnings compared to the year-ago quarter on higher revenues when it reports results for the quarter ended December 2022. How Have the Numbers Shaped Up for Denny's? For Denny's, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects.
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c2198e03-d944-41ec-bc9d-dba0846749e9
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727271.0
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2023-02-02 00:00:00 UTC
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Starbucks (SBUX) Misses Q1 Earnings and Revenue Estimates
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DENN
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https://www.nasdaq.com/articles/starbucks-sbux-misses-q1-earnings-and-revenue-estimates
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Starbucks (SBUX) came out with quarterly earnings of $0.75 per share, missing the Zacks Consensus Estimate of $0.77 per share. This compares to earnings of $0.72 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -2.60%. A quarter ago, it was expected that this coffee chain would post earnings of $0.73 per share when it actually produced earnings of $0.81, delivering a surprise of 10.96%.
Over the last four quarters, the company has surpassed consensus EPS estimates two times.
Starbucks, which belongs to the Zacks Retail - Restaurants industry, posted revenues of $8.71 billion for the quarter ended December 2022, missing the Zacks Consensus Estimate by 1.04%. This compares to year-ago revenues of $8.05 billion. The company has topped consensus revenue estimates just once over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Starbucks shares have added about 10.9% since the beginning of the year versus the S&P 500's gain of 7.3%.
What's Next for Starbucks?
While Starbucks has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Starbucks: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.70 on $8.59 billion in revenues for the coming quarter and $3.43 on $36.12 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Retail - Restaurants is currently in the bottom 38% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, Denny's (DENN), is yet to report results for the quarter ended December 2022. The results are expected to be released on February 13.
This restaurant operator is expected to post quarterly earnings of $0.16 per share in its upcoming report, which represents no change from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 0.6% lower over the last 30 days to the current level.
Denny's' revenues are expected to be $120.67 million, up 12.1% from the year-ago quarter.
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It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Starbucks Corporation (SBUX) : Free Stock Analysis Report
Denny's Corporation (DENN) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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One other stock from the same industry, Denny's (DENN), is yet to report results for the quarter ended December 2022. Denny's' revenues are expected to be $120.67 million, up 12.1% from the year-ago quarter. Click to get this free report Starbucks Corporation (SBUX) : Free Stock Analysis Report Denny's Corporation (DENN) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Click to get this free report Starbucks Corporation (SBUX) : Free Stock Analysis Report Denny's Corporation (DENN) : Free Stock Analysis Report To read this article on Zacks.com click here. One other stock from the same industry, Denny's (DENN), is yet to report results for the quarter ended December 2022. Denny's' revenues are expected to be $120.67 million, up 12.1% from the year-ago quarter.
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One other stock from the same industry, Denny's (DENN), is yet to report results for the quarter ended December 2022. Denny's' revenues are expected to be $120.67 million, up 12.1% from the year-ago quarter. Click to get this free report Starbucks Corporation (SBUX) : Free Stock Analysis Report Denny's Corporation (DENN) : Free Stock Analysis Report To read this article on Zacks.com click here.
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One other stock from the same industry, Denny's (DENN), is yet to report results for the quarter ended December 2022. Denny's' revenues are expected to be $120.67 million, up 12.1% from the year-ago quarter. Click to get this free report Starbucks Corporation (SBUX) : Free Stock Analysis Report Denny's Corporation (DENN) : Free Stock Analysis Report To read this article on Zacks.com click here.
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b6dcb209-ca6f-4b4b-bfec-51331e11edaa
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727272.0
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2023-01-31 00:00:00 UTC
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BlackRock Updates Holdings in Denny's (DENN)
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DENN
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https://www.nasdaq.com/articles/blackrock-updates-holdings-in-dennys-denn
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Fintel reports that BlackRock has filed a 13G/A form with the SEC disclosing ownership of 4.16MM shares of Denny's Corp (DENN). This represents 7.3% of the company.
In their previous filing dated February 1, 2022 they reported 4.19MM shares and 6.60% of the company, a decrease in shares of 0.91% and an increase in total ownership of 0.70% (calculated as current - previous percent ownership).
Analyst Price Forecast Suggests 11.34% Upside
As of January 31, 2023, the average one-year price target for Denny's is $13.26. The forecasts range from a low of $10.10 to a high of $15.75. The average price target represents an increase of 11.34% from its latest reported closing price of $11.91.
The projected annual revenue for Denny's is $474MM, an increase of 6.88%. The projected annual EPS is $0.67, a decrease of 60.14%.
Fund Sentiment
There are 352 funds or institutions reporting positions in Denny's. This is a decrease of 9 owner(s) or 2.49%.
Average portfolio weight of all funds dedicated to US:DENN is 0.1203%, an increase of 11.7101%. Total shares owned by institutions decreased in the last three months by 1.52% to 70,073K shares.
What are large shareholders doing?
Allspring Global Investments Holdings holds 7,470,975 shares representing 13.05% ownership of the company. In it's prior filing, the firm reported owning 6,790,660 shares, representing an increase of 9.11%. The firm decreased its portfolio allocation in DENN by 55.79% over the last quarter.
Franklin Resources holds 5,620,450 shares representing 9.82% ownership of the company. In it's prior filing, the firm reported owning 6,935,016 shares, representing a decrease of 23.39%. The firm decreased its portfolio allocation in DENN by 78.65% over the last quarter.
Wellington Management Group Llp holds 5,498,528 shares representing 9.61% ownership of the company. In it's prior filing, the firm reported owning 5,778,029 shares, representing a decrease of 5.08%. The firm decreased its portfolio allocation in DENN by 84.83% over the last quarter.
ESPAX - Wells Fargo Special Small Cap Value Fund holds 4,560,412 shares representing 7.97% ownership of the company. In it's prior filing, the firm reported owning 4,556,612 shares, representing an increase of 0.08%. The firm increased its portfolio allocation in DENN by 19.36% over the last quarter.
FRVLX - Franklin Small Cap Value Fund holds 3,829,853 shares representing 6.69% ownership of the company. In it's prior filing, the firm reported owning 4,691,189 shares, representing a decrease of 22.49%. The firm decreased its portfolio allocation in DENN by 4.43% over the last quarter.
Denny`s Background Information
(This description is provided by the company.)
Denny's Corporation is the franchisor and operator of one of America's largest franchised full-service restaurant chains, based on the number of restaurants. As of December 30, 2020, Denny's had 1,650 franchised, licensed, and company restaurants around the world including 146 restaurants in Canada, Puerto Rico, Mexico, the Philippines, New Zealand, Honduras, the United Arab Emirates, Costa Rica, Guam, Guatemala, El Salvador, Indonesia, and the United Kingdom.
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Fintel reports that BlackRock has filed a 13G/A form with the SEC disclosing ownership of 4.16MM shares of Denny's Corp (DENN). As of December 30, 2020, Denny's had 1,650 franchised, licensed, and company restaurants around the world including 146 restaurants in Canada, Puerto Rico, Mexico, the Philippines, New Zealand, Honduras, the United Arab Emirates, Costa Rica, Guam, Guatemala, El Salvador, Indonesia, and the United Kingdom. Analyst Price Forecast Suggests 11.34% Upside As of January 31, 2023, the average one-year price target for Denny's is $13.26.
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Fintel reports that BlackRock has filed a 13G/A form with the SEC disclosing ownership of 4.16MM shares of Denny's Corp (DENN). Analyst Price Forecast Suggests 11.34% Upside As of January 31, 2023, the average one-year price target for Denny's is $13.26. The projected annual revenue for Denny's is $474MM, an increase of 6.88%.
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Fintel reports that BlackRock has filed a 13G/A form with the SEC disclosing ownership of 4.16MM shares of Denny's Corp (DENN). Analyst Price Forecast Suggests 11.34% Upside As of January 31, 2023, the average one-year price target for Denny's is $13.26. The projected annual revenue for Denny's is $474MM, an increase of 6.88%.
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Fintel reports that BlackRock has filed a 13G/A form with the SEC disclosing ownership of 4.16MM shares of Denny's Corp (DENN). Analyst Price Forecast Suggests 11.34% Upside As of January 31, 2023, the average one-year price target for Denny's is $13.26. The projected annual revenue for Denny's is $474MM, an increase of 6.88%.
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b48bb5a6-b2df-4673-841a-cb0139fd7dd9
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727273.0
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2022-10-27 00:00:00 UTC
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Asbury Automotive Group (ABG) Beats Q3 Earnings Estimates
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DENN
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https://www.nasdaq.com/articles/asbury-automotive-group-abg-beats-q3-earnings-estimates
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nan
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Asbury Automotive Group (ABG) came out with quarterly earnings of $9.23 per share, beating the Zacks Consensus Estimate of $9.19 per share. This compares to earnings of $7.36 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 0.44%. A quarter ago, it was expected that this auto dealership chain would post earnings of $8.88 per share when it actually produced earnings of $10.04, delivering a surprise of 13.06%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Asbury Automotive, which belongs to the Zacks Automotive - Retail and Whole Sales industry, posted revenues of $3.87 billion for the quarter ended September 2022, missing the Zacks Consensus Estimate by 2.63%. This compares to year-ago revenues of $2.41 billion. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Asbury Automotive shares have lost about 10.5% since the beginning of the year versus the S&P 500's decline of -19.6%.
What's Next for Asbury Automotive?
While Asbury Automotive has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Asbury Automotive: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $8.47 on $3.96 billion in revenues for the coming quarter and $37.54 on $15.8 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Automotive - Retail and Whole Sales is currently in the top 33% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Denny's (DENN), another stock in the broader Zacks Retail-Wholesale sector, has yet to report results for the quarter ended September 2022. The results are expected to be released on November 1.
This restaurant operator is expected to post quarterly earnings of $0.14 per share in its upcoming report, which represents a year-over-year change of -12.5%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Denny's' revenues are expected to be $114.01 million, up 9.9% from the year-ago quarter.
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>>Yes, I Want to Help Protect My Portfolio During the Recession
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Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report
Denny's Corporation (DENN): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Denny's (DENN), another stock in the broader Zacks Retail-Wholesale sector, has yet to report results for the quarter ended September 2022. Denny's' revenues are expected to be $114.01 million, up 9.9% from the year-ago quarter. Denny's Corporation (DENN): Free Stock Analysis Report
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Denny's (DENN), another stock in the broader Zacks Retail-Wholesale sector, has yet to report results for the quarter ended September 2022. Denny's' revenues are expected to be $114.01 million, up 9.9% from the year-ago quarter. Denny's Corporation (DENN): Free Stock Analysis Report
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Denny's (DENN), another stock in the broader Zacks Retail-Wholesale sector, has yet to report results for the quarter ended September 2022. Denny's' revenues are expected to be $114.01 million, up 9.9% from the year-ago quarter. Denny's Corporation (DENN): Free Stock Analysis Report
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Denny's (DENN), another stock in the broader Zacks Retail-Wholesale sector, has yet to report results for the quarter ended September 2022. Denny's' revenues are expected to be $114.01 million, up 9.9% from the year-ago quarter. Denny's Corporation (DENN): Free Stock Analysis Report
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277ac656-44ef-4d04-a016-0c6c8e64c1dd
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727274.0
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2022-09-09 00:00:00 UTC
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With 80% ownership, Denny's Corporation (NASDAQ:DENN) boasts of strong institutional backing
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DENN
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https://www.nasdaq.com/articles/with-80-ownership-dennys-corporation-nasdaq%3Adenn-boasts-of-strong-institutional-backing
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If you want to know who really controls Denny's Corporation (NASDAQ:DENN), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 80% to be precise, is institutions. Put another way, the group faces the maximum upside potential (or downside risk).
Since institutional have access to huge amounts of capital, their market moves tend to receive a lot of scrutiny by retail or individual investors. Therefore, a good portion of institutional money invested in the company is usually a huge vote of confidence on its future.
In the chart below, we zoom in on the different ownership groups of Denny's.
NasdaqCM:DENN Ownership Breakdown September 9th 2022
What Does The Institutional Ownership Te
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If you want to know who really controls Denny's Corporation (NASDAQ:DENN), then you'll have to look at the makeup of its share registry. In the chart below, we zoom in on the different ownership groups of Denny's. NasdaqCM:DENN Ownership Breakdown September 9th 2022 What Does The Institutional Ownership Te
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If you want to know who really controls Denny's Corporation (NASDAQ:DENN), then you'll have to look at the makeup of its share registry. In the chart below, we zoom in on the different ownership groups of Denny's. NasdaqCM:DENN Ownership Breakdown September 9th 2022 What Does The Institutional Ownership Te
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NasdaqCM:DENN Ownership Breakdown September 9th 2022 What Does The Institutional Ownership Te If you want to know who really controls Denny's Corporation (NASDAQ:DENN), then you'll have to look at the makeup of its share registry. In the chart below, we zoom in on the different ownership groups of Denny's.
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In the chart below, we zoom in on the different ownership groups of Denny's. If you want to know who really controls Denny's Corporation (NASDAQ:DENN), then you'll have to look at the makeup of its share registry. NasdaqCM:DENN Ownership Breakdown September 9th 2022 What Does The Institutional Ownership Te
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1758aa77-928e-4d16-bd49-b82797870532
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727275.0
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2022-08-25 00:00:00 UTC
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See How Denny's Corp Ranks Among Analysts' Top Picks With Strong Buyback Activity
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DENN
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https://www.nasdaq.com/articles/see-how-dennys-corp-ranks-among-analysts-top-picks-with-strong-buyback-activity
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A study of analyst recommendations at the major brokerages shows that Denny's Corp (Symbol: DENN) is the #80 broker analyst pick among those stocks screened by The Online Investor for strong stock buyback activity. To make that list, a stock must have repurchased at least 5% of its outstanding shares over the trailing twelve month period. In forming the rank, the analyst opinions from the major brokerage houses were tallied, and averaged; then, the list of stocks with strong buyback activity was ranked according to those averages.
DENN operates in the Hotels, Lodging, Restaurants & Travel sector, among companies like McDonald's Corp (MCD) which is up about 0.1% today, and Starbucks Corp. (SBUX) trading up by about 1.1%. Below is a three month price history chart comparing the stock performance of DENN, versus MCD and SBUX.
DENN is currently trading up about 0.1% midday Thursday.
Top Analyst Picks With Strong Stock Buyback Activity »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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DENN operates in the Hotels, Lodging, Restaurants & Travel sector, among companies like McDonald's Corp (MCD) which is up about 0.1% today, and Starbucks Corp. (SBUX) trading up by about 1.1%. Below is a three month price history chart comparing the stock performance of DENN, versus MCD and SBUX. A study of analyst recommendations at the major brokerages shows that Denny's Corp (Symbol: DENN) is the #80 broker analyst pick among those stocks screened by The Online Investor for strong stock buyback activity.
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A study of analyst recommendations at the major brokerages shows that Denny's Corp (Symbol: DENN) is the #80 broker analyst pick among those stocks screened by The Online Investor for strong stock buyback activity. DENN operates in the Hotels, Lodging, Restaurants & Travel sector, among companies like McDonald's Corp (MCD) which is up about 0.1% today, and Starbucks Corp. (SBUX) trading up by about 1.1%. Below is a three month price history chart comparing the stock performance of DENN, versus MCD and SBUX.
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A study of analyst recommendations at the major brokerages shows that Denny's Corp (Symbol: DENN) is the #80 broker analyst pick among those stocks screened by The Online Investor for strong stock buyback activity. DENN operates in the Hotels, Lodging, Restaurants & Travel sector, among companies like McDonald's Corp (MCD) which is up about 0.1% today, and Starbucks Corp. (SBUX) trading up by about 1.1%. Below is a three month price history chart comparing the stock performance of DENN, versus MCD and SBUX.
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A study of analyst recommendations at the major brokerages shows that Denny's Corp (Symbol: DENN) is the #80 broker analyst pick among those stocks screened by The Online Investor for strong stock buyback activity. DENN operates in the Hotels, Lodging, Restaurants & Travel sector, among companies like McDonald's Corp (MCD) which is up about 0.1% today, and Starbucks Corp. (SBUX) trading up by about 1.1%. Below is a three month price history chart comparing the stock performance of DENN, versus MCD and SBUX.
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0fe50cea-89ca-43fd-b596-94d39c175fdc
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727276.0
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2022-08-04 00:00:00 UTC
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Selling US$581k worth of Denny's Corporation (NASDAQ:DENN) stock at high prices would have gotten insiders a handsome reward
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DENN
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https://www.nasdaq.com/articles/selling-us%24581k-worth-of-dennys-corporation-nasdaq%3Adenn-stock-at-high-prices-would-have
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Denny's Corporation's (NASDAQ:DENN) stock rose 10% last week, but insiders who sold US$581k worth of stock over the last year are probably in a more advantageous position. Selling at an average price of US$16.21, which is higher than the current price, may have been the best move for these insiders because their investment would have been worth less now than when they sold.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Denny's Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the Director, F. Wolfinger, for US$326k worth of shares, at about US$16.39 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (US$10.11). So it may not tell us anything about how insiders feel about the current share price.
In the last year Denny's insiders didn't buy any company stock. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
NasdaqCM:DENN Insider Trading Volume August 4th 2022
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
Insider Ownership Of Denny's
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Insiders own 4.2% of Denny's shares, worth about US$26m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The Denny's Insider Transactions Indicate?
There haven't been any insider transactions in the last three months -- that doesn't mean much. Still, the insider transactions at Denny's in the last 12 months are not very heartening. But we do like the fact that insiders own a fair chunk of the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For instance, we've identified 4 warning signs for Denny's (1 is concerning) you should be aware of.
Of course Denny's may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Denny's Corporation's (NASDAQ:DENN) stock rose 10% last week, but insiders who sold US$581k worth of stock over the last year are probably in a more advantageous position. Denny's Insider Transactions Over The Last Year Over the last year, we can see that the biggest insider sale was by the Director, F. Wolfinger, for US$326k worth of shares, at about US$16.39 per share. In the last year Denny's insiders didn't buy any company stock.
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Denny's Corporation's (NASDAQ:DENN) stock rose 10% last week, but insiders who sold US$581k worth of stock over the last year are probably in a more advantageous position. In the last year Denny's insiders didn't buy any company stock. Denny's Insider Transactions Over The Last Year Over the last year, we can see that the biggest insider sale was by the Director, F. Wolfinger, for US$326k worth of shares, at about US$16.39 per share.
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Denny's Insider Transactions Over The Last Year Over the last year, we can see that the biggest insider sale was by the Director, F. Wolfinger, for US$326k worth of shares, at about US$16.39 per share. NasdaqCM:DENN Insider Trading Volume August 4th 2022 If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. Denny's Corporation's (NASDAQ:DENN) stock rose 10% last week, but insiders who sold US$581k worth of stock over the last year are probably in a more advantageous position.
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In the last year Denny's insiders didn't buy any company stock. So What Do The Denny's Insider Transactions Indicate? Of course Denny's may not be the best stock to buy.
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31604623-c877-4b17-bdc9-0056602700f1
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727277.0
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2022-08-02 00:00:00 UTC
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Denny's (DENN) Q2 Earnings Miss Estimates
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DENN
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https://www.nasdaq.com/articles/dennys-denn-q2-earnings-miss-estimates
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nan
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nan
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Denny's (DENN) came out with quarterly earnings of $0.11 per share, missing the Zacks Consensus Estimate of $0.14 per share. This compares to earnings of $0.18 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -21.43%. A quarter ago, it was expected that this restaurant operator would post earnings of $0.13 per share when it actually produced earnings of $0.11, delivering a surprise of -15.38%.
Over the last four quarters, the company has not been able to surpass consensus EPS estimates.
Denny's, which belongs to the Zacks Retail - Restaurants industry, posted revenues of $115.02 million for the quarter ended June 2022, surpassing the Zacks Consensus Estimate by 3.91%. This compares to year-ago revenues of $106.17 million. The company has topped consensus revenue estimates two times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Denny's shares have lost about 41.6% since the beginning of the year versus the S&P 500's decline of -13.6%.
What's Next for Denny's?
While Denny's has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Denny's: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.17 on $110.71 million in revenues for the coming quarter and $0.60 on $438.69 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Retail - Restaurants is currently in the bottom 24% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
The ONE Group Hospitality, Inc. (STKS), another stock in the same industry, has yet to report results for the quarter ended June 2022. The results are expected to be released on August 4.
This company is expected to post quarterly earnings of $0.16 per share in its upcoming report, which represents a year-over-year change of -15.8%. The consensus EPS estimate for the quarter has been revised 2% lower over the last 30 days to the current level.
The ONE Group Hospitality, Inc.'s revenues are expected to be $77.46 million, up 9.5% from the year-ago quarter.
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Denny's Corporation (DENN): Free Stock Analysis Report
The ONE Group Hospitality, Inc. (STKS): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Denny's (DENN) came out with quarterly earnings of $0.11 per share, missing the Zacks Consensus Estimate of $0.14 per share. Denny's, which belongs to the Zacks Retail - Restaurants industry, posted revenues of $115.02 million for the quarter ended June 2022, surpassing the Zacks Consensus Estimate by 3.91%. Denny's shares have lost about 41.6% since the beginning of the year versus the S&P 500's decline of -13.6%.
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Denny's, which belongs to the Zacks Retail - Restaurants industry, posted revenues of $115.02 million for the quarter ended June 2022, surpassing the Zacks Consensus Estimate by 3.91%. Denny's (DENN) came out with quarterly earnings of $0.11 per share, missing the Zacks Consensus Estimate of $0.14 per share. Denny's shares have lost about 41.6% since the beginning of the year versus the S&P 500's decline of -13.6%.
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Denny's (DENN) came out with quarterly earnings of $0.11 per share, missing the Zacks Consensus Estimate of $0.14 per share. Denny's, which belongs to the Zacks Retail - Restaurants industry, posted revenues of $115.02 million for the quarter ended June 2022, surpassing the Zacks Consensus Estimate by 3.91%. Denny's shares have lost about 41.6% since the beginning of the year versus the S&P 500's decline of -13.6%.
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Denny's (DENN) came out with quarterly earnings of $0.11 per share, missing the Zacks Consensus Estimate of $0.14 per share. Denny's, which belongs to the Zacks Retail - Restaurants industry, posted revenues of $115.02 million for the quarter ended June 2022, surpassing the Zacks Consensus Estimate by 3.91%. Denny's shares have lost about 41.6% since the beginning of the year versus the S&P 500's decline of -13.6%.
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083be9b9-bf6d-48c1-abb0-2bb9af3f1859
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727278.0
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2022-07-28 00:00:00 UTC
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Denny's (DENN) Stock Jumps 6.6%: Will It Continue to Soar?
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DENN
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https://www.nasdaq.com/articles/dennys-denn-stock-jumps-6.6%3A-will-it-continue-to-soar
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nan
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nan
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Denny's DENN shares soared 6.6% in the last trading session to close at $9.15. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 3.5% loss over the past four weeks.
Denny's rally is largely driven by optimism regarding the company’s improvement in sales trends backed by its off-premise business, improving transaction counts and effective pricing strategies. Also, emphasis on strategic initiatives such as the roll out of new kitchen equipment and beta testing of new cloud-based restaurant technology platform bodes well for the company.
This restaurant operator is expected to post quarterly earnings of $0.14 per share in its upcoming report, which represents a year-over-year change of -22.2%. Revenues are expected to be $110.69 million, up 4.3% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Denny's, the consensus EPS estimate for the quarter has been revised 1.2% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on DENN going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Denny's is part of the Zacks Retail - Restaurants industry. Wendy's (WEN), another stock in the same industry, closed the last trading session 0.6% higher at $20.64. WEN has returned 9.6% in the past month.
For Wendy's, the consensus EPS estimate for the upcoming report has changed -2% over the past month to $0.22. This represents a change of -18.5% from what the company reported a year ago. Wendy's currently has a Zacks Rank of #3 (Hold).
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Denny's Corporation (DENN): Free Stock Analysis Report
The Wendy's Company (WEN): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Denny's DENN shares soared 6.6% in the last trading session to close at $9.15. Denny's rally is largely driven by optimism regarding the company’s improvement in sales trends backed by its off-premise business, improving transaction counts and effective pricing strategies. For Denny's, the consensus EPS estimate for the quarter has been revised 1.2% lower over the last 30 days to the current level.
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Denny's Corporation (DENN): Free Stock Analysis Report Denny's DENN shares soared 6.6% in the last trading session to close at $9.15. Denny's rally is largely driven by optimism regarding the company’s improvement in sales trends backed by its off-premise business, improving transaction counts and effective pricing strategies.
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You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Denny's is part of the Zacks Retail - Restaurants industry. Denny's DENN shares soared 6.6% in the last trading session to close at $9.15. Denny's rally is largely driven by optimism regarding the company’s improvement in sales trends backed by its off-premise business, improving transaction counts and effective pricing strategies.
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Denny's DENN shares soared 6.6% in the last trading session to close at $9.15. Denny's rally is largely driven by optimism regarding the company’s improvement in sales trends backed by its off-premise business, improving transaction counts and effective pricing strategies. For Denny's, the consensus EPS estimate for the quarter has been revised 1.2% lower over the last 30 days to the current level.
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2c4b895b-dee8-4ecf-b128-2ff5ef4702f3
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727279.0
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2022-07-11 00:00:00 UTC
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Are Options Traders Betting on a Big Move in Denny's Corp (DENN) Stock?
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DENN
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https://www.nasdaq.com/articles/are-options-traders-betting-on-a-big-move-in-dennys-corp-denn-stock
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nan
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Investors in Denny's Corporation DENN need to pay close attention to the stock based on moves in the options market lately. That is because the Jan 20, 2023 $7.50 Call had some of the highest implied volatility of all equity options today.
What is Implied Volatility?
Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
What do the Analysts Think?
Clearly, options traders are pricing in a big move for Denny's Corp shares, but what is the fundamental picture for the company? Currently, Denny's Corp is a Zacks Rank #4 (Sell) in the Retail - Restaurants industry that ranks in the Bottom 22% of our Zacks Industry Rank. Over the last 60 days, no analysts have increased their earnings estimates for the current quarter, while one analyst has revised the estimate downward. The net effect has taken our Zacks Consensus Estimate for the current quarter from 15 cents per share to 14 cents in that period.
Given the way analysts feel about Denny's Corp right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.
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Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Denny's Corporation (DENN): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Investors in Denny's Corporation DENN need to pay close attention to the stock based on moves in the options market lately. Clearly, options traders are pricing in a big move for Denny's Corp shares, but what is the fundamental picture for the company? Currently, Denny's Corp is a Zacks Rank #4 (Sell) in the Retail - Restaurants industry that ranks in the Bottom 22% of our Zacks Industry Rank.
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Currently, Denny's Corp is a Zacks Rank #4 (Sell) in the Retail - Restaurants industry that ranks in the Bottom 22% of our Zacks Industry Rank. Denny's Corporation (DENN): Free Stock Analysis Report Investors in Denny's Corporation DENN need to pay close attention to the stock based on moves in the options market lately.
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Given the way analysts feel about Denny's Corp right now, this huge implied volatility could mean there’s a trade developing. Investors in Denny's Corporation DENN need to pay close attention to the stock based on moves in the options market lately. Clearly, options traders are pricing in a big move for Denny's Corp shares, but what is the fundamental picture for the company?
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Given the way analysts feel about Denny's Corp right now, this huge implied volatility could mean there’s a trade developing. Investors in Denny's Corporation DENN need to pay close attention to the stock based on moves in the options market lately. Clearly, options traders are pricing in a big move for Denny's Corp shares, but what is the fundamental picture for the company?
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9545522a-a4dd-4be7-ac0b-e3ac7cd7777d
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727280.0
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2022-03-07 00:00:00 UTC
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Rendering a Verdict on Beyond Meat Stock
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DENN
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https://www.nasdaq.com/articles/rendering-a-verdict-on-beyond-meat-stock
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Editor’s Note: This article was updated on March 7, 2022, to correct the company name.
I’ve always had mixed views on Beyond Meat (NASDAQ:BYND) stock. There’s certainly a great deal to like about Beyond Meat. For example, its burgers are quite tasty, and its brand name has become fairly powerful.
Source: Sundry Photography / Shutterstock.com
But there’s also a great deal not to like about the company and BYND stock, including the company’s products aside from burgers (I don’t care for them very much), its revenue decline last quarter, and its lack of profits.
In the paragraphs below, I’ll discuss the company’s strengths and weaknesses, then render a verdict on BYND stock.
Beyond Meat’s Strengths
As I suggested in my introduction, I enjoy the company’s burger. I believe that they’re tasty, and I like the idea that they make it easier to feed the world’s ever-growing population. (Cows need a tremendous amount of grass to eat, while only a small amount of pea protein is needed to make Beyond Burgers.).
And more than one stock-picking expert has suggested that buying the shares of companies whose products you use is a good strategy. (That strategy has had mixed results for me, however.)
I’ll also admit that, as someone who is close to my dog and cat, thinking about eating other mammals make me, at times, less than thrilled. I have no doubt that many others have similar feelings.
7 Funds to Buy to Sidestep the Stock Market Volatility
Moreover, Beyond Meat has had significant success penetrating some restaurant chains; for example, I enjoy eating them at my local Denny’s (NASDAQ:DENN) restaurant and at Boomer Jack’s, a bar/restaurant chain.
Meanwhile in January, McDonald’s (NYSE:MCD) decided to offer the McPlant burger, which it developed in tandem with Beyond Meat, in another 600 of its restaurants. Not to be left behind, Yum Brands’ (NYSE:YUM) Kentucky Fried Chicken last month started selling Beyond Meat fried chicken at all of its U.S. restaurants.
Additionally, as I indicated earlier, I believe that the company has built up a fairly big brand-name advantage over its rivals, with the exception of Impossible Foods, which makes the Impossible Burger.
On Jan. 31, Barclays raised its rating on BYND stock by two levels, saying that the shares are undervalued.
Beyond Meat’s Weaknesses
As I indicated above, I’m not a big fan of Beyond’s products other than their burgers; specifically, I’ve been underwhelmed by its sausage and ground beef plant-based offerings.
Further, as I’ve written previously, the company’s burgers are not very healthy, so I’ve always felt that it could lose a great deal of market share if a competitor developed a burger that was just as tasty but healthier.
Although Beyond Meat’s brand is strong, the company does have many other competitors, including Impossible Foods and Whole Foods’ offerings.
And as many others have pointed out, Beyond Meat is still not profitable. For the fourth quarter, for example, its EBITDA loss, excluding certain items, came in at nearly $63 million. Additionally, its U.S. retail segment revenue, (i.e., its sales to supermarkets and other chains), tumbled nearly 20% year-over-year to $50 million.
Is the Glass Half Full for BYND Stock?
On the other hand, its revenue from the U.S. foodservice segment. (i.e., its revenue from restaurants and their suppliers) surged nearly 35% YOY. And its revenue for all of 2021 came in at $464.7 million, versus $406.8 million in 2020 and $298 million in 2019.
On its Q4earnings conference call CEO Ethan Brown said that as the pandemic eases, the company’s revenue growth should accelerate because their customers and consumers will become less impacted by the coronavirus and the firm’s international growth will accelerate.
As far as profitability, Brown said in a statement, “Though we will continue to invest during 2022, we expect to substantially moderate the growth of our operating expenses as we leverage the building blocks we now have in place.”
On the conference call, the CEO added that “We set up some really fantastic opportunities for us to execute against in the next 12 to 18 months, and we’re moving into that phase now.”
The Bottom Line on BYND Stock
Beyond Meat and BYND stock have real potential. If the company’s growth does accelerate and its bottom line improves going forward, the shares will almost definitely rebound. And that scenario could very well unfold as Beyond cuts its costs, grows overseas, and overcomes demand and supply problems caused by Covid-19. Of course, I believe that improvements in its products other than burgers would also be helpful.
The shares used to have a high valuation, but now they’re changing hands at a reasonable 3.9 times analysts’ average 2023 estimates, based on data from Yahoo Finance.
But for now, given Beyond’s Q4 revenue decline, its lack of profitability, and its risks, I view BYND stock as a “show-me” name. If the company shows signs of starting to meet its goals, however, and its valuation does not get too high, its shares could be worth a nibble down the road.
On the date of publication, Larry Ramer did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
The post Rendering a Verdict on Beyond Meat Stock appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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7 Funds to Buy to Sidestep the Stock Market Volatility Moreover, Beyond Meat has had significant success penetrating some restaurant chains; for example, I enjoy eating them at my local Denny’s (NASDAQ:DENN) restaurant and at Boomer Jack’s, a bar/restaurant chain. Beyond Meat’s Weaknesses As I indicated above, I’m not a big fan of Beyond’s products other than their burgers; specifically, I’ve been underwhelmed by its sausage and ground beef plant-based offerings. As far as profitability, Brown said in a statement, “Though we will continue to invest during 2022, we expect to substantially moderate the growth of our operating expenses as we leverage the building blocks we now have in place.” On the conference call, the CEO added that “We set up some really fantastic opportunities for us to execute against in the next 12 to 18 months, and we’re moving into that phase now.” The Bottom Line on BYND Stock Beyond Meat and BYND stock have real potential.
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7 Funds to Buy to Sidestep the Stock Market Volatility Moreover, Beyond Meat has had significant success penetrating some restaurant chains; for example, I enjoy eating them at my local Denny’s (NASDAQ:DENN) restaurant and at Boomer Jack’s, a bar/restaurant chain. Not to be left behind, Yum Brands’ (NYSE:YUM) Kentucky Fried Chicken last month started selling Beyond Meat fried chicken at all of its U.S. restaurants. Although Beyond Meat’s brand is strong, the company does have many other competitors, including Impossible Foods and Whole Foods’ offerings.
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7 Funds to Buy to Sidestep the Stock Market Volatility Moreover, Beyond Meat has had significant success penetrating some restaurant chains; for example, I enjoy eating them at my local Denny’s (NASDAQ:DENN) restaurant and at Boomer Jack’s, a bar/restaurant chain. Source: Sundry Photography / Shutterstock.com But there’s also a great deal not to like about the company and BYND stock, including the company’s products aside from burgers (I don’t care for them very much), its revenue decline last quarter, and its lack of profits. Further, as I’ve written previously, the company’s burgers are not very healthy, so I’ve always felt that it could lose a great deal of market share if a competitor developed a burger that was just as tasty but healthier.
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7 Funds to Buy to Sidestep the Stock Market Volatility Moreover, Beyond Meat has had significant success penetrating some restaurant chains; for example, I enjoy eating them at my local Denny’s (NASDAQ:DENN) restaurant and at Boomer Jack’s, a bar/restaurant chain. I’ve always had mixed views on Beyond Meat (NASDAQ:BYND) stock. For example, its burgers are quite tasty, and its brand name has become fairly powerful.
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0d27c8b6-faf9-4b6d-b12b-3af5d7e26406
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727281.0
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2022-02-15 00:00:00 UTC
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Denny's (DENN) Q4 Earnings and Revenues Miss Estimates
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DENN
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https://www.nasdaq.com/articles/dennys-denn-q4-earnings-and-revenues-miss-estimates
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nan
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nan
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Denny's (DENN) came out with quarterly earnings of $0.16 per share, missing the Zacks Consensus Estimate of $0.17 per share. This compares to loss of $0.05 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -5.88%. A quarter ago, it was expected that this restaurant operator would post earnings of $0.16 per share when it actually produced earnings of $0.16, delivering no surprise.
Over the last four quarters, the company has surpassed consensus EPS estimates just once.
Denny's, which belongs to the Zacks Retail - Restaurants industry, posted revenues of $107.64 million for the quarter ended December 2021, missing the Zacks Consensus Estimate by 2.92%. This compares to year-ago revenues of $80.11 million. The company has topped consensus revenue estimates two times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Denny's shares have added about 2.9% since the beginning of the year versus the S&P 500's decline of -7.7%.
What's Next for Denny's?
While Denny's has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Denny's: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.15 on $107.94 million in revenues for the coming quarter and $0.74 on $445.46 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Retail - Restaurants is currently in the bottom 12% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Texas Roadhouse (TXRH), another stock in the same industry, has yet to report results for the quarter ended December 2021. The results are expected to be released on February 22.
This restaurant chain is expected to post quarterly earnings of $0.67 per share in its upcoming report, which represents a year-over-year change of +139.3%. The consensus EPS estimate for the quarter has been revised 5.4% lower over the last 30 days to the current level.
Texas Roadhouse's revenues are expected to be $897.6 million, up 40.7% from the year-ago quarter.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Denny's Corporation (DENN): Free Stock Analysis Report
Texas Roadhouse, Inc. (TXRH): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Denny's (DENN) came out with quarterly earnings of $0.16 per share, missing the Zacks Consensus Estimate of $0.17 per share. Denny's, which belongs to the Zacks Retail - Restaurants industry, posted revenues of $107.64 million for the quarter ended December 2021, missing the Zacks Consensus Estimate by 2.92%. Denny's shares have added about 2.9% since the beginning of the year versus the S&P 500's decline of -7.7%.
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Denny's, which belongs to the Zacks Retail - Restaurants industry, posted revenues of $107.64 million for the quarter ended December 2021, missing the Zacks Consensus Estimate by 2.92%. Denny's (DENN) came out with quarterly earnings of $0.16 per share, missing the Zacks Consensus Estimate of $0.17 per share. Denny's shares have added about 2.9% since the beginning of the year versus the S&P 500's decline of -7.7%.
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Denny's (DENN) came out with quarterly earnings of $0.16 per share, missing the Zacks Consensus Estimate of $0.17 per share. Denny's, which belongs to the Zacks Retail - Restaurants industry, posted revenues of $107.64 million for the quarter ended December 2021, missing the Zacks Consensus Estimate by 2.92%. Denny's shares have added about 2.9% since the beginning of the year versus the S&P 500's decline of -7.7%.
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Denny's (DENN) came out with quarterly earnings of $0.16 per share, missing the Zacks Consensus Estimate of $0.17 per share. Denny's, which belongs to the Zacks Retail - Restaurants industry, posted revenues of $107.64 million for the quarter ended December 2021, missing the Zacks Consensus Estimate by 2.92%. Denny's shares have added about 2.9% since the beginning of the year versus the S&P 500's decline of -7.7%.
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09675dcd-0838-4765-bea2-e4a0c366df09
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727282.0
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2022-02-08 00:00:00 UTC
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Denny's (DENN) Earnings Expected to Grow: What to Know Ahead of Next Week's Release
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DENN
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https://www.nasdaq.com/articles/dennys-denn-earnings-expected-to-grow%3A-what-to-know-ahead-of-next-weeks-release
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nan
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nan
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The market expects Denny's (DENN) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended December 2021. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The earnings report, which is expected to be released on February 15, 2022, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on theearnings callwill mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus Estimate
This restaurant operator is expected to post quarterly earnings of $0.17 per share in its upcoming report, which represents a year-over-year change of +440%.
Revenues are expected to be $110.88 million, up 38.4% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 3.28% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Earnings Whisper
Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Denny's?
For Denny's, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -2.30%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that Denny's will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?
While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Denny's would post earnings of $0.16 per share when it actually produced earnings of $0.16, delivering no surprise.
Over the last four quarters, the company has beaten consensus EPS estimates two times.
Bottom Line
An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Denny's doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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Denny's Corporation (DENN): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The market expects Denny's (DENN) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended December 2021. How Have the Numbers Shaped Up for Denny's? For Denny's, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects.
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The market expects Denny's (DENN) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended December 2021. How Have the Numbers Shaped Up for Denny's? For Denny's, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects.
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For Denny's, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. The market expects Denny's (DENN) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended December 2021. How Have the Numbers Shaped Up for Denny's?
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For the last reported quarter, it was expected that Denny's would post earnings of $0.16 per share when it actually produced earnings of $0.16, delivering no surprise. The market expects Denny's (DENN) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended December 2021. How Have the Numbers Shaped Up for Denny's?
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53f14ec1-8091-49d8-85e7-d8e6448b508f
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727283.0
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2022-02-08 00:00:00 UTC
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DENN Crosses Above Key Moving Average Level
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DENN
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https://www.nasdaq.com/articles/denn-crosses-above-key-moving-average-level
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nan
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nan
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In trading on Tuesday, shares of Denny's Corp (Symbol: DENN) crossed above their 200 day moving average of $15.96, changing hands as high as $16.10 per share. Denny's Corp shares are currently trading up about 1.6% on the day. The chart below shows the one year performance of DENN shares, versus its 200 day moving average:
Looking at the chart above, DENN's low point in its 52 week range is $13.33 per share, with $20.02 as the 52 week high point — that compares with a last trade of $16.02.
Click here to find out which 9 other stocks recently crossed above their 200 day moving average »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Tuesday, shares of Denny's Corp (Symbol: DENN) crossed above their 200 day moving average of $15.96, changing hands as high as $16.10 per share. The chart below shows the one year performance of DENN shares, versus its 200 day moving average: Looking at the chart above, DENN's low point in its 52 week range is $13.33 per share, with $20.02 as the 52 week high point — that compares with a last trade of $16.02. Denny's Corp shares are currently trading up about 1.6% on the day.
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In trading on Tuesday, shares of Denny's Corp (Symbol: DENN) crossed above their 200 day moving average of $15.96, changing hands as high as $16.10 per share. The chart below shows the one year performance of DENN shares, versus its 200 day moving average: Looking at the chart above, DENN's low point in its 52 week range is $13.33 per share, with $20.02 as the 52 week high point — that compares with a last trade of $16.02. Denny's Corp shares are currently trading up about 1.6% on the day.
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In trading on Tuesday, shares of Denny's Corp (Symbol: DENN) crossed above their 200 day moving average of $15.96, changing hands as high as $16.10 per share. The chart below shows the one year performance of DENN shares, versus its 200 day moving average: Looking at the chart above, DENN's low point in its 52 week range is $13.33 per share, with $20.02 as the 52 week high point — that compares with a last trade of $16.02. Denny's Corp shares are currently trading up about 1.6% on the day.
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In trading on Tuesday, shares of Denny's Corp (Symbol: DENN) crossed above their 200 day moving average of $15.96, changing hands as high as $16.10 per share. Denny's Corp shares are currently trading up about 1.6% on the day. The chart below shows the one year performance of DENN shares, versus its 200 day moving average: Looking at the chart above, DENN's low point in its 52 week range is $13.33 per share, with $20.02 as the 52 week high point — that compares with a last trade of $16.02.
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417b5f14-b01a-41b4-b586-5eab4ea74cb0
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727284.0
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2022-02-04 00:00:00 UTC
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4 Coffee Stocks to Buy as Cabin Fever Kicks In and Foot Traffic Picks Up
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DENN
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https://www.nasdaq.com/articles/4-coffee-stocks-to-buy-as-cabin-fever-kicks-in-and-foot-traffic-picks-up
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Back when the coronavirus pandemic first capsized our economy, a combination of fear and lack of consistent, verifiable information had millions of Americans sheltering in place. One of the consequences was a complete (albeit temporary) lockdown of food-and-drinks establishments. Unsurprisingly, government data indicates that retail food sales spiked sharply early in the crisis, boding poorly for investments like coffee stocks.
With collective thoughts of The Andromeda Strain undoubtedly circulating across the country, being out and about with other strangers was not exactly atop the priority list for most folks. However, as acclimatization to the SARS-CoV-2 virus kicked in, so did bouts of cabin fever. Further, when various biotechnology firms began distributing Covid-19 vaccines, patience had worn thin: people wanted to get out, tilting the tide favorably for coffee stocks.
7 Stocks to Buy as the Market Shakes Off Omicron Fears
Better yet, the above narrative is neither conjecture nor an anecdotal observation. According to information from data analytics firm Placer.ai, foot traffic at some of the top coffeehouse chains enjoyed a notable uptick. Indeed, as 2021 drew to a close, November foot traffic saw an 8.4% increase compared to 2019 levels, while December experienced a 7.5% rise, suggesting good things to come for these coffee stocks.
Dutch Bros (NYSE:BROS)
McDonald’s (NYSE:MCD)
Denny’s (NASDAQ:DENN)
Starbucks (NASDAQ:SBUX)
While tech firms have suffered the worst of the volatility in the new year, most sectors have fallen prey to the red ink on Wall Street. Admittedly, coffee stocks are no exception, meaning that investors will still need to exercise caution despite the positive fundamental backdrop.
Coffee Stocks to Buy: Dutch Bros (BROS)
Source: RicoPatagonia / Shutterstock.com
One of the eagerly anticipated initial public offerings of 2021, Dutch Bros is off to a solid start as a recently minted public company. At first, management anticipated a price range of $18 to $20 per share. However, BROS stock debuted at $23, eventually closing its first public session at $36.68. Since then, shares have been on a wildly choppy ride, though they never closed below this maiden milestone.
Moving forward, the company aims to expand its footprint, which is respectable. At the time of its IPO, Dutch Bros had over 420 locations in 11 states. Still, that puts the brand at a competitive disadvantage to its larger rivals. However, former CEO and co-founder Travis Boersma stated that the firm could nearly double its reach, adding as many as 400 new locations over the next three to five years.
Should the expansion happen, it will likely be met with a responsive audience. Unlike some other coffee stocks, Dutch Bros doesn’t take itself too seriously, presenting a fun, politics-free environment. As well, the company offers a variety of beverages that appeal to younger customers, allowing the firm to grow with its core base.
Plus, BROS has performed quite well recently, gaining almost 11% on a year-to-date basis.
McDonald’s (MCD)
Source: 8th.creator / Shutterstock.com
Though mostly known for its hamburgers and especially French fries, McDonald’s is quite the player among coffee stocks. According to a 2018 Inc. article, the Golden Arches sells more than 500 million cups of coffee each year.
Of course, 2020 was likely the straw that broke the camel’s back. Over that particular 365-day period, revenue came in at $19.2 billion, the lowest tally since at least 2007. Even more worrying at the time, sales had been declining in years prior as millennials began gravitating toward healthier fare. However, preliminary results for 2021 indicate that the top line registered as $23.2 billion, a healthy reversal considering the circumstances.
Some of this could be explained from collective claustrophobia getting the best of people. As I mentioned in an interview with CGTN America, consumers are increasingly demanding a return to normal activities. And many are willing to pay a premium, a concept known as retail revenge.
7 REITs With Major Upside Potential in 2022
What’s more, it’s possible that work-from-home experiment might not last indefinitely. Though it features advantages, some of the mechanisms to communicate with others is unideal. Sure, workers might not like the idea of returning to the office but ultimately, the employers sign the checks. That reality just might swing the needle for MCD and similar coffee stocks.
Coffee Stocks to Buy: Denny’s (DENN)
Source: JHVEPhoto / Shutterstock.com
When nothing else is open, chances are, you can always rely on Denny’s for some quick-filling comfort food. In addition, the company is one of the top coffee stocks, though it doesn’t really have that reputation. Still, the numbers don’t lie. Back in 2013, Denny’s press release revealed that it sells nearly 90 million cups of joe each year.
Of course, that narrative changed rudely and dramatically when the Covid-19 pandemic hit. In one fell swoop, Denny’s went from consistently generating over $500 million in revenue to falling below $300 million in 2020. Now, on a trailing 12-month basis since the third quarter of 2021, the company’s top line is at $370.6 million. Still, that’s a far cry from pre-pandemic norms.
Unfortunately, the new normal has imposed a heavier weight on DENN compared to other coffee stocks. Since many locations no longer open for 24 hours, the company is losing a ton of business. Granted, it may not be able to justify the resumption of normal hours due to present circumstances.
However, if the Placer.ai is accurate, we could be looking at normalization eventually. That would bode well for DENN stock, potentially setting up a strong recovery.
Starbucks (SBUX)
Source: monticello / Shutterstock.com
While it’s the most popular name among coffee stocks, I decided to put Starbucks last on this list. The reason? SBUX stock has shown itself to be extremely risky at this time. On a YTD basis, shares are down more than 16%, which is exceptionally steep compared to its peers. Even more troubling, over the last five days, SBUX hasn’t been able to gain even 1% while the others on this list have posted a minimum of 3.5%.
That’s not going to inspire confidence anytime soon. Therefore, I’d like to see if SBUX will correct some more before taking a shot. And I do believe it will correct.
7 Stocks to Buy as the Market Shakes Off Omicron Fears
I’ve got to be blunt: SBUX is printing one ugly chart, not just for coffee stocks but compared to any other investment category. For one thing, the equity unit is conspicuously below both its 50- and 200-day moving averages, common barometers of nearer- and longer-term market health. But most problematic is the pensive trading following this year’s steep drop.
Click to Enlarge
Source: Koyfin
Still, if a massive correction occurs, investors should be ready. With each one of its plants producing 1.5 million pounds of coffee beans per week, Starbucks has the scale to fuel the world’s needs once we get back to a true normal.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare.
The post 4 Coffee Stocks to Buy as Cabin Fever Kicks In and Foot Traffic Picks Up appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Dutch Bros (NYSE:BROS) McDonald’s (NYSE:MCD) Denny’s (NASDAQ:DENN) Starbucks (NASDAQ:SBUX) While tech firms have suffered the worst of the volatility in the new year, most sectors have fallen prey to the red ink on Wall Street. Coffee Stocks to Buy: Denny’s (DENN) Source: JHVEPhoto / Shutterstock.com When nothing else is open, chances are, you can always rely on Denny’s for some quick-filling comfort food. Back in 2013, Denny’s press release revealed that it sells nearly 90 million cups of joe each year.
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Dutch Bros (NYSE:BROS) McDonald’s (NYSE:MCD) Denny’s (NASDAQ:DENN) Starbucks (NASDAQ:SBUX) While tech firms have suffered the worst of the volatility in the new year, most sectors have fallen prey to the red ink on Wall Street. Coffee Stocks to Buy: Denny’s (DENN) Source: JHVEPhoto / Shutterstock.com When nothing else is open, chances are, you can always rely on Denny’s for some quick-filling comfort food. Back in 2013, Denny’s press release revealed that it sells nearly 90 million cups of joe each year.
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Dutch Bros (NYSE:BROS) McDonald’s (NYSE:MCD) Denny’s (NASDAQ:DENN) Starbucks (NASDAQ:SBUX) While tech firms have suffered the worst of the volatility in the new year, most sectors have fallen prey to the red ink on Wall Street. Coffee Stocks to Buy: Denny’s (DENN) Source: JHVEPhoto / Shutterstock.com When nothing else is open, chances are, you can always rely on Denny’s for some quick-filling comfort food. Back in 2013, Denny’s press release revealed that it sells nearly 90 million cups of joe each year.
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Back in 2013, Denny’s press release revealed that it sells nearly 90 million cups of joe each year. Dutch Bros (NYSE:BROS) McDonald’s (NYSE:MCD) Denny’s (NASDAQ:DENN) Starbucks (NASDAQ:SBUX) While tech firms have suffered the worst of the volatility in the new year, most sectors have fallen prey to the red ink on Wall Street. Coffee Stocks to Buy: Denny’s (DENN) Source: JHVEPhoto / Shutterstock.com When nothing else is open, chances are, you can always rely on Denny’s for some quick-filling comfort food.
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95b9609e-20f0-491b-839b-9f19045dc773
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727285.0
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2022-01-20 00:00:00 UTC
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The Returns On Capital At Denny's (NASDAQ:DENN) Don't Inspire Confidence
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DENN
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https://www.nasdaq.com/articles/the-returns-on-capital-at-dennys-nasdaq%3Adenn-dont-inspire-confidence
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nan
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nan
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There are a few key trends to look for if we want to identify the next multi-bagger. Amongst other things, we'll want to see two things; firstly, a growing return on capital employed (ROCE) and secondly, an expansion in the company's amount of capital employed. Basically this means that a company has profitable initiatives that it can continue to reinvest in, which is a trait of a compounding machine. However, after investigating Denny's (NASDAQ:DENN), we don't think it's current trends fit the mold of a multi-bagger.
Understanding Return On Capital Employed (ROCE)
For those that aren't sure what ROCE is, it measures the amount of pre-tax profits a company can generate from the capital employed in its business. The formula for this calculation on Denny's is:
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)
0.12 = US$40m ÷ (US$411m - US$90m) (Based on the trailing twelve months to September 2021).
Therefore, Denny's has an ROCE of 12%. In absolute terms, that's a satisfactory return, but compared to the Hospitality industry average of 9.0% it's much better.
NasdaqCM:DENN Return on Capital Employed January 20th 2022
In the above chart we have measured Denny's' prior ROCE against its prior performance, but the future is arguably more important. If you'd like, you can check out the forecasts from the analysts covering Denny's here for free.
What Can We Tell From Denny's' ROCE Trend?
When we looked at the ROCE trend at Denny's, we didn't gain much confidence. Around five years ago the returns on capital were 32%, but since then they've fallen to 12%. Although, given both revenue and the amount of assets employed in the business have increased, it could suggest the company is investing in growth, and the extra capital has led to a short-term reduction in ROCE. And if the increased capital generates additional returns, the business, and thus shareholders, will benefit in the long run.
In Conclusion...
While returns have fallen for Denny's in recent times, we're encouraged to see that sales are growing and that the business is reinvesting in its operations. These trends are starting to be recognized by investors since the stock has delivered a 24% gain to shareholders who've held over the last five years. So this stock may still be an appealing investment opportunity, if other fundamentals prove to be sound.
One more thing: We've identified 3 warning signs with Denny's (at least 1 which makes us a bit uncomfortable) , and understanding these would certainly be useful.
While Denny's may not currently earn the highest returns, we've compiled a list of companies that currently earn more than 25% return on equity. Check out this free list here.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The formula for this calculation on Denny's is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.12 = US$40m ÷ (US$411m - US$90m) (Based on the trailing twelve months to September 2021). However, after investigating Denny's (NASDAQ:DENN), we don't think it's current trends fit the mold of a multi-bagger. Therefore, Denny's has an ROCE of 12%.
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While Denny's may not currently earn the highest returns, we've compiled a list of companies that currently earn more than 25% return on equity. However, after investigating Denny's (NASDAQ:DENN), we don't think it's current trends fit the mold of a multi-bagger. The formula for this calculation on Denny's is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.12 = US$40m ÷ (US$411m - US$90m) (Based on the trailing twelve months to September 2021).
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NasdaqCM:DENN Return on Capital Employed January 20th 2022 In the above chart we have measured Denny's' prior ROCE against its prior performance, but the future is arguably more important. However, after investigating Denny's (NASDAQ:DENN), we don't think it's current trends fit the mold of a multi-bagger. The formula for this calculation on Denny's is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.12 = US$40m ÷ (US$411m - US$90m) (Based on the trailing twelve months to September 2021).
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What Can We Tell From Denny's' ROCE Trend? However, after investigating Denny's (NASDAQ:DENN), we don't think it's current trends fit the mold of a multi-bagger. The formula for this calculation on Denny's is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.12 = US$40m ÷ (US$411m - US$90m) (Based on the trailing twelve months to September 2021).
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5b173269-295f-44d6-828a-607c98ee55d9
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727286.0
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2022-01-05 00:00:00 UTC
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Beyond Meat’s faux chicken has investors drooling
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DENN
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https://www.nasdaq.com/articles/beyond-meats-faux-chicken-has-investors-drooling
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nan
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nan
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Reuters
Reuters
(The author is a Reuters Breakingviews columnist. The opinions expressed are their own.)
NEW YORK (Reuters Breakingviews) - Beyond Meat has given investors a reason to cheer early in the year. The $4 billion plant-based meat company on Wednesday announced Yum Brands' KFC will offer Beyond Fried Chicken in the United States https://www.prnewswire.com/news-releases/kfc-and-beyond-meat-debut-much-anticipated-beyond-fried-chicken-nationwide-beginning-january-10-301454308.html. The partnership, which follows two years of testing and pandemic-related delays, sent Beyond Meat shares up 5% in early morning trading.
The $200 million added to the company’s market capitalization looks optimistic. A bucket of KFC’s plant-based chicken will start at $7. Assume Beyond Meat earns a dollar of that in revenue and apply the company’s gross profit margin of roughly 30%. KFC would have to sell more than 650 million orders, or about two for each American, for Beyond Meat to earn a gross profit equivalent to the increase in its market value.
However, the deal has other tasty benefits. Adding KFC to existing outlets such as Starbucks and Denny’s increases Beyond Meat’s brand recognition in grocery stores, helping it compete with Impossible Foods https://www.breakingviews.com/considered-view/impossible-foods-may-outdo-beyond-meats-recipe and larger players https://www.breakingviews.com/considered-view/big-meat-will-channel-vw-tesla-in-alt-protein-war like Kellogg’s MorningStar Farms.
Investors will be hungry for more wins. (By Amanda Gomez)
Follow @Breakingviews https://twitter.com/Breakingviews on Twitter
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(Editing by Peter Thal Larsen and Sharon Lam)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Adding KFC to existing outlets such as Starbucks and Denny’s increases Beyond Meat’s brand recognition in grocery stores, helping it compete with Impossible Foods https://www.breakingviews.com/considered-view/impossible-foods-may-outdo-beyond-meats-recipe and larger players https://www.breakingviews.com/considered-view/big-meat-will-channel-vw-tesla-in-alt-protein-war like Kellogg’s MorningStar Farms. The $4 billion plant-based meat company on Wednesday announced Yum Brands' KFC will offer Beyond Fried Chicken in the United States https://www.prnewswire.com/news-releases/kfc-and-beyond-meat-debut-much-anticipated-beyond-fried-chicken-nationwide-beginning-january-10-301454308.html. KFC would have to sell more than 650 million orders, or about two for each American, for Beyond Meat to earn a gross profit equivalent to the increase in its market value.
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Adding KFC to existing outlets such as Starbucks and Denny’s increases Beyond Meat’s brand recognition in grocery stores, helping it compete with Impossible Foods https://www.breakingviews.com/considered-view/impossible-foods-may-outdo-beyond-meats-recipe and larger players https://www.breakingviews.com/considered-view/big-meat-will-channel-vw-tesla-in-alt-protein-war like Kellogg’s MorningStar Farms. The $4 billion plant-based meat company on Wednesday announced Yum Brands' KFC will offer Beyond Fried Chicken in the United States https://www.prnewswire.com/news-releases/kfc-and-beyond-meat-debut-much-anticipated-beyond-fried-chicken-nationwide-beginning-january-10-301454308.html. The $200 million added to the company’s market capitalization looks optimistic.
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Adding KFC to existing outlets such as Starbucks and Denny’s increases Beyond Meat’s brand recognition in grocery stores, helping it compete with Impossible Foods https://www.breakingviews.com/considered-view/impossible-foods-may-outdo-beyond-meats-recipe and larger players https://www.breakingviews.com/considered-view/big-meat-will-channel-vw-tesla-in-alt-protein-war like Kellogg’s MorningStar Farms. The $4 billion plant-based meat company on Wednesday announced Yum Brands' KFC will offer Beyond Fried Chicken in the United States https://www.prnewswire.com/news-releases/kfc-and-beyond-meat-debut-much-anticipated-beyond-fried-chicken-nationwide-beginning-january-10-301454308.html. (By Amanda Gomez) Follow @Breakingviews https://twitter.com/Breakingviews on Twitter Capital Calls - More concise insights on global finance: Beijing misfires opening salvo at algorithms BlackBerry's demise is a warning Delivery Hero speeds up M&A in tricky times Clock is ticking for Hong Kong’s bro boards 3G gets back to basics with $7 bln blinds deal (Editing by Peter Thal Larsen and Sharon Lam) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Adding KFC to existing outlets such as Starbucks and Denny’s increases Beyond Meat’s brand recognition in grocery stores, helping it compete with Impossible Foods https://www.breakingviews.com/considered-view/impossible-foods-may-outdo-beyond-meats-recipe and larger players https://www.breakingviews.com/considered-view/big-meat-will-channel-vw-tesla-in-alt-protein-war like Kellogg’s MorningStar Farms. NEW YORK (Reuters Breakingviews) - Beyond Meat has given investors a reason to cheer early in the year. The $4 billion plant-based meat company on Wednesday announced Yum Brands' KFC will offer Beyond Fried Chicken in the United States https://www.prnewswire.com/news-releases/kfc-and-beyond-meat-debut-much-anticipated-beyond-fried-chicken-nationwide-beginning-january-10-301454308.html.
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eebd7b04-73a7-41fe-94c7-41eeb0da3884
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727287.0
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2021-11-21 00:00:00 UTC
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Is It Too Late To Consider Buying Denny's Corporation (NASDAQ:DENN)?
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DENN
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https://www.nasdaq.com/articles/is-it-too-late-to-consider-buying-dennys-corporation-nasdaq%3Adenn-2021-11-21
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nan
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nan
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Denny's Corporation (NASDAQ:DENN), is not the largest company out there, but it received a lot of attention from a substantial price movement on the NASDAQCM over the last few months, increasing to US$17.15 at one point, and dropping to the lows of US$14.49. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Denny's' current trading price of US$14.49 reflective of the actual value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Denny's’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
What's the opportunity in Denny's?
Good news, investors! Denny's is still a bargain right now. According to my valuation, the intrinsic value for the stock is $22.47, but it is currently trading at US$14.49 on the share market, meaning that there is still an opportunity to buy now. However, given that Denny's’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.
Can we expect growth from Denny's?
NasdaqCM:DENN Earnings and Revenue Growth November 21st 2021
Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. Denny's' earnings over the next few years are expected to increase by 40%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.
What this means for you:
Are you a shareholder? Since DENN is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.
Are you a potential investor? If you’ve been keeping an eye on DENN for a while, now might be the time to make a leap. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy DENN. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed buy.
If you want to dive deeper into Denny's, you'd also look into what risks it is currently facing. For instance, we've identified 3 warning signs for Denny's (1 is a bit unpleasant) you should be familiar with.
If you are no longer interested in Denny's, you can use our free platform to see our list of over 50 other stocks with a high growth potential.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Denny's Corporation (NASDAQ:DENN), is not the largest company out there, but it received a lot of attention from a substantial price movement on the NASDAQCM over the last few months, increasing to US$17.15 at one point, and dropping to the lows of US$14.49. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy DENN. A question to answer is whether Denny's' current trading price of US$14.49 reflective of the actual value of the small-cap?
|
Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy DENN. Denny's Corporation (NASDAQ:DENN), is not the largest company out there, but it received a lot of attention from a substantial price movement on the NASDAQCM over the last few months, increasing to US$17.15 at one point, and dropping to the lows of US$14.49. A question to answer is whether Denny's' current trading price of US$14.49 reflective of the actual value of the small-cap?
|
However, given that Denny's’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy DENN. Denny's Corporation (NASDAQ:DENN), is not the largest company out there, but it received a lot of attention from a substantial price movement on the NASDAQCM over the last few months, increasing to US$17.15 at one point, and dropping to the lows of US$14.49.
|
Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy DENN. Denny's Corporation (NASDAQ:DENN), is not the largest company out there, but it received a lot of attention from a substantial price movement on the NASDAQCM over the last few months, increasing to US$17.15 at one point, and dropping to the lows of US$14.49. A question to answer is whether Denny's' current trading price of US$14.49 reflective of the actual value of the small-cap?
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f21747dd-a5f6-4c25-830e-2aa7d54c7da2
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727288.0
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2021-11-05 00:00:00 UTC
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Denny's Breaks Above 200-Day Moving Average - Bullish for DENN
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DENN
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https://www.nasdaq.com/articles/dennys-breaks-above-200-day-moving-average-bullish-for-denn-2021-11-05
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nan
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nan
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In trading on Friday, shares of Denny's Corp (Symbol: DENN) crossed above their 200 day moving average of $16.70, changing hands as high as $17.40 per share. Denny's Corp shares are currently trading up about 4.1% on the day. The chart below shows the one year performance of DENN shares, versus its 200 day moving average:
Looking at the chart above, DENN's low point in its 52 week range is $8.9515 per share, with $20.02 as the 52 week high point — that compares with a last trade of $16.79.
Free Report: Top 7%+ Dividends (paid monthly)
Click here to find out which 9 other stocks recently crossed above their 200 day moving average »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Friday, shares of Denny's Corp (Symbol: DENN) crossed above their 200 day moving average of $16.70, changing hands as high as $17.40 per share. The chart below shows the one year performance of DENN shares, versus its 200 day moving average: Looking at the chart above, DENN's low point in its 52 week range is $8.9515 per share, with $20.02 as the 52 week high point — that compares with a last trade of $16.79. Denny's Corp shares are currently trading up about 4.1% on the day.
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In trading on Friday, shares of Denny's Corp (Symbol: DENN) crossed above their 200 day moving average of $16.70, changing hands as high as $17.40 per share. The chart below shows the one year performance of DENN shares, versus its 200 day moving average: Looking at the chart above, DENN's low point in its 52 week range is $8.9515 per share, with $20.02 as the 52 week high point — that compares with a last trade of $16.79. Denny's Corp shares are currently trading up about 4.1% on the day.
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In trading on Friday, shares of Denny's Corp (Symbol: DENN) crossed above their 200 day moving average of $16.70, changing hands as high as $17.40 per share. The chart below shows the one year performance of DENN shares, versus its 200 day moving average: Looking at the chart above, DENN's low point in its 52 week range is $8.9515 per share, with $20.02 as the 52 week high point — that compares with a last trade of $16.79. Denny's Corp shares are currently trading up about 4.1% on the day.
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In trading on Friday, shares of Denny's Corp (Symbol: DENN) crossed above their 200 day moving average of $16.70, changing hands as high as $17.40 per share. Denny's Corp shares are currently trading up about 4.1% on the day. The chart below shows the one year performance of DENN shares, versus its 200 day moving average: Looking at the chart above, DENN's low point in its 52 week range is $8.9515 per share, with $20.02 as the 52 week high point — that compares with a last trade of $16.79.
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7885aa95-f939-4ab6-ad53-6c60e1193b39
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727289.0
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2021-11-03 00:00:00 UTC
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Denny's Corp (DENN) Q3 2021 Earnings Call Transcript
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DENN
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https://www.nasdaq.com/articles/dennys-corp-denn-q3-2021-earnings-call-transcript-2021-11-03
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nan
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nan
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Image source: The Motley Fool.
Denny's Corp (NASDAQ: DENN)
Q3 2021 Earnings Call
Nov 2, 2021, 4:30 p.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Good day, ladies and gentlemen. Welcome to the Denny's Corporation Q3 2021 Earnings Call.
At this time, I'd like to turn the conference over to Curt Nichols, Vice President of Investor Relations and Financial Planning and Analysis. Please go ahead.
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Curt Nichols -- Senior Director of Investor Relations and Financial Analysis
Thank you, Steve, and good afternoon, everyone. We appreciate you joining us today for Denny's Third Quarter 2021 Earnings Conference Call. With me from management are John Miller, Denny's Chief Executive Officer; Mark Wolfinger, Denny's President; and Robert Verostek, Denny's Executive Vice President and Chief Financial Officer. Please refer to our website at investor.dennys.com to find our third quarter earnings press release, along with the reconciliation of any non-GAAP financial measures that are mentioned on the call today.
This call is being webcast, and an archive of the webcast will be available on our website later today. John will begin today's call with a business update. Mark will then provide some comments around restaurant capacities, our franchisees and development. Then, Robert will provide a recap of our third quarter financial results and current trends. After that, we will open it up for questions. Before we begin today, let me remind you that in accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, the company notes that certain matters to be discussed by members of management during this call may constitute forward-looking statements. Management urges caution in considering its current trends and any outlook on earnings provided during this call.
Such statements are subject to risks, uncertainties and other factors that may cause the actual performance of Denny's to be materially different from the performance indicated or implied by such statements. Such risks and factors are set forth in the company's most recent annual report on Form 10-K for the year ended December 30, 2020, and in any subsequent forms 8-K and quarterly reports on Form 10-Q. With that,
I will now turn the call over to John Miller, Denny's Chief Executive Officer.
John C. Miller -- Chief Executive Officer
Thank you, Curt, and good afternoon, everyone. Our third quarter domestic systemwide same-store sales started out very strong as consumer confidence was on the rise and families were enjoying summer vacations, some for the first time in two years. However, average daily COVID-19 case counts across the country accelerated throughout the quarter and case counts remained elevated with average daily cases at their highest level since January. The result was pressure on consumer confidence as well as dine-in transactions throughout the industry in August and September.
Thankfully, the improvement in case counts in October yielded a return in dine-in transactions to their highest level since the pandemic began with same-store sales once again surpassing the 2019 levels. Furthermore, approximately half of the domestic system generated positive sales in the month of October, approximately half of the domestic system generated positive sales in the month of October and each of our top four states were positive as well. And I am even more encouraged by the stickiness of our Denny's based brand off-premise business, which has remained strong at approximately 20% of sales compared to its pre-pandemic trend of 12%. Additionally, during the third quarter, we substantially completed the rollout of our second virtual brand, The Meltdown to approximately half of our domestic system.
Virtual brand sales for both The Burger Den and The Meltdown remain highly incremental at approximately 3% of sales. These brands provide opportunities not only at dinner and late-night to leverage underutilized labor, but we continue to see a meaningful number of transactions during the week versus the weekend. Our teams have accomplished this while navigating persistent industrywide staffing challenges that have impacted our ability to execute at our highest potential. Despite the expiration of enhanced unemployment benefits, personal saving rates remain above pre-pandemic levels.
Therefore, we have not experienced a significant increase in staffing levels, which impacts our effective operating hours. We still view this as a near-term challenge that we are combating with extensive hiring efforts. However, we expect it will take a few more quarters to return to pre-pandemic static levels and effective operating hours. I will now touch briefly on our four key guest-centric themes and some of the new and exciting investments we are making in these areas. The first area's focus is reassurance. We do remain committed to reassuring our guests that Denny's provides a safe dining experience by consistently executing our enhanced cleanliness and sanitation procedures at all customer touch points. Our second area of focus is value.
We understand that value comes in different forms and has a different meaning for each type of guest. We consider our value approach to be a comprehensive balance between price, abundance, convenience and bundled value. Our third area of focus is convenience. We believe guests will continue to expect technology to enhance their dining experience, whether in our restaurants or throughout premise options, like our well-established Denny's On Demand platform or our two new virtual brands.
We are committed to optimizing the digital experience for our guests as evidenced by our recent launch of the next phase of our technology transformation. This phase included a revamped dennys.com website, a new easy-to-use digital app with frictionless ordering and checkout, smart upsell and cross-sell capabilities as well as personalized profiles and digital wallets for rewards. In fact, since our digital relaunch, there have been approximately 40,000 net new app downloads and approximately 100,000 net new rewards members.
Additionally, our updated mobile app receives very high star ratings on both Apple and Android devices. Further enhancing our focus on convenience, we are excited about the next phase of our technology transformation. We will begin to rollout of a new cloud-based restaurant technology platform during the first half of 2022 that will include enhancements such as wait list and table management as well as lay the groundwork for future enhancements as we continue to build toward next-generation customer experiences with even more innovation and functionality.
This rollout is expected to be substantially completed by the end of 2023. And our final focus area is comfort. We have already established a history of providing a comfortable dining experience through our successful heritage remodel program and look forward to relaunching our Heritage 2.0 program next year. Furthermore, we are very excited to announce our latest investment in the brand and our revitalization strategy, which is the rollout of our kitchen modernization project. The majority of our company restaurants, along with a group of franchise restaurants have been testing the equipment package throughout 2021.
Based on the positive guest feedback, we're expanding this initiative to the entire domestic system. The new equipment allows us to accomplish three main goals. First, the new equipment package will reduce complexity in the kitchen, both improving efficiency and reducing waste. This simplifies execution for our cooks and results in more consistency for our guests. Second, the oven delivers improvements to our current core items, impacting over 4.5 million plates every week and allows for improved quality and consistency for our breakfast proteins.
Our bacon is crisper and sausage is more evenly ground. And third, investing in this new equipment provides the ability to enhance our menu offerings across all dayparts, but especially further elevating the dinner daypart with new comforting entree, sides and big desserts. The rollout is expected to begin during the first quarter of 2022, will be substantially completed by the end of 2022. The total domestic franchise system investment for the new cloud-based technology platform and kitchen equipment package is approximately $65 million. To assist franchisees, we will be allocating approximately $10 million toward the cost and installation and have also negotiated favorable financing terms on their behalf for the remaining cost. In closing, we have a lot of energy in this iconic brand.
We are very encouraged to see our October sales results once again surpass 2019 levels. We're also excited to be kick-starting our revitalization strategies again, our new technology transformation, including our revamped website and mobile app, the new restaurant technology package that will greatly enhance our operations and guest experience, the new kitchen equipment package, which will propel menu innovation and the impending relaunch of our Heritage 2.0 remodel program, and all of this together should ultimately drive incremental traffic. This enthusiasm is bolstered by our extraordinary group of dedicated franchisees and their confidence in the long-term vision of the brand. Their excitement around these initiatives and the investments we are making gives me great confidence about the future of this brand.
With that, I'll turn the call over to Mark Wolfinger, Denny's President, to discuss more about our franchisees and development.
F. Mark Wolfinger -- President
Thank you, John. I want to echo your comments about the confidence and optimism we have in the iconic brand and the exciting initiatives ahead. I also want to add that the enthusiasm and energy our franchisees had during our recent Annual Denny's Franchise Association Convention was undeniable. Having the opportunity to see our franchisees in person for the first time in nearly two years, was a great experience as so many expressed a positive outlook for the brand.
We are eager to return to our historical position over the last few months. We currently have approximately 70% of our domestic system operating on average at least 18 hours per day. This is a 15 percentage point increase from July, resulting in 20 effective operating hours across the system. Approximately 45% of our domestic system is currently operating 24 hours a day, seven days a week, an additional 8% of our restaurants is operating 24 hours during the weekend.
We continue to work with our franchise system, franchisee by franchisee, unit by unit to map out a plan to extend our effective operating hours per day, assuming staffing challenges subside over the next few quarters. We are also being very proactive with our hiring efforts as we launched our second national hiring tour, which leveraged our long-standing relationships with Historically Black Colleges and Universities, the National Urban League and the National Society of Hispanic MBAs. Turning to development, we are very pleased to deliver net positive unit growth in the third quarter.
This growth was supported by the opening of seven franchise restaurants, including four international locations in Canada, partially offset by five closures. I'd now like to take a few minutes to update you on our franchise system. With dining sales at the highest level since January and the stickiness of our off-premise business, we are very pleased to see nearly 90% of our franchise restaurants in October, exceeding the 70% of 2019 sales threshold required to cover both fixed and variable costs. With sales above pre-pandemic levels, multiple rounds of federal stimulus and a year-to-date net decline of only three restaurants through September, our franchise's intact, including approximately 75 remaining commitments from our recently completed refranchising strategy.
Additionally, our development team is focused on securing market share and has a proven record of converting existing spaces, both inside and outside the restaurant industry in the successful Denny's locations. In fact, in the last 10 years, approximately 60% of our openings have been conversions. These less capital-intensive opportunities provide enhanced ROIs for franchisees and our experienced development team is already assessing the landscape for future Denny's locations.
I'll now turn the call over to Robert Verostek, Denny's Chief Financial Officer, to discuss the quarterly performance. Robert?
Robert P. Verostek -- Executive Vice President and Chief Financial Officer
Thank you, Mark, and good afternoon, everyone. I would now like to share a brief review of our third quarter results and current trends, as well as our expectations for full year 2021. As a reminder, I will be comparing our 2021 domestic systemwide same-store sales to 2019 as we believe this comparison still provides a more consistent and informative representation of our recovery. Additionally, we will continue our standard practice of comparing to the 2020 prior year in our press release.
Domestic systemwide, same-store sales during the third quarter declined 0.1% compared to 2019. After highlighting positive preliminary same-store sales for July during the second quarterearnings call August and September softened as new COVID-19 cases increased. In addition, the quarter was impacted by the availability of labor that continues to challenge our return to 24-hour operations. Approximately 45% of our domestic restaurants are currently open 24/7.
Domestic restaurants, which were open 24 hours in the third quarter delivered a same-store sales increase of approximately 11% versus 2019 compared to a decline of approximately 9% at domestic restaurants operating with limited hours. We still believe this performance differential presents an ongoing opportunity as our system looks to extend its operating outlets. With that being said, we are encouraged that preliminary domestic systemwide same-store sales results for October increased 0.8% with approximately 55% of our domestic restaurants still operating with limited hours.
Now, I want to spend a few moments providing an update on the performance of our virtual brands. The Burger Den is currently live at over 1,100 locations, while The Meltdown is live at nearly 800 locations. Both rollouts are now substantially complete. And as John mentioned earlier, these virtual concepts continue to deliver approximately 3% of highly incremental sales while leveraging labor during the underutilized dinner and late-night dayparts. They are also overindexing during the weekdays compared to the Denny's base brand.
Now, turning to our third quarter results. Franchise and license revenue increased 30.9% to $57.3 million, primarily due to improving sales from dine-in restrictions in the prior year quarter. Franchise operating margin was $29.9 million or 52.1% of franchise and license revenue compared to $19.7 million or 45% in the prior year quarter. This margin increase was primarily due to the improvement in sales performance at franchise restaurants, partially offset by fewer equivalent units. Company restaurant sales of $46.5 million were up 45.9% primarily due to the improvement in sales from reduced dine-in restrictions in the prior year quarter.
Company's restaurant operating margin was $7.9 million or 17% compared to $0.5 million or 1.7% in the prior year quarter. This margin increase was primarily due to improvements in sales performance and the leveraging benefit of lower staffing at company restaurants. Additionally, we recorded approximately $400,000, in favorable reserve adjustments during the third quarter, which benefited the company restaurant margin -- operating margin by approximately 0.8 percentage points.
We experienced commodity inflation of approximately 10% during the quarter, which was primarily offset by favorable mix shifts driven by lower value incidents along with pricing. This resulted in a 90 basis point improvement in our product cost line. We expect similar commodity inflation during the fourth quarter as inflationary pressures are likely to remain in the near-term. Total general and administrative expenses were $16.5 million compared to $13.7 million in the prior year quarter.
This change was primarily due to increases in both performance-based incentive compensation and share-based compensation expense in addition to temporary cost reductions during the prior year quarter. These increases were partially offset by market valuation changes in our deferred compensation plan liabilities. As a reminder, share-based compensation expense and market valuation changes are non-cash items and do not impact adjusted EBITDA.
These results collectively contributed to adjusted EBITDA of $24.4 million. The provision for income taxes was $4.1 million, reflecting an effective income tax rate of 25%. Adjusted net income per share work -- was $0.16 compared to $0.01 in the prior year quarter. During the third quarter, we generated significant relative adjusted free cash flow of $14.3 million after cash capital expenditures, which included capital maintenance of $2.2 million. Our quarter end total debt to adjusted EBITDA leverage ratio was 2.7 times and we had approximately $185 million of total debt outstanding, including $170 million borrowed under our credit facility.
As we have stated in a last fewearnings call the pandemic affirmed for us, the value of a conservative leverage philosophy. As such, we are currently more comfortable with the range between two and three times adjusted EBITDA in the near-term, whereas prior to the pandemic, we would have targeted longer term leverage somewhere between three times and four times. During the quarter, we announced the refinancing of our amended and restated $350 million revolving credit facility to a new five-year $400 million revolving credit facility.
With the enhanced flexibility provided by this new credit facility, we were excited to relaunch our multiyear share repurchase program and we allocated $6.6 million to share repurchases during the quarter. Between the end of the third quarter and October 29, 2021, we allocated an additional $6.8 million to share repurchases, resulting in approximately $235 million remaining under the existing purchase -- repurchase authorization.
Since beginning our share repurchase program in late 2010, we have allocated approximately $567 million to share repurchases of approximately 55 million shares at an average price of $10.34 per share, leading to a net reduction in our share count of approximately 36%. In addition to share repurchases, this long-term financial flexibility allows for other brand investments, such as the technology transformation and kitchen modernization initiatives, that John mentioned earlier.
These investments are backed by a company contribution of approximately $10 million toward the cost and installation at domestic franchise restaurants. We have also negotiated favorable financing terms in a loan pool with a portion backstopped by the company to support our franchisees for the remaining cost.
Let me now take a few minutes to expand on the business outlook section of our earnings release. The following estimates for our full year 2021 reflect management's expectations that the current economic environment will not change materially. We anticipate a domestic systemwide same-store sales decline of approximately 5% compared to 2019. Our expectations for total general and administrative expenses are between 67 and $69 million, including approximately $13.5 million related to share-based compensation, which does not impact adjusted EBITDA. Based on the guidance I just described, we are expecting adjusted EBITDA of between 84 and $86 million.
In closing, as we work to overcome near-term commodity inflation and staffing challenges that impact our effective operating hours, we remain optimistic about our potential for additional sales growth. Finally, and most importantly, I want to mention how proud I am of our franchisees and the entire Denny's team who have remain focused on serving our guests while positioning this iconic brand for continued success. That wraps up our prepared remarks.
I will now turn the call over to the operator to begin the Q&A portion of our call.
Questions and Answers:
Operator
Thank you. [Operator Instructions] We'll take our first question from Michael Tamas with Oppenheimer Company. Please go ahead.
Michael Tamas -- Oppenheimer Company -- Analyst
Thanks, Good afternoon everyone. I was wondering if you could just tell us what the full year guidance implies for your fourth quarter same-store sales relative to 2019 levels, just so we're all on the same page.
Robert P. Verostek -- Executive Vice President and Chief Financial Officer
Yes, Michael, happy to do so. So that implies that down 5% on the full year would imply a range somewhere between flat and up 3% to still hit that down 5% on the full year.
Michael Tamas -- Oppenheimer Company -- Analyst
That's perfect.Thanks for that. And then, you mentioned the third quarter was helped by lower staffing levels. Can you maybe talk about how much do you think that helped this quarter so we can understand what your core margins might look like going forward as you get back to better staffing levels? And then, related to that, you mentioned less value purchases by consumers and more pricing helped to offset that 10% inflation, and you're talking about similar inflation in the fourth quarter. So do you think the pricing and value dynamics are also the same in the fourth quarter?
Robert P. Verostek -- Executive Vice President and Chief Financial Officer
Michael, this is Rob. I'll start with that margin question and then pass it over to John. So I think the best way to think about margins again, is pretty volatile right now with the lack of 24/7 and more than half the units, 55% of the units. So I think the best way to frame that is to point it back to where we were prior to the pandemic with our latest refranchising strategy, where we said that we would target 18% to 19% corporate company store margin. I -- we still think that holds true. Ultimately, longer term, we do have some near-term inflation benefits from the lower staffing that will ultimately get billed, but we will move back to all of the units ultimately being 24/7. So you throw that all together and ultimately, we do believe longer term we get back to those 18% to 19% margins on the company side. So that's that piece, and I'll pass the pricing question over to John.
John C. Miller -- Chief Executive Officer
Yes. We did experience combination of a series of events. We lived -- with staffing challenges, as you can imagine, filling the dining rooms is a fair amount that we fill it with full price guests. So the focus on value disappeared across the industry in general, not just full service, but just pretty much across the entire industry. So that's given some buoyancy to check. So that, along with pricing is a little bit higher than normal pricing to cover wage and commodity inflation, creates a little bit a check that's higher than the normal run rate as well. So when you put all those together, you have a flow-through from that missing the value part of -- the normal part of the process is to stimulate some of your sales through a value component. So the value part of our equation down and I think you'll see that consistent trend across the industry at the moment.
Michael Tamas -- Oppenheimer Company -- Analyst
Thank you.
Operator
We'll take our next question from James Rutherford with Stephens Incorporated. Please go ahead.
James Rutherford -- Stephens Incorporated -- Analyst
Thanks very much on all the information here. I was curious on the kitchen modernization effort. That $65 million price tag indicates, I think, about $40,000 per store, correct me if I'm wrong there. With all the costs that operators are billing with now, I'm curious what the reception has been for that investment? Sort of a why now kind of question. And then, also you'd be able to quantify some of those food or labor savings that you referenced?
John C. Miller -- Chief Executive Officer
Sure. So surprisingly, our franchisees have been very enthusiastic about the project. This is not something that we just tested in 2021, although our prepared remarks talked about the fact that's been in test throughout this year, preparing to rollout. But this has gone on for some time. We've been on this long journey of revitalization of Denny's as America's Diner and we focused for many years on the breakfast and lunch component. The part of preparing for dinner has been the launch of these ovens. But to do dinner items that you don't cook to order, which would be a big change for a normal breakfast or grill cook, you have to have hot holding equipment with that. You have to have different refrigeration on the line. You have to have a training program that supports it.
So our franchisees have been saying, Well, this takes us back to the heritage of our brand, way back when... and they've been enthusiastic for the day we could finally get to this stage in our company. The why now, I'd say that there was very little discussion around the timing or that there's high wage inflation or high commodity inflation or tough on staffing coming out of the pandemic. Most franchisees are looking past that to the longer term, which has been a really nice place to be for us. Our franchise convention, there was tremendous enthusiasm around it. The workshops were filled with people learning more about where product could go and some of our vendors along with our product team actually demonstrated some of the things that would be available several quarters down the road.
So that takes care of the answer around the kitchen. As far as the technology, likewise, when we see this much of our business going to both virtual brands, which has been seen as highly incremental as well as our Denny's on demand. The enthusiastic reception of our guests has given this new platform of the dennys.com website, really high scores from folks saying how much easier it is, how much more frictionless it is to be able to order online, to navigate the menus, to add, delete, plus or minus their own customization, to build your own capabilities. It's been such a positive experience for our guests and the notable comments from our guests, that our franchisees have been enthusiastically embraced this time to move to a cloud-based system, to move to a system that has more capabilities.
And even though that rollout takes a little bit longer period of time, there's enthusiasm to see that kicked off so that as we get to the end of the pandemic and transactions continue to improve, we will have those capabilities in the system. It's a long journey to the completion of that and so one wanted to see that delayed. We can let Robert speak to sort of the mix between those two investments, but that amount of money is both kitchen modernization and tech transformation.
Robert P. Verostek -- Executive Vice President and Chief Financial Officer
That's right. James, it is both. The $10 million is the aggregate for both of those. I think the way of that data is about yes, about 60-40 between the kitchen and the technology but again, it's wrapped up in total between those two. With regard in total, the $65 million is for the franchise piece. We did put together the financing for that, and that will come out over time. Now, one of the interesting pieces with regard to that, about 25% of our franchisees have said that they -- their -- given their financial position, they're going to pay for it in cash. So again, speaks to some of the health of the franchisee. 75% of the company, by the way, already have the kitchen equipment. So we will include -- the balance of that will likely run through the Q4 capital. So that won't necessarily be in. It wasn't -- it wouldn't be a big number considering we have 75% already installed, but it will impact -- the balance will impact Q4 and not extend into 2022.
James Rutherford -- Stephens Incorporated -- Analyst
Great. Thanks for all that information. And then, this is really helpful. The second question is just on the staffing situation as well. But I wasn't sure if -- there was a comment made earlier that staffing has not materially improved. I'm not sure if that was a comment in regards to company or franchise, but I'm curious if that's the case, how there has been growth in the number of units running 24/7 each month, not huge growth, but it's gradually improved. How is that happening if labor is also not improving in lockstep?
John C. Miller -- Chief Executive Officer
That's a great question. As you can see, we're trying to be consistent with our comments. You might have asked it in a different way, if staffing has got momentum, then why haven't more stores moved to 24/7? So we want to make sure that our comments were tempered in our prepared remarks. We have moved up about 90 units from July until now that are 24/7. We do see momentum in staffing, but we do see this playing out over a few more quarters rather than something happening just overnight in the next few weeks. So remember, when you put these employees on, there's a little bit of a vetting period and a testing period and a training period before you actually extend the hours. And so we just wanted to be tempered.
There is enthusiasm for getting there, a lot of support from our franchisee association, from Board, through committee members, but just also a request for us to be mindful of the fact that we don't want to open up those hours and have a miserable experience for our guests with somebody new and not capable yet. So this is going to take a little while, but there is momentum. It is improving. And so I think that's a good call out that our remarks, our prepared remarks, maybe didn't tell the whole story that there is positive momentum in staffing.
James Rutherford -- Stephens Incorporated -- Analyst
I love that approach. Thanks very much for the help.
Operator
We'll take our next question from Nick Setyan with Wedbush Securities. Please go ahead.
Nick Setyan -- Wedbush Securities -- Analyst
Just going back to the pricing question. I know historically you've been hesitant to take much more than, say, 2%, 3% pricing. I guess, just given the context of inflation today and into first half of next year, are you comfortable taking a little bit more pricing than that? What that pricing could be? Again, I mean, the context of just a lot of the peers taking a lot more pricing than we've seen historically.
John C. Miller -- Chief Executive Officer
Nick, that's a great question. I'd say the simple answer is yes, we're comfortable with something above our historical norms, and we don't have quite the hesitation you would normally have. There has been considerable wage and commodity inflation. And I think it's fair to say that our franchisees who largely control that, while disciplined, will be ahead of the historical average.
Nick Setyan -- Wedbush Securities -- Analyst
Is there a way to -- at least on the company owned side that you guys have visibility and to maybe quantify the non-late-night headwind from staffing constraints in terms of sales?
John C. Miller -- Chief Executive Officer
I think it's largely staffing. I don't know that there'll be much more than that to quantify the difference. If you're asking reluctance on a franchisee to go to 24/7, that noise is in the brand and has been here for probably 20 years plus. I've been here for just slightly ahead of 10 years now. And so, you see a small group of folks that say, Gosh, in my neighborhood, it's pretty sleepy. But that's a pretty small contingent. Most understand the beneficial economics, the momentum we have in late-night with third-party. And I'd say the conversations in our brand around convention in most circles are more, just give us time to stat properly. So I think it's really highly correlated to that single topic. I'm not sure if I got to the heart of your question or not, but that's what I interpreted your question to mean.
Nick Setyan -- Wedbush Securities -- Analyst
That's OK. I will follow up off-line. On the kitchen modernization costs next year, is that all within in terms of the $10 million?
Robert P. Verostek -- Executive Vice President and Chief Financial Officer
Yes. That's an excellent question, Nick. No, it actually won't come through G&A at all. So the way that will be recognized is over the balance -- the average balance of the life of the franchise agreement. So that's somewhere likely, let's say, five to seven years. So what you'll see is probably $1.5 million to $2 million that's going to run through the franchise margin for each of the next five, six, seven years. So we won;t have -- we won't take that hit all at one time, while the cash will come out the door as those are put into the system. It will actually -- in a very technical sense that to answer that will be a contra revenue item is the way that will fall out. So it won't actually be an expense. It will be a contra revenue item. But that's a very specific technical answer to that, but it will not impact. It will impact the franchise margin, and it will extend over the average life of the remaining franchise agreements.
Nick Setyan -- Wedbush Securities -- Analyst
Got it. Another clarification, the October quarter-to-date number, at least for the company owned side, can you maybe tell us what the average of the sales number for the company owned side is for October?
Robert P. Verostek -- Executive Vice President and Chief Financial Officer
So, Nick, I -- what I know is that we're up 0.8 and again, I can reiterate the fact that likely the differential between the 24/7 and the non-24/7 is still in that range of that 20 point differential. It's about 1% for the system again, that 0.8 and the company is generally higher than the franchisees.
Operator
We'll take our next question from Jon Tower with Wells Fargo. Please go ahead.
Jon Tower -- Wells Fargo -- Analyst
First, John, I think you had mentioned something earlier in the call about the new kitchen equipment, allowing you to get into some new products, specifically geared at -- toward the dinner time period. So I was wondering if you could expand upon that a little bit, maybe where those products are in test today, if they are in test today? How we should think about those items versus the current menu? Is it going to be new proteins? Or is it utilizing a lot of the SKUs that you already have today? Just in a different format because of the equipment that you have?
John C. Miller -- Chief Executive Officer
It could impact breakfast, lunch, dinner or late-night, we called attention to the fact that there will be some enhancements at dinner. One of those -- our bread program is one I could call attention to. we have garlic toast and that's it, so the ability to have a breakfast or a finished biscuit or dinner roll that would be a capability we have in the future. I hesitate to mention too many others. We do have a pretty good testing protocol, we've exposed our franchisees to a number of the products in the series of cutting them through the normal ways in which we communicate to our franchise system. There is some enthusiasm about it. But at the same time, the menu can only be so big at the same time. So I think the process here would be very focused and disciplined about rollouts.
And so as -- first things first, as we improve the quality and the ability to manage our current shifts, just flips this equipment. So ability get through a busy shift is enhanced. It does save waste. It does save some amount of labor that we think will be redeployed rather than saved technically. And so it just helps run the business better. So in that business case alone, we've got our franchisees very enthusiastic about it. So within what comes at dinner will just be something that will come once these are fully installed in the full system and which is still a little ways down the road. But it will be the typical array of things to support our diner positioning.
Jon Tower -- Wells Fargo -- Analyst
Got it. And apologies if I missed this earlier, but did you say what percentage level you're at with respect to staffing levels versus 2019?
John C. Miller -- Chief Executive Officer
I think we gave that level, but we -- it's sort of hardwired in the answer of 90 additional stores versus July that are 24/7. And we have effective 20 hours now that's moved up from where we were in July. So we have the number of stores in the system. As we move up in 24 hours, the number that are in restricted hours moves down, but it doesn't tell the full story that they're also moving up in total hours or 18 hours plus. So both the 24/7 and the 18 hours plus, we're now at 20 effective hours per day across the whole system. When you average in the 46% that are at 24/7, this drawing the rest of the system north. But you can correlate that back to the number of stores or staff, but it doesn't give the total headcount missing. I will say this, our hiring, as I said earlier, it is showing promising signs of building momentum.
Jon Tower -- Wells Fargo -- Analyst
And do you think you need to step back to 2019 levels across the system? Obviously, you're trying to drive a late-night business with these virtual brands, but it sounds like this kitchen equipment will also allow you to manage hours a little bit better and maybe redeploy the labor better in the stores. But I guess, do you think these stores really need to be staffed at those levels again?
John C. Miller -- Chief Executive Officer
What I would say is that we ultimately hope so. So staffing grids in our industry are pretty simple. They're tied to transactions. So you have some fixed variable costs that are pretty dynamic. You get past fixed level pretty fast with management in a few key positions, and the rest is variable. And so, as transactions increase, you add labor back and we would -- we see us -- we can ourselves as a brand that will get -- ultimately get back there and so, we are hopeful of needing every single body that we're -- that's missing from the roster right now down the road.
Jon Tower -- Wells Fargo -- Analyst
Got it. And then, just digging into the commodity inflation comments, I think, Robert, you had mentioned that you expect similar levels in the fourth quarter as you saw in the third quarter, which would imply hopefully 10% or so. I wanted to get your take on your thoughts for 2022 and your ability to or the franchisee ability to start potentially locking in any sort of product for 2022 and at what levels they're potentially seeing now? Any thoughts there would be helpful.
Robert P. Verostek -- Executive Vice President and Chief Financial Officer
Yes. Thanks, Jon. So with regard to 2022, I think what we really described it is that 10% in Q3. We've said that, that will remain for the near-term, the implication that, that's Q4, likely extending into 20220. We ultimately do see it abating at some point in 2022. That's the vision that we have. We will give that guidance as we get into February, but we don't ultimately see this existing permanently. We do see some -- it peaking at some point likely in the first half. We do keep our eyes open to the opportunity to lock in. The dilemma right now, as you would suspect, is that everything is really at a pretty high level. So we are very opportunistic and to the extent that we saw something that we believed would be at a market low or below average of looking out for the next six, 12 or 18 months, we would take that opportunity to lot. It just really hasn't presented itself at this moment. But we are always looking for that opportunity.
Operator
We'll take our next question from Jake Bartlett with Truist Securities. Please go ahead.
Jake Bartlett -- Truist Securities -- Analyst
Thank you for taking my question. I wanted to start with just your expectations for the next two months of this year, just to make sure I understand. I know that sometimes when we take an average, there's different kind of waitings by month and stuff. But my math is that the November and December, given the range you've talked about would be flat to up 4%. And I'm trying to think about the drivers to being on one or the other end of that range. Could you talk about maybe your comments on why you wouldn't expect to be at the higher end? If staff is improving, if you're consistently adding hours, if you have a new digital platform, you're starting to get rolled out your -- The Meltdown contribution. Just -- maybe some of the moving pieces as to what would drive you to the top or the bottom end of the range, if I'm right about the flat to 4% for November, December?
John C. Miller -- Chief Executive Officer
Right. No, those are great questions. I think the headwinds and tailwinds are pretty well stated out there. The tailwinds of our staffing continues to improve, and therefore, hours would continue to expand. We are confident in our promotional calendar. We have a very -- in spite the -- all the things that are challenging in the environment, our franchisees are -- have some pretty enthusiastic body language about the investments we're making in the brand and the outlook for the future. On the tailwinds side, commodities and wage inflation and consumer confidence have been on a little bit of a rollercoaster. Although, October really looks very much more promising. Then, with the Delta variant beginning to subside because cooler weather comes on. Volatility around the world always creates headwinds and so, we have, I think, guided -- I think the simple answer is guiding with the same amount of precision and confidence. It creates a bit more ranges than guidance these days, but we did say this would be positive, flat to 3%.
Robert P. Verostek -- Executive Vice President and Chief Financial Officer
Yes, Jake and a little bit more technical answer. So if you think about what we did with our Q3 guidance, we had a little bit higher of a sales range than what we ended up producing that we guided prior to the Delta variant really grabbing hold. One of the things I can tell you, though, is that regardless of that, if you recall, we provided the guidance range on adjusted EBITDA of $22 million to $24 million. And despite it really coming in below the sales range, we topped the profit range.
So again, it just -- don't necessarily want to have that same issue again with sales, so trying to be conservative and again, we approve and that we can still bring that to the bottom line. And if you convert that adjusted EBITDA into free cash flow, adjusted free cash flow, that again approximates about $0.60 of every dollar being brought down into the adjusted free cash flow. So I think, I get the math that you're doing for the 0% to 4% range. And again, we just -- as John mentioned there, it's just -- it's a little bit difficult to be overly specific but again, we'll focus on delivering that profit with what comes through the top line.
Jake Bartlett -- Truist Securities -- Analyst
Great. Great. That's helpful. And then, on -- maybe this could help frame the impact of the staffing, but could you talk about your weekend brunch sales recovery versus '19 versus the some of the other dayparts? Whether weekday breakfast you're starting to see more of a normalization as we get back to work or I would imagine that daypart...
John C. Miller -- Chief Executive Officer
Great question. Weekends have been stronger than weekday. [Indecipherable] over there in all likelihood ahead of the weekday.
Jake Bartlett -- Truist Securities -- Analyst
Got it. And that's despite likely -- I would think that's where you could have some staffing issues be more of a constraint but that's not happening on the weekends?
John C. Miller -- Chief Executive Officer
Well, you'll cover your busy shifts first and for sure. So it's -- I'm not saying that we don't have staffing challenges. In all dayparts but it's focused and concentrated on the hours where you're not open. So as we build staff and staffing momentum, the best training environment for them would be on the weekends when we're busier. And then, you turn them -- loosen up to other daysparts and shifts. So we are seeing, again, more momentum on the weekends, and I'd expect that to continue through the fourth quarter.
Jake Bartlett -- Truist Securities -- Analyst
Great. And then, in terms of the kitchen equipment and what you've seen in the -- in your company stores, it was -- it sounds like maybe what you experienced there was you're able to convince the franchisees to go forward with it. So can you quantify any of the impacts on sales or any impacts on cost saving, just so we can understand how -- I guess, how big a deal this could be longer term?
John C. Miller -- Chief Executive Officer
I can just give you some general ideas. When you are able to bulk cook in a high-tech new oven, then you free up space on the grill. And when you free up space on the grill, you -- the cook is not waiting or running up and down the line to be as efficient. So you improve some ticket times and you also improved some waste. The hot holding from products prepared in a much better quality and controlled environment like the oven, like grounding our sausages on all sides, not rushing some products, flipping hash browns too early. We're seeing number of products are just better on the averages and then, therefore, you don't have as many of those pieces that don't make the shift and get thrown away.
So it improves some waste and improves some labor and improves quality. But the material improvement is how much easier it is to manage getting through a challenging busy shift, especially when you're moving from breakfast to lunch on a weekend and you have the menu start to dynamically change, from pancakes to burger buns or burger still in the grill. The ability to have that space to just navigate the product mix is materially easier on the cooks and the product quality has improved dramatically as a result. So it's around a lot of different little categories on the little pieces here and there. And we'll be able to share this a little bit more specifically in the future. It's a bit early.
Jake Bartlett -- Truist Securities -- Analyst
Thanks.
Operator
We'll take our next question from Brett Levy with MKM Partners. Please go ahead.
Brett Levy -- MKM Partners -- Analyst
Thanks. When you think about all of the different pressures on the franchise system and all of the new investments that you're talking about now. How are they thinking of -- and obviously, you still have these 75% unit commitments, how are they thinking about development? How are you thinking about what the next one, three, five years looks like? What's their appetite right now to take on additional pressures from openings while still trying to find enough labor to get the current operations up to full speed?
John C. Miller -- Chief Executive Officer
That's a great question. Our franchisees sort of answer it in two different ways. There's this unbridled enthusiasm for the longer term, not only for sales and earnings but for our positioning in that as America's Diner. At the same time, the labor, when we call our franchisees and then speak to our franchise business coaches that have direct contact on a -- more of a daily basis with their franchisees in the trenches, they will say that the staffing channels is their number one challenge.
So commodity and wage inflation runs right behind that and the rest of these challenges, they're a lot less concerned about -- not that they're not concerned, there's a lot of things they face, but whether it's a pandemic reocurrence or lockdowns or masks or vaccine mandates to our political environment or all the kinds of things that show up on the radar over the last year to year and a half, they've laid lower and it's really more about staffing. So the near-term staffing challenges impact a little bit of the body language toward development.
So I don't -- it's way too early for us to talk about one year or next year's guidance or two to three impact on remodels or development but I would say, the franchisees' very short-term are knowing they want to see the brand grow and develop, they want to meet their development commitments and at the same time, I'd say, because of staffing they're a little -- a bit more wary about the pace that we hope things to kick back in. And so staffing abates, confidence returns. I meant to say, when staffing challenges abate, confidence return.
Brett Levy -- MKM Partners -- Analyst
I'm going to try to ask this a different way on the staffing levels. What percentage of your system would you say, if you had to quartile rank or if you could talk about the bottom half of the bottom quartile. But how challenged are they -- how long have they been pressured where you think they can get -- where they want to get back to staffing levels, but they just can't seem to get the personnel to either join or stay, regardless of whatever the situation is? Can you talk about that bottom quartile a little bit more?
John C. Miller -- Chief Executive Officer
Yes. I think we do think about it that same way. It's a great question. We think about the areas where we -- that it's been more challenging than others or areas where traction is not as prevalent as others, and we focused on what's going on there, how can we assist. What can we do to get the staffing challenges so they're quicker? Are there -- are you participating in incentives? Take a good look at their scheduling, their roster, the number of inexperienced managers or cooks makes it harder to onboard new ones or have a harder retention.
Bigger retention challenges for new ones. And the fact of the matter is those that went the farthest down have the farthest to come back because they will have maybe no prior knowledge, no cultural knowledge on their staff, any experienced servers whatsoever. So they're the ones that are struggling the most. It does seem to be isolated to a few areas that are trailing the momentum of the rest of the brand. California was a concern for us early on, where it didn't get the traction before. There was Texas and Arizona right at first, but now it seems to really be picking up momentum.
So that was a big relief for our franchisees that reside and operate there. Their sales are coming back quicker and it's outperforming most of the others -- in fact, all other states in the country and so, our franchisees' commitment to step up to wages and commitments to full-time hours for certain positions and all those things have gone away. So there's a lot of positive momentum there. And so, there's just a few areas where that lags. A couple of states in the Midwest, Pennsylvania, a little bit of Pacific Northwest, where it went down a little further and has a little farther to come back. It's coming, but it is lagging than the rest of the system. But the confidence of how we got through that in other areas seems to be a strong indicator of what's yet to come. In a quartile or quintile, it's probably one quintile at the present that represents the biggest headwind.
Operator
[Operator Instructions] We'll take our next question from Eric Gonzalez with KeyBanc Capital Markets. Please go ahead.
Eric Gonzalez -- KeyBanc Capital Markets -- Analyst
Hello, Thank you for taking my question. Given the store level profitability in the third quarter in the company owned stores with the cost being 90 basis points favorable and very similar to 2019 levels, are we to assume the franchisees are seeing a similar level of improvement? If that's the case, that 10% inflation is being offset with modest pricing and mix improvements, is there a need to price above a certain range in the near-term or perhaps, the need is a little less urgent than it had been in the past?
Robert P. Verostek -- Executive Vice President and Chief Financial Officer
This is Rob. I'll start and then, let John add on there. So we do have a tool. It's called a Lumen through which we capture about half of the franchise P&Ls on a monthly basis. Through that tool I would suggest that they are seeing similar effects with regard to the increased check, whether that be the mix or the pricing that we have taken to date and the deleveraging effect that we are seeing through the product cost line. Ultimately, when you look across that P&L, it's just not isolated in the ware. We are seeing some similar wage inflation or wage inflation, I don't want to imply that it's similar to commodities, but we are seeing wage inflation. So it's really best to look at those in tandem. I would suggest what -- if you look at the 10% commodity inflation and some of the work that we've done with the franchisees, we take a lot of time to educate our franchisees on pricing.
Again, we do feel that remaining competitive with pricing is critical and to cover a commodity inflation of 10% would require about 1/4 of that in pricing, so 2%, 2.5% to get there. So it's much less than you would otherwise anticipate. We take a lot of effort to educate our franchisees on that topic. It does vary though the required level of pricing because the other factor there that I mentioned, labor inflation varies dramatically across states. So again, the individual pricing determinants are made by the franchisees in those various situations. But our efforts have been with regard to education on pricing and the potential for not needing as much as one may otherwise think.
John C. Miller -- Chief Executive Officer
Yes, I couldn't add much to that other than it's very different. Therefore, a dynamic process. Every time we have a menu print to educate franchisees, we do assist them with a review of the P&L on impacts of rent, labor, food, sort of the total, whether or not they're trying to maintain some sort of percent achievement or whether they've got their cost covered. And so, it is a dynamic process. So in the same market, let's say, LA, you have some franchisees that missed the last round and take a little more at this time than others. The guy that covered in the last round, will skip this time. So -- but we do -- we hold similar urge with our franchise community to walk them through quite a bit of detail and educate them on what's going on.
We also use a company called RMS, they provide insights and they work with our franchisees one-on-one. And quite a number of our franchisees who reach out to them to understand where they have pricing sensitivities and where they don't. And a good portion of our franchisees are now disciplined to at least heeding their advice to some degree. And then, the whole thing just rolls up to what our averages are from on menu change to another. But it's a great question and the answer is, some do not. Some recovered already, some are not and we'll need to take price.
Eric Gonzalez -- KeyBanc Capital Markets -- Analyst
Got it. And then, maybe if I can ask about the marketing plan right now. You are a franchise business that collects advertising fees and thus, you have to spend those dollars. And this is happening at the same time when some of your large competitors are generally turning off the advertising and maybe redeploying those funds into other areas. So my question is, with the funds that you collected versus and deployed, you're pivoting away from value advertising. So how are you maximizing the impact of what is likely an outsider's level of mind share of what you have achieved past with a similar budget?
John C. Miller -- Chief Executive Officer
Yes. I do think that higher frequency, quick-serve or fast casual brands maintain a top of mind awareness from proximity drive-by, what have you. I think, family and casual require -- have an advantage when they're scaled to combine media versus neighborhood markets and have a little bit more dependency on a reminder of how to use those brands and why to them. One of the things that build their ability to scale and consciously cannibalize and penetrate markets a little bit deeper. And so, I would not say that we've achieved any top of mind awareness, unaided certainly. But in terms of influencing where I might have dinner tonight, I'd say that we would continue to spend our marketing dollars to drive awareness and trial and awareness and trial. We have been using those dollars through a combination of the traditional platforms as well as social platforms.
We think that we have a pretty good finger on the pause of what's required to get the right reach frequency of the audiences of our core customer. And our annual calendar has required some investments in introduction and awareness around off-premise because family dining has historically been a lower off-premise provider than where we are today. We've used some of that to talk about diner positioning in our 24 hours and open all day. We use some of that to talk about value during value seasons, particularly after the holidays and back-to-school. And we use some of that to do product promotions of either new introductions or reinforcement of some of the favorites on our menu. So all of those tend to be in the mixed modeling when we do the appropriate investments, and I think that that's required. Some brands have said let's -- we got longer lines right now through the drive-through. What do we do to hold on to that share? But I think they are less concerned about whether that's going to run into a full service, they're more concerned that Denny's is not a threat to McDonald's, but the grocery store might be.
So I do think you see people gearing up for premium promotions rather than value promotions or rather deep discounts and focusing on the premium quality sandwiches that they've launched and the like. So you do seem to see that cadence in quick-serve and fast casual these days. I do think that will influence full service promotions as well to some degree. It's a little early to know for certain but I think that seems to be the direction. A little bit reluctance to run back to absolute discount type value promotions and to focus more on premium promotions, quality for the money, quantity for the money, bundled meal qualities rather than just deep discounts.
Eric Gonzalez -- KeyBanc Capital Markets -- Analyst
Great, Thanks
John C. Miller -- Chief Executive Officer
Thank you.
Operator
Ladies and gentlemen, this concludes today's question-and-answer session.
At this time, I turn the conference back to Mr. John Miller for any additional or closing remarks.
John C. Miller -- Chief Executive Officer
All right. Thank you all for joining us today on the call. We are very pleased with the progress that we have made through the pandemic and we do continue to navigate through the recovery. The demand for Denny's remains strong with same-store sales trending above pre-pandemic 2019 levels in October, even with only 46% of our domestic system operating at 24/7. As we safely welcome guests back into our dining rooms, our off-premise business has remained sticky, supported by the successful launch of two new virtual brands, which are delivering approximately 3% in incremental sales for our system. And we continue to actively address the temporary staffing challenges with extensive new course and we believe the situation will correct itself in due course.
As it does, we see additional potential for our brand based on the performance of those restaurants already operating 24 hours a day, seven days a week, and we are encouraged by the level of adjusted EBITDA and adjusted free cash flow generated by our highly franchised business model through the third quarter. We were also excited to begin returning capital to shareholders during this quarter, while at the same time announcing meaningful investments in kitchen equipment and restaurant technology platforms that will advance long-term brand revitalization strategies. So we look forward to our nextearnings conference callin February where we will discuss our fourth quarter 2021 results. Thank you all, and have a great evening.
Operator
[Operator Closing Remarks]
Duration: 67 minutes
Call participants:
Curt Nichols -- Senior Director of Investor Relations and Financial Analysis
John C. Miller -- Chief Executive Officer
F. Mark Wolfinger -- President
Robert P. Verostek -- Executive Vice President and Chief Financial Officer
Michael Tamas -- Oppenheimer Company -- Analyst
James Rutherford -- Stephens Incorporated -- Analyst
Nick Setyan -- Wedbush Securities -- Analyst
Jon Tower -- Wells Fargo -- Analyst
Jake Bartlett -- Truist Securities -- Analyst
Brett Levy -- MKM Partners -- Analyst
Eric Gonzalez -- KeyBanc Capital Markets -- Analyst
More DENN analysis
All earnings call transcripts
This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability.
The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Denny's Corp (NASDAQ: DENN) Q3 2021 Earnings Call Nov 2, 2021, 4:30 p.m. Welcome to the Denny's Corporation Q3 2021 Earnings Call. 10 stocks we like better than Dennys When our award-winning analyst team has a stock tip, it can pay to listen.
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With me from management are John Miller, Denny's Chief Executive Officer; Mark Wolfinger, Denny's President; and Robert Verostek, Denny's Executive Vice President and Chief Financial Officer. Operator [Operator Closing Remarks] Duration: 67 minutes Call participants: Curt Nichols -- Senior Director of Investor Relations and Financial Analysis John C. Miller -- Chief Executive Officer F. Mark Wolfinger -- President Robert P. Verostek -- Executive Vice President and Chief Financial Officer Michael Tamas -- Oppenheimer Company -- Analyst James Rutherford -- Stephens Incorporated -- Analyst Nick Setyan -- Wedbush Securities -- Analyst Jon Tower -- Wells Fargo -- Analyst Jake Bartlett -- Truist Securities -- Analyst Brett Levy -- MKM Partners -- Analyst Eric Gonzalez -- KeyBanc Capital Markets -- Analyst More DENN analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Denny's Corp (NASDAQ: DENN) Q3 2021 Earnings Call Nov 2, 2021, 4:30 p.m.
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Operator [Operator Closing Remarks] Duration: 67 minutes Call participants: Curt Nichols -- Senior Director of Investor Relations and Financial Analysis John C. Miller -- Chief Executive Officer F. Mark Wolfinger -- President Robert P. Verostek -- Executive Vice President and Chief Financial Officer Michael Tamas -- Oppenheimer Company -- Analyst James Rutherford -- Stephens Incorporated -- Analyst Nick Setyan -- Wedbush Securities -- Analyst Jon Tower -- Wells Fargo -- Analyst Jake Bartlett -- Truist Securities -- Analyst Brett Levy -- MKM Partners -- Analyst Eric Gonzalez -- KeyBanc Capital Markets -- Analyst More DENN analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Denny's Corp (NASDAQ: DENN) Q3 2021 Earnings Call Nov 2, 2021, 4:30 p.m. Welcome to the Denny's Corporation Q3 2021 Earnings Call.
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Operator [Operator Closing Remarks] Duration: 67 minutes Call participants: Curt Nichols -- Senior Director of Investor Relations and Financial Analysis John C. Miller -- Chief Executive Officer F. Mark Wolfinger -- President Robert P. Verostek -- Executive Vice President and Chief Financial Officer Michael Tamas -- Oppenheimer Company -- Analyst James Rutherford -- Stephens Incorporated -- Analyst Nick Setyan -- Wedbush Securities -- Analyst Jon Tower -- Wells Fargo -- Analyst Jake Bartlett -- Truist Securities -- Analyst Brett Levy -- MKM Partners -- Analyst Eric Gonzalez -- KeyBanc Capital Markets -- Analyst More DENN analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Denny's Corp (NASDAQ: DENN) Q3 2021 Earnings Call Nov 2, 2021, 4:30 p.m. Welcome to the Denny's Corporation Q3 2021 Earnings Call.
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7eed7c84-eadf-43da-8b8f-92c9bc911c81
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727290.0
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2021-10-22 00:00:00 UTC
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Investors in Denny's (NASDAQ:DENN) have made a respectable return of 51% over the past five years
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DENN
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https://www.nasdaq.com/articles/investors-in-dennys-nasdaq%3Adenn-have-made-a-respectable-return-of-51-over-the-past-five
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If you buy and hold a stock for many years, you'd hope to be making a profit. Furthermore, you'd generally like to see the share price rise faster than the market. Unfortunately for shareholders, while the Denny's Corporation (NASDAQ:DENN) share price is up 51% in the last five years, that's less than the market return. Some buyers are laughing, though, with an increase of 51% in the last year.
Let's take a look at the underlying fundamentals over the longer term, and see if they've been consistent with shareholders returns.
To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.
Over half a decade, Denny's managed to grow its earnings per share at 19% a year. This EPS growth is higher than the 9% average annual increase in the share price. So one could conclude that the broader market has become more cautious towards the stock.
The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).
NasdaqCM:DENN Earnings Per Share Growth October 22nd 2021
Dive deeper into Denny's' key metrics by checking this interactive graph of Denny's's earnings, revenue and cash flow.
A Different Perspective
It's good to see that Denny's has rewarded shareholders with a total shareholder return of 51% in the last twelve months. That gain is better than the annual TSR over five years, which is 9%. Therefore it seems like sentiment around the company has been positive lately. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. For instance, we've identified 4 warning signs for Denny's that you should be aware of.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Unfortunately for shareholders, while the Denny's Corporation (NASDAQ:DENN) share price is up 51% in the last five years, that's less than the market return. Over half a decade, Denny's managed to grow its earnings per share at 19% a year. NasdaqCM:DENN Earnings Per Share Growth October 22nd 2021 Dive deeper into Denny's' key metrics by checking this interactive graph of Denny's's earnings, revenue and cash flow.
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Unfortunately for shareholders, while the Denny's Corporation (NASDAQ:DENN) share price is up 51% in the last five years, that's less than the market return. Over half a decade, Denny's managed to grow its earnings per share at 19% a year. NasdaqCM:DENN Earnings Per Share Growth October 22nd 2021 Dive deeper into Denny's' key metrics by checking this interactive graph of Denny's's earnings, revenue and cash flow.
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Unfortunately for shareholders, while the Denny's Corporation (NASDAQ:DENN) share price is up 51% in the last five years, that's less than the market return. Over half a decade, Denny's managed to grow its earnings per share at 19% a year. NasdaqCM:DENN Earnings Per Share Growth October 22nd 2021 Dive deeper into Denny's' key metrics by checking this interactive graph of Denny's's earnings, revenue and cash flow.
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Unfortunately for shareholders, while the Denny's Corporation (NASDAQ:DENN) share price is up 51% in the last five years, that's less than the market return. Over half a decade, Denny's managed to grow its earnings per share at 19% a year. NasdaqCM:DENN Earnings Per Share Growth October 22nd 2021 Dive deeper into Denny's' key metrics by checking this interactive graph of Denny's's earnings, revenue and cash flow.
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25717483-086e-40e9-b14b-0aa508da7f06
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727291.0
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2021-09-26 00:00:00 UTC
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Estimating The Intrinsic Value Of Denny's Corporation (NASDAQ:DENN)
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DENN
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https://www.nasdaq.com/articles/estimating-the-intrinsic-value-of-dennys-corporation-nasdaq%3Adenn-2021-09-26
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Does the September share price for Denny's Corporation (NASDAQ:DENN) reflect what it's really worth? Today, we will estimate the stock's intrinsic value by estimating the company's future cash flows and discounting them to their present value. We will take advantage of the Discounted Cash Flow (DCF) model for this purpose. Before you think you won't be able to understand it, just read on! It's actually much less complex than you'd imagine.
Remember though, that there are many ways to estimate a company's value, and a DCF is just one method. If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in the Simply Wall St analysis model.
The method
We use what is known as a 2-stage model, which simply means we have two different periods of growth rates for the company's cash flows. Generally the first stage is higher growth, and the second stage is a lower growth phase. To begin with, we have to get estimates of the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years.
A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, and so the sum of these future cash flows is then discounted to today's value:
10-year free cash flow (FCF) estimate
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031
Levered FCF ($, Millions) US$69.0m US$70.6m US$74.1m US$73.3m US$73.2m US$73.5m US$74.2m US$75.2m US$76.3m US$77.5m
Growth Rate Estimate Source Analyst x2 Analyst x1 Analyst x1 Est @ -1.09% Est @ -0.17% Est @ 0.48% Est @ 0.93% Est @ 1.25% Est @ 1.47% Est @ 1.63%
Present Value ($, Millions) Discounted @ 8.5% US$63.6 US$59.9 US$58.0 US$52.9 US$48.7 US$45.1 US$41.9 US$39.1 US$36.6 US$34.3
("Est" = FCF growth rate estimated by Simply Wall St)
Present Value of 10-year Cash Flow (PVCF) = US$480m
After calculating the present value of future cash flows in the initial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. For a number of reasons a very conservative growth rate is used that cannot exceed that of a country's GDP growth. In this case we have used the 5-year average of the 10-year government bond yield (2.0%) to estimate future growth. In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 8.5%.
Terminal Value (TV)= FCF2031 × (1 + g) ÷ (r – g) = US$78m× (1 + 2.0%) ÷ (8.5%– 2.0%) = US$1.2b
Present Value of Terminal Value (PVTV)= TV / (1 + r)10= US$1.2b÷ ( 1 + 8.5%)10= US$537m
The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is US$1.0b. To get the intrinsic value per share, we divide this by the total number of shares outstanding. Compared to the current share price of US$16.5, the company appears around fair value at the time of writing. The assumptions in any calculation have a big impact on the valuation, so it is better to view this as a rough estimate, not precise down to the last cent.
NasdaqCM:DENN Discounted Cash Flow September 26th 2021
Important assumptions
We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows. Part of investing is coming up with your own evaluation of a company's future performance, so try the calculation yourself and check your own assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Denny's as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 8.5%, which is based on a levered beta of 1.380. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business.
Next Steps:
Although the valuation of a company is important, it shouldn't be the only metric you look at when researching a company. It's not possible to obtain a foolproof valuation with a DCF model. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" For instance, if the terminal value growth rate is adjusted slightly, it can dramatically alter the overall result. For Denny's, there are three essential items you should look at:
Risks: As an example, we've found 4 warning signs for Denny's that you need to consider before investing here.
Management:Have insiders been ramping up their shares to take advantage of the market's sentiment for DENN's future outlook? Check out our management and board analysis with insights on CEO compensation and governance factors.
Other Solid Businesses: Low debt, high returns on equity and good past performance are fundamental to a strong business. Why not explore our interactive list of stocks with solid business fundamentals to see if there are other companies you may not have considered!
PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the NASDAQCM every day. If you want to find the calculation for other stocks just search here.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Does the September share price for Denny's Corporation (NASDAQ:DENN) reflect what it's really worth? NasdaqCM:DENN Discounted Cash Flow September 26th 2021 Important assumptions We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows. Given that we are looking at Denny's as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt.
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NasdaqCM:DENN Discounted Cash Flow September 26th 2021 Important assumptions We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows. Does the September share price for Denny's Corporation (NASDAQ:DENN) reflect what it's really worth? Given that we are looking at Denny's as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt.
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NasdaqCM:DENN Discounted Cash Flow September 26th 2021 Important assumptions We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows. Does the September share price for Denny's Corporation (NASDAQ:DENN) reflect what it's really worth? Given that we are looking at Denny's as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt.
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Does the September share price for Denny's Corporation (NASDAQ:DENN) reflect what it's really worth? NasdaqCM:DENN Discounted Cash Flow September 26th 2021 Important assumptions We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows. Given that we are looking at Denny's as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt.
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10627709-4cda-4b02-8e84-a4bd65807bb2
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727292.0
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2021-09-24 00:00:00 UTC
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DENN Crosses Above Key Moving Average Level
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DENN
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https://www.nasdaq.com/articles/denn-crosses-above-key-moving-average-level-2021-09-24
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In trading on Friday, shares of Denny's Corp (Symbol: DENN) crossed above their 200 day moving average of $16.48, changing hands as high as $16.72 per share. Denny's Corp shares are currently trading up about 1.4% on the day. The chart below shows the one year performance of DENN shares, versus its 200 day moving average:
Looking at the chart above, DENN's low point in its 52 week range is $8.535 per share, with $20.02 as the 52 week high point — that compares with a last trade of $16.50.
Click here to find out which 9 other stocks recently crossed above their 200 day moving average »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Friday, shares of Denny's Corp (Symbol: DENN) crossed above their 200 day moving average of $16.48, changing hands as high as $16.72 per share. The chart below shows the one year performance of DENN shares, versus its 200 day moving average: Looking at the chart above, DENN's low point in its 52 week range is $8.535 per share, with $20.02 as the 52 week high point — that compares with a last trade of $16.50. Denny's Corp shares are currently trading up about 1.4% on the day.
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In trading on Friday, shares of Denny's Corp (Symbol: DENN) crossed above their 200 day moving average of $16.48, changing hands as high as $16.72 per share. The chart below shows the one year performance of DENN shares, versus its 200 day moving average: Looking at the chart above, DENN's low point in its 52 week range is $8.535 per share, with $20.02 as the 52 week high point — that compares with a last trade of $16.50. Denny's Corp shares are currently trading up about 1.4% on the day.
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In trading on Friday, shares of Denny's Corp (Symbol: DENN) crossed above their 200 day moving average of $16.48, changing hands as high as $16.72 per share. The chart below shows the one year performance of DENN shares, versus its 200 day moving average: Looking at the chart above, DENN's low point in its 52 week range is $8.535 per share, with $20.02 as the 52 week high point — that compares with a last trade of $16.50. Denny's Corp shares are currently trading up about 1.4% on the day.
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In trading on Friday, shares of Denny's Corp (Symbol: DENN) crossed above their 200 day moving average of $16.48, changing hands as high as $16.72 per share. Denny's Corp shares are currently trading up about 1.4% on the day. The chart below shows the one year performance of DENN shares, versus its 200 day moving average: Looking at the chart above, DENN's low point in its 52 week range is $8.535 per share, with $20.02 as the 52 week high point — that compares with a last trade of $16.50.
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1d70f8b5-0e5f-4417-b0eb-37c5809b42db
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727293.0
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2021-08-31 00:00:00 UTC
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Denny's Corporation (NASDAQ:DENN) insiders sold US$1.0m worth of stock, possibly signalling a downtrend
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DENN
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https://www.nasdaq.com/articles/dennys-corporation-nasdaq%3Adenn-insiders-sold-us%241.0m-worth-of-stock-possibly-signalling-a
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Denny's Corporation (NASDAQ:DENN) shareholders might have a reason to worry after multiple insiders sold their shares over the last year. When evaluating insider transactions, knowing whether insiders are buying versus if they selling is usually more beneficial, as the latter can be open to many interpretations. However, if numerous insiders are selling, shareholders should investigate more.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
The Last 12 Months Of Insider Transactions At Denny's
The Executive VP & Chief Brand Officer, John Dillon, made the biggest insider sale in the last 12 months. That single transaction was for US$373k worth of shares at a price of US$17.82 each. That means that an insider was selling shares at around the current price of US$16.31. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.
Denny's insiders didn't buy any shares over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
NasdaqCM:DENN Insider Trading Volume August 31st 2021
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
Insider Ownership of Denny's
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Denny's insiders own about US$36m worth of shares. That equates to 3.5% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About Denny's Insiders?
There haven't been any insider transactions in the last three months -- that doesn't mean much. Our analysis of Denny's insider transactions leaves us cautious. But it's good to see that insiders own shares in the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 3 warning signs for Denny's you should be aware of.
But note: Denny's may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Denny's Corporation (NASDAQ:DENN) shareholders might have a reason to worry after multiple insiders sold their shares over the last year. The Last 12 Months Of Insider Transactions At Denny's The Executive VP & Chief Brand Officer, John Dillon, made the biggest insider sale in the last 12 months. Denny's insiders didn't buy any shares over the last year.
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Denny's insiders didn't buy any shares over the last year. Denny's Corporation (NASDAQ:DENN) shareholders might have a reason to worry after multiple insiders sold their shares over the last year. The Last 12 Months Of Insider Transactions At Denny's The Executive VP & Chief Brand Officer, John Dillon, made the biggest insider sale in the last 12 months.
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NasdaqCM:DENN Insider Trading Volume August 31st 2021 If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. Insider Ownership of Denny's Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Denny's Corporation (NASDAQ:DENN) shareholders might have a reason to worry after multiple insiders sold their shares over the last year.
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Denny's insiders didn't buy any shares over the last year. But note: Denny's may not be the best stock to buy. Denny's Corporation (NASDAQ:DENN) shareholders might have a reason to worry after multiple insiders sold their shares over the last year.
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d901833b-3b6f-4339-9a98-d567b094a055
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727294.0
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2021-08-05 00:00:00 UTC
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Are Institutions Heavily Invested In Denny's Corporation's (NASDAQ:DENN) Shares?
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DENN
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https://www.nasdaq.com/articles/are-institutions-heavily-invested-in-dennys-corporations-nasdaq%3Adenn-shares-2021-08-05
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Every investor in Denny's Corporation (NASDAQ:DENN) should be aware of the most powerful shareholder groups. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. We also tend to see lower insider ownership in companies that were previously publicly owned.
Denny's has a market capitalization of US$953m, so we would expect some institutional investors to have noticed the stock. In the chart below, we can see that institutions are noticeable on the share registry. Let's take a closer look to see what the different types of shareholders can tell us about Denny's.
NasdaqCM:DENN Ownership Breakdown August 5th 2021
What Does The Institutional Ownership Tell Us About Denny's?
Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.
Denny's already has institutions on the share registry. Indeed, they own a respectable stake in the company. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Denny's' historic earnings and revenue below, but keep in mind there's always more to the story.
NasdaqCM:DENN Earnings and Revenue Growth August 5th 2021
Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. Hedge funds don't have many shares in Denny's. Our data shows that Franklin Resources, Inc. is the largest shareholder with 11% of shares outstanding. Wells Capital Management Incorporated is the second largest shareholder owning 10% of common stock, and BlackRock, Inc. holds about 7.2% of the company stock. Additionally, the company's CEO John Miller directly holds 1.1% of the total shares outstanding.
We did some more digging and found that 8 of the top shareholders account for roughly 50% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat.
While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.
Insider Ownership Of Denny's
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.
Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
We can see that insiders own shares in Denny's Corporation. As individuals, the insiders collectively own US$33m worth of the US$953m company. Some would say this shows alignment of interests between shareholders and the board. But it might be worth checking if those insiders have been selling.
General Public Ownership
The general public, with a 11% stake in the company, will not easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
Next Steps:
While it is well worth considering the different groups that own a company, there are other factors that are even more important. To that end, you should learn about the 4 warning signs we've spotted with Denny's (including 1 which is concerning) .
But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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NasdaqCM:DENN Earnings and Revenue Growth August 5th 2021 Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. Every investor in Denny's Corporation (NASDAQ:DENN) should be aware of the most powerful shareholder groups. Denny's has a market capitalization of US$953m, so we would expect some institutional investors to have noticed the stock.
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Every investor in Denny's Corporation (NASDAQ:DENN) should be aware of the most powerful shareholder groups. NasdaqCM:DENN Earnings and Revenue Growth August 5th 2021 Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. Denny's has a market capitalization of US$953m, so we would expect some institutional investors to have noticed the stock.
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Insider Ownership Of Denny's While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Every investor in Denny's Corporation (NASDAQ:DENN) should be aware of the most powerful shareholder groups. Denny's has a market capitalization of US$953m, so we would expect some institutional investors to have noticed the stock.
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Denny's has a market capitalization of US$953m, so we would expect some institutional investors to have noticed the stock. NasdaqCM:DENN Earnings and Revenue Growth August 5th 2021 Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. Every investor in Denny's Corporation (NASDAQ:DENN) should be aware of the most powerful shareholder groups.
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727295.0
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2021-08-04 00:00:00 UTC
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7 of the Best Restaurant Stocks to Buy Now as They Begin to Recover
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DENN
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https://www.nasdaq.com/articles/7-of-the-best-restaurant-stocks-to-buy-now-as-they-begin-to-recover-2021-08-04
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
At the start of the pandemic, few investments seemed as risky as restaurant stocks. According to research published by Harvard Business School, two months into the pandemic, 40% of American restaurants were closed and 8 million employees were out of a job. That was three times the job losses experienced by any other industry. The National Restaurant Association projected an industry revenue shortfall of $240 billion in 2020.
However, the restaurant industry also proved resilient. There were bankruptcies — including some well known, national chains — but many restaurants successfully pivoted to takeout and outdoor dining. Now, with the country re-opening, hard-hit sectors are recovering.
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Energy stocks have begun to rally. People returning to the office are picking up coffee again on their commute. Families are going to see movies. And these seven restaurant stocks are poised to benefit from the resurgence of dining out.
Brinker International, Inc. (NYSE:EAT)
Cheesecake Factory Inc (NASDAQ:CAKE)
Darden Restaurants, Inc. (NYSE:DRI)
Denny’s Corp (NASDAQ:DENN)
Ruth’s Hospitality Group, Inc. (NASDAQ:RUTH)
Shake Shack Inc (NYSE:SHAK)
Starbucks Corporation (NASDAQ:SBUX)
While times were tough last year, some of these restaurant chains are now stronger than ever and positioned to grow their business at a faster pace thanks to adaptations they put in place because of the pandemic.
Restaurant Stocks to Buy: Brinker International (EAT)
EAT)." width="300" height="169">
Source: James R. Martin/ShutterStock.com
Brinker International is the owner of several restaurant chains, the most notable being Chili’s. The company owns over 1,600 locations. Casual dining chains like Chili’s were hit hard by the pandemic. Families stopped going out to eat, people stopped going out at night for entertainment, and office workers stopped going out for lunch. With business travel at a standstill, there was no-one staying at airport hotels and looking for a familiar spot for a meal and a drink.
As the end of January 2020 approached, EAT shares were worth nearly $46. By March 20, they were below $10. However, Chili’s worked hard to adapt. The chain “took the dining room to the parking lot” and was selling $1 million a week in margaritas to-go. In its most recent earnings, Brinker reported revenue down slightly from a year ago, reflecting “the continued impact from the COVID-19 pandemic.” That news was a big part of EAT stock sliding from its 2021 (and all-time) high close of $77.77 in March, to its current price in the $54 range.
That price — just slightly above its 2021 open — offers opportunity. Restaurant stocks like EAT are expected to climb as the pandemic recovery continues.
At the time of publication, EAT stock was rated “B” in Portfolio Grader.
Cheesecake Factory (CAKE)
Source: Lester Balajadia / Shutterstock.com
Casual dining chain Cheesecake Factory was in real trouble in 2020. It was not only a sit-down restaurant chain, but most of its locations were in malls. The pandemic devastated dining room business and it killed off mall traffic — with many malls forced to close altogether during lockdowns.
After plunging last February, CAKE stock rallied, but then the company ran into an Securities and Exchange Commission investigation. The SEC ruled that Cheesecake Factory told investors its locations were “operating sustainably” when in fact it was losing $6 million a week and had told mall landlords it would stop paying rent.
The company reported its second-quarter 2021 earnings in July. Earnings and revenue beat estimates, thanks to indoor dining restrictions being lifted and its pandemic-kickstarted takeout operations performing well. Even now, takeout sales are double 2019 levels, which has opened up new business opportunity for this chain. The company even opened three new locations during the quarter. CAKE stock is currently trading in the $45 range, up 28% since the start of the year.
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The Portfolio Grader rating for CAKE stock is currently “B.”
Restaurant Stocks to Buy: Darden Restaurants (DRI)
Source: Sundry Photography / Shutterstock.com
Darden Restaurants owns several fine dining restaurant chains and a half dozen casual dining chains. The one most people know the company for is Olive Garden.
Darden is turning into a post-pandemic success story. When the company reported fiscal fourth-quarter results at the end of June, it beat analyst expectations for both earnings and revenue. Darden said that same-store sales for its restaurants had nearly returned to 2019, pre-pandemic levels. In addition, management projected fiscal 2022 sales will top pre-pandemic levels. Naturally, DRI stock popped on that news.
Darden was already a solid performer among restaurant stocks. DRI posted growth of 188% in the decade leading up to the pandemic. It tanked last March, but has been rallying since then. At this point, investors have seen a return of 25% since the start of 2021.
DRI stock currently earns a “B” rating in Portfolio Grader.
Denny’s (DENN)
Source: JHVEPhoto / Shutterstock.com
With a focus on breakfast (including an all-day breakfast menu), in-store dining and many locations located near transportation centers, Denny’s had a tougher time than many restaurants during the pandemic. Even last August — when many other restaurants had successfully pivoted to takeout — Denny’s was making lists of chains most likely to fail.
Denny’s survived, and by spring, DENN stock rallied to near February 2020 levels. However, shares have taken a hit again after the company announced a stock offering in July. At this point, Denny’s stock is up slightly in 2021. It has potential to rally again if re-opening continues, travel picks up and dining room breakfast is once again in demand.
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At the time of publication, DENN stock was rated “B” in Portfolio Grader.
Restaurant Stocks to Buy: Ruth’s Hospitality Group (RUTH)
Source: Jonathan Weiss / Shutterstock.com
The pandemic turned into the perfect storm for Ruth’s Hospitality Group, owner of the popular Ruth’s Chris steakhouse restaurants. Ruth’s Chris was focused on dining room service, not takeout. It had a large business clientele. The pandemic emptied out big city downtown districts and steamrolled business travel. That meant business lunches and dinners were done.
The company was forced to take dramatic steps to survive. This included closing 23 of its 135 U.S. Ruth’s Chris restaurants, with a focus on axing locations where takeout simply wasn’t viable. Staff were furloughed, while remaining staff and executives took pay cuts. In February 2020, RUTH shares were trading for over $22. Three weeks into March, they were approaching $4 — an 82% drop. The company even took a $20 million coronavirus Paycheck Protection loan, but ended up returning the money after public backlash.
Today, Ruth’s is in a much stronger position. Most of its restaurants are open, it has a takeout business that didn’t exist before the pandemic, and its financial situation is improving. In addition, the company is looking to the future with several new restaurants planned for this year and three or four more in 2022. As workers return to the office and business travel begins to return, the RUTH stock recovery (now up 386% from that March 2020 low) should gain steam.
The current Portfolio Grader rating for RUTH stock is “B.”
Shake Shack (SHAK)
Source: JHENG YAO / Shutterstock.com
Just like its home town of New York, Shake Shack was battered early on by the pandemic. While other burger chains were built around drive-throughs and thrived during lockdowns, Shake Shack locations were not. They were primarily located around urban downtowns and airports. Ground zero for business disruption. Shake Shack had to rely on curbside pickup and delivery services.
However, this company used the pandemic as a teaching moment to redesign its stores and it is in expansion mode. The first Shake Shack drive-though will open this year. In addition, the company says it plans to open up to 90 new locations in 2021 and 2022.
Currently trading at just over $100, SHAK stock is up 12% so far in 2021.
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SHAK stock currently rates a “B” in Portfolio Grader.
Restaurant Stocks to Buy: Starbucks (SBUX)
Source: Grand Warszawski / Shutterstock.com
Finally, the most ubiquitous chain on this list of restaurant stocks. With nearly 15,000 locations in the U.S., Starbucks has the country blanketed. Many of those locations are drive-throughs as well. Unfortunately for Starbucks, many companies opted to allow staff to work from home. That hammered coffee and snack sales at downtown locations, while also cutting sales at drive-through Starbucks stores as commuters left their cars in the garage.
In its first full quarter of the pandemic in 2020, the company said it had lost $3.2 billion in sales as a result.
It seems safe to say that the turnaround in Starbucks’ fortune is well underway. In its most recent quarter, the company reported revenue hit a record $7.5 billion. In the U.S., its same-store sales were up 83% year-over-year, and 10% over pre-pandemic levels. Starbucks kicked back into expansion mode as well, opening 352 net new stores during the quarter.
After a brief setback when the market crashed last March, SBUX stock quickly kicked back into growth mode. At this point, it’s up 14% in 2021. So far as restaurant stocks go, SBUX has been a model for long-term growth, with a trajectory that kicked off in 2009 and shows no sign of levelling off.
The current rating for SVUX stock in Portfolio Grader is “B.”
On the date of publication, Louis Navellier had a long position in DRI and EAT. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article. InvestorPlace Research Staff member primarily responsible for this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Louis Navellier, who has been called “one of the most important money managers of our time,” has broken the silence in this shocking “tell all” video… exposing one of the most shocking events in our country’s history… and the one move every American needs to make today.
The post 7 of the Best Restaurant Stocks to Buy Now as They Begin to Recover appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Brinker International, Inc. (NYSE:EAT) Cheesecake Factory Inc (NASDAQ:CAKE) Darden Restaurants, Inc. (NYSE:DRI) Denny’s Corp (NASDAQ:DENN) Ruth’s Hospitality Group, Inc. (NASDAQ:RUTH) Shake Shack Inc (NYSE:SHAK) Starbucks Corporation (NASDAQ:SBUX) While times were tough last year, some of these restaurant chains are now stronger than ever and positioned to grow their business at a faster pace thanks to adaptations they put in place because of the pandemic. Denny’s (DENN) Source: JHVEPhoto / Shutterstock.com With a focus on breakfast (including an all-day breakfast menu), in-store dining and many locations located near transportation centers, Denny’s had a tougher time than many restaurants during the pandemic. Even last August — when many other restaurants had successfully pivoted to takeout — Denny’s was making lists of chains most likely to fail.
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Brinker International, Inc. (NYSE:EAT) Cheesecake Factory Inc (NASDAQ:CAKE) Darden Restaurants, Inc. (NYSE:DRI) Denny’s Corp (NASDAQ:DENN) Ruth’s Hospitality Group, Inc. (NASDAQ:RUTH) Shake Shack Inc (NYSE:SHAK) Starbucks Corporation (NASDAQ:SBUX) While times were tough last year, some of these restaurant chains are now stronger than ever and positioned to grow their business at a faster pace thanks to adaptations they put in place because of the pandemic. Denny’s (DENN) Source: JHVEPhoto / Shutterstock.com With a focus on breakfast (including an all-day breakfast menu), in-store dining and many locations located near transportation centers, Denny’s had a tougher time than many restaurants during the pandemic. Even last August — when many other restaurants had successfully pivoted to takeout — Denny’s was making lists of chains most likely to fail.
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Brinker International, Inc. (NYSE:EAT) Cheesecake Factory Inc (NASDAQ:CAKE) Darden Restaurants, Inc. (NYSE:DRI) Denny’s Corp (NASDAQ:DENN) Ruth’s Hospitality Group, Inc. (NASDAQ:RUTH) Shake Shack Inc (NYSE:SHAK) Starbucks Corporation (NASDAQ:SBUX) While times were tough last year, some of these restaurant chains are now stronger than ever and positioned to grow their business at a faster pace thanks to adaptations they put in place because of the pandemic. Denny’s (DENN) Source: JHVEPhoto / Shutterstock.com With a focus on breakfast (including an all-day breakfast menu), in-store dining and many locations located near transportation centers, Denny’s had a tougher time than many restaurants during the pandemic. Even last August — when many other restaurants had successfully pivoted to takeout — Denny’s was making lists of chains most likely to fail.
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Brinker International, Inc. (NYSE:EAT) Cheesecake Factory Inc (NASDAQ:CAKE) Darden Restaurants, Inc. (NYSE:DRI) Denny’s Corp (NASDAQ:DENN) Ruth’s Hospitality Group, Inc. (NASDAQ:RUTH) Shake Shack Inc (NYSE:SHAK) Starbucks Corporation (NASDAQ:SBUX) While times were tough last year, some of these restaurant chains are now stronger than ever and positioned to grow their business at a faster pace thanks to adaptations they put in place because of the pandemic. Denny’s (DENN) Source: JHVEPhoto / Shutterstock.com With a focus on breakfast (including an all-day breakfast menu), in-store dining and many locations located near transportation centers, Denny’s had a tougher time than many restaurants during the pandemic. Even last August — when many other restaurants had successfully pivoted to takeout — Denny’s was making lists of chains most likely to fail.
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f04bfead-e964-4fd6-ac9b-f0c7d375fc5e
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727296.0
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2021-08-03 00:00:00 UTC
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Denny's Corp (DENN) Q2 2021 Earnings Call Transcript
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DENN
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https://www.nasdaq.com/articles/dennys-corp-denn-q2-2021-earnings-call-transcript-2021-08-04
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nan
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Image source: The Motley Fool.
Denny's Corp (NASDAQ: DENN)
Q2 2021 Earnings Call
Aug 3, 2021, 4:30 p.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Good day and welcome to the Denny's Corporation Q2 2021 Earnings Call. [Operator Instructions]
At this time I would like to turn the conference over to Curt Nichols Vice President of Investor Relations and Financial Planning and Analysis. Please go ahead.
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Curtis L. Nichols -- Vice President, Investor Relations and Financial Planning And Analysis
Thank you and good afternoon everyone. We appreciate you joining us for Denny's Second Quarter 2021 Earnings Conference Call. With me today from management are John Miller Denny's Chief Executive Officer; Mark Wolfinger Denny's President; and Robert Verostek Denny's Executive Vice President and Chief Financial Officer.
Please refer to our website at investor.dennys.com to find our second quarter earnings press release along with a reconciliation of any non-GAAP financial measures mentioned on the call today. This call is being webcast and an archive of the webcast will be available on our website for replay. John will begin today's call with a business update Mark will provide some comments around restaurant capacities our franchises in development and Robert will provide a recap of our second quarter financial results and prime trends.
After that we will open it up for questions. Before we begin let me remind you that in accordance with the safe harbor provision of the Private Securities Litigation Reform Act of 1995 the company notes that certain matters to be discussed by members of management during this call may constitute forward-looking statements. Management urges caution in considering its current trends and any outlook on earnings provided during this call.
Such statements are subject to risks uncertainties and other factors that may cause the actual performance of Denny's to be materially different from the performance indicated or implied by such statements. Such risks and factors are set forth in the company's most recent annual report on Form 10-K for the year ended December 30 2020 and in any subsequent Forms 8-K and quarterly reports on Form 10-Q.
With that I will now turn the call over to John Miller Denny's Chief Executive Officer.
John C. Miller -- Chief Executive Officer
Thank you Kurt and good afternoon everyone. I do hope that each of you have remained safe and healthy since we last shared an update on Denny's. And we are very encouraged by our second quarter domestic systemwide same-store sales results which achieved approximately 99% of 2019 levels despite staffing challenges that have hindered our ability to return to 24/7 operations across our system.
This performance included same-store sales of 1.9% above 2019 levels at our company restaurants for the second quarter as tourism and travel are gaining momentum. I'm even more encouraged by the stickiness of our Denny's base brand off-premise business which has grown from its pre-pandemic trend of 12% to over 20% during the second quarter. Additionally we are seeing an incremental 3% of average weekly sales through our two new virtual brands The Burger Den and The Meltdown.
We're very pleased the positive sales momentum continued in July with preliminary domestic systemwide same-store sales 2.7% above 2019 levels including 2.4% at domestic franchise locations and 6% at company locations. Furthermore approximately half of the domestic system generated positive sales in the month of July and each of our top four states were positive as well.
These results are a testament to the hard work and dedication of our teams safely welcoming guests back into our dining rooms while remaining focused on growing our off-premise business. Our teams have accomplished this while enduring industrywide staffing challenges that have impacted our ability to execute at our highest potential especially during our late-night daypart. However we are excited and encouraged by our recent Americas dining hiring tour.
We deployed our Mobile Relief Diner that typically supports people during hardships such as natural disasters to bring awareness to our hiring efforts. This week-long tour with our new career website that includes open positions for all company and franchise restaurants in one centralized location supported our efforts to recruit applicants for over 20000 open positions in our restaurants. We remain focused on our four key guest-centric themes these are reassurance value comfort and convenience and I'll now touch briefly on each of these.
As guests return to our restaurant it is more important than ever that we ensure the health and safety of our teams and guests. So we are committed to reassuring our guests that Denny's provides a safe dining experience by consistently executing our enhanced cleanliness and sanitation procedures at all consumer touch points. A point of great importance in light of recent surges in COVID cases across the country. And our second area of focus is value.
We understand that value comes in different forms and has a different meaning for each type of guest we consider our value approach to be a comprehensive balance between price abundance convenience and bundled value. And our third focus is comfort. We strive to ensure that Denny's is a place where our guests feel welcomed and valued.
Whether dining with a large family or as a party of one we believe our guests view the Denny's experience as a time to build connections in an environment that is both inviting and comfortable with consistent and reliable service. Our final area of consumer focus is convenience. We believe guests will continue to expect technology to bring enhanced value to their dining experience whether in our restaurants or through off-premise options like our well-established Denny's on demand platform of our and that is our two new virtual brands.
Our first virtual brand The Burger Den is live in over 1100 locations and allows us to focus on one of our strength great burgers with new varieties using ingredients that are already in the pantry. Our second virtual brand called The Meltdown is a Door Dash exclusive brand that features handcrafted sandwich melts with fresh ingredients and unique flavor combinations.
While this brand can utilize approximately 70% of the items currently in our pantry our innovative culinary teams have crafted new craveable products with the addition of some new premium ingredients. We started the rollout of The Meltdown in April to approximately half of our domestic system and expect to be substantially complete during the third quarter and Robert will give more specifics on the performance of these brands.
However we believe these transactions are highly incremental and leverage underutilized labor to maximize kitchen efficiency. Furthermore these brands provide opportunities not only at dinner and late-night to leverage underutilized labor and kitchen space but we're also seeing a meaningful number of transactions during the week versus the weekend. In closing it's amazing how far we have come since the beginning of the pandemic.
Many things have changed in the restaurant industry but one thing remains the same we're still the place where people come in sit down and connect with one another over great food. And despite near-term labor challenges that will subside in due course our sales have now surpassed pre-pandemic levels we have launched two new virtual brands driving incremental traffic during underutilized dayparts and we still believe there are market share opportunities on the horizon. We have an extraordinary group of dedicated franchises and an exceptional Denny's team which makes me very optimistic about the future of this brand.
With that I'd like to turn the call over now to Mark Wolfinger Denny's President to discuss more about our franchises and development.
F. Mark Wolfinger -- President
Thank you John. Our outstanding team and franchise system are driving a lot of exciting momentum for this iconic brand. I'm very pleased to say that beginning in May all of our operating domestic restaurants had opened dining rooms and we currently have an effective capacity of approximately 99%. We are eager to return to our historical position as America's 24-hour diner and have seen a 5% increase in effective operating hours since the beginning of the year to our current level of 19 hours per day.
We have worked with our franchise system franchise-by-franchise unit-by-unit to map out a plan to increase our effective operating hours per day assuming staffing challenges subside after the enhanced federal unemployment benefits end in September. Turning to development. Franchises opened three restaurants during the quarter including one international location in Canada. Additionally franchises closed seven restaurants during the quarter yielding a net decline of four restaurants during the quarter and five net closures year-to-date.
This does represent the lowest year-to-date closures we've had we've seen in over a decade. I'd now like to take a few moments to update you on the health of our franchise system. With off-premise sales remaining strong even as our dining rooms have reopened we are very pleased to see franchise profitability in July continue to improve as nearly 90% of our franchise restaurants exceeded the 70% of 2019 sales threshold required to cover both fixed and variable costs.
Additionally franchises represent approximately 98% all the domestic franchise restaurants have applied for the second round of PPP and approximately 90% of those restaurants have received funding to date. Improving sales additional federal stimulus available to franchises and the net decline of only five restaurants through June gives us confidence in our franchise systems' ability to prevail and emerge on the other side of the pandemic more focused and driven than ever.
We look forward to seeing this historic recovery unfold and returning to net restaurant growth in the future backed by our existing domestic and international development commitments including approximately 75 remaining commitments from our recently completed refranchising strategy. Additionally we believe there will be market share opportunities as the industry recovers. However with multiple rounds of federal stimulus that have assisted our franchises that remain open we believe these programs have also allowed other competitors to remain open.
Therefore the opportunities may not be as robust as once thought at the beginning of the pandemic. Nevertheless our development team is focused and has a proven record of converting existing spaces both inside and outside the restaurant industry into successful Denny's locations. In fact in the last 10 years approximately 60% of our openings have been conversions. These less capital-intensive opportunities provide enhanced ROIs for franchises and our experienced development team is already assessing the landscape for future Denny's locations.
I will now turn the call over to Robert Verostek Denny's Chief Financial Officer to discuss the quarterly performance. Robert?
Robert P. Verostek -- Executive Vice President, Chief Financial Officer
Thank you Mark and good afternoon everyone. I would now like to share a brief review of our second quarter results and current trends as well as our expectations for the third quarter. As a reminder I will be comparing our 2021 domestic systemwide same-store sales to 2019 as we believe this comparison will provide a more consistent and informative representation of our recovery. Additionally we will continue our standard practice of comparing to the 2020 prior year in our press release. Domestic systemwide same-store sales during the second quarter declined 1.2% compared to 2019. Sales results benefited primarily from reduced dine-in restrictions related to the COVID-19 pandemic. While closed dining rooms and capacity restrictions are no longer the leading factors weighing on our business industrywide staffing challenges remain.
As John mentioned the availability of labor continues to challenge our full return to 24-hour operations with approximately 40% of our domestic restaurants currently open 24/7. Domestic restaurants which were opened 24 hours in the second quarter delivered a same-store sales increase of approximately 12% versus 2019 compared to a decrease of approximately 10% at domestic restaurants operating with limited hours. We believe this performance differential presents an ongoing opportunity as a growing portion of our system extends its operating hours.
With that being said we are encouraged that preliminary domestic system-same systemwide same-store sales results for July increased 2.7% with approximately 60% of our domestic restaurants still operating with limited hours. Now I want to spend a few moments providing more detail on our virtual brands. As John mentioned we believe these transactions are highly incremental and leverage underutilized labor to maximize kitchen efficiency.
In fact approximately 70% of transactions from The Burger Den and approximately 60% of the transactions from The Meltdown occurred during the dinner and late-night dayparts compared to approximately 35% of transactions for the Denny's base brand. Not only are we leveraging underutilized dayparts but both virtual brands over-indexed during the weekdays compared to the Denny's base brand providing additional opportunities to leverage underutilized labor.
Approximately 75% of transactions from our virtual brands occurred during the weekdays compared to approximately 65% for the Denny's base brand. The Burger Den is live at over 1100 locations with an average check similar to a Denny's off-premise transaction. As dining rooms have reopened and initial priority given to new brands on third-party platforms has moderated these locations are generating average weekly sales per restaurant of approximately $600.
Nearly 700 locations are live with The Meltdown and are generating approximately $1200 in average weekly sales per restaurant with an average check similar to a Denny's off-premise transaction. These actions being highly incremental and over-indexing at dinner and late-night compared to Denny's base brand off-premise sales margins range from the mid-20s to the low 30% after considering product cost delivery fees and labor efficiencies. Turning to our second quarter results.
Franchise and license revenue increased 134.1% to $58.6 million primarily due to improving sales from reduced dine-in restrictions. Franchise operating margin was $29.9 million or 51% of franchise and license revenue compared to $9.8 million or 39.1% in the prior year quarter. This margin increase was primarily due to the improvement in sales performance at franchise restaurants partially offset by fewer equivalent units.
Company restaurant sales of $47.6 million were up 214.5% primarily due to the improvement in sales from reduced dine-in restrictions. Company restaurant operating margin was $9.8 million or 20.5% compared to a loss of $4.5 million or a negative 29.6% in the prior year quarter. This margin increase was primarily due to improving sales performance at company restaurants in addition to lower payroll and benefit costs due to staffing challenges.
Additionally we recorded approximately $600000 in favorable reserve adjustments and tax credits related to the CARES Act which benefited the company restaurant operating margin by approximately 1.3 percentage points. Total general and administrative expenses were $17.5 million compared to $13.2 million in the prior year quarter. This change was primarily due to increases in both performance-based incentive compensation and share-based compensation expense in addition to temporary cost reductions during the prior year quarter as well as approximately $500000 in tax credits related to the CARES Act.
These increases were partially offset by market valuation changes in our deferred compensation plan liabilities. As a reminder share-based compensation expense and market valuation changes are noncash items and do not impact adjusted EBITDA. These results collectively contribute to adjusted EBITDA of $25.3 million. The benefit from income taxes was $1.2 million with an ultimate effective income tax rate of 59.3%. Adjusted net income per share was $0.18 compared to adjusted net loss per share of $0.25 in the prior year quarter.
During the second quarter we generated adjusted free cash flow of $17.8 million after cash capital expenditures which included maintenance capital of $1.5 million compared to $1.7 million in the prior year quarter. We ended the quarter with approximately $195 million of total debt outstanding including $180 million borrowed under our credit facility. After considering cash on hand the remaining capacity under our credit facility and current liquidity covenants we had approximately $120 million of total available liquidity at the end of the second quarter. And we have continued to make progress. Subsequent to the end of the second quarter we paid down an additional $5 million on our revolving credit facility bringing our current outstanding balance to $175 million. The pandemic affirmed for us the value of a conservative leverage philosophy.
As such we are currently more comfortable with the range of between two time and three time adjusted EBITDA whereas prior to the pandemic we would have targeted longer-term leverage somewhere between three time and four time. Our quarter end total debt to adjusted EBITDA leverage ratio was 2.1x. This ratio was calculated using annualized adjusted EBITDA as defined in our prior year debt amendment. Our traditional LTM total debt to adjusted EBITDA ratio is 3.7x which is actually in compliance with our unamended credit facility we had in place prior to the pandemic.
As a reminder on December 15 2020 we entered into the third amendment to our existing credit facility. This reduced the revolver commitment to $375 million and an additional step down to $350 million took place on the first day of the third quarter of 2021. Financial maintenance covenants were waived through the first quarter of 2021 followed by the introduction of more favorable covenant levels in the second and third quarters of 2021.
Under the amendment capital expenditures are restricted to $12 million from mid-May 2020 through the third quarter of 2021. We have utilized approximately $6 million through the second quarter leaving an additional $6 million available. Additionally we are prohibited from paying dividends making stock repurchases and other general investments until we deliver our third quarter results. However we look forward to emerging from these constraints and continuing our long-standing practice of returning capital to shareholders while also investing in the business.
Turning to our business outlook. The following expectations for our fiscal third quarter ending September 29 2021 reflect management's expectations that the current economic environment will not materially change. We anticipate domestic systemwide same-store sales will be between 2% and 4% compared to the equivalent period in 2019. We are encouraged by the lower number of net unit closings year-to-date.
However due to labor availability challenges that are impacting the pace of openings as well as the requirement for franchises to remain open for a certain period of time to recognize the full benefit of PPP forgiveness we believe that it is a touch early to provide guidance on net unit expectations at this time. Additionally while our franchise margin is relatively stable due to the efficiency of our highly franchised model the exact timing and pace of restaffing and training new team members at company restaurants yields a less precise view into near-term company margin changes.
However pre-pandemic we guided to 18% to 19% company margins and we believe that target is still appropriate in a more stable environment. Our expectations for total general and administrative expenses are between 17 and $18 million including approximately $3.5 million related to share-based compensation which does not impact adjusted EBITDA. Based on the guidance I just described we are expecting adjusted EBITDA of between 22 and $24 million.
In closing as we work to overcome staffing challenges and move from our current 19 effective operating hours to our historic 24/7 operations we remain optimistic about our ongoing sales trends. Finally and most importantly I want to mention how proud I am of our franchises and the entire Denny's team who have remained focused on serving our guests while continuously managing the business needs through this post-pandemic recovery. That wraps up our prepared remarks.
I will now turn the call over to the operator to begin the Q&A portion of our call.
Questions and Answers:
Operator
Thank you. [Operator Instructions] Okay. So we will now take our first question from Nick Setyan at Wedbush Securities. Please go ahead.
Nick Setyan -- Wedbush Securities -- Analyst
Thank you. And congrats on some incredible numbers.
Robert P. Verostek -- Executive Vice President, Chief Financial Officer
Thanks Nick.
Nick Setyan -- Wedbush Securities -- Analyst
I guess first off just given the comparability versus 2019, it's a little difficult due to the refranchising that took place in 2019. Would you mind just telling us what the 6% comp in July on the company online translates to in terms of average lease resales?
Robert P. Verostek -- Executive Vice President, Chief Financial Officer
Hey Nick we're happy to get to that. If you look at the volumes, it's probably in the range of $18,000 on the year, sorry $180 million on the year. But let us work on that. And we'll give back to you on that. We don't want to give you the wrong number on that.
Nick Setyan -- Wedbush Securities -- Analyst
Okay sure. Okay. Sure. And then in terms of the 18% to 19% unit level margin commentary, is that applicable to the second half of this year? Or are we talking like longer term 2022?
Robert P. Verostek -- Executive Vice President, Chief Financial Officer
I think its fair Nick to say, it's probably a little longer term. If you look into the back half of the year, we still have some volatility with regard to that. If you look we're really looking to get staffed up frankly. And that will come both with additional labor expense as training comes back online. But as we staff up, we'll also have the benefits of more of these units coming online 24/7. So there's some volatility that will likely occur in the back half margins. But again, once we get into a little bit more stable environment, I think the 18% to 19% should hold pretty well.
Nick Setyan -- Wedbush Securities -- Analyst
And just last question. Just to follow-up on the labor line. I guess, maybe just give us some context in terms of how fast you are on the company on side relative to where you need to be? And then, just inflation expectations for the second half in terms of food cost versus, let's say, Q2?
John C. Miller -- Chief Executive Officer
Hey. Nick, its John. On the staffing side, just to follow-up on that tour. We did get about 13,000 applications from that hiring tour. We were seeking to hire about 20,000 people. And so, well you won't hire everybody out of all those applicants. It was a very promising tour. We were able to put a single website out there careers.dennys.com that really helped our franchises. So spirits are lifting up with the staffing challenges that we can close the gap on that. It did not materially change so far in terms of the number of 24-hour locations, but we are on our way and we expect that, as we work throughout August that continues to improve. And in September, we expect -- in October, we expect to fully close the gap. As far as to the other parts of your question, Robert, did you got those down?
Robert P. Verostek -- Executive Vice President, Chief Financial Officer
Yes, John. So we're talking in the room here. Nick, we're working on that AUV, the 6%, what that looks like. So, hopefully, prior to this call being over, we'll get it to you here shortly. Then with regard to the commodities on the back half of the year. So what we had seen with regards to commodities is, typically, we're in that 1% to 3% range, Nick. I will tell you that we were slightly above that range in Q2. And frankly, we expect to be in that -- kind of above that range for the back half of the year. But the reality is, we're not overly concerned with that overall. We think it's temporary, frankly, and we do believe that we'll have another pricing opportunity as we head into Q4. So that's -- it's not our biggest area of concern right now.
Nick Setyan -- Wedbush Securities -- Analyst
Great. Thank you very much.
Operator
Thank you. We now take our next question from Michael Tamas at Oppenheimer & Company. Please go ahead.
Michael Tamas -- Oppenheimer & Company -- Analyst
Hey. Thanks. Hope everyone is doing well. We currently see the business back above 2019 levels and that's obviously continuing to build in July. So the question is really on the sales guidance. I mean, you're already at 3% above, I think, in July and the guidance is for 2% to 4% for the third quarter, but I think you have some additional catalysts coming through particularly as you continue to rollout, I believe, The Burger Den is going to finish rolling out in this quarter. So I'm just wondering, how are you thinking about this third quarter, the rest of the quarter here? And you've factored any of the California stimulus payments into that guidance as well? Thanks.
Robert P. Verostek -- Executive Vice President, Chief Financial Officer
Hey, Michael, this is Robert. So, yes, with regard to that, I think, what you'll see within that 2% to 4% number is somewhat of a continuation of what we know today. Again, one of the things that we've learned over the course of this pandemic is things can change pretty rapidly. But the reality is and we'll kind of point to this, we see the 2.7%. And frankly, we have seen that remain fairly strong in -- given the current environment and given some of the talk about the volatility. So within that, I think, you would see us include everything that we've talked about frankly. You would see that the 700 -- you -- Meltdown units, the 1100 Burger Den units contained within there. And then that gradual build back toward the 24/7.
If you notice what we've seen when we -- since we spoke to you last from Q1 to Q2 is, we've made some progress with regard to the additional operating hours and we have a very developed plan with our franchises how to continue to move that forward. But I don't think it's going to be a step function forward. We're going to work through that very deliberately and build those sales and we just don't want to get ahead of ourselves.
Michael Tamas -- Oppenheimer & Company -- Analyst
That makes sense. Thanks. And then, just on those 24/7 units, can you just help me on first, maybe clarify when you're comparing with the table in the press release against the pre-COVID levels and those units are only down 7%. That's like-for-like, meaning those units had 24/7 service before now they don't. If you could just clarify that. And if that's the case, that doesn't seem that bad all things considered. And so what I'm wondering is, is there a chunk of franchises that either don't have to or would you be open to the option of them not going back to 24/7 service, using these virtual brands and having sales volumes that are very similar today to where they were pre-COVID when they were running with those 24/7 units? And then how does that compare from like a cash flow side of things? I'd imagine it's almost better from a cash flow perspective, if they were to just go on the virtual side of things and not be open 24/7 and potentially have a better margin or better process with 24/7 service. So just any thoughts there?
Robert P. Verostek -- Executive Vice President, Chief Financial Officer
Yes, Mike. Let me start there and then I'll turn it over to John. I'll take the more technical piece of that. Yes. With regards to the calculation with regard to those comps those are like-for-like. So you're looking at units that would have been 24/7 previously and now not and that's really the catalyst for them being down. But correspondingly and the thing that really bolsters us with regard to that daypart is it is a 24/7 to 24/7 comparison to the ones that are up 15% also. So that's the biggest move in late-night upward in the last decade, we were looking into that at least and we can't find a larger catalyst for late-night. But with regard to the second part, I'll pass that over to John Miller.
John C. Miller -- Chief Executive Officer
Well just simply to say that margins can be calculated in a lot of different ways percent margin you could be right. I'm not sure you are, that is a higher margin. The highest margin would be, if you were just open Saturday from 10 to 1. But the point of it is these overnight sales we're talking about 8-ish percent 8% to 10% difference in what the brand would be comping if all stores were on 24 hours versus not. There's a fairly significant flow through those dollars being open those hours. And remember we're an all-day menu place America's diner always open. That's been sort of our market positioning for many years. And then finally, if you're going to be open for 5:00 for breakfast and you are wrapping up around midnight, the night before the benefit to closing is not as powerful as you might think.
So it's really a staffing challenge. When we're fully staffed our franchises and our systems' committed to being a 24/7 brand. I would also say that we're getting high trial among Gen Z a little bit more of that late-night dinner and late-night daypart and more reluctant to get trial during the traditional breakfast and lunch daypart, the historical usage of family dining. So we don't want to miss the opportunity to have a high capture rate of these younger consumers through the late-night daypart.
Michael Tamas -- Oppenheimer & Company -- Analyst
Perfect. Thank you.
Robert P. Verostek -- Executive Vice President, Chief Financial Officer
Thanks, Michael.
Operator
Thank you. We take our next question from Jake Bartlett at Truist Securities. Please go ahead.
Jack -- Truist Securities -- Analyst
It's actually Jack [Phonetic] on for Jake. Thanks for taking my question. First, I wanted to ask about your trend in off-premise sales. It seems like the absolute level of off-premise sales is coming down here in June and July. I guess how much of that do you attribute to changing consumer habits as restrictions are easing versus some seasonality as maybe July is usually a lower off-premise month? And I guess where do you see the off-premise sales leveling out long=term? Or do you have a goal of where you want it to level out?
John C. Miller -- Chief Executive Officer
Well, of course, we'd like to continue to build business in all four dayparts breakfast lunch dinner late-night dine-in and take out. We don't have a limit per se. We'd like to grow profitable transactions where the consumer is going and we think that is not as mysterious as it used to be. There are -- there is a summer softness that's usually expected particularly you might have noted Burger Den, softened up a little bit.
We are told by our third-party delivery experts that was to be expected to some degree. They're used to seeing that seasonality where people are out and about more. They are dining out a little bit more but the third-party delivery burgers softens a little bit so they do expect some recovery of that a little later. And then part of this is, I think just people getting out and more and more restaurants opening and dining in a little bit more. So there's some softening. But remember we've gone from 12% to over 20% in our takeout business 2019 to 2021 it is very sticky. We expect -- a good portion of that is incremental with different younger audiences coming during the week versus the weekend.
And we expect that a considerable amount of that continues to persist as part of the new normal of how people trade their meals from takeout delivery and dine out away from home. So the summer softness does not -- we expected some of this as people dine-in a little bit more but we do expect it to be really sticky. I mean it's a great question. I think time will tell, what the more precise answer is. But we're ahead of where we expected and pleased to be retaining this amount of growth in business.
Jack -- Truist Securities -- Analyst
Okay. Great. That's helpful. And then I guess is there any sales trends you're seeing differently geographically still? Is California still trailing the rest of your system? Or has that come back very strong as that's reopened?
John C. Miller -- Chief Executive Officer
California sort of trailed in dine-in for a while but remember we were pretty -- during the pandemic it was tough, but remember leading up to the pandemic California we had nine consecutive years 2011 through 2019 of positive comps above the system and I believe 2012 through 2017 positive traffic out there still outperforming the system. And California is back to being our number one state in performance over these past few weeks. And then other strong states for us have been Nevada, Colorado, Texas, Florida, Hawaii those are some of our stronger performing states right now. But we've had -- I think we reported in the script that over half were positive during the quarter. So it does vary regionally, but California has certainly been a benefit and not a burden to the overall comp performance of the brand.
Jack -- Truist Securities -- Analyst
Great. Thank you.
Operator
Thank you. We will now take our next question from Jon Tower at Wells Fargo. Please go ahead.
Jon Tower -- Wells Fargo -- Analyst
Well, thanks. Hope, you can hear me? I am curious just to hear your response on, I believe California in particular might be imposing some new rules around animal welfare particularly that may impact pork based products in that market. And I'm curious to get your perspective on how you think this might impact your business? Do you actually see this proposition as being something that might get passed or sorry enforced in the state? Or do you think it's something that the federal government might step in and prevent that from happening anytime soon?
John C. Miller -- Chief Executive Officer
Sure. I'll give a point of view. Robert you might want to jump in here. I know we've had conversations with our supply chain team about this question. I don't know that I can say with certainty what the outcome will be long-term I'd say the near term-based on how we process and source pork, it's not a challenge for us short-term like you might think. And that could be explained in some fine points of detail perhaps later. But I'm not sure exactly all of the specifics that set us apart on being less concerned about that impact near-term. So, I don't want to speak out of turn here. Robert is there any other -- anything else to add to that?
Robert P. Verostek -- Executive Vice President, Chief Financial Officer
Hey John just in general not specifically related to the pork. I think you answered that. But I think the reality is we pay very close attention to all of those and we move in concert with what the markets can actually convey for instance with the egg issue and our commitment to get the cage-free eggs by 2026. So Prop 12 is for the raw product. All of our product is cooked. So, it won't impact us unless they change the law. So that's with regard to going back to the pork specifically but we do pay very close attention to all of that.
Jon Tower -- Wells Fargo -- Analyst
Got it. I appreciate that distinction at the end the raw versus the cooked product. So thank you. Just going into the real estate opportunity Rob, I think you mentioned on the call the idea that you weren't seeing the real estate opportunities you had expected I think even just a few months ago opening up. And would you say that's more restaurant specific sites? Or are you seeing this across retail potential locations that you thought might come up as conversions for franchises down the line? And even that level of closures haven't necessarily shown up the way that you had once anticipated?
F. Mark Wolfinger -- President
Yes. So, it's Mark. I'll try to address your question and maybe Robert and John may want to jump in here. But -- so in my script when I talked about that I was primarily referring to the restaurant sector. I'm glad you asked this question -- the broader question about retail. I would tell you and we've talked about this in the past is that from our standpoint if a trade area works the demand point works what we convert doesn't necessarily have to be a pre-existing restaurant. We've done retail conversions that have been very successful for our brand. So, we're primarily focused on the demand point. And again, to answer your question, I was primarily talking about the restaurant closures per piece, but clearly retail has also been heavily impacted as a result of the pandemic. So that does continue to create an opportunity for our brand.
Jon Tower -- Wells Fargo -- Analyst
Great. And just two more for me. On the 24-hour stores, 24/7 in the 2Q, I believe they were in plus 12% versus 2019. And stores that didn't have it were down pretty nicely. Aside from these stores being open 24/7, is there anything else that call out about these stores in terms of their ability to staff, maybe there's geographies that are better than others perhaps these stores have both of the virtual brands? And anything you can comment about those stores just outperforming? Or is it solely just the fact that they're 24/7?
John C. Miller -- Chief Executive Officer
I think -- those are some great questions. With anything circumstances and the timing of those play a role in where people are today and the trajectory of staffing hiring, where -- on the averages, it's always through 100 years ago, 100 years from now those stores that have really top-quality their managers do a really good job taking care of their crew and where they were newer or in transition, then those stores had a tougher time. They weren't as deeply established with a crew, where there was continuity of leadership there for a long period of time. So the stores have had stable management and stronger -- more tenure tended to have outperformed.
I'd say there's some correlation there. There's some correlation to the franchises that read into the pandemic a little bit more trouble weren't certain of PPP loans early on and we're more aggressive in furloughs or laying off than that cultural signal in their ranks. And so they struggled a little bit more than those that took the bet that all would be fine and protected management and keep positions in their restaurants and on their rosters. And so, there is some correlation there not just with our brand Denny's, but across the industry, depending on some of the staffing challenges. I think the strongest correlation though is just the neighborhood the store happens to be in, where some areas are richer with staffing opportunities and others are tougher and that would be I think the strongest correlator. We do again believe these are temporary and they're all solved through time.
Jon Tower -- Wells Fargo -- Analyst
Got it. And then just last one for me. Can you remind us, how you're marketing, the two virtual brands? And if there are any plans on the horizon to alter it if say today you're only doing it in digital channels if perhaps you start tagging it on to Denny's specific commercials?
John C. Miller -- Chief Executive Officer
All those things are in discussion all the time. We're testing and weighing the pros and the cons. We do believe there's benefit in having some of the product lines that have been especially popular on the core base brands in due time. We did update some of the melt sandwiches on our core menu last quarter. As a result they've performed really well for us. And so, we're studying those things all the time more to come on that. The advertising channels are really mostly through social media and/or the social pages associated with third-party delivery.
Jon Tower -- Wells Fargo -- Analyst
Thank you, very much.
Operator
Thank you. We will now take our next question from James Rutherford at Stephens. Please go ahead.
James Rutherford -- Stephens -- Analyst
Thanks very much and congrats on the improvement here. I just wanted to narrow down in on those units opened 24/7 that are comping up 15% versus 2019 levels. Can you give some detail about the components of that 15% growth, perhaps even directionally if you can speak to traffic versus check or new customers versus existing or dayparts or days of the week? Just trying to get as much detail as possible on the components of that growth. And the goal is to try to understand maybe how sustainable that mid-teens lift might be over time? Thank you.
John C. Miller -- Chief Executive Officer
Sure, James. That's a great question. As to sustainability, it's a bit early to comment on that. We're highly confident these are brands that will endure a while and they're not just a flash to sell some burgers and melts for the short period of time. They're quite popular and we get high marks from our third-party delivery vendors saying, this is the kind of product line they're looking for and we've even heard discussion about how they're dialing back the number of automatic takers that they just put on their platforms without evidence that the product will stand up over time.
So we're pleased with how they've been launched and confident of their enduring value. In terms of the rest of the answers, I wish I could give you some specifics. I think basically the 24/7 stores with both Burger Den and Meltdown outperform everybody. So there's a strong correlation to the number of hours open and being fully staffed and having quality management on staff and having the capacity to take on these new efforts. So they're going to do a little bit better on check. Obviously, discounting is out of favor and full-service right now until brands are fully staffed.
Said another way, we can't handle all the transactions. We aren't -- we don't have the dinings fully open. We're not 24/7. So, there's no particular reason to move transaction building to know that we don't have the servers to cover more shifts at the moment. But the -- all the way around, weekday breakfast, lunch, dinner, and late-night, I'd say the good news is especially strong mid-week and for The Meltdown and The Burger Den in terms of just outperforming the normal dine-in business in being both younger and a different time of the week. And then late-night has been very, very strong as a result of one being open with fewer options open out there in the marketplace and then also having these virtual brands. So, but -- on just about every metric across the board, it's sort of run of the board that the 24-hour stores are just categorically better. Not located better necessarily, but just performing better.
James Rutherford -- Stephens -- Analyst
Okay, perfect. One more and it's a question that we're starting to get, probably hard to answer but just as the cases have started to rise in certain parts of the country, have you seen much impact yet? Or do you think it's a situation where consumers have learned to live with it and are working around in some of the isolated restrictions and mask mandates and that type of thing?
John C. Miller -- Chief Executive Officer
Well, I think true to form, we carp and harp and you hear the people talking about the way that -- which the world was or the way the world ought to be, but it isn't right now. It's a challenging time for people. I think people are trying to sort out what will come next. It introduces a certain level of uncertainty. And so it's the conversation of pretty much every business every day to mask or not the mask. I think what you're seeing so far because we are talking about it a lot and watching it very closely is we're not really seeing any change whatsoever or if any, certainly immaterial, in any consumer behavior at this point. That's not to say they aren't concerned or thinking about it, but rather I think they're optimistic that they may go through some social distancing, some flexiglass put up between cash registers and consumers, some more tape on the floor to keep people far enough away and mask mandates and the like. But I think people are generally not expecting there to be shutdowns per se.
And so we're going about our business. I think people have more and more confidence that wherever these rises and spikes came from. They came from large events and 100,000 people gathering or beach parties and the like and not likely coming from responsible socially distance restaurants with servers in masks. So, I think my sense of it is while there will be discussion and concern and people will be watching carefully what happens over the next several weeks that the consumer behavior so far in particular in areas like California and other areas that maybe have a higher vaccination rate, the consumer confidence remains high to go out the eat in our -- and the support for Denny's continues to be strong in spite of the Delta version and mask mandates.
James Rutherford -- Stephens -- Analyst
Thank you. Always appreciate your perspective.
John C. Miller -- Chief Executive Officer
Thank you.
Operator
We will take our next question from Eric Gonzalez at KeyBanc Capital Markets. Please go ahead.
Eric Gonzalez -- KeyBanc Capital Markets -- Analyst
Hey thanks and congrats on the return to pre-pandemic trends. Just regarding the 24/7 units and the sustainability of those comps that was just discussed. I would imagine a lot of those businesses, particularly the independents that are in the same area might have more difficulty staffing than large ones like Denny's. So, is it possible that these units are perhaps overearning a bit by virtue of fact that you're the only game in town at those hours? I'm just trying to understand how those 24-hour units might perform as additional competition opens up in those trade areas.
John C. Miller -- Chief Executive Officer
Yes. We're certainly not the only game in town. We are one of the very few full-service games in town. But there are quite a number of options available including third-party delivery these days that did not exist before. So, we think instead what's happening is there's been a considerable reintroduction of the brand. People in trade areas where they ordered through third-party delivery and gave us a good old try for a burger and omelet or what have you that are less likely to be a dine-out customer at the breakfast daypart.
At lunch, they might be working at home on Teams or on Zoom. And -- but at dinner and late-night, they're going hey let's order out. And so I think we've been had the market opened up to us in a number of areas. And because we are open late to your point, but also not just because we're the only one open late, but because we've been a little bit rediscovered. People have -- remember, QSR went through the roof throughout the pandemic and full-service is fairly compromised, because it's diner shutdowns and the number of transactions. And so, with that comes a little bit more of a -- I don't know a cabin fever or an interest to try some full-service meals that are maybe different than a handheld drive through type of meal. And so with that, I think we have some stickiness that remains post-pandemic that's driving this transaction.
Eric Gonzalez -- KeyBanc Capital Markets -- Analyst
Sure. That's fair. On the -- if I can squeeze another one in. On the third quarter guidance, you touched on this earlier, but just wondering what are you assuming in terms of 24/7 units versus what you have today for that third quarter guidance? And then, as you think about the fourth quarter, do you expect to see a big uptick in 24/7 units with the supplemental unflown rolling off?
John C. Miller -- Chief Executive Officer
We believe it will progressively improve. We're not guiding precisely on the number of units that will convert just yet.
Eric Gonzalez -- KeyBanc Capital Markets -- Analyst
Okay. All right. That's fair. And then, lastly for me. How much price did you have or did your franchises have in the second quarter? And how are you advising into price going forward in the second half of the year? I think you mentioned in the fourth quarter, you were going to revisit it, but maybe if you can quantify that?
Robert P. Verostek -- Executive Vice President, Chief Financial Officer
So with regard to that -- hey, this is Robert again. We had -- within the comps the traffic is still breaking out the pieces the traffic is below 2019 levels. We haven't quoted a pricing number yet, but the pricing we do have slight pricing within that number. But one of the material components is the mix change that we benefited from throughout this year, with additional lunches and such. So really minimal pricing, a lot of mix traffic below 2019. And with regard to the second part of the question, I am maybe miss...
Eric Gonzalez -- KeyBanc Capital Markets -- Analyst
Just the pricing and how you think that...
Robert P. Verostek -- Executive Vice President, Chief Financial Officer
Yes. We got another opportunity for menu pricing here coming up as we head into the -- to Q4 and we're always balanced. We do take into account the commodity inflation to ensure that we're covering that. But we do believe now is the appropriate time to leverage all various aspects of our value to ensure that we are capturing traffic. That is the opportunity now. So, we won't underprice ourselves but we know that the opportunity is to capture the traffic.
Eric Gonzalez -- KeyBanc Capital Markets -- Analyst
And just so, on the same page when you say traffic on an off-premise order, do you count entrees or do you count one order versus an on-premise transaction that might have multiple guests or one guest per entree per guest?
John C. Miller -- Chief Executive Officer
Yes, that's a really good question. To be very specific, we count entrees as we -- for a measurement of our guest traffic.
Eric Gonzalez -- KeyBanc Capital Markets -- Analyst
Got it. Thank you.
John C. Miller -- Chief Executive Officer
Thank you.
Operator
Thank you. So we will now take our next question from Brett Levy at MKM Partners. Please go ahead.
Brett Levy -- MKM Partners -- Analyst
Great. Thanks for taking my call. You talked about -- you spent a good amount of time talking about 24/7, especially as it related to labor and your shortfall, and you talked about the success you had on your tour. What are you doing going forward? How often do you think you need to go out and make these pushes for grand gesture tours or really push the agenda to make sure you get -- you're getting more than your fair share of labor, because you're not the only ones who have gone out and tried to beat the bushes to scare off the snakes on labor? And what are you doing from an incentive standpoint, whether it's upfront incentives ongoing some kind of incentive for existing people?
John C. Miller -- Chief Executive Officer
That's a great question. The questions are asked often about wage incentive environment culture, a good place to work stay bonus hiring bonuses, upward mobility, education support, so just about everything you can imagine. Scaled organizations, like Denny's would have many of those kinds of programs in place. I should remind you that we've been awarded as one of the best places to work in South Carolina on multiple occasions. And so, we guard all those mirror check type items all the time. Is this a place I'd like to work as a starting place as a restart, as a career builder, as a jumping off place, and all the kinds that are important to attract the quality workforce.
All of those things are very challenging right now in this environment, which is a curious place to be. Again, we think they're overall temporary, but it's important that we continue. Any good company and the good companies we compete with are going to continue to be vigilant about holding and building and developing their staff and the career opportunities within their organization. Right now, our company historically and like many franchisors worry about joint employer challenges. And so we've had really hard lines between, our HR policy and what a franchise might do. There might be shared services, or we point people toward an outside council or guide, but we usually don't directly tell them, what their employee support program should look like, just what their outcome should be and how they run a store according to Denny's policies.
Today, we blur those lines a little more. We are more collaborative in our ability to say here's a website. Here's a Denny's website to help. Let's all recruit. Where we can share third-party services through a link, as we sure try to work really hard to make things easier and better from a technological standpoint to support our franchises in the system, to share best practices, or give them sources to find, or mine those best practices. So our Franchise Association Board recently met starting in-starting late last year, but all the way throughout this year. Many of the meeting topics have been focused around, marketwide hiring bonuses ways in which we can recruit share practices, share resumes if we aren't going to use this particular cook we'll share with another franchise down the block.
So a lot of those things are changing and becoming more institutionalized and formal inside our system, compared to a little bit more casual in the past. It was a great question. And I think we're doing a pretty good job of assisting our franchises to make sure they've evaluated their programs from starting wage to the rest of the programs and benefits they're offering. And I think our franchises are doing a nice job at retention. Just so you know in 2019, and I'd say most years prior to that, when you looked at our roster we had average tenure and turnover rates lower than most full service competitors. And so we would have been one of the better performers in the industry, and we'd like to be able to maintain that status coming out of the pandemic.
Brett Levy -- MKM Partners -- Analyst
And when you think about those areas that had been early in removing the enhanced unemployment benefits, have you seen any change in their ability to hire? Or is it just more the expectation that as they roll off and as we get past September that they'll improve?
John C. Miller -- Chief Executive Officer
Well, I think it's a lot of things. Some of this is-the challenges aren't just because there's incentives out there. There's also maybe a concern about being confident about the environment or having an elderly parent at-in home, and they're really nervous about being out. So there's really a number of things that abate through time, but not all at once. And so we're confident things do continue to improve. There's quite a number of people displaced and out of work, and working provides a better outcome than staying at home based on their historical personal household experience. So I would expect that those things will return in due time. But as it is today, a number of people came through the pandemic cut their expenses, and found different ways to make it through that environment. And so they're maybe not quite as ready to go back to work just yet. So, again, I think all these things abate in time. I don't think this is too different than what you're hearing across restaurants and retail. The answer is, time will tell. We're confident it normalizes but not-it doesn't happen like snapping your fingers. It's not yet. It's still a challenging hiring environment.
Brett Levy -- MKM Partners -- Analyst
And then one-just one last question, when you think about the talk of different markets out there introducing a mandatory vaccination-proof of mandatory vaccination to enter the restaurant. What do you think you'll need to do structurally? Is there going to be a dedicated position? How are you thinking about that from an operational standpoint?
John C. Miller -- Chief Executive Officer
Yeah. I think, we have in place the kind of supervisory controls and headcount. Remember from-the restaurant industry is already full of multiple layers of compliance. So when it comes to health and sanitation ServSafe compliance food safety handling. These aren't the kind of things you do on the ride to work per se. These of course, work that takes a while. It takes a considerable head space to pass, with a lot of really smart people that fail those classes. So we're good at institutionalizing those kinds of areas. So it's certainly not, that big a challenge for us to say show me evidence that you've been to a doctor or show me evidence that your hepatitis has gone or in this case, show me evidence that you've been vaccinated. I think we have to treat these things with a great deal of respect and honor, whatever the local jurisdictions are requiring. They do vary considerably across the country. And we have both customers and employee bases that will look to different authorities than us as the expert. So we have-we're managing that with great sensitivity. And I think that our system's doing a pretty good job of it.
Brett Levy -- MKM Partners -- Analyst
Thank you.
John C. Miller -- Chief Executive Officer
Go ahead, please.
Operator
[Operator Instructions]
Robert P. Verostek -- Executive Vice President, Chief Financial Officer
Yes. And as we're waiting to queue additional questions, I just want to follow-up with that question from Nick Setyan, earlier in the call, with regard to how the 6% same-store sales increased for company units in the month of July, translated into average unit volumes in the comparison to 2019 to 2021. In 2019, those set of company units were running approximately $2.9 million annual unit volumes or roughly $57,000 per week. That would translate into an annual run-rate of $3.1 million or approximately $60,000 a week. So that is the-how to convert that 6% comp into an AUV from a refranchised year to a non-refranchised year. So I just wanted to follow-up with that. Thank you.
Operator
Thank you. It looks like that is all the questions we have for today's call. So I would now like to turn the call up over to John Miller, for any additional or closing remarks.
John C. Miller -- Chief Executive Officer
Thank you, all for joining the call today. We are very pleased with the progress we've made through the pandemic and we have started navigating the recovery, as you can tell. The demand for Denny's is strong, with same-store sales currently trending above pre-pandemic 2019 levels, even with only 40% of our domestic system operating 24/7. And we safely welcome guests back into our dine-in rooms. Our off-premise business has remained sticky and supported by the launch of two new virtual brands. So we are actively working to address the temporary staffing challenges, which we believe will abate, as I've mentioned before, as we move through the balance of the year and we see additional potential for our brand based on the performance of those restaurants already operating 24-hours a day, seven days a week.
We were encouraged by the level of adjusted EBITDA and adjusted free cash flow generated by our highly franchised business model during the second quarter and we look forward to the opportunity to begin returning capital to shareholders later this year, while advancing our long-term brand revitalization strategy. So we look forward to our nextearnings conference callin early November to discuss our third quarter 2021 results. Thank you again for your time today and all have a great evening.
Operator
[Operator Closing Remarks]
Duration: 63 minutes
Call participants:
Curtis L. Nichols -- Vice President, Investor Relations and Financial Planning And Analysis
John C. Miller -- Chief Executive Officer
F. Mark Wolfinger -- President
Robert P. Verostek -- Executive Vice President, Chief Financial Officer
Nick Setyan -- Wedbush Securities -- Analyst
Michael Tamas -- Oppenheimer & Company -- Analyst
Jack -- Truist Securities -- Analyst
Jon Tower -- Wells Fargo -- Analyst
James Rutherford -- Stephens -- Analyst
Eric Gonzalez -- KeyBanc Capital Markets -- Analyst
Brett Levy -- MKM Partners -- Analyst
More DENN analysis
All earnings call transcripts
This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability.
The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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These actions being highly incremental and over-indexing at dinner and late-night compared to Denny's base brand off-premise sales margins range from the mid-20s to the low 30% after considering product cost delivery fees and labor efficiencies. Denny's Corp (NASDAQ: DENN) Q2 2021 Earnings Call Aug 3, 2021, 4:30 p.m. ET Contents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks: Operator Good day and welcome to the Denny's Corporation Q2 2021 Earnings Call.
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With me today from management are John Miller Denny's Chief Executive Officer; Mark Wolfinger Denny's President; and Robert Verostek Denny's Executive Vice President and Chief Financial Officer. Operator [Operator Closing Remarks] Duration: 63 minutes Call participants: Curtis L. Nichols -- Vice President, Investor Relations and Financial Planning And Analysis John C. Miller -- Chief Executive Officer F. Mark Wolfinger -- President Robert P. Verostek -- Executive Vice President, Chief Financial Officer Nick Setyan -- Wedbush Securities -- Analyst Michael Tamas -- Oppenheimer & Company -- Analyst Jack -- Truist Securities -- Analyst Jon Tower -- Wells Fargo -- Analyst James Rutherford -- Stephens -- Analyst Eric Gonzalez -- KeyBanc Capital Markets -- Analyst Brett Levy -- MKM Partners -- Analyst More DENN analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Denny's Corp (NASDAQ: DENN) Q2 2021 Earnings Call Aug 3, 2021, 4:30 p.m.
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With me today from management are John Miller Denny's Chief Executive Officer; Mark Wolfinger Denny's President; and Robert Verostek Denny's Executive Vice President and Chief Financial Officer. Operator [Operator Closing Remarks] Duration: 63 minutes Call participants: Curtis L. Nichols -- Vice President, Investor Relations and Financial Planning And Analysis John C. Miller -- Chief Executive Officer F. Mark Wolfinger -- President Robert P. Verostek -- Executive Vice President, Chief Financial Officer Nick Setyan -- Wedbush Securities -- Analyst Michael Tamas -- Oppenheimer & Company -- Analyst Jack -- Truist Securities -- Analyst Jon Tower -- Wells Fargo -- Analyst James Rutherford -- Stephens -- Analyst Eric Gonzalez -- KeyBanc Capital Markets -- Analyst Brett Levy -- MKM Partners -- Analyst More DENN analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Denny's Corp (NASDAQ: DENN) Q2 2021 Earnings Call Aug 3, 2021, 4:30 p.m.
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I will now turn the call over to Robert Verostek Denny's Chief Financial Officer to discuss the quarterly performance. Operator [Operator Closing Remarks] Duration: 63 minutes Call participants: Curtis L. Nichols -- Vice President, Investor Relations and Financial Planning And Analysis John C. Miller -- Chief Executive Officer F. Mark Wolfinger -- President Robert P. Verostek -- Executive Vice President, Chief Financial Officer Nick Setyan -- Wedbush Securities -- Analyst Michael Tamas -- Oppenheimer & Company -- Analyst Jack -- Truist Securities -- Analyst Jon Tower -- Wells Fargo -- Analyst James Rutherford -- Stephens -- Analyst Eric Gonzalez -- KeyBanc Capital Markets -- Analyst Brett Levy -- MKM Partners -- Analyst More DENN analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Denny's Corp (NASDAQ: DENN) Q2 2021 Earnings Call Aug 3, 2021, 4:30 p.m.
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68bc3973-f4ea-4324-b4ea-f55650b0b0d3
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727297.0
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2021-07-26 00:00:00 UTC
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Is This the Biggest Announcement Beyond Meat Has Made Yet?
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DENN
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https://www.nasdaq.com/articles/is-this-the-biggest-announcement-beyond-meat-has-made-yet-2021-07-26
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nan
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nan
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Beyond Meat (NASDAQ: BYND) is a company that produces and sells plant-based meats (products made from vegetables designed to mimic the feel and taste of animal protein) to food-service chains and grocery stores. Most revenue currently comes from its alternative beef products. But on July 8, the company announced it was launching a chicken alternative called Beyond Chicken Tenders.
In this video from Motley Fool Live, recorded on July 13, Fool contributor Jon Quast explains to fellow contributor Toby Bordelon why he believes this is Beyond Meat's biggest product announcement since the company went public in 2019.
10 stocks we like better than Beyond Meat, Inc.
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
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*Stock Advisor returns as of June 7, 2021
Jon Quast: This was really interesting. It's an announcement I've been waiting on for quite some time. They announced that they are launching Beyond Chicken Tenders. So if you know Beyond Meat, they primarily generate revenue from sales of their Beyond Burger. You can go to various fast food places, you can go to the grocery store and get the plant-based beef substitute. Now, they are launching Beyond Chicken Tenders. They've run a test with KFC [owned by Yum! Brands] last year before the pandemic. Because of the pandemic, they said it's not really the time for us to be launching a new thing, but now they're launching this Beyond Chicken Tenders into 400 independent restaurants around the country.
Why I think that this is the most significant announcement they've made as a public company is, remember that Beyond Meat started with chicken. University of Missouri had the tech. Ethan Brown, the founder of Beyond Meat licensed the technology to create a chicken product for grocery stores before the company came public. Then Beyond Burger was so successful that eventually they canceled their chicken line prior to coming public. In the months prior to coming public, they said the recipe wasn't quite right. So they've been working on this behind the scenes now for a few years and now they're relaunching it.
To me, that tells me that management has been working on this for a very long time and they feel like they have finally gotten it right. That tells me that I think this is going to be a compelling product. When you look at global meat consumption, chicken is the most consumed protein out there by a mile. This is optionality for Beyond Meat.
Why it's important is, for Beyond Meat to work out as an investment, they trade at something like 20 times their trailing sales. That is very expensive for a company with 30% gross margins. It may be not so crazy for a company like The Trade Desk where it's way up there, I don't know what it is, 80% gross margin? Beyond Meat down at 30 percent gross margin trading at 21, 20 times sales, that's a big deal. They need to grow that revenue. If they can launch into a completely new animal category with plant-based chicken, it's a chance to grow that revenue in a very big way.
Toby Bordelon: Thank you, Jon. I followed this. I used to be vegetarian back in the day, so when this came public I was interested to see if they could. I went from vegetarian, went on a road trip through Texas, had some barbecue [laughs] and then I was wondering if Beyond Meat, would, and Impossible [Foods] the other, would turn me back. But it hasn't yet. Their stuff is good. I think it's definitely a step above what's come before, but it's not enough. I still come back to the price too. It seems expensive.
Quast: Yeah.
Bordelon: But the brand is well known. They're doing really good stuff and this chicken is really interesting.
Quast: And they are targeting people more like me who is not a vegetarian, right?
Bordelon: Yeah, right. They are targeting people who maybe want to eat a little bit healthier or just want to mix it up a little bit. Don't necessarily strict vegetarians. It's pretty close. I think you've had the stuff, I'm assuming.
Quast: Yeah. Correct. The first time I had it, was right after Beyond Meat went public and I think they're headed at Denny's. I went just because it sounded so ridiculous. I just wanted to prove to myself that it was ridiculous and I actually liked it. That's when I started looking into the company more and I bought a little bit when the market crashed in 2020. So I'm a small shareholder.
Jon Quast owns shares of Beyond Meat, Inc. Toby Bordelon owns shares of The Trade Desk. The Motley Fool owns shares of and recommends Beyond Meat, Inc. and The Trade Desk. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The first time I had it, was right after Beyond Meat went public and I think they're headed at Denny's. Ethan Brown, the founder of Beyond Meat licensed the technology to create a chicken product for grocery stores before the company came public. If they can launch into a completely new animal category with plant-based chicken, it's a chance to grow that revenue in a very big way.
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The first time I had it, was right after Beyond Meat went public and I think they're headed at Denny's. But on July 8, the company announced it was launching a chicken alternative called Beyond Chicken Tenders. In this video from Motley Fool Live, recorded on July 13, Fool contributor Jon Quast explains to fellow contributor Toby Bordelon why he believes this is Beyond Meat's biggest product announcement since the company went public in 2019.
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The first time I had it, was right after Beyond Meat went public and I think they're headed at Denny's. Beyond Meat (NASDAQ: BYND) is a company that produces and sells plant-based meats (products made from vegetables designed to mimic the feel and taste of animal protein) to food-service chains and grocery stores. In this video from Motley Fool Live, recorded on July 13, Fool contributor Jon Quast explains to fellow contributor Toby Bordelon why he believes this is Beyond Meat's biggest product announcement since the company went public in 2019.
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The first time I had it, was right after Beyond Meat went public and I think they're headed at Denny's. 10 stocks we like better than Beyond Meat, Inc. See the 10 stocks *Stock Advisor returns as of June 7, 2021 Jon Quast: This was really interesting.
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26b75435-aca3-4577-9ee7-9700901b4444
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727298.0
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2021-07-22 00:00:00 UTC
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3 Reasons Docebo Could Bring Big Returns
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DENN
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https://www.nasdaq.com/articles/3-reasons-docebo-could-bring-big-returns-2021-07-22
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nan
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nan
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Training employees is more challenging than ever because of the rise in remote work brought on by the pandemic. Learning platform Docebo (NASDAQ: DCBO) helps businesses train their staff in an increasingly digital workplace, and investors looking for A-plus returns might want to consider these three reasons to like the stock.
1. Employers need better training tools
Employees can account for up to half of a company's spending, making people an important business asset. Filling a job opening can cost many months of salary, so effectively teaching and certifying employees can make a difference in a company's bottom line.
Remote work increased significantly during the pandemic, and as many as 75% of employees now desire work-from-home options, making it even harder for large organizations to train them.
Image source: Getty Images.
According to a study by Fosway Group, a human-resources industry analyst, 94% of learning and development professionals are reconsidering their approach to employee training following COVID-19, a sign that companies are adapting to attract and keep talent.
2. A platform that makes learning digital
The Docebo Learning Suite helps businesses train employees with software tools that cover every phase of education, including:
Creation: making content using artificial intelligence (AI) via Docebo's Shape module.
Learning management system: Docebo's LMS, dubbed "Learn," handles course enrollment and lesson delivery.
Discover, coach, and share: enabling employees to share knowledge and expertise.
Learning impact: feedback on lessons.
Learning analytics: analyzing data to make better decisions.
Docebo works with more than 2,300 customers, including Amazon Web Services, Thomson Reuters, Hewlett Packard Enterprise, Heineken, and Denny's.
Its software is cloud-based, so employees can access it regardless of their location, and implement it quickly. Docebo highlighted a customer case study that created 3,037 courses across 26 countries in 11 languages and implemented the program in just four months.
Many competitors exist in the Learning Management System (LMS) market, but Docebo has innovated to differentiate itself. CEO Claudio Erba implements technology in every phase of his business.
It began operating as a cloud-based product back in 2012 and has been using machine learning and AI since 2018. Fosway Group has named Docebo an industry "core leader" from 2019-2021, and recurring revenue has grown by 65% per year from 2016 to 2020, more than twice the industry's rate.
3. An efficient business that can create profits
Docebo's business is based on customer subscriptions, so recurring revenue tells us how the business looks going forward. Recurring revenue grew 62% year over year in the first quarter of 2021, indicating that revenue growth continues to be as strong as in the past several years.
Docebo's growth has been efficient, burning just $9 million in cash while recurring revenue grew from $11 million in 2016 to $74 million in 2020. The business generates strong 82% gross margins, and it was cash flow positive for the first time in 2020.
The company spent 38% of its revenue on sales and marketing in 2020, causing a loss. However, Docebo's customers consistently spend more each year, and the average contract size has tripled in value since 2016. Investors will want to look for Docebo's high margins to push it toward profitability as revenue grows.
Is Docebo a buy today?
The stock trades at 27 times sales, a reasonable valuation considering Docebo's 62% growth and 82% gross margins. A research group projects the LMS market to grow 21% per year to roughly $30 billion by 2025, putting Docebo in a position to grow beyond its $2 billion market cap.
The company looks to be doing the right things. Still, investors need to pay attention to its sales and marketing expenses to see that it can become profitable. If Docebo can do that and grow simultaneously, the stock could be top of the class for investors.
10 stocks we like better than Docebo Inc.
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Docebo Inc. wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of June 7, 2021
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Justin Pope owns shares of Docebo Inc. The Motley Fool owns shares of and recommends Amazon and Docebo Inc. The Motley Fool recommends the following options: long January 2022 $1,920 calls on Amazon and short January 2022 $1,940 calls on Amazon. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Docebo works with more than 2,300 customers, including Amazon Web Services, Thomson Reuters, Hewlett Packard Enterprise, Heineken, and Denny's. Learning platform Docebo (NASDAQ: DCBO) helps businesses train their staff in an increasingly digital workplace, and investors looking for A-plus returns might want to consider these three reasons to like the stock. Filling a job opening can cost many months of salary, so effectively teaching and certifying employees can make a difference in a company's bottom line.
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Docebo works with more than 2,300 customers, including Amazon Web Services, Thomson Reuters, Hewlett Packard Enterprise, Heineken, and Denny's. Learning platform Docebo (NASDAQ: DCBO) helps businesses train their staff in an increasingly digital workplace, and investors looking for A-plus returns might want to consider these three reasons to like the stock. A platform that makes learning digital The Docebo Learning Suite helps businesses train employees with software tools that cover every phase of education, including: Creation: making content using artificial intelligence (AI) via Docebo's Shape module.
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Docebo works with more than 2,300 customers, including Amazon Web Services, Thomson Reuters, Hewlett Packard Enterprise, Heineken, and Denny's. Learning platform Docebo (NASDAQ: DCBO) helps businesses train their staff in an increasingly digital workplace, and investors looking for A-plus returns might want to consider these three reasons to like the stock. A platform that makes learning digital The Docebo Learning Suite helps businesses train employees with software tools that cover every phase of education, including: Creation: making content using artificial intelligence (AI) via Docebo's Shape module.
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Docebo works with more than 2,300 customers, including Amazon Web Services, Thomson Reuters, Hewlett Packard Enterprise, Heineken, and Denny's. A platform that makes learning digital The Docebo Learning Suite helps businesses train employees with software tools that cover every phase of education, including: Creation: making content using artificial intelligence (AI) via Docebo's Shape module. An efficient business that can create profits Docebo's business is based on customer subscriptions, so recurring revenue tells us how the business looks going forward.
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17c1bac6-ff2c-4c83-967a-f657518440e8
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727299.0
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2021-05-13 00:00:00 UTC
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7 Retail Stocks to Buy If You’re Optimistic About the Economy
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DENN
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https://www.nasdaq.com/articles/7-retail-stocks-to-buy-if-youre-optimistic-about-the-economy-2021-05-13
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Following the initial onslaught of the novel coronavirus retail stocks were among the hardest-hit. As the pandemic rippled from coast to coast, panicked state governors shut down non-essential activities in a desperate bid to contain the outbreak. Naturally, there was only one place for businesses dependent on consumer sentiment to go: down.
However, thanks in no small part to the impressive vaccine rollout, retail stocks have once again shown signs of life. New Covid-19 cases have declined sharply from their peak levels in January of this year, enabling state governments to reopen. While basic mitigation protocols remain in effect, American society is gradually starting to feel like normal again. If the trend continues, this will bode very well for retail stocks.
Better yet, investors looking to bank off the return of commerce have excellent data to back up their optimism. In March, retail sales jumped 9.8% according to information from the U.S. Department of Commerce. According to a report from npr.org, “[t]he surge is being fueled by shoppers flush with cash from $1,400 dollar relief payments, and in some cases, by the feeling of newfound security from a fresh vaccine.” Again, this is a net positive for retail stocks.
Admittedly, though, it’s not all fun and games for the sector. Before you buy into retail stocks, you should note that the personal saving rate is near all-time highs as of the latest read. In my view, this represents deflationary risk as it suggests people are saving money for a rainy day. Further evidence comes from money velocity, which is down near all-time lows.
7 Great Growth Stocks to Consider for Your Short List
Still, you can make the argument that for the near to intermediate term, Americans are ready to regain some normalcy into their lives. And what could be better than good old fashioned retail therapy? Therefore, if you’re willing to stomach some risk, here are retail stocks you may wish to consider.
CarMax (NYSE:KMX)
Best Buy (NYSE:BBY)
Home Depot (NYSE:HD)
Amazon (NASDAQ:AMZN)
Denny’s (NASDAQ:DENN)
Signet Jewelers (NYSE:SIG)
Nordstrom (NYSE:JWN)
Despite many encouraging signs, you should keep in mind that our economic recovery is fragile. As I was writing this, I learned about the cyberattack on Colonial Pipeline, which could have severe implications on commercial activity depending on the extent of the damage. The point is that if you’re going to bet on retail stocks, please do so carefully.
Retail Stocks: CarMax (KMX)
KMX) sign on a storefront" width="300" height="169">
Source: Jonathan Weiss / Shutterstock.com
I don’t like to share anecdotal or personal observations as they tend not to be the strongest forms of evidence. Nevertheless, with CarMax, I’ll bet that you’ll find this observation quite insightful.
Over the last few weeks, I was looking to sell one of my cars. I had been using it as a beater and as an emergency option. However, since I have another beater, having two emergency options made no sense. With Covid-19 wreaking havoc on supply chains, suddenly, even my junkiest of junkers was worth some coin.
CarMax gave me an almost ridiculously high offer — much higher than what major dealerships offered. But I couldn’t sell on the day of my appraisal. Turns out, you need to wait for hours to sell your car and there’s a daily capacity limit that CarMax reaches all the time.
When I asked why I couldn’t sell it that day, I was told that due to tax season and the Covid relief checks, consumers are selling their old vehicles and getting into new ones. Frankly, I find this remarkable given the uncertainties of the new normal. Still, KMX stock has been killing it this year. Now you know why.
This is one of the retail stocks where you might not want to fight the tape. Demand is strong and may continue to be that way throughout this year.
Best Buy (BBY)
Source: Jonathan Weiss / Shutterstock.com
I might be seeing things. However, when you look at the technical chart for Best Buy between mid-February of this year until the present time, it certainly seems as if BBY stock printed a cup-and-handle formation. If my interpretation is correct, we’re still relatively early in this trading setup. This suggests that BBY is one of the more compelling retail stocks to consider.
Of course, you don’t want to rely on my interpretive abilities to determine whether you should take a shot. Therefore, I encourage you to look at its fundamentals. In the quarter ended January 31, 2021, the company generated $16.9 billion in revenue, up over 11% from the year-ago level. For the year, it rang up $47.3 billion, up 8% from the prior year’s tally. That’s impressive considering the pandemic’s disruption.
To be fair, many worker bees found a reason to purchase products from Best Buy during the lockdowns. First, there was necessity to upgrade their home office. Second, Best Buy provided retail therapy through entertainment offerings like video games.
7 Equity Crowdfunding Offerings Worth Your Investment ASAP
Moving forward, pent-up demand combined with an uptick in the gig economy could make BBY among the more profitable retail stocks.
Retail Stocks: Home Depot (HD)
HD) storefront on a sunny day" width="300" height="169">
Source: Jonathan Weiss / Shutterstock.com
Typically, when you think about pent-up consumer demand that will benefit retail stocks, Home Depot isn’t exactly what you have in mind. Instead, you’re more than likely thinking about discretionary retailers that offer products that people want to buy. PVC pipes and adhesives don’t exactly get the blood going unless you’re working in one of the trades.
Also, you’ve got consider the record-breaking surge for lumber. Global supply chain disruptions, along with unprecedented demand for real estate has contributed to an unprecedented situation where everything of significance has reached peak valuation. But that might contribute to sticker shock, which ordinarily wouldn’t be helpful for retail stocks.
However, these are no ordinary times. Despite some concerns, HD stock has soared. On a year-to-date basis, shares are up more than 28%, which is phenomenal for this investment category. Even more remarkable, many experts believe that HD could tick higher based on sustained housing demand.
Personally, I’m not sure if I believe this thesis. While it sounds reasonable, housing could be enjoying accelerated demand from forward years being pushed up this year. But when we arrive at those forward years, there might not be enough demand available.
Still, I like HD stock because of its everyday necessity. If God forbid the Covid-19 crisis worsens, this will be the name to own.
Amazon (AMZN)
Source: Quisquilia / Shutterstock.com
I hate to bring up Amazon because for one thing, I’ve been mentioning AMZN stock frequently in recent times. Plus, it’s presently not the upside performer that we’ve come to expect from the behemoth all-in-one technology firm. On a YTD basis, AMZN is down 1%. That’s much less impressive compared to the results we’ve seen in prior years.
Nevertheless, Amazon offers a fundamental argument that probably will never die. Every quarter leading up to the pandemic, e-commerce as a percentage of total retail sales never declined. Instead, consumers across the world have gradually shifted their purchasing behavior to online channels. Thus, in the first quarter of 2020, nearly 12% of all retail sales were attributed to e-commerce.
During the height of the Covid-19 pandemic, this metric shot up to 16.1%. With consumers afraid to go out, shopping at Amazon was the logical choice, making it one of the retail stocks to buy. However, the fading of new coronavirus cases took some air out of e-commerce demand, with the aforementioned metric fading to 14% in Q4 2020.
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But I don’t think consumers will completely get over their fears immediately. For many, online shopping represents the prudent choice. And if the crisis somehow worsens, AMZN is perhaps best poised among retail stocks to deliver upside gains.
Retail Stocks: Denny’s (DENN)
Source: JHVEPhoto / Shutterstock.com
Out of the retail stocks on this list, Denny’s is probably the idea that’s most out of left field. You’re either going to think this is a genius concept or you’re going to want me to be institutionalized. Hopefully, I’ll get more of the former rather than the latter.
Okay — prior to the pandemic, what did young people do? Usually, enjoying the night life, hanging out with their friends and mixing and mingling with new folks. Of course, Covid put a major damper on this scene, shutting it down entirely. But now that many jurisdictions are reopening high-contact businesses, DENN stock could be a surprising beneficiary.
How so? For many people, nothing works out some of the drunken stupor better than a nice juicy double-patty cheeseburger with fries. It’s just what people do. And it’s not just about clubbing. Think about those who watch late-night movies. What else is open in the wee hours of the morning besides Denny’s?
Moreover, we’re going to see a lot of people vacation but via their personal vehicles. That means demand for roadside restaurants. By that I mean Denny’s. So actually, when you think about it, buying DENN stock isn’t out of left field at all. It’s rather quite normal.
Signet Jewelers (SIG)
Source: Helen89 / Shutterstock.com
If you’re looking for massive pent-up demand among retail stocks, look no further than Signet Jewelers. According to its website, Signet is the largest retailer of diamond jewelry, featuring brands like Kay Jewelers, Zales and Jared. Rising sales for diamonds has contributed to an amazing performance for SIG stock so far this year, gaining 110% since the January opener.
Admittedly, if you’re buying shares now, you’re going into extreme momentum. In other words, there’s a higher-than-normal risk that you may end up holding the bag. However, it’s very possible that SIG stock could keep moving higher.
First, you have to think about the revenge-spending concept. When Covid-19 struck, it didn’t just disrupt our professional lives but also our personal lives. Particularly, think about all the engagement and wedding ceremonies that had to be postponed because of the pandemic. Likely, many affected couples took the time off and the stimulus checks to splurge on their significant others.
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Second, diamond demand is an international phenomenon. According to Diamonds.net, China is the second-largest market for diamond consumption. Further, well-heeled buyers there are acquiring large gemstones, which only serves to raise prices. Still, people are willing to pay the premium, which augurs well for jewelry-related retail stocks.
Retail Stocks: Nordstrom (JWN)
Source: Jonathan Weiss / Shutterstock.com
For full disclosure, I’ve been cautious about retail stocks levered to the department store business. I’d love to be proven wrong but if the Covid-19 crisis ends up permanently changing consumer behavior — and that’s not out of the question — you don’t want to be heavily exposed to this sector. Nevertheless, I’m going to explore the contrarian take of Nordstrom.
On the surface, Nordstrom and its shopping mall rivals are very similar. Both specialize in selling premium-brand goods at what I would consider hefty premiums. However, with the shift to e-commerce that only accelerated under the pandemic, department store businesses have a challenging road ahead of them.
But if there’s one that could navigate this minefield successfully, it might be Nordstrom. As you know, the company has an excellent off-price retailer called Nordstrom Rack. If you want to know, I used to go there to pick up discounts on high-end apparel.
During the crisis, I can see why people didn’t want to shop at the Rack. But now that companies are calling their workers back to the office, this business has a very compelling thesis: provide professional apparel at a cheap price.
Honestly, I don’t know if it’s going to holistically save JWN stock but it might be worth a shot if you’re a speculator.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article.
A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare.
The post 7 Retail Stocks to Buy If You’re Optimistic About the Economy appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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CarMax (NYSE:KMX) Best Buy (NYSE:BBY) Home Depot (NYSE:HD) Amazon (NASDAQ:AMZN) Denny’s (NASDAQ:DENN) Signet Jewelers (NYSE:SIG) Nordstrom (NYSE:JWN) Despite many encouraging signs, you should keep in mind that our economic recovery is fragile. Retail Stocks: Denny’s (DENN) Source: JHVEPhoto / Shutterstock.com Out of the retail stocks on this list, Denny’s is probably the idea that’s most out of left field. But now that many jurisdictions are reopening high-contact businesses, DENN stock could be a surprising beneficiary.
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CarMax (NYSE:KMX) Best Buy (NYSE:BBY) Home Depot (NYSE:HD) Amazon (NASDAQ:AMZN) Denny’s (NASDAQ:DENN) Signet Jewelers (NYSE:SIG) Nordstrom (NYSE:JWN) Despite many encouraging signs, you should keep in mind that our economic recovery is fragile. Retail Stocks: Denny’s (DENN) Source: JHVEPhoto / Shutterstock.com Out of the retail stocks on this list, Denny’s is probably the idea that’s most out of left field. But now that many jurisdictions are reopening high-contact businesses, DENN stock could be a surprising beneficiary.
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Retail Stocks: Denny’s (DENN) Source: JHVEPhoto / Shutterstock.com Out of the retail stocks on this list, Denny’s is probably the idea that’s most out of left field. CarMax (NYSE:KMX) Best Buy (NYSE:BBY) Home Depot (NYSE:HD) Amazon (NASDAQ:AMZN) Denny’s (NASDAQ:DENN) Signet Jewelers (NYSE:SIG) Nordstrom (NYSE:JWN) Despite many encouraging signs, you should keep in mind that our economic recovery is fragile. But now that many jurisdictions are reopening high-contact businesses, DENN stock could be a surprising beneficiary.
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Retail Stocks: Denny’s (DENN) Source: JHVEPhoto / Shutterstock.com Out of the retail stocks on this list, Denny’s is probably the idea that’s most out of left field. CarMax (NYSE:KMX) Best Buy (NYSE:BBY) Home Depot (NYSE:HD) Amazon (NASDAQ:AMZN) Denny’s (NASDAQ:DENN) Signet Jewelers (NYSE:SIG) Nordstrom (NYSE:JWN) Despite many encouraging signs, you should keep in mind that our economic recovery is fragile. But now that many jurisdictions are reopening high-contact businesses, DENN stock could be a surprising beneficiary.
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