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The 6 Most Expensive Stocks In The Dow Jones Industrial Average: Part 1 Of 5

Introduction

When the Dow Jones Industrial Average first hit 20,000 in January of this year, it generated quite a buzz within the financial community. Since January, the Dow Jones Index has continued to rise and currently is over 22,700. However, the Dow Jones is not the only market index that is currently sitting at or near all-time highs. The broader S&P 500 index is also at a historic peak.

However, even though the Dow Jones sits at an all-time high, it does not logically follow that all stocks in the Dow Jones are at all-time highs. Perhaps more importantly, even though the index is at an all-time high, it does not necessarily mean that all the stocks in the Dow Jones are overvalued. On the other hand, since the index is at an all-time high, it might also logically follow that many (if not all) of the stocks in the Dow Jones are overvalued. As I’ve often pointed out, it is a market of stocks, not a stock market.

Consequently, the only way that any of these things can truly be determined is by evaluating each of the individual constituents that make up the 30 Dow Jones Industrial Average. The good news is there are only 30 stocks in the index; therefore, it is not too difficult or overly time-consuming to evaluate each of the constituents independently. But more to the point, I think there is a significant benefit and enlightenment achieved through examining each of the 30 constituents individually.

Then, not only will the veracity of the statement “it is a market of stocks” be validated, but also the reality of how different each individual company that makes up the market is also vividly revealed. Therefore, this will be the first of a series of five articles where I will examine each of the 30 Dow Jones Industrial constituents individually. Moreover, I will be presenting the 30 stocks 6 at a time in order of valuation highest to lowest. As a prelude to what will be revealed relative to valuation, I intend to illustrate that approximately half of the Dow Jones constituents are currently reasonably valued.

Portfolio Review: The Six Most Expensive Stocks in the Dow Jones Industrial Average

The following portfolio review lists the six most expensive stocks in the Dow Jones Industrial Average based on their current blended P/E ratio. However, there are many ways to value a stock in addition to the P/E ratio. Consequently, I suggest the reader also notices the price to cash flow of each of these six Dow constituents. For those investors most interested in dividend income, price to cash flow might be more relevant for higher-yielding dividend paying stocks. Furthermore, when ascertaining valuation, other factors such as expected growth need to be considered as well. I will elaborate more fully in the video below.

FAST Graphs Analyze Out Loud Valuation Analysis

This video will present a quick overview of each of these Dow constituents based primarily on price relative to earnings and cash flow. However, for certain constituents, I will also evaluate several other metrics. For any reader concerned with the current valuation of the stock market, this video and the subsequent four videos that follow in future articles are must watches. Furthermore, although I will be only providing a cursory, or a pre-more comprehensive due diligence analysis, I believe you will find the video enlightening and hopefully entertaining.

Summary and Conclusions

In Part 1 of this five-part series, I covered what I consider the six most expensive stocks in the Dow Jones. With my next article (Part 2), I will look at the next six Dow stocks relative to valuation. I believe you will find that relative valuation of these next six Dow stocks is quite similar to these first six. However, with each respective installment, I will be reviewing additional Dow constituents that appeared to be more attractively valued.

As an aside, many of you may have seen or read about Warren Buffett’s recent prediction that the Dow Jones Industrial Average will someday hit $ 1 million. Personally, I believe that Warren Buffett may in fact be correct. But more importantly, that prediction needs to be put into perspective. His time frame is 100 years, and this would imply that the Dow Jones increases only by 4% a year. Nevertheless, the reason I bring this up is simply to point out that stocks have generally risen over the long run.

Consequently, I believe the Dow Jones will in fact increase in value over time. On the other hand, that does not mean that stocks will go never-endingly up. As history has proven, there will be interruptions along the way. Nevertheless, the most vulnerable stocks will be those that are most overvalued just prior to a correction occurring.

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Disclosure: I am/we are long CVX, V, BA, XOM, MCD.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

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The most cringe-worthy quotes from CEO Travis Kalanick on Uber’s sexist work culture

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Uber CEO Travis Kalanick has a history of cringe-worthy comments. Easiest example — “Boob-er” in reference to a “women on demand” service — and here’s some more

When he’s not putting his foot in his mouth, Kalanick is known for particularly aggressive business tactics, which is one of the reasons why venture capitalists have given him more than $ 13 billion in funding to build out this ride-hailing company. Chris Sacca, an investor in Uber and other tech companies, wrote in a guest post in Fortune: “He doesn’t sleep. He doesn’t lose focus. He will even forget to eat. He executes again and again, inspiring those around him to have the same passion for the end game as he does.” Read more…

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Hungover people drive most successful App Store day ever


Apple’s App Store just had it best day, ever. On New Years Day, a hungover world bought a (frankly ludicrous) $ 240 million of games, apps, and iMessage stickers packs, with 70 percent of that going straight to developers. Just in case you were curious, that’s just $ 56 million shy of the annual GDP of the Pacific island nation of Palau. There are no prizes for guessing what was the most downloaded app – it was Super Mario Run. Nintendo’s first foray into the world of mobile gaming has been downloaded 90 million times, with almost 3 million stumping up the…

This story continues at The Next Web


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Internet Of Things On Pace To Replace Mobile Phones As Most Connected Device In 2018

Internet of Things (IoT) sensors and devices are expected to exceed mobile phones as the largest category of connected devices in 2018, growing at a 23% compound annual growth rate (CAGR) from 2015 to 2021. By 2021 there will be 9B mobile subscriptions, 7.7B mobile broadband subscriptions, and 6.3B smartphone subscriptions. Worldwide smartphone subscriptions will grow at a 10.6% CAGR from 2015 to 2012 with Asia/Pacific (APAC) gaining 1.7B new subscribers alone.


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Get to Know Margot Robbie, One of Hollywood’s Most Buzzed-About Leading Ladies

Although Margot Robbie might have started off as the costar to actors like Leonardo DiCaprio and Will Smith, the Australian actress has become a leading lady in her own right. After bursting onto the acting scene in films like About Time and The Wolf of Wall Street, the gorgeous actress has been buzzed about a lot for both her high-profile roles and her personal life. Here’s your chance to get to know the star before she completely takes over Hollywood (and you fall madly in love with her) in the summer’s biggest blockbusters.

Source: http://feedproxy.google.com/~r/popsugar/~3/k6EmcAalnaI/Who-Margot-Robbie-33053041

Brittany Snow Brittny Gastineau Brody Dalle Brooke Burke Brooke Burns Busy Philipps


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8 Reasons Why the Tokyo Olympics Will Be the Most Futuristic We’ve Ever Seen

In 1964, the last time Tokyo hosted the Summer Olympics, the nation revealed one of the biggest mic drops in transportation history: the debut of the shinkansen, the world-famous bullet train that became a Japanese icon. The first high-speed train in the world, it spurred similar technology to spread to Europe and other East Asian nations, paving the way for current maglev trains and, arguably, the Hyperloop.

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Get the most out of your marketing stack by unifying data sources

puzzle pieces

GUEST:

When it comes to getting the most value out of data, successful companies take a practical approach, first defining their own data strategy and then determining the tools needed to get it done. A good example of this is Airbnb, which set their own data strategy and tools to help users more accurately price their home listings. Too often, however, companies fail to lay out a clear strategy, instead relying on the available tools to show them where they need to go. Unfortunately, these tools usually serve up packaged metrics with data that is too detailed and lacks cohesion.

The mobile marketing data landscape

marketing data landscape mobile

In VentureBeat’s The State of Marketing Analytics: Insights in the age of the customer, author Jon Cifuentes writes:

“Enterprises are stuck between fragmented data silos…There’s customer data, inventory data, log data, search data, reporting, analytics, CRM, session data, et. al – with different vendors supporting each. While “real-time” customer data sounds nice in theory, the actual process of broadcasting this information through the organization is time-consuming, expensive, fragmented, and frustrating.”

These cobbled-together sources and tools provide directional insight but don’t align with initial expectations, particularly as companies start requiring custom insights and metrics.  In fact, most companies quickly find themselves in exactly the situation they had hoped to avoid – working in increasingly complex systems with considerably higher non-value added workloads.

data silo

The challenge for companies is: how do you align your data vision with your unique acquisition, engagement and monetization strategies?

Purpose-built tools like app analytics, A/B testing, marketing automation, etc. have done a great job in recent years of allowing non-technical people to analyze data, run tests and engage users. However, since these tools were built for single-use cases and by separate companies with proprietary data stores, they have failed to address a core issue: the need to access the same user data in order to truly provide a personalized experience to each user.

Data-capture tools and user engagement tools also need to be integrated in order to provide a full picture of how changes impact the product downstream.  For instance, teams need to be able to apply user actions from app analytics to run A/B tests, which will in turn impact the user experience.

The path forward

The solution exists at the platform level: unifying data sources before applications are built on top of them, with a flexible 2-way structure that enables real-time integration between event and user data, at all levels in the stack, and not just based on basic pre-determined rules with segmentations on top.

data silo2

This type of structure makes it possible for events to be enriched by boundless user attributes (user state) and enables contextual analytics.  This, in turn, produces a robust targeting framework, because now the user state can be updated in any manner, in real-time.  For example, Glassdoor utilizes this methodology to deliver real-time dynamic notifications of job alerts to users based on their prior behavior when browsing the Glassdoor website.

While many marketing vendors are fighting to define themselves as integrated or unified marketing platforms, most still need to reach deeper down the stack and unify product and marketing tools with data tools at a platform level.   Because they refer to the same data source, there will be no discrepancies between insights and actions.  For example, segments defined for analytics will maintain the same properties in A/B testing or content delivery.  Applications developed on top of unified data platforms will be inherently more flexible and manageable.

From VentureBeat

Omniata is coming out of beta on September 24th!  You can reach us at [email protected] to learn more. Though just coming out of beta, we’re already tracking 300 million monthly active users, 2 billion events per day, and handling over 17,000 requests per second!

Alex Arias is the CEO and cofounder of Omniata, a unified data, analytics and user engagement platform.  For more than 10 years, Alex has been an entrepreneur and driver of innovation in digital services, working previously at Digital Chocolate and EA.  He’s been helping companies define their own Data Value Journey since cofounding Omniata two and a half years ago.



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