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The Dow Jones Industrial Average is an index of 30 stocks that is often utilized as a proxy for the whole market. Since it is such a small index, I thought you all might find it interesting to see what the market looks like considering the recent volatility. Therefore, with this video I will take an overview look at each of the 30 Dow Jones Industrial stocks based on adjusted operating earnings relative to their current stock valuations. What you will see may surprise many of you considering the frightening headlines you have recently been seeing.
Well DXC dropped today by 28% and it is trading for 10$ with a forward PE around 2. Do You have any thoughts about it? From a fundamental point of view they sold part of their buisness for 5BN.
Piotr Maj Goodwill is a GAAP convention to account for the overpayment of an acquisition. If they bought a company worth $3 billion but paid $4 billion for it, $1 billion would be charged to “goodwill”. Overpaying for acquisitions can often damage a company for years. It appears you like the DXC fundamentals, so the only question you need to answer is “Can it be purchased for a fair price?” Every trade takes two parties: one who is glad to own it and one who is glad to be rid of it. If you think it is a good company at a fair price, buy it. I don’t, so I won’t. And that’s okay. Good luck.
@James Darnell The company is now at the turnaround point with new CEO which in my opinion is much better than the last one that made those costly acquistions. I was eyeing it for about 3-5 months and decided to buy in after they broke the consesus by 20%. I tghought that this was a good place to jump in but from that point it lost over 60%. I’m thinking to add more but the stock price goes lower and really its hard to understand the high sell off. Even Chuck made a video that the company is highly undervalued.
https://www.youtube.com/watch?v=MZboZ1a0g9E
Piotr Maj If you are not buying or selling today, then today’s price means nothing. I don’t know you, and I don’t know if you are a trader or an investor. If you are a trader, you made a very bad trade and should have gotten out when you were down 10%. Lesson learned. Move on. If you are an investor, you might want to consider not doing anything until the CV crisis abates. Probably end of April or mid-May. Then buy more if you have the cash. For right now, you might want to stop watching CNBC for six weeks.
@James Darnell I’m an investor but really its hard to understand why stock is plummeting so much despite some positive tailwinds (the sell of the non-core buisness). I will add more after the next EC if nothing disturbing comes out.
@Piotr Maj As Warren Buffett says, the markets can be irrational. Fear can sink all ships regardless of valuations.
Great work but Chuck should do this every couple of days. After today’s 13% drop all of these stocks have new valuations… HD dropped $40 today…
Alex: I just might revisit now soon but not tomorrowthat’s too soon.
@Chuck Carnevale Hey , I dropped over a hundred there yesterday, its rigged
Dear Chuck, at my point of heightened anxiety, you always seem to come through with wonderful videos =)
Thank you for this
You deserve another 100,000 subs. Good info…
100%
Overall summary: The DOW components are still for the most part fairly valued or overvalued. Interesting.
KK: interesting to see what it looks like tomorrow after today?
Interesting overview for sure. Do you find the Dow a more accurate proxy for the market than the S&P?
Big-Game James: not necessarily, but certainly easier to evaluate with so few stocks.
Great review, Chuck, much appreciated. A lot of clarity and perspective
Thank you Chuck. I’m 39 but lived through 2000, 2008-2009 but this is a slaughter for all business. A falling machete.
Thanks Chuck for another excellent video. To me it feels like the best time to invest stocks is during recessions. Any point of time, other than that and investors will likely be looking at poor future returns.
can you compare Blackstone (BX) and Brookfield (BAM)?
Great video, continue the good work 🤙
You have great content. Love your vids.
The thing with projections is that noone knows now how bad the slowdown will be. 5 % down? 30 % down? Over the next 2 quarters or 3 years? Complete meltdown maybe? I wonder when will the analysts be able to realisticly evaluate future eps again. This is big unknown.
Solid video displaying the relative attractive valuation of some DJIA stocks but also how some are still overvalued thanks Chuck!
Thank you Chuck. Great video!
You get a new microphone? Sounding nice and clear. Another informative video, thanks Chuck!
It’s a miracle, the dow recovers
I think what is happening, is some people are going to get really rich with the markets. The markets are going up one day and diving down the next. I feel that people with the money to play with are what is causing the up and down markets. People that are in panic mode are selling off, and the people who have the money are buying which brings the market back up for one day. They then sell at a profit, which makes the markets go back down. I am not an expert, but it sure seems funny to have the markets fluctuate this much in one day. Just my opinion, but I wish I had the money to play with right now.
Great video. Thanks for your always interesting perspective on things. Highly appreciate it.