The S&P 500 index has been battered and bruised in the past six weeks, dropping nearly 35% before bouncing on March 24, but not all components have suffered equally. A handful of mavericks are bucking the downward tide, selling products and services that could benefit from the pandemic or exhibiting usual relative strength that is…
Analysts say S&P 500 earnings growth will fall 10% in Q2 2020 Airlines and oil, gas & consumable fuels see biggest cuts in earnings estimates As global companies face a new week of closures due to the coronavirus pandemic, the focus will shift to corporate earnings once this quarter ends on Wednesday. Many companies, including…
Trump admin extends lockdown measures until the end of April U.K. deputy chief medical officer says restrictions could last six months U.S President Donald Trump extended federal coronavirus guidelines, such as social distancing and working from home, until April 30 on Sunday. Trump added that the death rate will peak in two weeks and things will…
Casino stocks face a lethal challenge during the coronavirus pandemic, with Las Vegas, MacaoAtlantic City, and other major venues around the world closing down operations. Even the Indian Nations are getting hit hard, offering no alternative to big city or riverboat gambling. The shutdown could signal bankruptcy for major players if it extends beyond early…
As the large-cap proxy S&P 500 set an all-time high on Feb. 19, its small-cap counterpart – the Russell 2000 – remained 1% below its August 2018 peak. Moreover, throughout the recent pandemic-driven sell-off, small caps have continued to underperform blue chips by as much as 8%. In times of uncertainly, investors tend to shun…
Companies with high amounts of working capital possess sufficient liquid funds needed to meet their short-term obligations. Working capital, also called “net working capital,” is a liquidity metric used in corporate finance to assess a business’ operational efficiency. It is calculated by subtracting a company’s current liabilities from its current assets. Current assets are considered…
What Is Risk Participation? The term risk participation refers to an off-balance-sheet transaction in which a bank sells its exposure to a contingent obligation to another financial institution. Risk participation allows banks to reduce their exposure to delinquencies, foreclosures, bankruptcies, and company failures. Banks can transfer the exposure they have to risk on any type…
It’s a simple fact that clothes wear out and styles change. This means that it’s inevitable that everyone needs to repair or replace clothing once in a while, even those who absolutely despise shopping for new clothes. For frugal shoppers, this means buying clothes when you can get the very best prices, which can often…
What Is the Variable Cost Ratio? The variable cost ratio is a calculation of the costs of increasing production in comparison to the greater revenues that will result from the increase. An estimate of the variable cost ratio allows a company to aim for the optimal balance between increased revenues and increased costs of production….