Dow component Nike, Inc. (OF) reports earnings after Tuesday’s closing bell, with Wall Street analysts expecting earnings per share (EPS) of $0.56 on third quarter 2020 revenue of $9.5 billion. The sports and apparel giant saw its shares fall more than 2% after beating estimates on both metrics in the December release, with investors jumping ship…
Options can be used in a wide variety of strategies, from conservative to high risk. They can also be tailored to meet expectations that go beyond simple directional strategies. So, once you learn basic options terminology, it makes sense to investigate factors that affect an option’s price in various scenarios. Key Takeaways Options are derivative contracts the right, but…
Hospital stocks certainly haven’t been immune to panicked sell-offs across the market in recent weeks as costs from the coronavirus pandemic – both health and economic – continue to mount. Moreover, at an industry level, investors have voiced concerns about hospitals canceling or postponing more expensive elective surgeries to cater for the influx of patients with…
Net current assets, also known as working capitalis an important financial metric when evaluating a company’s financial health. Net current assets is calculated as current assets minus current liabilities, Net Current Assets The metric allows investors and analysts to see if current assets are greater than current liabilities, which is a positive standing. If current…
What Is a Reverse Triangular Merger? A reverse triangular merger is the formation of a new company that occurs when an acquiring company creates a subsidiary, the subsidiary purchases the target company, and the subsidiary is then absorbed by the target company. A reverse triangular merger is more easily accomplished than a direct merger because…
What Are Factor ETFs? Trackers and exchange-traded funds (ETFs) that pursue a simple, passive strategy of following a specified market or index have become extremely popular in recent years, as it has become common knowledge that classic stock picking does not always work. A pure tracker that entails “buying a market,” such as the S&P…
Understanding the Financial Services Industry The financial services industry has served as common ground for investors seeking steady growth and income for decades, despite the 2008 economic downturn spurred by its mismanagement. Organizations that facilitate banking and insurance services, asset management services, lending and credit services, and brokerage operations make up a substantial portion of…
An initial public offering (IPO) is the process by which a privately-owned enterprise is transformed into a public company whose shares are traded on a stock exchange. This process is sometimes referred to as “going public.” After a private company becomes a public company, it is owned by the shareholders who purchase its stock. Many…
It’s well-known that product differentiation results in higher prices and higher profits for companies. Hotels, for example, might distinguish themselves from other hotels by offering the best location, the best service, or superior amenities. Without product differentiation, hotel rooms become, more or less, perfect substitutes for one another, and prices fall accordingly. Why, then, would…