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Company name Methode Electronics Inc.
Stock ticker MEI
Live stock price [stckqut]MEI[/stckqut]
P/E compared to competitors Good

MANAGEMENT EXECUTION

Employee productivity Poor
Sales growth Fair
EPS growth Poor
P/E growth Good
EBIT growth Good

ANALYSIS

Confident Investor Rating Fair
Target stock price (TWCA growth scenario) $38.18
Target stock price (averages with growth) $52.28
Target stock price (averages with no growth) $44.01
Target stock price (manual assumptions) $42.11

The following company description is from Reuters: https://www.reuters.com/finance/stocks/company-profile/mei

Methode Electronics, Inc. (Methode), incorporated on April 27, 1966, is a manufacturer of component and subsystem devices. The Company designs, manufactures and markets devices employing electrical, radio remote control, electronic, wireless and sensing technologies. The Company operates through segments, including Automotive, Interface, Power Products and Other. The Company has manufacturing, design and testing facilities in China, Egypt, Germany, India, Italy, Lebanon, Malta, Mexico, Singapore, Switzerland, the United Kingdom and the United States. The Company’s components are found in end markets of the aerospace, appliance, automotive, battery storage, construction, consumer and industrial equipment, communications (including information processing and storage, medical device, networking equipment, wireless and terrestrial voice/data systems), rail and other transportation industries.

 

Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in Methode Electronics Inc. as long as the price is correct and the indicators that I describe in my book The Confident Investor are favorable. Most of the fundamentals of this company are good but there are some concerns.

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.

How was this analysis of Methode Electronics Inc. calculated?

For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
[s2If current_user_can(access_s2member_level1)]

In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:

  • Stock price at the time of the calculation: $40.5
  • Growth: 0.12
  • Current EPS (TTM): $2.96
  • P/E: 13
  • Future EPS Calc: $5.21
  • Future Stock Price Calc: $67.81
  • Target stock price: $42.1

[/s2If]
I hope that this makes you a Confident Investor.

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Company name McKesson Corporation
Stock ticker MCK
Live stock price [stckqut]MCK[/stckqut]
Confident Investor Rating Poor

The following company description is from Reuters: https://www.reuters.com/finance/stocks/company-profile/mck

McKesson Corporation, incorporated on July 7, 1994, is a healthcare supply chain management solutions, retail pharmacy, community oncology and specialty care, and healthcare information technology company. The Company provides medicines, medical products, and healthcare services by partnering with pharmaceutical manufacturers, providers, pharmacies, governments and other organizations in healthcare. It operates in two segments: McKesson Distribution Solutions and McKesson Technology Solutions.

Confident Investor comments: At this price and at this time, I do not think that a Confident Investor can confidently invest in McKesson Corporation. It is not possible to confidently invest in a company that is not currently profitable. I am removing this company from my Watch List

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor.

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Company name Lululemon Athletica inc.
Stock ticker LULU
Live stock price [stckqut]LULU[/stckqut]
P/E compared to competitors Fair

MANAGEMENT EXECUTION

Employee productivity Poor
Sales growth Good
EPS growth Fair
P/E growth Good
EBIT growth Good

ANALYSIS

Confident Investor Rating Fair
Target stock price (TWCA growth scenario) $187.74
Target stock price (averages with growth) $257.66
Target stock price (averages with no growth) $177.43
Target stock price (manual assumptions) $49.32

The following company description is from Reuters: https://www.reuters.com/finance/stocks/company-profile/lulu

lululemon athletica inc., incorporated on November 21, 2005, is a designer, distributor, and retailer of athletic apparel. The Company operates through two segments: Company-operated stores and Direct to the consumer. The Company is also engaged in the sale from outlets, showrooms, sales from temporary locations, sales to wholesale accounts, warehouse sales, and license and supply arrangements. As of January 29, 2017, the Company had operated 406 stores located in the United States, Canada, Australia, the United Kingdom, New Zealand, China, Hong Kong, Singapore, South Korea, Germany, Puerto Rico and Switzerland. Its direct to consumer segment generates revenue from its lululemon and ivivva e-commerce websites, www.lululemon.com and www.ivivva.com, and other country and region-specific websites. The Company operates and distributes finished products from its owned or leased distribution facilities in the United States, Canada, and Australia. The Company owns its distribution center in Columbus, Ohio, and leases its other distribution facilities.

The Company offers a range of apparel and accessories for women, men and female youth. Its apparel assortment includes items, such as pants, shorts, tops, and jackets designed for healthy lifestyle and athletic activities, such as yoga, running, training, most other sweaty pursuits, and athletic wear for female youth. It also offers fitness-related accessories, including an array of items, such as bags, socks, underwear, yoga mats and water bottles. Most of its Company-operated stores are branded lululemon, 55 of its Company-operated stores are branded ivivva and specialize in athletic wear for female youth. Its retail stores are located primarily in street locations, in lifestyle centers, and in malls.

The Company competes with Nike, Inc., adidas AG, Under Armour, Inc., The Gap, Inc. and L Brands, Inc.

 

Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in Lululemon Athletica inc. as long as the price is correct and the indicators that I describe in my book The Confident Investor are favorable. Most of the fundamentals of this company are good but there are some concerns.

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.

How was this analysis of Lululemon Athletica inc. calculated?

For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
[s2If current_user_can(access_s2member_level1)]

In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:

  • Stock price at the time of the calculation: $125.31
  • Growth: 0.2
  • Current EPS (TTM): $2.66
  • P/E: 12
  • Future EPS Calc: $6.61
  • Future Stock Price Calc: $79.42
  • Target stock price: $49.31

[/s2If]
I hope that this makes you a Confident Investor.

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Company name Lam Research Corporation
Stock ticker LRCX
Live stock price [stckqut]LRCX[/stckqut]
P/E compared to competitors Good

MANAGEMENT EXECUTION

Employee productivity Good
Sales growth Good
EPS growth Good
P/E growth Poor
EBIT growth Good

ANALYSIS

Confident Investor Rating Good
Target stock price (TWCA growth scenario) $264.96
Target stock price (averages with growth) $390.07
Target stock price (averages with no growth) $264.96
Target stock price (manual assumptions) $271.99

The following company description is from Reuters: https://www.reuters.com/finance/stocks/company-profile/lrcx

Lam Research Corporation, incorporated on October 8, 1989, is a supplier of wafer fabrication equipment and services to the semiconductor industry. The Company designs, manufactures, markets, refurbishes, and services semiconductor processing systems that are used in the fabrication of integrated circuits (ICs). The Company operates through manufacturing and servicing of wafer processing semiconductor manufacturing equipment segment. The Company’s products are designed to enable its customers to build a range of devices that are used in a range of electronic products, including cell phones, tablets, computers, storage devices and networking equipment. The Company’s customer base includes semiconductor memory, foundry and integrated device manufacturers (IDMs) that make products, such as dynamic random-access memory (DRAM), negative-AND (NAND) memory and logic devices. The Company offers a portfolio of products that are used in several areas of the semiconductor manufacturing process flow, including thin film deposition, plasma etch and single-wafer clean. The Company also offers a range of services, including customer service, spares, upgrades, and refurbishment of its deposition, etch and clean products. The Company also provides refurbished legacy products.

 

Confident Investor comments: At this price and at this time, I think that a Confident Investor can confidently invest in Lam Research Corporation as long as the indicators that I describe in my book The Confident Investor are favorable.

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.

How was this analysis of Lam Research Corporation calculated?

For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
[s2If current_user_can(access_s2member_level1)]

In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:

  • Stock price at the time of the calculation: $171.8
  • Growth: 0.2
  • Current EPS (TTM): $14.67
  • P/E: 12
  • Future EPS Calc: $36.5
  • Future Stock Price Calc: $438.04
  • Target stock price: $271.99

[/s2If]
I hope that this makes you a Confident Investor.

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Company name LGI Homes Inc
Stock ticker LGIH
Live stock price [stckqut]LGIH[/stckqut]
P/E compared to competitors Good

MANAGEMENT EXECUTION

Employee productivity Good
Sales growth Good
EPS growth Good
P/E growth Good
EBIT growth Good

ANALYSIS

Confident Investor Rating Good
Target stock price (TWCA growth scenario) $88.77
Target stock price (averages with growth) $121.18
Target stock price (averages with no growth) $82.31
Target stock price (manual assumptions) $469.4

The following company description is from Reuters: https://www.reuters.com/finance/stocks/company-profile/lgih

LGI Homes, Inc., incorporated on June 26, 2013, is a homebuilder and land developer. The Company is engaged in the design, construction, marketing and sale of new homes in markets in Texas, Arizona, Florida, Georgia, New Mexico, South Carolina, North Carolina, Colorado, Washington, and Tennessee. The Company operates through five segments: the Texas division, the Southwest division, the Southeast division, the Florida division, and the Northwest division. The Texas division includes homebuilding operations in Houston, Dallas/Fort Worth, San Antonio and Austin locations. The Southwest division includes homebuilding operations in Phoenix, Tucson, Albuquerque, Denver and Colorado Springs locations. The Southeast division includes homebuilding operations in Atlanta, Charlotte and Nashville locations. The Florida division includes homebuilding operations in Tampa, Orlando, Fort Myers and Jacksonville locations. The Northwest division includes homebuilding operations in Seattle location.

The Company’s product offerings include entry-level homes and move-up homes sold under its LGI Homes brand, and its luxury series homes, which are sold under its Terrata Homes brand. As of December 31, 2016, the Company had 59 active communities with its LGI Homes brand and four with its Terrata Homes brand. The Company provides information regarding floor plans and pricing, credit and income qualifications and conduct tours of its homes. In addition, it provides each homebuyer with an introduction to the community and the surrounding area, providing them with information regarding utilities, schools, homeowners association dues and restrictions, local entertainment and nearby dining and shopping options. It offers a set number of floor plans in each community with features that include upgrades, such as granite countertops, appliances and ceramic tile flooring.

 

Confident Investor comments: At this price and at this time, I think that a Confident Investor can confidently invest in LGI Homes Inc as long as the indicators that I describe in my book The Confident Investor are favorable.

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.

How was this analysis of LGI Homes Inc calculated?

For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
[s2If current_user_can(access_s2member_level1)]

In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:

  • Stock price at the time of the calculation: $57.36
  • Growth: 0.2
  • Current EPS (TTM): $5.33
  • P/E: 57
  • Future EPS Calc: $13.26
  • Future Stock Price Calc: $755.97
  • Target stock price: $469.4

[/s2If]
I hope that this makes you a Confident Investor.