Category Subcategory Noah Industry name Freight Industrial structure Trucking/Delivery Service Identifiers Major firms UPS, Fedex, XPO Logistics, JB Hunt Neha Commercial Banking Finance Transportation Air Travel Robert James Retail Department Stores JP Morgan Chase, CitiBank, Regions Bank, Bank of America, Wells Fargo Delta, American Airlines, Southwest, Frontier Walmart, Macys Inc, Nordstrom, Dillards Inc, Kohls Supplies, goods and food Personal banking, business banking, mortgage, financing, credit Services: Personal transportation, business Top 3 Products/Services and SIC/NAICS Code(s) Clothing, shoes, handbags NAICS: 522110 transportation, checked baggage SIC: 45129902 NAICS: 4811 Arrivals/departures timeliness SIC: 52-59/5311 - Dept Stores NAICS: 44-45/4522 (Dept Stores) Revenue SIC: 47310000 SIC: 602 NAICS: 484110 Megan Cosmetics Beauty/Appearance Estee Lauder, e.l.f. Beauty Inc, ULTA Cosmetics Dave Pharmaceuticals Medical Treatments Pfizer, Moderna, Johnson & Johnson, Merck Perfumes, Cosmetics, and Other Toilet Preparations Medications, vaccines, cliniques SIC: 512201 SIC: 283404 NAICS: 446120 NAICS: 32541 On time delivery Industry Future Performance Indicators Volume of shipments Account openings Money generation on financial products Revenue Vaccine distribution rates Flight bookings Sales volume Sales volume Customer retention D/(D+E) 25.25 1.26 2.45 3.9 0.36 1.92 EBIT/Interest 6.44x 5.1x -9.48x 11.6x -3.57x 19.82x ROA 3.75% 0.90% -9.80% -2.80% -5.80% 1.53% ROE 26.15% 8.50% -30.90% -24.10% -13.70% 6.63% Financial Performance Measures P/E 19.98x 11.7x 19.6x 30.51x 44.22x 35.03x Norms/Ranges Dividend Yield 1.34% 2.83% 0.80% 1.81% 0.18% 2.25% Div Payout Ratio 14.88% 0.36% -0.03% -0.11% 0.14% 0.62% Table 2: Firm Characteristics Category Subcategory Freight Noah Neha Commercial Banking Robert Transportation Retail James Megan Cosmetics Trucking/Delivery Service Finance Air Travel Department Stores Beauty/Appearance Identifiers UPS Bank of America Southwest Kohl's Estee Lauder Co Ticker: Ticker: UPS Stock Value: $188.02 Ticker: BAC Stock Value: $42.14 D/(D+E) EBIT/Interest 92.92 0.09 Ticker: LUV Stock Value: $55.06 2.69 Ticker: KSS Stock Value: $49.17 EL Stock Value: $320.65 Dave Pharmaceuticals Bio Technology Merck & Co Ticker: MRK Stock Value: $83.10 1.86 3.63x 12.2x -14.7x 3.54x 2.61 16.1455x 2.61 11.7x ROA 2.20% 0.70% -10.10% 8.80% 14.46% 8.00% ROE 67.80% 11.08% -0.33% 27.10% 53.18% 27.40% Financial Performance P/E 20.6x 14.07x -8.74x 10.49x 49.71x 29.4x Measures Dividend Yield 4.20% 1.99% 1.35% 2.12% 0.66% Dividend Payout Ratio 13% 23.87% -0.03% 16.42% 32.87% 2.90% 0.89% Analyst Recommendations Consensus Analyst Recommendation Strong Buy Your Assessment on Financial Performance Measures (Low, Average, High) Strong Buy Strong Buy Hold/Buy Strong Buy Moderate Buy 2021: Low: $180.00 Average: $225.25 High: $245.00 2021: Low: $34 Average: $42.65 High: $48 2021: Low: $55 Average: $66.71 High: $76 2021: Low: $18.17 Average: $59.20 High: $63.47 2021: Low: $305 Average: $362.50 High: $393 2021: Low: $80 Average: $92 High: $107 Table 3: Summary Statistics Historical Average Return (5y) Standard Deviation of Historical Retuns (5y) Correlations Between Historical Returns (5y) Stock 1 Stock 2 Stock 3 Stock 1 - UPS Stock 1 $118.47 10.07% 1 0.2113 -0.3271 Stock 4 Stock 5 Stock 6 -0.2802 0.666 0.4133 Stock 2 - Bank of America Stock 2 $27.41 0.80% 0.2113 1 0.3431 Stock 3 - Southwest Stock 3 $50.76 1.96% -0.3271 0.3431 0.5529 0.623 0.321 1 0.6473 -0.45 -0.4729 Stock 4-Kohls Stock 4 $45.11 2.06% -0.2802 0.5529 0.6473 1 -0.171 -0.2028 Stock 5 - Estee Lauder Stock 5 $170.92 7.54% 0.666 0.623 -0.45 -0.171 1 0.817 Stock 6 - Merck Stock 6 $67.26 1.50% 0.4133 0.321 -0.4729 -0.2028 0.817 1 Table 4: Portfolio Weights Name of the Company UPS BAC LUV KSS EL MRK Weight That Maximizes Sharpe Ratio -23.27% -269.84%