Question
The following 10 stocks need to be included in this project for each section. WMT, TSLA, XOM, KO, AAPL, GOOG, T, VZ, CHK, AMZN. For
The following 10 stocks need to be included in this project for each section. WMT, TSLA, XOM, KO, AAPL, GOOG, T, VZ, CHK, AMZN.
For each stock you select, a two page maximum narrative (including is required (for each stock) discussing the following: 1. Calculate the following ratios from the most recent 10Q and compare them to the industry average (can be found on money central for each stock under the key ratios tab): a. Net income as a % of total revenue b. Gross Margin % c. Interest coverage d. Current ratio e. Debt Ratio Discuss each ratio in comparison to the industry average and detail why there may be a discrepancy. Be sure to include the ratios and industry averages in your paper. You may need to read the 10Q to pull out your discussion points around these ratios. 2. Discuss how the stock has performed over the past 5 years based on the following: a. Detail the 5 year moving average on the stock from a growth perspective (talk about the EPS and PE growth and how it compares to the industry average). b. What key elements have caused the stock to fluctuate and how has management affected this growth (or lack thereof)? c. Is the stock over or undervalued? i. Calculate the book value per share and compare it to the industry and discuss whether it is under or over valued. 3. For each stock do the following: a. On money central, look at the estimated EPS (EEPS) for the next year. Using a discount factor of 5%, discount the EEPS to the present. b. Based on your answer to A, is the stock over or undervalued if compared to the current stock price (as of the day you calculated the DCF)? 4. For the stocks in your portfolio, do the following: a. Using your answers from questions 1-3 above do the following: b. Define your investment objective for the portfolio (growth, income, retirement, combination etc..) c. Weight each stock by % in terms of what percent of the stock you would own in your investment portfolio. d. Briefly discuss how you arrive at the % ownership and detail whether this is a short or long term investment and your plans for monitoring the stock to make sure that it fits your investment objective as defined in B.
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