Top Stocks For 2018

A few days ago Mark Bern published a very informative article about Western Digital Corporation (NYSE: WDC) and raised the question if the company is an investment or a speculation? As result of different concerns regarding WDC the author ended the article with the conclusion that the stock is rather speculative. Although I wont recommend buying Western Digital at current price levels, I’m pretty pleased with my investment so far and will explain why I’m rather bullish than bearish on the stock although there might be some issues with the company. We will look at the future potential of data storage, we will look at the development of revenue and net income and end the article with an intrinsic value calculation. But we will start the discussion by looking at the most worrisome aspect the high debt levels.

The debt: Rather concerning

For many years Western Digital had almost no debt (and hence a very low D/E), but on May 12, 2016, the acquisition of SanDisk was officially completed and in order to finance the transaction WDC took on several billions in debt. On December 30, 2016, the total debt was $13,299 million. Six months earlier the total debt was about $17.5 billion and therefore WDC already managed to reduce the outstanding debt by $4.2 billion (but had to reduce the cash and cash equivalents from $8,151 million to $4,940 million). Most of the outstanding debt needs to be paid back in the years between 2020 and 2024. The D/E ratio of 1.24 can give us a first hint – that the debt levels are not extreme, but can be a burden for the company.

Top Stocks For 2018: Daktronics, Inc.(DAKT)

Advisors’ Opinion:

  • [By Monica Gerson]

    Daktronics, Inc. (NASDAQ: DAKT) is estimated to report its quarterly earnings at $0.08 per share on revenue of $156.17 million. Daktronics shares slipped 0.13 percent to close at $7.97 on Tuesday.

  • [By Monica Gerson]

    Daktronics, Inc. (NASDAQ: DAKT) is projected to report its quarterly earnings at $0.08 per share on revenue of $156.17 million.

    Guidewire Software Inc (NYSE: GWRE) is estimated to post its quarterly earnings at $0.06 per share on revenue of $92.43 million.

Top Stocks For 2018: Controladora Vuela Compania de Aviacion, S.A.B. de C.V.(VLRS)

Advisors’ Opinion:

  • [By Adam Levine-Weinberg]

    In addition to Southwest, Alaska Air, and JetBlue, Mexican ultra-low cost carriers (ULCCs)Volaris (NYSE:VLRS) and VivaAerobus requested numerous slots in Mexico City. However, the DOT showed a strong preference for the U.S. carriers’ requests. In fact, Southwest Airlines, Alaska Air, and JetBlue Airways each received all of the slots they wanted.

Top Stocks For 2018: Square, Inc.(SQ)

Advisors’ Opinion:

  • [By ]

    Payment processors and banks that are allowing bitcoin exchange are also benefiting as first-movers in digital transactions. It’s likely that most payment processors will integrate some cryptocurrency capability eventually but the first-mover advantage for companies like Square (NYSE: SQ) should help it boost user growth over the next year.

  • [By Elizabeth Balboa]

    Other best performers of 2017 demonstrating long-term stability include Square Inc (NYSE: SQ), Alibaba Group Holding Ltd (NYSE: BABA), Universal Display Corporation (NASDAQ: OLED), NVIDIA Corporation (NASDAQ: NVDA) and Take-Two Interactive Software Inc (NASDAQ: TTWO).

  • [By Chris Lange]

    Square, Inc. (NYSE: SQ) reported second-quarter financial results after markets closed Wednesday. The company said that it had a $0.07 in earnings per share (EPS) and $552 million in revenue, compared with consensus estimates from Thomson Reuters that called for a net loss of $0.05 per share and $536.27 million in revenue. The same period from last year had a net loss of $0.08 per share and $438.53 million in revenue.

  • [By Elizabeth Balboa]

    Western Digital Corp (NASDAQ: WDC) lost 16 percent over the last eight trading sessions, and Square Inc (NYSE: SQ), after a 264-percent run, conceded 24 percent.

  • [By Lee Jackson]

    Square Inc. (NYSE: SQ) had the president, CEO, chairman and co-founder, Jack Dorsey, selling shares this past week. Hesurrendered a total of 381,500 shares at a share price of $14.09. The total for the sale was posted at $5,375,764. The company develops and provides payment processing, point-of-sale, financial and marketing services worldwide. Its stock ended last week$13.63. The 52-week trading range is $8.06 to $15.91. The consensus price target is $14.14.

  • [By Chris Lange]

    Square Inc. (NYSE: SQ) is set to release its most recent quarterly results Wednesday. The consensus estimates are a net loss of $0.05 per share, as well as $536.27 million in revenue. Shares ended the week at $26.20. The consensus price target is $23.81, and the 52-week range is $9.85 to $27.97.

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