You may have seen how financial news outlets provide real-time financial market reporting. They often produce stock-market news feeds for traders; these news feeds include a stock chart. The stock chart may include different filters that allow you to see how the stock is performing today or has performed over one or more years.
There are many factors that will influence pricing that can’t be controlled or predicted accurately. The approaches used to value stocks (determine what the stock is truly worth) are usually theoretical. You should consider what drives stock prices and why.
For this discussion, first go to Mergent Online. Find the pricing chart under the “Company Details” tab, then click on Pricing Summary for your selected company. This is the company you have selected for your Project Two assignment. Filter the time period to one year.
https://www-mergentonline-com.ezproxy.snhu.edu/basicsearch.php
In your initial post, address the following:
- Discuss how the stock for your company is trending. Explain why the stock is in either an uptrend or downtrend.
- Discuss some of the factors, including environmental, sustainable, and governance (ESG) factors, that you believe have impacted the stock performance and why.
- Convince your peers to either invest in your chosen company or to not invest in the company. Explain your reasoning.
In your response posts to at least two peers, discuss the following:
hello, here is my 1st classmate response needed.
Discussion 6
Justin Burningham posted Jun 9, 2021 3:49 PM
Greetings Class,
I chose Johnson & Johson, see below for review.
Pricing Summary
Discuss how the stock for your company is trending. Explain why the stock is in either an uptrend or downtrend.
Johnson & Johnson (JNJ) is at the top when it comes to diversified medical stock. They do this through a three-pronged market attack in pharmaceuticals, medical devices, and consumer medical products. Despite some of the ups and downs Covid threw at them; its overall stock is on an upward trend. Pharmaceutical sales saw the largest increase of 9.6% for a total of $12.2 billion, medical device sales grew by 10.9% or $6.58 billion, and consumer health sales reported a decrease of 2.3% for a total of $3.54 billion. JNJ’s total revenue grew by 7.9% totaling $22.32 billion (Gatlin, 2021).
Discuss some of the factors, including environmental, sustainable, and governance (ESG) factors, that you believe have impacted the stock performance and why.
Governance: On JNJ’s investor page, Joe Wolk, CFO, speaks specifically to reducing selling days due to Covid and each state shut down regulations (investor.jnj.com, n.d.). The graph depicted shows a decrease in the overall price of JNJ during the 2020 season, and then as the market started to open back up, we can see an upswing in price.
Environmental: In addition to the Covid pandemic, JNJ began to look at its operations and overall environmental footprint. They have streamlined their supply chain management, how products are shipped and continue to use risk identification and controls to make the workplace safer.
Sustainability: In addition to its diversified market presence, JNJ outperformed markets analysis in Q1. JNJ has partnered with Janssen pharmaceuticals and is working with several other drug manufacturers on several health initiatives that will continue to grow over the years to come. JNJ continues to be an innovator in medical devices and is advancing medical equipment that saves hospitals money and is safer for the patient.
Together, each ESG factor has played a significant role during downtime when the economy as a whole decreased. JNJ uses these features as an opportunity to impact its stock and business, staying nimble to meet the demands of the market.
Convince your peers to either invest in your chosen company or to not invest in the company. Explain your reasoning.
JNJ is one of the most diversified medical stocks on the market! Remember, JNJ’s pharmaceutical and medical device stock soared in Q1 while consumer product sales decreased. Overall, JNJ blew out market analysts’ projections by increasing its revenue by 7.9%, $22.32 billion (Gatlin, 2021). Due to the success of the first-quarter results, analysts are predicting not only a great Q2 but a good year for JNJ. Looking into further detail, the results of Q1 JNJ show an increase in debt; however, its overall current ratio of 1.5% shows it can cover all debts with its liquid assets. Additionally, JNJ is one of only two firms in America that have a AAA rating. If anything, JNJ is poised for a break-out year!
References:
Gatlin, A. (Apr, 20, 2021). J&J Squashes First Quater Views; Will Other Medical Stocks Follow. Retrieved from https://www.investors.com/news/technology/jnj-stock-johnson-johnson-earnings/
Mergent Online. (2021, April 4). Johnson & Johnson (NYS: JNJ) Company Details. Retrieved June 9, 2021, from Mergent Online: https://www-mergentonline-com.ezproxy.snhu.edu/companydetail.php?compnumber=4593&pagetype=synopsis
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2nd classmate response needed
6-1 Discussion: Understanding Pricing of a Stock
Mary Peterson posted Jun 9, 2021 7:00 PM
Hello all,
The Kellogg Co. is currently uptrending trying to get back to it’s high from over a year ago. Upward trends or uptrending is when the price for the stock is moving higher or in an upward trajectory. (Gulaq, 2021) You can be certain from history past that this stock will continue on a steady pace in an upward manner.
The pandemic gave a blow to just about everyone, but Kellogg sustained and held their ground. With governmental shutdowns, Kellogg Co. products may not have been fully accessible, but this did not cripple the company. As a leading global food company ? and a company with a Heart and Soul – we’re creating Better Days for 3 billion people by the end of 2030 through the four pillars of our Heart & Soul strategy (Kellogg Co., 2021). This is just one of their many ideas that aide in keeping the company thriving.
We you hear Kellogg brands, the first thing you think of is cereal; but the company is more than it’s Snap, Crackle & Pop of goods. They provide healthy smart items even for snacking. Over a year ago, their stock price peaked at about $70 a share and that’s even through the pandemic. (Mergent, 2021) Up a little over 1.2x from its low in March 2020, at the current price of $66 per share, we believe Kellogg Company stock (NYSE: K) has further upside potential. (Moody’s Analytics, 2021) It is currently uptrending even with a few low points in the beginning of the year, it has started moving on up and still in a good place.
REFERENCES
Gulaq. (2021). How To Identify An Uptrend And Downtrend…!! Retrieved from www.Gulaq.com: https://www.gulaq.com/how-to-identify-an-uptrend-and-downtrend/#:~:text=In%20an%20uptrend%2C%20both%20the%20peaks%20and%20troughs,by%20lower%20price%20highs%20and%20lower%20price%20lows.
Kellogg Co. (2021). Overview of our Kellogg’s® Better Days Commitment. Retrieved from https://crreport.kelloggcompany.com/better-days-co…
Mergent. (2021). Kellogg Co. [Company Profile}. Retrieved from https://www.mergentonline.com/login.php
Moody’s Analytics. (2021). Steady Earnings Growth Could Help Kellogg Stock Rise To Fresh Highs Above $70. Retrieved from https://secure.newsedge.com/neif/story/480.story/NwLfaDK8luQCmOtZgqcBU2VrO-HxrWpU6eYwS8mAqzSDXrb4JFBKu3XzQSuZM1mXCP7QavwPOtpCBLzWMSIXu88KmIvOVWjmHycXm4pj3fHoR2pKYXWKmuFSQFCzrIVokYIoFJg-V4nTiIkB7xl7a_eLONaWGJP1VOrbLmikSX0*
Sheridan Titman, Arther J. Keown, John D. Martin. (2021). Financial Management: Principles and Applications, 13e. Boston: Pearson.
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