Top 5 Stock To Watchout – June 13, 2022
13 Jun 2022
Kroger Company (KR): Kroger (KR) was founded in 1883 and is headquartered in Cincinnati, Ohio. Kroger is a national brand that offers a wide variety of merchandise via its supermarkets, warehouse stores, and department stores. Kroger continues to expand its convenience stores, fuel centers, and fine jewelry stores under names such as Fred Meyer Jewellers and Littman Jewellers.
The fine jewelry stores that Kroger operates are interesting because they offer Kroger a high-margin source of income alongside the tight margin operations that come with food-related supermarket operations. Kroger also operates food production and manufacturing facilities that produce private-label goods, which allows them to capitalize on the margins they work within to provide value to their customers. Kroger aims to be a one-stop shopping experience for its customers.
Kroger’s last five quarterly reports have reported sales of over $30 Billion dollars with a slight positive trend. The last four quarters of earnings have also shown us a positive trend in net income from about $140 Million to about $565 Million last quarter. Kroger’s balance sheet has remained very consistent over the last five quarters. Total assets have remained between $48 and $50 Billion, while total liabilities have remained right around $40 Billion, through the same period.
Accenture (ACN): Accenture’s (ACN) clients include most of the Fortune Global 500 companies. ACN was founded in 1989 and has been headquartered in Dublin, Ireland since 2009.
Accenture provides their clients with consulting services on digital operations. Their experience with digital operations, cloud computing, and digital security allows them to operate quickly for their clients. Accenture excels at rapidly scaling the technology their clients need. They maintain their edge by anticipating technological needs and acquiring companies that will accelerate their growth in those areas.
The last five quarters of earnings reports from Accenture have seen sales grow from $12 Billion to $15 Billion. During the same period net income has shown a slightly increasing trend while remaining between $1.4 Billion and $1.9 Billion. The last five quarters of earnings have reported total asset growth from $39.9 Billion to $44.3 Billion. Through the same period, total liabilities have grown slightly from $21.1 Billion to $23.1 Billion.
CarMax Inc. (KMX): CarMax (KMX) is the largest used car retailer in the United States and one of the largest wholesale vehicle auction operators. CarMax provides financing services, extended warranties, vehicle accessories and vehicle repair services. The quality of CarMax’s in-store and online experiences improves the purchasing experience for its customers.
CarMax’s income statement over the last five quarters has shown us an uptrend followed by a recent downturn. In five quarters, sales rose from $5.1 Billion to $8.5 Billion, then reported sales of $7.6 Billion in the last quarter. However, net income has seen a slight downtrend over the last four quarters. Dropping from about $436 Million to $159 Million. The balance sheet for the last five quarters has shown a steady increase for both total assets and total liabilities. Total assets have grown from $21.5 Billion to $26.3 Billion, while total liabilities have grown from $17.1 Billion to $21.1 Billion.
Car manufacturers have slowed their production over the last two years and the cost of used vehicles has risen quickly over the same period. The profit margin for CarMax’s operations has most likely shrunk, resulting in decreasing net income while continuing to increase the amount of business it is conducting.
Paychex Inc (PAYX): Paychex (PAYX) is a leading payroll, human resource, and benefits outsourcing industry. PAYX offers a growing number of payroll and human resource products and services. These services include payroll processing, retirement services, insurance, and outsourced human resources services.
The last five quarters of earnings reports have shown us sales figures that have oscillated between $1 Billion and $1.26 Billion. At the same time net income has followed a similar pattern, oscillating between $236 Million and $430 Million. The last four quarters of sales and net income have shown a slight upward trend. Over the last four quarters total assets and total liabilities have shown slight growth. In the last four quarters total assets rose from $9.2 Billion to $10.2 Billion and total liabilities rose from $6.2 Billion to $6.9 Billion.
Walgreens Boots Alliance (WBA): Walgreens (WBA) operates as a retail drugstore chain that sells prescription and non-prescription drugs, as well as general merchandise products. Its pharmacy also offers health and wellness services which include retail, specialty, infusion, and respiratory services. WBA operates through its drugstores, mail, by telephone, and online.
In the last five quarters Walgreens’ sales have remained in a range from $29.3 Billion to just over $34 Billion. During the same period net income has remained around $1 Billion with an outlier net income report two quarters ago with $3.5 Billion. Walgreens’ balance sheet has also remained in a range, with total assets staying between about $81 Billion and $96.5 billion. Interestingly, over the last five quarters total liabilities have developed a slight downward trend, starting at $69.2 Billion five quarters ago and ending at $61.8 Billion dollars last quarter.