Stocks you should consider for your stock portfolio.
These stocks are showing strong support heading into August.
Along with earnings updates, these stocks are the ones to watch. Since many are at or near all-time highs, it’s best to wait for a dip in the market.
This month I discuss five stocks for you to consider.
- Asana, Inc. (ASAN)
- Autonation (AN)
- Chipotle Mexican Grill (CMG)
- Marvell Technology (MRVL)
- Snap, Inc. (SNAP)
The price for the stocks was recorded on August 18, 2021, at the closing of the market.
“Spend each day trying to be a little wiser than you were when you woke up.” – Charlie Munger
Asana, Inc. (ASAN)
Asana, Inc. and its subsidiaries operate a work management platform for individuals, team leads, and executives in the United States and internationally. The company provides a work management platform as a service that enables individuals and teams to get work done faster while increasing employee engagement. Asana was formerly known as Smiley Abstractions, Inc. and changed its name to Asana, Inc. in July 2009. ASANA was founded in 2009 and is located in San Francisco, California.
ASAN is on an uphill trend since early June. The customer revenue growth rate is north of 15%. Analysts believe the firm is destined to get bigger, and Asana’s CEO agrees. He bought 500,000 shares (nearly $20 million worth) in early June for a total of 4.1 million shares. Earnings are likely out in early August, so there’s a risk but analysts think Asana has a bright future.
52 week high. $76.10
52 week low. $20.57
Forward Dividend and Yield. N/A
Autonation, Inc. (AN)
AutoNation, Inc., through its subsidiaries, operates as an automotive retailer in the United States. The company operates in three segments: Domestic, Import, and Premium Luxury. The company also offers a range of automotive products and services, including new and used vehicles and parts and services. As of December 31, 2020, AutoNation owned and operated 315 new vehicle franchises from 230 stores located primarily in metropolitan markets in the Sunbelt region. The company also owned and operated 74 AutoNation-branded collision centers, 5 AutoNation USA used-vehicle stores, 4 AutoNation-branded automotive auction operations, and 3 parts distribution centers. AutoNation was started in 1991 and is headquartered in Fort Lauderdale, Florida.
In Q2, sales increased (up 54%) and earnings soared (up 243%; $4.83 per share was $2 above estimates). Same-store sales were about 40% and gross profit
per vehicle sold was 24% for used car sales and 89% for new car sales. Autonation is taking the money and buying back shares. The company has repurchased 15% of all shares outstanding. Recently, the company announced a new $1 billion buyback. After years of $4 earnings per share, analysts see the bottom line rising to $14.44 per share this year and reaching $13 next year. Analysts expect continued improved for the stock.
52 week high. $125.17
52 week low. $50.52
Forward Dividend and Yield. N/A
Chipotle Mexican Grill, Inc. (CMG)
Chipotle Mexican Grill, Inc., and its subsidiaries, owns and operates Chipotle Mexican Grill restaurants. As of December 31, 2020, Chipotle owned and operated 2,724 Chipotle restaurants in the United States, 40 international Chipotle restaurants, and 4 non-Chipotle restaurants. The company started in 2004 and is located in Newport Beach, California.
When 1,770 funds own shares, there is a lot of upside for the stock. Digital orders have seen a sharp rise for the company (up 134% in Q1) and make up half of all revenues. Cash-on-cash return are about 10% higher and the drive through pick-up has helped Cholte’s bottom line. The company has about 2,800 locations and plans to open 200 new stores this year with 6,000 or more down the road. Chipotle continues to refine the menu options and price hikes are likely to cover higher wages and attract more employees. In 2021, earnings are expected to come in around 75% higher than 2019’s and a 32% gain in 2022. The company had a strong Q2 (sales up 39% and same-store sales up 31%).
52 week high. $1,877.78
52 week low. $1,132.97
Forward Dividend and Yield. N/A (N/A)
Marvell Technology (MRVL)
Marvell Technology and its subsidiaries, design and sells analog, mixed-signal, digital signal processing, and embedded and standalone integrated circuits. Marvell has operations in the United States, China, Malaysia, the Philippines, Thailand, Singapore, India, Israel, Japan, South Korea, Taiwan, and Vietnam. The company is headquartered in Wilmington, Delaware.
Marvell’s management and 5G position expect $215 million in Q2 revenue. Another source of strength is Marvell’s partnership with Samsung to enhance 5G network performance. Marvell’s revenue rose to $832 million in the first quarter (up 20%) while per-share earnings of 29 cents beat estimates by 7%. The company’s networking business expanded 26% and was 60% of total sales. The storage business increased 17% that accounted for 36% of sales. Demand for Marvell’s data processing units remains high. Revenue for Q2 was $1.07 billion—up 47% and in line with estimates. Marvell expects the biggest opportunity in the cloud (bigger than 5G). Analysts expect earnings up 51% for 2021, and up another 33% in 2022.
52 week high. $61.48
52 week low. $32.53
Forward Dividend and Yield. 0.24 (0.40%)
Snap, Inc. (SNAP)
Snap operates as a camera company in the United States and internationally. The company offers Snapchat, a camera application with functionalities, such as Camera, Communication, Snap Map, Spotlight, and Stories that allow people to communicate through images and short videos. Snapchat also provides Spectacles, an eyewear product that connects with Snapchat and captures video from a human perspective. The company was formerly known as Snapchat, Inc. and changed its name to Snap Inc. in September 2016. The company was founded in 2010 and is located in Santa Monica, California.
Snap had a strong Q2 earnings that increased buyers. The company continues to expand its core camera offering and attract both younger users (75% of 13-to-34 year olds in the U.S., U.K., Australia, France, and the Netherlands use Snap!) and others. Active users were 293 million (up 18% from a year ago including 95 million in North America. Revenue per user increased (up 116% in North America in Q2). Revenue per user is a fraction of its peers (in the U.S., $22 for Snap, $59 for Twitter, $233 for Facebook). Management sees a lot of upside for the company. SNAP had a strong Q2 116% increase from a year ago while crushing estimates. The profit of 10 cents per share was 28 cents better than expectations. Management sees strong growth at 50%-plus for years.
52 week high. $26.43
52 week low. $7.68
Forward Dividend and Yield. N/A (N/A)
Note: The writer owns shares of SNAP.
This article is for informational purposes only. It should not be considered Financial or Legal Advice. Not all information will be accurate. Consult a financial professional before making any significant financial decisions.
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