• Mesoblast expands compassionate use COVID-19 program

    Mesoblast expands compassionate use COVID-19 programMesoblast has developed a cellular therapy that may significantly reduce deaths among the most severely sick COVID-19 patients. CEO Dr. Fred Grossman joins Yahoo Finance’s On the Move to discuss what this development could mean in the fight against the virus.

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  • Should Value Investors Buy T-Mobile (TMUS) Stock?

    Should Value Investors Buy T-Mobile (TMUS) Stock?Oakmark Funds recently released its second-quarter investor letter – a copy of which is available for download here. In their recent letter to investors, Oakmark Funds announced that OAKMX portfolio returned 23.0% in the second quarter, as compared to 20.5% of the S&P 500 Index. You should check out Oakmark Funds top 5 stock picks […]

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  • Did Hedge Funds Make The Right Call On Marvell Technology Group Ltd. (MRVL) ?

    Did Hedge Funds Make The Right Call On Marvell Technology Group Ltd. (MRVL) ?We know that hedge funds generate strong, risk-adjusted returns over the long run, which is why imitating the picks that they are collectively bullish on can be a profitable strategy for retail investors. With billions of dollars in assets, professional investors have to conduct complex analyses, spend many resources and use tools that are not […]

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  • This Is How AMD Stock Will Beat Investor Expectations

    This Is How AMD Stock Will Beat Investor ExpectationsFor the last few months, Advanced Micro Devices (NASDAQ:AMD) failed to outperform Nvidia (NASDAQ:NVDA) on the markets. But AMD stock is still a rewarding holding compared to Intel (NASDAQ:INTC).Source: Fabio Alcini / Shutterstock.com Investors are betting correctly that Nvidia's growth prospects in graphics processing cloud computing will lift its revenue. Intel's desktop chip refresh will keep the blue-chip giant relevant but AMD's Ryzen series continues to grow a larger user base.For now, AMD is stuck in a narrow trading range until its next quarterly earnings report. It posted its last report on April 28. What will AMD's results look like during the Covid-19 led economic slowdown in the period?InvestorPlace – Stock Market News, Stock Advice & Trading Tips Strong Gaming Demand to Lift AMD StockElectronic Arts' (NASDAQ:EA) strong stock performance suggests that gaming demand is hotter than ever. More consumers stayed at home for much of 2020. * The 7 Best Stocks to Invest in Right Now With nothing else to do for entertainment, game sales rose. If console sales rose, AMD's semi-custom revenue would improve in the period. Still, chances are high that consumers held off buying a second or alternative console. Click to EnlargeSource: https://ift.tt/1Cqi78v As the table shows, AMD trails its peers on value, while its margin of safety is only 7%. That might explain why the stock is stuck in a trading range.No one will want to invest in the current console platform when a new Xbox and PlayStation are available later this year. With Microsoft (NASDAQ:MSFT) selecting AMD to power the newest Xbox, the refresh will add plenty of new revenue.In the PC market, where consumers often upgrade graphics processing unit (GPU) to support new game titles, AMD is still behind Nvidia. Sales of its previous generation Vega in 2017 started slowly. But the current generation GPU, Navi, may see better adoption rates.AMD may meet the high demand expectations for Navi. When Vega first launched, cryptocurrency miners bought the most available GPUs. This time, AMD introduced RDNA architecture.On paper, RDNA looks great. Its strong performance and power efficiency is a result of 7nm processing. Previous chips used 14nm processors. GDDR6 memory is faster, while Navi supports PCI Express 4.0. These specifications will enticing gamers to buy an AMD-branded GPU. AnnouncementsOn June 16, AMD unveiled three new desktop processors. The company added the Ryzen 9 3900XT, Ryzen 7 3800XT, and Ryzen 5 3600XT to its line-up of third-generation Ryzen desktop chips.AMD priced these products at $499, $399, and $249, respectively. The "XT" branding represents maximizing performance under any workload. At the high-end price, customers may hold off buying these chips for now. Instead, they may wait for the Ryzen 4 release, which is a 5nm process.Holding off on buying the XT would save consumers money. They would get the last-generation chip at a lower price. Conversely, buying an Intel chip instead is another option. But Intel's 10nm chips may suffer from poor yield, limiting its availability.The company's CFO admitted the lower profitability of 10nm and the low yields. Despite Intel's issues, this benchmark showed that Intel's Core i7-1165G7, at 10nm, ran up to 30% faster than AMD's Ryzen 7 4800U, a 7nm CPU, in single-threaded workloads.AMD's Ryzen 3900XT has 12 cores and 24 threads:MODEL CORES/ BOOST5/ BASE6 FREQUENCY (GHZ) TOTAL CACHE (MB) TDP7 (WATTS) Platform SEP8 (USD) EXPECTED AVAILABILITY THREADS AMD Ryzen™ 9 3900XT 24-Dec Up to 4.7/3.8 70 105 AM4 $499 7-Jul-20 AMD Ryzen™ 7 3800XT 16-Aug Up to 4.7/3.9 36 105 AM4 $399 7-Jul-20 AMD Ryzen™ 5 3600XT 12-Jun Up to 4.5/3.8 35 95 AM4 $249 7-Jul-20Data courtesy of AMDFor videographers and Youtube channel owners, the high core count will offer high video processing performance. Therefore, investors may expect good sales numbers for these CPUs in the quarter ahead. Your TakeawayAMD shares are ready to rocket higher. To do that, it needs to report a faster pace of chip sales and Navi GPU sales that beat expectations. Investors may model such a scenario here and come up with a price target in the $65.00 range.Disclosure: As of this writing, the author did not hold a position in any of the aforementioned securities. More From InvestorPlace * Why Everyone Is Investing in 5G All WRONG * America's 1 Stock Picker Reveals His Next 1,000% Winner * Revolutionary Tech Behind 5G Rollout Is Being Pioneered By This 1 Company * Radical New Battery Could Dismantle Oil Markets The post This Is How AMD Stock Will Beat Investor Expectations appeared first on InvestorPlace.

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  • Barron’s Picks And Pans: Facebook, Nokia, Regeneron And More

    Barron's Picks And Pans: Facebook, Nokia, Regeneron And More* This weekend's Barron's cover story presents the results from the Barron's 2020 Midyear Roundtable. * Other featured articles look how to manage risk in a time of market volatility and which companies the U.S. government is and is not bailing out. * Also, the prospects for some retail stocks, a telecom, a social media giant and more.Cover story "Barron's 2020 Midyear Roundtable: 37 Picks From Our Investment Pros" by Lauren R. Rublin shows why the panelists say current trends have created ample opportunities to invest in good companies selling at deep discounts.Darren Fonda's "Market Volatility Is Back. Here's How to Manage Risk" points out that it might seem like a good idea to hedge portfolios against another downturn, but hedging strategies come at a price. What does that mean for the likes of Home Depot Inc (NYSE: HD)?In "The U.S. Is Bailing Out Companies. Regeneron Doesn't Need the Help," Ben Levisohn examines how the government is deciding who the winners among individual companies are and giving losers another chance. What about Regeneron Pharmaceuticals Inc (NASDAQ: REGN)?A pre-IPO business development company has invested in a lot of interesting assets, according to "Information Is Scarce on a Palantir IPO. Here's One Way to Play It" by Eric J. Savitz. That includes nearly 20% of its assets in this secretive data-analytics company.In Teresa Rivas's "3 Retail Stocks That Sell More Than Just the Product," see whether selling the experience, not just the product, is still how retailers such as Nordstrom, Inc. (NYSE: JWN) survive in the age of Amazon.See Also: Why Tesla Margin Requirement Changes Could Be A Buying Opportunity"Nokia Stock Stands to Gain From 5G Spending" by Eric J. Savitz makes a case that struggling telecommunications maker Nokia Corp. (NYSE: NOK) will benefit as wireless operators upgrade their networks. See how resistance to Huawei also helps.The hope that technology would lower the cost of pay-TV is long gone. So says Alex Eule's "Cutting the Cord Is No Longer Cool. It's Not Even Cheap." See what that could mean for Comcast Corporation (NASDAQ: CMCSA) and others.In "Facebook Stock Remains Resilient Amid Controversy," Max A. Cherney shows why Wall Street's outlook for Facebook, Inc. (NASDAQ: FB) revenue has barely budged, even as 1,000 major advertisers pause their spending on the platform.Also in this week's Barron's: * How we're all tech investors now, for better or worse * How the coronavirus contraction is unlike past recessions * How to play a pre-election bull market in stocks * What is at stake in the reopening of schools * The relevance of China opting to cool off overheating stocksSee more from Benzinga * Bulls And Bears Of The Week: Apple, Facebook, Tesla And More(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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  • There’s No Good Reason for Long-Term Investors to Buy Luckin Stock

    There’s No Good Reason for Long-Term Investors to Buy Luckin StockAs of June 29, Beijing-based coffee retailer Luckin Coffee (OTCMKTS:LKNCY) got delisted from the NASDAQ Exchange. Now, Luckin stock is a penny stock that may also be a bankruptcy-candidate.Source: Keitma / Shutterstock.com There has recently been increased day trading interest in shares of potentially bankrupt companies, such as Hertz Global (NYSE:HTZ), JCPenney (OTCMKTS:JCPNQ), and Whiting Petroleum (NYSE:WLL). As a result many analysts are wondering if equity markets have become over-speculative in the post-coronavirus world.It might be time for investors to accept the reality that some companies are bankrupt and their stocks are not worth their hard-earned cash. Although Luckin Coffee has not yet declared bankruptcy, investors may be better off if they look for better companies for their long-term portfolios.InvestorPlace – Stock Market News, Stock Advice & Trading Tips How Luckin Stock Got DelistedThe Xiamen-based company started operations in Oct. 2017. Since its early days, Luckin stock has been touted as the Starbucks (NASDAQ:SBUX) of China. * The 7 Best Stocks to Invest in Right Now In May 2019, the company went public in the U.S. as an American Depositary Receipt (ADR) at an opening price of $25. Luckin Coffee offered 33 million American Depository Shares in its IPO. And it raised $571.2 million through the IPO.In China, listing requirements are in general quite strict and lengthy. Chinese stock exchanges would have required Luckin to have been profitable over the three years prior to the proposed IPO date. In other words, it could have not listed in China. The group possibly initially chose the U.S. due to easier listing requirements for ADRs.The LK share price hit an all-time high of $50.38 on Jan. 17. But the story has changed and gone literally downhill since then. On April 2, management said that it was investigating reports that senior executives and employees fabricated transactions totaling $310 million (or 2.2 billion RMB). It also urged investors to not rely on its previous financial statements for the nine months ended September 30, 2019.As a result, Luckin stock tanked from a closing price of $26.20 on April 1 to an opening price of $4.91 the next morning. Then trading got halted on April 7, when the share price was at $4.39.On April 27, the headquarters of the scandal-hit chain was raided by regulators in China. And the stock started trading again on May 20. In late June, the company notified shareholders of the delisting.Finally, in recent days, shareholders voted out its chairman Charles Lu, who was also a co-founder. However, the issue of trust is likely to linger over Luckin Coffee for a long time to come. It would also mean the company would find it extremely difficult to raise fresh capital, at least in the U.S. Where to Invest for the Love of Coffee in ChinaMany know China as a nation of tea-drinkers. But coffee consumption has also begun to take off in the country. That consumer trend was in part behind the initial interest behind Luckin stock.Are you an investor who would like to take invest in the potentially lucrative market of coffee in a land of 1.4 billion residents? Then you may want to do due diligence on SBUX stock. Starbucks has over 4,300 stores across China.On April 28, the Starbucks chain released Q2 Fiscal 2020 results that said its quarterly global same-store sales fell 10%. Americas and U.S. comparable store sales declined 3%. For the quarter, adjusted earnings per share came at 32 cents. Revenue was $6 billion, a decline of 5% from the prior year due to lost sales related to the viral pandemic.Starbucks management also warned that third-quarter results would take a larger hit from the COVID-19 outbreak, even though sales in China were recovering.Starbucks opened 255 net new stores in the quarter, which means a 6% YoY unit growth. At the end of the period, it had 32,050 stores globally, of which 51% and 49% were company-operated and licensed, respectively.So far in 2020, SBUX stock is down about 15.5%. Long-term investors may consider buying dips on SBUX stock, especially if it goes toward $70 or lower. I regard it as one of the best dividend-paying stocks to buy, especially in a long-term portfolio. The current dividend yield stands at 2.3%. The Bottom Line on Luckin StockFollowing a major revenue fraud, the rather short trading history of Luckin stock in the U.S. seems to have come to a halt. But there are other ways to invest in the growing consumer markets in China.In addition to the Seattle-based coffee chain Starbucks which has established Chinese operations, investors may also consider researching China ETFs. Examples would include the Global X MSCI China Consumer Discretionary ETF (NYSEARCA:CHIQ), the VanEck Vectors ChinaAMC SME-ChiNext ETF (NYSEARCA:CNXT), or the Xtrackers MSCI All China Equity ETF (NYSEARCA:CN).Tezcan Gecgil has worked in investment management for over two decades in the U.S. and U.K. In addition to formal higher education in the field, she has also completed all 3 levels of the Chartered Market Technician (CMT) examination. Her passion is for options trading based on technical analysis of fundamentally strong companies. She especially enjoys setting up weekly covered calls for income generation. As of this writing, Tezcan did not hold a position in any of the aforementioned securities. More From InvestorPlace * Why Everyone Is Investing in 5G All WRONG * America's 1 Stock Picker Reveals His Next 1,000% Winner * Revolutionary Tech Behind 5G Rollout Is Being Pioneered By This 1 Company * Radical New Battery Could Dismantle Oil Markets The post There's No Good Reason for Long-Term Investors to Buy Luckin Stock appeared first on InvestorPlace.

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  • Trivago CEO Says Domestic Travel Is Returning First

    Trivago CEO Says Domestic Travel Is Returning FirstJul.10 — Trivago Chief Executive Officer Axel Hefer discuss rapidly changing rules for European travel and how Covid 19 is transforming travelers preferences. He speaks with Anna Edwards and Matt Miller on “Bloomberg Markets: European Open.”

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  • Does Ant Financial’s IPO Make Alibaba Stock a Buy Now?

    Does Ant Financial’s IPO Make Alibaba Stock a Buy Now?Alibaba (NYSE:BABA) is a stock I have loved, and the recent price action has been rewarding for those who are long. Alibaba stock burst higher on July 8, rallying 9% to new all-time highs.Source: Kevin Chen Photography / Shutterstock.com The action comes after several strong days of gains, with BABA stock up 15% so far this week and almost 20% for the month of July. In short, this stock has been a monster and Ant Financial's potential IPO only makes it more attractive.Alibaba holds a 33% stake in Ant Financial, which is seeking an IPO in Hong Kong. The company is looking at a valuation of more than $200 billion, with plans to sell 5% to 10% of its shares.InvestorPlace – Stock Market News, Stock Advice & Trading TipsIt's not clear how much of its stake Alibaba may pare down in the offering. Whether it does or not though doesn't matter, as investors will want to see how Ant performs in the future.That is, if the stock appreciates, so too will Alibaba's stake. Sad as it may seem, many investors in Alibaba may have very well not even realized it has a stake in Ant Financial. That may help explain why shares rallied 9% on the day and gained momentum through the trading session, as they made this realization.Obviously the potential IPO won't happen overnight, but it should be viewed as a positive catalyst for Alibaba. For me, Alibaba's stake in Ant has been one of the reasons I'm bullish on BABA. Thankfully though, there are other reasons to consider a long position too. Valuing Alibaba StockOne of my favorite things above Alibaba is its underappreciated business. Not that Alibaba is really flying under the radar so to speak — with its $668 billion market capitalization and huge rally over the past few weeks — but it's not the size of Amazon (NASDAQ:AMZN), Apple (NASDAQ:AAPL) and others.I have argued in the past that companies still churning out growth amid the novel coronavirus deserve a higher valuation. That's even more true for companies with robust growth. * The 7 Best Stocks to Invest in Right Now Consensus expectations call for more than $94 billion in sales this year. If hit, it will represent more than 30% revenue growth from fiscal 2020 (last year). Revenue growth of 20%-plus is expected to continue for the next few years, too.Alibaba has beat on earnings estimates for seven consecutive quarters. As it stands now, forecasts call for earnings of almost $9 per share this year. That leaves the stock trading at less than 29 times earnings. While not cheap by traditional measures, let's remember a few things.First, it holds the most dominant e-commerce position in China, a country that has a booming middle class and a population four times the size of the U.S. Second, it's diversifying into other revenue segments, like cloud computing and digital entertainment.Finally, it has better revenue growth and a lower price-earnings ratio than Apple, Amazon, Microsoft (NASDAQ:MSFT) and Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL).These other companies have great attributes too, but I feel that Alibaba stock doesn't get the same type of respect these other names do. It has solid, secular growth and a reasonable valuation. That's oftentimes a tough combination to find. Trading BABA Stock Click to EnlargeSource: Chart courtesy of StockCharts.comThe fundamentals and future catalysts check out, but what about the technicals?The biggest critique investors could have regarding the chart is that Alibaba stock has gone too far, too fast. On the week of July 5, the first full week of the month, shares burst through $230 resistance. This mark twice held shares in check, but finally gave way.After the Ant Financial news hit the wires, shares were able to push through the 123.6% and 138.2% extensions. With a close above the latter, it technically puts the 161.8% extension in play, up at $268.96.While the stock is starting to get extended, its overbought/oversold readings are not in extreme territory just yet. If Alibaba stock pulls back and moves below the 123.6% extension, it could fill the gap from July 8 and potentially retest $230. For long-term investors who missed the boat, this level could provide an excellent buying opportunity.Matthew McCall left Wall Street to actually help investors — by getting them into the world's biggest, most revolutionary trends BEFORE anyone else. Click here to see what Matt has up his sleeve now. As of this writing, Matt did not hold a position in any of the aforementioned securities. More From InvestorPlace * Why Everyone Is Investing in 5G All WRONG * America's 1 Stock Picker Reveals His Next 1,000% Winner * Revolutionary Tech Behind 5G Rollout Is Being Pioneered By This 1 Company * Radical New Battery Could Dismantle Oil Markets The post Does Ant Financiala€™s IPO Make Alibaba Stock a Buy Now? appeared first on InvestorPlace.

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  • 3 ASX dividend shares raising their dividend like clockwork

    Money

    In this era of COVID-19, it’s hard to find ASX dividend shares that are still increasing their payments to shareholders.

    We have seen Ramsay Health Care Limited (ASX: RHC) end its dividend growth record which went back 20 years to 2020. The reduction of elective surgeries really took its toll.

    But there are still some businesses out there that are still growing their dividends despite COVID-19.

    Here are three ASX dividend shares that are raising their dividend:

    Dividend share 1: APA Group (ASX: APA)

    APA Group is one of the biggest infrastructure businesses on the ASX.

    The business owns a vast network of 15,000km of natural gas pipelines around Australia with a presence in every mainland state and the Northern Territory. It also owns or has interests in gas storage facilities, gas-fired power stations and renewable energy generation (wind and solar farms). APA owns, or manages and operates, a portfolio of assets worth more than $21 billion and delivers half the nation’s natural gas usage.

    The ASX dividend share generates reliable cashflow each year, which is why it was able to stick to its distribution guidance of 50 cents per unit this year, this was growth of 6.4% compared to last year. I think that’s solid in this environment.

    APA has grown its distribution every year for a decade and a half. At the current APA share price, it offers a FY20 distribution yield of 4.6%.

    Dividend share 2: Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

    This business, commonly known as Soul Patts, is one of the best dividend share ideas around in my opinion.

    Soul Patts doesn’t have a huge yield, its grossed-up dividend yield for FY20 is 4.3% at the current Soul Patts share price. But it’s the consistency of the dividend growth that is particularly attractive to me about Soul Patts. It has grown its dividend every year since 2000. After Ramsay’s dividend capitulation, Soul Patts has the best dividend growth streak on the ASX.

    Indeed, the ASX dividend share has actually paid some sort of dividend every year in its listed history dating back to 1903. That’s great reliability. 

    The investment conglomerate is invested in a wide variety of different businesses including telecommunications, building products, property, pharmacies, swimming schools, resources and listed investment companies.

    Some of its largest holdings include shares like TPG Telecom Ltd (ASX: TPG), Brickworks Limited (ASX: BKW), Australian Pharmaceutical Industries Ltd (ASX: API), Bki Investment Co Ltd (ASX: BKI) and Milton Corporation Limited (ASX: MLT).

    Each year the portfolio sends a stream of investment income to Soul Patts. The investment house pays for its expenses and then pays out most of what’s left as a dividend. In FY19 it kept around 20% of its net operating cashflow to re-invest into more opportunities.

    Not only does Soul Patts retain a fifth of its cashflow which will help grow the dividend with new investments, but its current investments will also hopefully grow their own dividends.  

    Dividend share 3: Rural Funds Group (ASX: RFF)

    Rural Funds is another great ASX dividend share in my opinion.

    Each year the farmland real estate investment trust (REIT) aims to increase its distribution by 4% each year. It has grown the distribution every year since it started paying one in 2014.

    It’s able to grow the distribution due to two key factors. The first reason is that it has built-in rental increases with all of its farm contracts. That rental indexation is either a fixed 2.5% annual increase or it’s linked to CPI inflation, with market reviews. These rental increases alone will generate pleasing distribution growth for Rural Funds.

    The other main contributor for distribution growth is that Rural Funds invests in farm productivity improvements for the benefit of its tenants. Improving the farm increases future rental income, creates a good relationship with the tenant and hopefully improves the value of the farm.

    I like the diversification of Rural Funds’ portfolio. It owns farms in the following sectors: cattle, cotton, almonds, vineyards and macadamias. Occasionally it will make an acquisition. 

    At the current Rural Funds share price it offers a FY21 distribution yield of 5.6%.

    Foolish takeaway

    I think each of these ASX dividend shares can continue to grow their dividends throughout the 2020s. At the current prices I’d probably go for Soul Patts because of it how diversified it is and its ability to invest in anything, including farmland and infrastructure if it wanted to.  

    Where to invest $1,000 right now

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

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    Motley Fool contributor Tristan Harrison owns shares of RURALFUNDS STAPLED and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of and has recommended Brickworks, RURALFUNDS STAPLED, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of APA Group. The Motley Fool Australia has recommended Ramsay Health Care Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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  • Analysis: is the Woolworths share price a buy?

    Chess board with person knocking over black piece with white piece

    The Woolworths Group Ltd (ASX: WOW) share price has climbed 6.2% higher this year, but is the ASX 20 share a good buy?

    What industry does Woolworths operate in?

    Whilst we all basically know what Woolies does, for investment purposes the Aussie supermarket is classified as operating in the Consumer Staples sector. More specifically, its Global Industry Classification Standard (GICS) industry group is Food & Staples Retailing.

    That’s largely due to the company’s flagship Woolworths Supermarkets business. I think that’s a pretty fair analysis given the group’s Australian and New Zealand food segments contributed more than 75% of its half-year revenue in FY 2020.

    What’s been happening to the Woolworths share price?

    As mentioned, the Woolworths share price has climbed 6.2% higher in 2020. Woolies certainly wasn’t immune from the March bear market, but also didn’t rocket higher like some of its competitors’ shares.

    I think one big factor contributing to the company’s share price was its large hotels business, ALH Group. Tight coronavirus restrictions have affected patronage in the hospitality industry which has significantly impacted revenues for the group.

    I also feel tough conditions for retail have weighed on investors’ minds given the group’s ownership of the Big W chain.

    The Woolworths share price has had a bullish run in the last couple of months, however, with the supermarket giant’s shares up 12.7% since 22 May. 

    Given the S&P/ASX 200 Index (ASX: XJO) is down 11.4% this year, Woolies has outperformed the benchmark index by 17.6%.

    Who are the major competitors?

    Obviously, the major competitor that springs to mind is Coles Group Ltd (ASX: COL). Coles is Woolworths’ major supermarket competitor, with the two operating a duopoly of sorts within the industry (albeit with Aldi and IGA snapping at their heels).

    However, Woolworths is a conglomerate. As well as food, and the aforementioned hotels and retail businesses, Woolworths has a sizeable liquor business. Endeavour Drinks generated $4,775 million in FY20 half-year revenue with a portfolio of prominent brands like Dan Murphy’s and BWS.

    Given its conglomerate status, Wesfarmers Ltd (ASX: WES) is arguably a better comparison to Woolwoths. Wesfarmers sold off another $1.1 billion stake in Coles (leaving it with a 4.9% interest) but has interests in many different businesses.

    In fact, Wesfarmers’ current portfolio includes household hardware (Bunnings), retail (Kmart and Officeworks), Chemicals, Industrials and others.

    The Wesfarmers share price is up 9.8% this year while the Coles share price has rocketed 18.0% higher.

    Is the Woolworths share price a buy?

    Whilst devastating for large parts of the economy, overall the COVID-19 pandemic has been positive for ASX supermarkets. With Aussies spending considerably more time at home, the supermarkets are very much an essential part of our economy right now. Naturally, this has been good for earnings.

    The Woolworths share price has done well to climb higher but currently trades at a price to earnings (P/E) ratio of 19.2. That’s very similar to Coles (19.9) and cheaper than Wesfarmers (23.6).

    Factoring in a conglomerate discount compared to Coles as a pure supermarket play, I don’t think Woolies shares are particularly cheap right now.

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    Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of COLESGROUP DEF SET, Wesfarmers Limited, and Woolworths Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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