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BJ's Wholesale Club Holdings, Inc. is a membership-only warehouse club chain. They operate on the east coast and also Ohio, Michigan, and Indiana. The company was formerly known as Beacon Holding Inc. but changed its name to BJ's Wholesale Club Holdings, Inc. in 2018. Is the stock a buy?
BJ's currently has a market cap of $10.067 billion. The company currently has a price/earnings ratio of 19.94. The company is growing. For the 12 months ending January 31, 2023, BJ's posted $19.31 billion which is a 15.89% increase year-over-year. BJ's earnings increased from $426.65 million to $513.18 million which is a 20.28% year-over-year increase. While the stock is trading at 19.94 times their earnings, the growth that the company is experiencing helps justify buying the stock at this premium. BJ's is also experiencing growth in cash flow. BJ's year-over-year cash flow growth is 16.8%. This is significantly higher than the industry average which is -8% according to Zacks.com. Cash flow is very important for any business, and the strong growth in cash flow that BJ's is experiencing is an important consideration when looking at the stock. BJ's is in debt though. In BJ's most recent quarter, they reported debt of $3.12 billion. This gives them a current ratio of .67. Follow us on social media to be notified of all future blog posts!
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Ryan Reynolds, most known for playing deadpool, has proven to be a very successful investor. He invested in Aviation Gin which was then sold to Diageo for an estimated $610 million dollars. Aviation Gin's shareholders initially received $335 million dollars and have the potential to make up to $275 million more based off of sales.
The sale of Mint Mobile's parent company, Ka'ena Corporation, to T-Mobile is worth up to $1.35 billion. Some Mint Mobile users were not happy with this sale to T-Mobile as Mint was marketed as being not one of the big phone carriers and now is. Ryan Reynolds must be happy though as he could end up making around $300 million dollars from this sale. Investing in startups is known to be risky, but when an investor also has a huge media brand, it is a lot less risky. When Ryan Reynolds invests in a company, he is able to give those companies a very powerful asset along with money which is his brand. He didn't just buy into Mint; he became the face of mint. He owns his own advertisement company which he used to make ads for Mint starring himself. He was able to connect his own brand to the company. Obviously, this strategy has proven to be very successful. When one has a following as big as he does, it basically comes with guaranteed sales. He's able to advertise these companies on his platforms and bring in a substantial amount of customers. Many celebrities are trying to do this. Some have failed, but many have seen huge success following this strategy. Conor Mcgregor started his own whiskey and sold it for over $500 million. Dwayne Johnson started his own Tequila brand and has seen tremendous success with it. Ryan Reynolds has found it better to buy stakes in already existing businesses and skyrocket them. The success of these celeb backed businesses has been fascinating to see, and it is a stark change from the investments in startups provided by venture capitalists which help fund startups but usually don't do work inside the companies. Follow our platforms down below and turn on notifications to always be notified of future blog posts.
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3 Stocks I'm Excited About Buying3/16/2023 
My whole strategy when it comes to investing is to buy stakes in businesses that I want to own for a significant period of time that is selling for a fair valuation. I want to own these companies for as cheap as I can get, and I want to buy as many shares of the company that I can get my hands on. That's my strategy. Here are three stocks that I plan on buying shares of.
1. SoFi Technologies SoFi is one of my favorite stocks in my portfolio. I own shares of the company already, but the stock has recently fallen to $5.45 a share. I was very happy to see the share price drop as I am trying to buy as many shares as I can as cheap as I can get them. I'm biased as I use the company and really like them, but when one looks at the growth rate that they are experiencing, I don't get how one would not come to the conclusion that this is a good business to own. 2. Meta Technologies This is probably going to be a controversial pick, but Meta has a very dominant ad business that is getting better. Their stock took a major downturn due to several factors one key one being Apple hurting is advertisement business. Last quarter, however, Meta showed that businesses return on investment for ad spend is growing, and I believe that it will keep getting better. I also see that Facebook, Instagram, and WhatsApp are all growing in users. WhatsApp is also starting to be monetized which I am a fan of. I think that this company is in a good position for growth. The share price has already been growing quite a bit though, but I still want to buy the stock. 3. Blackrock Blackrock is the largest asset manager. They currently have around $8.6 trillion in assets under management (AUM). Blackrock makes money by charging fees to manage those assets. This company is just so dominant. A lot of 401ks invest in funds owned by Blackrock. Many people invest in exchange traded funds (ETFs) that Blackrock owns. Most people reading this probably have some percent of their investment portfolio managed by Blackrock, and some don't even realize. Even during the market downturn last year, Blackrock saw inflows of cash into their funds. These are three stocks that I am excited to buy. These three stocks might not fit everyone's investment goals so don't invest in anything solely based off of this article. Follow us on social media and turn on notifications to be alerted of blog posts on other stocks.
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Bank Stocks Are Seeing Massive Recovery3/14/2023 
After the collapse of Silicon Valley Bank, Many bank stocks had a terrible Monday. First Republic Bank, for instance, lost 62% of its value. First Republic is an extreme example, but Charles Schwab, PacWest Bancorp, and Zions Bank Corporation also saw their stock fall Monday. I remember looking at Schwab specifically and thinking that it was crazy how much it fell. In my last post, I mentioned that I thought that bank stocks as a whole would fall short-term after Silicon Valley Bank’s collapse, but I mentioned that long-term I don’t think most of the banks will really be that affected. I simply didn’t see much danger in a bank run happening for most of these banks.
Tuesday, however, bank stocks saw massive recovery. Charles Schwab stock rose by 9%, and PacWest Bancorp, First Republic, and Zions Bank Corporation rose by 34%, 27%, and 4% respectively. Investors seemed to be buying as much of these companies as they possibly could. I admit that while I did think that these stocks were decreasing to an insane extent Monday, I did not think that they would start to recover so soon. I did think that the market was overreacting though. Obviously, Silicon Valley Bank’s collapse is a really big deal, but the fact that it was affecting these other companies to the extent that it did was just crazy. I thought the market would correct its mistake, but I thought it would take longer for that to happen. It’ll be interesting to see how these stocks perform over the next few days. Many bank stocks are increasing further during after hours trading. First Republic Bank has risen by another 8% since the market closed. Schwab is up another 3%, and Zion is up almost another 4%. I would like to see if these stocks can hold this momentum when the market opens up tomorrow. The market itself was up as well which is hopefully a good sign that the market is moving past Silicon Valley Bank’s collapse. Follow the blog on social media down below and turn on notifications to be alerted of every future blog post.
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Silicon Valley Bank has gone under. This bank was used and trusted by many companies out there including startups. Many startups had all of their money with this bank, and now they suddenly just don’t have access to that capital anymore. It’s a very big deal. The money startups use to pay employees and grow their business is just suddenly not there anymore. What’s really crazy about all this is that I can’t find anyone that saw this coming. Before Silicon Valley Bank’s stock crashed and the bank run happened, their stock was considered a buy by many stock analysts. Media personality Jim Cramer even urged his viewers to buy the stock last month. Will this affect other bank stocks?
Short-term the answer is obviously yes. I own shares in several banks, and they did not respond well to the news at all. SoFi is one of my biggest holdings, and their stock fell after the news. Their CEO, Anthony Noto, must not be too worried about it though as he bought a million dollars worth of the stock when it fell. While any bank can have a bank run, it’s important to realize the difference between Silicon Valley Bank and other banks. Silicon Valley Bank was used by a lot of startups that had accounts with $10 million+. Most banks do not have that much money in an average account. Bank accounts with $250,000 or less are FDIC insured. If one has $250,000 or less in their account, then they really don’t have to worry if their bank goes down or not because they are insured. People lost faith in Silicon Valley Bank (for good reason) and that triggered a bank run because most accounts there were larger than $250,000 by a significant amount. People panicked to get their money out because if the bank went under their account balance over $250,000 is not insured. I don’t see why this would create a domino effect with most other banks as people with less than $250,000 in their account don’t have much of a reason to create a bank run because their accounts are insured. I’m not sure what the entire fallout of this bank collapse will be. A lot of businesses are affected by this, and I do expect bank stocks to continue to fall short term. I’m not very worried about the bank stocks that I own long-term though, and I would like to add more shares of these companies to my portfolio at these cheaper prices. Follow us on social media down below and turn notifications on so that you never miss an article!
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Some people really dislike Jim Cramer. He, on his show mad money, gives his opinions regarding various stocks that he tells people to either buy or sell. He doesn't always get it right though, and many people believe that he is almost always wrong. It's become a popular meme to just do the opposite of everything that Jim Cramer says when picking stocks. Tuttle Capital, who also created the ETF SARK which shorts Cathie Wood's Ark fund, has created two ETFs LJIM which is meant to follow Jim Cramer's recommendations and SJIM which is meant to inverse Jim Cramer's recommendations.
SJIM will not be able to perfectly inverse everything that Jim Cramer says though. This is a good thing. If one really did do the opposite of everything that Jim Cramer says, they would have gone bankrupt shorting Apple, Facebook, Tesla, etc. Most likely, the fund will mostly just hold stocks that Cramer has been most bearish on. I don't think that it will be able to hold every stock that Cramer is bearish on though as he gives so many stock predictions all the time that the fund will not have the funds to keep doing so. LJIM will also not be able to perfectly replicate everything that Cramer says. It'll also likely hold stocks that Cramer has been the most bullish on. I believe that the fund will buy the stocks that Cramer pushes the most. Again, Cramer gives so many stock recommendations everyday that I don't see how the fund could actually buy every stock that Cramer says is a buy. Jim Cramer is not very happy about the creation of these ETFs which is obviously not very surprising, but he says that he is up for the challenge. I'm excited for these funds to release what stocks they are investing in. I'm also very excited to see which fund actually does better over the next 5-10 years. My prediction is that LJIM will do better than SJIM, but I believe that both of them will underperform the S&P. Also, before one invests into one of these funds, it is important to note the fees. Both funds have an expense ratio of 1.12%, so it is expensive to hold these funds. Start investing by visiting our finance tool page and downloading an investing app - www.financebycwt.com/investing-apps.html Follow us on social media so that you never miss a blog post!
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3 ETFs That Are Great for Roth IRAs2/23/2023 
The following are three ETFs that one should consider for their Roth IRA. While I do believe that all three of these are great ETFs that I wouldn't mind holding for decades, I don't necessarily believe that one should hold all three of these. Many contain overlapping stocks, so I would mostly just invest in the one that fits one's style in the best way.
1. Vanguard 500 Index Fund (VOO) This ETF tracks the S&P 500. 90% of active investors would have been better off just investing into the S&P, and Warren Buffett himself stated that he believed most people should just invest in the S&P. This ETF represents almost my entire Roth IRA portfolio. While there are a lot of ETFs out there that track the S&P, VOO seems to be the best one for long term investing. It has a very low expense ratio of .03%. 2. Schwab U.S. Dividend Equity ETF (SCHD) This ETF invests into high yield dividend stocks. This ETF is good for dividend investors who want to be exposed to a wide range of dividend stocks. The ETF has a dividend yield of 3.32%. It's also a cheap ETF to hold with an expense ratio of just .06%. 3. Vanguard Total Stock Market Index Fund This ETF invests into the entire U.S. stock market. This ETF moves very similar to VOO, but unlike VOO, it gives investors access to medium, small, and micro cap stocks. It's also very cheap to hold with an expense ratio of .03%. For investors who want access to the top 500 largest companies while also investing into smaller companies as well, this is a great ETF to hold. These are the three ETFs that I personally believe are the best for a Roth IRA or even just a long-term investor. Again, I don't believe one should buy into all three of these ETFs as they are a lot of stocks that are in all three, but I do believe that one should look at their investing strategy and incorporate the one that fits best. Start investing by visiting our finance tool page and downloading an investing app - www.financebycwt.com/investing-apps.html Follow us on social media and turn on notifications to be notified whenever we post a blog post.
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Is PayPal Stock a Buy?2/21/2023 
Covid-19 was great for PayPal. Everything shut down, so people bought everything online. PayPal was growing very quickly, and its stock price was growing just as fast. PayPal was very optimistic about their future and had some really ambitious growth expectations. Then, everything opened back up, and PayPal growth slowed. They failed to meet expectations last year, and the stock fell by around 70%. With the massive decline in price, is PayPal stock now a buy?
In the second quarter of 2022, PayPal posted its first net loss since 2014. This is when things got really bad for PayPal stock. Since then, Elliot Investing Management bought $2 billion worth of PayPal stock with the goal to cut costs and increase revenue. PayPal has since returned to profitability. They have grown their revenue, and the amount of people using their digital wallet. PayPal is back on the right trajectory. PayPal stock, at time of writing, trades 37 times their earnings per share. With that in mind, I wouldn't consider this a cheap stock. They are growing users and transaction volume which I like a lot. They are also extremely ahead of their competition in amount of places that accept them. PayPal is the most accepted digital wallet in North America. Apple Pay is second with less than half the locations. With PayPal's current valuation, I don't consider them undervalued, but I don't consider them overvalued either. I think they are valued pretty fairly. I think their stock could be in a good position for good growth over the long-term. Check out our affiliate page filled with investing apps and other finance related products and services - https://mez.ink/cwtpromo
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Is Roku Stock a Buy?2/16/2023 
Roku recently posted their latest quarterly report. They revealed that they added 4.6 million new accounts during the quarter which means that they now have 70 million users. Analysts expected them to add around 3 million new users. This is a very large expectations beat. They also brought in $867 million dollars vs $803 million in expected revenue. They did lose $1.70 per share, but they were expected to lose $1.72 a share. For the current quarter, Roku is expecting to bring in $700 million in revenue which is a decrease from last year. Wednesday, Roku stock saw a large increase of 12.1%, and today, they saw an increase of 11.2%. Is the stock really a buy though?
Roku, at time of writing, has a p/e (price/earnings) ratio of almost 60. That's a very high p/e ratio. I don't believe that a high p/e ratio is necessarily a bad thing. If a company is experiencing very high growth, buying the stock at a hefty premium is not a bad thing. I would classify Roku as a growth stock (although their current quarter is expected to be a down quarter from last year). They have experienced massive year over year growth from 2018-2021. 2022 was a tough year for the company though. It experienced slowing revenue, and the stock fell 80%. While the company did have a great last quarter in my opinion, I do have a hard time justifying buying the stock at a p/e ratio of 60 when I see so much uncertainty. Many people see Roku as a good acquisition play. Netflix is a candidate for this that I often see mentioned. Netflix could buy Roku to get into the hardware business. This is just speculation as Netflix has not stated any intention of buying Roku, but I have often heard people mention this when trying to justify Roku's high p/e ratio. I think an acquisition would be great for Roku, but I don't know if it would be great for Netflix. If they are trying to enter the hardware business, it would help that they are buying an established brand, but considering that Roku is currently trading at a $9.83 billion market cap and Netflix would have to pay an increase on that to get shareholders of Roku to approve, it would be a very expensive acquisition for Netflix to make. Roku is not a company that I would invest in at this time. I will be watching to see how this year goes for Roku, and if I can see the growth that they need to happen happening, then I would be willing to invest in the company. Check out our finance themed marketing page featuring various companies in the financial world - https://mez.ink/cwtpromo
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Not all the stocks that I own have a dividend. Some investors only invest into companies that have a dividend, but there are a lot of companies that I would rather reinvest their profits into growing their business instead of giving that profit to the shareholders. I want my ownership position to increase in value. That is what matters to me most as an investor. A lot of my stocks do pay a dividend though. I almost never invest into a company for a dividend. I like to invest into businesses that are growing quickly at fair valuations. A lot of the stocks I buy that fit that criteria, however, do offer a dividend.
A lot of investors like dividends as a way to increase their income. I know a lot of investors who are trying to use dividends to retire. I like to look at dividends as a way to increase my ownership percentages in companies. For example, I very recently started a position in Ally Financials. They pay a dividend yield of 3.69%. Once I am paid that dividend, I can look at Ally's valuation at that time and if it's reasonable, I can buy more shares with the money that they paid me. I like to look at dividends as almost "free money" that I can use to buy more shares with. I like to collect all my dividends and use them to buy more shares in the companies that I own, but I also like to use them to start positions in other companies also. Using the profits from the companies I own stakes in to buy stakes in other companies. I'm not trying to use dividends to boost my income; I am using dividends to boost my portfolio. I'm always trying to find more companies to invest in that fit my standard for investing. When I do, I'll buy the stock and wait for my shares to grow. I'll buy more of it with my money and any dividend that I might get, and I will keep doing that until the stock gets to a valuation I don't think is fair. I created a marketing page of finance themed products/services that I believe will help one with their financial goals. Check it out and see if one will help you to - https://mez.ink/cwtpromo |
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