- The Street Sheet
- Posts
- š„¤Coca-Cola to Convenience Stores
š„¤Coca-Cola to Convenience Stores
Plus, a look at the global cyber outage and who's to blame
![](https://media.beehiiv.com/cdn-cgi/image/fit=scale-down,format=auto,onerror=redirect,quality=80/uploads/asset/file/c13b4bd1-5781-4d08-98db-cf9fdc65776f/Midday_Trade_FINAL.jpg?t=1716387842)
Pencils down, itās time for lunch. Hereās what you missed this morning:
š„ | Market Snapshot: US stocks fell this morning, with the Dow shedding nearly 1% and the S&P 500 heading for its worst week in 3 months.
š | In focus: Freddie Mac announced that the 30-year fixed-rate mortgage averaged 6.77% for the week ending July 18, marking the lowest level since mid-March. This is a notable drop from the 6.89% figure reported in the prior week.
š¬ļø| Noteworthy: A recent incident at the Vineyard Wind offshore energy project caused debris, including shards of fiberglass, to scatter across Massachusetts beaches. The event is the latest in a series of failures involving wind turbines built by GE Vernova.
š„¤ | The Midday Trade: Coca-Cola to Convenience Stores. Scroll down for more.
Plus, todayās partner can help you election-proof your finances. Click here to learn more.
TOGETHER WITH DATALIGN ADVISORY
Navigate the uncertain waters of the upcoming election with confidence. Our expert-driven questionnaire, backed by years of financial expertise, delivers personalized insights tailored to your unique goals.
Secure your financial future today at datalignadvisory.com!
STREET STATS
MORNING MOVERS
AXP: Shares of American Express fell despite reporting a 39% increase in profit from a year ago. However, revenue fell below expectations (Barronās)
ARM: British semiconductor company Arm Holdingsā stock rose after an upgrade from Morgan Stanley to Overweight from Equal Weight (YF)
ISRG: Intuitive Surgicalās stock popped following stronger-than-expected Q2 results with EPS of $1.78, significantly higher than the projected $1.54 (YF)
PLUG: Shares of Plug Power tumbled after the company announced a $200 million common stock offering for āgeneral corporate purposesā (MW)
CMA: Comericaās stock dove after the bank reported net interest income of $533 million, which was lower than its net interest income a year ago (SA)
TOP CALLS
Equifax: Oppenheimer Maintains Outperform on Equifax, Raises Price Target to $300 (Trade It)
Sage Therapeutics: Mizuho Maintains Neutral on Sage Therapeutics, Lowers Price Target to $16 (Trade It)
Wintrust: Keefe, Bruyette & Woods Downgrades Wintrust Finl to Market Perform, Raises Price Target to $115 (Trade It)
Ladder Cap: BTIG Assumes Ladder Cap at Buy, Announces Price Target of $13.5 (Trade It)
Lilium: Cantor Fitzgerald Initiates Coverage On Lilium with Overweight Rating, Announces Price Target of $2 (Trade It)
Triumph Financial: Piper Sandler Maintains Underweight on Triumph Financial, Raises Price Target to $65 (Trade It)
THE MIDDAY TRADE
![](https://media.beehiiv.com/cdn-cgi/image/fit=scale-down,format=auto,onerror=redirect,quality=80/uploads/asset/file/b9ba5244-29c9-46c3-8d79-f6ce6823b76c/Street_Sheet_Web_Photos__69_.png?t=1721390784)
A Big Overreaction
Coca-Cola Femsa is the largest franchise bottler of Coca-Cola products in the world by volume, as well as a burgeoning convenience-store business. Femsa (FMX) is a holding company that owns a near-majority stake in it.
Its ADR spiraled after the CFO and COO left in February and is down nearly 9% YTD. The Mexican presidential election results also had a significant negative impact on the stock. Now, analysts say this was all an overreaction.
Growing Globally
According to analysts, the business is strong and growing. It has also been busy offloading nonessential businesses, allowing it to buy back shares and issue dividends to shareholders. Its convenience store arm, known as Oxxo, is in the process of expanding into South and Central America, as well as Texas.
It plans to build roughly 1,000 new stores in Mexico this year and just opened its 500th store in Brazil and Colombia. These stores generate 10% margins, the highest of any convenience store in the world.
Discount Shares
The ADR currently trades at slightly above 20 times forward earnings. According to Allspringās Derrick Irwin, this is a lower multiple than pre-pandemic, even though the company has higher growth and is committed to returning capital to its shareholders.
Additionally, Irwin values the company at $49.7 billion, and yet its market cap is only $37 billion, giving it a 26% discount. He expects that gap to start to close, so now may be investors chance to obtain maximum value.
TOGETHER WITH DATALIGN ADVISORY
Navigate the uncertain waters of the upcoming election with confidence. Our expert-driven questionnaire, backed by years of financial expertise, delivers personalized insights tailored to your unique goals.
Secure your financial future today at datalignadvisory.com!
SURVEY THE STREET
As youāve probably already heard or experienced, thereās been a global cyber outage thatās caused massive issues across industries, grounding flights, forcing some broadcasters off the air, and hitting both banking and healthcare services.
The cause stems from CrowdStrikeās product update, which is impacting users of Microsoft's Windows Operating System.
Shares of CrowdStrike are already falling this morning, and some are predicting the stock could see its worst trading day ever.
Will CrowdStrike see its worst trading day ever after it caused worldwide outages? |
Plus, Yesterdayās Poll + Results:
š©š©š©š©š©š© š Recover
š©š©š©š©š©š© š¤ Continue to feel the impact
What did you think of today's edition? |
This message is a paid advertisement for BioStem Technologies Inc. (OTC: BSEM). The Street Sheet (SS) receives a flat fee totaling up to $3,750. Other than the compensation received for this advertisement sent to subscribers, The Street Sheet and its principals are not affiliated with BioStem Technologies Inc. The Street Sheet and its principals do not own any of the stocks mentioned in this email or in the article that this email links to.
The Street Sheet is a research service not owned or managed by registered brokers and therefore this site does not make any investment recommendations. The information provided in this newsletter is not guaranteed as to the accuracy or completeness. Each user of SS chooses to do trades at their sole discretion and risk. SS is not responsible for gains/losses that may result in the trading of these securities.
This newsletter includes paid advertisements. The source of all third-party content in which SS receives some sort of compensation is clearly and prominently identified herein as "ad", "Sponsored", or āTogether Withā. Although we have sent you these advertisements, SS does not specifically endorse any third-party product nor is it responsible for the content of the advertisement or the experience with the third-party advertiser. Furthermore, we make no guarantee or warranty about what is advertised.
All investments involve risk, losses may exceed the principal invested, and the past performance of a security, industry, sector, market, or financial product does not guarantee future results or returns.
This communication from The Street Sheet is for informational purposes only. It is not intended to serve as a recommendation to buy, sell, or hold any security and is not an offer or sale of a security. Information contained within should not be perceived as a research report and is not intended to serve as the basis for any investment decision. Any third-party views reflected herein do not reflect the opinion of The Street Sheet. All investments involve risk and the past performance of a security does not guarantee future results or returns. There is always the potential for financial loss when investing in securities or other financial products. The information contained in this newsletter is subject to change without notice, and we do not undertake any obligation to update it. Readers are encouraged to conduct their own research and due diligence and seek advice from licensed professionals regarding their specific financial needs and circumstances. By reading this newsletter, you agree to hold us harmless from any and all losses, liabilities, costs, or expenses arising from your use or reliance on the information provided. The Street Sheet is reader-supported. When you buy through links on our site, we may earn an commission.
Reply