inventory levels
How to Get a Car Deal in This Market
Matt Degen is an editor at Kelley Blue Book, a website that helps consumers research and purchase used and new vehicles.
Global supply-chain problems have reduced the inventory of new vehicles, resulting in long waits to buy a car. When will things get back to normal? None of us has a crystal ball, but our analysts think that toward the end of the year some of these supply constraints will have eased. And weâre already seeing that, as inventory levels are rising very, very slowly. Itâs baby steps toward some normalcy, though it may be a new normal. Because automakers have been selling cars even with leaner inventory, I think a lot of them are realizing that they donât need to make as many cars.
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Is there any hope for those who are in the market for a new car now? Yes. Itâs not as if all the car lots are empty. There are new and used cars to buy. You just may not get the exact car you want in terms of the color and features. Some automakers are letting customers configure the car they want on their website. After that, they work with the dealer to purchase the car. But the process of manufacturing and shipping the car could take several months.Â
If you need a car right now, look for a less popular smaller car, such as a sedan or a hatchback. SUVs, trucks and minivans are still in short supply. I know buying a small car isnât feasible for those who need a bigger family vehicle. But if you just need some good transportation, you should have better luck finding those types of cars.
If you find a car thatâs available, can you negotiate on price? Traditionally, dealers expected customers to negotiate. Customers would go to a site such as www.kbb.com, look up the manufacturerâs suggested retail price and negotiate from there. However, in todayâs environment, buyers can expect to pay the sticker price, or more. Weâre not seeing many deals because dealers donât need to offer you one. If they donât sell a car to you, theyâll sell it to the next person in line.Â
Buyers can still try negotiating on financing terms. We at Kelley Blue Book have always encouraged people to get preapproved for a loan from their bank or credit union. That way, they can go into the dealership with financing lined up and use that as a negotiation tool. The dealership may offer better financing, and that will save you money.Â
What about used cars? We suggest looking for a certified preowned vehicle, meaning it has been checked for damages and repaired and, more importantly, comes with a warranty. Financing terms are negotiable for used cars, too. If youâre looking for a particular car, new or used, thatâs not available in your area, you may be able to work with an out-of-state dealer. There are transport services that can bring the car to you, and the dealership can handle those details and help with any sales tax issues.
In light of the high cost of both used and new cars, does it make sense to repair your existing car to keep limping along? The general rule of thumb is that if the repairs cost what the car is worth or more, itâs probably time to look for a new car. But even if the repair is less than that, it may not be the smartest move. If youâre on the fence about certain repairs, have a mechanic look the car over. It might cost you, say, $150, but a good mechanic can let you know about your carâs current problems and potential problems in the future.Â
Dick’s Sporting Goods (DKS) Headlines Busy Week of Retail Earnings
Dick’s Sporting Goods (DKS, $107.93) headlines a busy week of retail earnings. The company is slated on the earnings calendar to report its fourth-quarter results before Tuesday’s open.
Supply-chain issues and inflation will likely be in focus when the sporting goods retailer reports, considering both have been key topics for companies this earnings season.
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“The term ‘supply chain’ was mentioned at least once during the earnings conference calls of 341 S&P 500 companies from Dec. 15 through Feb. 28,” says John Butters, senior earnings analyst at FactSet Research. He also notes that the term “inflation” was mentioned by 72% of S&P 500 companies in their earnings calls through Feb. 17.
In the company’s third-quarter earnings call, CEO Lauren Hobart said Dick’s “ordered aggressively to get ahead of this [supply chain] disruption,” and ended the period with inventory levels 7.3% higher than the year prior. She added that the fourth quarter was off to a “strong start,” and the firm was “well positioned” ahead of the key holiday shopping season.
As for inflation, Hobart noted that Dick’s passed along “some select cost increases” in hardline categories in Q3.
Wedbush analyst Seth Basham is “constructive” on the consumer discretionary stock ahead of its earnings report, with the analyst expecting a “good quarter.” This is due in part to the retailer’s “strong supply chain, better in-stocks and strong relationships with key vendors,” all of which “positioned the company favorably through the holiday season relative to competitors,” he writes.
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Basham admits potential headwinds (omicron, slow traffic due to weather, lack of economic stimulus) do exist, but “a fundamental shift in consumer behavior with an increased emphasis on health and fitness, participation in outdoor activities and a far greater propensity for athletic and lifestyle products should continue to drive growth in 2022.” He has an Outperform rating on DKS stock, which is the equivalent of Buy.
Analysts, on average, are forecasting fourth-quarter earnings of $3.43 per share for Dick’s Sporting Goods, which is 41.2% more than what the company reported in the year-ago period. Revenue, meanwhile, is expected to arrive at $3.3 billion, +5.4% year-over-year (YoY).
Oracle Stock Slumps Before Earnings
Oracle (ORCL, $76.92) stock hit a record high of $103.65 in mid-December after the enterprise software provider reported top- and bottom-line beats in its fiscal second quarter. However, shares have shed more than a quarter of their value since then, due in part to ORCL’s late-December announcement that it is buying healthcare IT company Cerner (CERN) for $28.3 billion in cash, its largest acquisition to date.Â
Can another solid earnings report help jumpstart ORCL, which has been one of the best stocks to own over the past 30 years?
Deutsche Bank analyst Brad Zelnick (Buy) is “bullish on software industry fundamentals” in early 2022, though he maintains a “healthy respect for the market and macro backdrop.” In other words, while the software industry appears well positioned following its recent decline into bear-market territory, he recommends “a balanced approach with greater valuation sensitivity than in recent years.”
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Zelnick has a Buy rating on ORCL and a $110.00 price target â representing implied upside of 55%. Most analysts are on the sidelines right now, though. Of the 27 following the stock that are tracked by S&P Global Market Intelligence, 18 have it at Hold. This compares to four who say it’s a Strong Buy, two that rate it at Buy, two that have it at Sell and one that believes it’s a Strong Sell.
As for Oracle’s fiscal third-quarter earnings report, due out after the March 10 close? Consensus estimates are for earnings of $1.18 per share (+1.7% YoY) and revenue of $10.5 billion (+4.0% YoY).
Rivian’s “Bait-and-Switch” Price Hikes in Focus Ahead of Earnings
Rivian Automotive (RIVN, $48.14) had a red-hot start after its November initial public offering (IPO), but the electric-vehicle maker quickly stalled out. Since hitting a record high near $180 on Nov. 16 â more than double its Nov. 10 IPO price of $78 â shares are down roughly 73%.
CFRA Research analyst Garrett Nelson recently slashed his price target on RIVN to $55 from $135 and lowered his rating to Hold from Buy following the stock’s slide.Â
“Customer backlash to the company’s bait-and-switch move has already been severe, with existing reservation holders posting their order cancellations on social media sites,” the analyst says.Â
Nelson is referring to Rivian’s announcement earlier this month that it is hiking prices on its R1T truck and R1S SUV by up to 20% â including for customers who had already placed pre-orders for the vehicles. The company quickly reversed course after consumers reacted negatively to the news, saying the price increases would only be applicable to orders placed after March 1.
Going forward, “The company faces a predicament where it will likely struggle to meet certain benchmarks on its path to profitability (positive gross margin, then positive EBITDA [earnings before interest, taxes, depreciation and amortization], and finally positive net income) absent higher prices realizations or significantly higher sales volumes,” Nelson writes.
When Rivian steps into the earnings confessional after Thursday’s close to unveil its fourth-quarter results, analysts, on average, are expecting the company to report a per-share loss of $1.72. On the top line, Wall Street pros are projecting $60.03 million. For reference, RIVN posted a per-share loss of $12.21 on $1 million in sales in its third quarter.
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Stock Market Today: Nasdaq Sets New Highs in Polarized Session
A flareup in European COVID-19 cases weighed on financial and energy stocks Friday, but relative strength in tech lifted the Nasdaq.
Hereâs How to Negotiate a House Price, Even in a Sellerâs Market
This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.
Homieâs Boise, Idaho Housing Market Update February 2021
Whatâs the deal with the Boise real estate market? Weâve got some observations and want to share them with you! All data pulled from the Intermountain MLS from 2/1/2021 to 2/28/2021. Monthly Sales Boise home sales took a slight dip from the previous month and continue to trend below 2020 numbers. In February, 32 fewer… Read more »
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Boise, ID Real Estate Market 2020 Recap & 2021 Forecast
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Mortgage Application Volume Continues Decline
Posted To: MND NewsWire
The volume of mortgage applications for both home purchase and refinancing fell for the third straight time during the week ended February 19. The Mortgage Bankers Association (MBA) says its Market Composite Index, a measure of that volume, dropped 11.4 percent on a seasonally adjusted basis. It was the largest single week decline since the week ended April 3, 2020. On an unadjusted basis the index was down 10.0 percent. The Refinancing Index decreased 11 percent from the previous week but was still 50 percent higher than the same week one year ago. The refinance share of mortgage activity decreased to 68.5 percent of total applications from 69.3 percent the previous week. The seasonally adjusted Purchase Index dropped 12 percent and was 8 percent lower before adjustment. Activity was 7 percent…(read more)
Home Decor – Rents, Home Prices In New York City Drop At Steepest Pace On Record In January – Fintech Zoom
Home Decor – Rents, Home Prices In New York City Drop At Steepest Pace On Record In January Fintech Zoom