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Movado Group Incorporated Pulls Back After Robust Results

We started to get interested in the Movado Group (NYSE: MOV) a few years ago. The company is a retailer of watches and other consumer discretionary items and its share price had been pulling back from a high.

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May
28, 2021

4 min read

This story originally appeared on MarketBeat

Movado Group Incorporated Fueled By Reopening Tailwind
We started to get interested in the Movado Group (NYSE: MOV) a few years ago. The company is a retailer of watches and other consumer discretionary items and its share price had been pulling back from a high. With the share prices falling the value was improving and so was the dividend yield and all in the face of a rapidly improving consumer outlook. There were a lot of things to like. And then came the pandemic. When covid-19 shut down the world the Movado Group’s Revenue was cut in half. Fortunately, swift decisions by the company’s executives helped preserve the fortress balance sheet and have the company set up for robust gains in the post-pandemic world. 
Movado Group Inc Bounces Back In Q1 Fiscal 2022
Movado Group Inc had a great first quarter in which they brought in 134.8 million dollars. This is up 93.4% from last year and beat the consensus by nearly 2000 basis points but the two-year comp is still negative. Despite this, there are other glimmers of hope within the data that point to accelerating momentum for the business. The US segment, which has so far had the quickest rebound, saw its net sales exceed the pre-pandemic level for first-quarter results by nearly 11%. Sales in the international segment are down 20.1% for the quarter due to continued closures of stores in Europe and Latin America. Sales through Movado.com are up 250% YOY And we are not surprised to hear that. Digital is a driving force of the evolving Movado strategy. 
Other glimmers of hope emerge as we move down the report. For one, the adjusted gross margin widened by 420 basis points versus the prior year to come in at 55% of revenue. This time, the 2-year comparison is positive with the adjusted gross margin up more than one full percent from the first quarter of fiscal 2020. The adjusted operating income of $14.1 million reverse is a loss in last year’s quarter and nearly doubles the operating profit of 2 years ago.  The margin gains can also be seen on the bottom line with GAAP earnings of $0.52 and adjusted earnings of $0.43 exceeding the consensus estimates. On an adjusted basis the $0.43 beats by $0.52 and is nearly double what the company posted 2 years ago. 
“As we look to the remainder of the year, we feel good about the underlying momentum of our business and the growth prospects across our portfolio of brands. However, we remain cautious given continued uncertainty relating to the pandemic. We are hopeful that as more people become vaccinated, we will see an acceleration in reopening of markets in Europe and Latin America. Given our momentum from the first quarter combined with the strength of our balance sheet, we are well-positioned to deliver sustainable growth over the long-term.” Says CEO Efraim Grinberg.
The Movado Group Incorporated Dividend Looks Safe Enough
We say the Movado Group Incorporated dividend looks safe enough but there is a caveat. The company takes its fortress-like balance sheet very seriously, when the bottom fell out of business in calendar 2021 the very first thing they did was cut the dividend so there is a risk of that happening again. That said, the company has reinstated the payment at the previous pre-pandemic level and looks like it could easily sustain a dividend increase this year if not now. The company has been able to maintain its strong balance sheet, it has $187 million dollars on hand, and has been able to reduce debt by more than $70 million dollars to free up more cash flow. The second-quarter distribution goes ex-dividend on June 8th and annualizes to a 2.62% Yield. 
The Technical Outlook: Movado Group Inc Trapped In A Range
Shares of Movado Group Inc have been trading in a fairly tight range over the past two months. Based on the company’s recovery and outlook for the coming year, we think the range is a consolidation that will lead to new highs fairly soon. The hurdle now is resistance at the $32 level and price action may move lower before it retests that level again. If support does not reestablish itself at the $29.50 level we see price action falling to $27.50 and possibly lower. In either case, we see bargain hunters and dividend growth investors scooping up the stock and driving it to fresh highs by year-end. Featured Article: What is Net Asset Value (NAV)?

3 Golf Stocks that Look Tee-rific

That’s why we’ve put together a list of 3 golf stocks that look tee-rific at this time so that you can get familiar with the companies that are poised to capitalize on the industry’s continued growth.

May
28, 2021

4 min read

This story originally appeared on MarketBeat

The golf industry is one of the more underrated places to look for investment opportunities at this time, especially given the sport’s continued growth. According to Statista, revenue from golf courses and country clubs is projected to reach approximately $24.6 billion in the U.S. by the year 2024, which means there will certainly be companies that flourish as a result. It’s also important to consider the fact that golf is a sport played by people of all ages, which means these types of products can be sold to almost anyone. When you think about how expensive golf equipment and apparel are and how the sport is popular in countries all over the world, the idea of investing in stocks with exposure to golf could end up being a hole-in-one opportunity. That’s why we’ve put together a list of 3 golf stocks that look tee-rific at this time so that you can get familiar with the companies that are poised to capitalize on the industry’s continued growth. Acushnet Holdings Corp (NYSE:GOLF) This is likely the best golf stock to consider adding shares of at this time, as it’s a company that has some of the most popular products in golf under its umbrella. Acushnet Holdings Corp is a company that designs, develops, manufactures, and distributes golf products such as golf balls, golf clubs, golf shoes, golf gloves, and golf apparel. With renowned brands such as Titleist, FootJoy, and KJUS, Acushnet Holdings is seeing a nice rebound in sales as golfers make their way back to the links after the pandemic. Acushnet recently reported stellar Q1 earnings that saw net sales increase by 42% year-over-year to $581 million. Sales of Titleist-branded gear rose 51% year-over-year and 38% from 2019, which is a reflection of how strong that brand is within the golf community. The stock is close to breaking out to new all-time highs and has held its post-earnings gap well, which tells us that buyers have a lot of conviction in the company. The stock also offers investors a 1.25% dividend yield, which is another great reason to add it to your watch list at this time. Callaway Golf Co (NYSE:ELY) Another strong option in the golf industry is Callaway Golf Co, a company that recently got a nice boost from Phil Mickelson’s victory at last week’s PGA Championship event. Since Callaway is Mickelson’s equipment sponsor, the company’s brand was in full focus throughout one of the more memorable golf tournaments to take place recently. It’s a company that designs, manufactures, and sells golf clubs, golf balls, golf bags, and other golf-related accessories. Callaway Golf is known as one of the top brands in golf for a reason, as the company’s products receive high praise from enthusiasts of the sport. Callaway Golf is also a stock to consider adding given the tremendous strength it has displayed in the market lately. The stock is up over 52% year-to-date and continues to hit new all-time highs. The company’s Q1 earnings were quite impressive, as Callaway announced a record $652 million in consolidated net revenue, up 47% year-over-year. It’s also worth noting that the company merged with Topgolf, which is a leading tech-enabled golf entertainment business that could be a strong growth driver for this company going forward. Nike (NYSE:NKE) Finally, Nike is another intriguing way to gain exposure to the golf industry thanks to the company’s golf apparel products and its team of well-known professional golfers including Tiger Woods, Brooks Koepka, and Rory McIlroy. It’s a company that offers high-quality golf shoes, golf clothing, golf gear, and accessories that are both stylish and instantly recognizable. Nike is also a great stock to consider buying thanks to the company’s world-renowned brand and growing digital sales. Keep in mind that Nike should benefit greatly from the resumption of sports after the pandemic, and that includes sales for the company’s golf products. Nike also recently reported Q3 earnings that saw Nike Brand digital sales increase by 59% year-over-year, confirming that the company is seeing strong growth in e-commerce. The company has a very strong balance sheet with ample liquidity and a history of finding innovative new ways to grow the business, which are certainly attractive qualities to consider in an investment.Featured Article: Why Invest in Dividend Kings

Think You Don't Need Life Insurance? You Might Not! Here's Why

May
28, 2021

7 min read

This story originally appeared on MarketBeat

I decided to get life insurance last year, right before I did some genetic testing for cancer. I thought carefully about the implications of what a predisposition to cancer could mean for my family.
Initially, I dreaded adding another bill to my family’s already ample monthly expenditures, then talked myself out of those thoughts. In all honesty, once I clicked the “purchase now” button on the insurance website, I felt a great weight lift off my shoulders. 
I felt pretty good about this solid decision to protect my family’s future. 
So, does life insurance have relevance for you? In all honesty, everyone should get life insurance if they have debt or dependents, but you might not need it at all. Let’s explore.
What is Life Insurance?
Life insurance, an agreement between you and an insurance company, confirms that your insurance company will pay an agreed-upon amount of money to your beneficiaries when you die. You pay a monthly premium for that agreement between you and your insurance company.
You can choose any legal adult to become your beneficiary — your spouse or partner, a parent, a sibling or even a friend. (Note that minor children cannot directly receive money from a life insurance policy. Your kids’ legal guardian would need to handle the proceeds from your insurance company — another good reason to update your will!)
Life insurance benefits can help pay for final expenses, death taxes, and bills upon your death. It can replace your income when you die, so your loved ones can cover essential expenses in the years after your death. The life insurance payout could cover your family’s entire mortgage or pay for college tuition for your kids. Your family can also use it to pay off credit card debt, a second mortgage or a boat loan. As you can see, you can tap into endless uses for life insurance.
Two Types of Life Insurance
You may have heard of lots of different types of life insurance, which can make it all the more confusing to choose which type you want.
However, when you break it down, you can access two different types of life insurance: term and permanent life insurance. You can choose from a few variations and combinations of these two, such as universal life insurance. However, to keep it simple, let’s just go over the basics of term and permanent life.
Term Life Insurance
Think of term life insurance as temporary insurance. Put simply, term life insurance gives you life insurance for a set period of time, typically between 10 and 30 years. If you die within the term (and you’ve continued to pay your premiums) your beneficiary receives the cash benefit. However, when you outlive the policy, the policy ends and you don’t get any money from your policy. 
You may want to consider term life insurance as a way to back up your debts while you have them. As time goes on, your debt may decrease. For example, let’s say you buy a 15-year life insurance policy and you have a 15-year mortgage. Your life insurance policy covers the amount of time you’ll stay in debt with your mortgage exactly and the term expires as soon as you pay it off. At that point, you may not need a large payout to cover your major expenses.
Permanent Life Insurance
Just as its name implies, permanent life insurance stays in force until you die. You may have heard of two major forms of permanent life insurance: whole life and universal life. Whole life and universal life both allow you to save money in addition to the death benefit. Universal life insurance even ties into stock market performance. 
The insurance company pays out the face value of the policy to your beneficiary or beneficiaries when you die.  
Permanent life insurance costs more than term life insurance and often requires a more detailed health examination. You may want to choose permanent life insurance for long-term savings and as a guaranteed way to leave money for your loved ones upon your death. 
How Do You Know Whether You Need Life Insurance? 
Curious about the circumstances that make the most sense for you to get life insurance? Take a look at the following reasons you may or may not want to get life insurance.
You might need life insurance if…

You earn money that your family depends on. Think about how your family would  get through each month if you died in an accident. Could they make ends meet without your income? If not, you need life insurance.
You have a mortgage. How much do you have left to pay on your mortgage? You may want to get life insurance to cover the remainder.
You care for dependents. Do you want to send your kids to college? Do you pay for daycare expenses for your youngest child? Remember that dependents may not just involve your children — an aging parent may require your care.
You own a small business. An insurance payout will help with expenses to either close your business or continue it in your absence. 

You might not need life insurance if…

You have no debt. Most people buy life insurance policies to cover debt. However, if you have no debt and items like college tuition have been taken care of, you might not need life insurance. 
You have no dependents. If you don’t have kids or if you have fully-grown kids who support themselves, you may not need life insurance.
Your savings can cover your final expenses. If you have significant investments that can cover everything you owe money on, you may not need life insurance. However, remember that in the case of retirement accounts, your surviving spouse can collect all of your retirement benefits only if he or she has reached full retirement age.

What Are the Steps for Buying Life Insurance?
Learn the steps to get your own policy.
Step 1: Determine how much coverage you need.
Sit down and do some figuring. Understand what you owe, your financial obligations to your kids and elderly parents or other family members. Figure out how much you want to leave to your beneficiaries. Don’t forget to determine how much other coverage you have, possibly through your job. (However, remember that if you get too sick and have to leave your job, you will no longer get coverage through your employer.)
If you total up the full amount of coverage you need and find out you’ll need upward of $1 million or more in coverage, that’s not unheard of. College costs, your mortgage, covering your salary and more adds up to a lot of money.
Step 2: Get a quote from up to five carriers.
Insurance companies spend time determining how “risky” you are based on family history, age, occupation and other risk factors, such as whether you smoke or drink. Each company will weigh each risk differently, so get a variety of quotes so you have choices between each one.
Step 4: Read the fine print.
Check out limitations and exclusions in your policy. In some cases, your case could stay in review for years while your insurance company makes sure an illness didn’t go unreported when you signed up for your policy.
Step 5: Purchase your policy.
The only step left involves purchasing your policy. Choose the best policy for your needs and budget.
Find the Right Life Insurance for You
Your risk factors affect how much you could pay for a life insurance policy. Some companies don’t require a physical health check but could include dozens of exclusions and limitations. 
If you just want to feel better knowing that your loved ones will benefit from your great planning and feel cared for when you die, you might want to purchase life insurance. Featured Article: Options Trading – Understanding Strike Price