Three Big Corporations: Stock Analysis Research Paper

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The companies which I have selected for this paper include AutoNation.Inc, Ford Motors, and Microsoft Corporation. These companies are considered as the A ranking companies in their respective sectors. Now after reviewing all these stocks, company profiles, and their financial positions, here is a report indicating their position within the stock market.

AutoNation Inc.

AutoNation Inc. is a service provider company so it operates in the services sector. They exclusively work in the automotive dealerships business segment restricted within the specialty retail industry. AutoNation Inc offers automotive products and services, including new vehicles, used vehicles, spare parts, and automotive services. Along with that it also offers automotive finance and insurance products. The company is currently having a sales volume of 3.8 million and has earned its last revenue of $10.2 billion.

According to Navellier, the market capitalization of AutoNation, Inc is $3.5 billion with earning per share (EPS) equals $6.99 which is a good ratio. Its book value per share is $12.87, gross margin is 8.20% and its beta which is currently available is 1.43, again it is a very reasonable value. After reviewing ten years of the company’s history (10 years of history is available) it is found that weighted average historical high and low price to sales ratios provides a better idea of the stock’s current original value. Using this method, the company established a high range for the price of sales to 0.28 and the low end of the range at 0.17. Notice here that the existing price of sales per share ratio for AutoNation.Inc is 0.24 and it is somewhat more than its historical average. Sequentially to become more optimistic about AutoNation.Inc, it is required to observe a fall in the price of sales ratio to 3.01%, given current sales per share levels to go back to its past weighted average. Lastly, there is a graph showing you the company’s performance in the last few months.

AutoNation

Ford motors

Ford Motor Company operates in the consumer goods sector. They particularly function in the automotive manufacturers/major business segment limited within the automotive industry. Ford Motor Company is a producer of cars and trucks. Its production is divided into two sectors; one is automotive and the other is financial services. The company is currently having a sales volume of 95.4 million and has earned its last revenue of $127.5 billion. According to the Ford Motor Company Stock Report 2009, the market capitalization of Ford Motor is $23.2 billion with earning per share (EPS) equals $6.46 and it is a good ratio. Its gross margin is 19.40% and its beta that is currently available in 2.65, and it is a fairly practical value. Ford Motor Company has faced a very considerable drop in earnings and this drop in earnings could be a sign of bigger troubles in the company. Normally, in the case of the consumer services sector, which has shown huge progress in the market, it tends to be more uncertain to suggest stocks in that sector. However, although the stocks in consumer services have faced a good rise still Ford motors is not experiencing the same. But as far as the price is concerned, Ford’s price has increased from $6.78 to a price of $8.00. And this raise of 17.99% caused the charisma of the company to turn down a little. The stock of Ford Motors has been overvalued for the last few weeks. Even though the price has been increased over the last week by 17.99% for this stock, still it has not been adequate of a change to significantly manipulate our ratings harmfully. An increase in earnings expectations is observed and it is a positive sign. So, the better predictable earnings build up the price admiration acceptable and thus allow reiterating company’s overvalued rating. Lastly, there is a similar graph shown for the past performances of Ford Motors.

Ford motors

Ford motors

Microsoft Corporation

Microsoft Corporation operates in the technology sector. The specific function of the company is to deal in the application software business segment restricted within the computer software & services industry. The Microsoft Company offers software; services and solutions that help individual customers and businesses comprehend their full potentials. The company is currently having a sales volume of 46.2 million and has earned its last revenue of $58.4 billion. According to Microsoft Corporation Stock Report 2009, the market capitalization of Microsoft is $209.0 billion with earnings per share (EPS) equal to $1.62 which is less than the other two companies but still, it has a reasonable ratio. Its gross margin is 83.60% and its beta which is currently available is 0.96 and it is an extremely satisfactory condition. Lastly, its dividend yield is approximately 2.20%. As the technology sector has enjoyed a pretty nice rise in the last year, so we are not offensively worried about the long-standing value being reduced due to this run-up. Even though the price of Microsoft has gone up by 0.3% since August 25 this year, there have been very small movements in price on a fractional basis. Moreover, there have not been momentous amendments in the company’s earnings estimates. Here there is a graph showing Microsoft’s performance for the last few months.

Works Cited

. 2009. Ockhmresearch.

Microsoft Corporation Stock Report. 2008. Yahoo Finance. Web.

Navellier. Navellier’s portfolio grader. 2009. Nevellier’s Portfolio Gardner. Web.

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IvyPanda. (2022, March 8). Three Big Corporations: Stock Analysis. https://ivypanda.com/essays/three-big-corporations-stock-analysis/

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"Three Big Corporations: Stock Analysis." IvyPanda, 8 Mar. 2022, ivypanda.com/essays/three-big-corporations-stock-analysis/.

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IvyPanda. (2022) 'Three Big Corporations: Stock Analysis'. 8 March.

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IvyPanda. 2022. "Three Big Corporations: Stock Analysis." March 8, 2022. https://ivypanda.com/essays/three-big-corporations-stock-analysis/.

1. IvyPanda. "Three Big Corporations: Stock Analysis." March 8, 2022. https://ivypanda.com/essays/three-big-corporations-stock-analysis/.


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