Stock: Johnson & Johnson (JNJ)

Analysis done by: Aparana Bansal

Highest on June 20, 2022: The company's medicine sales led the way as its second-quarter

performance exceeded forecasts as well. Approximately 7% growth and over 55% of total

sales were generated by the pharmaceutical segment, strictly based on as-reported data. This

assisted in offsetting the overall decline caused by a strong US currency. Notably, sales of the

company's single-dose Covid vaccination exceeded analyst projections by almost threefold.

https://www.investors.com/news/technology/jnj-stock-buy-now/
Lowest on October 23, 2022: Following a modest 3% gain in the year prior, Johnson &

Johnson (NYSE: JNJ) saw a dip in its stock performance in 2023, with an 11% decrease.

Historically, the company's growth has been significantly fueled by key drugs including the

autoimmune medication Stelara and the multiple myeloma treatment Darzalex. Nonetheless,

a major obstacle is the loss of Stelara's commercial exclusivity. Macroeconomic issues also

put additional strain on JNJ's growth prospects, as do rising expenses and the approaching

expiration of Stelara's patent.

https://www.forbes.com/sites/greatspeculations/2023/10/25/should-you-pick-johnson--

johnson-stock-after-a-6-fall-in-a-month-despite-upbeat-q3/?sh=58220369739a
Fluctuating but increasing from January 2021 to September 2021: With adjusted

operational revenues rising by 13.6% in 2021, the company's pharmaceutical business

experienced noteworthy development. The Janssen COVID-19 vaccine, which was important

in supplying the world with potent immunizations during the pandemic, generated sales that

considerably fueled this expansion.

Meanwhile, adjusted sales for the medical devices segment saw a notable 16.8% growth at

the same time. The recovery of the market from the pandemic's effects and the postponement

of medical treatments impacting the company's surgical, visual, and orthopedic divisions

were the main drivers of this increase. Sales in these categories increased noticeably when

medical treatments restarted and demand increased, which boosted the company's overall

performance.

https://www.siliconrepublic.com/business/johnson-johnson-earnings-q4-2021-expected-2022
THREE UNSYSTEMATIC FACTORS LEADING TO CHANGE IN STOCK

BEHAVIOUR:

 COVID-19 Vaccine Sales and Pharmaceutical Performance

 Patent expiration and loss of commercial exclusivity

 Market Recovery and Demand for Medical Devices

Stock – Ford Motor Company (F)

Analysis done by: Saleha Saeed

We can see the stocks for Ford Motor Company were the lowest on November 6th, 2023

The persistent shortages of chips had a significant impact on Ford's operations, resulting in a

significant decrease in production output in the second quarter of 2021. Extended shutdowns

at North American assembly facilities were caused by the shortfall, which continued into the

first quarter of the third quarter. Ford's sales and profitability were probably significantly

impacted by this interruption, which may have lowered investor confidence and lowered the

stock price.
In addition to North America, Ford also had financial issues in South America and India.

Given the choice to discontinue operations in these areas and the significant financial outlay

necessary for restructuring could have caused investors to become concerned about the

company's long-term sustainability and profitability.

The challenges Ford was facing in these areas were brought to light by the closing of

assembly plants in South America and India. Given the large losses Ford has suffered in India

over the last ten years, investors may have been concerned about the company's capacity to

manage its worldwide operations and maintain competitiveness in these areas in considering

this decision.

To sum up, the chip shortages, money problems in important places, and the news about

closing plants probably made Ford's stock price drop in November 2023. Investors might

have seen these things as signs that Ford could have trouble making money and staying

competitive in the worldwide car market.

https://fordauthority.com/2022/01/ford-stock-value-analysis-performance-january-3-january-

7-2022-2/
As you can see the stocks for Ford Motor Company are fluctuating around January 17th, 2022.

There seems to be a substantial drop in sales from January 10th to February 7th.

In 2022, Ford Motor Company experienced a loss of $2.2 billion, mainly due to write-downs

of its investments in Rivian and Argo AI, along with challenges related to high costs and

supply chain disruptions.

They reduced the value of their investments in Rivian by $7.4 billion and in Argo AI by $2.8

billion. Ford has mostly sold its stake in Rivian and is in the process of winding down its

involvement with Argo AI.

Despite these setbacks, Ford's revenue increased by approximately 16% to $158 billion,

primarily driven by higher car prices. The company also saw growth in vehicle sales, selling

4.2 million units worldwide, up from 3.9 million in 2021.

Ford has been dealing with ongoing issues concerning defects and recalls in its vehicles,

which can be costly and time-consuming. To address these challenges, company executives

have committed to enhancing the reliability of their vehicles.

https://www.nytimes.com/2023/02/02/business/ford-earnings-fourth-quarter-2022.html

The stocks seem to be the highest on January 10th, 2022.

This is most likely because Ford announced plans to increase production of their highly

anticipated all-electric pickup truck, the F-150 Lightning, to 150,000 units per year by mid-

2023. This move reflects confidence in the growing demand for electric vehicles and Ford's

capacity to meet it, likely contributing to increased investor optimism.

Ford most likely revealed positive sales figures for the fourth quarter of 2021, maybe

exceeding market estimates. Strong sales results are usually well received by investors, who

therefore have more faith in the company's prospects and outlook.

Ford's stock price was likely positively impacted by the investing community's growing

confidence in the company, as seen by upgrades from major banks like Barclays and Credit

Suisse. Furthermore, expert estimates come true sooner than expected, like the $20 share

value predicted by 2023, which had the power to influence market behavior and increase

demand for the stock.

The steady increase in Ford's stock price over the last several weeks and months, along with

the company's transition to electric cars, most likely attracted investors' attention and

generated hope for the company's future.

In conclusion, the substantial spike in Ford's stock price over the specified time was probably

caused by a combination of favorable news about the company's general upward path,

remarkable sales, and analyst endorsements relating to Ford's increase in manufacturing for

the F-150 Lightning.

https://fordauthority.com/2022/01/ford-stock-value-analysis-performance-january-3-january-

7-2022-2/
Stock: FOOTLOCKER

Analysis is done by: Deep Brajwasi

 Highest/peak position-

Like many retail sectors, Foot Locker benefited from strong consumer demand. Foot Locker

maintained a light inventory, which contributed to its growth. Despite the increase in sales,

the company’s inventory was down by 10% compared to the previous year. In 2021, Foot

Locker diversified its brands, categories, and channels. In the fourth quarter of 2021, Foot

Locker reported net income of $103 million, with non-GAAP earnings per share of $1.67.

Comparable-store sales increased by 0.8%, with apparel outpacing footwear. Total sales rose

to $2.3 billion, reflecting an 8.2% increase. Furthermore, the pandemic prompted Foot

Locker to adjust its operations, accelerate digital initiatives, and find innovative ways to

engage with consumers during challenging times. Excluding foreign exchange rate

fluctuations, total sales in fiscal 2021 increased by 17.8%

  Lowest/boom position-

Foot Locker reported an 11.4% year-over-year loss in overall sales in the first quarter of

2023, with comparable-store sales falling by 9.1%. While Foot Locker faced competitive

challenges in the retail sector, one of its major suppliers, Nike. The profit for Foot Locker

dropped dramatically from $133 million in the same quarter last year to $36 million. Higher

markdowns, occupancy costs, inflation, and pay and technology investments diminish

margins and profit. The management's annual caused the stock to drop even more. The

company now predicts a 6.5% to 8% fall in comparable sales for the entire year, resulting in

adjusted earnings per share of $2.00 to $2.25. To summarise, Foot Locker's stock decline in

2023 was caused by difficulties with revenue growth, competitive pressures, and profit

margins.
  Fluctuating position-

In Quarter 4 2022, Foot Locker announced earnings per share (EPS) of $0.20 and non-GAAP

EPS of $0.97. The corporation unveiled its new "Lace Up" strategy, which includes updated

financial targets. Results for the first quarter of 2023 show a 9.1% reduction in comparable-

store sales due to macroeconomic factors like reduced income tax refunds in the US and

vendor changes.

Total sales declined by 11.4%, totalling $1,927 million, compared to the first quarter of 2022.

Sales in Q4 2023 increased by 2.0% to $2,380 million, despite a 0.7% decline in comparable

sales due to vendor mix shift, consumer apathy, and Champs Sports banner relocation.

The reason for the footlocker stocks are high risk and low return are:

• Sales slump: Sales dropped nearly 10% YoY, affecting profitability, and causing a net loss

of $5 million.
• Inventory issues: Inventory is at its highest level in over a decade, but stagnant sales have

led to aggressive merchandise markdowns, affecting profits.

• Negative market reaction: Lacklustre Q2 performance resulted in a 27% stock plunge,

causing the company to be removed from the S&P Midcap 400 index and added to the S&P

SmallCap 600 index.

Stock: SHEL

Analysis by: Mann Desai

Highest on 2023-11-02: Shell Plc, a major oil company, made significant profits in the third

quarter. This was due to high energy prices and the successful trading of gas and refined oil.

Their performance met industry experts' expectations. However, other large U.S. oil

companies did not do as well, dampening recent excitement over merger and acquisition

deals. Conversely, European oil companies generally exceeded projections. The Shell CEO

reported substantial profits and plans to repurchase many of the company's shares. This

means they will use a portion of their earnings to buy back ownership from shareholders.
Originally, they had committed to a $5 billion share buyback, but have now increased this to

$6.5 billion.

https://www.irishexaminer.com/business/companies/arid-41260861.html

Lowest on 2022-07-14: These types of statements from Shell's CEO, such as this one, could

harm the company's share price, especially if investors view them as indicators of future

problems or uncertainties that could harm Shell's financial results. When individuals in

charge admit difficult problems or predict unfavourable consequences, shareholders may

become concerned about a company's capacity to maintain earnings, leading to stock sell-

offs.

In such a circumstance, if Shell's CEO warns of a harsh winter with higher heating

expenditures across Europe, investors may be concerned about how it will affect the

company's operations, revenue, and profitability. This could lead to a drop in Shell's stock

price due to concerns about negative market consequences.

Nonetheless, it is crucial to remember that the actual impact on the stock price will be

determined by a variety of factors, including overall market sentiment, the perceived gravity

of the situation mentioned by the CEO, and any further context offered by the firm in reaction

to his remarks. Other considerations may include Shell's ability to adjust to difficulties, its

financial position, and risk management procedures employed by investors before making

choices.

https://www.bnnbloomberg.ca/shell-ceo-says-europe-faces-tough-winter-and-escalating-

prices-1.1791814

Significant Change on 2022-06-07:

This research focuses on several crucial points about Shell plc (SHEL) and its current

situation:

Shell plc's stock has decreased, despite the fact that the energy sector as a whole has
performed well.

Shell, like many other oil firms, has been careful with its exploration and capital expenditures

despite producing substantial profits.

Macroeconomic Outlook: The macroeconomic situation predicts that Shell's upstream oil and

gas businesses and LNG shipping business will generate significant cash flows in the future

years.

Valuation: Despite the possibility of strong earnings growth in 2022, Shell's forward price-to-

earnings (P/E) ratio is comparatively low at 5.2X, compared to rivals such as Chevron and

Exxon.

Issues About Strategic Direction: One of the most serious issues highlighted is Shell's early

decision to divest from fossil fuels without a clear plan to replace the earnings from

renewables.

Overall, the study implies that Shell plc may be undervalued due to worries about its strategic

initiatives and prudent expenditure, despite the favourable outlook for its main oil sectors.

https://seekingalpha.com/article/4519011-shell-poor-management-decisions-create-steep-

discount