Week 3 Discussion According to the efficient market hypothesis, stock prices ful

Week 3 Discussion
According to the efficient market hypothesis, stock prices fully reflect available information about the value of the firm, and there is no way to for individuals or mutual funds to earn excess profits or outperform the market. But is it true? We will play a simple investment simulation to test this hypothesis.
In this week’s discussion, you are asked to recommend at least ONE stock you would like to hold throughout the semester to maximize your return. Based on your recommendations and the class discussions, I will select the top 15 most recommended stocks to form a class portfolio with a hypothetical $1,000,000 in week 4. We will use this portfolio to find out if it is an efficient investment to outperform the market.
For each stock’s recommendation, you should act like a stock analyst to provide rationales about why investors should hold this stock. You are NOT required to write up a whole page research report to explain your reasons in detail, but you need to summarize some key aspects of why you pick up this stock. For example, you can talk about a company’s unique strategies, business model, new product development, customer satisfaction, etc. that you believe it would drive up the stock price. Some data, including P/E ratio, EPS, ROA, ROE, or statistics from the technical analysis would be helpful for your classmates to understand the stock better.
Please create a new thread with the name of the company as the topic for each stock you want to discuss/recommend. Please present your points in a logical order. All thoughts, words, and ideas that are not your own must be referenced appropriately. You could cite references from magazines, newspapers, or books to build stronger arguments.
In addition to your original post, each of you needs to respond to at least THREE of your classmates’ posts. Your comments do not have to be long but need to share your thoughts about the issue or your classmate’s opinions.
Classmates posts that need a response:
Christine Lewis
I would purchase Dexcom stock. According to investors.com, it is one of the top 5 stocks to invest in right now. Below are the reasons I would buy Dexcom
1. In 2019 after many years of losses, they saw a 397% surge in EPS to $0.46. It has been profitable ever since.
2. In February, they released their newest sensor the G7 and it is the biggest laugh they have had.
3. They recently opened their 3rd manufacturing facility to support continued demand of both the G6 and the new G7.
4. December they received FDA full approval for the G7 which is for people of all types of diabetes over the age of 2.
4. Bank of America analyst Travis Steed said to expect a mid-20% growth for the next 5 to 7 years.
Jordan Evans
For this week’s discussion I am selecting Werner Enterprises as the stock to analyze. Werner Enterprises is a transportation company providing logistical support for dedicated shipping, custom shipping, intermodal, and freight brokerage for all North America. Werner started in 1956 when its founder C.L. Werner purchased his first truck and began regional hauling in Nebraska. Since then, the company has grown to over 2,000 trucks and sixteen independently owned terminals. The company espouses integrity, inclusion, innovation, community, leadership, safety, and service as the core values supporting a vision of honestly earned growth. In 2021 the company saw revenues of $2.7 billion with growth in the dedicated sector of their business acquiring new customers like Cracker Barrel and Chewy. According to NASDAQ, Werner traded as WERN has a current P/E ratio of 12.52 with a dividend yield of 1.29%. These metrics do not indicate strong performance; however this may be in part to the acquisition of newer fuel efficient fleet vehicles as well as additional safety equipment to support the influx of new dedicated accounts. As of the publishing of this post WERN is trading at $43.50 per share, so in my opinion I think WERN is a good investment for those willing to take a risk for a long-term benefit.
Melinda Johnson
My purchase option would be Tesla Inc ( NADAQ: TSLA). Tesla is a compelling investment for several reasons:
Strong Financial Performance: Tesla has consistently achieved strong financial results. The company boasts impressive metrics such as high earnings per share (EPS), return on assets (ROA), and return on equity (ROE). These indicators suggest that Tesla effectively utilizes its assets and generates solid returns for its shareholders.
Unique Market Position: Tesla holds a unique market position within its industry. Its business model, strategies, and competitive advantages set it apart. A company’s ability to sustain growth and seize market opportunities can be attributed to various factors such as its dominant market share, innovative products or services, and well-diversified revenue stream.
Technological Advancements: Tesla is dedicated to innovation and staying ahead of industry trends. It invests heavily in research and development, resulting in the introduction of advanced products and services. These technological advancements improve the company’s competitiveness and establish a strong foundation for future growth.
Favorable Industry Outlook: The industry in which Tesla operates shows promising growth prospects. Market trends, emerging consumer preferences, or regulatory changes are all factors that can positively impact the company’s performance. Investors benefit from overall sector growth by investing in stocks within a favorable industry.
Positive Market Sentiment: Investor sentiment towards Tesla is generally optimistic. Market analysts and reputable financial institutions may have issued positive recommendations or price targets for the stock. A strong and supportive investor community, positive news coverage, or favorable ratings from credit rating agencies can also contribute to positive market sentiment.
Tesla is an attractive investment option for the portfolio. Its strong financial performance, unique market position, commitment to technological advancements, favorable industry outlook, and positive market sentiment make it a compelling choice. It’s crucial to understand that investing in the stock market comes with risks, and past performance doesn’t guarantee future results. To succeed in investing, conducting extensive research, diversifying your portfolio, and keeping an eye on market conditions is necessary.