Coronavirus Hitting Stocks
MarketFoolery
The Motley Fool
4.7 • 1.7K Ratings
🗓️ 27 January 2020
⏱️ 15 minutes
🧾️ Download transcript
Summary
D.R. Horton’s stock hits a new all-time high after strong 1st-quarter results. Jason Moser analyzes the prospects for the U.S. housing market. Then we discuss the coronavirus outbreak and its effect on consumer stocks like Starbucks, YUM Brands, Disney, and Booking Holdings. We also discuss whether it’s currently a threat to B2B stocks.
Transcript
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| 0:00.0 | It's Monday, January 27th. |
| 0:04.0 | Welcome to Market Fullry. |
| 0:05.0 | I'm Chris Hill with me in studio, Mr. Jason Moser. |
| 0:08.0 | Thanks for being here. |
| 0:09.0 | Hey, thanks for having me. |
| 0:10.0 | We're going to talk about the coronavirus, because it is now starting to have an impact on the world of investing. |
| 0:15.0 | Yeah. But first, let's do a quick hit on housing because D.R. Horton, the Home Builder, reporting this morning shares hitting a new all-time high on Monday. |
| 0:27.6 | The R Horton's first quarter is basically everything you would want to see if you're a shareholder but also you're investing into |
| 0:36.1 | any business that is related to new home construction, you know, profits and revenue higher than expected. It's the first |
| 0:45.1 | quarter they raised their full year estimates for new home construction. So this was, I mean mean the stock is up about 3% today but this is kind of everything you want isn't it? |
| 0:57.6 | Yeah, I think so and I think I mean when you look at the you look at the history of this stock, one, three, five years, ten years. |
| 1:05.9 | I mean, it really has never been a bad time to own this stock over the last decade. |
| 1:11.6 | And you know, I'm not the biggest home builders guy in the world |
| 1:14.7 | I mean it's just a lot of a lot of capital requirements there and it can be very |
| 1:18.8 | lumpy and certainly a higher risk space for for mismanaged companies but D.R. Horton is space for mismanaged companies. |
| 1:23.2 | But D.R. Horton is not a mismanaged company. |
| 1:25.3 | They have really, I think, done a good job of just keeping expectations in check. |
| 1:30.2 | And to your point, the quarter quarter it was very encouraging and they talked about the |
| 1:36.7 | net sales orders which essentially gives us an idea of future revenue net sales orders grew 19% to just over 13,100 homes and it grew |
| 1:48.4 | 22% in value to 3.9 billion dollars. There's a lot of money in there, but I think to me, |
| 1:55.2 | this isn't just about D.R. Horton's quarter, |
| 1:58.3 | but about a week ago, we saw some really impressive |
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