Overview

In today’s data-driven world, we often face a challenge of dealing with an overwhelming amount of information while making quantitative decisions. As an analyst, it is crucial to conduct thorough analyses or create effective tools to support decision-making processes.

To tackle this issue, an information dashboard is a widely-used tool in various industries, including government, non-profits, and academia. An information dashboard serves as a central resource to present essential information in a clear and concise manner, aiding day-to-day decision-making and operational support.

To diversify investment options, we have chosen four companies from different sectors - Tesla (TSLA), NVIDIA (NVDA), Johnson & Johnson (JNJ), and Goldman Sachs (GS). For each of these companies, we will collect and analyze historical stock price data and key financial indicators such as P/E Ratio, PEG Ratio, Dividend Yield, and Market Capitalization. We will gather this information from Yahoo Finance using R. ## Row

Objective

The objective of this laboratory is to create an information dashboard that provides clear and concise information to support day-to-day decision making and operational support. To achieve this objective, you will need to complete the following steps:

Define the necessary decision that the dashboard will support. Identify the relevant information required for the decision-making process. Collect and organize the data necessary to create the visualization plan. Summarize the collected data to provide meaningful insights. Design effective visualizations to present the information. Organize the layout of the visualizations to conform to the theory of dashboarding. Write a summary of the decisions made based on the visualizations developed.

The Decision & Rules

The aim of this project is to select four companies from different sectors to diversify investment options and determine which one of the four will produce the most short-term gains. The selected companies are Tesla (TSLA), NVIDIA (NVDA), Johnson & Johnson (JNJ), and Goldman Sachs (GS). The next step is to collect and analyze historical stock price data, key financial indicators such as P/E Ratio, PEG Ratio, Dividend Yield, and Market Capitalization. The data will be collected from Yahoo Finance using R. The collected data will be organized and summarized to identify relevant information for decision making. The best visualizations will be designed and created to present the information. Finally, the layout of those visualizations will be organized in a way that conforms to the theory of dashboarding. A summary will be written about the decisions made based on the visualizations developed. The key objective of the project is to maximize profits by investing in the selected securities/commodities.

Methods Help

Financial Indicators/Metrics

• P/E Ratio - The price-to-earnings ratio is a valuation ratio that compares a company’s current share price to its per-share earnings. It gives investors an idea of how much they’re paying for a company’s earnings.
• PEG Ratio - The price/earnings to growth ratio is a company’s stock price to earnings ratio divided by the growth rate of its earnings for a specified time period.
• Dividend Yield - A financial ratio that shows how much a company pays out in dividends each year relative to its stock price.
• Market Capitalization - The market capitalization of a company is the total value of its outstanding shares of stock. It is calculated by multiplying the number of outstanding shares by the current market price of one share.

Brief Analysis

The table presents key financial metrics for four prominent companies in the EV industry: Tesla (TSLA), NVIDIA (NVDA), Johnson & Johnson (JNJ), and Goldman Sachs (GS).

Apart from the growing concern over climate change, governments’ policies aimed at reducing greenhouse gas emissions are encouraging consumers to switch to EVs. However, the adoption rate in the US as of mid-2022 remains relatively low, with only 5% of auto sales being EVs. However, the global trend suggests that the EV market will continue to grow in the coming years, with the Climate Action Tracker report recommending at least a 75% EV sales target by 2030 to limit global warming.

P-E ratio is a critical indicator for analysts that compares a company’s stock price to its EPS. Li Auto currently has the highest P-E ratio and EPS, which suggests that investors anticipate high growth rates in the future, or the company’s stock may be overvalued. Unlike Li Auto, NIO and XPeng have negative EPS, resulting in the absence of a P-E ratio.

Tesla, the hottest momentum in the EV market, has the highest market capitalization, which reflects investors’ interest in the company’s efforts to shift to sustainable energy and its position as the top global EV player.

Summary

Monthly Return Comparison

Conclusion

After analyzing the logs of individual stock rates and monthly return comparison, we conclude that the stock return for the EV industry is unstable at the moment, and there is no safe stock to invest in. However, based on the logs, we recommend Tesla (TSLA) for the Automotive/Electric Vehicles industry, NVIDIA (NVDA) for the Technology/Semiconductors industry, Johnson & Johnson (JNJ) for the Healthcare/Pharmaceuticals industry, and Goldman Sachs (GS) for the Financial Services/Banking industry.

From the generated logs, we observe that TSLA and NVDA are the most stable, with TSLA showing a steady increase in returns in the last few months. On the other hand, NIO and LI_AUTO have shown a significant decrease in returns in the last few months. We recommend investing in TSLA and NVDA for now and keeping a close eye on the market trends to make informed investment decisions.

Conclusion

Based on the daily stock adjusted prices chart and their individual candlestick charts, we would say that it may not be a good time to invest in any of the four companies (Tesla, NVIDIA, Johnson & Johnson, and Goldman Sachs) right now. One reason for this could be the economic recessions that we are currently facing. Additionally, it is important to note that the EV automakers (such as Tesla) have most of their factories in China, and there are concerns over profitability due to the pullback of zero-tolerance COVID policies and inflationary pressures worldwide. As a result, the return on investment in the EV stock market is lower than in the past few years.

Therefore, we suggest that any investment in these companies be done with caution and with an awareness of the current global economic situation. Once the economy begins to recover, we believe that these EV stocks may become more attractive investments.