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12000.0
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2012-02-16 00:00:00 UTC
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Market Wrap-Up for Feb.16 (SJM, LO, DRI, CBS, DUK, more)
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AAP
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https://www.nasdaq.com/articles/market-wrap-feb16-sjm-lo-dri-cbs-duk-more-2012-02-16
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nan
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nan
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The markets were able to snap back following yesterday's late-day reversal, partly because of a better-than-expected jobless claims report, and also on chatter the ECB and Greece may be reworking some loan bailout terms.
Back to the subject of jobs, we continue to progress through the earnings season and are finding almost zero talk of job hiring initiatives from corporate America. It would be great to see some concrete action regarding job creation within the companies we track, but there is very little to report.
As for today's movers, earnings results helped lift shares, including those of Advance Auto Parts ( AAP ), Molson Coors ( TAP ), and Duke Energy ( DUK ) ( read the report here ). On the flipside, investors were selling the news on reports from J.M. Smucker ( SJM ) ( report here ), CBS Corporation ( CBS ) ( report here ), and CF Industries ( CF ). Wall Street analyst upgrades helped boost names like Devon Energy ( DVN ), Lorillard ( LO ) ( full story here ), and Darden Restaurants ( DRI ).
More Than a 3-Hour Investment Window
Most of our readers have an investment time window that differs greatly from what the mainstream business media seems to target. We dividend investors look forward a lot further than just 3 hours, one day, or one week.
The powerful force of compound interest can help investors reap big rewards over time. Companies are raising their dividend payouts more frequently than ever these days, and the size of the hikes are getting more generous. You can bet company executives are starting to realize a good dividend payout can do wonders to put a floor under a stock price. Many companies are also looking to eliminate much of the day-to-day volatility that can make investors' heads spin.
Dividend investing may not be as sexy when it comes to the one-day moves that make business media executives salivate. For you newer investors out there, take the time to learn as much as you can about the markets, but don't veer away from the investing opportunities that have made many savvy people wealthy for decades. Make sure to choose your sources of information wisely!
About Those Jobs…
The greater Atlantic City area (where Dividend.com happens to be located) is gearing up for the grand opening of its latest casino, dubbed the Revel. The new resort is slated to open its doors in early April, and much chatter has focused on all the new jobs it will bring. The startling reality, however, is that only 62% of the jobs at the Revel will be full-time positions. This statistic compares poorly to the industry average of 76% full-time workers in the other Atlantic City casinos.
This trend of favoring part-time workers is picking up steam across the country, and I'm not sure how well it's being reflected in the overall jobs data reported by the government. For investors, the trend isn't a bad thing, since it generally spells better profits for companies you're investing in. But in reality, the lack of real full-time job growth is an overhang for the entire economy.
I think it's clear that the region you reside in will be a bigger and bigger factor in how your job opportunities, real estate values, and cost of living will affect your financial situation long-term. This isn't a new concept, but it's one that will carry much more emphasis going forward.
If you're retired, you probably won't be looking at living in expensive areas, as your income level is unlikely to support those costs. If you're still relatively early in your career, however, it is paramount to build your foundation in a geographical area that is poised for job growth. For many, this will mean leaving their familiar surroundings. My father came to America barely speaking any English, but was willing to take the chance for an opportunity that simply didn't exist in his native land. That same mindset can help many find a better way of life today. Remember, personal challenges can sometimes lead to personal triumphs!
New MLP Report Just Released!
In The Essentials of Investing in MLPs , we outline the do's and don'ts of investing in high-yield Master Limited Partnerships (MLPs). Our exclusive new MLP report outlines everything you need to know about these popular high-yield investments, including:
- Understanding their unique company structure
- What you absolutely need to know about their special tax treatment
- Why MLPs may not be suitable for retirement accounts
- How to find the best high-yield partnerships
- …and much more!
Head to the Dividend.com Premium page to download this brand new report today!
25 Years of Dividend-Increasing Stocks
We recently updated our list of dividend stocks that have been paying out dividends for 25 years or more. Be sure to check out the latest list of names here .
Dividends Really Matter
Financial blog DailyReckoning.com recently took a look at the difference dividend payouts made in the overall return investors saw throughout the prior decades. Here are some of the highlights:
- The Nasdaq is down 28% since the end of 1999. Even the "blue chip" S&P 500 stocks are down 15% during that time frame…until you add back those "boring" dividends. With dividends included, the S&P 500′s 15% loss flips to a 6% gain.
- Without dividends, the S&P 500 index would have produced a loss for the 25 long years from August 1929 to August 1954. Then again, without dividends, the S&P 500 produced a 5% loss during the 13 years from September 1961 to September 1974. But with dividends included, the S&P's loss became a 46% gain.
- Over the course of the last half-century, dividends have contributed more than half of the stock market's total return - 56%, to be exact.
Of course, you can't discuss the potency of dividend investing without making mention of how awesome compound returns are. I can't stress enough the power of compound interest: you take a small amount of money and turn it into a large amount over time. Finding the right companies at the right price points which not only grow earnings, but also grow their dividend payouts as well!
New Watchlist Article Out Today
Be sure to check out our weekly Top 50 High-Yield Watchlist Names post that is out today, exclusively for Dividend.com Premium members. This list gives readers a good idea of what stocks we're watching behind the scenes here for potential upgrades.
Go Beyond This Newsletter
We know many of you enjoy reading the daily newsletter, but remember that with our Dividend.com Premium service, the newsletter is just one small component of what we offer. Here are the "Big Three" benefits of our Premium service:
- The Best Dividend Stocks List is used by tens of thousands of investors to help build their own portfolios.
- Creating your own Watchlist allows you to track the performance, news, and upcoming dividend payouts of the particular stocks you care about.
- Finally, we offer the most complete and easy-to-use dividend data on the web. Many subscribers use this data as part of a "Dividend Capture" trading strategy, but long-term investors can use it to keep track of impending payouts. Just visit our Ex-Dividend Calendar for a complete outlook on which companies will be paying out soon.
We don't ask for a credit card to use our free trial, and we don't bill you when your trial ends. No obligation whatsoever! So keep enjoying the newsletter, but please give Dividend.com Premium a shot if you haven't already subscribed!
Thanks for reading, and I'll see you tomorrow!
Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Created by Dividend.com
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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As for today's movers, earnings results helped lift shares, including those of Advance Auto Parts ( AAP ), Molson Coors ( TAP ), and Duke Energy ( DUK ) ( read the report here ). The markets were able to snap back following yesterday's late-day reversal, partly because of a better-than-expected jobless claims report, and also on chatter the ECB and Greece may be reworking some loan bailout terms. Wall Street analyst upgrades helped boost names like Devon Energy ( DVN ), Lorillard ( LO ) ( full story here ), and Darden Restaurants ( DRI ).
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As for today's movers, earnings results helped lift shares, including those of Advance Auto Parts ( AAP ), Molson Coors ( TAP ), and Duke Energy ( DUK ) ( read the report here ). Smucker ( SJM ) ( report here ), CBS Corporation ( CBS ) ( report here ), and CF Industries ( CF ). More Than a 3-Hour Investment Window Most of our readers have an investment time window that differs greatly from what the mainstream business media seems to target.
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As for today's movers, earnings results helped lift shares, including those of Advance Auto Parts ( AAP ), Molson Coors ( TAP ), and Duke Energy ( DUK ) ( read the report here ). Our exclusive new MLP report outlines everything you need to know about these popular high-yield investments, including: - Understanding their unique company structure - What you absolutely need to know about their special tax treatment - Why MLPs may not be suitable for retirement accounts - How to find the best high-yield partnerships - …and much more! 25 Years of Dividend-Increasing Stocks We recently updated our list of dividend stocks that have been paying out dividends for 25 years or more.
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As for today's movers, earnings results helped lift shares, including those of Advance Auto Parts ( AAP ), Molson Coors ( TAP ), and Duke Energy ( DUK ) ( read the report here ). 25 Years of Dividend-Increasing Stocks We recently updated our list of dividend stocks that have been paying out dividends for 25 years or more. Here are some of the highlights: - The Nasdaq is down 28% since the end of 1999.
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12001.0
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2012-02-15 00:00:00 UTC
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Why is AutoZone Chasing Your Clunkers?
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AAP
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https://www.nasdaq.com/articles/why-autozone-chasing-your-clunkers-2012-02-15
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nan
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nan
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Submitted by Rocco Huang as part of our contributors program
This is the third in a series on how some businesses can prosper in a stagnating economy. See also: Entertainment Stocks: Selling Dreams to the Have-Nots and Extreme Value Stores: Occupy the Poor in the same series.
Personal injury lawyers are nicknamed "ambulance chasers" because they hear "ka-ching" when someone gets hurt in an accident. For a similar reason, DIY (Do It Yourself) auto shops, which sell you replacement parts, are equally happy to see more of your vehicles break down or in need of repair.
Why do I like to invest in DIY auto shops in this poor economy? Let me first give you two shocking numbers:
(1) The average age of the cars and trucks on U.S. roads hit a record 10.8 years as of July 1, 2011, as worries about job security kept many people from buying new vehicles.
(2) According to Polk, there are 240 million light vehicles on U.S. roads. As less than 14 million new vehicles a year are being sold right now (and about 16.5 million a year in the pre-recession peak), average vehicle age is not declining anytime soon.
In other developed countries, because of high taxes on cars and gasoline, which raise total ownership costs, cars owners tend to come from the more affluent segment of the society. In the US, a car is often a necessity and most cars are driven by poor people as a means to get to work. Therefore, it is reasonable for us to expect that:
(1) They are less likely to purchase a new vehicle in this poor economy. They will hold onto their clunkers and drive on.
(2) They have to maintain their cars and fix them when they break down, otherwise they would not be able to get to work.
(3) Short in cash, people are more likely to DIY than going to a full-service garage shop.
Who's going to benefit from this trend?
I would say the job is cut out for DIY auto shops such as AutoZone ( AZO ) and Advanced Auto Parts ( AAP ).
In fact, the sweet spot for the industry is vehicles 4 to 12 years old, that is, too old to be covered by an original warranty but too young to be sent to the scrap yard. If you happen to own a 7-year-old car, they see dollar signs all over you.
But wait, there's more. I see two near-term catalysts, and two medium-term potential bonus points.
First let me serve you two recent catalysts:
(1) Potential buyout target
On Monday (1/30/2012), full service auto repair shop Pep Boys agreed to sell itself to the Gores Group, that values the company's stock at about $804 million, a 24% premium to Friday's closing price.
The event can draw investors' attention to this sector, and as they scrutinize the sector they may start to realize that Autozone would provide an even better value in this poor economy, because consumers may switch from full service shops such as Pep Boys to DIY shops such as AutoZone in order to save money.
Both AutoZone and Pep Boys count hedge funds as their largest shareholders, and hedge funds are certainly more open to buyout offers. Basically, the Pep Boys buyout is going to bring attention to a company that would love to see more attention from higher bidders.
(2) Motivated sellers
AutoZone's largest owner, Edward Lampert (through ESL Investments,which also is the largest owner of the beleaguered retailer Sears Holdings) has almost cut his stake by half in recent months. He didn't sell much in the open market. Instead, the shares were distributed to his clients as in-kind payments in the closing of one of his investment partnerships and the restructuring of another, as well as to meet year-end redemptions from his main fund, ESL Investments.
Understandably, some of these clients may decide to liquidate the shares they received simply because they don't like to personally manage a stock portfolio. Normally, when we buy a stock, we always have to worry whether the seller knows something negative that we are not aware of, otherwise "why would he sell to me?"
In this case, we know that some of the recent selling pressure comes from "motivated sellers" who do not necessarily have negative views on the company, and we expect that over time the pressure is going to subside. In other words, we feel less suspicious when buying a house from a "motivated seller" who's moving to a different city for work than from someone who's moving to a similar house just two blocks away.
Finally, there are two medium-term bonus points that we can hope for but can't count on:
(1) Decline in gasoline price: People drive more miles when gasoline is cheaper, and more mileages driven lead to increased demand for maintenance and replacement parts. Incidentally, AutoZone can also double as a hedge for those investors with long exposures to the energy sector.
(2) Strengthening US Dollar: If the economic situation in Europe continues to worsen, investors may increasingly place a premium on businesses with less foreign exposures. AutoZone is mostly a domestic operation, with only a small presence in Mexico, and therefore may look attractive to those flight-to-safety investors searching for counter-cyclical assets at home.
Disclosure: Author is long AZO
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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I would say the job is cut out for DIY auto shops such as AutoZone ( AZO ) and Advanced Auto Parts ( AAP ). Let me first give you two shocking numbers: (1) The average age of the cars and trucks on U.S. roads hit a record 10.8 years as of July 1, 2011, as worries about job security kept many people from buying new vehicles. First let me serve you two recent catalysts: (1) Potential buyout target On Monday (1/30/2012), full service auto repair shop Pep Boys agreed to sell itself to the Gores Group, that values the company's stock at about $804 million, a 24% premium to Friday's closing price.
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I would say the job is cut out for DIY auto shops such as AutoZone ( AZO ) and Advanced Auto Parts ( AAP ). First let me serve you two recent catalysts: (1) Potential buyout target On Monday (1/30/2012), full service auto repair shop Pep Boys agreed to sell itself to the Gores Group, that values the company's stock at about $804 million, a 24% premium to Friday's closing price. Both AutoZone and Pep Boys count hedge funds as their largest shareholders, and hedge funds are certainly more open to buyout offers.
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I would say the job is cut out for DIY auto shops such as AutoZone ( AZO ) and Advanced Auto Parts ( AAP ). For a similar reason, DIY (Do It Yourself) auto shops, which sell you replacement parts, are equally happy to see more of your vehicles break down or in need of repair. First let me serve you two recent catalysts: (1) Potential buyout target On Monday (1/30/2012), full service auto repair shop Pep Boys agreed to sell itself to the Gores Group, that values the company's stock at about $804 million, a 24% premium to Friday's closing price.
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I would say the job is cut out for DIY auto shops such as AutoZone ( AZO ) and Advanced Auto Parts ( AAP ). Why do I like to invest in DIY auto shops in this poor economy? Both AutoZone and Pep Boys count hedge funds as their largest shareholders, and hedge funds are certainly more open to buyout offers.
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12002.0
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2011-12-16 00:00:00 UTC
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AutoZone Expands in Canada - Analyst Blog
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AAP
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https://www.nasdaq.com/articles/autozone-expands-in-canada-analyst-blog-2011-12-16
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nan
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nan
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ALLDATA LLC, an operating unit of AutoZone Inc. ( AZO ), recently announced its plan to expand in Canada to provide quality services to its increasing customer base in the region and its nearby locations. The company will operate in Canada under the name ALLDATA Canada Services Ltd.
Previously, ALLDATA products were sold through a third party distributor in Canada. As a result, the company was unable to gauge the prevailing market scenario and failed to enhance its marketing efforts and tap potential customers. With the new subsidiary, the company seeks to capitalize on the growing opportunities and will likely have a huge scope of creating brand awareness across the country, thus driving profitability going forward.
AutoZone is one of the nation's leading specialty retailers of automotive replacement parts and accessories, operating in the Do-It-Yourself (DIY) retail, Do-It-for-Me (DIFM) commercial and other customer markets. Sales in DIY retail represent about 85% of the company's revenue, DIFM commercial sales accounts for 10% while the remaining 5% comes from other sales.
AutoZone sells the ALLDATA brand automotive diagnostic and repair software, online as well as on DVD, which offers comprehensive factory-correct repair information to DIY customers and offers ALLDATA repair subscription. The company also sells in-house brands of automotive batteries such as Duralast, Duralast Gold and Valuecraft, manufactured by the U.S. automotive parts producer Johnson Controls.
During the most recent quarter, AutoZone posted a profit of $7.18 per share versus $5.66 per share in the year-ago quarter. Net sales grew 8.1% to $2.64 billion and domestic same-store sales (sales for stores open at least one year) rose 4.5% during the quarter.
AutoZone currently focuses on expanding its Hub store, acceleration of store maintenance and strengthening of its commercial sales force. Its aggressive share repurchase policy, supported by a strong cash flow, is also note worthy.
However, AutoZone relies heavily on its private label brands, which could hinder its business should they falter. Vendor consolidation and appreciation in gas prices coupled with fierce competition from O'Reilly Automotive Inc. ( ORLY ) and Advance Auto Parts Inc. ( AAP ) are primary headwinds for the company.
However, depending on the improving near-term outlook, the company retains a Zacks #2 Rank, which translates into a Buy rating over the short term (1 to 3 months).
ADVANCE AUTO PT ( AAP ): Free Stock Analysis Report
AUTOZONE INC ( AZO ): Free Stock Analysis Report
O REILLY AUTO ( ORLY ): Free Stock Analysis Report
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Vendor consolidation and appreciation in gas prices coupled with fierce competition from O'Reilly Automotive Inc. ( ORLY ) and Advance Auto Parts Inc. ( AAP ) are primary headwinds for the company. ADVANCE AUTO PT ( AAP ): Free Stock Analysis Report AUTOZONE INC ( AZO ): Free Stock Analysis Report O REILLY AUTO ( ORLY ): Free Stock Analysis Report Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. ALLDATA LLC, an operating unit of AutoZone Inc. ( AZO ), recently announced its plan to expand in Canada to provide quality services to its increasing customer base in the region and its nearby locations.
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Vendor consolidation and appreciation in gas prices coupled with fierce competition from O'Reilly Automotive Inc. ( ORLY ) and Advance Auto Parts Inc. ( AAP ) are primary headwinds for the company. ADVANCE AUTO PT ( AAP ): Free Stock Analysis Report AUTOZONE INC ( AZO ): Free Stock Analysis Report O REILLY AUTO ( ORLY ): Free Stock Analysis Report Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. AutoZone is one of the nation's leading specialty retailers of automotive replacement parts and accessories, operating in the Do-It-Yourself (DIY) retail, Do-It-for-Me (DIFM) commercial and other customer markets.
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ADVANCE AUTO PT ( AAP ): Free Stock Analysis Report AUTOZONE INC ( AZO ): Free Stock Analysis Report O REILLY AUTO ( ORLY ): Free Stock Analysis Report Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Vendor consolidation and appreciation in gas prices coupled with fierce competition from O'Reilly Automotive Inc. ( ORLY ) and Advance Auto Parts Inc. ( AAP ) are primary headwinds for the company. Sales in DIY retail represent about 85% of the company's revenue, DIFM commercial sales accounts for 10% while the remaining 5% comes from other sales.
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ADVANCE AUTO PT ( AAP ): Free Stock Analysis Report AUTOZONE INC ( AZO ): Free Stock Analysis Report O REILLY AUTO ( ORLY ): Free Stock Analysis Report Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Vendor consolidation and appreciation in gas prices coupled with fierce competition from O'Reilly Automotive Inc. ( ORLY ) and Advance Auto Parts Inc. ( AAP ) are primary headwinds for the company. The company will operate in Canada under the name ALLDATA Canada Services Ltd.
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12003.0
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2011-12-06 00:00:00 UTC
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AutoZone Beats, Profits Up 24% - Analyst Blog
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AAP
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https://www.nasdaq.com/articles/autozone-beats-profits-up-24-analyst-blog-2011-12-06
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nan
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nan
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AutoZone Inc. ( AZO ) recorded a 24% rise in profit to $4.68 per share in the first quarter of its fiscal 2012 ended November 19, 2011 from $3.77 per share in the year-ago quarter, beating the Zacks Consensus Estimate of $4.45 per share. In absolute terms, profit increased 11% to $191.1 million from $172.1 million a year ago.
The increase in profit was driven by a 7.4% rise in net sales to $1.92 billion, which surpassed the Zacks Consensus Estimate of $1.90 billion. Domestic same-store sales (for stores open at least one year), increased 4.6% during the quarter compared with 9.5% a year ago.
Gross margin was 51.1% versus 50.7% in the first quarter of fiscal 2011. The higher gross margin was attributable to lower distribution costs due to an increase in sales, lower shrink expense and modestly higher merchandise margins.
Operating margin increased to 17.7% compared with 17.1% in the prior-year quarter, driven by an improvement in operating expenses (as a percentage of sales) to 33.4% from 33.6% a year ago based on lower incentive compensation, favorable legal expense and leverage from higher sales volumes, which was partially offset by higher self insurance costs.
Store Openings and Inventory
During the quarter, AutoZone opened 17 stores in the U.S. and 2 stores in Mexico. As of November 19, 2011, the company had 4,551 stores in 48 states, the District of Columbia and Puerto Rico in the U.S. and 281 stores in Mexico, implying a total store count of 4,832.
The company's inventory escalated 7.2% to $2.53 billion, driven by new stores and continued strategic investments in parts assortment. Inventory per store inched up 3% to $524 thousand from $508 thousand last year.
Share Repurchase
Under the current share repurchase program, AutoZone repurchased 954 thousand shares of its common stock for $310 million during the quarter, reflecting an average price of $325. At the end of the quarter, the company had $659 million worth of stock remaining under its existing share repurchase authorization.
Financial Position
AutoZone had cash and cash equivalents of $96.7 million as of November 19, 2011, down from $98.0 million as of November 20, 2010. Total debt amounted to $3.35 billion as of November 19, 2011 compared with $2.88 billion as of November 20, 2010. The company had a stockholder deficit of $1.35 billion as of November 19, 2011, up from the year ago level of $817.2 million.
In the quarter, AutoZone had a net cash flow of $303.0 million before share repurchases and changes in debt, which was down from the year-ago level of $330.2 million.
Our Take
AutoZone is focused on expansion of its Hub store, acceleration of store maintenance and strengthening of its commercial sales force. Its aggressive share repurchase policy, supported by a strong cash flow, is also worth mentioning.
However, AutoZone relies heavily on its private label brands, which could hinder its business should they falter. Vendor consolidation and appreciation in gas prices coupled with fierce competition from O'Reilly Automotive Inc. ( ORLY ) and Advance Auto Parts Inc. ( AAP ) are primary headwinds for the company.
However, depending on the improving near-term outlook, the company retains a Zacks #2 Rank on its stock, which translates into a Buy rating for the short-term (1 to 3 months).
ADVANCE AUTO PT ( AAP ): Free Stock Analysis Report
AUTOZONE INC ( AZO ): Free Stock Analysis Report
O REILLY AUTO ( ORLY ): Free Stock Analysis Report
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Vendor consolidation and appreciation in gas prices coupled with fierce competition from O'Reilly Automotive Inc. ( ORLY ) and Advance Auto Parts Inc. ( AAP ) are primary headwinds for the company. ADVANCE AUTO PT ( AAP ): Free Stock Analysis Report AUTOZONE INC ( AZO ): Free Stock Analysis Report O REILLY AUTO ( ORLY ): Free Stock Analysis Report Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Operating margin increased to 17.7% compared with 17.1% in the prior-year quarter, driven by an improvement in operating expenses (as a percentage of sales) to 33.4% from 33.6% a year ago based on lower incentive compensation, favorable legal expense and leverage from higher sales volumes, which was partially offset by higher self insurance costs.
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ADVANCE AUTO PT ( AAP ): Free Stock Analysis Report AUTOZONE INC ( AZO ): Free Stock Analysis Report O REILLY AUTO ( ORLY ): Free Stock Analysis Report Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Vendor consolidation and appreciation in gas prices coupled with fierce competition from O'Reilly Automotive Inc. ( ORLY ) and Advance Auto Parts Inc. ( AAP ) are primary headwinds for the company. AutoZone Inc. ( AZO ) recorded a 24% rise in profit to $4.68 per share in the first quarter of its fiscal 2012 ended November 19, 2011 from $3.77 per share in the year-ago quarter, beating the Zacks Consensus Estimate of $4.45 per share.
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ADVANCE AUTO PT ( AAP ): Free Stock Analysis Report AUTOZONE INC ( AZO ): Free Stock Analysis Report O REILLY AUTO ( ORLY ): Free Stock Analysis Report Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Vendor consolidation and appreciation in gas prices coupled with fierce competition from O'Reilly Automotive Inc. ( ORLY ) and Advance Auto Parts Inc. ( AAP ) are primary headwinds for the company. AutoZone Inc. ( AZO ) recorded a 24% rise in profit to $4.68 per share in the first quarter of its fiscal 2012 ended November 19, 2011 from $3.77 per share in the year-ago quarter, beating the Zacks Consensus Estimate of $4.45 per share.
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ADVANCE AUTO PT ( AAP ): Free Stock Analysis Report AUTOZONE INC ( AZO ): Free Stock Analysis Report O REILLY AUTO ( ORLY ): Free Stock Analysis Report Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Vendor consolidation and appreciation in gas prices coupled with fierce competition from O'Reilly Automotive Inc. ( ORLY ) and Advance Auto Parts Inc. ( AAP ) are primary headwinds for the company. Domestic same-store sales (for stores open at least one year), increased 4.6% during the quarter compared with 9.5% a year ago.
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12004.0
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2011-12-05 00:00:00 UTC
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Q1 Preview: AutoZone (AZO) Should Beat as Margins Continue Expansion
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AAP
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https://www.nasdaq.com/articles/q1-preview-autozone-azo-should-beat-margins-continue-expansion-2011-12-05
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nan
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nan
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AutoZone ( AZO ) shares are looking strong heading into its first-quarter earnings report, expected out before the market opens Tuesday.
Analysts are looking for quarterly earnings of $4.44 per share with revenue of $1.89 billion. The number would be a 17.8 percent improvement from earnings of $3.77 per share reported in the same period last year.
Shares of AutoZone gained 7 percent in the quarter and are 2.2 percent higher since. The stock is up about 23 percent for 2011 and has traded in a range of $246 to nearly $342 over the last year.
Excluding cash, AutoZone is trading for 12.9x next year's earnings, compared with 12.5x at Advanced Auto ( AAP ), and 17.9x at O'Reilly Automotive Inc. (Nasdaq: ORLY).
Data from Bloomberg has 10 analysts with a Buy rating on AutoZone, 15 at Hold, and one with a Sell-equivalent call. The Street's price target average is $351.50, with a low of $315 and high of $390.
Investors might be looking to Advance Auto for hints into AutoZone's quarter. In early November, Advanced Auto beat third-quarter earnings estimates with results of $1.41 per share. Revenue of $1.46 billion came in-line with expectations. Further, Advanced Auto also raised its fiscal 2011 outlook from a range of $4.60 to $4.80 to a range of $4.90 to $4.95, which was above consensus views.
Into the numbers Deutsche Bank is looking for earnings of $4.32 per share with sales of $1.89 billion. The firm is modeling for comps of 3.5 percent, and a 30 basis point increase in margins.
The firm also commented on margin expectations for 2012: "On the gross margin line, we continue to model increases, but at a decelerating pace as input pricing on commodities will catch up with AZO's retail price increases. For 1Q11, we are forecasting GM up 20 bps y/y. On the other hand, AZO will save at least 10 bps on expenses as they have now fully anniversaried the rollout of their hub store initiative, which was complete at the end of 2010, but not fully cycled until 4Q11. AZO will continue to invest in improving its hub stores, but the incremental costs will be more on capital than on expenses We are forecasting 10 bps of leverage in 1Q12."
Stay tuned to StreetInsider.com's EPS Insider section to see our analysis of the highly-anticipated quarterly results within seconds of their release. You can also check out AutoZone's past performance at Streetinsider's AutoZone's Income Statement .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Excluding cash, AutoZone is trading for 12.9x next year's earnings, compared with 12.5x at Advanced Auto ( AAP ), and 17.9x at O'Reilly Automotive Inc. (Nasdaq: ORLY). AutoZone ( AZO ) shares are looking strong heading into its first-quarter earnings report, expected out before the market opens Tuesday. AZO will continue to invest in improving its hub stores, but the incremental costs will be more on capital than on expenses We are forecasting 10 bps of leverage in 1Q12."
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Excluding cash, AutoZone is trading for 12.9x next year's earnings, compared with 12.5x at Advanced Auto ( AAP ), and 17.9x at O'Reilly Automotive Inc. (Nasdaq: ORLY). AutoZone ( AZO ) shares are looking strong heading into its first-quarter earnings report, expected out before the market opens Tuesday.
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Excluding cash, AutoZone is trading for 12.9x next year's earnings, compared with 12.5x at Advanced Auto ( AAP ), and 17.9x at O'Reilly Automotive Inc. (Nasdaq: ORLY). AutoZone ( AZO ) shares are looking strong heading into its first-quarter earnings report, expected out before the market opens Tuesday. Shares of AutoZone gained 7 percent in the quarter and are 2.2 percent higher since.
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Excluding cash, AutoZone is trading for 12.9x next year's earnings, compared with 12.5x at Advanced Auto ( AAP ), and 17.9x at O'Reilly Automotive Inc. (Nasdaq: ORLY). Analysts are looking for quarterly earnings of $4.44 per share with revenue of $1.89 billion. The number would be a 17.8 percent improvement from earnings of $3.77 per share reported in the same period last year.
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12005.0
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2011-12-02 00:00:00 UTC
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Earnings Preview: AutoZone Inc. - Analyst Blog
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AAP
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https://www.nasdaq.com/articles/earnings-preview%3A-autozone-inc.-analyst-blog-2011-12-02
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nan
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nan
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AutoZone Inc. ( AZO ) expects to release its first quarter 2012, ended November 19, 2011, on December 06, 2011 before the opening bell. Memphis, Tennessee-based AutoZone earned a profit of $7.18 in the fourth quarter of fiscal 2011, beating the Zacks Consensus Estimates of $6.98 per share.
For the upcoming quarter, the Zacks Consensus Estimate for AutoZone is pegged at $4.45 per share, reflecting an annualized growth of 18%. There is no upside potential for the estimate.
With respect to earnings surprises, the company outdid the Zacks Consensus Estimate in the trailing four quarters. This is reflected in the average earnings surprise of 6.39%, implying that the company has outperformed the Zacks Consensus Estimate in all the four quarters.
Fourth Quarter Recap
Net sales grew 8.1% to $2.64 billion, exceeding the Zacks Consensus Estimate of $2.61 billion. Domestic same-store sales (sales for stores open at least one year) rose 4.5% during the quarter.
Gross margin was 51.2% compared with 50.5% in the year-ago quarter. The increase in gross margin was attributable to lower shrink expense and higher merchandise margins. The increase in merchandise margins was driven by retail price increases on commodity-based products, which were partially offset by higher commercial sales.
Operating profit rose 11% to $524.0 million from $472.7 million in the prior year. This translated into an operating margin of 19.8% versus 19.3% in the fourth quarter of fiscal 2010.
Operating expenses, as a percentage of sales, increased to 31.4% from 31.2% last year due to higher self-insurance costs and higher fuel costs, partially offset by leverage due to higher sales volumes.
During the quarter, AutoZone opened 68 new stores, replaced five stores, and closed one store in the U.S. and opened 18 new stores in Mexico. As of August 27, 2011, the company had 4,534 stores in 48 states, as well as in the District of Columbia and Puerto Rico in the U.S. and 279 stores in Mexico.
Estimate Revisions Trend
Earnings estimate for the first quarter of fiscal 2011 is currently pegged at a profit of $4.45 per share. The improving auto industry and the strong performance of the company in the last reported quarter have made the analysts optimistic about its future financial results.
Agreement of Estimate Revisions
Out of the 18 analysts covering the stock for the first quarter of fiscal 2011, none revised the estimates in the past 30 days.
Magnitude of Estimate Revisions
Following the fourth quarter earnings release in September, first quarter 2012 profit per share was projected at $4.35. However, over the last 60 days, the profit estimate increased to $4.44 cents per share. Later, the estimate went up to $4.45 per share in the last 30 days and remained the same since then.
Our Take
AutoZone is focused on expansion of its Hub store, acceleration of store maintenance and strengthening of its commercial sales force. Besides, its aggressive share repurchase policy supported by a strong cash flow is also mention worthy.
However, AutoZone relies heavily on its private label brands, which could hinder its business should they falter. Vendor consolidation and appreciation in gas prices coupled with fierce competition from O'Reilly Automotive Inc. ( ORLY ) and Advance Auto Parts Inc. ( AAP ), both of which have delivered impressive results during their last reported quarters, are primary headwinds for the company.
Hence, we have reiterated our long-term Neutral recommendation on the shares of the company.
ADVANCE AUTO PT ( AAP ): Free Stock Analysis Report
AUTOZONE INC ( AZO ): Free Stock Analysis Report
O REILLY AUTO ( ORLY ): Free Stock Analysis Report
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Vendor consolidation and appreciation in gas prices coupled with fierce competition from O'Reilly Automotive Inc. ( ORLY ) and Advance Auto Parts Inc. ( AAP ), both of which have delivered impressive results during their last reported quarters, are primary headwinds for the company. ADVANCE AUTO PT ( AAP ): Free Stock Analysis Report AUTOZONE INC ( AZO ): Free Stock Analysis Report O REILLY AUTO ( ORLY ): Free Stock Analysis Report Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Memphis, Tennessee-based AutoZone earned a profit of $7.18 in the fourth quarter of fiscal 2011, beating the Zacks Consensus Estimates of $6.98 per share.
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ADVANCE AUTO PT ( AAP ): Free Stock Analysis Report AUTOZONE INC ( AZO ): Free Stock Analysis Report O REILLY AUTO ( ORLY ): Free Stock Analysis Report Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Vendor consolidation and appreciation in gas prices coupled with fierce competition from O'Reilly Automotive Inc. ( ORLY ) and Advance Auto Parts Inc. ( AAP ), both of which have delivered impressive results during their last reported quarters, are primary headwinds for the company. Operating expenses, as a percentage of sales, increased to 31.4% from 31.2% last year due to higher self-insurance costs and higher fuel costs, partially offset by leverage due to higher sales volumes.
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ADVANCE AUTO PT ( AAP ): Free Stock Analysis Report AUTOZONE INC ( AZO ): Free Stock Analysis Report O REILLY AUTO ( ORLY ): Free Stock Analysis Report Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Vendor consolidation and appreciation in gas prices coupled with fierce competition from O'Reilly Automotive Inc. ( ORLY ) and Advance Auto Parts Inc. ( AAP ), both of which have delivered impressive results during their last reported quarters, are primary headwinds for the company. Estimate Revisions Trend Earnings estimate for the first quarter of fiscal 2011 is currently pegged at a profit of $4.45 per share.
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ADVANCE AUTO PT ( AAP ): Free Stock Analysis Report AUTOZONE INC ( AZO ): Free Stock Analysis Report O REILLY AUTO ( ORLY ): Free Stock Analysis Report Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Vendor consolidation and appreciation in gas prices coupled with fierce competition from O'Reilly Automotive Inc. ( ORLY ) and Advance Auto Parts Inc. ( AAP ), both of which have delivered impressive results during their last reported quarters, are primary headwinds for the company. Domestic same-store sales (sales for stores open at least one year) rose 4.5% during the quarter.
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12006.0
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2011-11-21 00:00:00 UTC
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This Stock Might Become Worthless in 6 Months
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AAP
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https://www.nasdaq.com/articles/stock-might-become-worthless-6-months-2011-11-21
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nan
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nan
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For many retailers, the slow economy has made it hard to meet sales and profit targets. Formerly stellar retailers such as Talbot's (NYSE: TLB ) , Pacific Sunwear (Nasdaq: PSUN ) , and Coldwater Creek (Nasdaq: CWTR ) have all seen their stock move below $3 as investors grow tired of waiting for sales to rebound. Crucially, these companies have decent balance sheets, so they will at least likely hang in there until the economy picks up.
The same can't be said for American Apparel (AMEX: AAP ) , a retailer known for its eccentric executive Dov Charney, who has been the target of several sexual harassment lawsuits initiated by former employees. Charney has repeatedly been criticized for paying more attention to his image than his company. And with a seemingly casual disregard for the health of his business, he's brought it to the precipice of bankruptcy. In fact, there's a series of metrics that will appear on the company's balance sheet in the next two quarters that may spell the end for this stock as the company potentially declares bankruptcy.
Let's break down the balance sheet to see whether the company is indeed on the cusp of a bankruptcy filing.
Inventory
Short sellers targeting retailers often go right to the inventory line on the balance sheet, as a growing pile of unsold merchandise implies sales weakness. Though inventories fell modestly in the most recent quarter, they are far higher than a few years ago. This is acceptable if sales are rising at a commensurate rate as retailers look to match stocking levels. But American Apparel's sales rose only 2.5% in 2009, fell 4.6% in 2010 to $533 million, and have been roughly flat in the first nine months of 2011 compared with the same period in 2010. Runaway inventory is just one of the mark's of poor management oversight, and as I'll note in a moment, the cause of significant shareholder dilution even if bankruptcy is avoided.
Short and long-term debt
At the end of the third quarter of 2011, American Apparel had $57 million in the current portion of its long-term debt and $92 million in long-term debt. It's the $57 million figure you need to focus on because these are obligations that need to be met within the next 12 months. That's a considerable sum for a company with just $8 million in cash. The company has already been flagged by auditors with a dreaded " going concern " qualifier: "The current operating plan indicates that losses from operations will be incurred for all of fiscal 2011. Consequently, the company may not have sufficient liquidity necessary to sustain operations for the next 12 months and this raises substantial doubt that the company will be able to continue as a going concern."
Roughly $51 million of the $57 million is owed to Bank of America (NYSE: BAC ) , which extended a credit line to American Apparel that will expire next July. Back in April, BofA waived a requirement that any "going concern" statement would automatically force American Apparel to instantly pay off the credit line, but as the company notes, "There can be no assurance in the future that the company will be able to receive a waiver, if necessary, with respect to its fiscal 2011 audited financial statements ."
Operating cash flowIn the first nine months of 2011, American Apparel generated $10 million in negative operating cash flow . Many retailers count on the all-important holiday season to make up for cash flow shortfalls earlier in the year, but it's worth noting American Apparel generated a $5 million operating cash flow loss in last year's December quarter. The company's lines of apparel aren't usually bought as holiday gifts to the same extent that many other retailers experience.
If American Apparel generated the same cash flow loss in the current quarter, it would have less than $5 million in the bank by the year's end. A repeat performance in the first quarter of 2012 would officially drain any remaining cash. Were it not for the fact that American Apparel has already sold $22 million worth of stock thus far in 2011, the company would already be in bankruptcy court. (One sale of stock generated the issuance of 34 million warrants at $0.90 a share. So if this stock ever moved back up above $0.90 for a sustained period, then this would instantly dilute current shareholders by more than 30%.)
Triggering covenants?
Here's where things get tricky. American Apparel maintains a much smaller $4.65 million line of credit with the Bank of Montreal to fund the company's Canadian operations. Although that bank also waived the "going concern" covenant earlier this year, it still insists that the retailer maintain a degree of financial health:
"The Bank of Montreal Credit Agreement contains a fixed charge coverage ratio , tested at the end of each month, which measures the ratio of EBITDA less cash, income taxes paid, dividends paid and unfinanced capital expenditures divided by interest expense plus scheduled principal payments of long term debt, debt under capital leases, dividends, and stockholder loans and advances, for the Company's Canadian subsidiaries. The ratio must be not less than 1.25 to 1.00."
American Apparel adds that as of Sept. 30, it remains in compliance with that covenant. Yet as operating cash flow is negative, it's not clear how that measurement can be positive. Even after accounting for $1.4 million in taxes paid, EBITDA is about $8 million in the red thus far in 2011. And this seemingly minor banking relationship has major implications. If the Bank of Montreal calls in the credit line, then Bank of America -- which really holds the purse strings - has the right to also demand immediate repayment of the credit line, as it would likely want to control the company's huge pile of inventory as a secured asset .
In an another ominous turn, acting president Tom Casey abruptly resigned at the end of last week. Casey was brought in 13 months ago to help impose more rigorous financial discipline on the company. The inventory bulge noted earlier is a clear refelection that his advice went unheeded.
Risks to Consider: Further capital infusions can always keep the wolves at bay, and an eventual rebound for the company could boost sales to the point where these financial metrics turn positive. A high short position could lead to a " short squeeze " that pushes the stock up significantly if that happens.
Action to Take --> This is a business model that is booby-trapped with explosives. One false step and the bankerscall in the chits. Short sellers, which hold a position equivalent to 26 days worth of trading volume , likely expect that this stock will eventually move to zero. This sounds like an increasing possibility, making the stock look like a good short candidate, provided you monitor company news for any possible positive developments that might derail the stock's march to zero.
Disclosure: Neither David Sterman nor StreetAuthority, LLC hold positions in any securities mentioned in this article.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
© Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The same can't be said for American Apparel (AMEX: AAP ) , a retailer known for its eccentric executive Dov Charney, who has been the target of several sexual harassment lawsuits initiated by former employees. Although that bank also waived the "going concern" covenant earlier this year, it still insists that the retailer maintain a degree of financial health: "The Bank of Montreal Credit Agreement contains a fixed charge coverage ratio , tested at the end of each month, which measures the ratio of EBITDA less cash, income taxes paid, dividends paid and unfinanced capital expenditures divided by interest expense plus scheduled principal payments of long term debt, debt under capital leases, dividends, and stockholder loans and advances, for the Company's Canadian subsidiaries. Risks to Consider: Further capital infusions can always keep the wolves at bay, and an eventual rebound for the company could boost sales to the point where these financial metrics turn positive.
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The same can't be said for American Apparel (AMEX: AAP ) , a retailer known for its eccentric executive Dov Charney, who has been the target of several sexual harassment lawsuits initiated by former employees. Short and long-term debt At the end of the third quarter of 2011, American Apparel had $57 million in the current portion of its long-term debt and $92 million in long-term debt. Operating cash flowIn the first nine months of 2011, American Apparel generated $10 million in negative operating cash flow .
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The same can't be said for American Apparel (AMEX: AAP ) , a retailer known for its eccentric executive Dov Charney, who has been the target of several sexual harassment lawsuits initiated by former employees. Short and long-term debt At the end of the third quarter of 2011, American Apparel had $57 million in the current portion of its long-term debt and $92 million in long-term debt. Many retailers count on the all-important holiday season to make up for cash flow shortfalls earlier in the year, but it's worth noting American Apparel generated a $5 million operating cash flow loss in last year's December quarter.
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The same can't be said for American Apparel (AMEX: AAP ) , a retailer known for its eccentric executive Dov Charney, who has been the target of several sexual harassment lawsuits initiated by former employees. Operating cash flowIn the first nine months of 2011, American Apparel generated $10 million in negative operating cash flow . If American Apparel generated the same cash flow loss in the current quarter, it would have less than $5 million in the bank by the year's end.
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12007.0
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2011-11-10 00:00:00 UTC
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Advance Auto Parts Q3 Earnings Jump 20%, Beating View (AAP)
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AAP
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https://www.nasdaq.com/articles/advance-auto-parts-q3-earnings-jump-20-beating-view-aap-2011-11-10
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nan
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nan
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Aftermarket auto parts retailer Advance Auto Parts, Inc. ( AAP ) late Wednesday posted better-than-expected third quarter earnings on higher profit and revenue.
The Roanoke, VA-based company reported third quarter net income of $105.6 million, or $1.41 per share, compared with $87.6 million, or $1.03 per share, in the year-ago period.
Revenue rose 4% from last year to $1.465 billion.
On average, Wall Street analysts expected a much smaller profit of $1.17 per share, on slightly lower revenue of $1.46 billion.
Advance Auto Parts shares rose $1.13, or +1.7%, in premarket trading Thursday.
The Bottom Line
Shares of Advance Auto Parts ( AAP ) have a .36% dividend yield, based on last night's closing stock price of $66.37. The stock has technical support in the $60 price area. If the stock can firm up, we see overhead resistance around the all-time highs of $70-$72 price levels.
Advance Auto Parts, Inc. ( AAP ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Created by Dividend.com
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Bottom Line Shares of Advance Auto Parts ( AAP ) have a .36% dividend yield, based on last night's closing stock price of $66.37. Aftermarket auto parts retailer Advance Auto Parts, Inc. ( AAP ) late Wednesday posted better-than-expected third quarter earnings on higher profit and revenue. Advance Auto Parts, Inc. ( AAP ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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Aftermarket auto parts retailer Advance Auto Parts, Inc. ( AAP ) late Wednesday posted better-than-expected third quarter earnings on higher profit and revenue. The Bottom Line Shares of Advance Auto Parts ( AAP ) have a .36% dividend yield, based on last night's closing stock price of $66.37. Advance Auto Parts, Inc. ( AAP ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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Aftermarket auto parts retailer Advance Auto Parts, Inc. ( AAP ) late Wednesday posted better-than-expected third quarter earnings on higher profit and revenue. The Bottom Line Shares of Advance Auto Parts ( AAP ) have a .36% dividend yield, based on last night's closing stock price of $66.37. Advance Auto Parts, Inc. ( AAP ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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The Bottom Line Shares of Advance Auto Parts ( AAP ) have a .36% dividend yield, based on last night's closing stock price of $66.37. Advance Auto Parts, Inc. ( AAP ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars. Aftermarket auto parts retailer Advance Auto Parts, Inc. ( AAP ) late Wednesday posted better-than-expected third quarter earnings on higher profit and revenue.
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12008.0
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2011-11-10 00:00:00 UTC
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Market Wrap-Up for Nov.10 (CSCO, AAP, KSS, EMN, MRK, more)
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AAP
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https://www.nasdaq.com/articles/market-wrap-nov10-csco-aap-kss-emn-mrk-more-2011-11-10
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nan
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nan
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The market opened with a rather nice spike this morning, but sellers took some of the shine off the early rally, but not enough to keep the indices from closing in the green. Investors are certainly awaiting the latest headlines out of Europe concerning the Italian financial situation. If the EU wants to take a page out of Federal Reserve chairman Ben Bernanke's book, then I'd expect some chatter about liquidity creation (printing euros to stave off the current market crisis).
Looking at today's biggest market movers, earnings results were a catalyst for higher prices in some names. Investors cheered results from the likes of Cisco Systems ( CSCO ), Advance Auto Parts ( AAP ), and Kohl's ( KSS ).
Elsewhere, a Wall Street analyst upgrade had shares of Eastman Chemical ( EMN ) gaining for the session. Shares of Merck ( MRK ) moved higher following news of the company's first dividend hike since 2004. While the yield becomes more attractive, one of our concerns are falling analyst estimates for the company. There are also concerns about the drug giant's pipeline, which is a big reason why the stock is down 19% over the last 5 years. Buying "value" is not as simple as it appears, and we continue to dig deeper into MRK and other pharmaceutical plays that sport an attractive yield, but again, have questionable drug pipeline growth.
Looking Through a Microscope
We continue to focus as deeply as possible for potential new candidates to add to our Best Dividend Stocks List . There are plenty of potential prospects currently on our radar, so be assured we will send out an e-mail alert if and when new names are slated to become recommendations - or current names need be put to the side. We'll keep all our Dividend.com Premium subscribers posted.
Mama, I'm Coming Home
According to data released from the Census Bureau last week, the number of adult children who live with their parents has soared since the economy started heading south. Among males aged 25 to 34, 19% live with their parents today, a 5 percentage point increase from 2005. As for women, 10% of that age group live at home, up from 8% six years ago.
Another recent study, this time from the Project on Student Debt, shows college seniors who graduated with student loans in 2010 owed an average of $25,250. This is the highest level ever recorded and a 5% increase from the previous year. When you factor the recent unemployment rate for new college graduates hovers at 9.1%, it's not a surprise to see kids flocking back home in droves. The news won't get any better next year, as starting in July, 2012, new federal graduate school loans will no longer be subsidized.
The long-term impact of this trend remains to be seen. We may see couples postpone marriage until later in life, or we may see the next generation reluctant to purchase a home for their new family. People struggling to find their career niche are less likely to have a desire to add a mortgage on their shoulders, considering some will already have sizable student loan debt to contend with.
Kids moving back home after college certainly adds a strain to parents who'd been hoping to build their retirement nest egg. It's also a let-down for many who wanted to see their children be able to establish themselves professionally and venture out successfully on their own.
Maintaining your financial sanity is essential in these types of situations. It's imperative to stick to your guns in terms of budgeting and the contributions you expect your children to make to the household (financial or otherwise) should they move back home. Deep in our hearts we'd love to see our kids around us as much as we can, but there comes a time when they need to fly on their own. Some of us have been there already, and some will get there sooner or later. Regardless, it's better to embrace and teach good money habits early and often.
New Watchlist Article Out Today
Be sure to check out our weekly Top 50 High-Yield Watchlist Names post that is out today, only for Dividend.com Premium members .
Thanks for reading, and I'll see you tomorrow!
P.S. Please pass this e-mail on to someone you think can use some financial motivation as well as being kept in thefinancial newsloop that could affect them.
Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Created by Dividend.com
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Investors cheered results from the likes of Cisco Systems ( CSCO ), Advance Auto Parts ( AAP ), and Kohl's ( KSS ). If the EU wants to take a page out of Federal Reserve chairman Ben Bernanke's book, then I'd expect some chatter about liquidity creation (printing euros to stave off the current market crisis). Buying "value" is not as simple as it appears, and we continue to dig deeper into MRK and other pharmaceutical plays that sport an attractive yield, but again, have questionable drug pipeline growth.
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Investors cheered results from the likes of Cisco Systems ( CSCO ), Advance Auto Parts ( AAP ), and Kohl's ( KSS ). Kids moving back home after college certainly adds a strain to parents who'd been hoping to build their retirement nest egg. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Investors cheered results from the likes of Cisco Systems ( CSCO ), Advance Auto Parts ( AAP ), and Kohl's ( KSS ). Kids moving back home after college certainly adds a strain to parents who'd been hoping to build their retirement nest egg. It's imperative to stick to your guns in terms of budgeting and the contributions you expect your children to make to the household (financial or otherwise) should they move back home.
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Investors cheered results from the likes of Cisco Systems ( CSCO ), Advance Auto Parts ( AAP ), and Kohl's ( KSS ). While the yield becomes more attractive, one of our concerns are falling analyst estimates for the company. Among males aged 25 to 34, 19% live with their parents today, a 5 percentage point increase from 2005.
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12009.0
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2011-11-09 00:00:00 UTC
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Opening View: Italian Bond Yields Skyrocket; DJIA to Follow European Stocks Lower
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AAP
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https://www.nasdaq.com/articles/opening-view-italian-bond-yields-skyrocket-djia-follow-european-stocks-lower-2011-11-09
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nan
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nan
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Optimism over Italian Prime Minister Silvio Berlusconi's resignation pledge has seemingly faded overnight, with U.S. stocks headed lower in pre-market action. Amid the uncertainty over Italy's future leadership -- and in the wake of a notable margin-call hike on Italian debt -- bond holders hit the proverbial exits en masse , sending 10-year yields to a euro-era high of 7.4%. Typically, borrowing rates above 7% are considered to be unsustainable over the long term. Against this backdrop, and thanks to re-emerging fears of fiscal contagion, the Dow Jones Industrial Average (DJIA) and its U.S. comrades are set to follow European stocks into the red.
In equities news, Adobe Systems (ADBE - 30.42) last night announced restructuring measures to better focus on its digital media and marketing software. As a result, the firm expects to cut 750 jobs, and predicted revenue growth of 4% to 6% next year. Analysts, on average, were calling for full-year growth of around 9%. Furthermore, ADBE trimmed its unadjusted quarterly earnings outlook to a range of 30 cents to 38 cents per share, compared to its previous guidance for a per-share profit of 41 cents to 50 cents. At last check, ADBE is set to start the session with a 10.6% drop.
In earnings news, Weight Watchers International (WTW - 71.84) last night reported a third-quarter profit of $80.7 million, or $1.09 per share - up 82% from last year's profit of $44.4 million, or 59 cents per share. Revenue was also on the rise, increasing 29.6% to $428.4 million. WTW continued its recent history of besting expectations, as analysts, on average, were projecting a profit of 94 cents per share on revenue of $411 million. Looking ahead, WTW upped its 2011 fiscal guidance for the third time this year, and now expects earnings in the range of $4.05 to $4.10 per share. Analysts, meanwhile, are predicting earnings of $3.98 per share. In pre-market trading, WTW has shed 8.8%.
Meanwhile, Activision Blizzard (ATVI - 13.93) said its third-quarter profit nearly tripled to $148 million, or 13 cents per share, from last year's earnings of $51 million, or 4 cents per share. Excluding items, ATVI earned 7 cents per share, while revenue increased 1.2% to $754 million. The video game publisher's results toppled Wall Street's prediction for a profit of 2 cents per share on $558.4 million in revenue. For the current quarter, ATVI expects adjusted earnings of 55 cents per share on $2.17 billion in sales, while analysts are looking for 53 cents per share on revenue of $2.10 billion. The Santa Monica, Calif.-based company also raised its fiscal 2011 adjusted earnings outlook to 85 cents per share on revenue of $4.25 billion. Analysts, on average, are anticipating 79 cents per share in earnings on $4.11 billion in sales. Ahead of the bell, ATVI is lingering about 1.7% south of breakeven.
Finally, Caribou Coffee (CBOU - 14.41) reported a third-quarter profit of $1.8 million, or 9 cents per share, up from $1.6 million, or 8 cents per share, in the year-ago period. Excluding items, CBOU earned $1.6 million, or 7 cents per share, compared to $1.0 million, or 5 cents per share, in year prior. Meanwhile, net sales rose 16.1% to $81.4 million, boosted by a 4.1% increase in same-store sales. Analysts, on average, were expecting a profit of 6 cents per share on revenue of $78.1 million. For fiscal 2011, the company is expecting its adjusted profit to arrive near the top end of its previously forecast range of 39 cents to 41 cents per share, falling roughly in line with the consensus estimate of 41 cents per share. At last look, CBOU is poised to open 2.3% lower.
Earnings Preview
Today's earnings docket will also feature reports from 99 Cents Only Stores ( NDN ), Advance Auto Parts ( AAP ), Ashland ( ASH ), Cisco Systems ( CSCO ), Computer Sciences ( CSC ), Comverge (COMV), Dean Foods (DF), Energy Conversion Devices (ENER), Fuel Systems Solutions (FSYS), General Growth Properties (GGP), General Motors (GM), Green Mountain Coffee Roasters (GMCR), Liz Claiborne (LIZ), Macy's (M), Medivation (MDVN), Ralph Lauren (RL), Silver Wheaton (SLW), SodaStream International (SODA), Wendy's (WEN), and Zhongpin (HOGS). Keep your browser at SchaeffersResearch.com for more news as it breaks.
Economic Calendar
Data on wholesale inventories is due out today, along with the usual report on domestic petroleum supplies. Thursday brings a relative onslaught of economic news, including import/export prices, the U.S. trade balance, the Treasury budget, and the weekly report on jobless claims. The week wraps up on Friday with the Thomson Reuters/University of Michigan consumer sentiment survey for early November.
Market Statistics
Equity option activity on the Chicago Board Options Exchange (CBOE) saw 885,746 call contracts traded on Tuesday, compared to 568,137 put contracts. The resultant single-session put/call ratio arrived at 0.64, while the 21-day moving average was 0.68.
Overseas Trading
Stocks in Asia caught a lift today, following suit with healthy gains on Wall Street after Italian Prime Minister Berlusconi announced his intention to resign . Traders also cheered an encouraging round of inflation data out of China, which showed that producer prices rose by a tamer-than-forecast 5% in October. Easing inflation could give policymakers some room to relax their tightening regime, potentially averting the "hard landing" that many have feared for the key emerging market. By the close, Hong Kong's Hang Seng added 1.7%, Japan's Nikkei rose 1.2%, China's Shanghai Composite tacked on 0.8%, and South Korea's Kospi gained 0.2%.
Conversely, the major European benchmarks have turned south at midday. The initial enthusiasm over Berlusconi's impending departure has faded, thanks to soaring Italian bond yields. The yield on 10-year notes spiked north of 7% today after clearing house LCH.Clearnet upped the initial margin call on Italian debt by 3.5 to 5 percentage points across all bond maturities. At last look, the German DAX is down 2.6%, the French CAC 40 is off 2.3%, and London's FTSE 100 is 1.8% lower.
Currencies and Commodities
The greenback has reclaimed some ground this morning, with the U.S. dollar up about 1.1% at last check. Elsewhere, crude futures have pared some of their recent gains, with the front-month contract down $1.16, or 1.2%, at $95.64 per barrel. Likewise, gold futures have retreated from multi-week peaks, with the precious metal last seen $7.40, or 0.4%, lower at $1,791.80 an ounce.
Unusual Put and Call Activity:
For an explanation of how to use this information, check out our Education Center topics on Option Volume and Open Interest Configurations .
Every morning, our research staff analyzes the prior day and the overnight markets, and monitors the morning wires to give you an accurate preview of the day to come. If you enjoyed today's edition of Opening View, sign up here for free daily delivery, straight to your inbox, before the opening bell.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Earnings Preview Today's earnings docket will also feature reports from 99 Cents Only Stores ( NDN ), Advance Auto Parts ( AAP ), Ashland ( ASH ), Cisco Systems ( CSCO ), Computer Sciences ( CSC ), Comverge (COMV), Dean Foods (DF), Energy Conversion Devices (ENER), Fuel Systems Solutions (FSYS), General Growth Properties (GGP), General Motors (GM), Green Mountain Coffee Roasters (GMCR), Liz Claiborne (LIZ), Macy's (M), Medivation (MDVN), Ralph Lauren (RL), Silver Wheaton (SLW), SodaStream International (SODA), Wendy's (WEN), and Zhongpin (HOGS). Amid the uncertainty over Italy's future leadership -- and in the wake of a notable margin-call hike on Italian debt -- bond holders hit the proverbial exits en masse , sending 10-year yields to a euro-era high of 7.4%. Overseas Trading Stocks in Asia caught a lift today, following suit with healthy gains on Wall Street after Italian Prime Minister Berlusconi announced his intention to resign .
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Earnings Preview Today's earnings docket will also feature reports from 99 Cents Only Stores ( NDN ), Advance Auto Parts ( AAP ), Ashland ( ASH ), Cisco Systems ( CSCO ), Computer Sciences ( CSC ), Comverge (COMV), Dean Foods (DF), Energy Conversion Devices (ENER), Fuel Systems Solutions (FSYS), General Growth Properties (GGP), General Motors (GM), Green Mountain Coffee Roasters (GMCR), Liz Claiborne (LIZ), Macy's (M), Medivation (MDVN), Ralph Lauren (RL), Silver Wheaton (SLW), SodaStream International (SODA), Wendy's (WEN), and Zhongpin (HOGS). In earnings news, Weight Watchers International (WTW - 71.84) last night reported a third-quarter profit of $80.7 million, or $1.09 per share - up 82% from last year's profit of $44.4 million, or 59 cents per share. For the current quarter, ATVI expects adjusted earnings of 55 cents per share on $2.17 billion in sales, while analysts are looking for 53 cents per share on revenue of $2.10 billion.
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Earnings Preview Today's earnings docket will also feature reports from 99 Cents Only Stores ( NDN ), Advance Auto Parts ( AAP ), Ashland ( ASH ), Cisco Systems ( CSCO ), Computer Sciences ( CSC ), Comverge (COMV), Dean Foods (DF), Energy Conversion Devices (ENER), Fuel Systems Solutions (FSYS), General Growth Properties (GGP), General Motors (GM), Green Mountain Coffee Roasters (GMCR), Liz Claiborne (LIZ), Macy's (M), Medivation (MDVN), Ralph Lauren (RL), Silver Wheaton (SLW), SodaStream International (SODA), Wendy's (WEN), and Zhongpin (HOGS). In earnings news, Weight Watchers International (WTW - 71.84) last night reported a third-quarter profit of $80.7 million, or $1.09 per share - up 82% from last year's profit of $44.4 million, or 59 cents per share. Meanwhile, Activision Blizzard (ATVI - 13.93) said its third-quarter profit nearly tripled to $148 million, or 13 cents per share, from last year's earnings of $51 million, or 4 cents per share.
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Earnings Preview Today's earnings docket will also feature reports from 99 Cents Only Stores ( NDN ), Advance Auto Parts ( AAP ), Ashland ( ASH ), Cisco Systems ( CSCO ), Computer Sciences ( CSC ), Comverge (COMV), Dean Foods (DF), Energy Conversion Devices (ENER), Fuel Systems Solutions (FSYS), General Growth Properties (GGP), General Motors (GM), Green Mountain Coffee Roasters (GMCR), Liz Claiborne (LIZ), Macy's (M), Medivation (MDVN), Ralph Lauren (RL), Silver Wheaton (SLW), SodaStream International (SODA), Wendy's (WEN), and Zhongpin (HOGS). In earnings news, Weight Watchers International (WTW - 71.84) last night reported a third-quarter profit of $80.7 million, or $1.09 per share - up 82% from last year's profit of $44.4 million, or 59 cents per share. WTW continued its recent history of besting expectations, as analysts, on average, were projecting a profit of 94 cents per share on revenue of $411 million.
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12010.0
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2011-10-20 00:00:00 UTC
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Stellar Picks: Top Six Picks at Morgan Joseph TriArtisan LLC
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AAP
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https://www.nasdaq.com/articles/stellar-picks-top-six-picks-morgan-joseph-triartisan-llc-2011-10-20
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nan
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nan
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(List compiled by Eben Esterhuizen, CFA)
David Kestenbaum, head of equity research with Morgan Joseph TriArtisan, released the firm’s annual list of “Six Stellar Stocks” on Monday. The list contains a mix of familiar and surprising names. Kestenbaum explains the stock picks in an interview with CNBC, which we highlight in detail below.
To credit the firm, the 2010 stock list included American Water Works (AWK) and Primoris Services (PRIM) which rallied 33% and 116% respectively from September 15th to present. Stage Stores (SSI) and CBL Associates Properties (CBL) went up by 21% and 0.7%. However, Harris Corp. (HRS) and Navistar (NAV) dropped 15% and 7% respectively in the same period.
Interested? Here’s the 2011 list along with Kestenbaum’s comments where applicable:
Analyze These Ideas (Tools Will Open In A New Window)
1. Access a thorough description of all companies mentioned
2. Compare analyst ratings for all stocks mentioned below
3. Visualize annual returns for all stocks mentioned
1. Raytheon (RTN): Provides electronics, mission systems integration, and other capabilities in the areas of sensing, effects, and command, control, communications, and intelligence systems, as well as mission support services in the United States and internationally.
2. Tyson Foods (TSN): Engages in the production, distribution, and marketing of chicken, beef, pork, and prepared food products, as well as related allied products worldwide. The number of chicks hatched and the number of eggs placed in the incubators is down and if you couple that strong international demand, we think that results are going to get better at tyson and things are also they're doing pretty well in the pork side of their business too.
3. St. Jude Medical (STJ): Develops, manufactures, and distributes cardiovascular and implantable neurostimulation medical devices worldwide.
4. Ironwood Pharmaceuticals (IRWD): Develops, and commercializes medicines targeting therapeutic needs.
5. Equinix (EQIX): Provides data center services for the protection and connection of information assets to enterprises, content providers, financial companies, network service providers, and cloud and IT services companies. "The company depends on internet traffic, which even in a bad economy people are still surfing the net… Data traffic is growing no matter what the economy does and we think that this company… they're a web hosting company.. and as data traffic goes, the demand for their services keeps increasing. And they're hiring 65-70 new sales people this year. So I think you'll see incredible growth in this operation."
6. Advance Auto Parts (AAP): Operates as a retailer of automotive aftermarket parts, accessories, batteries, and maintenance items. "People are trying to stretch out their cars instead of buying new ones. There are also more cars on the road. In 2006 there were 138 million cars on the road, today there are over 150 million. and people are holding their cars for over 10 years now versus about 9 1/2 at that time in 2006" Joseph believes this stock to be a long term play as trends will continue to have a positive effect on the stock. He also believes there is "well over 20% upside from here."
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Advance Auto Parts (AAP): Operates as a retailer of automotive aftermarket parts, accessories, batteries, and maintenance items. To credit the firm, the 2010 stock list included American Water Works (AWK) and Primoris Services (PRIM) which rallied 33% and 116% respectively from September 15th to present. Here’s the 2011 list along with Kestenbaum’s comments where applicable: Analyze These Ideas (Tools Will Open In A New Window) 1.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Advance Auto Parts (AAP): Operates as a retailer of automotive aftermarket parts, accessories, batteries, and maintenance items. Equinix (EQIX): Provides data center services for the protection and connection of information assets to enterprises, content providers, financial companies, network service providers, and cloud and IT services companies.
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Advance Auto Parts (AAP): Operates as a retailer of automotive aftermarket parts, accessories, batteries, and maintenance items. (List compiled by Eben Esterhuizen, CFA) David Kestenbaum, head of equity research with Morgan Joseph TriArtisan, released the firm’s annual list of “Six Stellar Stocks” on Monday. "The company depends on internet traffic, which even in a bad economy people are still surfing the net… Data traffic is growing no matter what the economy does and we think that this company… they're a web hosting company.. and as data traffic goes, the demand for their services keeps increasing.
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Advance Auto Parts (AAP): Operates as a retailer of automotive aftermarket parts, accessories, batteries, and maintenance items. (List compiled by Eben Esterhuizen, CFA) David Kestenbaum, head of equity research with Morgan Joseph TriArtisan, released the firm’s annual list of “Six Stellar Stocks” on Monday. Access a thorough description of all companies mentioned 2.
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12011.0
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2011-10-04 00:00:00 UTC
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Call seller extends Advance Auto ride
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AAP
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https://www.nasdaq.com/articles/call-seller-extends-advance-auto-ride-2011-10-04
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nan
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nan
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Advance Auto Parts has been drifting lower, and doubts persist among traders.
optionMONSTER's tracking systems detected the sale of 5,000 December 60 calls for $2.95 against open interest of just 638 contracts. Some 4,000 October 60 calls were bought at the same time for an average premium of $1.225, but volume was below previous positioning.
This activity suggests that an existing short position in the calls was rolled into the future. The investor may own shares against the options or could simply be looking to ride the name lower. (See our Education section)
Regardless, the trade reflects a belief that the seller of car accessories will stay below $60 through expiration. In return for taking that risk, yesterday's investor pocketed a credit of about $985,000.
AAP fell 3.1 percent to $56.30 yesterday and has been declining since mid-May, when it collapsed shortly after making an all-time high above $72. The earnings history has been mixed, with profit beating on Aug. 10 but missing three months earlier. Its next earnings report is scheduled for Nov. 10.
Overall option volume was 16 times greater than average in the session.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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AAP fell 3.1 percent to $56.30 yesterday and has been declining since mid-May, when it collapsed shortly after making an all-time high above $72. optionMONSTER's tracking systems detected the sale of 5,000 December 60 calls for $2.95 against open interest of just 638 contracts. (See our Education section) Regardless, the trade reflects a belief that the seller of car accessories will stay below $60 through expiration.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. AAP fell 3.1 percent to $56.30 yesterday and has been declining since mid-May, when it collapsed shortly after making an all-time high above $72. Overall option volume was 16 times greater than average in the session.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. AAP fell 3.1 percent to $56.30 yesterday and has been declining since mid-May, when it collapsed shortly after making an all-time high above $72. Some 4,000 October 60 calls were bought at the same time for an average premium of $1.225, but volume was below previous positioning.
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AAP fell 3.1 percent to $56.30 yesterday and has been declining since mid-May, when it collapsed shortly after making an all-time high above $72. optionMONSTER's tracking systems detected the sale of 5,000 December 60 calls for $2.95 against open interest of just 638 contracts. Some 4,000 October 60 calls were bought at the same time for an average premium of $1.225, but volume was below previous positioning.
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12012.0
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2011-09-23 00:00:00 UTC
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Five Service Stocks that Pass the Strategies of Market Legends
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AAP
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https://www.nasdaq.com/articles/five-service-stocks-pass-strategies-market-legends-2011-09-23
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nan
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nan
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Over the past several decades, America has shifted consistently and dramatically toward being a service-dominated economy. Fifty years ago, 59% of U.S. private jobs came from the service sector, with 41% from the goods-producing sector; by 1981, the gap had grown to 67.8% for the service sector vs. 32.2% for the goods-producing sector; by 1991, it had shifted even further, with about 75% of U.S. jobs coming from service sector and 25% from the goods-producing sector.
Today, 83.4% of America's private jobs are service-oriented. We rely less on people buying our cars and appliances and clothing made in America, and more on people using our cable, phone, and Internet services; shopping at stores that sell goods made elsewhere; using healthcare services like doctors and nursing homes and rehabilitation centers; and needing transportation services to move products imported from other countries.
That means service-type companies, and the service sector as a whole, have become the real bellwethers of U.S. economic activity. And lately, if you listen to the pundits, you'd think that the service sector is in dire straits, with fears of another recession -- or worse -- having dominated the headlines for the past couple months.
But guess what? The real, hard data from the service sector hasn't been that bad. In fact, some of it has been downright good. According to the Institute for Supply Management, the service sector has expanded for 21 straight months. And in August -- a month when fear seemed to be everywhere -- the sector not only expanded, but did so at a faster pace than it did in July.
Of course, the service sector depends quite a bit on the U.S. consumer -- and, for more than two years now, we've been hearing how the U.S. consumer is overleveraged and tapped out. Fortunately, the data doesn't support that notion. The latest retail and food service sales figures were flat in August, but year-to-date they are more than 8% ahead of last year's pace. And here's something few commentators are mentioning: Americans' "financial obligations ratio" -- that is, their amount of debt as a percentage of disposable income -- was 18.85% in the third quarter of 2007, right before the "Great Recession" began. The Federal Reserve's web site has data going back to 1980, and that was the highest level on record. But by last quarter, the figure had fallen to 16.39% -- the lowest level since the fourth quarter of 1993.
Of course, none of that seems to matter to most investors right now. They've been overwhelmed by European debt and double-dip recession hype. And that's created a lot of bargains among shares of strong service sector companies. Recently I used my Guru Strategies -- each of which is based on the approach of a different investing great -- to find some of the most attractive. Here are some of the best of the bunch.
AT&T Inc. ( T ): This Dallas-based telecom giant ($165 billion market cap) was already one of the largest companies in the world before its recent purchase of T-Mobile, which would make it the largest wireless company in the U.S. The deal may fall through under regulatory scrutiny, but AT&T is still a power, having taken in $126 billion in sales in the past year.
That size is part of why my James O'Shaughnessy-based value model likes AT&T. Two more reasons: AT&T is producing $6.55 in cash flow per share, nearly five times the market mean ($1.33), and it's paying a 6.1% dividend yield.
MarketAxess Holdings Inc. ( MKTX ): New York City-based MarketAxess operates an electronic trading platform that lets investment industry professionals trade corporate bonds and other fixed-income instruments. It has a $1 billion market cap.
MarketAxess gets high marks from my Peter Lynch-inspired strategy, which considers the stock a "fast-grower" -- Lynch's favorite type of investment -- thanks to its 38.7% long-term earnings-per-share growth rate. (I use an average of the three-, four-, and five-year EPS growth rates to determine a long-term rate.) Lynch famously used the P/E/Growth ratio to find bargain-priced growth stocks. When we divide MarketAxess's 25.1 price/earnings ratio by that long-term growth rate, we get a P/E/G of 0.65, which easily comes in under the model's 1.0 upper limit.
MarketAxess also gets solid marks from the small-cap growth approach that I base on the writings of Motley Fool creators Tom and David Gardner. This approach has been my best performer since its inception more than eight years ago, generating annualized returns of nearly 15%. It likes MarketAxess' strong and improving profit margins, which reached 21.5% this year. It also likes the stock's 91 relative strength, and its strong recent growth -- earnings grew 66.7% in the most recent quarter while sales grew 29.6% (vs. the year-ago quarter).
LHC Group, Inc. ( LHCG ): Louisiana-based LHC offers home health, hospice, private duty and long-term acute care service to the elderly and other homebound patients. I wrote about this small-cap ($300 million) about six months ago, and, like many other companies in its industry, it's been hit hard since. But two of my top-performing models think it's being treated unfairly.
One is my Benjamin Graham-inspired model. Graham, known as the "Father of Value Investing", was a very conservative investor, and this approach looks for companies with good liquidity (current ratio of at least 2.0) and a strong balance sheet (long-term debt should not exceed net current assets). LHC has a 2.4 current ratio, and about $70 million in net current assets vs. zero long-term debt. It also trades for just 7.2 times three-year average earnings, and just 1.03 times book value.
My Joel Greenblatt-based model also likes LHC, thanks to its 27.5% earnings yield and 80.5% return on capital. Together, those figures make LHC the 5th-most-attractive stock in the market, according to the Greenblatt-based approach.
Dollar Tree, Inc. ( DLTR ): Based in Virginia, Dollar Tree's stores offer a wide variety of discount merchandise, ranging from food items to household goods to toys to yard-care products. It has a market cap of about $9 billion, and has taken in more than $6 billion in sales in the past year.
Dollar Tree gets strong interest from my Lynch-based model, thanks to its 26.7% long-term EPS growth rate and 0.77 P/E/G ratio. My O'Shaughnessy-based growth approach also likes the stock. It looks for firms that have upped EPS in each year of the past half-decade (which Dollar Tree has done), and which have high relative strengths and low price/sales ratios. Dollar Tree (92 relative strength) fits the bill, though its 1.45 P/S ratio just makes the grade.
Advance Auto Parts ( AAP ): Virginia-based Advance Auto ($4.4 billion market cap) is an aftermarket retailer of auto parts. It has more than 3,500 stores across 39 states and some U.S. territories.
Like Dollar Tree, Advance Auto is a favorite of my O'Shaughnessy growth- and Lynch-based models. The O'Shaughnessy approach likes its history of increasing EPS (it's done so each year of the past decade) and 0.72 price/sales ratio. The Lynch approach, meanwhile, considers the it a "stalwart" -- the type of steady, solid firm that Lynch found holds up well in downturns -- because of its $6 billion in annual sales and moderate 16.4% long-term growth rate. It likes Advance Auto's 0.79 P/E/G ratio, a sign the stock is selling on the cheap.
I'm long T, MKTX, LHCG, and DLTR.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Advance Auto Parts ( AAP ): Virginia-based Advance Auto ($4.4 billion market cap) is an aftermarket retailer of auto parts. And lately, if you listen to the pundits, you'd think that the service sector is in dire straits, with fears of another recession -- or worse -- having dominated the headlines for the past couple months. And here's something few commentators are mentioning: Americans' "financial obligations ratio" -- that is, their amount of debt as a percentage of disposable income -- was 18.85% in the third quarter of 2007, right before the "Great Recession" began.
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Advance Auto Parts ( AAP ): Virginia-based Advance Auto ($4.4 billion market cap) is an aftermarket retailer of auto parts. It also likes the stock's 91 relative strength, and its strong recent growth -- earnings grew 66.7% in the most recent quarter while sales grew 29.6% (vs. the year-ago quarter). Dollar Tree, Inc. ( DLTR ): Based in Virginia, Dollar Tree's stores offer a wide variety of discount merchandise, ranging from food items to household goods to toys to yard-care products.
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Advance Auto Parts ( AAP ): Virginia-based Advance Auto ($4.4 billion market cap) is an aftermarket retailer of auto parts. Fifty years ago, 59% of U.S. private jobs came from the service sector, with 41% from the goods-producing sector; by 1981, the gap had grown to 67.8% for the service sector vs. 32.2% for the goods-producing sector; by 1991, it had shifted even further, with about 75% of U.S. jobs coming from service sector and 25% from the goods-producing sector. Graham, known as the "Father of Value Investing", was a very conservative investor, and this approach looks for companies with good liquidity (current ratio of at least 2.0) and a strong balance sheet (long-term debt should not exceed net current assets).
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Advance Auto Parts ( AAP ): Virginia-based Advance Auto ($4.4 billion market cap) is an aftermarket retailer of auto parts. Fifty years ago, 59% of U.S. private jobs came from the service sector, with 41% from the goods-producing sector; by 1981, the gap had grown to 67.8% for the service sector vs. 32.2% for the goods-producing sector; by 1991, it had shifted even further, with about 75% of U.S. jobs coming from service sector and 25% from the goods-producing sector. Together, those figures make LHC the 5th-most-attractive stock in the market, according to the Greenblatt-based approach.
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12013.0
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2011-09-12 00:00:00 UTC
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Australia Marches to 5th Straight Month of Trade Surplus Due to Mining Boom
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AAP
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https://www.nasdaq.com/articles/australia-marches-5th-straight-month-trade-surplus-due-mining-boom-2011-09-12
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nan
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nan
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Australia's growing economic relationship with Asian markets, specifically with China and India, fuelled the country's fifth trade surplus in July, which economists described as a steady but mostly insignificant movement.
The latest figures issued by the Australian Bureau of Statistics Monday also showed that the country's balance on goods and services reached a seasonally adjusted surplus of $1.826 billion in the month.
The figures improved from the downwardly revised surplus of $1.817 billion realised in June but fell short from the $1.9 billion earlier projected by market analysts as economists noted that Australia's mining boom now serves as a flickering light in a largely gloomy global economic environment.
The new ABS data also showed that both of the country's export and import numbers dipped by at least a notch, with the former retreating in adjusted terms.
The general economic mood is somber, according to JP Morgan economist Ben Jarman, who told the Australian Associated Press ( AAP ) that trade surpluses accumulated since last year cushioned the impacts of restiveness being felt from the United States, Europe and Asia.
"In the broader context of the Asian region having a slowdown, it is a pretty positive result," if not a steady result, Jarman was quoted by AAP as saying.
"We've got this long run story of pretty solid demand for iron ore and coal coming out of the emerging economies and that is happening against a nice price premium," the JP Morgan analyst added.
CommSec chief economist Craig James, however, was far from impressed with the latest Australian trade postings, which he called as "very unspectacular."
"The bottom line is Australia is still paying its way in the world and our exports are more than meeting our imports ... and there were no great surprises, perhaps a little bit weaker than what we were expecting, there is a margin for error in terms of the monthly figures," James told AAP.
He added that the trade figures only asserted Australia's close affinity with Asia's economic activities that he noted are "doing well and requiring our raw materials."
Overall, James said that the new trade figures highlighted a growing economy and a solid financial sector for Australia yet the impressive numbers do not necessarily appear in the trading atmosphere currently prevailing in the local share market.
"What it should highlight to investors across the globe is it doesn't make sense for the Australian share market to be religiously following developments in Europe and the United States," James stressed.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The general economic mood is somber, according to JP Morgan economist Ben Jarman, who told the Australian Associated Press ( AAP ) that trade surpluses accumulated since last year cushioned the impacts of restiveness being felt from the United States, Europe and Asia. "The bottom line is Australia is still paying its way in the world and our exports are more than meeting our imports ... and there were no great surprises, perhaps a little bit weaker than what we were expecting, there is a margin for error in terms of the monthly figures," James told AAP. "In the broader context of the Asian region having a slowdown, it is a pretty positive result," if not a steady result, Jarman was quoted by AAP as saying.
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The general economic mood is somber, according to JP Morgan economist Ben Jarman, who told the Australian Associated Press ( AAP ) that trade surpluses accumulated since last year cushioned the impacts of restiveness being felt from the United States, Europe and Asia. "The bottom line is Australia is still paying its way in the world and our exports are more than meeting our imports ... and there were no great surprises, perhaps a little bit weaker than what we were expecting, there is a margin for error in terms of the monthly figures," James told AAP. "In the broader context of the Asian region having a slowdown, it is a pretty positive result," if not a steady result, Jarman was quoted by AAP as saying.
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The general economic mood is somber, according to JP Morgan economist Ben Jarman, who told the Australian Associated Press ( AAP ) that trade surpluses accumulated since last year cushioned the impacts of restiveness being felt from the United States, Europe and Asia. "In the broader context of the Asian region having a slowdown, it is a pretty positive result," if not a steady result, Jarman was quoted by AAP as saying. "The bottom line is Australia is still paying its way in the world and our exports are more than meeting our imports ... and there were no great surprises, perhaps a little bit weaker than what we were expecting, there is a margin for error in terms of the monthly figures," James told AAP.
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The general economic mood is somber, according to JP Morgan economist Ben Jarman, who told the Australian Associated Press ( AAP ) that trade surpluses accumulated since last year cushioned the impacts of restiveness being felt from the United States, Europe and Asia. "In the broader context of the Asian region having a slowdown, it is a pretty positive result," if not a steady result, Jarman was quoted by AAP as saying. "The bottom line is Australia is still paying its way in the world and our exports are more than meeting our imports ... and there were no great surprises, perhaps a little bit weaker than what we were expecting, there is a margin for error in terms of the monthly figures," James told AAP.
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12014.0
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2011-08-11 00:00:00 UTC
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Market Wrap-Up for Aug.11 (CSCO, NWS, AOL, BAC, BLK, GLD, more)
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AAP
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https://www.nasdaq.com/articles/market-wrap-aug11-csco-nws-aol-bac-blk-gld-more-2011-08-11
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nan
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nan
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Everyone knows I've been a bit frustrated with business media coverage, and this morning CNBC put the one and only Donald Trump on for more than just political talk. Trump came on to talk about stocks he he's been buying (which included the much-maligned Bank of America ( BAC )). I figured he would have at least mentioned REITs (as he has said in the past, he only puts his money in what he knows, which is real estate), but that wasn't the case. We all know Donald Trump means ratings, and that is what business television is all about these days.
We heard lots of chatter today that Europe may come together and ban short-selling (traders betting against the market) to stem the recent declines. This is eerily similar to what happened in the U.S. markets prior to the collapse of several financial institutions, as many market observers cried out for investigations into short-selling. In my opinion, all this talk is once again ignoring the true problem at hand: banks using too much leverage and begging for help when their bets go bad. My guess is bailout talk could be next. How will this scenario affect U.S. financial institutions? Well, that remains to be seen.
Before we dig into today's dividend movers, I noticed AOL ( AOL ) shares bounced up 12% today to close at $11.47. The stock had recently plummeted down from $16 following its subpar earnings results. So, what is moving shares back up today? The company announced it intends to buy back $250 million worth of its own stock. This process will reduce the float (number of shares outstanding), but once again, a company is ignoring the true problem at hand. AOL needs to figure out how to grow their revenues and profits of its business instead, either through acquisitions or developing innovative web properties in-house. You can mask weakness easily on Wall Street, but at the end of the day, results are what keep the lights on!
Getting back to the dividend scene today, the markets have taken back part of yesterday's heavy losses. Despite these gains, we are still working through our "Best Dividend Stocks" List and we did remove two names from our list this morning, so be sure to read this post detailing the latest downgrades if you didn't notice the e-mail alert we sent out earlier this morning.
Today's trading was a great time for aggressive investors to get out of high-beta (usually low-yield) plays they may have been getting buried in. As a former trader, it was days like today that I would look to take advantage of higher prices and cut my losses whenever I had positions misplayed.
Earnings results pushed up shares of Cisco Systems ( CSCO ) (still hard to see where new business will come from to bring this former tech titan back), News Corp ( NWS ) (despite the recent troubles the company surprised with results, also raised its dividend but it is still too small to be taken seriously), and Advance Auto Parts ( AAP ) (automakers may want to get out of the manufacturing business and just sell parts!). Wall Street upgrades were also running rampant once again, lifting up shares of Simon Property Group ( SPG ) (REIT yields remain on the low side, and we would love to see a 4-handle in front of the yields), Anadarko Petroleum ( APC ) (with oil prices approaching bear market territory it will be interesting to see if the natural gas stocks can get their mojo back - I'm not so sure about this one), Blackrock ( BLK ) (yield is looking better, but technically asset managers have been breaking down). Another huge batch of Wall Street upgrades comes despite the economic turbulence we are feeling. A negative to possibly take away from today's rally was the fall-off in volume from yesterday's sell-off. We would prefer the opposite effect to be the case, where volume picks up on the big up days and pulls back on lesser volume. As I've been saying, now is not the time to be super-aggressive, although analysts would have you believe differently.
Lastly, gold prices ( GLD ) saw a bit of a pullback as margin requirements got a bit more expensive for traders buying gold futures. Some are saying this could put the brakes on the recent meteoric gold rise, as it was when margin requirements were raised for silver futures.
Just a reminder for all Dividend.com Premium subscribers: with all the recent dividend recommendation changes, unless we specifically issue a "Sell" call on any of the individual names we remove (very rare), it is simply a call to not add any new capital into those particular stocks. The market is clearly undergoing some major turbulence and we want to make sure the names that remain on our list are the best-positioned in a volatile market. That said, some of the names we have removed could find themselves back on the recommended list if we see better entry points or if the worst of the downside is behind us. On that note, be sure to check out our ever-popular weekly "Top 50 Watchlist Names" post that is out today (some recently-downgraded names appear on this list), only for Dividend.com Premium members. Our service isn't about trading, but when the volatility rises, we tend to be more active in our ratings changes. Unlike most of the exuberance and almost always "bullish" Wall Street calls you may be accustomed to, we don't like to take chances with shares that have considerable downside risk. This strategy worked extremely well for us back in 2008/2009 during the financial crisis and subsequent market meltdown, so rest assured, we'll keep you on top of things!
And here's one final note that I like to stress to investors: if you lack consistency when it comes to putting money to work, or are still contemplating your first move, it's time to get busy (regardless of what the market is doing day-to-day, month-to-month, or year-to year). The hardest job isn't finding the right stocks to buy (Dividend.com has that covered), but rather it's the individual's ability to allocate funds and put them to work. Be relentless! No one will ever care more about your money than YOU!
Thanks for reading, and I'll see you tomorrow! P.S. Please pass this e-mail on to someone you think can use some financial motivation as well as being kept in thefinancial newsloop that could affect them.
Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Created by Dividend.com
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Earnings results pushed up shares of Cisco Systems ( CSCO ) (still hard to see where new business will come from to bring this former tech titan back), News Corp ( NWS ) (despite the recent troubles the company surprised with results, also raised its dividend but it is still too small to be taken seriously), and Advance Auto Parts ( AAP ) (automakers may want to get out of the manufacturing business and just sell parts!). And here's one final note that I like to stress to investors: if you lack consistency when it comes to putting money to work, or are still contemplating your first move, it's time to get busy (regardless of what the market is doing day-to-day, month-to-month, or year-to year). The hardest job isn't finding the right stocks to buy (Dividend.com has that covered), but rather it's the individual's ability to allocate funds and put them to work.
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Earnings results pushed up shares of Cisco Systems ( CSCO ) (still hard to see where new business will come from to bring this former tech titan back), News Corp ( NWS ) (despite the recent troubles the company surprised with results, also raised its dividend but it is still too small to be taken seriously), and Advance Auto Parts ( AAP ) (automakers may want to get out of the manufacturing business and just sell parts!). Before we dig into today's dividend movers, I noticed AOL ( AOL ) shares bounced up 12% today to close at $11.47. Getting back to the dividend scene today, the markets have taken back part of yesterday's heavy losses.
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Earnings results pushed up shares of Cisco Systems ( CSCO ) (still hard to see where new business will come from to bring this former tech titan back), News Corp ( NWS ) (despite the recent troubles the company surprised with results, also raised its dividend but it is still too small to be taken seriously), and Advance Auto Parts ( AAP ) (automakers may want to get out of the manufacturing business and just sell parts!). Despite these gains, we are still working through our "Best Dividend Stocks" List and we did remove two names from our list this morning, so be sure to read this post detailing the latest downgrades if you didn't notice the e-mail alert we sent out earlier this morning. Wall Street upgrades were also running rampant once again, lifting up shares of Simon Property Group ( SPG ) (REIT yields remain on the low side, and we would love to see a 4-handle in front of the yields), Anadarko Petroleum ( APC ) (with oil prices approaching bear market territory it will be interesting to see if the natural gas stocks can get their mojo back - I'm not so sure about this one), Blackrock ( BLK ) (yield is looking better, but technically asset managers have been breaking down).
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Earnings results pushed up shares of Cisco Systems ( CSCO ) (still hard to see where new business will come from to bring this former tech titan back), News Corp ( NWS ) (despite the recent troubles the company surprised with results, also raised its dividend but it is still too small to be taken seriously), and Advance Auto Parts ( AAP ) (automakers may want to get out of the manufacturing business and just sell parts!). In my opinion, all this talk is once again ignoring the true problem at hand: banks using too much leverage and begging for help when their bets go bad. Getting back to the dividend scene today, the markets have taken back part of yesterday's heavy losses.
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12015.0
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2011-05-19 00:00:00 UTC
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Advance Auto Parts Shares Plunge Following Q1 Earnings Miss (AAP)
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AAP
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https://www.nasdaq.com/articles/advance-auto-parts-shares-plunge-following-q1-earnings-miss-aap-2011-05-19
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nan
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nan
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Auto parts retailer Advance Auto Parts, Inc. ( AAP ) late Wednesday posted first quarter earnings that fell short of analyst expectations, sending its shares sharply lower in aftermarket trading.
The Roanoke, VA-based company reported first quarter net income of $109.6 million, or $1.35 per share, compared with $109.4 million, or $1.19 per share, in the year-ago period.
Revenue rose nearly 4% from last year to $1.90 billion.
On average, Wall Street analysts expected a larger profit of $1.37 per share on higher revenue of $1.92 billion.
Looking ahead, the company backed its previously-announced full-year earnings forecast of $4.60 to $4.80 per share, while analysts expect $4.69 per share for the year.
Advance Auto Parts shares fell $5.66, or -8%, in premarket trading Thursday.
The Bottom Line
Shares of Advance Auto Parts ( AAP ) have a .34% dividend yield, based on last night's closing stock price of $70.66. The stock has technical support in the $60-$65 price area. The shares are trading right near all-time highs and have little overhead resistance if the shares can firm back up.
Advance Auto Parts, Inc. ( AAP ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.
Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Created by Dividend.com
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Bottom Line Shares of Advance Auto Parts ( AAP ) have a .34% dividend yield, based on last night's closing stock price of $70.66. Auto parts retailer Advance Auto Parts, Inc. ( AAP ) late Wednesday posted first quarter earnings that fell short of analyst expectations, sending its shares sharply lower in aftermarket trading. Advance Auto Parts, Inc. ( AAP ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.
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Auto parts retailer Advance Auto Parts, Inc. ( AAP ) late Wednesday posted first quarter earnings that fell short of analyst expectations, sending its shares sharply lower in aftermarket trading. The Bottom Line Shares of Advance Auto Parts ( AAP ) have a .34% dividend yield, based on last night's closing stock price of $70.66. Advance Auto Parts, Inc. ( AAP ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.
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Auto parts retailer Advance Auto Parts, Inc. ( AAP ) late Wednesday posted first quarter earnings that fell short of analyst expectations, sending its shares sharply lower in aftermarket trading. The Bottom Line Shares of Advance Auto Parts ( AAP ) have a .34% dividend yield, based on last night's closing stock price of $70.66. Advance Auto Parts, Inc. ( AAP ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.
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The Bottom Line Shares of Advance Auto Parts ( AAP ) have a .34% dividend yield, based on last night's closing stock price of $70.66. Auto parts retailer Advance Auto Parts, Inc. ( AAP ) late Wednesday posted first quarter earnings that fell short of analyst expectations, sending its shares sharply lower in aftermarket trading. Advance Auto Parts, Inc. ( AAP ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.
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12016.0
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2011-05-19 00:00:00 UTC
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Market Wrap-Up for May 19 (INTC, KLAC, PETM, LTD, AAP, more)
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AAP
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https://www.nasdaq.com/articles/market-wrap-may-19-intc-klac-petm-ltd-aap-more-2011-05-19
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nan
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nan
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The market managed to close with gains after a bit of a back and forth session. We were able to overcome commodity prices falling and yet still close with gains. This would be a great pattern to see starting to work.
Goldman Sachs put out a negative call on several semiconductor names and some of the names closed in the red, including Intel ( INTC ), Applied Materials ( AMAT ), and KLA Tencor ( KLAC ). Retail sector earnings were a big focus in today's action. On the plus side, shares of PetSmart ( PETM ) gained on their results. However, investors rushed to the exits on companies like Advance Auto Parts ( AAP ), Buckle ( BKE ), Williams-Sonoma ( WSM ), Ross Stores ( ROST ) and Limited Brands ( LTD ). Many retailers have had a nice run recently, so a pullback is not all that surprising.
The call to raise oil price margins for traders is gaining more and more momentum each day. This concept is certainly something I would sign my name to. Everyone who has been reading my posts knows I am truly concerned by the artificially-created commodity price spikes we have seen in recent months. Let's get back to pricing commodities based on true supply and demand, not on the herd mentality of futures traders.
Business insiders have fixed their gaze on today's IPO of business social networking site LinkedIn ( LNKD ) today (stock closed up nearly 112% from IPO price offering), and with the stock's big opening day pop, the early valuation for the shares are estimated at nearly 40 times 2010 revenue.
I have a LinkedIn account and I know many colleagues who do as well, but honestly, we don't use it all that much. That's not to say the site couldn't be useful, especially if you are looking to collaborate with potential job contacts/prospects. At least the company has a subscription revenue model for part of its offerings as well as an advertising model.
The executive team and VCs behind LinkedIn are all well-respected, but I expect the recent start-up mania we've been observing will only accelerate. Some people will fail to realize that LinkedIn has been around for nearly a decade and just turned profitable recently. I can tell anyone out there that launching a successful startup is just as difficult as trying to become a successful full-time trader. You need the right mix of talent, dedication, and a little bit of luck on your side.
In today's tight job market, I would advocate beginning a start-up company as a side gig for someone coming out of school, but landing a job should probably still be the first goal. You can always go full-time into your startup once you prove its ability to generate real revenue. I've always been a big fan of landing a job in the area you intend to excel at, and where you see yourself giving an exceptional effort. Passion is great, but individuals can often become passionate about multiple things. This fact will only dilute your focus on where your skills are best put to use.
If I could tell someone one skill he or she should polish well and often, I'd say "people skills," without a doubt. If you can communicate well through your spoken words, writings, and actions, you will be able to excel in today's world. Only certain people have the charisma that compels other to gravitate towards them, so working on your people skills is a must for most. Keep these thoughts in mind as you evaluate your career options, whether you are just starting out or are ready to take a big step to venture out on your own and launch a business.
Investing in yourself and buying assets that produce income will put you on the road to wealth. Plan your course out well, arm yourself with the right tools, and most importantly TAKE ACTION!
Speaking of buying assets that produce income, we added a new name to our industry-leading Best Dividend Stocks List today, so be sure to check out this morning's article if you didn't read the e-mail alert we sent out today to Dividend.com Premium members.
Also be sure to check out our weekly "Top 50 Watchlist Names" post that is out today, also only for Dividend.com Premium members.
Thanks for reading, and I'll see you tomorrow! P.S. Please pass this e-mail on to someone you think can use some financial motivation as well as being kept in thefinancial newsloop that could affect them. Thanks again!
Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Created by Dividend.com
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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However, investors rushed to the exits on companies like Advance Auto Parts ( AAP ), Buckle ( BKE ), Williams-Sonoma ( WSM ), Ross Stores ( ROST ) and Limited Brands ( LTD ). Business insiders have fixed their gaze on today's IPO of business social networking site LinkedIn ( LNKD ) today (stock closed up nearly 112% from IPO price offering), and with the stock's big opening day pop, the early valuation for the shares are estimated at nearly 40 times 2010 revenue. Keep these thoughts in mind as you evaluate your career options, whether you are just starting out or are ready to take a big step to venture out on your own and launch a business.
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However, investors rushed to the exits on companies like Advance Auto Parts ( AAP ), Buckle ( BKE ), Williams-Sonoma ( WSM ), Ross Stores ( ROST ) and Limited Brands ( LTD ). Business insiders have fixed their gaze on today's IPO of business social networking site LinkedIn ( LNKD ) today (stock closed up nearly 112% from IPO price offering), and with the stock's big opening day pop, the early valuation for the shares are estimated at nearly 40 times 2010 revenue. Speaking of buying assets that produce income, we added a new name to our industry-leading Best Dividend Stocks List today, so be sure to check out this morning's article if you didn't read the e-mail alert we sent out today to Dividend.com Premium members.
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However, investors rushed to the exits on companies like Advance Auto Parts ( AAP ), Buckle ( BKE ), Williams-Sonoma ( WSM ), Ross Stores ( ROST ) and Limited Brands ( LTD ). Business insiders have fixed their gaze on today's IPO of business social networking site LinkedIn ( LNKD ) today (stock closed up nearly 112% from IPO price offering), and with the stock's big opening day pop, the early valuation for the shares are estimated at nearly 40 times 2010 revenue. In today's tight job market, I would advocate beginning a start-up company as a side gig for someone coming out of school, but landing a job should probably still be the first goal.
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However, investors rushed to the exits on companies like Advance Auto Parts ( AAP ), Buckle ( BKE ), Williams-Sonoma ( WSM ), Ross Stores ( ROST ) and Limited Brands ( LTD ). We were able to overcome commodity prices falling and yet still close with gains. Retail sector earnings were a big focus in today's action.
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12017.0
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2011-05-18 00:00:00 UTC
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Opening View: Futures Flat Ahead of FOMC Minutes; DELL, DE, SPLS Step Up to the Earnings Podium
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AAP
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https://www.nasdaq.com/articles/opening-view-futures-flat-ahead-fomc-minutes-dell-de-spls-step-earnings-podium-2011-05-18
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nan
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nan
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A dismal forecast from Hewlett-Packard (HPQ) and disappointing economic data sent U.S. equities reeling on Tuesday, with the Dow Jones Industrial Average (DJIA ) ending south of 12,500 for the first time since April 25. In pre-market action today, stocks are having a harder time picking a direction, with investors absorbing a mixed bag of earnings reports from Dell Inc. ( DELL ), Deere & Co. ( DE ), and Staples (SPLS), among others. What's more, many traders will likely remain on the sidelines until this afternoon, when the Federal Open Market Committee (FOMC) will release its latest meeting minutes. Against this backdrop, the Dow is trading about 4.5 points below fair value, while the broader S&P 500 Index (SPX ) is sticking closer to breakeven, up about half a point.
On the earnings front, Dell Inc. (DELL - 15.90) pulled down a first-quarter profit of $945 million, or 49 cents per share, nearly tripling its year-ago earnings of $341 million, or 17 cents per share. Excluding items, DELL earned 55 cents per share, while revenue improved 1% to $15.02 billion. The results were mixed, with Wall Street looking for a profit of just 44 cents per share on higher revenue of $15.4 billion. For the full fiscal year ahead, DELL now expects operating income to grow 12% to 18%, substantially higher than its earlier growth forecast of 6% to 12%. At last check, DELL is set to open about 5.5% higher.
Meanwhile, Deere & Co. (DE - 86.96) reported a fiscal second-quarter profit of $904.3 million, or $2.12 per share, up 65% from the year-ago quarter. Sales soared 25% to $8.12 billion. Analysts, on average, were expecting a quarterly profit of $2.06 per share on revenue of $8.14 billion. For the current quarter, DE forecast year-over-year sales growth of 20%, and said it now expects equipment sales to rise 21% to 23% during the fiscal year, up from its previous guidance for an 18% to 20% improvement. Furthermore, the farming equipment manufacturer lifted its fiscal-year earnings estimates by $150 million to $2.65 billion. In pre-market trading, DE is hovering just a hair's breadth south of breakeven
Elsewhere, Staples Inc. (SPLS - 19.65) said first-quarter profit rose to $198.2 million, or 28 cents per share, from $188.8 million, or 26 cents per share, a year earlier. Meanwhile, revenue edged 2% higher to $6.17 billion. The results fell short of the Street's expectations for a quarterly profit of 32 cents per share on sales of $6.2 billion. What's more, the office supplier cut its 2011 earnings guidance to a range of $1.35 to $1.45 per share, from its previous forecast for earnings of $1.50 to $1.60 per share. Analysts, on average, projected full-year earnings of $1.53 per share. Ahead of the bell, SPLS is poised to surrender about 11% out of the gate.
Finally, Target Corp. (TGT - 50.78) said it earned $689 million, or 99 cents per share, in the first quarter -- up from $671 million, or 90 cents per share, in the year-ago quarter, and above analysts' expectations for per-share earnings of 94 cents. Sales rose 2.8% to $15.58 billion, while total revenue -- which includes credit card sales -- advanced 2.2% to $15.94 billion. Analysts, on average, were anticipating sales of $16 billion. At last check, TGT has tacked on 1%.
Earnings Preview
Today's earnings docket will feature reports from Abercrombie & Fitch ( ANF ), Advance Auto Parts ( AAP ), Hot Topic (HOTT), NetEase.com (NTES), and Pan American Silver (PAAS), just to name a few. Keep your browser at SchaeffersResearch.com for more news as it breaks.
Economic Calendar
The economic agenda features the regularly scheduled update on domestic petroleum supplies, as well as the minutes from the latest meeting of the Federal Open Market Committee (FOMC). Finally, the economic calendar wraps up early on Thursday, with a flurry of data on the docket. Traders will hear the weekly report on jobless claims, the Philly Fed index for May, April's existing home sales, and the Conference Board's index of leading economic indicators.
Market Statistics
Equity option activity on the Chicago Board Options Exchange ( CBOE ) saw 1,122,550 call contracts traded on Tuesday, compared to 848,732 put contracts. The resultant single-session put/call ratio jumped to 0.76, while the 21-day moving average remained at 0.63.
The spring 2011 issue of SENTIMENT magazine is now available here.
Overseas Trading
Markets in Asia settled north of breakeven today, as bargain-hunters scooped up stocks in beaten-down sectors. In Japan, banks and utilities led the charge higher, while chip issue Renesas Electronics surged on news that it will restart production at its quake-damaged Naka facility. Automakers Hyundai Motor and Kia Motors were a pocket of strength in Korea, while a solid day for commodity stocks helped propel Shanghai-listed stocks to a positive finish. Optimism over the prospects for gambling revenue growth in Macau provided a boost in Hong Kong, with shares of SJM Holdings and Wynn Macau closing comfortably higher. By the close, South Korea's Kospi added 1.6%, Japan's Nikkei collected a 1% gain, China's Shanghai Composite rose 0.7%, and the Hong Kong Hang Seng tacked on 0.5%.
European shares are flirting with modest gains at midday, as financial leaders in the region move forward on a plan to aid cash-strapped Greece. Jean-Claude Juncker, the prime minister of Luxembourg and chair for the group of euro-zone finance ministers, said a "soft restructuring of Greek debt" may be possible, though he's "strictly opposed" to a major overhaul. Meanwhile, well-received quarterly results from Land Securities Group provided a boost for real estate stocks, while rebounding commodity prices prompted gains in mining issues. At last check, London's FTSE 100 and the French CAC 40 have each added 0.8%, while the German DAX is 0.5% higher.
Currencies and Commodities
The greenback has given back some of Tuesday's gains, with the U.S. dollar index down almost 0.1% at last check. Elsewhere, black gold has recovered a portion of yesterday's losses, with June-dated crude futures up $1.23, or 1.3%, to trade near $98.66 per barrel. Meanwhile, gold and silver futures are also bouncing back from multi-week lows, with the front-month contracts up about 0.9% and 3.2%, respectively.
Unusual Put and Call Activity:
For an explanation of how to use this information, check out our Education Center topics on Option Volume and Open Interest Configurations .
Every morning, our research staff analyzes the prior day and the overnight markets, and monitors the morning wires to give you an accurate preview of the day to come. If you enjoyed today's edition of Opening View, sign up here for free daily delivery, straight to your inbox, before the opening bell.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Earnings Preview Today's earnings docket will feature reports from Abercrombie & Fitch ( ANF ), Advance Auto Parts ( AAP ), Hot Topic (HOTT), NetEase.com (NTES), and Pan American Silver (PAAS), just to name a few. A dismal forecast from Hewlett-Packard (HPQ) and disappointing economic data sent U.S. equities reeling on Tuesday, with the Dow Jones Industrial Average (DJIA ) ending south of 12,500 for the first time since April 25. By the close, South Korea's Kospi added 1.6%, Japan's Nikkei collected a 1% gain, China's Shanghai Composite rose 0.7%, and the Hong Kong Hang Seng tacked on 0.5%.
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Earnings Preview Today's earnings docket will feature reports from Abercrombie & Fitch ( ANF ), Advance Auto Parts ( AAP ), Hot Topic (HOTT), NetEase.com (NTES), and Pan American Silver (PAAS), just to name a few. In pre-market trading, DE is hovering just a hair's breadth south of breakeven Elsewhere, Staples Inc. (SPLS - 19.65) said first-quarter profit rose to $198.2 million, or 28 cents per share, from $188.8 million, or 26 cents per share, a year earlier. Finally, Target Corp. (TGT - 50.78) said it earned $689 million, or 99 cents per share, in the first quarter -- up from $671 million, or 90 cents per share, in the year-ago quarter, and above analysts' expectations for per-share earnings of 94 cents.
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Earnings Preview Today's earnings docket will feature reports from Abercrombie & Fitch ( ANF ), Advance Auto Parts ( AAP ), Hot Topic (HOTT), NetEase.com (NTES), and Pan American Silver (PAAS), just to name a few. On the earnings front, Dell Inc. (DELL - 15.90) pulled down a first-quarter profit of $945 million, or 49 cents per share, nearly tripling its year-ago earnings of $341 million, or 17 cents per share. In pre-market trading, DE is hovering just a hair's breadth south of breakeven Elsewhere, Staples Inc. (SPLS - 19.65) said first-quarter profit rose to $198.2 million, or 28 cents per share, from $188.8 million, or 26 cents per share, a year earlier.
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Earnings Preview Today's earnings docket will feature reports from Abercrombie & Fitch ( ANF ), Advance Auto Parts ( AAP ), Hot Topic (HOTT), NetEase.com (NTES), and Pan American Silver (PAAS), just to name a few. At last check, DELL is set to open about 5.5% higher. Analysts, on average, were expecting a quarterly profit of $2.06 per share on revenue of $8.14 billion.
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12018.0
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2011-02-22 00:00:00 UTC
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What Buffett Says About Diversification Will Shock You
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AAP
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https://www.nasdaq.com/articles/what-buffett-says-about-diversification-will-shock-you-2011-02-22
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nan
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nan
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Working for StreetAuthority, I do a lot of different things.
In the course of a day, I may be writing an article... discussing potential picks with our staff... researching the next investing hotspot... even going over Stock of the Month article ideas with my colleagues.
And with so much going on, I actually find myself a little frazzled as the day goes on.
To combat this, I try to get to work about an hour earlier than the rest of the staff. Sometimes I simply work from home before I get into the office.
I don't do this to show off, but found I can do more in that one hour (when I can simply focus on one task without distraction) than I can in two hours when the rest of the staff has the office buzzing.
Turning off the background noise allows me to simplify things -- and get better results.
What does this have to do with investing? A ton.
Whydiversification is like drinking from a fire hose
Sometimes the investing waters are as clear as mud to retail investors. After all, there are literally thousands of potential plays out there.
You could try to play a rebound in the automakers. You could day-trade the banks. You could stick withindex funds and ride out any storm. You could even try to find companies that are simply undervalued and will rebound once the market notices.
But the problem is that there are too many options -- it's like trying to drink from a fire hose. Too many choices make it hard to nail down the one investment that will make your portfolio a winner.
Instead, like I do every morning by getting an early start, I think successful investors need to turn off the distractions and focus their attention to a small group of the best ideas... drink from a glass, instead of a fire hose.
By shrinking your portfolio, you'll find:
It's easier to stay on top of your investments -- If you have a portfolio of 50 stocks, how well can you pay attention to each one?
Even if you read up on each one just an hour each week, you'd have a full-time job (plus 10 hours of overtime) just to give each its due.
And with this market, it's more important than ever to watch your holdings. Instead, a portfolio of just 10-12 of your best picks would need significantly less time to track each week and you'll likely sleep better at night knowing you've done your homework.
Better portfolio performance -- Which do you think would average higher on a test: an entire class full of students, or a handful of the smartest students as picked by the teacher?
The answer is obvious... and it's the same with your portfolio.
Look through your holdings. If you have upward of 30, 40, even 50 holdings or more, I bet you'll find some that you think are simply "OK." Heck, it wouldn't surprise me if you have some you don't even like but simply haven't sold yet.
Instead, what if you culled down your portfolio to just your favorite picks? Wouldn't your portfolio be in much better shape going forward? You'd have the cream of the crop, instead of the entire field. Remember, it's hard to outperform the market if your portfolio is the market.
That you're not alone in trimming down your portfolio -- Warren Buffett's Berkshire Hathaway (NYSE: BRK-B) holds just 25 publicly traded U.S. stocks. That's a lot for an individual investor, but for a company with billions at its disposal, it's surprisingly few. On top of that, Berkshire's top five holdings make up 73% of its portfolio.
Buffett is simply a proponent for positioning a portfolio to take advantage of the best picks. He's even gone as far as saying:
"If it's your game, diversification doesn't make sense. It's crazy to put money into your 20th choice rather than your 1st choice. It's the 'LeBron James' analogy. If you have basketball phenom LeBron James on your team, don't take him out of the game just to make room for someone else."
If the world's greatest investor is following this approach, shouldn't other investors?
Individual stocks can still do well, no matter the market
Buffett's school of thought is one of the main tenets of my Stock of the Month newsletter, and its $100,000 real-money portfolio. Think about it -- oureconomy continues to run hot and cold. Investors are still skittish about unemployment, interest rates, housing, the Middle East... the list goes on.
Action to take --> No matter what's happening, there are always some stocks doing well. And if you focus on a select group of your best picks, you canprofit .
Ross Stores (Nasdaq: ROST) is up 176% since the market hit an all-time peak in 2007... Dollar Tree (Nasdaq: DLTR) is up 91%. Auto-parts stores (drivers are keeping cars longer and doing more of their own maintenance and repairs) are the same story. Advance Auto Parts ( AAP ) is up 83%... AutoZone ( AZO ) is up 108%.
I understand that years of conditioning has led millions of investors to think diversification is crucial to success. And it is, if you want to simply match the market. But that's not what I strive to do. I doubt you do either.
Note: Remember that I'm not just paying lip service to this idea of investing in your best ideas. I have $100,000 in actual cash behind my Stock of the Month portfolio. So far the performance has been great -- 14 of my 15 closed trades gained double-digits. You can get all the details here .
-- Amy Calistri
Disclosure: Neither Amy Calistri nor StreetAuthority, LLC hold positions in any securities mentioned in this article.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
© Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Advance Auto Parts ( AAP ) is up 83%... AutoZone ( AZO ) is up 108%. Instead, like I do every morning by getting an early start, I think successful investors need to turn off the distractions and focus their attention to a small group of the best ideas... drink from a glass, instead of a fire hose. Instead, a portfolio of just 10-12 of your best picks would need significantly less time to track each week and you'll likely sleep better at night knowing you've done your homework.
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Advance Auto Parts ( AAP ) is up 83%... AutoZone ( AZO ) is up 108%. Instead, like I do every morning by getting an early start, I think successful investors need to turn off the distractions and focus their attention to a small group of the best ideas... drink from a glass, instead of a fire hose. -- Amy Calistri Disclosure: Neither Amy Calistri nor StreetAuthority, LLC hold positions in any securities mentioned in this article.
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Advance Auto Parts ( AAP ) is up 83%... AutoZone ( AZO ) is up 108%. By shrinking your portfolio, you'll find: It's easier to stay on top of your investments -- If you have a portfolio of 50 stocks, how well can you pay attention to each one? If you have upward of 30, 40, even 50 holdings or more, I bet you'll find some that you think are simply "OK." Heck, it wouldn't surprise me if you have some you don't even like but simply haven't sold yet.
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Advance Auto Parts ( AAP ) is up 83%... AutoZone ( AZO ) is up 108%. Instead, like I do every morning by getting an early start, I think successful investors need to turn off the distractions and focus their attention to a small group of the best ideas... drink from a glass, instead of a fire hose. If you have upward of 30, 40, even 50 holdings or more, I bet you'll find some that you think are simply "OK." Heck, it wouldn't surprise me if you have some you don't even like but simply haven't sold yet.
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12019.0
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2010-12-14 00:00:00 UTC
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The Rukeyser Interview
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AAP
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https://www.nasdaq.com/articles/rukeyser-interview-2010-12-14
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nan
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nan
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A pure quantitative approach to stock picking may lack the swagger of an actively managed fund with a superstar manager at the helm. But results trump all. Neil Hennessy, Portfolio Manager of the Hennessy Focus 30 Fund (HFTFX), the midcap offering of Hennessy Funds, is a true believer in the quantitative approach. His disciplined investment strategy has enabled the fund to outperform the S&P 500 by 6 percent over the past three years. The shorter-term performance is even better: The fund has outperformed its average peer by 8.7 percent over the past 12 months, placing it in the top 3 percent of its category. Hennessy spoke to us about the benefits of a quantitative approach and shared his outlook for 2011.--John Bishop
By the Numbers
Please describe your stock picking strategy for the Focus 30 fund.
We look for companies that have market capitalizations of $1 to $10 billion because we want true midcap stocks. We also want to make sure there are no American depositary receipts (ADR) in there because we want pure US companies. The next step is to make sure the price-to-sales ratio is 1.5 or less, so we're not going to pay more than a $1.50 for $1 in sales. After that we look for companies with earnings that are higher than they were the previous year. The stocks that are still standing after those screens we then put into our relative strength screens and look for positive price appreciation for the past three and six months. We then rank the remaining companies by the best relative strength over a 12-month period and buy the top 30 companies in equal dollar amounts. We hold those positions for approximately a year and then rebalance the portfolio.
The strategy is successful because there's no emotion involved in the process. It's highly disciplined and we rebalance once a year--usually in late summer or early fall. Most people don't rebalance their portfolios. The Focus 30 is up 25.5 percent this year, and the real question is why is it doing so well? When we rebalanced the fund in 2009 about 33 percent of the portfolio was allocated to consumer discretionary stocks and 10 percent was in consumer staples. Now the fund has about a 48 percent weighting to the consumer discretionary space.
Some wonder why we would invest in consumer discretionary companies in a slow economy. Consider low-end retailers. If you have no money, then Dollar Tree ( DLTR ) is where you want to shop because everything costs a dollar. That makes sense in a slow economy. If you have a little more money you can go to Family Dollar Stores ( FDO ), where everything's about $10.
The consumer is far more frugal in this economy, and people have gone back to doing things for themselves. Companies such as Advance Auto Parts ( AAP ) will fare well because people will do their own minor car repairs. I like Tractor Supply ( TSCO ), because if you can't afford a gardener anymore you're going to buy a lawnmower. You cut your lawn and after you're done there's a sense of accomplishment. It's the same thing with Jo-Ann Stores (NYSE: JAS). Instead of buying a baby blanket you use a sewing machine to make that blanket yourself and you have a sense of accomplishment. You saved money and you feel good.
Has the economy turned around already?
The bottom line with our economy is that it's a case of perception versus reality. The perception is that all companies are losing money. The reality is that they're making a ton of money. The perception is that we have high unemployment. The reality is that 90 percent of people are employed. The perception is the stock market is losing money. The reality is that the market was up 22 percent last year and has gained 10 percent so far this year. The perception among consumers is that our leaders in Washington don't know how to fix the economy. The reality is, well, they're right.
It may not be politically correct to say this, but I've yet to see a poor person hire someone. It's the rich who employ the middle class. We have to let go of this notion that some people make too much money and therefore should be taxed more.
A year ago I was talking about a crisis of confidence. That's changed into a crisis of clarity from Washington. If a businessperson doesn't know what the rules or regulations are going to be, then how can they hire? It's the same if you don't know what health care or taxes are going to cost.
Will the results of the midterm elections help end this crisis of clarity?
No. President Obama recently put a freeze on civilian federal employees' salaries. He said the move would save $2 billion next year and $28 billion over the next five years. I'm trying to figure out that math. If you're going to cut $2 billion a year that's fine, but you can't just throw numbers out there. You can't just say we enacted health care and that will save $1 trillion.
I don't know what's going to come out of Washington. The Republicans gained control of the House of Representatives because the people wanted change. The real question is whether the Republicans will misconstrue what the voters were telling them. They want the deficit lowered and the debt paid back. They want the government to get out of their lives.
That said, companies are making a ton of money. The companies on the S&P 500 are sitting on $3.2 trillion in cash. The 30 companies that make up the Dow Jones are sitting on $500 billion in cash. They would love to deploy those funds, but they can't do that until they know the ground rules.
Washington has to understand that there are four things a company can really do with their money. It can pay dividends, but that's not going to create any jobs. It can buy back stock. It can put it into their own internal infrastructure, which will create jobs in the short term. But in reality they're making those investments so they don't have to hire back more people in the long term. Or if you're in the corner office and you want to grow your business, you acquire other companies. The first thing you do after acquiring a company is reduce redundancies by letting go of employees.
Everything that Washington is doing forces the businessperson to hoard cash, pay dividends, buyback stock, put it into infrastructure or make acquisitions--none of which are good for employment.
Nonetheless, this market is in very good shape, and the economy is in good shape. People just don't believe it. The stock market won't go back to the levels we saw in the mid-90s, but it will grow 8 to 12 percent per year. There's a lot of value in the stock market now, and other companies know this, so you'll see a wave of acquisitions.
Does your quantitative strategy lead to a risky sector concentration?
That's a Morningstar critique. Morningstar thinks that if you use a quantitative strategy, there's no way to know if it will work in the future. But even if you have an actively managed fund how do you know if a manger is going to guess right again? Every active manager employs some type of quantitative strategy, but then they inflect their own personal views. That's where emotion comes into play.
We have a lot of consumer discretionary holdings. But there's a big difference between Tractor Supply and Jo-Ann Stores. Although we're in consumer discretionary as a big basket we're very well diversified within that basket. And if you've invested in low-end retailers and the economy does well, those retailers will also fare well because they can raise their margins.
What other sectors has your quantitative approach led you to?
Industrials. Last year we had three industrials stocks; now we're up to five stocks most of which are related to the auto parts business. Applied Industrial Technology ( AIT ) is one example. Two stocks we added to the portfolio were US Airways (NYSE: LLC) and United Continental (UAL). The airlines cut back their flights and now their flights are completely booked. It makes sense invest in these companies as the economy starts to grow.
Why has your family of funds generally steered clear of emerging markets like China?
If you want to make money safely in the emerging markets, you want to be in Japan. The Japanese economy prospered in the 60s through the early 80s because they produced high-quality products that Americans wanted. But the US market has been saturated for years, so they weren't able to sell their TVs and cars here like before. But China's their neighbor. Of the 1.3 billion people in China, 300 to 350 million are middle class. They're starting to spend money on life-enhancement products, even those as simple as feminine hygiene products or a baby bottle with a nipple. The Chinese trust Japanese products.
Think about pollution control. If China wants to clean up its environment, they're going to need Japan's help; Japan has a track record of success. In the 60s Japan had the same problems that Beijing and Shanghai have now. Their waterways were polluted and the smog was unbelievable. But they cleaned it up.
People are missing an opportunity in Japan. You have $2.6 billion in US-based Japan-only mutual funds. You have $26.5 billion in US-based Asia ex-Japan mutual funds. You buy what people don't want, and right now no one wants Japanese stocks. It's a stable market, a highly regulated market and a very clean market. If you want to invest in Asia, it's the best way to go.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Article Republished with permission from www.KCIinvesting.com and www.rukeyser.com
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Companies such as Advance Auto Parts ( AAP ) will fare well because people will do their own minor car repairs. Hennessy spoke to us about the benefits of a quantitative approach and shared his outlook for 2011.--John Bishop By the Numbers Please describe your stock picking strategy for the Focus 30 fund. I like Tractor Supply ( TSCO ), because if you can't afford a gardener anymore you're going to buy a lawnmower.
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Companies such as Advance Auto Parts ( AAP ) will fare well because people will do their own minor car repairs. A pure quantitative approach to stock picking may lack the swagger of an actively managed fund with a superstar manager at the helm. Neil Hennessy, Portfolio Manager of the Hennessy Focus 30 Fund (HFTFX), the midcap offering of Hennessy Funds, is a true believer in the quantitative approach.
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Companies such as Advance Auto Parts ( AAP ) will fare well because people will do their own minor car repairs. When we rebalanced the fund in 2009 about 33 percent of the portfolio was allocated to consumer discretionary stocks and 10 percent was in consumer staples. The reality is that the market was up 22 percent last year and has gained 10 percent so far this year.
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Companies such as Advance Auto Parts ( AAP ) will fare well because people will do their own minor car repairs. The reality is that the market was up 22 percent last year and has gained 10 percent so far this year. He said the move would save $2 billion next year and $28 billion over the next five years.
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12020.0
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2010-10-10 00:00:00 UTC
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What Buffett Says About Diversification Will Shock You
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AAP
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https://www.nasdaq.com/articles/what-buffett-says-about-diversification-will-shock-you-2010-10-10
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nan
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nan
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Working for StreetAuthority, I do a lot of different things.
In the course of a day, I may be writing an article... editing a newsletter... discussing potential picks with our staff... researching the next investing hotspot... even going over article ideas with Bob Bogda , our managing editor.
And with so much going on, I actually find myself a little frazzled as the day goes on.
To combat this, I've started getting to work about an hour earlier than the rest of the staff. I don't do this to show off, but found I can do more in that one hour (when I can simply focus on one task without distraction) than I could in two hours when the rest of the staff has the office buzzing.
Turning off the background noise allowed me to simplify things -- and get better results.
What does this have to do with investing? A ton.
Whydiversification is like drinking from a fire hose
Sometimes the investing waters are as clear as mud to retail investors. After all, there are literally thousands of potential plays out there.
You could try to play a rebound in the automakers. You could day-trade the banks. You could stick with index funds and ride out any storm. You could even try to find companies that are simply undervalued and will rebound once the market notices.
But the problem is that there are too many options -- it's like trying to drink from a fire hose. Too many choices make it hard to nail down the one investment that will make your portfolio a winner.
Instead, like I do every morning by getting an early start, I think successful investors need to turn off the distractions and focus their attention on a small group of the best ideas... drink from a glass, instead of a fire hose.
By shrinking your portfolio, you'll find:
It's easier to stay on top of your investments -- If you have a portfolio of 50 stocks, how well can you pay attention to each one?
Even if you read up on each one just an hour each week, you'd have a full-time job (plus 10 hours of overtime) just to give each its due.
And with this market, it's more important than ever to watch your holdings. Instead, a portfolio of just 10-12 of your best picks would need significantly less time to track each week and you'll likely sleep better at night knowing you've done your homework.
(bullet) Better portfolio performance -- Which do you think would average higher on a test: an entire class full of students, or a handful of the smartest students as picked by the teacher?
The answer is obvious... and it's the same with your portfolio.
Look through your holdings. If you have upwards of 30, 40, even 50 holdings or more, I bet you'll find some that you think are simply "OK." It wouldn't even surprise me if you have some you don't even like but simply haven't sold yet.
Instead, what if you culled down your portfolio to just your favorite picks? Wouldn't your portfolio be in much better shape going forward? You'd have the cream of the crop, instead of the entire field. Remember, it's hard to outperform the market if your portfolio is the market.
That you're not alone in trimming down your portfolio -- Warren Buffett's Berkshire Hathaway (NYSE: BRK-B) holds just 37 positions. That's a lot for an individual investor, but for a company with billions of dollars at its disposal, it's surprisingly few. On top of that, in the past 25 years, Berkshire's top five holdings have made up an average of 73% of its portfolio.
Buffett is simply a proponent for positioning a portfolio to take advantage of the best picks. He's even gone as far as saying:
"If it's your game, diversification doesn't make sense. It's crazy to put money into your 20th choice rather than your 1st choice. It's the 'LeBron James' analogy. If you have LeBron James on your team, don't take him out of the game just to make room for someone else."
If the world's greatest investor is following this approach, shouldn't other investors?
That's what I'm doing with $100,000
Warren Buffett's school of thought is one of the main tenets of my Stock of the Month newsletter, and its $100,000 real-money portfolio. Think about it -- our economy and the markets still continue to run hot and cold. Investors are still skittish about unemployment, interest rates, housing... the list goes on.
But no matter what's happening, there are always some stocks doing well. And if you focus on a select group of your best picks, you can profit.
Companies that cater to tougher economic times have done well. Ross Stores (Nasdaq: ROST) is up +121% since 2008... Dollar Tree (Nasdaq: DLTR) is up +182%. Auto-parts stores (critical, as drivers are keeping cars longer) are the same story: Advance Auto Parts ( AAP ) is up +57%... AutoZone ( AZO ) is up +90%.
One of the best performers in my newsletter, Olin Corp. ( OLN ) gained +58% in about a year before I closed the position. Sally Beauty Supply ( SBH ) had the same return. Liquor distributor Diageo ( DEO ) gained +34%. And these returns have been during what can at best be described as a "rocky" environment.
[I'm very open with my closed Stock of the Month positions. You can view them all here .]
Action to Take --> I understand that years of conditioning has led millions of investors to think diversification is crucial to success. And it is, if you want to simply match the market. But that's not what I, nor Warren Buffett, want to do. I doubt you do either.
-- Amy Calistri
A graduate of both Columbia University and The University of Texas, Amy's experience includes managing $5 million in trust funds, economic consulting and financial risk management. Read more...
Disclosure: Neither Amy Calistri nor StreetAuthority, LLC hold positions in any securities mentioned in this article.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
© Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Auto-parts stores (critical, as drivers are keeping cars longer) are the same story: Advance Auto Parts ( AAP ) is up +57%... AutoZone ( AZO ) is up +90%. Instead, like I do every morning by getting an early start, I think successful investors need to turn off the distractions and focus their attention on a small group of the best ideas... drink from a glass, instead of a fire hose. Read more... Disclosure: Neither Amy Calistri nor StreetAuthority, LLC hold positions in any securities mentioned in this article.
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Auto-parts stores (critical, as drivers are keeping cars longer) are the same story: Advance Auto Parts ( AAP ) is up +57%... AutoZone ( AZO ) is up +90%. Instead, like I do every morning by getting an early start, I think successful investors need to turn off the distractions and focus their attention on a small group of the best ideas... drink from a glass, instead of a fire hose. Read more... Disclosure: Neither Amy Calistri nor StreetAuthority, LLC hold positions in any securities mentioned in this article.
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Auto-parts stores (critical, as drivers are keeping cars longer) are the same story: Advance Auto Parts ( AAP ) is up +57%... AutoZone ( AZO ) is up +90%. By shrinking your portfolio, you'll find: It's easier to stay on top of your investments -- If you have a portfolio of 50 stocks, how well can you pay attention to each one? If you have upwards of 30, 40, even 50 holdings or more, I bet you'll find some that you think are simply "OK." It wouldn't even surprise me if you have some you don't even like but simply haven't sold yet.
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Auto-parts stores (critical, as drivers are keeping cars longer) are the same story: Advance Auto Parts ( AAP ) is up +57%... AutoZone ( AZO ) is up +90%. You could even try to find companies that are simply undervalued and will rebound once the market notices. Buffett is simply a proponent for positioning a portfolio to take advantage of the best picks.
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12021.0
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2010-05-20 00:00:00 UTC
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Thursday Winners: Advance Auto, CitiTrends, Perry Ellis
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AAP
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https://www.nasdaq.com/articles/thursday-winners-advance-auto-cititrends-perry-ellis-2010-05-20
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nan
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nan
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Among the biggest winners in Thursday's early trading are AdvanceAuto ( AAP ) , CitiTrends (Nasdaq: CTRN) and Perry Ellis (Nasdaq: PERY) .
Market Grinds Lower
Except for a modest gain on Monday, the market has been under pressure since last Thursday. The S&P 500 has shed nearly -8% since during the past week. A correction can be quite healthy in the context of a long-term bull market , but if the selling continues for a few more sessions, it could really feed on itself and set the stage for an extended downward move. For now, many are still speaking of this as a buying opportunity.
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Growth Opportunities Abound for this Retailer
A number of specific stocks have really taken a bath this month, with some down -20% or even -30%. Any companies reporting good news right now can get lost in the shuffle.
CitiTrends (Nasdaq: CTRN) is a fine example. The urban-focused retailer has been a solid growth story in recent years, and should have pushed through to a 52-week high when it reported stellar quarterly results on Wednesday morning. Per share profits rose sharply, nearly +30% ahead of analysts' forecasts, but shares fell nearly -10% on Wednesday anyway in the face of broader market selling.
Investors are correcting that mistake, pushing shares up more than +6% on Thursday, even as the broader market continues to slump. And with good reason. For starters, earnings estimates are likely to rise by a good margin , with 2011 EPS forecasts approaching $2.50. Shares trade for just 13 times that view, even though profits are growing at three times that rate. In addition, CitiTrends has ample long-term growth opportunities. The retailer has yet to enter many key urban markets, most notably in the Northeast. Combined with rising traffic at existing stores, top-line results can continue to grow in excess of +15% for several years to come, and bottom-line results at an even faster clip.
Action to Take --> As the market stabilizes, shares should start to move beyond the 52-week high of $37, and perhaps past the $40 mark. This implies gains of at least +25% in the near-term, and perhaps much more in the long-term as this retailer steadily expands its footprint.
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Retail Strength amid Stock Market Weakness
We're seeing positive quarterly results today from Perry Ellis (Nasdaq: PERY) , Williams-Sonoma ( WSM ) , Children's Place (Nasdaq: PLCE) , The Buckle ( BKE ) and Casual Male (Nasdaq: CMRG) . Yet a clear divergence in the sector has emerged: Sales trends have been fairly positive, but the Retail HOLDRS ETF( RTH ) , an exchange-traded fund ( ETF ) we mentioned yesterday, is off another -2% on Thursday and is now down more than -10% since late April.
There may be a correlation. As the market weakens, it could begin to impact consumer spending. After all, the remarkable rebound in the value of many retirement plans surely led many consumers to re-open their pocket books.
Shares of Perry Ellis create a particular conundrum. The retailer posted very impressive quarterly results Thursday morning and boosted guidance, which is pushing shares up in an otherwise down market. Yet the company's key demographic is precisely the type of customer that is likely seeing some of his portfolio diminish in value in this market pullback. Then again, if the market weakness proves to be ephemeral, the positive sales and profit momentum is likely quite sustainable. Shares are certainly inexpensive at about 14 to 15 times expected earnings for the current year.
Action to Take --> There may be other retailers more leveraged to an eventual downturn in unemployment, but shares of Perry Ellis possess nice blend of growth and value. Today's positive action in the stock is likely to continue, unless the market slumps even further.
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Auto Parts Stores have been Winners, but Will it Last?
As Americans hold on to their cars longer, demand for auto repairs and parts continues to climb. The major auto parts chains have posted above-average growth for several years now, and the trend continues. Advance Auto Parts ( AAP ) rang up impressive quarterly results Wednesday after the market close, and boosted full-year guidance. That was good for a +7% gain in shares in Thursday trading.
But the positive industry trends may be close to ending. Auto sales are beginning to rebound, and if unemployment drops, many aging cars may once again be scrapped rather than nursed beyond their normal usable life. The entire auto parts sector is near saturation thanks to never-ending expansion plans from the likes of Advance Auto, Auto Zone ( AZO ) , O'Reilly Automotive (Nasdaq: ORLY) and Pep Boys ( PBY ) . The group generally trades for 18 to 20 times trailing earnings, with shares of Auto Zone a bit cheaper, and shares of Pep Boys being unjustifiably expensive on a trailing earnings basis.
Action to Take --> Despite the impressive results from Advanced Auto, the entire sector does not represent robust growth opportunities. Better opportunities lie elsewhere.
-- David Sterman
Contributor
StreetAuthority
Disclosure: David Sterman does not own shares of any security mentioned in this article.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
© Copyright 2001-2010 StreetAuthority, LLC. All Rights Reserved.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Advance Auto Parts ( AAP ) rang up impressive quarterly results Wednesday after the market close, and boosted full-year guidance. Among the biggest winners in Thursday's early trading are AdvanceAuto ( AAP ) , CitiTrends (Nasdaq: CTRN) and Perry Ellis (Nasdaq: PERY) . A correction can be quite healthy in the context of a long-term bull market , but if the selling continues for a few more sessions, it could really feed on itself and set the stage for an extended downward move.
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Advance Auto Parts ( AAP ) rang up impressive quarterly results Wednesday after the market close, and boosted full-year guidance. Among the biggest winners in Thursday's early trading are AdvanceAuto ( AAP ) , CitiTrends (Nasdaq: CTRN) and Perry Ellis (Nasdaq: PERY) . ------------------------------------ Retail Strength amid Stock Market Weakness We're seeing positive quarterly results today from Perry Ellis (Nasdaq: PERY) , Williams-Sonoma ( WSM ) , Children's Place (Nasdaq: PLCE) , The Buckle ( BKE ) and Casual Male (Nasdaq: CMRG) .
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Among the biggest winners in Thursday's early trading are AdvanceAuto ( AAP ) , CitiTrends (Nasdaq: CTRN) and Perry Ellis (Nasdaq: PERY) . Advance Auto Parts ( AAP ) rang up impressive quarterly results Wednesday after the market close, and boosted full-year guidance. ------------------------------------ Retail Strength amid Stock Market Weakness We're seeing positive quarterly results today from Perry Ellis (Nasdaq: PERY) , Williams-Sonoma ( WSM ) , Children's Place (Nasdaq: PLCE) , The Buckle ( BKE ) and Casual Male (Nasdaq: CMRG) .
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Among the biggest winners in Thursday's early trading are AdvanceAuto ( AAP ) , CitiTrends (Nasdaq: CTRN) and Perry Ellis (Nasdaq: PERY) . Advance Auto Parts ( AAP ) rang up impressive quarterly results Wednesday after the market close, and boosted full-year guidance. Shares trade for just 13 times that view, even though profits are growing at three times that rate.
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12022.0
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2010-05-20 00:00:00 UTC
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Advance Auto Parts Q1 Profit Grows 17% (AAP)
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AAP
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https://www.nasdaq.com/articles/advance-auto-parts-q1-profit-grows-17-aap-2010-05-20
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nan
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nan
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Auto parts retailer Advance Auto Parts, Inc. ( AAP ) late Wednesday said its first quarter profit rose 17% from last year, helped by higher sales at both existing stores and newly-added locations.
The Roanoke, VA-based company posted first quarter net income of $109.4 million, or $1.19 per share, compared with $93.6 million, or 98 cents per share, in the year-ago period. Sales jumped 8.7% from last year, to $1.83 billion.
On average, Wall Street analysts expected a much smaller profit of $1.19 per share, on lower revenue of $1.71 billion.
Looking ahead, the company boosted its full-year forecast to a range of $3.34 to $3.54 per share, citing recent share buybacks. Analysts are expecting 2010 results of $3.31 per share.
Advance Auto Parts shares rose $1.16, or +2.5%, in premarket trading Thursday.
The Bottom Line
Shares of AAP have a dividend yield of .52%, based on last night's closing stock price of $46.09. The stock has technical support in the $42 price area. If the shares can firm up, we see overhead resistance around the all-time high levels of $47 a share. We would remain on the sidelines for now.
Advance Auto Parts, Inc. ( AAP ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Created by Dividend.com
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Bottom Line Shares of AAP have a dividend yield of .52%, based on last night's closing stock price of $46.09. Auto parts retailer Advance Auto Parts, Inc. ( AAP ) late Wednesday said its first quarter profit rose 17% from last year, helped by higher sales at both existing stores and newly-added locations. Advance Auto Parts, Inc. ( AAP ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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Auto parts retailer Advance Auto Parts, Inc. ( AAP ) late Wednesday said its first quarter profit rose 17% from last year, helped by higher sales at both existing stores and newly-added locations. The Bottom Line Shares of AAP have a dividend yield of .52%, based on last night's closing stock price of $46.09. Advance Auto Parts, Inc. ( AAP ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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Auto parts retailer Advance Auto Parts, Inc. ( AAP ) late Wednesday said its first quarter profit rose 17% from last year, helped by higher sales at both existing stores and newly-added locations. The Bottom Line Shares of AAP have a dividend yield of .52%, based on last night's closing stock price of $46.09. Advance Auto Parts, Inc. ( AAP ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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Auto parts retailer Advance Auto Parts, Inc. ( AAP ) late Wednesday said its first quarter profit rose 17% from last year, helped by higher sales at both existing stores and newly-added locations. The Bottom Line Shares of AAP have a dividend yield of .52%, based on last night's closing stock price of $46.09. Advance Auto Parts, Inc. ( AAP ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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12023.0
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2010-05-20 00:00:00 UTC
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Market Wrap-Up for May 20 (CNX, ANF, JPM, BEN, AAP, NEM, more)
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AAP
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https://www.nasdaq.com/articles/market-wrap-may-20-cnx-anf-jpm-ben-aap-nem-more-2010-05-20
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The market continued to sell off here and we continue to navigate through by making adjustments to our recommended list.
We removed a couple of names this moning as we continue to try and position our portfolio as best we can going forward. Be sure to check out the link below if you did not read the e-mail alert we sent out earlier on the names being removed.
We're seeing a lot finger-pointing regarding the exact reason the market is selling off, but one doesn't have to look far to see the drop in the Euro is one key concern, as are the latest rumors about a potential Lehman Brothers-like situation perhaps ready to pop in a multi-national or European bank somewhere. The rise in jobless claims reported today certainly didn't help, but that is not a new story and at the end of the day, if we can't create new jobs and incentivize businesses to put capital to work, and banks no less, the quagmire we are currently in will likely stick around for a while. Living off the government isn't the foundation of a strong and prosperous nation. Hopefully our politicians understand this and figure out some ways to kickstart the process.
As for today's markets, the selling in low-yielding commodity plays once again did not let up. Stocks like Consol Energy ( CNX ) and Bucyrus International ( BUCY ) moved lower once again. Financial plays like J.P. Morgan ( JPM ) and Franklin Resources ( BEN ) were also weak today. The momentum in gold-related plays took a hit with shares like Newmont Mining ( NEM ) and Barrick Gold ( ABX ) down once again. Retail plays like Abercrombie & Fitch ( ANF ) and Coach ( COH ) were laggards on the tape. As for names that bucked the selling, Advance Auto Parts ( AAP ) and William Sonoma ( WSM ) were up after both companies posted solid earnings results.
Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Created by Dividend.com
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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As for names that bucked the selling, Advance Auto Parts ( AAP ) and William Sonoma ( WSM ) were up after both companies posted solid earnings results. We're seeing a lot finger-pointing regarding the exact reason the market is selling off, but one doesn't have to look far to see the drop in the Euro is one key concern, as are the latest rumors about a potential Lehman Brothers-like situation perhaps ready to pop in a multi-national or European bank somewhere. The momentum in gold-related plays took a hit with shares like Newmont Mining ( NEM ) and Barrick Gold ( ABX ) down once again.
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As for names that bucked the selling, Advance Auto Parts ( AAP ) and William Sonoma ( WSM ) were up after both companies posted solid earnings results. The market continued to sell off here and we continue to navigate through by making adjustments to our recommended list. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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As for names that bucked the selling, Advance Auto Parts ( AAP ) and William Sonoma ( WSM ) were up after both companies posted solid earnings results. The market continued to sell off here and we continue to navigate through by making adjustments to our recommended list. We're seeing a lot finger-pointing regarding the exact reason the market is selling off, but one doesn't have to look far to see the drop in the Euro is one key concern, as are the latest rumors about a potential Lehman Brothers-like situation perhaps ready to pop in a multi-national or European bank somewhere.
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As for names that bucked the selling, Advance Auto Parts ( AAP ) and William Sonoma ( WSM ) were up after both companies posted solid earnings results. The market continued to sell off here and we continue to navigate through by making adjustments to our recommended list. We removed a couple of names this moning as we continue to try and position our portfolio as best we can going forward.
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12024.0
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2010-04-20 00:00:00 UTC
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Small Cap Stock Upgrades - ALTR, HCBK, GOLD, WAT, PRE, MXIM
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AAP
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https://www.nasdaq.com/articles/small-cap-stock-upgrades-altr-hcbk-gold-wat-pre-mxim-2010-04-20
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Altera Corp. ( ALTR ), Hudson City Bancorp Inc. ( HCBK ), Randgold Resources Ltd. ( GOLD ), Waters Corp. ( WAT ), PartnerRe ( PRE ) and Maxim Integrated Products Inc. ( MXIM ) were among some of the small-cap stocks upgraded by Louis Navellier in his latest fundamental stock analysis on April 19, 2010.
Semiconductor stock Altera Corp. ( ALTR ) was upgraded from its rating of a C grade or "hold" last week in Portfolio Grader to a B grade or "buy"this week in Louis Navellier's database of stocks to buy and sell.
Financial stock Hudson City Bancorp Inc. ( HCBK ), which is in the Thrifts & Mortgage Finance subsector, was upgraded from its rating of a D grade or "sell" last week in Portfolio Grader to a C grade or "hold" on April 19.
Metals and mining stock Randgold Resources Ltd. ( GOLD ) was upgraded from its rating of a C grade or "hold" last week to a B grade or "buy"this week in Portfolio Grader.
Small cap stock Waters Corp. ( WAT ), which specializes in life sciences products, was upgraded from a B grade or "buy" rating last week to a A grade or "strong buy" in Louis Navellier's latest fundamental stock analysis.
Insurance and reinsurance provider PartnerRe ( PRE ) upgraded from its rating of a C grade or "hold" last week to a B grade or "buy" this week in Portfolio Grader's database.
Another semiconductor small-cap stock, Maxim Integrated Products Inc. ( MXIM ), was upgraded from its rating of a C grade or "hold" last week in Portfolio Grader to a B grade or "buy" this week.
View this week's small-cap stock upgrade list below. Remember that an A grade is a "Strong Buy," a B grade is a "Buy" and a C grade is "Hold."
About Portfolio Grader: Every Sunday, renowned growth stock adviser Louis Navellier runs a fundamental analysis on the top 5,000 Wall Street companies. Armed with this research, Navellier offers a rating for each company reflected as a simple letter grade, with A being "strong buy" and F being "strong sell." Portfolio Grader's stock data is free and open to the public, and can be accessed online here .
More Portfolio Grader stock analysis:
4/19 large cap stock upgrades: BA, BP, CS (click for complete list)
4/19 large cap stock downgrades: GOOG, LMT, SNE (click for complete list)
4/12 large cap stock upgrades: COST, LLY, RDS, WMT (click for complete list)
4/12 large cap stock downgrades: BAC, BA, PC, TM (click for complete list)
4/5 large cap stock upgrades: BA, HIT, XRX, YUM (click for complete list)
4/5 large cap stock downgrades: FDX, HMC, RIMM, RBS (click for complete list)
Related Articles:
Qualcomm QCOM Earnings Preview
7 Costly Mutual Fund Mistakes to Avoid
AT&T Getting Its Bell Rung
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Altera Corp. ( ALTR ), Hudson City Bancorp Inc. ( HCBK ), Randgold Resources Ltd. ( GOLD ), Waters Corp. ( WAT ), PartnerRe ( PRE ) and Maxim Integrated Products Inc. ( MXIM ) were among some of the small-cap stocks upgraded by Louis Navellier in his latest fundamental stock analysis on April 19, 2010. About Portfolio Grader: Every Sunday, renowned growth stock adviser Louis Navellier runs a fundamental analysis on the top 5,000 Wall Street companies. More Portfolio Grader stock analysis: 4/19 large cap stock upgrades: BA, BP, CS (click for complete list) 4/19 large cap stock downgrades: GOOG, LMT, SNE (click for complete list) 4/12 large cap stock upgrades: COST, LLY, RDS, WMT (click for complete list) 4/12 large cap stock downgrades: BAC, BA, PC, TM (click for complete list) 4/5 large cap stock upgrades: BA, HIT, XRX, YUM (click for complete list) 4/5 large cap stock downgrades: FDX, HMC, RIMM, RBS (click for complete list) Related Articles: Qualcomm QCOM Earnings Preview 7 Costly Mutual Fund Mistakes to Avoid AT&T Getting Its Bell Rung The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Altera Corp. ( ALTR ), Hudson City Bancorp Inc. ( HCBK ), Randgold Resources Ltd. ( GOLD ), Waters Corp. ( WAT ), PartnerRe ( PRE ) and Maxim Integrated Products Inc. ( MXIM ) were among some of the small-cap stocks upgraded by Louis Navellier in his latest fundamental stock analysis on April 19, 2010. Semiconductor stock Altera Corp. ( ALTR ) was upgraded from its rating of a C grade or "hold" last week in Portfolio Grader to a B grade or "buy"this week in Louis Navellier's database of stocks to buy and sell. More Portfolio Grader stock analysis: 4/19 large cap stock upgrades: BA, BP, CS (click for complete list) 4/19 large cap stock downgrades: GOOG, LMT, SNE (click for complete list) 4/12 large cap stock upgrades: COST, LLY, RDS, WMT (click for complete list) 4/12 large cap stock downgrades: BAC, BA, PC, TM (click for complete list) 4/5 large cap stock upgrades: BA, HIT, XRX, YUM (click for complete list) 4/5 large cap stock downgrades: FDX, HMC, RIMM, RBS (click for complete list) Related Articles: Qualcomm QCOM Earnings Preview 7 Costly Mutual Fund Mistakes to Avoid AT&T Getting Its Bell Rung The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Semiconductor stock Altera Corp. ( ALTR ) was upgraded from its rating of a C grade or "hold" last week in Portfolio Grader to a B grade or "buy"this week in Louis Navellier's database of stocks to buy and sell. Small cap stock Waters Corp. ( WAT ), which specializes in life sciences products, was upgraded from a B grade or "buy" rating last week to a A grade or "strong buy" in Louis Navellier's latest fundamental stock analysis. More Portfolio Grader stock analysis: 4/19 large cap stock upgrades: BA, BP, CS (click for complete list) 4/19 large cap stock downgrades: GOOG, LMT, SNE (click for complete list) 4/12 large cap stock upgrades: COST, LLY, RDS, WMT (click for complete list) 4/12 large cap stock downgrades: BAC, BA, PC, TM (click for complete list) 4/5 large cap stock upgrades: BA, HIT, XRX, YUM (click for complete list) 4/5 large cap stock downgrades: FDX, HMC, RIMM, RBS (click for complete list) Related Articles: Qualcomm QCOM Earnings Preview 7 Costly Mutual Fund Mistakes to Avoid AT&T Getting Its Bell Rung The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Altera Corp. ( ALTR ), Hudson City Bancorp Inc. ( HCBK ), Randgold Resources Ltd. ( GOLD ), Waters Corp. ( WAT ), PartnerRe ( PRE ) and Maxim Integrated Products Inc. ( MXIM ) were among some of the small-cap stocks upgraded by Louis Navellier in his latest fundamental stock analysis on April 19, 2010. Semiconductor stock Altera Corp. ( ALTR ) was upgraded from its rating of a C grade or "hold" last week in Portfolio Grader to a B grade or "buy"this week in Louis Navellier's database of stocks to buy and sell. Small cap stock Waters Corp. ( WAT ), which specializes in life sciences products, was upgraded from a B grade or "buy" rating last week to a A grade or "strong buy" in Louis Navellier's latest fundamental stock analysis.
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12025.0
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2023-12-16 22:00:00 UTC
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My 6 Largest Portfolio Holdings Heading Into 2024 -- and the Important Investing Lesson I Learned From Each One
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AAPL
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https://www.nasdaq.com/articles/my-6-largest-portfolio-holdings-heading-into-2024-and-the-important-investing-lesson-i
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After an absolute disaster of a year in 2022, the stock market appears to have turned the corner. Each of the major market indexes has gained more than 20% from their respective trough. Perhaps more importantly, the S&P 500 and the Nasdaq Composite are within striking distance of new highs, which will check the final box marking the start of a new bull market.
Closing out the old and ringing in the new is a great time for examination, and one of the places I start is with my portfolio. A review of my top investments and how they came to be that way can offer valuable insight for the future.
Here's a look at my six largest holdings heading into 2024 (as of the market close on Dec. 15) and the incredibly valuable lesson I learned from each one.
Image source: Getty Images.
No. 6: Nvidia
Every investor has one -- the "stock that got away." The one you meant to buy, only to find that it got away from you and has risen 100%, 500%, or even 1,000%. In my case, that stock was Nvidia (NASDAQ: NVDA). I had owned a few shares of the graphics processing units (GPU) pioneer in the early days of my investing journey but ultimately sold them in an unprovoked bid of tax-loss harvesting in early 2010.
I always meant to buy it back, but the stock price meandered for much of the next five years, and I ultimately lost confidence. Things changed quickly in 2016 when the stock tripled. After that, it just kept getting away from me.
Fast forward to early 2018. Nvidia still dominated the discrete desktop GPU space, controlling roughly 70% of the market. The company's graphics cards were the processor of choice for cryptocurrency mining, which was booming. Furthermore, there was an ongoing push toward autonomous driving. It was clear that CEO Jensen Huang had a knack for skating to where the puck was going -- recognizing technology trends on the fly and adapting Nvidia's processors and the accompanying software to meet that need.
After much deliberation, I held my nose and bought Nvidia anyway -- even though the stock had risen 600% over the preceding two years. I have added to my stake several times since. Over the past few years, Nvidia has once again adapted to meet a compelling technology need, becoming the gold standard for generative AI applications.
Since that initial purchase, Nvidia has soared 768%, and the stock has become my sixth-largest holding, amounting to nearly 6% of my portfolio. The lesson here? It's never too late to buy a quality company, even if the stock has already risen many times over.
No. 5 and 4: Shopify and Amazon
Long after Amazon had established itself as the world's largest digital retailer, Shopify (NYSE: SHOP) came on the scene with a different approach to e-commerce. Shopify's founders, having discovered firsthand the difficulties inherent in starting an online sales platform, pivoted the business from selling snowboards to providing customizable templates and other tools that made setting up and running an e-commerce business a snap.
By solving a common problem among digital retailers, Shopify carved out a profitable niche for itself in a market that was already (and still is) dominated by Amazon. While it isn't an exact apples-to-apples comparison, it helps illustrate an age-old truth in investing that I learned from owning this stock -- there's a Pepsi for every Coke.
There's another lesson here. I had long been a shareholder of Amazon, but I recognized the value Shopify could bring to the online sales space. Despite the fact that e-commerce was already well represented in my portfolio, I made a sizable investment in Shopify.
That decision turned out well, as both companies have continued to prosper in the age of digital retail. It also turned out well for me as an investor. Since my first purchase of Shopify shares, the stock is up more than 1,446%, while Amazon has gained 844%. Shopify and Amazon are my fourth and fifth largest holdings heading into 2024, each representing roughly 6% of my portfolio.
No. 3: Apple
There's little question that Apple (NASDAQ: AAPL) has become one of the most successful companies in history. Yet, at times over the past few years, some investors concluded the company had reached its zenith. Apple reached a market cap of $1 trillion in 2018, so how much higher could it go?
There were other worries. As penetration has risen, global smartphone sales have slowed. Since Apple's flagship product -- the iPhone -- historically generates more than half the company's revenue, investor reservations are understandable.
Despite these challenges, Apple has continued to grow. CEO Tim Cook has succeeded in expanding Apple's services business to become the company's second-biggest breadwinner, behind just the iPhone. The segment brought in $85 billion in fiscal 2023 (ended Sept. 30), making it comparable to a top 50 company in the Fortune 500. Furthermore, the iPhone continues to dominate where it matters, capturing a record 45% of worldwide smartphone revenue and 85% of profits in the second quarter, according to Counterpoint Research.
Fears that Apple simply couldn't go any higher turned out to be unfounded, an important lesson for investors as its market cap has tripled since 2018. Since my first purchase in 2008, Apple's stock price has surged more than 3,400% to become my third-largest position at 8% of my portfolio. I'm confident there's more to come.
No. 2: Mercadolibre
It's likely that many investors have never heard of MercadoLibre (NASDAQ: MELI). The company, which began as a local online auction site, has evolved into the largest e-commerce and payments ecosystem in Latin America, serving 18 countries in the region.
MercadoLibre not only provides a marketplace for buyers and sellers but also handles shipping and logistics, warehouse and cross-docking, digital payments, consumer and merchant financing, digital wallets, and more. Think of it as the Amazon, Shopify, and PayPal of Latin America all rolled into one.
Many investors have avoided the stock because of the risks inherent in the region, which is understandable. For example, Argentina -- MercadoLibre's birthplace and one of its biggest markets -- has an inflation rate that clocks in at 143%, and the country just devalued its currency by 50%. Other countries in the region grapple with hyperinflation, economic turmoil, charges of political corruption, poor infrastructure, and more.
Yet those risks pale in the context of the opportunity. Latin America is years behind the U.S. in terms of e-commerce and digital payment penetration, yet adoption continues to grow. Furthermore, Latin America has twice the population of the U.S. and is the fastest-growing e-commerce market in the world, according to Americas Market Intelligence. Finally, because MercadoLibre takes a cut of each transaction, it has sidestepped many of those risks. As a result, its revenue grew 50% in 2022 while net income soared 480%, a trend that has been ongoing for more than a decade.
Understanding the risk, viewed through the lens of the significant long-term opportunity, can provide important insight, which gave me the confidence to buy the stock. My rather modest initial investment in MercadoLibre in 2009 has grown by more than 7,300%, and the company now represents 10% of my portfolio. Not bad for a "risky" stock.
No. 1: Netflix
Netflix (NASDAQ: NFLX) was the very first stock I bought when I started investing in late 2007. After incurring a late fee at Blockbuster (remember them?) that was more than the cost of buying the movie new, I cut up my membership card and subscribed to Netflix. As an extremely satisfied customer, it made perfect sense to buy the stock once I started investing.
Back then, the company was a DVD-by-mail service that had recently begun experimenting with streaming video. Netflix had achieved remarkable penetration in its earliest markets, and I surmised the company could expand its success across the country, which was the basis of my investing thesis.
The company has achieved all that and more, becoming the world's largest subscription streaming video service. The value of the initial shares I bought in 2007 has surged more than 19,000%, making Netflix my largest holding at nearly 11% of my portfolio.
However, those life-changing gains were only possible because I held the stock for the duration, which is easier said than done. Remember the "Qwikster" fiasco of 2011? All the "Netflix killers" over the years? How about the loss of 1.2 million subscribers early last year?
There were plenty of excuses to sell Netflix over the years, but for me, the investing thesis never changed, so I held on. And this long-term buy-and-hold strategy continues to win out.
Should you invest $1,000 in Nvidia right now?
Before you buy stock in Nvidia, consider this:
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See the 10 stocks
*Stock Advisor returns as of December 11, 2023
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Danny Vena has positions in Amazon, Apple, MercadoLibre, Netflix, Nvidia, PayPal, and Shopify and has the following options: long January 2024 $95 calls on PayPal. The Motley Fool has positions in and recommends Amazon, Apple, MercadoLibre, Netflix, Nvidia, PayPal, and Shopify. The Motley Fool recommends the following options: long January 2024 $47.50 calls on Coca-Cola and short December 2023 $67.50 puts on PayPal. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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3: Apple There's little question that Apple (NASDAQ: AAPL) has become one of the most successful companies in history. It was clear that CEO Jensen Huang had a knack for skating to where the puck was going -- recognizing technology trends on the fly and adapting Nvidia's processors and the accompanying software to meet that need. The company, which began as a local online auction site, has evolved into the largest e-commerce and payments ecosystem in Latin America, serving 18 countries in the region.
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3: Apple There's little question that Apple (NASDAQ: AAPL) has become one of the most successful companies in history. Danny Vena has positions in Amazon, Apple, MercadoLibre, Netflix, Nvidia, PayPal, and Shopify and has the following options: long January 2024 $95 calls on PayPal. The Motley Fool has positions in and recommends Amazon, Apple, MercadoLibre, Netflix, Nvidia, PayPal, and Shopify.
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3: Apple There's little question that Apple (NASDAQ: AAPL) has become one of the most successful companies in history. Before you buy stock in Nvidia, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Nvidia wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 11, 2023 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors.
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3: Apple There's little question that Apple (NASDAQ: AAPL) has become one of the most successful companies in history. 6: Nvidia Every investor has one -- the "stock that got away." Should you invest $1,000 in Nvidia right now?
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12026.0
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2023-12-16 22:00:00 UTC
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Brokers Suggest Investing in Apple (AAPL): Read This Before Placing a Bet
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AAPL
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https://www.nasdaq.com/articles/brokers-suggest-investing-in-apple-aapl%3A-read-this-before-placing-a-bet
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nan
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When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?
Let's take a look at what these Wall Street heavyweights have to say about Apple (AAPL) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
Apple currently has an average brokerage recommendation (ABR) of 1.71, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 29 brokerage firms. An ABR of 1.71 approximates between Strong Buy and Buy.
Of the 29 recommendations that derive the current ABR, 17 are Strong Buy and three are Buy. Strong Buy and Buy respectively account for 58.6% and 10.3% of all recommendations.
Brokerage Recommendation Trends for AAPL
Check price target & stock forecast for Apple here>>>
The ABR suggests buying Apple, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.
This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.
With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near -term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.
ABR Should Not Be Confused With Zacks Rank
Although both Zacks Rank and ABR are displayed in a range of 1-5, they are different measures altogether.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.
On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Is AAPL a Good Investment?
In terms of earnings estimate revisions for Apple, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $6.56.
Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Apple. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for Apple.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Let's take a look at what these Wall Street heavyweights have to say about Apple (AAPL) before we discuss the reliability of brokerage recommendations and how to use them to your advantage. Brokerage Recommendation Trends for AAPL Is AAPL a Good Investment?
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. Let's take a look at what these Wall Street heavyweights have to say about Apple (AAPL) before we discuss the reliability of brokerage recommendations and how to use them to your advantage. Brokerage Recommendation Trends for AAPL
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Let's take a look at what these Wall Street heavyweights have to say about Apple (AAPL) before we discuss the reliability of brokerage recommendations and how to use them to your advantage. Brokerage Recommendation Trends for AAPL Is AAPL a Good Investment?
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Brokerage Recommendation Trends for AAPL Let's take a look at what these Wall Street heavyweights have to say about Apple (AAPL) before we discuss the reliability of brokerage recommendations and how to use them to your advantage. Is AAPL a Good Investment?
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12027.0
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2023-12-16 21:00:00 UTC
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Company News for Dec 19, 2023
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AAPL
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https://www.nasdaq.com/articles/company-news-for-dec-19-2023
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Shares of Apple Inc. AAPL lost 0.9% on China’s ban on the company’s iPhones gathering pace.
Prologis, Inc.’s PLD shares fell 1.2% on the real estate sector continuing to make losses.
Shares of United States Steel Corporation X soared 26.1% after Japan-based Nippon Steel announced that it would buy the company in a $14.9 billion deal that includes debt.
Shares of The AES Corporation AES fell 1.7% on utilities becoming one of the biggest losing sectors of the day.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL) : Free Stock Analysis Report
Prologis, Inc. (PLD) : Free Stock Analysis Report
United States Steel Corporation (X) : Free Stock Analysis Report
The AES Corporation (AES) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of Apple Inc. AAPL lost 0.9% on China’s ban on the company’s iPhones gathering pace. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Prologis, Inc. (PLD) : Free Stock Analysis Report United States Steel Corporation (X) : Free Stock Analysis Report The AES Corporation (AES) : Free Stock Analysis Report To read this article on Zacks.com click here. Prologis, Inc.’s PLD shares fell 1.2% on the real estate sector continuing to make losses.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Prologis, Inc. (PLD) : Free Stock Analysis Report United States Steel Corporation (X) : Free Stock Analysis Report The AES Corporation (AES) : Free Stock Analysis Report To read this article on Zacks.com click here. Shares of Apple Inc. AAPL lost 0.9% on China’s ban on the company’s iPhones gathering pace. Shares of United States Steel Corporation X soared 26.1% after Japan-based Nippon Steel announced that it would buy the company in a $14.9 billion deal that includes debt.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Prologis, Inc. (PLD) : Free Stock Analysis Report United States Steel Corporation (X) : Free Stock Analysis Report The AES Corporation (AES) : Free Stock Analysis Report To read this article on Zacks.com click here. Shares of Apple Inc. AAPL lost 0.9% on China’s ban on the company’s iPhones gathering pace. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Prologis, Inc. (PLD) : Free Stock Analysis Report United States Steel Corporation (X) : Free Stock Analysis Report The AES Corporation (AES) : Free Stock Analysis Report To read this article on Zacks.com click here. Shares of Apple Inc. AAPL lost 0.9% on China’s ban on the company’s iPhones gathering pace. Shares of The AES Corporation AES fell 1.7% on utilities becoming one of the biggest losing sectors of the day.
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12028.0
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2023-12-16 21:00:00 UTC
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NVIDIA (NVDA) Up 243% YTD: Will It Carry Momentum in 2024?
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AAPL
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https://www.nasdaq.com/articles/nvidia-nvda-up-243-ytd%3A-will-it-carry-momentum-in-2024
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NVIDIA Corporation NVDA has witnessed a remarkable run, showcasing a staggering 243% year-to-date surge in its stock price, pushing the company to the forefront of technology and innovation. NVIDIA also achieved a massive milestone in May 2023 by joining the exclusive club of companies with a $1 trillion market capitalization.
The surge reflects investors' confidence in NVIDIA's strategic positioning, robust financial performance and pivotal role in shaping transformative technologies like artificial intelligence (AI), gaming and data center solutions.
However, the looming question remains — Can NVIDIA sustain this momentum through 2024?
NVIDIA Corporation Price and Consensus
NVIDIA Corporation price-consensus-chart | NVIDIA Corporation Quote
Will GenAI Investments Aid NVDA’s Surge?
NVIDIA’s robust stock price performance has been primarily driven by hopes that the company will be a prime beneficiary of growing investments in generative AI. Given generative AI’s inherited opportunities and the company’s leadership in the space, we believe the NVDA stock is poised to carry the momentum in 2024.
NVIDIA dominates the market for AI chips. The meteoric rise of OpenAI’s ChatGPT and its adoption among enterprises have already proven generative AI technology’s usefulness across multiple industries, including marketing, advertising, customer service, education, content creation, healthcare, automotive, energy & utilities and video game development.
The growing demand to modernize the workflow across industries is expected to drive the demand for generative AI applications. The global generative AI market size is anticipated to reach $109.37 billion by 2030, according to a new report by Grand View Research. The market is expected to expand at a CAGR of 35.6% from 2023 to 2030.
However, generative AI requires vast knowledge to create content and needs huge computational power. As a result, enterprises looking to create generative AI-based applications will be required to upgrade their existing network infrastructure.
NVIDIA’s next-generation chips with high computing power can be the top choice for enterprises. The company’s GPUs are already being applied in AI models. This is expanding NVDA’s footprint in untapped markets like automotive, healthcare and manufacturing.
The generative AI revolution is likely to create huge demand for its next-generation high computing powerful chips. Considering surging AI investments across the data center end market, NVDA expects its fourth-quarter fiscal 2024 revenues to reach $20 billion from $6.05 billion in the year-ago quarter.
Additionally, NVIDIA currently carries a Zacks Rank #2 (Buy) and has a Growth Score of A. Our research shows that stocks with a Growth Score of A or B when combined with a Zacks Rank #1 (Strong Buy) or #2 offer the best investment opportunities for investors. Thus, the company appears to be a compelling investment proposition at the moment.
Other Stocks in the $1T Club
Apart from NVIDIA, only four companies — Apple Inc. AAPL, Microsoft Corporation MSFT, Alphabet Inc. GOOGL and Amazon.com, Inc. AMZN — have a market cap of more than $1 trillion at present. AAPL has the highest market cap of $3.05 trillion, followed by MSFT’s $2.77 trillion, GOOGL’s $1.71 trillion and AMZN’s $1.59 trillion. At yesterday’s closing price of $500.77, NVDA has a market capitalization of $1.23 trillion, positioning it in the fifth spot.
Shares of Apple, Microsoft, Alphabet and Amazon have rallied 50.7%, 55.4%, 53.9% and 83.2%, respectively, year to date. Currently, AMZN sports a Zacks Rank #1, while AAPL, MSFT and GOOGL each carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Other Stocks in the $1T Club Apart from NVIDIA, only four companies — Apple Inc. AAPL, Microsoft Corporation MSFT, Alphabet Inc. GOOGL and Amazon.com, Inc. AMZN — have a market cap of more than $1 trillion at present. AAPL has the highest market cap of $3.05 trillion, followed by MSFT’s $2.77 trillion, GOOGL’s $1.71 trillion and AMZN’s $1.59 trillion. Currently, AMZN sports a Zacks Rank #1, while AAPL, MSFT and GOOGL each carry a Zacks Rank #3 (Hold).
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Other Stocks in the $1T Club Apart from NVIDIA, only four companies — Apple Inc. AAPL, Microsoft Corporation MSFT, Alphabet Inc. GOOGL and Amazon.com, Inc. AMZN — have a market cap of more than $1 trillion at present. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. AAPL has the highest market cap of $3.05 trillion, followed by MSFT’s $2.77 trillion, GOOGL’s $1.71 trillion and AMZN’s $1.59 trillion.
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Other Stocks in the $1T Club Apart from NVIDIA, only four companies — Apple Inc. AAPL, Microsoft Corporation MSFT, Alphabet Inc. GOOGL and Amazon.com, Inc. AMZN — have a market cap of more than $1 trillion at present. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. AAPL has the highest market cap of $3.05 trillion, followed by MSFT’s $2.77 trillion, GOOGL’s $1.71 trillion and AMZN’s $1.59 trillion.
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Other Stocks in the $1T Club Apart from NVIDIA, only four companies — Apple Inc. AAPL, Microsoft Corporation MSFT, Alphabet Inc. GOOGL and Amazon.com, Inc. AMZN — have a market cap of more than $1 trillion at present. AAPL has the highest market cap of $3.05 trillion, followed by MSFT’s $2.77 trillion, GOOGL’s $1.71 trillion and AMZN’s $1.59 trillion. Currently, AMZN sports a Zacks Rank #1, while AAPL, MSFT and GOOGL each carry a Zacks Rank #3 (Hold).
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12029.0
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2023-12-16 21:00:00 UTC
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Pre-Market Most Active for Dec 19, 2023 : BMY, SQQQ, NIO, UBS, TQQQ, UBER, NVDA, AAPL, GOTU, CAN, TSLA, PLTR
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AAPL
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https://www.nasdaq.com/articles/pre-market-most-active-for-dec-19-2023-%3A-bmy-sqqq-nio-ubs-tqqq-uber-nvda-aapl-gotu-can
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The NASDAQ 100 Pre-Market Indicator is up 10.13 to 16,739.93. The total Pre-Market volume is currently 34,708,820 shares traded.
The following are the most active stocks for the pre-market session:
Bristol-Myers Squibb Company (BMY) is +0.13 at $51.47, with 2,493,019 shares traded. BMY's current last sale is 85.78% of the target price of $60.
ProShares UltraPro Short QQQ (SQQQ) is -0.07 at $13.86, with 2,371,263 shares traded., following a 52-week high recorded in prior regular session.
NIO Inc. (NIO) is +0.16 at $8.51, with 2,030,567 shares traded. NIO's current last sale is 81.83% of the target price of $10.4.
UBS AG (UBS) is +0.9 at $30.10, with 1,688,120 shares traded. UBS's current last sale is 118.13% of the target price of $25.48.
ProShares UltraPro QQQ (TQQQ) is +0.29 at $50.56, with 1,511,601 shares traded., following a 52-week high recorded in prior regular session.
Uber Technologies, Inc. (UBER) is +0.0505 at $61.78, with 1,237,148 shares traded. As reported by Zacks, the current mean recommendation for UBER is in the "buy range".
NVIDIA Corporation (NVDA) is -6.67 at $494.10, with 1,110,574 shares traded. Over the last four weeks they have had 12 up revisions for the earnings forecast, for the fiscal quarter ending Jan 2024. The consensus EPS forecast is $4.13. As reported by Zacks, the current mean recommendation for NVDA is in the "buy range".
Apple Inc. (AAPL) is +0.86 at $196.75, with 1,018,616 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Gaotu Techedu Inc. (GOTU) is -0.23 at $3.50, with 827,804 shares traded. GOTU's current last sale is 152.17% of the target price of $2.3.
Canaan Inc. (CAN) is +0.19 at $2.39, with 816,633 shares traded. As reported by Zacks, the current mean recommendation for CAN is in the "strong buy range".
Tesla, Inc. (TSLA) is +0.82 at $252.90, with 758,351 shares traded. TSLA's current last sale is 101.16% of the target price of $250.
Palantir Technologies Inc. (PLTR) is +0.14 at $17.98, with 635,719 shares traded. PLTR's current last sale is 112.38% of the target price of $16.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc. (AAPL) is +0.86 at $196.75, with 1,018,616 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". ProShares UltraPro Short QQQ (SQQQ) is -0.07 at $13.86, with 2,371,263 shares traded., following a 52-week high recorded in prior regular session.
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Apple Inc. (AAPL) is +0.86 at $196.75, with 1,018,616 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". ProShares UltraPro Short QQQ (SQQQ) is -0.07 at $13.86, with 2,371,263 shares traded., following a 52-week high recorded in prior regular session.
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Apple Inc. (AAPL) is +0.86 at $196.75, with 1,018,616 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total Pre-Market volume is currently 34,708,820 shares traded.
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Apple Inc. (AAPL) is +0.86 at $196.75, with 1,018,616 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The following are the most active stocks for the pre-market session:
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12030.0
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2023-12-16 20:00:00 UTC
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3 Artificial Intelligence (AI) Stocks for 2024 (and Beyond)
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AAPL
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https://www.nasdaq.com/articles/3-artificial-intelligence-ai-stocks-for-2024-and-beyond
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What was the top financial story of 2023? It has to be Artificial Intelligence (AI), right?
No other subject dominated the headlines quite like AI. Whether it was ChatGPT, viral AI-generated images, or the failed ouster of Sam Altman at OpenAI, it seems AI keeps pumping out big stories, one after the other.
So, with 2024 right around the corner, here are three AI stocks worth owning in 2024 -- and beyond.
Image source: Getty Images.
AI analysis can help companies optimize their operations
Jake Lerch (Palantir Technologies): With the stock up 178% year to date, 2023 has been an incredible year for Palantir Technologies (NYSE: PLTR) and its shareholders. There are, however, signs that 2024 (and beyond) could be even better.
Palantir operates AI-based analytics systems for governmental and commercial uses and is on the leading edge of translating AI innovation into shareholder returns. Consider Palantir's recent announcement that it is extending its long-standing partnership with UniCredit S.p.A., a major European bank.
In its press release , Palantir noted that its signature Foundry operating system delivered material results for UniCredit. For example, in 2023, "advanced analytics and propensity models in Foundry helped [UniCredit] generate a four-fold increase in customer redemption of protection products through better targeting."
Indeed, UniCredit is just one of many customers that is desperate to ramp up its use of AI to streamline its operations. In a Dec. 7, 2023 interview with Fox Business, Palantir co-founder and CEO Alex Karp said, "We just can't keep up with our product demand...We are just breaking at the seams in the U.S."
The numbers certainly back that statement up. In its most recent quarter (the three months ending on Sept. 30, 2023), Palantir grew revenue by 17% year over year. Trailing-12-month revenue hit $2.1 billion, gross profit swelled to $1.7 billion, and free cash flow increased to $474 million.
PLTR Revenue (TTM) data by YCharts
Nevertheless, Palantir stock isn't for everyone. Since the company is still early in its lifecycle, its stock will be volatile. Indeed, shares plummeted more than 84% from their all-time high between January 2021 and January 2023.
Still, for long-term, growth-oriented investors, Palantir is a name worth considering, given the soaring demand for its products and its improving fundamentals.
AI isn't just about what you see; it's about what you say and hear
Justin Pope (SoundHound AI): Much of the hype around AI has focused on large language models like ChatGPT, but there are other ways to use AI that investors may not be fully aware of. SoundHound AI (NASDAQ: SOUN) develops conversational AI, taking an audio input, such as someone voicing a question and responding with dialogue or action.
Conversational AI has a lot of existing and potential use cases. SoundHound AI is used in restaurant and hospitality industries to take orders or make reservations. It's in vehicles, smart devices, and appliances for voice assistance. In the future, the technology could find its way into healthcare, customer service, and more. SoundHound AI estimates a long-term potential addressable market of $160 billion.
As a company, SoundHound AI is just getting started. It's only done $38 million in revenue over the past 12 months, but analysts believe it will grow significantly. Estimates call for 50% revenue growth over the next two years. The company also recently announced an acquisition of SYNQ3 Restaurant Solutions, giving SoundHound access to a potential restaurant pipeline of 100,000 locations.
SoundHound AI is a risky stock because the business is so nascent. It's burning cash every quarter, and there is only a year or so of cash on the balance sheet at this rate. Investors shouldn't be shocked if the company issues new stock to raise funds. Conversely, the stock's market cap is just $480 million. Investors could eventually be handsomely rewarded if SoundHound AI can become a leader in this massive (but underrated) niche within AI.
It's way too early to count out this "AI-first" company
Will Healy (Alphabet): The narrative in the AI space seems to have turned away from Google parent Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG).
Indeed, the rise of OpenAI's ChatGPT seemed to catch Alphabet off guard, particularly as rival Microsoft (NASDAQ: MSFT) forged an alliance with the research and development company. This gave users a reason to start using Microsoft's search engine, Bing, and some began questioning the dominance of the Google search engine for the first time in several years.
However, Alphabet has responded with its own generative AI tool called Bard. While the tools offer similar results, Bard was first in producing more up-to-date results as it leverages Google's search engine.
Moreover, the company has a long history with AI. Alphabet first used AI to correct spelling as early as 2001. The tools advanced from that point, so much so that Alphabet declared itself an "AI first" company in 2016.
Furthermore, investors should remember that Alphabet owns numerous companies, some of which could drive AI innovation. Earlier this year, it combined two of its AI companies into Google DeepMind. This subsidiary is a group of scientists, engineers, and others researching AI.
Also, with the funding backing Google DeepMind, the company has a high probability of driving innovation. Alphabet claims almost $120 billion in liquidity, and it generated nearly $32 billion in free cash flow in the first nine months of 2023. This gives the company tremendous resources to develop AI-related products and the ability to purchase the innovation it cannot create.
Such optionality gives investors fewer reasons to doubt Alphabet, and one has to wonder whether the sentiment against the Google parent was overblown. Despite the concerns of some, the stock has risen by more than 40% over the last 12 months.
GOOGL PE Ratio data by YCharts
Additionally, the increase has taken its P/E ratio to 26. While not inexpensive, its P/E is lower than those of Amazon (NASDAQ: AMZN), Apple (NASDAQ: AAPL), and Microsoft. That lower valuation could be an opportunity to buy this stock as it uses its AI knowledge base and vast resources to remain a force in the artificial intelligence industry.
Should you invest $1,000 in Alphabet right now?
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Jake Lerch has positions in Alphabet and Amazon. Justin Pope has no position in any of the stocks mentioned. Will Healy has positions in Palantir Technologies. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Microsoft, and Palantir Technologies. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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While not inexpensive, its P/E is lower than those of Amazon (NASDAQ: AMZN), Apple (NASDAQ: AAPL), and Microsoft. For example, in 2023, "advanced analytics and propensity models in Foundry helped [UniCredit] generate a four-fold increase in customer redemption of protection products through better targeting." In a Dec. 7, 2023 interview with Fox Business, Palantir co-founder and CEO Alex Karp said, "We just can't keep up with our product demand...We are just breaking at the seams in the U.S." The numbers certainly back that statement up.
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While not inexpensive, its P/E is lower than those of Amazon (NASDAQ: AMZN), Apple (NASDAQ: AAPL), and Microsoft. It's way too early to count out this "AI-first" company Will Healy (Alphabet): The narrative in the AI space seems to have turned away from Google parent Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG). However, Alphabet has responded with its own generative AI tool called Bard.
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While not inexpensive, its P/E is lower than those of Amazon (NASDAQ: AMZN), Apple (NASDAQ: AAPL), and Microsoft. AI analysis can help companies optimize their operations Jake Lerch (Palantir Technologies): With the stock up 178% year to date, 2023 has been an incredible year for Palantir Technologies (NYSE: PLTR) and its shareholders. AI isn't just about what you see; it's about what you say and hear Justin Pope (SoundHound AI): Much of the hype around AI has focused on large language models like ChatGPT, but there are other ways to use AI that investors may not be fully aware of.
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While not inexpensive, its P/E is lower than those of Amazon (NASDAQ: AMZN), Apple (NASDAQ: AAPL), and Microsoft. As a company, SoundHound AI is just getting started. It's way too early to count out this "AI-first" company Will Healy (Alphabet): The narrative in the AI space seems to have turned away from Google parent Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG).
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12031.0
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2023-12-16 20:00:00 UTC
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AAPL Quantitative Stock Analysis
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AAPL
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https://www.nasdaq.com/articles/aapl-quantitative-stock-analysis-10
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nan
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Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. This momentum model looks for a combination of fundamental momentum and price momentum.
APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. The rating using this strategy is 100% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
FUNDAMENTAL MOMENTUM: PASS
TWELVE MINUS ONE MOMENTUM: PASS
FINAL RANK: PASS
Detailed Analysis of APPLE INC
AAPL Guru Analysis
AAPL Fundamental Analysis
More Information on Dashan Huang
Dashan Huang Portfolio
About Dashan Huang: Dashan Huang is an Assistant Professor of Finance at the Lee Kong Chian School of Business at Singapore Management University. His paper "Twin Momentum" looked at combining traditional price momentum with improving fundamentals to generate market outperformance. In the paper, he identified seven fundamental variables (earnings, return on equity, return on assets, accrual operating profitability to equity, cash operating profitability to assets, gross profit to assets and net payout ratio) that he combined into a single fundamental momentum measure. He showed that stocks in the top 20% of the universe according to that measure outperformed the market going forward. When he combined that measure with price momentum, he was able to double its outperformance.
Additional Research Links
Top NASDAQ 100 Stocks
Top Technology Stocks
Top Large-Cap Growth Stocks
High Momentum Stocks
High Insider Ownership Stocks
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang.
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Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Dashan Huang Dashan Huang Portfolio About Dashan Huang: Dashan Huang is an Assistant Professor of Finance at the Lee Kong Chian School of Business at Singapore Management University. Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang.
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Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Dashan Huang Dashan Huang Portfolio About Dashan Huang: Dashan Huang is an Assistant Professor of Finance at the Lee Kong Chian School of Business at Singapore Management University. Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang.
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Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. Below is Validea's guru fundamental report for APPLE INC (AAPL). APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry.
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12032.0
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2023-12-16 18:00:00 UTC
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Should Vanguard S&P 500 ETF (VOO) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-vanguard-sp-500-etf-voo-be-on-your-investing-radar-11
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If you're interested in broad exposure to the Large Cap Blend segment of the US equity market, look no further than the Vanguard S&P 500 ETF (VOO), a passively managed exchange traded fund launched on 09/09/2010.
The fund is sponsored by Vanguard. It has amassed assets over $368.80 billion, making it one of the largest ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Large cap companies typically have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.
Blend ETFs are aptly named, since they tend to hold a mix of growth and value stocks, as well as show characteristics of both kinds of equities.
Costs
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.03%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.43%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 29.40% of the portfolio. Financials and Healthcare round out the top three.
Looking at individual holdings, Apple Inc. (AAPL) accounts for about 7.53% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN).
The top 10 holdings account for about 30.44% of total assets under management.
Performance and Risk
VOO seeks to match the performance of the S&P 500 Index before fees and expenses. The S&P 500 Index measures the performance of the large-capitalization sector of the U.S. equity market.
The ETF has added about 25.26% so far this year and it's up approximately 24.84% in the last one year (as of 12/19/2023). In the past 52-week period, it has traded between $346.17 and $435.54.
The ETF has a beta of 1 and standard deviation of 17.49% for the trailing three-year period, making it a medium risk choice in the space. With about 507 holdings, it effectively diversifies company-specific risk.
Alternatives
Vanguard S&P 500 ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, VOO is an outstanding option for investors seeking exposure to the Style Box - Large Cap Blend segment of the market. There are other additional ETFs in the space that investors could consider as well.
The iShares Core S&P 500 ETF (IVV) and the SPDR S&P 500 ETF (SPY) track the same index. While iShares Core S&P 500 ETF has $397.71 billion in assets, SPDR S&P 500 ETF has $456.74 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Vanguard S&P 500 ETF (VOO): ETF Research Reports
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
SPDR S&P 500 ETF (SPY): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc. (AAPL) accounts for about 7.53% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Click to get this free report Vanguard S&P 500 ETF (VOO): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. If you're interested in broad exposure to the Large Cap Blend segment of the US equity market, look no further than the Vanguard S&P 500 ETF (VOO), a passively managed exchange traded fund launched on 09/09/2010.
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Looking at individual holdings, Apple Inc. (AAPL) accounts for about 7.53% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Click to get this free report Vanguard S&P 500 ETF (VOO): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Sector Exposure and Top Holdings Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund.
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Click to get this free report Vanguard S&P 500 ETF (VOO): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc. (AAPL) accounts for about 7.53% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Alternatives Vanguard S&P 500 ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors.
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Looking at individual holdings, Apple Inc. (AAPL) accounts for about 7.53% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Click to get this free report Vanguard S&P 500 ETF (VOO): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. If you're interested in broad exposure to the Large Cap Blend segment of the US equity market, look no further than the Vanguard S&P 500 ETF (VOO), a passively managed exchange traded fund launched on 09/09/2010.
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12033.0
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2023-12-16 18:00:00 UTC
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Is FlexShares Quality Dividend ETF (QDF) a Strong ETF Right Now?
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AAPL
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https://www.nasdaq.com/articles/is-flexshares-quality-dividend-etf-qdf-a-strong-etf-right-now-0
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Launched on 12/14/2012, the FlexShares Quality Dividend ETF (QDF) is a smart beta exchange traded fund offering broad exposure to the Style Box - All Cap Blend category of the market.
What Are Smart Beta ETFs?
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
The fund is sponsored by Flexshares. It has amassed assets over $1.66 billion, making it one of the larger ETFs in the Style Box - All Cap Blend. QDF seeks to match the performance of the Northern Trust Quality Dividend Index before fees and expenses.
The Northern Trust Quality Dividend Index is designed to provide exposure to a high-quality income-oriented portfolio of long-only U.S. equity securities, with an emphasis on long-term capital growth and a targeted overall beta that is similar to that of the Northern Trust 1250 Index and the Index are selected based on expected dividend payment and fundamental factors.
Cost & Other Expenses
Expense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.
Annual operating expenses for QDF are 0.37%, which makes it on par with most peer products in the space.
QDF's 12-month trailing dividend yield is 2.19%.
Sector Exposure and Top Holdings
Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.
For QDF, it has heaviest allocation in the Information Technology sector --about 31.40% of the portfolio --while Financials and Healthcare round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 9.45% of total assets, followed by Microsoft Corp Common Stock Usd 0.00000625 (MSFT) and Procter &no.38; Gamble Co/the Common Stock Usd 0 (PG).
Its top 10 holdings account for approximately 34.12% of QDF's total assets under management.
Performance and Risk
The ETF return is roughly 19.10% so far this year and is up about 20.04% in the last one year (as of 12/19/2023). In the past 52-week period, it has traded between $51.86 and $61.93.
The fund has a beta of 0.98 and standard deviation of 16.04% for the trailing three-year period, which makes QDF a medium risk choice in this particular space. With about 143 holdings, it effectively diversifies company-specific risk.
Alternatives
FlexShares Quality Dividend ETF is a reasonable option for investors seeking to outperform the Style Box - All Cap Blend segment of the market. However, there are other ETFs in the space which investors could consider.
IShares Core S&P Total U.S. Stock Market ETF (ITOT) tracks S&P Total Market Index and the Vanguard Total Stock Market ETF (VTI) tracks CRSP US Total Market Index. IShares Core S&P Total U.S. Stock Market ETF has $48.85 billion in assets, Vanguard Total Stock Market ETF has $344.19 billion. ITOT has an expense ratio of 0.03% and VTI charges 0.03%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - All Cap Blend.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
FlexShares Quality Dividend ETF (QDF): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Procter & Gamble Company (The) (PG) : Free Stock Analysis Report
Vanguard Total Stock Market ETF (VTI): ETF Research Reports
iShares Core S&P Total U.S. Stock Market ETF (ITOT): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 9.45% of total assets, followed by Microsoft Corp Common Stock Usd 0.00000625 (MSFT) and Procter &no.38; Gamble Co/the Common Stock Usd 0 (PG). Click to get this free report FlexShares Quality Dividend ETF (QDF): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Procter & Gamble Company (The) (PG) : Free Stock Analysis Report Vanguard Total Stock Market ETF (VTI): ETF Research Reports iShares Core S&P Total U.S. Stock Market ETF (ITOT): ETF Research Reports To read this article on Zacks.com click here. Launched on 12/14/2012, the FlexShares Quality Dividend ETF (QDF) is a smart beta exchange traded fund offering broad exposure to the Style Box - All Cap Blend category of the market.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 9.45% of total assets, followed by Microsoft Corp Common Stock Usd 0.00000625 (MSFT) and Procter &no.38; Gamble Co/the Common Stock Usd 0 (PG). Click to get this free report FlexShares Quality Dividend ETF (QDF): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Procter & Gamble Company (The) (PG) : Free Stock Analysis Report Vanguard Total Stock Market ETF (VTI): ETF Research Reports iShares Core S&P Total U.S. Stock Market ETF (ITOT): ETF Research Reports To read this article on Zacks.com click here. IShares Core S&P Total U.S. Stock Market ETF (ITOT) tracks S&P Total Market Index and the Vanguard Total Stock Market ETF (VTI) tracks CRSP US Total Market Index.
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Click to get this free report FlexShares Quality Dividend ETF (QDF): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Procter & Gamble Company (The) (PG) : Free Stock Analysis Report Vanguard Total Stock Market ETF (VTI): ETF Research Reports iShares Core S&P Total U.S. Stock Market ETF (ITOT): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 9.45% of total assets, followed by Microsoft Corp Common Stock Usd 0.00000625 (MSFT) and Procter &no.38; Gamble Co/the Common Stock Usd 0 (PG). IShares Core S&P Total U.S. Stock Market ETF (ITOT) tracks S&P Total Market Index and the Vanguard Total Stock Market ETF (VTI) tracks CRSP US Total Market Index.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 9.45% of total assets, followed by Microsoft Corp Common Stock Usd 0.00000625 (MSFT) and Procter &no.38; Gamble Co/the Common Stock Usd 0 (PG). Click to get this free report FlexShares Quality Dividend ETF (QDF): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Procter & Gamble Company (The) (PG) : Free Stock Analysis Report Vanguard Total Stock Market ETF (VTI): ETF Research Reports iShares Core S&P Total U.S. Stock Market ETF (ITOT): ETF Research Reports To read this article on Zacks.com click here. Launched on 12/14/2012, the FlexShares Quality Dividend ETF (QDF) is a smart beta exchange traded fund offering broad exposure to the Style Box - All Cap Blend category of the market.
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12034.0
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2023-12-16 18:00:00 UTC
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Is FlexShares STOXX US ESG Select Index Fund (ESG) a Strong ETF Right Now?
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AAPL
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https://www.nasdaq.com/articles/is-flexshares-stoxx-us-esg-select-index-fund-esg-a-strong-etf-right-now-0
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nan
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Making its debut on 07/13/2016, smart beta exchange traded fund FlexShares STOXX US ESG Select Index Fund (ESG) provides investors broad exposure to the Style Box - Large Cap Blend category of the market.
What Are Smart Beta ETFs?
The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.
A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor & Index
Because the fund has amassed over $204.22 million, this makes it one of the average sized ETFs in the Style Box - Large Cap Blend. ESG is managed by Flexshares. Before fees and expenses, this particular fund seeks to match the performance of the STOXX USA ESG Impact Index.
The STOXX USA ESG Select KPIs Index is an optimized index designed to provide broad market exposure that is tilted toward U.S. companies that score better with respect to a small set of environmental, social and governance characteristics and to provide the potential for attractive risk-adjusted performance relative to the STOXX USA 900 Index.
Cost & Other Expenses
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
With on par with most peer products in the space, this ETF has annual operating expenses of 0.32%.
The fund has a 12-month trailing dividend yield of 1.11%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Information Technology sector - about 25.80% of the portfolio. Financials and Consumer Discretionary round out the top three.
Taking into account individual holdings, Amazon.com Inc Common Stock Usd 0.01 (AMZN) accounts for about 5.14% of the fund's total assets, followed by Apple Inc (AAPL) and Microsoft Corp Common Stock Usd 0.00000625 (MSFT).
ESG's top 10 holdings account for about 34.71% of its total assets under management.
Performance and Risk
The ETF return is roughly 26.91% so far this year and is up about 26.91% in the last one year (as of 12/19/2023). In the past 52-week period, it has traded between $90.43 and $115.26.
The fund has a beta of 1.03 and standard deviation of 17.87% for the trailing three-year period. With about 266 holdings, it effectively diversifies company-specific risk.
Alternatives
FlexShares STOXX US ESG Select Index Fund is a reasonable option for investors seeking to outperform the Style Box - Large Cap Blend segment of the market. However, there are other ETFs in the space which investors could consider.
JPMorgan Nasdaq Equity Premium Income ETF (JEPQ) tracks ---------------------------------------- and the iShares ESG Aware MSCI USA ETF (ESGU) tracks MSCI USA ESG Focus Index. JPMorgan Nasdaq Equity Premium Income ETF has $8.40 billion in assets, iShares ESG Aware MSCI USA ETF has $13.32 billion. JEPQ has an expense ratio of 0.35% and ESGU charges 0.15%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Blend.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
FlexShares STOXX US ESG Select Index Fund (ESG): ETF Research Reports
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
iShares ESG Aware MSCI USA ETF (ESGU): ETF Research Reports
JPMorgan Nasdaq Equity Premium Income ETF (JEPQ): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Taking into account individual holdings, Amazon.com Inc Common Stock Usd 0.01 (AMZN) accounts for about 5.14% of the fund's total assets, followed by Apple Inc (AAPL) and Microsoft Corp Common Stock Usd 0.00000625 (MSFT). Click to get this free report FlexShares STOXX US ESG Select Index Fund (ESG): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report iShares ESG Aware MSCI USA ETF (ESGU): ETF Research Reports JPMorgan Nasdaq Equity Premium Income ETF (JEPQ): ETF Research Reports To read this article on Zacks.com click here. Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
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Click to get this free report FlexShares STOXX US ESG Select Index Fund (ESG): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report iShares ESG Aware MSCI USA ETF (ESGU): ETF Research Reports JPMorgan Nasdaq Equity Premium Income ETF (JEPQ): ETF Research Reports To read this article on Zacks.com click here. Taking into account individual holdings, Amazon.com Inc Common Stock Usd 0.01 (AMZN) accounts for about 5.14% of the fund's total assets, followed by Apple Inc (AAPL) and Microsoft Corp Common Stock Usd 0.00000625 (MSFT). Making its debut on 07/13/2016, smart beta exchange traded fund FlexShares STOXX US ESG Select Index Fund (ESG) provides investors broad exposure to the Style Box - Large Cap Blend category of the market.
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Click to get this free report FlexShares STOXX US ESG Select Index Fund (ESG): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report iShares ESG Aware MSCI USA ETF (ESGU): ETF Research Reports JPMorgan Nasdaq Equity Premium Income ETF (JEPQ): ETF Research Reports To read this article on Zacks.com click here. Taking into account individual holdings, Amazon.com Inc Common Stock Usd 0.01 (AMZN) accounts for about 5.14% of the fund's total assets, followed by Apple Inc (AAPL) and Microsoft Corp Common Stock Usd 0.00000625 (MSFT). Making its debut on 07/13/2016, smart beta exchange traded fund FlexShares STOXX US ESG Select Index Fund (ESG) provides investors broad exposure to the Style Box - Large Cap Blend category of the market.
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Taking into account individual holdings, Amazon.com Inc Common Stock Usd 0.01 (AMZN) accounts for about 5.14% of the fund's total assets, followed by Apple Inc (AAPL) and Microsoft Corp Common Stock Usd 0.00000625 (MSFT). Click to get this free report FlexShares STOXX US ESG Select Index Fund (ESG): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report iShares ESG Aware MSCI USA ETF (ESGU): ETF Research Reports JPMorgan Nasdaq Equity Premium Income ETF (JEPQ): ETF Research Reports To read this article on Zacks.com click here. Making its debut on 07/13/2016, smart beta exchange traded fund FlexShares STOXX US ESG Select Index Fund (ESG) provides investors broad exposure to the Style Box - Large Cap Blend category of the market.
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12035.0
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2023-12-16 18:00:00 UTC
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Wall St futures inch up as investors pin hopes on Fed rate cuts
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AAPL
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https://www.nasdaq.com/articles/wall-st-futures-inch-up-as-investors-pin-hopes-on-fed-rate-cuts
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nan
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nan
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For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
Futures up: Dow 0.06%, S&P 0.07%, Nasdaq 0.03%
Dec 19 (Reuters) - U.S. stock index futures edged higher on Tuesday, building on strong gains in recent weeks as investors continued to bet on a policy pivot by the Federal Reserve next year.
The benchmark S&P 500 .SPX trades just 1.2% shy of its all-time closing high as traders price in an aggressive timetable for interest rate cuts next year after Fed Chair Jerome Powell said last week the historic tightening of monetary policy is likely over.
Despite attempts by policymakers to temper the optimism since, traders have priced in a 67% chance of the Fed cutting rates by 25 basis points in March, as per the CMEGroup's FedWatch tool, and cuts of 143 bps by December 2024. FEDWATCH
The S&P 500 marked a seventh straight week of gains on Friday, its longest winning streak since 2017, while the blue-chip Dow .DJI is trading near all-time highs.
Housing starts number for November is due at 8:30 a.m. ET. Investors are awaiting a slew of economic data this week, with focus on the final reading of third-quarter GDP on Thursday, followed by monthly personal consumption expenditure index (PCE) on Friday, the Fed's preferred inflation gauge.
San Francisco Fed President Mary Daly said on Monday that cuts to the U.S. central bank's benchmark rate are likely be appropriate next year because of an improvement in inflation this year, the Wall Street Journal reported.
Fed Atlanta President Raphael Bostic and Fed Chicago President Austan Goolsbee are scheduled to speak later in the day. Daly and Bostic are voting members in the FOMC's rate-setting committee next year.
At 5:36 a.m. ET, Dow e-minis 1YMcv1 were up 21 points, or 0.06%, S&P 500 e-minis EScv1 were up 3.25 points, or 0.07%, and Nasdaq 100 e-minis NQcv1 were up 4.5 points, or 0.03%.
Apple shares AAPL.O were flat in premarket trading after the company said it would pause sales of its Series 9 and Ultra 2 smartwatches in the United States from this week, as it deals with a patent dispute over the technology that enables the blood oxygen feature on the devices.
PepsiCo PEP.O slipped 0.6% after J.P. Morgan downgraded the stock to "neutral" from "overweight".
Plug Power PLUG.O fell 3.4% after Piper Sandler downgraded the hydrogen fuel cell firm to "underweight".
(Reporting by Sruthi Shankar in Bengaluru; Editing by Maju Samuel)
((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2787;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple shares AAPL.O were flat in premarket trading after the company said it would pause sales of its Series 9 and Ultra 2 smartwatches in the United States from this week, as it deals with a patent dispute over the technology that enables the blood oxygen feature on the devices. The benchmark S&P 500 .SPX trades just 1.2% shy of its all-time closing high as traders price in an aggressive timetable for interest rate cuts next year after Fed Chair Jerome Powell said last week the historic tightening of monetary policy is likely over. Investors are awaiting a slew of economic data this week, with focus on the final reading of third-quarter GDP on Thursday, followed by monthly personal consumption expenditure index (PCE) on Friday, the Fed's preferred inflation gauge.
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Apple shares AAPL.O were flat in premarket trading after the company said it would pause sales of its Series 9 and Ultra 2 smartwatches in the United States from this week, as it deals with a patent dispute over the technology that enables the blood oxygen feature on the devices. Futures up: Dow 0.06%, S&P 0.07%, Nasdaq 0.03% Dec 19 (Reuters) - U.S. stock index futures edged higher on Tuesday, building on strong gains in recent weeks as investors continued to bet on a policy pivot by the Federal Reserve next year. Fed Atlanta President Raphael Bostic and Fed Chicago President Austan Goolsbee are scheduled to speak later in the day.
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Apple shares AAPL.O were flat in premarket trading after the company said it would pause sales of its Series 9 and Ultra 2 smartwatches in the United States from this week, as it deals with a patent dispute over the technology that enables the blood oxygen feature on the devices. Futures up: Dow 0.06%, S&P 0.07%, Nasdaq 0.03% Dec 19 (Reuters) - U.S. stock index futures edged higher on Tuesday, building on strong gains in recent weeks as investors continued to bet on a policy pivot by the Federal Reserve next year. The benchmark S&P 500 .SPX trades just 1.2% shy of its all-time closing high as traders price in an aggressive timetable for interest rate cuts next year after Fed Chair Jerome Powell said last week the historic tightening of monetary policy is likely over.
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Apple shares AAPL.O were flat in premarket trading after the company said it would pause sales of its Series 9 and Ultra 2 smartwatches in the United States from this week, as it deals with a patent dispute over the technology that enables the blood oxygen feature on the devices. The benchmark S&P 500 .SPX trades just 1.2% shy of its all-time closing high as traders price in an aggressive timetable for interest rate cuts next year after Fed Chair Jerome Powell said last week the historic tightening of monetary policy is likely over. Despite attempts by policymakers to temper the optimism since, traders have priced in a 67% chance of the Fed cutting rates by 25 basis points in March, as per the CMEGroup's FedWatch tool, and cuts of 143 bps by December 2024.
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12036.0
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2023-12-16 18:00:00 UTC
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49.1% of Warren Buffett's $373 Billion Portfolio Is Invested in 3 Artificial Intelligence (AI) Stocks
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AAPL
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https://www.nasdaq.com/articles/49.1-of-warren-buffetts-%24373-billion-portfolio-is-invested-in-3-artificial-intelligence-ai
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nan
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nan
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Warren Buffett has led the Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) for more than 50 years. Between 1965 (when he took control of Berkshire) and 2022, the shares delivered a whopping 3,787,464% gain.
That translates to a 19.8% compound annual return, which is about twice the return of the benchmark S&P 500 index. It could have turned an investment of just $100 in 1965 into more than $3.7 million today. By comparison, the same investment in the S&P 500 at that time would have grown to just $24,700.
Buffett has a simple, but effective strategy
The simplest investment strategies are often the best. Buffett likes to buy stakes in profitable companies that are delivering steady growth, especially if they have strong management teams. He also favors companies returning money to shareholders through dividends and stock buybacks.
He combines those attributes with a long time horizon, which allows the effects of compound growth to build his portfolio's value.
Buffett certainly doesn't chase the lateststock market trends even those as strong as artificial intelligence (AI), which whipped investors into a frenzy throughout 2023. That said, Berkshire does own several AI stocks, even if AI isn't the reason Buffett and his team originally purchased them.
Investors might be surprised to know the following three AI stocks account for a whopping 49.1% of Berkshire's $373 billion portfolio of publicly traded stocks.
Image source: The Motley Fool.
1. Snowflake: 0.3% of Berkshire Hathaway's portfolio
Snowflake (NYSE: SNOW) is a leading provider of cloud computing services to businesses. It only represents 0.3% of Berkshire's portfolio, but it's quickly becoming one of the most direct AI plays owned by the investment company.
Snowflake's Data Cloud was revolutionary when it launched in 2018. It helps large, complex organizations aggregate their data from different cloud providers so it's all in one place for maximum visibility. From there, companies can use powerful analytics tools to draw valuable insights from the data.
Snowflake recently launched Cortex, a brand new platform featuring AI tools to complement its cloud services. It Document AI service uses a large language model to help businesses extract valuable insights from data in unstructured formats like contracts or invoices. Then there is Universal Search, which allows users to find critical information within Snowflake using natural language instead of programming language, so even non-technical employees can draw value from their organization's data.
Cortex also includes a generative AI-powered chatbot called Snowflake Copilot, which serves as a virtual assistant. It's capable of turning text-based prompts into computer code, which can rapidly speed up software development.
Snowflake continues to expand its workforce, with its research and development department growing the fastest. That bodes well for future product releases on the AI front, which will create new opportunities to generate revenue. The company expects to bring in $2.6 billion for its fiscal 2024 (which ends Jan. 31), but it isn't profitable, nor does it pay a dividend.
Berkshire's decision to invest in Snowflake stock was likely made by a portfolio manager rather than by Buffett himself. Nonetheless, it's shaping up to be a great long-term AI play.
2. Amazon: 0.4% of Berkshire Hathaway's portfolio
Amazon (NASDAQ: AMZN) is one of the most diverse technology companies in the world, with dominant positions in industries like e-commerce, cloud computing, streaming, and digital advertising. Now, it's quickly becoming one of the most diverse opportunities in AI.
Amazon is focused on delivering the widest possible range of AI products and services to businesses through its cloud computing arm, Amazon Web Services (AWS). The company has already launched its own data center chips, Trainium and Inferentia, which are designed to compete with Nvidia's industry-leading hardware. Plus, AWS offers businesses a growing number of large language models to accelerate the development of AI applications.
In fact, Amazon recently made a $4 billion investment into leading AI start-up Anthropic. As part of the deal, AWS will be Anthropic's primary cloud provider, and Anthropic will train its future models on Amazon's chips. Plus, Anthropic will make those models available to AWS customers, which will help differentiate the cloud platform from its competitors.
The cloud might be Amazon's most lucrative AI opportunity, but it isn't its only one. The company uses an AI recommendation engine on Amazon.com to show customers products they are most likely to buy. It also uses AI on its Prime streaming service during top broadcasts like the NFL's Thursday Night Football; it ingests millions of data points from each game to display key statistics that keep viewers informed at the highest possible level.
Berkshire Hathaway purchased Amazon stock in 2019, and its position is relatively small. But Amazon is on track to generate $523 billion in revenue in 2023, which is even more than Apple (NASDAQ: AAPL), the largest company in the world. Given Amazon's growing exposure to AI, Berkshire might wish it owned more of the stock when it looks back in a few years.
3. Apple: 48.4% of Berkshire Hathaway's portfolio
Apple is worth over $3 trillion, making it the most valuable company in the world. Berkshire started betting on the company in 2016, and it has since plowed about $35 billion into the stock. Its position is worth $181 billion as of this writing, so it accounts for a whopping 48.4% of Berkshire's stock portfolio.
That isn't surprising because Apple has all the attributes Buffett loves. Its chief executive officer, Tim Cook, has led the company to consistent growth and monster profits since he took the job in 2011. Plus, Apple returns enormous amounts of that money to shareholders, including $15 billion in dividends and $77.5 billion in stock buybacks during its fiscal 2023 (which ended Sept. 30) alone.
Consumers and investors know Apple best for hardware like the iPhone, iPad, and Mac personal computers. But the company subtly uses AI throughout all of them. AI powers the autocorrect feature on all Apple keyboards, and the Siri voice assistant. Apple Music also relies on AI to learn what listeners like, so it can feed them more of that content to keep them engaged.
Plus, the Apple-designed A17 Pro chip inside the new iPhone 15 lineup can power those AI workloads on-device faster than ever. As more smartphone features use AI, putting next-generation chips in those devices can reduce their dependence on external data centers for computing power, which leads to a faster, more seamless experience for the user.
Speculation also is swirling that Apple is pumping millions of dollars per day into AI units across the company -- units that are building everything from conversational AI models to generative AI applications, capable of crafting text, images, and videos. Reports suggest one such application, Ajax GPT, outperforms OpenAI's GPT 3.5 model -- the original technology that powered ChatGPT.
That suggests Apple is rapidly catching up to some of the leading developers in the AI industry, which could lead to powerful new features for its products in the coming years. Buffett and his team might look like rock stars if Apple becomes a real player in AI, given Berkshire's gigantic position in the stock.
Should you invest $1,000 in Snowflake right now?
Before you buy stock in Snowflake, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Snowflake wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
See the 10 stocks
*Stock Advisor returns as of December 11, 2023
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Apple, Berkshire Hathaway, Nvidia, and Snowflake. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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But Amazon is on track to generate $523 billion in revenue in 2023, which is even more than Apple (NASDAQ: AAPL), the largest company in the world. It Document AI service uses a large language model to help businesses extract valuable insights from data in unstructured formats like contracts or invoices. It also uses AI on its Prime streaming service during top broadcasts like the NFL's Thursday Night Football; it ingests millions of data points from each game to display key statistics that keep viewers informed at the highest possible level.
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But Amazon is on track to generate $523 billion in revenue in 2023, which is even more than Apple (NASDAQ: AAPL), the largest company in the world. Snowflake: 0.3% of Berkshire Hathaway's portfolio Snowflake (NYSE: SNOW) is a leading provider of cloud computing services to businesses. Speculation also is swirling that Apple is pumping millions of dollars per day into AI units across the company -- units that are building everything from conversational AI models to generative AI applications, capable of crafting text, images, and videos.
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But Amazon is on track to generate $523 billion in revenue in 2023, which is even more than Apple (NASDAQ: AAPL), the largest company in the world. That said, Berkshire does own several AI stocks, even if AI isn't the reason Buffett and his team originally purchased them. Speculation also is swirling that Apple is pumping millions of dollars per day into AI units across the company -- units that are building everything from conversational AI models to generative AI applications, capable of crafting text, images, and videos.
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But Amazon is on track to generate $523 billion in revenue in 2023, which is even more than Apple (NASDAQ: AAPL), the largest company in the world. Should you invest $1,000 in Snowflake right now? Before you buy stock in Snowflake, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Snowflake wasn't one of them.
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12037.0
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2023-12-16 17:00:00 UTC
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2 Top Warren Buffett Stocks to Buy Right Now
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AAPL
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https://www.nasdaq.com/articles/2-top-warren-buffett-stocks-to-buy-right-now-14
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Warren Buffett is considered among the greatest investors of all time, having helped Berkshire Hathaway generate a compound annual gain of 19.8% from 1965 to 2022, smashing the S&P 500's total return of 9.9%. With Buffett's long track record, investors would be wise to read about his techniques, which he generously shares in his annual letter to shareholders. In recent years, Buffett has highlighted the importance of retained earnings.
Let's delve into the retained earnings formula, explore why Buffett favors this metric, and highlight two stocks in Berkshire's portfolio that excel at it.
What are retained earnings?
Retained earnings is a line item on the balance sheet demonstrating a company's accumulated profits over its lifetime. It is calculated by taking a company's net lifetime earnings and subtracting its dividends paid (and any net losses). Companies can use retained earnings to expand, make acquisitions, pay down debt, and repurchase their stock.
Buffett prefers to simplify the metric by focusing only on a company's annual earnings and dividends paid. That is because share repurchases can significantly distort the metric you see on the balance sheet. One of Buffett's favorite stocks, Apple, has surprisingly low lifetime retained earnings, at -$214 million. This is because of Apple's sheer number of share repurchases through the constructive retirement method, which assumes the shares will never be reissued, affecting retained earnings. Notably, Apple spent $77.5 billion on share repurchases in its fiscal year 2023 ended Sept. 30.
Two Warren Buffett stocks that excel in retained earnings
Beyond best-in-class Apple, two stocks in Berkshire's portfolio also excel in retained earnings: Bank of America (NYSE: BAC) and American Express (NYSE: AXP). In what is likely more than a mere coincidence, those two stocks are Berkshire's second- and third-largest holdings behind Apple, respectively.
First, Bank of America is the second-largest bank in the world by market capitalization, totaling about $265 billion. Over the trailing 12 months, Bank of America generated $30.5 billion in net income and paid roughly $9 billion in total dividends, resulting in retained earnings topping $21.5 billion during that time frame.
With its retained earnings, Bank of America has aggressively repurchased its stock -- retiring more than 18% of its shares outstanding over the past five years. Buffett recently wrote: "The math isn't complicated: When the share count goes down, your interest in our many businesses goes up. Every small bit helps if repurchases are made at value-accretive prices."
Nonetheless, despite Bank of America's share repurchases and a higher-than-average annual dividend yield of 2.9%, its stock has only generated a total return (price appreciation plus dividends) of 55% over the past five years, trailing the benchmark S&P 500's trailing return of 97%.
Bank stocks have underperformed recently either due to self-inflicted wounds like scandals around opening fake accounts or macroeconomic events largely out of a bank's control, like rising interest rates. Nonetheless, using the common valuation metric for bank stocks of price-to-book ratio, Bank of America currently trades at 1, meaning the market isn't placing a premium on its net assets like it does competitor JPMorgan Chase's price-to-book ratio of 1.6. Additionally, Bank of America's five-year price-to-book ratio average is 1.1, suggesting it might be slightly underpriced based on recent history.
Image source: The Motley Fool.
Next, let's look at the global financial services company American Express, a company Berkshire Hathaway first purchased in 1991, and which generated $8 billion in net income over the trailing 12 months. With an annual dividend yield of 1.3%, the company paid $1.7 billion in dividends to its shareholders. As a result, American Express produced roughly $6.3 billion in retained earnings.
Like Bank of America, American Express is aggressively buying back its stock with retained earnings, lowering its shares outstanding by 14% over the past five years. During that time, American Express outpaced its larger competitors by market cap, Mastercard and Visa, in stock buybacks (those companies repurchased 9% and 8%, respectively).
In addition to its share repurchases, American Express has acquired five fintech companies since 2019 -- all private companies for undisclosed prices. The strategy has proven helpful in fueling revenue growth as the company most recently set a sixth consecutive quarterly record, generating $15.4 billion for the third quarter of 2023.
Finally, American Express stock appears attractive when assessed against its competitors through the widely used valuation metric price-to-earnings (P/E) ratio. With a P/E multiple of about 17, American Express stands out as notably undervalued compared to Mastercard and Visa with P/E ratios of 36 and 31, respectively.
Are these two Warren Buffett stocks worth buying?
In 2020, Buffett wrote: "Retained earnings have propelled American business throughout our country's history. What worked for Carnegie and Rockefeller has, over the years, worked its magic for millions of shareholders as well."
These two stocks, plus Apple, make up roughly 65% of Berkshire's $370 billion stock portfolio, meaning they are likely some of Buffett's favorite stocks. Given Berkshire's past success, investors would be smart to follow the Oracle of Omaha's strategy and consider adding Bank of America and American Express to their portfolios.
Should you invest $1,000 in Bank of America right now?
Before you buy stock in Bank of America, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Bank of America wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
See the 10 stocks
*Stock Advisor returns as of December 11, 2023
JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. American Express is an advertising partner of The Ascent, a Motley Fool company. Bank of America is an advertising partner of The Ascent, a Motley Fool company. Collin Brantmeyer has positions in Apple, Berkshire Hathaway, Mastercard, and Visa. The Motley Fool has positions in and recommends Apple, Bank of America, Berkshire Hathaway, JPMorgan Chase, Mastercard, and Visa. The Motley Fool recommends the following options: long January 2025 $370 calls on Mastercard and short January 2025 $380 calls on Mastercard. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Warren Buffett is considered among the greatest investors of all time, having helped Berkshire Hathaway generate a compound annual gain of 19.8% from 1965 to 2022, smashing the S&P 500's total return of 9.9%. Like Bank of America, American Express is aggressively buying back its stock with retained earnings, lowering its shares outstanding by 14% over the past five years. Given Berkshire's past success, investors would be smart to follow the Oracle of Omaha's strategy and consider adding Bank of America and American Express to their portfolios.
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Two Warren Buffett stocks that excel in retained earnings Beyond best-in-class Apple, two stocks in Berkshire's portfolio also excel in retained earnings: Bank of America (NYSE: BAC) and American Express (NYSE: AXP). Over the trailing 12 months, Bank of America generated $30.5 billion in net income and paid roughly $9 billion in total dividends, resulting in retained earnings topping $21.5 billion during that time frame. The Motley Fool has positions in and recommends Apple, Bank of America, Berkshire Hathaway, JPMorgan Chase, Mastercard, and Visa.
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Two Warren Buffett stocks that excel in retained earnings Beyond best-in-class Apple, two stocks in Berkshire's portfolio also excel in retained earnings: Bank of America (NYSE: BAC) and American Express (NYSE: AXP). Like Bank of America, American Express is aggressively buying back its stock with retained earnings, lowering its shares outstanding by 14% over the past five years. Before you buy stock in Bank of America, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Bank of America wasn't one of them.
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These two stocks, plus Apple, make up roughly 65% of Berkshire's $370 billion stock portfolio, meaning they are likely some of Buffett's favorite stocks. Before you buy stock in Bank of America, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Bank of America wasn't one of them. The Motley Fool has positions in and recommends Apple, Bank of America, Berkshire Hathaway, JPMorgan Chase, Mastercard, and Visa.
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12038.0
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2023-12-16 15:00:00 UTC
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TSMC to promote from within after chairman retires next year
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AAPL
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https://www.nasdaq.com/articles/tsmc-to-promote-from-within-after-chairman-retires-next-year
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nan
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Adds details and quotes from paragraph 2
TAIPEI, Dec 19 (Reuters) - TSMC 2330.TW, the world's largest contract chipmaker, said on Tuesday that its board had recommended that current CEO and Vice Chairman C.C. Wei succeed Mark Liu who will be retiring next year as chairman.
Company veteran Liu became Taiwan Semiconductor Manufacturing Co's TSM.N chairman in 2018 after founder Morris Chang, who remains the senior statesman of Taiwan's chip industry, retired.
Liu, who joined TSMC in 1993, said he would like to put his "decades of semiconductor experience to other use, spend more time with my family, and start the next chapter of my life", according to a company statement.
"I am confident that TSMC will continue to perform outstandingly in the years to come."
The TSMC board's Nominating, Corporate Governance and Sustainability Committee recommended that Wei succeed Liu, subject to the election of the incoming board in June 2024.
Wei, who has a doctorate in electrical engineering from Yale University, has been on the company's board since 2017 and joined TSMC in 1998.
TSMC is a major supplier to companies like Apple and Nvidia.
(Reporting by Ben Blanchard; Editing by Jacqueline Wong and Bernadette Baum)
((ben.blanchard@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Adds details and quotes from paragraph 2 TAIPEI, Dec 19 (Reuters) - TSMC 2330.TW, the world's largest contract chipmaker, said on Tuesday that its board had recommended that current CEO and Vice Chairman C.C. Liu, who joined TSMC in 1993, said he would like to put his "decades of semiconductor experience to other use, spend more time with my family, and start the next chapter of my life", according to a company statement. Wei, who has a doctorate in electrical engineering from Yale University, has been on the company's board since 2017 and joined TSMC in 1998.
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Wei succeed Mark Liu who will be retiring next year as chairman. Company veteran Liu became Taiwan Semiconductor Manufacturing Co's TSM.N chairman in 2018 after founder Morris Chang, who remains the senior statesman of Taiwan's chip industry, retired. The TSMC board's Nominating, Corporate Governance and Sustainability Committee recommended that Wei succeed Liu, subject to the election of the incoming board in June 2024.
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Company veteran Liu became Taiwan Semiconductor Manufacturing Co's TSM.N chairman in 2018 after founder Morris Chang, who remains the senior statesman of Taiwan's chip industry, retired. Liu, who joined TSMC in 1993, said he would like to put his "decades of semiconductor experience to other use, spend more time with my family, and start the next chapter of my life", according to a company statement. The TSMC board's Nominating, Corporate Governance and Sustainability Committee recommended that Wei succeed Liu, subject to the election of the incoming board in June 2024.
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Adds details and quotes from paragraph 2 TAIPEI, Dec 19 (Reuters) - TSMC 2330.TW, the world's largest contract chipmaker, said on Tuesday that its board had recommended that current CEO and Vice Chairman C.C. Wei succeed Mark Liu who will be retiring next year as chairman. The TSMC board's Nominating, Corporate Governance and Sustainability Committee recommended that Wei succeed Liu, subject to the election of the incoming board in June 2024.
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12039.0
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2023-12-16 04:00:00 UTC
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US STOCKS-Wall Street ends higher, extending rate-cut rally
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-ends-higher-extending-rate-cut-rally
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By Stephen Culp
NEW YORK, Dec 18 (Reuters) - U.S. stocks gained ground on Monday as market participants parsed mounting expectations of interest rate cuts from the Federal Reserve in the coming year and looked ahead to a week of crucial economic data.
A broad but modest rally boosted the S&P 500 and the Nasdaq to solid gains, while the Dow ended flat.
"Markets are heading in the direction of the Fed beginning to cut interest rates next year," said Tom Hainlin, national investment strategist at U.S. Bank Wealth Management in Minneapolis. "The data, whether it’s inflation, consumer spending or the labor market, are not ... deteriorating too fast or running too hot, so that Goldilocks scenario continues to play out."
Wall Street continues to build on seven straight weeks of gains, the S&P 500's longest weekly winning streak since 2017.
The S&P 500 is now about 1.2% shy of its all-time closing high, amid growing optimism regarding policy rate cuts in 2024, a fervor that Fed policy makers attempted to rein in on Monday.
Chicago Fed President Austan Goolsbee warned that the central bank has not pre-committed to cutting rates anytime soon, while Cleveland Fed President Loretta Mester said financial markets had got "a little bit ahead" of the central bank with respect to the timing and extent of interest rate cuts.
Even so, financial markets have priced in a 63.4% likelihood that the central bank will lower its Fed funds target rate by 25 basis points at its March monetary policy meeting, according to CME's FedWatch tool.
"There’s still a disconnect between investors pricing in five to six cuts next year and the Fed dots that show three," Hainlin added. "Markets continue to run ahead of the Fed and it seems to imply that it’s less important how many cuts, just that there’s going to be cuts."
Later in the week, the Commerce Department is expected to release its third and final take on third-quarter GDP on Thursday, to be followed by its broad-ranging Personal Consumption Expenditures (PCE) report on Friday, which will cover income growth, consumer spending, and crucially, inflation.
The Dow Jones Industrial Average .DJI held steady at 37,306.02, the S&P 500 .SPX gained 21.37 points, or 0.45%, to 4,740.56 and the Nasdaq Composite .IXIC added 90.89 points, or 0.61%, to 14,904.81.
Of the 11 major sectors in the S&P 500, communication services .SPLRCL advanced the most, with real estate .SPLRCR and utilities .SPLRCU ending the session red.
Mounting attacks by militant groups on ships in the Red Sea sent crude prices higher over supply concerns, which in turn boosted energy stocks .SPNY, which have largely been left behind by the recent rally.
S&P 500 energy stocks added 0.8%.
United States Steel X.N jumped 26.1% to a more than 12-year high after Japan's Nippon Steel 5401.Tannounced it would buy the steelmaker in a $14.9 billion deal including debt.
Apple AAPL.O dipped 0.9% as China's ban on the company's iPhones and other foreign-made gadgets gathered momentum.
VF Corp VFC.N slid 7.8% following its announcement that it was investigating "unauthorized" activity on its computer systems, which disrupted some of its business, including the ability to fulfill orders on its e-commerce site.
Advancing issues outnumbered declining ones on the NYSE by a 1.12-to-1 ratio; on Nasdaq, a 1.15-to-1 ratio favored decliners.
The S&P 500 posted 31 new 52-week highs and 2 new lows; the Nasdaq Composite recorded 132 new highs and 107 new lows.
Volume on U.S. exchanges was 11.75 billion shares, compared with the 11.88 billion average for the full session over the last 20 trading days.
(Reporting by Stephen Culp in New York Additional reporting by Sruthi Shankar and Johann M Cherian in Bengaluru Editing by Maju Samuel and Matthew Lewis)
((stephen.culp@thomsonreuters.com; 646-223-6076;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple AAPL.O dipped 0.9% as China's ban on the company's iPhones and other foreign-made gadgets gathered momentum. By Stephen Culp NEW YORK, Dec 18 (Reuters) - U.S. stocks gained ground on Monday as market participants parsed mounting expectations of interest rate cuts from the Federal Reserve in the coming year and looked ahead to a week of crucial economic data. Even so, financial markets have priced in a 63.4% likelihood that the central bank will lower its Fed funds target rate by 25 basis points at its March monetary policy meeting, according to CME's FedWatch tool.
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Apple AAPL.O dipped 0.9% as China's ban on the company's iPhones and other foreign-made gadgets gathered momentum. By Stephen Culp NEW YORK, Dec 18 (Reuters) - U.S. stocks gained ground on Monday as market participants parsed mounting expectations of interest rate cuts from the Federal Reserve in the coming year and looked ahead to a week of crucial economic data. "Markets are heading in the direction of the Fed beginning to cut interest rates next year," said Tom Hainlin, national investment strategist at U.S. Bank Wealth Management in Minneapolis.
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Apple AAPL.O dipped 0.9% as China's ban on the company's iPhones and other foreign-made gadgets gathered momentum. By Stephen Culp NEW YORK, Dec 18 (Reuters) - U.S. stocks gained ground on Monday as market participants parsed mounting expectations of interest rate cuts from the Federal Reserve in the coming year and looked ahead to a week of crucial economic data. "Markets are heading in the direction of the Fed beginning to cut interest rates next year," said Tom Hainlin, national investment strategist at U.S. Bank Wealth Management in Minneapolis.
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Apple AAPL.O dipped 0.9% as China's ban on the company's iPhones and other foreign-made gadgets gathered momentum. By Stephen Culp NEW YORK, Dec 18 (Reuters) - U.S. stocks gained ground on Monday as market participants parsed mounting expectations of interest rate cuts from the Federal Reserve in the coming year and looked ahead to a week of crucial economic data. "Markets continue to run ahead of the Fed and it seems to imply that it’s less important how many cuts, just that there’s going to be cuts."
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12040.0
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2023-12-16 04:00:00 UTC
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After Hours Most Active for Dec 18, 2023 : PACB, AAPL, VTIP, EDAP, FTNT, AMZN, HPE, SKT, VZ, MRK, BVN, PFE
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-dec-18-2023-%3A-pacb-aapl-vtip-edap-ftnt-amzn-hpe-skt-vz-mrk-bvn
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The NASDAQ 100 After Hours Indicator is down -14.14 to 16,715.66. The total After hours volume is currently 109,710,697 shares traded.
The following are the most active stocks for the after hours session:
Pacific Biosciences of California, Inc. (PACB) is -0.03 at $9.16, with 4,409,695 shares traded. As reported in the last short interest update the days to cover for PACB is 7.507765; this calculation is based on the average trading volume of the stock.
Apple Inc. (AAPL) is -0.17 at $195.72, with 3,864,763 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Vanguard Short-Term Inflation-Protected Securities Index Fund (VTIP) is -0.02 at $48.02, with 3,375,711 shares traded. This represents a 3.19% increase from its 52 Week Low.
EDAP TMS S.A. (EDAP) is unchanged at $5.00, with 3,132,663 shares traded. As reported by Zacks, the current mean recommendation for EDAP is in the "strong buy range".
Fortinet, Inc. (FTNT) is unchanged at $56.11, with 2,447,079 shares traded. FTNT's current last sale is 96.74% of the target price of $58.
Amazon.com, Inc. (AMZN) is -0.24 at $153.83, with 2,293,457 shares traded., following a 52-week high recorded in today's regular session.
Hewlett Packard Enterprise Company (HPE) is -0.04 at $16.75, with 2,237,291 shares traded. HPE's current last sale is 93.06% of the target price of $18.
Tanger Inc. (SKT) is unchanged at $27.90, with 2,141,915 shares traded. SKT's current last sale is 116.25% of the target price of $24.
Verizon Communications Inc. (VZ) is unchanged at $37.67, with 2,088,052 shares traded. VZ's current last sale is 91.88% of the target price of $41.
Merck & Company, Inc. (MRK) is unchanged at $106.04, with 1,859,336 shares traded. As reported by Zacks, the current mean recommendation for MRK is in the "buy range".
Buenaventura Mining Company Inc. (BVN) is -0.28 at $12.82, with 1,662,949 shares traded., following a 52-week high recorded in today's regular session.
Pfizer, Inc. (PFE) is -0.06 at $27.00, with 1,445,536 shares traded. PFE's current last sale is 77.14% of the target price of $35.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc. (AAPL) is -0.17 at $195.72, with 3,864,763 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". As reported in the last short interest update the days to cover for PACB is 7.507765; this calculation is based on the average trading volume of the stock.
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Apple Inc. (AAPL) is -0.17 at $195.72, with 3,864,763 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 109,710,697 shares traded.
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Apple Inc. (AAPL) is -0.17 at $195.72, with 3,864,763 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 109,710,697 shares traded.
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Apple Inc. (AAPL) is -0.17 at $195.72, with 3,864,763 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The following are the most active stocks for the after hours session:
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12041.0
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2023-12-16 04:00:00 UTC
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Technology Sector Update for 12/18/2023: PCT, ADBE, AAPL, EBIX
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AAPL
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https://www.nasdaq.com/articles/technology-sector-update-for-12-18-2023%3A-pct-adbe-aapl-ebix
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nan
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nan
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Tech stocks were mixed late Monday afternoon, with the Technology Select Sector SPDR Fund (XLK) rising 0.5% and the SPDR S&P Semiconductor ETF (XSD) shedding 0.1%.
The Philadelphia Semiconductor index was fractionally lower.
In corporate news, PureCycle Technologies (PCT) shares tumbled 43% after its flagship purification plant in Ohio was shut down due to mechanical problems. The company said the facility is currently under maintenance.
Adobe (ADBE) and Figma said they were terminating their planned $20 billion merger because there's no "clear path" to get clearance from EU and UK regulators. Adobe shares rose 2.4%.
Apple (AAPL) will pause US sales of its Series 9 and Ultra 2 smartwatches from this week as it awaits a decision related to the US International Trade Commission's order that may potentially ban imports of the devices, several media outlets reported Monday. Apple shares were shedding 0.8%.
Ebix (EBIX) sank 63% after the company said it filed for Chapter 11 bankruptcy protection.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) will pause US sales of its Series 9 and Ultra 2 smartwatches from this week as it awaits a decision related to the US International Trade Commission's order that may potentially ban imports of the devices, several media outlets reported Monday. In corporate news, PureCycle Technologies (PCT) shares tumbled 43% after its flagship purification plant in Ohio was shut down due to mechanical problems. Adobe (ADBE) and Figma said they were terminating their planned $20 billion merger because there's no "clear path" to get clearance from EU and UK regulators.
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Apple (AAPL) will pause US sales of its Series 9 and Ultra 2 smartwatches from this week as it awaits a decision related to the US International Trade Commission's order that may potentially ban imports of the devices, several media outlets reported Monday. Adobe shares rose 2.4%. Apple shares were shedding 0.8%.
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Apple (AAPL) will pause US sales of its Series 9 and Ultra 2 smartwatches from this week as it awaits a decision related to the US International Trade Commission's order that may potentially ban imports of the devices, several media outlets reported Monday. Tech stocks were mixed late Monday afternoon, with the Technology Select Sector SPDR Fund (XLK) rising 0.5% and the SPDR S&P Semiconductor ETF (XSD) shedding 0.1%. Ebix (EBIX) sank 63% after the company said it filed for Chapter 11 bankruptcy protection.
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Apple (AAPL) will pause US sales of its Series 9 and Ultra 2 smartwatches from this week as it awaits a decision related to the US International Trade Commission's order that may potentially ban imports of the devices, several media outlets reported Monday. The Philadelphia Semiconductor index was fractionally lower. Adobe shares rose 2.4%.
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12042.0
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2023-12-16 04:00:00 UTC
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Wall Street ends higher, extending rate-cut rally
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AAPL
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https://www.nasdaq.com/articles/wall-street-ends-higher-extending-rate-cut-rally
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nan
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nan
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By Stephen Culp
NEW YORK, Dec 18 (Reuters) - U.S. stocks gained ground on Monday as market participants parsed mounting expectations of interest rate cuts from the Federal Reserve in the coming year and looked ahead to a week of crucial economic data.
A broad but modest rally boosted the S&P 500 and the Nasdaq to solid gains, while the Dow ended flat.
"Markets are heading in the direction of the Fed beginning to cut interest rates next year," said Tom Hainlin, national investment strategist at U.S. Bank Wealth Management in Minneapolis. "The data, whether it’s inflation, consumer spending or the labor market, are not ... deteriorating too fast or running too hot, so that Goldilocks scenario continues to play out."
Wall Street continues to build on seven straight weeks of gains, the S&P 500's longest weekly winning streak since 2017.
The S&P 500 is now about 1.2% shy of its all-time closing high, amid growing optimism regarding policy rate cuts in 2024, a fervor that Fed policy makers attempted to rein in on Monday.
Chicago Fed President Austan Goolsbee warned that the central bank has not pre-committed to cutting rates anytime soon, while Cleveland Fed President Loretta Mester said financial markets had got "a little bit ahead" of the central bank with respect to the timing and extent of interest rate cuts.
Even so, financial markets have priced in a 63.4% likelihood that the central bank will lower its Fed funds target rate by 25 basis points at its March monetary policy meeting, according to CME's FedWatch tool.
"There’s still a disconnect between investors pricing in five to six cuts next year and the Fed dots that show three," Hainlin added. "Markets continue to run ahead of the Fed and it seems to imply that it’s less important how many cuts, just that there’s going to be cuts."
Later in the week, the Commerce Department is expected to release its third and final take on third-quarter GDP on Thursday, to be followed by its broad-ranging Personal Consumption Expenditures (PCE) report on Friday, which will cover income growth, consumer spending, and crucially, inflation.
The Dow Jones Industrial Average .DJI held steady at 37,306.02, the S&P 500 .SPX gained 21.37 points, or 0.45%, to 4,740.56 and the Nasdaq Composite .IXIC added 90.89 points, or 0.61%, to 14,904.81.
Of the 11 major sectors in the S&P 500, communication services .SPLRCL advanced the most, with real estate .SPLRCR and utilities .SPLRCU ending the session red.
Mounting attacks by militant groups on ships in the Red Sea sent crude prices higher over supply concerns, which in turn boosted energy stocks .SPNY, which have largely been left behind by the recent rally.
S&P 500 energy stocks added 0.8%.
United States Steel X.N jumped 26.1% to a more than 12-year high after Japan's Nippon Steel 5401.Tannounced it would buy the steelmaker in a $14.9 billion deal including debt.
Apple AAPL.O dipped 0.9% as China's ban on the company's iPhones and other foreign-made gadgets gathered momentum.
VF Corp VFC.N slid 7.8% following its announcement that it was investigating "unauthorized" activity on its computer systems, which disrupted some of its business, including the ability to fulfill orders on its e-commerce site.
Advancing issues outnumbered declining ones on the NYSE by a 1.12-to-1 ratio; on Nasdaq, a 1.15-to-1 ratio favored decliners.
The S&P 500 posted 31 new 52-week highs and 2 new lows; the Nasdaq Composite recorded 132 new highs and 107 new lows.
Volume on U.S. exchanges was 11.75 billion shares, compared with the 11.88 billion average for the full session over the last 20 trading days.
(Reporting by Stephen Culp in New York Additional reporting by Sruthi Shankar and Johann M Cherian in Bengaluru Editing by Maju Samuel and Matthew Lewis)
((stephen.culp@thomsonreuters.com; 646-223-6076;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple AAPL.O dipped 0.9% as China's ban on the company's iPhones and other foreign-made gadgets gathered momentum. By Stephen Culp NEW YORK, Dec 18 (Reuters) - U.S. stocks gained ground on Monday as market participants parsed mounting expectations of interest rate cuts from the Federal Reserve in the coming year and looked ahead to a week of crucial economic data. Even so, financial markets have priced in a 63.4% likelihood that the central bank will lower its Fed funds target rate by 25 basis points at its March monetary policy meeting, according to CME's FedWatch tool.
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Apple AAPL.O dipped 0.9% as China's ban on the company's iPhones and other foreign-made gadgets gathered momentum. By Stephen Culp NEW YORK, Dec 18 (Reuters) - U.S. stocks gained ground on Monday as market participants parsed mounting expectations of interest rate cuts from the Federal Reserve in the coming year and looked ahead to a week of crucial economic data. "Markets are heading in the direction of the Fed beginning to cut interest rates next year," said Tom Hainlin, national investment strategist at U.S. Bank Wealth Management in Minneapolis.
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Apple AAPL.O dipped 0.9% as China's ban on the company's iPhones and other foreign-made gadgets gathered momentum. By Stephen Culp NEW YORK, Dec 18 (Reuters) - U.S. stocks gained ground on Monday as market participants parsed mounting expectations of interest rate cuts from the Federal Reserve in the coming year and looked ahead to a week of crucial economic data. "Markets are heading in the direction of the Fed beginning to cut interest rates next year," said Tom Hainlin, national investment strategist at U.S. Bank Wealth Management in Minneapolis.
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Apple AAPL.O dipped 0.9% as China's ban on the company's iPhones and other foreign-made gadgets gathered momentum. By Stephen Culp NEW YORK, Dec 18 (Reuters) - U.S. stocks gained ground on Monday as market participants parsed mounting expectations of interest rate cuts from the Federal Reserve in the coming year and looked ahead to a week of crucial economic data. "Markets continue to run ahead of the Fed and it seems to imply that it’s less important how many cuts, just that there’s going to be cuts."
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12043.0
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2023-12-16 04:00:00 UTC
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Apple To Halt Sale Of Watch Series 9 And Ultra 2
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AAPL
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https://www.nasdaq.com/articles/apple-to-halt-sale-of-watch-series-9-and-ultra-2
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nan
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nan
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(RTTNews) - Tech giant Apple Inc. (AAPL) has announced that it will halt sales of its flagship Apple Watch models in the United States.
According to 9to5Mac, the Apple Watch Series 9 and Apple Watch Ultra 2 will no longer be available to purchase from Apple starting later this week.
The Apple Watch Ultra 2 and Apple Watch Series 9 will no longer be available to order from Apple's website in the U.S. after 3 p.m. ET on Thursday, December 21. In-store inventory will no longer be available from Apple retail locations after December 24.
The decision is based on an ITC ruling related to a patent dispute between Apple and medical technology company Masimo around the Apple Watch's blood oxygen sensor technology.
The International Trade Commission announced its ruling in October, upholding a judge's decision from January. This sent the case to the Biden administration for a 60-day Presidential Review Period.
During this process, President Biden could veto the ruling, although this has not yet occurred. The Presidential Review Period expires on December 25, and Apple is making this announcement today to "preemptively" take steps to comply with the ITC's decision.
In a statement, Masimo said the ban "demonstrates that even the world's most powerful company must abide by the law."
"The ITC found that Apple stole Masimo's patented pulse oximetry technology, which measures blood oxygen," the company said. "The ITC undertook a thorough legal process and its expert judgment in this matter should be respected, protecting intellectual property rights and maintaining public trust in the United States' patent system."
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - Tech giant Apple Inc. (AAPL) has announced that it will halt sales of its flagship Apple Watch models in the United States. The Presidential Review Period expires on December 25, and Apple is making this announcement today to "preemptively" take steps to comply with the ITC's decision. "The ITC found that Apple stole Masimo's patented pulse oximetry technology, which measures blood oxygen," the company said.
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(RTTNews) - Tech giant Apple Inc. (AAPL) has announced that it will halt sales of its flagship Apple Watch models in the United States. According to 9to5Mac, the Apple Watch Series 9 and Apple Watch Ultra 2 will no longer be available to purchase from Apple starting later this week. The Apple Watch Ultra 2 and Apple Watch Series 9 will no longer be available to order from Apple's website in the U.S. after 3 p.m.
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(RTTNews) - Tech giant Apple Inc. (AAPL) has announced that it will halt sales of its flagship Apple Watch models in the United States. According to 9to5Mac, the Apple Watch Series 9 and Apple Watch Ultra 2 will no longer be available to purchase from Apple starting later this week. The Apple Watch Ultra 2 and Apple Watch Series 9 will no longer be available to order from Apple's website in the U.S. after 3 p.m.
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(RTTNews) - Tech giant Apple Inc. (AAPL) has announced that it will halt sales of its flagship Apple Watch models in the United States. According to 9to5Mac, the Apple Watch Series 9 and Apple Watch Ultra 2 will no longer be available to purchase from Apple starting later this week. The Apple Watch Ultra 2 and Apple Watch Series 9 will no longer be available to order from Apple's website in the U.S. after 3 p.m.
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12044.0
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2023-12-16 02:00:00 UTC
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US STOCKS-Wall St builds on rally as Fed euphoria lingers
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-builds-on-rally-as-fed-euphoria-lingers
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nan
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nan
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By Stephen Culp
NEW YORK, Dec 18 (Reuters) - U.S. stocks advanced on Monday as market participants parsed mounting expectations of interest rate cuts from the Federal Reserve in the coming year and looked ahead to a week of crucial economic data.
All three major U.S. stock indexes gained ground in a broad but modest rally, with the S&P 500 and the Nasdaq advancing the most and the Dow inching toward yet another all-time closing high, posting nominal gains.
Wall Street continues to build on seven straight weeks of gains, the S&P 500's longest weekly winning streak since 2017, fueled by optimism of policy rate cuts in 2024, a fervor that Fed policy makers attempted to rein in on Monday.
The S&P 500 was last about 1.1% shy of its all-time record close, reached in January 2022.
"It's a carry-over from the seven-week advance that we’ve seen, reflecting the confirmation by the Fed that they are likely finished raising rates and that they will start to cut interest rates at least by the second quarter of 2024," said Sam Stovall, chief investment strategist of CFRA Research in New York. "But trees don’t grow to the sky, so sooner or later stocks will take a breather and digest some of these gains."
Chicago Fed President Austan Goolsbee warned that the central bank has not pre-committed to cutting rates anytime soon, while Cleveland Fed President Loretta Mester said financial markets had got "a little bit ahead" of the central bank with respect to the timing and extent of interest rate cuts.
Even so, financial markets have priced in a 63.4% likelihood that the central bank will lower its Fed funds target rate by 25 basis points at its March monetary policy meeting, according to CME's FedWatch tool.
"The Fed would like the market to respond in a more measured fashion, while also reminding investors that since the Fed is data-dependent, there's no guarantee that what we think today will actually come to fruition," Stovall added.
Later in the week, as the Christmas holiday draws near, the Commerce Department is expected to release its third and final take on third-quarter GDP on Thursday, to be followed by its broad-ranging Personal Consumption Expenditures (PCE) report on Friday, which will cover income growth, consumer spending, and crucially, inflation.
At 2:07 p.m. EST, the Dow Jones Industrial Average .DJI rose 19.2 points, or 0.05%, to 37,324.36, the S&P 500 .SPX gained 26.72 points, or 0.57%, to 4,745.91 and the Nasdaq Composite .IXIC added 107.49 points, or 0.73%, to 14,921.41.
Of the 11 major sectors in the S&P 500, communication services .SPLRCL were up the most, with real estate .SPLRCR suffering the biggest percentage drop.
Mounting attacks by militant groups on ships in the Red Sea sent crude prices higher over supply concerns, which in turn boosted energy stocks .SPNY, which have largely been left behind by the recent rally.
S&P 500 energy stocks were last up 1.1%.
United States Steel X.N jumped 27.2% to a more than 12-year high after Japan's Nippon Steel 5401.Tannounced it would buy the steelmaker in a $14.9 billion deal including debt.
Apple AAPL.O dipped 0.7% as China's ban on the company's iPhones and other foreign-made gadgets gathered momentum.
VF Corp VFC.N slid 7.6% after the Vans sneaker maker said it was investigating "unauthorized" activity on its computer systems, an incident that disrupted some of its business, including the ability to fulfill orders on its e-commerce site.
Advancing issues outnumbered declining ones on the NYSE by a 1.20-to-1 ratio; on Nasdaq, a 1.09-to-1 ratio favored decliners.
The S&P 500 posted 29 new 52-week highs and two new lows; the Nasdaq Composite recorded 110 new highs and 90 new lows.
(Reporting by Stephen Culp in New York Additional reporting by Sruthi Shankar and Johann M Cherian in Bengaluru Editing by Maju Samuel and Matthew Lewis)
((stephen.culp@thomsonreuters.com; 646-223-6076;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple AAPL.O dipped 0.7% as China's ban on the company's iPhones and other foreign-made gadgets gathered momentum. By Stephen Culp NEW YORK, Dec 18 (Reuters) - U.S. stocks advanced on Monday as market participants parsed mounting expectations of interest rate cuts from the Federal Reserve in the coming year and looked ahead to a week of crucial economic data. Even so, financial markets have priced in a 63.4% likelihood that the central bank will lower its Fed funds target rate by 25 basis points at its March monetary policy meeting, according to CME's FedWatch tool.
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Apple AAPL.O dipped 0.7% as China's ban on the company's iPhones and other foreign-made gadgets gathered momentum. By Stephen Culp NEW YORK, Dec 18 (Reuters) - U.S. stocks advanced on Monday as market participants parsed mounting expectations of interest rate cuts from the Federal Reserve in the coming year and looked ahead to a week of crucial economic data. All three major U.S. stock indexes gained ground in a broad but modest rally, with the S&P 500 and the Nasdaq advancing the most and the Dow inching toward yet another all-time closing high, posting nominal gains.
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Apple AAPL.O dipped 0.7% as China's ban on the company's iPhones and other foreign-made gadgets gathered momentum. By Stephen Culp NEW YORK, Dec 18 (Reuters) - U.S. stocks advanced on Monday as market participants parsed mounting expectations of interest rate cuts from the Federal Reserve in the coming year and looked ahead to a week of crucial economic data. All three major U.S. stock indexes gained ground in a broad but modest rally, with the S&P 500 and the Nasdaq advancing the most and the Dow inching toward yet another all-time closing high, posting nominal gains.
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Apple AAPL.O dipped 0.7% as China's ban on the company's iPhones and other foreign-made gadgets gathered momentum. By Stephen Culp NEW YORK, Dec 18 (Reuters) - U.S. stocks advanced on Monday as market participants parsed mounting expectations of interest rate cuts from the Federal Reserve in the coming year and looked ahead to a week of crucial economic data. All three major U.S. stock indexes gained ground in a broad but modest rally, with the S&P 500 and the Nasdaq advancing the most and the Dow inching toward yet another all-time closing high, posting nominal gains.
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12045.0
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2023-12-16 02:00:00 UTC
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Technology Sector Update for 12/18/2023: ADBE, AAPL, EBIX
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AAPL
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https://www.nasdaq.com/articles/technology-sector-update-for-12-18-2023%3A-adbe-aapl-ebix
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nan
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nan
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Tech stocks were mixed Monday afternoon, with the Technology Select Sector SPDR Fund (XLK) rising 0.3% and the SPDR S&P Semiconductor ETF (XSD) shedding 0.5%.
The Philadelphia Semiconductor index fell 0.4%.
In corporate news, Adobe (ADBE) and Figma said they were terminating their planned $20 billion merger because there's no "clear path" to get clearance from EU and UK regulators. Adobe shares rose 2.4%.
Apple (AAPL) will pause US sales of its Series 9 and Ultra 2 smartwatches from this week as it awaits a decision related to the US International Trade Commission's order that may potentially ban imports of the devices, several media outlets reported Monday. Apple shares were shedding 0.7%.
Ebix (EBIX) sank 64% after the company said it filed for Chapter 11 bankruptcy protection.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) will pause US sales of its Series 9 and Ultra 2 smartwatches from this week as it awaits a decision related to the US International Trade Commission's order that may potentially ban imports of the devices, several media outlets reported Monday. Tech stocks were mixed Monday afternoon, with the Technology Select Sector SPDR Fund (XLK) rising 0.3% and the SPDR S&P Semiconductor ETF (XSD) shedding 0.5%. In corporate news, Adobe (ADBE) and Figma said they were terminating their planned $20 billion merger because there's no "clear path" to get clearance from EU and UK regulators.
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Apple (AAPL) will pause US sales of its Series 9 and Ultra 2 smartwatches from this week as it awaits a decision related to the US International Trade Commission's order that may potentially ban imports of the devices, several media outlets reported Monday. Adobe shares rose 2.4%. Apple shares were shedding 0.7%.
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Apple (AAPL) will pause US sales of its Series 9 and Ultra 2 smartwatches from this week as it awaits a decision related to the US International Trade Commission's order that may potentially ban imports of the devices, several media outlets reported Monday. Tech stocks were mixed Monday afternoon, with the Technology Select Sector SPDR Fund (XLK) rising 0.3% and the SPDR S&P Semiconductor ETF (XSD) shedding 0.5%. In corporate news, Adobe (ADBE) and Figma said they were terminating their planned $20 billion merger because there's no "clear path" to get clearance from EU and UK regulators.
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Apple (AAPL) will pause US sales of its Series 9 and Ultra 2 smartwatches from this week as it awaits a decision related to the US International Trade Commission's order that may potentially ban imports of the devices, several media outlets reported Monday. Tech stocks were mixed Monday afternoon, with the Technology Select Sector SPDR Fund (XLK) rising 0.3% and the SPDR S&P Semiconductor ETF (XSD) shedding 0.5%. The Philadelphia Semiconductor index fell 0.4%.
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12046.0
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2023-12-16 00:00:00 UTC
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FOCUS-Goldman Sachs faces rocky exit from Apple credit card partnership
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AAPL
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https://www.nasdaq.com/articles/focus-goldman-sachs-faces-rocky-exit-from-apple-credit-card-partnership
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nan
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nan
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By Saeed Azhar and Lananh Nguyen
NEW YORK, Dec 18 (Reuters) - Four years after Goldman Sachs GS.N introduced a credit card with Apple AAPL.O, the Wall Street giant faces a costly exit from a partnership that is seen by other lenders as too risky and unprofitable.
In searching for a buyer for its share of the partnership, Goldman will face pressure from bidders to reduce the value of its stake in order to make the price more attractive, according to two sources familiar with the matter who declined to be identified discussing potential talks.
Goldman does not break out how much its stake is worth.
The expected unwinding of the Apple-Goldman partnership is another blow for CEO David Solomon's consumer strategy, which aimed to broaden the bank's revenue beyond its traditional mainstays of trading and investment banking.
The potential writedown on the Apple card would be the latest in a string of losses from Goldman's ill-fated foray into consumer banking, analysts said. Goldman does not break out the financial details of the card business in its results.
Goldman Sachs declined to comment.
Prospective bidders will likely push Apple to change the terms of the deal, the two sources said.
They will likely seek access to Apple's proprietary credit card data, two other sources familiar with the business, said. Apple cardholders' data is not sold to third parties for marketing or advertising, according to its website.
Credit card issuers such as Synchrony Financial SYF.N, Citigroup C.N and Capital One COF.N would be logical partners to take on the venture if terms are changed, according to the two sources and another source familiar with the situation.
Synchrony declined to comment. Separately, its CEO Brian Doubles said at a conference this month that "you've got to have a really good risk-return equation" for card deals.
Citigroup C.N declined to comment. Capital One did not respond to Reuters requests for comment.
Apple recently sent a proposal that would enable Goldman to exit the contract in the next 12 to 15 months, The Wall Street Journal reported last month, citing people briefed on the matter.
Apple said it was focused on providing an "incredible experience" for customers, but declined to comment on the Goldman deal talks or terms.
'STRATEGIC ALTERNATIVES'
After scaling back its retail ambitions last year, Solomon announced in February that Goldman was looking for "strategic alternatives" for its consumer unit.
The bank began talks with Apple under former Goldman CEO Lloyd Blankfein, who left in 2018, to create a credit card that would tap into the tech giant's enormous customer base. Stephen Scherr, who led Goldman's consumer division and later became its finance chief, was among its lead negotiators.
Solomon took the helm in late 2018 and the Apple card was introduced almost a year later. By 2022, the parties had renegotiated a deal that would last until the end of the decade, according to a person familiar with the situation.
Solomon told analysts in October that the bank was trying to get rid of the "drag" on earnings from its credit card business, which also includes a partnership with General Motors.
"Our partnerships with Apple and GM are long-term contracts," Solomon said at the time. "And we don't have the unilateral right to exit those partnerships."
Analysts interpreted his comments as a signal the card operations were losing money.
When Apple first shopped the deal with potential partners, other banks including JPMorgan Chase JPM.N passed because their potential cut of profits was too small, according to one of the sources familiar with the matter and a separate source who was also aware of Apple's original proposal, who declined to be identified discussing private negotiations.
JPMorgan declined to comment.
New credit card businesses typically lose money in their early years, in part because regulations require banks to set aside about 7% of projected sales to cover expected losses, said Warren Kornfeld, senior vice president at Moody's Investors Service.
Goldman was responsible for setting aside the provisions for credit losses instead of sharing them with Apple, according to the two sources familiar with the business.
The Apple card also posed an underwriting challenge. Goldman's clients are typically wealthy individuals, and it had little experience making loans to less-affluent customers, according to analysts. As the two companies sought to boost revenue, they granted cards to customers with lower credit scores, according to one of the sources familiar with the situation.
As Goldman set aside more money for bad loans, the paper losses for its consumer business mounted, according to earnings filings.
The companies also tried to tempt new customers with the promise of "no annual fees, foreign transaction fees, or late fees," Apple said on its website.
They also introduced high-yield savings accounts for card holders in April, enabling Goldman to gather $10 billion of deposits by August, Apple said at the time.
Actual loan losses would eventually be shared among the two partners, one of the sources familiar with the business said. The business costs were also divided, with Apple paying for marketing while and Goldman handled customer service, the person said.
"Goldman had no meaningful presence in the credit card business," said Mike Taiano, vice president at Moody’s. "This was a big deal...they wanted to break into the card business, so they were probably willing to take less favorable economics."
(Reporting by Saeed Azhar and Lananh Nguyen in New York, additional reporting by Stephen Nellis in San Francisco, Nupur Anand and Tatiana Bautzer in New York; Editing by Anna Driver)
((Saeed.Azhar@thomsonreuters.com; +1 347 908-6341; Reuters Messaging: saeed.azhar.reuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Saeed Azhar and Lananh Nguyen NEW YORK, Dec 18 (Reuters) - Four years after Goldman Sachs GS.N introduced a credit card with Apple AAPL.O, the Wall Street giant faces a costly exit from a partnership that is seen by other lenders as too risky and unprofitable. In searching for a buyer for its share of the partnership, Goldman will face pressure from bidders to reduce the value of its stake in order to make the price more attractive, according to two sources familiar with the matter who declined to be identified discussing potential talks. New credit card businesses typically lose money in their early years, in part because regulations require banks to set aside about 7% of projected sales to cover expected losses, said Warren Kornfeld, senior vice president at Moody's Investors Service.
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By Saeed Azhar and Lananh Nguyen NEW YORK, Dec 18 (Reuters) - Four years after Goldman Sachs GS.N introduced a credit card with Apple AAPL.O, the Wall Street giant faces a costly exit from a partnership that is seen by other lenders as too risky and unprofitable. In searching for a buyer for its share of the partnership, Goldman will face pressure from bidders to reduce the value of its stake in order to make the price more attractive, according to two sources familiar with the matter who declined to be identified discussing potential talks. New credit card businesses typically lose money in their early years, in part because regulations require banks to set aside about 7% of projected sales to cover expected losses, said Warren Kornfeld, senior vice president at Moody's Investors Service.
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By Saeed Azhar and Lananh Nguyen NEW YORK, Dec 18 (Reuters) - Four years after Goldman Sachs GS.N introduced a credit card with Apple AAPL.O, the Wall Street giant faces a costly exit from a partnership that is seen by other lenders as too risky and unprofitable. When Apple first shopped the deal with potential partners, other banks including JPMorgan Chase JPM.N passed because their potential cut of profits was too small, according to one of the sources familiar with the matter and a separate source who was also aware of Apple's original proposal, who declined to be identified discussing private negotiations. Goldman was responsible for setting aside the provisions for credit losses instead of sharing them with Apple, according to the two sources familiar with the business.
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By Saeed Azhar and Lananh Nguyen NEW YORK, Dec 18 (Reuters) - Four years after Goldman Sachs GS.N introduced a credit card with Apple AAPL.O, the Wall Street giant faces a costly exit from a partnership that is seen by other lenders as too risky and unprofitable. Credit card issuers such as Synchrony Financial SYF.N, Citigroup C.N and Capital One COF.N would be logical partners to take on the venture if terms are changed, according to the two sources and another source familiar with the situation. Apple said it was focused on providing an "incredible experience" for customers, but declined to comment on the Goldman deal talks or terms.
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12047.0
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2023-12-16 00:00:00 UTC
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EXCLUSIVE-US lawmakers warn Biden to probe EU targeting of tech firms -letter
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AAPL
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https://www.nasdaq.com/articles/exclusive-us-lawmakers-warn-biden-to-probe-eu-targeting-of-tech-firms-letter
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nan
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nan
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By Martin Coulter
LONDON, Dec 18 (Reuters) - A bipartisan group of lawmakers has written to U.S. President Joe Biden, warning European technology regulation are unfairly targeting U.S. companies and not including many Chinese or EU firms, according to a letter seen by Reuters on Monday.
Under the European Union's Digital Markets Act (DMA), five major U.S. tech companies — Alphabet GOOGL.O, Amazon AMZN.O, Apple AAPL.O, Meta META.O and Microsoft MSFT.O — were designated "gatekeeper" service providers.
From March 2024, these companies — as well as TikTok's Chinese owner ByteDance — will be required to make their messaging apps work with rivals and let users choose which ones they want pre-installed on their devices.
In a letter seen by Reuters, 21 members of the U.S. House of Representatives warned the new rules could damage American economic and security interests and called on Biden to secure commitments from the EU the rules will be enforced fairly.
"Securing our leadership in this sector is imperative for our economy and American workers," the letter said. "The designation of leading U.S. companies as 'gatekeepers' threatens to upend the U.S. economy, diminish our global leadership in the digital sphere, and jeopardize the security of consumers."
The European Commission and the White House did not immediately respond to requests for comment.
Europe is seen by some experts as the global leader in tech regulation. The bloc's DMA and the DSA (Digital Services Act) are attempts at tailoring laws to target the Big Tech companies.
The letter questioned why Chinese companies Alibaba, Huawei, and Tencent had avoided designation and why European companies had avoided any scrutiny. "The EU inexplicably failed to designate any European retailers, content-sharing platforms, payment firms, and telcos," it said.
Signatories of the letter — including Representative Lou Correa, a Democrat, and Thomas Massie, a Republican, — called on Biden to seek assurances from EU lawmakers the DMA will not be unfairly used to target U.S. companies.
The U.S. government has previously warned the EU against over-regulating American technology companies. When the DMA was still being drafted, the White House National Security Council told EU representatives that using the bill to solely target American companies would hinder their ability to work together.
Since 2021, the EU-U.S. Trade and Technology Council (TTC) has sought to harmonise technology regulation on either side of the Atlantic, with lawmakers seeking consensus on topics such as supply chain security, export controls and foreign investment.
How the EU's Digital Markets Act challenges Big Tech https://www.reuters.com/technology/how-eus-digital-markets-act-challenges-big-tech-2023-09-06/
(Reporting by Martin Coulter; Editing by Franklin Paul and Lisa Shumaker)
((martin.coulter@thomsonreuters.com; Follow me on Twitter @martinjbcoulter; +447436546182;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Under the European Union's Digital Markets Act (DMA), five major U.S. tech companies — Alphabet GOOGL.O, Amazon AMZN.O, Apple AAPL.O, Meta META.O and Microsoft MSFT.O — were designated "gatekeeper" service providers. Signatories of the letter — including Representative Lou Correa, a Democrat, and Thomas Massie, a Republican, — called on Biden to seek assurances from EU lawmakers the DMA will not be unfairly used to target U.S. companies. When the DMA was still being drafted, the White House National Security Council told EU representatives that using the bill to solely target American companies would hinder their ability to work together.
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Under the European Union's Digital Markets Act (DMA), five major U.S. tech companies — Alphabet GOOGL.O, Amazon AMZN.O, Apple AAPL.O, Meta META.O and Microsoft MSFT.O — were designated "gatekeeper" service providers. By Martin Coulter LONDON, Dec 18 (Reuters) - A bipartisan group of lawmakers has written to U.S. President Joe Biden, warning European technology regulation are unfairly targeting U.S. companies and not including many Chinese or EU firms, according to a letter seen by Reuters on Monday. In a letter seen by Reuters, 21 members of the U.S. House of Representatives warned the new rules could damage American economic and security interests and called on Biden to secure commitments from the EU the rules will be enforced fairly.
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Under the European Union's Digital Markets Act (DMA), five major U.S. tech companies — Alphabet GOOGL.O, Amazon AMZN.O, Apple AAPL.O, Meta META.O and Microsoft MSFT.O — were designated "gatekeeper" service providers. By Martin Coulter LONDON, Dec 18 (Reuters) - A bipartisan group of lawmakers has written to U.S. President Joe Biden, warning European technology regulation are unfairly targeting U.S. companies and not including many Chinese or EU firms, according to a letter seen by Reuters on Monday. In a letter seen by Reuters, 21 members of the U.S. House of Representatives warned the new rules could damage American economic and security interests and called on Biden to secure commitments from the EU the rules will be enforced fairly.
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Under the European Union's Digital Markets Act (DMA), five major U.S. tech companies — Alphabet GOOGL.O, Amazon AMZN.O, Apple AAPL.O, Meta META.O and Microsoft MSFT.O — were designated "gatekeeper" service providers. In a letter seen by Reuters, 21 members of the U.S. House of Representatives warned the new rules could damage American economic and security interests and called on Biden to secure commitments from the EU the rules will be enforced fairly. The bloc's DMA and the DSA (Digital Services Act) are attempts at tailoring laws to target the Big Tech companies.
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12048.0
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2023-12-16 00:00:00 UTC
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Can the 'Magnificent Seven' Continue to Lead the Market Higher in 2024?
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AAPL
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https://www.nasdaq.com/articles/can-the-magnificent-seven-continue-to-lead-the-market-higher-in-2024
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nan
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nan
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M
arket commentators love tortured acronyms or catchy phrases when it comes to big tech stocks. First it was FANG, which was reputedly first used by CNBC's Jim Cramer. That stood for Facebook (now Meta: META), Amazon (AMZN), Netflix (NFLX), and Google (now Alphabet: GOOG, GOOGL). Then, a few years later, Apple (AAPL) was added to the mix, and we got the less catchy, but probably more representative, FAANG. Then corporate expansion and a shifting tech landscape caught up with that one too. Facebook and Google changed their names to better reflect the fact that they were no longer one-product affairs, streaming wars made Netflix less of a rapid growth stock, and the once moribund Microsoft (MSFT) took off under Satya Nadella, forcing their inclusion. That led to MAMAA: Meta, Apple, Microsoft, Amazon, and Alphabet becoming the phrase du jour.
Recently, though, with everything having to be adjusted to allow for the AI revolution and with EVs becoming much more mainstream, the most popular phrase for big tech stocks has become “The Magnificent Seven,” adding Nvidia (NVDA) and Tesla (TSLA) alongside Amazon, Apple, Microsoft, Alphabet, and Meta. That one is credited to a Bank of America (BAC) analyst, but the very fact that over the last few years there have been so many iterations of the way analysts and pundits refer to outperforming big tech stocks shows why such things are of little use.
There is always a group of outperformers but is a fluid thing, almost by definition. Tech is about meeting trends and grabbing opportunities, and while doing that well can lead to rapid, short-term success, there is no guarantee that even the best companies will maintain their outperformance for any length of time. Nor is it true that, as MSFT showed all too well, one that missed out for a while cannot burst back onto the scene with a change of management and/or focus.
So the obvious answer to the question, “Can the Magnificent Seven continue to lead the market in 2024?” is no. That is not because those seven stock can’t or won’t do well. In fact, if the bond and stock markets are right and the Fed cuts rates early next year, they almost certainly will perform well.
But I say the answer is "no" is because if the ever-changing history of who's in this group tells us anything, it is that the name of the group itself will probably have changed twelve months from now. Maybe it will have to include at least one company making weight-loss drugs, or the long-awaited and oft-predicted rise of fuel cells will force the inclusion of a name from that industry, or a new social media platform could take off.
Or maybe what we will be talking about a year from now will be a stock in a field that most of us have never heard of, or have already written off. Let’s face it, how many of you were screaming about AI at this time last year when NVDA was trading at around $150 after it had lost half of its value in around a year? My guess is not that many would have imagined NVDA to have gone from $150 to almost $500 in twelve months.
Then there is the very real chance that the market will fall next year. That isn’t out of the realm of the possible, for several reasons: The fight against inflation is still ongoing and may not have as happy an ending as is now generally assumed. There are two major wars in strategically important parts of the world which could yet get worse. Also, 2024 is an election year in a country where “divided” doesn’t even come close to describing the political environment, and where a win for either party will have a third of the country believing that the end of America is coming. The chance of any or all of those things derailing stocks next year is another subject for another day, but they do have to be considered.
All things considered, the chance of the “Magnificent Seven” -- as that phrase is currently understood -- leading the market higher next year is close to zero. That may be because the market doesn’t go up at all next year, or it may be because trends and developments in technology create a shifting landscape, but either way, it looks like someone will have to come up with a new acronym or cute phrase to describe next year’s stock market leaders.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Then, a few years later, Apple (AAPL) was added to the mix, and we got the less catchy, but probably more representative, FAANG. Facebook and Google changed their names to better reflect the fact that they were no longer one-product affairs, streaming wars made Netflix less of a rapid growth stock, and the once moribund Microsoft (MSFT) took off under Satya Nadella, forcing their inclusion. Recently, though, with everything having to be adjusted to allow for the AI revolution and with EVs becoming much more mainstream, the most popular phrase for big tech stocks has become “The Magnificent Seven,” adding Nvidia (NVDA) and Tesla (TSLA) alongside Amazon, Apple, Microsoft, Alphabet, and Meta.
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Then, a few years later, Apple (AAPL) was added to the mix, and we got the less catchy, but probably more representative, FAANG. That stood for Facebook (now Meta: META), Amazon (AMZN), Netflix (NFLX), and Google (now Alphabet: GOOG, GOOGL). Recently, though, with everything having to be adjusted to allow for the AI revolution and with EVs becoming much more mainstream, the most popular phrase for big tech stocks has become “The Magnificent Seven,” adding Nvidia (NVDA) and Tesla (TSLA) alongside Amazon, Apple, Microsoft, Alphabet, and Meta.
|
Then, a few years later, Apple (AAPL) was added to the mix, and we got the less catchy, but probably more representative, FAANG. Recently, though, with everything having to be adjusted to allow for the AI revolution and with EVs becoming much more mainstream, the most popular phrase for big tech stocks has become “The Magnificent Seven,” adding Nvidia (NVDA) and Tesla (TSLA) alongside Amazon, Apple, Microsoft, Alphabet, and Meta. That one is credited to a Bank of America (BAC) analyst, but the very fact that over the last few years there have been so many iterations of the way analysts and pundits refer to outperforming big tech stocks shows why such things are of little use.
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Then, a few years later, Apple (AAPL) was added to the mix, and we got the less catchy, but probably more representative, FAANG. Recently, though, with everything having to be adjusted to allow for the AI revolution and with EVs becoming much more mainstream, the most popular phrase for big tech stocks has become “The Magnificent Seven,” adding Nvidia (NVDA) and Tesla (TSLA) alongside Amazon, Apple, Microsoft, Alphabet, and Meta. But I say the answer is "no" is because if the ever-changing history of who's in this group tells us anything, it is that the name of the group itself will probably have changed twelve months from now.
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12049.0
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2023-12-16 00:00:00 UTC
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EXCLUSIVE-US lawmakers urge Biden to probe EU targeting of tech firms -letter
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AAPL
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https://www.nasdaq.com/articles/exclusive-us-lawmakers-urge-biden-to-probe-eu-targeting-of-tech-firms-letter
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nan
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nan
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By Martin Coulter
LONDON, Dec 18 (Reuters) - A bipartisan group of lawmakers has written to U.S. President Joe Biden, warning European technology regulation could threaten U.S. interests.
Under the European Union’s Digital Markets Act (DMA), five major U.S. tech companies – Alphabet GOOGL.O, Amazon AMZN.O, Apple AAPL.O, Meta META.Om and Microsoft MSFT.O -- were designated "gatekeeper" service providers.
From March 2024, these companies – as well as TikTok's Chinese owner ByteDance - will be required to make their messaging apps inter-operate with rivals and let users choose upfront which ones they want pre-installed on their devices.
In a letter shared exclusively with Reuters, 21 members of the U.S. House of Representatives warned the new rules could damage American economic and security interests, and called on Biden to secure commitments from the EU the rules will be enforced fairly.
"Securing our leadership in this sector is imperative for our economy and American workers," the letter said. "The designation of leading U.S. companies as 'gatekeepers' threatens to upend the U.S. economy, diminish our global leadership in the digital sphere, and jeopardize the security of consumers."
(Reporting by Martin Coulter, Editing by Franklin Paul)
((martin.coulter@thomsonreuters.com; Follow me on Twitter @martinjbcoulter; +447436546182;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Under the European Union’s Digital Markets Act (DMA), five major U.S. tech companies – Alphabet GOOGL.O, Amazon AMZN.O, Apple AAPL.O, Meta META.Om and Microsoft MSFT.O -- were designated "gatekeeper" service providers. By Martin Coulter LONDON, Dec 18 (Reuters) - A bipartisan group of lawmakers has written to U.S. President Joe Biden, warning European technology regulation could threaten U.S. interests. From March 2024, these companies – as well as TikTok's Chinese owner ByteDance - will be required to make their messaging apps inter-operate with rivals and let users choose upfront which ones they want pre-installed on their devices.
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Under the European Union’s Digital Markets Act (DMA), five major U.S. tech companies – Alphabet GOOGL.O, Amazon AMZN.O, Apple AAPL.O, Meta META.Om and Microsoft MSFT.O -- were designated "gatekeeper" service providers. By Martin Coulter LONDON, Dec 18 (Reuters) - A bipartisan group of lawmakers has written to U.S. President Joe Biden, warning European technology regulation could threaten U.S. interests. In a letter shared exclusively with Reuters, 21 members of the U.S. House of Representatives warned the new rules could damage American economic and security interests, and called on Biden to secure commitments from the EU the rules will be enforced fairly.
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Under the European Union’s Digital Markets Act (DMA), five major U.S. tech companies – Alphabet GOOGL.O, Amazon AMZN.O, Apple AAPL.O, Meta META.Om and Microsoft MSFT.O -- were designated "gatekeeper" service providers. By Martin Coulter LONDON, Dec 18 (Reuters) - A bipartisan group of lawmakers has written to U.S. President Joe Biden, warning European technology regulation could threaten U.S. interests. In a letter shared exclusively with Reuters, 21 members of the U.S. House of Representatives warned the new rules could damage American economic and security interests, and called on Biden to secure commitments from the EU the rules will be enforced fairly.
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Under the European Union’s Digital Markets Act (DMA), five major U.S. tech companies – Alphabet GOOGL.O, Amazon AMZN.O, Apple AAPL.O, Meta META.Om and Microsoft MSFT.O -- were designated "gatekeeper" service providers. In a letter shared exclusively with Reuters, 21 members of the U.S. House of Representatives warned the new rules could damage American economic and security interests, and called on Biden to secure commitments from the EU the rules will be enforced fairly. "Securing our leadership in this sector is imperative for our economy and American workers," the letter said.
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12050.0
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2023-12-16 00:00:00 UTC
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Dow Movers: INTC, CVX
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AAPL
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https://www.nasdaq.com/articles/dow-movers%3A-intc-cvx-3
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nan
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nan
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In early trading on Monday, shares of Chevron topped the list of the day's best performing Dow Jones Industrial Average components, trading up 1.6%. Year to date, Chevron has lost about 15.5% of its value.
And the worst performing Dow component thus far on the day is Intel, trading down 1.4%. Intel is showing a gain of 72.2% looking at the year to date performance.
Two other components making moves today are Apple, trading down 1.1%, and Merck, trading up 1.1% on the day.
VIDEO: Dow Movers: INTC, CVX
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In early trading on Monday, shares of Chevron topped the list of the day's best performing Dow Jones Industrial Average components, trading up 1.6%. And the worst performing Dow component thus far on the day is Intel, trading down 1.4%. Intel is showing a gain of 72.2% looking at the year to date performance.
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In early trading on Monday, shares of Chevron topped the list of the day's best performing Dow Jones Industrial Average components, trading up 1.6%. Year to date, Chevron has lost about 15.5% of its value. And the worst performing Dow component thus far on the day is Intel, trading down 1.4%.
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In early trading on Monday, shares of Chevron topped the list of the day's best performing Dow Jones Industrial Average components, trading up 1.6%. And the worst performing Dow component thus far on the day is Intel, trading down 1.4%. Two other components making moves today are Apple, trading down 1.1%, and Merck, trading up 1.1% on the day.
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And the worst performing Dow component thus far on the day is Intel, trading down 1.4%. Intel is showing a gain of 72.2% looking at the year to date performance. VIDEO: Dow Movers: INTC, CVX The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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12051.0
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2023-12-16 00:00:00 UTC
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US STOCKS-Oil stocks lead Wall Street higher, U.S. Steel soars on buyout deal
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AAPL
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https://www.nasdaq.com/articles/us-stocks-oil-stocks-lead-wall-street-higher-u.s.-steel-soars-on-buyout-deal
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nan
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nan
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By Sruthi Shankar and Johann M Cherian
Dec 18 (Reuters) - U.S. stock indexes edged higher on Monday, with oil stocks in the lead after mounting attacks in the Red Sea lifted crude prices, while shares of U.S. Steel rocketed after a $14.9 billion buyout deal.
The main Wall Street indexes are looking to end 2023 on a high note as signs of slowing inflation boosted expectations that the U.S. central bank will soon ease its monetary policy.
The blue-chip Dow hit an all-time high for the fourth consecutive session, while the benchmark S&P 500 and the tech-heavy Nasdaq are trading near their highest levels of the year.
Oil majors Chevron CVX.Nclimbed 1.5% and Exxon Mobil XOM.Nadded 2.0% as crude prices LCOc1, CLc1 rallied more than 3.5% after attacks by the Houthis on ships in the Red Sea raised concerns of oil supply disruptions. O/R
The S&P 500 energy sub-index .SPNYclimbed 1.9%, leading gains among the 11 major S&P sectors.
Another big gainer was United States SteelX.N, which surged 26.0% to an over 12-year high after Japan's Nippon Steel 5401.Tsaid it would buy the steelmaker in a $14.9 billion deal including debt.
Investors will focus on economic data this week including the personal consumption expenditure index (PCE) - the Fed's preferred inflation gauge - weekly jobless claims, housing starts and the final reading of the third-quarter GDP report to gauge the path of U.S. interest rates.
The benchmark S&P 500 marked a seventh straight week of gains on Friday - its longest winning streak since 2017 - fueled by optimism about a Fed policy pivot next year.
Traders are currently pricing in a 70% chance that the Fed will cut interest rates at least by 25 basis points in March, according to CME Group's FedWatch tool, even as top Fed policymakers pushed back on the ebullience.
Cleveland Fed President Loretta Mester, a voting member next year, said financial markets had got "a little bit ahead" of the central bank on when to expect interest rate cuts, as per a report.
"There's still a dislocation between a seemingly dovish pivot that the market is expecting the Federal Reserve to take, and what economists are projecting," said Keith Buchanan, senior portfolio manager at GLOBALT Investments.
"The direction is the same, it's just that the velocity of cuts and the magnitude of cuts might not be on the same page."
At 10:04 a.m. ET, the Dow Jones Industrial Average .DJI was up 10.14 points, or 0.03%, at 37,315.30, the S&P 500 .SPX was up 17.45 points, or 0.37%, at 4,736.64, and the Nasdaq Composite .IXIC was up 54.51 points, or 0.37%, at 14,868.43.
Goldman Sachs raised its forecast for the S&P 500, which it now sees ending 2024 at 5,100, while decelerating inflation and Fed easing would keep real yields low.
Among other single stocks, AppleAAPL.Oslipped 1.3% after more Chinese agencies and state-backed companies asked their staff to not bring iPhones and other foreign devices to work, a report said.
AdobeADBE.Oadded 1.6% after the Photoshop maker and Figma agreed to terminate their $20 billion merger announced last year.
VF CorpVFC.Ntumbled 8.5% after the Vans sneaker maker said it was investigating "unauthorized" activity on its computer systems, an incident that was likely to have a material impact on its business.
The S&P index recorded 23 new 52-week highs and two new lows, while the Nasdaq recorded 71 new highs and 46 new lows.
(Reporting by Sruthi Shankar and Johann M Cherian in Bengaluru; Editing by Maju Samuel)
((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2787;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Among other single stocks, AppleAAPL.Oslipped 1.3% after more Chinese agencies and state-backed companies asked their staff to not bring iPhones and other foreign devices to work, a report said. The main Wall Street indexes are looking to end 2023 on a high note as signs of slowing inflation boosted expectations that the U.S. central bank will soon ease its monetary policy. Cleveland Fed President Loretta Mester, a voting member next year, said financial markets had got "a little bit ahead" of the central bank on when to expect interest rate cuts, as per a report.
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Among other single stocks, AppleAAPL.Oslipped 1.3% after more Chinese agencies and state-backed companies asked their staff to not bring iPhones and other foreign devices to work, a report said. By Sruthi Shankar and Johann M Cherian Dec 18 (Reuters) - U.S. stock indexes edged higher on Monday, with oil stocks in the lead after mounting attacks in the Red Sea lifted crude prices, while shares of U.S. Steel rocketed after a $14.9 billion buyout deal. Cleveland Fed President Loretta Mester, a voting member next year, said financial markets had got "a little bit ahead" of the central bank on when to expect interest rate cuts, as per a report.
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Among other single stocks, AppleAAPL.Oslipped 1.3% after more Chinese agencies and state-backed companies asked their staff to not bring iPhones and other foreign devices to work, a report said. By Sruthi Shankar and Johann M Cherian Dec 18 (Reuters) - U.S. stock indexes edged higher on Monday, with oil stocks in the lead after mounting attacks in the Red Sea lifted crude prices, while shares of U.S. Steel rocketed after a $14.9 billion buyout deal. Investors will focus on economic data this week including the personal consumption expenditure index (PCE) - the Fed's preferred inflation gauge - weekly jobless claims, housing starts and the final reading of the third-quarter GDP report to gauge the path of U.S. interest rates.
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Among other single stocks, AppleAAPL.Oslipped 1.3% after more Chinese agencies and state-backed companies asked their staff to not bring iPhones and other foreign devices to work, a report said. By Sruthi Shankar and Johann M Cherian Dec 18 (Reuters) - U.S. stock indexes edged higher on Monday, with oil stocks in the lead after mounting attacks in the Red Sea lifted crude prices, while shares of U.S. Steel rocketed after a $14.9 billion buyout deal. Cleveland Fed President Loretta Mester, a voting member next year, said financial markets had got "a little bit ahead" of the central bank on when to expect interest rate cuts, as per a report.
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12052.0
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2023-12-16 00:00:00 UTC
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Apple to halt US sales of Series 9, Ultra 2 smartwatches on patent dispute
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AAPL
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https://www.nasdaq.com/articles/apple-to-halt-us-sales-of-series-9-ultra-2-smartwatches-on-patent-dispute
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nan
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nan
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Adds details, background
Dec 18 (Reuters) - Apple AAPL.O said on Monday it would pause sales of its Series 9 and Ultra 2 smartwatches in the United States from this week, as it deals with a patent dispute over the technology that enables the blood oxygen feature on the devices.
The move comes after an order in October from the U.S. International Trade Commission (ITC) that could bar Apple from importing its Apple Watches after finding the devices violate medical technology company Masimo's MASI.O patent rights.
A Presidential review period is in progress on the feature and while the review period will not end until Dec. 25, Apple is preemptively taking steps to comply should the ruling stand, the company said.
The company said it would pause sales of the Watches from its website starting Dec. 21, and from Apple retail locations after December 24.
(Reporting by Samrhitha Arunasalam in Bengaluru; Editing by Maju Samuel and Anil D'Silva)
((Samrhitha.A@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Adds details, background Dec 18 (Reuters) - Apple AAPL.O said on Monday it would pause sales of its Series 9 and Ultra 2 smartwatches in the United States from this week, as it deals with a patent dispute over the technology that enables the blood oxygen feature on the devices. The move comes after an order in October from the U.S. International Trade Commission (ITC) that could bar Apple from importing its Apple Watches after finding the devices violate medical technology company Masimo's MASI.O patent rights. The company said it would pause sales of the Watches from its website starting Dec. 21, and from Apple retail locations after December 24.
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Adds details, background Dec 18 (Reuters) - Apple AAPL.O said on Monday it would pause sales of its Series 9 and Ultra 2 smartwatches in the United States from this week, as it deals with a patent dispute over the technology that enables the blood oxygen feature on the devices. The move comes after an order in October from the U.S. International Trade Commission (ITC) that could bar Apple from importing its Apple Watches after finding the devices violate medical technology company Masimo's MASI.O patent rights. A Presidential review period is in progress on the feature and while the review period will not end until Dec. 25, Apple is preemptively taking steps to comply should the ruling stand, the company said.
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Adds details, background Dec 18 (Reuters) - Apple AAPL.O said on Monday it would pause sales of its Series 9 and Ultra 2 smartwatches in the United States from this week, as it deals with a patent dispute over the technology that enables the blood oxygen feature on the devices. The move comes after an order in October from the U.S. International Trade Commission (ITC) that could bar Apple from importing its Apple Watches after finding the devices violate medical technology company Masimo's MASI.O patent rights. (Reporting by Samrhitha Arunasalam in Bengaluru; Editing by Maju Samuel and Anil D'Silva) ((Samrhitha.A@thomsonreuters.com)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Adds details, background Dec 18 (Reuters) - Apple AAPL.O said on Monday it would pause sales of its Series 9 and Ultra 2 smartwatches in the United States from this week, as it deals with a patent dispute over the technology that enables the blood oxygen feature on the devices. The move comes after an order in October from the U.S. International Trade Commission (ITC) that could bar Apple from importing its Apple Watches after finding the devices violate medical technology company Masimo's MASI.O patent rights. A Presidential review period is in progress on the feature and while the review period will not end until Dec. 25, Apple is preemptively taking steps to comply should the ruling stand, the company said.
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12053.0
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2023-12-16 00:00:00 UTC
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3 Outstanding Stocks to Buy if Interest Rates Fall Next Year
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AAPL
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https://www.nasdaq.com/articles/3-outstanding-stocks-to-buy-if-interest-rates-fall-next-year
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nan
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nan
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There's reason to believe interest rates may decline in 2024, and that usually means it's a good idea to start investing in some interest-rate-sensitive stocks. In that line of thought, here's a look at why UPS (NYSE: UPS), Tesla (NASDAQ: TSLA), and machine vision company Cognex (NASDAQ: CGNX) are good ways to play this theme.
Why rates could fall next year
I'll start with a few words/charts on why rates could be lower. A quick look at the recent inflation data shows a continuation of a downtrend that began in the summer of 2022.
US Inflation Rate data by YCharts
The data was good enough to lower market interest rates, with the benchmark 10-year Treasury rate falling. In addition, note that one-year and two-year rates are notably lower than the six-month rate, implying that the Federal Reserve target rate will be lower in one year than in six months.
10-Year Treasury Rate data by YCharts
While there's no guarantee the bond markets are right, history suggests higher interest rates, over an extended period, will result in lower inflation.
UPS
This stock will suit investors looking for solid returns and some income. UPS will benefit from the effect lower rates will have on the economy. That should result in increased volumes, or at least increased levels of the delivery volumes that management targets. In addition, there's likely to be a positive margin mix impact as customers stop shifting to lower-cost delivery options the way they have been doing in the rising rate environment.
While it's true that UPS enjoyed a couple of boom years during the pandemic (as lockdowns drove customers into buying online), and according to Wall Street analysts, it won't get back to 2022 levels of sales of $100.3 billion until 2025, there are a couple of favorable things to bear in mind.
First, analyst forecasts have UPS generating earnings of $9.71 a share in 2024 and free cash flow (FCF) of $7.1 billion, putting the stock at 16.7 times 2024 earnings and less than 19 times FCF in 2024. Those are reasonable multiples for a stock that will be in volume recovery mode in 2024.
Second, UPS is achieving good traction in its goal of growing revenue in targeted markets like small and medium-sized businesses and healthcare. As such, it will emerge from the slowdown with a better revenue quality than when it entered it. Throw in a 4% dividend yield, and UPS is a solid choice for investors in 2024.
Tesla
Like UPS, Tesla will likely have a stronger underlying business coming out of a rising rate environment. Yes, Tesla is an automaker, meaning rate movements will impact its sales; consumers usually buy cars on credit, so monthly interest payments are a crucial part of the decision.
In contrast to the internal combustion engine (ICE) market of recent decades, the electric vehicle (EV) market is not a low-single-digit type growth market; it's high-growth and relatively early-stage. That distinction impacts the decisions CEO Elon Musk has made this year.
In response to rising rates, Tesla reduced prices to keep cars affordable and maintain market share while enabling volume growth. It's much documented that preserving market share is a crucial aim of a company in the early innings of a multiyear growth market, but what's less discussed is the importance of volume growth in reducing Tesla's cost per unit vehicle.
Image sources: Getty Images.
Volume growth justifies investment in facilities and technology that enables cost per unit vehicle cost reductions. For example, its average vehicle cost decreased from $39,500 in the fourth quarter of 2022 to $37,500 in the third quarter of 2023. That's a major plus in enabling Tesla to produce affordable cars. It stands in good stead to win market share when ICE-heavy manufacturers like Honda and General Motors cut back on plans to produce lower-cost EVs.
With lower rates, Tesla can raise prices and benefit from margin expansion after cutting its cost per vehicle on its established cars.
Cognex
This machine vision company will suit enterprising investors looking for a beaten-up stock with plenty of growth potential. Higher interest rates hit Cognex's main end markets by slowing consumer electronics sales (which impacts investment in developing new production lines that use machine vision) and ICE sales (ICE automakers are pausing investment as well). Slower consumer sales exacerbated the correction in e-commerce warehouse automation spending from the boom of previous years.
Image source: Getty Images.
All these issues hit Cognex in 2023, and its nine months of sales were down by 16% compared to the same period last year, with net income down a whopping 36%.
That said, lower rates will help all these end markets, and all it will take is a few large orders from, say, consumer electronics companies (Apple is a Cognex customer), automakers (ICE, EV, and EV battery manufacturers), or e-commerce companies and the narrative and growth trajectory of Cognex will look dramatically different than it does now.
Should you invest $1,000 in United Parcel Service right now?
Before you buy stock in United Parcel Service, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and United Parcel Service wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
See the 10 stocks
*Stock Advisor returns as of December 11, 2023
Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Cognex, and Tesla. The Motley Fool recommends General Motors and United Parcel Service and recommends the following options: long January 2025 $25 calls on General Motors. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In addition, there's likely to be a positive margin mix impact as customers stop shifting to lower-cost delivery options the way they have been doing in the rising rate environment. Yes, Tesla is an automaker, meaning rate movements will impact its sales; consumers usually buy cars on credit, so monthly interest payments are a crucial part of the decision. It stands in good stead to win market share when ICE-heavy manufacturers like Honda and General Motors cut back on plans to produce lower-cost EVs.
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In response to rising rates, Tesla reduced prices to keep cars affordable and maintain market share while enabling volume growth. Higher interest rates hit Cognex's main end markets by slowing consumer electronics sales (which impacts investment in developing new production lines that use machine vision) and ICE sales (ICE automakers are pausing investment as well). That said, lower rates will help all these end markets, and all it will take is a few large orders from, say, consumer electronics companies (Apple is a Cognex customer), automakers (ICE, EV, and EV battery manufacturers), or e-commerce companies and the narrative and growth trajectory of Cognex will look dramatically different than it does now.
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US Inflation Rate data by YCharts The data was good enough to lower market interest rates, with the benchmark 10-year Treasury rate falling. That said, lower rates will help all these end markets, and all it will take is a few large orders from, say, consumer electronics companies (Apple is a Cognex customer), automakers (ICE, EV, and EV battery manufacturers), or e-commerce companies and the narrative and growth trajectory of Cognex will look dramatically different than it does now. Before you buy stock in United Parcel Service, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and United Parcel Service wasn't one of them.
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This stock will suit investors looking for solid returns and some income. Higher interest rates hit Cognex's main end markets by slowing consumer electronics sales (which impacts investment in developing new production lines that use machine vision) and ICE sales (ICE automakers are pausing investment as well). Before you buy stock in United Parcel Service, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and United Parcel Service wasn't one of them.
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12054.0
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2023-12-16 00:00:00 UTC
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US STOCKS-Wall St on course for higher open, eyes on data
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-on-course-for-higher-open-eyes-on-data
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nan
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nan
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By Sruthi Shankar and Johann M Cherian
Dec 18 (Reuters) - Wall Street's main stock indexes were on track to open higher on Monday as investors awaited economic data later in the week that could offer insights on when the Federal Reserve could start cutting interest rates.
The main Wall Street indexes are looking to end 2023 on a high note as signs of slowing inflation and expectations that the U.S. central bank will soon ease its monetary policy attract buyers. The blue-chip Dow .DJI notched its third consecutive session of record high on Friday, while the benchmark S&P 500 .SPX marked a seventh straight week of gains in its longest winning streak since 2017.
Economic data this week include the Personal Consumption Expenditure index (PCE) - the Fed's favored inflation gauge - weekly jobless claims, housing starts and the final reading of the third-quarter GDP report.
U.S. equity markets rallied last week after the Fed left interest rates unchanged and officials' forecasts collectively priced in three quarters of a percentage point in cuts in 2024.
Traders are currently pricing in a 75% chance that the Fed will cut interest rates at least by 25 basis points in March, according to CME Group's FedWatch tool, even as top Fed policymakers pushed back on the ebullience.
Cleveland Fed President Loretta Mester, a voting member next year, said financial markets had got "a little bit ahead" of the central bank on when to expect interest rate cuts, as per a report.
"There's still a dislocation between a seemingly dovish pivot that the market is expecting the Federal Reserve to take, and what economists are projecting," said Keith Buchanan, senior portfolio manager at GLOBALT Investments.
"The direction is the same, it's just that the velocity of cuts and the magnitude of cuts might not be on the same page."
At 8:36 a.m. ET, Dow e-minis 1YMcv1 were up 58 points, or 0.15%, S&P 500 e-minis EScv1 were up 13 points, or 0.27%, and Nasdaq 100 e-minis NQcv1 were up 25 points, or 0.15%.
Meanwhile, Goldman Sachs raised its forecast for the S&P 500, which it now sees ending 2024 at 5,100, while decelerating inflation and Fed easing would keep real yields low.
Among single stocks, AppleAAPL.Oslipped 0.6% in premarket trading after more Chinese agencies and state-backed companies asked their staff to not bring iPhones and other foreign devices to work, a report said.
Oil stocks Exxon Mobil XOM.Nand Chevron CVX.Nadvanced 1.4% each, as crude prices gained over 2% after attacks by the Houthis on ships in the Red Sea raised concerns of oil supply disruptions. O/R
United States SteelX.N surged 28.7% after Japan's Nippon Steel 5401.Tsaid it would buy the steelmaker in a $14.9 billion deal including debt.
AdobeADBE.Oadded 2% after the Photoshop maker and Figma agreed to terminate their $20 billion merger announced last year.
U.S.-listed shares of NioNIO.N climbed 9.0% after the company said it had signed an agreement with CYVN Holdings, for the latter to invest $2.2 billion in the Chinese electric vehicle maker.
(Reporting by Sruthi Shankar and Johann M Cherian in Bengaluru; Editing by Maju Samuel)
((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2787;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Among single stocks, AppleAAPL.Oslipped 0.6% in premarket trading after more Chinese agencies and state-backed companies asked their staff to not bring iPhones and other foreign devices to work, a report said. By Sruthi Shankar and Johann M Cherian Dec 18 (Reuters) - Wall Street's main stock indexes were on track to open higher on Monday as investors awaited economic data later in the week that could offer insights on when the Federal Reserve could start cutting interest rates. The main Wall Street indexes are looking to end 2023 on a high note as signs of slowing inflation and expectations that the U.S. central bank will soon ease its monetary policy attract buyers.
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Among single stocks, AppleAAPL.Oslipped 0.6% in premarket trading after more Chinese agencies and state-backed companies asked their staff to not bring iPhones and other foreign devices to work, a report said. By Sruthi Shankar and Johann M Cherian Dec 18 (Reuters) - Wall Street's main stock indexes were on track to open higher on Monday as investors awaited economic data later in the week that could offer insights on when the Federal Reserve could start cutting interest rates. The main Wall Street indexes are looking to end 2023 on a high note as signs of slowing inflation and expectations that the U.S. central bank will soon ease its monetary policy attract buyers.
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Among single stocks, AppleAAPL.Oslipped 0.6% in premarket trading after more Chinese agencies and state-backed companies asked their staff to not bring iPhones and other foreign devices to work, a report said. By Sruthi Shankar and Johann M Cherian Dec 18 (Reuters) - Wall Street's main stock indexes were on track to open higher on Monday as investors awaited economic data later in the week that could offer insights on when the Federal Reserve could start cutting interest rates. U.S. equity markets rallied last week after the Fed left interest rates unchanged and officials' forecasts collectively priced in three quarters of a percentage point in cuts in 2024.
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Among single stocks, AppleAAPL.Oslipped 0.6% in premarket trading after more Chinese agencies and state-backed companies asked their staff to not bring iPhones and other foreign devices to work, a report said. By Sruthi Shankar and Johann M Cherian Dec 18 (Reuters) - Wall Street's main stock indexes were on track to open higher on Monday as investors awaited economic data later in the week that could offer insights on when the Federal Reserve could start cutting interest rates. The main Wall Street indexes are looking to end 2023 on a high note as signs of slowing inflation and expectations that the U.S. central bank will soon ease its monetary policy attract buyers.
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12055.0
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2023-12-16 00:00:00 UTC
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Some Potential 2024 Winners Reside in QQQ, QQQM
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AAPL
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https://www.nasdaq.com/articles/some-potential-2024-winners-reside-in-qqq-qqqm
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nan
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nan
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It’s the time of year when investors are treated to a slew of market predictions for the next year. The onslaught of those offerings is dizzying. Add those predictions up and it’s likely market participants can absorb hundreds of stock picks for the year ahead. That's neither efficient nor practical for many investors to have portfolios populated in the dozens or hundreds. The good news is that some of the stocks market observers are most bullish on for 2024 are found in several familiar, cost-effective ETFs. Those include the Invesco QQQ Trust (QQQ) and Invesco NASDAQ 100 ETF (QQQM).
The two Nasdaq-100 Index (NDX)-tracking ETFs have delivered stellar showings this year. They have surged 52.22% as of December 15. QQQ and QQQM may not deliver comparable performances in 2024. But more upside is possible for the ETFs next year. That's assuming predictions about some of the funds’ holdings prove accurate.
Familiar Names Could Lift QQQ, QQQM in 2024
This year, QQQ and QQQM benefited in large part from significant exposure to the magnificent seven. That group includes Apple, Alphabet (Google), Meta Platforms, Amazon.com, Nvidia, Microsoft, and Tesla. On aggregate basis, that group delivered jaw-dropping showings this year. Some analysts believe it’s possible some of the super seven could build on 2023 gains next year.
Alphabet is “expected to grow as fast as Microsoft, with earnings forecast to be up 15% in 2024, three times as quickly as Apple’s 5% growth. Yet its stock trades for just 20 times earnings, a discount to both Microsoft and Apple’s 30 times, despite gaining 50% this year,” reported Andrew Bary for Barron’s. “Investors have been worried about slowing growth in Alphabet’s cloud computing division, the threat that artificial intelligence poses to its search business, and antitrust scrutiny. Those issues look manageable.”
QQQ and QQQM have long been associated with growth investing. That's rightfully so given the ETFs’ large weights to tech and communication services stocks. But it might surprise some investors to learn the funds have some defensive exposure.
Take the case of Pepsico (PEP), which is the second-largest consumer staples holding in the ETFs behind Costco (COST).
“Fears that weight-loss drugs will curb snacking caused PepsiCo stock, at $168, to drop 7% in 2023. A confident Pepsi, though, said in October that it expects to deliver per-share earnings growth at the top of its high-single-digit annual target in 2024 after a projected 13% gain this year. And the stock trades for 20.6 times next year’s projected earnings, below its five-year average. It also yields 3% and has raised its dividend for 51 straight years, including a 10% increase this past summer,” according to Barron’s.
For more news, information, and analysis, visit the ETF Education Channel.
Read more on ETFTrends.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Alphabet is “expected to grow as fast as Microsoft, with earnings forecast to be up 15% in 2024, three times as quickly as Apple’s 5% growth. “Investors have been worried about slowing growth in Alphabet’s cloud computing division, the threat that artificial intelligence poses to its search business, and antitrust scrutiny. A confident Pepsi, though, said in October that it expects to deliver per-share earnings growth at the top of its high-single-digit annual target in 2024 after a projected 13% gain this year.
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Those include the Invesco QQQ Trust (QQQ) and Invesco NASDAQ 100 ETF (QQQM). That group includes Apple, Alphabet (Google), Meta Platforms, Amazon.com, Nvidia, Microsoft, and Tesla. And the stock trades for 20.6 times next year’s projected earnings, below its five-year average.
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It’s the time of year when investors are treated to a slew of market predictions for the next year. Familiar Names Could Lift QQQ, QQQM in 2024 This year, QQQ and QQQM benefited in large part from significant exposure to the magnificent seven. Yet its stock trades for just 20 times earnings, a discount to both Microsoft and Apple’s 30 times, despite gaining 50% this year,” reported Andrew Bary for Barron’s.
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QQQ and QQQM may not deliver comparable performances in 2024. That's assuming predictions about some of the funds’ holdings prove accurate. Yet its stock trades for just 20 times earnings, a discount to both Microsoft and Apple’s 30 times, despite gaining 50% this year,” reported Andrew Bary for Barron’s.
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12056.0
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2023-12-16 00:00:00 UTC
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The Fed Pivot Arrives: The Magnificent Seven Should Benefit
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AAPL
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https://www.nasdaq.com/articles/the-fed-pivot-arrives-the-magnificent-seven-should-benefit
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nan
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nan
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I
f there were any doubt for when the Federal Open Market Committee (FOMC) would be done with their interest rate hiking cycle, those doubts were blown away last Wednesday when the Fed not only maintained its pivotal policy rate unchanged, but also projected a reduction of 75 basis points in 2024.
Fed Chairman Jerome Powell, in the post-decision press briefing, mentioned that discussions about reducing rates were "clearly a topic of conversation" among policymakers. In other words, after eleven rate hikes over the past two years, which pushed the fed funds rate to its highest level in 22 years, the Fed just proclaimed that its efforts to fight inflation have worked. And now the central bank has given the market some confirmation that it is done with its rate hikes and is poised to initiate reductions soon.
As you can expect, stocks skyrocketed last week as investors celebrated the Fed’s gift. For the week, the S&P 500 gained 2.6% and is now less than 1.6% away from a record close set in January 2022. The Dow Jones Industrial Average added 2.7% during the week, after jumping more than 400 points on Thursday to surpass 37,000 for the first time. The Nasdaq gained 2.9% and is roughly 9% from its all-time intraday high. There is now some assurance that a year-end Santa Claus rally is now more than just a wish.
Investors don't need to look too far to find the source of the recent rally. With the Fed announcing its pivot from its hawkish stance to a dovish policy, growth stocks, particularly the "Magnificent Seven" mega-cap stocks, will now be in vogue. These mega-cap tech giants consisting of Alphabet (GOOG, GOOGL), Amazon (AMZN), Apple (AAPL), Meta Platforms (META), Microsoft (MSFT), Nvidia (NVDA) and Tesla (TSLA) will be money-makers for investors who own then today.
Some investors who have missed the massive three-month rally are wondering whether there is still room for gains in 2024. Year to date, Apple -- the largest of the bunch in terms of market cap — has retuned by 58%, while Microsoft the second largest, boasts a gain of 55%. But the impressiveness doesn’t stop there when considering that Tesla (up 134%) has doubled in value, while Meta has enjoyed a remarkable return of 170%.
There are a range of opinions as to whether there is still value to be gained in these mega-cap stocks, which have already been stellar performers. But while their collective valuation might have gotten a bit stretched, their tech leadership in the financial markets remain undeniable. The reason for their collective popularity, which can’t be overstated, stems from their exposure to high-growth technologies, such as high-end software and hardware, cloud computing and artificial intelligence.
While there are some reasons for caution as their collective valuation have soared, investors should position their portfolios to be on the right side of the pivot in 2024, especially amid clearer signs of dampening inflation risk. In that vein, the Fed has done a solid job managing inflation which has dropped to 3.7% year-over-year in November, after hitting the highest levels in decades at over 9% in mid-2022. While the inflation is not yet at the Fed’s 2% target, the Fed has just told us they are done raising rates.
The Magnificent Seven stocks, aptly coined by Bank of America analyst Michael Hartnett, have more than doubled the return of the S&P 500 over the past decade. Armed with tons of cash on the balance sheet, strong cash flows and excellent leadership, they are well-positioned to continue leading their respective markets in 2024 and making new all-time highs.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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These mega-cap tech giants consisting of Alphabet (GOOG, GOOGL), Amazon (AMZN), Apple (AAPL), Meta Platforms (META), Microsoft (MSFT), Nvidia (NVDA) and Tesla (TSLA) will be money-makers for investors who own then today. Fed Chairman Jerome Powell, in the post-decision press briefing, mentioned that discussions about reducing rates were "clearly a topic of conversation" among policymakers. The reason for their collective popularity, which can’t be overstated, stems from their exposure to high-growth technologies, such as high-end software and hardware, cloud computing and artificial intelligence.
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These mega-cap tech giants consisting of Alphabet (GOOG, GOOGL), Amazon (AMZN), Apple (AAPL), Meta Platforms (META), Microsoft (MSFT), Nvidia (NVDA) and Tesla (TSLA) will be money-makers for investors who own then today. f there were any doubt for when the Federal Open Market Committee (FOMC) would be done with their interest rate hiking cycle, those doubts were blown away last Wednesday when the Fed not only maintained its pivotal policy rate unchanged, but also projected a reduction of 75 basis points in 2024. In other words, after eleven rate hikes over the past two years, which pushed the fed funds rate to its highest level in 22 years, the Fed just proclaimed that its efforts to fight inflation have worked.
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These mega-cap tech giants consisting of Alphabet (GOOG, GOOGL), Amazon (AMZN), Apple (AAPL), Meta Platforms (META), Microsoft (MSFT), Nvidia (NVDA) and Tesla (TSLA) will be money-makers for investors who own then today. f there were any doubt for when the Federal Open Market Committee (FOMC) would be done with their interest rate hiking cycle, those doubts were blown away last Wednesday when the Fed not only maintained its pivotal policy rate unchanged, but also projected a reduction of 75 basis points in 2024. In other words, after eleven rate hikes over the past two years, which pushed the fed funds rate to its highest level in 22 years, the Fed just proclaimed that its efforts to fight inflation have worked.
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These mega-cap tech giants consisting of Alphabet (GOOG, GOOGL), Amazon (AMZN), Apple (AAPL), Meta Platforms (META), Microsoft (MSFT), Nvidia (NVDA) and Tesla (TSLA) will be money-makers for investors who own then today. In other words, after eleven rate hikes over the past two years, which pushed the fed funds rate to its highest level in 22 years, the Fed just proclaimed that its efforts to fight inflation have worked. Investors don't need to look too far to find the source of the recent rally.
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12057.0
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2023-12-16 00:00:00 UTC
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This Is Apple's Most Important Growth Product Today (Hint: It's Not the iPhone)
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AAPL
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https://www.nasdaq.com/articles/this-is-apples-most-important-growth-product-today-hint%3A-its-not-the-iphone
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nan
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nan
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The iPhone has been critical to Apple's (NASDAQ: AAPL) growth over the past 16 years, but it's no longer a growth driver. Instead, services and accessories are driving revenue increases.
In this video, Travis Hoium goes over why the iPhone is slowing and where investors should look for growth at Apple.
*Stock prices used were end-of-day prices of Dec. 6, 2023. The video was published on Dec. 8, 2023.
Should you invest $1,000 in Apple right now?
Before you buy stock in Apple, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Apple wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
See the 10 stocks
*Stock Advisor returns as of December 7, 2023
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Travis Hoium has positions in Alphabet and Apple. The Motley Fool has positions in and recommends Alphabet and Apple. The Motley Fool has a disclosure policy. Travis Hoium is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The iPhone has been critical to Apple's (NASDAQ: AAPL) growth over the past 16 years, but it's no longer a growth driver. In this video, Travis Hoium goes over why the iPhone is slowing and where investors should look for growth at Apple. The 10 stocks that made the cut could produce monster returns in the coming years.
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The iPhone has been critical to Apple's (NASDAQ: AAPL) growth over the past 16 years, but it's no longer a growth driver. Before you buy stock in Apple, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Apple wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 7, 2023 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors.
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The iPhone has been critical to Apple's (NASDAQ: AAPL) growth over the past 16 years, but it's no longer a growth driver. Before you buy stock in Apple, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Apple wasn't one of them. Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month.
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The iPhone has been critical to Apple's (NASDAQ: AAPL) growth over the past 16 years, but it's no longer a growth driver. In this video, Travis Hoium goes over why the iPhone is slowing and where investors should look for growth at Apple. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
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12058.0
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2023-12-16 00:00:00 UTC
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3 Stocks You Can Confidently Buy After a Market Downturn
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AAPL
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https://www.nasdaq.com/articles/3-stocks-you-can-confidently-buy-after-a-market-downturn-9
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nan
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nan
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Macroeconomic headwinds in 2022 caused a stock market sell-off that affected countless industries. The Nasdaq Composite index tumbled 33% throughout the year. Tech stocks were some of the hardest hit, as reductions in consumer spending meant multiple quarters of dismal earnings.
However, excitement over high-growth industries like artificial intelligence (AI) has triggered a recovery in 2023 and illustrated why a market downturn could be the best time to make a long-term investment in tech stocks. The Nasdaq Composite has surged 41% year to date, rewarding those who either held or bought at the bottom.
As a result, it's not a bad idea to get familiar with some of the best companies to invest in during a sell-off and be prepared to strike when the time is right. Here are three stocks you can confidently buy after a market downturn.
1. Nvidia
According to research firm Gartner, PC shipments fell 16% year over year in 2022. Spikes in inflation led to reductions in consumer spending on tech, with chipmakers hit hard. As a result, shares in Nvidia (NASDAQ: NVDA) plunged 50% in the 12 months leading to 2023.
However, the company came back better than ever this year, with its stock up 231% since Jan. 1 as its earnings hit new heights. The company profited from a boom in AI, which sent chip demand soaring. Nvidia's graphics processing units (GPUs) have become the preferred hardware for AI developers everywhere, with the company's revenue climbing 206% year over year in its most recent quarter (third quarter of fiscal 2024).
Data by YCharts
As a leading chipmaker, Nvidia supplies its GPUs to markets across tech. The company is an excellent option in a market downturn, as its stock will likely soar over the long term.
Additionally, the chart shows Nvidia's price-to-earnings ratio (P/E) and price-to-free cash flow ratio have both plunged since July, meaning its shares are currently trading at their cheapest position in months.
2. Apple
As the world's most valuable company, with a market cap above $3 trillion, Apple's (NASDAQ: AAPL) stock rarely goes on sale. In fact, the table shows the iPhone maker outperformed many of the biggest names in tech throughout 2022. Apple's performance amid economic challenges proved its resilience, as it became a haven for many investors.
Data by YCharts
In 2023, Apple has once again showcased its consistency. Macro headwinds have caught up with the company, as pullback from consumers led to repeated declines in product sales and a 3% year-over-year dip in revenue for fiscal 2023. Yet loyal investors continued to believe in its long-term growth, with Apple's stock up 52% year to date.
The company's nearly $100 billion in free cash flow, popular range of products and services, and considerable brand loyalty from consumers make it challenging to question Apple's ability to flourish over the next five to 10 years. Apple remains the biggest name in consumer tech and the home of a digital services business that posted revenue growth of 9% this year.
Services are another reason you can confidently invest in the tech giant, with the App Store and platforms like Apple TV+ hitting profit margins of more than 70%.
Moreover, Apple's stock has risen 377% over the last five years. Even if the company delivers half that growth over the next five years, it will still more than double the stock growth of competitors Amazon or Alphabet since 2018. As a result, a market downturn could be the perfect time to invest in this tech company and buy its stock at a bargain.
3. Microsoft
Like Apple, Microsoft's (NASDAQ: MSFT) stock often trades at a premium. However, years of consistency and stellar gains make it worth its high price tag, especially in a sell-off. The company has become a tech behemoth, with brands such as Windows, Office, Azure, and Xbox granting it lucrative positions in multiple industries.
Shares in Microsoft gained 55% this year after tumbling amid last year's market downturn. The tech giant has rallied Wall Street by heavily investing in AI. A close partnership with ChatGPT developer OpenAI allowed Microsoft to introduce AI upgrades across its product lineup as it seeks to become the go-to for consumers and businesses everywhere seeking ways to integrate AI into their daily workflows.
Microsoft has significant potential in AI, with the market projected to develop at a compound annual growth rate of 37% until at least 2030. As a result, leading positions in productivity software and cloud computing could see Microsoft profit significantly from the sector as it expands its AI offerings.
Data by YCharts
This chart shows Microsoft's forward P/E and price-to-free cash flow are high at 33 and 44, indicating its stock isn't exactly a bargain. However, both figures are significantly lower than those of other companies active in AI. Microsoft is a company you can confidently invest in at almost any time, but especially during a market downturn.
Should you invest $1,000 in Nvidia right now?
Before you buy stock in Nvidia, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Nvidia wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
See the 10 stocks
*Stock Advisor returns as of December 11, 2023
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon, Apple, Meta Platforms, Microsoft, and Nvidia. The Motley Fool recommends Gartner. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple As the world's most valuable company, with a market cap above $3 trillion, Apple's (NASDAQ: AAPL) stock rarely goes on sale. However, excitement over high-growth industries like artificial intelligence (AI) has triggered a recovery in 2023 and illustrated why a market downturn could be the best time to make a long-term investment in tech stocks. Macro headwinds have caught up with the company, as pullback from consumers led to repeated declines in product sales and a 3% year-over-year dip in revenue for fiscal 2023.
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Apple As the world's most valuable company, with a market cap above $3 trillion, Apple's (NASDAQ: AAPL) stock rarely goes on sale. Additionally, the chart shows Nvidia's price-to-earnings ratio (P/E) and price-to-free cash flow ratio have both plunged since July, meaning its shares are currently trading at their cheapest position in months. Shares in Microsoft gained 55% this year after tumbling amid last year's market downturn.
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Apple As the world's most valuable company, with a market cap above $3 trillion, Apple's (NASDAQ: AAPL) stock rarely goes on sale. As a result, a market downturn could be the perfect time to invest in this tech company and buy its stock at a bargain. Before you buy stock in Nvidia, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Nvidia wasn't one of them.
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Apple As the world's most valuable company, with a market cap above $3 trillion, Apple's (NASDAQ: AAPL) stock rarely goes on sale. Apple remains the biggest name in consumer tech and the home of a digital services business that posted revenue growth of 9% this year. Shares in Microsoft gained 55% this year after tumbling amid last year's market downturn.
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12059.0
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2023-12-16 00:00:00 UTC
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Should Vanguard S&P 500 Growth ETF (VOOG) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-vanguard-sp-500-growth-etf-voog-be-on-your-investing-radar-10
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nan
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nan
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Designed to provide broad exposure to the Large Cap Growth segment of the US equity market, the Vanguard S&P 500 Growth ETF (VOOG) is a passively managed exchange traded fund launched on 09/09/2010.
The fund is sponsored by Vanguard. It has amassed assets over $8.57 billion, making it one of the larger ETFs attempting to match the Large Cap Growth segment of the US equity market.
Why Large Cap Growth
Large cap companies usually have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.
Growth stocks have higher than average sales and earnings growth rates. While these are expected to grow faster than the broader market, they also have higher valuations. Also, growth stocks are a type of equity that carries more risk compared to others. They are likely to outperform value stocks in strong bull markets but over the longer-term, value stocks have delivered better returns than growth stocks in almost all markets.
Costs
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.10%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.01%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 38.20% of the portfolio. Healthcare and Consumer Discretionary round out the top three.
Looking at individual holdings, Apple Inc. (AAPL) accounts for about 13.97% of total assets, followed by Microsoft Corp. (MSFT) and Nvidia Corp. (NVDA).
The top 10 holdings account for about 45.86% of total assets under management.
Performance and Risk
VOOG seeks to match the performance of the S&P 500 Growth Index before fees and expenses. The S&P 500 Growth Index measures the performance of large-capitalization growth stocks.
The ETF has added roughly 28.33% so far this year and was up about 25.03% in the last one year (as of 12/18/2023). In the past 52-week period, it has traded between $206.50 and $268.56.
The ETF has a beta of 1.04 and standard deviation of 21.57% for the trailing three-year period, making it a medium risk choice in the space. With about 235 holdings, it effectively diversifies company-specific risk.
Alternatives
Vanguard S&P 500 Growth ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, VOOG is a great option for investors seeking exposure to the Style Box - Large Cap Growth segment of the market. There are other additional ETFs in the space that investors could consider as well.
The Vanguard Growth ETF (VUG) and the Invesco QQQ (QQQ) track a similar index. While Vanguard Growth ETF has $102.64 billion in assets, Invesco QQQ has $225.96 billion. VUG has an expense ratio of 0.04% and QQQ charges 0.20%.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Vanguard S&P 500 Growth ETF (VOOG): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Invesco QQQ (QQQ): ETF Research Reports
Vanguard Growth ETF (VUG): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc. (AAPL) accounts for about 13.97% of total assets, followed by Microsoft Corp. (MSFT) and Nvidia Corp. (NVDA). Click to get this free report Vanguard S&P 500 Growth ETF (VOOG): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. It has amassed assets over $8.57 billion, making it one of the larger ETFs attempting to match the Large Cap Growth segment of the US equity market.
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Click to get this free report Vanguard S&P 500 Growth ETF (VOOG): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc. (AAPL) accounts for about 13.97% of total assets, followed by Microsoft Corp. (MSFT) and Nvidia Corp. (NVDA). Designed to provide broad exposure to the Large Cap Growth segment of the US equity market, the Vanguard S&P 500 Growth ETF (VOOG) is a passively managed exchange traded fund launched on 09/09/2010.
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Click to get this free report Vanguard S&P 500 Growth ETF (VOOG): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc. (AAPL) accounts for about 13.97% of total assets, followed by Microsoft Corp. (MSFT) and Nvidia Corp. (NVDA). Designed to provide broad exposure to the Large Cap Growth segment of the US equity market, the Vanguard S&P 500 Growth ETF (VOOG) is a passively managed exchange traded fund launched on 09/09/2010.
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Looking at individual holdings, Apple Inc. (AAPL) accounts for about 13.97% of total assets, followed by Microsoft Corp. (MSFT) and Nvidia Corp. (NVDA). Click to get this free report Vanguard S&P 500 Growth ETF (VOOG): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Designed to provide broad exposure to the Large Cap Growth segment of the US equity market, the Vanguard S&P 500 Growth ETF (VOOG) is a passively managed exchange traded fund launched on 09/09/2010.
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12060.0
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2023-12-16 00:00:00 UTC
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Should Vanguard Mega Cap ETF (MGC) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-vanguard-mega-cap-etf-mgc-be-on-your-investing-radar-11
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nan
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nan
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Designed to provide broad exposure to the Large Cap Blend segment of the US equity market, the Vanguard Mega Cap ETF (MGC) is a passively managed exchange traded fund launched on 12/17/2007.
The fund is sponsored by Vanguard. It has amassed assets over $4.67 billion, making it one of the larger ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Large cap companies usually have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.
Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.
Costs
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.07%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.32%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 31.80% of the portfolio. Financials and Healthcare round out the top three.
Looking at individual holdings, Apple Inc. (AAPL) accounts for about 8.95% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN).
The top 10 holdings account for about 35.49% of total assets under management.
Performance and Risk
MGC seeks to match the performance of the CRSP US Mega Cap Index before fees and expenses. The CRSP U.S. Mega Cap Index includes the largest U.S. companies, with a target of including the top 70% of investable market capitalization. The index includes securities traded on NYSE, NYSE Market, NASDAQ or ARCA.
The ETF has gained about 28% so far this year and was up about 25.89% in the last one year (as of 12/18/2023). In the past 52-week period, it has traded between $130.37 and $167.93.
The ETF has a beta of 0.99 and standard deviation of 17.76% for the trailing three-year period, making it a medium risk choice in the space. With about 231 holdings, it effectively diversifies company-specific risk.
Alternatives
Vanguard Mega Cap ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, MGC is a reasonable option for those seeking exposure to the Style Box - Large Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Core S&P 500 ETF (IVV) and the SPDR S&P 500 ETF (SPY) track a similar index. While iShares Core S&P 500 ETF has $394.06 billion in assets, SPDR S&P 500 ETF has $449.23 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Vanguard Mega Cap ETF (MGC): ETF Research Reports
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
SPDR S&P 500 ETF (SPY): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc. (AAPL) accounts for about 8.95% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Click to get this free report Vanguard Mega Cap ETF (MGC): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. It has amassed assets over $4.67 billion, making it one of the larger ETFs attempting to match the Large Cap Blend segment of the US equity market.
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Click to get this free report Vanguard Mega Cap ETF (MGC): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc. (AAPL) accounts for about 8.95% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Designed to provide broad exposure to the Large Cap Blend segment of the US equity market, the Vanguard Mega Cap ETF (MGC) is a passively managed exchange traded fund launched on 12/17/2007.
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Click to get this free report Vanguard Mega Cap ETF (MGC): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc. (AAPL) accounts for about 8.95% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Alternatives Vanguard Mega Cap ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors.
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Looking at individual holdings, Apple Inc. (AAPL) accounts for about 8.95% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Click to get this free report Vanguard Mega Cap ETF (MGC): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Designed to provide broad exposure to the Large Cap Blend segment of the US equity market, the Vanguard Mega Cap ETF (MGC) is a passively managed exchange traded fund launched on 12/17/2007.
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12061.0
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2023-12-16 00:00:00 UTC
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Should iShares Russell Top 200 Growth ETF (IWY) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-ishares-russell-top-200-growth-etf-iwy-be-on-your-investing-radar-11
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nan
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nan
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Looking for broad exposure to the Large Cap Growth segment of the US equity market? You should consider the iShares Russell Top 200 Growth ETF (IWY), a passively managed exchange traded fund launched on 09/22/2009.
The fund is sponsored by Blackrock. It has amassed assets over $8.31 billion, making it one of the larger ETFs attempting to match the Large Cap Growth segment of the US equity market.
Why Large Cap Growth
Companies that find themselves in the large cap category typically have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.
While growth stocks do boast higher than average sales and earnings growth rates, and they are expected to grow faster than the wider market, investors should note these kinds of stocks have higher valuations. Additionally, growth stocks have a greater level of risk associated with them. When you consider growth versus value, growth stocks are usually the clear winner in strong bull markets but tend to fall flat in nearly all other environments.
Costs
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.20%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 0.46%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 46.80% of the portfolio. Consumer Discretionary and Telecom round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 14.28% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN).
The top 10 holdings account for about 59.9% of total assets under management.
Performance and Risk
IWY seeks to match the performance of the Russell Top 200 Growth Index before fees and expenses. The Russell Top 200 Growth Index is a style factor weighted index that measures the performance of the largest capitalization growth sector of the U.S. equity market. It is a subset of the Russell Top 200 Index issuers with relatively higher price-to-book ratios and higher forecasted growth, which measures the performance of the largest capitalization sector of the U.S. equity market.
The ETF has gained about 44.70% so far this year and it's up approximately 40.21% in the last one year (as of 12/18/2023). In the past 52-week period, it has traded between $117.74 and $173.78.
The ETF has a beta of 1.06 and standard deviation of 22.10% for the trailing three-year period, making it a medium risk choice in the space. With about 117 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Russell Top 200 Growth ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, IWY is an excellent option for investors seeking exposure to the Style Box - Large Cap Growth segment of the market. There are other additional ETFs in the space that investors could consider as well.
The Vanguard Growth ETF (VUG) and the Invesco QQQ (QQQ) track a similar index. While Vanguard Growth ETF has $102.64 billion in assets, Invesco QQQ has $225.96 billion. VUG has an expense ratio of 0.04% and QQQ charges 0.20%.
Bottom-Line
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
iShares Russell Top 200 Growth ETF (IWY): ETF Research Reports
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Invesco QQQ (QQQ): ETF Research Reports
Vanguard Growth ETF (VUG): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 14.28% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report iShares Russell Top 200 Growth ETF (IWY): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. You should consider the iShares Russell Top 200 Growth ETF (IWY), a passively managed exchange traded fund launched on 09/22/2009.
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Click to get this free report iShares Russell Top 200 Growth ETF (IWY): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 14.28% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). You should consider the iShares Russell Top 200 Growth ETF (IWY), a passively managed exchange traded fund launched on 09/22/2009.
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Click to get this free report iShares Russell Top 200 Growth ETF (IWY): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 14.28% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Alternatives IShares Russell Top 200 Growth ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 14.28% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report iShares Russell Top 200 Growth ETF (IWY): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. You should consider the iShares Russell Top 200 Growth ETF (IWY), a passively managed exchange traded fund launched on 09/22/2009.
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12062.0
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2023-12-16 00:00:00 UTC
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Should SPDR S&P 500 ETF (SPY) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-spdr-sp-500-etf-spy-be-on-your-investing-radar-10
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nan
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nan
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Looking for broad exposure to the Large Cap Blend segment of the US equity market? You should consider the SPDR S&P 500 ETF (SPY), a passively managed exchange traded fund launched on 01/29/1993.
The fund is sponsored by State Street Global Advisors. It has amassed assets over $449.23 billion, making it the largest ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Companies that find themselves in the large cap category typically have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.
Typically holding a combination of both growth and value stocks, blend ETFs also demonstrate qualities seen in value and growth investments.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.09%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.79%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 28.90% of the portfolio. Financials and Healthcare round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 7.24% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN).
The top 10 holdings account for about 31.42% of total assets under management.
Performance and Risk
SPY seeks to match the performance of the S&P 500 Index before fees and expenses. The S&P 500 Index is composed of five hundred selected stocks, all of which are listed on national stock exchanges and span over 25 separate industry groups.
The ETF has added about 23.96% so far this year and is up about 22.13% in the last one year (as of 12/18/2023). In the past 52-week period, it has traded between $376.66 and $472.01.
The ETF has a beta of 1 and standard deviation of 17.54% for the trailing three-year period, making it a medium risk choice in the space. With about 503 holdings, it effectively diversifies company-specific risk.
Alternatives
SPDR S&P 500 ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, SPY is a reasonable option for those seeking exposure to the Style Box - Large Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The Vanguard S&P 500 ETF (VOO) and the iShares Core S&P 500 ETF (IVV) track the same index. While Vanguard S&P 500 ETF has $366.77 billion in assets, iShares Core S&P 500 ETF has $394.06 billion. VOO has an expense ratio of 0.03% and IVV charges 0.03%.
Bottom-Line
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
SPDR S&P 500 ETF (SPY): ETF Research Reports
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Vanguard S&P 500 ETF (VOO): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 7.24% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Click to get this free report SPDR S&P 500 ETF (SPY): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Vanguard S&P 500 ETF (VOO): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. It has amassed assets over $449.23 billion, making it the largest ETFs attempting to match the Large Cap Blend segment of the US equity market.
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Click to get this free report SPDR S&P 500 ETF (SPY): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Vanguard S&P 500 ETF (VOO): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 7.24% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Sector Exposure and Top Holdings Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing.
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Click to get this free report SPDR S&P 500 ETF (SPY): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Vanguard S&P 500 ETF (VOO): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 7.24% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Sector Exposure and Top Holdings Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 7.24% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Click to get this free report SPDR S&P 500 ETF (SPY): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Vanguard S&P 500 ETF (VOO): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Annual operating expenses for this ETF are 0.09%, making it one of the least expensive products in the space.
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12063.0
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2023-12-16 00:00:00 UTC
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Warren Buffett Has Gained Over $196 Billion From Only 4 Stocks
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AAPL
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https://www.nasdaq.com/articles/warren-buffett-has-gained-over-%24196-billion-from-only-4-stocks
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When Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett speaks, investors of all walks pay attention. That's because the Oracle of Omaha has been running circles around Wall Street's major indexes for more than a half-century. Since taking the reins at Berkshire, Buffett has doubled the annualized total return, including dividends, of the benchmark S&P 500 (19.8% vs. 9.9%), as of the end of 2022.
Yet what's particularly noteworthy about Buffett's success is that it's the result of prescient investments in a relatively small number of companies. Based on a combination of reported and estimated cost bases, Wall Street's most-revered investor and his team are sitting on $196.2 billion in unrealized gains (not counting dividends received) from just four well-known companies.
Berkshire Hathaway CEO Warren Buffett. Image source: The Motley Fool.
Apple: $140.59 billion in unrealized gains (estimated)
Perhaps this comes as no surprise, but the largest holding in Berkshire Hathaway's $364 billion investment portfolio has been one heck of an investment. Based on the $39.62-per-share cost basis estimated by WhaleWisdom.com, tech stock Apple (NASDAQ: AAPL) is responsible for a greater than $140 billion unrealized gain for Buffett's company. Not bad for a stock that Berkshire has been holding for less than eight years.
Apple's greatness largely derives from its innovation. It's been a leading provider of smartphones since introducing the original iPhone in 2007. In the U.S., it's consistently accounted for half or more of smartphone market share since upgrading the iPhone to handle 5G download speeds in the fourth quarter of 2020.
But what investors seem most excited about is Apple's ongoing evolution. Under CEO Tim Cook, Apple is becoming a platforms company that's emphasizing subscription services.
Make no mistake, Apple has exceptionally loyal customers and plenty of pricing power. It's also not abandoning the physical products that consumers obviously love (iPhone, Mac, and iPad). However, bolstering its portfolio to include subscription services will increase its operating margin over time, further enhance loyalty to Apple's ecosystem of products and services, and is expected to smooth out the revenue lumpiness associated with major iPhone upgrade cycles.
American Express: $24.24 billion in unrealized gains
Although it trails Apple by a wide margin, credit-services provider American Express (NYSE: AXP) has been nothing short of an incredible investment for Warren Buffett and his team, which included the late, great Charlie Munger. With Berkshire reporting a cost basis in AmEx of approximately $8.49 per share, Buffett's company is sitting on more than $24 billion in unrealized gains, not including dividends.
American Express's success as a business is a function of its ability to play both sides of the transaction aisle. In addition to being the No. 3 payment processor by credit card network purchase volume in the U.S., AmEx is a lender to businesses and consumers. This allows it to collect interest income and/or annual fees from its cardholders.
Something else working in favor of American Express is its choice to focus on high-earning consumers. Well-to-do cardholders are far less likely to alter their spending habits or fail to pay their bills than the average American. This positions AmEx to navigate economic downturns better than its peers.
Don't forget that macroeconomic factors are also AmEx's friend. Although financial stocks are cyclical and struggle during periods of contraction, recessions are short-lived. Only three of the 12 recessions since the end of World War II have lasted at least 12 months, and none have surpassed 18 months. Meanwhile, two economic expansions over the past 78 years have endured longer than a decade. Financial stocks like American Express benefit from long-winded periods of expansion.
Image source: Coca-Cola.
Coca-Cola: $22.32 billion in unrealized gains
The third Buffett stock that's generated a veritable smorgasbord of gains for the Oracle of Omaha's company is beverage giant Coca-Cola (NYSE: KO). Coke is Berkshire's longest continuous holding (since 1988) and sports a cost basis of just $3.2475 per share. With a current share price north of $59, it means Buffett and his investing aides are sitting on gains of well over $22 billion.
Also, keep in mind that Coca-Cola has raised its base annual dividend for 61 consecutive years, and is currently doling out $1.84 per share. Relative to Berkshire Hathaway's cost basis, Buffett's company is netting a nearly 57% yield on cost. Put another way, the Oracle of Omaha's company is more than doubling its initial investment in Coca-Cola every two years based solely on the dividend income it's receiving.
Geographic diversity is a big reason Coca-Cola has been such a bubbling investment for the past 35 years. Aside from North Korea, Cuba, and Russia, it has operations in every other country. This allows Coke to generate predictable operating cash flow in developed markets, while also benefiting from stronger organic growth opportunities in emerging market countries. The company has 26 brands generating at least $1 billion in worldwide sales.
Coca-Cola's other source of success is its top-tier marketing. It's been aggressively investing in digital advertising and relying on artificial intelligence to cater ads to younger audiences. Meanwhile, Coke has decades-long ties to the holidays and can lean on well-known brand ambassadors to connect with more mature consumers.
Moody's: $9.07 billion in unrealized gains
The fourth and final stock that, collectively with Apple, American Express, and Coca-Cola, is responsible for generating more than $196 billion in unrealized gains for Warren Buffett and his team is credit-rating agency Moody's (NYSE: MCO).
The theme of this list tends to be patience. Apple's large gains are a function of its outperformance since Berkshire's initial investment in the first quarter of 2016. Meanwhile, AmEx, Coca-Cola, and Moody's have been continuous holdings since 1991, 1988, and 2000, respectively. It's the epitome of allowing time and compounding to work their magic.
According to Warren Buffett's letter to shareholders that was released last year, Berkshire has a per-share cost basis of $10.05 in Moody's. With Moody's stock climbing above $377 on Dec. 11, it means Berkshire stake has increased in value by more than $9 billion, not including dividends paid.
For more than a decade, Moody's credit-rating segment has been its driving force. Historically low interest rates encouraged companies to borrow in order to hire, acquire, innovate, and expand. The need to rate new debt issuances kept Moody's analysts busy, as well as lined the company's pockets.
But things have changed as interest rates have soared over the past 21 months. With fewer corporate debt issuances, Moody's Analytics segment is now doing the heavy lifting. This division, which helps businesses stay compliant with regulations and assists with risk assessment, is perfectly positioned to thrive in the current economic climate.
Should you invest $1,000 in Apple right now?
Before you buy stock in Apple, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Apple wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
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See the 10 stocks
*Stock Advisor returns as of December 11, 2023
American Express is an advertising partner of The Ascent, a Motley Fool company. Sean Williams has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, and Moody's. The Motley Fool recommends the following options: long January 2024 $47.50 calls on Coca-Cola. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Based on the $39.62-per-share cost basis estimated by WhaleWisdom.com, tech stock Apple (NASDAQ: AAPL) is responsible for a greater than $140 billion unrealized gain for Buffett's company. With Berkshire reporting a cost basis in AmEx of approximately $8.49 per share, Buffett's company is sitting on more than $24 billion in unrealized gains, not including dividends. This division, which helps businesses stay compliant with regulations and assists with risk assessment, is perfectly positioned to thrive in the current economic climate.
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Based on the $39.62-per-share cost basis estimated by WhaleWisdom.com, tech stock Apple (NASDAQ: AAPL) is responsible for a greater than $140 billion unrealized gain for Buffett's company. Based on a combination of reported and estimated cost bases, Wall Street's most-revered investor and his team are sitting on $196.2 billion in unrealized gains (not counting dividends received) from just four well-known companies. With Berkshire reporting a cost basis in AmEx of approximately $8.49 per share, Buffett's company is sitting on more than $24 billion in unrealized gains, not including dividends.
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Based on the $39.62-per-share cost basis estimated by WhaleWisdom.com, tech stock Apple (NASDAQ: AAPL) is responsible for a greater than $140 billion unrealized gain for Buffett's company. American Express: $24.24 billion in unrealized gains Although it trails Apple by a wide margin, credit-services provider American Express (NYSE: AXP) has been nothing short of an incredible investment for Warren Buffett and his team, which included the late, great Charlie Munger. Moody's: $9.07 billion in unrealized gains The fourth and final stock that, collectively with Apple, American Express, and Coca-Cola, is responsible for generating more than $196 billion in unrealized gains for Warren Buffett and his team is credit-rating agency Moody's (NYSE: MCO).
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Based on the $39.62-per-share cost basis estimated by WhaleWisdom.com, tech stock Apple (NASDAQ: AAPL) is responsible for a greater than $140 billion unrealized gain for Buffett's company. Should you invest $1,000 in Apple right now? Before you buy stock in Apple, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Apple wasn't one of them.
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12064.0
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2023-12-16 00:00:00 UTC
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Tech hedge funds soar, piggybacking on Nasdaq rally
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https://www.nasdaq.com/articles/tech-hedge-funds-soar-piggybacking-on-nasdaq-rally
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By Carolina Mandl
NEW YORK, Dec 15 (Reuters) - A number of U.S. equities hedge funds focused on technology are set to post double-digit returns this year, boosted by a powerful rally in the Nasdaq .IXIC and after being hard hit in 2022, according to performance numbers obtained by Reuters.
San Francisco-based SoMa Equity Partners' long/short fund, led by chief investment officer Gil Simon, soared 48% this year through November, according to a document, versus a 36% gain in the Nasdaq. Last year, the fund was down 33.9%.
Whale Rock Capital's long/short rose 28%, compared with a decline of 43% last year, two sources familiar with the matter said. Tiger Global Management's long/short fund was up 27%, a third source said - it lost 56% last year.
Coatue Management was up 20% through November, a source familiar with the return said. Last year, it was down 19%.
The so-called TMT hedge funds' (technology, media and telecommunications) performance comes as the Nasdaq surged 41.3% so far this year fueled by investors bets on the prospects of artificial intelligence. That compared with 2022 when the index fell 33%.
This year's trend has mainly benefited the so-called Magnificent Seven mega-cap growth and technology companies: Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Amazon AMZN.O, Nvidia NVDA.O, Meta Plaforms META.O and Tesla TSLA.O.
In a letter to investors seen by Reuters, SoMa Equity told its clients it had holdings in Microsoft, Amazon and Meta. Still, those shares were not among SoMa's five top contributors to performance in the last quarter. The hedge fund profited the most from exposure to Universal Music Group NV UMG.AS, Wix.Com Ltd, Uber Technologies Inc UBER.N, Varonis Systems Inc VRNS.O and Atlassian Corporation TEAM.O, it said.
On the short side, bets against consumer-led shorts related to automotive, travel and luxury spending also helped performance, according to the letter.
On average, TMT long/short hedge funds are up 14.2% this year through November, according to data provider PivotalPath, after tumbling 22.4% in 2022.
The numbers show they are on track for a "semi-magnificent" year as on average they were not able to recover from previous losses or beat the Nasdaq.
Jon Caplis, Chief Executive Officer at PivotalPath, which tracks over $3 trillion in hedge funds, said that TMT hedge funds started this year with a lower exposure to the Nasdaq, as they reduced their risk appetite throughout last year amid mounting losses.
"While the Nasdaq has roared back, gaining 36% through November, being levered down caused TMT managers on average to catch much less of this rally," he said.
(Reporting by Carolina Mandl, in New York; editing by Jonathan Oatis and Josie Kao)
((carolina.mandl@thomsonreuters.com; +1 (917) 891-4931;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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This year's trend has mainly benefited the so-called Magnificent Seven mega-cap growth and technology companies: Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Amazon AMZN.O, Nvidia NVDA.O, Meta Plaforms META.O and Tesla TSLA.O. San Francisco-based SoMa Equity Partners' long/short fund, led by chief investment officer Gil Simon, soared 48% this year through November, according to a document, versus a 36% gain in the Nasdaq. The so-called TMT hedge funds' (technology, media and telecommunications) performance comes as the Nasdaq surged 41.3% so far this year fueled by investors bets on the prospects of artificial intelligence.
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This year's trend has mainly benefited the so-called Magnificent Seven mega-cap growth and technology companies: Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Amazon AMZN.O, Nvidia NVDA.O, Meta Plaforms META.O and Tesla TSLA.O. By Carolina Mandl NEW YORK, Dec 15 (Reuters) - A number of U.S. equities hedge funds focused on technology are set to post double-digit returns this year, boosted by a powerful rally in the Nasdaq .IXIC and after being hard hit in 2022, according to performance numbers obtained by Reuters. The so-called TMT hedge funds' (technology, media and telecommunications) performance comes as the Nasdaq surged 41.3% so far this year fueled by investors bets on the prospects of artificial intelligence.
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This year's trend has mainly benefited the so-called Magnificent Seven mega-cap growth and technology companies: Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Amazon AMZN.O, Nvidia NVDA.O, Meta Plaforms META.O and Tesla TSLA.O. By Carolina Mandl NEW YORK, Dec 15 (Reuters) - A number of U.S. equities hedge funds focused on technology are set to post double-digit returns this year, boosted by a powerful rally in the Nasdaq .IXIC and after being hard hit in 2022, according to performance numbers obtained by Reuters. The so-called TMT hedge funds' (technology, media and telecommunications) performance comes as the Nasdaq surged 41.3% so far this year fueled by investors bets on the prospects of artificial intelligence.
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This year's trend has mainly benefited the so-called Magnificent Seven mega-cap growth and technology companies: Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Amazon AMZN.O, Nvidia NVDA.O, Meta Plaforms META.O and Tesla TSLA.O. By Carolina Mandl NEW YORK, Dec 15 (Reuters) - A number of U.S. equities hedge funds focused on technology are set to post double-digit returns this year, boosted by a powerful rally in the Nasdaq .IXIC and after being hard hit in 2022, according to performance numbers obtained by Reuters. Last year, the fund was down 33.9%.
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12065.0
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2023-12-15 00:00:00 UTC
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Intel's AI PC Chips Are a Big Step Forward
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AAPL
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https://www.nasdaq.com/articles/intels-ai-pc-chips-are-a-big-step-forward
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Intel's (NASDAQ: INTC) Meteor Lake PC CPUs officially launched on Dec. 14, with some laptops built around the new chips already available. One of the big selling points Intel is touting is a built-in AI accelerator. In software that supports it, Meteor Lake chips can offload AI inference tasks to the accelerator, freeing up the CPU and GPU and delivering improved AI performance.
Architecturally, Meteor Lake comes with some big changes. The new chips use the Intel 4 manufacturing process, the first from Intel to make use of extreme ultraviolet lithography. The chips also move to a tile-based design, with different parts manufactured using different technologies.
Not only does Meteor Lake excel at AI tasks, but the new chips deliver significant improvements in power efficiency and graphics. Meteor Lake moves to an Intel Arc GPU, which is twice as performant and twice as efficient as the graphics in Intel's last-generation chips.
An important step for Intel
The PC market remains depressed after a pandemic-era buying spree gave way to a collapse in demand. Intel's Meteor Lake might be the most exciting thing to happen to the laptop market since Apple started making MacBooks using its custom CPUs. The new chips might be enough to trigger an upgrade cycle in 2024 and beyond.
Meteor Lake's AI hardware delivers big gains in AI inference workloads. Compared to its last-generation chips, Intel claims that Meteor Lake delivers 1.7 times the performance in generative AI and is 2.5 times as power efficient in the UL Procyon AI inference benchmark. When Meteor Lake's AI hardware tackles the AI tasks involved when making a Zoom call, Intel claims a 38% reduction in power usage.
How much consumers and businesses care about Meteor Lake's AI hardware depends on the software that supports it. Intel is aiming to boost the number of AI software partners from 39 today to 100 over the course of 2024. On top of the dedicated AI accelerator, the built-in GPU is capable of handling AI workloads as well. Intel claims in creative applications like those from Adobe, Meteor Lake can deliver anywhere from 1.2 times to 5.4 times the performance of a comparable AMD Ryzen CPU.
Beyond performance improvements, Meteor Lake delivers meaningful power efficiency improvements which should help with battery life. One example Intel gave was playing video from Netflix. By leveraging low-power cores built into Meteor Lake's SoC tile, the new chips can play back video using 25% less power compared to Intel's last-gen chips.
Compared to a Ryzen CPU, Intel is claiming that Meteor Lake is more efficient in a wide variety of scenarios. With both processors working within the same 28W power envelope, Meteor Lake is 7% more efficient in web browsing, 44% more efficient at playing back local 4K video, and a whopping 79% more efficient when the system is idle. These numbers come straight from Intel, so take them with a grain of salt. Third-party reviews of individual systems will give us a better idea of how these chips stack up.
A big bet on AI
Intel views AI as the future of the PC. Meteor Lake is the first step in that direction, and its successors will build on its improvements.
The success of Intel's AI PC initiative will hinge on software support. Given Intel's leading share in the PC CPU market, it makes sense for software companies to jump on board. Notably, Intel demonstrated LLaMa2-7B, a smaller large language model capable of text generation, successfully running on a Meteor Lake system using the CPU, GPU, and AI hardware. This opens the door for AI assistants running locally, which should make for a snappier experience compared to calling out to a cloud service on each prompt. That could end up being the "killer app" for Intel's AI PCs.
Meteor Lake is the beginning of Intel's push to bring AI to the PC. Next up is Arrow Lake, scheduled for some time in 2024. Arrow Lake will move to the Intel 20A manufacturing process, which should bring significant performance and efficiency gains. By then, the software ecosystem around Intel's AI hardware should be more mature, and the value proposition should be clearer.
Should you invest $1,000 in Intel right now?
Before you buy stock in Intel, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Intel wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
See the 10 stocks
*Stock Advisor returns as of December 11, 2023
Timothy Green has positions in Intel. The Motley Fool has positions in and recommends Adobe, Advanced Micro Devices, Apple, Netflix, and Zoom Video Communications. The Motley Fool recommends Intel and recommends the following options: long January 2023 $57.50 calls on Intel, long January 2024 $420 calls on Adobe, long January 2025 $45 calls on Intel, short February 2024 $47 calls on Intel, and short January 2024 $430 calls on Adobe. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Intel's Meteor Lake might be the most exciting thing to happen to the laptop market since Apple started making MacBooks using its custom CPUs. Notably, Intel demonstrated LLaMa2-7B, a smaller large language model capable of text generation, successfully running on a Meteor Lake system using the CPU, GPU, and AI hardware. This opens the door for AI assistants running locally, which should make for a snappier experience compared to calling out to a cloud service on each prompt.
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Meteor Lake's AI hardware delivers big gains in AI inference workloads. Compared to its last-generation chips, Intel claims that Meteor Lake delivers 1.7 times the performance in generative AI and is 2.5 times as power efficient in the UL Procyon AI inference benchmark. The Motley Fool recommends Intel and recommends the following options: long January 2023 $57.50 calls on Intel, long January 2024 $420 calls on Adobe, long January 2025 $45 calls on Intel, short February 2024 $47 calls on Intel, and short January 2024 $430 calls on Adobe.
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Meteor Lake moves to an Intel Arc GPU, which is twice as performant and twice as efficient as the graphics in Intel's last-generation chips. Compared to its last-generation chips, Intel claims that Meteor Lake delivers 1.7 times the performance in generative AI and is 2.5 times as power efficient in the UL Procyon AI inference benchmark. The Motley Fool recommends Intel and recommends the following options: long January 2023 $57.50 calls on Intel, long January 2024 $420 calls on Adobe, long January 2025 $45 calls on Intel, short February 2024 $47 calls on Intel, and short January 2024 $430 calls on Adobe.
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In software that supports it, Meteor Lake chips can offload AI inference tasks to the accelerator, freeing up the CPU and GPU and delivering improved AI performance. Meteor Lake's AI hardware delivers big gains in AI inference workloads. The success of Intel's AI PC initiative will hinge on software support.
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12066.0
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2023-12-15 00:00:00 UTC
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Will Nvidia Be Worth More Than Apple by 2030?
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AAPL
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https://www.nasdaq.com/articles/will-nvidia-be-worth-more-than-apple-by-2030-0
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Nvidia (NASDAQ: NVDA) entered the $1 trillion market cap club this year thanks to a red-hot run in the stock market fueled by super high demand for its graphics processing units (GPUs) for training artificial intelligence (AI) models. Share prices of Nvidia have surged 226% in 2023. It now has a market cap of $1.2 trillion, which makes it the sixth-largest company in the world.
Apple (NASDAQ: AAPL) remains the world's most valuable company with a market cap of nearly $3.1 trillion, but there is a good chance that Nvidia could dethrone the iPhone maker by the end of the decade. Let's see why.
Apple hasn't been able to match Nvidia's growth
Over the past seven years, Nvidia's market cap has jumped an astonishing 2,300%, which is significantly higher than Apple's growth of just over 400% during the same period.
NVDA market cap data by YCharts.
It is easy to see why this has been the case. The market has rewarded Nvidia for the tremendous growth in its revenue and earnings over the years, driven by the growing applications of the company's GPUs in multiple industries ranging from computers to data centers to cars and even factories.
Apple's growth, on the other hand, has been slower than Nvidia's. Again, that's not surprising as Apple operates in markets that have reached their saturation points.
NVDA revenue (TTM) data by YCharts; TTM = trailing 12 months.
For instance, sales of smartphones were flat in the third quarter of 2023, according to market intelligence firm IDC. Meanwhile, personal computer (PC) shipments are set to drop almost 14% this year. The state of these markets explains why Apple's revenue in fiscal 2023 (which ended on Sept. 30, 2023) fell almost 3% year over year to $383 billion. Its adjusted earnings were almost flat year over year at $6.13 per share.
Apple got two-thirds of its revenue from selling smartphones and personal computing devices such as iPads and MacBooks in the previous fiscal year. Also, there is a lot of competition in these markets thanks to the presence of multiple participants.
For example, Apple is the second-largest smartphone manufacturer, but it has a market share of just under 18%. The company's share of the PC market stands at 10.6%, making it the fourth-largest player in this space.
Sales of both PCs and smartphones aren't expected to increase significantly in the long run. IDC expects the PC market to clock a compound annual growth rate (CAGR) of just 3.1% through 2027. Smartphone shipments are expected to have an even slower CAGR of 1.7% over the next four years. Not surprisingly, analysts aren't expecting much of an acceleration in Apple's growth, which is evident from the following chart.
AAPL revenue estimates for current fiscal year; data by YCharts.
And the company's earnings are expected to increase at an annual pace of just 6% over the next five years. That's way slower than the 21% annual earnings growth Apple clocked in the past five years.
Assuming it can sustain 6% earnings growth for the next seven years, its bottom line could increase to $9.20 per share in 2030 (using its fiscal 2023 earnings of $6.13 per share as the base).
If we multiply the projected 2030 earnings with Apple's five-year average forward earnings multiple of 24, the stock price could jump to $221 by the end of the decade. That would be an increase of just 15%, indicating that its market cap could hit $3.45 trillion in 2030.
Nvidia, on the other hand, is expected to clock annual earnings growth of a whopping 112% for the next five years. Let's see why that's the case, and check if that would be enough to help the company overtake Apple's market cap by 2030.
Nvidia is sitting on a massive growth opportunity
While Apple is struggling with saturated and crowded markets, Nvidia is the dominant force in the rapidly growing market for AI chips. It is estimated that the global AI chip market could hit $304 billion in annual revenue in 2030 as compared to $20 billion in 2021. Nvidia controls between 80% and 95% of this market, as per various third-party estimates.
This, however, is not the only massive growth opportunity Nvidia could benefit from over the next seven years. Including cloud gaming, automotive uses, and digital twins, there are multiple lucrative markets that the company could take advantage of. It estimates its total addressable market to be worth $1 trillion spread across multiple end markets.
The company is expected to finish its ongoing fiscal year with almost $59 billion in revenue, which would be a jump of 118% over the prior year. So, there is still a lot of room for growth for Nvidia, which explains why analysts consistently raise their estimates.
NVDA revenue estimates for current fiscal year; data by YCharts.
Assuming Nvidia manages to hit $107 billion in revenue in fiscal 2026, its three-year revenue CAGR would stand at an impressive 58% based on its fiscal 2023 revenue of $27 billion. If the company manages to sustain a relatively conservative long-term revenue growth rate of 25% from fiscal 2027 to fiscal 2031 (which will coincide with calendar 2030), its top line could hit $325 billion by the end of the decade.
Nvidia has an average five-year price-to-sales ratio of 20. Assuming it trades at a discount 15 times forward sales in 2030, its market cap could jump to almost $4.9 trillion in 2030. As such, there is a chance of Nvidia overtaking Apple's market cap in the long run, and this won't be surprising given how fast the former is anticipated to benefit from multiple growth drivers.
Should you invest $1,000 in Nvidia right now?
Before you buy stock in Nvidia, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Nvidia wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
See the 10 stocks
*Stock Advisor returns as of December 11, 2023
Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Nvidia. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ: AAPL) remains the world's most valuable company with a market cap of nearly $3.1 trillion, but there is a good chance that Nvidia could dethrone the iPhone maker by the end of the decade. AAPL revenue estimates for current fiscal year; data by YCharts. The market has rewarded Nvidia for the tremendous growth in its revenue and earnings over the years, driven by the growing applications of the company's GPUs in multiple industries ranging from computers to data centers to cars and even factories.
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AAPL revenue estimates for current fiscal year; data by YCharts. Apple (NASDAQ: AAPL) remains the world's most valuable company with a market cap of nearly $3.1 trillion, but there is a good chance that Nvidia could dethrone the iPhone maker by the end of the decade. If we multiply the projected 2030 earnings with Apple's five-year average forward earnings multiple of 24, the stock price could jump to $221 by the end of the decade.
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Apple (NASDAQ: AAPL) remains the world's most valuable company with a market cap of nearly $3.1 trillion, but there is a good chance that Nvidia could dethrone the iPhone maker by the end of the decade. AAPL revenue estimates for current fiscal year; data by YCharts. Nvidia (NASDAQ: NVDA) entered the $1 trillion market cap club this year thanks to a red-hot run in the stock market fueled by super high demand for its graphics processing units (GPUs) for training artificial intelligence (AI) models.
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AAPL revenue estimates for current fiscal year; data by YCharts. Apple (NASDAQ: AAPL) remains the world's most valuable company with a market cap of nearly $3.1 trillion, but there is a good chance that Nvidia could dethrone the iPhone maker by the end of the decade. If we multiply the projected 2030 earnings with Apple's five-year average forward earnings multiple of 24, the stock price could jump to $221 by the end of the decade.
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12067.0
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2023-12-15 00:00:00 UTC
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57.7% of Warren Buffett's $375 Billion Portfolio Is Invested in These 2 Dividend-Paying Stocks
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AAPL
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https://www.nasdaq.com/articles/57.7-of-warren-buffetts-%24375-billion-portfolio-is-invested-in-these-2-dividend-paying
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nan
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nan
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According to Warren Buffett, "All there is to investing is picking good stocks at good times and staying with them as long as they remain good companies." Luckily for us everyday investors, you don't need Berkshire Hathaway's resources to separate good companies from businesses that are best avoided. Just look for dividend payers that keep raising their payouts.
Berkshire Hathaway doesn't pay a dividend itself, but the vast majority of stocks that it owns do. Buffett's such a big fan of dividend payers that a majority of Berkshire's holdings are concentrated in a handful of dividend-paying stocks. You might be surprised to learn that, at recent prices, just two stocks make up 57.7% of Berkshire's stock portfolio.
Buffett's is betting big on Apple
Buffett's been at the helm of Berkshire since 1965, but one of its biggest investments of all time didn't enter the equity portfolio until 2016. That was the year Berkshire began building an enormous stake in Apple (NASDAQ: AAPL), which has quickly become the conglomerate's largest holding.
Apple's stock price has risen a stunning 627% since the end of the first quarterly period that Berkshire disclosed its stake in the company. Plus, its quarterly dividend payout has risen about 68% over the same timeframe.
AAPL Dividend data by YCharts
Huge gains plus subsequent purchases have increased Berkshire's Apple stake to a staggering $181 billion at recent prices, or about 48% of Berkshire's equity portfolio. The stock offers an uninspiring 0.5% yield at recent prices, but Buffett's accumulated around 915 million shares of the stock so quarterly payouts are significant.
Berkshire's Apple holdings will deliver $220 million worth of dividend payments in February and probably more in the subsequent quarter. The highly profitable company generated nearly $100 billion in free cash flow over the past 12 months and needed just 15% of this sum to meet its dividend commitment.
New investors who want to follow Buffett's lead can look forward to increasing profits and a rising dividend payout from Apple for at least another decade. Sales of iPhones aren't growing very fast, but Apple boasts more than 2 billion active devices. Selling high-margin services to those users drove earnings per share 13% higher in its fiscal fourth quarter that ended Sept. 30.
Bank of America is dull but reliable
Buffet is sitting on more than 1 billion shares of Bank of America (NYSE: BAC), or BofA. At 9.3% percent of the equity portfolio, it's Berkshire's second-largest holding.
For decades, Buffett has told anyone who will listen that he believes in the U.S. economy's ability to grow over time. He loves to buy bank stocks after they've been beaten down because he knows these cyclical businesses benefit from periods of economic growth that tend to last much longer than the recessions that separate them.
Interest BofA receives from loans rose much faster in 2023 than the interest it pays to its huge deposit base. An improved net interest margin helped third-quarter earnings per share rise 11% year over year.
BAC Dividend data by YCharts
At recent prices, BofA shares offer a 2.8% dividend yield and a chance for a much higher yield on your original investment in the years ahead. The bank held its dividend in place in 2020, but it's still up by 60% over the past five years.
Despite all the rapid payout bumps in recent years, BofA met its dividend obligation over the past 12 months with just 20.7% of the free cash flow its lucrative banking operation generated. That means there's plenty of room to raise its dividend a lot further in the years ahead. Buying the stock now to hold for the long run looks like a smart move.
Should you invest $1,000 in Apple right now?
Before you buy stock in Apple, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Apple wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
See the 10 stocks
*Stock Advisor returns as of December 11, 2023
Bank of America is an advertising partner of The Ascent, a Motley Fool company. Cory Renauer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Bank of America. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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That was the year Berkshire began building an enormous stake in Apple (NASDAQ: AAPL), which has quickly become the conglomerate's largest holding. AAPL Dividend data by YCharts Huge gains plus subsequent purchases have increased Berkshire's Apple stake to a staggering $181 billion at recent prices, or about 48% of Berkshire's equity portfolio. The highly profitable company generated nearly $100 billion in free cash flow over the past 12 months and needed just 15% of this sum to meet its dividend commitment.
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AAPL Dividend data by YCharts Huge gains plus subsequent purchases have increased Berkshire's Apple stake to a staggering $181 billion at recent prices, or about 48% of Berkshire's equity portfolio. That was the year Berkshire began building an enormous stake in Apple (NASDAQ: AAPL), which has quickly become the conglomerate's largest holding. The highly profitable company generated nearly $100 billion in free cash flow over the past 12 months and needed just 15% of this sum to meet its dividend commitment.
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AAPL Dividend data by YCharts Huge gains plus subsequent purchases have increased Berkshire's Apple stake to a staggering $181 billion at recent prices, or about 48% of Berkshire's equity portfolio. That was the year Berkshire began building an enormous stake in Apple (NASDAQ: AAPL), which has quickly become the conglomerate's largest holding. The stock offers an uninspiring 0.5% yield at recent prices, but Buffett's accumulated around 915 million shares of the stock so quarterly payouts are significant.
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That was the year Berkshire began building an enormous stake in Apple (NASDAQ: AAPL), which has quickly become the conglomerate's largest holding. AAPL Dividend data by YCharts Huge gains plus subsequent purchases have increased Berkshire's Apple stake to a staggering $181 billion at recent prices, or about 48% of Berkshire's equity portfolio. BAC Dividend data by YCharts At recent prices, BofA shares offer a 2.8% dividend yield and a chance for a much higher yield on your original investment in the years ahead.
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12068.0
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2023-12-15 00:00:00 UTC
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Guru Fundamental Report for AAPL
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AAPL
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https://www.nasdaq.com/articles/guru-fundamental-report-for-aapl-28
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nan
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nan
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Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. This momentum model looks for a combination of fundamental momentum and price momentum.
APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. The rating using this strategy is 100% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
FUNDAMENTAL MOMENTUM: PASS
TWELVE MINUS ONE MOMENTUM: PASS
FINAL RANK: PASS
Detailed Analysis of APPLE INC
AAPL Guru Analysis
AAPL Fundamental Analysis
More Information on Dashan Huang
Dashan Huang Portfolio
About Dashan Huang: Dashan Huang is an Assistant Professor of Finance at the Lee Kong Chian School of Business at Singapore Management University. His paper "Twin Momentum" looked at combining traditional price momentum with improving fundamentals to generate market outperformance. In the paper, he identified seven fundamental variables (earnings, return on equity, return on assets, accrual operating profitability to equity, cash operating profitability to assets, gross profit to assets and net payout ratio) that he combined into a single fundamental momentum measure. He showed that stocks in the top 20% of the universe according to that measure outperformed the market going forward. When he combined that measure with price momentum, he was able to double its outperformance.
Additional Research Links
Top NASDAQ 100 Stocks
Top Technology Stocks
Top Large-Cap Growth Stocks
High Momentum Stocks
High Insider Ownership Stocks
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang.
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Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Dashan Huang Dashan Huang Portfolio About Dashan Huang: Dashan Huang is an Assistant Professor of Finance at the Lee Kong Chian School of Business at Singapore Management University. Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang.
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Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Dashan Huang Dashan Huang Portfolio About Dashan Huang: Dashan Huang is an Assistant Professor of Finance at the Lee Kong Chian School of Business at Singapore Management University. Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang.
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Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. Below is Validea's guru fundamental report for APPLE INC (AAPL). APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry.
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12069.0
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2023-12-15 00:00:00 UTC
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These 3 Stocks Have Made Warren Buffett the Most Money in 2023. Are They No-Brainer Buys for the New Year?
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AAPL
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https://www.nasdaq.com/articles/these-3-stocks-have-made-warren-buffett-the-most-money-in-2023.-are-they-no-brainer-buys
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nan
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nan
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Nearly $121 billion. That's how much Warren Buffett is worth at the time of this writing. The total is substantially more than it was 12 months ago thanks to Berkshire Hathaway's (NYSE: BRK.A) (NYSE: BRK.B) solid gains this year.
But Berkshire Hathaway's gains stemmed in large part from great performances from several of its equity holdings. These three stocks have made Buffett the most money in 2023.
1. Apple
Other stocks in Berkshire's portfolio have delivered greater returns than Apple (NASDAQ: AAPL) has this year. However, there's no doubt whatsoever that Apple ranks as Buffett's biggest moneymaker in 2023.
Nearly half of Berkshire's equity investments are in Apple stock (48.5%, to be precise). Shares of the tech giant have skyrocketed more than 50% this year. Apple is on track to generate an unrealized gain of more than $65 billion for Berkshire in 2023. As Berkshire's biggest shareholder, Buffet's net worth benefited tremendously as a result.
Improving investor sentiment no doubt played a key role in Apple's impressive year-to-date gains. The company also beat Wall Street earnings estimates in each of its quarterly updates in 2023.
2. American Express
Buffett has owned shares of American Express (NYSE: AXP) longer than nearly any other stock in Berkshire's portfolio. The financial services company remains one of Buffett's favorites. Berkshire's 20.8% stake in Amex makes it the conglomerate's third-largest holding.
Just a few months ago, American Express wouldn't have made our list. However, the stock has roared back since late October and is now up more than 20% year to date. That's enough to generate roughly $4.7 billion in gains for Berkshire this year.
What provided the much-needed recent catalyst for American Express stock? The company reported better-than-expected Q3 revenue and earnings on Oct. 20, 2023. Amex posted record results on both its top and bottom lines.
3. Moody's
Several of Berkshire's other top holdings have declined this year. However, the conglomerate's eighth-largest position, credit rating agency Moody's (NYSE: MCO), is a notable exception.
After a multi-month pullback, Moody's stock began a strong comeback in October. The company's shares have soared more than 40% year to date. This tremendous gain has made Berkshire in the ballpark of $3 billion in 2023.
Business is booming for Moody's. The company reported 15% year-over-year revenue growth in the third quarter with diluted earnings per share jumping 28%. CEO Rob Fauber said that this impressive growth demonstrated "the resiliency and relevance of our business and the increasing demand for our unparalleled research, data, and solutions."
Are they no-brainer buys for the new year?
Are Apple, American Express, and Moody's no-brainer stocks to buy for the new year after making Buffett a ton of money in 2023? Not necessarily. The big winners of one year don't always carry their momentum into the next year.
Apple's valuation could be a limiting factor headed into 2024. The stock currently trades at 30 times expected earnings. Moody's is even more expensive with a forward price-to-earnings ratio of nearly 35. American Express, on the other hand, remains attractively valued with a forward earnings multiple of 14.
But with the economy appearing to be in healthy shape, all three of these stocks could perform well again next year. More importantly, they should all deliver solid long-term returns thanks to their strong underlying businesses.
I wouldn't go as far as saying that Apple, American Express, and Moody's are no-brainer buys for the new year. However, I do think they're no-brainer picks for long-term investors.
Should you invest $1,000 in Apple right now?
Before you buy stock in Apple, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Apple wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
See the 10 stocks
*Stock Advisor returns as of December 11, 2023
American Express is an advertising partner of The Ascent, a Motley Fool company. Keith Speights has positions in Apple and Berkshire Hathaway. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, and Moody's. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Other stocks in Berkshire's portfolio have delivered greater returns than Apple (NASDAQ: AAPL) has this year. Improving investor sentiment no doubt played a key role in Apple's impressive year-to-date gains. CEO Rob Fauber said that this impressive growth demonstrated "the resiliency and relevance of our business and the increasing demand for our unparalleled research, data, and solutions."
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Apple Other stocks in Berkshire's portfolio have delivered greater returns than Apple (NASDAQ: AAPL) has this year. The total is substantially more than it was 12 months ago thanks to Berkshire Hathaway's (NYSE: BRK.A) (NYSE: BRK.B) solid gains this year. Are Apple, American Express, and Moody's no-brainer stocks to buy for the new year after making Buffett a ton of money in 2023?
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Apple Other stocks in Berkshire's portfolio have delivered greater returns than Apple (NASDAQ: AAPL) has this year. Are Apple, American Express, and Moody's no-brainer stocks to buy for the new year after making Buffett a ton of money in 2023? Before you buy stock in Apple, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Apple wasn't one of them.
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Apple Other stocks in Berkshire's portfolio have delivered greater returns than Apple (NASDAQ: AAPL) has this year. But Berkshire Hathaway's gains stemmed in large part from great performances from several of its equity holdings. Are Apple, American Express, and Moody's no-brainer stocks to buy for the new year after making Buffett a ton of money in 2023?
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12070.0
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2023-12-14 00:00:00 UTC
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3 No-Brainer Dividend Stocks to Buy and Hold for 20 Years
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AAPL
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https://www.nasdaq.com/articles/3-no-brainer-dividend-stocks-to-buy-and-hold-for-20-years
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nan
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nan
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Successful investing is not as complicated as some make it out to be. Sticking with the brands you use every day, and holding for many years, is a great place to start.
Top stocks, such as Apple (NASDAQ: AAPL), Starbucks (NASDAQ: SBUX), and Costco Wholesale (NASDAQ: COST), have a long record of beating the market's average return. The best part is that these companies are so consistent in generating profitable growth from their businesses that they dish out a steady stream of growing dividends to shareholders.
Let's find out more why three Motley Fool contributors believe these stocks are no-brainer buys for the next 20 years.
Apple has massive cash resources to fund a growing dividend
John Ballard (Apple): Investors shouldn't focus only on buying stocks with high yields, since companies that pay high yields are either struggling financially or lacking growth.
A smart way to build up dividend income you'll need for retirement is focusing on companies that offer dividend growth. A company that has a long record of raising its dividend payment usually reflects growing demand for the company's products. Moreover, a multiyear record of dividend increases reflects management's confidence in the future of the company.
Apple is a great example. Over the past 10 years, its annual dividend grew by 130%, or more than double its fiscal 2013 dividend payment. It has increased the dividend for 12 consecutive years, and because it only pays out 14% of its earnings, Apple can continue increasing the dividend even if earnings are down during an investment year or recession.
While the dividend yield on Apple stock is below average at just 0.49% right now, its yield could increase over the next two decades. If Apple doubles its dividend in each decade through 2043, investors who buys shares today could potentially earn a dividend yield on their cost basis approaching 2%. If Apple also doubles its payout closer to 30% of its earnings, the yield could approach 4%.
Apple has attractive long-term growth prospects. It should continue to grow through expanding its installed base of active devices, launching new products (e.g., Vision Pro in 2024), and continuing to expand its services business, which should be a great source of profitable growth to help fund future dividend increases.
The iPhone, which makes up half of the company's annual revenue, has made Apple one of the most profitable companies in the world. Apple generated $99 billion in free cash flow on $383 billion of revenue over the past year. The resources it has will pave the way for more new products, more profitable growth, and growing dividends for years to come.
A buy-on-the-dip dividend opportunity
Jennifer Saibil (Starbucks): Starbucks doesn't have any competition as the leader in coffee shops, and it's opening new stores, innovating with beverages, and making other important changes to keep its top spot.
The company hired a new CEO this year, and it's pivoting from its prior strategy as a sit-down-and-hang-out kind of place to its new iteration as digital coffee king. People today want to order and pick up, and Starbucks is right there with them. It has invested in new equipment to speed up ordering and fill demand for a quick cup, and it's already demonstrating success with these efforts.
In the 2023 fiscal fourth quarter (ended Oct. 1), revenue increased 11% year over year, with an 8% increase in comparable sales. While there are already more than 38,000 stores (seemingly one on every corner), the international market is still undertapped, accounting for only 21% of sales. Starbucks still sees a massive opportunity for more stores, both at home and abroad, and it's highly focused on the China region, its second largest.
Despite the inflationary environment, the company has increased net income and generated robust free cash flow. Earnings per share (EPS) rose 39% over the prior-year period in the third quarter to $1.06, and it generated $1.2 billion in free cash flow. This powers its innovation and operations, as well as a very attractive dividend.
Starbucks has paid -- and raised -- its dividend for the past 13 years, and over that time it has increased more than 1,000% in value. At the current price, Starbucks' dividend yields 2.3%, or well above the S&P 500 average of 1.6%.
As Starbucks continues to drive sales and generate cash, it should be able to amply fund and raise its dividend for years. Starbucks stock is down 2% in 2023, and now is a great time to buy shares and benefit from a growing passive income stream.
A reliable cash machine
Jeremy Bowman (Costco): Not many stocks are as universally admired as Costco. It has a loyal customer base that regularly flocks to its stores to stock up on bargain-priced bulk goods.
And, Costco has one of the strongest moats in retail, thanks to its membership model and reputation for high-quality products at great prices, and the company routinely ranks among the highest in customer satisfaction in the retail industry.
Not surprisingly, Costco has also been a great stock to own. Since its IPO in 1985, the stock has returned a whopping 71,000% -- and that's not including dividends.
Today, Costco's prospects for outperformance still look bright as the company has fended off threats from e-commerce and Amazon, continues to open stores both in the U.S. and abroad, and is growing through the e-commerce channel as well.
As a dividend stock, Costco might not look like a cash-returning powerhouse. Its dividend yield is currently just 0.65%. But the company has a long history of paying special dividends every few years of as much as $10 a share, and its next special dividend, which has been anticipated, could be even higher than that.
No matter what happens in the broader economy, in the retail sector, or on the technology front, Costco looks like a good bet to continue delivering solid, steady growth, returning cash to shareholders and making money for them. It's one of the easiest investments you can own for the next 20 years.
Should you invest $1,000 in Apple right now?
Before you buy stock in Apple, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Apple wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
See the 10 stocks
*Stock Advisor returns as of December 11, 2023
Jennifer Saibil has no position in any of the stocks mentioned. Jeremy Bowman has positions in Starbucks. John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Costco Wholesale, and Starbucks. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Top stocks, such as Apple (NASDAQ: AAPL), Starbucks (NASDAQ: SBUX), and Costco Wholesale (NASDAQ: COST), have a long record of beating the market's average return. The best part is that these companies are so consistent in generating profitable growth from their businesses that they dish out a steady stream of growing dividends to shareholders. The company hired a new CEO this year, and it's pivoting from its prior strategy as a sit-down-and-hang-out kind of place to its new iteration as digital coffee king.
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Top stocks, such as Apple (NASDAQ: AAPL), Starbucks (NASDAQ: SBUX), and Costco Wholesale (NASDAQ: COST), have a long record of beating the market's average return. Apple has massive cash resources to fund a growing dividend John Ballard (Apple): Investors shouldn't focus only on buying stocks with high yields, since companies that pay high yields are either struggling financially or lacking growth. If Apple doubles its dividend in each decade through 2043, investors who buys shares today could potentially earn a dividend yield on their cost basis approaching 2%.
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Top stocks, such as Apple (NASDAQ: AAPL), Starbucks (NASDAQ: SBUX), and Costco Wholesale (NASDAQ: COST), have a long record of beating the market's average return. Apple has massive cash resources to fund a growing dividend John Ballard (Apple): Investors shouldn't focus only on buying stocks with high yields, since companies that pay high yields are either struggling financially or lacking growth. It has increased the dividend for 12 consecutive years, and because it only pays out 14% of its earnings, Apple can continue increasing the dividend even if earnings are down during an investment year or recession.
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Top stocks, such as Apple (NASDAQ: AAPL), Starbucks (NASDAQ: SBUX), and Costco Wholesale (NASDAQ: COST), have a long record of beating the market's average return. A company that has a long record of raising its dividend payment usually reflects growing demand for the company's products. It has increased the dividend for 12 consecutive years, and because it only pays out 14% of its earnings, Apple can continue increasing the dividend even if earnings are down during an investment year or recession.
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12071.0
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2023-12-14 00:00:00 UTC
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Almost Half of Warren Buffett-led Berkshire Hathaway's $365 Billion Portfolio Is Invested in Only 1 Stock
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AAPL
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https://www.nasdaq.com/articles/almost-half-of-warren-buffett-led-berkshire-hathaways-%24365-billion-portfolio-is-invested
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nan
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nan
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Warren Buffett is arguably the greatest capital allocator ever. His track record at the helm of Berkshire Hathaway proves this: The conglomerate's shares have increased by 40,000% in the last 40 years.
Scouring Berkshire's equities portfolio for potential investments might be a smart idea for the average investor. By doing so, you'll quickly realize that about 49% of the massive $365 billion portfolio is invested in just one stock: Apple (NASDAQ: AAPL).
It's worth looking at some of the reasons Buffett decided to buy this FAANG stock in the first place. Then, by considering the situation today, investors can decide if Apple still makes for a smart investment.
Almost a no-brainer investment
Berkshire Hathaway first purchased shares of Apple during the first quarter of 2016. Since Jan. 1 of that year to Dec. 12 of this year, the iPhone maker's stock price has skyrocketed 639%. That easily outpaces the 190% rise of the Nasdaq Composite.
Looking back almost eight years, it's not hard to understand why Buffett was attracted to Apple as an investment opportunity. I think there were three key reasons.
For starters, Buffett realized that Apple wasn't just a typical tech business. Instead, it was one of the strongest consumer brands on the planet. And this supported Apple's economic moat, while giving the company proven pricing power.
Next, Apple is an extremely sound enterprise financially. In fiscal 2015 (ended Sept. 26 of that year), the business posted a gross margin of 40.1%, an operating margin of 30%, and free cash flow of $70 billion. And at the end of that fiscal year, it had $206 billion in cash, cash equivalents, and marketable securities on the balance sheet.
Lastly, while Buffett does appreciate wonderful businesses, he will not overpay for them. Apple shares traded at an average price-to-earnings (P/E) multiple of 10.6. In hindsight, that is a ridiculously cheap valuation, especially for such a dominant company.
In 2016, Apple hit on all of the characteristics that Buffett usually looks for in a stock. It was almost a no-brainer investment decision for the Oracle of Omaha at the time.
Is Apple a smart stock to buy right now?
Clearly, Apple worked out as a fantastic investment. And based on the dollar value of gains, it might be the most financially lucrative bet that Buffett has ever made. Even this year, the stock has soared 50%, so there is strong momentum.
Investors who have been on the sidelines might be looking at Apple as a potential buying opportunity right now. After all, it's still Berkshire's largest position by far. However, I don't believe this is a smart stock to buy.
Apple's current valuation isn't remotely as cheap as it was in early 2016. As of this writing, shares trade at a P/E of 31.8, triple the range that Buffett first purchased them at. All else equal, this introduces a major headwind for investors looking to produce solid returns, as the optimism is fully priced in.
And a valid argument can be made that Apple simply doesn't have the growth opportunities today that it did in years past, thanks to its already massive size. In each of the last four fiscal quarters, sales declined on a year-over-year basis, a sign that this is a mature business nowadays. Paying such a steep valuation seems like a mistake.
The way things stand, Apple stock just doesn't make for a smart investment.
Should you invest $1,000 in Apple right now?
Before you buy stock in Apple, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Apple wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
See the 10 stocks
*Stock Advisor returns as of December 11, 2023
Neil Patel and his clients have no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By doing so, you'll quickly realize that about 49% of the massive $365 billion portfolio is invested in just one stock: Apple (NASDAQ: AAPL). His track record at the helm of Berkshire Hathaway proves this: The conglomerate's shares have increased by 40,000% in the last 40 years. And a valid argument can be made that Apple simply doesn't have the growth opportunities today that it did in years past, thanks to its already massive size.
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By doing so, you'll quickly realize that about 49% of the massive $365 billion portfolio is invested in just one stock: Apple (NASDAQ: AAPL). Almost a no-brainer investment Berkshire Hathaway first purchased shares of Apple during the first quarter of 2016. Before you buy stock in Apple, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Apple wasn't one of them.
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By doing so, you'll quickly realize that about 49% of the massive $365 billion portfolio is invested in just one stock: Apple (NASDAQ: AAPL). The way things stand, Apple stock just doesn't make for a smart investment. Before you buy stock in Apple, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Apple wasn't one of them.
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By doing so, you'll quickly realize that about 49% of the massive $365 billion portfolio is invested in just one stock: Apple (NASDAQ: AAPL). Almost a no-brainer investment Berkshire Hathaway first purchased shares of Apple during the first quarter of 2016. Before you buy stock in Apple, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Apple wasn't one of them.
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12072.0
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2023-12-14 00:00:00 UTC
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2 Hot Warren Buffett Stocks That Raised Their Dividends This Year
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AAPL
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https://www.nasdaq.com/articles/2-hot-warren-buffett-stocks-that-raised-their-dividends-this-year
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nan
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nan
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The equity portfolio of Warren Buffett's investment vehicle Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) is larger than the gross domestic products of many small countries. So you can imagine the rivers of dividend payments the portfolio takes in on an annual basis.
This year has been quite a gusher in that respect for Berkshire, as two of the portfolio's largest holdings declared dividend raises. Let's dig into the payout enhancements from those two big-name companies, Apple (NASDAQ: AAPL) and Bank of America (NYSE: BAC).
1. Apple
Of the two companies, Apple was the first to crank its distribution higher. It declared a 4% dividend raise in May, which pushed the quarterly payout to $0.24 per share. This doesn't exactly make it a high yielder at 0.5% based on the latest stock price.
Regardless, Apple is a cornerstone investment in Berkshire's stock portfolio, to the point where the tech giant comprises a whopping 49% of it. All told, the Berkshire Apple position is worth more than $178 billion at the current share price.
With that kind of commitment, you can bet that Buffett and company are among Apple's most significant and committed bulls. That belief in the company is paying off with the increased dividends -- the May raise marked the 11th year in a row it has upped the payout.
That low yield aside, in other ways Apple has been showing the characteristics of a mature dividend stock with modest growth (or even slight declines, as the company has reported in recent quarters).
Yet the foundational iPhone, now in its 15th (!) iteration, continues to be a hot seller, and services revenue keeps climbing to new highs. Meanwhile, as ever, management is doing a good job of keeping up those comparatively quite lofty net margins (26% in the most recently reported quarter).
We should never thoughtlessly copy the moves of a popular investor or portfolio manager. But Apple is a strong company that generates geysers of cash, and is happy to return a bit of it to its investors.
2. Bank of America
Any guesses as to which storied lender has the second-highest weighting in Berkshire's hallowed equity portfolio? Correct! It's Bank of America (NYSE: BAC), which comprises just under 9% of the total. After the Federal Reserve's recent set of (broadly quite successful) bank stress tests, Bank of America declared a dividend raise of 9%, to $0.24 per share per quarterly distribution. These days, that yields 3%.
The health of a bank is due to prudent management, of course, but it also depends rather heavily on the health of its economy.
Yes, Americans remain worried about inflation eating into their paychecks, but for the most part growth continues to be in the cards. When an economy is thriving, business and individual confidence tend to rise, and those entities are inclined to borrow more money. That, of course, is the core activity of traditional banks.
As a highly visible lender in the U.S., Bank of America has been reaping the benefits of being a major operator in the economy.
In its latest reported quarter, the company managed to increase both its loans and leases outstanding and its credit/debit card spend by around 3% from a year earlier. Not coincidentally, total revenue also advanced by that figure. Combined with increased efficiency engineered by a good management team, net income rose at a sturdy 10% clip.
Meanwhile, within the bank's results were some very encouraging developments. For example, it managed to increase its count of relationships in the lucrative global wealth and investment management segment by 20%. And its global markets division produced 8% growth in securities sales and trading revenue.
As long as the U.S. economy is more or less humming along, Bank of America should continue to do well. And Buffett and his team will continue to own plenty of it.
Should you invest $1,000 in Apple right now?
Before you buy stock in Apple, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Apple wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
See the 10 stocks
*Stock Advisor returns as of December 11, 2023
Bank of America is an advertising partner of The Ascent, a Motley Fool company. Eric Volkman has positions in Apple. The Motley Fool has positions in and recommends Apple, Bank of America, and Berkshire Hathaway. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Let's dig into the payout enhancements from those two big-name companies, Apple (NASDAQ: AAPL) and Bank of America (NYSE: BAC). That low yield aside, in other ways Apple has been showing the characteristics of a mature dividend stock with modest growth (or even slight declines, as the company has reported in recent quarters). In its latest reported quarter, the company managed to increase both its loans and leases outstanding and its credit/debit card spend by around 3% from a year earlier.
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Let's dig into the payout enhancements from those two big-name companies, Apple (NASDAQ: AAPL) and Bank of America (NYSE: BAC). The equity portfolio of Warren Buffett's investment vehicle Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) is larger than the gross domestic products of many small countries. After the Federal Reserve's recent set of (broadly quite successful) bank stress tests, Bank of America declared a dividend raise of 9%, to $0.24 per share per quarterly distribution.
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Let's dig into the payout enhancements from those two big-name companies, Apple (NASDAQ: AAPL) and Bank of America (NYSE: BAC). After the Federal Reserve's recent set of (broadly quite successful) bank stress tests, Bank of America declared a dividend raise of 9%, to $0.24 per share per quarterly distribution. Before you buy stock in Apple, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Apple wasn’t one of them.
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Let's dig into the payout enhancements from those two big-name companies, Apple (NASDAQ: AAPL) and Bank of America (NYSE: BAC). As long as the U.S. economy is more or less humming along, Bank of America should continue to do well. And Buffett and his team will continue to own plenty of it.
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12073.0
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2023-12-14 00:00:00 UTC
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PayPal Is a Smart Stock to Buy on the Dip, but There's 1 Warning
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AAPL
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https://www.nasdaq.com/articles/paypal-is-a-smart-stock-to-buy-on-the-dip-but-theres-1-warning
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nan
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nan
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PayPal (NASDAQ: PYPL) was once one of the best-performing stocks out there. From its spinoff from eBay in July 2015 to its peak price in July 2021, shares rose about 740%, a monster gain.
But it's been all downhill since then. As of this writing, the shares are 80% off that all-time high.
Despite this poor performance, this payments and fintech giant is still a smart stock to buy, especially on the dip. But investors should heed one warning sign.
A quality business with great attributes
I think there are many reasons to like PayPal. By operating a two-sided platform, with 35 million merchants and 393 million individual accounts, this business benefits from network effects. The greater the adoption PayPal gets from both user groups, the more valuable the platform becomes because there's higher utility. This is what makes up the company's economic moat.
The stock's performance doesn't show it, but this is an extremely profitable enterprise. PayPal consistently generates positive free cash flow (what's left from cash flow after business investments and capital expenditures), with $4.6 billion estimated for 2023. Plus, management is focused on aggressively buying back shares.
I also want to point out that PayPal is still posting healthy growth, even in the face of macro headwinds. Revenue and total payment volume grew 8% and 15%, respectively, in the most recent quarter.
For all these positive qualities, investors are only being asked to pay a price-to-earnings ratio of 18.5. That's a discount to the overall S&P 500.
Competition adds uncertainty to the mix
Based on the points outlined here, PayPal isn't like most fintech companies out there. This is a great business that has a track record of success. And it looks like a smart investment to make right now.
However, astute investors are always concerned about any risk factors. In PayPal's case, we can't ignore how incredibly competitive the payments landscape has become.
This shouldn't be surprising. PayPal has long been at the forefront of the rise of digital payments. And this has been the case both for consumers and merchants. This success, though, attracted an army of competitors.
On the merchant side, PayPal competes in a variety of areas, like fees, fraud minimization, authorization rates, and the customer experience. From a merchant's perspective, there are a lot of service providers to choose from that go up against PayPal's Braintree. Privately held Stripe, Shopify, and Adyen are formidable opponents, all posing challenges to PayPal.
Consumers probably care most about ease of use and ubiquitous acceptance. On that latter point, PayPal outshines rivals. In 2022, it was the most widely accepted digital wallet among the 1,500 biggest retailers in North America and Europe, with nearly 80% penetration.
From personal experience, though, I have rarely used PayPal as a checkout option. And most of the people I know don't, either. I use Venmo all the time (also a PayPal holding), but the business doesn't generate any revenue from me sending and receiving money to friends.
On the other hand, I find myself using a key competitor service, Apple Pay, almost every day, it seems like. The fact that Apple owns the mobile operating platform and can put its payment methodology above others is a key advantage.
Shopify's Shop Pay, Alphabet's Google Pay, and Block's Cash App are other popular consumer-facing digital wallets that compete with PayPal's offering.
From an investment perspective, when aiming to own a stock for the next five to 10 years, the competitive landscape must factor into the decision-making process. That's because changes that happen in the industry can either positively or negatively impact a particular business and its trajectory.
Investors can't ignore the heightened competition, which adds an element of heightened risk to the PayPal investing thesis. If you still like the stock, initiating a tiny position could be the right move.
Should you invest $1,000 in PayPal right now?
Before you buy stock in PayPal, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and PayPal wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
See the 10 stocks
*Stock Advisor returns as of December 11, 2023
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Neil Patel and his clients have no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Adyen, Alphabet, Apple, Block, PayPal, and Shopify. The Motley Fool recommends eBay and recommends the following options: short December 2023 $67.50 puts on PayPal and short January 2024 $45 calls on eBay. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Competition adds uncertainty to the mix Based on the points outlined here, PayPal isn't like most fintech companies out there. On the merchant side, PayPal competes in a variety of areas, like fees, fraud minimization, authorization rates, and the customer experience. I use Venmo all the time (also a PayPal holding), but the business doesn't generate any revenue from me sending and receiving money to friends.
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Investors can't ignore the heightened competition, which adds an element of heightened risk to the PayPal investing thesis. The Motley Fool has positions in and recommends Adyen, Alphabet, Apple, Block, PayPal, and Shopify. The Motley Fool recommends eBay and recommends the following options: short December 2023 $67.50 puts on PayPal and short January 2024 $45 calls on eBay.
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Investors can't ignore the heightened competition, which adds an element of heightened risk to the PayPal investing thesis. Before you buy stock in PayPal, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and PayPal wasn't one of them. The Motley Fool has positions in and recommends Adyen, Alphabet, Apple, Block, PayPal, and Shopify.
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In PayPal's case, we can't ignore how incredibly competitive the payments landscape has become. On the other hand, I find myself using a key competitor service, Apple Pay, almost every day, it seems like. Before you buy stock in PayPal, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and PayPal wasn't one of them.
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12074.0
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2023-12-14 00:00:00 UTC
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China's ban on Apple's iPhone accelerates- Bloomberg News
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AAPL
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https://www.nasdaq.com/articles/chinas-ban-on-apples-iphone-accelerates-bloomberg-news
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nan
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nan
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Adds details from report throughout
Dec 15 (Reuters) - More Chinese agencies and state-backed companies across the country have asked their staff to not bring Apple AAPL.O iPhones and other foreign devices to work, Bloomberg News reported on Friday, citing people familiar with the matter.
For over a decade, China has been seeking to reduce reliance on foreign technologies, asking state-affiliated firms such as banks to switch to local software and promoting domestic semiconductor chip manufacturing.
Multiple state firms and government departments across at least eight provinces have instructed employees in the past month or two to start carrying local brands, the Bloomberg News report said.
Apple did not immediately respond to Reuters' request for a comment.
In December, smaller firms and agencies in lower-tier cities from provinces including Zhejiang, Shandong, Liaoning and central Hebei, which houses the world's largest iPhone factory, issued their own verbal directives, the Bloomberg News report said.
Reuters reported in September that staff in at least three ministries and government bodies were told not to use iPhones at work.
Apple's shares were marginally down at $196.50 in extended trading.
(Reporting by Arsheeya Bajwa in Bengaluru; Editing by Shinjini Ganguli)
((ArsheeyaSingh.Bajwa@thomsonreuters.com; +91 8510015800;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Adds details from report throughout Dec 15 (Reuters) - More Chinese agencies and state-backed companies across the country have asked their staff to not bring Apple AAPL.O iPhones and other foreign devices to work, Bloomberg News reported on Friday, citing people familiar with the matter. For over a decade, China has been seeking to reduce reliance on foreign technologies, asking state-affiliated firms such as banks to switch to local software and promoting domestic semiconductor chip manufacturing. Multiple state firms and government departments across at least eight provinces have instructed employees in the past month or two to start carrying local brands, the Bloomberg News report said.
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Adds details from report throughout Dec 15 (Reuters) - More Chinese agencies and state-backed companies across the country have asked their staff to not bring Apple AAPL.O iPhones and other foreign devices to work, Bloomberg News reported on Friday, citing people familiar with the matter. Multiple state firms and government departments across at least eight provinces have instructed employees in the past month or two to start carrying local brands, the Bloomberg News report said. In December, smaller firms and agencies in lower-tier cities from provinces including Zhejiang, Shandong, Liaoning and central Hebei, which houses the world's largest iPhone factory, issued their own verbal directives, the Bloomberg News report said.
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Adds details from report throughout Dec 15 (Reuters) - More Chinese agencies and state-backed companies across the country have asked their staff to not bring Apple AAPL.O iPhones and other foreign devices to work, Bloomberg News reported on Friday, citing people familiar with the matter. Multiple state firms and government departments across at least eight provinces have instructed employees in the past month or two to start carrying local brands, the Bloomberg News report said. In December, smaller firms and agencies in lower-tier cities from provinces including Zhejiang, Shandong, Liaoning and central Hebei, which houses the world's largest iPhone factory, issued their own verbal directives, the Bloomberg News report said.
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Adds details from report throughout Dec 15 (Reuters) - More Chinese agencies and state-backed companies across the country have asked their staff to not bring Apple AAPL.O iPhones and other foreign devices to work, Bloomberg News reported on Friday, citing people familiar with the matter. For over a decade, China has been seeking to reduce reliance on foreign technologies, asking state-affiliated firms such as banks to switch to local software and promoting domestic semiconductor chip manufacturing. Multiple state firms and government departments across at least eight provinces have instructed employees in the past month or two to start carrying local brands, the Bloomberg News report said.
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12075.0
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2023-12-14 00:00:00 UTC
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Got $1,000? Here Are 2 Stocks to Buy for the Long Haul
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AAPL
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https://www.nasdaq.com/articles/got-%241000-here-are-2-stocks-to-buy-for-the-long-haul-0
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nan
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nan
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The new year is right around the corner, with now an excellent time to consider investing in stocks likely to flourish in 2024 and beyond.
As two companies that have won over consumers worldwide, Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN) are two attractive options. One dominates consumer tech, with leading market shares in smartphones, tablets, headphones, and wearables. Meanwhile, the other is killing it in e-commerce alongside a leading position in cloud computing that could see it profit significantly from artificial intelligence (AI).
Over the last five years, shares in Apple and Amazon have risen around 365% and 79%, respectively. While past growth isn't always an indicator of what's to come, these companies have the financial resources and brand recognition to continue expanding well into the future.
The massive potential of these tech giants means you won't need tens of thousands of dollars to see big gains over the long term. So, got $1,000? Here are two stocks to buy for the long haul.
1. Apple
Apple's stock has hit record heights this year, achieving a market cap above $3 trillion for the first time in June. The milestone came even while the company faced repeated declines in its product segments, which suffered from macroeconomic headwinds affecting businesses across tech.
The iPhone maker posted a revenue dip of 3% year over year in fiscal 2023. Yet loyal investors have largely stuck with the company, trusting its ability to overcome current challenges and deliver stellar gains over the long term.
Their faith in Apple is not unfounded. The tech giant remains a favorite among consumers, who continued to show preference for Apple's products. U.S. smartphone shipments fell throughout this year, tumbling 19% year over year in the third quarter of 2023.
As a result, Samsung's market share fell from 27% in Q1 2023 to 22% in Q3. However, Apple has outperformed its biggest competitor by growing its market share from 52% to 55% in the same period. The popularity of Apple products suggests it has much to gain from the market's inevitable recovery.
In the meantime, it is massively profiting from its digital services business, which posted revenue growth of 9% in fiscal 2023. Income from the App Store and subscription services like Apple TV+ and iCloud make up the company's fastest-growing division, delivering profit margins around 70%.
Data by YCharts
Apple's forward price-to-earnings ratio of 30 makes it a slightly expensive buy. However, as the chart shows, the company hit close to $100 billion in free cash flow, more than some of its biggest competitors in tech. The company has earned its high valuation and will likely go far over the long term, as it has the funds to continue investing in its business.
Dedicating a little over half of your $1,000 investment would yield three shares in Apple, costing about $580 at its current position.
2. Amazon
Amazon has come a long way since starting as an online book retailer in Seattle almost 30 years ago. The company now boasts majority market shares in e-commerce in dozens of countries and is home to the world's largest cloud platform, Amazon Web Services (AWS). Meanwhile, the potency of its services has resulted in leading positions in countless other sectors, such as attaining the second-largest market share in streaming with Prime Video.
The vast user base of its online retail site has even seen Amazon become the biggest video game retailer in the U.S., responsible for 68% of sales as of September (per Statista).
Amazon's expansion across tech means it has countless opportunities for growth over the long term. According to Fortune Business Insights, the cloud market alone is projected to hit a value of $678 billion this year and expand at a compound annual growth rate of 20% until at least 2030.
Amazon has the largest cloud market share and is heavily investing in expanding its position, adding new AI capabilities to AWS as it cashes in on increased demand for the technology.
Data by YCharts
Amazon currently has the lowest price-to-sales ratio (P/S) of the tech firms in the chart above. The metric is calculated by dividing a company's market cap by its trailing-12-month revenue, with Amazon's P/S a bargain compared to its peers. Regarding revenue, Amazon's stock offers the most value out of these companies, making it an attractive option right now.
The remainder of your $1,000 investment (and maybe an additional $20, depending on price fluctuation) would buy about three shares in Amazon. The company has a solid outlook over the next decade, with its shares the perfect buy for investors in for the long haul.
Should you invest $1,000 in Apple right now?
Before you buy stock in Apple, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Apple wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
See the 10 stocks
*Stock Advisor returns as of December 11, 2023
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, and Microsoft. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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As two companies that have won over consumers worldwide, Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN) are two attractive options. Yet loyal investors have largely stuck with the company, trusting its ability to overcome current challenges and deliver stellar gains over the long term. The company now boasts majority market shares in e-commerce in dozens of countries and is home to the world's largest cloud platform, Amazon Web Services (AWS).
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As two companies that have won over consumers worldwide, Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN) are two attractive options. Before you buy stock in Apple, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Apple wasn't one of them. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors.
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As two companies that have won over consumers worldwide, Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN) are two attractive options. Apple Apple's stock has hit record heights this year, achieving a market cap above $3 trillion for the first time in June. The company now boasts majority market shares in e-commerce in dozens of countries and is home to the world's largest cloud platform, Amazon Web Services (AWS).
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As two companies that have won over consumers worldwide, Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN) are two attractive options. The tech giant remains a favorite among consumers, who continued to show preference for Apple's products. Should you invest $1,000 in Apple right now?
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12076.0
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2023-12-14 00:00:00 UTC
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After Hours Most Active for Dec 15, 2023 : UBER, LCID, PFE, KO, AAPL, PCG, EBAY, ALK, MSFT, SEE, CSCO, XP
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-dec-15-2023-%3A-uber-lcid-pfe-ko-aapl-pcg-ebay-alk-msft-see-csco
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nan
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nan
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The NASDAQ 100 After Hours Indicator is down -15.94 to 16,607.51. The total After hours volume is currently 693,412,919 shares traded.
The following are the most active stocks for the after hours session:
Uber Technologies, Inc. (UBER) is -0.25 at $61.61, with 63,192,526 shares traded. As reported by Zacks, the current mean recommendation for UBER is in the "buy range".
Lucid Group, Inc. (LCID) is +0.01 at $4.78, with 50,992,533 shares traded. As reported in the last short interest update the days to cover for LCID is 10.347728; this calculation is based on the average trading volume of the stock.
Pfizer, Inc. (PFE) is unchanged at $26.63, with 29,902,776 shares traded. PFE's current last sale is 73.97% of the target price of $36.
Coca-Cola Company (The) (KO) is +0.08 at $58.68, with 17,162,260 shares traded. As reported by Zacks, the current mean recommendation for KO is in the "buy range".
Apple Inc. (AAPL) is -1.23 at $196.34, with 16,645,942 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Pacific Gas & Electric Co. (PCG) is -0.12 at $17.64, with 15,690,322 shares traded. As reported by Zacks, the current mean recommendation for PCG is in the "buy range".
eBay Inc. (EBAY) is unchanged at $41.75, with 13,980,742 shares traded. EBAY's current last sale is 92.78% of the target price of $45.
Alaska Air Group, Inc. (ALK) is +0.0016 at $38.95, with 13,911,522 shares traded. As reported by Zacks, the current mean recommendation for ALK is in the "buy range".
Microsoft Corporation (MSFT) is -0.83 at $369.90, with 13,513,771 shares traded. As reported by Zacks, the current mean recommendation for MSFT is in the "buy range".
Sealed Air Corporation (SEE) is +0.0016 at $35.70, with 13,430,373 shares traded. SEE's current last sale is 91.54% of the target price of $39.
Cisco Systems, Inc. (CSCO) is unchanged at $49.87, with 12,634,216 shares traded. CSCO's current last sale is 90.67% of the target price of $55.
XP Inc. (XP) is +0.1 at $24.64, with 12,332,857 shares traded. As reported by Zacks, the current mean recommendation for XP is in the "buy range".
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc. (AAPL) is -1.23 at $196.34, with 16,645,942 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". As reported by Zacks, the current mean recommendation for UBER is in the "buy range".
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Apple Inc. (AAPL) is -1.23 at $196.34, with 16,645,942 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 693,412,919 shares traded.
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Apple Inc. (AAPL) is -1.23 at $196.34, with 16,645,942 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 693,412,919 shares traded.
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As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Apple Inc. (AAPL) is -1.23 at $196.34, with 16,645,942 shares traded. As reported by Zacks, the current mean recommendation for UBER is in the "buy range".
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12077.0
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2023-12-14 00:00:00 UTC
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Insider Buying: C-Suite EV Executive Just Loaded Up on $2M of this Auto Stock
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AAPL
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https://www.nasdaq.com/articles/insider-buying%3A-c-suite-ev-executive-just-loaded-up-on-%242m-of-this-auto-stock
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nan
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nan
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When executives, directors, and major shareholders buy company shares, it's often considered a bullish sign. As per Peter Lynch, while company insiders might sell their shares for any number of reasons, they tend to buy stock for only one reason - because they think the share price is going higher.
Publicly available through Form 4 filings, insider buys by C-suite executives are particularly notable - like the one that just popped up on Ford Motor Company (F) after a long two-year drought of insider buying on the automaker. Here's a closer look.
About Ford
Synonymous with American engineering and an icon of the automobile industry, Henry Ford founded Ford Motor Company in Dearborn, Mich., in 1903. It has gone on to become a global auto giant, designing, manufacturing, and selling cars, trucks, SUVs, electric vehicles, and commercial vehicles. They also offer financing, leasing, and service solutions.
Commanding a market cap of $48.3 billion, Ford stock is up less than 3% on a YTD basis. The stock is underperforming the broader S&P 500 Index ($SPX), up over 22%, by a considerable margin.
www.barchart.com
A Rare C-Suite Buy on Ford Stock
John Douglas Field is the Chief EV, Digital and Design Officer at Ford. Formerly of Apple (AAPL) and Tesla (TSLA), this is Field's second stint with Ford after serving as a development engineer from 1987 to 1993. In his current role, Field plays a vital role in developing Ford's electric vehicles, creating digital platforms and software for Ford’s entire product lineup, and leading the company’s vehicle and digital design studios.
On Dec. 8, Field purchased 182,000 shares of the company at an average price of $11.0472 per share for a total value of just over $2 million. This marks the first insider buy on Ford stock since Feb. 23, 2021, and the first purchase by a member of the C-suite since April 2020.
Though Ford has underperformed on a YTD basis, the stock is already up more than 8% from Field's Dec. 8 entry price.
Ford's EV Future After UAW Strikes
The UAW strike against Detroit's “Big Three” had a material impact on Ford's operations, but the automaker has since updated its guidance to reflect expected labor costs through 2028, along with a reduction to its earnings guidance. This offers some key visibility for shareholders and removes a significant overhang.
During Q3, revenues were up 11% from the year-ago period to $44 billion, supported by sales growth across its gas, hybrid and electric vehicles. All three core segments of the company reported year-over-year revenue increases, including Ford Blue (revenues of $25.6 billion, up 8% YoY), Ford Pro (revenues of $13.8 billion, up 15% YoY), and Ford E (revenues of $1.8 billion, up 29% YoY).
EPS improved 30% from the prior year to $0.39, up 30% from the previous year, but fell short of Wall Street's expectations.
The company closed the quarter with $51 billion of available liquidity. For the nine months ended Sept. 30, it recorded net cash from operating activities of $12.4 billion, substantially up from $5.7 billion in the same period last year.
Ford has scaled back its electric vehicle (EV) ambitions amid a tough macro environment, but remains committed to the market. Recently, Ford announced a partnership with Xcel Energy (XEL) to develop 30,000 commercial EV charging ports in Xcel Energy service territories across the U.S. by 2030.
Is Ford Stock a Good Value?
Ford stock currently offers a forward dividend yield right around 5%, based on the quarterly dividend of $0.15. Management has said they remain committed to returning 40% to 50% of free cash flow to shareholders.
At current levels, the auto stock looks attractively valued. Ford stock is trading at a forward price/earnings ratio of 6.44, forward price/sales of 0.29, and price/book of 1.09, representing a significant discount to sector medians.
Overall, analysts remain optimistic about the stock, which has an average “Moderate Buy” rating and a mean target price of $14.23. This denotes an expected upside potential of about 18.7% from current levels. Out of 14 analysts covering Ford shares, 6 have a “Strong Buy” rating, 2 have a “Moderate Buy” rating, 4 have a “Hold” rating, and 2 have a “Strong Sell” rating.
www.barchart.com
On the date of publication, Pathikrit Bose did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Formerly of Apple (AAPL) and Tesla (TSLA), this is Field's second stint with Ford after serving as a development engineer from 1987 to 1993. In his current role, Field plays a vital role in developing Ford's electric vehicles, creating digital platforms and software for Ford’s entire product lineup, and leading the company’s vehicle and digital design studios. During Q3, revenues were up 11% from the year-ago period to $44 billion, supported by sales growth across its gas, hybrid and electric vehicles.
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Formerly of Apple (AAPL) and Tesla (TSLA), this is Field's second stint with Ford after serving as a development engineer from 1987 to 1993. In his current role, Field plays a vital role in developing Ford's electric vehicles, creating digital platforms and software for Ford’s entire product lineup, and leading the company’s vehicle and digital design studios. All three core segments of the company reported year-over-year revenue increases, including Ford Blue (revenues of $25.6 billion, up 8% YoY), Ford Pro (revenues of $13.8 billion, up 15% YoY), and Ford E (revenues of $1.8 billion, up 29% YoY).
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Formerly of Apple (AAPL) and Tesla (TSLA), this is Field's second stint with Ford after serving as a development engineer from 1987 to 1993. www.barchart.com A Rare C-Suite Buy on Ford Stock John Douglas Field is the Chief EV, Digital and Design Officer at Ford. In his current role, Field plays a vital role in developing Ford's electric vehicles, creating digital platforms and software for Ford’s entire product lineup, and leading the company’s vehicle and digital design studios.
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Formerly of Apple (AAPL) and Tesla (TSLA), this is Field's second stint with Ford after serving as a development engineer from 1987 to 1993. Though Ford has underperformed on a YTD basis, the stock is already up more than 8% from Field's Dec. 8 entry price. For the nine months ended Sept. 30, it recorded net cash from operating activities of $12.4 billion, substantially up from $5.7 billion in the same period last year.
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2023-12-14 00:00:00 UTC
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Want to Be in the AI Millionaires Club? 3 Top Stocks You Need to Own Now
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AAPL
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https://www.nasdaq.com/articles/want-to-be-in-the-ai-millionaires-club-3-top-stocks-you-need-to-own-now
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Artificial intelligence (AI) has been the dominant trade in 2023, with no shortage of AI stocks to buy. Just about any stock linked to AI has risen over the last 12 months, from heavyweights such as Microsoft (NASDAQ:MSFT) to smaller start-ups such as C3.ai (NYSE:AI). While some analysts say AI is played out and fully priced into the market, don’t believe it.
As technology that is in its infancy and likely to continue dominating society for the foreseeable future, AI can be expected to be a stock market driver for many years. Most companies are only now beginning to monetize the technology. And Fortune Business Insights expects theglobal marketfor AI to quadruple to $2 trillion by 2030. Want to be in the AI millionaires club? Here are three top stocks you need to own now.
Adobe (ADBE)
Source: Tattoboo / Shutterstock
Admittedly, its guidance for the coming year wasn’t great, but software giant Adobe (NASDAQ:ADBE) remains a great bet on the future of AI. Investors can now buy ADBE stock a little cheaper, with the share price down 6% after the company issued a weak outlook for 2024. Lost in the concern over the guidance was that Adobe’s fiscal fourth quarter earnings beat Wall Street forecasts, with the company reporting earnings per share (EPS) of $4.27 compared to the $4.14 that was anticipated.
Revenue in the latest quarter totaled $5.05 billion versus $5.03 billion that analysts estimated. The company’s revenue grew 12% from a year ago while its net income increased 26% to $1.48 billion, or $3.23 per share. During the quarter, Adobe increased the costs of some of its software subscriptions, notably those that now include AI. In the most recent quarter, Adobe’s Firefly generative AI feature became available in the company’s Photoshop and Illustrator programs, and it is now monetizing AI.
ADBE stock has increased 74% in 2023.
Apple (AAPL)
Source: sylv1rob1 / Shutterstock.com
For a less obvious AI play, consider consumer electronics giant Apple (NASDAQ:AAPL). In early 2024, the company will release its Vision Pro mixed reality headset, Apple’s first entirely new product since the launch of the Apple Watch in 2014. There’s speculation that the Vision Pro headset could be Apple’s push into video games and that the company is eyeing AI-based gaming as a future endeavor. Apple CEO Tim Cook has said that the company is investing in AI and already makes its own microchips for its iPhones and MacBook computers.
While we wait for Apple to clarify its intentions for AI, it’s important to note that the stock is on a tear, recently closing at an all-time high on a split-adjusted basis. Apple’s share price has now risen 59% in 2023, putting the company’s market capitalization at $3.08 trillion, the biggest of any publicly traded company. Over the past year, Apple’s market value has grown by nearly $1 trillion. Analysts see continued catalysts for AAPL stock from renewed growth in its iPhone sales and the continued expansion of its services arm, which includes its streaming platform. Plus, new AI products.
Advanced Micro Devices (AMD)
Source: Pamela Marciano / Shutterstock.com
Now for more or a slam dunk when it comes to AI. That would be chipmaker Advanced Micro Devices (NASDAQ:AMD). The company’s share price has gained 20% since the start of December when the company introduced a new series of microchips called the “Ryzen 8040,” aimed at boosting AI applications by up to 60%. The new chips will be incorporated into laptops and personal computers (PCs) made by companies such as Dell Technologies (NYSE:DELL) starting in early 2024.
AMD also announced that its new MI300X accelerator microchip is now available for sale. That chip is used in data centers and directly competes with Nvidia’s (NASDAQ:NVDA) AI data center chips. While investors and analysts love the new AI chips, they are also responding to AMD executives who recently said that they expect the AI data center chip to generate $2 billion of revenue for all of 2024. AMD stock is up 120% in 2023 with continued momentum behind it.
On the date of publication, Joel Baglole held long positions in MSFT, AAPL and NVDA. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.
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The post Want to Be in the AI Millionaires Club? 3 Top Stocks You Need to Own Now appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com For a less obvious AI play, consider consumer electronics giant Apple (NASDAQ:AAPL). Analysts see continued catalysts for AAPL stock from renewed growth in its iPhone sales and the continued expansion of its services arm, which includes its streaming platform. On the date of publication, Joel Baglole held long positions in MSFT, AAPL and NVDA.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com For a less obvious AI play, consider consumer electronics giant Apple (NASDAQ:AAPL). Analysts see continued catalysts for AAPL stock from renewed growth in its iPhone sales and the continued expansion of its services arm, which includes its streaming platform. On the date of publication, Joel Baglole held long positions in MSFT, AAPL and NVDA.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com For a less obvious AI play, consider consumer electronics giant Apple (NASDAQ:AAPL). Analysts see continued catalysts for AAPL stock from renewed growth in its iPhone sales and the continued expansion of its services arm, which includes its streaming platform. On the date of publication, Joel Baglole held long positions in MSFT, AAPL and NVDA.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com For a less obvious AI play, consider consumer electronics giant Apple (NASDAQ:AAPL). Analysts see continued catalysts for AAPL stock from renewed growth in its iPhone sales and the continued expansion of its services arm, which includes its streaming platform. On the date of publication, Joel Baglole held long positions in MSFT, AAPL and NVDA.
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2023-12-14 00:00:00 UTC
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ETF Market Outlook & Investing Strategies for 2024
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AAPL
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https://www.nasdaq.com/articles/etf-market-outlook-investing-strategies-for-2024
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nan
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nan
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(1:00) - Why Did Stocks Surprise To The Upside In 2023?
(4:30) - Will The Federal Reserve Pull Off A Soft Landing In 2024?
(8:20) - Can The Stock Market Rally Continue Into The New Year?
(12:00) - What Are The Major Themes Investors Should Use To Position Their Portfolios?
(17:00) - Is Now A Good Time To Increase Your Exposure To Dividend Stocks?
(20:45) - Creating Strong Fixed Income For Your 2024 Portfolio
(25:40) - Finding Industries Poised To Grow From Macro Economic Trends
(30:30) - Episode Roundup: QUS, SDY, VIG, XNTK, XHB, ITB, XAR, ITA
Podcast@zacks.com
In this episode of ETF Spotlight, I speak with Matthew Bartolini, Head of SPDR Americas Research at State Street Global Advisors. We discuss the market outlook and investing strategies for 2024.
Stocks and bonds have soared lately as investors are becoming increasingly confident that the Fed will cut interest rates earlier and faster than expected. Can the Fed pull off a soft landing, or is the market getting ahead of itself?
US large-cap growth stocks’ gains in 2023 were driven mainly by multiple expansion, and with earnings expected to rebound in 2024, these stocks could continue to do well. Additionally, the momentum driven by AI-related factors might persist, offering growth prospects in 2024.
Investors should favor high-quality companies with strong pricing power, stable earnings, and healthy balance sheets, as market volatility is likely to move higher amid diminishing fiscal and monetary stimulus.
The SPDR NYSE Technology ETF XNTK holds 35 leading technology companies in equal weights and therefore avoids too much concentration in the “Magnificent Seven” stocks that have already surged a lot.
The SPDR MSCI USA StrategicFactor ETF QUS follows a multi-factor strategy that blends quality, value, and minimum volatility. Apple AAPL, Microsoft MSFT, NVIDIA NVDA and Meta Platforms META are among its top holdings.
The SPDR S&P Dividend ETF SDY selects companies that have consistently increased their dividend for at least 20 consecutive years.
With the recession probability and mortgage rates declining, housing and home retail stocks could see momentum next year, driven by a resilient consumer. Further, homebuilders are currently trading at a much wider than usual discount to the S&P 500 Index.
Defense stocks could benefit from strong bipartisan support in Washington and rising geopolitical risks. However, defense spending could extend to advanced technologies with the emerging threat of AI and increased cyber warfare.
Take a look at the SPDR® S&P® Homebuilders ETF XHB and the SPDR S&P Aerospace & Defense ETF XAR.
Tune in to the podcast to learn more about these ETFs.
Make sure to be on the lookout for the next edition of ETF Spotlight! If you have any comments or questions, please email podcast@zacks.com.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
SPDR S&P Homebuilders ETF (XHB): ETF Research Reports
SPDR S&P Dividend ETF (SDY): ETF Research Reports
SPDR S&P Aerospace & Defense ETF (XAR): ETF Research Reports
SPDR MSCI USA StrategicFactors ETF (QUS): ETF Research Reports
SPDR NYSE Technology ETF (XNTK): ETF Research Reports
Meta Platforms, Inc. (META) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple AAPL, Microsoft MSFT, NVIDIA NVDA and Meta Platforms META are among its top holdings. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report SPDR S&P Homebuilders ETF (XHB): ETF Research Reports SPDR S&P Dividend ETF (SDY): ETF Research Reports SPDR S&P Aerospace & Defense ETF (XAR): ETF Research Reports SPDR MSCI USA StrategicFactors ETF (QUS): ETF Research Reports SPDR NYSE Technology ETF (XNTK): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. (20:45) - Creating Strong Fixed Income For Your 2024 Portfolio (25:40) - Finding Industries Poised To Grow From Macro Economic Trends (30:30) - Episode Roundup: QUS, SDY, VIG, XNTK, XHB, ITB, XAR, ITA Podcast@zacks.com In this episode of ETF Spotlight, I speak with Matthew Bartolini, Head of SPDR Americas Research at State Street Global Advisors.
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Apple AAPL, Microsoft MSFT, NVIDIA NVDA and Meta Platforms META are among its top holdings. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report SPDR S&P Homebuilders ETF (XHB): ETF Research Reports SPDR S&P Dividend ETF (SDY): ETF Research Reports SPDR S&P Aerospace & Defense ETF (XAR): ETF Research Reports SPDR MSCI USA StrategicFactors ETF (QUS): ETF Research Reports SPDR NYSE Technology ETF (XNTK): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. The SPDR NYSE Technology ETF XNTK holds 35 leading technology companies in equal weights and therefore avoids too much concentration in the “Magnificent Seven” stocks that have already surged a lot.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report SPDR S&P Homebuilders ETF (XHB): ETF Research Reports SPDR S&P Dividend ETF (SDY): ETF Research Reports SPDR S&P Aerospace & Defense ETF (XAR): ETF Research Reports SPDR MSCI USA StrategicFactors ETF (QUS): ETF Research Reports SPDR NYSE Technology ETF (XNTK): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple AAPL, Microsoft MSFT, NVIDIA NVDA and Meta Platforms META are among its top holdings. (20:45) - Creating Strong Fixed Income For Your 2024 Portfolio (25:40) - Finding Industries Poised To Grow From Macro Economic Trends (30:30) - Episode Roundup: QUS, SDY, VIG, XNTK, XHB, ITB, XAR, ITA Podcast@zacks.com In this episode of ETF Spotlight, I speak with Matthew Bartolini, Head of SPDR Americas Research at State Street Global Advisors.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report SPDR S&P Homebuilders ETF (XHB): ETF Research Reports SPDR S&P Dividend ETF (SDY): ETF Research Reports SPDR S&P Aerospace & Defense ETF (XAR): ETF Research Reports SPDR MSCI USA StrategicFactors ETF (QUS): ETF Research Reports SPDR NYSE Technology ETF (XNTK): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple AAPL, Microsoft MSFT, NVIDIA NVDA and Meta Platforms META are among its top holdings. Can the Fed pull off a soft landing, or is the market getting ahead of itself?
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12080.0
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2023-12-13 00:00:00 UTC
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Zacks Investment Ideas feature highlights: Tesla, Apple and Rivian
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AAPL
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https://www.nasdaq.com/articles/zacks-investment-ideas-feature-highlights%3A-tesla-apple-and-rivian
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nan
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For Immediate Release
Chicago, IL – December 15, 2023 – Today, Zacks Investment Ideas feature highlights Tesla TSLA, Apple AAPL and Rivian RIVN.
Why Tesla's Cheap (2024 Outlook)
An Up and Down Year for Tesla
Tesla is the undisputed market leader in battery-powered electric car sales in the United States, enjoying roughly a 70% market share. Over the years, Tesla has shifted from developing niche products for affluent buyers to more affordable EVs for the masses. The firm's three-pronged business model approach of direct sales, servicing, and charging sets it apart from other carmakers. Year-to-date, shares are higher by 128%. However, investor concerns are mounting, including:
· Valuation: The EV king's market capitalization is more than the combined value of all legacy automakers.
· Underperformance: Though Tesla has more than doubled this year, it has underperformed the market and "Magnificent 7" recently.
· Recall: This week, news broke that Tesla must recall more than 2 million vehicles.
Below, I will debunk the most common investor concerns and lay out my bull case for the stock:
Don't Judge a Book By its Cover: Tesla Valuation is Cheap
The price-to-book ratio (P/B ratio) is a financial metric that compares a company's market value (its stock price) to its book value (the net value of its assets minus liabilities). P/B is calculated by dividing the market price per share by the book value per share.
A low P/B ratio may suggest that a stock is undervalued, while a high ratio may indicate overvaluation. Investors use this ratio to assess a company's relative worth in the market compared to its accounting value. Tesla currently has a book value of 14.03. Compare that to another mainstream stock like Apple, whose book value is 49.54, and Tesla suddenly looks cheap.
Furthermore, it is essential to remember that Wall Street is a discounting device. Over the past twelve years, Tesla has achieved a stunning compound annual growth rate (CAGR) of 72%, earning its premium above slower-growing legacy automakers.
Rallying on Negative Recall News
Earlier this week, Tesla was forced to recall over two million vehicles over autopilot safety concerns. As I always like to remind investors, the reaction to negative news supersedes the news itself. In the case of TSLA, the stock shook off the bad news and is green for the week.
Technical "Shakeout" and Price Rotation Higher
Savvy investors understand that price movement is the ultimate arbiter of decisions, because after all, price is the only thing that pays. TSLA shares sliced below the 50-day moving average on the recall news and then ripped higher. Such price action indicates a shakeout, where weak hands get stopped out of their positions, clearing the way for the next move higher. Now, TSLA is triggering a bullish swing trade signal by clearing last week's highs.
Cybertruck Hype Real
Many Tesla bears suggest that the hype around Tesla's Cybertruck is unfounded. However, Google Trends data suggests the opposite is true. As Tesla investor and enthusiast Sawyer Merritt points out, "Tesla has surpassed Ford to become the most searched auto brand in the US. Tesla's gone from not making the rankings at all in 2022 to second place in 2023, with 29 of 155 countries listing Tesla as their #1 car brand in Google Trends."
Competition Not a Threat
Thus far, all of the fully-EV focused automakers like Rivian have yet to achieve a quarterly profit. As Elon Musk points out, it's one thing to create a prototype and a whole other thing to manufacture at scale. Meanwhile, Ford, the only other profitable EV maker in the US, announced that it would cut F-150 Lightning production in half next year. (the Lightning is seen by the market as the biggest threat to the Cybertruck)
China Sales Growing Despite Weak Economy
Despite a floundering Chinese economy, recent registration numbers suggest that Tesla is on pace to break its quarterly record for deliveries in China (156.7k).
Exponential EV Growth is on the Horizon
A recent study suggests that by 2030, two-thirds of all global car sales will be EVs.
Bottom Line
Investors using traditional valuation metrics to value Tesla are likely to be wrong. Tesla's price-to-book ratio reveals an undervalued position compared to other mainstream stocks. Meanwhile, the Cybertruck's rising popularity and Tesla's sustained growth in China further underscore its market strength. As the automotive landscape continues to evolve towards electric vehicles, Tesla's innovative approach and global expansion prospects make it a must-own.
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Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL) : Free Stock Analysis Report
Tesla, Inc. (TSLA) : Free Stock Analysis Report
Rivian Automotive, Inc. (RIVN) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For Immediate Release Chicago, IL – December 15, 2023 – Today, Zacks Investment Ideas feature highlights Tesla TSLA, Apple AAPL and Rivian RIVN. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Rivian Automotive, Inc. (RIVN) : Free Stock Analysis Report To read this article on Zacks.com click here. Over the past twelve years, Tesla has achieved a stunning compound annual growth rate (CAGR) of 72%, earning its premium above slower-growing legacy automakers.
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For Immediate Release Chicago, IL – December 15, 2023 – Today, Zacks Investment Ideas feature highlights Tesla TSLA, Apple AAPL and Rivian RIVN. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Rivian Automotive, Inc. (RIVN) : Free Stock Analysis Report To read this article on Zacks.com click here. Below, I will debunk the most common investor concerns and lay out my bull case for the stock: Don't Judge a Book By its Cover: Tesla Valuation is Cheap The price-to-book ratio (P/B ratio) is a financial metric that compares a company's market value (its stock price) to its book value (the net value of its assets minus liabilities).
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Rivian Automotive, Inc. (RIVN) : Free Stock Analysis Report To read this article on Zacks.com click here. For Immediate Release Chicago, IL – December 15, 2023 – Today, Zacks Investment Ideas feature highlights Tesla TSLA, Apple AAPL and Rivian RIVN. Why Tesla's Cheap (2024 Outlook) An Up and Down Year for Tesla Tesla is the undisputed market leader in battery-powered electric car sales in the United States, enjoying roughly a 70% market share.
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For Immediate Release Chicago, IL – December 15, 2023 – Today, Zacks Investment Ideas feature highlights Tesla TSLA, Apple AAPL and Rivian RIVN. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Rivian Automotive, Inc. (RIVN) : Free Stock Analysis Report To read this article on Zacks.com click here. Below, I will debunk the most common investor concerns and lay out my bull case for the stock: Don't Judge a Book By its Cover: Tesla Valuation is Cheap The price-to-book ratio (P/B ratio) is a financial metric that compares a company's market value (its stock price) to its book value (the net value of its assets minus liabilities).
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2023-12-13 00:00:00 UTC
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The Zacks Analyst Blog Highlights Salesforce, Intel, Microsoft, Apple and Boeing
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AAPL
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights-salesforce-intel-microsoft-apple-and-boeing
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nan
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nan
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For Immediate Release
Chicago, IL – December 15, 2023 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Salesforce Inc. CRM, Intel Corp. INTC, Microsoft Corp. MSFT, Apple Inc. AAPL and Boeing BA.
Here are highlights from Thursday’s Analyst Blog:
5 Winning Stocks of 2023 as Dow Jones Sets New Record High
The Dow Jones Industrial Average hit a new record, surpassing 37,000 for the first time after the Fed signaled the possibility of rate cuts next year. The blue-chip index has displayed an astounding rally in the past month, outperforming the other indices. The rally broadened out to other sectors beyond the "Magnificent Seven" stocks.
While most of the stocks in the index have performed remarkably this year, we have highlighted five of them that have been leading the way higher. These include Salesforce Inc., Intel Corp., Microsoft Corp., Apple Inc. and Boeing.
The Fed, as expected, kept interest rates steady at a 22-year high in the FOMC meeting ended Dec 13. In a major shift, the central bank signaled three rate cuts for the next year, with the federal funds rate falling to a range of 4.4-4.9%, down from the current 5.25% to 5.50%. This suggests that the Fed will cut rates by a total of 0.75% next year, indicating that the historic rate-hiking campaign might be ending. It had previously forecast two rate cuts for 2024. Following the meeting, markets are pricing in a nearly 60% chance that the Fed will begin to cut rates at its March meeting, up from 40% the day prior, per the data from the CME Group.
Being cyclical in nature, the blue-chip index outperforms when economic growth improves. Americans are now feeling more confident about the economy than they did over the past few months. This is especially true as consumer sentiment, as indicated by the preliminary reading on the University of Michigan preliminary index, rebounded sharply in early December and broke the streak of four consecutive months of decline.
Cyclical stocks, bank stocks and small-cap stocks have all shown an upward trend, indicating that the market is in a state of expansion, supporting the uptrend in equities.
Best-Performing Stocks
Salesforceis the leading provider of on-demand Customer Relationship Management software, which enables organizations to better manage critical operations, such as sales force automation, customer service and support, marketing automation, document management, analytics and custom application development. The stock has surged 94.1% this year.
Salesforce has an expected earnings growth rate of 16% for the fiscal year (ending January 2025). It has a Zacks Rank #3 (Hold) and a Growth Score of B.
Intel, the world's largest semiconductor company and primary supplier of microprocessors and chipsets, is gradually reducing its dependence on the PC-centric business by moving into data-centric businesses — such as AI and autonomous driving. INTC jumped 68.6% this year.
Intel is expected to see earnings growth of 98.5% for 2024 and has a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 (Strong Buy) Rank stocks here.
Microsoft is one of the largest broad-based technology providers in the world. The company dominates the PC software market, with more than 73% share of operating systems. MSFT has risen 56.1% this year.
Microsoft is expected to see earnings growth of 13.5% in the fiscal year ending June 2024. It has a Zacks Rank #3 and a solid Growth Score of A.
Apple designs, manufactures and markets smartphones, personal computers, tablets, wearables and accessories worldwide. The company offers iPhone, a line of smartphones; Mac, a line of personal computers; iPad, a line of multi-purpose tablets; and wearables, home, and accessories comprising AirPods, Apple TV, Apple Watch, Beats products and HomePod. Shares of AAPL are up more than 52% this year.
Apple's earnings are expected to grow 7% for the fiscal year (ending September 2024). The stock has a Zacks Rank #3 and has a Momentum Score of B.
Boeing has been the premier manufacturer of commercial jetliners for decades. The company's premier jet aircraft along with varied defense products position it as one of the largest defense contractors in the United States. It has a solid estimated earnings growth of 157.6% for 2024.
Boeing has risen 31.7% so far this year. The stock has a Zacks Rank #3 and a Growth Score of A.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The Boeing Company (BA) : Free Stock Analysis Report
Intel Corporation (INTC) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Salesforce Inc. (CRM) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Stocks recently featured in the blog include: Salesforce Inc. CRM, Intel Corp. INTC, Microsoft Corp. MSFT, Apple Inc. AAPL and Boeing BA. Shares of AAPL are up more than 52% this year. Click to get this free report The Boeing Company (BA) : Free Stock Analysis Report Intel Corporation (INTC) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Salesforce Inc. (CRM) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Stocks recently featured in the blog include: Salesforce Inc. CRM, Intel Corp. INTC, Microsoft Corp. MSFT, Apple Inc. AAPL and Boeing BA. Click to get this free report The Boeing Company (BA) : Free Stock Analysis Report Intel Corporation (INTC) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Salesforce Inc. (CRM) : Free Stock Analysis Report To read this article on Zacks.com click here. Shares of AAPL are up more than 52% this year.
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Click to get this free report The Boeing Company (BA) : Free Stock Analysis Report Intel Corporation (INTC) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Salesforce Inc. (CRM) : Free Stock Analysis Report To read this article on Zacks.com click here. Stocks recently featured in the blog include: Salesforce Inc. CRM, Intel Corp. INTC, Microsoft Corp. MSFT, Apple Inc. AAPL and Boeing BA. Shares of AAPL are up more than 52% this year.
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Stocks recently featured in the blog include: Salesforce Inc. CRM, Intel Corp. INTC, Microsoft Corp. MSFT, Apple Inc. AAPL and Boeing BA. Shares of AAPL are up more than 52% this year. Click to get this free report The Boeing Company (BA) : Free Stock Analysis Report Intel Corporation (INTC) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Salesforce Inc. (CRM) : Free Stock Analysis Report To read this article on Zacks.com click here.
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12082.0
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2023-12-13 00:00:00 UTC
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Apple sued with Visa, Mastercard in card-fee antitrust case
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AAPL
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https://www.nasdaq.com/articles/apple-sued-with-visa-mastercard-in-card-fee-antitrust-case
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nan
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By Mike Scarcella
Dec 15 (Reuters) - Apple, Visa and Mastercard have been hit with a new proposed class action that accuses them of conspiring to thwart competition for point-of-sale payment card network services, causing merchants to pay artificially higher fees for credit and debit transactions.
In a complaint filed in East St. Louis, Illinois, federal court on Thursday, beverage retailer Mirage Wine & Spirits said Apple AAPL.O struck unlawful agreements with Visa V.N and Mastercard MA.N to refrain from competing with the two credit card companies.
Visa and Mastercard in exchange paid Apple a portion of transaction fees for purchases made on their networks by consumers using Apple’s Mobile Wallet service, according to the lawsuit.
The complaint said Visa and Mastercard had paid Apple what amounted to a “very large and ongoing cash bribe” of hundreds of millions of dollars a year.
Unlike Apple's iPhones, Google's Android-based devices allow third-party mobile wallets, the lawsuit said.
Representatives for Apple, Visa and Mastercard did not immediately respond to requests for comment.
Lawyers representing Mirage Wine & Spirits also did not immediately comment. The lawsuit, brought on behalf of a proposed class of “at least many thousands” of merchants, seeks triple damages under U.S. antitrust law.
Cupertino, California-based Apple faces an array of legal actions over payments in the United States and Europe.
A U.S. judge in September said Apple must face claims from payment card issuers who sued the company for allegedly coercing iPhone consumers to use its Apple Pay mobile wallet. Venmo and Cash App in a lawsuit last month accused Apple of suppressing competition for peer-to-peer payments.
Last year, EU antitrust regulators accused Apple of taking steps to thwart rivals’ access to the technology at the center of tap-and-go transactions.
Reuters reported this week that Apple has offered to let rivals access its mobile payments systems used for mobile wallets, in a move that could resolve EU charges.
Visa and Mastercard also have faced myriad antitrust claims from merchants over transaction fees.
A U.S. appeals court in March upheld a $5.6 billion antitrust class-action settlement with more than 12 million retailers who claimed the two credit card companies unlawfully fixed fees for credit and debit cards.
The case is Mirage Wine + Spirit’s Inc v Apple Inc, U.S. District Court, Southern District of Illinois, No. 3:23-cv-03942.
Read more:
Venmo, Cash App users sue Apple over peer-to-peer payment fees
Apple is ordered to face Apple Pay antitrust lawsuit
Visa, MasterCard $5.6 bln settlement with retailers is upheld
(Reporting by Mike Scarcella)
((Mike.Scarcella@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In a complaint filed in East St. Louis, Illinois, federal court on Thursday, beverage retailer Mirage Wine & Spirits said Apple AAPL.O struck unlawful agreements with Visa V.N and Mastercard MA.N to refrain from competing with the two credit card companies. By Mike Scarcella Dec 15 (Reuters) - Apple, Visa and Mastercard have been hit with a new proposed class action that accuses them of conspiring to thwart competition for point-of-sale payment card network services, causing merchants to pay artificially higher fees for credit and debit transactions. Last year, EU antitrust regulators accused Apple of taking steps to thwart rivals’ access to the technology at the center of tap-and-go transactions.
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In a complaint filed in East St. Louis, Illinois, federal court on Thursday, beverage retailer Mirage Wine & Spirits said Apple AAPL.O struck unlawful agreements with Visa V.N and Mastercard MA.N to refrain from competing with the two credit card companies. By Mike Scarcella Dec 15 (Reuters) - Apple, Visa and Mastercard have been hit with a new proposed class action that accuses them of conspiring to thwart competition for point-of-sale payment card network services, causing merchants to pay artificially higher fees for credit and debit transactions. A U.S. appeals court in March upheld a $5.6 billion antitrust class-action settlement with more than 12 million retailers who claimed the two credit card companies unlawfully fixed fees for credit and debit cards.
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In a complaint filed in East St. Louis, Illinois, federal court on Thursday, beverage retailer Mirage Wine & Spirits said Apple AAPL.O struck unlawful agreements with Visa V.N and Mastercard MA.N to refrain from competing with the two credit card companies. By Mike Scarcella Dec 15 (Reuters) - Apple, Visa and Mastercard have been hit with a new proposed class action that accuses them of conspiring to thwart competition for point-of-sale payment card network services, causing merchants to pay artificially higher fees for credit and debit transactions. Visa and Mastercard in exchange paid Apple a portion of transaction fees for purchases made on their networks by consumers using Apple’s Mobile Wallet service, according to the lawsuit.
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In a complaint filed in East St. Louis, Illinois, federal court on Thursday, beverage retailer Mirage Wine & Spirits said Apple AAPL.O struck unlawful agreements with Visa V.N and Mastercard MA.N to refrain from competing with the two credit card companies. By Mike Scarcella Dec 15 (Reuters) - Apple, Visa and Mastercard have been hit with a new proposed class action that accuses them of conspiring to thwart competition for point-of-sale payment card network services, causing merchants to pay artificially higher fees for credit and debit transactions. Visa and Mastercard in exchange paid Apple a portion of transaction fees for purchases made on their networks by consumers using Apple’s Mobile Wallet service, according to the lawsuit.
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12083.0
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2023-12-13 00:00:00 UTC
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2 Great Passive Income Stocks to Buy for 2024
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AAPL
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https://www.nasdaq.com/articles/2-great-passive-income-stocks-to-buy-for-2024
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nan
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nan
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Passive income isn't hard to find in the stock market. Dividend stocks provide truly passive cash flow in the form of quarterly or annual payments that often increase with each passing year. Income investors can also use those regular payments to supercharge overall returns if they choose to automatically reinvest them. That way, you can accumulate more shares during market downturns and fewer shares when stocks are rallying.
Many dividend stocks have climbed higher in the past year, partly thanks to those appealing qualities. But several still seem like attractive options for income investors. Let's look at a few reasons to like Apple (NASDAQ: AAPL) and Coca-Cola (NYSE: KO) today.
1. Apple
Don't let Apple's relatively modest dividend yield scare you away from this excellent stock. Sure, the roughly $0.24-per-share quarterly payment translates into just a 0.5% yield based on today's stock price, but Apple maintains one of the market's biggest capital return programs. In the past year, the tech giant has sent $15 billion to shareholders through dividend payments in addition to nearly $80 billion of stock buyback spending.
Those figures illustrate how Apple prefers to allocate more of its excess cash toward stock repurchases. But its dividend is still a priority for executives and has been increasing steadily since 2012.
There are plenty of reasons to expect more growth in 2024 and beyond. Apple reported modest sales gains last quarter thanks to robust demand in the core iPhone business. The tech giant's services division is expanding nicely, too, which is a great sign for long-term profitability.
The best part is that investors can hold this tech stock and watch those profit margins rise while they collect cash returns both from stock buybacks and its rising dividend.
2. Coca-Cola
Coca-Cola has been a passive income giant for decades. Its dividend dates to the 1890s, in fact. And that payout has been rising annually for the past 61 years.
But there's more to be excited about in Coke's future as well. The company is growing sales at a double-digit rate today, for one. The sales spike is coming from a healthy mix between higher volumes and increased prices. Consumers still like core brands such as Coke Zero, and they're also enthusiastic about non-traditional beverages like sparkling waters, energy drinks, and teas.
You'll struggle to find a more financially impressive business than this. Coke's operating profit is sitting at an industry-leading 30% of sales, giving management plenty of resources it can direct toward growth initiatives like the company's massive marketing program.
Its flood of cash flow supports a rising dividend that's currently yielding more than 3%. Investors can thank pessimism on Wall Street around Coke's short-term growth prospects for that higher yield. The stock dropped 6% in 2023 even though its earnings trends have strengthened this year.
As a result, you can buy shares of Coke for 2024 at a relative discount of 24 times earnings. Investors were paying nearly 30 times earnings in early 2023. It might take time before Wall Street wises up to that obvious value, but patient income investors can just collect its rock-solid dividend in the meantime.
Editor's note: This article has been corrected. Apple's quarterly dividend payment is $0.24.
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Demitri Kalogeropoulos has positions in Apple. The Motley Fool has positions in and recommends Apple. The Motley Fool recommends the following options: long January 2024 $47.50 calls on Coca-Cola. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Let's look at a few reasons to like Apple (NASDAQ: AAPL) and Coca-Cola (NYSE: KO) today. Dividend stocks provide truly passive cash flow in the form of quarterly or annual payments that often increase with each passing year. Sure, the roughly $0.24-per-share quarterly payment translates into just a 0.5% yield based on today's stock price, but Apple maintains one of the market's biggest capital return programs.
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Let's look at a few reasons to like Apple (NASDAQ: AAPL) and Coca-Cola (NYSE: KO) today. Apple Don't let Apple's relatively modest dividend yield scare you away from this excellent stock. The best part is that investors can hold this tech stock and watch those profit margins rise while they collect cash returns both from stock buybacks and its rising dividend.
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Let's look at a few reasons to like Apple (NASDAQ: AAPL) and Coca-Cola (NYSE: KO) today. Apple Don't let Apple's relatively modest dividend yield scare you away from this excellent stock. The best part is that investors can hold this tech stock and watch those profit margins rise while they collect cash returns both from stock buybacks and its rising dividend.
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Let's look at a few reasons to like Apple (NASDAQ: AAPL) and Coca-Cola (NYSE: KO) today. The best part is that investors can hold this tech stock and watch those profit margins rise while they collect cash returns both from stock buybacks and its rising dividend. Apple's quarterly dividend payment is $0.24.
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12084.0
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2023-12-13 00:00:00 UTC
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Validea Detailed Fundamental Analysis - AAPL
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AAPL
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https://www.nasdaq.com/articles/validea-detailed-fundamental-analysis-aapl-12
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nan
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nan
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Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. This momentum model looks for a combination of fundamental momentum and price momentum.
APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. The rating using this strategy is 100% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
FUNDAMENTAL MOMENTUM: PASS
TWELVE MINUS ONE MOMENTUM: PASS
FINAL RANK: PASS
Detailed Analysis of APPLE INC
AAPL Guru Analysis
AAPL Fundamental Analysis
More Information on Dashan Huang
Dashan Huang Portfolio
About Dashan Huang: Dashan Huang is an Assistant Professor of Finance at the Lee Kong Chian School of Business at Singapore Management University. His paper "Twin Momentum" looked at combining traditional price momentum with improving fundamentals to generate market outperformance. In the paper, he identified seven fundamental variables (earnings, return on equity, return on assets, accrual operating profitability to equity, cash operating profitability to assets, gross profit to assets and net payout ratio) that he combined into a single fundamental momentum measure. He showed that stocks in the top 20% of the universe according to that measure outperformed the market going forward. When he combined that measure with price momentum, he was able to double its outperformance.
Additional Research Links
Top NASDAQ 100 Stocks
Top Technology Stocks
Top Large-Cap Growth Stocks
High Momentum Stocks
High Insider Ownership Stocks
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang.
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Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Dashan Huang Dashan Huang Portfolio About Dashan Huang: Dashan Huang is an Assistant Professor of Finance at the Lee Kong Chian School of Business at Singapore Management University. Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang.
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Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Dashan Huang Dashan Huang Portfolio About Dashan Huang: Dashan Huang is an Assistant Professor of Finance at the Lee Kong Chian School of Business at Singapore Management University. Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang.
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Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. Below is Validea's guru fundamental report for APPLE INC (AAPL). APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry.
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12085.0
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2023-12-13 00:00:00 UTC
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5 Tech ETFs that Crushed the Magnificent Seven ETFs in 2023
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AAPL
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https://www.nasdaq.com/articles/5-tech-etfs-that-crushed-the-magnificent-seven-etfs-in-2023
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nan
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nan
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In the current investment landscape, the focus has shifted from the FANG stocks, and a new set of influential stocks, known as the Magnificent Seven Stocks, has emerged. These stocks include Alphabet GOOGL, Apple AAPL, Amazon AMZN, Meta Platforms META, Microsoft MSFT, Nvidia NVDA and Tesla TSLA. These companies are considered the new leaders in the stock market.
There is a pureplay ETF called Roundhill Magnificent Seven ETF MAGS on this theme. The ETF has surged more than 32% this year. There is another ETF called Invesco S&P 500 Top 50 ETF XLG, which invests about 50% of the basket in Magnificent Seven. That fund is up about 34% this year.
Individually, Apple, Alphabet and Microsoft are up more than 50% each, Meta shares are up about 165%, Amazon has gained 70%, Nvidia has skyrocketed about 233% and Tesla is up nearly 118% this year (as of Dec 12, 2023).
But there are a few tech ETFs that have beaten even the Magnificent Seven ETF MAGS. These include
Inside the Dominance of Magnificent Seven
The Magnificent Seven stocks have a significant impact on the Nasdaq index, as they collectively account for a major portion of its total weighting. Despite recent fluctuations in the market, some of the Magnificent Seven Stocks, including Apple, Microsoft, Amazon, Google, Nvidia, and Meta, continue to exert a substantial impact on the tech-heavy Nasdaq index mainly due to their meaningful positions in the Artificial Intelligence (AI) space. The AI boom made them stars in 2023.
What About Other Tech Jewels?
Even in the narrow market breadth in 2023, some other tech ETFs that are not solely focused on “Magnificent Seven” shined. With the Fed expected to cut rates by 75 bps in 2024, overall tech space should do well as the area thrives better in a low-rate environment.
Already, market breadth has continued to broaden, and smaller tech companies are likely to excel. Plus, the AI boom is ongoing, which is expected to push the space to another height next year.
ETF Picks
Below, we highlight those winning tech ETFs that trumped even Magnificent Seven in 2023.
VanEck Digital Transformation ETF (DAPP) – Up 192.3%
The underlying MVIS Global Digital Assets Equity Index is a rules-based, modified capitalization weighted, float adjusted index intended to give investors a means of tracking the overall performance of the global digital asset segment. Along with DAPP, several other digital asset ETFs, bitcoin mining ETFs and blockchain ETFs have exceled and beaten MAGS this year by a wide margin (read: Block (SQ) Soars on Upbeat Earnings & Outlook: ETFs to Gain).
VanEck Semiconductor ETF (SMH) – Up 63.9%
The underlying MVIS US Listed Semiconductor 25 Index tracks the overall performance of companies involved in semiconductor production and equipment. Along with SMH, other semiconductor ETFs also soared this year (read: Semiconductors Lead Decade's Top Gainers: 3 ETFs Up At Least 550%).
SPDR NYSE Technology ETF (XNTK) – Up 63.9%
The underlying NYSE Technology Index is composed of 35 leading U.S.-listed technology-related companies. The fund includes semiconductors (25.85%), Systems Software (12.33%), Application Software (9.82%), Interactive Media & Services (7.88%), Internet Services & Infrastructure (6%) and so on.
iShares U.S. Technology ETF (IYW) – Up 60.4%
The underlying Russell 1000 Technology RIC 22.5/45 Capped Index includes companies in the following sectors: software and computer services and technology hardware and equipment. The Index is capitalization-weighted and includes only companies in the technology industry of the Dow Jones U.S. Total Market Index (read: Buffett's Favorite 4 Sectors: ETFs in Focus).
WisdomTree Cybersecurity Fund (WCBR) – Up 59.1%
The underlying WisdomTree Team8 Cybersecurity Index is designed to track the performance of companies primarily involved in providing cyber security-oriented products. The fund charges 45 bps in fees (read: Here's Why Cybersecurity ETFs Are At a 52-Week High).
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Tesla, Inc. (TSLA) : Free Stock Analysis Report
VanEck Semiconductor ETF (SMH): ETF Research Reports
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
iShares U.S. Technology ETF (IYW): ETF Research Reports
Invesco S&P 500 Top 50 ETF (XLG): ETF Research Reports
SPDR NYSE Technology ETF (XNTK): ETF Research Reports
Roundhill Magnificent Seven ETF (MAGS): ETF Research Reports
WisdomTree Cybersecurity Fund (WCBR): ETF Research Reports
VanEck Digital Transformation ETF (DAPP): ETF Research Reports
Meta Platforms, Inc. (META) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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These stocks include Alphabet GOOGL, Apple AAPL, Amazon AMZN, Meta Platforms META, Microsoft MSFT, Nvidia NVDA and Tesla TSLA. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report VanEck Semiconductor ETF (SMH): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report iShares U.S. Technology ETF (IYW): ETF Research Reports Invesco S&P 500 Top 50 ETF (XLG): ETF Research Reports SPDR NYSE Technology ETF (XNTK): ETF Research Reports Roundhill Magnificent Seven ETF (MAGS): ETF Research Reports WisdomTree Cybersecurity Fund (WCBR): ETF Research Reports VanEck Digital Transformation ETF (DAPP): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Individually, Apple, Alphabet and Microsoft are up more than 50% each, Meta shares are up about 165%, Amazon has gained 70%, Nvidia has skyrocketed about 233% and Tesla is up nearly 118% this year (as of Dec 12, 2023).
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These stocks include Alphabet GOOGL, Apple AAPL, Amazon AMZN, Meta Platforms META, Microsoft MSFT, Nvidia NVDA and Tesla TSLA. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report VanEck Semiconductor ETF (SMH): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report iShares U.S. Technology ETF (IYW): ETF Research Reports Invesco S&P 500 Top 50 ETF (XLG): ETF Research Reports SPDR NYSE Technology ETF (XNTK): ETF Research Reports Roundhill Magnificent Seven ETF (MAGS): ETF Research Reports WisdomTree Cybersecurity Fund (WCBR): ETF Research Reports VanEck Digital Transformation ETF (DAPP): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. VanEck Semiconductor ETF (SMH) – Up 63.9% The underlying MVIS US Listed Semiconductor 25 Index tracks the overall performance of companies involved in semiconductor production and equipment.
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report VanEck Semiconductor ETF (SMH): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report iShares U.S. Technology ETF (IYW): ETF Research Reports Invesco S&P 500 Top 50 ETF (XLG): ETF Research Reports SPDR NYSE Technology ETF (XNTK): ETF Research Reports Roundhill Magnificent Seven ETF (MAGS): ETF Research Reports WisdomTree Cybersecurity Fund (WCBR): ETF Research Reports VanEck Digital Transformation ETF (DAPP): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. These stocks include Alphabet GOOGL, Apple AAPL, Amazon AMZN, Meta Platforms META, Microsoft MSFT, Nvidia NVDA and Tesla TSLA. But there are a few tech ETFs that have beaten even the Magnificent Seven ETF MAGS.
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These stocks include Alphabet GOOGL, Apple AAPL, Amazon AMZN, Meta Platforms META, Microsoft MSFT, Nvidia NVDA and Tesla TSLA. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report VanEck Semiconductor ETF (SMH): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report iShares U.S. Technology ETF (IYW): ETF Research Reports Invesco S&P 500 Top 50 ETF (XLG): ETF Research Reports SPDR NYSE Technology ETF (XNTK): ETF Research Reports Roundhill Magnificent Seven ETF (MAGS): ETF Research Reports WisdomTree Cybersecurity Fund (WCBR): ETF Research Reports VanEck Digital Transformation ETF (DAPP): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. That fund is up about 34% this year.
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12086.0
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2023-12-13 00:00:00 UTC
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1 Warren Buffett Stock That Could Go Parabolic in 2024
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AAPL
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https://www.nasdaq.com/articles/1-warren-buffett-stock-that-could-go-parabolic-in-2024
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nan
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nan
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Investing genius Warren Buffett is known for his unblinking long-term strategy. His wealth-building mastery is built on deep analysis of business quality and market value.
Show him a company that's producing consistent earnings growth -- thanks to a well-defended business moat -- and is so simple it could be managed by a ham sandwich, and he'll ask for a decade's worth of annual reports. Only after finishing that light bedside reading will he consider the stock's valuation. The stocks under management by Buffett's Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) have passed an unrivaled gauntlet of quality checks.
That doesn't make Buffett's investing style boring. Berkshire's largest holding is iPhone maker Apple (NASDAQ: AAPL), which currently occupies 49% of the Buffett conglomerate's total investment portfolio. Cupertino's peerless brand loyalty sets it apart from the competition, and Buffett has called it "a better business than any we own."
Electronics that are constantly on the bleeding edge of style and innovation may not sound like Warren Buffett's style, but he has learned to love the empire that Steve Jobs built.
Berkshire Hathaway CEO Warren Buffett. Image source: The Motley Fool.
But you're not here for another bullish Apple analysis. The headline that brought you in promised to show you a Buffett stock with the ability to go parabolic, and I don't think Apple fits that bill. It already sports the largest market cap on the planet with a 56% tailwind in 2023. It won't be easy to spark a truly game-changing jump from this lofty level.
I'm looking further down Berkshire's impressive stock list. The Buffett stock I have in mind represents just 0.4% of Berkshire's total holdings but is poised to deliver strong gains from this modest starting point. And don't worry -- Berkshire's portfolio may include some unfamiliar names but you have definitely heard of my favorite hyper-growth idea on the list.
Hello, Amazon!
E-commerce and cloud computing giant Amazon (NASDAQ: AMZN) plays in the same league as Apple in some ways. It's a true business titan with a trillion-dollar market cap.
Both companies serve consumers directly, and their favorite target markets overlap from time to time. For example, the Alexa ecosystem offers many products also found in Apple's iOS and HomeKit universe, and their video-streaming services compete for eyeball hours and industry awards regularly.
But the two innovators are also different where it counts.
Founder and chairman Jeff Bezos famously instilled a permanent "Day One" mentality in his company, always running the increasingly gargantuan business like a hungry little start-up. That ambitious mentality shows in the financial results. Amazon's revenue has increased at a compound annual growth rate (CAGR) of 24% in the last five years. Apple's top-line CAGR stopped at 8% over the same period.
Many investors gave up on Amazon in 2022, as the company adjusted its business plan to meet the inflation crisis with layoffs and a slower short-term growth target. Apple faced similar challenges, but its share price never slipped lower.
Looking ahead, I see a stronger economy boosting both Apple's and Amazon's retail sales over the next few years. However, Amazon is also an established leader in high-performance cloud computing, giving it a leg up on slower-moving peers, like Apple, in the booming field of artificial intelligence (AI).
As a result, Amazon's stock looks like a bargain next to Apple's. Comparing their price-to-sales ratios tells a thousand words in two simple charts:
AMZN Revenue (TTM) data by YCharts.
Mind you, I'm not throwing Apple under the bus. In my eyes, Berkshire's $179 billion Apple investment looks likely to match or outperform the general market for years to come, but in a slow and steady manner that I can't call "parabolic" with a straight face. It's more of a rock-solid value play, suitable for protecting the wealth you've already built.
At the same time, Amazon's shares seem deeply undervalued in light of its unstoppable sales growth and the barely exploited AI opportunity. The $1.5 billion Warren Buffett and his team have invested in this stock should soar to new heights in 2024 and beyond. If you're looking for a Buffett-approved growth investment, Amazon should be first on your list.
Warren Buffett regrets not getting into Amazon sooner, but it's never too late to start a position in this fantastic and undervalued growth stock.
Should you invest $1,000 in Amazon right now?
Before you buy stock in Amazon, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Amazon wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
See the 10 stocks
*Stock Advisor returns as of December 11, 2023
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Anders Bylund has positions in Amazon. The Motley Fool has positions in and recommends Amazon, Apple, and Berkshire Hathaway. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Berkshire's largest holding is iPhone maker Apple (NASDAQ: AAPL), which currently occupies 49% of the Buffett conglomerate's total investment portfolio. Show him a company that's producing consistent earnings growth -- thanks to a well-defended business moat -- and is so simple it could be managed by a ham sandwich, and he'll ask for a decade's worth of annual reports. For example, the Alexa ecosystem offers many products also found in Apple's iOS and HomeKit universe, and their video-streaming services compete for eyeball hours and industry awards regularly.
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Berkshire's largest holding is iPhone maker Apple (NASDAQ: AAPL), which currently occupies 49% of the Buffett conglomerate's total investment portfolio. The stocks under management by Buffett's Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) have passed an unrivaled gauntlet of quality checks. E-commerce and cloud computing giant Amazon (NASDAQ: AMZN) plays in the same league as Apple in some ways.
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Berkshire's largest holding is iPhone maker Apple (NASDAQ: AAPL), which currently occupies 49% of the Buffett conglomerate's total investment portfolio. Warren Buffett regrets not getting into Amazon sooner, but it's never too late to start a position in this fantastic and undervalued growth stock. Before you buy stock in Amazon, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Amazon wasn't one of them.
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Berkshire's largest holding is iPhone maker Apple (NASDAQ: AAPL), which currently occupies 49% of the Buffett conglomerate's total investment portfolio. Hello, Amazon! Before you buy stock in Amazon, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Amazon wasn't one of them.
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12087.0
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2023-12-13 00:00:00 UTC
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Best Stock to Buy: Apple vs. Coca-Cola
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AAPL
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https://www.nasdaq.com/articles/best-stock-to-buy%3A-apple-vs.-coca-cola
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nan
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nan
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When trying to identify investment ideas, one way people can keep it simple is to look at the companies they might be customers of. With this in mind, two well-known consumer stocks might be on your radar.
I'm talking about Apple (NASDAQ: AAPL) and Coca-Cola (NYSE: KO), which readers have undoubtedly heard of. There are compelling reasons to want either of these businesses in your portfolio. But which of these top Warren Buffett stocks is the better buy right now?
Incredible customer loyalty
Apple sells some of the most in-demand products and services on the planet, and it enjoys extreme customer loyalty. However, it's the ecosystem that it built between all of its hardware and software that really makes this business special. Customers pay higher prices for its devices, and then get locked in thanks to all the services Apple offers, and how well they integrate across those devices. This gives it a huge competitive advantage.
To be fair, Apple has hit a rough patch recently. Its revenue declined 2.8% in its fiscal 2023 (which ended Sept. 30). Macro uncertainty, mainly around higher interest rates and inflationary pressures, might be discouraging shoppers from spending on discretionary items.
But this is still one of the most financially sound enterprises out there, providing a level of safety and security that not many stocks can offer investors. Apple produced $100 billion of free cash flow in fiscal 2023, the vast majority of which it used to repurchase shares. This boosts earnings per share, something that Buffett certainly appreciates.
Powerful brand recognition
Coca-Cola's defining trait is its incredible brand strength. The company sells its products in more than 200 different countries across the globe -- an unbelievably wide reach that makes it recognizable to people everywhere. Plus, Coca-Cola's consistency is something that consumers can rely on, especially for a low-cost product like soft drinks.
This brand advantage has benefited the company by allowing it to flex its pricing power. In the third quarter, Coca-Cola's sales were up 8% year over year. Management also highlighted that pricing was up 9%, a key reason for the healthy top-line gain. Due to strong momentum, executives raised their full-year guidance for both revenue and earnings.
Coca-Cola is a mature business, so it isn't going to register outsized growth like many tech stocks, but its stability and durability could be intriguing for some investors. The company boasts a stellar operating margin of 27.4%, which supports a dividend that at current share prices yields 3.1%.
A difficult decision
There's no doubt that both Apple and Coca-Cola are outstanding businesses. The main reasons being that they possess some of the strongest consumer brands in the world and have excellent profitability, which helps explain why they are large holdings in the portfolio of Buffett's conglomerate.
There isn't much disparity between these two companies when it comes to their earnings growth outlooks. The consensus analyst estimate is that the beverage maker's earnings per share are expected to grow at an annualized clip of 10.3% in the next five years, about the same rate as is forecast for Apple.
Valuation could be more a meaningful metric to differentiate between them. Coca-Cola shares trade at a price-to-earnings ratio of under 24 right now, a sizable discount to Apple's 32. It's worth noting that Apple stock's 50% gain in 2023 is all attributable to investors deeming it worthy of a higher multiple.
Apple gets a lot of attention for good reasons. It's the world's most valuable company, sells one of the most successful tech products in history in the iPhone, and is ingrained in millions of people's day-to-day lives. But its shares are expensive enough that some investors might view buying stock in Coca-Cola as a better choice.
However, Apple has been the better investment by far over the past one-, three-, five-, and 10-year periods. Its valuation is steep, for sure, but I think it's a better stock to own than Coca-Cola.
Should you invest $1,000 in Apple right now?
Before you buy stock in Apple, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Apple wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
See the 10 stocks
*Stock Advisor returns as of December 11, 2023
Neil Patel and his clients have no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple. The Motley Fool recommends the following options: long January 2024 $47.50 calls on Coca-Cola. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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I'm talking about Apple (NASDAQ: AAPL) and Coca-Cola (NYSE: KO), which readers have undoubtedly heard of. The main reasons being that they possess some of the strongest consumer brands in the world and have excellent profitability, which helps explain why they are large holdings in the portfolio of Buffett's conglomerate. The consensus analyst estimate is that the beverage maker's earnings per share are expected to grow at an annualized clip of 10.3% in the next five years, about the same rate as is forecast for Apple.
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I'm talking about Apple (NASDAQ: AAPL) and Coca-Cola (NYSE: KO), which readers have undoubtedly heard of. Incredible customer loyalty Apple sells some of the most in-demand products and services on the planet, and it enjoys extreme customer loyalty. Before you buy stock in Apple, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Apple wasn't one of them.
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I'm talking about Apple (NASDAQ: AAPL) and Coca-Cola (NYSE: KO), which readers have undoubtedly heard of. Before you buy stock in Apple, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Apple wasn't one of them. Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month.
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I'm talking about Apple (NASDAQ: AAPL) and Coca-Cola (NYSE: KO), which readers have undoubtedly heard of. There are compelling reasons to want either of these businesses in your portfolio. But its shares are expensive enough that some investors might view buying stock in Coca-Cola as a better choice.
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12088.0
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2023-12-13 00:00:00 UTC
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Will Apple Stock Reign Supreme Yet Again in 2024?
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AAPL
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https://www.nasdaq.com/articles/will-apple-stock-reign-supreme-yet-again-in-2024
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nan
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nan
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It seems like everyone loves Apple (NASDAQ: AAPL). Well, at least 29% of those reading this do. That is theglobal marketshare for the smartphone maker, putting it in the lead over competitors such as Samsung and Alphabet's Google. With strong marketing, quality products, and locked-in users, Apple has established itself as the premium smartphone maker around the world, which has been quite a lucrative business.
So lucrative that even the Oracle of Omaha himself, Warren Buffett, bought more than 5% of the company for Berkshire Hathaway. With the stock up 368% in the last five years, Buffett's stake is now worth over $150 billion, with shares crushing the market over the same time frame.
But the question is: What does the future of Apple stock look like? Will the smartphone leader still reign supreme in 2024?
Stagnant revenue, declining hardware sales
While the business is clearly ginormous, Apple has struggled to grow its revenue in recent quarters. For the fiscal year ending in September, its revenue actually dipped slightly from 2022 and is off 2.8% from all-time highs over the past 12 months. This led net income to fall slightly, from $100 billion in fiscal year 2022 to $97 billion this year.
The company is struggling to grow sales across each of its hardware segments. The smartphone, Mac, iPad, and wearables (watches and AirPods) segments saw sales decline in 2023.
Most important is the smartphone segment, which does more than $200 billion in annual sales. With smartphone unit volumes stagnating around the world, Apple may be finally hitting a ceiling for this massive business. It has mitigated unit declines with consistent price increases, but last year these weren't enough to get revenue moving in the positive direction.
Geopolitical risks, litigation risks
While its hardware segments are stagnating, Apple's software services segment put up solid growth in 2023, hitting $85 billion in revenue. This segment is smaller than smartphone hardware sales from a revenue perspective, but has much higher profit margins, making it a key growth driver for Apple at the moment.
The problem is, Apple's software service cash cows are currently under threat from lawsuits and regulators around the globe.
In numerous regions, Apple's practices with its App Store have come under threat. It currently takes a 30% charge on most purchases made through apps on its devices and restricts other mobile app stores from operating on its devices.
Apple accepts an estimated $20 billion payment every year from Alphabet to make Google Search the default search engine on its Safari web browser. The United States government is challenging this deal on anticompetitive grounds.
Over the next five years, Apple faces a big threat for these two profit pools that make up the majority of its services revenue. If things go poorly for the company, the last few years of fast services growth may come to an end.
From a longer-term perspective, investors may need to worry about Apple's geographical diversification, especially when it comes to China. Last year, it generated $72.5 billion in revenue from the Greater China region, and it has most of its manufacturing in the country. If the new Cold War with the United States gets worse, Apple's business and manufacturing could come under threat.
It is hard to quantify the exact magnitude of this risk, but it is a risk nonetheless that Apple investors should think strongly about.
Can the Vision Pro spur growth?
Even though Apple shares are up 52% year to date, the company has seen its financials stagnate and there are some growing risks to the business that should not be ignored.
But it isn't all bad news for the technology giant. In 2024, the hardware maker is coming out with what will hopefully be its next hit product: the Vision Pro.
Unveiled at a demo earlier this year, the Vision Pro is a pair of augmented reality glasses. The company is hoping to take the next step in computing with the devices, which feature highly advanced sensors and cameras, and plans to sell them at $3,500 a pop. Apple expects to sell 1 million units in 2024 and 10 million units over the next three years.
That could equate to $35 billion in revenue. That's not too material compared to the company's close to $400 billion in annual sales, but this could generate some momentum and be the start of Apple's next big business over the next five to 10 years.
The valuation is not attractive
Despite its dominant position in the smartphone market and the potential of the Vision Pro, Apple's stock looks unlikely to reign supreme in 2024. The key reason is its valuation.
As of this writing, Apple has a price-to-earnings ratio (P/E) of 32. That is well above the S&P 500 average of 26 for a company with declining sales that is also dealing with regulatory antitrust risk and is in the middle of geopolitical tensions.
Yes, the stock has performed remarkably over the past five, 10, and 20 years, but this doesn't have any bearing on what shares will do in the future. Typically, investors should want a discounted valuation when dealing with declining revenue and mounting risks on the horizon.
Apple stock is not likely to reign supreme in 2024. Investors should avoid buying shares at current prices.
Should you invest $1,000 in Apple right now?
Before you buy stock in Apple, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Apple wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
See the 10 stocks
*Stock Advisor returns as of December 11, 2023
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Brett Schafer has positions in Alphabet. The Motley Fool has positions in and recommends Alphabet, Apple, and Berkshire Hathaway. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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It seems like everyone loves Apple (NASDAQ: AAPL). With strong marketing, quality products, and locked-in users, Apple has established itself as the premium smartphone maker around the world, which has been quite a lucrative business. This segment is smaller than smartphone hardware sales from a revenue perspective, but has much higher profit margins, making it a key growth driver for Apple at the moment.
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It seems like everyone loves Apple (NASDAQ: AAPL). Stagnant revenue, declining hardware sales While the business is clearly ginormous, Apple has struggled to grow its revenue in recent quarters. Geopolitical risks, litigation risks While its hardware segments are stagnating, Apple's software services segment put up solid growth in 2023, hitting $85 billion in revenue.
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It seems like everyone loves Apple (NASDAQ: AAPL). Geopolitical risks, litigation risks While its hardware segments are stagnating, Apple's software services segment put up solid growth in 2023, hitting $85 billion in revenue. The valuation is not attractive Despite its dominant position in the smartphone market and the potential of the Vision Pro, Apple's stock looks unlikely to reign supreme in 2024.
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It seems like everyone loves Apple (NASDAQ: AAPL). Geopolitical risks, litigation risks While its hardware segments are stagnating, Apple's software services segment put up solid growth in 2023, hitting $85 billion in revenue. The valuation is not attractive Despite its dominant position in the smartphone market and the potential of the Vision Pro, Apple's stock looks unlikely to reign supreme in 2024.
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12089.0
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2023-12-13 00:00:00 UTC
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1 Ultra-High Dividend Yield Stock to Buy Hand Over Fist in 2024
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AAPL
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https://www.nasdaq.com/articles/1-ultra-high-dividend-yield-stock-to-buy-hand-over-fist-in-2024
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nan
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nan
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Investors who are looking for growth in their portfolio may be captivated by technology stocks, especially given all of the recent hoopla around artificial intelligence (AI). But portfolio construction requires balance, and one of the pillars of a well-diversified portfolio is dividend stocks.
Business development companies (BDCs) can be a great source of dividend income, in part because they are required to pay out at least 90% of their taxable income each year as dividends.
One leading BDC that has consistently outperformed the S&P 500 is Ares Capital (NASDAQ: ARCC). With the shares trading at about $20, its dividend yield is now 9.5%, making this an opportune time to open a position and set yourself up to reap the passive income rewards.
What makes Ares Capital different?
Ares Capital sits in a unique position in the BDC world. BDCs typically compete with banks and even venture capital or private equity funds depending on the deal structure. However, most investment banks typically seek out high-profile companies and offer them a variety of solutions pertaining to mergers and acquisitions, raising capital through the equity markets, or borrowing money via the debt markets.
In contrast to many large financial institutions, Ares works with a lot of middle-market companies that may be underserved by traditional capital providers. Even among its peers, this approach is unusual. Leading BDCs such as Hercules Technology Growth Capital or Horizon Technology Finance tend to partner with the best start-ups in growth industries such as energy, life sciences, and technology.
By taking a different approach, Ares is not only carving out a niche in the world of BDCs, but it has found a way to tap into the types of activities usually handled by traditional investment banks.
Image Source: Getty Images
An under-the-radar Warren Buffett stock
One of the core principles of Warren Buffett's investment philosophy is to seek out dividend income. Within the Berkshire Hathaway portfolio, some of the largest dividend generators include Apple, Coca-Cola, and Bank of America. But did you know Buffett has a little-known portfolio outside of Berkshire Hathaway?
The investment firm New England Asset Management (NEAM) is a subsidiary of Berkshire Hathaway. While NEAM is much smaller than its parent in terms of total assets, its portfolio contains a larger number of stocks -- one of which is none other than Ares Capital.
Data source: YCharts.
Given the company's steadily increasing dividend over the past 10 years and its eye-popping total returns of 195%, it's easy to understand why Buffett loves this multibagger stock.
Should you buy Ares Capital stock?
From a valuation perspective, a useful measure for assessing Ares Capital stock is the price-to-book (P/B) ratio. It's a metric commonly used in analyzing banks and other financial services businesses.
Data source: YCharts.
The P/B ratio for Ares Capital is currently 1.06, right in line with its 10-year average. But perhaps more interesting is that it's well below its peak of 1.47. Moreover, that valuation also pales in comparison to those of Hercules Technology Growth Capital and Horizon Technology Finance, which have P/B ratios of more than 1.2.
Data source: YCharts.
The chart above shows the return of Ares Capital stock relative to a number of S&P 500-themed exchange-traded funds (ETFs) over the past five years. Investors can clearly see that Ares Capital is the top-performing equity. Given its discount relative to other leading BDCs and its low valuation compared to past periods, this looks like a bargain opportunity to consider buying some shares in this market-beating dividend payer.
Should you invest $1,000 in Ares Capital right now?
Before you buy stock in Ares Capital, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Ares Capital wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
See the 10 stocks
*Stock Advisor returns as of December 11, 2023
Bank of America is an advertising partner of The Ascent, a Motley Fool company. Adam Spatacco has positions in Apple. The Motley Fool has positions in and recommends Apple, Bank of America, and Berkshire Hathaway. The Motley Fool recommends the following options: long January 2024 $47.50 calls on Coca-Cola. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By taking a different approach, Ares is not only carving out a niche in the world of BDCs, but it has found a way to tap into the types of activities usually handled by traditional investment banks. Given the company's steadily increasing dividend over the past 10 years and its eye-popping total returns of 195%, it's easy to understand why Buffett loves this multibagger stock. Given its discount relative to other leading BDCs and its low valuation compared to past periods, this looks like a bargain opportunity to consider buying some shares in this market-beating dividend payer.
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Leading BDCs such as Hercules Technology Growth Capital or Horizon Technology Finance tend to partner with the best start-ups in growth industries such as energy, life sciences, and technology. Moreover, that valuation also pales in comparison to those of Hercules Technology Growth Capital and Horizon Technology Finance, which have P/B ratios of more than 1.2. Before you buy stock in Ares Capital, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Ares Capital wasn't one of them.
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Should you buy Ares Capital stock? Before you buy stock in Ares Capital, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Ares Capital wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Bank of America is an advertising partner of The Ascent, a Motley Fool company.
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Should you buy Ares Capital stock? Should you invest $1,000 in Ares Capital right now? Before you buy stock in Ares Capital, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Ares Capital wasn't one of them.
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12090.0
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2023-12-13 00:00:00 UTC
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The Dow Jones Just Hit a Record High. History Says Stocks Will Do This Next.
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AAPL
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https://www.nasdaq.com/articles/the-dow-jones-just-hit-a-record-high.-history-says-stocks-will-do-this-next.
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nan
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nan
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The Dow Jones Industrial Average (DJINDICES: ^DJI) tracks 30 large U.S. stocks. Inclusion is limited to companies that have excellent reputations, demonstrate sustained growth, and generate widespread interest among investors. To that end, the index is commonly regarded as a collection of blue chip stocks, though it also serves as one of three major barometers for the overall U.S. stock market, with the other two being the S&P 500 (SNPINDEX: ^GSPC) and the Nasdaq Composite (NASDAQINDEX: ^IXIC).
The Dow Jones traded sideways through the first 10 months of the year, but the index has soared 12% since the end of October on particularly strong momentum in four stocks: Apple (NASDAQ: AAPL), Intel (NASDAQ: INTC), Microsoft (NASDAQ: MSFT), and Salesforce (NYSE: CRM). The upshot of that momentum is that the Dow Jones reached a record high on Wednesday, meaning the blue chip index just entered bull market territory.
Past performance is never a guarantee of future returns, but crossing the bull market threshold has historically been a good sign for stocks.
History says the Dow Jones is headed much higher
The Dow Jones has run through eight bull markets in the last 50 years. The average one lasted about five years and saw the index climb 172%. But returns varied substantially between individual bull markets, as detailed in the table below:
BULL MARKET START
DOW JONES RETURN
December 1974
76%
February 1979
38%
August 1982
250%
October 1987
73%
October 1990
396%
October 2002
94%
March 2009
348%
March 2020
98%
Average
172%
Data source: YCharts. Chart by author.
Here's the upshot: If the new bull market aligns with the historical average, the Dow Jones will increase 172% over a five-year period. But the current bull market technically started when the Dow Jones bottomed in October 2022. The index has since climbed about 27%, bringing the implied upside down to roughly 110% over four years from today's levels.
However, returns have varied dramatically between past bull markets, so investors would do better to benchmark against a different metric. Specifically, the Dow Jones returned about 9% annually over the past four decades, and its performance will likely be similar over the next four decades.
Investors looking to capitalize on that should consider buying some of the more promising blue chip stocks in the Dow Jones. For instance, Salesforce and Microsoft have strong market positions and solid growth prospects that could unlock plenty of value for patient shareholders.
Salesforce has been the leader in customer relationship management (CRM) software for 10 consecutive years, and the CRM market is forecast to grow by 14% annually through 2030. Similarly, Microsoft is the leader in enterprise software-as-a-service and operates the second-largest cloud computing platform; those markets are also projected to grow by 14% annually through the end of the decade.
Building on that, Salesforce and Microsoft are leaning into the growing demand for artificial intelligence (AI). In fact, Morgan Stanley analyst Keith Weiss argues Microsoft in particular is the software company best positioned to monetize generative AI. But both could be long-term winners as more businesses seek productivity gains through automation.
An index fund stacked with blue chip stocks
Alternatively, investors could take a more conservative approach and buy shares of the SPDR Dow Jones Industrial Average ETF (NYSEMKT: DIA).
The SPDR Dow Jones Industrial Average ETF is an index fund that tracks all 30 blue chip stocks in the Dow Jones, meaning it provides exposure to some of the most economically influential U.S. companies. The five largest holdings in the fund are detailed below:
UnitedHealth Group: 9.4%
Microsoft: 6.7%
Goldman Sachs Group: 6.4%
Home Depot: 5.9%
McDonald's: 5.2%
At recent prices, the SPDR Dow Jones Industrial Average ETF returned 473% over the last two decades, or 9.1% annually. Additionally, it was slightly less volatile than the broader S&P 500, as evidenced by its 10-year beta of 0.95. The index fund bears a below-average expense ratio of 0.16%, meaning the annual fee on a $10,000 portfolio would be $16.
Here's the bottom line: The Dow Jones has consistently created wealth over long periods of time, and I'd bet my bottom dollar that trend continues in the future. Patient investors looking to capitalize on that upward momentum can purchase shares of individual stocks like Microsoft or Salesforce, or they can purchase shares of the SPDR Dow Jones Industrial Average ETF to spread capital across the entire blue chip index.
Should you invest $1,000 in Dow Jones Industrial Average (Price Return) right now?
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Trevor Jennewine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Goldman Sachs Group, Home Depot, Microsoft, and Salesforce. The Motley Fool recommends Intel and UnitedHealth Group and recommends the following options: long January 2023 $57.50 calls on Intel, long January 2025 $45 calls on Intel, and short February 2024 $47 calls on Intel. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Dow Jones traded sideways through the first 10 months of the year, but the index has soared 12% since the end of October on particularly strong momentum in four stocks: Apple (NASDAQ: AAPL), Intel (NASDAQ: INTC), Microsoft (NASDAQ: MSFT), and Salesforce (NYSE: CRM). The upshot of that momentum is that the Dow Jones reached a record high on Wednesday, meaning the blue chip index just entered bull market territory. Similarly, Microsoft is the leader in enterprise software-as-a-service and operates the second-largest cloud computing platform; those markets are also projected to grow by 14% annually through the end of the decade.
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The Dow Jones traded sideways through the first 10 months of the year, but the index has soared 12% since the end of October on particularly strong momentum in four stocks: Apple (NASDAQ: AAPL), Intel (NASDAQ: INTC), Microsoft (NASDAQ: MSFT), and Salesforce (NYSE: CRM). The five largest holdings in the fund are detailed below: UnitedHealth Group: 9.4% Microsoft: 6.7% Goldman Sachs Group: 6.4% Home Depot: 5.9% McDonald's: 5.2% At recent prices, the SPDR Dow Jones Industrial Average ETF returned 473% over the last two decades, or 9.1% annually. Patient investors looking to capitalize on that upward momentum can purchase shares of individual stocks like Microsoft or Salesforce, or they can purchase shares of the SPDR Dow Jones Industrial Average ETF to spread capital across the entire blue chip index.
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The Dow Jones traded sideways through the first 10 months of the year, but the index has soared 12% since the end of October on particularly strong momentum in four stocks: Apple (NASDAQ: AAPL), Intel (NASDAQ: INTC), Microsoft (NASDAQ: MSFT), and Salesforce (NYSE: CRM). The SPDR Dow Jones Industrial Average ETF is an index fund that tracks all 30 blue chip stocks in the Dow Jones, meaning it provides exposure to some of the most economically influential U.S. companies. Patient investors looking to capitalize on that upward momentum can purchase shares of individual stocks like Microsoft or Salesforce, or they can purchase shares of the SPDR Dow Jones Industrial Average ETF to spread capital across the entire blue chip index.
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The Dow Jones traded sideways through the first 10 months of the year, but the index has soared 12% since the end of October on particularly strong momentum in four stocks: Apple (NASDAQ: AAPL), Intel (NASDAQ: INTC), Microsoft (NASDAQ: MSFT), and Salesforce (NYSE: CRM). The SPDR Dow Jones Industrial Average ETF is an index fund that tracks all 30 blue chip stocks in the Dow Jones, meaning it provides exposure to some of the most economically influential U.S. companies. Before you buy stock in Dow Jones Industrial Average (Price Return), consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Dow Jones Industrial Average (Price Return) wasn't one of them.
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12091.0
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2023-12-13 00:00:00 UTC
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Tesla Stock Can Soar in 2024 if It Does These 3 Things
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AAPL
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https://www.nasdaq.com/articles/tesla-stock-can-soar-in-2024-if-it-does-these-3-things
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nan
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nan
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Tesla (NASDAQ: TSLA) stock has crushed the market so far this year. However, it's still down over 40% from its all-time high during a time when many other mega-cap growth stocks, like Microsoft, Apple, and Nvidia, are making new all-time highs.
Tesla has what it takes to continue its hot streak going into 2024. But it has to execute across some key aspects of its business. Here's what to watch next year and what the electric car stock needs to do to justify a higher valuation.
Image source: Getty Images.
Managing margins
In hindsight, it's easy to see why Tesla hit an all-time high in early 2022. The once-unprofitable company shocked the investing world with quarter after quarter of consistent profits paired with high revenue growth and high margins.
Tesla carried its torrid growth pace into 2022 -- posting a banner year across the board. But Tesla's margins have since come down, and its top- and bottom-line growth rates have slowed.
Over the last year, Tesla's trailing-12-month revenue has grown by only 17.8%, while its net income is down 14.3%, and its operating margin has fallen by over a third to 11.2%. The following chart does a good job of showing Tesla's massive growth, followed by this year's deceleration.
TSLA Operating Margin (TTM) data by YCharts
Price cuts and lower growth contributed to Tesla's margin decline this year. However, its margins could be lower in the future as Tesla tries to unlock entry into the coveted mass-market electric vehicle market, which would shift the company's strategy toward higher volume, lower-priced vehicles.
In its third-quarter earnings presentation, the company reiterated its goal of a 50% long-term production compound annual growth rate. It would be a worthy trade-off if Tesla achieves solid revenue and earnings growth at the expense of a lower margin.
In the short term, be on the lookout to see if Tesla can improve its operating margin. Longer-term, the challenge will be finding the sweet spot between revenue growth and profitability.
Monetizing AI and robotics
Tesla has done an impeccable job of becoming a profitable and (generally) high-growth electric vehicle company. But it has yet to monetize its artificial intelligence (AI) and robotics ventures -- mainly fully autonomous self-driving vehicles.
For several years now, Tesla has been flaunting its self-driving software. It got to the point where Tesla was thinking far too long-term and had to reel itself in and focus on generating positive cash flow from the Model 3 and then the Model Y. Thankfully, Tesla did that. But the company has a history of throwing money at projects that either pan out later than expected or don't pan out at all.
Tesla has an extremely attractive portfolio of AI and robotics ideas. Cracking the code on vehicles that can safely drive themselves would open the door to electric robotaxis -- an idea integral to the ultra-bullish investment thesis held by Cathie Wood and others.
While you could argue that Tesla could have made a lot more money if it hadn't spent so many resources on self-driving, the long-tail potential is too appealing to ignore. If you invest in Tesla, you have to accept that this will simply be a part of the company's budget and that it may not prove to be a worthwhile investment for some time.
Preserving the balance sheet
Tesla has done an excellent job of keeping debt off of its balance sheet and relying on cash flows to fund both short- and long-term investments. The company has $15.9 billion in cash and equivalents on its balance sheet and just $3.7 billion in long-term debt.
It is impressive that Tesla can keep a largely debt-free balance sheet despite being in the capital-intensive auto industry and supporting expensive long-term projects. One of the biggest things Tesla investors should watch in the coming years is how the quality of the balance sheet responds if there is a prolonged slowdown in demand or if Tesla tries to invest even during a downturn in the business cycle. In other words, what is the extent of the damage to the balance sheet if expenses stay the same or increase, but cash flows decline?
The stock market can be overly focused on the short term. If Tesla barrels ahead full throttle on its multidecade plans even as growth slows, its performance deteriorates, and its leverage increases, then the stock could sell off. Even if investing throughout the market cycle is the right long-term move, it's vital to recognize that the market may be unwilling to think so long-term during a broad sell-off.
Know what you're getting into before you invest
If you invest in Tesla, it's important to understand that the company will probably stick to its long-term plans even at the expense of its short-term performance and the wishes of Wall Street. This mindset is why Tesla stock can suffer steep sell-offs and meteoric gains. When the stars align, Tesla looks like it can do no wrong. But when Tesla stubbornly pursues its goals no matter the market cycle, it can look reckless and borderline irresponsible.
Tesla is one of those companies where understanding the long-term investment thesis and what can move the stock in the short term are equally important. That way, you aren't caught off guard if the stock moves to the upside or the downside.
If Tesla improves its top- and bottom-line growth rates, bolsters its margins, charts a path toward monetizing AI and robotics, and maintains or improves its rock-solid balance sheet, the stock could surpass a new all-time high in 2024. But there's also a good chance that Tesla needs more time to return to the growth that investors have come to expect.
In sum, Tesla has the makings of an excellent long-term investment and is certainly worth holding or even buying a small position in. But there's no rush to dive in headfirst and buy the stock hand over first at this time.
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Daniel Foelber has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Microsoft, Nvidia, and Tesla. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Cracking the code on vehicles that can safely drive themselves would open the door to electric robotaxis -- an idea integral to the ultra-bullish investment thesis held by Cathie Wood and others. It is impressive that Tesla can keep a largely debt-free balance sheet despite being in the capital-intensive auto industry and supporting expensive long-term projects. If Tesla barrels ahead full throttle on its multidecade plans even as growth slows, its performance deteriorates, and its leverage increases, then the stock could sell off.
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However, it's still down over 40% from its all-time high during a time when many other mega-cap growth stocks, like Microsoft, Apple, and Nvidia, are making new all-time highs. The once-unprofitable company shocked the investing world with quarter after quarter of consistent profits paired with high revenue growth and high margins. If Tesla improves its top- and bottom-line growth rates, bolsters its margins, charts a path toward monetizing AI and robotics, and maintains or improves its rock-solid balance sheet, the stock could surpass a new all-time high in 2024.
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One of the biggest things Tesla investors should watch in the coming years is how the quality of the balance sheet responds if there is a prolonged slowdown in demand or if Tesla tries to invest even during a downturn in the business cycle. Tesla is one of those companies where understanding the long-term investment thesis and what can move the stock in the short term are equally important. If Tesla improves its top- and bottom-line growth rates, bolsters its margins, charts a path toward monetizing AI and robotics, and maintains or improves its rock-solid balance sheet, the stock could surpass a new all-time high in 2024.
|
Even if investing throughout the market cycle is the right long-term move, it's vital to recognize that the market may be unwilling to think so long-term during a broad sell-off. Tesla is one of those companies where understanding the long-term investment thesis and what can move the stock in the short term are equally important. If Tesla improves its top- and bottom-line growth rates, bolsters its margins, charts a path toward monetizing AI and robotics, and maintains or improves its rock-solid balance sheet, the stock could surpass a new all-time high in 2024.
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12092.0
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2023-12-13 00:00:00 UTC
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Technology Sector Update for 12/14/2023: ADBE, MVIS, AAPL, GOOG
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AAPL
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https://www.nasdaq.com/articles/technology-sector-update-for-12-14-2023%3A-adbe-mvis-aapl-goog
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nan
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nan
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Tech stocks were mixed Thursday afternoon with the Technology Select Sector SPDR Fund (XLK) decreasing 0.6% and the SPDR S&P Semiconductor ETF (XSD) climbing 3%.
The Philadelphia Semiconductor index rose 2.1%.
In corporate news, Adobe (ADBE) shares tumbled 6.5%, a day after fiscal 2024 revenue guidance disappointed investors.
MicroVision (MVIS) rose 1.9% after the company said it expects its 2023 revenue to be near the top end of its previous forecast of $6.5 million to $8 million.
Apple (AAPL) and Alphabet's (GOOG) Google were asked by the European Commission to provide information on risk-mitigation measures on their app stores, the EU's executive arm said Thursday. Apple fell 0.5%, and Alphabet dropped 1.9%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) and Alphabet's (GOOG) Google were asked by the European Commission to provide information on risk-mitigation measures on their app stores, the EU's executive arm said Thursday. Tech stocks were mixed Thursday afternoon with the Technology Select Sector SPDR Fund (XLK) decreasing 0.6% and the SPDR S&P Semiconductor ETF (XSD) climbing 3%. In corporate news, Adobe (ADBE) shares tumbled 6.5%, a day after fiscal 2024 revenue guidance disappointed investors.
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Apple (AAPL) and Alphabet's (GOOG) Google were asked by the European Commission to provide information on risk-mitigation measures on their app stores, the EU's executive arm said Thursday. The Philadelphia Semiconductor index rose 2.1%. MicroVision (MVIS) rose 1.9% after the company said it expects its 2023 revenue to be near the top end of its previous forecast of $6.5 million to $8 million.
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Apple (AAPL) and Alphabet's (GOOG) Google were asked by the European Commission to provide information on risk-mitigation measures on their app stores, the EU's executive arm said Thursday. Tech stocks were mixed Thursday afternoon with the Technology Select Sector SPDR Fund (XLK) decreasing 0.6% and the SPDR S&P Semiconductor ETF (XSD) climbing 3%. MicroVision (MVIS) rose 1.9% after the company said it expects its 2023 revenue to be near the top end of its previous forecast of $6.5 million to $8 million.
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Apple (AAPL) and Alphabet's (GOOG) Google were asked by the European Commission to provide information on risk-mitigation measures on their app stores, the EU's executive arm said Thursday. Tech stocks were mixed Thursday afternoon with the Technology Select Sector SPDR Fund (XLK) decreasing 0.6% and the SPDR S&P Semiconductor ETF (XSD) climbing 3%. The Philadelphia Semiconductor index rose 2.1%.
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12093.0
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2023-12-13 00:00:00 UTC
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Magnificent Seven Could Deliver More Gains in 2024
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AAPL
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https://www.nasdaq.com/articles/magnificent-seven-could-deliver-more-gains-in-2024
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nan
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nan
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The magnificent seven cohort of mega-cap growth stocks have loomed large for investors. They drove a significant portion of the impressive returns notched by broad market indexes.
Big gains by Apple, Alphabet (Google), Meta Platforms, Amazon.com, Nvidia, Microsoft, and Tesla are prompting market participants to wonder whether or not sequels are in store next. History isn’t guaranteed to repeat. And asking for a similar upside to what was notched by the magnificent seven may be too demanding. But these beloved names may continue their bullish ways in 2024.
That would benefit a variety of exchange traded funds, including the Invesco QQQ Trust (QQQ) and the Invesco NASDAQ 100 ETF (QQQM). Both ETFs follow the Nasdaq-100 Index (NDX). They’re fine options for investors who want exposure to each of the magnificent seven without having to directly own those names.
Expensive, But Justifiably So
During rallies, such as the one that occurred this year, investors often that the Nasdaq-100 is richly valued. With QQQ and QQQM higher by 51.49% year-to-date, a case can be made that plenty of the stocks residing in the ETFs are expensive. But when it comes to the magnificent seven, that’s not necessarily an indictment. Why? Because these companies have the fundamentals to support elevated earnings multiples.
“The second point is that it is important to remember that large market capitalisation can be justified by large fundamentals. This might sound obvious, but these companies are some of the most profitable and cashflow generative in the world. For that reason, they command higher-than-average valuations in the stock market,” according to Schroders.
Another point to consider is that AI is far from the only reason the magnificent seven surged this year. And that's actually good news for QQQ and QQQM. Experienced investors know as much. QQQ and QQQM notched impressive showings prior to AI becoming the focal point of growth investing this year. Still, it’s worth remembering that there’s more to the ETFs and the magnificent seven than just AI.
“While generative AI has and will be a significant tailwind for some of these businesses (as with Nvidia), their strength in 2023 cannot be attributed solely to AI. We only need to look at Meta/Google to illustrate this - both companies are likely to deploy generative AI aggressively in the coming years, but the shares have been supported by the combination of recovering end markets and cost optimisations. This has led to significant improvements in profitability and cash flow, particularly at Meta,” concluded Schroders.
For more news, information, and analysis, visit the ETF Education Channel.
Read more on ETFTrends.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Big gains by Apple, Alphabet (Google), Meta Platforms, Amazon.com, Nvidia, Microsoft, and Tesla are prompting market participants to wonder whether or not sequels are in store next. QQQ and QQQM notched impressive showings prior to AI becoming the focal point of growth investing this year. We only need to look at Meta/Google to illustrate this - both companies are likely to deploy generative AI aggressively in the coming years, but the shares have been supported by the combination of recovering end markets and cost optimisations.
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That would benefit a variety of exchange traded funds, including the Invesco QQQ Trust (QQQ) and the Invesco NASDAQ 100 ETF (QQQM). “The second point is that it is important to remember that large market capitalisation can be justified by large fundamentals. QQQ and QQQM notched impressive showings prior to AI becoming the focal point of growth investing this year.
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That would benefit a variety of exchange traded funds, including the Invesco QQQ Trust (QQQ) and the Invesco NASDAQ 100 ETF (QQQM). QQQ and QQQM notched impressive showings prior to AI becoming the focal point of growth investing this year. We only need to look at Meta/Google to illustrate this - both companies are likely to deploy generative AI aggressively in the coming years, but the shares have been supported by the combination of recovering end markets and cost optimisations.
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Another point to consider is that AI is far from the only reason the magnificent seven surged this year. And that's actually good news for QQQ and QQQM. QQQ and QQQM notched impressive showings prior to AI becoming the focal point of growth investing this year.
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12094.0
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2023-12-13 00:00:00 UTC
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Apple (AAPL) Advances But Underperforms Market: Key Facts
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AAPL
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https://www.nasdaq.com/articles/apple-aapl-advances-but-underperforms-market%3A-key-facts
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nan
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nan
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Apple (AAPL) closed the most recent trading day at $198.11, moving +0.08% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 0.27% for the day. Meanwhile, the Dow gained 0.43%, and the Nasdaq, a tech-heavy index, added 0.19%.
Heading into today, shares of the maker of iPhones, iPads and other products had gained 5.29% over the past month, lagging the Computer and Technology sector's gain of 5.93% and the S&P 500's gain of 6.94% in that time.
The upcoming earnings release of Apple will be of great interest to investors. The company is forecasted to report an EPS of $2.08, showcasing a 10.64% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $117.31 billion, up 0.13% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $6.56 per share and a revenue of $393.42 billion, signifying shifts of +7.01% and +2.65%, respectively, from the last year.
Investors should also take note of any recent adjustments to analyst estimates for Apple. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.12% higher. Apple presently features a Zacks Rank of #3 (Hold).
In terms of valuation, Apple is currently trading at a Forward P/E ratio of 30.16. This denotes a premium relative to the industry's average Forward P/E of 12.24.
We can additionally observe that AAPL currently boasts a PEG ratio of 2.73. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Computer - Mini computers stocks are, on average, holding a PEG ratio of 2.73 based on yesterday's closing prices.
The Computer - Mini computers industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 92, putting it in the top 37% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow AAPL in the coming trading sessions, be sure to utilize Zacks.com.
The New Gold Rush: How Lithium Batteries Will Make Millionaires
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Download the brand-new FREE report revealing 5 EV battery stocks set to soar.
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Apple Inc. (AAPL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) closed the most recent trading day at $198.11, moving +0.08% from the previous trading session. We can additionally observe that AAPL currently boasts a PEG ratio of 2.73. To follow AAPL in the coming trading sessions, be sure to utilize Zacks.com.
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Apple (AAPL) closed the most recent trading day at $198.11, moving +0.08% from the previous trading session. We can additionally observe that AAPL currently boasts a PEG ratio of 2.73. To follow AAPL in the coming trading sessions, be sure to utilize Zacks.com.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple (AAPL) closed the most recent trading day at $198.11, moving +0.08% from the previous trading session. We can additionally observe that AAPL currently boasts a PEG ratio of 2.73.
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Apple (AAPL) closed the most recent trading day at $198.11, moving +0.08% from the previous trading session. We can additionally observe that AAPL currently boasts a PEG ratio of 2.73. To follow AAPL in the coming trading sessions, be sure to utilize Zacks.com.
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12095.0
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2023-12-13 00:00:00 UTC
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US STOCKS-Dow scores second record close in a row on lower-rate bets
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AAPL
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https://www.nasdaq.com/articles/us-stocks-dow-scores-second-record-close-in-a-row-on-lower-rate-bets
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nan
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nan
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By Caroline Valetkevitch and Noel Randewich
NEW YORK, Dec 14 (Reuters) - U.S. stocks ended firmer on Thursday, with the Dow Jones Industrial Average notching its second straight record high close, lifted by optimism that borrowing rates will decrease next year following a dovish pivot by the Federal Reserve.
Apple AAPL.O hit an intra-day record high before surrendering some of its gains to close up 0.08%.
Tesla TSLA.O shares surged 4.9%, with about $40 billion worth changing hands. Its turnover was more than double that of Nvidia NVDA.O, the next most traded company. The heavyweight chipmaker gained 0.5%.
Sectors that have underperformed this year also rose. Of the 11 S&P 500 sector indexes, six closed higher, led by energy .SPNY, up 2.94%, followed by a 2.62% gain in real estate .SPLRCR.
The S&P 500 .SPXclimbed 0.26% to end at 4,719.55 points. It remains down less than 2% from its record high close in January 2022.
The Nasdaq Composite Index .IXICgained 0.19% at 14,761.56 points, while the Dow Jones Industrial Average .DJIrose 0.43% to 37,248.35 points.
Volume on U.S. exchanges was unusually heavy, with 17.1 billion shares traded, compared to an average of 11.1 billion shares over the previous 20 sessions.
The PHLX semiconductor index .SOX surged 2.7% to close at a record high. The Russell Index .RUT of smaller companies also jumped about 2.7%.
The Fed left interest rates unchanged on Wednesday, as expected, with Chair Jerome Powell saying the historic tightening of monetary policy was likely over, as inflation falls faster than expected, and discussions on cuts in borrowing costs were coming "into view."
Investors were closely watching 10-year Treasury yields, which broke below 4% for the first time since early August in the wake of the Fed statement. They were last down at 3.94%.
"The market by any measure and any metric is overbought and has been overbought, and a consolidation or a pause has been expected, especially after yesterday's surge," said Quincy Krosby, chief global strategist at LPL Financial in Charlotte, North Carolina.
"While the market celebrates lower rates, it can question why yields are below 4%" as investors weigh the economic outlook, she added.
AdobeADBE.O fell 6.35% after the Photoshop maker forecast annual and quarterly revenue below estimates.
U.S. retail sales unexpectedly rose in November as the holiday shopping season got off to a brisk start, further alleviating fears of a recession, the Commerce Department reported on Thursday.
Advancing issues outnumbered falling ones within the S&P 500 .AD.SPX by a 1.9-to-one ratio.
The S&P 500 posted 96 new highs and no new lows; the Nasdaq recorded 259 new highs and 64 new lows.
Fed rate cut expectations https://tmsnrt.rs/41oElWr
S&P 500's busiest trades https://tmsnrt.rs/3TvGPRf
(Additional reporting by Shristi Achar A and Johann M Cherian in Bengaluru; Editing by Pooja Desai and Richard Chang)
((caroline.valetkevitch@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple AAPL.O hit an intra-day record high before surrendering some of its gains to close up 0.08%. By Caroline Valetkevitch and Noel Randewich NEW YORK, Dec 14 (Reuters) - U.S. stocks ended firmer on Thursday, with the Dow Jones Industrial Average notching its second straight record high close, lifted by optimism that borrowing rates will decrease next year following a dovish pivot by the Federal Reserve. U.S. retail sales unexpectedly rose in November as the holiday shopping season got off to a brisk start, further alleviating fears of a recession, the Commerce Department reported on Thursday.
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Apple AAPL.O hit an intra-day record high before surrendering some of its gains to close up 0.08%. By Caroline Valetkevitch and Noel Randewich NEW YORK, Dec 14 (Reuters) - U.S. stocks ended firmer on Thursday, with the Dow Jones Industrial Average notching its second straight record high close, lifted by optimism that borrowing rates will decrease next year following a dovish pivot by the Federal Reserve. The Nasdaq Composite Index .IXICgained 0.19% at 14,761.56 points, while the Dow Jones Industrial Average .DJIrose 0.43% to 37,248.35 points.
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Apple AAPL.O hit an intra-day record high before surrendering some of its gains to close up 0.08%. By Caroline Valetkevitch and Noel Randewich NEW YORK, Dec 14 (Reuters) - U.S. stocks ended firmer on Thursday, with the Dow Jones Industrial Average notching its second straight record high close, lifted by optimism that borrowing rates will decrease next year following a dovish pivot by the Federal Reserve. The PHLX semiconductor index .SOX surged 2.7% to close at a record high.
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Apple AAPL.O hit an intra-day record high before surrendering some of its gains to close up 0.08%. Of the 11 S&P 500 sector indexes, six closed higher, led by energy .SPNY, up 2.94%, followed by a 2.62% gain in real estate .SPLRCR. The PHLX semiconductor index .SOX surged 2.7% to close at a record high.
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US STOCKS-S&P 500 ends higher as investors bet on lower rates
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https://www.nasdaq.com/articles/us-stocks-sp-500-ends-higher-as-investors-bet-on-lower-rates
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By Caroline Valetkevitch and Noel Randewich
NEW YORK, Dec 14 (Reuters) - The S&P 500 closed higher on Thursday on optimism that borrowing rates will decrease next year following a dovish pivot by the Federal Reserve.
Trading was mixed for much of the session, with Apple AAPL.O giving up gains after hitting an intraday record high.
Tesla TSLA.Oshares surged, with over $37 billion worth changing hands.
Sectors that have underperformed this year also rose, including energy and real estate.
Investors were closely watching 10-year Treasury yields, which broke below 4% for the first time since early August in the wake of the Fed statement. They were last down at 3.94%.
"The market by any measure and any metric is overbought and has been overbought, and a consolidation or a pause has been expected, especially after yesterday's surge," said Quincy Krosby, chief global strategist at LPL Financial in Charlotte, North Carolina.
"While the market celebrates lower rates, it can question why yields are below 4%" as investors weigh the economic outlook, she added.
AdobeADBE.O fell after the Photoshop maker forecast annual and quarterly revenue below estimates.
U.S. retail sales unexpectedly rose in November as the holiday shopping season got off to a brisk start, further alleviating fears of a recession, the Commerce Department reported on Thursday.
Fed rate cut expectations https://tmsnrt.rs/41oElWr
S&P 500's busiest trades https://tmsnrt.rs/3TvGPRf
(Additional reporting by Shristi Achar A and Johann M Cherian in Bengaluru; Editing by Pooja Desai and Richard Chang)
((caroline.valetkevitch@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Trading was mixed for much of the session, with Apple AAPL.O giving up gains after hitting an intraday record high. By Caroline Valetkevitch and Noel Randewich NEW YORK, Dec 14 (Reuters) - The S&P 500 closed higher on Thursday on optimism that borrowing rates will decrease next year following a dovish pivot by the Federal Reserve. U.S. retail sales unexpectedly rose in November as the holiday shopping season got off to a brisk start, further alleviating fears of a recession, the Commerce Department reported on Thursday.
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Trading was mixed for much of the session, with Apple AAPL.O giving up gains after hitting an intraday record high. Sectors that have underperformed this year also rose, including energy and real estate. Investors were closely watching 10-year Treasury yields, which broke below 4% for the first time since early August in the wake of the Fed statement.
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Trading was mixed for much of the session, with Apple AAPL.O giving up gains after hitting an intraday record high. By Caroline Valetkevitch and Noel Randewich NEW YORK, Dec 14 (Reuters) - The S&P 500 closed higher on Thursday on optimism that borrowing rates will decrease next year following a dovish pivot by the Federal Reserve. "The market by any measure and any metric is overbought and has been overbought, and a consolidation or a pause has been expected, especially after yesterday's surge," said Quincy Krosby, chief global strategist at LPL Financial in Charlotte, North Carolina.
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Trading was mixed for much of the session, with Apple AAPL.O giving up gains after hitting an intraday record high. By Caroline Valetkevitch and Noel Randewich NEW YORK, Dec 14 (Reuters) - The S&P 500 closed higher on Thursday on optimism that borrowing rates will decrease next year following a dovish pivot by the Federal Reserve. Tesla TSLA.Oshares surged, with over $37 billion worth changing hands.
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US STOCKS-Wall St subdued, day after rally on Fed statement
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https://www.nasdaq.com/articles/us-stocks-wall-st-subdued-day-after-rally-on-fed-statement
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By Caroline Valetkevitch
NEW YORK, Dec 14 (Reuters) - The S&P 500 edged higher and the Nasdaq fell Thursday afternoon as investors took a breather a day after a sharp rally on signals from the Federal Reserve that borrowing costs would drop next year.
Apple AAPL.O shares were down 0.2% after hitting a record high in the session.
Investors were closely watching 10-year Treasury yields, which broke below 4% for the first time since early August in the wake of the Fed statement. They were last down at 3.94%.
"The market by any measure and any metric is overbought and has been overbought, and a consolidation or a pause has been expected, especially after yesterday's surge," said Quincy Krosby, chief global strategist at LPL Financial in Charlotte, North Carolina.
"While the market celebrates lower rates, it can question why yields are below 4%" as investors weigh the economic outlook, she added.
The Fed left interest rates unchanged on Wednesday, as expected, with Chair Jerome Powell saying the historic tightening of monetary policy was likely over, as inflation falls faster than expected, and discussions on cuts in borrowing costs were coming "into view."
The Dow Jones Industrial Average .DJI rose 86.67 points, or 0.23%, to 37,176.91, the S&P 500 .SPX gained 5.34 points, or 0.11%, at 4,712.43 and the Nasdaq Composite .IXIC dropped 7.85 points, or 0.05%, to 14,726.12.
Among other decliners, AdobeADBE.O shed 7.1% after the Photoshop maker forecast annual and quarterly revenue below estimates.
U.S. retail sales unexpectedly rose in November as the holiday shopping season got off to a brisk start, further alleviating fears of a recession, the Commerce Department reported on Thursday.
Advancing issues outnumbered decliners on the NYSE by a 3.98-to-1 ratio; on Nasdaq, a 2.30-to-1 ratio favored advancers.
The S&P 500 posted 94 new 52-week highs and no new lows; the Nasdaq Composite recorded 246 new highs and 55 new lows.
Fed rate cut expectations https://tmsnrt.rs/41oElWr
(Additional reporting by Shristi Achar A and Johann M Cherian in Bengaluru; Editing by Pooja Desai and Richard Chang)
((caroline.valetkevitch@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple AAPL.O shares were down 0.2% after hitting a record high in the session. By Caroline Valetkevitch NEW YORK, Dec 14 (Reuters) - The S&P 500 edged higher and the Nasdaq fell Thursday afternoon as investors took a breather a day after a sharp rally on signals from the Federal Reserve that borrowing costs would drop next year. Investors were closely watching 10-year Treasury yields, which broke below 4% for the first time since early August in the wake of the Fed statement.
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Apple AAPL.O shares were down 0.2% after hitting a record high in the session. The Dow Jones Industrial Average .DJI rose 86.67 points, or 0.23%, to 37,176.91, the S&P 500 .SPX gained 5.34 points, or 0.11%, at 4,712.43 and the Nasdaq Composite .IXIC dropped 7.85 points, or 0.05%, to 14,726.12. The S&P 500 posted 94 new 52-week highs and no new lows; the Nasdaq Composite recorded 246 new highs and 55 new lows.
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Apple AAPL.O shares were down 0.2% after hitting a record high in the session. By Caroline Valetkevitch NEW YORK, Dec 14 (Reuters) - The S&P 500 edged higher and the Nasdaq fell Thursday afternoon as investors took a breather a day after a sharp rally on signals from the Federal Reserve that borrowing costs would drop next year. The Fed left interest rates unchanged on Wednesday, as expected, with Chair Jerome Powell saying the historic tightening of monetary policy was likely over, as inflation falls faster than expected, and discussions on cuts in borrowing costs were coming "into view."
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Apple AAPL.O shares were down 0.2% after hitting a record high in the session. By Caroline Valetkevitch NEW YORK, Dec 14 (Reuters) - The S&P 500 edged higher and the Nasdaq fell Thursday afternoon as investors took a breather a day after a sharp rally on signals from the Federal Reserve that borrowing costs would drop next year. Investors were closely watching 10-year Treasury yields, which broke below 4% for the first time since early August in the wake of the Fed statement.
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Earnings Season Update and Analyst Reports for Apple, Bank of America & S&P Global
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https://www.nasdaq.com/articles/earnings-season-update-and-analyst-reports-for-apple-bank-of-america-sp-global
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Thursday, December 14, 2023
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features a real-time update on the evolving earnings picture as the early Q4 results come in, in addition to featuring new research reports published by our team analysts today. These include updated research reports on Apple Inc. (AAPL), Bank of America Corporation (BAC), S&P Global Inc. (SPGI) and a many others. These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Earnings Season Update
Adobe became the third S&P 500 company to release quarterly resuls that get counted as part of our 2023 Q4 earnings tally. The Adobe results were for the company's fiscal quarter ending in November, as were the earlier resutls from AutoZone and Oracle.
A number of other bellwethers like Nike and FedEx will similarly be coming out with their respective fiscal November-quarter results, which will get counted as part of the 2023 Q4 earnings season tally. The Q4 reporting cycle will really get going with the JPMorgan results on January 12th, 2024. But we will have seen such early November-quarter results by almost two dozen S&P 500 members by the time JPMorgan reports its results.
For the three S&P 500 members that have reported such Q4 results, total earnings up +16.3% from the same period last year on +6.7% higher revenues, with with two out of the three (66.7% of the total) beating EPS and revenue estimates. This is comparable performance relative to what we had seen from this group of three index members in the preceding period.
Looking at Q3 as a whole, combining the actuals for these three S&P 500 members with estimates for the still-to-come companies, total earnings are expected to decline -0.1% from the same period last year on +2.3% higher revenues. This would follow the +3.5% earnings growth in the preceding period, which came after three back-to-back quarters of earnings declines.
Unlike the last two quarters, estimates for Q4 have been under pressure since the quarter got underway, with the current -0.1% decline down from +5.5% in early October at the strart of the quarter. Estimates were largely stable in the comparable periods of the preceding two quarters. In this respect, the Q4 revisions trend represents a notable shift.
Today's Featured Analyst Reports
Apple shares have performed roughly in-line with the Zacks Tech sector (+44.3% vs. +44.5%) but have handily outperformed the S&P 500 index (up +21.3%). The company is benefiting from strong demand for iPhone. Apple expects the iPhone’s year-over-year revenues to grow on an absolute basis in first-quarter fiscal 2024.
Revenues for Mac are expected to significantly accelerate compared with the fourth-quarter fiscal 2023’s reported figure. It expects the year-over-year revenue growth for both iPad and Wearables, Home and Accessories to decelerate significantly from the September quarter due to a different timing of product launches.
For the Services segment, Apple expects average revenues per week to grow at a similar strong double-digit rate as it did during the September quarter. It is benefiting from increasing customer engagement in the services segment. The expanding content portfolio of Apple TV+ aids subscriber growth.
(You can read the full research report on Apple here >>>)
Shares of Bank of America have gained +4.0% over the past year against the Zacks Banks - Major Regional industry’s gain of +13.2%. Higher interest rates and decent loan demand will keep supporting the company’s net interest income (NII) growth in the upcoming quarters.
Yet, the current tough macroeconomic environment will continue to weigh on the company’s investment banking (IB) business. This, along with the volatile nature of the capital markets, will likely hurt fee income. Due to inflationary pressure, overall costs are expected to remain elevated.
(You can read the full research report on Bank of America here >>>)
S&P Global shares have outperformed the Zacks Business - Information Services industry over the past year (+27.5% vs. +22.4%). The company remains well-poised to gain from the growing demand for business information services. Buyouts help innovate, increase differentiated content and develop new products.
New service launches have been aiding the company's growth. Dividend payments and share buybacks boost investors' confidence and positively impact earnings per share. Increasing current ratio bodes well for the company.
However, S&P Global remains vulnerable to proceedings, investigations and inquiries concerning the ratings provided, leading to legal charges, damages or fines. Growth initiatives, higher compensations and incentives raise the company's expenses. More long-term debt than cash does not bode well for the company.
(You can read the full research report on S&P Global here >>>)
Other noteworthy reports we are featuring today include Workday, Inc. (WDAY), Intercontinental Exchange, Inc. (ICE) and 3M Company (MMM).
Director of Research
Sheraz Mian
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Today's Must Read
Robust Portfolio, Services Strength to Benefit Apple (AAPL)
Branch Openings, Rates, Loans Aid BofA (BAC), High Costs Ail
S&P Global (SPGI) to Gain From ChartIQ Buyout, Costs High
Featured Reports
Workday (WDAY) Rides on Healthy Customer Growth, AI Prowess
Per the Zacks analyst, high demand for financial and human capital management solutions across industries will likely boost Workday's top line, while its AI services are increasingly gaining traction.
Intercontinental (ICE) Banks on Buyouts & Solid Balance Sheet
Per the Zacks analyst, Intercontinental Exchange is set to grow on a number of acquisitions and cost synergies. Moreover, a solid balance sheet provides financial flexibility.
Safety and Industrial Segment to Aid 3M (MMM), Costs Hurt
Per the Zacks analyst, 3M will benefit from robust momentum in the Safety and Industrial unit, led by strength in the roofing granules business. However, high costs remain concerning for the company.
General Mills (GIS) Gains From Focus on Accelerate Strategy
Per the Zacks analyst, General Mills is gaining from its Accelerate strategy, as part of which it is competing efficiently via brand building, investing in saving initiatives and reshaping portfolio.
Biogen's (BIIB) New Drugs Leqembi & Others Can Revive Growth
The Zacks analyst believes Biogen's new products like Leqembi for Alzheimer's disease, Skyclarys for Friedreich's ataxia and Zurzuvae for depression can help revive growth
Fastenal (FAST) Rides on Daily Sales Growth, Expenses High
Per the Zacks analyst, Fastenal is benefiting from daily sales growth, reasonable expense control and growth at Onsite locations. However, higher occupancy-related expenses are concerns.
Bill Holdings (BILL) Rides on Strong SMB Business clientele
Per the Zacks analyst, Bill is benefiting from an expanding small and medium business clientele, as well as a diversified business model.
New Upgrades
Strategic Pacts Aids Walgreens (WBA) Amid Margin Woes
Per the Zacks analyst, Walgreens' partnership with health technology firm Pearl Health will advance its value-based care delivery. Slowdown in generic introduction is affecting margins.
Technological Prowess & Client Retention Aid Rollins (ROL)
Per the Zacks analyst, Rollins' real-time service tracking and customer Internet communication technologies have increased its competitive advantage and customer retention.
Low Breakeven Costs to Aid Marathon Oil's (MRO) Cash Flows
The Zacks analyst believes that Marathon's extremely low oil price breakeven costs of just $35 a barrel should generate meaningful free cash flows and improve future profitability.
New Downgrades
Rising Rates, Risky Nuclear Plant Operation Ail Dominion (D)
Per the Zacks analyst, Dominion's capital projects will become costlier due to the rising interest rates. Risk associated in operating nuclear facilities will create additional challenges.
Mettler-Toledo (MTD) Suffers From Weak Laboratory Segment
Per the Zacks analyst, weak momentum in Laboratory segment due to broad-based softness in China is hurting Mettler-Toledo.
Waters (WAT) Suffers From Weakening Momentum in Asian Market
Per the Zacks analyst, weakness in Asian market due to soft demand conditions in China, is hurting Waters growth prospects.
The New Gold Rush: How Lithium Batteries Will Make Millionaires
As the electric vehicle revolution expands, investors have a chance to target huge gains. Millions of lithium batteries are being made & demand is expected to increase 889%.
Download the brand-new FREE report revealing 5 EV battery stocks set to soar.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Bank of America Corporation (BAC) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Intercontinental Exchange Inc. (ICE) : Free Stock Analysis Report
3M Company (MMM) : Free Stock Analysis Report
Workday, Inc. (WDAY) : Free Stock Analysis Report
S&P Global Inc. (SPGI) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Robust Portfolio, Services Strength to Benefit Apple (AAPL) Branch Openings, Rates, Loans Aid BofA (BAC), High Costs Ail S&P Global (SPGI) to Gain From ChartIQ Buyout, Costs High Featured Reports Workday (WDAY) Rides on Healthy Customer Growth, AI Prowess Per the Zacks analyst, high demand for financial and human capital management solutions across industries will likely boost Workday's top line, while its AI services are increasingly gaining traction. These include updated research reports on Apple Inc. (AAPL), Bank of America Corporation (BAC), S&P Global Inc. (SPGI) and a many others. Click to get this free report Bank of America Corporation (BAC) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Intercontinental Exchange Inc. (ICE) : Free Stock Analysis Report 3M Company (MMM) : Free Stock Analysis Report Workday, Inc. (WDAY) : Free Stock Analysis Report S&P Global Inc. (SPGI) : Free Stock Analysis Report To read this article on Zacks.com click here.
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If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Robust Portfolio, Services Strength to Benefit Apple (AAPL) Branch Openings, Rates, Loans Aid BofA (BAC), High Costs Ail S&P Global (SPGI) to Gain From ChartIQ Buyout, Costs High Featured Reports Workday (WDAY) Rides on Healthy Customer Growth, AI Prowess Per the Zacks analyst, high demand for financial and human capital management solutions across industries will likely boost Workday's top line, while its AI services are increasingly gaining traction. Click to get this free report Bank of America Corporation (BAC) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Intercontinental Exchange Inc. (ICE) : Free Stock Analysis Report 3M Company (MMM) : Free Stock Analysis Report Workday, Inc. (WDAY) : Free Stock Analysis Report S&P Global Inc. (SPGI) : Free Stock Analysis Report To read this article on Zacks.com click here. These include updated research reports on Apple Inc. (AAPL), Bank of America Corporation (BAC), S&P Global Inc. (SPGI) and a many others.
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If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Robust Portfolio, Services Strength to Benefit Apple (AAPL) Branch Openings, Rates, Loans Aid BofA (BAC), High Costs Ail S&P Global (SPGI) to Gain From ChartIQ Buyout, Costs High Featured Reports Workday (WDAY) Rides on Healthy Customer Growth, AI Prowess Per the Zacks analyst, high demand for financial and human capital management solutions across industries will likely boost Workday's top line, while its AI services are increasingly gaining traction. Click to get this free report Bank of America Corporation (BAC) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Intercontinental Exchange Inc. (ICE) : Free Stock Analysis Report 3M Company (MMM) : Free Stock Analysis Report Workday, Inc. (WDAY) : Free Stock Analysis Report S&P Global Inc. (SPGI) : Free Stock Analysis Report To read this article on Zacks.com click here. These include updated research reports on Apple Inc. (AAPL), Bank of America Corporation (BAC), S&P Global Inc. (SPGI) and a many others.
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If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Robust Portfolio, Services Strength to Benefit Apple (AAPL) Branch Openings, Rates, Loans Aid BofA (BAC), High Costs Ail S&P Global (SPGI) to Gain From ChartIQ Buyout, Costs High Featured Reports Workday (WDAY) Rides on Healthy Customer Growth, AI Prowess Per the Zacks analyst, high demand for financial and human capital management solutions across industries will likely boost Workday's top line, while its AI services are increasingly gaining traction. These include updated research reports on Apple Inc. (AAPL), Bank of America Corporation (BAC), S&P Global Inc. (SPGI) and a many others. Click to get this free report Bank of America Corporation (BAC) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Intercontinental Exchange Inc. (ICE) : Free Stock Analysis Report 3M Company (MMM) : Free Stock Analysis Report Workday, Inc. (WDAY) : Free Stock Analysis Report S&P Global Inc. (SPGI) : Free Stock Analysis Report To read this article on Zacks.com click here.
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3 Strong Buy Stocks for a Year-End Pickup
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https://www.nasdaq.com/articles/3-strong-buy-stocks-for-a-year-end-pickup
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
It’s time for investors to do some year-end planning. What worked? What didn’t? If you’re looking to add to your portfolio, identifying strong buy stocks is a good place to start.
Part of every investor’s due diligence is to look at analyst ratings. While they get it wrong sometimes, analyst opinions carry weight because they are deeply immersed in specific companies and sectors.
In 2023, those ratings go well beyond “Buy,” “Sell,” or “Hold.” The idea was to allow analysts more nuance in their recommendations. Therefore, when analysts give a stock a “Strong Buy” rating, investors should pay attention. That’s a message to investors to look at those stocks closely.
To be clear, it’s virtually impossible to find a stock that will have a consensus “Strong Buy” rating. However, the stocks on this list are being covered by a statistically significant number of analysts and are getting a substantial number of “Strong Buy” ratings. Therefore, they can be considered strong buy stocks. Here are three of those stocks for you to consider.
Zscaler (ZS)
Source: Sundry Photography / Shutterstock.com
Zscaler (NASDAQ:ZS) is a leader in a specific kind of cybersecurity built on zero trust architecture. What problem is zero trust attempting to solve?
Even before companies were adopting a fully remote or hybrid environment, there were networks spread over multiple cloud networks with remote users and multiple IoT devices. However, having these devices outside of a company’s “perimeter” opens the door for hackers and malware to infect a system.
And ironically, as much as artificial intelligence (AI) is expected to aid companies in their cybersecurity systems, generative AI is increasing the threats these companies face.
That’s where zero trust comes in. This system requires each device and user to be checked with every demand for access. Zscaler’s Zero Trust Exchange is a cloud-based AI-powered threat prevention system. In the third quarter, the company grew at a 30% clip that led the market. The company’s guidance suggests that’s just the beginning.
Out of 40 analysts that have given ZS stock a rating in the last three months, 29 give the stock a “Strong Buy” rating. If you want exposure to strong buy stocks in the cybersecurity sector, Zscaler merits your attention.
Salesforce (CRM)
Source: Sundry Photography / Shutterstock.com
Salesforce (NYSE:CRM) is one of 2023’s best-performing stocks. The company’ has the world’s number one generative AI solution for customer relationship management.
As of this writing, CRM stock is up 93%. Understandably, investors on the sidelines may be hesitant to chase the stock higher. Howeer since this is an article about “Strong Buy” stocks, you already know that Salesforce has that going for it.
However, in December, Salesforce and Apple (NASDAQ:AAPL) announced an expansion of their partnership. The new integrations will further embed Salesforce into the Apple ecosystem. And on December 12, the company announced that they were expanding their partnership with Automatic Data Processing (NASDAQ:ADP) “to reimagine ADPs client experience for ADPs more than one million clients.
That being said, the current consensus price target for CRM stock points to a 7% gain. However, of the 48 analysts that issued a rating on Salesforce in the last three months, 29 gave the stock a “Strong Buy” rating.
Vale (VALE)
Source: rafapress / Shutterstock.com
If you prefer strong buy stocks that also pay attractive dividends, Vale (NYSE:VALE) looks very appealing. It’s a Brazilian-based company that is offering attractive value with a forward price-to-earnings ratio of 6.7 times. it also pays a semi-annual dividend that currently yields 6.94%.
The company is best known for mining iron ore and copper. That would be enough to get it on the radar of many investors. However, the company is also one of the world’s leading miners of nickel. In addition to lithium, nickel is a metal that is essential to the EV industry.
VALE stock is down 12% in 2023 due, in part, to two consecutive quarters of misses on the top and bottom lines. However, the company got back on track in its most recent quarter and is up approximately 8% in the last three months.
Analysts are forecasting earnings growth of 29.7% in the next 12 months. That corresponds to a consensus price target that gives VALE stock a 17% gain in that same period. Out of 23 analysts, 14 give the stock a “Strong Buy” rating.
On the date of publication, Chris Markoch did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Chris Markoch is a freelance financial copywriter who has been covering the market for over five years. He has been writing for InvestorPlace since 2019.
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The post 3 Strong Buy Stocks for a Year-End Pickup appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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However, in December, Salesforce and Apple (NASDAQ:AAPL) announced an expansion of their partnership. VALE stock is down 12% in 2023 due, in part, to two consecutive quarters of misses on the top and bottom lines. More From InvestorPlace The #1 AI Investment Might Be This Company You’ve Never Heard Of Musk’s “Project Omega” May Be Set to Mint New Millionaires.
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However, in December, Salesforce and Apple (NASDAQ:AAPL) announced an expansion of their partnership. Zscaler (ZS) Source: Sundry Photography / Shutterstock.com Zscaler (NASDAQ:ZS) is a leader in a specific kind of cybersecurity built on zero trust architecture. Salesforce (CRM) Source: Sundry Photography / Shutterstock.com Salesforce (NYSE:CRM) is one of 2023’s best-performing stocks.
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However, in December, Salesforce and Apple (NASDAQ:AAPL) announced an expansion of their partnership. Therefore, when analysts give a stock a “Strong Buy” rating, investors should pay attention. Out of 40 analysts that have given ZS stock a rating in the last three months, 29 give the stock a “Strong Buy” rating.
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However, in December, Salesforce and Apple (NASDAQ:AAPL) announced an expansion of their partnership. Therefore, when analysts give a stock a “Strong Buy” rating, investors should pay attention. Here are three of those stocks for you to consider.
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