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14000.0
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2023-09-05 00:00:00 UTC
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US STOCKS-Wall St falls as higher yields, China data weigh
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-falls-as-higher-yields-china-data-weigh
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nan
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By Shristi Achar A and Amruta Khandekar
Sept 5 (Reuters) - Wall Street's main indexes fell on Tuesday as higher Treasury yields weighed on some major growth stocks, while downbeat data on services activity in China stoked worries over demand in the world's second largest economy.
The yield on the 10-year Treasury notes US10YT=RR climbed to 4.23%, while two-year yield rose to 4.928% in the run-up to more economic data this week.
Major technology-linked stocks such as Apple AAPL.O, Amazon AMZN.O and Alphabet GOOGL.O lost between 0.4% and 1.2%.
"Investors are grappling with what we consider to be a still relatively weak economic and profit environment for the average corporation," said Jason Pride, chief of investment strategy and research at Glenmede.
"The recession is definitely delayed within the United States ... we are seeing fairly weak economic environments in both China and Europe."
China's services activity expanded at the slowest pace in eight months in August, a private-sector survey showed, as weak demand continued to dog the world's second-largest economy and stimulus failed to meaningfully revive consumption.
U.S.-listed shares of Chinese companies including PDD Holdings PDD.O, JD.com JD.O, Baidu BIDU.O and Alibaba BABA.N fell between 0.5% and 2.9%.
The energy sector .SPNY was a bright spot, up 0.9% tracking higher oil prices after Saudi Arabia and Russia announced a fresh extension to their voluntary supply cuts. O/R
The S&P 1500 airlines index .SPCOMAIR lost 2.5%.
U.S. economic data since the Fed's July meeting has added to the impression the economy is cooling without cracking, likely bolstering the case against further interest rate increases.
All three main U.S. stock indexes logged gains in the previous week after data pointed to a softening labor market.
As traders return after the Labor Day holiday, focus will now shift to the consumer price index data due next week and the Fed's policy decision due on Sept. 20.
Traders' bets that the Fed will leave rates unchanged in the next policy meeting stood at 93%, while pricing in a 58.2% chance of a pause in November, up from 52% a week earlier, according to the CME FedWatch tool.
Meanwhile, Goldman Sachs GS.Nlowered the chances of a U.S recession in the next 12 months to 15% from 20% amid continued easing inflation and labor market data.
At 9:50 a.m. ET, the Dow Jones Industrial Average .DJI was down 78.72 points, or 0.23%, at 34,758.99, the S&P 500 .SPX was down 14.87 points, or 0.33%, at 4,500.90, and the Nasdaq Composite .IXIC was down 49.11 points, or 0.35%, at 13,982.71.
Shares of Airbnb ABNB.O and Blackstone BX.N added 7.1% and 3.3%, respectively, in premarket trading as the companies were set to join the S&P 500 index.
Declining issues outnumbered advancers for a 3.13-to-1 ratio on the NYSE and a 1.97-to-1 ratio on the Nasdaq.
The S&P index recorded eight new 52-week highs and 13 new lows, while the Nasdaq recorded 27 new highs and 63 new lows.
(Reporting by Shristi Achar A and Amruta Khandekar in Bengaluru; Editing by Arun Koyyur and Shounak Dasgupta)
((Shristi.AcharA@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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Major technology-linked stocks such as Apple AAPL.O, Amazon AMZN.O and Alphabet GOOGL.O lost between 0.4% and 1.2%. By Shristi Achar A and Amruta Khandekar Sept 5 (Reuters) - Wall Street's main indexes fell on Tuesday as higher Treasury yields weighed on some major growth stocks, while downbeat data on services activity in China stoked worries over demand in the world's second largest economy. China's services activity expanded at the slowest pace in eight months in August, a private-sector survey showed, as weak demand continued to dog the world's second-largest economy and stimulus failed to meaningfully revive consumption.
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Major technology-linked stocks such as Apple AAPL.O, Amazon AMZN.O and Alphabet GOOGL.O lost between 0.4% and 1.2%. By Shristi Achar A and Amruta Khandekar Sept 5 (Reuters) - Wall Street's main indexes fell on Tuesday as higher Treasury yields weighed on some major growth stocks, while downbeat data on services activity in China stoked worries over demand in the world's second largest economy. As traders return after the Labor Day holiday, focus will now shift to the consumer price index data due next week and the Fed's policy decision due on Sept. 20.
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Major technology-linked stocks such as Apple AAPL.O, Amazon AMZN.O and Alphabet GOOGL.O lost between 0.4% and 1.2%. By Shristi Achar A and Amruta Khandekar Sept 5 (Reuters) - Wall Street's main indexes fell on Tuesday as higher Treasury yields weighed on some major growth stocks, while downbeat data on services activity in China stoked worries over demand in the world's second largest economy. All three main U.S. stock indexes logged gains in the previous week after data pointed to a softening labor market.
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Major technology-linked stocks such as Apple AAPL.O, Amazon AMZN.O and Alphabet GOOGL.O lost between 0.4% and 1.2%. By Shristi Achar A and Amruta Khandekar Sept 5 (Reuters) - Wall Street's main indexes fell on Tuesday as higher Treasury yields weighed on some major growth stocks, while downbeat data on services activity in China stoked worries over demand in the world's second largest economy. All three main U.S. stock indexes logged gains in the previous week after data pointed to a softening labor market.
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14001.0
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2023-09-05 00:00:00 UTC
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3 Top E-Commerce Stocks to Buy in September
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AAPL
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https://www.nasdaq.com/articles/3-top-e-commerce-stocks-to-buy-in-september-0
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nan
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nan
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The e-commerce market hasn't been the most reliable place to invest in recent years. The pandemic sent stocks skyrocketing as homebound consumers took to buying essentials online. Then, an economic downturn in 2022 stole what many companies had gained, as reductions in consumer spending caused a sell-off.
However, easing inflation has boosted the industry again and has many retail companies back on a growth path. Recent challenges have proved the strength and resilience of many businesses, making them attractive long-term investments. With the market recovering, now is an excellent time to add an e-commerce company to your portfolio and profit from its projected growth.
In fact, the e-commerce market is expected to hit $3.6 trillion this year and continue expanding to achieve a value of $5.6 trillion by 2027.So, here are three top e-commerce stocks to buy in September.
1. Amazon
Amazon (NASDAQ: AMZN) has grown into a retail behemoth since its founding in 1994. The company holds leading market shares in numerous countries around the globe, with a 38% share of e-commerce in the U.S. Its dominance is most evident by the fact Walmart is responsible for the second-largest market share at only 6%.
The company's command of the market came at a price last year. It reported operating losses of $10.6 billion from its e-commerce segments in fiscal 2022 as it battled macroeconomic headwinds. However, Amazon's retail business has enjoyed a correction in 2023. The company's North American segment returned to profitability in the first quarter, then hit over $3 billion in operating income in the second quarter after reporting losses of $627 million in the year-ago quarter.
The solid recovery has come thanks to decisive restructuring moves such as closing dozens of warehouses, shuttering unprofitable services like Amazon Care, and thousands of layoffs. The company's performance this year illustrates the resilience of its business and its ability to weather any storm, making Amazon's stock a screaming buy this month.
2. Apple
Apple (NASDAQ: AAPL) might not be the first company to come to mind when discussing e-commerce. But its 4% market share in the sector makes it the third-largest e-commerce company in the U.S. It has a vastly smaller catalog of products than companies like Amazon and Walmart, but its position in online retail illustrates how potent its offerings have become.
The iPhone company has leading market shares in smartphones, tablets, smartwatches, and headphones. Its success across these sectors has seen its annual revenue climb 48% over the last five years, with operating income rising 68%.
And Apple is gradually expanding its product lineup. The company unveiled its first virtual/augmented reality (VR/AR) headset in June. If the company's past performance when entering new markets is anything to go by, an investment in Apple could be an investment in the future leader of this $31 billion market.
It has stumbled this year as economic challenges have caught up with its product revenue. As a result, Apple stock is down 4% since the start of August. However, the company's long-term growth history, alongside expansions into markets like VR/AR and artificial intelligence (AI), make it worth buying the dip in Apple stock this September.
3. PayPal
As with many e-commerce companies, PayPal Holdings (NASDAQ: PYPL) suffered significant declines last year. Its stock plunged 62% throughout 2022 as online retail purchases tanked. But the company remains one of the biggest names in online payment processing, holding a 40% market share as of July. As a result, it could see a massive benefit from easing inflation and long-term e-commerce growth.
According to Statista, online retail sales made up about 19% of all global purchases in 2022. That figure has increased from about 7% in 2015. In the same period, PayPal's annual revenue has risen 242%, with operating income up 218%.
Moreover, PayPal has expanded its in-store services, with its technology now in thousands of physical point-of-sale locations across 20 different merchants. Improvements in its business have paid off, with revenue rising 7% in the second quarter and beating analysts' expectations by $30 million.
Meanwhile, PayPal's price-to-earnings ratio of 18 indicates it is one of the best-value stocks available right now. Wall Street is underestimating the payment company, making September the perfect time to invest.
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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 Amazon.com, Apple, PayPal, and Walmart. The Motley Fool recommends the following options: 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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Apple Apple (NASDAQ: AAPL) might not be the first company to come to mind when discussing e-commerce. The solid recovery has come thanks to decisive restructuring moves such as closing dozens of warehouses, shuttering unprofitable services like Amazon Care, and thousands of layoffs. The company's performance this year illustrates the resilience of its business and its ability to weather any storm, making Amazon's stock a screaming buy this month.
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Apple Apple (NASDAQ: AAPL) might not be the first company to come to mind when discussing e-commerce. In fact, the e-commerce market is expected to hit $3.6 trillion this year and continue expanding to achieve a value of $5.6 trillion by 2027.So, here are three top e-commerce stocks to buy in September. The company holds leading market shares in numerous countries around the globe, with a 38% share of e-commerce in the U.S. Its dominance is most evident by the fact Walmart is responsible for the second-largest market share at only 6%.
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Apple Apple (NASDAQ: AAPL) might not be the first company to come to mind when discussing e-commerce. In fact, the e-commerce market is expected to hit $3.6 trillion this year and continue expanding to achieve a value of $5.6 trillion by 2027.So, here are three top e-commerce stocks to buy in September. The company holds leading market shares in numerous countries around the globe, with a 38% share of e-commerce in the U.S. Its dominance is most evident by the fact Walmart is responsible for the second-largest market share at only 6%.
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Apple Apple (NASDAQ: AAPL) might not be the first company to come to mind when discussing e-commerce. It has a vastly smaller catalog of products than companies like Amazon and Walmart, but its position in online retail illustrates how potent its offerings have become. That's right -- they think these 10 stocks are even better buys.
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14002.0
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2023-09-04 00:00:00 UTC
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Warren Buffett’s Biggest Bets: The 7 Stocks Dominating His Portfolio
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AAPL
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https://www.nasdaq.com/articles/warren-buffetts-biggest-bets%3A-the-7-stocks-dominating-his-portfolio
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Since taking over the reins of Berkshire Hathaway (NYSE:BRK-A, NYSE:BRK-B) as CEO in 1965, Warren Buffett has overseen compounded gains of 20% a year. That’s more than double the returns of the S&P 500.
Not every year was a winner. At numerous points over the past 58 years, Buffett lost to the popular benchmark index. Sometimes by a wide margin. But Buffett’s strategy of buying excellent companies at fair prices and then holding them long-term continues to pay off.
We’re talking about an aggregate gain of 3.7 million percent! For comparison, the S&P 500 delivered 24,708%, including dividends. Warren Buffett’s biggest stock bets in Berkshire Hathaway today are worth noting.
The following seven companies hold the largest percentage in his portfolio.
Apple (AAPL)
Source: Moab Republic / Shutterstock
It’s been well documented that Apple (Nasdaq: AAPL) is the Oracle of Omaha’s favorite stock. He owns over 915 million shares of Apple stock worth $161.5 billion. It makes up nearly half of Berkshire Hathaway’s total value (46.3%). It’s also five times greater than his second-biggest bet.
Buffett began buying Apple stock in 2016 and regularly adds to it. It was arguably more notable that he didn’t buy any shares in the second quarter after adding over 20 million shares in the first.
The reason Buffett loves Apple is because it meets his investment criteria. It has an industry-leading market share, possesses a globally recognized brand, produces strong capital returns, and offers a fair value for its money.
Yet Apple’s future is with its services business. Product sales fell 4.5% last quarter, but services rose 5.6%. The App Store, Apple Music, Apple Pay, and iCloud had $21 billion in sales but margins of 71%. The segment now accounts for 22% of total revenue.
With Apple stock down 11% from its highs, it wouldn’t be surprising to see Buffett buying the stock again.
Bank of America (BAC)
Source: Michael Vi / Shutterstock.com
Bank of America (NYSE:BAC) is Buffett’s second biggest holding. It accounts for 8.5% of Berkshire’s total value. His one billion-plus shares are worth $29.5 billion at today’s prices.
Although the Oracle sold off several bank holdings earlier this year, he held onto Bank of America. No doubt because, like Apple, it is one of the largest banks in the country and is financially stable.
The banking crisis earlier this year saw Silicon Valley Bank, Signature Bank, and several others fold. Bank of America’s stock was knocked down due to the crisis of confidence in the system.
Yet many depositors flee their smaller regional and local banks and flock towards their larger brethren. With an unstated government policy that doesn’t allow the biggest to fail, even if Bank of America was in trouble, it most likely wouldn’t be allowed to go under. But it’s not suffering any financial woes, so Buffett held his stake in the bank.
Coca-Cola (KO)
Source: Fotazdymak / Shutterstock.com
It’s no secret Buffett has a love affair with Coca-Cola (NYSE:KO). Not just the stock, but the soda itself. He says he drank Pepsi for 50 years. Then, in the mid-1980s, a Coke executive sent him a can of Cherry Coke to try, and now he drinks five cans of it a day.
Coca-Cola even splashed his likeness on the can of Cherry Coke when it launched the flavor in China in 2017.
Buffett returned the favor by amassing 400 million shares worth $24 billion. That’s enough for a 6.9% share of Berkshire’s portfolio. There is hardly a brand more recognizable worldwide than Coke. Its why BrandFinance says Coca-Cola is “the world’s most valuable non-alcoholic drink” brand worth $33.5 billion. That’s nearly twice PepsiCo‘s (NASDAQ:PEP) value of $18.3 billion.
American Express (AXP)
Source: First Class Photography / Shutterstock.com
Buffett has a long-running love affair with American Express (NYSE:AXP). He acquired his first credit card company shares in 1991 and continued buying more throughout the decade. However, his last purchase was in the late 1990’s.
Despite not buying more, his ownership stake in American Express grew to over 20% because of stock buybacks. Today, it’s valued at $23.9 billion, or 6.9% of Berkshire’s total.
As Warren Buffett told Bloomberg last year, “You can’t create another American Express.” It possesses a status unavailable to any other credit card on the market. The card issuer also targets higher-income individuals who are typically impacted by economic downturns less than others. And though corrections and recessions could hurt AmEx in the short term, such conditions tend not to last very long. Where recessions are measured in months, bull markets are measured in years.
That makes the economics of American Express’ business one of long-term expansion. It also means American Express will likely remain a fixture in Berkshire Hathaway for decades.
Chevron (CVX)
Source: Jeff Whyte / Shutterstock.com
Even though Buffett sold some shares of Chevron (NYSE:CVX) earlier this year, the integrated oil and gas giant remains a prominent fixture in the portfolio. It represents 5.6% of the total, or $19.4 billion.
Warren Buffett took advantage of oil’s low prices in late 2020 to buy this energy giant. Clearly, “peak oil” wasn’t happening, and global demand would perk up again. Oil stocks were among the best-performing stocks in 2021 as demand and prices soared.
Warren Buffett began selling near oil’s peak, and he’s trimmed his holdings in Chevron since. He still owns enough of this behemoth to make it Berkshire Hathaway’s fifth-largest holding. He undoubtedly continues to hold significant sums because he doesn’t see energy prices falling. Instead, the war in Eastern Europe and the destruction of the Nordstream 2 gas pipeline mean the continent faces an extended period of elevated energy costs.
Occidental Petroleum (OXY)
Source: T. Schneider / Shutterstock.com
Just as Buffett was selling Chevron, he was buying Occidental Petroleum (NYSE:OXY). After buying almost $8 billion worth of shares last year, he continued purchasing shares almost every quarter thereafter. He now owns 25% of the company and has permission from the Securities & Exchange Commission to buy as much as 50%.
The buying spree means Occidental Petroleum is now worth $13.7 billion. That equates to 3.9% of Berkshire’s total.
Warren Buffett believes the huge U.S. oil-producing Permian Basin region is the real deal for production. He said his acquisition of Occidental stock was “a bet on the fact that the Permian Basin is what it is cracked up to be.”
Yet a constrained global oil supply also provides significant upside potential. Russia’s invasion of Ukraine has created substantial energy shortages. An increase in supply isn’t on the horizon, meaning pricing will remain elevated. That should benefit Occidental Petroleum’s bottom line.
Kraft Heinz (KHC)
Packaged foods leader Kraft Heinz (NASDAQ:KHC) is the seventh biggest holding in Warren Buffett’s Berkshire, accounting for 3.1% of the total value.
The stock represents Buffett’s penchant for buying consumer-facing companies. It’s a theme he returns to again and again when buying businesses. But he hasn’t always loved the business and in the past, he’s called his investment a mistake. “I was wrong in a couple of ways about Kraft Heinz. We overpaid for Kraft,” he told CNBC in 2019.
While he believes the company is “still a wonderful business,” he admits he paid about $100 billion for tangible assets, while it currently uses around $7 billion. The packaged goods company also sits on substantial debt of $19.4 billion. It has less than $1 billion in cash, and the constrained balance sheet limits how much growth Kraft Heinz can manufacture.
But Buffett hangs onto the shares, underscoring his mantra of “the best time to sell is never.” Berkshire Hathaway owns 325 million shares of Kraft Heinz worth $10.9 billion.
On the date of publication, Rich Duprey held a LONG position in CVX stock. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Rich Duprey has written about stocks and investing for the past 20 years. His articles have appeared on Nasdaq.com, The Motley Fool, and Yahoo! Finance, and he has been referenced by U.S. and international publications, including MarketWatch, Financial Times, Forbes, Fast Company, USA Today, Milwaukee Journal Sentinel, Cheddar News, The Boston Globe, L’Express, and numerous other news outlets.
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The post Warren Buffett’s Biggest Bets: The 7 Stocks Dominating His Portfolio 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: Moab Republic / Shutterstock It’s been well documented that Apple (Nasdaq: AAPL) is the Oracle of Omaha’s favorite stock. It has an industry-leading market share, possesses a globally recognized brand, produces strong capital returns, and offers a fair value for its money. He said his acquisition of Occidental stock was “a bet on the fact that the Permian Basin is what it is cracked up to be.” Yet a constrained global oil supply also provides significant upside potential.
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Apple (AAPL) Source: Moab Republic / Shutterstock It’s been well documented that Apple (Nasdaq: AAPL) is the Oracle of Omaha’s favorite stock. Chevron (CVX) Source: Jeff Whyte / Shutterstock.com Even though Buffett sold some shares of Chevron (NYSE:CVX) earlier this year, the integrated oil and gas giant remains a prominent fixture in the portfolio. Kraft Heinz (KHC) Packaged foods leader Kraft Heinz (NASDAQ:KHC) is the seventh biggest holding in Warren Buffett’s Berkshire, accounting for 3.1% of the total value.
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Apple (AAPL) Source: Moab Republic / Shutterstock It’s been well documented that Apple (Nasdaq: AAPL) is the Oracle of Omaha’s favorite stock. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Since taking over the reins of Berkshire Hathaway (NYSE:BRK-A, NYSE:BRK-B) as CEO in 1965, Warren Buffett has overseen compounded gains of 20% a year. Kraft Heinz (KHC) Packaged foods leader Kraft Heinz (NASDAQ:KHC) is the seventh biggest holding in Warren Buffett’s Berkshire, accounting for 3.1% of the total value.
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Apple (AAPL) Source: Moab Republic / Shutterstock It’s been well documented that Apple (Nasdaq: AAPL) is the Oracle of Omaha’s favorite stock. Warren Buffett’s biggest stock bets in Berkshire Hathaway today are worth noting. He owns over 915 million shares of Apple stock worth $161.5 billion.
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14003.0
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2023-09-04 00:00:00 UTC
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Apple’s (NASDAQ:AAPL) Upcoming Launch Event: The Ultimate Litmus Test
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AAPL
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https://www.nasdaq.com/articles/apples-nasdaq%3Aaapl-upcoming-launch-event%3A-the-ultimate-litmus-test
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nan
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nan
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On September 12, the world’s attention will again focus on consumer technology stalwart Apple (NASDAQ:AAPL) as it unveils its newest products. Typically, such events offer a showcase to demonstrate Apple’s supremacy in the smart products realm. However, this time around, the occasion may represent a broader economic litmus test. I am neutral on AAPL stock.
AAPL Stock Needs a Big Win
Rumored to be on tap for the upcoming showcase is the latest iteration of Apple’s flagship product iPhone. As TipRanks reporter Marty Shtrubel noted, observers expect the iPhone 15 to be unveiled during the annual event. While analysts usually put Apple under pressure to deliver, the stakes are much higher this time. With the global consumer economy struggling, the tech giant really needs to fire on all cylinders.
To be sure, it’s risky to doubt Apple. As Evercore analyst Amit Daryanani stated, “The durability of iPhone growth in recent years has surprised investors as the consensus view a few years ago was that the iPhone had peaked.” While the smartphone industry appears to have peaked, the iPhone continues to show “an impressive ability to gain share both domestically and abroad,” added Daryanani.
Unfortunately, Apple may become a victim of its own success, thus hurting AAPL stock. With the company attaining about 75% of China’s smartphone market share, for example, growth in that nation will be difficult to achieve. Therefore, the iPhone 15 must be exceptionally compelling to move the needle.
That’s especially the case in the U.S. Following the COVID-19 crisis, the economy rebounded rather impressively. However, with headwinds like stubbornly elevated inflation taking their toll, consumers may decide to skip out on nice-to-have, unnecessary tech upgrades.
Of course, AAPL stock could blossom if the response to the iPhone 15 is robust. However, with consumer debt skyrocketing, households may, as a matter of prudence, elect to abstain from excessive purchases.
The Smart Money Points to Risk Mitigation
Again, history has shown that betting against AAPL stock tends to be a fool’s errand. However, the smart money genuinely appears to be concerned about Apple stumbling over the next several months. With options transactions implying risk mitigation, retail investors would do well to approach AAPL cautiously.
First, TipRanks’ options chain for contracts expiring on June 21, 2024, provides a big warning to market participants. Specifically, the open interest for out-of-money (OTM) call options comes out to 62,435 contracts. On the other side of the equation, open interest for OTM puts stands at 92,151 contracts. Cumulatively, more traders are actively betting that AAPL stock will slip rather than rise.
Second, the “volatility smile” of AAPL stock indicates that traders see greater risk to the downside than they do the probability of movements to the upside. A volatility smile is a graph that plots the strike price and implied volatility (IV) of a particular asset’s options contracts. Further, this indicator takes into account expiration dates.
Conspicuously, the IV of AAPL options with a strike price of $265 sits at 0.38. However, the IV of AAPL options with a strike price of $120 stands at 0.61. In other words, traders expect Apple to hit $120 more than they expect it to reach $265. Considering that AAPL stock presently carries a price of $189.46, the smart money is baking in the possibility of disappointment.
Apple Continues to Fight Hard
In fairness, investors shouldn’t walk away from this discussion believing that AAPL stock is doomed. On the contrary, Apple recently delivered solid results for its third quarter of Fiscal 2023. While sales of $81.8 billion were in line with analysts' expectations, earnings per share clocked in at $1.26, beating the consensus EPS target of $1.20.
As well, Apple CEO Tim Cook stated that the company achieved a milestone by ending Q3 with over a billion subscriptions. Further, the Wearable, Home, and Accessories unit posted revenue of $8.28 billion, a slight but important increase from $8.08 billion in the year-ago quarter.
Is AAPL Stock a Buy, According to Analysts?
Turning to Wall Street, AAPL stock has a Moderate Buy consensus rating based on 22 Buys, eight Holds, and no Sell ratings. The average AAPL stock price target is $208.13, implying 9.85% upside potential.
The Takeaway: AAPL Stock Faces a Massive Challenge
While Apple’s product launches always generate buzz, this year’s edition comes with great consequences. Against a rough backdrop for the consumer economy, the company must prove sustained relevance with a compelling showpiece. Otherwise, it’s possible that AAPL stock may suffer the consequences.
Disclosure
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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On September 12, the world’s attention will again focus on consumer technology stalwart Apple (NASDAQ:AAPL) as it unveils its newest products. AAPL Stock Needs a Big Win Rumored to be on tap for the upcoming showcase is the latest iteration of Apple’s flagship product iPhone. The Takeaway: AAPL Stock Faces a Massive Challenge While Apple’s product launches always generate buzz, this year’s edition comes with great consequences.
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The average AAPL stock price target is $208.13, implying 9.85% upside potential. On September 12, the world’s attention will again focus on consumer technology stalwart Apple (NASDAQ:AAPL) as it unveils its newest products. I am neutral on AAPL stock.
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AAPL Stock Needs a Big Win Rumored to be on tap for the upcoming showcase is the latest iteration of Apple’s flagship product iPhone. The Takeaway: AAPL Stock Faces a Massive Challenge While Apple’s product launches always generate buzz, this year’s edition comes with great consequences. On September 12, the world’s attention will again focus on consumer technology stalwart Apple (NASDAQ:AAPL) as it unveils its newest products.
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Is AAPL Stock a Buy, According to Analysts? The average AAPL stock price target is $208.13, implying 9.85% upside potential. On September 12, the world’s attention will again focus on consumer technology stalwart Apple (NASDAQ:AAPL) as it unveils its newest products.
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14004.0
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2023-09-04 00:00:00 UTC
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Apple and Microsoft say some services not popular to be "gatekeepers" under EU's new Digital Market Act- FT
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AAPL
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https://www.nasdaq.com/articles/apple-and-microsoft-say-some-services-not-popular-to-be-gatekeepers-under-eus-new-digital
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nan
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nan
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Sept 4 (Reuters) - Apple Inc AAPL.O and Microsoft MSFT.O have argued that some of their services were not popular enough to be designated as "gatekeepers" under the EU's new Digital Markets Act, designed to curb the powers of Big Tech, the Financial Times reported on Monday.
Apple is battling over its iMessage chat app, while Microsoft is battling over its search engine Bing, ahead of Wednesday's publication of the first list of services to be regulated under the act, the report said.
(Reporting by Gokul Pisharody in Bengaluru; Editing by Josie Kao)
((Gokul.Pisharody@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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Sept 4 (Reuters) - Apple Inc AAPL.O and Microsoft MSFT.O have argued that some of their services were not popular enough to be designated as "gatekeepers" under the EU's new Digital Markets Act, designed to curb the powers of Big Tech, the Financial Times reported on Monday. Apple is battling over its iMessage chat app, while Microsoft is battling over its search engine Bing, ahead of Wednesday's publication of the first list of services to be regulated under the act, the report said. (Reporting by Gokul Pisharody in Bengaluru; Editing by Josie Kao) ((Gokul.Pisharody@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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Sept 4 (Reuters) - Apple Inc AAPL.O and Microsoft MSFT.O have argued that some of their services were not popular enough to be designated as "gatekeepers" under the EU's new Digital Markets Act, designed to curb the powers of Big Tech, the Financial Times reported on Monday. Apple is battling over its iMessage chat app, while Microsoft is battling over its search engine Bing, ahead of Wednesday's publication of the first list of services to be regulated under the act, the report said. (Reporting by Gokul Pisharody in Bengaluru; Editing by Josie Kao) ((Gokul.Pisharody@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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Sept 4 (Reuters) - Apple Inc AAPL.O and Microsoft MSFT.O have argued that some of their services were not popular enough to be designated as "gatekeepers" under the EU's new Digital Markets Act, designed to curb the powers of Big Tech, the Financial Times reported on Monday. Apple is battling over its iMessage chat app, while Microsoft is battling over its search engine Bing, ahead of Wednesday's publication of the first list of services to be regulated under the act, the report said. (Reporting by Gokul Pisharody in Bengaluru; Editing by Josie Kao) ((Gokul.Pisharody@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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Sept 4 (Reuters) - Apple Inc AAPL.O and Microsoft MSFT.O have argued that some of their services were not popular enough to be designated as "gatekeepers" under the EU's new Digital Markets Act, designed to curb the powers of Big Tech, the Financial Times reported on Monday. Apple is battling over its iMessage chat app, while Microsoft is battling over its search engine Bing, ahead of Wednesday's publication of the first list of services to be regulated under the act, the report said. (Reporting by Gokul Pisharody in Bengaluru; Editing by Josie Kao) ((Gokul.Pisharody@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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2023-09-04 00:00:00 UTC
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Buy, Sell or Hold? My Calls on the ‘Magnificent 7’ Stocks
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https://www.nasdaq.com/articles/buy-sell-or-hold-my-calls-on-the-magnificent-7-stocks
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Even as the stock market bounced back this year, much of the vitality came from just a handful of tech giants. Once known as FAANG, realigned markets now prefer these seven stocks – collectively called “The Magnificent 7.”
These stocks jumped more than 60% this year as a group, as the rest of the S&P 500 stocks climbed a comparatively paltry 7%. Bringing the index’s average up to a decent 18% return since January, it’s clear these winners are driving today’s markets.
But economic warnings signs are flashing, making it critical for investors to examine which of the Magnificent 7 are worth holding today.
Consumer credit card debt hit an all-time high in August, and personal savings rates fell to just 4% (30% lower than their mid-pandemic high). Inflation isn’t yet under control. Plus the Fed will likely keep rate hikes coming, which disproportionately affects these tech megaliths.
Some of the Magnificent 7 are worth buying or holding, to be sure, but investors should sell some as fast as they can. Here’s where I stand on these stocks today.
Apple (AAPL): SELL
Source: WeDesing / Shutterstock.com
Apple (NASDAQ:AAPL) may be a tech titan with a remarkable 50% YTD surge, but warning signs are flashing for his member of the Magnificent 7. Apple’s fallen 5% since it topped a $3 trillion market cap, with more downside on the way.
Apple’s constrained supply chain disruptions are concerning for a company as reliant on overseas manufacturing. After the announcement, Apple trimmed production forecasts for its forthcoming mixed-reality Vision Pro headset, signaling potential challenges ahead.
While the initial product push is aimed at developers and constitutes a small portion of Apple’s revenues, it underscores the firm’s vulnerability to supply chain hiccups.
At home, Apple’s nascent consumer banking endeavors are on shaky ground. Partner Goldman Sachs (NYSE:GS) is reportedly seeking an exit from their partnership.
That’s noteworthy because scrambling to diversify beyond core products risks dividing attention, which could result in many poorly-planned products being rushed to market.
But resumed student loan payments could dent Apple’s sales the most. Around 34% of adults aged 18-29 carry student debt, a demographic that heavily overlaps Apple’s customer base. When combined with dwindling savings, this could cause reduced spending on Apple products.
Apple certainly isn’t going anywhere, but this Magnificent 7 stock is facing too many problems at too hefty a valuation today.
Microsoft (MSFT): HOLD
Source: NYCStock / Shutterstock.com
Microsoft (NASDAQ:MSFT) is going all-in on AI, which bodes well for the long term but will hamper short-term prospects as the company dumps cash into new projects.
This member of the Magnificent 7 has already committed $10 billion to OpenAI and a $1.3 billion joint venture with AI startup Inflection. Internally, Microsoft is significantly increasing capital expenditure by directing 40% more funds into expanding internal AI capabilities, which now stand at $10.7 billion.
These investments primarily support data centers and hardware capacity to accommodate growing AI projects.
Although these expenses may temporarily constrain growth, Microsoft holds a formidable position in the market.
Its products, including Microsoft 365 and cloud services, are integral to corporate operations, fostering brand loyalty through high switching costs.
However, Microsoft faces mounting competition from free alternatives like Google, especially as economic conditions prompt cost-cutting among household and corporate users.
Microsoft’s strategic focus on AI is poised to revolutionize its Office products, tailoring them to specific sectors and tasks. For instance, Excel’s integration with Bloomberg Terminal solidifies its indispensability in financial markets. Microsoft aims to empower users with even more customized and insightful tools as AI technologies mature.
In the short term, these investments may require Microsoft to optimize its operations further in case of economic downturns. The rise of free and freemium office productivity tools poses another challenge. Microsoft’s future appears promising, but it must balance AI-driven investments and cost-conscious consumers to maintain its financial health.
Alphabet (GOOG): HOLD
Source: rvlsoft / Shutterstock.com
Despite limited growth prospects, Alphabet’s (NASDAQ:GOOG) diversified services continue generating revenue for this Magnificant 7 giant. In the second quarter, total revenue reached $74.6 billion, marking a 7% increase from the previous year.
Advertising revenue bounced back, rising by more than 3%, following two consecutive quarters of decline.
Management attributed growth to improvements in both search (up 5.6%), driven by retail strength, and YouTube (up 4.4%), partially offset by the ongoing weakness in advertising technology revenue (down 5%).
Cloud revenue experienced a robust 28% increase, while other services, including hardware and Google Play, grew by 10%.
The accelerated growth in Google’s primary search business underscores the resilience of its network effect. That’s notable in the face of challenges posed by Microsoft and OpenAI.
Furthermore, YouTube’s advertising revenue rebounded. Management attributed the gain to a more balanced mix of broad-based and direct response ad demand, improvements in YouTube Shorts monetization, and increased demand for ads on connected TVs.
Ultimately, Alphabet’s offerings remain dominant even as entrants begin edging the company out in the AI market. Still, Alphabet’s position is unquestionably strong, making this Magnificent 7 stock worth holding.
Amazon (AMZN): BUY
Source: Sundry Photography / Shutterstock.com
Amazon (NASDAQ:AMZN) remains a no-brainer when buying Magnificent 7 stocks. Recent retail sales figures show modest growth, a 9% increase in revenue.
Although lower than the previous year, even a modest jump demonstrates the company’s resilience in a tighter economic environment.
Amazon’s commitment to cloud services and artificial intelligence positions it as a long-term, stable player in the sector. Cloud revenue surged by 12% in the most recent quarter, offsetting modest retail growth. Amazon’s cloud-based AI endeavors have broad applications that will serve the stock well.
Amazon’s cloud computing will capitalize on consumers’ growing adoption of AI tools, no matter the platform leveraged as more companies rely on the cloud for the massive data storage and computing demanded by AI.
This strategic alignment with the AI revolution diversifies Amazon’s offerings, complementing its continued retail dominance.
And, on the retail front, Amazon is entering new markets despite its dominant position. Amazon recently expanded its horizons by partnering with Shopify (NYSE:SHOP), enabling customers to connect their stores directly to Amazon-distributed product pages. This strategic move opens new markets for Amazon.
At the same time, it benefits Shopify’s prospects as Amazon sellers seek to expand their digital presence through the platform.
NVIDIA (NVDA): SELL
Source: Evolf / Shutterstock.com
NVIDIA (NASDAQ:NVDA) is driving the Magnificent 7 stock gains, fueled largely by the AI fervor. However, signs suggest this tech stock might soon face a reality check.
Notably, the stock is currently trading at an eye-popping 117 price-to-earnings ratio, signifying continued overvaluation. Even a minor misstep could trigger a significant post-earnings drop, regardless of its promising long-term prospects.
It appears that Nvidia’s pricing has reached an upper limit, leaving little room for further growth.
Undoubtedly, Nvidia holds considerable long-term potential, especially given its pivotal role in AI initiatives due to its dominant hardware position.
Given its current valuation, investors may want to consider capitalizing on gains by selling while the opportunity remains favorable.
Tesla (TSLA): BUY
Source: sdx15 / Shutterstock.com
It’s hard to be bearish on Tesla (NASDAQ:TSLA), considering short sellers already lost more than $12 billion betting against Musk.
Tesla’s stock has been continuously progressing, delivering a remarkable 140% return since January. Beyond its dominant market position, investor enthusiasm is soaring due to the imminent launch of the Cybertruck, scheduled for release in a matter of weeks.
The Cybertruck’s distinctive appearance and features have generated substantial online buzz and promotional excitement. Simultaneously, Tesla is gearing up to introduce the updated Model 3, internally known as “Highland,” in China, with production slated to commence in September.
Boasting a commanding 59% share of the electric vehicle market, Tesla unquestionably stands out as the most viable option for EV-focused investors, and the only option of its kind among its Magnificent 7 peers.
Meta (META): SELL
Source: Ascannio / Shutterstock.com
In a frantic attempt to maintain relevance among younger users who gravitate toward X (formerly Twitter), Meta (NASDAQ:META) launched its ambitious Threads venture in July.
A month later, the market’s response seems marked by a collective indifference. While Threads had neared the 50 million user mark at the outset of July, a mere 10 million users remain engaged a month later. These remaining users spend, on average, a mere three minutes on the platform.
The exact cost of this venture for Zuckerberg and the Meta team remains undisclosed. Still, it’s abundantly clear that their investment hasn’t yielded the expected returns.
This endeavor follows closely on the heels of the ill-fated metaverse venture. Considering this substantial spending alongside diminishing ad sales, declining revenue, and dwindling income, it becomes evident that Meta is no longer the formidable force it once was.
There may still be a window of opportunity for the Meta team to course-correct. Still, with a price-to-earnings ratio of around 35, it’s apparent that Meta is currently overvalued.
Its valuation and share price appear unsustainable in today’s fiercely competitive landscape, compounded by the prevailing economic conditions. If you haven’t already divested from Meta, now is the time.
On the date of publication, Jeremy Flint held no positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Jeremy Flint, an MBA graduate and skilled finance writer, excels in content strategy for wealth managers and investment funds. Passionate about simplifying complex market concepts, he focuses on fixed-income investing, alternative investments, economic analysis, and the oil, gas, and utilities sectors. Jeremy’s work can also be found at www.jeremyflint.work.
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The post Buy, Sell or Hold? My Calls on the ‘Magnificent 7’ Stocks 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): SELL Source: WeDesing / Shutterstock.com Apple (NASDAQ:AAPL) may be a tech titan with a remarkable 50% YTD surge, but warning signs are flashing for his member of the Magnificent 7. While the initial product push is aimed at developers and constitutes a small portion of Apple’s revenues, it underscores the firm’s vulnerability to supply chain hiccups. Management attributed growth to improvements in both search (up 5.6%), driven by retail strength, and YouTube (up 4.4%), partially offset by the ongoing weakness in advertising technology revenue (down 5%).
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Apple (AAPL): SELL Source: WeDesing / Shutterstock.com Apple (NASDAQ:AAPL) may be a tech titan with a remarkable 50% YTD surge, but warning signs are flashing for his member of the Magnificent 7. Alphabet (GOOG): HOLD Source: rvlsoft / Shutterstock.com Despite limited growth prospects, Alphabet’s (NASDAQ:GOOG) diversified services continue generating revenue for this Magnificant 7 giant. Management attributed the gain to a more balanced mix of broad-based and direct response ad demand, improvements in YouTube Shorts monetization, and increased demand for ads on connected TVs.
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Apple (AAPL): SELL Source: WeDesing / Shutterstock.com Apple (NASDAQ:AAPL) may be a tech titan with a remarkable 50% YTD surge, but warning signs are flashing for his member of the Magnificent 7. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Even as the stock market bounced back this year, much of the vitality came from just a handful of tech giants. Once known as FAANG, realigned markets now prefer these seven stocks – collectively called “The Magnificent 7.” These stocks jumped more than 60% this year as a group, as the rest of the S&P 500 stocks climbed a comparatively paltry 7%.
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Apple (AAPL): SELL Source: WeDesing / Shutterstock.com Apple (NASDAQ:AAPL) may be a tech titan with a remarkable 50% YTD surge, but warning signs are flashing for his member of the Magnificent 7. Apple certainly isn’t going anywhere, but this Magnificent 7 stock is facing too many problems at too hefty a valuation today. Still, Alphabet’s position is unquestionably strong, making this Magnificent 7 stock worth holding.
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2023-09-04 00:00:00 UTC
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Is Goldman Sachs ActiveBeta World Low Vol Plus Equity ETF (GLOV) a Strong ETF Right Now?
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https://www.nasdaq.com/articles/is-goldman-sachs-activebeta-world-low-vol-plus-equity-etf-glov-a-strong-etf-right-now-4
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Designed to provide broad exposure to the World ETFs category of the market, the Goldman Sachs ActiveBeta World Low Vol Plus Equity ETF (GLOV) is a smart beta exchange traded fund launched on 03/15/2022.
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.
Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.
There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.
Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.
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
GLOV is managed by Goldman Sachs Funds, and this fund has amassed over $725.20 million, which makes it one of the larger ETFs in the World ETFs. GLOV seeks to match the performance of the GOLDMAN SACHS ACTBT WORLD LW VL PL EQ ID before fees and expenses.
The Goldman Sachs ActiveBeta World Low Vol Plus Equity Index delivers exposure to large and mid-capitalization equity securities of developed market issuers, including the United States.
Cost & Other Expenses
When considering an ETF's total return, expense ratios are an important factor. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal.
Operating expenses on an annual basis are 0.25% for this ETF, which makes it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 2.02%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
When you look at individual holdings, Apple Inc (AAPL) accounts for about 3.30% of the fund's total assets, followed by Microsoft Corp (MSFT) and Oreilly Automotive Inc (ORLY).
Its top 10 holdings account for approximately 3.3% of GLOV's total assets under management.
Performance and Risk
The ETF has gained about 9.25% and was up about 11.22% so far this year and in the past one year (as of 09/04/2023), respectively. GLOV has traded between $34.82 and $42.10 during this last 52-week period.
The ETF has a beta of 0.76 and standard deviation of 15.50% for the trailing three-year period. With about 396 holdings, it effectively diversifies company-specific risk.
Alternatives
Goldman Sachs ActiveBeta World Low Vol Plus Equity ETF is a reasonable option for investors seeking to outperform the World ETFs segment of the market. However, there are other ETFs in the space which investors could consider.
IShares MSCI ACWI ETF (ACWI) tracks MSCI All Country World Index and the Vanguard Total World Stock ETF (VT) tracks FTSE Global All Cap Index. IShares MSCI ACWI ETF has $17.96 billion in assets, Vanguard Total World Stock ETF has $28.86 billion. ACWI has an expense ratio of 0.32% and VT charges 0.07%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the World ETFs.
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.
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Goldman Sachs ActiveBeta World Low Vol Plus Equity ETF (GLOV): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
O'Reilly Automotive, Inc. (ORLY) : Free Stock Analysis Report
iShares MSCI ACWI ETF (ACWI): ETF Research Reports
Vanguard Total World Stock ETF (VT): 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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When you look at individual holdings, Apple Inc (AAPL) accounts for about 3.30% of the fund's total assets, followed by Microsoft Corp (MSFT) and Oreilly Automotive Inc (ORLY). Click to get this free report Goldman Sachs ActiveBeta World Low Vol Plus Equity ETF (GLOV): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report O'Reilly Automotive, Inc. (ORLY) : Free Stock Analysis Report iShares MSCI ACWI ETF (ACWI): ETF Research Reports Vanguard Total World Stock ETF (VT): ETF Research Reports To read this article on Zacks.com click here. There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.
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Click to get this free report Goldman Sachs ActiveBeta World Low Vol Plus Equity ETF (GLOV): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report O'Reilly Automotive, Inc. (ORLY) : Free Stock Analysis Report iShares MSCI ACWI ETF (ACWI): ETF Research Reports Vanguard Total World Stock ETF (VT): ETF Research Reports To read this article on Zacks.com click here. When you look at individual holdings, Apple Inc (AAPL) accounts for about 3.30% of the fund's total assets, followed by Microsoft Corp (MSFT) and Oreilly Automotive Inc (ORLY). Designed to provide broad exposure to the World ETFs category of the market, the Goldman Sachs ActiveBeta World Low Vol Plus Equity ETF (GLOV) is a smart beta exchange traded fund launched on 03/15/2022.
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Click to get this free report Goldman Sachs ActiveBeta World Low Vol Plus Equity ETF (GLOV): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report O'Reilly Automotive, Inc. (ORLY) : Free Stock Analysis Report iShares MSCI ACWI ETF (ACWI): ETF Research Reports Vanguard Total World Stock ETF (VT): ETF Research Reports To read this article on Zacks.com click here. When you look at individual holdings, Apple Inc (AAPL) accounts for about 3.30% of the fund's total assets, followed by Microsoft Corp (MSFT) and Oreilly Automotive Inc (ORLY). Designed to provide broad exposure to the World ETFs category of the market, the Goldman Sachs ActiveBeta World Low Vol Plus Equity ETF (GLOV) is a smart beta exchange traded fund launched on 03/15/2022.
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When you look at individual holdings, Apple Inc (AAPL) accounts for about 3.30% of the fund's total assets, followed by Microsoft Corp (MSFT) and Oreilly Automotive Inc (ORLY). Click to get this free report Goldman Sachs ActiveBeta World Low Vol Plus Equity ETF (GLOV): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report O'Reilly Automotive, Inc. (ORLY) : Free Stock Analysis Report iShares MSCI ACWI ETF (ACWI): ETF Research Reports Vanguard Total World Stock ETF (VT): ETF Research Reports To read this article on Zacks.com click here. Designed to provide broad exposure to the World ETFs category of the market, the Goldman Sachs ActiveBeta World Low Vol Plus Equity ETF (GLOV) is a smart beta exchange traded fund launched on 03/15/2022.
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2023-09-04 00:00:00 UTC
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25% of Warren Buffett's Portfolio Is Invested in These 10 Boring Stocks
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https://www.nasdaq.com/articles/25-of-warren-buffetts-portfolio-is-invested-in-these-10-boring-stocks
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Warren Buffett likes playing bridge -- and the ukelele. His favorite drink? Cherry Coke. Some might argue that the famous investor isn't the most exciting guy around.
The ho-hum drum could be beaten even louder when it comes to many of Buffett's Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) holdings. Twenty-five percent of Buffett's portfolio is invested in just 10 boring stocks.
The boring 10
Here are the 10 stocks that I think many investors would view as at least somewhat boring:
STOCK PERCENT OF PORTFOLIO
American Express (NYSE: AXP) 6.6%
Coca-Cola (NYSE: KO) 6.6%
Kraft Heinz (NASDAQ: KHC) 3%
Moody's (NYSE: MCO) 2.3%
Mitsubishi (OTC: MSBHF) 1.6%
Mitsui (OTC: MITSF) (OTC: MITSF) 1.3%
Itochu (OTC: ITOCY) (OTC: ITOCF) 1.2%
Davita (NYSE: DVA) 1%
HP (NYSE: HPQ) 1%
Kroger (NYSE: KR) 0.6%
Total 25.2%
Data source: Berkshire Hathaway 13F.
Granted, "boring" is a relative term. There are some stocks that make all 10 on the above list seem downright exciting. Let's face it, though: Few investors are going to exhibit as much enthusiasm about these stocks as they would for a hot stock that has doubled or tripled this year.
American Express and Moody's don't capture the attention that up-and-coming fintech stocks do. Coca-Cola, Kraft Heinz, and Kroger all belong to the consumer defensive sector, which isn't exactly the most electrifying part of the market.
Many Americans don't even know who Mitsubishi, Mitsui, and Itochu are. Davita provides kidney dialysis services. Enough said.
Sure, HP is a tech stock. And tech stocks often do stir investors' passions. However, it's been a long time since anyone viewed HP like they do Apple or Nvidia today.
Why Buffett likes them
Buffett obviously likes these 10 boring stocks, though. Otherwise, they wouldn't hold such prominent positions in Berkshire's portfolio. But why does he like them?
Some of these stocks weren't nearly as boring when Buffett first bought them. For example, he's owned Coca-Cola and American Express for decades.
More importantly, Buffett has always preferred to invest in businesses that he understands. There's no question whatsoever that he has a solid understanding of the underlying businesses of every company on our list.
The Oracle of Omaha also likes companies that generate relatively predictable earnings. Most, if not all, of the 10 boring stocks fall into that category.
We can't leave out valuation. Mitsubishi, Mitsui, and Itochu are the only stocks on the list that Buffett has bought this year. It's no coincidence that all three Japanese trading house stocks trade at attractive earnings multiples. If we went back to when Buffett invested in the other seven stocks, I'd bet that we'd find they were attractively valued at the time as well.
Boring can be beautiful
Buffett -- like any other investor -- buys stocks to make money. He doesn't care whether or not a stock is "boring" if it can generate a solid return over the long run. Several of the stocks on our list have done just that.
Take Coca-Cola, for example. Buffett has consistently owned shares in the beverage giant since 1988. The stock has delivered a total return of close to 5,600% during the time it's been in Berkshire Hathaway's portfolio.
Not all of Buffett's boring investments have been so lucrative. As a case in point, he bought shares of HP in early 2022. The stock has been a loser since then.
Still, it won't be surprising if Buffett's boring stocks as a group perform quite well given enough time. As Aesop noted in his famous fable, the tortoises can win races against the hares. Boring can be beautiful.
10 stocks we like better than Coca-Cola
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*Stock Advisor returns as of August 28, 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, HP, Moody's, and Nvidia. The Motley Fool recommends Kraft Heinz and Kroger and 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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Coca-Cola, Kraft Heinz, and Kroger all belong to the consumer defensive sector, which isn't exactly the most electrifying part of the market. Boring can be beautiful Buffett -- like any other investor -- buys stocks to make money. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, HP, Moody's, and Nvidia.
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The ho-hum drum could be beaten even louder when it comes to many of Buffett's Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) holdings. American Express (NYSE: AXP) 6.6% Coca-Cola (NYSE: KO) 6.6% Kraft Heinz (NASDAQ: KHC) 3% Moody's (NYSE: MCO) 2.3% Mitsubishi (OTC: MSBHF) 1.6% Mitsui (OTC: MITSF) (OTC: MITSF) 1.3% Itochu (OTC: ITOCY) (OTC: ITOCF) 1.2% Davita (NYSE: DVA) 1% The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, HP, Moody's, and Nvidia.
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American Express (NYSE: AXP) 6.6% Coca-Cola (NYSE: KO) 6.6% Kraft Heinz (NASDAQ: KHC) 3% Moody's (NYSE: MCO) 2.3% Mitsubishi (OTC: MSBHF) 1.6% Mitsui (OTC: MITSF) (OTC: MITSF) 1.3% Itochu (OTC: ITOCY) (OTC: ITOCF) 1.2% Davita (NYSE: DVA) 1% Why Buffett likes them Buffett obviously likes these 10 boring stocks, though. Some of these stocks weren't nearly as boring when Buffett first bought them.
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The boring 10 Here are the 10 stocks that I think many investors would view as at least somewhat boring: Some of these stocks weren't nearly as boring when Buffett first bought them. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, HP, Moody's, and Nvidia.
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14008.0
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2023-09-04 00:00:00 UTC
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Tencent, others begin enforcing China's new oversight move on apps
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AAPL
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https://www.nasdaq.com/articles/tencent-others-begin-enforcing-chinas-new-oversight-move-on-apps
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nan
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nan
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By Josh Ye
HONG KONG, Sept 4 (Reuters) - Mobile app stores in China run by Tencent Holdings 0700.HK, Xiaomi 1810.HK and others have started to bar app publishers from launching new apps if they do not make all the disclosures required by authorities, documents seen by Reuters showed.
The moves comply with new rules introduced last month as Beijing tightens oversight of mobile apps in the country. The rules are causing consternation in the industry that publishing apps in the world's second largest economy will become very difficult and many apps may need to be taken down.
The new rules, which require mobile app publishers to file business details with the government, gave app stores in China until the end of August to establish their filing systems to oversee new apps.
"The Android app stores have confirmed that new apps require the app filings from Friday onwards, and existing apps must have it from March 31 onwards," Rich Bishop, CEO of app publishing firm AppInChina said.
"It forces all global apps on these app stores to either establish a local entity or work with a local partner."
The new rules show that while authorities appear to have ended a years-long, wide-ranging regulatory crackdown on China's technology sector, it still faces scrutiny as Beijing aims to keep business activities pegged to its socialist ideals.
Last week, Android-based app stores operated by Tencent, Huawei Technologies HWT.UL, Xiaomi, OPPO and Vivo issued notices to app publishers and said they will bar new apps without sufficient paperwork from being featured on their platforms. Some of the notices were seen by Reuters while others featured in blog posts by Xiaomi, OPPO and Vivo.
Apple AAPL.O has not disclosed how its app store in China will comply with Beijing's new rules. As of Monday, it is not yet checking apps' filing status, AppInChina said, citing its own checks.
Apple did not reply to Reuters' request for comment. The Ministry of Industry and Information Technology (MIIT) did not immediately reply to a request for comment.
Tencent, Huawei, Xiaomi, OPPO and Vivo also did not immediately reply to requests for comment.
Tencent's WeChat, China's most popular social media platform, also notified app publishers that the same filing requirement is being applied to the so-called "WeChat Mini Apps", which refer to apps that are published on WeChat directly.
According to Huawei's notice, MIIT has established a dedicated task force to enforce the new policy. It has scheduled talks with industry participants about the new policy.
The notice also said app stores will have to clearly mark each app's filing status on their platforms.
(Reporting by Josh Ye; Editing by Brenda Goh and Muralikumar Anantharaman)
((Josh.Ye@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 has not disclosed how its app store in China will comply with Beijing's new rules. The moves comply with new rules introduced last month as Beijing tightens oversight of mobile apps in the country. The new rules show that while authorities appear to have ended a years-long, wide-ranging regulatory crackdown on China's technology sector, it still faces scrutiny as Beijing aims to keep business activities pegged to its socialist ideals.
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Apple AAPL.O has not disclosed how its app store in China will comply with Beijing's new rules. The new rules, which require mobile app publishers to file business details with the government, gave app stores in China until the end of August to establish their filing systems to oversee new apps. Last week, Android-based app stores operated by Tencent, Huawei Technologies HWT.UL, Xiaomi, OPPO and Vivo issued notices to app publishers and said they will bar new apps without sufficient paperwork from being featured on their platforms.
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Apple AAPL.O has not disclosed how its app store in China will comply with Beijing's new rules. By Josh Ye HONG KONG, Sept 4 (Reuters) - Mobile app stores in China run by Tencent Holdings 0700.HK, Xiaomi 1810.HK and others have started to bar app publishers from launching new apps if they do not make all the disclosures required by authorities, documents seen by Reuters showed. "The Android app stores have confirmed that new apps require the app filings from Friday onwards, and existing apps must have it from March 31 onwards," Rich Bishop, CEO of app publishing firm AppInChina said.
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Apple AAPL.O has not disclosed how its app store in China will comply with Beijing's new rules. The new rules, which require mobile app publishers to file business details with the government, gave app stores in China until the end of August to establish their filing systems to oversee new apps. According to Huawei's notice, MIIT has established a dedicated task force to enforce the new policy.
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14009.0
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2023-09-04 00:00:00 UTC
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You Don't Have to Pick a Winner in Fintech. Here's Why.
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AAPL
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https://www.nasdaq.com/articles/you-dont-have-to-pick-a-winner-in-fintech.-heres-why.-0
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nan
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nan
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Financial services is an ancient industry, and in recent decades, it's often lagged behind others when it comes to improving the user experience. But this has been changing.
One of the most notable trends this century has been the growing popularity of fintech, or financial technology. Using the connective power of the internet, fintech businesses have made traditional financial products simpler and more accessible to customers, winning monumental growth for themselves. This makes it an attractive place to look for investing opportunities.
There are lots of different fintech enterprises out there serving different needs, so investors don't need to pick a single fintech winner. Instead, they can allocate their capital to multiple different businesses in the space. Let's take a closer look.
Image source: Getty Images.
The war on cash
It can be smart for new fintech investors to first look at the payments industry. Visa (NYSE: V) and Mastercard (NYSE: MA) deserve serious consideration as starting points. Combined, these companies processed $5.4 trillion in payments volume just in this year's second quarter. In total, they have 7 billion branded cards in circulation that are accepted at tens of millions of merchant locations worldwide. That scale results in powerful network effects. Besides simply holding dominant competitive positions, their processing networks are deeply entrenched in the world's financial infrastructure, which makes them incredibly profitable. In the last 10 years, the operating margins of Visa and Mastercard have averaged 66% and 55%, respectively. Unsurprisingly, this has led to the generation of tremendous amounts of free cash flow.
There are other payments companies to pay attention to. Having been founded more than two decades ago, PayPal (NASDAQ: PYPL) was a digital payments pioneer, providing consumers with services that make it easy to pay for things online and send money to friends, and letting merchants more seamlessly accept online payments. The business has 431 million active accounts today and processed $1.4 trillion in total payment volume in the last 12 months.
Block (NYSE: SQ) has come a long way from its days selling the small accessory that turned a smartphone into a point-of-sale terminal. The company operates two budding payment ecosystems in Square and Cash App, which combined registered $1.9 billion of gross profit in the most recent quarter. On the merchant side, Square offers a vast array of hardware, software, and financial services products. And Cash App, now with 54 million monthly active users, is a popular personal finance tool that for some consumers can be a substitute to having a traditional bank account.
Even Apple (NASDAQ: AAPL) is rapidly rising up the ranks in adoption. Apple Pay is the second-most widely adopted digital wallet in North America and Europe, after PayPal.
Niche service providers
Outside of payments, which has proven to be a very lucrative industry, investors should know about more specialized fintech companies that offer unique services.
SoFi Technologies (NASDAQ: SOFI) is a digital banking provider that offers numerous services, like checking and savings accounts, credit cards, and student loans, geared toward a younger, affluent demographic. The online bank's deposit base continues to grow with each passing quarter. And its management team believes it can achieve positive net income in the fourth quarter of this year.
Artificial intelligence (AI) is on every investor's mind these days. While this technology has a range of potential applications, it's already being used in the financial services industry.
Lemonade (NYSE: LMND) uses 50 different machine learning models throughout the organization to better serve customers and manage risk. Unlike incumbent insurers, it operates no physical branches, instead utilizing a completely digital model. Lemonade says that someone can sign up for a new policy, or have a claim approved, in minutes.
Since it was founded in 2012, Upstart's (NASDAQ: UPST) entire business model has been based on using AI to better analyze a borrower's ability to pay back a loan. Upstart offers its tech-enabled platform to lending partners who hope it can expand their reach by approving more borrowers, while at the same time keeping default risk in check.
What's more appealing?
As you can see, there are lots of ways to gain direct exposure to the fintech sector. Investors who prioritize safety and thus want less risky options can look at Visa and Mastercard. On the other hand, for those interested in greater growth potential, albeit with more uncertainty, then Lemonade and Upstart could be exactly what you're looking for.
One thing is for certain: The fintech space is only going to keep growing in the decade ahead. Investors have myriad choices of how to allocate capital behind this secular trend.
10 stocks we like better than Visa
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Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Block, Lemonade, Mastercard, PayPal, Upstart, and Visa. The Motley Fool recommends the following options: long January 2025 $370 calls on Mastercard, short December 2023 $67.50 puts on PayPal, 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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Even Apple (NASDAQ: AAPL) is rapidly rising up the ranks in adoption. Using the connective power of the internet, fintech businesses have made traditional financial products simpler and more accessible to customers, winning monumental growth for themselves. Besides simply holding dominant competitive positions, their processing networks are deeply entrenched in the world's financial infrastructure, which makes them incredibly profitable.
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Even Apple (NASDAQ: AAPL) is rapidly rising up the ranks in adoption. SoFi Technologies (NASDAQ: SOFI) is a digital banking provider that offers numerous services, like checking and savings accounts, credit cards, and student loans, geared toward a younger, affluent demographic. The Motley Fool has positions in and recommends Apple, Block, Lemonade, Mastercard, PayPal, Upstart, and Visa.
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Even Apple (NASDAQ: AAPL) is rapidly rising up the ranks in adoption. Having been founded more than two decades ago, PayPal (NASDAQ: PYPL) was a digital payments pioneer, providing consumers with services that make it easy to pay for things online and send money to friends, and letting merchants more seamlessly accept online payments. Niche service providers Outside of payments, which has proven to be a very lucrative industry, investors should know about more specialized fintech companies that offer unique services.
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Even Apple (NASDAQ: AAPL) is rapidly rising up the ranks in adoption. Niche service providers Outside of payments, which has proven to be a very lucrative industry, investors should know about more specialized fintech companies that offer unique services. While this technology has a range of potential applications, it's already being used in the financial services industry.
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14010.0
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2023-09-03 00:00:00 UTC
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The 3 Most Promising Dow Stocks to Own Now
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AAPL
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https://www.nasdaq.com/articles/the-3-most-promising-dow-stocks-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
August was not good for the 30 Dow Jones Industrial Average stocks. Dow market leaders performed poorly, with just 12 in positive territory on Aug. 31.
However, even though the index lost 2.6% throughout the past month, it could have been much worse without a recent four-day streak in positive territory. Interestingly, as bad as it was, it was worse last August with the Dow losing 4.1%.
The best performer this August was Amgen (NASDAQ:AMGN), up 10.8%, while the worst performer was Walgreens Boots Alliance (NASDAQ:WBA), down 14.6%.
I’ve been tasked with selecting the three must-own Dow stocks. This process shouldn’t be nearly as challenging, with only 30 to choose from compared to more than 500 for the Standards & Practives (S&P) 500. The two I’ve already mentioned are excluded from the selection. That leaves me with 28 possibilities. I’ll try to pick companies from three different sectors.
May the best Dow stocks win.
Caterpillar (CAT)
Source: Shutterstock
It shouldn’t be surprising that Caterpillar (NYSE:CAT) is the second-best performing stock in the Dow throughout the past three years, up 93%. It sells heavy equipment to companies in the energy and basic materials sectors. Those two have done well throughout the past 36 months.
I can remember the business media trashing CAT stock in March 2020. At the time, it traded for slightly more than $75. At the time, I called it one of the 10 best value stocks to own in 2020. It’s up 276% in the 41 months since. It’s 2.9 times greater than the S&P 500.
The good news about CAT is that it’s up nearly 18% year-to-date. The bad news is that it lost 2.5% of its value in August. Industrial stocks have taken a rest due to higher interest rates. Investors wonder how much growth will happen in this economic environment.
Here’s what investors do know: Caterpillar’s Machinery, Energy & Transportation (ME&T) free cash flow in the first six months of 2023 was $3.98 billion, 5.7 times the amount in 2022. The company’s annualized free cash flow of $7.96 billion is higher than it’s ever been.
From a valuation perspective, CAT is fair value today. You’ll want to hold it for two to three years to benefit from owning it, but this is one of the Dow market leaders that will be worth it.
Apple (AAPL)
Source: Moab Republic / Shutterstock
Apple (NASDAQ:AAPL) lost nearly 4% in August despite a late-month rally that saw the iPhone maker’s stock rally almost 6% in the five final trading days.
Apple’s stock has had an exciting summer. The company’s market capitalization in late June went above $3 trillion. It held this level through July, but August brought it back to earth.
Regardless of what happens to the markets in the year’s final four months, every core portfolio of quality stocks starts and ends with Apple. I might disagree with its share repurchase policy, but you can’t make these kinds of capital allocation decisions in the first place if you don’t have the free cash flow. Apple has $101 billion [cash flow] as of June 30. That’s a whopping 26% of revenue.
Wedbush Securities analyst Dan Ives appeared on Bloomberg Surveillance on Aug. 31. He discussed Apple’s artificial intelligence (AI) plan. He believes AI could add $30-40 a share to its stock price just from AI alone. Further, he thinks it will hit a $4 billion market cap by February 2025. That’s an annualized growth of 24% based on getting to $4 billion in 18 months.
In addition, he suggested that 240 million of 1.2 billion iPhone owners haven’t upgraded their phones in four-plus years. That too will add revenue beyond what’s expected throughout the next couple of years.
It’s the number one stock in the Dow.
JPMorgan Chase (JPM)
Source: Daryl L / Shutterstock.com
Warren Buffett likes Bank of America (NYSE:BAC), and he’s rarely wrong. However, it’s hard not to like Jamie Dimon-led JPMorgan Chase (NYSE:JPM), and it’s in the Dow, BAC isn’t, so I’m going with JPM.
It was the third-worst performer of the 30 stocks in the Dow in August, down 6.9%. From March through July, the bank was having an excellent year, up 27% from trough to peak. Thanks to August, it’s now up 8.3% YTD.
JPMorgan’s CEO is never one to shy away from giving an opinion. In early August, after Fitch Ratings downgraded America’s long-term credit rating, he called the move “ridiculous,” suggesting that it makes no sense that the most prosperous nation on earth doesn’t have an AAA rating, but other countries do.
He’s got a point.
Analysts are generally optimistic about the bank’s stock. Of 26 that cover it, 19 rate it :Overweight” or an outright “Buy” (73% of the total), with a $169 target price. That compares to 50% of the total for Bank of America.
Why should you buy JPM?
Throughout the past 18 years, JPMorgan has increased its tangible book value per share from $15.35 in 2004 to $73.12 in 2022, a compound annual growth rate of 9.1%. Impressively, it’s risen in all 18 years.
Plus, the 2.7% dividend yield doesn’t hurt. This and the other Dow market leaders we mentioned are all worth of your investment.
On the date of publication, Will Ashworth 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.
Will Ashworth has written about investments full-time since 2008. Publications where he’s appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and several others in both the U.S. and Canada. He particularly enjoys creating model portfolios that stand the test of time. He lives in Halifax, Nova Scotia.
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The post The 3 Most Promising Dow Stocks 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: Moab Republic / Shutterstock Apple (NASDAQ:AAPL) lost nearly 4% in August despite a late-month rally that saw the iPhone maker’s stock rally almost 6% in the five final trading days. I might disagree with its share repurchase policy, but you can’t make these kinds of capital allocation decisions in the first place if you don’t have the free cash flow. JPMorgan Chase (JPM) Source: Daryl L / Shutterstock.com Warren Buffett likes Bank of America (NYSE:BAC), and he’s rarely wrong.
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Apple (AAPL) Source: Moab Republic / Shutterstock Apple (NASDAQ:AAPL) lost nearly 4% in August despite a late-month rally that saw the iPhone maker’s stock rally almost 6% in the five final trading days. InvestorPlace - Stock Market News, Stock Advice & Trading Tips August was not good for the 30 Dow Jones Industrial Average stocks. The company’s annualized free cash flow of $7.96 billion is higher than it’s ever been.
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Apple (AAPL) Source: Moab Republic / Shutterstock Apple (NASDAQ:AAPL) lost nearly 4% in August despite a late-month rally that saw the iPhone maker’s stock rally almost 6% in the five final trading days. InvestorPlace - Stock Market News, Stock Advice & Trading Tips August was not good for the 30 Dow Jones Industrial Average stocks. Caterpillar (CAT) Source: Shutterstock It shouldn’t be surprising that Caterpillar (NYSE:CAT) is the second-best performing stock in the Dow throughout the past three years, up 93%.
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Apple (AAPL) Source: Moab Republic / Shutterstock Apple (NASDAQ:AAPL) lost nearly 4% in August despite a late-month rally that saw the iPhone maker’s stock rally almost 6% in the five final trading days. InvestorPlace - Stock Market News, Stock Advice & Trading Tips August was not good for the 30 Dow Jones Industrial Average stocks. Here’s what investors do know: Caterpillar’s Machinery, Energy & Transportation (ME&T) free cash flow in the first six months of 2023 was $3.98 billion, 5.7 times the amount in 2022.
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14011.0
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2023-09-03 00:00:00 UTC
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3 Mega-Cap Stocks to Buy in September
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AAPL
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https://www.nasdaq.com/articles/3-mega-cap-stocks-to-buy-in-september
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nan
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nan
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Technology stocks have had a historic run in 2023, recovering from a disappointing performance in 2022 that was marked by rapid interest rate hikes and a slowing economy. Momentum turned around sharply for the group in 2023, fueled in large part by an AI-driven rally.
However, the Nasdaq Composite ($NASX) hit a hurdle in mid-July, pressured by a mixed earnings season and the looming prospect of additional rate hikes. But with shares now finding their footing and turning higher from recent lows, it looks like an opportune time to scoop up quality names from the outperforming tech sector.
Backed by strong fundamentals, dividend payouts, and positive analyst sentiments, here are three stocks from the mega-cap tech sector worth adding to your portfolio at current levels.
Microsoft
Gone are the days when Microsoft (MSFT) was just a software company making operating systems for computers. With interests in fields from cloud computing to generative AI, Microsoft's wide-ranging credentials in the tech space are hard to dispute.
Along with the broader market, shares of the $2.43 trillion company have stumbled slightly over the past month. Microsoft stock lost 2.2% during the month of August, just a little wider than the Nasdaq's fall of 2.1% over the same period. Year-to-date, MSFT is now up 37%, edging past a 34% return for the Nasdaq.
www.barchart.com
On the earnings front, Microsoft's numbers for the fiscal fourth quarter surpassed Street expectations. Revenues for the April-June period came in at $56.2 billion, up 8% from the prior year and above the consensus estimate of $55.5 billion. EPS growth was even sharper at 21% YoY to $2.69, which topped the consensus estimate of $2.55. Impressively, the company's EPS has been above Street estimates in four out of the past five quarters.
Meanwhile, Microsoft's prowess in the AI space is well-documented. Recently, news emerged that ChatGPT - the generative platform into which Microsoft has poured billions - surpassed an annual revenue run-rate of $1 billion. Further, ChatGPT recently introduced a version for large businesses which offers “enterprise-grade security and privacy.”
Moreover, Microsoft plans to integrate its generative AI tool Copilot into its suite of Microsoft 365 apps, such as Word and Excel. This provides an additional revenue stream for the company on top of its existing Microsoft 365 subscription fees, reflecting strong pricing power.
With a dividend yield of 0.83%, Microsoft is competitive with its fellow tech peers Alphabet (GOOGL) and Amazon (AMZN). On a forward price/earnings (p/e) basis, Microsoft is trading at 30.08, lower than Amazon at 62.35 but higher than Alphabet at 24.29. On a price/book (p/b) basis, Microsoft is at 11.85 - north of Amazon's 8.26 and Alphabet's 6.42, but not alarmingly so.
Analysts are upbeat about the earnings growth prospects for Microsoft, predicting 12.8% growth for the current quarter and 11.1% for FY 2023.
www.barchart.com
Overall, analysts have handed out a “Strong Buy” rating on the stock, with a mean target price of $383.49. This indicates an upside potential of about 16% from current levels. Out of 35 analysts covering the stock, 29 have a “Strong Buy” rating, 3 have a “Moderate Buy” rating, 2 have a “Hold” rating, and 1 has a “Strong Sell” rating.
www.barchart.com
Apple
Next up on our list is the most valuable tech company in the world, with a market cap of $2.93 trillion - Apple (AAPL). The Cupertino-based tech titan has revolutionized consumer behavior over the past couple of decades with industry-leading products such as its iPhone, iPad, Apple Watch, and Macbook, among others. In recent years, the company has also made a significant splash with its subscription services such as Apple Music and Apple Pay.
Apple stock, which has a dividend yield of 0.50%, shed over 4% in August due to a mixed set of numbers for the fiscal third quarter, though it's still up 46% year-to-date.
www.barchart.com
The company reported net sales of $81.8 billion - which surpassed the consensus estimate of $81.69 billion, but marked the third consecutive quarter of declining sales for Apple. Additionally, iPhone sales - Apple's biggest contributor to revenue - fell 2.5% to $39.67 billion, arriving just short of estimates.
However, EPS grew by 5% from the prior year to $1.26, and topped the consensus estimate of $1.19. In fact, EPS has come in above Street expectations in four out of the past five quarters.
That said, the company's moves in the AI space leave a lot to be desired when considering the competition. Although Apple leverages the technology in its digital assistant Siri and in smart photo rendering, it pales in comparison to the scale of its peers. However, it's rumored that the upcoming iPhone 15 (launching this month) will make significant use of AI in Apple's Health App.
Moreover, at the latestearnings conference call Apple CEO Tim Cook revealed that a sizeable portion of its R&D expenses for the year will be allocated towards the development of generative AI solutions. In fact, a recent report by Bloomberg revealed that Apple is developing its own ChatGPT-like AI chatbot, which engineers call “Apple GPT.” However, a product announcement is not expected before 2024.
Since Apple operates along a number of businesses, the closest identifiable peer seems to be Google parent Alphabet. Apple is trading at a forward p/e of 30.99, a tad bit higher than Alphabet's 24.29. The valuation gap narrows when it comes to p/s, with Apple at 7.75 and Alphabet at 6.03. Finally, Apple is trading at a p/cf of 25.95, compared to Alphabet at 17.31.
Looking ahead, analysts are expecting earnings growth of 7.7% for the current quarter, and a decline of nearly 1% for FY 2023.
www.barchart.com
Overall, though, analysts are cautiously optimistic about Apple stock. This is reflected in its “Moderate Buy” rating with a mean target price of $205.07, indicating an upside potential of about 8% from current levels. Out of 29 analysts covering the stock, 18 have a “Strong Buy” rating, 3 have a “Moderate Buy” rating, and 8 have a “Hold” rating.
www.barchart.com
Broadcom
How can we conclude our list of mega-cap tech stocks without including a semiconductor company - the lifeblood of any AI operation? Founded in 1961, California-based Broadcom (AVGO) is a global technology company that designs, develops, and supplies semiconductor and infrastructure software solutions.
With a dividend yield of 1.94% and a market cap of $380 billion, Broadcom is the only company on this list that gained ground in August. The stock added 2.7% for the month, bucking a broader negative trend for the Nasdaq - but with the shares pulling back after earnings, there's still an opportunity to pick up AVGO at a discount to its recently set 52-week high.
www.barchart.com
On Thursday night, Broadcom reported net revenues of $8.8 billion for the quarter ended July 30, up roughly 5% from the prior year. EPS grew slightly from the year-ago period to $10.54, and surpassed the consensus estimate of $10.42. Impressively, the company's EPS has surpassed expectations in each of the past five quarters.
Unsurprisingly for a semiconductor company, a significant chunk of Broadcom's business is derived from AI. In fact, Broadcom forecasts revenue of $800 million from its AI-deployed Ethernet switches in 2023, up from $200 million in 2022. More broadly, the company expects to generate 25% of its revenues from generative AI by the end of 2024, compared to 15% now.
On the valuation front, Broadcom carries a premium to some of its chip sector peers. AVGO's forward p/e of 26.03 is higher than both Taiwan Semiconductor (TSM) at 19.47 and Qualcomm (QCOM) at 17.31. On a p/s basis, Broadcom is trading at 10.50 compared to TSM at 6.32 and QCOM at 3.28. Finally, on a p/cf basis, Broadcom is trading at 20.99, compared to TSM at 9.70 and Qualcomm at 14.61.
In terms of earnings growth, analysts expect Broadcom to boost its bottom line by 3.9% and 9.2% in the current quarter and FY 2023, respectively.
www.barchart.com
Analysts remain bullish about the stock, judging by the consensus “Strong Buy” rating. However, given its searing rally so far this year (up 58% YTD), the mean target price of $878.35 is only 0.6% away from current levels.
On the far bullish end of the spectrum, though, the Street-high target price of $1,010 points to an upside potential of more than 15%. Meanwhile, out of 20 analysts covering AVGO, 15 have a “Strong Buy” rating and 5 have a “Hold” 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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www.barchart.com Apple Next up on our list is the most valuable tech company in the world, with a market cap of $2.93 trillion - Apple (AAPL). Backed by strong fundamentals, dividend payouts, and positive analyst sentiments, here are three stocks from the mega-cap tech sector worth adding to your portfolio at current levels. Moreover, at the latestearnings conference call Apple CEO Tim Cook revealed that a sizeable portion of its R&D expenses for the year will be allocated towards the development of generative AI solutions.
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www.barchart.com Apple Next up on our list is the most valuable tech company in the world, with a market cap of $2.93 trillion - Apple (AAPL). www.barchart.com On the earnings front, Microsoft's numbers for the fiscal fourth quarter surpassed Street expectations. Out of 35 analysts covering the stock, 29 have a “Strong Buy” rating, 3 have a “Moderate Buy” rating, 2 have a “Hold” rating, and 1 has a “Strong Sell” rating.
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www.barchart.com Apple Next up on our list is the most valuable tech company in the world, with a market cap of $2.93 trillion - Apple (AAPL). Analysts are upbeat about the earnings growth prospects for Microsoft, predicting 12.8% growth for the current quarter and 11.1% for FY 2023. www.barchart.com Overall, analysts have handed out a “Strong Buy” rating on the stock, with a mean target price of $383.49. Out of 35 analysts covering the stock, 29 have a “Strong Buy” rating, 3 have a “Moderate Buy” rating, 2 have a “Hold” rating, and 1 has a “Strong Sell” rating.
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www.barchart.com Apple Next up on our list is the most valuable tech company in the world, with a market cap of $2.93 trillion - Apple (AAPL). Analysts are upbeat about the earnings growth prospects for Microsoft, predicting 12.8% growth for the current quarter and 11.1% for FY 2023. www.barchart.com Overall, analysts have handed out a “Strong Buy” rating on the stock, with a mean target price of $383.49. In fact, EPS has come in above Street expectations in four out of the past five quarters.
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14012.0
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2023-09-02 00:00:00 UTC
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EXCLUSIVE-SoftBank's Arm to ask for $47 to $51 per share in IPO -sources
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AAPL
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https://www.nasdaq.com/articles/exclusive-softbanks-arm-to-ask-for-%2447-to-%2451-per-share-in-ipo-sources
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nan
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nan
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By Echo Wang and Anirban Sen
NEW YORK, Sept 2 (Reuters) - Arm Holdings Ltd, the chip designer owned by SoftBank Group Corp 9984.T, is planning to ask investors to pay $47 to $51 for each of its shares when it begins marketing its initial public offering (IPO) next week, people familiar with the matter said on Saturday.
The price range, which has not been previously reported, would translate into a valuation for Arm of roughly between $50 billion and $54 billion, and an offering of $5 billion to $5.4 billion. It would make Arm the most valuable company to list in New York since electric car maker Rivian Automotive RIVN.O debuted in 2021.
SoftBank could possibly raise this range before the IPO prices, should investor demand prove strong, said the sources, who requested anonymity because the matter is confidential.
Arm declined to comment while SoftBank did not immediately respond to requests for comment.
The valuation Arm is currently seeking represents a climb-down from the $64 billion valuation at which SoftBank acquired the 25% stake in the company it did not already own from its $100 billion Vision Fund last month.
This reflects a recent drop in demand for some of Arm's offerings. For the year ended March 31, Arm's sales fell to $2.68 billion, hurt mainly by a slump in global smartphone shipments.
Arm has already signed up many of its major clients as investors in its IPO, Reuters reported on Friday. These include Apple Inc AAPL.O, Nvidia Corp NVDA.O, Alphabet Inc GOOGL.O, Advanced Micro Devices Inc AMD.O, Intel Corp INTC.O, Samsung Electronics Co Ltd 005930.KS, Cadence Design Systems Inc CDNS.O and Synopsys Inc SNPS.O.
The companies' interest is fueled by a desire to expand their commercial relationship with Arm and make sure rivals do not gain an edge, Reuters has previously reported.
This is because the customers view Arm's semiconductor designs as an indispensable resource. They are used by more than 260 technology companies to make over 30 billion chips annually, powering 99% of the world’s smartphones and everything from the tiniest of sensors to the most powerful supercomputers.
(Reporting by Echo Wang in New York Editing by Greg Roumeliotis, Matthew Lewis and Chizu Nomiyama)
((Greg.Roumeliotis@thomsonreuters.com; +1 646 223 6022; Reuters Messaging: greg.roumeliotis.thomsonreuters.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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These include Apple Inc AAPL.O, Nvidia Corp NVDA.O, Alphabet Inc GOOGL.O, Advanced Micro Devices Inc AMD.O, Intel Corp INTC.O, Samsung Electronics Co Ltd 005930.KS, Cadence Design Systems Inc CDNS.O and Synopsys Inc SNPS.O. By Echo Wang and Anirban Sen NEW YORK, Sept 2 (Reuters) - Arm Holdings Ltd, the chip designer owned by SoftBank Group Corp 9984.T, is planning to ask investors to pay $47 to $51 for each of its shares when it begins marketing its initial public offering (IPO) next week, people familiar with the matter said on Saturday. SoftBank could possibly raise this range before the IPO prices, should investor demand prove strong, said the sources, who requested anonymity because the matter is confidential.
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These include Apple Inc AAPL.O, Nvidia Corp NVDA.O, Alphabet Inc GOOGL.O, Advanced Micro Devices Inc AMD.O, Intel Corp INTC.O, Samsung Electronics Co Ltd 005930.KS, Cadence Design Systems Inc CDNS.O and Synopsys Inc SNPS.O. By Echo Wang and Anirban Sen NEW YORK, Sept 2 (Reuters) - Arm Holdings Ltd, the chip designer owned by SoftBank Group Corp 9984.T, is planning to ask investors to pay $47 to $51 for each of its shares when it begins marketing its initial public offering (IPO) next week, people familiar with the matter said on Saturday. SoftBank could possibly raise this range before the IPO prices, should investor demand prove strong, said the sources, who requested anonymity because the matter is confidential.
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These include Apple Inc AAPL.O, Nvidia Corp NVDA.O, Alphabet Inc GOOGL.O, Advanced Micro Devices Inc AMD.O, Intel Corp INTC.O, Samsung Electronics Co Ltd 005930.KS, Cadence Design Systems Inc CDNS.O and Synopsys Inc SNPS.O. By Echo Wang and Anirban Sen NEW YORK, Sept 2 (Reuters) - Arm Holdings Ltd, the chip designer owned by SoftBank Group Corp 9984.T, is planning to ask investors to pay $47 to $51 for each of its shares when it begins marketing its initial public offering (IPO) next week, people familiar with the matter said on Saturday. The price range, which has not been previously reported, would translate into a valuation for Arm of roughly between $50 billion and $54 billion, and an offering of $5 billion to $5.4 billion.
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These include Apple Inc AAPL.O, Nvidia Corp NVDA.O, Alphabet Inc GOOGL.O, Advanced Micro Devices Inc AMD.O, Intel Corp INTC.O, Samsung Electronics Co Ltd 005930.KS, Cadence Design Systems Inc CDNS.O and Synopsys Inc SNPS.O. The price range, which has not been previously reported, would translate into a valuation for Arm of roughly between $50 billion and $54 billion, and an offering of $5 billion to $5.4 billion. It would make Arm the most valuable company to list in New York since electric car maker Rivian Automotive RIVN.O debuted in 2021.
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14013.0
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2023-09-02 00:00:00 UTC
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2 Spectacular Warren Buffett Stocks to Buy in September
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AAPL
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https://www.nasdaq.com/articles/2-spectacular-warren-buffett-stocks-to-buy-in-september
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nan
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nan
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Berkshire Hathaway CEO Warren Buffett turned 93 on Aug. 30, and it would be an understatement to say that he's lived an incredible life. The famous moneyman stands as one of the most successful investors in history, and he's delivered incredible returns for his company's shareholders and has been a source of wisdom and information for millions of people around the globe.
If you're looking to take a page out of the Oracle of Omaha's investing playbook, read on to see why two Motley Fool contributors think buying these Buffett-backed stocks would be a smart move this month.
Buffett's favorite stock -- by far
Keith Noonan: Buffett has said that most people should just invest in an exchange-traded fund that tracks the S&P 500 index for diversified exposure to the stock market. Given that statement, it might come as a surprise to hear that he's not actually a big fan of diversification, at least not for his own company's stock holdings.
Buffett has described diversification as a "protection against ignorance," and his company has actually taken a highly concentrated approach to its equity portfolio composition. With Apple (NASDAQ: AAPL) accounting for roughly 47% of Berkshire Hathaway's total stock holdings, there's little doubt as to which stock is Buffett's favorite. And his incredible vote of confidence in the tech company has paid off big time.
Apple stock is up 230% over the last five years and 600% since Berkshire began buying shares in the company back in the first quarter of 2016. More so than any other stock in its portfolio, Apple has played a driving role in pushing Berkshire to market-beating performance over the last seven years.
The tech giant is one of the world's most profitable companies, and much of its earnings power stems from its dominant position in the mobile market. The company's iPhone now accounts for 55% of the U.S. smartphone market and 45% of total global revenue in the category. Even more staggering, Apple's iPhone lines are capturing approximately 85% of total operating profits made on all smartphones sold around the world.
Apple's dominance in the mobile market has also helped it launch and expand a highly profitable software and services segment, accounting for roughly 26% of the company's $81.8 billion in total revenue last quarter. The company isn't resting on its laurels either.
The tech leader will be launching augmented reality glasses and generative artificial intelligence applications in the not-too-distant future and is reportedly working on a smart car. Buffett's massive investment in the stock makes it clear that the famously successful investor is excited about the tech leader's future.
A master in profits
Parkev Tatevosian: One of my favorite Warren Buffett stocks to buy right now is Mastercard (NYSE: MA). The payment services company has a few characteristics that attract my attention: excellent profitability and a competitive advantage. Additionally, the stock is not trading at a prohibitively expensive valuation. Coincidentally, these are characteristics Warren Buffett also appreciates.
Let's start with Mastercard's profitability. In the last decade, its operating profit margin has averaged 54.5%. That rate of profitability is near the top of the charts for businesses worldwide. Mastercard can generate this margin because of the asset-lite business model. It spent decades developing the merchant and buyer network and is now reaping the benefits of years of effort.
That brings me to my next point: its competitive advantage. Any rival wishing to encroach on Mastercard's business cannot do so quickly. Visa, the other big financial services company with similar size and scale, has chosen not to compete against Mastercard on price. This stable business environment allows Mastercard to focus on serving its customers while earning robust profits.
MA PE Ratio (Forward 1y) data by YCharts. PE Ratio = price-to-earnings ratio.
Of course, that sounds great, but if the stock were expensive, it would not be as attractive as an investment. Thankfully, Mastercard is trading at a forward price-to-earnings ratio of 28.4, which, in my opinion, is a fair price for an excellent business like Mastercard.
Apple and Mastercard have strong competitive advantages
Much of Buffett's investing success through the years can be traced to the importance he's placed on backing companies with sustainable competitive advantages. Both Apple and Mastercard have powerful strengths in their respective industries, and competitors will have a very hard time disrupting their businesses. Building positions in both stocks looks like a smart move for those looking to emulate the Oracle of Omaha's investing style.
10 stocks we like better than Apple
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of August 28, 2023
Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, 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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With Apple (NASDAQ: AAPL) accounting for roughly 47% of Berkshire Hathaway's total stock holdings, there's little doubt as to which stock is Buffett's favorite. The famous moneyman stands as one of the most successful investors in history, and he's delivered incredible returns for his company's shareholders and has been a source of wisdom and information for millions of people around the globe. Apple's dominance in the mobile market has also helped it launch and expand a highly profitable software and services segment, accounting for roughly 26% of the company's $81.8 billion in total revenue last quarter.
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With Apple (NASDAQ: AAPL) accounting for roughly 47% of Berkshire Hathaway's total stock holdings, there's little doubt as to which stock is Buffett's favorite. Apple's dominance in the mobile market has also helped it launch and expand a highly profitable software and services segment, accounting for roughly 26% of the company's $81.8 billion in total revenue last quarter. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, Mastercard, and Visa.
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With Apple (NASDAQ: AAPL) accounting for roughly 47% of Berkshire Hathaway's total stock holdings, there's little doubt as to which stock is Buffett's favorite. Buffett's favorite stock -- by far Keith Noonan: Buffett has said that most people should just invest in an exchange-traded fund that tracks the S&P 500 index for diversified exposure to the stock market. Apple and Mastercard have strong competitive advantages Much of Buffett's investing success through the years can be traced to the importance he's placed on backing companies with sustainable competitive advantages.
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With Apple (NASDAQ: AAPL) accounting for roughly 47% of Berkshire Hathaway's total stock holdings, there's little doubt as to which stock is Buffett's favorite. Thankfully, Mastercard is trading at a forward price-to-earnings ratio of 28.4, which, in my opinion, is a fair price for an excellent business like Mastercard. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, Mastercard, and Visa.
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14014.0
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2023-09-01 00:00:00 UTC
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Should You Buy the Dow Stock Outperforming Apple?
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AAPL
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https://www.nasdaq.com/articles/should-you-buy-the-dow-stock-outperforming-apple
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nan
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nan
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When you think of top-performing Dow stocks to buy, you might automatically think of Apple (AAPL) - it's the world’s most valuable company, a favorite of legendary investor Warren Buffett, and a leader in consumer technology. But what if we told you there is another Dow Jones Industrial Average ($DOWI) component that has been crushing Apple on the charts over several time frames - and it's not even a tech stock?
That stock is none other than Caterpillar (CAT), the world’s largest manufacturer of construction and mining equipment and a true old-school industrial name. And while CAT hasn't exactly collected AI stock-sized gains in 2023, it's worth taking a look at the stock's performance from a few different perspectives to get a sense of its real technical muscle.
CAT's Long-Term Technical Dominance
To be sure, Apple stock is outpacing comfortably CAT on a year-to-date basis - but let's not forget how much room for recovery Apple and its tech stock peers had after a brutal finish to 2022.
Looking over the past 52 weeks, Caterpillar stock has gained nearly 60%, while AAPL is only 20% higher. The broader Dow, for perspective, is up about 10% in this time frame.
www.barchart.com
More recently, focusing in on the last three months, AAPL's impressive momentum from the first half of 2023 has slowed considerably, with the shares netting a return of less than 5% over this period.
Meanwhile, CAT has gained more than 25%, powered in part by well-received Q2 earnings (by contrast, Apple missed iPhone sales estimates in its recent quarterly report).
www.barchart.com
So with CAT clearly holding its own against this tech powerhouse on the charts, let's take a look at the fundamentals.
CAT’s Earnings Beat Expectations
In its second-quarter earnings report, CAT reported revenue of $14.4 billion, marking a 29% surge compared to the previous year. Earnings per share also impressed, up 74% year-over-year to reach $5.55. Notably, both figures outperformed analysts' expectations, which were projected at $13.9 billion and $4.51 per share, respectively. Caterpillar also raised its full-year revenue and earnings guidance, and the stock led Dow gainers after the report with a rally of more than 8%.
www.barchart.com
CAT attributed its results to a global increase in infrastructure spending and investment. This surge in demand spanned all segments, with its construction, resource, and energy and transportation divisions all posting significant growth. The construction segment reported a 45% revenue increase, buoyed by higher sales volume and the introduction of new products like the electric mini excavator and autonomous dozer. At the same time, resource segment revenue was up 41%, driven by elevated sales volume in mining and entry into emerging markets like lithium and rare earths.
Plus, the energy and transportation segment contributed 16% revenue growth, propelled by increased sales volume and innovative solutions in areas such as power generation and hydrogen development in collaboration with Chevron (CVX).
Digging deeper into the report, the company's operating margin climbed from 15.3% to 17.5%, while net income margin increased from 10.7% to 12.4%. In terms of financial strength, CAT generated $2.8 billion of operating cash flow and $2.1 billion of free cash flow during the quarter. This enabled the company to increase its dividend by 10% and repurchase $1.2 billion worth of its own shares, showcasing its dedication to rewarding shareholders.
Overall, Caterpillar's recent performance show that the company is benefiting from the global economic recovery and its own operational excellence. The company's strong sales and revenue growth, strategic collaboration with Luck Stone, and commitment to a reduced-carbon future demonstrate its ongoing leadership in the industrial sector.
What Analysts Expect from Caterpillar Stock
Looking into CAT's future, analysts have a positive outlook for earnings growth. Fiscal 2023 earnings are expected to improve by 43.1% overall compared to 2022. The average earnings estimate for the full year stands at $19.81 per share, drawn from 11 estimates. These predictions span from a high estimate of $20.86 per share to a low estimate of $18.50 per share. For fiscal year 2024, earnings growth is expected to moderate to 6.8%.
www.barchart.com
Based on 19 analysts' recommendations, CAT holds a consensus rating of moderate buy. Specifically, 7 analysts recommend a strong buy, 1 suggests a moderate buy, 9 suggest a hold, and 2 indicate a strong sell. This collective sentiment reflects the general optimism surrounding Caterpillar stock on Wall Street.
It's worth pointing out that CAT is trading above the average 12-month price target of $280.65, suggesting the shares have outperformed some analysts' expectations. That said, the Street-high target of $350 implies expected upside of nearly 23% from current levels.
www.barchart.com
Putting CAT's Valuation in Perspective
In the realm of its industrial peers, CAT's performance and fundamentals are striking. With a market capitalization of $143.4 billion, it's one of the largest industrial companies in the U.S., alongside household names like General Electric (GE) - another surprise outperformer, with GE shares now up 100% in the last 52 weeks.
At current levels, CAT looks reasonably priced. The stock's price-to-earnings ratio of 15.45 comes in lower than the sector median of 17.58, indicating its potential is somewhat undervalued. Plus, CAT's price-to-sales ratio of 2.36, price-to-cash flow ratio of 13.43, price-to-book ratio of 7.62, and earnings per share of $18.27 are all attractive relative to comparable industry-wide measures.
With an above-average dividend yield of 1.74%, and a prudent dividend payout ratio of 26.05% - below the sector average - CAT's balanced approach to rewarding shareholders bodes well for future growth.
Is Caterpillar the Best Dow Stock to Buy?
Whether we're talking about the past year, the recent month, or its financial fundamentals, CAT's on a roll. To be clear, the construction equipment firm will never replace or compete with Apple - but nevertheless, the stock's outperformance seems overdue for some recognition from investors. As we enter the historically challenging month of September, this operationally resilient industrial giant looks like a top Dow stock to buy - especially if Apple and its FAANG cohort get rattled by another wave of risk-off sentiment.
On the date of publication, Ebube Jones 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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When you think of top-performing Dow stocks to buy, you might automatically think of Apple (AAPL) - it's the world’s most valuable company, a favorite of legendary investor Warren Buffett, and a leader in consumer technology. Looking over the past 52 weeks, Caterpillar stock has gained nearly 60%, while AAPL is only 20% higher. www.barchart.com More recently, focusing in on the last three months, AAPL's impressive momentum from the first half of 2023 has slowed considerably, with the shares netting a return of less than 5% over this period.
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When you think of top-performing Dow stocks to buy, you might automatically think of Apple (AAPL) - it's the world’s most valuable company, a favorite of legendary investor Warren Buffett, and a leader in consumer technology. Looking over the past 52 weeks, Caterpillar stock has gained nearly 60%, while AAPL is only 20% higher. www.barchart.com More recently, focusing in on the last three months, AAPL's impressive momentum from the first half of 2023 has slowed considerably, with the shares netting a return of less than 5% over this period.
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When you think of top-performing Dow stocks to buy, you might automatically think of Apple (AAPL) - it's the world’s most valuable company, a favorite of legendary investor Warren Buffett, and a leader in consumer technology. Looking over the past 52 weeks, Caterpillar stock has gained nearly 60%, while AAPL is only 20% higher. www.barchart.com More recently, focusing in on the last three months, AAPL's impressive momentum from the first half of 2023 has slowed considerably, with the shares netting a return of less than 5% over this period.
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When you think of top-performing Dow stocks to buy, you might automatically think of Apple (AAPL) - it's the world’s most valuable company, a favorite of legendary investor Warren Buffett, and a leader in consumer technology. Looking over the past 52 weeks, Caterpillar stock has gained nearly 60%, while AAPL is only 20% higher. www.barchart.com More recently, focusing in on the last three months, AAPL's impressive momentum from the first half of 2023 has slowed considerably, with the shares netting a return of less than 5% over this period.
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14015.0
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2023-09-01 00:00:00 UTC
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After Hours Most Active for Sep 1, 2023 : BKI, AAPL, VZ, PYPL, CVE, MU, QQQ, TSLA, BHC, CSX, CNQ, ICE
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-sep-1-2023-%3A-bki-aapl-vz-pypl-cve-mu-qqq-tsla-bhc-csx-cnq-ice
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nan
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nan
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The NASDAQ 100 After Hours Indicator is down -12.47 to 15,478.39. The total After hours volume is currently 54,400,950 shares traded.
The following are the most active stocks for the after hours session:
Black Knight, Inc. (BKI) is -0.02 at $75.74, with 3,400,776 shares traded. BKI's current last sale is 102.35% of the target price of $74.
Apple Inc. (AAPL) is -0.29 at $189.17, with 2,660,880 shares traded. Over the last four weeks they have had 5 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2023. The consensus EPS forecast is $1.39. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Verizon Communications Inc. (VZ) is -0.01 at $34.85, with 2,213,383 shares traded. VZ's current last sale is 85% of the target price of $41.
PayPal Holdings, Inc. (PYPL) is -0.08 at $63.49, with 1,957,635 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2023. The consensus EPS forecast is $0.92. As reported by Zacks, the current mean recommendation for PYPL is in the "buy range".
Cenovus Energy Inc (CVE) is unchanged at $20.15, with 1,614,488 shares traded. As reported by Zacks, the current mean recommendation for CVE is in the "buy range".
Micron Technology, Inc. (MU) is -0.17 at $70.22, with 1,559,672 shares traded. As reported by Zacks, the current mean recommendation for MU is in the "buy range".
Invesco QQQ Trust, Series 1 (QQQ) is +0.01 at $377.60, with 1,531,771 shares traded. This represents a 48.51% increase from its 52 Week Low.
Tesla, Inc. (TSLA) is +0.04 at $245.05, with 1,480,892 shares traded. TSLA's current last sale is 93.35% of the target price of $262.5.
Bausch Health Companies Inc. (BHC) is +0.04 at $8.50, with 1,273,760 shares traded. BHC's current last sale is 106.25% of the target price of $8.
CSX Corporation (CSX) is unchanged at $30.63, with 1,098,696 shares traded. As reported by Zacks, the current mean recommendation for CSX is in the "buy range".
Canadian Natural Resources Limited (CNQ) is unchanged at $64.92, with 964,651 shares traded. As reported by Zacks, the current mean recommendation for CNQ is in the "buy range".
Intercontinental Exchange Inc. (ICE) is -0.27 at $116.74, with 837,037 shares traded. Over the last four weeks they have had 6 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2023. The consensus EPS forecast is $1.39. As reported by Zacks, the current mean recommendation for ICE 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 -0.29 at $189.17, with 2,660,880 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Over the last four weeks they have had 5 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2023.
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Apple Inc. (AAPL) is -0.29 at $189.17, with 2,660,880 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Over the last four weeks they have had 5 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2023.
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Apple Inc. (AAPL) is -0.29 at $189.17, with 2,660,880 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Over the last four weeks they have had 5 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2023.
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Apple Inc. (AAPL) is -0.29 at $189.17, with 2,660,880 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The NASDAQ 100 After Hours Indicator is down -12.47 to 15,478.39.
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14016.0
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2023-09-01 00:00:00 UTC
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Surging Stocks That Can Keep Taking Market Share
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AAPL
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https://www.nasdaq.com/articles/surging-stocks-that-can-keep-taking-market-share
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nan
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nan
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Taking market share is crucial for companies and their stocks as a large market cap has numerous advantages.
Large-cap companies can secure cheaper financing and have a consistent stream of revenue while capitalizing on the recognition of their brand. This allows a company to operate on a greater scale which can increase profitability in correlation with economies of scale.
Typically for stocks, large-cap companies are valued at $10 billion or higher and tend to have the greatest trading liquidity. Higher trading liquidity allows large-cap stocks to be traded on the stock market quickly, without having a significant effect on their price.
Furthermore, market cap allows investors to compare the size, growth potential, income, and risk of different companies.
Let’s take a look at a few surging stocks that may be able to keep taking market share and boost investors' portfolios.
Technology Leaders with a Large Market Share
With this year’s surge in tech stocks, there are a number of companies that are retaining or growing their hefty valuations.
It's hard to not have this conversation without mentioning Apple AAPL or Nvidia NVDA with a market cap of roughly $3 trillion and $1.2 trillion respectively.
Apple is the highest-valued company on U.S. stock exchanges with Nvidia the fifth largest and continuing to take market share among chipmakers. Nvidia’s market cap is now 122% above the Zacks Semiconductor-General Markets' $54.82 billion average which alludes to why NVDA shares have kept climbing over the years.
Image Source: Zacks Investment Research
Nvidia currently sports a Zacks Rank #1 (Strong Buy) and has soared +223% this year. More astonishing, NVDA shares are now up 12,000% over the last decade and this somewhat unending stellar performance could continue with Nvidia’s chips powering the AI revolution.
As for Apple, its stock has climbed +43% this year and currently lands a Zacks Rank #3 (Hold). Of course, Apple can only fall out of the top spot in terms of market cap but the company’s $48 billion cash pile is indicative of the benefits of taking market share. Furthermore, with a pipeline of famous tech products Apple stock is up +963% in the last 10 years and is usually a viable option for longer-term investors.
Image Source: Zacks Investment Research
A Retail Company Poised to Take Market-Cap
Looking at smaller companies that may be on their way to taking market share or eventually achieving large-cap status is always beneficial. This could correlate with lofty stock market gains and Urban Outfitters URBN stands out in this regard.
With a Zacks Rank #1 (Strong Buy), Urban Outfitters is a popular fashion retailer that caters its apparel and merchandise to younger generations. Urban Outfitters has shown signs of taking market cap in the past hitting a peak of $6.25 billion back in 2018.
While Urban Outfitters' market cap is currently at $3 billion, we can see from the chart below that this is now on par with its Zacks industry further suggesting the company is a sound investment in the space and may have a chance at being a disrupter (and has already been so).
Image Source: Zacks Investment Research
Plus, Urban Outfitters' steady growth is reason to believe it might be taking real market share along the way. Urban Outfitters' stock has climbed +39% YTD as earnings are forecasted to pop 82% in its current fiscal 2024 to $3.18 a share compared to $1.75 per share a year ago.
More importantly to seeing continued brand growth, sales are expected to be up 6% in FY24 and rise another 4% in FY25 to $5.30 billion. Better still, FY25 sales projections would represent 55% growth over the last five years with FY21 sales at $3.45 billion.
Image Source: Zacks Investment Research
Bottom Line
Taking market share puts companies in a position to offer shareholders unprecedented returns in regard to their stocks. This makes keeping an eye on a stock's market cap beneficial to investors as well. To that point, Apple, Nvidia, and Urban Outfitters are three stocks to watch.
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
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Urban Outfitters, Inc. (URBN) : 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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It's hard to not have this conversation without mentioning Apple AAPL or Nvidia NVDA with a market cap of roughly $3 trillion and $1.2 trillion respectively. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Urban Outfitters, Inc. (URBN) : Free Stock Analysis Report To read this article on Zacks.com click here. Technology Leaders with a Large Market Share With this year’s surge in tech stocks, there are a number of companies that are retaining or growing their hefty valuations.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Urban Outfitters, Inc. (URBN) : Free Stock Analysis Report To read this article on Zacks.com click here. It's hard to not have this conversation without mentioning Apple AAPL or Nvidia NVDA with a market cap of roughly $3 trillion and $1.2 trillion respectively. Image Source: Zacks Investment Research Nvidia currently sports a Zacks Rank #1 (Strong Buy) and has soared +223% this year.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Urban Outfitters, Inc. (URBN) : Free Stock Analysis Report To read this article on Zacks.com click here. It's hard to not have this conversation without mentioning Apple AAPL or Nvidia NVDA with a market cap of roughly $3 trillion and $1.2 trillion respectively. Image Source: Zacks Investment Research A Retail Company Poised to Take Market-Cap Looking at smaller companies that may be on their way to taking market share or eventually achieving large-cap status is always beneficial.
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It's hard to not have this conversation without mentioning Apple AAPL or Nvidia NVDA with a market cap of roughly $3 trillion and $1.2 trillion respectively. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Urban Outfitters, Inc. (URBN) : Free Stock Analysis Report To read this article on Zacks.com click here. Nvidia’s market cap is now 122% above the Zacks Semiconductor-General Markets' $54.82 billion average which alludes to why NVDA shares have kept climbing over the years.
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14017.0
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2023-09-01 00:00:00 UTC
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EXCLUSIVE-Arm signs up big tech firms for IPO at $50 bln-$55 bln valuation -sources
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AAPL
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https://www.nasdaq.com/articles/exclusive-arm-signs-up-big-tech-firms-for-ipo-at-%2450-bln-%2455-bln-valuation-sources-0
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nan
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nan
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By Echo Wang
NEW YORK, Sept 1 (Reuters) - Customers of Arm Holdings Ltd including Apple Inc AAPL.O, Nvidia Corp NVDA.O, Alphabet Inc GOOGL.O and Advanced Micro Devices Inc AMD.O have agreed to invest in the chip designer's initial public offering, according to people familiar with the matter.
Intel Corp INTC.O, Samsung Electronics Co Ltd 005930.KS, Cadence Design Systems Inc CDNS.O and Synopsys Inc SNPS.O have also agreed to participate as investors in the offering, the sources added. The talks are ongoing and some other potential investors are also in discussions to invest in the IPO, the sources added.
SoftBank Group Corp 9984.T, which owns Britain-based Arm, is targeting a valuation between $50 billion and $55 billion, Reuters reported earlier on Friday. Arm's clients have agreed to invest in that valuation range, the sources said.
While it is possible that demand for Arm's shares will lead to a higher valuation by the time the IPO prices, the move represents a climb-down from the $64 billion valuation at which SoftBank acquired the 25% stake in the company it did not already own from its $100 billion Vision Fund last month.
Apple, Nvidia and the other strategic investors have agreed to invest between $25 million and $100 million each in the blockbuster IPO, the sources said. Arm and SoftBank have set aside 10% of the shares to be sold in the IPO for its clients, Reuters has previously reported.
Amazon.com Inc AMZN.O, which had previously held talks to invest in the IPO, has decided not to participate, one of the sources said, requesting anonymity as the discussions are confidential.
A scramble among Arm's clients, comprising the world's biggest technology companies, to snap up shares in the IPO is testing the semiconductor designer's adherence to not picking sides in the chip industry.
Arm and SoftBank did not immediately respond to requests for comment.
AMD, Intel, Synopsys and Nvidia declined to comment. Alphabet, Amazon, Apple, Samsung and Cadence did not immediately respond to requests for comment. The Wall Street Journal reported on Arm's valuation target earlier on Friday.
(Reporting by Echo Wang in New York; Editing by Anirban Sen and Rosalba O'Brien)
((Anirban.Sen@thomsonreuters.com; Twitter: @asenjourno; Reuters Messaging: Signal/Telegram/Whatsapp - +1-646-705-9409))
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 Echo Wang NEW YORK, Sept 1 (Reuters) - Customers of Arm Holdings Ltd including Apple Inc AAPL.O, Nvidia Corp NVDA.O, Alphabet Inc GOOGL.O and Advanced Micro Devices Inc AMD.O have agreed to invest in the chip designer's initial public offering, according to people familiar with the matter. Intel Corp INTC.O, Samsung Electronics Co Ltd 005930.KS, Cadence Design Systems Inc CDNS.O and Synopsys Inc SNPS.O have also agreed to participate as investors in the offering, the sources added. A scramble among Arm's clients, comprising the world's biggest technology companies, to snap up shares in the IPO is testing the semiconductor designer's adherence to not picking sides in the chip industry.
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By Echo Wang NEW YORK, Sept 1 (Reuters) - Customers of Arm Holdings Ltd including Apple Inc AAPL.O, Nvidia Corp NVDA.O, Alphabet Inc GOOGL.O and Advanced Micro Devices Inc AMD.O have agreed to invest in the chip designer's initial public offering, according to people familiar with the matter. Intel Corp INTC.O, Samsung Electronics Co Ltd 005930.KS, Cadence Design Systems Inc CDNS.O and Synopsys Inc SNPS.O have also agreed to participate as investors in the offering, the sources added. SoftBank Group Corp 9984.T, which owns Britain-based Arm, is targeting a valuation between $50 billion and $55 billion, Reuters reported earlier on Friday.
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By Echo Wang NEW YORK, Sept 1 (Reuters) - Customers of Arm Holdings Ltd including Apple Inc AAPL.O, Nvidia Corp NVDA.O, Alphabet Inc GOOGL.O and Advanced Micro Devices Inc AMD.O have agreed to invest in the chip designer's initial public offering, according to people familiar with the matter. SoftBank Group Corp 9984.T, which owns Britain-based Arm, is targeting a valuation between $50 billion and $55 billion, Reuters reported earlier on Friday. While it is possible that demand for Arm's shares will lead to a higher valuation by the time the IPO prices, the move represents a climb-down from the $64 billion valuation at which SoftBank acquired the 25% stake in the company it did not already own from its $100 billion Vision Fund last month.
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By Echo Wang NEW YORK, Sept 1 (Reuters) - Customers of Arm Holdings Ltd including Apple Inc AAPL.O, Nvidia Corp NVDA.O, Alphabet Inc GOOGL.O and Advanced Micro Devices Inc AMD.O have agreed to invest in the chip designer's initial public offering, according to people familiar with the matter. Intel Corp INTC.O, Samsung Electronics Co Ltd 005930.KS, Cadence Design Systems Inc CDNS.O and Synopsys Inc SNPS.O have also agreed to participate as investors in the offering, the sources added. Arm and SoftBank have set aside 10% of the shares to be sold in the IPO for its clients, Reuters has previously reported.
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14018.0
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2023-09-01 00:00:00 UTC
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EXCLUSIVE-Arm signs up big tech firms for IPO at $50 bln-$55 bln valuation-sources
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AAPL
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https://www.nasdaq.com/articles/exclusive-arm-signs-up-big-tech-firms-for-ipo-at-%2450-bln-%2455-bln-valuation-sources
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nan
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nan
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By Echo Wang
NEW YORK, Sept 1 (Reuters) - Customers of Arm Holdings Ltd including Apple Inc AAPL.O, Nvidia Corp NVDA.O, Alphabet Inc GOOGL.O and Advanced Micro Devices Inc AMD.O are set to invest in the chip designer's initial public offering, according to people familiar with the matter.
Intel Corp INTC.O, Samsung Electronics Co Ltd 005930.KS, Cadence Design Systems Inc and Synopsys Inc are also being lined up as investors for the offering, the sources added. The talks are ongoing and some other potential investors are also currently in discussions to invest in the IPO, the sources added.
SoftBank Group Corp, which owns Arm, is targeting a valuation between $50 billion to $55 valuation, Reuters reported earlier on Friday. Arm's clients have agreed to invest in that valuation range, the sources said.
While it is possible that demand for Arm’s shares will lead to a higher valuation by the time the IPO prices, the move represents a climb-down from the $64 billion valuation at which SoftBank acquired the 25% stake in the company it did not already own from its $100 billion Vision Fund last month.
Apple, Nvidia and the other strategic investors have agreed to invest between $25 million to $100 million each in the blockbuster IPO, the sources said. Arm and SoftBank have set aside 10% of the shares to be sold in the IPO for its clients, Reuters has previously reported.
Amazon.com Inc AMZN.O, which had previously held talks to invest in the IPO, has decided not to participate, one of the sources said, requesting anonymity as the discussions are confidential.
Arm and SoftBank did not immediately respond to requests for comment.
Alphabet, AMD, Amazon, Apple, Intel, Nvidia, Samsung, Cadence and Synopsys did not immediately respond to requests for comment. The Wall Street Journal reported on Arm's valuation target earlier on Friday.
(Reporting by Echo Wang in New York; Editing by Anirban Sen)
((Anirban.Sen@thomsonreuters.com; Twitter: @asenjourno; Reuters Messaging: Signal/Telegram/Whatsapp - +1-646-705-9409))
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 Echo Wang NEW YORK, Sept 1 (Reuters) - Customers of Arm Holdings Ltd including Apple Inc AAPL.O, Nvidia Corp NVDA.O, Alphabet Inc GOOGL.O and Advanced Micro Devices Inc AMD.O are set to invest in the chip designer's initial public offering, according to people familiar with the matter. Intel Corp INTC.O, Samsung Electronics Co Ltd 005930.KS, Cadence Design Systems Inc and Synopsys Inc are also being lined up as investors for the offering, the sources added. Alphabet, AMD, Amazon, Apple, Intel, Nvidia, Samsung, Cadence and Synopsys did not immediately respond to requests for comment.
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By Echo Wang NEW YORK, Sept 1 (Reuters) - Customers of Arm Holdings Ltd including Apple Inc AAPL.O, Nvidia Corp NVDA.O, Alphabet Inc GOOGL.O and Advanced Micro Devices Inc AMD.O are set to invest in the chip designer's initial public offering, according to people familiar with the matter. SoftBank Group Corp, which owns Arm, is targeting a valuation between $50 billion to $55 valuation, Reuters reported earlier on Friday. Alphabet, AMD, Amazon, Apple, Intel, Nvidia, Samsung, Cadence and Synopsys did not immediately respond to requests for comment.
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By Echo Wang NEW YORK, Sept 1 (Reuters) - Customers of Arm Holdings Ltd including Apple Inc AAPL.O, Nvidia Corp NVDA.O, Alphabet Inc GOOGL.O and Advanced Micro Devices Inc AMD.O are set to invest in the chip designer's initial public offering, according to people familiar with the matter. SoftBank Group Corp, which owns Arm, is targeting a valuation between $50 billion to $55 valuation, Reuters reported earlier on Friday. While it is possible that demand for Arm’s shares will lead to a higher valuation by the time the IPO prices, the move represents a climb-down from the $64 billion valuation at which SoftBank acquired the 25% stake in the company it did not already own from its $100 billion Vision Fund last month.
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By Echo Wang NEW YORK, Sept 1 (Reuters) - Customers of Arm Holdings Ltd including Apple Inc AAPL.O, Nvidia Corp NVDA.O, Alphabet Inc GOOGL.O and Advanced Micro Devices Inc AMD.O are set to invest in the chip designer's initial public offering, according to people familiar with the matter. SoftBank Group Corp, which owns Arm, is targeting a valuation between $50 billion to $55 valuation, Reuters reported earlier on Friday. Arm and SoftBank have set aside 10% of the shares to be sold in the IPO for its clients, Reuters has previously reported.
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14019.0
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2023-09-01 00:00:00 UTC
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Apple (AAPL) Outpaces Stock Market Gains: What You Should Know
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AAPL
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https://www.nasdaq.com/articles/apple-aapl-outpaces-stock-market-gains%3A-what-you-should-know-17
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nan
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nan
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Apple (AAPL) closed the most recent trading day at $189.46, moving +0.85% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.18%. At the same time, the Dow added 0.33%, and the tech-heavy Nasdaq lost 0.02%.
Prior to today's trading, shares of the maker of iPhones, iPads and other products had lost 1.73% over the past month. This has lagged the Computer and Technology sector's loss of 1.62% and the S&P 500's loss of 1.63% in that time.
Apple will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.39, up 7.75% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $88.99 billion, down 1.28% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.05 per share and revenue of $382.78 billion. These totals would mark changes of -0.98% and -2.93%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Apple. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.73% higher. Apple is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note Apple's current valuation metrics, including its Forward P/E ratio of 31.04. This valuation marks a premium compared to its industry's average Forward P/E of 12.41.
Meanwhile, AAPL's PEG ratio is currently 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 industry currently has a Zacks Industry Rank of 202, which puts it in the bottom 20% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.
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
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 $189.46, moving +0.85% from the previous trading session. Meanwhile, AAPL's PEG ratio is currently 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 $189.46, moving +0.85% from the previous trading session. Meanwhile, AAPL's PEG ratio is currently 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 $189.46, moving +0.85% from the previous trading session. Meanwhile, AAPL's PEG ratio is currently 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 $189.46, moving +0.85% from the previous trading session. Meanwhile, AAPL's PEG ratio is currently 2.73. To follow AAPL in the coming trading sessions, be sure to utilize Zacks.com.
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14020.0
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2023-09-01 00:00:00 UTC
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Microsoft Stock's Dip Looks Like a Good Opportunity to Value Investors
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AAPL
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https://www.nasdaq.com/articles/microsoft-stocks-dip-looks-like-a-good-opportunity-to-value-investors
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nan
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nan
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Microsoft (MSFT) stock still looks attractive to value investors given its massive free cash flow and reasonably cheap metrics. Moreover, short sellers of near-term put options are making good money. This is despite the recent dip in MSFT stock. In fact, it actually looks like a good buying opportunity here.
As of early trading on Sept. 1, 2023, MSFT stock is up over $2.00 to $329.53. During August it fell $8.16 from $335.92 at the end of July to $327.76, or just 2.43%.
So, far this quarter, since the end of June, MSFT is off about $11.00 from $340.54 or 3.2%. However, year-to-date, MSFT stock is actually up 37.4% from $239.82. at the end of 2022.
Microsoft's Huge FCF Margins
In my July 31 on Microsoft in Barchart I discussed the company's massive free cash flow (FCF) and how that could affect the stock's upside. The article, “Cheap Stock Alert: Microsoft and Its Huge Free Cash Flow - Options Plays Look Attractive,” pointed out that its FCF margin had risen dramatically.
For example, in its fiscal Q4 ending June 30, Microsoft's FCF margin hit 37.4%. This is the result of its $21 billion in quarterly adj. FCF and dividing it by the quarterly revenue of $56.1 billion.
That means that over 37% of every dollar of revenue goes straight to its balance sheet. This cash flow is unencumbered even after capex spending, working capital needs, and all its cash expenses. As a result, the FCF is then “free” to be spent on dividends, buybacks, acquisitions, etc.
Moreover, Microsoft has one of the highest FCF margins (37.4%) in the tech stock space. For example, Alphabet (GOOG) generated just 31.25% FCF margins in Q2 (i.e., $21.778 billion / $69.685 billion in revenue).
In fact, even Apple (AAPL) made just 29.7% FCF margins in its latest quarterly earnings ending July 1. I explained this in my recent Aug. 6, 2023, article, “Apple Stock Tumbles After Earnings, But Its Free Cash Flow Growth Makes It a Buy.”
As a result, investors are paying close attention to Microsoft's valuation.
MSFT Stock Still Looks Attractive Here
In my July 31 Barchart article on MSFT stock, I showed that it's reasonable to expect Microsoft could make $100 billion in free cash flow for the year ending June 30, 2024.
Therefore, using a 3.0% FCF yield, Microsoft stock could hit a $3.33 trillion valuation (i.e., $100b/3.0% = $3,333 billion). That represents a gain of 36.6% over its $2.44 trillion market capitalization today.
In other words, MSFT stock could be worth as much as $450 per share (i.e., 36.6% over today's price of $329.53). There is no guarantee that it could hit this valuation.
In fact, just to be conservative we could use a 3.5% FCF yield. That implies that its $100 billion in FCF could produce a market cap of $2.857 billion, or 17% over today's price. That works out to a price target of $385.55 per share.
This still makes MSFT stock attractive to value investors over the next year. In addition, traders can make extra income by shorting out-of-the-money (OTM) put options.
Shorting OTM Puts
For example, with the expiration period ending Sept. 29, 28 days from today, the $310 strike price puts look attractive. The premium at that strike price, which is 5.78% below the spot price (i.e., out-of-the-money) is $1.63 per put contract.
That means traders who sell short these puts make a good income of 0.526% for one month. That works out to an annualized return of 6.30%. So, if the investor already owns MSFT stock they can enhance the stock's meager 0.82% annual dividend yield.
MSFT Puts - Expiring Sept. 29 - Barchart - As of Sept. 1, 2023
Here is how that works out. First, a trader secures $31,000 in cash and/or margin with their brokerage firm. Then they can enter an order to “Sell to Open” 1 put contract at the $310 strike price for expiration on Sept. 29. The account will then immediately receive $163.00 per put contract shorted.
That $163 works out to 0.526% of the $31,000 invested for one put contract that was sold short. So, if it is repeated each month for a year, the holder could make $1,956 in additional income (assuming the exact trade and yield can be repeated). That $1,956 return divided by the $31,000 invested is an ROI of 6.30%.
Of course, there is no guarantee that trade can be repeated. But it shows the general rate of return available by shorting OTM puts in MSFT stock. Moreover, even if the stock falls below $310, the investor buys more shares at this lower price, potentially lowering their average buy-in cost.Moreover, the trader can then sell short OTM calls with the shares. That could help reduce any potential unrealized loss from the exercise of the put options.
The bottom line is that this is a good way to play the potential upside in MSFT stock. This works especially well for MSFT shareholders who want to enhance their dividend yield in this extremely profitable company.
More Stock Market News from Barchart
Dollar General (DG) is ‘Smiling’ at Investors and It’s Not for a Good Reason
Markets Today: Stocks Climb as U.S. Payrolls Report May Prompt a Fed Pause
Stock Index Futures Climb Ahead of Key U.S. Payrolls Data
Stocks See Support from U.S. Deflator Report But Close Mixed
On the date of publication, Mark R. Hake, CFA 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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In fact, even Apple (AAPL) made just 29.7% FCF margins in its latest quarterly earnings ending July 1. The article, “Cheap Stock Alert: Microsoft and Its Huge Free Cash Flow - Options Plays Look Attractive,” pointed out that its FCF margin had risen dramatically. I explained this in my recent Aug. 6, 2023, article, “Apple Stock Tumbles After Earnings, But Its Free Cash Flow Growth Makes It a Buy.” As a result, investors are paying close attention to Microsoft's valuation.
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In fact, even Apple (AAPL) made just 29.7% FCF margins in its latest quarterly earnings ending July 1. Microsoft's Huge FCF Margins In my July 31 on Microsoft in Barchart I discussed the company's massive free cash flow (FCF) and how that could affect the stock's upside. The article, “Cheap Stock Alert: Microsoft and Its Huge Free Cash Flow - Options Plays Look Attractive,” pointed out that its FCF margin had risen dramatically.
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In fact, even Apple (AAPL) made just 29.7% FCF margins in its latest quarterly earnings ending July 1. Microsoft's Huge FCF Margins In my July 31 on Microsoft in Barchart I discussed the company's massive free cash flow (FCF) and how that could affect the stock's upside. MSFT Stock Still Looks Attractive Here In my July 31 Barchart article on MSFT stock, I showed that it's reasonable to expect Microsoft could make $100 billion in free cash flow for the year ending June 30, 2024.
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In fact, even Apple (AAPL) made just 29.7% FCF margins in its latest quarterly earnings ending July 1. MSFT Stock Still Looks Attractive Here In my July 31 Barchart article on MSFT stock, I showed that it's reasonable to expect Microsoft could make $100 billion in free cash flow for the year ending June 30, 2024. Therefore, using a 3.0% FCF yield, Microsoft stock could hit a $3.33 trillion valuation (i.e., $100b/3.0% = $3,333 billion).
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14021.0
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2023-09-01 00:00:00 UTC
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Is WisdomTree U.S. LargeCap Dividend ETF (DLN) a Strong ETF Right Now?
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AAPL
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https://www.nasdaq.com/articles/is-wisdomtree-u.s.-largecap-dividend-etf-dln-a-strong-etf-right-now-10
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nan
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nan
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A smart beta exchange traded fund, the WisdomTree U.S. LargeCap Dividend ETF (DLN) debuted on 06/16/2006, and offers broad exposure to the Style Box - Large Cap Value category of the market.
What Are Smart Beta ETFs?
The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.
Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.
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
The fund is managed by Wisdomtree, and has been able to amass over $3.57 billion, which makes it one of the average sized ETFs in the Style Box - Large Cap Value. DLN seeks to match the performance of the WisdomTree U.S. LargeCap Dividend Index before fees and expenses.
The WisdomTree U.S. LargeCap Dividend Index is a fundamentally weighted index that measures the performance of the large-capitalization segment of the U.S. dividend-paying market.
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.
Operating expenses on an annual basis are 0.28% for DLN, making it on par with most peer products in the space.
DLN's 12-month trailing dividend yield is 2.52%.
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.
DLN's heaviest allocation is in the Information Technology sector, which is about 18.90% of the portfolio. Its Healthcare and Financials round out the top three.
When you look at individual holdings, Exxon Mobil Corp (XOM) accounts for about 4.03% of the fund's total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT).
DLN's top 10 holdings account for about 26.1% of its total assets under management.
Performance and Risk
Year-to-date, the WisdomTree U.S. LargeCap Dividend ETF has added roughly 5% so far, and is up about 8.74% over the last 12 months (as of 09/01/2023). DLN has traded between $55.26 and $65.66 in this past 52-week period.
DLN has a beta of 0.89 and standard deviation of 14.83% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 301 holdings, it effectively diversifies company-specific risk.
Alternatives
WisdomTree U.S. LargeCap Dividend ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. However, there are other ETFs in the space which investors could consider.
IShares Russell 1000 Value ETF (IWD) tracks Russell 1000 Value Index and the Vanguard Value ETF (VTV) tracks CRSP U.S. Large Cap Value Index. IShares Russell 1000 Value ETF has $50.70 billion in assets, Vanguard Value ETF has $101.31 billion. IWD has an expense ratio of 0.19% and VTV charges 0.04%.
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 Value.
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.
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WisdomTree U.S. LargeCap Dividend ETF (DLN): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Exxon Mobil Corporation (XOM) : Free Stock Analysis Report
Vanguard Value ETF (VTV): ETF Research Reports
iShares Russell 1000 Value ETF (IWD): 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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When you look at individual holdings, Exxon Mobil Corp (XOM) accounts for about 4.03% of the fund's total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT). Click to get this free report WisdomTree U.S. LargeCap Dividend ETF (DLN): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. A smart beta exchange traded fund, the WisdomTree U.S. LargeCap Dividend ETF (DLN) debuted on 06/16/2006, and offers broad exposure to the Style Box - Large Cap Value category of the market.
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Click to get this free report WisdomTree U.S. LargeCap Dividend ETF (DLN): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. When you look at individual holdings, Exxon Mobil Corp (XOM) accounts for about 4.03% of the fund's total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT). A smart beta exchange traded fund, the WisdomTree U.S. LargeCap Dividend ETF (DLN) debuted on 06/16/2006, and offers broad exposure to the Style Box - Large Cap Value category of the market.
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Click to get this free report WisdomTree U.S. LargeCap Dividend ETF (DLN): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. When you look at individual holdings, Exxon Mobil Corp (XOM) accounts for about 4.03% of the fund's total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT). A smart beta exchange traded fund, the WisdomTree U.S. LargeCap Dividend ETF (DLN) debuted on 06/16/2006, and offers broad exposure to the Style Box - Large Cap Value category of the market.
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When you look at individual holdings, Exxon Mobil Corp (XOM) accounts for about 4.03% of the fund's total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT). Click to get this free report WisdomTree U.S. LargeCap Dividend ETF (DLN): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. A smart beta exchange traded fund, the WisdomTree U.S. LargeCap Dividend ETF (DLN) debuted on 06/16/2006, and offers broad exposure to the Style Box - Large Cap Value category of the market.
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14022.0
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2023-09-01 00:00:00 UTC
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Is Trending Stock Apple Inc. (AAPL) a Buy Now?
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AAPL
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https://www.nasdaq.com/articles/is-trending-stock-apple-inc.-aapl-a-buy-now-6
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nan
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nan
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Apple (AAPL) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Shares of this maker of iPhones, iPads and other products have returned -1.7% over the past month versus the Zacks S&P 500 composite's -1.6% change. The Zacks Computer - Mini computers industry, to which Apple belongs, has lost 4.3% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate Revisions
Rather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, Apple is expected to post earnings of $1.39 per share, indicating a change of +7.8% from the year-ago quarter. The Zacks Consensus Estimate has changed +1.3% over the last 30 days.
The consensus earnings estimate of $6.05 for the current fiscal year indicates a year-over-year change of -1%. This estimate has changed +0.7% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $6.60 indicates a change of +9.2% from what Apple is expected to report a year ago. Over the past month, the estimate has changed -0.3%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Apple is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth Forecast
Even though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
For Apple, the consensus sales estimate for the current quarter of $88.99 billion indicates a year-over-year change of -1.3%. For the current and next fiscal years, $382.78 billion and $405.3 billion estimates indicate -2.9% and +5.9% changes, respectively.
Last Reported Results and Surprise History
Apple reported revenues of $81.8 billion in the last reported quarter, representing a year-over-year change of -1.4%. EPS of $1.26 for the same period compares with $1.20 a year ago.
Compared to the Zacks Consensus Estimate of $81.36 billion, the reported revenues represent a surprise of +0.54%. The EPS surprise was +5.88%.
Over the last four quarters, Apple surpassed consensus EPS estimates three times. The company topped consensus revenue estimates three times over this period.
Valuation
No investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Apple is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom Line
The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Apple. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
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 credited with a “watershed medical breakthrough” and is developing a bustling pipeline of other projects that could make a world of difference for patients suffering from diseases involving the liver, lungs, and blood. This is a timely investment that you can catch while it emerges from its bear market lows.
It could rival or surpass other recent 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
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) is one of the stocks most watched by Zacks.com visitors lately. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. Bottom Line The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Apple.
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Apple (AAPL) is one of the stocks most watched by Zacks.com visitors lately. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. For the next fiscal year, the consensus earnings estimate of $6.60 indicates a change of +9.2% from what Apple is expected to report a year ago.
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Apple (AAPL) is one of the stocks most watched by Zacks.com visitors lately. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions.
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Apple (AAPL) is one of the stocks most watched by Zacks.com visitors lately. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. And if earnings estimates go up for a company, the fair value for its stock goes up.
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14023.0
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2023-09-01 00:00:00 UTC
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GRAPHIC-Nvidia's market cap climbs amid tech turbulence in August
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AAPL
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https://www.nasdaq.com/articles/graphic-nvidias-market-cap-climbs-amid-tech-turbulence-in-august
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nan
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Sept 1 (Reuters) - Nvidia Corp’s NVDA.O market capitalization climbed higher in August thanks to its strong profit forecasts, which defied the broader downtrend in mega-cap technology stocks during the past month as an uptick in U.S. bond yields rattled the sector.
Nvidia's shares surged last month, boosted by its quarterly revenue forecast, which exceeded analyst expectations as the artificial intelligence boom fuels demand for its chips. Also, an announcement of a $25 billion share buyback lifted its shares.
In stark contrast, other technology behemoths saw a sombre August. The market capitalization of Apple AAPL.O and Microsoft Corp's MSFT.O shares declined 4.4% and 2.4%, respectively, while Meta Platforms Inc's shares fell 7.1%.
Last month, Apple said its sales slump would continue into the fiscal fourth quarter, hit by slowing demand for its flagship product, the iPhone.
Meanwhile, Berkshire Hathaway's BRKa.N market cap rose over 2% last month, as its shares touched a record high after the company's quarterly operating profit topped $10 billion for the first time.
Berkshire said rising interest rates boosted profit from fixed-income investments in its second-quarter earnings, while few accident claims bolstered Geico car insurance, its subsidiary.
In China, Tencent Holdings'0700.HK market cap declined about 9% last month, as its core gaming business experienced weaker-than-expected growth in the quarter through June.
Johnson & Johnson JNJ.N was the worst performer among the top 20 global companies by market cap, shedding about 10% in the last month, as a U.S. judge shot down its second attempt to resolve tens of thousands of talc-related lawsuits.
Top 20 companies in the world by market cap https://tmsnrt.rs/3OAhlz8
Change in market cap in July https://tmsnrt.rs/47cjbgK
(Reporting By Patturaja Murugaboopathy and Gaurav Dogra in Bengaluru)
((patturaja.muruga@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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The market capitalization of Apple AAPL.O and Microsoft Corp's MSFT.O shares declined 4.4% and 2.4%, respectively, while Meta Platforms Inc's shares fell 7.1%. Sept 1 (Reuters) - Nvidia Corp’s NVDA.O market capitalization climbed higher in August thanks to its strong profit forecasts, which defied the broader downtrend in mega-cap technology stocks during the past month as an uptick in U.S. bond yields rattled the sector. Nvidia's shares surged last month, boosted by its quarterly revenue forecast, which exceeded analyst expectations as the artificial intelligence boom fuels demand for its chips.
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The market capitalization of Apple AAPL.O and Microsoft Corp's MSFT.O shares declined 4.4% and 2.4%, respectively, while Meta Platforms Inc's shares fell 7.1%. Meanwhile, Berkshire Hathaway's BRKa.N market cap rose over 2% last month, as its shares touched a record high after the company's quarterly operating profit topped $10 billion for the first time. Top 20 companies in the world by market cap https://tmsnrt.rs/3OAhlz8 Change in market cap in July https://tmsnrt.rs/47cjbgK (Reporting By Patturaja Murugaboopathy and Gaurav Dogra in Bengaluru) ((patturaja.muruga@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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The market capitalization of Apple AAPL.O and Microsoft Corp's MSFT.O shares declined 4.4% and 2.4%, respectively, while Meta Platforms Inc's shares fell 7.1%. Sept 1 (Reuters) - Nvidia Corp’s NVDA.O market capitalization climbed higher in August thanks to its strong profit forecasts, which defied the broader downtrend in mega-cap technology stocks during the past month as an uptick in U.S. bond yields rattled the sector. Meanwhile, Berkshire Hathaway's BRKa.N market cap rose over 2% last month, as its shares touched a record high after the company's quarterly operating profit topped $10 billion for the first time.
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The market capitalization of Apple AAPL.O and Microsoft Corp's MSFT.O shares declined 4.4% and 2.4%, respectively, while Meta Platforms Inc's shares fell 7.1%. Sept 1 (Reuters) - Nvidia Corp’s NVDA.O market capitalization climbed higher in August thanks to its strong profit forecasts, which defied the broader downtrend in mega-cap technology stocks during the past month as an uptick in U.S. bond yields rattled the sector. Nvidia's shares surged last month, boosted by its quarterly revenue forecast, which exceeded analyst expectations as the artificial intelligence boom fuels demand for its chips.
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14024.0
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2023-09-01 00:00:00 UTC
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Is ALPS (OUSA) a Strong ETF Right Now?
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AAPL
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https://www.nasdaq.com/articles/is-alps-ousa-a-strong-etf-right-now-0
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nan
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nan
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Launched on 07/14/2015, the ALPS (OUSA) is a smart beta exchange traded fund offering broad exposure to the Style Box - Large Cap Value 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.
Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.
There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.
Fund Sponsor & Index
Because the fund has amassed over $673.17 million, this makes it one of the average sized ETFs in the Style Box - Large Cap Value. OUSA is managed by Alps. OUSA seeks to match the performance of the FTSE US Qual / Vol / Yield Factor 5% Capped Index before fees and expenses.
The OShares U.S. Quality Dividend Index measures the performance of publicly-listed large-capitalization and mid-capitalization dividend-paying issuers in the United States.
Cost & Other Expenses
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for OUSA are 0.48%, which makes it on par with most peer products in the space.
The fund has a 12-month trailing dividend yield of 1.87%.
Sector Exposure and Top Holdings
ETFs offer 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 in the Information Technology sector - about 20.10% of the portfolio. Healthcare and Financials round out the top three.
When you look at individual holdings, Home Depot Inc. (HD) accounts for about 5.07% of the fund's total assets, followed by Microsoft Corp. (MSFT) and Apple Inc. (AAPL).
Its top 10 holdings account for approximately 40.17% of OUSA's total assets under management.
Performance and Risk
The ETF has added roughly 5.14% so far this year and was up about 17.66% in the last one year (as of 09/01/2023). In the past 52-week period, it has traded between $41.51 and $45.06.
OUSA has a beta of 0.86 and standard deviation of 14.99% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 101 holdings, it effectively diversifies company-specific risk.
Alternatives
ALPS is an excellent option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. There are other ETFs in the space which investors could consider as well.
IShares Russell 1000 Value ETF (IWD) tracks Russell 1000 Value Index and the Vanguard Value ETF (VTV) tracks CRSP U.S. Large Cap Value Index. IShares Russell 1000 Value ETF has $50.70 billion in assets, Vanguard Value ETF has $101.31 billion. IWD has an expense ratio of 0.19% and VTV charges 0.04%.
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 Value.
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.
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ALPS (OUSA): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
The Home Depot, Inc. (HD) : Free Stock Analysis Report
Vanguard Value ETF (VTV): ETF Research Reports
iShares Russell 1000 Value ETF (IWD): 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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When you look at individual holdings, Home Depot Inc. (HD) accounts for about 5.07% of the fund's total assets, followed by Microsoft Corp. (MSFT) and Apple Inc. (AAPL). Click to get this free report ALPS (OUSA): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report The Home Depot, Inc. (HD) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Launched on 07/14/2015, the ALPS (OUSA) is a smart beta exchange traded fund offering broad exposure to the Style Box - Large Cap Value category of the market.
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Click to get this free report ALPS (OUSA): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report The Home Depot, Inc. (HD) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. When you look at individual holdings, Home Depot Inc. (HD) accounts for about 5.07% of the fund's total assets, followed by Microsoft Corp. (MSFT) and Apple Inc. (AAPL). Launched on 07/14/2015, the ALPS (OUSA) is a smart beta exchange traded fund offering broad exposure to the Style Box - Large Cap Value category of the market.
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Click to get this free report ALPS (OUSA): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report The Home Depot, Inc. (HD) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. When you look at individual holdings, Home Depot Inc. (HD) accounts for about 5.07% of the fund's total assets, followed by Microsoft Corp. (MSFT) and Apple Inc. (AAPL). IShares Russell 1000 Value ETF (IWD) tracks Russell 1000 Value Index and the Vanguard Value ETF (VTV) tracks CRSP U.S. Large Cap Value Index.
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When you look at individual holdings, Home Depot Inc. (HD) accounts for about 5.07% of the fund's total assets, followed by Microsoft Corp. (MSFT) and Apple Inc. (AAPL). Click to get this free report ALPS (OUSA): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report The Home Depot, Inc. (HD) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Launched on 07/14/2015, the ALPS (OUSA) is a smart beta exchange traded fund offering broad exposure to the Style Box - Large Cap Value category of the market.
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14025.0
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2023-09-01 00:00:00 UTC
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Stock Market News for Sep 1, 2023
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AAPL
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https://www.nasdaq.com/articles/stock-market-news-for-sep-1-2023
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nan
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nan
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U.S. stock ended mostly lower on Thursday, making August the worst trading month of 2023 as the Fed’s closely-watch inflation gauge came largely in line with expectations for July. Investors are now awaiting August’s jobs report which is scheduled for release on Friday. The Nasdaq still managed to end in the green but the Dow and the S&P 500 finished in negative territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) slid 0.5% or 168.33 points to finish at 34,721.91 points after climbing nearly 180 points.
The S&P 500 declined 0.2% or 7.21 points, to close at 4,507.66 points. Utilities and Healthcare stocks were the worst performers.
The Health Care Select Sector SPDR (XLV) declined 1.2%, while the Utilities Select Sector SPDR (XLU) fell 1%. The Technology Select Sector SPDR (XLK) gained 0.5%. Six of the 11 sectors of the benchmark index ended in negative territory.
The tech-heavy Nasdaq rose 0.1% or 15.66 points to end at 14,034.97 points and record its first straight session of gains.
The fear-gauge CBOE Volatility Index (VIX) was down 2.23% to 13.57.
Markets Volatile after PCE Data Release
Markets remained volatile throughout Thursday as the four-day rally came to a halt following the release of the personal consumption expenditure (PCE) index reading. The PCE reading showed that the cost of goods and services increased a modest 0.2% in July on a month-over-month basis, which was largely in line with the economists’ expectations.
Core PCE, which excludes the volatile food and energy prices and is considered the Fed’s preferred inflation gauge, also came in line with expectations, rising 0.2%.
Year over year, PCE inflation rose 3.3% in July compared to 3% in June, while core PCE inched up to 4.2% from 4.1%.
Stocks have suffered in August as investors have been scrambling for direction. The volatility returned on Thursday as all three major indexes struggled to hold onto their gains on the final trading day of August.
With not much surprise from the PCE inflation reading, the stock market reaction remained largely muted. However, the Nasdaq managed to end in the green, with the tech sector having a better day than others.
Shares of Apple Inc. (AAPL) and NVIDIA Corporation (NVDA) gained 0.1% and 0.2%, respectively. NVIDIA has a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Investors will now shift their focus to the non-farm payrolls data that will be released on Friday morning. Market participants are hopeful that the report will hint at a slowing economy will might ultimately make the Fed pause its interest rate hikes.
Economic Data
In other economic data released on Thursday, the Labor Department reported that jobless claims totaled 228,000 for the week ending Aug 26, a decrease of 4,000 from the previous week’s revised level of 232,000. The four-week moving average was 237,500, an increase of 250 from the previous week’s revised average of 237,250.
Continuing claims came in at 1,725,000, an increase of 28,000 from the previous week’s revised level of 1,697,000. The 4-week moving average was 1,704,200 an increase of 8,250 from the previous week's revised average of 1,696,000.
The Labor Department said that personal income increased $45 billion or 0.2% in July, while disposable personal income rose $7.3 billion or less than 0.1%. Personal spending increased 0.8% or $144.6 billion in July.
Monthly Roundup
August proved to be the worst trading month of 2023 although some of the losses were trimmed in the past few sessions wherein all three indexes climbed for four consecutive days. The Dow declined 2.4% for the month.
The S&P 500 finished 1.8% lower in August to record its first monthly loss since February. The Nasdaq also ended 2.2% down for August, its biggest loss this year.
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 credited with a “watershed medical breakthrough” and is developing a bustling pipeline of other projects that could make a world of difference for patients suffering from diseases involving the liver, lungs, and blood. This is a timely investment that you can catch while it emerges from its bear market lows.
It could rival or surpass other recent 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
NVIDIA Corporation (NVDA) : 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) and NVIDIA Corporation (NVDA) gained 0.1% and 0.2%, respectively. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report To read this article on Zacks.com click here. U.S. stock ended mostly lower on Thursday, making August the worst trading month of 2023 as the Fed’s closely-watch inflation gauge came largely in line with expectations for July.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report To read this article on Zacks.com click here. Shares of Apple Inc. (AAPL) and NVIDIA Corporation (NVDA) gained 0.1% and 0.2%, respectively. U.S. stock ended mostly lower on Thursday, making August the worst trading month of 2023 as the Fed’s closely-watch inflation gauge came largely in line with expectations for July.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report To read this article on Zacks.com click here. Shares of Apple Inc. (AAPL) and NVIDIA Corporation (NVDA) gained 0.1% and 0.2%, respectively. U.S. stock ended mostly lower on Thursday, making August the worst trading month of 2023 as the Fed’s closely-watch inflation gauge came largely in line with expectations for July.
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Shares of Apple Inc. (AAPL) and NVIDIA Corporation (NVDA) gained 0.1% and 0.2%, respectively. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report To read this article on Zacks.com click here. U.S. stock ended mostly lower on Thursday, making August the worst trading month of 2023 as the Fed’s closely-watch inflation gauge came largely in line with expectations for July.
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14026.0
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2023-08-31 00:00:00 UTC
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Broadcom forecasts fourth-quarter revenue below Wall Street expectations
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AAPL
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https://www.nasdaq.com/articles/broadcom-forecasts-fourth-quarter-revenue-below-wall-street-expectations
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nan
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nan
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Adds share movement, Q3 revenue in last paragraph, background in paras 2,3,4
Aug 31 (Reuters) - Broadcom AVGO.O forecast fourth-quarter revenue below Wall Street estimates on Thursday, on worries bleak enterprise spending and stiff competition in the networking chip space will outweigh benefits from a boom in artificial intelligence-led demand.
Shares of the San Jose, California-based company fell 2.7% in extended trading.
Soft enterprise demand, coupled with slower-than-expected recovery in consumer electronics markets such as smartphones, has also taken a toll on Broadcom's semiconductor business.
The entire software industry is feeling the pain of slashed IT budgets across enterprises, both in the U.S. and Europe. Broadcom's software portfolio has also been impacted by the same.
Even as the company has introduced new networking products to suit AI workloads, competition is rising from Nvidia's NVDA.O alternative to ethernet chips, InfiniBand and companies like Marvell Technology MRVL.O.
The chip company expects current-quarter revenue to be about $9.27 billion. Analysts on average expect revenue to be $9.28 billion, according to Refinitiv data.
Revenue in the third quarter was $8.88 billion. Analysts polled by Refinitiv expected revenue of $8.86 billion.
(Reporting by Chavi Mehta in Bengaluru; Editing by Krishna Chandra Eluri)
((Chavi.Mehta@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 share movement, Q3 revenue in last paragraph, background in paras 2,3,4 Aug 31 (Reuters) - Broadcom AVGO.O forecast fourth-quarter revenue below Wall Street estimates on Thursday, on worries bleak enterprise spending and stiff competition in the networking chip space will outweigh benefits from a boom in artificial intelligence-led demand. Soft enterprise demand, coupled with slower-than-expected recovery in consumer electronics markets such as smartphones, has also taken a toll on Broadcom's semiconductor business. The entire software industry is feeling the pain of slashed IT budgets across enterprises, both in the U.S. and Europe.
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The chip company expects current-quarter revenue to be about $9.27 billion. Analysts on average expect revenue to be $9.28 billion, according to Refinitiv data. Analysts polled by Refinitiv expected revenue of $8.86 billion.
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Adds share movement, Q3 revenue in last paragraph, background in paras 2,3,4 Aug 31 (Reuters) - Broadcom AVGO.O forecast fourth-quarter revenue below Wall Street estimates on Thursday, on worries bleak enterprise spending and stiff competition in the networking chip space will outweigh benefits from a boom in artificial intelligence-led demand. Even as the company has introduced new networking products to suit AI workloads, competition is rising from Nvidia's NVDA.O alternative to ethernet chips, InfiniBand and companies like Marvell Technology MRVL.O. The chip company expects current-quarter revenue to be about $9.27 billion.
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Adds share movement, Q3 revenue in last paragraph, background in paras 2,3,4 Aug 31 (Reuters) - Broadcom AVGO.O forecast fourth-quarter revenue below Wall Street estimates on Thursday, on worries bleak enterprise spending and stiff competition in the networking chip space will outweigh benefits from a boom in artificial intelligence-led demand. Shares of the San Jose, California-based company fell 2.7% in extended trading. The chip company expects current-quarter revenue to be about $9.27 billion.
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2023-08-31 00:00:00 UTC
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Vanguard Mega Cap Growth ETF (MGK): Go Big, or Go Home
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https://www.nasdaq.com/articles/vanguard-mega-cap-growth-etf-mgk%3A-go-big-or-go-home
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Sometimes in life, you need to go big or go home. The Vanguard Mega Cap Growth ETF (NYSEARCA:MGK) brings this winner-take-all attitude to the market by investing in the market’s largest growth stocks. This strategy is simple yet effective. Why is investing in mega-cap stocks a winning strategy? Stocks that are winners often keep winning, and you don’t grow to a market cap in the hundreds of billions of dollars without being an exceptionally strong company for a long period of time.
What is the MGK ETF’s Strategy?
MGK is a passively-managed ETF that “seeks to track the performance of the CRSP US Mega Cap Growth Index,” according to Vanguard. Its goal is to provide “a convenient way to get diversified exposure to the largest growth stocks in the U.S. market.” The ETF launched in 2007 and has grown to $13.7 billion in assets under management (AUM).
Monster Gains
While the strategy of investing in the U.S.’s largest growth stocks may sound like a simple one, investing doesn’t need to be complicated, and MGK has generated monster returns for its holders over the years. The mega-cap ETF has returned 18.6% over the past year. As of the end of July, over the past three years, MGK generated an admirable annualized total return of 12.0%.
Zooming further out, its five-year annualized total return stands at a fantastic 15.6%, and its 10-year annualized total return came out to an equally impressive 15.5%. Since the fund's inception in 2007, it has delivered annualized total returns of 12.1%.
On a cumulative basis, this means that MGK holders have enjoyed blockbuster total returns of 106.1% and 323.3% over the past five and 10 years, respectively.
These results surpass the solid returns that the broader market has posted over the same time frames. For example, the Vanguard S&P 500 ETF (NYSEARCA:VOO), which simply invests in the S&P 500 (SPX), has returned 12.9% over the past year. Its three-year annualized total return of 13.7% beats MGK, but its five- and 10-year annualized returns of 12.2% and 12.6%, respectively, while excellent, can’t compete with MGK’s superior returns over the same time frame.
Below, you can check out a comparison of MGK and VOO using TipRanks' ETF Comparison Tool, which enables users to compare up to 20 ETFs at a time across a variety of factors.
Big-Time Holdings
Given its mega-cap focus, it’s unsurprising that MGK’s holdings are comprised of household names that everyday investors are familiar with. The ETF has 98 holdings, and its top 10 make up 60.9% of the fund. You can check out the chart below for an overview of MGK’s top 10 holdings.
As you might guess (because it’s the world’s most valuable company by market cap) Apple (NASDAQ:AAPL) is the fund’s largest holding, with a weighting of 15.9%, followed by Microsoft (NASDAQ:MSFT), which weighs in at 13.5%. Other top 10 holdings include the tech behemoths Amazon (NASDAQ:AMZN), both classes of Alphabet (NASDAQ:GOOGL) (NASDAQ:GOOG) stock, Nvidia (NASDAQ:NVDA), Tesla (NASDAQ:TSLA), and Meta Platforms (NASDAQ:META) that comprise the market’s so-called “magnificent seven.”
While these tech mega-caps reign supreme at the top of MGK (the technology sector accounts for 56.3% of the fund's holdings, according to Vanguard), the fund has plenty more to offer beyond big tech. Pharmaceutical giant Eli Lilly (NYSE:LLY) and global payment network Visa (NYSE:V) occupy the final two spots of the top 10.
Just outside the top 10, you’ll find other blue chip, large-cap names representing a wide variety of industries, such as Home Depot (NYSE:HD), McDonald’s (NYSE:MCD), Costco (NASDAQ:COST), Mastercard (NYSE:MA), and Thermo Fisher Scientific (NYSE:TMO).
These are some of the market’s largest stocks, and they also enjoy strong Smart Scores across the board. The Smart Score is a proprietary quantitative stock scoring system created by TipRanks. It gives stocks a score from 1 to 10 based on eight market key factors.
A score of 8 or above is equivalent to an Outperform rating. Seven of MGK’s top 10 holdings, and all five of its five largest positions, have Outperform-equivalent Smart Scores of 8 or above, further indicating that this is a strong collection of holdings.
MGK itself features an Outperform-equivalent ETF Smart Score of 8.
What is the Price Target for MGK?
Turning to Wall Street, MGK earns a Moderate Buy consensus rating based on 87 Buys, 10 Holds, and one Sell rating assigned in the past three months. The average MGK stock price target of $275.53 implies 14.2% upside potential.
Reasonable Expense Ratio
Thankfully for investors, one area where MGK doesn’t go big is when it comes to expenses. Vanguard pioneered the idea of low-cost index investing through mutual funds and later expanded this philosophy into the world of ETFs. As such, MGK has a reasonable expense ratio of just 0.07%.
This means that an investor who puts $10,000 into MGK today will pay just $7 in fees during their first year of investing. Assuming the expense ratio remains at 0.07% and the fund gains 5% per year going forward, over the course of a decade, this same investor would pay just $90 in fees. By investing in low-cost ETFs like this, investors can preserve more of their principal over time and avoid having large chunks of their gains eaten up by fees and expenses.
Does the MGK ETF Pay a Dividend?
With a dividend yield of just 0.5%, dividends are another area where MGK doesn't go big, but in reality, income is not one of the fund's primary objectives. On the plus side, MGK offers good longevity in this department, with 14 consecutive years of dividend payments under its belt.
The Takeaway
The market’s largest stocks by market value didn’t get to where they are by being slouches -- they are winners for a reason. That’s why it’s probably not a bad idea to invest in these long-term winners, and MGK offers investors a simple, low-cost, and convenient way to gain exposure to all of them in one vehicle. The ETF’s stellar returns over the long term are a testament to the effectiveness of its investment strategy, meaning that MGK continues to be an attractive long-term investment opportunity.
Disclosure
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 you might guess (because it’s the world’s most valuable company by market cap) Apple (NASDAQ:AAPL) is the fund’s largest holding, with a weighting of 15.9%, followed by Microsoft (NASDAQ:MSFT), which weighs in at 13.5%. Stocks that are winners often keep winning, and you don’t grow to a market cap in the hundreds of billions of dollars without being an exceptionally strong company for a long period of time. Its goal is to provide “a convenient way to get diversified exposure to the largest growth stocks in the U.S. market.” The ETF launched in 2007 and has grown to $13.7 billion in assets under management (AUM).
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As you might guess (because it’s the world’s most valuable company by market cap) Apple (NASDAQ:AAPL) is the fund’s largest holding, with a weighting of 15.9%, followed by Microsoft (NASDAQ:MSFT), which weighs in at 13.5%. The Vanguard Mega Cap Growth ETF (NYSEARCA:MGK) brings this winner-take-all attitude to the market by investing in the market’s largest growth stocks. Other top 10 holdings include the tech behemoths Amazon (NASDAQ:AMZN), both classes of Alphabet (NASDAQ:GOOGL) (NASDAQ:GOOG) stock, Nvidia (NASDAQ:NVDA), Tesla (NASDAQ:TSLA), and Meta Platforms (NASDAQ:META) that comprise the market’s so-called “magnificent seven.” While these tech mega-caps reign supreme at the top of MGK (the technology sector accounts for 56.3% of the fund's holdings, according to Vanguard), the fund has plenty more to offer beyond big tech.
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As you might guess (because it’s the world’s most valuable company by market cap) Apple (NASDAQ:AAPL) is the fund’s largest holding, with a weighting of 15.9%, followed by Microsoft (NASDAQ:MSFT), which weighs in at 13.5%. The Vanguard Mega Cap Growth ETF (NYSEARCA:MGK) brings this winner-take-all attitude to the market by investing in the market’s largest growth stocks. Its three-year annualized total return of 13.7% beats MGK, but its five- and 10-year annualized returns of 12.2% and 12.6%, respectively, while excellent, can’t compete with MGK’s superior returns over the same time frame.
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As you might guess (because it’s the world’s most valuable company by market cap) Apple (NASDAQ:AAPL) is the fund’s largest holding, with a weighting of 15.9%, followed by Microsoft (NASDAQ:MSFT), which weighs in at 13.5%. The Vanguard Mega Cap Growth ETF (NYSEARCA:MGK) brings this winner-take-all attitude to the market by investing in the market’s largest growth stocks. The ETF has 98 holdings, and its top 10 make up 60.9% of the fund.
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14028.0
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2023-08-31 00:00:00 UTC
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Arm prepares to meet investors ahead of blockbuster IPO -sources
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https://www.nasdaq.com/articles/arm-prepares-to-meet-investors-ahead-of-blockbuster-ipo-sources
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By Anirban Sen
NEW YORK, Aug 31 (Reuters) - Arm Holdings Ltd plans to launch its roadshow for investors after Labor Day, as the chip designer prepares for its much-anticipated initial public offering (IPO) in September, according to people familiar with the matter.
Arm, owned by SoftBank Group Corp , is expected to set a price range for its offering next week, the sources said, adding the company plans to price its shares on Sept. 13, with stock trading to start the following day.
SoftBank plans to sell about 10% of Arm's shares in the IPO at a valuation of $60 billion to $70 billion, Reuters has previously reported. SoftBank decided to sell fewer Arm shares in the IPO after buying the 25% stake in Arm it did not directly own from its Vision Fund unit.
Several customers of Arm have held talks about taking a piece of the IPO including Apple , Amazon.com , Intel , Nvidia , Alphabet , Microsoft , Samsung Electronics and TSMC , Reuters has previously reported. Arm and SoftBank have set aside 10% of the shares to be sold in the IPO for its clients.
A successful IPO for Arm would be a boon for SoftBank, which in August reported its third consecutive quarterly loss, hit by declines in valuations of major holdings such as Chinese e-commerce firm Alibaba Group , German telecommunications company Deutsche Telekom and U.S. wireless carrier T-Mobile U.S. .
Goldman Sachs Group , JPMorgan Chase , Barclays and Mizuho Financial Group are the lead underwriters for the offering. Arm's shares will be listed on the Nasdaq and trade under the ticker symbol 'ARM'.
Bloomberg reported on Arm's IPO timeline earlier on Thursday. (Reporting by Anirban Sen in New York; Editing by David Gregorio) ((Anirban.Sen@thomsonreuters.com; Twitter: @asenjourno; Reuters Messaging: Signal/Telegram/Whatsapp - +1-646-705-9409)) Keywords: ARM IPO/
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 Anirban Sen NEW YORK, Aug 31 (Reuters) - Arm Holdings Ltd plans to launch its roadshow for investors after Labor Day, as the chip designer prepares for its much-anticipated initial public offering (IPO) in September, according to people familiar with the matter. Several customers of Arm have held talks about taking a piece of the IPO including Apple , Amazon.com , Intel , Nvidia , Alphabet , Microsoft , Samsung Electronics and TSMC , Reuters has previously reported. A successful IPO for Arm would be a boon for SoftBank, which in August reported its third consecutive quarterly loss, hit by declines in valuations of major holdings such as Chinese e-commerce firm Alibaba Group , German telecommunications company Deutsche Telekom and U.S. wireless carrier T-Mobile U.S. .
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By Anirban Sen NEW YORK, Aug 31 (Reuters) - Arm Holdings Ltd plans to launch its roadshow for investors after Labor Day, as the chip designer prepares for its much-anticipated initial public offering (IPO) in September, according to people familiar with the matter. Arm, owned by SoftBank Group Corp , is expected to set a price range for its offering next week, the sources said, adding the company plans to price its shares on Sept. 13, with stock trading to start the following day. SoftBank plans to sell about 10% of Arm's shares in the IPO at a valuation of $60 billion to $70 billion, Reuters has previously reported.
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SoftBank plans to sell about 10% of Arm's shares in the IPO at a valuation of $60 billion to $70 billion, Reuters has previously reported. SoftBank decided to sell fewer Arm shares in the IPO after buying the 25% stake in Arm it did not directly own from its Vision Fund unit. A successful IPO for Arm would be a boon for SoftBank, which in August reported its third consecutive quarterly loss, hit by declines in valuations of major holdings such as Chinese e-commerce firm Alibaba Group , German telecommunications company Deutsche Telekom and U.S. wireless carrier T-Mobile U.S. .
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By Anirban Sen NEW YORK, Aug 31 (Reuters) - Arm Holdings Ltd plans to launch its roadshow for investors after Labor Day, as the chip designer prepares for its much-anticipated initial public offering (IPO) in September, according to people familiar with the matter. Arm, owned by SoftBank Group Corp , is expected to set a price range for its offering next week, the sources said, adding the company plans to price its shares on Sept. 13, with stock trading to start the following day. SoftBank plans to sell about 10% of Arm's shares in the IPO at a valuation of $60 billion to $70 billion, Reuters has previously reported.
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14029.0
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2023-08-31 00:00:00 UTC
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7 Ultimate Buy-and-Hold Stock Picks for Forever Investors
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https://www.nasdaq.com/articles/7-ultimate-buy-and-hold-stock-picks-for-forever-investors
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Compiling a list of the ultimate buy-and-hold stock picks for forever investors is subjective. While you may disagree with some of the long-term stocks chosen for this article, each of them is fundamentally sound. Better, each one of these long-term stocks has the potential to serve as part of a solid portfolio. Solid companies, solid products, and solid operations are all hallmarks of the firms here.
Long-Term Stocks: Apple (AAPL)
Source: sylv1rob1 / Shutterstock.com
Apple’s (NASDAQ:AAPL) earnings may have been disappointing, but with heavy product demand, and new product releases, its stock price continues to appreciate. I’d consider the latest pullback as an opportunity to accumulate shares. After all, demand for its iPhone is still strong. And there is no clear contender that will dethrone it anytime soon. That’ll be the main driver of Apple moving forward. Better, on Sept. 12, the company will introduce its iPhone 15, and quite possibly, its Apple Watch Series 9 smartwatches, as noted by Investor’s Business Daily.
In addition, consider this. According to analysts at Citi, Apple has “outperformed the S&P 500 during the period between June quarter earnings and the September iPhone announcement every year since 2016. It has climbed 8% on average over that period,” as noted by Barron’s.
Microsoft (MSFT)
Source: Asif Islam / Shutterstock.com
Microsoft (NASDAQ:MSFT) is arguably the most stable of the highly visible AI stocks. The continued emergence of AI, paired with Microsoft’s massive footprint across tech, makes it a can’t-miss investment at this point.
Investors are aware of Microsoft’s early OpenAI investment. That alone has provided the firm with a first-mover advantage that the other tech titans haven’t been able to overcome. In time, that could help Microsoft to improve things, such as “search,” where it continues to lag behind Alphabet (NASDAQ:GOOG)(NASDAQ:GOOGL). That hasn’t happened yet although the firm did try to do just that earlier this year.
One of the clearest opportunities at this point includes CoPilot, the office AI upsell that could add more than $14 billion in annual revenue. Another is Azure which continues to grow rapidly. AI integrations are going to increase the pace of that growth as more firms adopt the technology. Gaming will continue to be important and it’s hard to see any glaring weakness in MSFT shares all things considered.
Long-Term Stocks: Nvidia (NVDA)
Source: Evolf / Shutterstock.com
Nvidia (NASDAQ:NVDA) is quickly becoming a long-term pick for forever stock investors. With strong earnings growth and demand, the company has emerged as one of the top AI chip providers of choice. Revenues of $13.5 billion were higher than just about anyone was expecting: Wall Street had been anticipating $11 billion +/- $0.2 billion. In addition, the results suggest that the AI boom only continues to strengthen. That’s a very positive sign for Nvidia. A lot of skepticism emerged after Nvidia gave that $11 billion guidance back in May. The firm has put those fears to rest. I also believe NVDA’s volatility will be reduced moving forward. It is the leader in AI and that is the biggest opportunity that any firm has had for a long time. Selling is going to be much less likely now.
Realty Income (O)
Source: Shutterstock
Realty Income (NYSE:O) is a retail real estate investment trust (REIT) that could serve as a vital income generator for any portfolio. The firm’s asset base by industry can be seen here. Convenience stores make up the largest chunk of its investment at 11% but it also spans restaurants, big box stores, and pharmacies as well.
Realty Income provides investor income through a dividend that has never been reduced since its inception in 1999. It currently yields 5.4% and is approaching a three-year high as the price-to-earnings (P/E) ratio simultaneously approaches a three-year low. Yield falls as price rises. I think the price will rise because Realty Income’s earnings justify a higher price. Even if that happens, dividends will likely increase based on firm history. Realty Income has successfully produced predictable earnings so continued dividend growth looks likely.
Long-Term Stocks: Costco (COST)
Source: ilzesgimene / Shutterstock.com
Costco (NASDAQ:COST) continues to grow its top-line results at an average of roughly 10% over the past five years. The stock offers growth, a dividend that continues to grow, and a general position that is unassailable.
Better, Oppenheimer analyst Rupesh Parikh believes Costco has one of the most defensible moats in retail. The analyst also raised his target price to $630 a share. Costco emerged as a pandemic play and more recently an inflation play. Consumers are increasingly pinched financially which benefits Costco due to its discounted, bulk good pricing. Inflation may be falling but I get the distinct sense that consumers continue to feel as distressed as they did when inflation numbers were higher. That could increase demand at Costco.
Toyota (TM)
Source: josefkubes / Shutterstock.com
Toyota (NYSE:TM), which is well-known for extremely dependable internal combustion vehicles, is quickly moving into electric vehicles (EVs). With that, it’s one of the primary reasons to believe TM stock is particularly strong at this time.
The company projects to sell 1.5 million EVs by 2026. Yet, it hasn’t gone in as hard as others in that regard. It has long championed hybrid technology. Toyota has also become very good at producing reliable hybrid vehicles in the process. It is the antithesis to the ‘go fast and break things’ mantra that has characterized EV development. I’d bet dollars to dimes that the EVs Toyota does release will be much more reliable than those from its competitors. Why? Because that’s exactly what has happened with its gasoline vehicles and its hybrid vehicles.
Pfizer (PFE)
Source: photobyphm / Shutterstock.com
It’s time to buy shares of Pfizer (NYSE:PFE). Not only is it oversold, the reaction to its post-pandemic business, is overdone.
True, 2023 hasn’t been kind to Pfizer. Revenues have dropped, as we saw with second-quarter numbers. However, most of the negativity appears to have been priced into the stock. Plus, it reportedly has plans to deploy capital as it attempts to find new revenue sources to bring it into a post-pandemic era. To that end, Pfizer plans to introduce nearly 20 new products and product uses in the coming year. It’s a simple investing bet. Pfizer is one of the leading pharma firms globally. It has to do what all pharma firms have to do and find new revenue as champions die. Pfizer’s track record suggests that it’s more likely to be successful than not.
On the date of publication, Alex Sirois 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.
Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks. Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.
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The post 7 Ultimate Buy-and-Hold Stock Picks for Forever Investors 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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Long-Term Stocks: Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple’s (NASDAQ:AAPL) earnings may have been disappointing, but with heavy product demand, and new product releases, its stock price continues to appreciate. Better, on Sept. 12, the company will introduce its iPhone 15, and quite possibly, its Apple Watch Series 9 smartwatches, as noted by Investor’s Business Daily. According to analysts at Citi, Apple has “outperformed the S&P 500 during the period between June quarter earnings and the September iPhone announcement every year since 2016.
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Long-Term Stocks: Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple’s (NASDAQ:AAPL) earnings may have been disappointing, but with heavy product demand, and new product releases, its stock price continues to appreciate. Long-Term Stocks: Nvidia (NVDA) Source: Evolf / Shutterstock.com Nvidia (NASDAQ:NVDA) is quickly becoming a long-term pick for forever stock investors. Long-Term Stocks: Costco (COST) Source: ilzesgimene / Shutterstock.com Costco (NASDAQ:COST) continues to grow its top-line results at an average of roughly 10% over the past five years.
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Long-Term Stocks: Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple’s (NASDAQ:AAPL) earnings may have been disappointing, but with heavy product demand, and new product releases, its stock price continues to appreciate. Long-Term Stocks: Nvidia (NVDA) Source: Evolf / Shutterstock.com Nvidia (NASDAQ:NVDA) is quickly becoming a long-term pick for forever stock investors. Long-Term Stocks: Costco (COST) Source: ilzesgimene / Shutterstock.com Costco (NASDAQ:COST) continues to grow its top-line results at an average of roughly 10% over the past five years.
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Long-Term Stocks: Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple’s (NASDAQ:AAPL) earnings may have been disappointing, but with heavy product demand, and new product releases, its stock price continues to appreciate. The continued emergence of AI, paired with Microsoft’s massive footprint across tech, makes it a can’t-miss investment at this point. The company projects to sell 1.5 million EVs by 2026.
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2023-08-31 00:00:00 UTC
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Best AI Stocks To Buy In September 2023? 2 To Watch
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https://www.nasdaq.com/articles/best-ai-stocks-to-buy-in-september-2023-2-to-watch
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Artificial Intelligence (AI) is a hot topic these days and it’s changing a lot of industries, from healthcare to self-driving cars. Basically, AI is a technology that allows machines to learn and make decisions, kind of like how humans do. This has big implications for businesses and is creating a lot of opportunities for companies to grow and make more money. That’s why the AI industry is expected to keep getting bigger and more influential.
When it comes to the stock market, AI stocks are shares in companies that are heavily involved in AI technology. These companies can range from big tech giants like Google (NASDAQ: GOOGL) and Apple (NASDAQ: AAPL), who use AI for things like data analysis and virtual assistants, to smaller companies focused solely on AI applications, like machine learning or robotics. Investing in AI stocks is seen as a way to cash in on this growing trend, as these companies stand to make a lot of money as AI tech gets more advanced and widespread.
However, investing in AI stocks isn’t a surefire win. Like any investment, there’s a level of risk. AI is still a pretty new field and there are many technical challenges that these companies face. Plus, there’s a lot of competition, which means some companies might not make it in the long run. So, if you’re thinking about investing in AI stocks, it’s crucial to do your own research. This will help you better understand the risks and opportunities in this fast-moving industry. With that being said, let’s look at two AI stocks to keep an eye on in the stock market right now.
AI Stocks To Watch Today
Salesforce Inc. (NYSE: CRM)
Microsoft Corporation (NASDAQ: MSFT)
Salesforce (CRM Stock)
Salesforce Inc. (CRM) is a global leader in customer relationship management (CRM) software, offering cloud-based solutions that help companies better engage with their customers. Serving a wide range of industries from retail to healthcare, Salesforce’s suite of applications covers sales, service, marketing, and more.
Just yesterday, Wednesday, Salesforce announced better-than-expected second-quarter FY 2024 earnings results. Diving in, the company reported Q2 2024 earnings of $2.12 per share, with revenue of $8.60 billion. This is versus Wall Street’s consensus estimates for the quarter which were an EPS of $1.90 on revenue of $7.84 billion. As a result, revenue increased by 11.44% compared to the same period, the prior year.
Over the past 5 trading days, shares of CRM stock have advanced by 8.97%. Meanwhile, during Thursday morning’s trading session, Salesforce stock opened higher on the day so far by 4.28%, trading at $224.40 per share.
Source: TD Ameritrade TOS
[Read More] Good Stocks To Buy Right Now? 3 Quantum Computing Stocks To Know
Microsoft (MSFT Stock)
Next, Microsoft Corporation (MSFT) is a multinational technology company with a diverse range of products and services, including operating systems, productivity software, and cloud computing solutions. It’s best known for its Windows operating system, Microsoft Office suite, and its Azure cloud services.
In July, Microsoft announced its fourth quarter 2023 financial results. Specifically, the tech giant posted earnings of $2.69 per share on revenue of $56.19 billion. For context, this came in better than Wall Street’s consensus estimates for the quarter which were earnings of $2.54 per share, along with revenue of $55.44 billion. Moreover, revenue jumped by 8.34% versus the same period, the previous year.
Over the past 5 trading days, shares of MSFT stock are up 1.97%. While, during Thursday’s mid-morning trading session, Microsoft stock opened slightly lower by 0.29%, trading at $327.83 a share.
Source: TD Ameritrade TOS
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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.
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These companies can range from big tech giants like Google (NASDAQ: GOOGL) and Apple (NASDAQ: AAPL), who use AI for things like data analysis and virtual assistants, to smaller companies focused solely on AI applications, like machine learning or robotics. Artificial Intelligence (AI) is a hot topic these days and it’s changing a lot of industries, from healthcare to self-driving cars. Serving a wide range of industries from retail to healthcare, Salesforce’s suite of applications covers sales, service, marketing, and more.
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These companies can range from big tech giants like Google (NASDAQ: GOOGL) and Apple (NASDAQ: AAPL), who use AI for things like data analysis and virtual assistants, to smaller companies focused solely on AI applications, like machine learning or robotics. AI Stocks To Watch Today Salesforce Inc. (NYSE: CRM) Microsoft Corporation (NASDAQ: MSFT) Salesforce (CRM Stock) Salesforce Inc. (CRM) is a global leader in customer relationship management (CRM) software, offering cloud-based solutions that help companies better engage with their customers. 3 Quantum Computing Stocks To Know Microsoft (MSFT Stock) Next, Microsoft Corporation (MSFT) is a multinational technology company with a diverse range of products and services, including operating systems, productivity software, and cloud computing solutions.
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These companies can range from big tech giants like Google (NASDAQ: GOOGL) and Apple (NASDAQ: AAPL), who use AI for things like data analysis and virtual assistants, to smaller companies focused solely on AI applications, like machine learning or robotics. When it comes to the stock market, AI stocks are shares in companies that are heavily involved in AI technology. AI Stocks To Watch Today Salesforce Inc. (NYSE: CRM) Microsoft Corporation (NASDAQ: MSFT) Salesforce (CRM Stock) Salesforce Inc. (CRM) is a global leader in customer relationship management (CRM) software, offering cloud-based solutions that help companies better engage with their customers.
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These companies can range from big tech giants like Google (NASDAQ: GOOGL) and Apple (NASDAQ: AAPL), who use AI for things like data analysis and virtual assistants, to smaller companies focused solely on AI applications, like machine learning or robotics. When it comes to the stock market, AI stocks are shares in companies that are heavily involved in AI technology. Investing in AI stocks is seen as a way to cash in on this growing trend, as these companies stand to make a lot of money as AI tech gets more advanced and widespread.
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The 3 Most Promising Retirement Stocks to Own Now
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Patient investors have a golden opportunity to look for the top retirement stock picks primed for a robust decade ahead. Persistent economic chatter can rattle even seasoned traders. Still, the goal for those aiming to craft a retirement portfolio is straightforward: Target resilient, retirement-friendly stocks that can weather any storm.
Investing isn’t just about chasing dividends; it’s about betting on companies with robust foundations that can tackle market volatility head-on. Such stalwarts possess stellar balance sheets and an innate ability to shine, irrespective of the broader market dynamics. Hence, if you’re on the hunt for stocks for your retirement portfolio, prioritize firms equipped to survive and thrive amidst any economic backdrop. These three fit the description perfectly.
Apple (AAPL)
Source: askarim / Shutterstock
Regarding tech behemoths, Apple (NASDAQ:AAPL) continues to shine with its groundbreaking innovations. The company’s spectacular business model and the unwavering surge of its stock have consistently drawn the attention of investment moguls such as Warren Buffett. While the world remains enamored with the iPhone, its diversified arsenal of products and unmatched customer loyalty set it apart from the competition. Its unique strengths allow for premium pricing, ensuring a gusher of quarterly cash flows. It’s no wonder Buffett lauds Apple as the crown jewel of his portfolio, making it his investment firm’s most significant holding.
Market titans Paul Tudor Jones and Jim Simons amplified their stakes in the tech giant by triple-digit margins. Moreover, Apple isn’t just about hoarding its earnings. Since 2012, it channeled over $500 billion into share repurchases, and in the last quarter alone, it returned a staggering $24 billion to its shareholders, maintaining a tradition of annually hiking dividends since 2013. Sitting atop a cash war chest worth $62.48 billion and boasting a 0.5% dividend yield with nine consecutive years of growth, Apple continues its reign as an investor’s dream.
Bank of America (BAC)
Source: Shutterstock
This year has been remarkably turbulent for bank stocks, with the sector grappling with the aftershocks of the Signature Bank (OTCMKTS:SBNY) and Silicon Valley Bank (OTCMKTS:SIVBQ) debacles. To rub salt in the wounds, the banking realm has faced additional pressure from prominent credit rating agencies downgrading several entities. However, amid this financial storm, Bank of America (NYSE:BAC), the nation’s second-largest lender, seems to have weathered weather the storm effectively while trading near its 52-week low prices.
Surprisingly, this dip in Bank of America’s trajectory comes after the financial giant surpassed Wall Street’s second-quarter estimates across both lines. With elevated interest rates propelling its income, the bank reported an earnings-per-share of 88 cents, outshining the anticipated 84 cents. The quarterly revenue, too, was at an impressive $25.2 billion against the projected $24.9 billion. However, despite these optimistic numbers, BAC has waved a cautionary flag about a deceleration in its loan and deposit growth amidst the cooling U.S. economy.
Nevertheless, BAC’s robust shareholder rewards program offers confidence. The bank boasts an enviable track record of dividend payments spanning 23 years, with an impressive nine consecutive years of payout surges, dwarfing the sector’s median of a mere two years. Furthermore, it offers a remarkable 3.4% yield complemented by a 5-year growth rate of 12.9%.
NextEra Energy (NEE)
Source: IgorGolovniov/Shutterstock.com
NextEra Energy (NYSE:NEE) is forging an optimistic path into the future, effectively replacing harmful fossil fuels with cleaner alternatives such as wind and solar. Its dedication to a sustainable world involves generating power that respects our planet’s ecological balance.
Over the years, it has operated a remarkably consistent business, generating strong growth across both lines. Moreover, its second-quarter financials reflect its determination to push forward despite market headwinds, showcasing an astounding profit of $2.795 billion, nearly doubling the previous year’s $1.38 billion.
Beyond financial success, NextEra is diving into pioneering territory, partnering with CF Industries Holdings (NYSE:CF) to explore the vast potential of hydrogen as a green energy source. The collaboration could potentially usher in a new dawn for renewable power.
More importantly, NEE is a dividend aristocrat for retirement stock investors, having raised its payouts for the past 26 consecutive years. Yielding an impressive 2.8%, it boasts a 5-year dividend growth rate of 11.6%.
On the date of publication, Muslim Farooque did not hold (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.
Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.
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The post The 3 Most Promising Retirement Stocks 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: askarim / Shutterstock Regarding tech behemoths, Apple (NASDAQ:AAPL) continues to shine with its groundbreaking innovations. The company’s spectacular business model and the unwavering surge of its stock have consistently drawn the attention of investment moguls such as Warren Buffett. Sitting atop a cash war chest worth $62.48 billion and boasting a 0.5% dividend yield with nine consecutive years of growth, Apple continues its reign as an investor’s dream.
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Apple (AAPL) Source: askarim / Shutterstock Regarding tech behemoths, Apple (NASDAQ:AAPL) continues to shine with its groundbreaking innovations. Sitting atop a cash war chest worth $62.48 billion and boasting a 0.5% dividend yield with nine consecutive years of growth, Apple continues its reign as an investor’s dream. NextEra Energy (NEE) Source: IgorGolovniov/Shutterstock.com NextEra Energy (NYSE:NEE) is forging an optimistic path into the future, effectively replacing harmful fossil fuels with cleaner alternatives such as wind and solar.
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Apple (AAPL) Source: askarim / Shutterstock Regarding tech behemoths, Apple (NASDAQ:AAPL) continues to shine with its groundbreaking innovations. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Patient investors have a golden opportunity to look for the top retirement stock picks primed for a robust decade ahead. Sitting atop a cash war chest worth $62.48 billion and boasting a 0.5% dividend yield with nine consecutive years of growth, Apple continues its reign as an investor’s dream.
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Apple (AAPL) Source: askarim / Shutterstock Regarding tech behemoths, Apple (NASDAQ:AAPL) continues to shine with its groundbreaking innovations. Hence, if you’re on the hunt for stocks for your retirement portfolio, prioritize firms equipped to survive and thrive amidst any economic backdrop. Sitting atop a cash war chest worth $62.48 billion and boasting a 0.5% dividend yield with nine consecutive years of growth, Apple continues its reign as an investor’s dream.
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The 7 Best Vanguard ETFs for 2023 [Build a Low-Cost Portfolio]
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https://www.nasdaq.com/articles/the-7-best-vanguard-etfs-for-2023-build-a-low-cost-portfolio-0
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Vanguard exchange-traded funds (ETFs) are among the most popular funds out there, and for good reason. Investors of all stripes can make good use of this asset manager’s wide variety of investment strategies—offered up in simple, cost-effective ETFs.
The best Vanguard ETFs are big and “liquid,” meaning they are easy to buy and sell. They’re also a key part of any low-cost investing strategy; that’s because most Vanguard ETFs are inexpensive index funds that are frequently the cheapest alternatives in the marketplace.
So, if you’re trying to build a portfolio without getting drained by fees, read on as we evaluate some of the best Vanguard ETFs for 2023. We’ve got something for everyone—whether you care about emerging markets or developed markets, small-cap stocks for growth or solid blue-chip stocks for the dividends, there’s a Vanguard ETF out there for you.
We’ll start with a little ETF education, then move on to the picks.
Disclaimer: This article does not constitute individualized investment advice. These funds appear for your consideration and not as investment recommendations. Act at your own discretion.
Related: The Best Vanguard Index Funds for Beginners
What Is an ETF?
We’ll start with the most basic of basics: “ETF” is an acronym for an “exchange-traded fund.” In plain English, that means it’s a grouping of different assets (stocks, bonds, etc.) into a fund—one that’s listed on an exchange, just like individual stocks. As such, an ETF can fluctuate in price across the trading day according to the value of those underlying assets.
ETFs vs. mutual funds
You might be familiar with this concept of bundled assets because that’s how traditional mutual funds work. But with mutual funds, all buying and selling happens just once each trading day, after the markets close at 4 p.m. ETFs, on the other hand, are available to buy and sell across the trading day.
ETFs are also structured differently than mutual funds and their other cousins, closed-end funds (CEFs), which tends to make them a little more tax-efficient. Also, unlike mutual funds, ETFs don’t have minimum investment thresholds—the minimum cost is just one share (or less if your broker offers fractional shares).
Lastly, ETFs tend to have cheaper fees than mutual funds, on average, but that’s because most ETFs are passively managed index funds, whereas most mutual funds are run by one or more human managers. But there are more expensive actively managed ETFs and cheap index mutual funds.
Why Vanguard?
Vanguard is the No. 2 asset manager in the world with more than $8 trillion in assets under management, trailing peer BlackRock by only a few hundred billion dollars, according to data from the Sovereign Wealth Fund Institute. And with that size comes a massive breadth of investment options, as well as efficiencies of scale that are difficult for smaller investment companies to match.
It’s also worth noting that the best Vanguard ETFs are often low-cost, passive index funds. That means they are not aggressive vehicles that depend on overpaid managers to outperform the market, but rather “set it and forget it” funds tied to a fixed index of assets. This less flashy but more consistent approach has generally been shown to provide better long-term results.
The Best Vanguard ETFs
It’s important to understand that there is a massive universe of exchange-traded funds out there. So what makes the best Vanguard ETFs stand out over other ETFs?
A few factors include:
Relative fees, not just low fees. After all, just because a fund only costs you several dollars per year doesn’t mean there isn’t an even cheaper alternative out there.
Long-term potential. For the purpose of this article, we’re not talking about tactical or short-term bets, but rather foundational investments for the long haul.
Different approaches for different investors. Also for the purpose of this article, we’re not looking for a single one-size-fits-all Vanguard ETF. Instead, the list is intended to be a menu of differentiated options that you can pick and choose from, based on your personal goals.
One final word of caution: Every investment carries risk, and even the best funds can lose you money if Wall Street suffers widespread declines.
With that disclaimer out of the way, let’s jump into the first Vanguard ETF on our list:
Best Vanguard ETF #1: Vanguard Total Stock Market ETF (VTI)
Type: Total stock market
Assets under management: $323.7 billion
Expense ratio: $0.03%, or $3 per year for every $10,000 invested
Dividend yield: 1.5%
As the name implies, the Vanguard Total Stock Market ETF (VTI) is a one-stop shop for investors who want exposure to the totality of the U.S. stock market in a single investment. All told, there are nearly 4,000 different stocks that make up this fund to represent all sectors and all sizes of companies.
One important factor to point out, however, is that the Vanguard Total Stock Market ETF does not treat every component equally. It’s weighted most heavily toward the largest stocks, with trillion-dollar tech giant Apple (AAPL) representing more than 6% of the entire fund by itself.
But while it’s a bit top-heavy, that’s common among the cheapest index funds, regardless of the index they track. And it remains an elegantly simple solution for investors who just want to buy … well, the total stock market!
You’d also be in good company. This is one of the top five exchange-traded funds in the U.S. by assets. So while it’s not particularly sophisticated, it’s still a favorite of investors who think long-term, buy-and-hold strategies are preferable to more complex options.
Learn more about VTI at the Vanguard provider site.
Related: 11 Best Stock Portfolio Tracking Apps [Stock Portfolio Trackers]
Best Vanguard ETF #2: Vanguard Dividend Appreciation ETF (VIG)
Type: Dividend-growth stocks
Assets under management: $69.5 billion
Expense ratio: 0.06%, or $6 per year for every $10,000 invested
Dividend yield: 1.9%
One of the popular ways for investors to reduce their risk profile in the stock market is to lean on dividend stocks. Some companies pay a portion of their profits back to shareholders in the form of cash distributions, called “dividends.” Dividends can provide another source of income aside from price returns.
But also, stocks that pay dividends regularly tend to produce significant, reliable profits that they can afford to share. That implies a certain level of quality. For investors who want to take that level of quality one step further, there’s the Vanguard Dividend Appreciation ETF (VIG), which is composed of dividend stocks with track records of growing those payments over time.
Dividend growth is an important measure of health, but it’s also an important factor in compound returns over time. Your initial investment might be fixed, but the dividends should get larger and larger over time, meaning you could find yourself reaping a massive payday years down the road if you’re patient enough to buy and hold.
VIG’s focused list of about 300 total stocks includes insurance giant UnitedHeath Group (UNH), consumer-health and pharmaceutical company Johnson & Johnson (JNJ), and megabank JPMorganChase (JPM), to name a few.
If you want to focus on rock-solid companies like this, this Vanguard ETF is worth a look.
Learn more about VIG at the Vanguard provider site.
Related: 20 Best Investing Research & Stock Analysis Websites
Best Vanguard ETF #3: Vanguard Real Estate ETF (VNQ)
Type: Sector (Real estate)
Assets under management: $32.5 billion
Expense ratio: 0.12%, or $12 per year for every $10,000 invested
Dividend yield: 4.4%
You might have noticed that while VIG’s holdings might offer lower risk and growing payouts, the current dividend yield isn’t particularly impressive. Some investors prefer more yield up front; for those, one option is the Vanguard Real Estate ETF (VNQ).
This is the best Vanguard ETF for investing in real estate. VNQ holds real estate investment trusts, or REITs—a special class of company that enjoys operational tax breaks to accommodate the capital-intensive nature of real estate and property management. However, in exchange for those tax breaks, REITs must deliver 90% of taxable income back to their shareholders. This typically results in greater-than-average dividends. And the best REITs, which are able to produce the most regular and growing cash flows from their properties, are as consistent an investment as you’ll find on Wall Street.
The Vanguard Real Estate ETF currently holds about 170 REITs, including everything from industrial warehouse giant Prologis (PLD) to telecom tower operator American Tower (AMT) to mall operator Simon Property Group (SPG). And best of all, this portfolio collectively delivers a yield that is more than twice that of the previous fund, as well as the broader market.
Most of us can’t afford to buy a second home or an office building to rent out to tenants directly. But ETFs like VNQ allow us to tap into the big income potential of the real estate market.
Learn more about VNQ at the Vanguard provider site.
Related: 11 Best Stock Trading Apps [Free + Paid]
Best Vanguard ETF #4: Vanguard Information Technology ETF (VGT)
Type: Sector (Technology)
Assets under management: $54.3 billion
Expense ratio: $0.10%, or $10 per year for every $10,000 invested
Dividend yield: 0.7%
The flip side of low-risk dividend stocks and REITs are high-growth companies that are focused on investing in future opportunities rather than sweeping their profits back to shareholders.
That’s what the Vanguard Information Technology ETF (VGT) has to offer.
VGT’s portfolio is composed of roughly 370 different stocks in the sector, ranging from the big names you know and love like Microsoft (MSFT) and Nvidia (NVDA) to smaller software developers, chipmakers, and other growth-oriented technology firms.
Tech doesn’t always come out on top—the sector struggled in 2022, with even the biggest and most established names in Silicon Valley facing serious headwinds. But when times are good, technology can outperform in a big way.
If you’re taking a long view, it’s difficult to imagine a future where high-tech stocks are not among the biggest winners—and this Vanguard ETF plays into this trend.
Learn more about VGT on the Vanguard provider site.
Related: 14 Best Stock Picking Services, Subscriptions, Advisors & Sites
Best Vanguard ETF #5: Vanguard Total International Stock ETF (VXUS)
Type: International stock
Assets under management: $60.0 billion
Expense ratio: 0.07%, or $7 per year for every $10,000 invested
Dividend yield: 2.8%
So far we’ve only covered different ways to slice up the U.S. stock market. However, there’s a great big universe of companies out there beyond our borders.
That’s where the Vanguard Total International Stock ETF (VXUS) comes in.
This Vanguard ETF is an “ex-U.S.” offering, meaning it is designed to exclude companies in the United States to ensure the holdings don’t overlap with any domestic stock ETFs. However, VXUS’s massive portfolio of nearly 8,000 stocks still includes plenty of familiar names, including Japanese automaker Toyota (TM), Swiss consumer products giant Nestlé (NSRGY) and Korean electronics giant Samsung, to name a few.
In an interconnected global economy, it’s a bit naive to think that multinational companies only rise and fall based on their local economies. That’s true for big U.S. names as well as the international giants that lead this Vanguard ETF. So if you want international diversification to truly play broad economic trends, consider layering VXUS into your portfolio.
Learn more about VXUS at the Vanguard provider site.
Related: 21 Best Stock Research & Analysis Apps, Tools and Sites
Best Vanguard ETF #6: Vanguard FTSE Emerging Markets ETF (VWO)
Type: Emerging markets
Assets under management: $77.1 billion
Expense ratio: 0.08%, or $8 per year for every $10,000 invested
Dividend yield: 3.3%
One potential downside to VXUS is that it’s heavy in so-called developed markets—more established but also slower-growth economies.
However, if you’re looking for a way to invest in higher-growth international names in markets like China and South America, the best Vanguard ETF for you would likely be the Vanguard FTSE Emerging Markets ETF (VWO).
This exchange-traded fund is a simple option that allows investors to tap into emerging markets in one simple, diversified holding. All told, there are some 5,600 stocks in VWO at present. The top regions represented are China (33% of assets), India (18%), Taiwan (17%), and Brazil (7%).
A few of VWO’s holdings—blue chips like Asia e-commerce giant Alibaba Group (BABA), for instance—are accessible to most investors. But many smaller components only trade “over the counter” in the U.S., or worse, only on foreign exchanges, creating a lot of headaches for self-directed investors. This Vanguard ETF patches you into all of these stocks in one efficient, inexpensive bundle.
Learn more about VWO at the Vanguard provider site.
Related: 11 Best Stock Advisor Websites & Services to Seize Alpha
Best Vanguard ETF #7: Vanguard Total Bond Market ETF (BND)
Type: Fixed income
Assets under management: $95.4 billion
Expense ratio: 0.03%, or $3 per year for every $10,000 invested
SEC yield: 4.6%*
It wouldn’t be fair to just focus on Vanguard ETFs that hold stocks, given the massive rising interest rates we’ve seen over the last year or so. With the U.S. Federal Reserve steadily ratcheting up rates to fight inflation, the once-sleepy bond market has seen renewed interest as bond yields are becoming more attractive to investors.
Of course, bonds come in all shapes and sizes—from U.S. government bonds, to high-quality corporate bonds from top blue-chip companies, to riskier “junk” bonds from borrowers who are facing real challenges to operations. So if you’re already confused by the thousands of options in the stock market, looking into bonds on top of that would probably be downright overwhelming.
Thankfully, Vanguard Total Bond Market ETF (BND) is the best Vanguard ETF for diversified exposure to all these categories (except for the riskiest bonds out there). BND has a gigantic portfolio of more than 17,000 “investment-grade” bonds that boast high credit quality, so you get a ton of diversification as well as a ton of peace of mind.
Bonds don’t deliver the quick gains that stocks can. But they offer steady and reliable income—which for many investors, is worth the lower potential reward to provide a lower overall risk profile to their portfolio.
* SEC yield reflects the interest earned across the most recent 30-day period. This is a standard measure for funds holding bonds and preferred stocks.
Learn more about BND at the Vanguard provider site.
Related: 19 Best High-Yield Investments [Safe Options Right Now]
Learn More About These and Other Funds With Morningstar Investor
If you're buying a fund you plan on holding for years (if not forever), you want to know you're making the right selection. And Morningstar Investor can help you do that.
Morningstar Investor provides a wealth of information and comparable data points about mutual funds and ETFs—fees, risk, portfolio composition, performance, distributions, and more. Morningstar experts also provide detailed explanations and analysis of many of the funds the site covers.
With Morningstar Investor, you'll enjoy a wealth of features, including Morningstar Portfolio X-Ray®, stock and fund watchlists, news and commentary, screeners, and more. And you can try it before you buy it. Right now, Morningstar Investor is offering a free seven-day trial. You can check out the current deal, as well as discounted rates for students and teachers, in our details box below.
Frequently Asked Questions (FAQs)
Are ETFs the same thing as index funds?
Not always. Most ETFs are index funds, meaning they are tied to a fixed “index” or list of securities. However, mutual can also be tied to indexes and thus be categorized as index funds, too. Similarly, both ETFs and mutual funds can instead follow a more dynamic or “active” list of investments. It can be confusing sometimes, but the bottom line is you should always read the investment materials an asset manager provides and look for a description. In the case of Vanguard, you’ll find a heading labeled “investment style” at the top of most ETF pages that will clearly identify whether funds are index funds, or active funds.
Does Vanguard offer a minimum-volatility ETF?
Yes: The Vanguard U.S. Minimum Volatility ETF (VFMV). But investors should note two things about this ETF:
This is not an index fund. VFMV is actively managed by the Vanguard Quantitative Equity Group. Despite that, it does charge a fairly low fee of just 0.13%, or $13 annually for every $10,000 invested.
This is a minimum-volatility ETF, which is different than a low-volatility ETF. Min-vol funds typically try to reduce volatility while still maintaining some similarity to an underlying index–in this case, VFMV management will try to pick stocks they expect will have lower volatility than the market, but still hold stocks of varying sizes (large, mid, and small), from different industries and groups. Low-vol ETFs, however, typically invest in stocks based on backward-looking measures of volatility, and often aim for the lowest volatility possible without trying to mimic an index. For instance, a min-vol market ETF might be required to hold at least a 5% weight in all 11 sectors; a low-vol market ETF might hold the lowest-volatility stocks within the market, and as a result, some sectors simply might not be included.
Related:
The 7 Best Fidelity Index Funds for Beginners
Best Brokerage Account Sign-Up Bonuses, Promotions and Deals
How to Invest as a Teenager [Start Investing as a Minor Under 18]
12 Stocks for Kids: Kid-Friendly Stocks to Begin Investing
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’s weighted most heavily toward the largest stocks, with trillion-dollar tech giant Apple (AAPL) representing more than 6% of the entire fund by itself. Some companies pay a portion of their profits back to shareholders in the form of cash distributions, called “dividends.” Dividends can provide another source of income aside from price returns. The flip side of low-risk dividend stocks and REITs are high-growth companies that are focused on investing in future opportunities rather than sweeping their profits back to shareholders.
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It’s weighted most heavily toward the largest stocks, with trillion-dollar tech giant Apple (AAPL) representing more than 6% of the entire fund by itself. Related: 11 Best Stock Portfolio Tracking Apps [Stock Portfolio Trackers] Best Vanguard ETF #2: Vanguard Dividend Appreciation ETF (VIG) Related: 20 Best Investing Research & Stock Analysis Websites Best Vanguard ETF #3: Vanguard Real Estate ETF (VNQ)
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It’s weighted most heavily toward the largest stocks, with trillion-dollar tech giant Apple (AAPL) representing more than 6% of the entire fund by itself. With that disclaimer out of the way, let’s jump into the first Vanguard ETF on our list: Best Vanguard ETF #1: Vanguard Total Stock Market ETF (VTI) Related: 11 Best Stock Portfolio Tracking Apps [Stock Portfolio Trackers] Best Vanguard ETF #2: Vanguard Dividend Appreciation ETF (VIG)
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It’s weighted most heavily toward the largest stocks, with trillion-dollar tech giant Apple (AAPL) representing more than 6% of the entire fund by itself. Lastly, ETFs tend to have cheaper fees than mutual funds, on average, but that’s because most ETFs are passively managed index funds, whereas most mutual funds are run by one or more human managers. The Best Vanguard ETFs
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The 7 Best Vanguard ETFs for 2023 [Build a Low-Cost Portfolio]
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AAPL
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https://www.nasdaq.com/articles/the-7-best-vanguard-etfs-for-2023-build-a-low-cost-portfolio-1
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Vanguard exchange-traded funds (ETFs) are among the most popular funds out there, and for good reason. Investors of all stripes can make good use of this asset manager’s wide variety of investment strategies—offered up in simple, cost-effective ETFs.
The best Vanguard ETFs are big and “liquid,” meaning they are easy to buy and sell. They’re also a key part of any low-cost investing strategy; that’s because most Vanguard ETFs are inexpensive index funds that are frequently the cheapest alternatives in the marketplace.
So, if you’re trying to build a portfolio without getting drained by fees, read on as we evaluate some of the best Vanguard ETFs for 2023. We’ve got something for everyone—whether you care about emerging markets or developed markets, small-cap stocks for growth or solid blue-chip stocks for the dividends, there’s a Vanguard ETF out there for you.
We’ll start with a little ETF education, then move on to the picks.
Disclaimer: This article does not constitute individualized investment advice. These funds appear for your consideration and not as investment recommendations. Act at your own discretion.
Related: The Best Vanguard Index Funds for Beginners
What Is an ETF?
We’ll start with the most basic of basics: “ETF” is an acronym for an “exchange-traded fund.” In plain English, that means it’s a grouping of different assets (stocks, bonds, etc.) into a fund—one that’s listed on an exchange, just like individual stocks. As such, an ETF can fluctuate in price across the trading day according to the value of those underlying assets.
ETFs vs. mutual funds
You might be familiar with this concept of bundled assets because that’s how traditional mutual funds work. But with mutual funds, all buying and selling happens just once each trading day, after the markets close at 4 p.m. ETFs, on the other hand, are available to buy and sell across the trading day.
ETFs are also structured differently than mutual funds and their other cousins, closed-end funds (CEFs), which tends to make them a little more tax-efficient. Also, unlike mutual funds, ETFs don’t have minimum investment thresholds—the minimum cost is just one share (or less if your broker offers fractional shares).
Lastly, ETFs tend to have cheaper fees than mutual funds, on average, but that’s because most ETFs are passively managed index funds, whereas most mutual funds are run by one or more human managers. But there are more expensive actively managed ETFs and cheap index mutual funds.
Why Vanguard?
Vanguard is the No. 2 asset manager in the world with more than $8 trillion in assets under management, trailing peer BlackRock by only a few hundred billion dollars, according to data from the Sovereign Wealth Fund Institute. And with that size comes a massive breadth of investment options, as well as efficiencies of scale that are difficult for smaller investment companies to match.
It’s also worth noting that the best Vanguard ETFs are often low-cost, passive index funds. That means they are not aggressive vehicles that depend on overpaid managers to outperform the market, but rather “set it and forget it” funds tied to a fixed index of assets. This less flashy but more consistent approach has generally been shown to provide better long-term results.
The Best Vanguard ETFs
It’s important to understand that there is a massive universe of exchange-traded funds out there. So what makes the best Vanguard ETFs stand out over other ETFs?
A few factors include:
Relative fees, not just low fees. After all, just because a fund only costs you several dollars per year doesn’t mean there isn’t an even cheaper alternative out there.
Long-term potential. For the purpose of this article, we’re not talking about tactical or short-term bets, but rather foundational investments for the long haul.
Different approaches for different investors. Also for the purpose of this article, we’re not looking for a single one-size-fits-all Vanguard ETF. Instead, the list is intended to be a menu of differentiated options that you can pick and choose from, based on your personal goals.
One final word of caution: Every investment carries risk, and even the best funds can lose you money if Wall Street suffers widespread declines.
With that disclaimer out of the way, let’s jump into the first Vanguard ETF on our list:
Best Vanguard ETF #1: Vanguard Total Stock Market ETF (VTI)
Type: Total stock market
Assets under management: $323.7 billion
Expense ratio: $0.03%, or $3 per year for every $10,000 invested
Dividend yield: 1.5%
As the name implies, the Vanguard Total Stock Market ETF (VTI) is a one-stop shop for investors who want exposure to the totality of the U.S. stock market in a single investment. All told, there are nearly 4,000 different stocks that make up this fund to represent all sectors and all sizes of companies.
One important factor to point out, however, is that the Vanguard Total Stock Market ETF does not treat every component equally. It’s weighted most heavily toward the largest stocks, with trillion-dollar tech giant Apple (AAPL) representing more than 6% of the entire fund by itself.
But while it’s a bit top-heavy, that’s common among the cheapest index funds, regardless of the index they track. And it remains an elegantly simple solution for investors who just want to buy … well, the total stock market!
You’d also be in good company. This is one of the top five exchange-traded funds in the U.S. by assets. So while it’s not particularly sophisticated, it’s still a favorite of investors who think long-term, buy-and-hold strategies are preferable to more complex options.
Learn more about VTI at the Vanguard provider site.
Related: 11 Best Stock Portfolio Tracking Apps [Stock Portfolio Trackers]
Best Vanguard ETF #2: Vanguard Dividend Appreciation ETF (VIG)
Type: Dividend-growth stocks
Assets under management: $69.5 billion
Expense ratio: 0.06%, or $6 per year for every $10,000 invested
Dividend yield: 1.9%
One of the popular ways for investors to reduce their risk profile in the stock market is to lean on dividend stocks. Some companies pay a portion of their profits back to shareholders in the form of cash distributions, called “dividends.” Dividends can provide another source of income aside from price returns.
But also, stocks that pay dividends regularly tend to produce significant, reliable profits that they can afford to share. That implies a certain level of quality. For investors who want to take that level of quality one step further, there’s the Vanguard Dividend Appreciation ETF (VIG), which is composed of dividend stocks with track records of growing those payments over time.
Dividend growth is an important measure of health, but it’s also an important factor in compound returns over time. Your initial investment might be fixed, but the dividends should get larger and larger over time, meaning you could find yourself reaping a massive payday years down the road if you’re patient enough to buy and hold.
VIG’s focused list of about 300 total stocks includes insurance giant UnitedHeath Group (UNH), consumer-health and pharmaceutical company Johnson & Johnson (JNJ), and megabank JPMorganChase (JPM), to name a few.
If you want to focus on rock-solid companies like this, this Vanguard ETF is worth a look.
Learn more about VIG at the Vanguard provider site.
Related: 20 Best Investing Research & Stock Analysis Websites
Best Vanguard ETF #3: Vanguard Real Estate ETF (VNQ)
Type: Sector (Real estate)
Assets under management: $32.5 billion
Expense ratio: 0.12%, or $12 per year for every $10,000 invested
Dividend yield: 4.4%
You might have noticed that while VIG’s holdings might offer lower risk and growing payouts, the current dividend yield isn’t particularly impressive. Some investors prefer more yield up front; for those, one option is the Vanguard Real Estate ETF (VNQ).
This is the best Vanguard ETF for investing in real estate. VNQ holds real estate investment trusts, or REITs—a special class of company that enjoys operational tax breaks to accommodate the capital-intensive nature of real estate and property management. However, in exchange for those tax breaks, REITs must deliver 90% of taxable income back to their shareholders. This typically results in greater-than-average dividends. And the best REITs, which are able to produce the most regular and growing cash flows from their properties, are as consistent an investment as you’ll find on Wall Street.
The Vanguard Real Estate ETF currently holds about 170 REITs, including everything from industrial warehouse giant Prologis (PLD) to telecom tower operator American Tower (AMT) to mall operator Simon Property Group (SPG). And best of all, this portfolio collectively delivers a yield that is more than twice that of the previous fund, as well as the broader market.
Most of us can’t afford to buy a second home or an office building to rent out to tenants directly. But ETFs like VNQ allow us to tap into the big income potential of the real estate market.
Learn more about VNQ at the Vanguard provider site.
Related: 11 Best Stock Trading Apps [Free + Paid]
Best Vanguard ETF #4: Vanguard Information Technology ETF (VGT)
Type: Sector (Technology)
Assets under management: $54.3 billion
Expense ratio: $0.10%, or $10 per year for every $10,000 invested
Dividend yield: 0.7%
The flip side of low-risk dividend stocks and REITs are high-growth companies that are focused on investing in future opportunities rather than sweeping their profits back to shareholders.
That’s what the Vanguard Information Technology ETF (VGT) has to offer.
VGT’s portfolio is composed of roughly 370 different stocks in the sector, ranging from the big names you know and love like Microsoft (MSFT) and Nvidia (NVDA) to smaller software developers, chipmakers, and other growth-oriented technology firms.
Tech doesn’t always come out on top—the sector struggled in 2022, with even the biggest and most established names in Silicon Valley facing serious headwinds. But when times are good, technology can outperform in a big way.
If you’re taking a long view, it’s difficult to imagine a future where high-tech stocks are not among the biggest winners—and this Vanguard ETF plays into this trend.
Learn more about VGT on the Vanguard provider site.
Related: 14 Best Stock Picking Services, Subscriptions, Advisors & Sites
Best Vanguard ETF #5: Vanguard Total International Stock ETF (VXUS)
Type: International stock
Assets under management: $60.0 billion
Expense ratio: 0.07%, or $7 per year for every $10,000 invested
Dividend yield: 2.8%
So far we’ve only covered different ways to slice up the U.S. stock market. However, there’s a great big universe of companies out there beyond our borders.
That’s where the Vanguard Total International Stock ETF (VXUS) comes in.
This Vanguard ETF is an “ex-U.S.” offering, meaning it is designed to exclude companies in the United States to ensure the holdings don’t overlap with any domestic stock ETFs. However, VXUS’s massive portfolio of nearly 8,000 stocks still includes plenty of familiar names, including Japanese automaker Toyota (TM), Swiss consumer products giant Nestlé (NSRGY) and Korean electronics giant Samsung, to name a few.
In an interconnected global economy, it’s a bit naive to think that multinational companies only rise and fall based on their local economies. That’s true for big U.S. names as well as the international giants that lead this Vanguard ETF. So if you want international diversification to truly play broad economic trends, consider layering VXUS into your portfolio.
Learn more about VXUS at the Vanguard provider site.
Related: 21 Best Stock Research & Analysis Apps, Tools and Sites
Best Vanguard ETF #6: Vanguard FTSE Emerging Markets ETF (VWO)
Type: Emerging markets
Assets under management: $77.1 billion
Expense ratio: 0.08%, or $8 per year for every $10,000 invested
Dividend yield: 3.3%
One potential downside to VXUS is that it’s heavy in so-called developed markets—more established but also slower-growth economies.
However, if you’re looking for a way to invest in higher-growth international names in markets like China and South America, the best Vanguard ETF for you would likely be the Vanguard FTSE Emerging Markets ETF (VWO).
This exchange-traded fund is a simple option that allows investors to tap into emerging markets in one simple, diversified holding. All told, there are some 5,600 stocks in VWO at present. The top regions represented are China (33% of assets), India (18%), Taiwan (17%), and Brazil (7%).
A few of VWO’s holdings—blue chips like Asia e-commerce giant Alibaba Group (BABA), for instance—are accessible to most investors. But many smaller components only trade “over the counter” in the U.S., or worse, only on foreign exchanges, creating a lot of headaches for self-directed investors. This Vanguard ETF patches you into all of these stocks in one efficient, inexpensive bundle.
Learn more about VWO at the Vanguard provider site.
Related: 11 Best Stock Advisor Websites & Services to Seize Alpha
Best Vanguard ETF #7: Vanguard Total Bond Market ETF (BND)
Type: Fixed income
Assets under management: $95.4 billion
Expense ratio: 0.03%, or $3 per year for every $10,000 invested
SEC yield: 4.6%*
It wouldn’t be fair to just focus on Vanguard ETFs that hold stocks, given the massive rising interest rates we’ve seen over the last year or so. With the U.S. Federal Reserve steadily ratcheting up rates to fight inflation, the once-sleepy bond market has seen renewed interest as bond yields are becoming more attractive to investors.
Of course, bonds come in all shapes and sizes—from U.S. government bonds, to high-quality corporate bonds from top blue-chip companies, to riskier “junk” bonds from borrowers who are facing real challenges to operations. So if you’re already confused by the thousands of options in the stock market, looking into bonds on top of that would probably be downright overwhelming.
Thankfully, Vanguard Total Bond Market ETF (BND) is the best Vanguard ETF for diversified exposure to all these categories (except for the riskiest bonds out there). BND has a gigantic portfolio of more than 17,000 “investment-grade” bonds that boast high credit quality, so you get a ton of diversification as well as a ton of peace of mind.
Bonds don’t deliver the quick gains that stocks can. But they offer steady and reliable income—which for many investors, is worth the lower potential reward to provide a lower overall risk profile to their portfolio.
* SEC yield reflects the interest earned across the most recent 30-day period. This is a standard measure for funds holding bonds and preferred stocks.
Learn more about BND at the Vanguard provider site.
Related: 19 Best High-Yield Investments [Safe Options Right Now]
Learn More About These and Other Funds With Morningstar Investor
If you're buying a fund you plan on holding for years (if not forever), you want to know you're making the right selection. And Morningstar Investor can help you do that.
Morningstar Investor provides a wealth of information and comparable data points about mutual funds and ETFs—fees, risk, portfolio composition, performance, distributions, and more. Morningstar experts also provide detailed explanations and analysis of many of the funds the site covers.
With Morningstar Investor, you'll enjoy a wealth of features, including Morningstar Portfolio X-Ray®, stock and fund watchlists, news and commentary, screeners, and more. And you can try it before you buy it. Right now, Morningstar Investor is offering a free seven-day trial. You can check out the current deal, as well as discounted rates for students and teachers, in our details box below.
Frequently Asked Questions (FAQs)
Are ETFs the same thing as index funds?
Not always. Most ETFs are index funds, meaning they are tied to a fixed “index” or list of securities. However, mutual can also be tied to indexes and thus be categorized as index funds, too. Similarly, both ETFs and mutual funds can instead follow a more dynamic or “active” list of investments. It can be confusing sometimes, but the bottom line is you should always read the investment materials an asset manager provides and look for a description. In the case of Vanguard, you’ll find a heading labeled “investment style” at the top of most ETF pages that will clearly identify whether funds are index funds, or active funds.
Does Vanguard offer a minimum-volatility ETF?
Yes: The Vanguard U.S. Minimum Volatility ETF (VFMV). But investors should note two things about this ETF:
This is not an index fund. VFMV is actively managed by the Vanguard Quantitative Equity Group. Despite that, it does charge a fairly low fee of just 0.13%, or $13 annually for every $10,000 invested.
This is a minimum-volatility ETF, which is different than a low-volatility ETF. Min-vol funds typically try to reduce volatility while still maintaining some similarity to an underlying index–in this case, VFMV management will try to pick stocks they expect will have lower volatility than the market, but still hold stocks of varying sizes (large, mid, and small), from different industries and groups. Low-vol ETFs, however, typically invest in stocks based on backward-looking measures of volatility, and often aim for the lowest volatility possible without trying to mimic an index. For instance, a min-vol market ETF might be required to hold at least a 5% weight in all 11 sectors; a low-vol market ETF might hold the lowest-volatility stocks within the market, and as a result, some sectors simply might not be included.
Related:
The 7 Best Fidelity Index Funds for Beginners
Best Brokerage Account Sign-Up Bonuses, Promotions and Deals
How to Invest as a Teenager [Start Investing as a Minor Under 18]
12 Stocks for Kids: Kid-Friendly Stocks to Begin Investing
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’s weighted most heavily toward the largest stocks, with trillion-dollar tech giant Apple (AAPL) representing more than 6% of the entire fund by itself. Some companies pay a portion of their profits back to shareholders in the form of cash distributions, called “dividends.” Dividends can provide another source of income aside from price returns. The flip side of low-risk dividend stocks and REITs are high-growth companies that are focused on investing in future opportunities rather than sweeping their profits back to shareholders.
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It’s weighted most heavily toward the largest stocks, with trillion-dollar tech giant Apple (AAPL) representing more than 6% of the entire fund by itself. Related: 11 Best Stock Portfolio Tracking Apps [Stock Portfolio Trackers] Best Vanguard ETF #2: Vanguard Dividend Appreciation ETF (VIG) Related: 20 Best Investing Research & Stock Analysis Websites Best Vanguard ETF #3: Vanguard Real Estate ETF (VNQ)
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It’s weighted most heavily toward the largest stocks, with trillion-dollar tech giant Apple (AAPL) representing more than 6% of the entire fund by itself. With that disclaimer out of the way, let’s jump into the first Vanguard ETF on our list: Best Vanguard ETF #1: Vanguard Total Stock Market ETF (VTI) Related: 11 Best Stock Portfolio Tracking Apps [Stock Portfolio Trackers] Best Vanguard ETF #2: Vanguard Dividend Appreciation ETF (VIG)
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It’s weighted most heavily toward the largest stocks, with trillion-dollar tech giant Apple (AAPL) representing more than 6% of the entire fund by itself. Lastly, ETFs tend to have cheaper fees than mutual funds, on average, but that’s because most ETFs are passively managed index funds, whereas most mutual funds are run by one or more human managers. The Best Vanguard ETFs
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On Fire: 5 Best Artificial Intelligence Penny Stocks
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https://www.nasdaq.com/articles/on-fire%3A-5-best-artificial-intelligence-penny-stocks
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Artificial intelligence has gone mainstream as everyone piles into artificial intelligence stocks.
While the concept of artificial intelligence has been around for decades, 2023 was indeed the breakout year and tipping point, making it accessible to anyone and everyone with internet access.
The viral popularity of ChatGPT deserves partial credit. Many artificial intelligence stocks have made tremendous gains over the years, but there may be opportunities for multi-bagger gains for risk-tolerant speculators.
Low-priced penny stocks can double or triple much quicker than large-cap stocks. However, they can fall much faster, too. Read on for the five best artificial intelligence penny stocks.
Overview of the Best Artificial Intelligence Stocks
Artificial intelligence integration and adaptation is still in its infancy, leaving a lot of upside potential for the right stocks. Artificial intelligence enhances, optimizes and improves functions and discovers and creates new processes and outcomes. Numerous applications (still being developed) can utilize it.
The following companies implement artificial intelligence and machine learning algorithms to improve their products, services and operations. These penny AI stocks are cheap AI stocks to buy. The best artificial intelligence stocks tend to be the most expensive since everyone wants to be invested in them, driving up share prices. These can also be crowded trades.
Why Invest in Artificial Intelligence Penny Stocks?
Suppose you want to engage with artificial intelligence stocks off the beaten path and are willing to take the risk. In that case, artificial intelligence penny stock companies can accommodate the highest-risk portion of your portfolio.
Artificial intelligence is a secular trend with a long runway. The big behemoth leaders like Microsoft Co. (NASDAQ: MSFT), Alphabet Inc. (NASDAQ: GOOGL) and NVIDIA Co. (NASDAQ: NVDA) are well-known large-cap stocks and expensive mature companies. Many under-the-radar developmental, emerging AI stocks and early-stage companies have not yet hit maturation. The fundamentals may be iffy, so there is the risk that artificial intelligence may not bring the dream to fruition.
There's an inherent risk with penny stocks. Risk is proportionate to reward. For those willing to absorb the risk, penny stocks may provide the opportunity to get in on companies that have yet to hit maturation or have fundamental issues yet to become resolved. While not all penny stocks are broken companies, it's best to assume so unless proven otherwise.
5 Best Artificial Intelligence Penny Stocks
Here are best AI penny stocks to consider right now. Remember, penny stocks in AI are speculative. If you decide to invest, it should only be risk capital.
Most of these stocks are under the radar and don’t have analyst coverage for ratings. Don’t expect conference call transcripts like the ones put on by blue-chip companies after an earnings release. This top AI penny stocks is not by any ranking or in any particular order.
The following companies aren’t AI startup stocks to buy — they have been in business for a while. Do your research if you decide to take the plunge.
Name
Ticker
Market Cap
Industry Specialty
BigBear.ai Inc.
BBAI
$217.4 million
AI for decision support for defense and intelligence.
Remark Holdings Inc.
MARK
$12.25 million
AI facial recognition
Inuvo Inc.
INUV
$33 million
AI advertising
Veritone Inc.
VERI
$115 million
AI computing
IZEA Worldwide Inc.
INDEX
$34.4 million
AI influencer match
1. BigBear.ai Holdings Inc.
BigBear.ai Holdings Inc. (NASDAQ: BBAI) has the letters "A" and "I" in its name to remind you of what it does. The company specializes in providing AI and machine learning-generated tools and insights for decision support. Specifically, it focuses on autonomous systems, cybersecurity solutions, supply chains and logistics. BigBear generates most revenue from contracts with the United States government defense and intelligence agencies. It has clients in diversified industries ranging from manufacturing, healthcare, distribution and life sciences.
Business is growing, and BigBear is a benefactor of enterprise and government spread and adoption of AI. BigBear saw revenues climb 15.8% year-over-year (YoY) to $42.2 million in the first quarter of 2023.
Its non-GAAP adjusted EBITDA was a loss of $3.8 million. The company has a backlog of around $197 million. BigBear has partnered with defense firm L3Harris Technologies Inc. (NYSE: LHX) to be the exclusive provider to L3Harris for computer vision, predictive analysis and event alerting analytics applications for autonomous surface vessels for the Department of Defense. This partnership solidifies that BigBear.ai is a legitimate company. BBAI shares trade up to 91% year-to-date (YTD) and have a 10.4% short interest.
Look for BigBear.ai earnings estimates on MarketBeat.
2. Remark Holdings Inc.
Remark Holdings Inc. (NASDAQ: MARK) is an artificial intelligence solutions provider specializing in video analytics and computer vision. It uses artificial intelligence for facial recognition and identification to detect people, objections and behavior in video and visual feeds.
The company does business in China, Brazil and the United States. China’s reopening should accelerate sales. In the U.S., many clients use Remark, including the Cosmopolitan of Las Vegas, Barclays Center, Scientific Games, Las Vegas Metropolitan Police, Wynn Resorts and University Medical Center. The company added 43 schools to its customer base in the second quarter of 2023, bringing the total to over 700 schools and 1.5 million students.
Remark closed a 30-month agreement to implement its mobile SSP for facial and license plate recognition in Rio De Janeiro, Brazil. The contract with the Rio De Janeiro police equips its fleet of police cars with license plates and facial recognition technology.
It enables them to automate, screen and identify people of interest and suspected vehicles following routine police patrol traffic. The company may contract for phases two and three when the initial period passes. The phase one contract is worth over $6 million. The company is still in the red, with a $4 million operating loss on $3.2 million in revenues for the second quarter of 2023. Its cash position fell to $200,000 on June 30 and it expects a capital raise.
Look for Remark income statements and balance sheets on MarketBeat.
3. Inuvo Inc.
Inuvo Inc. (NASDAQ: INUV) is a digital advertising solutions provider that doesn’t use third-party cookies. Apple Inc. (NASDAQ: AAPL) banned third-party cookies more than a year ago due to privacy concerns. Google will ban them in the second half of 2024. Third-party cookies are how advertisers and marketers can keep track of user data to optimize targeted ads.
Inuvo utilizes artificial intelligence in its IntentKey service, which identifies the "intent" of consumers for targeted advertising rather than third-party cookies. This keeps user data private and enables advertisers to maintain efficiency with their ad spend. Inuvo claims its IntentKey is working effectively, helping clients reduce wasting ad spend. Inuvo also uses AI to create more efficient ad campaigns and analyze, track and optimize them.
Inuvo saw revenues spike 40% sequentially in its second quarter of 2023 to $16.7 million. However, this was lower than the $22.7 million last year due to the loss of a direct customer in the fourth quarter of 2022. The company noted that data privacy practices continue to gain momentum, with 11 states with privacy laws and five with active privacy bills. Apple continues implementing browser features to thwart conventional ad tech using third-party cookies, email addresses, IP addresses and URL tracking. This makes Inuvo services more relevant despite the pullbacks in digital ad spend.
Look for Inuvo analyst ratings and price targets on MarketBeat.
4. Veritone Inc.
Veritone Inc. (NASDAQ: VERI) is an enterprise artificial intelligence software, applications and services provider. It primarily focuses on solutions for the media and entertainment industry. Its flagship profit is aiWARE, which helps to automate and streamline workflows using artificial intelligence. The company uses it for content creation, curation, distribution and monetization. aiWARE can also create synthetic voice, video and audio content for sound effects and music.
Veritone has over 3,700 software-as-a-service (SaaS) customers, including Bloomberg, Sony, ESPN, Amazon, NFL Network and CNN. It also partners with credible giants like Microsoft, Oracle Co. Oracle Co. (NASDAQ: ORCL) and Snowflake Inc. (NASDAQ: SNOW). The company saw its second-quarter 2023 GAAP revenues of $28 million, down 18% YoY due to the decline in one-time nonrecurring software products and services revenue.
Total new bookings fell 62% to $8.4 million due to customer cost-cutting measures like Amazon reducing HR consumption. The company had a net loss of $23.3 million due to a one-time noncash benefit of $13.8 million in Q2 2022. Non-GAAP net loss was $13 million.
Learn more about Veritone analyst ratings and price targets on MarketBeat.
5. IZEA Worldwide Inc.
IZEA Worldwide Inc. (NASDAQ: IZEA) is an artificial intelligence-powered social media influencer discovery and matching platform. It operates digital marketplaces to connect advertisers and sponsors with content creators on social media. Its artificial intelligence engine processes data from social media, website traffic and search engines.
The platform helps companies manage their influencer campaigns. IZEA matches brands with influencers that have a relevant following and are likely to be responsive to the brand’s products and services. It also uses artificial intelligence to power campaign creation, helping brands in the creation and marketing elements of influencer campaigns. The platform has many services and tools to set budgets, track results, optimize analytics, and optimize campaigns.
IZEA reported its second-quarter 2023 revenues of $10.7 million, down 15% YoY. Net loss was $1 million compared to $200,000 in the year-ago period. The company has $65 million in cash and cash equivalents with no long-term debt. The company authorized a $1 billion share buyback program in March 2023, resulting in 365,865 shares. IZEA strategically decided to sacrifice near-term revenue and customer counts to focus on creating sustainable, profitable and diversified long-term growth.
Look for IZEA financials on MarketBeat.
Cheap for a Reason
Penny stocks are cheap for a reason. They usually involve materially bad news or weakening fundamentals. Most of the list's stocks have seen YoY revenues and profitability declines.
Things need to turn around for shares to reverse and sustain the reversal. Penny stocks are underdogs, but remember that underdogs usually lose. Every once in a blue moon, an underdog may win big, and that's the hope of the result of investing in AI penny stocks.
Methodology
The methodology for finding the five best penny stocks artificial intelligence was first to start the search with penny stocks.
Penny stocks can be considered stocks with a price of less than $5. The next key quality had to be implementing and utilizing artificial intelligence and machine learning in its business, whether the company uses it, promotes it, consults on or sells it.
The companies are mixed throughout different industries to add some diversification. The value proposition should be compelling where the positive narrative can be understood even while the company may be experiencing a downturn in its business. Lastly, market capitalization had to be under $250 million.
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. (NASDAQ: AAPL) banned third-party cookies more than a year ago due to privacy concerns. Remark closed a 30-month agreement to implement its mobile SSP for facial and license plate recognition in Rio De Janeiro, Brazil. Inuvo utilizes artificial intelligence in its IntentKey service, which identifies the "intent" of consumers for targeted advertising rather than third-party cookies.
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Apple Inc. (NASDAQ: AAPL) banned third-party cookies more than a year ago due to privacy concerns. Remark Holdings Inc. (NASDAQ: MARK) is an artificial intelligence solutions provider specializing in video analytics and computer vision. Veritone Inc. Veritone Inc. (NASDAQ: VERI) is an enterprise artificial intelligence software, applications and services provider.
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Apple Inc. (NASDAQ: AAPL) banned third-party cookies more than a year ago due to privacy concerns. Overview of the Best Artificial Intelligence Stocks Artificial intelligence integration and adaptation is still in its infancy, leaving a lot of upside potential for the right stocks. 5 Best Artificial Intelligence Penny Stocks Here are best AI penny stocks to consider right now.
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Apple Inc. (NASDAQ: AAPL) banned third-party cookies more than a year ago due to privacy concerns. Why Invest in Artificial Intelligence Penny Stocks? 5 Best Artificial Intelligence Penny Stocks Here are best AI penny stocks to consider right now.
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2023-08-31 00:00:00 UTC
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Why the Top Fintech FAANG Stock Isn't Apple or Google
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https://www.nasdaq.com/articles/why-the-top-fintech-faang-stock-isnt-apple-or-google
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The payments and digital wallet scene has grown rather crowded in recent years. Part of the blame for the epic fall of digital payment pioneers like PayPal (PYPL) and Block (SQ) has to go to the big FAANG firms, which are looking to capture a more significant chunk of the payments market.
Undoubtedly, global payments is a massive industry that everyone wants to get a piece of - and as the AI wars dominate Wall Street's attention, it's the financial technology and digital payments scene where a lot of the action could take place, as FAANG companies look to expand their portfolios of fintech offerings.
Already, both Apple (AAPL) and Alphabet (GOOG) have made good use of their massive networks to bolster their positions in the digital wallet scene. Apple is taking payments and fintech quite seriously, with various intriguing products (think the Apple Card and the new high-interest Savings Account) integrated alongside its wallet. Reportedly, Goldman Sachs (GS) is losing quite a bit of cash from its involvement in such products, and is looking to get out of the partnership.
Though Apple and Alphabet may get the most attention for their impressive wallets, it's Amazon (AMZN) that appears to be stealthily positioning itself for a push of its own.
Amazon's Payments Positioning is Impressive
Amazon Pay and Buy With Prime are just two services that have been gaining traction of late. The latter service (Buy With Prime) offers payments, fulfillment, and 24/7 support to merchants that have their own websites. Indeed, Amazon makes it all too simple for independent e-commerce firms to get all the services they need to build the ideal customer experience.
Recently, Amazon announced integration with the Canadian e-commerce platform Shopify (SHOP) - notably, just a few quarters after Shopify warned merchants not to use the Buy With Prime feature.
What changed over the course of a few months? Shopify is getting out of the logistics game with the recent sale of Deliverr and Flexport. If you can't beat them, perhaps it's a better idea to join them!
Buy With Prime on Shopify is a big deal that could help give Amazon payments a real shot in the arm as it looks to expand across new corners of the e-commerce market.
www.barchart.com
Up next, Amazon could be using its palm to push further into the realm of payments.
Amazon Palms Its Way into Point-of-Sale (PoS) Payments
Amazon plans to roll out hand-scanning technology across 500 of its Whole Foods stores, so that customers can pay with nothing more than their palms. It's a futuristic concept that could help Amazon nibble away at the market share of Apple Pay and Android Pay.
For now, the tech is coming to Whole Foods and just a few other places. If all goes well, it could be coming to a wider range of brick-and-mortar locations. Indeed, tapping your phone may be too inconvenient two or three years down the road, if all you need is the palm of your hand to pay for your goods!
Further, Point-of-Sales (PoS) products - like those offered by Block - could be going the way of the dodo bird if Amazon's palm tech hits the right spots with merchants and consumers.
But as impressive and intriguing as palm payments are, I'm not so sure it will take off in the same way that mobile payments did. Indeed, there are potential privacy and security concerns of having your palm print in Amazon's databases.
Only time will tell if people voluntarily opt to tap their palms rather than their phones once the tech is available at your local Whole Foods. In any case, it's clear Amazon is not afraid to innovate to increase its market share.
The Bottom Line
Amazon is a disruptor at heart, and it's well on its way to becoming a juggernaut in the payments space - if it isn't already. Over the next five years, Amazon seems best-positioned of the FAANG group to grow its share in the payments scene.
As Amazon goes after palm payments, look for Apple to keep expanding its digital wallet - perhaps with a dance partner who's not Goldman Sachs.
On the date of publication, Joey Frenette had a position in: AMZN , AAPL . 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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Already, both Apple (AAPL) and Alphabet (GOOG) have made good use of their massive networks to bolster their positions in the digital wallet scene. On the date of publication, Joey Frenette had a position in: AMZN , AAPL . Buy With Prime on Shopify is a big deal that could help give Amazon payments a real shot in the arm as it looks to expand across new corners of the e-commerce market.
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Already, both Apple (AAPL) and Alphabet (GOOG) have made good use of their massive networks to bolster their positions in the digital wallet scene. On the date of publication, Joey Frenette had a position in: AMZN , AAPL . Amazon's Payments Positioning is Impressive Amazon Pay and Buy With Prime are just two services that have been gaining traction of late.
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Already, both Apple (AAPL) and Alphabet (GOOG) have made good use of their massive networks to bolster their positions in the digital wallet scene. On the date of publication, Joey Frenette had a position in: AMZN , AAPL . Amazon's Payments Positioning is Impressive Amazon Pay and Buy With Prime are just two services that have been gaining traction of late.
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Already, both Apple (AAPL) and Alphabet (GOOG) have made good use of their massive networks to bolster their positions in the digital wallet scene. On the date of publication, Joey Frenette had a position in: AMZN , AAPL . Amazon Palms Its Way into Point-of-Sale (PoS) Payments Amazon plans to roll out hand-scanning technology across 500 of its Whole Foods stores, so that customers can pay with nothing more than their palms.
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14036.0
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2023-08-31 00:00:00 UTC
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Microsoft vs Apple: Which Is the Better Dividend Stock?
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AAPL
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https://www.nasdaq.com/articles/microsoft-vs-apple%3A-which-is-the-better-dividend-stock
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nan
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nan
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Some investors looking to bolster their portfolio with dividend stocks might overlook Microsoft (NASDAQ: MSFT) and Apple (NASDAQ: AAPL) due to their low dividend yields. This is arguably a big mistake.
Though both companies pay investors low dividends compared to the average yield of stocks in the S&P 500, the two stocks make up in other areas for what they lack in yield. For the dividend investor specifically, both stocks' payouts have outstanding long-term growth prospects.
This means that investors who own these stocks will likely see their payments increase significantly over the next five to 10 years, likely with increases every year.
But which of these two stocks is the better pick for dividend investors? To find out, let's compare them in several key areas, including business growth, dividend yield, and payout ratio.
Growth
Both Apple and Microsoft's top-line growth rates have been rattled by an uncertain macroeconomic environment. But both companies have seen revenue trends make progress toward more-normalized levels in recent quarters.
Microsoft's revenue in its most recent quarter, for instance, rose 8% year over year. That was an improvement from 7% growth in the period ended three months earlier and 2% growth in the quarter ended on Dec. 31, 2022.
Apple's revenue growth actually turned to a decline in the first quarter of fiscal 2023, with sales falling 5% year over year. But this year-over-year decline has improved to almost breakeven in the company's most recent quarter, when revenue fell only 1% and earnings growth turned positive.
Though Apple's top-line growth trends are expected to improve in fiscal 2024 and beyond, analysts expect Microsoft's growth to generally continue outpacing Apple's. This is particularly evident in analysts' forecast for Microsoft's earnings per share to grow at an average rate of 14.4% annually over the next five years versus a consensus for Apple's earnings to rise just 6.4% per year over this same period.
While investors can't count on analysts' forecasts to be accurate, the wide difference in the expectations for these two companies, combined with Microsoft's recent outperformance when it comes to growth, is enough to give Microsoft the win here.
Dividend yield
Microsoft's dividend yield of 0.8% is well below the average yield of stocks in the S&P 500 of 1.6%, but it easily beats Apple's. The iPhone maker's yield is just 0.5%.
Of course, dividend investors likely aren't considering these stocks for their paltry yields today but rather for their potential yields in the future, on today's cost basis. Both companies should have substantially higher dividend payouts five to 10 years from now.
Consider that Microsoft's quarterly dividend payout has increased from $0.23 in 2013 to $0.68 today. Apple's has risen from a split-adjusted $0.11 to $0.24 over this same period. Though it's impossible to know how rapidly the two companies' dividends will grow over the next 10 years, they'll likely at least double -- and if Microsoft grows its business faster than Apple's, its payout could grow even faster.
Microsoft wins on dividend yield, with both a better yield today and higher expected growth for its payments over the next five to 10 years.
Payout ratio
One important area where Apple wins fair and square is payout ratio, or the percentage of earnings that the company distributes in dividends. All else equal, a lower payout ratio means that there's more room for dividend growth and that the dividend payout is safer (unlikely to be reduced, paused, or eliminated).
Apple's payout ratio of just 16% is extremely low. This is likely because the company has preferred to spend far more of its capital-return program on stock buybacks. Though Microsoft also buys back its stock, the company has recently been opting to spend more on its dividend than on repurchases. The company's incrementally stronger preference for a dividend compared to Apple management's means that Microsoft has a higher payout ratio of 27%. Though that's still a healthy figure.
Apple wins when it comes to payout ratio, but Microsoft is the overall winner as a dividend stock. Sure, investors will have to pay a higher valuation to get access to Microsoft's dividend and its growth momentum; the company trades at 34 times earnings versus Apple's price-to-earnings multiple of 31. But this is a fair price to pay for a meaningfully better dividend.
10 stocks we like better than Microsoft
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*Stock Advisor returns as of August 28, 2023
Daniel Sparks has no position in any of the stocks mentioned. His clients may own shares of the companies mentioned. The Motley Fool has positions in and recommends Apple 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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Some investors looking to bolster their portfolio with dividend stocks might overlook Microsoft (NASDAQ: MSFT) and Apple (NASDAQ: AAPL) due to their low dividend yields. But this year-over-year decline has improved to almost breakeven in the company's most recent quarter, when revenue fell only 1% and earnings growth turned positive. The company's incrementally stronger preference for a dividend compared to Apple management's means that Microsoft has a higher payout ratio of 27%.
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Some investors looking to bolster their portfolio with dividend stocks might overlook Microsoft (NASDAQ: MSFT) and Apple (NASDAQ: AAPL) due to their low dividend yields. Though both companies pay investors low dividends compared to the average yield of stocks in the S&P 500, the two stocks make up in other areas for what they lack in yield. To find out, let's compare them in several key areas, including business growth, dividend yield, and payout ratio.
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Some investors looking to bolster their portfolio with dividend stocks might overlook Microsoft (NASDAQ: MSFT) and Apple (NASDAQ: AAPL) due to their low dividend yields. Though both companies pay investors low dividends compared to the average yield of stocks in the S&P 500, the two stocks make up in other areas for what they lack in yield. Dividend yield Microsoft's dividend yield of 0.8% is well below the average yield of stocks in the S&P 500 of 1.6%, but it easily beats Apple's.
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Some investors looking to bolster their portfolio with dividend stocks might overlook Microsoft (NASDAQ: MSFT) and Apple (NASDAQ: AAPL) due to their low dividend yields. Though both companies pay investors low dividends compared to the average yield of stocks in the S&P 500, the two stocks make up in other areas for what they lack in yield. This is particularly evident in analysts' forecast for Microsoft's earnings per share to grow at an average rate of 14.4% annually over the next five years versus a consensus for Apple's earnings to rise just 6.4% per year over this same period.
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14037.0
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2023-08-31 00:00:00 UTC
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After Hours Most Active for Aug 31, 2023 : AAPL, T, NEX, PTEN, DKNG, PFE, F, NU, MSFT, HOOD, UGI, CSCO
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-aug-31-2023-%3A-aapl-t-nex-pten-dkng-pfe-f-nu-msft-hood-ugi-csco
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nan
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nan
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The NASDAQ 100 After Hours Indicator is down -4.85 to 15,496.22. The total After hours volume is currently 216,953,947 shares traded.
The following are the most active stocks for the after hours session:
Apple Inc. (AAPL) is +0.1022 at $187.97, with 7,844,246 shares traded. Over the last four weeks they have had 5 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2023. The consensus EPS forecast is $1.39. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
AT&T Inc. (T) is +0.01 at $14.80, with 7,434,977 shares traded. T's current last sale is 74% of the target price of $20.
NexTier Oilfield Solutions Inc. (NEX) is unchanged at $10.61, with 7,017,135 shares traded. As reported by Zacks, the current mean recommendation for NEX is in the "buy range".
Patterson-UTI Energy, Inc. (PTEN) is unchanged at $14.14, with 6,727,779 shares traded. As reported by Zacks, the current mean recommendation for PTEN is in the "buy range".
DraftKings Inc. (DKNG) is +0.42 at $30.07, with 5,679,546 shares traded. Over the last four weeks they have had 6 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2023. The consensus EPS forecast is $-0.68. As reported by Zacks, the current mean recommendation for DKNG is in the "buy range".
Pfizer, Inc. (PFE) is +0.06 at $35.44, with 5,520,137 shares traded. PFE's current last sale is 79.64% of the target price of $44.5.
Ford Motor Company (F) is +0.01 at $12.14, with 5,166,697 shares traded. F's current last sale is 86.71% of the target price of $14.
Nu Holdings Ltd. (NU) is -0.0093 at $6.84, with 5,137,152 shares traded. NU's current last sale is 82.42% of the target price of $8.3.
Microsoft Corporation (MSFT) is +0.51 at $328.27, with 4,780,783 shares traded. As reported by Zacks, the current mean recommendation for MSFT is in the "buy range".
Robinhood Markets, Inc. (HOOD) is -0.0017 at $10.89, with 4,629,457 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2023. The consensus EPS forecast is $0.01. HOOD's current last sale is 92.67% of the target price of $11.75.
UGI Corporation (UGI) is unchanged at $25.18, with 4,390,074 shares traded. UGI's current last sale is 76.3% of the target price of $33.
Cisco Systems, Inc. (CSCO) is unchanged at $57.35, with 4,187,830 shares traded. Over the last four weeks they have had 7 up revisions for the earnings forecast, for the fiscal quarter ending Oct 2023. The consensus EPS forecast is $0.91. , following a 52-week high recorded in today's regular session.
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 +0.1022 at $187.97, with 7,844,246 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Over the last four weeks they have had 5 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2023.
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Apple Inc. (AAPL) is +0.1022 at $187.97, with 7,844,246 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Over the last four weeks they have had 5 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2023.
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Apple Inc. (AAPL) is +0.1022 at $187.97, with 7,844,246 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 216,953,947 shares traded.
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Apple Inc. (AAPL) is +0.1022 at $187.97, with 7,844,246 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The NASDAQ 100 After Hours Indicator is down -4.85 to 15,496.22.
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14038.0
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2023-08-31 00:00:00 UTC
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If You Invested $1,000 in This Stock Long Before Warren Buffett, Here's How Filthy Rich You'd Be Today
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AAPL
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https://www.nasdaq.com/articles/if-you-invested-%241000-in-this-stock-long-before-warren-buffett-heres-how-filthy-rich-youd
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nan
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nan
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Warren Buffett is one of the most successful investors in history. His company, Berkshire Hathaway, has outperformed the S&P 500 index each year on average for more than 50 years by investing in stable so-called value stocks.
Buffett tends to avoid technology stocks because he prefers to invest in businesses he understands, particularly those producing strong profits and those returning money to shareholders. But it just so happens that one tech stock, Apple (NASDAQ: AAPL), ticks both those boxes in a big way.
Apple was founded in 1976, and it was first listed on a public stock exchange in 1980. However, Buffett's company didn't buy its first share in the company until 2016, when it was a mature, proven business. He has continued to buy the stock as recently as this year, and it now makes up almost half of Berkshire's $352 billion investment portfolio.
But investors who bet on Apple much earlier could have generated a staggering return compared to Buffett (on a percentage basis). Here's how a $1,000 bet on the company's initial public offering (IPO) in 1980 could have made you a millionaire.
Apple continues to focus on what it does best
Apple started producing personal computers for consumers in the 1970s, and it's still in that business today. But it has expanded its ecosystem to include the iPhone, iPad, Apple Watch, and a range of accessories to go with them. And it has developed an impressive portfolio of subscription services like Apple Music, Apple TV, and Apple News.
The company has never strayed from its mission to serve consumers, despite its key rival, Microsoft, expanding into business-to-business services like cloud computing. Apple's laser focus on what it does best appears to be working, because it's the world's largest company today with a valuation of more than $2.8 trillion, leaving Microsoft in second place.
Like any great company in operation for decades, Apple has faced challenges on its road to success. After a period of underperformance in 1985 (and with the company newly beholden to shareholders in the public markets), co-founder Steve Jobs was forced out. By the time he returned in 1997, reports suggested the company was just months away from bankruptcy.
Jobs's return was certainly a turning point. He oversaw the launch of several smash-hit products, starting with the iPod digital music player in 2001 and the first iPhone in 2007. While the iPod is no longer around, Apple has sold 2.3 billion iPhones globally since unveiling the product.
But the services segment is a focal point for investors today, because of its ability to operate with a high profit margin relative to the company's hardware products. The iPhone's success has enabled Apple to create new revenue streams through innovative features like iCloud digital storage and Apple Pay.
Apple's long-term growth has been spectacular
Apple's revenue trajectory has always pointed upward, despite some turbulent periods primarily caused by a challenging economy. We're in one of those periods right now, with elevated inflation and rising interest rates causing consumers to tighten their belts. As a result, Wall Street thinks the company's revenue will decline to $383 billion in 2023, compared to last year's $394 billion.
Ultimately, however, the company has come a long way since it listed publicly in 1980. It generated just $117 million in revenue that year, so its projected 2023 result would mark an increase of 3,272 times over the past four decades (and change).
As the chart below shows, the start of the iPhone era in 2007 kicked off an incredible run of value creation.
Apple has also generated consistent profits along the way. In the 10 years between fiscal 2012 and fiscal 2022, the company has earned a whopping $632 billion.
And over that same period, it returned $554.3 billion to shareholders in stock buybacks, and $131 billion in dividend payments. As I noted at the top, these attributes are the reason Apple stock is such a huge Warren Buffett favorite.
Here's how much $1,000 invested in Apple's IPO is worth today
Apple stock has gained more than 600% since 2016, when Buffett's Berkshire Hathaway first invested. But let's explore how much you would have made if you bought $1,000 worth of Apple stock at the time of its IPO on Dec. 12, 1980.
It went for $22 per share, which means your $1,000 investment would have bought about 45 shares. Given the company's incredible growth, the company has since authorized seven stock splits to reduce its share price and ensure it remains accessible to smaller investors. Therefore, today you would be holding 10,080 shares with a cost basis of $0.10 per share.
Apple stock now trades at about $187, so you'd be sitting on a mind-boggling return of about 180,000%. In other words, your $1,000 investment in 1980 would now be worth about $1.8 million!
But it gets better, because Apple has often paid a dividend periodically, starting in 1987. Assuming you never sold a single share, you would have collected an additional $162,288 in dividend payments to date! You would still be receiving $9,676 in dividends each year, more than nine times your original $1,000 investment. Who said long-term investing can't be exciting?
Whether you own Apple stock or not, it's never too late to pick up a few shares. In fact, considering the stock trades for about 5% below its all-time high, this still is an opportunity to buy in at a discount.
10 stocks we like better than Apple
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of August 28, 2023
Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, 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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But it just so happens that one tech stock, Apple (NASDAQ: AAPL), ticks both those boxes in a big way. Buffett tends to avoid technology stocks because he prefers to invest in businesses he understands, particularly those producing strong profits and those returning money to shareholders. Apple's laser focus on what it does best appears to be working, because it's the world's largest company today with a valuation of more than $2.8 trillion, leaving Microsoft in second place.
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But it just so happens that one tech stock, Apple (NASDAQ: AAPL), ticks both those boxes in a big way. And over that same period, it returned $554.3 billion to shareholders in stock buybacks, and $131 billion in dividend payments. Here's how much $1,000 invested in Apple's IPO is worth today Apple stock has gained more than 600% since 2016, when Buffett's Berkshire Hathaway first invested.
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But it just so happens that one tech stock, Apple (NASDAQ: AAPL), ticks both those boxes in a big way. And it has developed an impressive portfolio of subscription services like Apple Music, Apple TV, and Apple News. Here's how much $1,000 invested in Apple's IPO is worth today Apple stock has gained more than 600% since 2016, when Buffett's Berkshire Hathaway first invested.
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But it just so happens that one tech stock, Apple (NASDAQ: AAPL), ticks both those boxes in a big way. He has continued to buy the stock as recently as this year, and it now makes up almost half of Berkshire's $352 billion investment portfolio. And over that same period, it returned $554.3 billion to shareholders in stock buybacks, and $131 billion in dividend payments.
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14039.0
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2023-08-31 00:00:00 UTC
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1 Super Stock Set to Join Apple, Microsoft, Amazon, Alphabet, and Nvidia in the $1 Trillion Club
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AAPL
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https://www.nasdaq.com/articles/1-super-stock-set-to-join-apple-microsoft-amazon-alphabet-and-nvidia-in-the-%241-trillion
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nan
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nan
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Warren Buffett was born in 1930, right in the middle of the Great Depression. He bought his first stock at just 11 years of age, and by 1965, he was operating his own investment company Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B), which he still runs today.
Buffett has successfully navigated every post-Depression crisis, and he has created value for his investors through every evolution of the U.S. economy. He watched General Motors become the world's most valuable company in 1955 when it amassed a $10 billion market capitalization. He was also around when General Electric snatched that title with a $100 billion valuation in 1995.
Today, Berkshire is one of the largest single investors in tech giant Apple (NASDAQ: AAPL), which became the world's first $1 trillion company in 2018. Apple has since been joined by tech companies Microsoft, Amazon, Google parent Alphabet, and Nvidia, which have all amassed valuations of $1 trillion or more.
Shares of Buffett's Berkshire Hathaway are currently trading near an all-time high, valuing the investment company at $775 billion. Here's why it could soon join the exclusive trillion-dollar club.
Image source: The Motley Fool.
Berkshire has a history of outperforming the broader stock market
Berkshire Hathaway was originally a textiles company when it was founded in 1929. Buffett acquired a controlling stake in 1965 when it was going through a rough patch, and after determining the business was no longer viable, he converted it into a holding company.
It has served as Buffett's main investment vehicle ever since, and it now owns 56 different publicly traded stocks and securities in its portfolio worth a combined $354 billion. Apple stock accounts for 46.5% of that value, and American Express is Berkshire's next-largest holding, representing 8.4% of the portfolio.
But Berkshire also wholly owns several private businesses, including insurance company Geico and consumer businesses like Dairy Queen and Duracell.
In the 57 years between 1965 and 2022, Berkshire Class A stock has delivered a mind-boggling compound annual return of 19.8%, which is more than double the 9.8% annual return of the S&P 500 index. In other words, a $1,000 investment in Berkshire Hathaway stock in 1965 would be worth a whopping $29.6 million today.
Berkshire owes its success to Buffett's steadfast approach to investing. He likes to own profitable businesses generating plenty of cash, and he's particularly fond of those returning money to shareholders. Apple is a great example; since Berkshire bought its first share in the company in 2016, Apple has spent $507 billion on stock buybacks and paid out a further $107 billion in dividends to its shareholders.
But time is Buffett's favorite weapon. When he buys a stock -- or an entire business -- he typically intends to own it for the ultra-long term, if not forever.
Berkshire is a cash-generating machine
Berkshire has come a long way since Buffett transformed the company. It brought in $49 million in revenue during 1965, and in 2022, that figure was a whopping $302 billion. Sales and services from the firm's portfolio of businesses made up more than half of that total, with a $74 billion contribution coming from insurance premiums and a further $25 billion coming from its freight rail transportation business.
But Berkshire generated a rare loss of $22.8 billion on the bottom line last year, which was a big swing from its $89.7 billion in net income in 2021. The loss was driven by the broad decline in the stock market, with Berkshire suffering a $67.8 billion fall (on paper) in the value of its securities holdings.
But its fortunes have certainly reversed in 2023 thanks to the surging rally in stocks across the board. In the first six months of the year, Berkshire has already generated $71.4 billion in earnings. If it carries that momentum into the second half, 2023 could be another record year of profitability for the company.
Here's how soon Berkshire could join the $1 trillion club
As mentioned already, Berkshire Hathaway currently has a market capitalization of $775 billion. That means its stock price only needs to rise by 29% from where it trades now for the company to surpass a $1 trillion valuation. Considering the stock has a 57-year track record of growing by 19.8% annually, it could achieve that milestone within the next two years.
But history aside, Berkshire is also spending billions of dollars each quarter to repurchase its own stock. It reduces the number of Berkshire shares in circulation, which organically lifts the company's valuation. As my Motley Fool colleague Sean Williams points out, Berkshire has repurchased $71 billion worth of its stock in the last five years alone!
If Berkshire stock is good enough for Buffett to continue buying hand over fist, then it's likely good enough for most investors. Its eventual admission into the $1 trillion club appears to be a foregone conclusion, and it could become the first non-technology company in the U.S. to achieve that feat.
10 stocks we like better than Berkshire Hathaway
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See the 10 stocks
*Stock Advisor returns as of August 28, 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. American Express is an advertising partner of The Ascent, a Motley Fool company. Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool recommends Alphabet, Amazon.com, Apple, Berkshire Hathaway, General Motors, Microsoft, 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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Today, Berkshire is one of the largest single investors in tech giant Apple (NASDAQ: AAPL), which became the world's first $1 trillion company in 2018. Buffett acquired a controlling stake in 1965 when it was going through a rough patch, and after determining the business was no longer viable, he converted it into a holding company. It has served as Buffett's main investment vehicle ever since, and it now owns 56 different publicly traded stocks and securities in its portfolio worth a combined $354 billion.
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Today, Berkshire is one of the largest single investors in tech giant Apple (NASDAQ: AAPL), which became the world's first $1 trillion company in 2018. He bought his first stock at just 11 years of age, and by 1965, he was operating his own investment company Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B), which he still runs today. Here's how soon Berkshire could join the $1 trillion club As mentioned already, Berkshire Hathaway currently has a market capitalization of $775 billion.
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Today, Berkshire is one of the largest single investors in tech giant Apple (NASDAQ: AAPL), which became the world's first $1 trillion company in 2018. Berkshire has a history of outperforming the broader stock market Berkshire Hathaway was originally a textiles company when it was founded in 1929. Apple is a great example; since Berkshire bought its first share in the company in 2016, Apple has spent $507 billion on stock buybacks and paid out a further $107 billion in dividends to its shareholders.
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Today, Berkshire is one of the largest single investors in tech giant Apple (NASDAQ: AAPL), which became the world's first $1 trillion company in 2018. In other words, a $1,000 investment in Berkshire Hathaway stock in 1965 would be worth a whopping $29.6 million today. Apple is a great example; since Berkshire bought its first share in the company in 2016, Apple has spent $507 billion on stock buybacks and paid out a further $107 billion in dividends to its shareholders.
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14040.0
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2023-08-31 00:00:00 UTC
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Should Goldman Sachs MarketBeta U.S. 1000 Equity ETF (GUSA) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-goldman-sachs-marketbeta-u.s.-1000-equity-etf-gusa-be-on-your-investing-radar-2
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nan
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nan
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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 Goldman Sachs MarketBeta U.S. 1000 Equity ETF (GUSA), a passively managed exchange traded fund launched on 04/05/2022.
The fund is sponsored by Goldman Sachs Funds. It has amassed assets over $1.39 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
Companies that fall in the large cap category tend to 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 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
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 0.11%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.23%.
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 27.10% of the portfolio. Healthcare and Financials round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.76% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN).
Performance and Risk
GUSA seeks to match the performance of the SOLACTIVE GBS US 1000 INDEX before fees and expenses. The Solactive GBS United States 1000 Index measures the performance of equity securities of large and mid-capitalization equity issuers covering approximately the largest 1,000 of the free-float market capitalization in the United States.
The ETF has gained about 18.78% so far this year and is up roughly 13.95% in the last one year (as of 08/31/2023). In the past 52-week period, it has traded between $31.16 and $39.71.
The ETF has a beta of 1.01 and standard deviation of 21.06% for the trailing three-year period. With about 1012 holdings, it effectively diversifies company-specific risk.
Alternatives
Goldman Sachs MarketBeta U.S. 1000 Equity 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, GUSA is a good 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 $354.34 billion in assets, SPDR S&P 500 ETF has $415.96 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.
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Goldman Sachs MarketBeta U.S. 1000 Equity ETF (GUSA): 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 6.76% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Click to get this free report Goldman Sachs MarketBeta U.S. 1000 Equity ETF (GUSA): 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 $1.39 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 Goldman Sachs MarketBeta U.S. 1000 Equity ETF (GUSA): 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 6.76% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). If you're interested in broad exposure to the Large Cap Blend segment of the US equity market, look no further than the Goldman Sachs MarketBeta U.S. 1000 Equity ETF (GUSA), a passively managed exchange traded fund launched on 04/05/2022.
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Click to get this free report Goldman Sachs MarketBeta U.S. 1000 Equity ETF (GUSA): 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 6.76% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Alternatives Goldman Sachs MarketBeta U.S. 1000 Equity 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 6.76% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Click to get this free report Goldman Sachs MarketBeta U.S. 1000 Equity ETF (GUSA): 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 Goldman Sachs MarketBeta U.S. 1000 Equity ETF (GUSA), a passively managed exchange traded fund launched on 04/05/2022.
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14041.0
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2023-08-31 00:00:00 UTC
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3 Magnificent Stocks to Buy on Market Weakness
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AAPL
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https://www.nasdaq.com/articles/3-magnificent-stocks-to-buy-on-market-weakness
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nan
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nan
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Sometimes, it's easy to fall into the trap of thinking that the stock market is a voting machine for an election of a company's progress. While that's true in the short term, it doesn't tell the whole picture. Valuations also matter. Sometimes, valuations get ahead of company progress, causing stock prices to eventually correct despite relatively good news from companies. That's what happened recently with Honeywell (NASDAQ: HON), Rockwell Automation (NYSE: ROK), and Apple (NASDAQ: AAPL). There wasn't a lot wrong with their recent earnings report, but all three stocks are down over the last month. Here's why.
1. Honeywell International
Honeywell's stock is down over the last month, along with the other two companies featured. That might seem odd because Honeywell raised the midpoint of its full-year sales and earnings guidance on account of raising the low end of their ranges. Moreover, it marked the continuance of raising full-year guidance on every possible earnings call since the start of 2021.
HON data by YCharts.
Moreover, the industrial conglomerate performed precisely as you might expect one to do considering the market right now, with strength in aerospace and performance materials & technologies (PMT) offsetting a slowing in Honeywell Building Technologies (HBT) and safety and productivity solutions (SPS).
For reference, management nudged its full-year sales expectations for PMT upward (backed by strong demand for processing and refining shipments and process solutions) and nudged its SPS guidance lower (e-commerce fulfillment warehouse spending remains on pause).
It's typical behavior for a conglomerate, as they rarely fire on all cylinders simultaneously, and as noted above, Honeywell raised its full-year guidance.
Data source: Honeywell presentations.
That said, alongside Apple and Rockwell, it's hard to argue that Honeywell is an outstanding value stock. Enterprise value (EV, market cap plus net debt) to earnings before interest, taxation, depreciation, and amortization (EBITDA) is a common valuation. While valuations are always subject to a company's circumstances (and I'll discuss other valuations later), a valuation of around 12 is often considered decent value for an industrial conglomerate. As you can see below, it's likely to be a while before Honeywell gets there unless the price drops.
HON EV to EBITDA (Forward) data by YCharts.
2. Rockwell Automation
The automation company's third-quarter earnings report saw the company narrow its full-year guidance ranges and pretty much keep its earnings expectations in line with the midpoint of prior guidance.
If there was a negative around its results and guidance, it came from management downgrading its expectation for full-year orders and backlog. CEO Blake Moret now expects full-year orders of $8.5 billion to $9 billion and a backlog of $4.5 billion to $5 billion; this compares with previous guidance of $9 billion in orders and $5 billion in backlog.
The downgrade is in response to a moderation in orders due to Rockwell reducing the lead times (the time between an order and delivery of a product) as the supply chain eases. Consequently, customers are "no longer placing unusually large advanced orders," according to Moret.
However, according to Moret on theearnings call this will likely prove a temporary slowing as machine builders adjust inventory levels. At the same time, "we've also had direct conversations with our distributors, and in North America, some of our largest distributors are actually seeing year-over-year order increases."
As such, don't be surprised if Rockwell's orders pick up again in its fiscal 2024, as management expects it to. Turning to valuation matters again, based on the price-to-earnings multiple, Rockwell is still not a cheap stock.
HON PE Ratio (Forward 1y) data by YCharts.
3. Apple
It's no secret that consumer electronics spending has been under pressure this year. It comes down to a combination of higher interest rates slowing consumer discretionary spending and a natural slowing following the boom years when the lockdowns encouraged spending on consumer electronics.
As such, Apple's recent third-quarter results saw the company report a 4.4% year-over-year decline in product sales, with notable weakness in Mac and iPad sales, down 7.3% and 19.8%. Still, the iPhone makes up slightly more than 65% of product revenue, and it grew on a constant-currency basis (down 2.4% on a reported basis).
Moreover, Apple grew its higher-margin services revenue by 8.2% in the quarter. For reference, Apple's services revenue came with a 70.5% gross margin in the quarter compared to just 35.4% for products.
Furthermore, Apple's paid subscriptions passed more than one billion in the quarter -- almost double the figure of three years ago.
Apple is growing its services revenue and competing well with its iPhone in challenging market conditions. When its end markets improve, the company will likely emerge as a higher-margin and more cash-generating one.
HON Price to Free Cash Flow data by YCharts.
However, as shown in the price-to-free-cash-flow chart above, Apple's valuation is no longer cheap following a strong run in 2023.
All three are attractive companies performing well in their operations despite the stock price sell-off. They are good stocks to monitor and pick up if they worsen from here. Valuations matter, but so does investing in high-quality companies, and all three fit that description.
10 stocks we like better than Honeywell International
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Honeywell International wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of August 28, 2023
Lee Samaha has positions in Honeywell International. The Motley Fool recommends Apple. 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's what happened recently with Honeywell (NASDAQ: HON), Rockwell Automation (NYSE: ROK), and Apple (NASDAQ: AAPL). Sometimes, it's easy to fall into the trap of thinking that the stock market is a voting machine for an election of a company's progress. It's typical behavior for a conglomerate, as they rarely fire on all cylinders simultaneously, and as noted above, Honeywell raised its full-year guidance.
|
That's what happened recently with Honeywell (NASDAQ: HON), Rockwell Automation (NYSE: ROK), and Apple (NASDAQ: AAPL). Rockwell Automation The automation company's third-quarter earnings report saw the company narrow its full-year guidance ranges and pretty much keep its earnings expectations in line with the midpoint of prior guidance. CEO Blake Moret now expects full-year orders of $8.5 billion to $9 billion and a backlog of $4.5 billion to $5 billion; this compares with previous guidance of $9 billion in orders and $5 billion in backlog.
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That's what happened recently with Honeywell (NASDAQ: HON), Rockwell Automation (NYSE: ROK), and Apple (NASDAQ: AAPL). Honeywell International Honeywell's stock is down over the last month, along with the other two companies featured. Rockwell Automation The automation company's third-quarter earnings report saw the company narrow its full-year guidance ranges and pretty much keep its earnings expectations in line with the midpoint of prior guidance.
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That's what happened recently with Honeywell (NASDAQ: HON), Rockwell Automation (NYSE: ROK), and Apple (NASDAQ: AAPL). Sometimes, valuations get ahead of company progress, causing stock prices to eventually correct despite relatively good news from companies. Honeywell International Honeywell's stock is down over the last month, along with the other two companies featured.
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14042.0
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2023-08-31 00:00:00 UTC
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2 Ultra-Growth Stocks That Are Leading the Market Recovery
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AAPL
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https://www.nasdaq.com/articles/2-ultra-growth-stocks-that-are-leading-the-market-recovery-0
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nan
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nan
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In 2022, the Nasdaq Composite index plunged 33% as macroeconomic headwinds curbed consumer discretionary spending and businesses trimmed their budgets. Countless companies across different industries reported declines throughout the year.
However, 2023 has seen a resurgence of bullishness among investors. The market has been in recovery mode, with companies benefiting from easing inflation and improving market conditions. The Nasdaq Composite is up nearly 30% since Jan. 1, and some analysts have declared the start of a new bull market.
As a result, now is an excellent time to invest in companies that are likely to profit the most from the improving conditions. Here are two ultra-growth stocks that are leading the market recovery.
1. Amazon
Amazon (NASDAQ: AMZN) was hard hit last year as its e-commerce segments reported substantial profit declines. However, the company has benefited massively in 2023. Its stock has soared by 58% year to date thanks to consistent improvements in its earnings and a growing venture in artificial intelligence (AI).
In the second quarter, Amazon reported operating income of more than $3 billion in its North America segment, which booked a loss of $627 million in the year-ago period. The improvement triggered a stock bump as Wall Street celebrated the retail giant's return to form.
The quarter also saw a 12% year-over-year increase in revenue for the company's cloud platform, Amazon Web Services (AWS). The industry has surged in recent years as more companies have moved their businesses online, with Amazon profiting from its leading market share in the cloud infrastructure space. AWS has experienced slowing growth amid macroeconomic challenges. However, an expansion into AI, its dominance in the cloud market, and easing inflation could make it Amazon's most lucrative business over the long term.
Amazon's strong positions in multiple markets give stockholders the chance to profit from the development of several industries. With the share price still down 29% from its July 2021 high, Amazon is an attractive buy as it leads the market's recovery.
2. Apple
Apple (NASDAQ: AAPL) had a relatively easier time than Amazon last year. Though its stock fell by 27% throughout 2022, the result was still enough to outperform the Nasdaq Composite. The tech giant's premium-priced products and booming services business made its stock a haven for investors seeking respite from poor market conditions.
Reductions in consumer spending on tech have caught up with Apple in 2023; it reported sales declines in multiple product segments in its fiscal third quarter, which ended July 1. However, the company has continued to outperform the competition, proving its strength and resilience during challenging conditions.
Data from Counterpoint Research shows that smartphone sales fell 24% year over year in Q2 2023. Samsung sales decreased by 37%. Yet, Apple's iPhone sales fell a more moderate 6%, allowing it to grow its market share from 52% to 55%. The company has performed similarly throughout the last year in the smartphone and PC markets.
Apple is the most valuable company in the world, with a market capitalization of $2.8 trillion, and when its shares fall, they are rarely down for long. The tech giant has a history of exceeding the growth of its peers and the market. In fact, Apple's stock is up by 228% over the last five years, significantly more than Microsoft, Alphabet, or Meta Platforms.
After Apple posted dismal results for its fiscal Q3 on Aug. 3, the company's shares tumbled. They're now down by about 8% since the start of August. However, that dip has only made them more attractive. Apple's leading market share in multiple product categories, its expansions in AI and virtual/augmented reality, and its swiftly growing digital services business make it a solid investment opportunity.
Apple outperformed a falling tech sector in 2022, and its nearly 40% stock growth this year is boosting investors' portfolios. The company is an excellent option at almost any time, but especially amid a market recovery.
10 stocks we like better than Amazon.com
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Amazon.com wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of August 28, 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 Alphabet, Amazon.com, 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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Apple Apple (NASDAQ: AAPL) had a relatively easier time than Amazon last year. The tech giant's premium-priced products and booming services business made its stock a haven for investors seeking respite from poor market conditions. Reductions in consumer spending on tech have caught up with Apple in 2023; it reported sales declines in multiple product segments in its fiscal third quarter, which ended July 1.
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Apple Apple (NASDAQ: AAPL) had a relatively easier time than Amazon last year. Reductions in consumer spending on tech have caught up with Apple in 2023; it reported sales declines in multiple product segments in its fiscal third quarter, which ended July 1. Apple's leading market share in multiple product categories, its expansions in AI and virtual/augmented reality, and its swiftly growing digital services business make it a solid investment opportunity.
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Apple Apple (NASDAQ: AAPL) had a relatively easier time than Amazon last year. The market has been in recovery mode, with companies benefiting from easing inflation and improving market conditions. The industry has surged in recent years as more companies have moved their businesses online, with Amazon profiting from its leading market share in the cloud infrastructure space.
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Apple Apple (NASDAQ: AAPL) had a relatively easier time than Amazon last year. Though its stock fell by 27% throughout 2022, the result was still enough to outperform the Nasdaq Composite. Apple outperformed a falling tech sector in 2022, and its nearly 40% stock growth this year is boosting investors' portfolios.
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14043.0
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2023-08-31 00:00:00 UTC
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2 Stock-Split AI Growth Stocks to Buy Before They Soar 53% and 135%, According to Wall Street
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AAPL
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https://www.nasdaq.com/articles/2-stock-split-ai-growth-stocks-to-buy-before-they-soar-53-and-135-according-to-wall-street
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nan
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nan
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Investors tend to get excited when a company splits its stock, and not just because the end result is a cheaper share price. Instead, a stock split is an implicit indicator of a good business. Only substantial share price appreciation makes a stock split necessary, and companies rarely wind up in that position by chance.
Several high-profile stock splits have occurred in the last few years, including:
Apple (NASDAQ: AAPL): 4-for-1 split in August 2020.
Amazon (NASDAQ: AMZN): 20-for-1 split in June 2022.
Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG): 20-for-1 split in July 2022.
Churchill Downs (NASDAQ: CHDN): 2-for-1 split in May 2023.
Dexcom (NASDAQ: DXCM): 4-for-1 split in June 2022.
Monster Beverage (NASDAQ: MNST): 2-for-1 split in March 2023.
Nvidia (NASDAQ: NVDA): 4-for-1 split July 2021.
Palo Alto Networks (NASDAQ: PANW): 3-for-1 split in September 2022.
Shopify (NYSE: SHOP): 10-for-1 split in June 2022.
Tesla (NASDAQ: TSLA): 3-for-1 split in August 2022.
Here are two stock-split growth stocks where Wall Street sees substantial upside.
1. Nvidia: 135% implied upside
Nvidia has seen its share price skyrocket this year amid a surge in excitement surrounding artificial intelligence (AI). But even after climbing 220% year to date, the stock still carries a consensus rating of "buy" among Wall Street analysts, according to CNN Business, and the highest 12-month price target of $1,100 per share implies a 135% upside from its current price.
Nvidia is best known for its graphics processing units or GPUs, chips that are synonymous with AI infrastructure. Indeed, Nvidia holds a 95% market share in machine learning processors, according to New Street Research, and the company has consistently delivered leading results at MLPerf training and inference events, the standard in benchmarking AI technologies from different vendors. But investors need to understand that Nvidia is more than a mere chipmaker.
The company has long provided pre-trained models and software libraries to supplement its hardware, and it recently formalized that strategy by launching subscription cloud and software products. DGX Cloud allows enterprises to provision Nvidia supercomputing infrastructure as a service, Nvidia AI Foundations helps developers build generative AI models, and the Nvidia AI Enterprise software suite accelerates the development and deployment of AI applications across a range of use cases, from recommender systems for retail to intelligent avatars for customer service.
Suffice it to say that Nvidia has evolved into a one-stop shop for enterprise AI, but its roots are in video game graphics, and the company still dominates that market. Nvidia holds more than 90% market share in workstation graphics, and it accounted for 84% of discrete desktop GPU sales in the first quarter, according to Jon Peddie Research.
Collectively, Nvidia sees a $1 trillion addressable market between hardware, software, and services, a colossal figure compared to the $33 billion in revenue the company earned over the last 12 months. But shares currently trade at 35.5 times sales, a substantial premium to the three-year average of 22.8 times sales, so I doubt shareholders will see triple-digit returns over the next 12 months.
In fact, I question whether Nvidia can outperform the market over the next five years from its current valuation, and I say that as a shareholder myself. Investors who want to buy this stock should wait for a better opportunity.
2. Alphabet: 53% implied upside
Alphabet shares have climbed 49% year to date, borne higher by the same AI tailwinds as Nvidia. But the stock still carries a consensus rating of "buy" among Wall Street analysts, according to CNN Business, and the highest 12-month price target of $200 per share implies a 53% upside from its current price.
Alphabet owns six products that serve over 2 billion users, including Google Search, Chrome, and YouTube. Those engaging platforms make the company a valuable advertising partner, so much so that Alphabet is the largest adtech company in the world. It accounted for nearly 30% of digital ad spend last year, and it will account for roughly the same this year, according to forecasts from eMarketer.
Alphabet is also gaining a share in cloud computing. Google Cloud Platform collected 11% of cloud infrastructure and platform services revenue in the second quarter, up from 8% one year ago and 6% three years ago. While not the only factor, AI expertise has contributed to those share gains. Industry analysts recently recognized Google as a leader in AI infrastructure and cloud AI developer services, and its strong competitive position in those categories should continue to drive growth in the future.
Here's the bottom line: Adtech and cloud computing sales are forecast to grow at roughly 14% annually through 2030. Alphabet should be able to match that pace at a minimum, a reasonable estimate given that its revenue increased at an annualized 18.5% over the last five years. That makes its current valuation of 5.9 times sales look reasonable, and it's a discount to the three-year average of 6.5 times sales.
There is no guarantee Alphabet will return 53% over the next 12 months, but patient investors willing to hold the stock for at least five years should consider buying a few shares today.
10 stocks we like better than Nvidia
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Nvidia wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of August 28, 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. Trevor Jennewine has positions in Amazon.com, Nvidia, Shopify, and Tesla. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Monster Beverage, Nvidia, Palo Alto Networks, Shopify, and Tesla. The Motley Fool recommends Churchill Downs and DexCom. 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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Several high-profile stock splits have occurred in the last few years, including: Apple (NASDAQ: AAPL): 4-for-1 split in August 2020. Indeed, Nvidia holds a 95% market share in machine learning processors, according to New Street Research, and the company has consistently delivered leading results at MLPerf training and inference events, the standard in benchmarking AI technologies from different vendors. Nvidia holds more than 90% market share in workstation graphics, and it accounted for 84% of discrete desktop GPU sales in the first quarter, according to Jon Peddie Research.
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Several high-profile stock splits have occurred in the last few years, including: Apple (NASDAQ: AAPL): 4-for-1 split in August 2020. But even after climbing 220% year to date, the stock still carries a consensus rating of "buy" among Wall Street analysts, according to CNN Business, and the highest 12-month price target of $1,100 per share implies a 135% upside from its current price. But the stock still carries a consensus rating of "buy" among Wall Street analysts, according to CNN Business, and the highest 12-month price target of $200 per share implies a 53% upside from its current price.
|
Several high-profile stock splits have occurred in the last few years, including: Apple (NASDAQ: AAPL): 4-for-1 split in August 2020. But even after climbing 220% year to date, the stock still carries a consensus rating of "buy" among Wall Street analysts, according to CNN Business, and the highest 12-month price target of $1,100 per share implies a 135% upside from its current price. DGX Cloud allows enterprises to provision Nvidia supercomputing infrastructure as a service, Nvidia AI Foundations helps developers build generative AI models, and the Nvidia AI Enterprise software suite accelerates the development and deployment of AI applications across a range of use cases, from recommender systems for retail to intelligent avatars for customer service.
|
Several high-profile stock splits have occurred in the last few years, including: Apple (NASDAQ: AAPL): 4-for-1 split in August 2020. But even after climbing 220% year to date, the stock still carries a consensus rating of "buy" among Wall Street analysts, according to CNN Business, and the highest 12-month price target of $1,100 per share implies a 135% upside from its current price. But the stock still carries a consensus rating of "buy" among Wall Street analysts, according to CNN Business, and the highest 12-month price target of $200 per share implies a 53% upside from its current price.
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14044.0
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2023-08-31 00:00:00 UTC
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Is It Time to Sell Bitcoin?
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AAPL
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https://www.nasdaq.com/articles/is-it-time-to-sell-bitcoin-1
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nan
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nan
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Bitcoin (CRYPTO: BTC) has been volatile lately. After hovering near the $30,000 mark for several weeks, a handful of mildly bearish news items drove the largest crypto down to $26,000. Then, a helpful legal verdict briefly pushed Bitcoin past $28,000 again.
These unpredictable price swings beg the question -- is it time to buy Bitcoin at a reasonable price, or time to sell before the coin takes a swan dive?
Let's take a look at both sides of the Bitcoin.
Reasons to sell Bitcoin today
Bitcoin bears have a few arguments in favor of cashing in their coins and moving on. For example:
Cryptocurrencies started 2023 in fine form, but the rally ran out of steam. The ups and downs of the last five months added up to nothing: Current Bitcoin prices also prevailed in the middle of May. Ergo, the bull run is over and the only way is down.
Master investors like Warren Buffett still don't see any value in digital currencies. Bitcoin is just a speculative gamble to the Oracle of Omaha, and he's a financial genius. He can't be wrong in the long run, right?
The long-awaited breakthroughs in regulations and legal codes are still conspicuously absent. You can't expect institutional investors and other heavyweights to put real money into Bitcoin until there's a robust governmental framework for owning and trading it. It's time to give up, since lawmakers and regulators keep dragging their feet.
Bitcoin is a bunch of numbers, automatically managed by computer programs. Where's the substance? This silly digital contraption shouldn't be worth thousands of dollars per token, because it doesn't really do anything.
Oh, and the immunity from inflation that many bulls hold up as a great reason to own this digital coin is just an illusion. The lifetime cap of 21 million Bitcoins is just a single value in the system management code, easily changed and forgotten.
Reasons to buy Bitcoin nowadays
On the other hand, bullish Bitcoin investors have plenty of arguments to fuel their digital fires:
Short-term chart squiggles don't mean much in the long run, and past performance is no guarantee of future returns. Whether the Bitcoin market moves up or down from here, the stalled pricing in the middle of 2023 won't mean much to future Bitcoin investors. But the leading crypto shows market-beating returns over the last three or five years, and the gap only grows if you stretch the timeline further. The Bitcoin community is building a game-changing financial tool here, and it shows in the sustained creation of long-term value.
Buffett is indeed an investing genius, but he would also be the first to tell you that he makes mistakes, too. In particular, he has been known to stay away from market-beating winners such as Amazon (NASDAQ: AMZN) and Apple (NASDAQ: AAPL) for years, partly because he doesn't like being late to the party. Yes, even Warren Buffett is human, and he may change his view on Bitcoin if the digital asset truly evolves into "digital gold." Apple and Amazon have turned into two of his largest investments, after all.
The legal wheels may grind slowly, but they do keep on moving. The Securities and Exchange Commission's (SEC) lawsuit against XRP's (CRYPTO: XRP) Ripple has moved on to precedent-setting appeals and trials, with strong support for treating (at least some) cryptos more like currencies than securities. In another legal case, the SEC has been ordered to stop kicking the can and finally review the Grayscale Bitcoin Trust's (OTC: GBTC) application to convert the Bitcoin fund into a more flexible exchange-traded fund. Both of these moves look like big steps forward, and Congress is also considering bills on crypto ownership.
Bitcoin is an advanced system for managing transactions and the value each contract represents. It keeps a publicly available record of financial actions on the open internet, protected by a complex system of encryption and a safety-in-numbers approach to transaction security. In Bitcoin's proof-of-work blockchain network, you can't roll back or duplicate transactions unless you control more than half of the global network of Bitcoin's mining nodes. That's an impossibly expensive idea. And this public yet ultra-secure system offers lower fees and faster resolution of transactions than traditional banking services. The blockchain ledger is a real and useful business tool.
Oh, and the large-scale computing requirements that protect Bitcoin's transactions play a similar role in protecting the anti-inflation cap. In order to change that value, you'd have to convince the owners of more than half of the world's Bitcoin miner machinery to dilute the value of their own current and future Bitcoin holdings. It would also undermine public trust in the whole Bitcoin system -- and cryptocurrencies at large. I don't see that happening.
Risks, meet rewards: Bitcoin is a solid long-term investment right now
There's a solid counterargument to every bearish complaint, but I'm not so sure about rebuttals for the bullish arguments. So I'm keeping a close eye on the legal developments and changes on the technical side of things, fully expecting the general price trend to continue upward in the long run. And we haven't even looked at upcoming value drivers such as the "halvening" of 2024 and rising interest in decentralized finance applications.
The conclusion is clear. This would be a terrible time to sell all your Bitcoin and walk away from the crypto market. If anything, Bitcoin's lull looks like a buying opportunity. Given the long-term value creation and advancements on the regulatory front, betting against Bitcoin now may be a decision you'll regret in 2024 and beyond.
10 stocks we like better than Bitcoin
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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.com, Bitcoin, Grayscale Bitcoin Trust, and XRP (Ripple). The Motley Fool has positions in and recommends Amazon.com, Apple, Bitcoin, and XRP (Ripple). 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 particular, he has been known to stay away from market-beating winners such as Amazon (NASDAQ: AMZN) and Apple (NASDAQ: AAPL) for years, partly because he doesn't like being late to the party. You can't expect institutional investors and other heavyweights to put real money into Bitcoin until there's a robust governmental framework for owning and trading it. It keeps a publicly available record of financial actions on the open internet, protected by a complex system of encryption and a safety-in-numbers approach to transaction security.
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In particular, he has been known to stay away from market-beating winners such as Amazon (NASDAQ: AMZN) and Apple (NASDAQ: AAPL) for years, partly because he doesn't like being late to the party. These unpredictable price swings beg the question -- is it time to buy Bitcoin at a reasonable price, or time to sell before the coin takes a swan dive? Anders Bylund has positions in Amazon.com, Bitcoin, Grayscale Bitcoin Trust, and XRP (Ripple).
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In particular, he has been known to stay away from market-beating winners such as Amazon (NASDAQ: AMZN) and Apple (NASDAQ: AAPL) for years, partly because he doesn't like being late to the party. Reasons to buy Bitcoin nowadays On the other hand, bullish Bitcoin investors have plenty of arguments to fuel their digital fires: Short-term chart squiggles don't mean much in the long run, and past performance is no guarantee of future returns. Whether the Bitcoin market moves up or down from here, the stalled pricing in the middle of 2023 won't mean much to future Bitcoin investors.
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In particular, he has been known to stay away from market-beating winners such as Amazon (NASDAQ: AMZN) and Apple (NASDAQ: AAPL) for years, partly because he doesn't like being late to the party. He can't be wrong in the long run, right? Whether the Bitcoin market moves up or down from here, the stalled pricing in the middle of 2023 won't mean much to future Bitcoin investors.
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14045.0
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2023-08-31 00:00:00 UTC
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This is How Salesforce.com Gets Back to its All-Time High
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AAPL
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https://www.nasdaq.com/articles/this-is-how-salesforce.com-gets-back-to-its-all-time-high
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nan
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nan
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Shares of Salesforce.com (NYSE: CRM) are still down sharply compared to the 2021 all-time high, but the stock can easily regain those levels. A combination of factors, including position, results, guidance, valuation, cash flow, share repurchases, and the analysts suggest this stock will retest the all-time high and may even set a new 1. The question now is how long the market will take to get there.
Salesforce.com Results Blow Past Consensus
Salesforce.com had a solid quarter underpinned by rising prices, new technologies, and its leadership position in CRM. It’s no coincidence the company’s stock ticker matches its industry because Marc Benioff and Salesforce.com revolutionized the practice and brought it into the modern world. Now, Salesforce.com is leaning hard into AI-powered services and has established itself as the leading AI CRM platform.
The company’s Q2 revenue grew by 11.4% because of the company’s strength. This aligns with other enterprise software firms, but Salesforce.com is several times larger than many of its closest competitors. Hence, its 11.4% growth matches the annual revenue of some stocks in the enterprise software group. Growth was driven by Subscription and Support, the core business, at 12% and offset by a slower service department advance.
Among the many good details in the report is leverage. The company widened its margin more than expected due to sales leverage and reduced spending. That left the adjusted operating margin at 31.6% for the quarter and led the company to raise guidance. Guidance for revenue and margin were increased to levels above the consensus targets, leading the analysts to readjust their targets for the quarter, the year, and the following year.
Salesforce.com is Undervalued at 28X Earnings
Salesforce.com trades at a relatively high 28X earnings compared to the S&P 500. However, the S&P 500 is not growing and widening its margin the way that Salesforce.com is, and Salesforce.com’s smaller peers trade at higher valuations with slowing growth. Looking to next year, Salesforce.com's P/E falls to 24X the consensus and the consensus is too low.
Assuming the company remains on its current trajectory, the valuation relative to the current stock price could fall into the mid-teens within the next 5 years while producing solid cash flow, paying down debt, and repurchasing shares. Established tech such as Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Adobe (NASDAQ: ADBE), and Palo Alto Networks (NASDAQ: PANW) are all trading at 30X earnings or higher, suggesting CRM can sustain a similar high valuation. In this light, the company will only have to grow earnings at 10% CAGR, below consensus, for earnings growth to get the stock to a new all-time within the next 3 years.
The Analysts And Institutions Are Driving Salesforce.com Higher
Analysts like what they see. Marketbeat.com’s tracking tools picked up 10 analyst revisions within the first 12 hours of the report and are all bullish. There were no upgrades, but the stock is already pegged at Moderate Buy. However, there were 10 upward price target revisions ranging from $220 to $280, lifting the entire market.
The new range compares well to the broad consensus of $229, trending higher than last month and last quarter. The consensus implies a 7% upside, but the new high and several other fresh targets have the stock trading in the range of $275 to $280, just below the all-time high at $311.75. Another quarter or 2 of solid results and the range of leading targets will be at or above that level.
Regarding the institutions, their activity spiked in Q3, with buyers outpacing sellers by nearly 3:1. They now own about 77% of the stock, and their holdings are growing. Their activity is also consistent with a solid support target; the price action in CRM pulled back to the 150-day EMA in Q3, resulting in a bounce from a critical level confirmed with the post-release action.
The next major hurdle will be resistance at $230. If the market can get above there, a move up to the $250 to $280 range is next. A move to the all-time high looks likely but may take some time. The catalysts to do it may come with the Q3 and Q4 reports later this year.
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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Established tech such as Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Adobe (NASDAQ: ADBE), and Palo Alto Networks (NASDAQ: PANW) are all trading at 30X earnings or higher, suggesting CRM can sustain a similar high valuation. A combination of factors, including position, results, guidance, valuation, cash flow, share repurchases, and the analysts suggest this stock will retest the all-time high and may even set a new 1. Salesforce.com Results Blow Past Consensus Salesforce.com had a solid quarter underpinned by rising prices, new technologies, and its leadership position in CRM.
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Established tech such as Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Adobe (NASDAQ: ADBE), and Palo Alto Networks (NASDAQ: PANW) are all trading at 30X earnings or higher, suggesting CRM can sustain a similar high valuation. A combination of factors, including position, results, guidance, valuation, cash flow, share repurchases, and the analysts suggest this stock will retest the all-time high and may even set a new 1. Guidance for revenue and margin were increased to levels above the consensus targets, leading the analysts to readjust their targets for the quarter, the year, and the following year.
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Established tech such as Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Adobe (NASDAQ: ADBE), and Palo Alto Networks (NASDAQ: PANW) are all trading at 30X earnings or higher, suggesting CRM can sustain a similar high valuation. Guidance for revenue and margin were increased to levels above the consensus targets, leading the analysts to readjust their targets for the quarter, the year, and the following year. In this light, the company will only have to grow earnings at 10% CAGR, below consensus, for earnings growth to get the stock to a new all-time within the next 3 years.
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Established tech such as Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Adobe (NASDAQ: ADBE), and Palo Alto Networks (NASDAQ: PANW) are all trading at 30X earnings or higher, suggesting CRM can sustain a similar high valuation. Guidance for revenue and margin were increased to levels above the consensus targets, leading the analysts to readjust their targets for the quarter, the year, and the following year. In this light, the company will only have to grow earnings at 10% CAGR, below consensus, for earnings growth to get the stock to a new all-time within the next 3 years.
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14046.0
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2023-08-31 00:00:00 UTC
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Bull Call Spread Screener Results For August 31st
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AAPL
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https://www.nasdaq.com/articles/bull-call-spread-screener-results-for-august-31st
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nan
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nan
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With major indexes getting back above their 50-day moving averages, it’s a good time to run the Bull Call Spread Screener.
A bull call spread is an options strategy that a trader uses when they believe the price of an underlying stock will move higher in the short term.
To execute the strategy, a trader would buy a call option and sell a further out-of-the-money call option with the following conditions:
Both call options must use the same underlying stock
Both call options must have the same expiration
Both call options must have the same number of options
Since the strike price of the sold call is higher than the strike price of the bought call, the initial position will be a net debit.
The bull call spread profits as the price of the underlying stock increases, similar to a regular long call.
The difference between a bull call spread and a regular long call is that the upside potential is capped by the short call.
The purpose of the short call is to mitigate some of the overall costs of the strategy at the expense of putting a ceiling on the profits.
Losses are also capped, in this case by the debit taken when you execute the trade.
Let’s take a look at Barchart’s Bull Call Spread Screener for August 31st:
As you can see, the scanner shows some interesting Iron Condor trades on stocks such as NIO, PLTR, F, AAPL, MSFT, NVDA, AMZN and AMD.
Let’s adjust the scanner to make sure we are only looking for bull call spreads on stock with a Buy rating and Mark Cap above 40 billion.
This scan gives us the following results:
AAPL Bull Call Spread Example
Let’s take a look at the first line item – a bull call spread on AAPL.
This bull call spread trade involves buying the November expiry $185 strike call and selling the $225 strike call.
Buying this spread costs around 10.16 or $1,016 per contract. That is also the maximum possible loss on the trade. The maximum potential gain can be calculated by taking the spread width, less the premium paid and multiplying by 100. That give us:
40 – 10.16 x 100 = $2,984.
If we take the maximum gain divided by the maximum loss, we see the trade has a return potential of 293.70%.
The probability of the trade being successful is 35.1%, although this is just an estimate and does not indicate the probability of achieving the maximum profit.
The spread will achieve the maximum profit if AAPL closes above 225 on November 17. The maximum loss will occur if AAPL closes below $185 on November 17, which would see the trader lose the $1,016 premium on the trade.
The breakeven point for the Bull Call Spread is $195.16 which is calculated as $185 plus the $10.16 option premium per contract.
The Barchart Technical Opinion rating is a 64% Buy with a Weakening short term outlook on maintaining the current direction.
Long term indicators fully support a continuation of the trend.
The market is in highly overbought territory. Beware of a trend reversal.
AAPL is showing an IV Percentile of 6% and an IV Rank of 7.86%. The current level of implied volatility is 19.55% compared to a 52-week high of 44.98% and a low of 17.38%.
MSFT Bull Call Spread Example
Let’s look at another example, this time using Microsoft.
This bull call spread also uses the November expiry and involves buying the $320 strike call and selling the $400 strike call.
This trade would cost $2,187 and have a maximum potential profit of $5,813.
The Barchart Technical Opinion rating is a 56% Buy with a Weakening short term outlook on maintaining the current direction.
Long term indicators fully support a continuation of the trend.
MSFT is showing an IV Percentile of 1% and an IV Rank of 3.87%. The current level of implied volatility is 20.18% compared to a 52-week high of 44.98% and a low of 19.19%.
Mitigating Risk
Thankfully, bull call spreads are risk defined trades, so they have some build in risk management. The most the AAPL example can lose is $1,016 while the MSFT call spread has risk of $2,187.
For each trade consider setting a stop loss of 25-30% of the max loss.
Also keep an eye on key support levels and moving averages.
Please remember that options are risky, and investors can lose 100% of their investment. This article is for education purposes only and not a trade recommendation. Remember to always do your own due diligence and consult your financial advisor before making any investment decisions.
More Stock Market News from Barchart
Stocks Finish Higher as Speculation Builds for a Less Aggressive Fed
Is Abercrombie & Fitch a Top 100 Stock to Buy or Sell?
Is Beyond Meat Getting Ready to Squeeze Higher?
On the date of publication, Gavin McMaster 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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Let’s take a look at Barchart’s Bull Call Spread Screener for August 31st: As you can see, the scanner shows some interesting Iron Condor trades on stocks such as NIO, PLTR, F, AAPL, MSFT, NVDA, AMZN and AMD. This scan gives us the following results: AAPL Bull Call Spread Example Let’s take a look at the first line item – a bull call spread on AAPL. The spread will achieve the maximum profit if AAPL closes above 225 on November 17.
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Let’s take a look at Barchart’s Bull Call Spread Screener for August 31st: As you can see, the scanner shows some interesting Iron Condor trades on stocks such as NIO, PLTR, F, AAPL, MSFT, NVDA, AMZN and AMD. This scan gives us the following results: AAPL Bull Call Spread Example Let’s take a look at the first line item – a bull call spread on AAPL. The spread will achieve the maximum profit if AAPL closes above 225 on November 17.
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Let’s take a look at Barchart’s Bull Call Spread Screener for August 31st: As you can see, the scanner shows some interesting Iron Condor trades on stocks such as NIO, PLTR, F, AAPL, MSFT, NVDA, AMZN and AMD. This scan gives us the following results: AAPL Bull Call Spread Example Let’s take a look at the first line item – a bull call spread on AAPL. The spread will achieve the maximum profit if AAPL closes above 225 on November 17.
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The most the AAPL example can lose is $1,016 while the MSFT call spread has risk of $2,187. Let’s take a look at Barchart’s Bull Call Spread Screener for August 31st: As you can see, the scanner shows some interesting Iron Condor trades on stocks such as NIO, PLTR, F, AAPL, MSFT, NVDA, AMZN and AMD. This scan gives us the following results: AAPL Bull Call Spread Example Let’s take a look at the first line item – a bull call spread on AAPL.
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14047.0
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2023-08-31 00:00:00 UTC
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S&P Futures Tick Higher Ahead of Key U.S. Inflation Data
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AAPL
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https://www.nasdaq.com/articles/sp-futures-tick-higher-ahead-of-key-u.s.-inflation-data
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nan
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nan
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September S&P 500 futures (ESU23) are trending up +0.06% this morning as market participants looked ahead to a reading on the Federal Reserve’s preferred inflation gauge.
In Wednesday’s trading session, Wall Street’s major averages ended in the green, with the benchmark S&P 500 rising to a 2-1/2 week high, the blue-chip Dow notching a 2-week high, and the tech-heavy Nasdaq 100 rising to a 3-1/2 week high. Insulet Corporation (PODD) climbed over +6% and was the top percentage gainer on the S&P 500 after the insulin pump maker’s CEO, James Hollingshead, disclosed the purchase of more than $1M worth of company shares. Also, Apple Inc (AAPL) rose more than +1% after Citigroup reiterated its Buy rating on the stock, expressing optimism regarding the upcoming launch of the iPhone 15 scheduled for September 12th. In addition, Netflix (NFLX) gained about +1% after Truist Securities raised its price target on the stock to $485 from $339. On the bearish side, HP Inc (HPQ) fell more than -6% after the PC giant posted mixed Q3 results and cut its full-year cash flow and profit outlook.
The ADP National Employment report on Wednesday showed private payrolls rose by 177K jobs in August, much lower than the consensus figure of 195K, signaling a softening labor market. Also, the second estimate of U.S. Q2 GDP was revised downward to +2.1% q/q from +2.4% q/q. At the same time, U.S. July pending home sales unexpectedly rose +0.9% m/m, stronger than expectations of -0.6% m/m.
“We’re back to a spot now where bad news is something of good news. The most recent data really shows that the economy is not overheating, and it keeps this sort of Goldilocks hope alive. It puts us back in the situation where we don’t have as much fear of additional rate hikes at this point,” said David Russell, global head of market strategy at TradeStation.
Meanwhile, U.S. rate futures have priced in an 11.5% probability of a 25 basis point rate increase at the September FOMC meeting and a 40.0% chance of a 25 basis point rate hike at November’s monetary policy meeting.
On the earnings front, notable companies like Broadcom (AVGO), VMware (VMW), Lululemon Athletica (LULU), Dell Tech (DELL), Dollar General (DG), and Campbell Soup (CPB) are slated to release their quarterly results today.
Today, all eyes are focused on the U.S. core personal consumption expenditures (PCE) price index, the Fed’s preferred inflation gauge, in a couple of hours. Economists, on average, forecast that the Core PCE Price Index will come in at +0.2% m/m and +4.2% y/y in July, compared to the previous values of +0.2% m/m and +4.1% y/y.
Also, investors will likely focus on the U.S. Chicago PMI reading, which stood at 42.8 in July. Economists foresee the August figure to be 44.1.
U.S. Personal Spending data will also be closely watched today. Economists forecast Personal Spending to be at +0.7% m/m in July, compared to the previous figure of +0.5% m/m.
U.S. Initial Jobless Claims data will be reported today as well. Economists estimate this figure to be 235K, compared to last week’s value of 230K.
In the bond markets, United States 10-year rates are at 4.103%, down -0.29%.
The Euro Stoxx 50 futures are up +0.07% this morning as investors digested a slew of important regional economic data while exercising caution in anticipation of the U.S. inflation print. Financial and real estate stocks gained ground on Thursday, while food and beverage stocks underperformed. Eurostat data showed on Thursday that Eurozone headline inflation unexpectedly remained unchanged in August, but underlying price growth fell as expected. Meanwhile, European Central Bank Executive Board member Isabel Schnabel said Thursday that the growth outlook for the euro area is bleaker than officials predicted in June, while underlying inflation remains “stubbornly high.” In corporate news, UBS Group Ag (UBSG.Z.IX) climbed over +6% after reporting the biggest-ever quarterly profit, attributed to its emergency acquisition of Credit Suisse Group AG.
Germany’s Retail Sales, France’s CPI (preliminary), France’s GDP, Germany’s Unemployment Change, Germany’s Unemployment Rate, Italy’s CPI (preliminary), Eurozone’s Unemployment Rate, Eurozone’s CPI (preliminary), and Eurozone’s Core CPI (preliminary) data were released today.
The German July Retail Sales stood at -0.8% m/m and -2.2% y/y, weaker than expectations of +0.3% m/m and -1.0% y/y.
The French August CPI came in at +1.0% m/m and +4.8% y/y, stronger than expectations of +0.8% m/m and +4.6% y/y.
The French GDP has been reported at +0.5% q/q in the second quarter, in line with expectations.
The German August Unemployment Change arrived at 18K, weaker than expectations of 10K.
The German August Unemployment Rate was at 5.7%, in line with expectations.
The Italian August CPI stood at +0.4% m/m and +5.5% y/y, stronger than expectations of +0.1% m/m and +5.3% y/y.
Eurozone July Unemployment Rate was at 6.4%, in line with expectations.
Eurozone August CPI has been reported at +0.6% m/m and +5.3% y/y, stronger than expectations of +0.4% m/m and +5.1% y/y.
Eurozone August Core CPI came in at +0.3% m/m and +5.3% y/y, in line with expectations.
Asian stock markets today closed mixed. China’s Shanghai Composite Index (SHCOMP) closed down -0.55%, and Japan’s Nikkei 225 Stock Index (NIK) closed up +0.88%.
China’s Shanghai Composite today closed lower as mixed business activity data weighed on risk appetite. An official factory survey showed Thursday that China’s manufacturing activity contracted for a fifth consecutive month in August, although the pace was slower than anticipated. Also, the services PMI showed slowing expansion, raising concerns that a downturn in the property sector was impacting the economy. Meanwhile, the People’s Bank of China met with lenders and private enterprises on Wednesday, pledging to enhance their access to funding as part of an initiative to stimulate economic growth. In other news, the southern business hubs of Guangzhou and Shenzhen implemented eased regulations on home purchases on Wednesday, allowing more individuals to access favorable mortgage conditions for their initial home purchases.
The Chinese August Manufacturing PMI stood at 49.7, stronger than expectations of 49.4.
The Chinese August Non-Manufacturing PMI came in at 51.0, weaker than expectations of 51.1.
At the same time, Japan’s Nikkei 225 Stock Index closed higher today, buoyed by gains in automobile stocks after Toyota Motor posted record monthly global sales, while stronger-than-expected retail sales data also boosted sentiment. Government data showed on Thursday that Japanese retail sales rose more than expected in July, extending a streak of expansion for the 17th consecutive month since March 2022. Separately, Japan’s factory output experienced a larger-than-anticipated decline in July, indicating a challenging start to the second half of the year for manufacturers. Meanwhile, automobile stocks outperformed on Thursday, underpinned by a more than +2% gain in Toyota Motor Corp after the automaker posted an 8% increase in July global sales to a record 859,506 vehicles. Chip stocks also gained ground, with chip-making equipment maker Tokyo Electron and chip-testing equipment maker Advantest rising over +1%. The Nikkei Volatility, which takes into account the implied volatility of Nikkei 225 options, closed down -4.79% to 16.89.
The Japanese July Industrial Production stood at -2.0% m/m, weaker than expectations of -1.4% m/m.
The Japanese July Retail Sales came in at +6.8% y/y, stronger than expectations of +5.4% y/y.
Pre-Market U.S. Stock Movers
Okta Inc (OKTA) climbed over +9% in pre-market trading after the company posted upbeat Q2 results and raised its FY24 guidance.
Salesforce Inc (CRM) soared more than +5% in pre-market trading after the cloud-computing giant posted better-than-expected Q2 results and lifted its FY24 guidance.
UGI Corporation (UGI) gained over +8% in pre-market trading after announcing that its Board of Directors initiated a process to evaluate potential strategic alternatives, especially focusing on the LPG businesses.
Victoria’s Secret & Co (VSCO) plunged more than -6% in pre-market trading after the company reported downbeat Q2 results and issued a soft Q3 outlook.
Crowdstrike Holdings Inc (CRWD) rose over +1% in pre-market trading after the cyber security company posted upbeat Q2 results and provided better-than-expected Q3 guidance.
Palantir Technologies Inc (PLTR) dropped more than -4% in pre-market trading after Morgan Stanley downgraded the stock to Underweight from Equal Weight.
Medical Properties Trust Inc (MPW) fell over -1% in pre-market trading after Mizuho downgraded the stock to Neutral from Buy.
You can see more pre-market stock movers here
Today’s U.S. Earnings Spotlight: Thursday - August 31st
Broadcom (AVGO), VMware (VMW), Lululemon Athletica (LULU), Dell Tech (DELL), Canadian Imperial Bank (CM), Dollar General (DG), Hormel Foods (HRL), Ke Hldg (BEKE), Campbell Soup (CPB), Polestar Automotive Holding A (PSNY), Nutanix (NTNX), Ciena Corp (CIEN), Elastic (ESTC), Hashicorp (HCP), Ollies Bargain Outlet Holdings Inc (OLLI), Academy Sports (ASO), Signet Jewelers (SIG), Chindata (CD), Pagerduty (PD), Hello Group (MOMO), Oxford Industries (OXM), Arco Platform (ARCE), Caleres (CAL), Quanex Building Products (NX), Amark Preci (AMRK), Titan Machinery (TITN), Genesco (GCO).
More Stock Market News from Barchart
Stocks Finish Higher as Speculation Builds for a Less Aggressive Fed
Is Abercrombie & Fitch a Top 100 Stock to Buy or Sell?
2 Blue-Chip Stocks to Buy for Long-Term Gains
Is Beyond Meat Getting Ready to Squeeze Higher?
On the date of publication, Oleksandr Pylypenko 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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Also, Apple Inc (AAPL) rose more than +1% after Citigroup reiterated its Buy rating on the stock, expressing optimism regarding the upcoming launch of the iPhone 15 scheduled for September 12th. Insulet Corporation (PODD) climbed over +6% and was the top percentage gainer on the S&P 500 after the insulin pump maker’s CEO, James Hollingshead, disclosed the purchase of more than $1M worth of company shares. The ADP National Employment report on Wednesday showed private payrolls rose by 177K jobs in August, much lower than the consensus figure of 195K, signaling a softening labor market.
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Also, Apple Inc (AAPL) rose more than +1% after Citigroup reiterated its Buy rating on the stock, expressing optimism regarding the upcoming launch of the iPhone 15 scheduled for September 12th. On the earnings front, notable companies like Broadcom (AVGO), VMware (VMW), Lululemon Athletica (LULU), Dell Tech (DELL), Dollar General (DG), and Campbell Soup (CPB) are slated to release their quarterly results today. Germany’s Retail Sales, France’s CPI (preliminary), France’s GDP, Germany’s Unemployment Change, Germany’s Unemployment Rate, Italy’s CPI (preliminary), Eurozone’s Unemployment Rate, Eurozone’s CPI (preliminary), and Eurozone’s Core CPI (preliminary) data were released today.
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Also, Apple Inc (AAPL) rose more than +1% after Citigroup reiterated its Buy rating on the stock, expressing optimism regarding the upcoming launch of the iPhone 15 scheduled for September 12th. Germany’s Retail Sales, France’s CPI (preliminary), France’s GDP, Germany’s Unemployment Change, Germany’s Unemployment Rate, Italy’s CPI (preliminary), Eurozone’s Unemployment Rate, Eurozone’s CPI (preliminary), and Eurozone’s Core CPI (preliminary) data were released today. At the same time, Japan’s Nikkei 225 Stock Index closed higher today, buoyed by gains in automobile stocks after Toyota Motor posted record monthly global sales, while stronger-than-expected retail sales data also boosted sentiment.
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Also, Apple Inc (AAPL) rose more than +1% after Citigroup reiterated its Buy rating on the stock, expressing optimism regarding the upcoming launch of the iPhone 15 scheduled for September 12th. Eurozone August CPI has been reported at +0.6% m/m and +5.3% y/y, stronger than expectations of +0.4% m/m and +5.1% y/y. At the same time, Japan’s Nikkei 225 Stock Index closed higher today, buoyed by gains in automobile stocks after Toyota Motor posted record monthly global sales, while stronger-than-expected retail sales data also boosted sentiment.
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14048.0
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2023-08-31 00:00:00 UTC
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3 "Magnificent Seven" Stocks Billionaires Are Buying Hand Over Fist
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AAPL
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https://www.nasdaq.com/articles/3-magnificent-seven-stocks-billionaires-are-buying-hand-over-fist
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nan
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nan
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Unpredictability and volatility have been the name of the game on Wall Street since this decade began. Not surprisingly, investors have turned their attention to industry-leading businesses that have a history of outperforming no matter what Wall Street throws their way. While this exclusive group had previously been limited to just five components (the FAANG stocks), investors have expanded their horizons and welcomed the "magnificent seven" with open arms.
When I say "magnificent seven," I'm referring to the following seven standout businesses:
Apple (NASDAQ: AAPL)
Microsoft (NASDAQ: MSFT)
Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG)
Amazon (NASDAQ: AMZN)
Nvidia (NASDAQ: NVDA)
Tesla (NASDAQ: TSLA)
Meta Platforms (NASDAQ: META)
Over the trailing decade, these seven stocks have run circles around the benchmark S&P 500.
Image source: Getty Images.
What's more, they offer well-defined competitive advantages, if not insurmountable moats. For instance, Alphabet's internet search engine, Google, has accounted for at least 90% of monthly global internet search share for the past eight years. Meanwhile, electric vehicle (EV) manufacturer Tesla is the overwhelming share leader in North America, as well as the only pure-play EV producer that's generating a profit.
The outperformance of the magnificent seven, coupled with their abundant competitive advantages, hasn't been lost on Wall Street's smartest money managers. Based on the latest round of Form 13Fs, billionaires bought three magnificent seven stocks hand over fist during the June-ended quarter.
Nvidia
The first of the magnificent seven stocks that billionaires absolutely piled into in the most recent quarter is none other than artificial intelligence (AI) kingpin Nvidia. It's usually impressive when around a half-dozen prominent billionaire money managers buy shares in an industry leader. Nvidia had 11 billionaires buying its stock during the June-ended quarter (number of shares purchased in Q2 in parenthesis):
Jeff Yass at Susquehanna International (5,401,204 shares)
Jim Simons at Renaissance Technologies (1,852,712 shares)
Israel Englander at Millennium Management (1,023,518 shares)
David Tepper at Appaloosa Management (870,000 shares)
Steven Cohen at Point72 Asset Management (662,385 shares)
Stephen Mandel at Lone Pine Capital (641,649 shares)
David Siegel and John Overdeck at Two Sigma Investments (629,072 shares)
Chase Coleman at Tiger Global Management (584,700 shares)
Dan Loeb at Third Point (500,000 shares)
Ole Andreas Halvorsen at Viking Global Investors (312,400 shares)
As noted, AI is Nvidia's core driver. Nvidia is expected to account for up to 90% of AI-driven graphics processing units (GPUs) being deployed in high-compute data centers. Demand for its A100 and H100 GPUs has afforded Nvidia exceptional pricing power at a time when high-compute GPU production is somewhat constrained. As a result, Nvidia has reported two absolute blowout quarters, in terms of data-center sales, in a row.
The wildcard here is that no one is exactly certain how much AI will contribute to U.S. and global gross domestic product, or what utility AI will serve in various industries. The euphoria of not wanting to miss out on AI uptake is what's fueling Nvidia's pricing power and AI-GPU demand in data centers.
But to be a bit of a party pooper, I'll also remind investors that every next-big-thing investment over the past 30 years has gone through an initial bubble. This isn't to say that next-big-trends don't eventually succeed. Rather, it's to point out that investor expectations often outpace realized demand, at least initially. The simple fact that Nvidia's costs have remained stable as sales have soared suggests the company is generating most, if not all, of its gains from increasing its prices and not from volume. That's a bit worrisome given that competition is ramping up.
Likewise, Nvidia's valuation has, arguably, gotten out of hand. Investors are currently paying around 96 times cash flow for a company that ended four of six years from 2013 through 2018 with a cash-flow multiple between 11 and 20. Outsize moves higher like we've seen from Nvidia are rarely sustainable.
Microsoft
A second magnificent seven stock that Wall Street billionaires simply can't get enough of is tech stock Microsoft. The second quarter saw seven billionaire money managers take the plunge (number of shares purchased in Q2 in parenthesis):
Israel Englander of Millennium Management (2,534,025 shares)
Philippe Laffont of Coatue Management (2,135,750 shares)
Ken Griffin of Citadel Advisors (2,041,023 shares)
Jeff Yass of Susquehanna International (1,742,377 shares)
Steven Cohen of Point72 Asset Management (1,373,840 shares)
David Tepper of Appaloosa Management (980,000 shares)
Dan Loeb of Third Point (470,000 shares)
The "why" behind these seven big-time buys likely has to do with the predictability of Microsoft's operating cash flow, the rapid growth of its cloud operations, and its balance sheet.
Though most investors are interested in Microsoft's fast-growing cloud operations, I'm quick to remind folks not to overlook old-school segments like Windows OEM or office consumer. These may not be fast-growing divisions ever again, but the Windows operating system is still dominant on global desktops. The juicy margins Microsoft generates from selling its software provides boatloads of highly predictable cash flow that the company can use to invest in faster-growing initiatives.
With regard to cloud, Microsoft appears to be firing on all cylinders. Azure is the world's No. 2 cloud infrastructure service provider. According to tech analysis company Canalys, it accounts for 26% of global cloud infrastructure service spending, which suggests it's gaining ground on Amazon, whose Amazon Web Services is currently No. 1 in the world. Even with growth "slowing," Azure still managed 27% currency-neutral sales growth in the fiscal fourth quarter, ended June 30.
There's also Microsoft's immaculate balance sheet. The company closed out its fiscal year with a little over $111 billion in cash, cash equivalents, and marketable securities, compared to just a tad over $47 billion in long-term debt. Microsoft is such a cash-flow machine that it's able to take chances via innovations and acquisitions that few other companies can afford.
Image source: Apple.
Apple
The third magnificent seven stock that billionaires have been buying hand over fist just happens to be the largest publicly traded company, Apple. A grand total of six highly successful billionaire fund managers bought shares of Apple during the second quarter (number of shares purchased in Q2 in parenthesis):
Jim Simons at Renaissance Technologies (4,912,234 shares)
David Siegel and John Overdeck at Two Sigma Investments (1,003,490 shares)
Israel Englander at Millennium Management (559,040 shares)
David Tepper at Appaloosa Management (480,000 shares)
Ken Fisher at Fisher Asset Management (417,648 shares)
Similar to Microsoft, the prevailing theme with Apple is consistency. It's widely considered to be the most valuable brand in the world, and it has a very loyal customer base. Apple has generated around $113 billion in operating cash flow over the trailing-12-month period and has relied on innovation to drive its sales and profits higher for more than a decade.
Billionaire investors (ahem, Warren Buffett) are likely enamored with Apple's capital-return program, too. Since commencing its aggressive share-repurchase program in 2013, Apple has bought back approximately $600 billion worth of its common stock. This mammoth buyback program is meaningfully reducing its share count and helping to boost its earnings per share.
But even with billionaires clearly throwing their support behind the largest publicly traded company in the United States, there's a big reason to be skeptical: Apple has completely shifted into neutral in the growth department. With the exception of its high-margin services segment, all of Apple's physical products could see their sales decline in fiscal 2023 (ending Sept. 30).
One of the key selling points of Apple for investors has always been its stellar growth rate. But with sales and profits expected to shift into reverse (albeit by a low-single-digit percentage) in fiscal 2023, Apple's valuation is quite pricey. Living up to investor expectations in the coming quarters may prove difficult.
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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. 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. Sean Williams has positions in Alphabet, Amazon.com, and Meta Platforms. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Meta Platforms, 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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When I say "magnificent seven," I'm referring to the following seven standout businesses: Apple (NASDAQ: AAPL) Microsoft (NASDAQ: MSFT) Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) Amazon (NASDAQ: AMZN) Nvidia (NASDAQ: NVDA) Tesla (NASDAQ: TSLA) Meta Platforms (NASDAQ: META) Over the trailing decade, these seven stocks have run circles around the benchmark S&P 500. Though most investors are interested in Microsoft's fast-growing cloud operations, I'm quick to remind folks not to overlook old-school segments like Windows OEM or office consumer. The juicy margins Microsoft generates from selling its software provides boatloads of highly predictable cash flow that the company can use to invest in faster-growing initiatives.
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When I say "magnificent seven," I'm referring to the following seven standout businesses: Apple (NASDAQ: AAPL) Microsoft (NASDAQ: MSFT) Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) Amazon (NASDAQ: AMZN) Nvidia (NASDAQ: NVDA) Tesla (NASDAQ: TSLA) Meta Platforms (NASDAQ: META) Over the trailing decade, these seven stocks have run circles around the benchmark S&P 500. Nvidia had 11 billionaires buying its stock during the June-ended quarter (number of shares purchased in Q2 in parenthesis): Jeff Yass at Susquehanna International (5,401,204 shares) Jim Simons at Renaissance Technologies (1,852,712 shares) Israel Englander at Millennium Management (1,023,518 shares) David Tepper at Appaloosa Management (870,000 shares) Steven Cohen at Point72 Asset Management (662,385 shares) Stephen Mandel at Lone Pine Capital (641,649 shares) David Siegel and John Overdeck at Two Sigma Investments (629,072 shares) Chase Coleman at Tiger Global Management (584,700 shares) Dan Loeb at Third Point (500,000 shares) Ole Andreas Halvorsen at Viking Global Investors (312,400 shares) As noted, AI is Nvidia's core driver. The second quarter saw seven billionaire money managers take the plunge (number of shares purchased in Q2 in parenthesis): Israel Englander of Millennium Management (2,534,025 shares) Philippe Laffont of Coatue Management (2,135,750 shares) Ken Griffin of Citadel Advisors (2,041,023 shares) Jeff Yass of Susquehanna International (1,742,377 shares) Steven Cohen of Point72 Asset Management (1,373,840 shares) David Tepper of Appaloosa Management (980,000 shares) Dan Loeb of Third Point (470,000 shares) The "why" behind these seven big-time buys likely has to do with the predictability of Microsoft's operating cash flow, the rapid growth of its cloud operations, and its balance sheet.
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When I say "magnificent seven," I'm referring to the following seven standout businesses: Apple (NASDAQ: AAPL) Microsoft (NASDAQ: MSFT) Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) Amazon (NASDAQ: AMZN) Nvidia (NASDAQ: NVDA) Tesla (NASDAQ: TSLA) Meta Platforms (NASDAQ: META) Over the trailing decade, these seven stocks have run circles around the benchmark S&P 500. Nvidia had 11 billionaires buying its stock during the June-ended quarter (number of shares purchased in Q2 in parenthesis): Jeff Yass at Susquehanna International (5,401,204 shares) Jim Simons at Renaissance Technologies (1,852,712 shares) Israel Englander at Millennium Management (1,023,518 shares) David Tepper at Appaloosa Management (870,000 shares) Steven Cohen at Point72 Asset Management (662,385 shares) Stephen Mandel at Lone Pine Capital (641,649 shares) David Siegel and John Overdeck at Two Sigma Investments (629,072 shares) Chase Coleman at Tiger Global Management (584,700 shares) Dan Loeb at Third Point (500,000 shares) Ole Andreas Halvorsen at Viking Global Investors (312,400 shares) As noted, AI is Nvidia's core driver. The second quarter saw seven billionaire money managers take the plunge (number of shares purchased in Q2 in parenthesis): Israel Englander of Millennium Management (2,534,025 shares) Philippe Laffont of Coatue Management (2,135,750 shares) Ken Griffin of Citadel Advisors (2,041,023 shares) Jeff Yass of Susquehanna International (1,742,377 shares) Steven Cohen of Point72 Asset Management (1,373,840 shares) David Tepper of Appaloosa Management (980,000 shares) Dan Loeb of Third Point (470,000 shares) The "why" behind these seven big-time buys likely has to do with the predictability of Microsoft's operating cash flow, the rapid growth of its cloud operations, and its balance sheet.
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When I say "magnificent seven," I'm referring to the following seven standout businesses: Apple (NASDAQ: AAPL) Microsoft (NASDAQ: MSFT) Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) Amazon (NASDAQ: AMZN) Nvidia (NASDAQ: NVDA) Tesla (NASDAQ: TSLA) Meta Platforms (NASDAQ: META) Over the trailing decade, these seven stocks have run circles around the benchmark S&P 500. Microsoft A second magnificent seven stock that Wall Street billionaires simply can't get enough of is tech stock Microsoft. Apple The third magnificent seven stock that billionaires have been buying hand over fist just happens to be the largest publicly traded company, Apple.
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14049.0
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2023-08-31 00:00:00 UTC
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7 Magnificent Stocks: Hedge Funds are Loading Up; Should Investors Follow?
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AAPL
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https://www.nasdaq.com/articles/7-magnificent-stocks%3A-hedge-funds-are-loading-up-should-investors-follow
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nan
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nan
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According to a Reuters report, Goldman Sachs' (NYSE:GS) data shows that hedge funds have significantly increased their exposure to the magnificent seven stocks, including Apple (NASDAQ:AAPL), Alphabet (NASDAQ:GOOGL)(NASDAQ:GOOG), Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), Nvidia (NASDAQ:NVDA), Meta Platforms (NASDAQ:META), and Tesla (NASDAQ:TSLA). Although hedge fund signals are positive for these tech giants, it is best for investors to analyze stocks on multiple parameters. For instance, savvy investors can leverage TipRanks’ Experts Center tools to make an informed investment decision.
With this backdrop, let’s check what the future holds for these stocks.
What are the Magnificent Seven Stocks Returning So Far?
After a dismal show in 2022, these seven stocks roared back, making their investors rich. (See the graph below.) The higher probability of less aggressive interest rate hikes in the coming months, continued moderation in the inflation rate, and the solid uptake of Generative AI (Artificial Intelligence) are why hedge funds and investors are buoyant on these magnificent seven stocks.
Leading the AI race is Nvidia, whose stock is galloping ahead with a stellar 237.2% gain on a year-to-date basis. Following Nvidia is the social media king, Meta Platforms, whose shares are up about 145%. During the same period, Tesla stock more than doubled, just when Amazon and Alphabet stocks are up about 61% and 54%, respectively.
Shares of the tech giant Apple have gained nearly 45%, while Microsoft, which is investing heavily in AI, witnessed a 38% growth in its stock.
Even if these stocks have appreciated significantly, the recovery in cloud computing, reacceleration in advertising spending, and AI-led opportunities continue to support the bull case. However, the economy still exhibits weakness, implying investors should take caution before going long on all seven magnificent stocks.
The Road Ahead
TipRanks’ Stock Comparison tool shows that NVDA, GOOGL, MSFT, and AMZN have received a Strong Buy consensus rating. Moreover, these stocks have an Outperform Smart Score on TipRanks.
Nvidia is poised to benefit from solid AI-led demand that will enable it to generate significant revenue and cash flows. Further, the company will likely enhance its shareholders’ returns through massive share buybacks. As for Alphabet, Microsoft, and Amazon, the reacceleration in the cloud segment, investments in AI and its integration into their products, and improvement in ad spending provide a solid foundation for future growth.
On the other hand, the decline in sales of the iPhone, iPad, and Mac in Q3 keeps analysts cautiously optimistic on Apple stock. Nevertheless, it has a “Perfect 10” Smart Score. Meanwhile, the near-term pressure on margins keeps analysts cautious about Tesla stock.
The Takeaway
As hedge funds and large institutions are known for generating market-beating returns, investors should closely watch their trades to form investing ideas.
However, when investing for the long term, one must also consider analyzing a stock on multiple parameters, including analysts’ ratings, fundamentals, and insider transactions, among others.
To make things easier for retail investors, TipRanks offers a valuable tool like the Smart Score, which scores stocks based on eight key parameters, such as Wall Street analysts’ ratings, corporate insider transactions, fundamentals, and technical analysis, among other metrics.
Based on Smart Score, Tesla and Meta are the two stocks with a Neutral Smart Score. Meanwhile, the rest carry an Outperform Smart Score, implying these stocks are more likely to beat the broader markets with their returns in the coming days.
Disclosure
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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According to a Reuters report, Goldman Sachs' (NYSE:GS) data shows that hedge funds have significantly increased their exposure to the magnificent seven stocks, including Apple (NASDAQ:AAPL), Alphabet (NASDAQ:GOOGL)(NASDAQ:GOOG), Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), Nvidia (NASDAQ:NVDA), Meta Platforms (NASDAQ:META), and Tesla (NASDAQ:TSLA). Even if these stocks have appreciated significantly, the recovery in cloud computing, reacceleration in advertising spending, and AI-led opportunities continue to support the bull case. The Road Ahead TipRanks’ Stock Comparison tool shows that NVDA, GOOGL, MSFT, and AMZN have received a Strong Buy consensus rating.
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According to a Reuters report, Goldman Sachs' (NYSE:GS) data shows that hedge funds have significantly increased their exposure to the magnificent seven stocks, including Apple (NASDAQ:AAPL), Alphabet (NASDAQ:GOOGL)(NASDAQ:GOOG), Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), Nvidia (NASDAQ:NVDA), Meta Platforms (NASDAQ:META), and Tesla (NASDAQ:TSLA). The Road Ahead TipRanks’ Stock Comparison tool shows that NVDA, GOOGL, MSFT, and AMZN have received a Strong Buy consensus rating. However, when investing for the long term, one must also consider analyzing a stock on multiple parameters, including analysts’ ratings, fundamentals, and insider transactions, among others.
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According to a Reuters report, Goldman Sachs' (NYSE:GS) data shows that hedge funds have significantly increased their exposure to the magnificent seven stocks, including Apple (NASDAQ:AAPL), Alphabet (NASDAQ:GOOGL)(NASDAQ:GOOG), Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), Nvidia (NASDAQ:NVDA), Meta Platforms (NASDAQ:META), and Tesla (NASDAQ:TSLA). To make things easier for retail investors, TipRanks offers a valuable tool like the Smart Score, which scores stocks based on eight key parameters, such as Wall Street analysts’ ratings, corporate insider transactions, fundamentals, and technical analysis, among other metrics. Based on Smart Score, Tesla and Meta are the two stocks with a Neutral Smart Score.
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According to a Reuters report, Goldman Sachs' (NYSE:GS) data shows that hedge funds have significantly increased their exposure to the magnificent seven stocks, including Apple (NASDAQ:AAPL), Alphabet (NASDAQ:GOOGL)(NASDAQ:GOOG), Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), Nvidia (NASDAQ:NVDA), Meta Platforms (NASDAQ:META), and Tesla (NASDAQ:TSLA). What are the Magnificent Seven Stocks Returning So Far? As for Alphabet, Microsoft, and Amazon, the reacceleration in the cloud segment, investments in AI and its integration into their products, and improvement in ad spending provide a solid foundation for future growth.
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14050.0
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2023-08-31 00:00:00 UTC
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PayPal (NASDAQ:PYPL): Analysts Expect the Stock to Rebound Despite Ongoing Pressures
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AAPL
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https://www.nasdaq.com/articles/paypal-nasdaq%3Apypl%3A-analysts-expect-the-stock-to-rebound-despite-ongoing-pressures
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nan
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nan
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Shares of fintech giant PayPal (NASDAQ:PYPL) have declined more than 14% over the past month and are down about 11% year-to-date. The company’s second-quarter results, announced earlier this month, came slightly ahead of estimates but failed to address investors’ concerns about margins and the impact of growing competition in the payments space. Nevertheless, several analysts remain bullish on the stock, especially after the announcement of a new CEO, and expect a solid upside potential.
Wall Street Expects PYPL Stock to Bounce Back
PayPal’s second-quarter revenue grew 7% year-over-year to $7.3 billion, while adjusted EPS increased nearly 25% to $1.16. The company’s Q2 2023 results and third-quarter outlook came ahead of expectations.
While the company’s Q2 2023 adjusted operating margin increased 228 basis points year-over-year to 21.4%, it fell short of analysts’ estimate of 22% and the first-quarter operation margin of 22.7%. PayPal’s margins have been under pressure due to the rapid growth of lower-margin businesses like Braintree (part of the company’s unbranded business) compared to the company’s branded offering.
Also, the company is facing increasing competition from several tech giants that are seeking growth in the fintech space, including Apple’s (NASDAQ:AAPL) Apple Pay mobile payment service. It is worth noting that PayPal ended the second quarter with 431 million active accounts, which marked a decline compared to 433 million as of Q1-end.
While some analysts lowered their price target following the Q2 print, Truist Financial analyst Andrew Jeffrey raised the price target for PYPL to $85 from $80 and reiterated a Buy rating on August 3. Jeffrey believes that the worst of the branded share loss is behind the company, given management’s commentary about Q2 2023 branded volume rising 6.5% and accelerating to 8% in July, with additional momentum expected in the second half of the year.
Like Jeffrey, Goldman Sachs analyst Michael Ng is also bullish on PYPL and reiterated a Buy rating with a price target of $89 on August 18. Reacting to the news of the appointment of Alex Chriss, a senior executive at Intuit (NASDAQ:INTU), as the new CEO of PayPal succeeding Daniel Schulman, the analyst said that it removes a “key overhang” on PYPL stock. He expects the company to benefit from Chriss’ experience in product development, small and medium business (SMB) solutions, and payments.
Chriss most recently served as the executive vice president and general manager of Intuit’s Small Business and Self-Employed Group, which accounts for over 50% of Intuit's revenue.
The price targets of Jeffrey and Ng indicate upside potential of 34% and 40.3%, respectively, in PYPL stock from current levels.
Is PYPL a Buy, Sell, or Hold?
With 20 Buys and 10 Holds, Wall Street has a Moderate Buy consensus rating on PayPal. The average price target of $87.38 implies about 38% upside potential.
Conclusion
PayPal stock is down year-to-date due to concerns about the company’s margins and growing rivalry. That said, several analysts remain optimistic about the road ahead, especially after the appointment of the company’s new CEO. During the Q2 2023earnings call management assured investors that the company is in the process of launching high-margin, value-added services, expanding internationally, and making significant progress with in-person payments.
Disclosure
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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Also, the company is facing increasing competition from several tech giants that are seeking growth in the fintech space, including Apple’s (NASDAQ:AAPL) Apple Pay mobile payment service. The company’s second-quarter results, announced earlier this month, came slightly ahead of estimates but failed to address investors’ concerns about margins and the impact of growing competition in the payments space. Reacting to the news of the appointment of Alex Chriss, a senior executive at Intuit (NASDAQ:INTU), as the new CEO of PayPal succeeding Daniel Schulman, the analyst said that it removes a “key overhang” on PYPL stock.
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Also, the company is facing increasing competition from several tech giants that are seeking growth in the fintech space, including Apple’s (NASDAQ:AAPL) Apple Pay mobile payment service. Shares of fintech giant PayPal (NASDAQ:PYPL) have declined more than 14% over the past month and are down about 11% year-to-date. Wall Street Expects PYPL Stock to Bounce Back PayPal’s second-quarter revenue grew 7% year-over-year to $7.3 billion, while adjusted EPS increased nearly 25% to $1.16.
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Also, the company is facing increasing competition from several tech giants that are seeking growth in the fintech space, including Apple’s (NASDAQ:AAPL) Apple Pay mobile payment service. PayPal’s margins have been under pressure due to the rapid growth of lower-margin businesses like Braintree (part of the company’s unbranded business) compared to the company’s branded offering. While some analysts lowered their price target following the Q2 print, Truist Financial analyst Andrew Jeffrey raised the price target for PYPL to $85 from $80 and reiterated a Buy rating on August 3.
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Also, the company is facing increasing competition from several tech giants that are seeking growth in the fintech space, including Apple’s (NASDAQ:AAPL) Apple Pay mobile payment service. Shares of fintech giant PayPal (NASDAQ:PYPL) have declined more than 14% over the past month and are down about 11% year-to-date. The company’s second-quarter results, announced earlier this month, came slightly ahead of estimates but failed to address investors’ concerns about margins and the impact of growing competition in the payments space.
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14051.0
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2023-08-30 00:00:00 UTC
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Should Schwab 1000 Index ETF (SCHK) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-schwab-1000-index-etf-schk-be-on-your-investing-radar-9
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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 Schwab 1000 Index ETF (SCHK), a passively managed exchange traded fund launched on 10/11/2017.
The fund is sponsored by Charles Schwab. It has amassed assets over $2.93 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. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.
Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.
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 0.05%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.41%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, 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 27.40% of the portfolio. Healthcare and Financials round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.76% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN).
The top 10 holdings account for about 27.26% of total assets under management.
Performance and Risk
SCHK seeks to match the performance of the Schwab 1000 Index before fees and expenses. The Schwab 1000 Index is a float-adjusted market capitalization weighted index that includes the 1,000 largest stocks of publicly traded companies in the United States, with size being determined by market capitalization. The index is designed to be a measure of the performance of large- and mid-cap U.S. stocks.
The ETF has gained about 18.11% so far this year and is up roughly 12.56% in the last one year (as of 08/30/2023). In the past 52-week period, it has traded between $34.56 and $44.27.
The ETF has a beta of 1.02 and standard deviation of 18.60% for the trailing three-year period. With about 988 holdings, it effectively diversifies company-specific risk.
Alternatives
Schwab 1000 Index 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, SCHK is a good 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 $353.22 billion in assets, SPDR S&P 500 ETF has $414.70 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.
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Schwab 1000 Index ETF (SCHK): 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 6.76% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report Schwab 1000 Index ETF (SCHK): 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 $2.93 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 Schwab 1000 Index ETF (SCHK): 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 6.76% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). You should consider the Schwab 1000 Index ETF (SCHK), a passively managed exchange traded fund launched on 10/11/2017.
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Click to get this free report Schwab 1000 Index ETF (SCHK): 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 6.76% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Alternatives Schwab 1000 Index 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 6.76% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report Schwab 1000 Index ETF (SCHK): 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. You should consider the Schwab 1000 Index ETF (SCHK), a passively managed exchange traded fund launched on 10/11/2017.
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14052.0
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2023-08-30 00:00:00 UTC
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US STOCKS-Wall Street ends higher as economic data fuels rate-pause bets
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-ends-higher-as-economic-data-fuels-rate-pause-bets
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nan
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nan
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By Shristi Achar A and Noel Randewich
Aug 30 (Reuters) - The S&P 500 .SPX and Nasdaq .IXICclosed higher on Wednesday as fresh economic data signaled a cooling U.S. economy, reinforcing expectations the Federal Reserve will pause rate hikes in September.
The S&P 500 index reached its highest in nearly three weeks after an ADP National Employment report showed private payrolls increased by 177,000 jobs in August, compared with estimates of 195,000, suggesting a softening labor market.
Fresh gross domestic product numbers showed the U.S. economy expanded 2.1% in the second quarter, slower than a preliminary estimate of a 2.4% growth.
"Somewhat softer employment data is easing investor concerns for future Federal Reserve interest rate hikes," said Rob Haworth, a senior investment strategist at U.S. Bank Wealth Management.
The prospect of a "softer landing" for the U.S. economy also supported demand for growth stocks and other riskier assets at the expense of defensive stocks, Haworth added.
Mastercard MA.N and Visa N> gained after a report said the companies were preparing to raise credit card fees.
HP IncHPQ.Ntumbled after the personal computer maker trimmed its annual forecast due to slowing demand.
Traders' bets on the Fed leaving interest rates unchanged in September stood at nearly 89%, up from 86% the day before, while bets of a pause in November rose to 54% from about 52%, the CME Group's FedWatch tool showed.
U.S. Treasury yields slipped to a near three-week low, with the 10-year yield US10YT=RR last at 4.12%.
Unofficially, the S&P 500 climbed 0.39% to end the session at 4,515.00 points.
The Nasdaq gained 0.54% to 14,019.31 points, while Dow Jones Industrial Average rose 0.11% to 34,890.77 points.
Chipmaker Nvidia NVDA.O, Alphabet GOOGL.O and Apple AAPL.O gained.
Investors are now looking to the personal consumption expenditures price index, the Fed's preferred measure of inflation, and non-farm payroll numbers due on Thursday and Friday, respectively, for more clues on interest rates.
Trading activity has been light this week ahead of the U.S. Labor Day holiday on Monday.
Brown-FormanBFb.Nfell after the Jack Daniels whiskey maker missed its first-quarter sales and profit estimates.
(Reporting by Shristi Achar A and Amruta Khandekar in Bengaluru and by Noel Randewich in Oakland, Calif; Editing by Savio D'Souza, Vinay Dwivedi and Richard Chang)
((noel.randewich@tr.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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Chipmaker Nvidia NVDA.O, Alphabet GOOGL.O and Apple AAPL.O gained. By Shristi Achar A and Noel Randewich Aug 30 (Reuters) - The S&P 500 .SPX and Nasdaq .IXICclosed higher on Wednesday as fresh economic data signaled a cooling U.S. economy, reinforcing expectations the Federal Reserve will pause rate hikes in September. The S&P 500 index reached its highest in nearly three weeks after an ADP National Employment report showed private payrolls increased by 177,000 jobs in August, compared with estimates of 195,000, suggesting a softening labor market.
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Chipmaker Nvidia NVDA.O, Alphabet GOOGL.O and Apple AAPL.O gained. By Shristi Achar A and Noel Randewich Aug 30 (Reuters) - The S&P 500 .SPX and Nasdaq .IXICclosed higher on Wednesday as fresh economic data signaled a cooling U.S. economy, reinforcing expectations the Federal Reserve will pause rate hikes in September. The S&P 500 index reached its highest in nearly three weeks after an ADP National Employment report showed private payrolls increased by 177,000 jobs in August, compared with estimates of 195,000, suggesting a softening labor market.
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Chipmaker Nvidia NVDA.O, Alphabet GOOGL.O and Apple AAPL.O gained. By Shristi Achar A and Noel Randewich Aug 30 (Reuters) - The S&P 500 .SPX and Nasdaq .IXICclosed higher on Wednesday as fresh economic data signaled a cooling U.S. economy, reinforcing expectations the Federal Reserve will pause rate hikes in September. The S&P 500 index reached its highest in nearly three weeks after an ADP National Employment report showed private payrolls increased by 177,000 jobs in August, compared with estimates of 195,000, suggesting a softening labor market.
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Chipmaker Nvidia NVDA.O, Alphabet GOOGL.O and Apple AAPL.O gained. By Shristi Achar A and Noel Randewich Aug 30 (Reuters) - The S&P 500 .SPX and Nasdaq .IXICclosed higher on Wednesday as fresh economic data signaled a cooling U.S. economy, reinforcing expectations the Federal Reserve will pause rate hikes in September. The S&P 500 index reached its highest in nearly three weeks after an ADP National Employment report showed private payrolls increased by 177,000 jobs in August, compared with estimates of 195,000, suggesting a softening labor market.
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14053.0
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2023-08-30 00:00:00 UTC
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Apple starts testing 3D printers to make smartwatch casings - Bloomberg News
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AAPL
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https://www.nasdaq.com/articles/apple-starts-testing-3d-printers-to-make-smartwatch-casings-bloomberg-news
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nan
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nan
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Aug 30 (Reuters) - Apple AAPL.O is testing 3D printers to make the steel frames of some of its upcoming smartwatches, Bloomberg News reported on Wednesday, citing people with knowledge of the matter.
The production technique would render obsolete the need to cut parts of metal into the product's shape, reducing the time it takes to make the devices and also helping the environment, according to the report.
The approach has the potential to streamline Apple's supply chain and if the tests with the Apple watches are successful, the company will look to use the technology on more products over the next several years, the report added.
Apple did not immediately respond to Reuters request for a comment.
The company also plans to apply the process to its titanium Ultra watch, but the shift isn't planned until 2024, the report said.
Apple is set to host their fall event on Sept. 12, where analysts believe the world's most valuable company will unveil a new line of smartwatches and iPhones.
(Reporting by Zaheer Kachwala in Bengaluru; Editing by Shailesh Kuber)
((Zaheer.Kachwala@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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Aug 30 (Reuters) - Apple AAPL.O is testing 3D printers to make the steel frames of some of its upcoming smartwatches, Bloomberg News reported on Wednesday, citing people with knowledge of the matter. The production technique would render obsolete the need to cut parts of metal into the product's shape, reducing the time it takes to make the devices and also helping the environment, according to the report. Apple is set to host their fall event on Sept. 12, where analysts believe the world's most valuable company will unveil a new line of smartwatches and iPhones.
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Aug 30 (Reuters) - Apple AAPL.O is testing 3D printers to make the steel frames of some of its upcoming smartwatches, Bloomberg News reported on Wednesday, citing people with knowledge of the matter. The approach has the potential to streamline Apple's supply chain and if the tests with the Apple watches are successful, the company will look to use the technology on more products over the next several years, the report added. The company also plans to apply the process to its titanium Ultra watch, but the shift isn't planned until 2024, the report said.
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Aug 30 (Reuters) - Apple AAPL.O is testing 3D printers to make the steel frames of some of its upcoming smartwatches, Bloomberg News reported on Wednesday, citing people with knowledge of the matter. The production technique would render obsolete the need to cut parts of metal into the product's shape, reducing the time it takes to make the devices and also helping the environment, according to the report. The approach has the potential to streamline Apple's supply chain and if the tests with the Apple watches are successful, the company will look to use the technology on more products over the next several years, the report added.
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Aug 30 (Reuters) - Apple AAPL.O is testing 3D printers to make the steel frames of some of its upcoming smartwatches, Bloomberg News reported on Wednesday, citing people with knowledge of the matter. The production technique would render obsolete the need to cut parts of metal into the product's shape, reducing the time it takes to make the devices and also helping the environment, according to the report. The approach has the potential to streamline Apple's supply chain and if the tests with the Apple watches are successful, the company will look to use the technology on more products over the next several years, the report added.
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14054.0
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2023-08-30 00:00:00 UTC
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2 Blue-Chip Stocks to Buy for Long-Term Gains
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AAPL
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https://www.nasdaq.com/articles/2-blue-chip-stocks-to-buy-for-long-term-gains
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nan
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nan
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In the investing world, blue-chip stocks are those that command a dominant position in their respective industries, issued by companies that offer a unique blend of stability and reliability. While blue chips typically don't offer the explosive growth potential seen in emerging tech industries, they compensate with a dependability many investors find comforting.
As we navigate an era where financial opportunities can seem both boundless and unpredictable, anchoring one's portfolio with some of the top blue-chip stocks is imperative in paving the way for sustained portfolio growth.
Coca-Cola
Coca-Cola (KO), known for quenching global thirsts with its iconic beverages, is a blue-chip stalwart. Its stable of product offerings have become cultural symbols, underscoring its resilience in the market and continuing to entice buy-and-hold investors with its reliable legacy and refreshing potential.
KO hasn't been the greatest wealth compounder over the years. Down 3.5% year-to-date, it pales in comparison to the 17.7% gain for the S&P 500 Index ($SPX). However, for those with an eye for value, this could be a golden opportunity to scoop up a top dividend stock.
www.barchart.com
Coca-Cola's second-quarter results highlight its resilience. It delivered an 8.3% earnings surprise, with earnings-per-share of 78 cents beating estimates by six cents. In three of the past four quarters, the firm has posted an earnings surprise, a testament to its stellar execution.
Delving deeper, the 11% organic sales growth emerges as a standout metric, fueled by heightened demand and pricing for its diverse brands, despite stagnant sales volumes. Consequently, KO raised its sales projections for 2023, and now anticipates full-year adjusted organic revenue growth between 8% and 9%.
While the 20.1% operating margin came in behind last year's 20.7%, KO's strategic cost-cutting measures have, by and large, effectively safeguarded its margins.
www.barchart.com
Furthermore, Coca-Cola shines as a dividend king, having bolstered its payouts for an impressive 60 consecutive years. With an annual payout of $1.80, KO stock boasts a solid 2.98% yield with a payout ratio of around 69%, hinting at potential room for further generosity. Notably, its recent 1-year dividend growth of 4.6% eclipses its 5-year average of 3.3%, a testament to the company's commitment to its shareholders.
Out of the 14 analyst ratings on the stock, a compelling 11 tag it as a “Strong Buy.” One leans towards a “Moderate Buy,” while two suggest a “Hold.” The average 12-month price target of $70.07 implies expected upside of about 16% from current levels. Furthermore, hedge funds also seem bullish, as they collectively increased their KO exposure by over 510,000 shares in the recent quarter.
www.barchart.com
Apple
In the tech realm, Apple (AAPL) stands out as a leader for its innovation and its unmatched array of products, including its flagship iPhone.
Throughout the first half of 2023, Apple stock buyers charted a bullish course. The buzz surrounding artificial intelligence (AI) drove new enthusiasm for the tech sector after a volatile 2022, and investors scooped up shares of market leader AAPL in droves. Additionally, traders responded zealously to new product announcements, such as the Vision Pro headset.
Consequently, AAPL has delivered a nearly 45% gain year-to-date, easily outperforming the S&P 500. It’s important to note that after lagging the SPX by a wide margin in the fourth quarter of 2022, AAPL came back strong, and has consistently outpaced the S&P 500 since early in the first quarter of 2023.
www.barchart.com
Apple followed up its earnings surprise in the second quarter with another robust showing in the third quarter. Apple reported earnings of $1.26 per share, beating analysts' estimates, and revenue of $81.8 billion arrived right in line with estimates - but investors reacted poorly to a narrow miss on iPhone sales.
Amidst the headlines about the iPhone miss, investors may have missed that Apple's Services revenue surpassed expectations, rising more than 8% to $21.2 billion. Also, CEO Tim Cook announced a milestone of over 1 billion active paid subscriptions.
www.barchart.com
Apple also maintained its dividend payout for shareholders, announcing a payout of 24 cents per share. Furthermore, despite the drop in sales, it spent a whopping $18 billion on share repurchases in the most recent quarter. Since 2012, the tech behemoth has spent more than $570 billion in share buybacks since 2012.
Looking forward, the buzz around AAPL is palpable as the September 12 date approaches for the iPhone 15 unveiling. Ahead of this catalyst, top Apple analyst Ming-Chi Kuo predicts a stock rebound. He believes the iPhone 15's launch might boost Apple's shares, and says the company could eventually dethrone Samsung by selling a projected 250 million units in 2024.
Likewise, AAPL has room to rally, based on analyst targets. The stock trades roughly 8.7% below the average analyst price target of $205.07, and the consensus rating from 29 analysts is a “Moderate Buy.” In fact, 18 of those 29 analysts suggest that the stock is a “Strong Buy” at this time.
www.barchart.com
Takeaway
Coca-Cola and Apple - both iconic brands in their respective sectors - continue to live up to their blue-chip status. Coca-Cola continues to be a dividend heavyweight with six decades of consistent payouts, while Apple stands out with its impressive year-to-date gains and innovative leadership. At current levels, investors can feel confident buying into their robust track records and the bullish sentiments expressed by market analysts.
On the date of publication, Muslim Farooque 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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www.barchart.com Apple In the tech realm, Apple (AAPL) stands out as a leader for its innovation and its unmatched array of products, including its flagship iPhone. The buzz surrounding artificial intelligence (AI) drove new enthusiasm for the tech sector after a volatile 2022, and investors scooped up shares of market leader AAPL in droves. Consequently, AAPL has delivered a nearly 45% gain year-to-date, easily outperforming the S&P 500.
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The buzz surrounding artificial intelligence (AI) drove new enthusiasm for the tech sector after a volatile 2022, and investors scooped up shares of market leader AAPL in droves. www.barchart.com Apple In the tech realm, Apple (AAPL) stands out as a leader for its innovation and its unmatched array of products, including its flagship iPhone. Consequently, AAPL has delivered a nearly 45% gain year-to-date, easily outperforming the S&P 500.
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It’s important to note that after lagging the SPX by a wide margin in the fourth quarter of 2022, AAPL came back strong, and has consistently outpaced the S&P 500 since early in the first quarter of 2023. www.barchart.com Apple followed up its earnings surprise in the second quarter with another robust showing in the third quarter. www.barchart.com Apple In the tech realm, Apple (AAPL) stands out as a leader for its innovation and its unmatched array of products, including its flagship iPhone. The buzz surrounding artificial intelligence (AI) drove new enthusiasm for the tech sector after a volatile 2022, and investors scooped up shares of market leader AAPL in droves.
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The buzz surrounding artificial intelligence (AI) drove new enthusiasm for the tech sector after a volatile 2022, and investors scooped up shares of market leader AAPL in droves. www.barchart.com Apple In the tech realm, Apple (AAPL) stands out as a leader for its innovation and its unmatched array of products, including its flagship iPhone. Consequently, AAPL has delivered a nearly 45% gain year-to-date, easily outperforming the S&P 500.
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14055.0
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2023-08-30 00:00:00 UTC
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US STOCKS-Wall St rises as weak economic data fuels rate-pause optimism
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-rises-as-weak-economic-data-fuels-rate-pause-optimism
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nan
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nan
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By Shristi Achar A and Noel Randewich
Aug 30 (Reuters) - The S&P 500 .SPX and Nasdaq .IXIC rose on Wednesday as fresh economic data signaled a cooling U.S. economy, reinforcing expectations the Federal Reserve will pause rate hikes in September.
The S&P 500 index traded at its highest in nearly three weeks after an ADP National Employment report showed private payrolls increased by 177,000 jobs in August, compared with estimates of 195,000, suggesting a softening labor market.
Fresh gross domestic product (GDP) numbers showed the U.S. economy expanded 2.1% in the second quarter, slower than a preliminary estimate of a 2.4% growth.
"Somewhat softer employment data is easing investor concerns for future Federal Reserve interest rate hikes," said Rob Haworth, a senior investment strategist at U.S. Bank Wealth Management.
The prospect of a "softer landing" for the U.S. economy also supported demand for growth stocks and other riskier assets at the expense of defensive stocks, Haworth added.
Of the 11 S&P 500 sector indexes, eight rose, led by information technology .SPLRCT, up 0.62%, followed by a 0.42% gain in energy .SPNY.
Mastercard MA.N and Visa V.N added 0.8% and 0.4%, respectively, after a report said the companies were preparing to raise credit card fees.
HP IncHPQ.N tumbled 7.1% after the personal computer maker trimmed its annual forecast due to slowing demand.
Traders' bets on the Fed leaving interest rates unchanged in September stood at nearly 89%, up from 86% the day before, while bets of a pause in November rose to 54% from about 52%, the CME Group's FedWatch tool showed.
U.S. Treasury yields slipped to a near three-week low, with the 10-year yield US10YT=RRlast at 4.1%.
The S&P 500 was up 0.23% at 4,507.83 points.
The Nasdaq Composite Index gained 0.27% to 13,981.96 points, while the Dow Jones Industrial Average was unchanged at 34,853.99 points.
Chipmaker Nvidia climbed 1.3%, while Apple AAPL.O added more than 1%.
Investors are now looking to the personal consumption expenditures price index, the Fed's preferred measure of inflation, and non-farm payroll numbers due on Thursday and Friday, respectively, for more clues on interest rates.
Trading activity has been light this week ahead of the U.S. Labor Day holidayon Monday.
Brown-FormanBFb.Nfell 4% after the Jack Daniels whiskey maker missed its first-quarter sales and profit estimates.
Advancing issues outnumbered falling ones within the S&P 500 .AD.SPX by a 1.6-to-one ratio.
The S&P 500 posted 23 new highs and one new low; the Nasdaq recorded 59 new highs and 62 new lows.
(Reporting by Shristi Achar A and Amruta Khandekar in Bengaluru and by Noel Randewich in Oakland, Calif; Editing by Savio D'Souza, Vinay Dwivedi and Richard Chang)
((noel.randewich@tr.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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Chipmaker Nvidia climbed 1.3%, while Apple AAPL.O added more than 1%. By Shristi Achar A and Noel Randewich Aug 30 (Reuters) - The S&P 500 .SPX and Nasdaq .IXIC rose on Wednesday as fresh economic data signaled a cooling U.S. economy, reinforcing expectations the Federal Reserve will pause rate hikes in September. The S&P 500 index traded at its highest in nearly three weeks after an ADP National Employment report showed private payrolls increased by 177,000 jobs in August, compared with estimates of 195,000, suggesting a softening labor market.
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Chipmaker Nvidia climbed 1.3%, while Apple AAPL.O added more than 1%. By Shristi Achar A and Noel Randewich Aug 30 (Reuters) - The S&P 500 .SPX and Nasdaq .IXIC rose on Wednesday as fresh economic data signaled a cooling U.S. economy, reinforcing expectations the Federal Reserve will pause rate hikes in September. "Somewhat softer employment data is easing investor concerns for future Federal Reserve interest rate hikes," said Rob Haworth, a senior investment strategist at U.S. Bank Wealth Management.
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Chipmaker Nvidia climbed 1.3%, while Apple AAPL.O added more than 1%. By Shristi Achar A and Noel Randewich Aug 30 (Reuters) - The S&P 500 .SPX and Nasdaq .IXIC rose on Wednesday as fresh economic data signaled a cooling U.S. economy, reinforcing expectations the Federal Reserve will pause rate hikes in September. The S&P 500 index traded at its highest in nearly three weeks after an ADP National Employment report showed private payrolls increased by 177,000 jobs in August, compared with estimates of 195,000, suggesting a softening labor market.
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Chipmaker Nvidia climbed 1.3%, while Apple AAPL.O added more than 1%. By Shristi Achar A and Noel Randewich Aug 30 (Reuters) - The S&P 500 .SPX and Nasdaq .IXIC rose on Wednesday as fresh economic data signaled a cooling U.S. economy, reinforcing expectations the Federal Reserve will pause rate hikes in September. The S&P 500 index traded at its highest in nearly three weeks after an ADP National Employment report showed private payrolls increased by 177,000 jobs in August, compared with estimates of 195,000, suggesting a softening labor market.
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14056.0
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2023-08-30 00:00:00 UTC
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After Hours Most Active for Aug 30, 2023 : INTC, BEKE, DIS, KVUE, AMZN, FOCS, CRM, BKI, NWL, AAPL, RLJ, PYPL
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-aug-30-2023-%3A-intc-beke-dis-kvue-amzn-focs-crm-bki-nwl-aapl
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nan
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nan
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The NASDAQ 100 After Hours Indicator is up 3.08 to 15,465.51. The total After hours volume is currently 76,863,751 shares traded.
The following are the most active stocks for the after hours session:
Intel Corporation (INTC) is +0.01 at $34.54, with 3,485,625 shares traded. INTC's current last sale is 98.69% of the target price of $35.
KE Holdings Inc (BEKE) is +0.01 at $15.67, with 2,648,946 shares traded.BEKE is scheduled to provide an earnings report on 8/31/2023, for the fiscal quarter ending Jun2023. The consensus earnings per share forecast is 0.11 per share, which represents a -23 percent increase over the EPS one Year Ago
Walt Disney Company (The) (DIS) is +0.04 at $84.32, with 2,095,235 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2024. The consensus EPS forecast is $1.42. As reported by Zacks, the current mean recommendation for DIS is in the "buy range".
Kenvue Inc. (KVUE) is +0.04 at $23.11, with 1,964,867 shares traded. KVUE's current last sale is 82.54% of the target price of $28.
Amazon.com, Inc. (AMZN) is +0.08 at $135.15, with 1,705,313 shares traded. Over the last four weeks they have had 12 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2023. The consensus EPS forecast is $0.58. As reported by Zacks, the current mean recommendation for AMZN is in the "buy range".
Focus Financial Partners Inc. (FOCS) is -0.01 at $52.98, with 1,702,965 shares traded. As reported in the last short interest update the days to cover for FOCS is 7.253901; this calculation is based on the average trading volume of the stock.
Salesforce, Inc. (CRM) is +12.67 at $227.71, with 1,697,554 shares traded. As reported by Zacks, the current mean recommendation for CRM is in the "buy range".
Black Knight, Inc. (BKI) is +0.21 at $75.99, with 1,452,329 shares traded. BKI's current last sale is 102.69% of the target price of $74.
Newell Brands Inc. (NWL) is unchanged at $10.59, with 1,450,553 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2023. The consensus EPS forecast is $0.44. NWL's current last sale is 81.46% of the target price of $13.
Apple Inc. (AAPL) is -0.02 at $187.63, with 1,448,037 shares traded. Over the last four weeks they have had 5 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2023. The consensus EPS forecast is $1.38. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
RLJ Lodging Trust (RLJ) is unchanged at $10.00, with 1,358,181 shares traded. RLJ's current last sale is 71.43% of the target price of $14.
PayPal Holdings, Inc. (PYPL) is unchanged at $63.42, with 1,324,325 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2023. The consensus EPS forecast is $0.92. As reported by Zacks, the current mean recommendation for PYPL 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 -0.02 at $187.63, with 1,448,037 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". KE Holdings Inc (BEKE) is +0.01 at $15.67, with 2,648,946 shares traded.BEKE is scheduled to provide an earnings report on 8/31/2023, for the fiscal quarter ending Jun2023.
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Apple Inc. (AAPL) is -0.02 at $187.63, with 1,448,037 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Over the last four weeks they have had 12 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2023.
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Apple Inc. (AAPL) is -0.02 at $187.63, with 1,448,037 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 76,863,751 shares traded.
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Apple Inc. (AAPL) is -0.02 at $187.63, with 1,448,037 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Amazon.com, Inc. (AMZN) is +0.08 at $135.15, with 1,705,313 shares traded.
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14057.0
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2023-08-30 00:00:00 UTC
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Should iShares Russell 1000 ETF (IWB) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-ishares-russell-1000-etf-iwb-be-on-your-investing-radar-8
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nan
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nan
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Launched on 05/15/2000, the iShares Russell 1000 ETF (IWB) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Blend segment of the US equity market.
The fund is sponsored by Blackrock. It has amassed assets over $31.05 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
Companies that fall in the large cap category tend to 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
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for this ETF are 0.15%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 1.36%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, 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 26.80% of the portfolio. Healthcare and Financials round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.44% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN).
The top 10 holdings account for about 27.39% of total assets under management.
Performance and Risk
IWB seeks to match the performance of the Russell 1000 Index before fees and expenses. The Russell 1000 Index measures the performance of the large-capitalization sector of the U.S. equity market. The Index is a float-adjusted capitalization-weighted index of equity securities issued by the approximately 1,000 largest issuers in the Russell 3000 Index.
The ETF has added about 17.97% so far this year and was up about 12.56% in the last one year (as of 08/30/2023). In the past 52-week period, it has traded between $196.94 and $252.17.
The ETF has a beta of 1.01 and standard deviation of 18.45% for the trailing three-year period, making it a medium risk choice in the space. With about 1015 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Russell 1000 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, IWB is a sufficient 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 $353.22 billion in assets, SPDR S&P 500 ETF has $414.70 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
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.
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Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
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iShares Russell 1000 ETF (IWB): 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 6.44% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report iShares Russell 1000 ETF (IWB): 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. Launched on 05/15/2000, the iShares Russell 1000 ETF (IWB) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Blend segment of the US equity market.
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Click to get this free report iShares Russell 1000 ETF (IWB): 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 6.44% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Sector Exposure and Top Holdings While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise.
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Click to get this free report iShares Russell 1000 ETF (IWB): 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 6.44% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Alternatives IShares Russell 1000 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 6.44% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report iShares Russell 1000 ETF (IWB): 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. Costs Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
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14058.0
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2023-08-30 00:00:00 UTC
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Will A New $1,200 iPhone Help Apple Vendors Like Jabil Stock?
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AAPL
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https://www.nasdaq.com/articles/will-a-new-%241200-iphone-help-apple-vendors-like-jabil-stock
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nan
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nan
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Our Theme of Apple Component Supplier Stocks, which includes a diverse set of companies that supply components for Apple’s devices, has gained about 12% year-to-date, underperforming the S&P 500 which remains up by 15% and Apple stock (NASDAQ: AAPL), which has gained about 40% year-to-date. Now, Apple’s recent performance has actually been pretty mixed. Over Q3 FY’23, the most recently reported quarter, the company saw overall revenues shrink year-over-year, as demand for core computing products including the iPhone, iPad, and Mac fell as tailwinds seen through Covid-19 eased. Major suppliers like Jabil and Qorvo have seen revenue decline or flatten year-over-year.
Notably, AAPL stock had a Sharpe Ratio of 1.1 since early 2017, which is higher than the figure of 0.6 for the S&P 500 Index over the same period. Compare this with the Sharpe of 1.2 for the Trefis Reinforced Value portfolio. Sharpe is a measure of return per unit of risk, and high-performance portfolios can provide the best of both worlds.
That being said, there are some near-term positives for the theme. Apple is slated to unveil its next-generation iPhones sometime in early September. The new smartphone is expected to feature meaningful upgrades and possibly design changes versus the iPhone 14, boding well for suppliers from a component content per-device perspective. Multiple reports indicate that Apple will raise pricing on the Pro devices by $100 to $200 this time around, implying that prices for Apple’s flagship phones will start at as much as $1,200. This is long overdue, given that Apple has held the starting price of its premium devices at $1,000 over the last six years. Higher average iPhone prices should give suppliers some more room to negotiate better deals with Apple. Separately, the supply chain issues faced by semiconductor players through Covid-19 is also easing, and this could also help the theme.
Within our theme, Jabil stock (NYSE:JBL), a company known for making casings for Apple’s iDevices, has been the strongest performer, rising by about 67% year-to-date. On the other side, Texas Instruments (NASDAQ:TXN) – which supplies semiconductor components for the iPhone – has been one of the weaker performers with its stock up by just about 3% year-to-date.
Returns Aug 2023
MTD [1] 2023
YTD [1] 2017-23
Total [2]
AAPL Return -8% 39% 522%
S&P 500 Return -3% 15% 98%
Trefis Reinforced Value Portfolio -6% 29% 563%
[1] Month-to-date and year-to-date as of 8/29/2023
[2] Cumulative total returns since the end of 2016
Invest with Trefis Market-Beating Portfolios
See all Trefis Price Estimates
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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Our Theme of Apple Component Supplier Stocks, which includes a diverse set of companies that supply components for Apple’s devices, has gained about 12% year-to-date, underperforming the S&P 500 which remains up by 15% and Apple stock (NASDAQ: AAPL), which has gained about 40% year-to-date. Notably, AAPL stock had a Sharpe Ratio of 1.1 since early 2017, which is higher than the figure of 0.6 for the S&P 500 Index over the same period. Total [2] AAPL Return -8% 39% 522% S&P 500 Return -3% 15% 98% Trefis Reinforced Value Portfolio -6% 29% 563% [1] Month-to-date and year-to-date as of 8/29/2023 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market-Beating Portfolios See all Trefis Price Estimates 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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Our Theme of Apple Component Supplier Stocks, which includes a diverse set of companies that supply components for Apple’s devices, has gained about 12% year-to-date, underperforming the S&P 500 which remains up by 15% and Apple stock (NASDAQ: AAPL), which has gained about 40% year-to-date. Total [2] AAPL Return -8% 39% 522% S&P 500 Return -3% 15% 98% Trefis Reinforced Value Portfolio -6% 29% 563% [1] Month-to-date and year-to-date as of 8/29/2023 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market-Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Notably, AAPL stock had a Sharpe Ratio of 1.1 since early 2017, which is higher than the figure of 0.6 for the S&P 500 Index over the same period.
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Our Theme of Apple Component Supplier Stocks, which includes a diverse set of companies that supply components for Apple’s devices, has gained about 12% year-to-date, underperforming the S&P 500 which remains up by 15% and Apple stock (NASDAQ: AAPL), which has gained about 40% year-to-date. Total [2] AAPL Return -8% 39% 522% S&P 500 Return -3% 15% 98% Trefis Reinforced Value Portfolio -6% 29% 563% [1] Month-to-date and year-to-date as of 8/29/2023 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market-Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Notably, AAPL stock had a Sharpe Ratio of 1.1 since early 2017, which is higher than the figure of 0.6 for the S&P 500 Index over the same period.
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Our Theme of Apple Component Supplier Stocks, which includes a diverse set of companies that supply components for Apple’s devices, has gained about 12% year-to-date, underperforming the S&P 500 which remains up by 15% and Apple stock (NASDAQ: AAPL), which has gained about 40% year-to-date. Notably, AAPL stock had a Sharpe Ratio of 1.1 since early 2017, which is higher than the figure of 0.6 for the S&P 500 Index over the same period. Total [2] AAPL Return -8% 39% 522% S&P 500 Return -3% 15% 98% Trefis Reinforced Value Portfolio -6% 29% 563% [1] Month-to-date and year-to-date as of 8/29/2023 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market-Beating Portfolios See all Trefis Price Estimates 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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14059.0
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2023-08-30 00:00:00 UTC
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Top Research Reports for Apple, Broadcom & Caterpillar
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AAPL
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https://www.nasdaq.com/articles/top-research-reports-for-apple-broadcom-caterpillar
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nan
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nan
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Wednesday, August 30, 2023
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 12 major stocks, including Apple Inc. (AAPL), Broadcom Inc. (AVGO) and Caterpillar Inc. (CAT). 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 >>>
Apple’s shares have outperformed the Zacks Computer - Mini computers industry over the year-to-date period (+42.3% vs. +42.0%). The company is benefiting from increasing customer engagement in the services segment. The expanding content portfolio of Apple TV+ and Apple Arcade, as well as the launch of its high-yield savings account with Apple Card, helped in driving subscriber growth.
Apple’s results also benefited from strong growth in emerging markets and growing adoption among enterprises. Apple expects iPhone and Services’ year-over-year growth to accelerate in the fiscal fourth-quarter as compared with the June quarter.
However, weak hardware demand for iPhone, iPad and Mac have declined sales. Revenues for both Mac and iPad are expected to decline by double digits on a year-over-year basis due to difficult comparison. Unfavorable forex is expected to hurt the top-line.
(You can read the full research report on Apple here >>>)
Shares of Broadcom have outperformed the Zacks Electronics - Semiconductors industry over the year-to-date period (+61.2% vs. +47.1%). The company is benefiting from strong deployment of generative AI by hyperscalers, service providers and enterprises. It expects generative AI to contribute more than 25% of semiconductor revenues in fiscal 2024 compared with an estimated 15% in fiscal 2023 and roughly 10% in fiscal 2022.
Strong demand for Tomahawk 5, Jericho, 10-gigabit PON and DOCSIS 3.1 with embedded Wi-Fi 6 and 6E aids Broadcom. Expanding portfolio with the launch of second-gen Wi-Fi 7 wireless connectivity chip is a catalyst. Broadcom expects networking revenues to grow nearly 20% year over year in the fiscal third quarter.
Server storage connectivity revenues are expected to be up low single digits year over year. Broadband revenues growth is expected in moderate to low-single-digit percent year over year.
(You can read the full research report on Broadcom here >>>)
Caterpillar’s shares have outperformed the Zacks Manufacturing - Construction and Mining industry over the past six months (+13.8% vs. +12.6%). The company’s revenues and earnings has grown year over year for nine straight quarters thanks to its cost-saving actions, strong end-market demand and pricing actions that offset the impact of the supply chain snarls and cost pressures.
The Construction Industries segment is expected to benefit from the rising construction activities in the United States and other parts of the world. Backed by demand for commodities fueled by the energy-transition trend, a thriving mining sector will aid the Resource Industries segment.
Its dividend yield and payout ratio are higher than its peers. A strong liquidity position, investments in expanding services and digital initiatives will help Caterpillar deliver outsized returns.
(You can read the full research report on Caterpillar here >>>)
Other noteworthy reports we are featuring today include Suncor Energy Inc. (SU), ONEOK, Inc. (OKE) and STERIS plc (STE).
Mark Vickery
Senior Editor
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)
Strong Demand for Networking Products Aids Broadcom (AVGO)
Caterpillar (CAT) to Gain on Strong Demand in End Markets
Featured Reports
Suncor (SU) Supported by Integrated Business Model
The Zacks analyst believes that Suncor's integrated business model puts it in a good position to generate significant cash flow but the company's extreme vulnerability to oil prices is a risk.
Investments & Higher Fee-Based Earnings Aid ONEOK (OKE)
Per the Zacks analyst, ONEOK is set to benefit from fee-based earnings and midstream assets located in productive regions. Investments made to expand pipelines will drive its performance.
Procedure Recovery Aids STERIS (STE), Dental Arm Sales Dip
The Zacks Analyst is impressed with STERIS' Healthcare business gaining from procedure volume rebound, improving supply chain and reduced lead times. Yet, mounting costs are weighing on margins.
Verisk Financial Buyout Aid TransUnion (TRU), Liquidity Low
Per the Zacks Analyst, the acquisition of Verisk Financial is helping TransUnion to offer enhanced insights and solutions, improve fraud prevention and risk management. Low liquidity remains a concern
Qorvo (QRVO) Rides on Solid Portfolio, Integrated Solutions
Per the Zacks analyst, Qorvo is likely to benefit from a comprehensive portfolio with solid foundation in radio frequency and power management solutions that deliver efficient semiconductor solutions.
New Upgrades
Robust Ticket Sales Boosts Live Nation's (LYV) Prospects
Per the Zacks analyst, Live Nation is likely to benefit from pent-up demand for live events, solid ticket sales and sponsorship business. Also, focus on strengthening of client base bode well.
Domino's (DPZ) Banks on Comps Growth & Expansion Initiatives
Per the Zacks analyst, Domino's is benefiting from solid comps growth backed by digital ordering system, higher global retail sales and menu additions. Also, expansion initiatives bode well.
New Downgrades
Repligen (RGEN) Faces Declining Demand For COVID-19 Products
Per the Zacks Analyst, Repligen's revenues in 2023 is being negatively impacted by the declining demand for COVID-19 products. Competition in the bioprocessing market is also a concern.
Weak EVM Unit and Forex Woes Hurt Zebra Technologies (ZBRA)
Per the Zacks analyst, Zebra Technologies is experiencing weakness across its EVM segment due to weakness in the mobile computing market. Forex woes are an added concern for the company.
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
Caterpillar Inc. (CAT) : Free Stock Analysis Report
ONEOK, Inc. (OKE) : Free Stock Analysis Report
Suncor Energy Inc. (SU) : Free Stock Analysis Report
Broadcom Inc. (AVGO) : Free Stock Analysis Report
Hilton Worldwide Holdings Inc. (HLT) : 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) Strong Demand for Networking Products Aids Broadcom (AVGO) Caterpillar (CAT) to Gain on Strong Demand in End Markets Featured Reports Suncor (SU) Supported by Integrated Business Model The Zacks analyst believes that Suncor's integrated business model puts it in a good position to generate significant cash flow but the company's extreme vulnerability to oil prices is a risk. Today's Research Daily features new research reports on 12 major stocks, including Apple Inc. (AAPL), Broadcom Inc. (AVGO) and Caterpillar Inc. (CAT). Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Caterpillar Inc. (CAT) : Free Stock Analysis Report ONEOK, Inc. (OKE) : Free Stock Analysis Report Suncor Energy Inc. (SU) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report Hilton Worldwide Holdings Inc. (HLT) : 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) Strong Demand for Networking Products Aids Broadcom (AVGO) Caterpillar (CAT) to Gain on Strong Demand in End Markets Featured Reports Suncor (SU) Supported by Integrated Business Model The Zacks analyst believes that Suncor's integrated business model puts it in a good position to generate significant cash flow but the company's extreme vulnerability to oil prices is a risk. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Caterpillar Inc. (CAT) : Free Stock Analysis Report ONEOK, Inc. (OKE) : Free Stock Analysis Report Suncor Energy Inc. (SU) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report Hilton Worldwide Holdings Inc. (HLT) : Free Stock Analysis Report To read this article on Zacks.com click here. Today's Research Daily features new research reports on 12 major stocks, including Apple Inc. (AAPL), Broadcom Inc. (AVGO) and Caterpillar Inc. (CAT).
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Today's Research Daily features new research reports on 12 major stocks, including Apple Inc. (AAPL), Broadcom Inc. (AVGO) and Caterpillar Inc. (CAT). 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) Strong Demand for Networking Products Aids Broadcom (AVGO) Caterpillar (CAT) to Gain on Strong Demand in End Markets Featured Reports Suncor (SU) Supported by Integrated Business Model The Zacks analyst believes that Suncor's integrated business model puts it in a good position to generate significant cash flow but the company's extreme vulnerability to oil prices is a risk. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Caterpillar Inc. (CAT) : Free Stock Analysis Report ONEOK, Inc. (OKE) : Free Stock Analysis Report Suncor Energy Inc. (SU) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report Hilton Worldwide Holdings Inc. (HLT) : 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) Strong Demand for Networking Products Aids Broadcom (AVGO) Caterpillar (CAT) to Gain on Strong Demand in End Markets Featured Reports Suncor (SU) Supported by Integrated Business Model The Zacks analyst believes that Suncor's integrated business model puts it in a good position to generate significant cash flow but the company's extreme vulnerability to oil prices is a risk. Today's Research Daily features new research reports on 12 major stocks, including Apple Inc. (AAPL), Broadcom Inc. (AVGO) and Caterpillar Inc. (CAT). Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Caterpillar Inc. (CAT) : Free Stock Analysis Report ONEOK, Inc. (OKE) : Free Stock Analysis Report Suncor Energy Inc. (SU) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report Hilton Worldwide Holdings Inc. (HLT) : Free Stock Analysis Report To read this article on Zacks.com click here.
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14060.0
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2023-08-30 00:00:00 UTC
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Hundreds of ETFs are Closing Up Shop This Year. Here’s Why.
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AAPL
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https://www.nasdaq.com/articles/hundreds-of-etfs-are-closing-up-shop-this-year.-heres-why.
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nan
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nan
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Between the Metaverse, cryptocurrency, and AI, plenty of new investment themes have emerged in recent years, at the same time as more individual and retail investors started investing during the pandemic. Predictably, a wave of new ETFs launched in an attempt to capitalize on these new trends.
However, according to a new Wall Street Journal article, many of these thematic and niche-focused ETFs are closing up shop. In fact, so far in 2023, 929 ETFs have closed worldwide, up from just 373 this time last year, according to research from ETFGI. In the United States, 178 exchange-traded products have shut down, already exceeding last year’s total of 142.
According to the Wall Street Journal, this is the highest number of closures since 2020, when collapsing oil prices led to the demise of many energy-themed funds. Here’s why.
It’s Hard to Compete with the 800-Pound Gorillas in the Room
Many of these ETFs are learning that it’s hard to attract capital in a crowded market where there is no shortage of competition and where the biggest ETFs from the largest asset managers dominate. These more established ETFs have the size and scale to offer investors low expense ratios and have long track records of performance that investors can look to, making it hard for newcomers to dislodge them.
Making matters more difficult for these new entrants is the fact that while the stock market has done well this year -- the S&P 500 (SPX) is up 18.1% year-to-date, while the Nasdaq (NDX) is up 35.0% -- a large portion of these gains come from just a handful of mega-cap tech stocks, known as the "Magnificent Seven." The Wall Street Journal reports that through May, these powerhouse stocks were responsible for virtually all of the market’s year-to-date gains.
Investors looking for exposure to these seven tech behemoths -- Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), Nvidia (NASDAQ:NVDA), Meta Platforms (NASDAQ:META), Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL), and Tesla (NASDAQ:TSLA) -- don’t really need to look beyond large, popular technology ETFs like Invesco QQQ Trust (NASDAQ:QQQ) and Technology Select Sector SPDR Fund (NYSEARCA:XLK) to gain exposure to these stocks.
QQQ and XLK are good examples of the large ETFs that dominate the market. QQQ boasts nearly $200 billion in assets under management (AUM), a staggering figure, while XLK is smaller than QQQ but is still approaching $50 billion in AUM. With their massive size and scale, these two leading tech ETFs are able to offer investor-friendly expense ratios of 0.20% and 0.10%, respectively.
Staying within technology, smaller but still-popular ETFs like the ARK Innovation Fund (NYSEARCA:ARKK) have much higher expense ratios of 0.75%, and this disparity in fees and expenses makes a significant difference to investors when compounded over time.
The extent to which these mega-cap stocks (and massive ETFs) have dominated the market as of late leaves would-be competitors gasping for oxygen and fighting for scraps. Furthermore, because the Magnificent Seven have racked up such significant gains this year, they are now the largest seven stocks in the S&P 500.
This means that an investor can simply invest in broad market, low-cost S&P 500 ETFs like the Vanguard S&P 500 ETF (NYSEARCA:VOO) or the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) to gain exposure to all of these stocks.
This is a conundrum for smaller and newer ETFs. On the one hand, investing in these stocks isn’t going to be enough to stand out in the crowd, especially when incumbents like VOO, SPY, XLK, and QQQ have lower expenses and lower track records. Trying to compete with these ETFs is like fighting the proverbial 800-pound gorillas in the room.
On the other hand, because these stocks are propelling much of the market’s overall gains in 2023, many individual investors simply don’t seem particularly interested in chasing other ideas and themes like the Metaverse or some of the politically-themed ETFs that have launched in recent years.
There is an Alternative
Another factor that is making it tough sledding for smaller, narrowly-focused ETFs is that rising interest rates have given investors more alternatives to consider when looking for returns. For years, we all heard the mantra “there is no alternative,” which became so commonplace it even earned its own acronym, “TINA.”
But now, for the first time in years, individual investors do have viable alternatives to stocks. Treasury bond yields have risen to decade-highs, and investors can also earn decent risk-free returns by parking money in Certificates of Deposit and money-market accounts. The new viability of fixed-income investing means that money is flowing into fixed-income ETFs as opposed to the latest ETF with a cute ticker attempting to capitalize on the latest trend.
It’s Not All Bad News for New ETFs
All of that said, there are some outliers out there in newer ETFs that are bucking the trend and seem to be establishing real staying power. For example, the JPMorgan Equity Premium Income ETF (NYSEARCA:JEPI) only launched in 2020 but has quickly garnered nearly $30 billion in AUM, meaning that it has already grown into the market’s largest actively-managed ETF in just a few short years of existence.
JEPI has stood out from the crowd and gained traction with investors by offering a double-digit dividend yield of 10.0% and a monthly payout schedule, with a strategy of selling covered calls to boost its payout. Similarly, JEPI’s cousin, the JPMorgan Nasdaq Equity Premium Income ETF (NASDAQ:JEPQ) launched last May and has already accumulated $5.0 billion in assets under management. Like JEPI, JEPQ pays a double-digit dividend yield of 11.5% and makes monthly payouts but invests in the Nasdaq instead of the S&P 500.
Below, you can view a comparison of the two ETFs using TipRanks' ETF comparison tool.
The Takeaway
In conclusion, investors today have more choices than ever when it comes to investing in ETFs, with a bevy of new options launching for each hot theme that emerges. However, many of these ETFs never end up gaining traction with investors and end up shutting down. Essentially, when it comes to ETFs, the competitive landscape is a Darwinian "survival of the fittest," and not everyone is going to attract enough capital to survive.
The ETF market may benefit from a "thinning of the herd" in which some of the weaker ETFs that have not found a product-market fit go by the wayside. The Wall Street Journal previously found that "because many newly launched ETFs are risky attempts to capitalize on the latest trend, they end up investing in overvalued stocks. One consequence is that such funds, on average, can be expected to lag behind the broad market’s returns over at least five years after launch—if they even live that long."
Thus, ETFs looking to capitalize on the latest trend may be late to the party and are buying in after large gains have already been made. Meanwhile, some ETFs, such as politically-themed ones or ones that let you invest alongside or fade the picks of prominent investing personalities, are better characterized as gimmicks than viable long-term investing strategies.
These ETFs face a challenging landscape right from the beginning, as offering investors exposure to the typical large-cap growth and tech stocks won’t give them much differentiation against the market’s top ETFs, but conversely, offering different exposure may not interest investors either.
However, the massive success of a few new ETFs like JEPI and JEPQ shows that it is still possible to gain success if an ETF finds a differentiated strategy that appeals to investors.
Disclosure
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 looking for exposure to these seven tech behemoths -- Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), Nvidia (NASDAQ:NVDA), Meta Platforms (NASDAQ:META), Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL), and Tesla (NASDAQ:TSLA) -- don’t really need to look beyond large, popular technology ETFs like Invesco QQQ Trust (NASDAQ:QQQ) and Technology Select Sector SPDR Fund (NYSEARCA:XLK) to gain exposure to these stocks. On the other hand, because these stocks are propelling much of the market’s overall gains in 2023, many individual investors simply don’t seem particularly interested in chasing other ideas and themes like the Metaverse or some of the politically-themed ETFs that have launched in recent years. Treasury bond yields have risen to decade-highs, and investors can also earn decent risk-free returns by parking money in Certificates of Deposit and money-market accounts.
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Investors looking for exposure to these seven tech behemoths -- Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), Nvidia (NASDAQ:NVDA), Meta Platforms (NASDAQ:META), Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL), and Tesla (NASDAQ:TSLA) -- don’t really need to look beyond large, popular technology ETFs like Invesco QQQ Trust (NASDAQ:QQQ) and Technology Select Sector SPDR Fund (NYSEARCA:XLK) to gain exposure to these stocks. For example, the JPMorgan Equity Premium Income ETF (NYSEARCA:JEPI) only launched in 2020 but has quickly garnered nearly $30 billion in AUM, meaning that it has already grown into the market’s largest actively-managed ETF in just a few short years of existence. Similarly, JEPI’s cousin, the JPMorgan Nasdaq Equity Premium Income ETF (NASDAQ:JEPQ) launched last May and has already accumulated $5.0 billion in assets under management.
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Investors looking for exposure to these seven tech behemoths -- Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), Nvidia (NASDAQ:NVDA), Meta Platforms (NASDAQ:META), Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL), and Tesla (NASDAQ:TSLA) -- don’t really need to look beyond large, popular technology ETFs like Invesco QQQ Trust (NASDAQ:QQQ) and Technology Select Sector SPDR Fund (NYSEARCA:XLK) to gain exposure to these stocks. This means that an investor can simply invest in broad market, low-cost S&P 500 ETFs like the Vanguard S&P 500 ETF (NYSEARCA:VOO) or the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) to gain exposure to all of these stocks. These ETFs face a challenging landscape right from the beginning, as offering investors exposure to the typical large-cap growth and tech stocks won’t give them much differentiation against the market’s top ETFs, but conversely, offering different exposure may not interest investors either.
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Investors looking for exposure to these seven tech behemoths -- Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), Nvidia (NASDAQ:NVDA), Meta Platforms (NASDAQ:META), Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL), and Tesla (NASDAQ:TSLA) -- don’t really need to look beyond large, popular technology ETFs like Invesco QQQ Trust (NASDAQ:QQQ) and Technology Select Sector SPDR Fund (NYSEARCA:XLK) to gain exposure to these stocks. It’s Hard to Compete with the 800-Pound Gorillas in the Room Many of these ETFs are learning that it’s hard to attract capital in a crowded market where there is no shortage of competition and where the biggest ETFs from the largest asset managers dominate. This means that an investor can simply invest in broad market, low-cost S&P 500 ETFs like the Vanguard S&P 500 ETF (NYSEARCA:VOO) or the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) to gain exposure to all of these stocks.
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14061.0
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2023-08-30 00:00:00 UTC
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Markets Enjoy 4th Day of Gains on Heels of Jobs Data
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AAPL
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https://www.nasdaq.com/articles/markets-enjoy-4th-day-of-gains-on-heels-of-jobs-data
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nan
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nan
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The major indexes managed to eke out a fourth-straight daily gain. After a tumultuous monthly performance, investors head into the last day of August trading tomorrow, after spending most of today near breakeven and digesting several bouts of economic and jobs data. Chip stocks aided today's win, including Apple (AAPL) as it sent out invites to its Sept. 12 annual launch conference.
Continue reading for more on today's market, including:
History says avoid this pharma stock now.
How ICE stock could set fire to Wall Street.
Plus, 2 equites' outlooks send stocks lower; and bear note drags chip maker.
5 Things to Know Today
Over 280,000 people are without power in Florida as Hurricane Idalia makes its way through the south, now in Georgia. The storm has weakened to category 1, but has already caused two deaths so far. (CNBC)
Cannabis stocks enjoyed a pop this afternoon, after a lead officer at the Department of Health and Human Services asked the Drug Enforcement Agency Administrator to have marijuana reclassed as a Schedule III drug. (Bloomberg)
Weak forecast sends tech giant lower.
Downgrade slams semiconductor stock.
Lackluster guidance triggers Box stock bear note.
Gold, Oil Log Notable Daily Wins
Following a drop of 10.6 million barrels for last week's crude supplies and concerns surrounding the impact of Hurricane Idalia, oil saw a lift in prices. The now front-month, October delivery added 47 cents, or 0.6%, to settle at $81.63 per barrel, settling at a more than two-week high to log their fifth-straight win -- the longest streak since March.
Weakening bond yields and a lower U.S. dollar sent gold futures to their highest settlement since Aug. 4. December-dated gold added $7.90, or 0.4%, to settle at $1,973 an ounce.
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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Chip stocks aided today's win, including Apple (AAPL) as it sent out invites to its Sept. 12 annual launch conference. After a tumultuous monthly performance, investors head into the last day of August trading tomorrow, after spending most of today near breakeven and digesting several bouts of economic and jobs data. Plus, 2 equites' outlooks send stocks lower; and bear note drags chip maker.
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Chip stocks aided today's win, including Apple (AAPL) as it sent out invites to its Sept. 12 annual launch conference. Plus, 2 equites' outlooks send stocks lower; and bear note drags chip maker. Gold, Oil Log Notable Daily Wins Following a drop of 10.6 million barrels for last week's crude supplies and concerns surrounding the impact of Hurricane Idalia, oil saw a lift in prices.
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Chip stocks aided today's win, including Apple (AAPL) as it sent out invites to its Sept. 12 annual launch conference. Plus, 2 equites' outlooks send stocks lower; and bear note drags chip maker. Gold, Oil Log Notable Daily Wins Following a drop of 10.6 million barrels for last week's crude supplies and concerns surrounding the impact of Hurricane Idalia, oil saw a lift in prices.
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Chip stocks aided today's win, including Apple (AAPL) as it sent out invites to its Sept. 12 annual launch conference. Plus, 2 equites' outlooks send stocks lower; and bear note drags chip maker. Gold, Oil Log Notable Daily Wins Following a drop of 10.6 million barrels for last week's crude supplies and concerns surrounding the impact of Hurricane Idalia, oil saw a lift in prices.
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14062.0
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2023-08-30 00:00:00 UTC
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Why 3D Systems Stock Zoomed Higher Today
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AAPL
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https://www.nasdaq.com/articles/why-3d-systems-stock-zoomed-higher-today
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nan
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nan
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What happened
One of the top tech companies on planet Earth is harnessing 3D printing technology, it seems. On that news, 3D printing stocks rose cautiously on Wednesday, including that of industry bellwether 3D Systems (NYSE: DDD). The company's shares notched a 2% gain, which bettered the just-under 0.4% rise of the S&P 500 index.
So what
Citing "people with knowledge of the matter" as sources, Bloomberg on Wednesday morning published an article stating that Apple (NASDAQ: AAPL) is the company taking the 3D plunge. According to those sources, the tech giant is testing 3D printers in the manufacture of a steel chassis that will be used in some of its upcoming Apple Watch models.
The story did not name any particular 3D printer or printers, nor did it identify any manufacturers whose products Apple might be utilizing in the effort. 3D Systems would be an obvious candidate due to its relative longevity and prominence.
With its 3D printing experiment, Apple aims to streamline its supply chain. This should save costs in addition to helping the environment. Previously, such components were made by cutting them out of large metal slabs. 3D printing results in far less waste of this material.
Now what
As is its habit in such situations, Apple has not officially commented on the Bloomberg story. 3D Systems management has also not reacted to it.
While highly speculative, this prospect of Apple moving to 3D printing is an exciting one for anyone invested in that industry. Assuming the article is accurate and the tech company makes such products an integral part of its manufacturing profile, 3D stocks will almost certainly experience a resurgence.
10 stocks we like better than 3D Systems
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and 3D Systems wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of August 28, 2023
Eric Volkman has positions in Apple. The Motley Fool has positions in and recommends Apple. The Motley Fool recommends 3D Systems. 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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So what Citing "people with knowledge of the matter" as sources, Bloomberg on Wednesday morning published an article stating that Apple (NASDAQ: AAPL) is the company taking the 3D plunge. According to those sources, the tech giant is testing 3D printers in the manufacture of a steel chassis that will be used in some of its upcoming Apple Watch models. Assuming the article is accurate and the tech company makes such products an integral part of its manufacturing profile, 3D stocks will almost certainly experience a resurgence.
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So what Citing "people with knowledge of the matter" as sources, Bloomberg on Wednesday morning published an article stating that Apple (NASDAQ: AAPL) is the company taking the 3D plunge. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. The Motley Fool has positions in and recommends Apple.
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So what Citing "people with knowledge of the matter" as sources, Bloomberg on Wednesday morning published an article stating that Apple (NASDAQ: AAPL) is the company taking the 3D plunge. On that news, 3D printing stocks rose cautiously on Wednesday, including that of industry bellwether 3D Systems (NYSE: DDD). 10 stocks we like better than 3D Systems When our analyst team has a stock tip, it can pay to listen.
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So what Citing "people with knowledge of the matter" as sources, Bloomberg on Wednesday morning published an article stating that Apple (NASDAQ: AAPL) is the company taking the 3D plunge. The story did not name any particular 3D printer or printers, nor did it identify any manufacturers whose products Apple might be utilizing in the effort. Assuming the article is accurate and the tech company makes such products an integral part of its manufacturing profile, 3D stocks will almost certainly experience a resurgence.
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14063.0
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2023-08-30 00:00:00 UTC
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3 Things You Should Know Before Buying This Magnificent Warren Buffett Stock
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AAPL
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https://www.nasdaq.com/articles/3-things-you-should-know-before-buying-this-magnificent-warren-buffett-stock
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nan
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nan
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Warren Buffett has made some wonderful investments over the years, but I don't think any of those investments were as successful as the decision to buy Apple (NASDAQ: AAPL) in early 2016, a move that has led to tens of billions of dollars in gains. In fact, the tech stock currently makes up almost half of Berkshire Hathaway's massive $355 billion portfolio.
Before rushing to buy the stock, which is up 231% in the past five years, investors should know these three things about Apple.
1. Expect slower growth
Due to its massive scale, represented by a market cap of $2.8 trillion and trailing-12-month revenue of $384 billion, Apple's future growth might not resemble the past. We're seeing this play out right now. In the latest quarter (third quarter of 2023, ended June 1), Apple registered sales of $81.8 billion, down 1.4% year over year. This was the third straight quarter of declining revenue.
With products and services that seem ubiquitous by now, it's difficult to expect outsized top-line gains from the company. Between fiscal 2022 and fiscal 2027, Wall Street analysts estimate that Apple will increase its revenue at an annualized pace of 6%, slower than the 11.5% average clip in the previous five years. I think Buffett is fully aware of this reality, yet he remains a huge shareholder in the tech business.
Unless Apple can introduce another game-changing hardware product that can move the needle from a financial perspective, investors should get used to this being a very mature enterprise.
2. Dependent on the iPhone
Apple's product lineup includes numerous items that have all experienced remarkable success. But nothing shines as bright as the iPhone, which still made up a sizable 49% of the company's overall revenue in the most recent quarter. And with so much attention still being directed toward the latest upgrade cycles, in particular new models, pricing strategy, and potential units shipped, the iPhone is still critical to Apple's success.
Relying on a single product for most of its financial performance might be viewed as risky from an investor's perspective. Even in 2016, when Buffett first decided to invest in Apple, this was also the case.
But the Oracle of Omaha also realized that the business was much more than just a typical hardware manufacturer. Apple's strength lies in its ability to create an ecosystem for its customers. The services segment, now accounting for 26% of company revenue and posting faster growth than product sales, drives stickiness and loyalty from consumers.
To be fair, the iPhone will still drive results for the foreseeable future. And its success is still central to Apple's story. However, software should play a bigger role moving forward.
3. Expensive valuation
Even after taking a breather since the start of August, down 8% in the month, Apple shares are up 39% this year (as of Aug. 28). This continues several years of market outperformance. Consequently, shares trade at a trailing price-to-earnings ratio of 30, which is a significant premium to what the stock has sold for in the past decade.
Although the current valuation looks expensive, investors might still be inclined to own the business due to its top-notch financial situation. Not only does Apple currently have a net cash position (equal to cash, cash equivalents, and marketable securities minus debt) of $57 billion, but the company generates more free cash flow (FCF) than it knows what to do with. During the first three quarters of fiscal 2023, Apple produced $81 billion of FCF. This was after the business posted FCF of $111 billion in fiscal 2022.
The risk of Apple running into financial trouble is extremely unlikely, and this safety alone could be enough of a reason to own the stock. Buffett probably feels the same way, especially during uncertain economic times.
10 stocks we like better than Apple
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of August 28, 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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Warren Buffett has made some wonderful investments over the years, but I don't think any of those investments were as successful as the decision to buy Apple (NASDAQ: AAPL) in early 2016, a move that has led to tens of billions of dollars in gains. Unless Apple can introduce another game-changing hardware product that can move the needle from a financial perspective, investors should get used to this being a very mature enterprise. And with so much attention still being directed toward the latest upgrade cycles, in particular new models, pricing strategy, and potential units shipped, the iPhone is still critical to Apple's success.
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Warren Buffett has made some wonderful investments over the years, but I don't think any of those investments were as successful as the decision to buy Apple (NASDAQ: AAPL) in early 2016, a move that has led to tens of billions of dollars in gains. In fact, the tech stock currently makes up almost half of Berkshire Hathaway's massive $355 billion portfolio. Expect slower growth Due to its massive scale, represented by a market cap of $2.8 trillion and trailing-12-month revenue of $384 billion, Apple's future growth might not resemble the past.
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Warren Buffett has made some wonderful investments over the years, but I don't think any of those investments were as successful as the decision to buy Apple (NASDAQ: AAPL) in early 2016, a move that has led to tens of billions of dollars in gains. Before rushing to buy the stock, which is up 231% in the past five years, investors should know these three things about Apple. In the latest quarter (third quarter of 2023, ended June 1), Apple registered sales of $81.8 billion, down 1.4% year over year.
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Warren Buffett has made some wonderful investments over the years, but I don't think any of those investments were as successful as the decision to buy Apple (NASDAQ: AAPL) in early 2016, a move that has led to tens of billions of dollars in gains. The services segment, now accounting for 26% of company revenue and posting faster growth than product sales, drives stickiness and loyalty from consumers. This was after the business posted FCF of $111 billion in fiscal 2022.
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14064.0
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2023-08-30 00:00:00 UTC
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Stock Market News for Aug 30, 2023
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AAPL
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https://www.nasdaq.com/articles/stock-market-news-for-aug-30-2023
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nan
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nan
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U.S. stocks ended sharply higher on Tuesday, recording their third straight day of gains, as jobs data for July hinted at a cooling labor market while investors once again flocked to buy tech stocks in the closing days of a difficult August for markets. All three major indexes ended in positive territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) rose 0.9% or 292.69 points to finish at 34,852.67 points.
The S&P 500 jumped 1.5% or 64.32 points, to close at 4,497.63 points. Communication services, tech and consumer discretionary stocks were the biggest gainers.
The Technology Select Sector SPDR (XLK) gained 2%. The Communication Services Select Sector SPDR (XLC) increased 2.2%, while the Consumer Discretionary Select Sector SPDR (XLY) and the Materials Select Sector SPDR (XLB) gained 2.5% and 1.7%, respectively. All 11 sectors of the benchmark index ended in positive territory.
The tech-heavy Nasdaq climbed 1.7% or 238.63 points to end at 13,943.76 points.
The fear-gauge CBOE Volatility Index (VIX) was down 4.18% to 14.45.
Jobs Data Raise Optimism
Stocks rallied on Monday despite Fed Chair Jerome Powell’s cautious speech at Jackson Hole last week where she said that more interest rate hikes are required to bring down inflation. Investors looked past the comments and started the week on a positive note.
The positive sentiment continued on Tuesday, which got a further boost following the release of fresh economic data that showed job openings in July dropped to a 28-month low, while fewer workers were leaving their jobs.
July job openings fell to 8.8 million, lower than the consensus estimate of 9.5 million. At the same time, 3.5 million workers quit their jobs in July, the lowest since early 2021.
The JOLTS data clearly indicates that the labor market is cooling. Also, consumer confidence in August fell sharply to 106.1 from 114 in the prior month. This once again raised hopes that the Fed might keep its interest rates unchanged in its September meeting, sending stocks on a rally. There is an 86.5% chance now that the Fed will keep interest rates unaltered in September, according to the CME FedWatch Tool.
Treasury Yields Ease
Lately, there has been a strong inverse relationship between stock market movements and fluctuations in benchmark bond yields. This correlation is driven by investors attempting to predict the direction of Fed policies.
On Tuesday, treasury yields fell further after hitting multi-year highs last week. The 2-year Treasury yield fell 16 basis points, while the 10-year Treasury fell to 4.12% on Tuesday after hitting its highest level since 2007 last week.
This sent tech stocks on a rally. Tuesday’s gains were led by NVIDIA Corporation (NVDA), which rose 4.2%. Shares of Tesla, Inc. (TSLA) jumped 7.7%, while Apple Inc. (AAPL) gained 2.2%. NVIDIA sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Economic Data
In other economic data released on Tuesday, home prices rose once again in June. The S&P CoreLogic Case-Shiller 20-city home prices index increased 0.9% in June on a month-over-month basis.
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 >>
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Apple Inc. (AAPL) : Free Stock Analysis Report
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Tesla, Inc. (TSLA) : 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 Tesla, Inc. (TSLA) jumped 7.7%, while Apple Inc. (AAPL) gained 2.2%. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report To read this article on Zacks.com click here. Jobs Data Raise Optimism Stocks rallied on Monday despite Fed Chair Jerome Powell’s cautious speech at Jackson Hole last week where she said that more interest rate hikes are required to bring down inflation.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report To read this article on Zacks.com click here. Shares of Tesla, Inc. (TSLA) jumped 7.7%, while Apple Inc. (AAPL) gained 2.2%. The Communication Services Select Sector SPDR (XLC) increased 2.2%, while the Consumer Discretionary Select Sector SPDR (XLY) and the Materials Select Sector SPDR (XLB) gained 2.5% and 1.7%, respectively.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report To read this article on Zacks.com click here. Shares of Tesla, Inc. (TSLA) jumped 7.7%, while Apple Inc. (AAPL) gained 2.2%. U.S. stocks ended sharply higher on Tuesday, recording their third straight day of gains, as jobs data for July hinted at a cooling labor market while investors once again flocked to buy tech stocks in the closing days of a difficult August for markets.
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Shares of Tesla, Inc. (TSLA) jumped 7.7%, while Apple Inc. (AAPL) gained 2.2%. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report To read this article on Zacks.com click here. All 11 sectors of the benchmark index ended in positive territory.
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14065.0
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2023-08-30 00:00:00 UTC
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Stocks Modestly Higher as Optimism Builds for a Fed Pause
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AAPL
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https://www.nasdaq.com/articles/stocks-modestly-higher-as-optimism-builds-for-a-fed-pause
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nan
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nan
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What you need to know…
The S&P 500 Index ($SPX) (SPY) today is up +0.18%, the Dow Jones Industrials Index ($DOWI) (DIA) is up +0.03%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +0.24%.
Stocks this morning are slightly higher, with the S&P 500 climbing to a 2-1/2 week high, the Dow Jones Industrials rising to a 2-week high, and Nasdaq 100 stock indexes posting a 3-1/2 week high. Stocks are moving higher after weaker-than-expected U.S. economic news today on the Aug ADP employment change, and Q2 GDP knocked bond yields lower and bolstered speculation the Fed is nearing the end of its rate-hike cycle.
Stock indexes today were initially under pressure on negative carryover from weakness in European stocks on signs of sticky inflation in Europe, which may prompt the ECB to raise interest rates higher for longer after Germany’s August CPI and Spain’s August core CPI rose more than expected.
The U.S. Aug ADP employment change rose +177,000, weaker than expectations of +195,000 and the smallest increase in 5 months. However, July was revised upward to +371,000 from the initially reported +324,000.
U.S. Q2 GDP was revised downward to 2.1% (q/q annualized) from 2.4%. The Q2 core PCE price index was revised lower to +3.7% q/q from +3.8% q/q.
U.S. July pending home sales unexpectedly rose +0.9% m/m, stronger than expectations of -1.0% m/m decline.
The markets are discounting the odds at 11% for a +25 bp rate hike at the September 20 FOMC meeting and 49% for that +25 bp rate hike at the November 1 FOMC meeting.
Global bond yields are mixed. The 10-year T-note yield is down -1.0 bp at 4.110%. The 10-year German bund yield is up +4.8 bp at 2.558%. The 10-year UK gilt yield is up +1.2 bp to 4.435%.
Overseas stock markets are mixed. The Euro Stoxx 50 is down -0.28%. China’s Shanghai Composite Index closed up +0.04%. Japan’s Nikkei Stock Index closed up +0.33%.
Today’s stock movers…
Insulet (PDD) is up more than +7% to lead gainers in the S&P 500 on signs of insider buying after an SEC filing showed CEO Hollingshead bought $1.01 million of shares on Monday.
Apple (AAPL) is up more than +1% to lead gainers in the Dow Jones Industrials after announcing it will unveil its new iPhone 15 and next-generation smartwatches on September 12.
Netflix (NFLX) is up more than +2% after Truist Securities raised its price target on the stock to $485 from $339.
Homebuilding stocks are moving higher after today’s news showed U.S. July pending home sales unexpectedly rose. As a result, DR Horton (DHI), Lennar (LEN), PulteGroup (PHM), and Toll Brothers (TOL) rose more than +1%.
Transocean Ltd (RIG) is up more than +2% after winning a $222 million contract for an ultra-deepwater drillship to work offshore India.
Pal Alto Networks (PANW) is up more than +1% after WestPark Capital initiated a buy rating on the stock with a price target of $340.
UDR Inc (UDR) is up more than +1% after Scotiabank upgraded the stock to sector outperform from sector perform.
HP Inc (HPQ) is down more than -8% to lead losers in the S&P 500 after reporting Q3 revenue of $13.20 billion, weaker than the consensus of $13.38 billion, and cutting its full-year free cash flow estimate to $3 billion from a prior forecast of $3.0 billion-$3.5 billion, below the consensus of $3.43 billion.
Brown-Forman (BF/B) is down more than -5% after reporting Q1 EPS of 48 cents, weaker than the consensus of 53 cents.
Rockwell Automation (ROK) is down more than -2% after Barclays downgraded the stock to underweight from equal weight.
Ambarella (AMBA) is down more than -17% after forecasting Q3 adjusted gross margin of 62%-64%, the midpoint below the consensus of 63.5%. Cowen then downgraded the stock to market perform from outperform.
Box Inc (BOX) is down more than -9% after reporting Q2 billings of $232.5 million, below the consensus of $243.1 million, and cutting its 2024 revenue forecast to $1.04 billion-$1.044 billion from a previous forecast of $1.045 billion-$1.055 billion, weaker than the consensus of $1.05 billion.
Centene (CNC) is down more than -1% after Morgan Stanley downgraded the stock to equal weight from overweight.
Texas Instruments (TXN) is down more than -1% after Bernstein downgraded the stock to underperform from market perform.
Across the markets…
September 10-year T-notes (ZNU23) today are up +5 ticks, and the 10-year T-note yield is down -1.0 bp at 4.110%. Sep T-notes today rose to a 2-1/2 week high, and the 10-year T-note yield fell to a 2-1/2 week low of 4.085%. Weaker-than-expected U.S. economic news today on Aug ADP employment and Q2 GDP and Aug consumer confidence sparked gains in T-notes and fueled speculation the Fed may be nearing the end of its rate-hike cycle.
The dollar index (DXY00) today is down by -0.44% and posted a 1-week low. Weaker-than-expected U.S. economic news today on Aug ADP employment change and Q2 GDP knocked T-note yields lower and weighed on the dollar. Also, higher-than-expected Aug consumer prices in Spain and Germany are hawkish for ECB policy and boosted the euro versus the dollar.
EUR/USD (^EURUSD) today is up by +0.50% and posted a 2-week high. The euro today found support from news that showed sticky consumer price pressures in Germany and Spain, which pushed European government bond yields higher and strengthened the euro’s interest rate differentials. The euro extended its gains this morning on hawkish comments from ECB Governing Council member de Cos, who said it was “important” for the ECB to bring inflation back down to levels consistent with its 2% objective.
Eurozone economic news was mixed for EUR/USD. On the positive side, Eurozone July new car registrations rose +15.2% y/y to 851,000, the twelfth consecutive month of increases. Conversely, Eurozone Aug economic confidence fell -1.2 to a 2-3/4 year low of 93.3, weaker than expectations of 93.5.
ECB Governing Council member de Cos said the effects of inflation on households "underscore the importance of bringing inflation back to levels consistent with our 2% medium-term objective."
The German July import price index fell -13.2% y/y, weaker than expectations of -13.1% y/y and the biggest decline in 36 years.
Spain Aug CPI (EU harmonized) rose to +2.4% y/y from +2.1% y/y in July, right on expectations. Aug core CPI eased to +6.1% y/y from +6.2% y/y in July, stronger than expectations of +6.0% y/y.
German Aug CPI (EU harmonized) eased to +6.4% y/y from +6.5% y/y in July, stronger than expectations of +6.3% y/y.
USD/JPY (^USDJPY) is down by -0.14%. The yen today climbed to a 4-session high against the dollar. A fall in T-note yields today has sparked short covering in the yen. Gains in the yen were limited by dovish comments from BOJ Board member Tamura, who said the BOJ needs “a little more time” to judge on its price goal. An unexpected decline in Japan Aug consumer confidence was also bearish for the yen.
The Japan Aug consumer confidence index unexpectedly fell -0.9 to 36.2, weaker than expectations of an increase to 37.4.
October gold (GCV3) today is up +11.3 (+0.58%), and Sep silver (SIU23) is up +0.112 (+0.45%). Precious metals prices this morning are moderately higher, with gold climbing to a 3-week high and silver posting a 1-month high. The fall in the dollar today to a 1-week low supports precious metals. Also, metals rose on today’s weaker-than-expected U.S. economic news on Aug ADP employment change and Q2 GDP, which may prompt the Fed to pause its rate-hiking campaign. On the negative side is the continued liquidation of gold holdings by funds after long gold holdings in ETFs fell to a 3-1/3 year low Tuesday.
More Stock Market News from Barchart
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Ready Your Portfolios! These "Strong Buy" Companies Are Now Flashing Oversold!
Bear Call Spread Ideas For DG Earnings
On the date of publication, Rich Asplund 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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Apple (AAPL) is up more than +1% to lead gainers in the Dow Jones Industrials after announcing it will unveil its new iPhone 15 and next-generation smartwatches on September 12. Stocks are moving higher after weaker-than-expected U.S. economic news today on the Aug ADP employment change, and Q2 GDP knocked bond yields lower and bolstered speculation the Fed is nearing the end of its rate-hike cycle. Today’s stock movers… Insulet (PDD) is up more than +7% to lead gainers in the S&P 500 on signs of insider buying after an SEC filing showed CEO Hollingshead bought $1.01 million of shares on Monday.
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Apple (AAPL) is up more than +1% to lead gainers in the Dow Jones Industrials after announcing it will unveil its new iPhone 15 and next-generation smartwatches on September 12. Stocks are moving higher after weaker-than-expected U.S. economic news today on the Aug ADP employment change, and Q2 GDP knocked bond yields lower and bolstered speculation the Fed is nearing the end of its rate-hike cycle. Weaker-than-expected U.S. economic news today on Aug ADP employment and Q2 GDP and Aug consumer confidence sparked gains in T-notes and fueled speculation the Fed may be nearing the end of its rate-hike cycle.
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Apple (AAPL) is up more than +1% to lead gainers in the Dow Jones Industrials after announcing it will unveil its new iPhone 15 and next-generation smartwatches on September 12. Stocks are moving higher after weaker-than-expected U.S. economic news today on the Aug ADP employment change, and Q2 GDP knocked bond yields lower and bolstered speculation the Fed is nearing the end of its rate-hike cycle. Stock indexes today were initially under pressure on negative carryover from weakness in European stocks on signs of sticky inflation in Europe, which may prompt the ECB to raise interest rates higher for longer after Germany’s August CPI and Spain’s August core CPI rose more than expected.
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Apple (AAPL) is up more than +1% to lead gainers in the Dow Jones Industrials after announcing it will unveil its new iPhone 15 and next-generation smartwatches on September 12. The dollar index (DXY00) today is down by -0.44% and posted a 1-week low. Weaker-than-expected U.S. economic news today on Aug ADP employment change and Q2 GDP knocked T-note yields lower and weighed on the dollar.
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14066.0
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2023-08-30 00:00:00 UTC
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US STOCKS-Wall St to inch up at open as economic data fuels Fed rate-pause hopes
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-to-inch-up-at-open-as-economic-data-fuels-fed-rate-pause-hopes
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nan
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nan
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By Shristi Achar A and Amruta Khandekar
Aug 30 (Reuters) - Wall Street's main indexes were set to inch up at open on Wednesday as fresh economic data indicated a cooling U.S. economy, keeping alive hopes the Federal Reserve could pause rate hikes in September.
The ADP National Employment report showed private payrolls increased by 177,000 jobs in August, compared with estimates of 195,000, signaling an easing labor market.
Investors also took comfort in fresh gross domestic product (GDP) numbers that showed the U.S. economy expanded 2.1% in the second quarter, slower than a preliminary estimate of a 2.4% growth.
"Those reports (private payrolls and GDP) were really actually positive for the market, even though they were a little soft," said Thomas Martin, senior portfolio manager at Globalt Investments.
"The market thinks the Fed almost certainly won't raise (rate) in September and they have a couple of options left on the table for the end of the year."
Traders' bets on the Fed leaving interest rates unchanged in September stood at nearly 91%, up from 88.5% before the data, according to the CME FedWatch tool.
Investors now await the personal consumption expenditures price index, the Fed's preferred measure of inflation, and non-farm payroll numbers due on Thursday and Friday, respectively, for more clues on interest rates.
The 10-year Treasury yield US10YT=RR eased to 4.10%, supporting some growth stocks, with Nvidia NVDA.O, Apple AAPL.O and Alphabet GOOGL.O edging up between 0.2% and 0.7%.
U.S.-listed shares of Chinese companies including PDD Holdings PDD.O, JD.com JD.O, Baidu BIDU.O and Alibaba BABA.N fell between 1.8% and 1% on concerns over the country's property market and trade relations between Washington and Beijing.
U.S. Commerce Secretary Gina Raimondo talked up American firms' desire to do business in China after having labeled it "uninvestible".
At 8:46 a.m. ET, Dow e-minis 1YMcv1 were up 29 points, or 0.08%, S&P 500 e-minis EScv1 were up 1.75 points, or 0.04%, and Nasdaq 100 e-minis NQcv1 were up 10.25 points, or 0.07%.
Shares of HP IncHPQ.N slid 8.3% in premarket trading as the personal computer maker trimmed its annual forecast due to slowing demand.
Rite AidRAD.N dropped 6.2% after S&P Global Ratings downgraded the drug retailer on increased restructuring risks.
Texas InstrumentsTXN.O fell 1.7% after Bernstein downgraded the analog chipmaker to "underperform" from "market perform".
Brown-Forman BFb.N fell 3.5% after the Jack Daniels whiskey maker missed its first-quarter sales and profit estimates.
(Reporting by Shristi Achar A and Amruta Khandekar in Bengaluru; Editing by Savio D'Souza and Vinay Dwivedi)
((Shristi.AcharA@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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The 10-year Treasury yield US10YT=RR eased to 4.10%, supporting some growth stocks, with Nvidia NVDA.O, Apple AAPL.O and Alphabet GOOGL.O edging up between 0.2% and 0.7%. By Shristi Achar A and Amruta Khandekar Aug 30 (Reuters) - Wall Street's main indexes were set to inch up at open on Wednesday as fresh economic data indicated a cooling U.S. economy, keeping alive hopes the Federal Reserve could pause rate hikes in September. Investors now await the personal consumption expenditures price index, the Fed's preferred measure of inflation, and non-farm payroll numbers due on Thursday and Friday, respectively, for more clues on interest rates.
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The 10-year Treasury yield US10YT=RR eased to 4.10%, supporting some growth stocks, with Nvidia NVDA.O, Apple AAPL.O and Alphabet GOOGL.O edging up between 0.2% and 0.7%. The ADP National Employment report showed private payrolls increased by 177,000 jobs in August, compared with estimates of 195,000, signaling an easing labor market. "Those reports (private payrolls and GDP) were really actually positive for the market, even though they were a little soft," said Thomas Martin, senior portfolio manager at Globalt Investments.
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The 10-year Treasury yield US10YT=RR eased to 4.10%, supporting some growth stocks, with Nvidia NVDA.O, Apple AAPL.O and Alphabet GOOGL.O edging up between 0.2% and 0.7%. By Shristi Achar A and Amruta Khandekar Aug 30 (Reuters) - Wall Street's main indexes were set to inch up at open on Wednesday as fresh economic data indicated a cooling U.S. economy, keeping alive hopes the Federal Reserve could pause rate hikes in September. The ADP National Employment report showed private payrolls increased by 177,000 jobs in August, compared with estimates of 195,000, signaling an easing labor market.
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The 10-year Treasury yield US10YT=RR eased to 4.10%, supporting some growth stocks, with Nvidia NVDA.O, Apple AAPL.O and Alphabet GOOGL.O edging up between 0.2% and 0.7%. By Shristi Achar A and Amruta Khandekar Aug 30 (Reuters) - Wall Street's main indexes were set to inch up at open on Wednesday as fresh economic data indicated a cooling U.S. economy, keeping alive hopes the Federal Reserve could pause rate hikes in September. The ADP National Employment report showed private payrolls increased by 177,000 jobs in August, compared with estimates of 195,000, signaling an easing labor market.
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14067.0
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2023-08-30 00:00:00 UTC
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COLUMN-As Nvidia splashes out, are stock buybacks worth it?: McGeever
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AAPL
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https://www.nasdaq.com/articles/column-as-nvidia-splashes-out-are-stock-buybacks-worth-it%3A-mcgeever
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nan
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nan
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By Jamie McGeever
ORLANDO, Florida, Aug 30 (Reuters) - To buy back, or not to buy back.
The highest U.S. interest rates in over 20 years coupled with Wall Street's remarkable resilience has brought an old boardroom dilemma into sharp focus: are share buybacks worth it?
Artificial intelligence giant Nvidia clearly thinks so, announcing on Aug. 23 that it will repurchase $25 billion of its shares. Ditto Apple, Chevron, Alphabet and Wells Fargo, which this year have announced buybacks of $90 billion, $75 billion, $70 billion and $30 billion, respectively.
These are big numbers, but like everything else related to Wall Street, the underlying dynamics are distorted by Mega Tech: buybacks among S&P 500 companies this year will likely be lower than last year's record $952 billion, according to Refinitiv data, and as a share of the index's overall market cap have been falling since Q1 last year.
This metric as a share of market cap is known as the 'buyback yield'. The average of roughly 400 companies in the main index that have one is around 2.44% and the median is 1.73%, calculates Joe Kleven at YCharts.
For context, Nvidia's $25 billion repurchase represents just over 2% of its market cap, and the firm's longer-term average buyback yield is under 1%. Marathon Petroleum, on the other hand, has a long-term buyback yield of around 20%.
"Buyback yields are quite low, because share prices and market caps are so high. Buybacks are not keeping pace with share value," said Ali Ragih, senior research analyst at VerityData.
U.S. stocks are expensive. Relative to bonds, they are the most expensive in almost 20 years, as shown by the 'equity risk premium' that measures prospective bond yields and equity returns. Nominally, the S&P 500 last week hit its highest level of the year, less than 5% from the January 2022 record high.
All things equal, the less management may be inclined to buy back. But relative financing costs may also determine their thinking - with equity finance now cheaper relative to new debt in a high interest rate environment, the impulse to retire equity and expand borrowing may be waning.
Figures from Refinitiv show that S&P 500 companies spent more than $6 trillion on stock buybacks in the decade through 2022. Apple accounts for $530 billion of that, and earlier this year announced another $90 billion.
These eye-watering sums beg the question whether the money could not be better spent on developing products, staff or buying and expanding new business.
Ali Ragih at VerityData argues that if you assume returns on investment generally fall with every new project or expansion, companies reach a point where plowing more cash into research and development or capital expenditure just isn't worth it.
"Microsoft can't do any more M&A, Google can't really hire many more people," he said.
NO HARM DONE ... MOSTLY
A recent study of thousands of U.S. firms' behavior over the course of more than three decades from 1998 to 2020 found that the overall impact of stock buybacks is largely benign.
The study - "Share Repurchases on Trial: Large-Sample Evidence on Share Price Performance, Executive Compensation, and Corporate Investment" - found that, at an aggregate level, repurchasing shares "neither creates nor destroys much wealth (i.e., share price changes) ... (and) they are not associated with excessive CEO pay or underinvestment."
Authors Nicholas Guest at Cornell University, S.P. Kothari at the Massachusetts Institute of Technology and Parth Venkat at the University of Alabama, concluded that buybacks return several hundred billion dollars of capital to shareholders every year and are a mainstream financial avenue open to companies "that for the most part do not harm the overall market."
From a shareholders' perspective, evidence suggests companies that are more active in buying back their shares have an edge over the broader market. Just.
S&P Global's Buyback Index is an equally weighted index that measures the performance of the top 100 stocks in the S&P 500 with the highest buyback ratios.
It has outperformed the main index in six of the last 10 years up to and including 2022, underperformed in three, and was neck and neck in 2017.
But $1 invested in the main index a decade ago would be worth more today than $1 invested in the Buyback Index, with the gap really opening up in the early days of the pandemic in 2020.
So far this year, the wider index's price gains and total returns are roughly double those of the Buyback Index, according to S&P Global figures up to July 31.
If buybacks do slow, will companies sit on their cash while short-term interest rates are so high? Or with long-term real returns also the highest in years, will they invest in longer-term, growth-boosting expansion plans?
(The opinions expressed here are those of the author, a columnist for Reuters.)
S&P 500 index buyback yield https://tmsnrt.rs/3PhH4g9
S&P 500 index vs Buyback index - last decade https://tmsnrt.rs/3OTji8N
Mega Tech returns & buyback yields https://tmsnrt.rs/45vZgYU
S&P 500 Buyback Index vs S&P 500 - YTD performance https://tmsnrt.rs/45GTbJa
(By Jamie McGeever)
((jamie.mcgeever@thomsonreuters.com; Reuters Messaging: jamie.mcgeever.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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The highest U.S. interest rates in over 20 years coupled with Wall Street's remarkable resilience has brought an old boardroom dilemma into sharp focus: are share buybacks worth it? Ali Ragih at VerityData argues that if you assume returns on investment generally fall with every new project or expansion, companies reach a point where plowing more cash into research and development or capital expenditure just isn't worth it. Kothari at the Massachusetts Institute of Technology and Parth Venkat at the University of Alabama, concluded that buybacks return several hundred billion dollars of capital to shareholders every year and are a mainstream financial avenue open to companies "that for the most part do not harm the overall market."
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Ditto Apple, Chevron, Alphabet and Wells Fargo, which this year have announced buybacks of $90 billion, $75 billion, $70 billion and $30 billion, respectively. For context, Nvidia's $25 billion repurchase represents just over 2% of its market cap, and the firm's longer-term average buyback yield is under 1%. S&P 500 index buyback yield https://tmsnrt.rs/3PhH4g9 S&P 500 index vs Buyback index - last decade https://tmsnrt.rs/3OTji8N Mega Tech returns & buyback yields https://tmsnrt.rs/45vZgYU S&P 500 Buyback Index vs S&P 500 - YTD performance https://tmsnrt.rs/45GTbJa (By Jamie McGeever) ((jamie.mcgeever@thomsonreuters.com; Reuters Messaging: jamie.mcgeever.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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These are big numbers, but like everything else related to Wall Street, the underlying dynamics are distorted by Mega Tech: buybacks among S&P 500 companies this year will likely be lower than last year's record $952 billion, according to Refinitiv data, and as a share of the index's overall market cap have been falling since Q1 last year. S&P Global's Buyback Index is an equally weighted index that measures the performance of the top 100 stocks in the S&P 500 with the highest buyback ratios. S&P 500 index buyback yield https://tmsnrt.rs/3PhH4g9 S&P 500 index vs Buyback index - last decade https://tmsnrt.rs/3OTji8N Mega Tech returns & buyback yields https://tmsnrt.rs/45vZgYU S&P 500 Buyback Index vs S&P 500 - YTD performance https://tmsnrt.rs/45GTbJa (By Jamie McGeever) ((jamie.mcgeever@thomsonreuters.com; Reuters Messaging: jamie.mcgeever.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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These are big numbers, but like everything else related to Wall Street, the underlying dynamics are distorted by Mega Tech: buybacks among S&P 500 companies this year will likely be lower than last year's record $952 billion, according to Refinitiv data, and as a share of the index's overall market cap have been falling since Q1 last year. For context, Nvidia's $25 billion repurchase represents just over 2% of its market cap, and the firm's longer-term average buyback yield is under 1%. Ali Ragih at VerityData argues that if you assume returns on investment generally fall with every new project or expansion, companies reach a point where plowing more cash into research and development or capital expenditure just isn't worth it.
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14068.0
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2023-08-30 00:00:00 UTC
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US STOCKS-Wall St rises as weak economic data fuels rate-pause hopes
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-rises-as-weak-economic-data-fuels-rate-pause-hopes
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nan
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nan
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By Shristi Achar A and Amruta Khandekar
Aug 30 (Reuters) - Wall Street's main indexes rose on Wednesday as fresh economic data indicated a cooling U.S. economy, keeping alive hopes the Federal Reserve could pause rate hikes in September.
The ADP National Employment report showed private payrolls increased by 177,000 jobs in August, compared with estimates of 195,000, signaling an easing labor market.
Fresh gross domestic product (GDP) numbers showed the U.S. economy expanded 2.1% in the second quarter, slower than a preliminary estimate of a 2.4% growth.
"Those reports (private payrolls and GDP) were really actually positive for the market, even though they were a little soft," said Thomas Martin, senior portfolio manager at Globalt Investments.
"The market thinks the Fed almost certainly won't raise (rate) in September and they have a couple of options left on the table for the end of the year."
Traders' bets on the Fed leaving interest rates unchanged in September stood at nearly 91%, up from 88.5% before the data, while bets of a pause in November rose to nearly 59% from about 52% a day earlier, according to the CME Group's FedWatch tool.
Investors now await the personal consumption expenditures price index, the Fed's preferred measure of inflation, and non-farm payroll numbers due on Thursday and Friday, respectively, for more clues on interest rates.
U.S. Treasury yields eased after the payroll and GDP data, with the 10-year yield US10YT=RR last at 4.09%.
Shares of major growth stocks seesawed between gains and losses, with some analysts attributing the volatility to thin trading volumes. Apple AAPL.O gained 1%, while Tesla TSLA.O lost 1.2%.
Eight of the 11 major S&P 500 sectors rose in early trading, with energy .SPNY leading gains, up 0.7%, on higher oil prices. O/R
The cyclicals-heavy Dow Jones .DJI was also boosted by gains in Visa V.N, up 0.9%, after a report said the company and rival Mastercard, up 1.3%, were preparing to raise credit-card fees.
U.S.-listed shares of Chinese firms including PDD Holdings PDD.O, JD.com JD.O, Baidu BIDU.O and Alibaba BABA.N were mixed as U.S. Commerce Secretary Gina Raimondo talked up American firms' desire to do business in China after having labeled it "uninvestible".
At 9:52 a.m. ET, the Dow Jones Industrial Average .DJI was up 155.38 points, or 0.45%, at 35,008.05, the S&P 500 .SPX was up 15.61 points, or 0.35%, at 4,513.24, and the Nasdaq Composite .IXIC was up 40.17 points, or 0.29%, at 13,983.93.
Shares of HP IncHPQ.N slid 10.3% as the personal computer maker trimmed its annual forecast due to slowing demand.
Rite AidRAD.N dropped 2.8% after S&P Global Ratings downgraded the drug retailer on increased restructuring risks.
Texas InstrumentsTXN.O fell 1.6% after Bernstein downgraded the analog chipmaker to "underperform" from "market perform".
Brown-FormanBFb.N fell 4.3% after the Jack Daniels whiskey maker missed its first-quarter sales and profit estimates.
Advancing issues outnumbered decliners by a 2.16-to-1 ratio on the NYSE and by a 1.22-to-1 ratio on the Nasdaq.
The S&P index recorded 21 new 52-week highs and no new low, while the Nasdaq recorded 25 new highs and 30 new lows.
(Reporting by Shristi Achar A and Amruta Khandekar in Bengaluru; Editing by Savio D'Souza and Vinay Dwivedi)
((Shristi.AcharA@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 gained 1%, while Tesla TSLA.O lost 1.2%. By Shristi Achar A and Amruta Khandekar Aug 30 (Reuters) - Wall Street's main indexes rose on Wednesday as fresh economic data indicated a cooling U.S. economy, keeping alive hopes the Federal Reserve could pause rate hikes in September. The ADP National Employment report showed private payrolls increased by 177,000 jobs in August, compared with estimates of 195,000, signaling an easing labor market.
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Apple AAPL.O gained 1%, while Tesla TSLA.O lost 1.2%. The ADP National Employment report showed private payrolls increased by 177,000 jobs in August, compared with estimates of 195,000, signaling an easing labor market. U.S. Treasury yields eased after the payroll and GDP data, with the 10-year yield US10YT=RR last at 4.09%.
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Apple AAPL.O gained 1%, while Tesla TSLA.O lost 1.2%. By Shristi Achar A and Amruta Khandekar Aug 30 (Reuters) - Wall Street's main indexes rose on Wednesday as fresh economic data indicated a cooling U.S. economy, keeping alive hopes the Federal Reserve could pause rate hikes in September. The ADP National Employment report showed private payrolls increased by 177,000 jobs in August, compared with estimates of 195,000, signaling an easing labor market.
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Apple AAPL.O gained 1%, while Tesla TSLA.O lost 1.2%. By Shristi Achar A and Amruta Khandekar Aug 30 (Reuters) - Wall Street's main indexes rose on Wednesday as fresh economic data indicated a cooling U.S. economy, keeping alive hopes the Federal Reserve could pause rate hikes in September. The ADP National Employment report showed private payrolls increased by 177,000 jobs in August, compared with estimates of 195,000, signaling an easing labor market.
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14069.0
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2023-08-30 00:00:00 UTC
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Dow Movers: INTC, BA
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AAPL
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https://www.nasdaq.com/articles/dow-movers%3A-intc-ba-2
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nan
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nan
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In early trading on Wednesday, shares of Boeing topped the list of the day's best performing Dow Jones Industrial Average components, trading up 1.1%. Year to date, Boeing registers a 20.6% gain.
And the worst performing Dow component thus far on the day is Intel, trading down 0.5%. Intel is showing a gain of 29.1% looking at the year to date performance.
Two other components making moves today are Salesforce, trading down 0.2%, and Apple, trading up 1.0% on the day.
VIDEO: Dow Movers: INTC, BA
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 Wednesday, shares of Boeing topped the list of the day's best performing Dow Jones Industrial Average components, trading up 1.1%. And the worst performing Dow component thus far on the day is Intel, trading down 0.5%. Intel is showing a gain of 29.1% looking at the year to date performance.
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In early trading on Wednesday, shares of Boeing topped the list of the day's best performing Dow Jones Industrial Average components, trading up 1.1%. Year to date, Boeing registers a 20.6% gain. And the worst performing Dow component thus far on the day is Intel, trading down 0.5%.
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In early trading on Wednesday, shares of Boeing topped the list of the day's best performing Dow Jones Industrial Average components, trading up 1.1%. And the worst performing Dow component thus far on the day is Intel, trading down 0.5%. Two other components making moves today are Salesforce, trading down 0.2%, and Apple, trading up 1.0% on the day.
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And the worst performing Dow component thus far on the day is Intel, trading down 0.5%. Intel is showing a gain of 29.1% looking at the year to date performance. VIDEO: Dow Movers: INTC, BA 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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14070.0
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2023-08-30 00:00:00 UTC
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NEWSMAKER-Terry Gou, the man who made iPhones, bids again to be Taiwan president
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AAPL
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https://www.nasdaq.com/articles/newsmaker-terry-gou-the-man-who-made-iphones-bids-again-to-be-taiwan-president
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nan
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nan
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By Ben Blanchard and Yimou Lee
TAIPEI, Aug 30 (Reuters) - After mastering making iPhones, Taiwan's Terry Gou, the billionaire founder of major Apple Inc APPL.O supplier Foxconn 2317.TW, now wants to turn his entrepreneurial skills elsewhere - to be the island's next president.
After at least two previous failed bids, Gou, 72, is seeking to unite a fractured opposition amid rising tensions with China, which he blames on the ruling Democratic Progressive Party's (DPP) hostility to Beijing.
"Over the past seven years, the DPP government has not only brought Taiwan dangerously close to war, but has also pursued flawed domestic policies that have failed to resolve the challenges facing Taiwan's industries and people's lives," he said on Monday, announcing his run to be "Taiwan's CEO" at the January election.
The DPP-led government has repeatedly offered talks with Beijing, but been rebuffed, and has blamed China for the tensions.
Gou faces the challenge of trying to get the two main opposition parties - the Kuomintang (KMT) which he had hoped to represent as its candidate and the Taiwan People's Party - to work together and "take down the DPP", as he said on Monday.
Before he announced his bid to run as an independent on Monday, Gou had sought the KMT ticket for the presidency but failed.
But his direct language, along with his business acumen, has drawn crowds in pseudo-campaign events across Taiwan that Gou held in the run-up to his announcement.
"He's a straight-talking political outsider," said Sung Wen-Ti, a political scientist at Australian National University's Taiwan Studies Program.
"He can attract market confidence-oriented voters. He can also attract the educated crowd who are into a more technocratic form of governance."
FROM FACTORY JOBS TO APPLE
Gou was not born wealthy. After graduating from university, he worked in a series of factory jobs, as Taiwan in the late 1960s and early 1970s began using its cheap labour force to churn out consumer goods for the rich Western world.
He founded Hon Hai Precision Industry Co Ltd, better known as Foxconn, in 1974 with a $7,500 loan from his mother and 11 elderly workers. He first made cheap plastic parts for black-and-white television sets for a Chicago TV manufacturer, before a major deal in 1980 making joystick connectors for Atari games consoles.
In 2000, Foxconn won an order to make Apple's redesigned iMacs, leveraging experience making a variety of parts for the likes of U.S. personal computer vendor Dell.
Gou recalled how he had to be persistent with late Apple co-founder Steve Jobs, saying he had to force Jobs to give him a business card.
"He was extremely happy when I managed to help him develop the first-ever iPhone. He showed me how to use the touch screen on the spot," Gou said in 2011 about his relationship with Jobs.
Foxconn eventually became one of the world's largest private-sector employers with at times over a million workers assembling devices for global brands such as Sony Corp 6758.T, Nintendo Co Ltd 7974.T and Microsoft Corp MSFT.O.
'I DON'T FOLLOW THEIR INSTRUCTIONS'
Gou remains a lauded figure at Foxconn after stepping down as chairman in 2019, referred to reverentially as "the founder", though the company said on Monday he was no longer involved in day to day management after "handing over the baton" four years ago.
Having built the world's largest contract manufacturer from scratch, Gou's connections reached as high as Chinese President Xi Jinping who he met in 2014 in Beijing, and who in 2017 he described as a great leader, Taiwan media reported.
Gou's parents were born in China and were of the generation that fled to Taiwan after the Communists won China's civil war in 1949, a year before Gou's birth on the island.
In an interview with the Communist Party's official People's Daily in 2018 to mark China's 40th anniversary of landmark economic reform, Gou said he was happy to have witnessed the changes.
He talked about how his father was from Shanxi province and mother from Guangdong, and that when he first visited China in 1987 to trace his family's roots, it was the "first time I had stepped foot on the soil of the motherland".
Earlier this year, Gou vowed to start negotiations with China if he was elected president on the basis that both sides belong to one single China but each can interpret what that means.
"The two sides can sit down together and we can take all the time we need to talk about 'different interpretations."
Still, on Monday he struck a tougher tone when asked if his Foxconn shareholdings meant China could simply tell him what to do if he became president.
"I have never been under the control of the People's Republic of China," he said. "I don't follow their instructions."
Friends in high places have included former U.S. President Donald Trump.
Gou told Trump he wanted to be a peacemaker between Taiwan, China and the U.S. as Taiwan's president.
"Peace, stability, economy, the future, are my core values," he had said after announcing a bid to be the KMT candidate at the 2020 election, although he ultimately failed to get the nomination.
The KMT lost that election by a landslide.
(Reporting by Ben Blanchard and Yimou Lee; Additional reporting by Sarah Wu; Editing by Raju Gopalakrishnan)
((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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By Ben Blanchard and Yimou Lee TAIPEI, Aug 30 (Reuters) - After mastering making iPhones, Taiwan's Terry Gou, the billionaire founder of major Apple Inc APPL.O supplier Foxconn 2317.TW, now wants to turn his entrepreneurial skills elsewhere - to be the island's next president. After at least two previous failed bids, Gou, 72, is seeking to unite a fractured opposition amid rising tensions with China, which he blames on the ruling Democratic Progressive Party's (DPP) hostility to Beijing. Having built the world's largest contract manufacturer from scratch, Gou's connections reached as high as Chinese President Xi Jinping who he met in 2014 in Beijing, and who in 2017 he described as a great leader, Taiwan media reported.
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By Ben Blanchard and Yimou Lee TAIPEI, Aug 30 (Reuters) - After mastering making iPhones, Taiwan's Terry Gou, the billionaire founder of major Apple Inc APPL.O supplier Foxconn 2317.TW, now wants to turn his entrepreneurial skills elsewhere - to be the island's next president. Gou's parents were born in China and were of the generation that fled to Taiwan after the Communists won China's civil war in 1949, a year before Gou's birth on the island. (Reporting by Ben Blanchard and Yimou Lee; Additional reporting by Sarah Wu; Editing by Raju Gopalakrishnan) ((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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"Over the past seven years, the DPP government has not only brought Taiwan dangerously close to war, but has also pursued flawed domestic policies that have failed to resolve the challenges facing Taiwan's industries and people's lives," he said on Monday, announcing his run to be "Taiwan's CEO" at the January election. Gou's parents were born in China and were of the generation that fled to Taiwan after the Communists won China's civil war in 1949, a year before Gou's birth on the island. Gou told Trump he wanted to be a peacemaker between Taiwan, China and the U.S. as Taiwan's president.
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Before he announced his bid to run as an independent on Monday, Gou had sought the KMT ticket for the presidency but failed. Gou's parents were born in China and were of the generation that fled to Taiwan after the Communists won China's civil war in 1949, a year before Gou's birth on the island. "The two sides can sit down together and we can take all the time we need to talk about 'different interpretations."
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14071.0
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2023-08-30 00:00:00 UTC
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Never Mind FAANG: 1 "Magnificent Seven" Stock to Buy Now, and 1 to Avoid Ahead of the Next Nasdaq Bull Market
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AAPL
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https://www.nasdaq.com/articles/never-mind-faang%3A-1-magnificent-seven-stock-to-buy-now-and-1-to-avoid-ahead-of-the-next
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After climbing more than 30% year to date, the Nasdaq Composite is just 15% away from a new record high, the most conservative threshold for a new bull market. Investors looking to capitalize on that momentum may be drawn to what Wall Street has dubbed the "Magnificent Seven" stocks, a group of seven megacap companies that collectively account for more than 40% of the Nasdaq Composite by weighted exposure:
Apple
Microsoft
Alphabet
Amazon
Nvidia
Tesla
Meta Platforms
Investors can think of the Magnificent Seven as a revised version of the FAANG stocks, and every member of the group is an incredible company in its own right. But that does not mean every stock listed is a worthwhile investment at the present time.
Here's one Magnificent Seven stock to buy and one to avoid ahead of the Nasdaq bull market.
The Magnificent Seven stock to buy: Tesla
Tesla (NASDAQ: TSLA) accounted for an industry-leading 21.8% of battery electric vehicle sales through the June quarter, up from 19% in the same period last year. That puts the company nearly seven percentage points ahead of its closest rival, Chinese manufacturer BYD. But Tesla accomplished something even more impressive last year when it recorded the highest operating margin among volume carmakers.
Elon Musk attributes that success to more sophisticated manufacturing technology, and the company plans to press its advantage with a new assembly process at Gigafactory Mexico, where production is slated to begin in 2025. The innovative assembly system could cut manufacturing costs in half and reduce its factory footprint by 40%, according to Reuters, enabling Tesla to build sub-$30,000 electric cars.
Manufacturing innovations will likely lead to modest margin expansion, but its full self-driving (FSD) platform promises a much greater impact on profitability. Musk believes FSD software and autonomous ride-hailing services could boost gross profit margin to 70% or more, up from about 25% today.
Looking ahead, the bull case for Tesla centers on two tremendous growth opportunities. The electric vehicle market is expected to increase at 23% annually to reach $1.7 trillion by 2032, while the autonomous vehicle market is projected to grow at 35% annually to hit $2.4 trillion during the same period.
Tech analyst Gene Munster is particularly bullish on Tesla, noting that FSD software could push operating income to $100 billion over the next decade, representing 23% annual growth. Munster also believes Tesla could be worth $2.5 trillion by 2026.
On that note, shares currently trade at an exorbitant 67.8 times earnings, but that multiple could fall quickly if operating income does indeed grow at 23% annually over the next decade, and shareholders could see market-beating returns at the same time. Better yet, should Tesla achieve a $2.5 trillion valuation by 2026, shareholders would see annual returns near 50% over the next three years. While that seems unlikely, risk-tolerant investors should still feel comfortable buying Tesla stock today, provided they start with a small position.
The Magnificent Seven stock to avoid: Apple
Apple (NASDAQ: AAPL) was recognized as the second-most valuable brand in the world in 2023 in a report published by consultancy Brand Finance. The company has now scored third place or better since 2011.
That uncommon brand authority has enabled Apple to carve out a strong presence in several consumer electronics verticals, the most notable of which are its positions as the second-largest smartphone manufacturer and the fourth-largest personal computer (PC) vendor worldwide.
Market share is great, but what truly differentiates Apple is its ability to pair hardware with adjacent software and services. The company monetizes its installed base of 2 billion active devices via the App Store, iCloud, and Apple Pay, as well as subscriptions like Apple TV+ and Apple Music. It enjoys a leadership position in two of those markets. The App Store earns twice as much revenue as Alphabet's Google Play Store, and Apple Pay is nearly three times more popular than the next closest in-store mobile wallet in the U.S.
Looking ahead, the global smartphone and PC markets are projected to grow at 7% and 9% annually, respectively, through 2030. Meanwhile, global mobile app sales are expected to rise at 14% annually, and U.S. mobile wallet revenue is forecasted to increase at 27% annually during the same period.
Apple has other opportunities as well -- its digital advertising business is growing quickly -- but the sum of those opportunities is this: Apple has a good shot at high-single digit revenue growth through 2030.
However, the company regularly repurchases stock, and its high-margin services business is growing as a percentage of total revenue, so it could achieve low-double-digit earnings growth through the end of the decade. But I don't think that justifies its current valuation of 30 times earnings, which itself is a premium to the five-year average of 25.3. That multiple will almost certainly contract in the future, and Apple will be hard pressed to deliver market-beating returns as that happens.
Apple is a wonderful company, but I think investors should avoid the stock for the time being.
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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. 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. Trevor Jennewine has positions in Amazon.com, Nvidia, and Tesla. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, BYD, Meta Platforms, 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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The Magnificent Seven stock to avoid: Apple Apple (NASDAQ: AAPL) was recognized as the second-most valuable brand in the world in 2023 in a report published by consultancy Brand Finance. Elon Musk attributes that success to more sophisticated manufacturing technology, and the company plans to press its advantage with a new assembly process at Gigafactory Mexico, where production is slated to begin in 2025. Tech analyst Gene Munster is particularly bullish on Tesla, noting that FSD software could push operating income to $100 billion over the next decade, representing 23% annual growth.
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The Magnificent Seven stock to avoid: Apple Apple (NASDAQ: AAPL) was recognized as the second-most valuable brand in the world in 2023 in a report published by consultancy Brand Finance. Investors looking to capitalize on that momentum may be drawn to what Wall Street has dubbed the "Magnificent Seven" stocks, a group of seven megacap companies that collectively account for more than 40% of the Nasdaq Composite by weighted exposure: Apple Microsoft Alphabet Amazon Nvidia Tesla Meta Platforms Investors can think of the Magnificent Seven as a revised version of the FAANG stocks, and every member of the group is an incredible company in its own right. The electric vehicle market is expected to increase at 23% annually to reach $1.7 trillion by 2032, while the autonomous vehicle market is projected to grow at 35% annually to hit $2.4 trillion during the same period.
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The Magnificent Seven stock to avoid: Apple Apple (NASDAQ: AAPL) was recognized as the second-most valuable brand in the world in 2023 in a report published by consultancy Brand Finance. Investors looking to capitalize on that momentum may be drawn to what Wall Street has dubbed the "Magnificent Seven" stocks, a group of seven megacap companies that collectively account for more than 40% of the Nasdaq Composite by weighted exposure: Apple Microsoft Alphabet Amazon Nvidia Tesla Meta Platforms Investors can think of the Magnificent Seven as a revised version of the FAANG stocks, and every member of the group is an incredible company in its own right. The Magnificent Seven stock to buy: Tesla Tesla (NASDAQ: TSLA) accounted for an industry-leading 21.8% of battery electric vehicle sales through the June quarter, up from 19% in the same period last year.
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The Magnificent Seven stock to avoid: Apple Apple (NASDAQ: AAPL) was recognized as the second-most valuable brand in the world in 2023 in a report published by consultancy Brand Finance. Here's one Magnificent Seven stock to buy and one to avoid ahead of the Nasdaq bull market. On that note, shares currently trade at an exorbitant 67.8 times earnings, but that multiple could fall quickly if operating income does indeed grow at 23% annually over the next decade, and shareholders could see market-beating returns at the same time.
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14072.0
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2023-08-30 00:00:00 UTC
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Why Is Everyone Talking About Apple Stock?
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AAPL
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https://www.nasdaq.com/articles/why-is-everyone-talking-about-apple-stock-0
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Fool.com contributor Parkev Tatevosian discusses key statements from Apple (NASDAQ: AAPL) management that could have major implications for investors.
*Stock prices used were the afternoon prices of Aug. 26, 2023. The video was published on Aug. 28, 2023.
10 stocks we like better than Apple
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Parkev Tatevosian, CFA has positions in Apple. The Motley Fool has positions in and recommends Apple. The Motley Fool has a disclosure policy.
Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his 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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Fool.com contributor Parkev Tatevosian discusses key statements from Apple (NASDAQ: AAPL) management that could have major implications for investors. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. If you choose to subscribe through his link, he will earn some extra money that supports his channel.
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Fool.com contributor Parkev Tatevosian discusses key statements from Apple (NASDAQ: AAPL) management that could have major implications for investors. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. See the 10 stocks *Stock Advisor returns as of August 28, 2023 Parkev Tatevosian, CFA has positions in Apple.
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Fool.com contributor Parkev Tatevosian discusses key statements from Apple (NASDAQ: AAPL) management that could have major implications for investors. 10 stocks we like better than Apple When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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Fool.com contributor Parkev Tatevosian discusses key statements from Apple (NASDAQ: AAPL) management that could have major implications for investors. See the 10 stocks *Stock Advisor returns as of August 28, 2023 Parkev Tatevosian, CFA has positions in Apple. The Motley Fool has positions in and recommends Apple.
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14073.0
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2023-08-30 00:00:00 UTC
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ANALYSIS-Funds punished for owning too few Nvidia shares after stunning 230% rally
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AAPL
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https://www.nasdaq.com/articles/analysis-funds-punished-for-owning-too-few-nvidia-shares-after-stunning-230-rally
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By Lewis Krauskopf
NEW YORK, Aug 30 (Reuters) - Nvidia Corp’s NVDA.O soaring rally has thrilled investors this year - except for the sizeable number of fund managers who avoided what they believe to be an expensive stock.
Shares of the semiconductor company - whose chips power generative AI apps such as ChatGPT - have more than tripled this year in a rally fueled by excitement over the prospects for artificial intelligence. Yet many funds hold less of the stock in their portfolios compared with Nvidia's weight in key equity indexes, making it tougher for them to beat their benchmarks.
Across nearly 330 mutual funds benchmarked to the S&P 500 .SPX or a similar index, only 15% held an above-index weight in Nvidia, according to a Morningstar analysis of the funds' most recent regulatory filings. Among those funds that held a below-average weight in Nvidia, 85% underperformed the index so far this year, Morningstar's data showed.
Nvidia's valuation has been a primary reason keeping some investors away, while others are wary of buying in after the stock’s mammoth 230% run this year. The stock currently trades at 33.6 times forward 12 months earnings estimates, compared with less than 24 times for the Nasdaq 100 .NDX, according to Refinitiv Datastream.
“One stock is not going to make or break us, but it certainly doesn’t help if you don’t own it and the stock triples,” said Chuck Carlson, chief executive officer at Horizon Investment Services.
Horizon, which has $250 million in assets under management, this year has not recommended clients own the stock in portfolios, which typically are between 30 and 35 stocks. The firm currently ranks Nvidia at the bottom of its models in terms of valuation.
Aside from valuation, concerns about whether demand for chips will continue at current levels and about how the AI landscape will evolve have also kept some on the sidelines.
The evaluation of Nvidia’s shares comes as investors gauge whether a searing rally in Big Tech and growth names has more fuel after valuations ballooned and many winners stumbled in recent weeks. The S&P 500, where Nvidia and other megacap growth stocks have an outsized weighting - is down 2% from its late July highs though up about 17% for the year.
Nvidia and six other megacap stocks - Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Amazon AMZN.O, Meta Platforms META.O and Tesla TSLA.O - have accounted for about 73% of the S&P 500's total return in 2023 as of Tuesday, according to S&P Dow Jones Indices.
Yet fund managers have been under-allocated to many of those stocks, including Apple, the largest U.S. company by market value.
Mutual funds hold their "widest ever" underweight in the seven names, Goldman Sachs said, with the average large-cap core mutual fund having 18% exposure to the group compared with the stocks' 28% weight in the S&P 500.
"These underweights have been the primary headwind to mutual fund performance" in 2023, Goldman wrote in a recent a note.
SOME INVESTORS WARY
While all seven megacaps have soundly outperformed the S&P 500 this year, Nvidia's performance has been a standout. Nvidia alone accounted for 14.9% of the index's return through Tuesday.
Still, of 15 large tech and growth stocks tracked by Morgan Stanley, Nvidia was the third most under-owned in actively managed portfolios as of the end of the second quarter, with only Apple and Microsoft being more under-owned.
"It was a costly error of omission for funds that held an underweight to it," said Robby Greengold, strategist at Morningstar.
Nvidia shares marked a record high closing price on Tuesday, in the wake of a strong earnings report last week. At the same time, the stock's forward price-to-earnings ratio moderated earlier this week to its lowest level in about eight months as analysts increased earnings estimates.
Even so, its valuation makes some investors wary. Although Nvidia’s valuation has moderated since, the stock had a forward price-to-sales ratio of 25 times in late July, according to Jeremy Schwartz, global chief investment officer at WisdomTree.
A historical analysis by Schwartz found that stocks with similar ratios fell a median of 36% relative to the S&P 500 over the next 12 months.
Michael Purves, CEO of Tallbacken Capital Advisors, said Nvidia still looks expensive, based on price-to-sales ratios, while he is also wary of the cyclical swings to which the semiconductor industry has been prone.
Purves is recommending clients hold a "bearish" short-term options position in Nvidia that could be a potential hedge to any market downturn.
"You have seen this stock driven up so far, so fast,” Purves said. "The stock has had an amazing rally, but it would be totally normal for it to correct 20-25%."
Nvidia shares soar in 2023 https://tmsnrt.rs/3Pa6Xi0
ANALYSIS-Nvidia's $25 billion buyback 'a head-scratcher' for some shareholders
(Reporting by Lewis Krauskopf in New York Editing by Ira Iosebashvili and Matthew Lewis)
((lewis.krauskopf@thomsonreuters.com; 646-223-6082; Reuters Messaging: lewis.krauskopf.thomsonreuters.com@reuters.net, Twitter: @LKrauskopf))
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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Nvidia and six other megacap stocks - Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Amazon AMZN.O, Meta Platforms META.O and Tesla TSLA.O - have accounted for about 73% of the S&P 500's total return in 2023 as of Tuesday, according to S&P Dow Jones Indices. By Lewis Krauskopf NEW YORK, Aug 30 (Reuters) - Nvidia Corp’s NVDA.O soaring rally has thrilled investors this year - except for the sizeable number of fund managers who avoided what they believe to be an expensive stock. Shares of the semiconductor company - whose chips power generative AI apps such as ChatGPT - have more than tripled this year in a rally fueled by excitement over the prospects for artificial intelligence.
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Nvidia and six other megacap stocks - Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Amazon AMZN.O, Meta Platforms META.O and Tesla TSLA.O - have accounted for about 73% of the S&P 500's total return in 2023 as of Tuesday, according to S&P Dow Jones Indices. By Lewis Krauskopf NEW YORK, Aug 30 (Reuters) - Nvidia Corp’s NVDA.O soaring rally has thrilled investors this year - except for the sizeable number of fund managers who avoided what they believe to be an expensive stock. The stock currently trades at 33.6 times forward 12 months earnings estimates, compared with less than 24 times for the Nasdaq 100 .NDX, according to Refinitiv Datastream.
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Nvidia and six other megacap stocks - Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Amazon AMZN.O, Meta Platforms META.O and Tesla TSLA.O - have accounted for about 73% of the S&P 500's total return in 2023 as of Tuesday, according to S&P Dow Jones Indices. By Lewis Krauskopf NEW YORK, Aug 30 (Reuters) - Nvidia Corp’s NVDA.O soaring rally has thrilled investors this year - except for the sizeable number of fund managers who avoided what they believe to be an expensive stock. Yet many funds hold less of the stock in their portfolios compared with Nvidia's weight in key equity indexes, making it tougher for them to beat their benchmarks.
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Nvidia and six other megacap stocks - Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Amazon AMZN.O, Meta Platforms META.O and Tesla TSLA.O - have accounted for about 73% of the S&P 500's total return in 2023 as of Tuesday, according to S&P Dow Jones Indices. Across nearly 330 mutual funds benchmarked to the S&P 500 .SPX or a similar index, only 15% held an above-index weight in Nvidia, according to a Morningstar analysis of the funds' most recent regulatory filings. "These underweights have been the primary headwind to mutual fund performance" in 2023, Goldman wrote in a recent a note.
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14074.0
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2023-08-30 00:00:00 UTC
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2 Top Value Stocks to Buy Right Now
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https://www.nasdaq.com/articles/2-top-value-stocks-to-buy-right-now-3
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August hasn’t been a good month for markets, as investors have been rattled by a hawkish Fed, soaring valuations, and the deepening slowdown in China. The rally in artificial intelligence (AI) stocks has also lost steam, and Nvidia (NVDA) barely managed to close in the green despite a stellar fiscal Q2 earnings report last week.
While U.S. stocks have rebounded from their August lows, benchmark equity indices look to set to close the month in the red. As markets turn volatile after a strong first-half performance, I believe Berkshire Hathaway (BRK.B) and PayPal (PYPL) are two value stocks worth buying at these price levels.
Berkshire Hathaway Stock Is Underperforming in 2023
Berkshire Hathaway is led by the legendary investor Warren Buffett, with Charlie Munger as his deputy. The “Oracle of Omaha” is known for his value investing credentials, which are reflected in the conglomerate’s investing philosophy.
Just as Nvidia can be a part of almost every growth portfolio, I believe Berkshire Hathaway can be a core part of any value investor’s portfolio - and over the long term, it can beat the S&P 500 Index ($SPX). To be sure, in recent years, Berkshire Hathaway shares have routinely lagged the SPX (accounting for dividends), including a 20% underperformance in 2019 – which was Buffett’s sixth-worse performance gap since 1965, when he took control of the company.
The stock did outperform in 2022, and finished in the green even as broader U.S. markets sold off, but BRK.B is underperforming the SPX in 2023.
However, I believe that Berkshire is among the least understood and sparsely followed companies, with only a handful of analysts covering the shares – despite it being among the top 10 companies by market cap. Berkshire has a Strong Buy rating from the few analysts that do cover it, and the stock's mean target price of $414 represents expected upside potential of nearly 15% from current levels.
www.barchart.com
Why Berkshire Hathaway is a Good Value Stock to Buy
Berkshire is a diverse conglomerate, and apart from a portfolio of publicly traded companies – where Apple (AAPL) is the top holding – it holds several businesses ranging from industrials, energy, railroads, and insurance.
These businesses generate a lot of cash, which - coupled with the float from the insurance business - provides Buffett the firepower to invest in either publicly traded companies or acquire them altogether. Buffett was a net seller of stocks in the first half of 2023, though, and as a result, Berkshire Hathaway’s cash pile rose to $147.2 billion at the end of June - the second-highest on record.
In terms of valuation, the stock trades at a next-12-month enterprise value-to-earnings before interest tax, depreciation, and amortization multiple of 13.94x, which looks reasonable. For context, I am not looking at the traditional price-to-earnings (PE) multiple, as it can provide a distorted picture due to unrealized profits and losses on equity investments, which can lead to massive volatility in the company's earnings.
While Buffett might have slowed down his repurchases of Berkshire shares, the fact remains that the company is still repurchasing stock while cutting its holdings in publicly traded companies. At these prices, I believe BRK.B looks like a reasonably good buy.
PayPal Stock Crashed in 2022
PayPal stock lost almost two-thirds of its market cap in 2022, and was among the worst-performing S&P 500 stocks of the year. PYPL continues to underwhelm in 2023; not only did the stock sit out the tech rally, it is down nearly 12% for the year.
The share price underperformance coincides with some fundamental challenges for PayPal. The company faces rising competition from rivals like ApplePay, margin compression has been a pain point, and its earnings plunged in 2022.
Plus, while the company posted better-than-expected earnings in Q2, a falling user count spooked investors.
Why PYPL Looks Like a Good Value Stock to Buy
Earlier this month, PayPal announced that it has appointed Alex Chriss as its new CEO effective Sep. 27. The new leadership might help the company regain some of its lost mojo - and from a valuation perspective, PYPL stock looks attractive, with an NTM PE multiple of 11.8x resting near all-time lows.
Also, while Berkshire might have slowed down the pace of buybacks, PayPal expects to repurchase around $5 billion worth of its shares in 2023. For context, that's about 7.3% of its market cap. The repurchases make perfect sense for the company, given its low valuations, and should help in lifting per-share earnings.
To be sure, the company still faces several challenges, including rising competition and contracting margins. Analysts expect the company’s revenues to rise 7.8% in 2023 and 9.2% in 2024 – while projecting the fintech company’s earnings to rise 22.1% and 17% in these years.
www.barchart.com
Overall, Wall Street analysts rate PYPL stock as a Moderate Buy. Of the 30 analysts covering the stock, 18 have a Strong Buy rating, while one analyst has a Moderate Buy rating. The remaining 11 have a Hold rating on the shares.
www.barchart.com
Meanwhile, it's notable that PayPal stock even trades below the Street-low target price of $65. Its mean target price of $89.61 is a premium of about 43% to current levels, while the Street-high target price of $126 implies expectations for the stock to more than double.
Overall, I believe that while PayPal is currently out of favor with markets, the stock’s risk-reward looks favorable, and it should be a good value stock to buy at these levels.
On the date of publication, Mohit Oberoi had a position in: PYPL , AAPL , BRK.B . 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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www.barchart.com Why Berkshire Hathaway is a Good Value Stock to Buy Berkshire is a diverse conglomerate, and apart from a portfolio of publicly traded companies – where Apple (AAPL) is the top holding – it holds several businesses ranging from industrials, energy, railroads, and insurance. On the date of publication, Mohit Oberoi had a position in: PYPL , AAPL , BRK.B . The rally in artificial intelligence (AI) stocks has also lost steam, and Nvidia (NVDA) barely managed to close in the green despite a stellar fiscal Q2 earnings report last week.
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www.barchart.com Why Berkshire Hathaway is a Good Value Stock to Buy Berkshire is a diverse conglomerate, and apart from a portfolio of publicly traded companies – where Apple (AAPL) is the top holding – it holds several businesses ranging from industrials, energy, railroads, and insurance. On the date of publication, Mohit Oberoi had a position in: PYPL , AAPL , BRK.B . As markets turn volatile after a strong first-half performance, I believe Berkshire Hathaway (BRK.B) and PayPal (PYPL) are two value stocks worth buying at these price levels.
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www.barchart.com Why Berkshire Hathaway is a Good Value Stock to Buy Berkshire is a diverse conglomerate, and apart from a portfolio of publicly traded companies – where Apple (AAPL) is the top holding – it holds several businesses ranging from industrials, energy, railroads, and insurance. On the date of publication, Mohit Oberoi had a position in: PYPL , AAPL , BRK.B . While Buffett might have slowed down his repurchases of Berkshire shares, the fact remains that the company is still repurchasing stock while cutting its holdings in publicly traded companies.
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www.barchart.com Why Berkshire Hathaway is a Good Value Stock to Buy Berkshire is a diverse conglomerate, and apart from a portfolio of publicly traded companies – where Apple (AAPL) is the top holding – it holds several businesses ranging from industrials, energy, railroads, and insurance. On the date of publication, Mohit Oberoi had a position in: PYPL , AAPL , BRK.B . As markets turn volatile after a strong first-half performance, I believe Berkshire Hathaway (BRK.B) and PayPal (PYPL) are two value stocks worth buying at these price levels.
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14075.0
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2023-08-29 00:00:00 UTC
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These Are the ONLY 3 Nasdaq Stocks to Consider in August 2023
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AAPL
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https://www.nasdaq.com/articles/these-are-the-only-3-nasdaq-stocks-to-consider-in-august-2023
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The best Nasdaq stocks to buy are those with the firepower to live up to the index’s impressive recovery. The Nasdaq is home to a host of tech stocks, including some of the mega caps that are now the most valuable companies on the planet. In the past, this has served the index well, as the tech revolution continued to send shares higher. However as interest rates climbed, valuations started to look a little frothy and the index suffered a major decline. Investor sentiment around these higher-value tech stocks has now improved, and the Nasdaq has made its way markedly higher so far this year.
The current conditions are challenging though. Between consumers’ dwindling disposable income to companies’ need to cut costs, growth is getting more difficult to come by. That will likely make the Nasdaq’s prospects patchy at best. With that in mind, it’s worth assessing the top Nasdaq stocks to close out the rest of the year.
The best Nasdaq stocks to buy are those with strong brand power. This is particularly important when it comes to consumer goods and services, because it means people are willing to pay more for a brand they know and trust. But it’s also important when it comes to B2B services as rising costs makes companies ruthless about the services they’re willing to send to the chopping block.
Though the index has made a strong recovery from its previous lows, there are still some turnaround stocks to watch. Profitability is a key metric to watch given the current cost environment— so companies that are able to deliver margin improvements are a strong pick.
Nasdaq Stocks to Buy: Amazon (AMZN)
Source: Tada Images / Shutterstock.com
Amazon (NASDAQ:AMZN) may be best known for its namesake retail arm, however it’s AWS— their cloud business, making it one of the best Nasdaq stocks to buy. Investors got used to AWS delivering outsized growth quarter after quarter, but more recently we’ve seen that part of the business start to sputter a little bit. The market took this news with a hefty dose of caution, but for investors who are willing to ride out the storm, this shouldn’t be a deal breaker.
The current environment means companies are much more cautious about their spending, so a growth slow down isn’t all that unusual. AWS is still in a strong position to capitalize on the ongoing cloud transition, and Amazon’s offerings will benefit from improving AI capabilities down the line. The group’s position means it hasn’t caught the first wave of optimism for language-based models, such as OpenAI. But other offerings like text-to-image and deep learning are more within the AWS wheelhouse.
Amazon’s business is in a strong position to grow down the line, and although it’s still highly valued, it’s some way lower than it has been in the past.
Apple (AAPL)
Source: Eric Broder Van Dyke / Shutterstock.com
Apple (NASDAQ: AAPL) sells higher-end electronics that should arguably be rubbed off shopping lists amid the cost of living crisis— but they haven’t, and that makes the company one of the best Nasdaq stocks to buy. While Apple’s products are a far cry from being low-cost, the group’s not necessarily catering to the elite. Many of the group’s customers are still price sensitive, so you’d expect to see them slide down the value chain toward cheaper alternatives now that costs are rising. The most recent results showed the handsets aren’t necessarily flying off the shelves, but production suggests the upcoming iPhone 15 is expected to have a positive reception.
Continued strong demand for hardware has set up the Services business for success. The group’s been building out this arm, and growth here offers investors something to be particularly excited about. Adding new users is virtually costless once the platform is built, so margins are enticing in this part of the business.
Apple’s been able to make the most of a difficult environment, and that’s one of the reasons to love the stock. As conditions improve, Apple should be in a strong position to deliver outsized growth, particularly as its Services arm continues to flourish.
PayPal (PYPL)
Source: Michael Vi / Shutterstock.com
There’s a lot to like about PayPal (NASDAQ:PYPL), making it a great pick among Nasdaq stocks to buy. The group is the OG of digital payments, and that comes with a lot of benefits. Being a well-known, trusted name goes a long way as payments shift online. The more consumers that use the service, the more merchants that will want to add it to their website. The more websites boasting a PayPal logo, the more consumers will trust it— and the virtuous loop continues.
But there’s room for improvement, and that’s what makes PayPal worth buying now. The group’s focused on building out a third-party payment option that allows merchants to create their own payment system without the PayPal branding. Right now this is driving growth at the business, but it isn’t taking profitability along for the ride. This part of the business is lower-margin, so it’s done very little to stoke investor interest.
However with a new CEO at the helm, PayPal has pledged to drive margins in the other direction. If the group can pull off this change of course effectively, shares could see a major bump in the quarters ahead.
On the date of publication, Marie Brodbeck did not hold (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.
Marie Brodbeck has a Finance degree from Duquesne University and has been a financial journalist for more than a decade. Her work can be seen in a variety of publications including InvestorPlace, Benzinga, Yahoo Finance and CCN.
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The post These Are the ONLY 3 Nasdaq Stocks to Consider in August 2023 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: Eric Broder Van Dyke / Shutterstock.com Apple (NASDAQ: AAPL) sells higher-end electronics that should arguably be rubbed off shopping lists amid the cost of living crisis— but they haven’t, and that makes the company one of the best Nasdaq stocks to buy. AWS is still in a strong position to capitalize on the ongoing cloud transition, and Amazon’s offerings will benefit from improving AI capabilities down the line. The most recent results showed the handsets aren’t necessarily flying off the shelves, but production suggests the upcoming iPhone 15 is expected to have a positive reception.
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Apple (AAPL) Source: Eric Broder Van Dyke / Shutterstock.com Apple (NASDAQ: AAPL) sells higher-end electronics that should arguably be rubbed off shopping lists amid the cost of living crisis— but they haven’t, and that makes the company one of the best Nasdaq stocks to buy. InvestorPlace - Stock Market News, Stock Advice & Trading Tips The best Nasdaq stocks to buy are those with the firepower to live up to the index’s impressive recovery. Nasdaq Stocks to Buy: Amazon (AMZN) Source: Tada Images / Shutterstock.com Amazon (NASDAQ:AMZN) may be best known for its namesake retail arm, however it’s AWS— their cloud business, making it one of the best Nasdaq stocks to buy.
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Apple (AAPL) Source: Eric Broder Van Dyke / Shutterstock.com Apple (NASDAQ: AAPL) sells higher-end electronics that should arguably be rubbed off shopping lists amid the cost of living crisis— but they haven’t, and that makes the company one of the best Nasdaq stocks to buy. Nasdaq Stocks to Buy: Amazon (AMZN) Source: Tada Images / Shutterstock.com Amazon (NASDAQ:AMZN) may be best known for its namesake retail arm, however it’s AWS— their cloud business, making it one of the best Nasdaq stocks to buy. PayPal (PYPL) Source: Michael Vi / Shutterstock.com There’s a lot to like about PayPal (NASDAQ:PYPL), making it a great pick among Nasdaq stocks to buy.
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Apple (AAPL) Source: Eric Broder Van Dyke / Shutterstock.com Apple (NASDAQ: AAPL) sells higher-end electronics that should arguably be rubbed off shopping lists amid the cost of living crisis— but they haven’t, and that makes the company one of the best Nasdaq stocks to buy. But it’s also important when it comes to B2B services as rising costs makes companies ruthless about the services they’re willing to send to the chopping block. As conditions improve, Apple should be in a strong position to deliver outsized growth, particularly as its Services arm continues to flourish.
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14076.0
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2023-08-29 00:00:00 UTC
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Stocks Rally on Improved Prospects for a Pause in Fed Rate Hikes
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AAPL
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https://www.nasdaq.com/articles/stocks-rally-on-improved-prospects-for-a-pause-in-fed-rate-hikes
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What you need to know…
The S&P 500 Index ($SPX) (SPY) Tuesday closed up +1.45%, the Dow Jones Industrials Index ($DOWI) (DIA) closed up +0.85%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed up +2.15%.
Stocks on Tuesday moved higher throughout the day, with the S&P 500 posting a 2-1/2 week high, the Dow Jones Industrials posting a 1-1/2 week high, and the Nasdaq 100 posting a 3-week high. Stocks rallied after weaker-than-expected U.S. economic news Tuesday on July JOLTS job openings and August consumer confidence knocked bond yields lower and bolstered the prospects for the Fed to pause its rate hike campaign.
A rally in the Shanghai Composite by more than +1% Tuesday also provided some carryover support to global bourses on hopes that an increase in stimulus measures by China will bolster confidence in its markets. Bloomberg reported that China is poised to cut interest rates on trillions of yuan of outstanding home mortgages for the first time since the global financial crisis. Also, Bloomberg reported that Chinese state-owned banks will soon cut deposit rates for the third time in a year to boost their margins.
The U.S. Jun S&P CoreLogic composite-20 home price index rose +0.92% m/m and fell -1.17% y/y, stronger than expectations of +0.80% m/m and -1.60% y/y.
The U.S. Jul JOLTS job openings fell -338,000 to a nearly 2-1/2 year low of 8.827 million, weaker than expectations of 9.500 million.
The Conference Board U.S. Aug consumer confidence index fell -7.9 to 106.1, weaker than expectations of 116.0.
Bitcoin (^BTCUSD) rallied more than +7% to a 1-1/2 week high after Greyscale Investments LLC won a legal fight in its push to launch a Bitcoin exchange-traded fund. A U.S. appeals court overturned a decision by the SEC to block Grayscale Investments from starting a Bitcoin ETF, which paves the way for the first Bitcoin ETF and may spark a flurry of brokerage firms and wealth management companies from filing applications to start their own Bitcoin ETFs.
The markets are discounting the odds at 14% for a +25 bp rate hike at the September 20 FOMC meeting and 51% for that +25 bp rate hike at the November 1 FOMC meeting.
Global bond yields on Tuesday moved lower. The 10-year T-note yield fell to a 2-week low of 4.104% and finished down -9.0 bp at 4.112%. The 10-year German bund yield fell -5.5 bp at 2.510%. The 10-year UK gilt yield fell -1.9 bp to 4.422%.
Overseas stock markets Tuesday settled higher. The Euro Stoxx 50 closed up +0.76%. China’s Shanghai Composite Index closed up +1.20%. Japan’s Nikkei Stock Index closed up +0.18%.
Today’s stock movers…
Alphabet (GOOGL) closed up more than +2%, and Nvidia (NVDA) closed up more than +3% after Alphabet announced new AI infrastructure and software as part of an expanded partnership with Nvidia.
Mega-cap technology stocks rallied Tuesday to lift technology stocks and the broader market. Tesla (TSLA) closed up more than +7% to lead gainers in the S&P 500. Also, Apple (AAPL) and Meta Platforms (META) closed up more than +2%. In addition, Amazon.com (AMZN) and Microsoft (MSFT) closed up more than +1%.
A decline in the 10-year T-note yield to a 2-week low on Tuesday sparked a rally in chip stocks. As a result, On Semiconductor (ON) closed up more than +4%. Also, Advanced Micro Devices (AMD), Applied Materials (AMAT), Broadcom (AVGO), Globalfoundries (GFS), and NXP Semiconductors NV (NXPI) closed up more than +3%. In addition, Intel (INTC), Lam Research (LRCX), KLA Corp (KLAC), and Microchip Technology (MCHP) closed up more than +2%.
Catalent (CTLT) closed up more than +4% after it said its board had established a committee to review its business, strategy, and capital-allocation priorities to maximize long-term value.
Verizon Communications (VZ) closed up more than +3% to lead gainers in the Dow Jones Industrials after Citigroup upgraded the stock to buy from neutral.
PDD Holdings (PDD) closed up more than +15% to lead gainers in the Nasdaq 100 after reporting Q2 revenue of 52.28 billion yuan, well above the consensus of 43.28 billion yuan.
AT&T (T) closed up more than +3% after Citigroup upgraded the stocks to buy from neutral with a price target of $17.
Best Buy (BBY) closed up more than +3% after it said a sales slump in consumer electronics and household appliances is starting to show signs of easing.
JM Smucker (SJM) closed up more than +2% after reporting Q1 adjusted EPS of $2.21, better than the consensus of $2.04, and raising its 2024 adjusted EPS forecast to $9.45-$9.85 from a prior view of $9.20-$9.60, stronger than the consensus of $9.44.
Paccar (PCAR) closed down more than -2% to lead losers in the S&P 500 and Nasdaq 100 after a FreightWaves report said results from major trucking lender Bank of Montreal showed a deterioration in the credit rating of its trucking customers. Cummins (CMI) closed down more than -1% on the news.
Norfolk Southern (NSC) closed down more than -1% after it said it expects a now-resolved hardware-related technology outage to impact its rail operations for at least a couple of weeks.
Heico (HEI) closed down more than -1 % after reporting Q3 Ebitda of $179.8 million, below the consensus of $181.2 million.
Across the markets…
September 10-year T-notes (ZNU23) Tuesday closed up +22 ticks, and the 10-year T-note yield fell -9.0 bp to 4.112%. Sep T-notes Tuesday rallied to a 2-week high, and the 10-year T-note yield dropped to a 2-week low of 4.104%. Weaker-than-expected U.S. economic news Tuesday on Jul JOLTS job openings and Aug consumer confidence are dovish for Fed policy and sparked a rally in T-notes. Also, easing inflation expectations are bullish for T-notes after the 10-year breakeven inflation rate Tuesday declined to a 5-week low of 2.274%.
T-note prices raced to their highs Tuesday afternoon on signs of strong demand for the Treasury’s $36 billion auction of 7-year T-note. The auction had a bid-to-cover ratio of 2.66, well above the 10-auction average of 2.49 and a sign of exceptional demand.
More Stock Market News from Barchart
Dollar Under Pressure as Weak U.S. Economic May Prompt a Fed Pause
Crude Rallies on Dollar Weakness and China Stimulus
Nat-Gas Prices Fall Back on a Mixed U.S. Weather Forecast
3 Retailers Hitting 52-Week High: Care to Guess Which Is the Buy?
On the date of publication, Rich Asplund 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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Also, Apple (AAPL) and Meta Platforms (META) closed up more than +2%. Stocks rallied after weaker-than-expected U.S. economic news Tuesday on July JOLTS job openings and August consumer confidence knocked bond yields lower and bolstered the prospects for the Fed to pause its rate hike campaign. A rally in the Shanghai Composite by more than +1% Tuesday also provided some carryover support to global bourses on hopes that an increase in stimulus measures by China will bolster confidence in its markets.
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Also, Apple (AAPL) and Meta Platforms (META) closed up more than +2%. Stocks rallied after weaker-than-expected U.S. economic news Tuesday on July JOLTS job openings and August consumer confidence knocked bond yields lower and bolstered the prospects for the Fed to pause its rate hike campaign. Weaker-than-expected U.S. economic news Tuesday on Jul JOLTS job openings and Aug consumer confidence are dovish for Fed policy and sparked a rally in T-notes.
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Also, Apple (AAPL) and Meta Platforms (META) closed up more than +2%. What you need to know… The S&P 500 Index ($SPX) (SPY) Tuesday closed up +1.45%, the Dow Jones Industrials Index ($DOWI) (DIA) closed up +0.85%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed up +2.15%. Stocks rallied after weaker-than-expected U.S. economic news Tuesday on July JOLTS job openings and August consumer confidence knocked bond yields lower and bolstered the prospects for the Fed to pause its rate hike campaign.
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Also, Apple (AAPL) and Meta Platforms (META) closed up more than +2%. Stocks on Tuesday moved higher throughout the day, with the S&P 500 posting a 2-1/2 week high, the Dow Jones Industrials posting a 1-1/2 week high, and the Nasdaq 100 posting a 3-week high. PDD Holdings (PDD) closed up more than +15% to lead gainers in the Nasdaq 100 after reporting Q2 revenue of 52.28 billion yuan, well above the consensus of 43.28 billion yuan.
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14077.0
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2023-08-29 00:00:00 UTC
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After Hours Most Active for Aug 29, 2023 : KVUE, IGSB, TAL, VCLT, AAPL, CSCO, NVDA, IONQ, MSFT, JNJ, NOK, NEE
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-aug-29-2023-%3A-kvue-igsb-tal-vclt-aapl-csco-nvda-ionq-msft-jnj
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The NASDAQ 100 After Hours Indicator is down -2.38 to 15,374.17. The total After hours volume is currently 76,805,932 shares traded.
The following are the most active stocks for the after hours session:
Kenvue Inc. (KVUE) is unchanged at $22.86, with 4,546,794 shares traded. KVUE's current last sale is 81.64% of the target price of $28.
iShares 1-5 Year Investment Grade Corporate Bond ETF (IGSB) is unchanged at $50.18, with 4,089,734 shares traded. This represents a 3.21% increase from its 52 Week Low.
TAL Education Group (TAL) is unchanged at $7.16, with 3,073,757 shares traded. TAL's current last sale is 111.01% of the target price of $6.45.
Vanguard Long-Term Corporate Bond ETF (VCLT) is unchanged at $75.97, with 2,624,107 shares traded. This represents a 10.61% increase from its 52 Week Low.
Apple Inc. (AAPL) is +0.0999 at $184.22, with 1,878,658 shares traded. Over the last four weeks they have had 5 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2023. The consensus EPS forecast is $1.38. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Cisco Systems, Inc. (CSCO) is unchanged at $56.56, with 1,734,262 shares traded. Over the last four weeks they have had 7 up revisions for the earnings forecast, for the fiscal quarter ending Oct 2023. The consensus EPS forecast is $0.91. , following a 52-week high recorded in today's regular session.
NVIDIA Corporation (NVDA) is -1.21 at $486.63, with 1,645,146 shares traded. Over the last four weeks they have had 12 up revisions for the earnings forecast, for the fiscal quarter ending Oct 2023. The consensus EPS forecast is $2.9. As reported by Zacks, the current mean recommendation for NVDA is in the "buy range".
IonQ, Inc. (IONQ) is unchanged at $16.50, with 1,640,536 shares traded. IONQ's current last sale is 91.67% of the target price of $18.
Microsoft Corporation (MSFT) is +0.05 at $328.46, with 1,395,518 shares traded. As reported by Zacks, the current mean recommendation for MSFT is in the "buy range".
Johnson & Johnson (JNJ) is unchanged at $164.31, with 1,340,277 shares traded. JNJ's current last sale is 89.3% of the target price of $184.
Nokia Corporation (NOK) is -0.01 at $3.94, with 1,108,495 shares traded. As reported by Zacks, the current mean recommendation for NOK is in the "buy range".
NextEra Energy, Inc. (NEE) is unchanged at $67.51, with 1,107,333 shares traded. As reported by Zacks, the current mean recommendation for NEE 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 +0.0999 at $184.22, with 1,878,658 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". iShares 1-5 Year Investment Grade Corporate Bond ETF (IGSB) is unchanged at $50.18, with 4,089,734 shares traded.
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Apple Inc. (AAPL) is +0.0999 at $184.22, with 1,878,658 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Over the last four weeks they have had 7 up revisions for the earnings forecast, for the fiscal quarter ending Oct 2023.
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Apple Inc. (AAPL) is +0.0999 at $184.22, with 1,878,658 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Over the last four weeks they have had 7 up revisions for the earnings forecast, for the fiscal quarter ending Oct 2023.
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Apple Inc. (AAPL) is +0.0999 at $184.22, with 1,878,658 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The NASDAQ 100 After Hours Indicator is down -2.38 to 15,374.17.
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14078.0
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2023-08-29 00:00:00 UTC
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US STOCKS-S&P 500 ends sharply higher, jobs data fuels interest rate optimism
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AAPL
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https://www.nasdaq.com/articles/us-stocks-sp-500-ends-sharply-higher-jobs-data-fuels-interest-rate-optimism
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nan
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nan
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By Shristi Achar A and Noel Randewich
Aug 29 (Reuters) - Wall Street ended sharply higher on Tuesday, lifted by Tesla, Nvidia and other megacap growth stocks after a drop in monthly job openings cemented expectations of a pause in interest rate hikes by the U.S. Federal Reserve.
The S&P 500 and Nasdaq touched their highest in over two weeks during the session after the Labor Department's Job Openings and Labor Turnover Survey (JOLTS) showed the number of job openings stood at 8.827 million in July, falling for the third straight month and signaling easing labor market pressures.
Investors also parsed a report from the Conference Board showing consumer confidence in the United States fell to 106.1 in August, compared with expectations of 116.
Interest rate futures signaled an 87% chance the Fed will keep rates steady at its September meeting and a 54% chance it will keep rates on hold through November, according the CME Group's FedWatch tool.
"Investors are of the mindset that 'You know what, maybe interest rate hikes are indeed behind us. So let's buy back into stocks,'" said Sam Stovall, chief investment strategist at CFRA Research.
According to preliminary data, the S&P 500 .SPX gained 64.39 points, or 1.45%, to end at 4,497.70 points, while the Nasdaq Composite .IXIC gained 239.36 points, or 1.74%, to 13,943.37. The Dow Jones Industrial Average .DJI rose 294.97 points, or 0.85%, to 34,854.95.
The yield on the 10-year Treasury note US10YT=RR eased to 4.11%, while that on the two-year note US2YT=RR fell back below 5% after hovering around that level for the past few sessions.
Tesla TSLA.O rallied, even after documents showed a U.S. regulator sent a special order to the electric vehicle maker asking questions about changes to the driver monitoring system for its Autopilot software.
AlphabetGOOGL.O received a boost from a swath of fresh artificial-intelligence technology and partnerships unveiled by the Google-parent.
The July non-farm payrolls report on Friday will offer investors more clarity about the state of the labor market. Focus will also be on the personal consumption expenditures index, the Fed's preferred inflation gauge, which is due on Thursday.
Lack of hawkish surprises in Fed Chair Jerome Powell's comments at the Jackson Hole symposium last week buoyed stocks on Monday, with the focus now on the upcoming economic data to gauge how long the central bank could keep interest rates elevated.
CatalentCTLT.Njumped after the contract drugmaker reached a settlement with activist investor Elliott Investment Management to conduct a review.
Verizon VZ.N and AT&T T.Ngained after Citi upgraded the telecom companies to "buy" from "neutral".
U.S.-listed shares of PDD Holdings > rallied after the Chinese e-commerce firm beat second-quarter revenue estimates.
(Reporting by Shristi Achar A and Amruta Khandekar in Bengaluru, and by Noel Randewich in Oakland, Calif.; Editing by Shounak Dasgupta and Deepa Babington)
((noel.randewich@tr.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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By Shristi Achar A and Noel Randewich Aug 29 (Reuters) - Wall Street ended sharply higher on Tuesday, lifted by Tesla, Nvidia and other megacap growth stocks after a drop in monthly job openings cemented expectations of a pause in interest rate hikes by the U.S. Federal Reserve. Tesla TSLA.O rallied, even after documents showed a U.S. regulator sent a special order to the electric vehicle maker asking questions about changes to the driver monitoring system for its Autopilot software. Lack of hawkish surprises in Fed Chair Jerome Powell's comments at the Jackson Hole symposium last week buoyed stocks on Monday, with the focus now on the upcoming economic data to gauge how long the central bank could keep interest rates elevated.
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The S&P 500 and Nasdaq touched their highest in over two weeks during the session after the Labor Department's Job Openings and Labor Turnover Survey (JOLTS) showed the number of job openings stood at 8.827 million in July, falling for the third straight month and signaling easing labor market pressures. Interest rate futures signaled an 87% chance the Fed will keep rates steady at its September meeting and a 54% chance it will keep rates on hold through November, according the CME Group's FedWatch tool. According to preliminary data, the S&P 500 .SPX gained 64.39 points, or 1.45%, to end at 4,497.70 points, while the Nasdaq Composite .IXIC gained 239.36 points, or 1.74%, to 13,943.37.
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By Shristi Achar A and Noel Randewich Aug 29 (Reuters) - Wall Street ended sharply higher on Tuesday, lifted by Tesla, Nvidia and other megacap growth stocks after a drop in monthly job openings cemented expectations of a pause in interest rate hikes by the U.S. Federal Reserve. The S&P 500 and Nasdaq touched their highest in over two weeks during the session after the Labor Department's Job Openings and Labor Turnover Survey (JOLTS) showed the number of job openings stood at 8.827 million in July, falling for the third straight month and signaling easing labor market pressures. Interest rate futures signaled an 87% chance the Fed will keep rates steady at its September meeting and a 54% chance it will keep rates on hold through November, according the CME Group's FedWatch tool.
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By Shristi Achar A and Noel Randewich Aug 29 (Reuters) - Wall Street ended sharply higher on Tuesday, lifted by Tesla, Nvidia and other megacap growth stocks after a drop in monthly job openings cemented expectations of a pause in interest rate hikes by the U.S. Federal Reserve. "Investors are of the mindset that 'You know what, maybe interest rate hikes are indeed behind us. The July non-farm payrolls report on Friday will offer investors more clarity about the state of the labor market.
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14079.0
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2023-08-29 00:00:00 UTC
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Apple to host fall event on Sept 12, analysts expect new iPhones
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AAPL
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https://www.nasdaq.com/articles/apple-to-host-fall-event-on-sept-12-analysts-expect-new-iphones
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nan
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nan
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Adds details on event in paragraph 2
Aug 29 (Reuters) - Apple AAPL.O said on Tuesday it would host its fall event on Sept. 12, setting the stage for what analysts believe will be the unveiling of a new line of iPhones and smartwatches.
The event will be hosted at the Steve Jobs Theater at its headquarters in Cupertino, California, according to invites from the world's most valuable company.
Wall Street analysts have said Apple will try to entice shoppers with a range of new features for its flagship device, as the launch comes against the backdrop of a slump in smartphone demand globally.
Apple posted a 2.4% decline in iPhone sales for its fiscal third quarter - a rare drop for the product that has for years powered the company's growth.
The most expensive variant of the new generation iPhone will have a periscope camera that could improve zoom capacity by 5 times or more, according TF International Securities analyst Ming-Chi Kuo.
The expected watch lineup may feature a new processor based on Apple's A15 Bionic chip, already used in previous iPhone models, and will boost performance, according to a Bloomberg News report.
(Reporting by Chavi Mehta in Bengaluru; Editing by Sriraj Kalluvila)
((Chavi.Mehta@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 on event in paragraph 2 Aug 29 (Reuters) - Apple AAPL.O said on Tuesday it would host its fall event on Sept. 12, setting the stage for what analysts believe will be the unveiling of a new line of iPhones and smartwatches. Wall Street analysts have said Apple will try to entice shoppers with a range of new features for its flagship device, as the launch comes against the backdrop of a slump in smartphone demand globally. The most expensive variant of the new generation iPhone will have a periscope camera that could improve zoom capacity by 5 times or more, according TF International Securities analyst Ming-Chi Kuo.
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Adds details on event in paragraph 2 Aug 29 (Reuters) - Apple AAPL.O said on Tuesday it would host its fall event on Sept. 12, setting the stage for what analysts believe will be the unveiling of a new line of iPhones and smartwatches. The event will be hosted at the Steve Jobs Theater at its headquarters in Cupertino, California, according to invites from the world's most valuable company. (Reporting by Chavi Mehta in Bengaluru; Editing by Sriraj Kalluvila) ((Chavi.Mehta@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 on event in paragraph 2 Aug 29 (Reuters) - Apple AAPL.O said on Tuesday it would host its fall event on Sept. 12, setting the stage for what analysts believe will be the unveiling of a new line of iPhones and smartwatches. The expected watch lineup may feature a new processor based on Apple's A15 Bionic chip, already used in previous iPhone models, and will boost performance, according to a Bloomberg News report. (Reporting by Chavi Mehta in Bengaluru; Editing by Sriraj Kalluvila) ((Chavi.Mehta@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 on event in paragraph 2 Aug 29 (Reuters) - Apple AAPL.O said on Tuesday it would host its fall event on Sept. 12, setting the stage for what analysts believe will be the unveiling of a new line of iPhones and smartwatches. The event will be hosted at the Steve Jobs Theater at its headquarters in Cupertino, California, according to invites from the world's most valuable company. Wall Street analysts have said Apple will try to entice shoppers with a range of new features for its flagship device, as the launch comes against the backdrop of a slump in smartphone demand globally.
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14080.0
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2023-08-29 00:00:00 UTC
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How High Can Nvidia Stock Rally Amid the AI Boom?
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AAPL
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https://www.nasdaq.com/articles/how-high-can-nvidia-stock-rally-amid-the-ai-boom
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nan
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nan
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Artificial Intelligence (AI) has been arguably the most popular and at the same time, profitable investing theme in 2023, and the rally in AI stocks helped the Nasdaq Composite ($NASX) log its best first-half performance in four decades. While not a pure-play AI company like C3.ai (AI), Nvidia (NVDA) is among the biggest beneficiaries of the AI boom, as reflected in its latest earnings report as well as the stock's price movement.
With a YTD gain of over 230%, Nvidia is the best-performing S&P 500 index ($SPX) stock of the year by a fairly wide margin. Meta Platforms (META), which is the second-best-performing S&P stock this year, has rallied just 143% - and while the returns are astonishing, it nonetheless shows just how dramatically Nvidia has outperformed in 2023.
www.barchart.com
Nvidia Shattered Fiscal Q2 Earnings Estimates
Last week, Nvidia released its fiscal Q2 2024 earnings report - which was arguably the most widely followed event of the week, and even overshadowed Fed Chair Jerome Powell’s Jackson Hole speech.
Nvidia reported revenues of $13.51 billion for the quarter, more than double what it reported in the corresponding quarter last year. The metric easily surpassed the $11.22 billion that analysts were expecting, and was even higher than the most optimistic forecasts – and for context, it was almost twice the $7 billion that analysts were anticipating back in May, before the company provided its updated guidance.
The revenue outlook for the current quarter was also quite impressive, as Nvidia expects sales to rise 170% to $16 billion – again, well ahead of the $12.61 billion that analysts expected.
www.barchart.com
Nvidia’s fiscal Q2 earnings per share of $2.70 was also well ahead of the $2.09 that analysts expected, representing yet another spectacular quarterly earnings beat for the chip giant.
NVDA Stock Soared to a Record High After Earnings
After the earnings release, Nvidia stock soared to an all-time high and peaked north of $500. However, the stock could not hold on to that price level, and eventually closed with marginal gains.
This price action might seem quite intriguing, given the company's earnings, guidance, and management's commentary during theearnings callwere all quite reassuring.
How High Can Nvidia Stock Rise?
Wall Street analysts went into overdrive to raise the stock’s target price after the earnings report. Rosenblatt raised its target to a new Street high of $1,100, which implies potential upside of almost 128% over current levels. Analyst Hans Mosemann said in the note, “Nvidia’s epic print and guide two quarters in a row is simply unprecedented and just getting started.” If Mosemann’s prediction comes to fruition, Nvidia’s market cap would surpass $2 trillion – a club that only has Apple (AAPL) and Microsoft (MSFT) as its current members.
Wall Street is overwhelmingly bullish on Nvidia, and none of the 35 analysts following the stock rate it as a Sell. It's quite rare for analysts to be so unanimously optimistic about a company, especially after the stock has risen three-fold in less than eight months.
That said, NVDA's valuation multiples are currently lower than they were heading into its fiscal Q1 2024 earnings release in May - which we know in hindsight sparked a mammoth rally, and soon catapulted Nvidia into the league of $1 trillion companies.
Nvidia’s next-12-months (NTM) price-to-earnings (PE) multiple is currently at 31.4x, which is not only a multi-month low, but similar to that of rival Advanced Micro Devices (AMD). And while it's not strictly comparable, despite falling margins, rising competition, and the electric vehicle (EV) price war, Tesla (TSLA) has an NTM PE multiple of over 61x.
NVDA Stock Forecast: Why the Rally Might Continue
I expect Nvidia stock to rally further from these levels amid the continued AI boom. Nvidia has a presence in multiple emerging and secular growth industries, and apart from generative AI, it is also a play on gaming and autonomous driving. While Nvidia’s Automotive business is pacing at an annual revenue run rate of just above $1 billion, the company believes that it could be a $300 billion market opportunity as autonomous driving gains traction.
Also, the company has an impeccable track record on execution, and has capitalized on emerging opportunities. Long term, the stock has created tremendous investor wealth over the last two decades; in aggregate, Nvidia stock has risen 12,601% in the last 10 years, and 30,831% in the last 20 years.
www.barchart.com
Key Risks Nvidia Investors Should Watch Out For
Meanwhile, even as the stars look well-aligned for Nvidia stock to rise even higher from these levels, it's worthwhile to know about some of the risks that the company faces.
While Nvidia believes that strong demand for its products will temper any business impact even if the U.S. further tightens restrictions on chip exports to China, the mainland’s importance to the company cannot be overstated, as China accounts for over one-fifth of its sales.
On the supply side, Nvidia is over-reliant on Taiwan - which is a risk, again, considering the geopolitical situation. Also, Nvidia might not have an AI dream run forever as competitors like AMD try to catch up, which could also lead to lower prices for the high-end Nvidia chips that are used for applications like generative AI.
While some of these risks might not be fully priced in NVDA stock, I believe the risk-reward nonetheless looks favorable. If you are a growth investor looking for a stock to practically hold for life, Nvidia fits the bill.
On the date of publication, Mohit Oberoi had a position in: NVDA , AAPL , META . 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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Analyst Hans Mosemann said in the note, “Nvidia’s epic print and guide two quarters in a row is simply unprecedented and just getting started.” If Mosemann’s prediction comes to fruition, Nvidia’s market cap would surpass $2 trillion – a club that only has Apple (AAPL) and Microsoft (MSFT) as its current members. On the date of publication, Mohit Oberoi had a position in: NVDA , AAPL , META . That said, NVDA's valuation multiples are currently lower than they were heading into its fiscal Q1 2024 earnings release in May - which we know in hindsight sparked a mammoth rally, and soon catapulted Nvidia into the league of $1 trillion companies.
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Analyst Hans Mosemann said in the note, “Nvidia’s epic print and guide two quarters in a row is simply unprecedented and just getting started.” If Mosemann’s prediction comes to fruition, Nvidia’s market cap would surpass $2 trillion – a club that only has Apple (AAPL) and Microsoft (MSFT) as its current members. On the date of publication, Mohit Oberoi had a position in: NVDA , AAPL , META . Meta Platforms (META), which is the second-best-performing S&P stock this year, has rallied just 143% - and while the returns are astonishing, it nonetheless shows just how dramatically Nvidia has outperformed in 2023. www.barchart.com Nvidia Shattered Fiscal Q2 Earnings Estimates Last week, Nvidia released its fiscal Q2 2024 earnings report - which was arguably the most widely followed event of the week, and even overshadowed Fed Chair Jerome Powell’s Jackson Hole speech.
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Analyst Hans Mosemann said in the note, “Nvidia’s epic print and guide two quarters in a row is simply unprecedented and just getting started.” If Mosemann’s prediction comes to fruition, Nvidia’s market cap would surpass $2 trillion – a club that only has Apple (AAPL) and Microsoft (MSFT) as its current members. On the date of publication, Mohit Oberoi had a position in: NVDA , AAPL , META . While not a pure-play AI company like C3.ai (AI), Nvidia (NVDA) is among the biggest beneficiaries of the AI boom, as reflected in its latest earnings report as well as the stock's price movement.
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Analyst Hans Mosemann said in the note, “Nvidia’s epic print and guide two quarters in a row is simply unprecedented and just getting started.” If Mosemann’s prediction comes to fruition, Nvidia’s market cap would surpass $2 trillion – a club that only has Apple (AAPL) and Microsoft (MSFT) as its current members. On the date of publication, Mohit Oberoi had a position in: NVDA , AAPL , META . While not a pure-play AI company like C3.ai (AI), Nvidia (NVDA) is among the biggest beneficiaries of the AI boom, as reflected in its latest earnings report as well as the stock's price movement.
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14081.0
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2023-08-29 00:00:00 UTC
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Stock Market News for Aug 29, 2023
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AAPL
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https://www.nasdaq.com/articles/stock-market-news-for-aug-29-2023
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nan
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nan
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U.S. stocks ended higher on Monday to start a fresh week as markets tried to bounce back amid a month of losses. Investors also looked forward to the key jobs and inflation report scheduled for release later this week as they tried to digest Fed Chair Jerome Powell’s cautious speech at the Jackson Hole. All three major indexes ended in positive territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) gained 0.6% or 213.08 points to close at 34,559.98 points.
The S&P 500 climbed 0.6% or 27.60 points, to end at 4,433.31 points. Communication services, tech, real estate and industrial stocks were the biggest gainers.
The Technology Select Sector SPDR (XLK) rose 0.8%. The Communication Services Select Sector SPDR (XLC) gained 1.2%. The Industrials Select Sector SPDR (XLI) and the Utilities Select Sector SPDR (XLU) each gained 0.8%. All 11 sectors of the benchmark index ended in positive territory.
The tech-heavy Nasdaq jumped 0.8% or 114.48 points to finish at 13,705.13 points.
The fear-gauge CBOE Volatility Index (VIX) was down 3.83% to 15.08. A total of 8.1 billion shares were traded on Monday, lower than the last 20-session average of 10.8 billion.
Investors Optimistic Ahead of Release of Key Economic Data
Wall Street ended higher on Friday. On Monday, stocks picked up from where they left off after Powell maintained his hawkish stance and said that more interest rate hikes are on their way. However, investors tried to look at the brighter side in Powell’s Jackson Hoel speech as he also said that the economy is still growing at an impressive pace.
This made investors look past Powell’s comments that the inflation still remains elevated and more interest rate hikes can be implemented if required.
Both the Fed and the investors will now be closely watching the key jobs and inflation data scheduled for release later this week. The July personal consumption expenditure (PCE) index, the Fed’s preferred inflation measure, will be released on Thursday, followed by the nonfarm payrolls on Friday.
The July PCE reading and jobs data will decide how the indexes will move in what’s expected to be a week of light trading.
The Nasdaq and S&P 500 are down 4.5% and 3.4% so far for the month, on track to record their worst monthly performance since December.
Treasury Yields Ease
Treasury yields eased on Monday after surging to a record high earlier last week. The 10-year Treasury yield dropped 10 basis points to end the session at 4.210%.
Monday’s rally was driven by tech stocks. Shares of Apple, Inc. (AAPL) and Meta Platforms, Inc. (META) gained 0.9% and 1.7%, respectively. Shares of NVIDIA Corporation (NVDA) rose 0.9%. NVIDIA sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Also, investors’ sentiments got a boost after China’s finance ministry and the stock-market regulator introduced new measures to attract investors to buy stocks. China’s stock-market regulator, on Monday, halved a tax on stock trades and limited sales by big stockholders in companies that haven’t paid enough dividends.
No major economic data was released on Monday.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for 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
Apple Inc. (AAPL) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
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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Shares of Apple, Inc. (AAPL) and Meta Platforms, Inc. (META) gained 0.9% and 1.7%, respectively. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Investors also looked forward to the key jobs and inflation report scheduled for release later this week as they tried to digest Fed Chair Jerome Powell’s cautious speech at the Jackson Hole.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Shares of Apple, Inc. (AAPL) and Meta Platforms, Inc. (META) gained 0.9% and 1.7%, respectively. Treasury Yields Ease Treasury yields eased on Monday after surging to a record high earlier last week.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Shares of Apple, Inc. (AAPL) and Meta Platforms, Inc. (META) gained 0.9% and 1.7%, respectively. U.S. stocks ended higher on Monday to start a fresh week as markets tried to bounce back amid a month of losses.
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Shares of Apple, Inc. (AAPL) and Meta Platforms, Inc. (META) gained 0.9% and 1.7%, respectively. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Investors also looked forward to the key jobs and inflation report scheduled for release later this week as they tried to digest Fed Chair Jerome Powell’s cautious speech at the Jackson Hole.
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14082.0
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2023-08-29 00:00:00 UTC
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Warner Music Group (WMG) Introduces Podcast, Underwater
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AAPL
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https://www.nasdaq.com/articles/warner-music-group-wmg-introduces-podcast-underwater
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nan
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nan
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Warner Music Group’s WMG in-house podcast network, Interval Presents, has introduced its scripted podcast, Underwater. The podcast, a romantic neo-noir thriller, reveals its cast and premise.
Centered around Nico (Jason Derulo) and Ana (Alexandra Shipp) at a luxurious island resort, the series delves deeper into their passionate yet troubled relationship, which is entangled with secrets from Nico's covert mission and Ana's hidden past.
In addition to Jason Derulo and Alexandra Shipp, the lineup features Beau Bridgland, Michael Dearie, Aneesha DuBois, Andrew Frankel, Melissa Greenspan, Alice Hunter, Jeremy Jordan, Josh Keaton, Tara Langella, Jonathan Leon, Donis Leonard Jr., Michael McGlone, Carla Renata, Giancarlo Sabogal, David Shatraw, Andre Sogliuzzo and Cameron J. Wright. This diverse ensemble lends their distinctive voices to the podcast.
The first two episodes of Underwater are set to debut on Oct 31, 2023 and will be accessible across prominent podcast platforms. New episodes will be released weekly on Tuesdays following the launch.
Warner Music Group Corp. Price and Consensus
Warner Music Group Corp. price-consensus-chart | Warner Music Group Corp. Quote
Recent Partnerships to Boost WMG’s Top-Line Growth
Warner Music Group recently entered into some notable partnerships. These joint ventures have led to the launch of 91 North Records and Deflant Records. These are set to boost the company’s top line in the upcoming quarters.
The Zacks Consensus Estimate for third-quarter fiscal 2023 earnings is pegged at 21 cents per share, which has remained unchanged in the last 30 days. The estimate for revenues is pegged at $1.48 billion, indicating year-over-year growth of 3.54%.
Warner Music Canada and Warner Music India have teamed up to establish a collaborative initiative named 91 North Records, which is aimed at providing support to artists hailing from South Asian backgrounds. This novel venture will be overseen by esteemed artist and producer Ikky, who has come onboard as creative director.
Warner Records has formally introduced Defiant Records, a collaborative effort spearheaded by Steve "Steve-O" Carless, who holds the position of president of A&R at Warner Records. This project brings together emerging producer and artist MCVERTT with rappers Bandmanrill and Sha EK, resulting in a groundbreaking fusion of Jersey Club music, New York Drill and Hip-Hop dance.
WMG is facing tough competition from Sony SONY Music, Spotify SPOT and Apple AAPL Music.
Sony has invested a considerable amount to secure ownership of independent record labels, such as AWAL, Som Livre in Brazil, Human Re-Sources, Believe and additionally acquired its remaining shares in The Orchard. This flurry of activity indicates SONY's strong commitment to enhancing artist visibility and exploring diverse avenues to boost revenue generation.
Spotify offers an extensive range of content beyond its music collection, boasting more than 82 million songs. Users can also enjoy podcasts and audiobooks on the platform. In contrast, Apple Music primarily concentrates on music, featuring a vast selection of more than 100 million songs.
Additionally, Apple Music incorporates live broadcast radio stations from various global locations for on-demand listening. However, for audiobooks and podcasts, users need to turn to Apple Books and Apple Podcasts, respectively.
Warner Music Group has shifted its focus from relying solely on celebrity influence and is now strategically targeting various elements of the value chain. The company has made investments in media platforms like HipHopDX, IMGN, Uproxx, and several others. These platforms have the potential to significantly expand WMG’s reach to a global audience of music enthusiasts.
Shares of this Zacks Rank #3 (Hold) company have declined 14.9% year to date against the Zacks Consumer Discretionary sector’s rise of 13.7% in the same period due to its partnership with TikTok for the goal of mutually benefiting WMG's artists and songwriters as well as TikTok's extensive global user community. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for 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
Apple Inc. (AAPL) : Free Stock Analysis Report
Spotify Technology (SPOT) : Free Stock Analysis Report
Warner Music Group Corp. (WMG) : Free Stock Analysis Report
Sony Corporation (SONY) : 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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WMG is facing tough competition from Sony SONY Music, Spotify SPOT and Apple AAPL Music. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Spotify Technology (SPOT) : Free Stock Analysis Report Warner Music Group Corp. (WMG) : Free Stock Analysis Report Sony Corporation (SONY) : Free Stock Analysis Report To read this article on Zacks.com click here. In addition to Jason Derulo and Alexandra Shipp, the lineup features Beau Bridgland, Michael Dearie, Aneesha DuBois, Andrew Frankel, Melissa Greenspan, Alice Hunter, Jeremy Jordan, Josh Keaton, Tara Langella, Jonathan Leon, Donis Leonard Jr., Michael McGlone, Carla Renata, Giancarlo Sabogal, David Shatraw, Andre Sogliuzzo and Cameron J. Wright.
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WMG is facing tough competition from Sony SONY Music, Spotify SPOT and Apple AAPL Music. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Spotify Technology (SPOT) : Free Stock Analysis Report Warner Music Group Corp. (WMG) : Free Stock Analysis Report Sony Corporation (SONY) : Free Stock Analysis Report To read this article on Zacks.com click here. Warner Music Group Corp. Price and Consensus Warner Music Group Corp. price-consensus-chart | Warner Music Group Corp. Quote Recent Partnerships to Boost WMG’s Top-Line Growth Warner Music Group recently entered into some notable partnerships.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Spotify Technology (SPOT) : Free Stock Analysis Report Warner Music Group Corp. (WMG) : Free Stock Analysis Report Sony Corporation (SONY) : Free Stock Analysis Report To read this article on Zacks.com click here. WMG is facing tough competition from Sony SONY Music, Spotify SPOT and Apple AAPL Music. Warner Music Group Corp. Price and Consensus Warner Music Group Corp. price-consensus-chart | Warner Music Group Corp. Quote Recent Partnerships to Boost WMG’s Top-Line Growth Warner Music Group recently entered into some notable partnerships.
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WMG is facing tough competition from Sony SONY Music, Spotify SPOT and Apple AAPL Music. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Spotify Technology (SPOT) : Free Stock Analysis Report Warner Music Group Corp. (WMG) : Free Stock Analysis Report Sony Corporation (SONY) : Free Stock Analysis Report To read this article on Zacks.com click here. The Zacks Consensus Estimate for third-quarter fiscal 2023 earnings is pegged at 21 cents per share, which has remained unchanged in the last 30 days.
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14083.0
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2023-08-29 00:00:00 UTC
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Apple partner Globalstar taps former Qualcomm exec Jacobs as CEO
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AAPL
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https://www.nasdaq.com/articles/apple-partner-globalstar-taps-former-qualcomm-exec-jacobs-as-ceo
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nan
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nan
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Aug 29 (Reuters) - Globalstar GSAT.A on Tuesday named former Qualcomm QCOM.O top boss Paul Jacobs as its CEO, sparking a near 20% surge in the shares of the satellite firm behind Apple's emergency communication services.
Jacobs, 60, is also a board member of IPO-bound chip firm Arm and will replace David Kagan, who is retiring after about 5 years as CEO.
Globalstar also said it had signed a deal with XCOM Labs, a wireless tech startup that Jacobs co-founded and most recently led, for exclusive access to certain key technologies and personnel.
It will pay XCOM licensing fees including the issuance of about 60 million common stock shares valued at around $64 million.
Jacobs served as Qualcomm's CEO for nearly a decade from 2005, steering the chip company into becoming one of the key suppliers of the global smartphone industry. He was nudged out of its board in 2018 after disclosing his intention to pursue a long-shot acquisition of the firm.
Apple AAPL.Opledged $450 million to the development of its emergency SOS infrastructure in November, with the majority of the amount going to Globalstar, but it did not specify which other players would receive the rest.
The deal tethered Globalstar's future to one of the biggest companies in the world in an industry where players have struggled to turn profits in the face of high maintenance costs.
Iridium Comunications IRDM.O partnered with Qualcomm earlier in May to develop emergency SOS messaging for Android users, going head-to-head with Apple.
(Reporting by Arsheeya Bajwa in Bengaluru; Editing by Devika Syamnath)
((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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Apple AAPL.Opledged $450 million to the development of its emergency SOS infrastructure in November, with the majority of the amount going to Globalstar, but it did not specify which other players would receive the rest. Aug 29 (Reuters) - Globalstar GSAT.A on Tuesday named former Qualcomm QCOM.O top boss Paul Jacobs as its CEO, sparking a near 20% surge in the shares of the satellite firm behind Apple's emergency communication services. Globalstar also said it had signed a deal with XCOM Labs, a wireless tech startup that Jacobs co-founded and most recently led, for exclusive access to certain key technologies and personnel.
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Apple AAPL.Opledged $450 million to the development of its emergency SOS infrastructure in November, with the majority of the amount going to Globalstar, but it did not specify which other players would receive the rest. Aug 29 (Reuters) - Globalstar GSAT.A on Tuesday named former Qualcomm QCOM.O top boss Paul Jacobs as its CEO, sparking a near 20% surge in the shares of the satellite firm behind Apple's emergency communication services. Iridium Comunications IRDM.O partnered with Qualcomm earlier in May to develop emergency SOS messaging for Android users, going head-to-head with Apple.
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Apple AAPL.Opledged $450 million to the development of its emergency SOS infrastructure in November, with the majority of the amount going to Globalstar, but it did not specify which other players would receive the rest. Aug 29 (Reuters) - Globalstar GSAT.A on Tuesday named former Qualcomm QCOM.O top boss Paul Jacobs as its CEO, sparking a near 20% surge in the shares of the satellite firm behind Apple's emergency communication services. Globalstar also said it had signed a deal with XCOM Labs, a wireless tech startup that Jacobs co-founded and most recently led, for exclusive access to certain key technologies and personnel.
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Apple AAPL.Opledged $450 million to the development of its emergency SOS infrastructure in November, with the majority of the amount going to Globalstar, but it did not specify which other players would receive the rest. Jacobs, 60, is also a board member of IPO-bound chip firm Arm and will replace David Kagan, who is retiring after about 5 years as CEO. Jacobs served as Qualcomm's CEO for nearly a decade from 2005, steering the chip company into becoming one of the key suppliers of the global smartphone industry.
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14084.0
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2023-08-29 00:00:00 UTC
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Is iShares Paris-Aligned Climate MSCI USA ETF (PABU) a Strong ETF Right Now?
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AAPL
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https://www.nasdaq.com/articles/is-ishares-paris-aligned-climate-msci-usa-etf-pabu-a-strong-etf-right-now-2
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nan
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nan
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Launched on 04/08/2022, the iShares Paris-Aligned Climate MSCI USA ETF (PABU) 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?
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.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
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.
This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.
While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.
Fund Sponsor & Index
The fund is managed by Blackrock, and has been able to amass over $1.48 billion, which makes it one of the larger ETFs in the Style Box - All Cap Blend. Before fees and expenses, this particular fund seeks to match the performance of the MSCI USA CLMT PARIS ALGN BNC EXT SLCT ID.
The MSCI USA Climate Paris Aligned Benchmark Extended Select Index composed of U.S. large & mid-capitalization stocks designed to be compatible with the objectives of the Paris Agreement by following a decarbonization trajectory, reducing exposure to climate-related transition & physical risks & increasing exposure to companies favourably positioned for the transition to a low-carbon economy.
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.
Operating expenses on an annual basis are 0.10% for this ETF, which makes it one of the least expensive products in the space.
The fund has a 12-month trailing dividend yield of 1.06%.
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.
For PABU, it has heaviest allocation in the Information Technology sector --about 32.50% of the portfolio --while Healthcare and Consumer Discretionary round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 9.06% of total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA).
Its top 10 holdings account for approximately 30.02% of PABU's total assets under management.
Performance and Risk
The ETF has added roughly 19.44% and is up about 10.62% so far this year and in the past one year (as of 08/29/2023), respectively. PABU has traded between $38.63 and $50.65 during this last 52-week period.
The fund has a beta of 1.01 and standard deviation of 22.14% for the trailing three-year period. With about 276 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Paris-Aligned Climate MSCI USA ETF is an excellent option for investors seeking to outperform the Style Box - All Cap Blend segment of the market. There are other ETFs in the space which investors could consider as well.
IShares ESG Aware MSCI EAFE ETF (ESGD) tracks MSCI EAFE ESG Focus Index and the iShares ESG Aware MSCI USA ETF (ESGU) tracks MSCI USA ESG Focus Index. IShares ESG Aware MSCI EAFE ETF has $7.21 billion in assets, iShares ESG Aware MSCI USA ETF has $12.61 billion. ESGD has an expense ratio of 0.20% 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 - 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
iShares Paris-Aligned Climate MSCI USA ETF (PABU): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
iShares ESG Aware MSCI EAFE ETF (ESGD): ETF Research Reports
iShares ESG Aware MSCI USA ETF (ESGU): 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 9.06% of total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA). Click to get this free report iShares Paris-Aligned Climate MSCI USA ETF (PABU): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report iShares ESG Aware MSCI EAFE ETF (ESGD): ETF Research Reports iShares ESG Aware MSCI USA ETF (ESGU): ETF Research Reports To read this article on Zacks.com click here. Launched on 04/08/2022, the iShares Paris-Aligned Climate MSCI USA ETF (PABU) 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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Click to get this free report iShares Paris-Aligned Climate MSCI USA ETF (PABU): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report iShares ESG Aware MSCI EAFE ETF (ESGD): ETF Research Reports iShares ESG Aware MSCI USA ETF (ESGU): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 9.06% of total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA). IShares ESG Aware MSCI EAFE ETF (ESGD) tracks MSCI EAFE ESG Focus Index and the iShares ESG Aware MSCI USA ETF (ESGU) tracks MSCI USA ESG Focus Index.
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Click to get this free report iShares Paris-Aligned Climate MSCI USA ETF (PABU): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report iShares ESG Aware MSCI EAFE ETF (ESGD): ETF Research Reports iShares ESG Aware MSCI USA ETF (ESGU): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 9.06% of total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA). IShares ESG Aware MSCI EAFE ETF (ESGD) tracks MSCI EAFE ESG Focus Index and the iShares ESG Aware MSCI USA ETF (ESGU) tracks MSCI USA ESG Focus Index.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 9.06% of total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA). Click to get this free report iShares Paris-Aligned Climate MSCI USA ETF (PABU): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report iShares ESG Aware MSCI EAFE ETF (ESGD): ETF Research Reports iShares ESG Aware MSCI USA ETF (ESGU): ETF Research Reports To read this article on Zacks.com click here. Launched on 04/08/2022, the iShares Paris-Aligned Climate MSCI USA ETF (PABU) 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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14085.0
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2023-08-29 00:00:00 UTC
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7 Stocks to Buy for the Rest of 2023
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AAPL
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https://www.nasdaq.com/articles/7-stocks-to-buy-for-the-rest-of-2023
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The NASDAQ index, which lost one-third of its value last year, has rebounded with vigor in the first half of 2023. It climbed a staggering 32% during the period, channeling the spirit of 1983 when the tech-heavy index shot up 37% in value. Hence, investors are looking to cash in on the uptrend and to wager on the top stocks for 2023.
Yet, the optimism doesn’t end there. According to historical trends and a recent CFRA analysis, the latter half often glows even brighter when the market shines in the first half.
Specifically, the S&P 500 is likely to notch significantly larger gains in the back-end of the year. In the wake of 2022’s challenges, the dominant narrative revolves around the pursuit of efficiency and the transformative power of artificial intelligence.
As investors set their sights on the horizon, optimism reigns supreme in curating their stock picks for 2023.
Oracle (ORCL)
Source: Jer123 / Shutterstock.com
Traditionally renowned for its database management and enterprise resource planning, Oracle (NYSE:ORCL) is now turning heads with its foray in the AI sphere.
This changing focus is reaping dividends, as evidenced by its stellar, robust earnings and growth. The tech behemoth recently posted earnings per share of $1.19 and a commendable revenue bump of 17%, bringing its tally to $13.8 billion in the fiscal fourth quarter.
Notably, its cloud venture, infused with AI strategies, soared to an impressive $4.4 billion, marking a 54% surge year-over-year. With the rapid advancements in the AI domain and
Oracle’s ability to harness its tremendous potential, the trajectory for this tech giant seems unmistakably skyward-bound. It offers an excellent dividend yield of 1.4%, with eight consecutive years of growth.
Netflix (NFLX)
Source: izzuanroslan / Shutterstock.com
Netflix (NASDAQ:NFLX) faced some turbulent waters post-pandemic, marked by daunting comps and aggressive competition.
An unexpected setback occurred when the streaming giant reported its first subscriber loss in a decade in its first quarter last year, with its stock plummeting by a staggering 60% in the following four months.
However, Netflix’s resilience has shone through. Instead of wallowing in defeat, the company leadership took proactive measures.
One particular area of focus was the rampant password-sharing, with nearly 43% of Netflix’s 100 million users sharing accounts. Moreover, Netflix introduced an $8 surcharge for sharing outside immediate households.
There was an 8% jump in Q2 subscriptions, with revenue hitting $8.19 billion with its earnings-per-share at $3.29, surpassing analysts’ predictions.
With a projected third-quarter revenue increase of 7% year-over-year, Netflix seems poised to redefine its bullish narrative. Besides this, NFLX stock is up 40% year-to-date, offering a 12.7% upside from current levels.
Apple (AAPL)
Source: Eric Broder Van Dyke / Shutterstock.com
When it comes to tech powerhouses, Apple (NASDAQ:AAPL) remains a paragon of innovation and excellence. Its unparalleled product suite, combined with the global obsession with the iPhone, continues to position the company at the top in a fiercely competitive market.
The brand’s ability to command premium prices is a testament to its established market dominance, leading to a gusher of cash inflows every quarter.
Investment heavyweights aren’t just watching from the sidelines. Warren Buffett often praises Apple as the shiny centerpiece of his investments.
The company isn’t just stacking up its profits. Since 2012, Apple has funneled more than $500 billion into share buybacks. Just last quarter, it generously returned $24 billion to shareholders.
Apple epitomizes an investor’s utopia with a jaw-dropping $62.5 billion in cash reserves and a growing 0.5% dividend yield for nine consecutive years. Also, Tipranks analysts suggest even brighter horizons with a projected 16.5% rise from its current market standing.
AbbVie (ABBV)
Source: Valeriya Zankovych / Shutterstock.com
Once a segment of Abbott Laboratories, AbbVie (NYSE:ABBV) has faced the challenge of diversifying its revenue streams away from its, especially as its star arthritis drug, Humira.
Though Humira recorded a 25% sales dip following patent expiration, it was still able to notch up $4 billion in sales in its most recent quarter
The company boasts a massive drug pipeline and seeks to broaden Humira’s applications. Some of these include Skyrizi, a plaque psoriasis treatment, and Rinvoq, a remedy for Crohn’s disease.
Both have shown robust sales growth of over 50% in its second quarter, compensating for Humira’s drop in sales. This dynamic shift led to sales that exceeded analysts’ predictions by a sizable $400 million, driven mainly by non-Humira sales, marking a promising transition for the firm.
AbbVie offers an attractive 4% dividend yield with a notable five-year growth rate of 12.3%, further cementing its reputation as a top bet in the healthcare sphere.
Microsoft (MSFT)
Source: Peteri / Shutterstock.com
Microsoft (NASDAQ:MSFT) has been the beacon of robust returns for its investors for years, leveraging its powerful position in PCs, cloud computing, gaming, and more. Reflecting on this prowess, its shares have more than tripled in the last five years.
The tech giant’s recent fiscal fourth-quarter earnings surpassed expectations by a comfortable margin, reporting an earnings-per-share of $2.69 against the estimated $2.55 and a revenue of $56.19 billion, marginally exceeding the forecast of $55.47 billion.
As Microsoft steadily unveils advanced AI solutions, building upon its collaboration with OpenAI, it has solidified its leadership in the AI realm. Complementing this is its thriving cloud business, showcasing a 15% revenue surge in the second quarter.
Also, the expected $68 billion acquisition of Activision Blizzard post a pivotal legal win underlines the firm’s ambitious growth trajectory. Although the current 0.85% dividend yield might seem modest, Microsoft’s formidable cash reserves hint at the potential for a bigger dividend hike in the future.
Meta Platforms (META)
Source: Aleem Zahid Khan / Shutterstock.com
Meta Platforms (NASDAQ:META) stands tall with its diverse application suite, which sees an eye-popping 3.8 billion monthly users. This user engagement underlines the platforms’ sustained appeal.
It will benefit immensely from its growing product base, including Threads, Reels, and the AI-backed Llama 2. These investments will significantly enhance content recommendations and augment user experiences, ultimately turning things up a notch or two as far as its growth rates are concerned.
In leveraging AI for tailored advertising, Meta’s new products, Meta Advantage, and Meta Lattice, offer businesses enhanced ad efficiency and AI-driven messaging, positioning Meta as an invaluable ally.
Despite facing analyst skepticism and dropping sales last year, 2023 marks Meta’s resurgence. Cost-effective strategies and initiatives like open-sourcing Llama 2 signify its commitment to industry-wide innovation.
Meta’s emphasis on the metaverse and the anticipated Quest 3 mixed reality headset highlight its long-term vision, priming the company to pioneer in the intertwining worlds of virtual reality and AI.
Nvidia (NVDA)
Source: Shutterstock
Nvidia (NASDAQ:NVDA) is blazing a trail in the stock market, turning heads with its recent earnings smasher. Reporting an earnings-per-share of $2.45 on revenues of $13.5 billion, the figures effortlessly outshone Wall Street’s expectations of a $2.08 earnings-per-share and $11.2 billion revenue.
Such robust results prompted Wedbush Securities’ analyst Dan Ives to label the earnings as a “historical moment” in the tech realm. And the momentum doesn’t stop there; the company’s shares experienced a brief soaring past the $500 mark post-earnings, cementing its position with an impressive annual return of over 200% for the year.
As a titan in the AI domain, Nvidia is strategically poised to capitalize on the surging demand for its chips. This dominance assures the company’s sustained growth trajectory as Bernstein’s optimistic projection places Nvidia’s AI-driven revenue for the upcoming year between $75 billion to $90 billion.
On the date of publication, Muslim Farooque 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
Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.
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The post 7 Stocks to Buy for the Rest of 2023 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: Eric Broder Van Dyke / Shutterstock.com When it comes to tech powerhouses, Apple (NASDAQ:AAPL) remains a paragon of innovation and excellence. An unexpected setback occurred when the streaming giant reported its first subscriber loss in a decade in its first quarter last year, with its stock plummeting by a staggering 60% in the following four months. These investments will significantly enhance content recommendations and augment user experiences, ultimately turning things up a notch or two as far as its growth rates are concerned.
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Apple (AAPL) Source: Eric Broder Van Dyke / Shutterstock.com When it comes to tech powerhouses, Apple (NASDAQ:AAPL) remains a paragon of innovation and excellence. Meta Platforms (META) Source: Aleem Zahid Khan / Shutterstock.com Meta Platforms (NASDAQ:META) stands tall with its diverse application suite, which sees an eye-popping 3.8 billion monthly users. In leveraging AI for tailored advertising, Meta’s new products, Meta Advantage, and Meta Lattice, offer businesses enhanced ad efficiency and AI-driven messaging, positioning Meta as an invaluable ally.
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Apple (AAPL) Source: Eric Broder Van Dyke / Shutterstock.com When it comes to tech powerhouses, Apple (NASDAQ:AAPL) remains a paragon of innovation and excellence. The tech giant’s recent fiscal fourth-quarter earnings surpassed expectations by a comfortable margin, reporting an earnings-per-share of $2.69 against the estimated $2.55 and a revenue of $56.19 billion, marginally exceeding the forecast of $55.47 billion. Meta Platforms (META) Source: Aleem Zahid Khan / Shutterstock.com Meta Platforms (NASDAQ:META) stands tall with its diverse application suite, which sees an eye-popping 3.8 billion monthly users.
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Apple (AAPL) Source: Eric Broder Van Dyke / Shutterstock.com When it comes to tech powerhouses, Apple (NASDAQ:AAPL) remains a paragon of innovation and excellence. This changing focus is reaping dividends, as evidenced by its stellar, robust earnings and growth. It offers an excellent dividend yield of 1.4%, with eight consecutive years of growth.
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14086.0
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2023-08-29 00:00:00 UTC
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Unusual Put Option Trade in Apple (AAPL) Worth $2,964.00K
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AAPL
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https://www.nasdaq.com/articles/unusual-put-option-trade-in-apple-aapl-worth-%242964.00k
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nan
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nan
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On August 29, 2023 at 10:08:32 ET an unusually large $2,964.00K block of Put contracts in Apple (AAPL) was bought, with a strike price of $170.00 / share, expiring in 143 day(s) (on January 19, 2024). Fintel tracks all large options trades, and the premium spent on this trade was 2.48 sigmas above the mean, placing it in the 99.27th percentile of all recent large trades made in AAPL options.
This trade was first picked up on Fintel's real time Options Flow tool, where unusual option trades are highlighted.
What is the Fund Sentiment?
There are 6405 funds or institutions reporting positions in Apple. This is an increase of 43 owner(s) or 0.68% in the last quarter. Average portfolio weight of all funds dedicated to AAPL is 4.10%, an increase of 9.18%. Total shares owned by institutions increased in the last three months by 0.36% to 9,946,080K shares.
The put/call ratio of AAPL is 0.87, indicating a bullish outlook.
For more in-depth coverage of Apple, view the free, crowd-sourced company research report on Finpedia.
Analyst Price Forecast Suggests 10.27% Upside
As of August 1, 2023, the average one-year price target for Apple is 198.70. The forecasts range from a low of 141.40 to a high of $252.00. The average price target represents an increase of 10.27% from its latest reported closing price of 180.19.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Apple is 413,641MM, an increase of 7.74%. The projected annual non-GAAP EPS is 6.36.
What are Other Shareholders Doing?
Berkshire Hathaway holds 915,560K shares representing 5.86% ownership of the company. No change in the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 465,990K shares representing 2.98% ownership of the company. In it's prior filing, the firm reported owning 465,280K shares, representing an increase of 0.15%. The firm increased its portfolio allocation in AAPL by 8.69% over the last quarter.
VFINX - Vanguard 500 Index Fund Investor Shares holds 352,024K shares representing 2.25% ownership of the company. In it's prior filing, the firm reported owning 347,041K shares, representing an increase of 1.42%. The firm increased its portfolio allocation in AAPL by 8.07% over the last quarter.
Geode Capital Management holds 291,538K shares representing 1.86% ownership of the company. In it's prior filing, the firm reported owning 285,171K shares, representing an increase of 2.18%. The firm increased its portfolio allocation in AAPL by 8.78% over the last quarter.
Price T Rowe Associates holds 226,651K shares representing 1.45% ownership of the company. In it's prior filing, the firm reported owning 234,017K shares, representing a decrease of 3.25%. The firm increased its portfolio allocation in AAPL by 139.25% over the last quarter.
Apple Background Information
(This description is provided by the company.)
Apple Inc. is an American multinational technology company headquartered in Cupertino, California, that designs, develops, and sells consumer electronics, computer software, and online services. It is considered one of the Big Five companies in the U.S. information technology industry, along with Amazon, Google, Microsoft, and Facebook. Its hardware products include the iPhone smartphone, the iPad tablet computer, the Mac personal computer, the iPod portable media player, the Apple Watch smartwatch, the Apple TV digital media player, the AirPods wireless earbuds, the AirPods Max headphones, and the HomePod smart speaker line. Apple's software includes iOS, iPadOS, macOS, watchOS, and tvOS operating systems, the iTunes media player, the Safari web browser, the Shazam music identifier, and the iLife and iWork creativity and productivity suites, as well as professional applications like Final Cut Pro X, Logic Pro, and Xcode. Its online services include the iTunes Store, the iOS App Store, Mac App Store, Apple Arcade, Apple Music, Apple TV+, iMessage, and iCloud. Other services include Apple Store, Genius Bar, AppleCare, Apple Pay, Apple Pay Cash, and Apple Card. Apple was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne in April 1976 to develop and sell Wozniak's Apple I personal computer, though Wayne sold his share back within 12 days. It was incorporated as Apple Computer, Inc., in January 1977, and sales of its computers, including the Apple I and Apple II, grew quickly.
Additional reading:
Apple Inc. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In millions, except number of shares which are reflected in thousands and per share amounts)
APPLE INC. Officer’s Certificate
Press release issued by Apple Inc. on May 4, 2023.
Fintel is one of the most comprehensive investing research platforms available to individual investors, traders, financial advisors, and small hedge funds.
Our data covers the world, and includes fundamentals, analyst reports, ownership data and fund sentiment, options sentiment, insider trading, options flow, unusual options trades, and much more. Additionally, our exclusive stock picks are powered by advanced, backtested quantitative models for improved profits.
Click to Learn More
This story originally appeared on Fintel.
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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On August 29, 2023 at 10:08:32 ET an unusually large $2,964.00K block of Put contracts in Apple (AAPL) was bought, with a strike price of $170.00 / share, expiring in 143 day(s) (on January 19, 2024). Fintel tracks all large options trades, and the premium spent on this trade was 2.48 sigmas above the mean, placing it in the 99.27th percentile of all recent large trades made in AAPL options. Average portfolio weight of all funds dedicated to AAPL is 4.10%, an increase of 9.18%.
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On August 29, 2023 at 10:08:32 ET an unusually large $2,964.00K block of Put contracts in Apple (AAPL) was bought, with a strike price of $170.00 / share, expiring in 143 day(s) (on January 19, 2024). Fintel tracks all large options trades, and the premium spent on this trade was 2.48 sigmas above the mean, placing it in the 99.27th percentile of all recent large trades made in AAPL options. Average portfolio weight of all funds dedicated to AAPL is 4.10%, an increase of 9.18%.
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On August 29, 2023 at 10:08:32 ET an unusually large $2,964.00K block of Put contracts in Apple (AAPL) was bought, with a strike price of $170.00 / share, expiring in 143 day(s) (on January 19, 2024). Fintel tracks all large options trades, and the premium spent on this trade was 2.48 sigmas above the mean, placing it in the 99.27th percentile of all recent large trades made in AAPL options. Average portfolio weight of all funds dedicated to AAPL is 4.10%, an increase of 9.18%.
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On August 29, 2023 at 10:08:32 ET an unusually large $2,964.00K block of Put contracts in Apple (AAPL) was bought, with a strike price of $170.00 / share, expiring in 143 day(s) (on January 19, 2024). Fintel tracks all large options trades, and the premium spent on this trade was 2.48 sigmas above the mean, placing it in the 99.27th percentile of all recent large trades made in AAPL options. Average portfolio weight of all funds dedicated to AAPL is 4.10%, an increase of 9.18%.
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14087.0
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2023-08-28 00:00:00 UTC
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What's Going On With Apple Stock?
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AAPL
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https://www.nasdaq.com/articles/whats-going-on-with-apple-stock-0
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nan
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nan
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Fool.com contributor Parkev Tatevosian reviews the latest quarterly update from Apple (NASDAQ: AAPL) to offer insights to everyday investors.
*Stock prices used were the afternoon prices of Aug. 25, 2023. The video was published on Aug. 27, 2023.
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Parkev Tatevosian, CFA has positions in Apple. The Motley Fool has positions in and recommends Apple. The Motley Fool has a disclosure policy.
Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his 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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Fool.com contributor Parkev Tatevosian reviews the latest quarterly update from Apple (NASDAQ: AAPL) to offer insights to everyday investors. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services.
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Fool.com contributor Parkev Tatevosian reviews the latest quarterly update from Apple (NASDAQ: AAPL) to offer insights to everyday investors. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. See the 10 stocks *Stock Advisor returns as of August 21, 2023 Parkev Tatevosian, CFA has positions in Apple.
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Fool.com contributor Parkev Tatevosian reviews the latest quarterly update from Apple (NASDAQ: AAPL) to offer insights to everyday investors. 10 stocks we like better than Apple When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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Fool.com contributor Parkev Tatevosian reviews the latest quarterly update from Apple (NASDAQ: AAPL) to offer insights to everyday investors. See the 10 stocks *Stock Advisor returns as of August 21, 2023 Parkev Tatevosian, CFA has positions in Apple. The Motley Fool has positions in and recommends Apple.
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14088.0
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2023-08-28 00:00:00 UTC
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New Zealand plans digital services tax for multinationals from 2025
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AAPL
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https://www.nasdaq.com/articles/new-zealand-plans-digital-services-tax-for-multinationals-from-2025
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nan
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nan
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Aug 29 (Reuters) - New Zealand said on Tuesday it would introduce legislation for a digital services tax on large multinational companies from 2025 after talks for a global rollout did not reach consensus at the Organization for Economic Cooperation and Development (OECD).
More than 140 countries were supposed to start implementing next year a 2021 deal overhauling decades-old rules on how governments tax multinationals that are widely considered to be outdated as digital giants like Apple AAPL.O or Amazon AMZN.O can book profits in low-tax countries.
But the proposal was pushed back last month after countries with digital services taxes, with the exception of Canada, agreed to hold off applying them for at least another year.
"While we will keep working to support a multilateral agreement, we are not prepared to simply wait around until then to find out," Finance Minister Grant Robertson said in a statement.
"We don't think it's fair that everyday Kiwis pay their fair share of taxes but there's no tax liability for large multinationals."
The proposed digital services tax will target multinational businesses that earn income from New Zealand users of social media platforms, search engines, and online marketplaces.
The tax would be payable by businesses that make over 750 million euros ($812 million) a year from global digital services and over NZ$3.5 million a year from digital services provided to New Zealand users. It is expected to generate NZ$222 million over four years.
The tax would be applied at 3% on gross taxable New Zealand digital services revenue, a similar rate adopted by comparable countries like France and the United Kingdom.
The bill will be introduced to the parliament on Thursday.
($1 = 0.9232 euros)
(Reporting by Renju Jose in Sydney; Editing by Lincoln Feast)
((renju.jose@thomsonreuters.com; +61 29171 7126; Reuters Messaging: @renjujose))
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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More than 140 countries were supposed to start implementing next year a 2021 deal overhauling decades-old rules on how governments tax multinationals that are widely considered to be outdated as digital giants like Apple AAPL.O or Amazon AMZN.O can book profits in low-tax countries. Aug 29 (Reuters) - New Zealand said on Tuesday it would introduce legislation for a digital services tax on large multinational companies from 2025 after talks for a global rollout did not reach consensus at the Organization for Economic Cooperation and Development (OECD). The proposed digital services tax will target multinational businesses that earn income from New Zealand users of social media platforms, search engines, and online marketplaces.
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More than 140 countries were supposed to start implementing next year a 2021 deal overhauling decades-old rules on how governments tax multinationals that are widely considered to be outdated as digital giants like Apple AAPL.O or Amazon AMZN.O can book profits in low-tax countries. Aug 29 (Reuters) - New Zealand said on Tuesday it would introduce legislation for a digital services tax on large multinational companies from 2025 after talks for a global rollout did not reach consensus at the Organization for Economic Cooperation and Development (OECD). The proposed digital services tax will target multinational businesses that earn income from New Zealand users of social media platforms, search engines, and online marketplaces.
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More than 140 countries were supposed to start implementing next year a 2021 deal overhauling decades-old rules on how governments tax multinationals that are widely considered to be outdated as digital giants like Apple AAPL.O or Amazon AMZN.O can book profits in low-tax countries. Aug 29 (Reuters) - New Zealand said on Tuesday it would introduce legislation for a digital services tax on large multinational companies from 2025 after talks for a global rollout did not reach consensus at the Organization for Economic Cooperation and Development (OECD). The tax would be payable by businesses that make over 750 million euros ($812 million) a year from global digital services and over NZ$3.5 million a year from digital services provided to New Zealand users.
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More than 140 countries were supposed to start implementing next year a 2021 deal overhauling decades-old rules on how governments tax multinationals that are widely considered to be outdated as digital giants like Apple AAPL.O or Amazon AMZN.O can book profits in low-tax countries. Aug 29 (Reuters) - New Zealand said on Tuesday it would introduce legislation for a digital services tax on large multinational companies from 2025 after talks for a global rollout did not reach consensus at the Organization for Economic Cooperation and Development (OECD). The tax would be payable by businesses that make over 750 million euros ($812 million) a year from global digital services and over NZ$3.5 million a year from digital services provided to New Zealand users.
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14089.0
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2023-08-28 00:00:00 UTC
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Nvidia's forward PE ratio tumbles to lowest in eight months
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AAPL
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https://www.nasdaq.com/articles/nvidias-forward-pe-ratio-tumbles-to-lowest-in-eight-months
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nan
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nan
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By Noel Randewich
Aug 28 (Reuters) - Increased analysts' estimates since Nvidia's NVDA.Ostrong quarterly report last week have left the world's most valuable chipmaker trading at its lowest forward earnings multiple in eight months.
Nvidia's stock added nearly 2% to $468 on Monday, leaving it down almost 1% since last Wednesday, when the Santa Clara, California company far exceeded expectations with its quarterly revenue forecast as an artificial-intelligence boom fueled demand for its chips.
At that price, Nvidia shares are trading at the equivalent of around 33 times expected earnings over the next 12 months, according to Refinitiv data. That forward PE compares to over 46 a week ago, and it is now at its lowest since December 2022.
Nvidia's stock has more than tripled this year amid soaring demand for its top-of-the-line processors used to power generative AI technologies that can read and write in human-like ways.
Benchmark Research analyst Cody Acree has a "buy" rating on Nvidia but pointed to the company's reliance on Taiwanese chip foundry TSMC 2330.TW, which also serves Apple AAPL.O and other big customers, as a factor that could keep Nvidia from selling as many of its high-end chips as it would like.
"It's not just demand, but what they can actually deliver," Acree said.
In its report last week, Nvidia, with a stock market value of $1.14 trillion, also said it would buy back $25 billion of its shares, suggesting chief executive Jensen Huang views them as undervalued, even after gaining 220% year to date.
Following its report, analysts on average expect Nvidia's revenue for the fiscal year ending in January 2024 to reach $53 billion, nearly double the previous year, according to Refinitiv data. The company's net income is seen quintupling to over $22 billion in the same fiscal year before reaching $35 billion the following year.
Nvidia's forward earnings valuation plunges https://tmsnrt.rs/45OxC9g
(Reporting by Noel Randewich; editing by Diane Craft)
((noel.randewich@tr.com; Twitter: @randewich;))
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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Benchmark Research analyst Cody Acree has a "buy" rating on Nvidia but pointed to the company's reliance on Taiwanese chip foundry TSMC 2330.TW, which also serves Apple AAPL.O and other big customers, as a factor that could keep Nvidia from selling as many of its high-end chips as it would like. By Noel Randewich Aug 28 (Reuters) - Increased analysts' estimates since Nvidia's NVDA.Ostrong quarterly report last week have left the world's most valuable chipmaker trading at its lowest forward earnings multiple in eight months. Nvidia's stock added nearly 2% to $468 on Monday, leaving it down almost 1% since last Wednesday, when the Santa Clara, California company far exceeded expectations with its quarterly revenue forecast as an artificial-intelligence boom fueled demand for its chips.
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Benchmark Research analyst Cody Acree has a "buy" rating on Nvidia but pointed to the company's reliance on Taiwanese chip foundry TSMC 2330.TW, which also serves Apple AAPL.O and other big customers, as a factor that could keep Nvidia from selling as many of its high-end chips as it would like. By Noel Randewich Aug 28 (Reuters) - Increased analysts' estimates since Nvidia's NVDA.Ostrong quarterly report last week have left the world's most valuable chipmaker trading at its lowest forward earnings multiple in eight months. Following its report, analysts on average expect Nvidia's revenue for the fiscal year ending in January 2024 to reach $53 billion, nearly double the previous year, according to Refinitiv data.
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Benchmark Research analyst Cody Acree has a "buy" rating on Nvidia but pointed to the company's reliance on Taiwanese chip foundry TSMC 2330.TW, which also serves Apple AAPL.O and other big customers, as a factor that could keep Nvidia from selling as many of its high-end chips as it would like. By Noel Randewich Aug 28 (Reuters) - Increased analysts' estimates since Nvidia's NVDA.Ostrong quarterly report last week have left the world's most valuable chipmaker trading at its lowest forward earnings multiple in eight months. Following its report, analysts on average expect Nvidia's revenue for the fiscal year ending in January 2024 to reach $53 billion, nearly double the previous year, according to Refinitiv data.
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Benchmark Research analyst Cody Acree has a "buy" rating on Nvidia but pointed to the company's reliance on Taiwanese chip foundry TSMC 2330.TW, which also serves Apple AAPL.O and other big customers, as a factor that could keep Nvidia from selling as many of its high-end chips as it would like. By Noel Randewich Aug 28 (Reuters) - Increased analysts' estimates since Nvidia's NVDA.Ostrong quarterly report last week have left the world's most valuable chipmaker trading at its lowest forward earnings multiple in eight months. Nvidia's stock added nearly 2% to $468 on Monday, leaving it down almost 1% since last Wednesday, when the Santa Clara, California company far exceeded expectations with its quarterly revenue forecast as an artificial-intelligence boom fueled demand for its chips.
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14090.0
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2023-08-28 00:00:00 UTC
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Hedge fund exposure to 7 biggest tech stocks at record high, Goldman Sachs says
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AAPL
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https://www.nasdaq.com/articles/hedge-fund-exposure-to-7-biggest-tech-stocks-at-record-high-goldman-sachs-says
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nan
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nan
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By Nell Mackenzie and Carolina Mandl
LONDON/NEW YORK, Aug 28 (Reuters) - Hedge funds hold record exposure to the seven biggest tech stocks by market capitalization, according to data released on Friday by Goldman Sachs, in a week Nvidia NVDA.Ohit an all-time high after beating revenue expectations.
The largest seven U.S. stocks collectively now make up about 20% of the total net market value held by hedge funds tracked by Goldman Sachs. They have also been instrumental in the gains in the broader U.S. equity market this year.
Microsoft MSFT.O , Apple AAPL.O, Alphabet GOOGL.O, Meta META.O, Amazon AMZN.O, Nvidia and Tesla TSLA.O saw the biggest percent of single stock exposure as of Aug. 24, meaning the positions were trades in the individual stocks, not just in the indices like the Nasdaq.
"Hedge funds continue to embrace mega cap tech and the artificial intelligence theme," Goldman Sachs' prime brokerage said in a note sent to a restricted group of clients and obtained by Reuters. The investment bank did not immediately comment on the note.
The companies did not immediately respond to a request for comment.
Last week, Nvidia reported record quarterly revenue fueled by strong demand for its artificial intelligence (AI)-focused chips and said the AI boom has legs.
"We essentially have had two markets: the 'Magnificent Seven' and all the rest of equities. Hedge funds will be forced into capturing these returns regardless of analysis," said Jim Neumann, chief investment officer of Sussex Partners.
"It is momentum on steroids," he said, adding that stock-picking hedge funds might find it harder to outperform investments in other asset classes, like fixed income.
Goldman Sachs, which runs one of Wall Street's largest prime brokerages, is able to track trends in flows.
Shares in these companies have all risen over 35% this year, with performances ranging from Apple's 38% rise to Nvidia's 211% jump.
"The primary objective of hedge funds is to generate returns, rather than to be imaginative for the sake of diversification," said Bruno Schneller, managing director at INVICO Asset Management.
Given the stocks' outperformance, it makes sense to have invested in them, Schneller said.
Daniel Loeb, the CEO of Third Point - which had around $12.6 billion in assets under management at the end of February - said earlier in August that his top five winners in 2023 had included Microsoft, Amazon and Alphabet.
HFR's long/short index, which tracks the performance of stock-trading hedge funds that buy and sell stocks, was up about 7% for the year through July, according to the data company's website.
'Magnificent seven' stock price performance https://tmsnrt.rs/47IKNdI
(Reporting by Nell Mackenzie and Carolina Mandl; Editing by Sharon Singleton and Paul Simao)
((Nell.Mackenzie@thomsonreuters.com; https://twitter.com/nellmooney;))
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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Microsoft MSFT.O , Apple AAPL.O, Alphabet GOOGL.O, Meta META.O, Amazon AMZN.O, Nvidia and Tesla TSLA.O saw the biggest percent of single stock exposure as of Aug. 24, meaning the positions were trades in the individual stocks, not just in the indices like the Nasdaq. By Nell Mackenzie and Carolina Mandl LONDON/NEW YORK, Aug 28 (Reuters) - Hedge funds hold record exposure to the seven biggest tech stocks by market capitalization, according to data released on Friday by Goldman Sachs, in a week Nvidia NVDA.Ohit an all-time high after beating revenue expectations. "Hedge funds continue to embrace mega cap tech and the artificial intelligence theme," Goldman Sachs' prime brokerage said in a note sent to a restricted group of clients and obtained by Reuters.
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Microsoft MSFT.O , Apple AAPL.O, Alphabet GOOGL.O, Meta META.O, Amazon AMZN.O, Nvidia and Tesla TSLA.O saw the biggest percent of single stock exposure as of Aug. 24, meaning the positions were trades in the individual stocks, not just in the indices like the Nasdaq. By Nell Mackenzie and Carolina Mandl LONDON/NEW YORK, Aug 28 (Reuters) - Hedge funds hold record exposure to the seven biggest tech stocks by market capitalization, according to data released on Friday by Goldman Sachs, in a week Nvidia NVDA.Ohit an all-time high after beating revenue expectations. "Hedge funds continue to embrace mega cap tech and the artificial intelligence theme," Goldman Sachs' prime brokerage said in a note sent to a restricted group of clients and obtained by Reuters.
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Microsoft MSFT.O , Apple AAPL.O, Alphabet GOOGL.O, Meta META.O, Amazon AMZN.O, Nvidia and Tesla TSLA.O saw the biggest percent of single stock exposure as of Aug. 24, meaning the positions were trades in the individual stocks, not just in the indices like the Nasdaq. By Nell Mackenzie and Carolina Mandl LONDON/NEW YORK, Aug 28 (Reuters) - Hedge funds hold record exposure to the seven biggest tech stocks by market capitalization, according to data released on Friday by Goldman Sachs, in a week Nvidia NVDA.Ohit an all-time high after beating revenue expectations. The largest seven U.S. stocks collectively now make up about 20% of the total net market value held by hedge funds tracked by Goldman Sachs.
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Microsoft MSFT.O , Apple AAPL.O, Alphabet GOOGL.O, Meta META.O, Amazon AMZN.O, Nvidia and Tesla TSLA.O saw the biggest percent of single stock exposure as of Aug. 24, meaning the positions were trades in the individual stocks, not just in the indices like the Nasdaq. By Nell Mackenzie and Carolina Mandl LONDON/NEW YORK, Aug 28 (Reuters) - Hedge funds hold record exposure to the seven biggest tech stocks by market capitalization, according to data released on Friday by Goldman Sachs, in a week Nvidia NVDA.Ohit an all-time high after beating revenue expectations. The largest seven U.S. stocks collectively now make up about 20% of the total net market value held by hedge funds tracked by Goldman Sachs.
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14091.0
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2023-08-28 00:00:00 UTC
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Hedge funds' exposure to Magnificent Seven tech stocks at record - Goldman Sachs
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AAPL
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https://www.nasdaq.com/articles/hedge-funds-exposure-to-magnificent-seven-tech-stocks-at-record-goldman-sachs
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nan
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nan
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By Nell Mackenzie and Carolina Mandl
LONDON/NEW YORK, Aug 28 (Reuters) - Hedge funds hold record exposure to the seven biggest tech stocks by market capitalization, according to data released on Friday by Goldman Sachs, as managers resumed buying into the sector this month.
The largest seven U.S. stocks collectively now make up about 20% of the total net market value held by hedge funds tracked by Goldman Sachs. They have also been instrumental in the gains in the broader U.S. equity market this year.
Microsoft MSFT.O , Apple AAPL.O, Alphabet GOOGL.O, Meta META.O, Amazon AMZN.O, Nvidia NVDA.O and Tesla TSLA.O saw the biggest percent of single stock exposure as of August 24, meaning the positions were trades in the individual stocks, not just in the indices like the Nasdaq.
The companies did not immediately respond to a request for comment.
"We essentially have had two markets: the 'Magnificent Seven' and all the rest of equities. Hedge funds will be forced into capturing these returns regardless of analysis," Jim Neumann, chief investment officer of Sussex Partners, said.
"It is momentum on steroids," he said, adding that stock-picking hedge funds might find it harder to outperform investments in other asset classes, like fixed income.
Goldman Sachs, which runs one of Wall Street's largest prime brokerages, is able to track trends in flows.
Shares in these companies have all risen over 35% this year with performances ranging from Apple's positive 38% to Nvidia's 211%.
"The primary objective of hedge funds is to generate returns, rather than to be imaginative for the sake of diversification," said Bruno Schneller, a managing director at INVICO Asset Management.
Given the stocks' outperformance, it makes sense to have invested in them, Schneller said.
Daniel Loeb, who runs Third Point - which had around $12.6 billion in assets under management at end-February - said earlier in August that his top five winners in 2023 had included Microsoft, Amazon and Alphabet.
HFR's long/short index, which tracks the performance of stock-trading hedge funds that buy and sell stocks, was up about 7% for the year through July, according to the data company's website.
'Magnificent seven' stock price performance https://tmsnrt.rs/47IKNdI
(Reporting by Nell Mackenzie and Carolina Mandl; Editing by Sharon Singleton)
((Nell.Mackenzie@thomsonreuters.com; https://twitter.com/nellmooney;))
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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Microsoft MSFT.O , Apple AAPL.O, Alphabet GOOGL.O, Meta META.O, Amazon AMZN.O, Nvidia NVDA.O and Tesla TSLA.O saw the biggest percent of single stock exposure as of August 24, meaning the positions were trades in the individual stocks, not just in the indices like the Nasdaq. By Nell Mackenzie and Carolina Mandl LONDON/NEW YORK, Aug 28 (Reuters) - Hedge funds hold record exposure to the seven biggest tech stocks by market capitalization, according to data released on Friday by Goldman Sachs, as managers resumed buying into the sector this month. Daniel Loeb, who runs Third Point - which had around $12.6 billion in assets under management at end-February - said earlier in August that his top five winners in 2023 had included Microsoft, Amazon and Alphabet.
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Microsoft MSFT.O , Apple AAPL.O, Alphabet GOOGL.O, Meta META.O, Amazon AMZN.O, Nvidia NVDA.O and Tesla TSLA.O saw the biggest percent of single stock exposure as of August 24, meaning the positions were trades in the individual stocks, not just in the indices like the Nasdaq. By Nell Mackenzie and Carolina Mandl LONDON/NEW YORK, Aug 28 (Reuters) - Hedge funds hold record exposure to the seven biggest tech stocks by market capitalization, according to data released on Friday by Goldman Sachs, as managers resumed buying into the sector this month. 'Magnificent seven' stock price performance https://tmsnrt.rs/47IKNdI (Reporting by Nell Mackenzie and Carolina Mandl; Editing by Sharon Singleton) ((Nell.Mackenzie@thomsonreuters.com; https://twitter.com/nellmooney;)) 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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Microsoft MSFT.O , Apple AAPL.O, Alphabet GOOGL.O, Meta META.O, Amazon AMZN.O, Nvidia NVDA.O and Tesla TSLA.O saw the biggest percent of single stock exposure as of August 24, meaning the positions were trades in the individual stocks, not just in the indices like the Nasdaq. By Nell Mackenzie and Carolina Mandl LONDON/NEW YORK, Aug 28 (Reuters) - Hedge funds hold record exposure to the seven biggest tech stocks by market capitalization, according to data released on Friday by Goldman Sachs, as managers resumed buying into the sector this month. The largest seven U.S. stocks collectively now make up about 20% of the total net market value held by hedge funds tracked by Goldman Sachs.
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Microsoft MSFT.O , Apple AAPL.O, Alphabet GOOGL.O, Meta META.O, Amazon AMZN.O, Nvidia NVDA.O and Tesla TSLA.O saw the biggest percent of single stock exposure as of August 24, meaning the positions were trades in the individual stocks, not just in the indices like the Nasdaq. By Nell Mackenzie and Carolina Mandl LONDON/NEW YORK, Aug 28 (Reuters) - Hedge funds hold record exposure to the seven biggest tech stocks by market capitalization, according to data released on Friday by Goldman Sachs, as managers resumed buying into the sector this month. The largest seven U.S. stocks collectively now make up about 20% of the total net market value held by hedge funds tracked by Goldman Sachs.
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14092.0
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2023-08-28 00:00:00 UTC
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What to Expect from Apple (AAPL) Stock In September as iPhone Launch Approaches
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AAPL
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https://www.nasdaq.com/articles/what-to-expect-from-apple-aapl-stock-in-september-as-iphone-launch-approaches
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nan
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nan
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S
eptember is coming, which means many things to many people. It is the month when young people fully get back to school, and when football returns in America. But for tech investors, September is most notable because it is the month when Apple (AAPL) typically unveils new iPhone models. Over time, as interest in these events has increased, speculation about what to expect from them has grown, but so has the accuracy of the forecasts. It is hard to keep a secret among thousands when millions want to know it. Thus, articles such as this one at macrumors.com, offer detailed analysis of what changes to expect when the new version of the world’s most successful electronic device are released, and they are rarely far off the mark.
You might think that with such usually accurate predictions out there for weeks, if not months, before the announcement of any actual changes, the impact of an upcoming launch on Apple stock would be minimal, but that hasn’t been the case. AAPL’s Septembers have followed a pattern for a while, with the stock dropping throughout the month, then bouncing back strongly shortly after. Sometimes, of course, there are strong macro factors that have distorted that pattern, but it has been pretty reliable, nonetheless.
The above is a five year chart for AAPL, with each candle representing a month. As you can see, AAPL has declined in four out of the last five Septembers. Sometimes that weakness has run into early October, but before too long, it has always bounced back.
There are logical reasons for that. Whenever a launch approaches, initial excitement about the new product almost always gives way to skepticism. Analysts and traders start to ask themselves how just a few tweaks can possibly prompt a surge in sales, and worries about pricing start to take over the collective narrative. That often carries through to the actual launch. Then, once the phone is released and rumors and anecdotal evidence about sales numbers emerge, it becomes clear that the new phone is selling well and the stock bounces back.
The thing is, small tweaks to design and features have been Apple’s business model for decades. The brilliance of the company is that despite that, they have been able to consistently create demand for updated models. In part that is because of great marketing, but it is also a function of the way most people buy their phones. They don’t pay for the phones up front, but rather, they pay over a couple of years, then update once those payments are over. They always have a payment, and in that context, adding a few bucks a month to their bill doesn’t seem like a bad deal for even small updates and slightly improved features.
Those features aren’t usually “innovation” as such. They tend to be Apple’s version of others’ innovations. This time around, for example, there are strong rumors that the new iPhone will include a telescopic camera lens for better zoom and close-up photography, something that Samsung first offered a decade ago in the Galaxy S4 Zoom. That was an unwieldy phone/camera hybrid that wasn’t massively successful, and Samsung has refined the technology and styling over the last ten years. Despite that, Samsung never caught up with Apple in terms of popularity. Now, the technology is at the point where Apple feels they can offer a sleeker, better version. If history is our guide, the ten-year old idea will be greeted as “revolutionary” when Apple uses it, and will become the next visible must-have iPhone feature.
I am not being critical here. Copying but improving the technology of others is a tried and tested business model, and it is something that Apple has done better than most for twenty years or so. The performance of the stock over that time is what matters to me, and that is impressive. The S&P 500 has gained just over 400% over the last two decades, while AAPL is up close to 45,000% in the dame period. Say what you like about Apple artificially creating demand or using technology developed by others, those numbers speak for themselves.
So, when AAPL starts to fall as the launch approaches, as history suggests it will, know that it is a buying opportunity, not a warning. It is what has typically happened at this time of year. The cynics have been telling us for years that “This time is different. This time will be the beginning of the end for AAPL!” They have been wrong up until now, and they will be again.
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 for tech investors, September is most notable because it is the month when Apple (AAPL) typically unveils new iPhone models. AAPL’s Septembers have followed a pattern for a while, with the stock dropping throughout the month, then bouncing back strongly shortly after. The above is a five year chart for AAPL, with each candle representing a month.
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But for tech investors, September is most notable because it is the month when Apple (AAPL) typically unveils new iPhone models. AAPL’s Septembers have followed a pattern for a while, with the stock dropping throughout the month, then bouncing back strongly shortly after. The above is a five year chart for AAPL, with each candle representing a month.
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But for tech investors, September is most notable because it is the month when Apple (AAPL) typically unveils new iPhone models. AAPL’s Septembers have followed a pattern for a while, with the stock dropping throughout the month, then bouncing back strongly shortly after. The above is a five year chart for AAPL, with each candle representing a month.
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AAPL’s Septembers have followed a pattern for a while, with the stock dropping throughout the month, then bouncing back strongly shortly after. So, when AAPL starts to fall as the launch approaches, as history suggests it will, know that it is a buying opportunity, not a warning. But for tech investors, September is most notable because it is the month when Apple (AAPL) typically unveils new iPhone models.
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14093.0
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2023-08-28 00:00:00 UTC
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US STOCKS-Wall St gains on boost from megacaps ahead of key economic data
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-gains-on-boost-from-megacaps-ahead-of-key-economic-data
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nan
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nan
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By Shristi Achar A and Amruta Khandekar
Aug 28 (Reuters) - Wall Street's main indexes rose on Monday as a pullback in Treasury yields boosted megacap growth stocks ahead of key inflation and jobs data this week that will offer more clues on the Federal Reserve's interest rate path.
Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O and Tesla TSLA.O rose between 0.5% and 1.3%, as the yield on the U.S. 10-year Treasury note US10YT=RR slipped to 4.20%.
The S&P 500 communication services .SPLRCL and technology .SPLRCT sectors led gains among the 11 major S&P sub-indexes, rising 1.2% and 0.8% respectively.
Stocks ended a volatile session higher on Friday after Fed Chair Jerome Powell at the Jackson Hole meet said the U.S. central bank may need to raise interest rates further.
Focus now shifts to a report on the personal consumption expenditures price index, the Fed's preferred inflation gauge, which is set to be released on Thursday and the non-farm payrolls data due on Friday.
"Investors were looking for perhaps more guidance or hints about the Fed's next step and unfortunately there were no new thoughts or strategies disclosed," Peter Andersen, founder of Andersen Capital Management, said.
"The market will probably start off maybe slightly positive, but in a holding pattern until investors can digest these important data releases this week."
The readings are set to come at a time when surprising strength in the U.S. economy drove up expectations of interest rates staying higher for longer.
Traders' bets of a pause in tightening by the Fed were unchanged for the September meeting, while bets of a 25-basis point interest rate hike in November rose to nearly 50% from 38% a week earlier, according to CME Group's FedWatch tool.
China halved the stamp duty on stock trading effective Monday to boost its ailing market, sending U.S.-listed shares of Chinese companies, including PDD Holdings PDD.O, JD.com JD.O, Baidu BIDU.O and Alibaba BABA.N up between 1.0% and 2.8%.
U.S. Commerce Secretary Gina Raimondo said she raised concerns about a number of U.S. business issues including Intel INTC.O and Micron MU.O with Chinese Commerce Minister Wang Wentao. Micron and Intel's shares gained 3.4% and 1.2%, respectively.
At 9:36 a.m. ET, the Dow Jones Industrial Average .DJI was up 262.87 points, or 0.77%, at 34,609.77, the S&P 500 .SPX was up 30.97 points, or 0.70%, at 4,436.68, and the Nasdaq Composite .IXIC was up 124.67 points, or 0.92%, at 13,715.31.
3MMMM.N jumped 6.4% on a report that the conglomerate has tentatively agreed to pay more than $5.5 billion to resolve over 300,000 lawsuits claiming it sold the U.S. military defective combat earplugs.
U.S.-listed shares of Chinese EV maker Xpeng XPEV.N gained 2.3% after the company said it would buy Didi's electric car development business in a deal worth up to $744 million.
The U.S. Federal Trade Commission suspended its challenge of Amgen's AMGN.O $27.8 billion purchase of Horizon Therapeutics HZNP.O. Horizon's shares rose 5.8%.
Advancing issues outnumbered decliners for a 5.47-to-1 ratio on the NYSE and a 2.95-to-1 ratio on the Nasdaq.
The S&P index recorded one new 52-week high and no new low, while the Nasdaq recorded 19 new highs and 40 new lows.
(Reporting by Shristi Achar A and Amruta Khandekar in Bengaluru; Editing by Shounak Dasgupta)
((Shristi.AcharA@thomsonreuters.com; Amruta.Khandekar@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, Microsoft MSFT.O, Alphabet GOOGL.O and Tesla TSLA.O rose between 0.5% and 1.3%, as the yield on the U.S. 10-year Treasury note US10YT=RR slipped to 4.20%. By Shristi Achar A and Amruta Khandekar Aug 28 (Reuters) - Wall Street's main indexes rose on Monday as a pullback in Treasury yields boosted megacap growth stocks ahead of key inflation and jobs data this week that will offer more clues on the Federal Reserve's interest rate path. Focus now shifts to a report on the personal consumption expenditures price index, the Fed's preferred inflation gauge, which is set to be released on Thursday and the non-farm payrolls data due on Friday.
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Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O and Tesla TSLA.O rose between 0.5% and 1.3%, as the yield on the U.S. 10-year Treasury note US10YT=RR slipped to 4.20%. China halved the stamp duty on stock trading effective Monday to boost its ailing market, sending U.S.-listed shares of Chinese companies, including PDD Holdings PDD.O, JD.com JD.O, Baidu BIDU.O and Alibaba BABA.N up between 1.0% and 2.8%. U.S. Commerce Secretary Gina Raimondo said she raised concerns about a number of U.S. business issues including Intel INTC.O and Micron MU.O with Chinese Commerce Minister Wang Wentao.
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Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O and Tesla TSLA.O rose between 0.5% and 1.3%, as the yield on the U.S. 10-year Treasury note US10YT=RR slipped to 4.20%. By Shristi Achar A and Amruta Khandekar Aug 28 (Reuters) - Wall Street's main indexes rose on Monday as a pullback in Treasury yields boosted megacap growth stocks ahead of key inflation and jobs data this week that will offer more clues on the Federal Reserve's interest rate path. Traders' bets of a pause in tightening by the Fed were unchanged for the September meeting, while bets of a 25-basis point interest rate hike in November rose to nearly 50% from 38% a week earlier, according to CME Group's FedWatch tool.
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Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O and Tesla TSLA.O rose between 0.5% and 1.3%, as the yield on the U.S. 10-year Treasury note US10YT=RR slipped to 4.20%. By Shristi Achar A and Amruta Khandekar Aug 28 (Reuters) - Wall Street's main indexes rose on Monday as a pullback in Treasury yields boosted megacap growth stocks ahead of key inflation and jobs data this week that will offer more clues on the Federal Reserve's interest rate path. Micron and Intel's shares gained 3.4% and 1.2%, respectively.
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14094.0
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2023-08-28 00:00:00 UTC
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US STOCKS-Wall Street ends higher as investors await US inflation, jobs data
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-ends-higher-as-investors-await-us-inflation-jobs-data-0
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nan
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nan
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By Shristi Achar A and Noel Randewich
Aug 28 (Reuters) - Wall Street ended higher on Monday, with gains in 3M and Goldman Sachs ahead of key inflation and jobs data this week that will offer more clues on the Federal Reserve's interest rate path.
All three major stock indexes rose as investors digested last Friday's comments from Fed Chair Jerome Powell that the U.S. central bank may need to raise interest rates further to ensure inflation is contained.
Focus now shifts to a report on the personal consumption expenditures price index, the Fed's preferred inflation gauge, to be released on Thursday, and non-farm payrolls data due on Friday.
"The fact that Powell didn't come out and say anything particularly hawkish or particularly unnerving to markets - that has proven to make this a bit of a risk-on day, even if he wasn't outright dovish either," said Ross Mayfield, Investment Strategy Analyst at Baird.
Nvidia NVDA.O rose 1.78% and was the most traded stock in the S&P 500, with $31 billion worth of the chipmaker's shares exchanged.
Other megacaps also gained, with Apple AAPL.O and Alphabet GOOGL.O both adding 0.9%.
3MMMM.N jumped 5.2% after a report that the conglomerate has tentatively agreed to pay more than $5.5 billion to resolve over 300,000 lawsuits claiming it sold the U.S. military defective combat earplugs.
Goldman SachsGS.N gained 1.8% after the lender struck a deal to sell an investment advisory business to wealth management firm Creative Planning LLC.
The S&P 500 climbed 0.63% to end the session at 4,433.31 points.
The Nasdaq gained 0.84% to 13,705.13 points, while Dow Jones Industrial Average rose 0.62% to 34,559.98 points.
U.S.-listed shares of Chinese companies including JD.com JD.O, Baidu BIDU.O and Alibaba BABA.Nrallied over 2% after China halved the stamp duty on stock trading effective Monday to boost its ailing market.
U.S. Commerce Secretary Gina Raimondo discussed concerns about restrictions on American businesses including Intel INTC.O and Micron MU.O with Chinese Commerce Minister Wang Wentao. Micron's stock rose 2.5% and Intel added 1.1%.
The U.S. Federal Trade Commission suspended its challenge of Amgen's AMGN.O $27.8 billion purchase of Horizon Therapeutics HZNP.O. Horizon's shares 5.2%.
Advancing issues outnumbered falling ones within the S&P 500 .AD.SPX by a 5.5-to-one ratio.
The S&P 500 posted 10 new highs and 2 new lows; the Nasdaq recorded 54 new highs and 162 new lows.
Volume on U.S. exchanges was relatively light, with 8.1 billion shares traded, compared to an average of 10.8 billion shares over the previous 20 sessions.
(Reporting by Shristi Achar A and Amruta Khandekar in Bengaluru, and by Noel Randewich in Oakland, Calif.; Editing by Shounak Dasgupta and David Gregorio)
((noel.randewich@tr.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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Other megacaps also gained, with Apple AAPL.O and Alphabet GOOGL.O both adding 0.9%. By Shristi Achar A and Noel Randewich Aug 28 (Reuters) - Wall Street ended higher on Monday, with gains in 3M and Goldman Sachs ahead of key inflation and jobs data this week that will offer more clues on the Federal Reserve's interest rate path. All three major stock indexes rose as investors digested last Friday's comments from Fed Chair Jerome Powell that the U.S. central bank may need to raise interest rates further to ensure inflation is contained.
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Other megacaps also gained, with Apple AAPL.O and Alphabet GOOGL.O both adding 0.9%. U.S. Commerce Secretary Gina Raimondo discussed concerns about restrictions on American businesses including Intel INTC.O and Micron MU.O with Chinese Commerce Minister Wang Wentao. Micron's stock rose 2.5% and Intel added 1.1%.
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Other megacaps also gained, with Apple AAPL.O and Alphabet GOOGL.O both adding 0.9%. By Shristi Achar A and Noel Randewich Aug 28 (Reuters) - Wall Street ended higher on Monday, with gains in 3M and Goldman Sachs ahead of key inflation and jobs data this week that will offer more clues on the Federal Reserve's interest rate path. Nvidia NVDA.O rose 1.78% and was the most traded stock in the S&P 500, with $31 billion worth of the chipmaker's shares exchanged.
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Other megacaps also gained, with Apple AAPL.O and Alphabet GOOGL.O both adding 0.9%. Nvidia NVDA.O rose 1.78% and was the most traded stock in the S&P 500, with $31 billion worth of the chipmaker's shares exchanged. Micron's stock rose 2.5% and Intel added 1.1%.
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14095.0
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2023-08-28 00:00:00 UTC
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Blue Chip Stocks Push Forward – Watch TCHP
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AAPL
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https://www.nasdaq.com/articles/blue-chip-stocks-push-forward-watch-tchp
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nan
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nan
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Nvidia (NVDA) has done it again. The firm beat expectations and forecasts after an already delirious 2023 that had set “sky-high” expectations. NVDA had already risen more than 200% prior to the earnings news, now up 212%. The price itself has reached $456 after starting the year at less than $150. The earnings surprise comes as markets have worried whether blue chip stocks can keep pushing ahead. The NVDA news may remind investors that these big names still have merit through the right ETF.
Yes, some market watchers are suggesting the time could be now for a shift away from frothier stocks towards value, for example. There is some reason to consider that narrative, certainly. The lagging impact of rising rates has not yet fully hit the real economy via credit markets. At the same time, while some firms have put up appealing earnings like NVDA, with Apple (AAPL), for example, disappointing. What’s more, further rate hikes aren’t out of the question even later on this Fall.
See more: “Exploit Market Inefficiencies for Long Term Gains”
That’s where an ETF like the T. Rowe Price Blue Chip Growth ETF (TCHP) comes in. The actively managed blue chip stocks strategy still wants to invest in those big names that have contributed so much to the market this year. However, it sets itself apart by leaning on its active management.
Its managers focus on firms with strong fundamentals, experienced management, and dividend growth. While that may sometimes produce an overweight towards information technology, the ETF doesn’t just invest in blue chip stocks based on their names. It considers each from a fundamentals-based perspective. That’s helped TCHP stand out as one of the top $100 million-plus AUM active ETFs YTD.
Charging 57 basis points (bps), which is competitively priced relative to other actively managed funds, TCHP recently hit its three-year ETF milestone. The blue chip ETF could be an interesting option for investors wanting to trust, but verify, the big, successful names so far this year.
For more news, information, and analysis, visit the Active ETF 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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At the same time, while some firms have put up appealing earnings like NVDA, with Apple (AAPL), for example, disappointing. The actively managed blue chip stocks strategy still wants to invest in those big names that have contributed so much to the market this year. Charging 57 basis points (bps), which is competitively priced relative to other actively managed funds, TCHP recently hit its three-year ETF milestone.
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At the same time, while some firms have put up appealing earnings like NVDA, with Apple (AAPL), for example, disappointing. See more: “Exploit Market Inefficiencies for Long Term Gains” That’s where an ETF like the T. Rowe Price Blue Chip Growth ETF (TCHP) comes in. The actively managed blue chip stocks strategy still wants to invest in those big names that have contributed so much to the market this year.
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At the same time, while some firms have put up appealing earnings like NVDA, with Apple (AAPL), for example, disappointing. See more: “Exploit Market Inefficiencies for Long Term Gains” That’s where an ETF like the T. Rowe Price Blue Chip Growth ETF (TCHP) comes in. The actively managed blue chip stocks strategy still wants to invest in those big names that have contributed so much to the market this year.
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At the same time, while some firms have put up appealing earnings like NVDA, with Apple (AAPL), for example, disappointing. See more: “Exploit Market Inefficiencies for Long Term Gains” That’s where an ETF like the T. Rowe Price Blue Chip Growth ETF (TCHP) comes in. The actively managed blue chip stocks strategy still wants to invest in those big names that have contributed so much to the market this year.
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14096.0
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2023-08-28 00:00:00 UTC
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Should Strive 500 ETF (STRV) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-strive-500-etf-strv-be-on-your-investing-radar-0
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nan
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nan
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The Strive 500 ETF (STRV) was launched on 09/15/2022, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Blend segment of the US equity market.
The fund is sponsored by Strive Etfs. It has amassed assets over $253.17 million, making it one of the average sized 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. Overall, they are usually a stable option, with less risk and more sure-fire cash flows 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
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 0.05%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 0.92%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, 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 28.20% of the portfolio. Healthcare and Financials round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 7.41% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN).
The top 10 holdings account for about 21.92% of total assets under management.
Performance and Risk
STRV seeks to match the performance of the SOLACTIVE GBS UNITED STATES 500 INDEX before fees and expenses. The Solactive GBS United States 500 Index is a float-adjusted, capitalization weighted index consisting of equity securities of the 500 largest companies in the U.S. stock market.
The ETF has added roughly 16.64% so far. In the past 52-week period, it has traded between $22.74 and $29.31.
With about 505 holdings, it effectively diversifies company-specific risk.
Alternatives
Strive 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, STRV is a good 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 $345.12 billion in assets, SPDR S&P 500 ETF has $404.50 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.
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Strive 500 ETF (STRV): ETF Research Reports
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
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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 7.41% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report Strive 500 ETF (STRV): 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. The Strive 500 ETF (STRV) was launched on 09/15/2022, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Blend segment of the US equity market.
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Click to get this free report Strive 500 ETF (STRV): 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 7.41% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Why Large Cap Blend Large cap companies typically have a market capitalization above $10 billion.
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Click to get this free report Strive 500 ETF (STRV): 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 7.41% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Alternatives Strive 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.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 7.41% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report Strive 500 ETF (STRV): 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. The Strive 500 ETF (STRV) was launched on 09/15/2022, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Blend segment of the US equity market.
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14097.0
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2023-08-28 00:00:00 UTC
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Want to Get Rich? 3 Game-Changing Growth Stocks to Buy Right Now
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AAPL
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https://www.nasdaq.com/articles/want-to-get-rich-3-game-changing-growth-stocks-to-buy-right-now
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Growth stocks continue to drive both the stock market and investors’ portfolios. Game-changing growth stocks to buy that have multi-year catalysts to drive their earnings and share price steadily higher are rare and hard to find. But when an investor is lucky enough to buy such a stock, it is advisable to hold on and ride it to great heights.
Consider that a $1,000 investment made in Apple (NASDAQ:AAPL) back in 2007 when the iPhone launched would be worth nearly $55,000 today. That is a return on capital of about 5,400%, and you can see the huge impact growth stocks can have for smart and patient investors. Consider also that this year’s 30% gain in the Nasdaq Index has been driven by fewer than 10 growth stocks. Want to get rich? Here are three growth stocks to buy right now.
Nvidia (NVDA)
Source: Michael Vi / Shutterstock.com
We’ll start with the elephant in the room. That would be microchip and semiconductor designer Nvidia (NASDAQ:NVDA). Going into the company’s second-quarter print, expectations could not have been higher. News headlines proclaimed that this year’s stock market rally depended on Nvidia beating Wall Street forecasts. Mission accomplished! Nvidia crushed analyst expectations and issued bullish guidance that topped even the most aggressive outlooks for the company’s future sales and profits.
As investors held their breath, Nvidia reported EPS of $2.70 versus $2.09 that was expected. Revenue in Q2 amounted to $13.51 billion, double the $6.7 billion recorded a year earlier and ahead of the $11.22 billion anticipated on Wall Street. The company also reported that its margins increased to 71.2% during Q2. Perhaps most impactful, Nvidia raised its forward guidance for the third quarter, saying it expects revenue of $16 billion, which is higher than the $12.61 billion previous forecast.
The higher guidance suggests that Nvidia’s sales in Q3 will grow 170% from a year earlier. Almost all of the growth and rosy outlook is due to skyrocketing demand for the company’s artificial intelligence microchips. To say that Nvidia is among the growth stocks to buy right now is an understatement. Year to date, NVDA stock has more than tripled, with more upside ahead.
Eli Lilly (LLY)
Source: shutterstock.com/Michael Vi
Hot on the heels of Nvidia is prescription drug maker Eli Lilly (NYSE:LLY). The pharmaceutical company’s stock is up 50% so far in 2023. LLY stock hit an all-time high after the company reported that its Q2 profit rose 85% from a year earlier, bolstered by surging sales of its diabetes drug Mounjaro, which is being reviewed by the U.S. Food and Drug Administration for use as a weight loss treatment.
The positive Q2 print included revenue of $8.31 billion, up 28% from the same quarter of 2022. The company said that sales of Mounjaro amounted to $979.7 million during Q2, up more than 6,000% from sales of $16 million a year earlier. Eli Lilly also lifted its forward guidance, saying it now sees full-year revenue of between $33.4 billion to $33.9 billion.
Earnings guidance was also raised to a range of $9.70 to $9.90 per share for the entire year, up from a previous range of $8.65 to $8.85. LLY stock has trounced the wider pharma sector this year. But despite the big run, analysts see more growth ahead for this stock. The median price target on the stock is nearly 10% above current levels.
Netflix (NFLX)
Source: izzuanroslan / Shutterstock.com
Don’t sleep on Netflix (NASDAQ:NFLX). The company looks to have gotten its house in order, offering a cheaper ad-supported streaming tier and cracking down on password sharing worldwide. The result has been an acceleration of growth that has boosted Netflix’s earnings and subscriber numbers. For Q2, Netflix reported EPS of $3.29, which beat consensus forecasts of $2.86 a share. Revenue in Q2 rose 3% to $8.19 billion, which was a touch lower than analysts’ forecasts.
Most important, Netflix added 5.9 million net new subscribers during the quarter which trounced the 1.9 million that Wall Street had expected. The subscriber additions marked the company’s best second quarter since the depths of the Covid-19 pandemic in 2020. Netflix now has nearly 240 million subscribers worldwide, and the company is viewed as being more insulated from the actor and writer strike in Hollywood than other entertainment companies.
While Netflix’s forward guidance was a little soft for Wall Street’s liking, make no mistake. Over the last 12 months, NFLX stock has risen nearly 80%.
On the date of publication, Joel Baglole held long positions in AAPL, NVDA and LLY. 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 Get Rich? 3 Game-Changing Growth Stocks to Buy Right 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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Consider that a $1,000 investment made in Apple (NASDAQ:AAPL) back in 2007 when the iPhone launched would be worth nearly $55,000 today. On the date of publication, Joel Baglole held long positions in AAPL, NVDA and LLY. Game-changing growth stocks to buy that have multi-year catalysts to drive their earnings and share price steadily higher are rare and hard to find.
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Consider that a $1,000 investment made in Apple (NASDAQ:AAPL) back in 2007 when the iPhone launched would be worth nearly $55,000 today. On the date of publication, Joel Baglole held long positions in AAPL, NVDA and LLY. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Growth stocks continue to drive both the stock market and investors’ portfolios.
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Consider that a $1,000 investment made in Apple (NASDAQ:AAPL) back in 2007 when the iPhone launched would be worth nearly $55,000 today. On the date of publication, Joel Baglole held long positions in AAPL, NVDA and LLY. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Growth stocks continue to drive both the stock market and investors’ portfolios.
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Consider that a $1,000 investment made in Apple (NASDAQ:AAPL) back in 2007 when the iPhone launched would be worth nearly $55,000 today. On the date of publication, Joel Baglole held long positions in AAPL, NVDA and LLY. Here are three growth stocks to buy right now.
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14098.0
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2023-08-28 00:00:00 UTC
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AAPL, META, and TSLA Stocks: What’s Ahead After August Correction?
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AAPL
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https://www.nasdaq.com/articles/aapl-meta-and-tsla-stocks%3A-whats-ahead-after-august-correction
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nan
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nan
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After a strong rally in the first seven months of 2023, shares of Apple (NASDAQ:AAPL), Meta Platforms (NASDAQ:META), and Tesla (NASDAQ:TSLA) cooled a bit in August. Apple stock fell about 9% month-to-date, while Meta and Tesla stocks decreased by 10.4% and 10.9%, respectively, during the same period. Despite the pullback, analysts are optimistic about Meta and Apple stock. However, analysts remain sidelined on Tesla stock.
Against this backdrop, let’s delve into these mega-cap stocks.
What is the Apple Stock Forecast?
The recent weakness in Apple stock followed its third-quarter financial results. Although its earnings came ahead of the Street’s forecast, the decrease in iPhone, iPad, and Mac sales irked investors. The solid momentum in its Services revenue and a growing installed base provide a solid platform for long-term growth, notwithstanding the possibility that macro uncertainty may continue to pose challenges.
Further, Citi analyst Atif Malik sees the launch of the iPhone 15 as a catalyst for Apple stock. The analyst reiterated a Buy on AAPL stock on August 16. In addition, his price target of $240 implies 34.37% upside potential from current levels.
Overall, Wall Street is cautiously optimistic about Apple stock. It has received 22 Buy and eight Hold recommendations for a Moderate Buy consensus rating. At the same time, analysts’ average price target of $208.13 implies 16.53% upside potential from current levels.
Is Meta Stock Expected to Rise?
While there are no company-specific reasons for the recent pullback, profit booking after the solid rally in Meta stock may be to blame. Despite the current decline, Meta stock is still up about 137% year-to-date. Nonetheless, analysts see a significant upside in Meta stock from current levels.
The company’s focus on cost reduction and improving its advertising backdrop keeps analysts bullish on Meta stock. On August 21, Wedbush analyst Scott Devitt initiated coverage of Meta stock with a Buy and a price target of $350, implying 22.59% upside potential.
The analyst expects Meta to gain from the recovery in digital advertising, which will drive its revenue and earnings. Moreover, improving efficiency will cushion its margins.
With 40 out of 42 analysts recommending a Buy on Meta stock, it sports a Strong Buy consensus rating. Analysts’ average 12-month price target of $377.27 shows 32.14% upside potential.
Is Tesla Stock Expected to Rise?
Tesla stock has made a significant recovery so far this year. However, the pressure on margins due to continued price reductions has led to a pullback in its stock. Tesla CEO Elon Musk is pushing for volumes and sacrificing margins in the short term amid growing competition. Further, the company has rolled out cheaper versions of its Model S and Model X.
Analysts remain on the sidelines given the near-term concerns around margins and competition.
It has received 11 Buys, 13 Holds, and five Sell recommendations for a Hold consensus rating. Further, the average TSLA stock price target of $254.21 implies a slight upside potential 6.55% from current levels.
The Bottom Line
Apple, Meta, and Tesla stocks are undoubtedly solid long-term picks. Nevertheless, analysts favor Meta over AAPL and TSLA at their current levels and see significant upside potential.
Disclosure
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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After a strong rally in the first seven months of 2023, shares of Apple (NASDAQ:AAPL), Meta Platforms (NASDAQ:META), and Tesla (NASDAQ:TSLA) cooled a bit in August. The analyst reiterated a Buy on AAPL stock on August 16. Nevertheless, analysts favor Meta over AAPL and TSLA at their current levels and see significant upside potential.
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After a strong rally in the first seven months of 2023, shares of Apple (NASDAQ:AAPL), Meta Platforms (NASDAQ:META), and Tesla (NASDAQ:TSLA) cooled a bit in August. The analyst reiterated a Buy on AAPL stock on August 16. Nevertheless, analysts favor Meta over AAPL and TSLA at their current levels and see significant upside potential.
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After a strong rally in the first seven months of 2023, shares of Apple (NASDAQ:AAPL), Meta Platforms (NASDAQ:META), and Tesla (NASDAQ:TSLA) cooled a bit in August. The analyst reiterated a Buy on AAPL stock on August 16. Nevertheless, analysts favor Meta over AAPL and TSLA at their current levels and see significant upside potential.
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Nevertheless, analysts favor Meta over AAPL and TSLA at their current levels and see significant upside potential. After a strong rally in the first seven months of 2023, shares of Apple (NASDAQ:AAPL), Meta Platforms (NASDAQ:META), and Tesla (NASDAQ:TSLA) cooled a bit in August. The analyst reiterated a Buy on AAPL stock on August 16.
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14099.0
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2023-08-28 00:00:00 UTC
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3 No-Brainer Stocks That Genius Investors Are Scooping Up Now
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AAPL
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https://www.nasdaq.com/articles/3-no-brainer-stocks-that-genius-investors-are-scooping-up-now
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nan
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nan
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Many retail investors like to follow and imitate the actions of those whom they consider genius investors. Well-known stock pickers like Warren Buffett and Cathie Wood have developed considerable followings, and, rightly or wrongly, investors will sometimes buy stocks because investors they admire own them.
But those geniuses also pursue differing philosophies, a factor that explains why Buffett and Wood, for example, tend to pick different stocks from each other. Although an individual stock may not fit with every investor's philosophy, investors are likely to beat the averages with stocks such as Apple (NASDAQ: AAPL), Amazon (NASDAQ: AMZN), and MercadoLibre (NASDAQ: MELI). Let's find out a bit more about these three no-brainer stocks.
1. Apple
Apple is the largest investment in Buffett's Berkshire Hathaway portfolio, and it should come as no surprise that it is popular with smart money investors.
This popularity is no accident. The maker of the iPhone developed an ecosystem of software, hardware, and services that draws customers to the iPad, Mac computers, and its other popular tech products. That ecosystem dramatically expanded in recent years, adding iCloud, Apple Pay, Apple Music, Apple TV, and other offerings. Those apps make up Apple Services, the segment that has become the fastest-growing part of the company.
Moreover, with nearly $178 billion in liquidity, it offers investors one of the most stable balance sheets in existence. And with the company generating $80 billion in free cash flow in the first nine months of its fiscal 2023 (a period that ended July 1), that stability is not in any danger.
Admittedly, its price-to-earnings ratio of 30 is not cheap. But after the stock lost about one-fourth of its value in 2022, it's up by about 37% year to date in 2023. And as long as its primary businesses continue to drive growth, the stock should continue marching higher over time.
2. Amazon
The perspectives of consumers and investors continue to diverge with regard to Amazon. Consumers know it for e-commerce and its popular Amazon Prime service. But to investors such as Buffett, such offerings are the public face of a company making its most significant gains in areas such as Amazon Web Services (AWS), its cloud computing arm.
In the first six months of 2023, AWS accounted for 84% of the company's operating income. And while AWS's net sales grew by 14% yearly in the first half of the year, businesses within its e-commerce segments made more significant gains. Digital advertising, third-party selling services, and subscriptions grew at faster rates.
Additionally, Amazon amassed $70 billion in liquidity. Indeed, slumping sales in past quarters turned free cash flow negative, but thanks to free cash flow gains made in Q2, it now claims almost $8 billion in free cash flow over the last 12 months.
Furthermore, the stock has returned more than 58% since the beginning of the year, mainly due to AI-driven optimism. Even though that increase raised its price-to-earnings ratio to 107, that multiple compares well with its historical averages. This should keep the investing geniuses in Amazon, even if the public does not fully appreciate the non-consumer-facing parts of the business.
3. MercadoLibre
The success of e-commerce-oriented conglomerates also boosted a company that many call the "Amazon of Latin America." MercadoLibre was a first mover in bringing e-commerce to the region.
Moreover, it successfully turned regional challenges into new revenue streams. Since the nations of Latin America are still more cash-based economies, the company developed fintech capabilities to facilitate online sales. These became the fintech subsidiary Mercado Pago. The company has since formed logistics, advertising, and other businesses that support one another. Such synergies likely attracted interest from Wood's Ark Invest. Two of its exchange-traded funds have positions in MercadoLibre.
The synergies fueled rapid growth that turned its net income positive beginning in 2021. Net income in the first half of 2023 was $463 million, rising 146% from the same period last year.
With that newly profitable status, it has amassed less than $5 billion in liquidity. Additionally, it generated about $2 billion in free cash flow in the first six months of 2023, making it likely this liquidity will grow.
Furthermore, the recent profitability gave it a price-to-earnings ratio of 82. However, given the rapid profit growth, many investors will be willing to overlook that high earnings multiple.
Additionally, the stock has risen by about 46% this year. With that momentum, MercadoLibre will likely continue growing as it further deepens its presence in Latin America.
10 stocks we like better than Apple
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of August 21, 2023
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Will Healy has positions in Berkshire Hathaway and MercadoLibre. The Motley Fool has positions in and recommends Amazon.com, Apple, Berkshire Hathaway, and MercadoLibre. 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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Although an individual stock may not fit with every investor's philosophy, investors are likely to beat the averages with stocks such as Apple (NASDAQ: AAPL), Amazon (NASDAQ: AMZN), and MercadoLibre (NASDAQ: MELI). The maker of the iPhone developed an ecosystem of software, hardware, and services that draws customers to the iPad, Mac computers, and its other popular tech products. And with the company generating $80 billion in free cash flow in the first nine months of its fiscal 2023 (a period that ended July 1), that stability is not in any danger.
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Although an individual stock may not fit with every investor's philosophy, investors are likely to beat the averages with stocks such as Apple (NASDAQ: AAPL), Amazon (NASDAQ: AMZN), and MercadoLibre (NASDAQ: MELI). And with the company generating $80 billion in free cash flow in the first nine months of its fiscal 2023 (a period that ended July 1), that stability is not in any danger. And while AWS's net sales grew by 14% yearly in the first half of the year, businesses within its e-commerce segments made more significant gains.
|
Although an individual stock may not fit with every investor's philosophy, investors are likely to beat the averages with stocks such as Apple (NASDAQ: AAPL), Amazon (NASDAQ: AMZN), and MercadoLibre (NASDAQ: MELI). Well-known stock pickers like Warren Buffett and Cathie Wood have developed considerable followings, and, rightly or wrongly, investors will sometimes buy stocks because investors they admire own them. See the 10 stocks *Stock Advisor returns as of August 21, 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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Although an individual stock may not fit with every investor's philosophy, investors are likely to beat the averages with stocks such as Apple (NASDAQ: AAPL), Amazon (NASDAQ: AMZN), and MercadoLibre (NASDAQ: MELI). And while AWS's net sales grew by 14% yearly in the first half of the year, businesses within its e-commerce segments made more significant gains. The synergies fueled rapid growth that turned its net income positive beginning in 2021.
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