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17400.0
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2023-01-27 00:00:00 UTC
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Zacks Investment Ideas feature highlights: Chevron, Kinder Morgan, Agilent Technologies, Apple and Microsoft
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AAPL
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https://www.nasdaq.com/articles/zacks-investment-ideas-feature-highlights%3A-chevron-kinder-morgan-agilent-technologies
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For Immediate Release
Chicago, IL – January 27, 2023 – Today, Zacks Investment Ideas feature highlights Chevron CVX, Kinder Morgan KMI, Agilent Technologies A, Apple AAPL and Microsoft MSFT.
These 3 Companies Can't Get Enough of Their Own Stock
Stock buybacks, also regularly known as share repurchase programs, are a common strategy we see implemented by companies.
There are several reasons companies elect to buy back their stock; they've decided to utilize excess cash, they want to limit dilution caused by employee stock option programs, or simply because they believe their shares are undervalued.
Three companies –Chevron,Kinder Morgan and Agilent Technologies – have all announced repurchase programs in 2023. Below is a chart illustrating the performance of all three over the last year, with the S&P 500 blended in as a benchmark.
Let's take a closer look at how each one stacks up.
Chevron
Chevron is one of the world's largest publicly traded oil and gas companies, with operations that span almost every corner of the globe. Yesterday, the company announced a sizable $75 billion share repurchase program.
The recent surge in energy prices has benefitted the company in a big way; CVX reported free cash flow of a steep $12.3 billion in its latest quarter, good enough for a 16% sequential uptick and an 84% Y/Y increase.
In addition, the company's dividend is in decent shape, currently yielding 3.2% annually paired with a sustainable payout ratio sitting at 33% of its earnings.
Most importantly, the company is scheduled to release quarterly results tomorrow, January 27th, before the market open. Currently, the Zacks Consensus EPS Estimate of $4.16 suggests a 62% Y/Y increase in earnings.
And our consensus revenue estimate stands firm at $52.3 billion, suggesting an improvement of nearly 9% from the year-ago quarter.
Kinder Morgan
Kinder Morgan is a leading midstream energy infrastructure provider in North America. Earlier in the year, KMI increased its previously authorized $2 billion stock buyback to $3 billion.
An increase in energy prices has helped Kinder Morgan increasingly reward its shareholders; KMI's dividend payout grew nearly 3% over the last year, currently yielding a steep 6% annually.
Impressively, last year marked the fifth consecutive year of increased payouts.
Agilent Technologies
Agilent is an original equipment manufacturer (OEM) of a broad-based portfolio of test and measurement products serving multiple end markets. Currently, the company sports the highly-coveted Zacks Rank #1 (Strong Buy).
On January 9th, Agilent approved a fresh $2 billion share repurchase program.
Agilent has reported strong results as of late, exceeding the Zacks Consensus EPS Estimate by double-digit percentages in back-to-back releases. Just in its latest print, the company posted a 10% EPS beat and reported sales nearly 5% above expectations.
The company does pay a dividend, currently yielding a modest 0.6%. Still, while the yield may be on the lower end of the spectrum, Agilent's 8.6% five-year annualized dividend growth rate helps bridge the gap.
Bottom Line
Buybacks have been common in recent years, with titans such as Apple and Microsoft also regularly joining in on the fun.
Buybacks send a positive message to investors, indicating that the company is confident in its future prospects.
All three companies above – Chevron, Kinder Morgan and Agilent Technologies – have recently announced repurchase programs, with investors cheering on the news.
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Media Contact
Zacks Investment Research
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Chevron Corporation (CVX) : Free Stock Analysis Report
Agilent Technologies, Inc. (A) : Free Stock Analysis Report
Kinder Morgan, Inc. (KMI) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For Immediate Release Chicago, IL – January 27, 2023 – Today, Zacks Investment Ideas feature highlights Chevron CVX, Kinder Morgan KMI, Agilent Technologies A, Apple AAPL and Microsoft MSFT. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Chevron Corporation (CVX) : Free Stock Analysis Report Agilent Technologies, Inc. (A) : Free Stock Analysis Report Kinder Morgan, Inc. (KMI) : Free Stock Analysis Report To read this article on Zacks.com click here. The recent surge in energy prices has benefitted the company in a big way; CVX reported free cash flow of a steep $12.3 billion in its latest quarter, good enough for a 16% sequential uptick and an 84% Y/Y increase.
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For Immediate Release Chicago, IL – January 27, 2023 – Today, Zacks Investment Ideas feature highlights Chevron CVX, Kinder Morgan KMI, Agilent Technologies A, Apple AAPL and Microsoft MSFT. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Chevron Corporation (CVX) : Free Stock Analysis Report Agilent Technologies, Inc. (A) : Free Stock Analysis Report Kinder Morgan, Inc. (KMI) : Free Stock Analysis Report To read this article on Zacks.com click here. All three companies above – Chevron, Kinder Morgan and Agilent Technologies – have recently announced repurchase programs, with investors cheering on the news.
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For Immediate Release Chicago, IL – January 27, 2023 – Today, Zacks Investment Ideas feature highlights Chevron CVX, Kinder Morgan KMI, Agilent Technologies A, Apple AAPL and Microsoft MSFT. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Chevron Corporation (CVX) : Free Stock Analysis Report Agilent Technologies, Inc. (A) : Free Stock Analysis Report Kinder Morgan, Inc. (KMI) : Free Stock Analysis Report To read this article on Zacks.com click here. These 3 Companies Can't Get Enough of Their Own Stock Stock buybacks, also regularly known as share repurchase programs, are a common strategy we see implemented by companies.
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For Immediate Release Chicago, IL – January 27, 2023 – Today, Zacks Investment Ideas feature highlights Chevron CVX, Kinder Morgan KMI, Agilent Technologies A, Apple AAPL and Microsoft MSFT. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Chevron Corporation (CVX) : Free Stock Analysis Report Agilent Technologies, Inc. (A) : Free Stock Analysis Report Kinder Morgan, Inc. (KMI) : Free Stock Analysis Report To read this article on Zacks.com click here. An increase in energy prices has helped Kinder Morgan increasingly reward its shareholders; KMI's dividend payout grew nearly 3% over the last year, currently yielding a steep 6% annually.
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17401.0
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2023-01-27 00:00:00 UTC
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US STOCKS-Wall Street ends higher, notches weekly gains as Fed meeting looms
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-ends-higher-notches-weekly-gains-as-fed-meeting-looms
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nan
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nan
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By Stephen Culp
NEW YORK, Jan 27 (Reuters) - Wall Street gained ground on Friday, marking the end of an rocky week in which economic data and corporate earnings guidance hinted at softening demand but also economic resiliency ahead of next week's Federal Reserve monetary policy meeting.
The S&P and the Nasdaq ended green, while the Dow closed essentially unchanged.
The Commerce Department's hotly anticipated personal consumption expenditures (PCE) report arrived largely in line with consensus, showing softening demand and cooling inflation - which is exactly what the Federal Reserve's restrictive interest rate hikes are intended to accomplish.
Fed Chair Jerome Powell has clearly stated that the central bank's battle against decades-high inflation is far from over, however. Financial markets still believe the central bank will hike the Fed funds target rate by another 25 basis points at the conclusion of next week's policy meeting.
Fourth-quarter earnings season is running on all cylinders, with 143 of the companies in the S&P 500 having reported. Of those, 67.8% have beaten Street expectations, slightly better than the 66% long-term average, but well below the 76% beat rate over the past four quarters, according to Refinitiv.
Analysts now see aggregate S&P 500 earnings falling 2.9% year-on-year, compared with the milder 1.6% annual drop seen on Jan. 1, per Refinitiv.
According to preliminary data, the S&P 500 .SPX gained 9.86 points, or 0.24%, to end at 4,070.29 points, while the Nasdaq Composite .IXIC gained 109.30 points, or 0.95%, to 11,621.71. The Dow Jones Industrial Average .DJI rose 25.18 points, or 0.07%, to 33,974.59.
Shares of Intel Corp INTC.O plunged after the chipmaker provided dismal earnings projections.
Chevron Corp CVX.N posted record 2022 profit, but its fourth quarter earnings fell short of expectations, dragging the stock lower.
Rival payment companies American Express Co AXP.N and Visa Inc V.N both reported consensus-beating results, boosting their shares higher.
Next week, in addition to the Fed meeting and January employment data, a string of high profile earnings reports are on tap, notably from Apple Inc AAPL.O, Amazon.com AMZN.O, Alphabet Inc GOOGL.O and Meta Platforms META.O, among others.
(Reporting by Stephen Culp; Additonal Reporting by Bansari Mayur Kamdar, Johann M Cherian and Shreyashi Sanyal in Bengaluru; Editing by Aurora Ellis)
((stephen.culp@thomsonreuters.com; 646-223-6076;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Next week, in addition to the Fed meeting and January employment data, a string of high profile earnings reports are on tap, notably from Apple Inc AAPL.O, Amazon.com AMZN.O, Alphabet Inc GOOGL.O and Meta Platforms META.O, among others. The Commerce Department's hotly anticipated personal consumption expenditures (PCE) report arrived largely in line with consensus, showing softening demand and cooling inflation - which is exactly what the Federal Reserve's restrictive interest rate hikes are intended to accomplish. Financial markets still believe the central bank will hike the Fed funds target rate by another 25 basis points at the conclusion of next week's policy meeting.
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Next week, in addition to the Fed meeting and January employment data, a string of high profile earnings reports are on tap, notably from Apple Inc AAPL.O, Amazon.com AMZN.O, Alphabet Inc GOOGL.O and Meta Platforms META.O, among others. By Stephen Culp NEW YORK, Jan 27 (Reuters) - Wall Street gained ground on Friday, marking the end of an rocky week in which economic data and corporate earnings guidance hinted at softening demand but also economic resiliency ahead of next week's Federal Reserve monetary policy meeting. Financial markets still believe the central bank will hike the Fed funds target rate by another 25 basis points at the conclusion of next week's policy meeting.
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Next week, in addition to the Fed meeting and January employment data, a string of high profile earnings reports are on tap, notably from Apple Inc AAPL.O, Amazon.com AMZN.O, Alphabet Inc GOOGL.O and Meta Platforms META.O, among others. By Stephen Culp NEW YORK, Jan 27 (Reuters) - Wall Street gained ground on Friday, marking the end of an rocky week in which economic data and corporate earnings guidance hinted at softening demand but also economic resiliency ahead of next week's Federal Reserve monetary policy meeting. According to preliminary data, the S&P 500 .SPX gained 9.86 points, or 0.24%, to end at 4,070.29 points, while the Nasdaq Composite .IXIC gained 109.30 points, or 0.95%, to 11,621.71.
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Next week, in addition to the Fed meeting and January employment data, a string of high profile earnings reports are on tap, notably from Apple Inc AAPL.O, Amazon.com AMZN.O, Alphabet Inc GOOGL.O and Meta Platforms META.O, among others. By Stephen Culp NEW YORK, Jan 27 (Reuters) - Wall Street gained ground on Friday, marking the end of an rocky week in which economic data and corporate earnings guidance hinted at softening demand but also economic resiliency ahead of next week's Federal Reserve monetary policy meeting. Financial markets still believe the central bank will hike the Fed funds target rate by another 25 basis points at the conclusion of next week's policy meeting.
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17402.0
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2023-01-27 00:00:00 UTC
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Should iShares Russell 1000 Growth ETF (IWF) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-ishares-russell-1000-growth-etf-iwf-be-on-your-investing-radar-5
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nan
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Designed to provide broad exposure to the Large Cap Growth segment of the US equity market, the iShares Russell 1000 Growth ETF (IWF) is a passively managed exchange traded fund launched on 05/22/2000.
The fund is sponsored by Blackrock. It has amassed assets over $60.94 billion, making it one of the largest ETFs attempting to match the Large Cap Growth segment of the US equity market.
Why Large Cap Growth
Large cap companies usually have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.
Growth stocks have higher than average sales and earnings growth rates. While these are expected to grow faster than the broader market, they also have higher valuations. Also, growth stocks are a type of equity that carries more risk compared to others. Compared to value stocks, growth stocks are a safer bet in a strong bull market, but don't perform as strongly in almost all other financial environments.
Costs
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 counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0.18%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 0.85%.
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 44% of the portfolio. Consumer Discretionary and Healthcare round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 11.05% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN).
Performance and Risk
IWF seeks to match the performance of the Russell 1000 Growth Index before fees and expenses. The Russell 1000 Growth Index measures the performance of the large-capitalization growth sector of the U.S. equity market.
The ETF has added about 7.58% so far this year and is down about -12.02% in the last one year (as of 01/27/2023). In the past 52-week period, it has traded between $207.03 and $285.14.
The ETF has a beta of 1.07 and standard deviation of 28.60% for the trailing three-year period, making it a medium risk choice in the space. With about 517 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Russell 1000 Growth 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, IWF is a sufficient option for those seeking exposure to the Style Box - Large Cap Growth area of the market. Investors might also want to consider some other ETF options in the space.
The Vanguard Growth ETF (VUG) and the Invesco QQQ (QQQ) track a similar index. While Vanguard Growth ETF has $74.69 billion in assets, Invesco QQQ has $153.77 billion. VUG has an expense ratio of 0.04% and QQQ charges 0.20%.
Bottom-Line
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
iShares Russell 1000 Growth ETF (IWF): ETF Research Reports
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Invesco QQQ (QQQ): ETF Research Reports
Vanguard Growth ETF (VUG): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 11.05% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report iShares Russell 1000 Growth ETF (IWF): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. It has amassed assets over $60.94 billion, making it one of the largest ETFs attempting to match the Large Cap Growth segment of the US equity market.
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Click to get this free report iShares Russell 1000 Growth ETF (IWF): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 11.05% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Designed to provide broad exposure to the Large Cap Growth segment of the US equity market, the iShares Russell 1000 Growth ETF (IWF) is a passively managed exchange traded fund launched on 05/22/2000.
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Click to get this free report iShares Russell 1000 Growth ETF (IWF): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 11.05% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Designed to provide broad exposure to the Large Cap Growth segment of the US equity market, the iShares Russell 1000 Growth ETF (IWF) is a passively managed exchange traded fund launched on 05/22/2000.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 11.05% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report iShares Russell 1000 Growth ETF (IWF): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Designed to provide broad exposure to the Large Cap Growth segment of the US equity market, the iShares Russell 1000 Growth ETF (IWF) is a passively managed exchange traded fund launched on 05/22/2000.
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17403.0
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2023-01-27 00:00:00 UTC
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US STOCKS-Wall Street advances, on course for weekly gains as Fed meeting looms
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-advances-on-course-for-weekly-gains-as-fed-meeting-looms
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nan
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nan
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By Stephen Culp
NEW YORK, Jan 27 (Reuters) - Wall Street advanced on Friday, nearing the end of an rocky week in which economic data and corporate earnings guidance both hinted at softening demand but also economic resiliency ahead of next week's Federal Reserve monetary policy meeting.
All three major U.S. stock indexes were last green after see-sawing earlier in the session, with the Nasdaq out front.
From last Friday's close, the S&P and the Dow have set a course for their third weekly gains in four, while the tech-laden Nasdaq appears set to notch its fourth straight weekly advance.
The Commerce Department's hotly anticipated personal consumption expenditures (PCE) report arrived largely inline with consensus, showing softening demand and cooling inflation - which is exactly what the Federal Reserve's restrictive interest rate hikes are intended to accomplish.
"(The PCE report) is welcome news with regards to the Fed’s mission, but they’re not ready to retreat at this point," said Matthew Keator, managing partner in the Keator Group, a wealth management firm in Lenox, Massachusetts. "They will stay focused on their mission, but the hope is that they will begin to moderate their hawkish tones."
Fed Chair Jerome Powell has clearly stated that the central bank's battle against decades-high inflation is far from over, however. Financial markets still believe the central bank will hike the Fed funds target rate by another 25 basis points at the conclusion of next week's policy meeting.
Fourth-quarter earnings season is running on all cylinders, with 143 of the companies in the S&P 500 having reported. Of those, 67.8% have beaten Street expectations, slightly better than the 66% long-term average, but well below the 76% beat rate over the past four quarters, according to Refinitiv.
Analysts now see aggregate S&P 500 earnings falling 2.9% year-on-year, compared with the milder 1.6% annual drop seen on Jan. 1, per Refinitiv.
The Dow Jones Industrial Average .DJI rose 81.28 points, or 0.24%, to 34,030.69, the S&P 500 .SPX gained 18.1 points, or 0.45%, to 4,078.53 and the Nasdaq Composite .IXIC added 133.41 points, or 1.16%, to 11,645.82.
Among the 11 major sectors of the S&P 500, consumer discretionary .SPLRCD led the percentage gainers, while energy .SPNY suffered the largest percentage losses.
Shares of Intel Corp INTC.O plunged 7.1% after the chipmaker provided dismal earnings projections.
Chevron Corp CVX.N posted record 2022 profit, but its fourth quarter earnings fell short of expectations, dragging the stock down 4.1%.
Rival payment companies American Express Co AXP.N and Visa Inc V.N reported consensus-beating results, easing worries of waning consumer demand. There shares jumped 11.5% and 3.0%, respectively.
Bed Bath & Beyond Inc BBBY.O rose 4.2% in a partial rebound after plummeting 22.2% on Thursday in the wake of JPMorgan issuing a loan default notice.
Next week, a raft of high profile earnings reports are expected, notably from Apple Inc AAPL.O, Amazon.com AMZN.O, Alphabet Inc GOOGL.O and Meta Platforms META.O, among others.
Advancing issues outnumbered declining ones on the NYSE by a 1.54-to-1 ratio; on Nasdaq, a 1.49-to-1 ratio favored advancers.
The S&P 500 posted 14 new 52-week highs and no new lows; the Nasdaq Composite recorded 80 new highs and 29 new lows.
(Reporting by Stephen Culp; Additonal Reporting by Bansari Mayur Kamdar, Johann M Cherian and Shreyashi Sanyal in Bengaluru; Editing by Aurora Ellis)
((stephen.culp@thomsonreuters.com; 646-223-6076;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Next week, a raft of high profile earnings reports are expected, notably from Apple Inc AAPL.O, Amazon.com AMZN.O, Alphabet Inc GOOGL.O and Meta Platforms META.O, among others. The Commerce Department's hotly anticipated personal consumption expenditures (PCE) report arrived largely inline with consensus, showing softening demand and cooling inflation - which is exactly what the Federal Reserve's restrictive interest rate hikes are intended to accomplish. Financial markets still believe the central bank will hike the Fed funds target rate by another 25 basis points at the conclusion of next week's policy meeting.
|
Next week, a raft of high profile earnings reports are expected, notably from Apple Inc AAPL.O, Amazon.com AMZN.O, Alphabet Inc GOOGL.O and Meta Platforms META.O, among others. By Stephen Culp NEW YORK, Jan 27 (Reuters) - Wall Street advanced on Friday, nearing the end of an rocky week in which economic data and corporate earnings guidance both hinted at softening demand but also economic resiliency ahead of next week's Federal Reserve monetary policy meeting. Chevron Corp CVX.N posted record 2022 profit, but its fourth quarter earnings fell short of expectations, dragging the stock down 4.1%.
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Next week, a raft of high profile earnings reports are expected, notably from Apple Inc AAPL.O, Amazon.com AMZN.O, Alphabet Inc GOOGL.O and Meta Platforms META.O, among others. By Stephen Culp NEW YORK, Jan 27 (Reuters) - Wall Street advanced on Friday, nearing the end of an rocky week in which economic data and corporate earnings guidance both hinted at softening demand but also economic resiliency ahead of next week's Federal Reserve monetary policy meeting. From last Friday's close, the S&P and the Dow have set a course for their third weekly gains in four, while the tech-laden Nasdaq appears set to notch its fourth straight weekly advance.
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Next week, a raft of high profile earnings reports are expected, notably from Apple Inc AAPL.O, Amazon.com AMZN.O, Alphabet Inc GOOGL.O and Meta Platforms META.O, among others. From last Friday's close, the S&P and the Dow have set a course for their third weekly gains in four, while the tech-laden Nasdaq appears set to notch its fourth straight weekly advance. Financial markets still believe the central bank will hike the Fed funds target rate by another 25 basis points at the conclusion of next week's policy meeting.
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17404.0
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2023-01-27 00:00:00 UTC
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2 Large Cap Stocks To Watch In The Stock Market Today
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AAPL
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https://www.nasdaq.com/articles/2-large-cap-stocks-to-watch-in-the-stock-market-today
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nan
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nan
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To begin, large-cap stocks are shares of companies with a market capitalization of over $10 billion. These are typically well-established companies that have been around for a while and have a proven track record of success. They are generally seen as less risky investments than small-cap stocks, as they have a larger and more diversified customer base and revenue stream. Many of these companies are household names, such as Apple (NASDAQ: AAPL), Amazon.com (NASDAQ: AMZN), and Microsoft (NASDAQ: MSFT).
Investing in large-cap stocks can be a good way for the everyday investor to gain exposure to the stock market. Because of their size and stability, large-cap stocks are less volatile than small-cap stocks and can provide a more stable source of returns. Additionally, many large-cap stocks pay dividends, which can provide a steady stream of income for investors. However, it is important to remember that past performance is not always indicative of future results, so it’s important to do your research and diversify your portfolio. Keeping this in mind, let’s now look at two large-cap stocks trending in the stock market today.
Large Cap Stocks To Buy [Or Avoid] Today
Costco Wholesale Corporation (NASDAQ: COST)
Pfizer Inc. (NYSE: PFE)
Costco Wholesale Corporation (COST Stock)
Starting off, Costco Wholesale Corporation (COST) is a large retail company. For starters, the company operates a chain of membership-only warehouse clubs. In detail, Costco offers a wide range of products. This includes items such as groceries, electronics, furniture, and clothing. Additionally, the company is popular for its low prices and bulk buying options.
COST Recent Stock News
Just this week, Costco Wholesale announced that its Board of Directors has reauthorized a common stock repurchase program of up to $4 billion and declared a quarterly cash dividend of 90 cents per share. This reauthorization replaces the current $4 billion program, under which approximately $1.4 billion had been purchased and will expire in January 2027. The dividend is payable on February 17, 2023, to shareholders of record at the close of business on February 3, 2023.
COST Stock Chart
Since the start of 2023, the shares of Costco Wholesale have advanced by 9.93%. Meanwhile, during early Friday morning’s trading action, COST stock is trading at around $498.30 a share.
Source: TD Ameritrade TOS
[Read More] What Stocks To Buy Today? 3 AI Stocks To Know
Pfizer Inc. (PFE Stock)
Second, Pfizer Inc. (PFE) is a multinational pharmaceutical company. In brief, the healthcare company develops and produces medicines and vaccines for various health conditions. It is one of the largest pharmaceutical companies in the world and has a strong portfolio of patented drugs, including some of the most widely-used medicines in the world.
PFE Recent Stock News
This month, Pfizer announced an expansion of its An Accord for a Healthier World initiative, which will offer the full portfolio of its medicines and vaccines to 1.2 billion people living in 45 lower-income countries on a not-for-profit basis. The aim of this initiative is to reduce health inequities that exist between many lower-income countries and the rest of the world.
Initially, the Accord was launched in May 2022. This includes a commitment from Pfizer for access to all its patented medicines and vaccines available in the U.S. or European Union on a not-for-profit basis to 45 lower-income countries. Pfizer will now expand its offering under the Accord to include off-patent products, bringing the total offering from 23 products to around 500 products.
PFE Stock Chart
Year-to-date shares of PFE stock have fallen by 13.68% so far in 2023. While on Friday morning PFE stock is trading at $44.10 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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Many of these companies are household names, such as Apple (NASDAQ: AAPL), Amazon.com (NASDAQ: AMZN), and Microsoft (NASDAQ: MSFT). PFE Recent Stock News This month, Pfizer announced an expansion of its An Accord for a Healthier World initiative, which will offer the full portfolio of its medicines and vaccines to 1.2 billion people living in 45 lower-income countries on a not-for-profit basis. This includes a commitment from Pfizer for access to all its patented medicines and vaccines available in the U.S. or European Union on a not-for-profit basis to 45 lower-income countries.
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Many of these companies are household names, such as Apple (NASDAQ: AAPL), Amazon.com (NASDAQ: AMZN), and Microsoft (NASDAQ: MSFT). Large Cap Stocks To Buy [Or Avoid] Today Costco Wholesale Corporation (NASDAQ: COST) Pfizer Inc. (NYSE: PFE) Costco Wholesale Corporation (COST Stock) Starting off, Costco Wholesale Corporation (COST) is a large retail company. COST Recent Stock News Just this week, Costco Wholesale announced that its Board of Directors has reauthorized a common stock repurchase program of up to $4 billion and declared a quarterly cash dividend of 90 cents per share.
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Many of these companies are household names, such as Apple (NASDAQ: AAPL), Amazon.com (NASDAQ: AMZN), and Microsoft (NASDAQ: MSFT). Large Cap Stocks To Buy [Or Avoid] Today Costco Wholesale Corporation (NASDAQ: COST) Pfizer Inc. (NYSE: PFE) Costco Wholesale Corporation (COST Stock) Starting off, Costco Wholesale Corporation (COST) is a large retail company. 3 AI Stocks To Know Pfizer Inc. (PFE Stock) Second, Pfizer Inc. (PFE) is a multinational pharmaceutical company.
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Many of these companies are household names, such as Apple (NASDAQ: AAPL), Amazon.com (NASDAQ: AMZN), and Microsoft (NASDAQ: MSFT). To begin, large-cap stocks are shares of companies with a market capitalization of over $10 billion. Additionally, many large-cap stocks pay dividends, which can provide a steady stream of income for investors.
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17405.0
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2023-01-27 00:00:00 UTC
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67.65% of Warren Buffett's Berkshire Hathaway Portfolio is in These 4 Stocks
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AAPL
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https://www.nasdaq.com/articles/67.65-of-warren-buffetts-berkshire-hathaway-portfolio-is-in-these-4-stocks
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Apple (NASDAQ: AAPL) and Coca-Cola (NYSE: KO) are among the portfolio's top holdings. This video will highlight the stocks and determine what Warren Buffett sees in these four companies.
*Stock prices used were the afternoon prices of Jan. 24, 2023. The video was published on Jan. 26, 2023.
10 stocks we like better than Apple
When our award-winning 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 January 9, 2023
Bank of America is an advertising partner of The Ascent, a Motley Fool company. Parkev Tatevosian, CFA has positions in Apple. The Motley Fool has positions in and recommends Apple and Bank of America. The Motley Fool recommends the following options: long January 2024 $47.50 calls on Coca-Cola, long March 2023 $120 calls on Apple, and short March 2023 $130 calls on 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 fool.com/parkev, 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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Apple (NASDAQ: AAPL) and Coca-Cola (NYSE: KO) are among the portfolio's top holdings. This video will highlight the stocks and determine what Warren Buffett sees in these four companies. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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Apple (NASDAQ: AAPL) and Coca-Cola (NYSE: KO) are among the portfolio's top holdings. 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 and Bank of America.
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Apple (NASDAQ: AAPL) and Coca-Cola (NYSE: KO) are among the portfolio's top holdings. 10 stocks we like better than Apple When our award-winning analyst team has a stock tip, it can pay to listen. See the 10 stocks *Stock Advisor returns as of January 9, 2023 Bank of America is an advertising partner of The Ascent, a Motley Fool company.
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Apple (NASDAQ: AAPL) and Coca-Cola (NYSE: KO) are among the portfolio's top holdings. That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of January 9, 2023 Bank of America is an advertising partner of The Ascent, a Motley Fool company.
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17406.0
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2023-01-27 00:00:00 UTC
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Will This Week's Big Tech Earnings Be a Train Wreck?
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AAPL
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https://www.nasdaq.com/articles/will-this-weeks-big-tech-earnings-be-a-train-wreck
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nan
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The market’s initial reaction to the Microsoft (MSFT) report was negative, which made sense given the sluggish top-line growth pace and weak guidance. But sentiment on the numbers shifted as market participants realized that Microsoft’s cloud numbers were hardly the ‘train wreck’ that many had started fearing ahead of the release.
Broadly speaking, the market’s favorable reaction to the Microsoft results is in the same spirit with which it has received all incoming results in the Q4 earnings season.
Regular readers of our earnings commentary know that we have been referring to the overall picture emerging from the Q4 earnings season as good enough; not great, but not bad either. With results from more than 28% of S&P 500 members already out, we can confidently say that corporate earnings aren’t headed towards the ‘cliff’ that market bears were warning us of.
The way we see it, the ‘better-than-feared’ view of the Q4 earnings season at this stage may be a bit unfair, given how resilient corporate profitability has turned out to be. But the view isn’t entirely off the mark either.
We want to dwell on the Microsoft report a bit more given the read-through that its business provides us for broad trends in enterprise spending.
Microsoft’s business in the PC and ‘adjacent’ spaces validated the market’s ‘train wreck’ fears, with the view getting reconfirmed by another disappointing report from Intel (INTC). But Microsoft has been far less about PCs and far more about cloud (Azure), and results on that front are good enough.
Azure growth of +38%, in constant-currency terms, beat consensus estimates by a hair. Management pointed to a notable deceleration as the quarter unfolded, with the growth pace in December 2022 in the mid-30’s percentage range and they guided towards a bit lower growth pace for the March quarter.
These Azure trends are hardly abstract for the market, as they provide the set up for this week’s Amazon (AMZN) and Alphabet (GOOGL) results. Microsoft’s Azure is generally seen as the runner up to Amazon Web Services, with Alphabet’s cloud offering as third in place. In addition to Alphabet and Amazon, we also have Apple (AAPL) and Meta (META) on the docket reporting results this week.
The chart below shows the one-year stock market performance of the Zacks Technology sector (the red line; down -18.8%), Apple (green line; -14.8%), Microsoft (blue line; -19.7%), Alphabet (purple line; -26.1%), Amazon (-29.5) and Meta (-49.9%).
Image Source: Zacks Investment Research
The S&P 500 index, which we deliberately kept out of the above chart to reduce clutter in the visual, was down only -9.7% in the period.
These businesses aren’t exactly comparable, though digital advertising is core for Alphabet and Meta and to a smaller extent for Amazon. As noted earlier, Amazon is a leader in both the cloud as well as retail spaces, with the latter business facing capacity issues lately. And then there is Apple, which is in a league of its own.
Take a look at the chart below that shows current consensus expectations for this group for the current and coming periods in the context of what they were able to achieve in the preceding period.
We have highlighted the expected -11.7% earnings decline on +9.2% higher revenues for this group of 5 Tech leaders in 2022 Q2.
Image Source: Zacks Investment Research
As you can see here revenue growth is expected to remain in positive territory, with cost pressures weighing on earnings expectations. Needless to add that these Tech leaders are faced with compressed margins.
The chart below that shows the group’s earnings and revenue growth on an annual basis.
Image Source: Zacks Investment Research
Look at the chart and note the growth trend from 2022 to 2023. In other words, whether the growth trend for these companies is decelerating or not is a function of your holding horizon. These companies are impressive growth engines in the long run, even if those estimates for 2023 and 2024 come down in the days ahead.
As the macroeconomic clouds clear, as they eventually will, these digital platforms will be there to recapture those spending dollars.
Beyond the big 5 Tech players, total Q4 earnings for the Technology sector as a whole are expected to be down -18.5% from the same period last year on -2.6% lower revenues.
The chart below shows the sector’s Q4 earnings and revenue growth expectations in the context of where growth has been in recent quarters and what is expected in the coming four periods.
Image Source: Zacks Investment Research
2022 Q4 Earnings Season Scorecard
As of Friday, January 27th, we now have Q4 results from 143 S&P 500 members or 28.6% of the index’s total membership. Total earnings for these 143 index members are down -3.3% from the same period last year on +6.1% higher revenues, with 71.3% beating EPS estimates and 67.1% beating revenue estimates.
With 108 index members on deck to report Q4 results this week, we will have seen results from one-half of all the index members by the end of the week.
The comparison charts below put the EPS and revenue beats percentages in Q4 in a historical context.
Image Source: Zacks Investment Research
The comparison charts below put the earnings and revenue growth rates in Q4 in a historical context.
Image Source: Zacks Investment Research
The Earnings Big Picture
The chart below shows the expected 2022 Q4 earnings and revenue growth expectation in the context of where growth has been in recent quarters and what is expected in the next few quarters.
Image Source: Zacks Investment Research
The chart below shows the overall earnings picture on an annual basis.
Image Source: Zacks Investment Research
Estimates for 2023 have been steadily coming down, as we have been flagging for some time now. You can see this in the chart below that shows how the aggregate earnings total for the index has evolved since the start of 2022.
Image Source: Zacks Investment Research
Please note that the $1.941 trillion in expected aggregate earnings for the index in 2023 approximate to an index ‘EPS’ of $218.56, which compares to $216.89 in 2022.
The chart below shows this index ‘EPS’ has evolved since the start of 2022.
Image Source: Zacks Investment Research
From their peak in mid-April 2022, S&P 500 earnings estimates have been revised down by -10.8% for the index as a whole and by -12.92% on an ex-Energy basis, with much bigger cuts to estimates for the Construction, Consumer Discretionary, Retail, Tech and Aerospace sectors.
For more details about the evolving earnings picture, please check out our weekly Earnings Trends report here >>>> Digging Into the Early Q4 Earnings Scorecard
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 >>
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Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Intel Corporation (INTC) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : 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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In addition to Alphabet and Amazon, we also have Apple (AAPL) and Meta (META) on the docket reporting results this week. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Intel Corporation (INTC) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. The market’s initial reaction to the Microsoft (MSFT) report was negative, which made sense given the sluggish top-line growth pace and weak guidance.
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Intel Corporation (INTC) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. In addition to Alphabet and Amazon, we also have Apple (AAPL) and Meta (META) on the docket reporting results this week. The chart below shows the one-year stock market performance of the Zacks Technology sector (the red line; down -18.8%), Apple (green line; -14.8%), Microsoft (blue line; -19.7%), Alphabet (purple line; -26.1%), Amazon (-29.5) and Meta (-49.9%).
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Intel Corporation (INTC) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. In addition to Alphabet and Amazon, we also have Apple (AAPL) and Meta (META) on the docket reporting results this week. Image Source: Zacks Investment Research The Earnings Big Picture The chart below shows the expected 2022 Q4 earnings and revenue growth expectation in the context of where growth has been in recent quarters and what is expected in the next few quarters.
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In addition to Alphabet and Amazon, we also have Apple (AAPL) and Meta (META) on the docket reporting results this week. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Intel Corporation (INTC) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Image Source: Zacks Investment Research Look at the chart and note the growth trend from 2022 to 2023.
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17407.0
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2023-01-27 00:00:00 UTC
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4 FAANG Stocks Wall Street Thinks Will Be Big Winners in 2023 -- and 1 Analysts Aren't So Bullish About
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AAPL
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https://www.nasdaq.com/articles/4-faang-stocks-wall-street-thinks-will-be-big-winners-in-2023-and-1-analysts-arent-so
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nan
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The so-called FAANG stocks flopped in 2022. It wasn't pretty.
Meta Platforms (NASDAQ: META) stock (the "F" in FAANG because it was previously named Facebook) plunged 64%. Netflix (NASDAQ: NFLX) didn't fare much better, with its shares sinking 51%. Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) (the "G" in FAANG due to its Google business) and Amazon (NASDAQ: AMZN) fell 39% and 50%, respectively. Apple (NASDAQ: AAPL) ranked as the best performer in the group but still saw its shares tumble 27%.
But all of that is water under the bridge now. The future could be better than the past. Here are four FAANG stocks that Wall Street thinks will be big winners in 2023 -- and one that analysts aren't so bullish about.
Wall Street's projected winners
Wall Street is most enthusiastic about Amazon's prospects. The consensus 12-month price target reflects an upside potential of over 40%. That would mark a huge comeback for the beaten-down stock.
There are three main reasons why I think analysts are so optimistic about Amazon right now. The company's cost-cutting initiatives should boost earnings. Inflation has been one of the biggest challenges curtailing Amazon's growth but appears to be waning somewhat. Also, the threat of a severe recession seems to be relatively low.
Analysts also believe that Alphabet has plenty of room to run. The average price target for the tech giant is 27% higher than its current share price. Wall Street clearly doesn't expect OpenAI's ChatGPT to be the "Google killer" that some have predicted -- at least not this year.
Apple should be able to largely make up for its 2022 decline based on Wall Street's projections. The consensus price target for the stock reflects a 20% upside potential. Analysts appear to be counting on a solid performance from Apple's iPhone ecosystem over the coming quarters.
Last year's worst FAANG stock won't pick up the dubious distinction in 2023 if analysts are right. The average price target for Meta Platforms is more than 8% above the current share price.
The lone loser
That leaves Netflix as the only FAANG stock that analysts aren't as bullish about this year. The consensus price target indicates that Wall Street expects the streaming service stock to fall nearly 5% over the next 12 months.
To be sure, not all analysts are negative about Netflix. Twenty-five of the 41 analysts surveyed by Refinitiv in January rate the stock as a buy or strong buy. One of those analysts even thinks that Netflix's share price could jump more than 20%.
However, I'm not sure how many of those recommendations and price targets were set after Netflix announced outstanding Q4 earnings results. It's possible that some analysts could downgrade the stock to a hold after its big post-earnings gain. On the other hand, Netflix's results could cause some on Wall Street to rethink their negative opinions about its prospects.
Is Wall Street right?
There's an old Danish proverb once referenced by physicist Niels Bohr: "Prediction is very difficult, especially about the future." I think this sentiment is true, even when the future being predicted is only 12 months out.
However, I fully agree with Wall Street analysts' bullish views about Amazon, Alphabet, and Apple. I expect all three stocks to rebound strongly this year, as long as there isn't a severe recession.
Meta's near-term fortunes are anyone's guess. But I do find the stock's valuation attractive despite the company's numerous challenges. I also believe that Meta just might be the biggest winner of all the FAANG stocks over the next decade if CEO Mark Zuckerberg's vision of the metaverse is fulfilled.
As for Netflix, the company's latest quarterly update showed that its business is more resilient than naysayers might think. My main concern about the stock, though, is its valuation. Even after the steep sell-off last year, Netflix shares still trade at more than 30 times expected earnings. And I expect the company's earnings growth over the next several years will be much lower than they were in recent years.
Overall, Wall Street's take on the FAANG stocks seems to be about right, in my opinion. But whether Meta, Amazon, Alphabet, and Apple jump in 2023 or not, they could all be big winners over the long term.
Find out why Amazon.com is one of the 10 best stocks to buy now
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They just revealed their ten top stock picks for investors to buy right now. Amazon.com is on the list -- but there are nine others you may be overlooking.
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*Stock Advisor returns as of January 9, 2023
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. 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. Keith Speights has positions in Alphabet, Amazon.com, Apple, and Meta Platforms. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Meta Platforms, and Netflix. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on 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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Apple (NASDAQ: AAPL) ranked as the best performer in the group but still saw its shares tumble 27%. The consensus price target indicates that Wall Street expects the streaming service stock to fall nearly 5% over the next 12 months. I also believe that Meta just might be the biggest winner of all the FAANG stocks over the next decade if CEO Mark Zuckerberg's vision of the metaverse is fulfilled.
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Apple (NASDAQ: AAPL) ranked as the best performer in the group but still saw its shares tumble 27%. However, I fully agree with Wall Street analysts' bullish views about Amazon, Alphabet, and Apple. *Stock Advisor returns as of January 9, 2023 Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors.
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Apple (NASDAQ: AAPL) ranked as the best performer in the group but still saw its shares tumble 27%. Here are four FAANG stocks that Wall Street thinks will be big winners in 2023 -- and one that analysts aren't so bullish about. The lone loser That leaves Netflix as the only FAANG stock that analysts aren't as bullish about this year.
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Apple (NASDAQ: AAPL) ranked as the best performer in the group but still saw its shares tumble 27%. Here are four FAANG stocks that Wall Street thinks will be big winners in 2023 -- and one that analysts aren't so bullish about. However, I fully agree with Wall Street analysts' bullish views about Amazon, Alphabet, and Apple.
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17408.0
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2023-01-27 00:00:00 UTC
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Should Invesco S&P 500 Top 50 ETF (XLG) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-invesco-sp-500-top-50-etf-xlg-be-on-your-investing-radar-6
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nan
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Launched on 05/04/2005, the Invesco S&P 500 Top 50 ETF (XLG) 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 Invesco. It has amassed assets over $1.90 billion, making it one of the larger ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Large cap companies usually have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.
Blend ETFs 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 0.20%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.26%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 38.10% of the portfolio. Healthcare and Telecom round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 12.02% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN).
The top 10 holdings account for about 47.68% of total assets under management.
Performance and Risk
XLG seeks to match the performance of the S&P 500 Top 50 ETF Index before fees and expenses. The S&P 500 Top 50 Index is composed of 50 of the largest companies in the S&P 500 Index.
The ETF has added roughly 6.49% so far this year and is down about -11.02% in the last one year (as of 01/27/2023). In the past 52-week period, it has traded between $266.55 and $358.55.
The ETF has a beta of 1 and standard deviation of 25.66% for the trailing three-year period, making it a medium risk choice in the space. With about 52 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco S&P 500 Top 50 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, XLG 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 $305.43 billion in assets, SPDR S&P 500 ETF has $378.71 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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Invesco S&P 500 Top 50 ETF (XLG): 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 12.02% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Click to get this free report Invesco S&P 500 Top 50 ETF (XLG): 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 05/04/2005, the Invesco S&P 500 Top 50 ETF (XLG) 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 Invesco S&P 500 Top 50 ETF (XLG): 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 12.02% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). 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.
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Click to get this free report Invesco S&P 500 Top 50 ETF (XLG): 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 12.02% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Alternatives Invesco S&P 500 Top 50 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 12.02% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Click to get this free report Invesco S&P 500 Top 50 ETF (XLG): 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 05/04/2005, the Invesco S&P 500 Top 50 ETF (XLG) 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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17409.0
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2023-01-27 00:00:00 UTC
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Is WisdomTree U.S. Total Dividend ETF (DTD) a Strong ETF Right Now?
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https://www.nasdaq.com/articles/is-wisdomtree-u.s.-total-dividend-etf-dtd-a-strong-etf-right-now-5
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Making its debut on 06/16/2006, smart beta exchange traded fund WisdomTree U.S. Total Dividend ETF (DTD) provides investors broad exposure to the Style Box - Large Cap Value 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.
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.
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 Wisdomtree. DTD has been able to amass assets over $1.14 billion, making it one of the average sized ETFs in the Style Box - Large Cap Value. This particular fund seeks to match the performance of the WisdomTree U.S. Dividend Index before fees and expenses.
The WisdomTree U.S. Dividend Index is a fundamentally-weighted index that defines the dividend-paying portion of the U.S. equity market.
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.
With on par with most peer products in the space, this ETF has annual operating expenses of 0.28%.
It has a 12-month trailing dividend yield of 2.52%.
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.
For DTD, it has heaviest allocation in the Financials sector --about 15.90% of the portfolio --while Information Technology and Healthcare round out the top three.
Looking at individual holdings, Exxon Mobil Corp (XOM) accounts for about 3.25% of total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT).
The top 10 holdings account for about 21.46% of total assets under management.
Performance and Risk
The ETF has added about 3.23% so far this year and was up about 3.06% in the last one year (as of 01/27/2023). In the past 52-week period, it has traded between $54.26 and $65.68.
The ETF has a beta of 0.92 and standard deviation of 23.58% for the trailing three-year period, making it a medium risk choice in the space. With about 829 holdings, it effectively diversifies company-specific risk.
Alternatives
WisdomTree U.S. Total Dividend ETF 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 $54.29 billion in assets, Vanguard Value ETF has $101.88 billion. IWD has an expense ratio of 0.18% 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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Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
WisdomTree U.S. Total Dividend ETF (DTD): 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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Looking at individual holdings, Exxon Mobil Corp (XOM) accounts for about 3.25% of total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT). Click to get this free report WisdomTree U.S. Total Dividend ETF (DTD): 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. Making its debut on 06/16/2006, smart beta exchange traded fund WisdomTree U.S. Total Dividend ETF (DTD) provides investors 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. Total Dividend ETF (DTD): 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. Looking at individual holdings, Exxon Mobil Corp (XOM) accounts for about 3.25% of total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT). Making its debut on 06/16/2006, smart beta exchange traded fund WisdomTree U.S. Total Dividend ETF (DTD) provides investors 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. Total Dividend ETF (DTD): 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. Looking at individual holdings, Exxon Mobil Corp (XOM) accounts for about 3.25% of total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT). Making its debut on 06/16/2006, smart beta exchange traded fund WisdomTree U.S. Total Dividend ETF (DTD) provides investors broad exposure to the Style Box - Large Cap Value category of the market.
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Looking at individual holdings, Exxon Mobil Corp (XOM) accounts for about 3.25% of total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT). Click to get this free report WisdomTree U.S. Total Dividend ETF (DTD): 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. Making its debut on 06/16/2006, smart beta exchange traded fund WisdomTree U.S. Total Dividend ETF (DTD) provides investors broad exposure to the Style Box - Large Cap Value category of the market.
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17410.0
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2023-01-27 00:00:00 UTC
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Should Vanguard Mega Cap ETF (MGC) Be on Your Investing Radar?
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https://www.nasdaq.com/articles/should-vanguard-mega-cap-etf-mgc-be-on-your-investing-radar-6
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The Vanguard Mega Cap ETF (MGC) was launched on 12/17/2007, 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 Vanguard. It has amassed assets over $3.70 billion, making it one of the larger ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Large cap companies usually have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.
Typically holding a combination of both growth and value stocks, blend ETFs also demonstrate qualities seen in value and growth investments.
Costs
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.07%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.56%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 29.30% of the portfolio. Healthcare and Financials round out the top three.
Looking at individual holdings, Apple Inc. (AAPL) accounts for about 7.84% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN).
The top 10 holdings account for about 29.86% of total assets under management.
Performance and Risk
MGC seeks to match the performance of the CRSP US Mega Cap Index before fees and expenses. The CRSP U.S. Mega Cap Index includes the largest U.S. companies, with a target of including the top 70% of investable market capitalization. The index includes securities traded on NYSE, NYSE Market, NASDAQ or ARCA.
The ETF return is roughly 5.76% so far this year and is down about -6.98% in the last one year (as of 01/27/2023). In the past 52-week period, it has traded between $124.31 and $162.54.
The ETF has a beta of 1 and standard deviation of 25.55% for the trailing three-year period, making it a medium risk choice in the space. With about 233 holdings, it effectively diversifies company-specific risk.
Alternatives
Vanguard Mega Cap ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, MGC is a 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 $305.43 billion in assets, SPDR S&P 500 ETF has $378.71 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Vanguard Mega Cap ETF (MGC): ETF Research Reports
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
SPDR S&P 500 ETF (SPY): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc. (AAPL) accounts for about 7.84% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Click to get this free report Vanguard Mega Cap ETF (MGC): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. It has amassed assets over $3.70 billion, making it one of the larger ETFs attempting to match the Large Cap Blend segment of the US equity market.
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Click to get this free report Vanguard Mega Cap ETF (MGC): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc. (AAPL) accounts for about 7.84% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). The Vanguard Mega Cap ETF (MGC) was launched on 12/17/2007, 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 Vanguard Mega Cap ETF (MGC): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc. (AAPL) accounts for about 7.84% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Alternatives Vanguard Mega Cap ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors.
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Looking at individual holdings, Apple Inc. (AAPL) accounts for about 7.84% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Click to get this free report Vanguard Mega Cap ETF (MGC): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. The Vanguard Mega Cap ETF (MGC) was launched on 12/17/2007, 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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17411.0
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2023-01-27 00:00:00 UTC
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Wall Street ends higher, notches weekly gains as Fed meeting looms
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https://www.nasdaq.com/articles/wall-street-ends-higher-notches-weekly-gains-as-fed-meeting-looms
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By Stephen Culp
NEW YORK, Jan 27 (Reuters) - Wall Street advanced on Friday, marking the end of an rocky week in which economic data and corporate earnings guidance hinted at softening demand but also economic resiliency ahead of next week's Federal Reserve monetary policy meeting.
All three major U.S. stock indexes ended the session green, with the Nasdaq, powered by megacap momentum stocks, enjoying the biggest gain.
So far in the early weeks of 2023, the Nasdaq has jumped 11%, while the S&P 500 and the Dow have gained 6% and 2.5%, respectively.
The Commerce Department's hotly anticipated personal consumption expenditures (PCE) report arrived largely in line with consensus, showing softening demand and cooling inflation - which is exactly what the Federal Reserve's restrictive interest rate hikes are intended to accomplish.
Fed Chair Jerome Powell has clearly stated that the central bank's battle against decades-high inflation is far from over, however. Financial markets still believe the central bank will hike the Fed funds target rate by another 25 basis points at the conclusion of next week's policy meeting.
Fourth-quarter earnings season is running on all cylinders, with 143 of the companies in the S&P 500 having reported. Of those, 67.8% have beaten Street expectations, slightly better than the 66% long-term average, but well below the 76% beat rate over the past four quarters, according to Refinitiv.
Analysts now see aggregate S&P 500 earnings falling 2.9% year-on-year, compared with the milder 1.6% annual drop seen on Jan. 1, per Refinitiv.
The Dow Jones Industrial Average .DJIrose 28.67 points, or 0.08%, to 33,978.08, the S&P 500 .SPXgained 10.13 points, or 0.25%, to 4,070.56 and the Nasdaq Composite .IXICadded 109.30 points, or 0.95%, to 11,621.71.
Among the 11 major sectors of the S&P 500, consumer discretionary .SPLRCD led the percentage gainers, while energy .SPNY suffered the largest percentage loss, down 2%.
Shares of Intel Corp INTC.O plunged 6.4% after the chipmaker provided dismal earnings projections.
Chevron Corp CVX.N posted record 2022 profit, but its fourth quarter earnings fell short of expectations, dragging the stock down 4.4%.
Rival payment companies American Express Co AXP.N and Visa Inc V.N reported consensus-beating results, easing worries of waning consumer demand. There shares jumped 10.5% and 3.0%, respectively.
Next week, in addition to the Fed meeting and January employment data, a string of high profile earnings reports are on tap, notably from Apple Inc AAPL.O, Amazon.com AMZN.O, Alphabet Inc GOOGL.O and Meta Platforms META.O, among others.
Advancing issues outnumbered declining ones on the NYSE by a 1.40-to-1 ratio; on Nasdaq, a 1.34-to-1 ratio favored advancers.
The S&P 500 posted 15 new 52-week highs and no new lows; the Nasdaq Composite recorded 94 new highs and 32 new lows.
Volume on U.S. exchanges was 11.88 billion shares, compared with the 11.10 billion average over the last 20 trading days.
(Reporting by Stephen Culp; Additonal Reporting by Bansari Mayur Kamdar, Johann M Cherian and Shreyashi Sanyal in Bengaluru; Editing by Aurora Ellis)
((stephen.culp@thomsonreuters.com; 646-223-6076;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Next week, in addition to the Fed meeting and January employment data, a string of high profile earnings reports are on tap, notably from Apple Inc AAPL.O, Amazon.com AMZN.O, Alphabet Inc GOOGL.O and Meta Platforms META.O, among others. The Commerce Department's hotly anticipated personal consumption expenditures (PCE) report arrived largely in line with consensus, showing softening demand and cooling inflation - which is exactly what the Federal Reserve's restrictive interest rate hikes are intended to accomplish. Financial markets still believe the central bank will hike the Fed funds target rate by another 25 basis points at the conclusion of next week's policy meeting.
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Next week, in addition to the Fed meeting and January employment data, a string of high profile earnings reports are on tap, notably from Apple Inc AAPL.O, Amazon.com AMZN.O, Alphabet Inc GOOGL.O and Meta Platforms META.O, among others. By Stephen Culp NEW YORK, Jan 27 (Reuters) - Wall Street advanced on Friday, marking the end of an rocky week in which economic data and corporate earnings guidance hinted at softening demand but also economic resiliency ahead of next week's Federal Reserve monetary policy meeting. The S&P 500 posted 15 new 52-week highs and no new lows; the Nasdaq Composite recorded 94 new highs and 32 new lows.
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Next week, in addition to the Fed meeting and January employment data, a string of high profile earnings reports are on tap, notably from Apple Inc AAPL.O, Amazon.com AMZN.O, Alphabet Inc GOOGL.O and Meta Platforms META.O, among others. By Stephen Culp NEW YORK, Jan 27 (Reuters) - Wall Street advanced on Friday, marking the end of an rocky week in which economic data and corporate earnings guidance hinted at softening demand but also economic resiliency ahead of next week's Federal Reserve monetary policy meeting. (Reporting by Stephen Culp; Additonal Reporting by Bansari Mayur Kamdar, Johann M Cherian and Shreyashi Sanyal in Bengaluru; Editing by Aurora Ellis) ((stephen.culp@thomsonreuters.com; 646-223-6076;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Next week, in addition to the Fed meeting and January employment data, a string of high profile earnings reports are on tap, notably from Apple Inc AAPL.O, Amazon.com AMZN.O, Alphabet Inc GOOGL.O and Meta Platforms META.O, among others. Financial markets still believe the central bank will hike the Fed funds target rate by another 25 basis points at the conclusion of next week's policy meeting. Chevron Corp CVX.N posted record 2022 profit, but its fourth quarter earnings fell short of expectations, dragging the stock down 4.4%.
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17412.0
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2023-01-27 00:00:00 UTC
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80% of Warren Buffett's Portfolio Is Invested in These 7 Stocks
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https://www.nasdaq.com/articles/80-of-warren-buffetts-portfolio-is-invested-in-these-7-stocks-0
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Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett has been a money machine for his shareholders since taking the reins in 1965. Through this past weekend, he's presided over a nearly 3,800,000% increase in the value of Berkshire's Class A shares (BRK.A). He's also outpaced the total return of the benchmark S&P 500, including dividends paid, by a factor of 120, as of the end of 2021.
There are a number of not-so-subtle "secrets" that explain why the Oracle of Omaha has been so successful. His love of dividend stocks and willingness to stick with his investments for years, if not decades, are perfect examples. But the unsung hero of Berkshire Hathaway's outperformance might be portfolio concentration.
Berkshire Hathaway CEO Warren Buffett. Image source: The Motley Fool.
Buffett has long felt that diversification is only necessary if you don't know what you're doing. Even though Berkshire Hathaway has positions in about four dozen securities, 80% of its nearly $333 billion of invested assets are tied up in just seven stocks. Take note that the following percentages include assets held by Warren Buffett's secret portfolio, New England Asset Management.
1. Apple: 37.9% of invested assets
If there were ever any doubt that the Oracle of Omaha and his investment team prefer a concentrated portfolio, tech stock Apple (NASDAQ: AAPL) confirms it. Berkshire's more than $126 billion stake in Apple accounts for close to 38% of its invested assets.
Apple is special for a variety of reasons. It has an extremely loyal customer base, is producing the most-popular smartphone in the U.S., and has consistently led with its innovation for decades. Though it's not abandoning the physical products that brought it fame, Apple has shifted its focus under CEO Tim Cook to subscription services. As subscriptions grow into a larger percentage of total sales, the revenue ebbs and flows of iPhone replacement cycles should be minimized.
Apple's capital-return program is top-notch as well. The company returns $14.6 billion in dividends to shareholders each year, and it's repurchased a whopping $554 billion of its common stock over the past decade.
Rapidly rising interest rates have been a boon for banks. Effective Federal Funds Rate data by YCharts.
2. Bank of America: 10.5% of invested assets
Historically, bank stocks are Warren Buffett's favorite industry to put money to work. It's therefore no surprise that Bank of America (NYSE: BAC) comprises such a large percentage of Berkshire Hathaway's invested assets.
The reason Buffett loves bank stocks is that they're able to win a simple numbers game. Despite banks being cyclical, and therefore susceptible to weakness during inevitable recessions, economic contractions are usually short-lived. Comparatively, periods of expansion and bull markets often last for years. Lengthy periods of economic expansion allow giants like Bank of America to grow their loans and deposits and return a sizable portion of their net income to shareholders in the form of dividends and buybacks.
The other interesting thing about BofA is that it's the most interest-sensitive money-center bank. As interest rates have risen, Bank of America has seen its net interest income jump by billions of dollars each quarter.
3. Chevron: 9.2% of invested assets
Over the past two years, energy stock Chevron (NYSE: CVX) has grown into a top-three position in Berkshire Hathaway's portfolio.
The likeliest reason for Buffett and his investing lieutenants (Todd Combs and Ted Weschler) to pile into Chevron is the expectation that the spot prices for crude oil and natural gas will remain high. Though a lot of attention has been afforded to Russia's invasion of Ukraine and the supply disruptions to Europe created by this event, the COVID-19 pandemic has provided even more of a lift for oil and gas prices. With global energy companies cutting their capital expenditures due to pandemic-related demand uncertainty, it'll be years before global oil and gas supply can be meaningfully increased. That's good news for Chevron's drilling operations.
However, Chevron is also an integrated operator. In addition to drilling, it also operates transmission pipelines, refineries, and chemical plants. These are assets that can hedge against oil and natural gas price weakness.
Image source: Coca-Cola.
4. Coca-Cola: 7.2% of invested assets
No stock in Berkshire Hathaway's investment portfolio has been a longer continuous holding than beverage company Coca-Cola (NYSE: KO). Buffett and his team have likely stuck with Coca-Cola for 35 years for two specific reasons.
To begin with, Coke offers incredible geographic diversity. Except for Cuba, North Korea, and Russia, you'll find this company operating in every other country worldwide. This means taking advantage of faster growth rates in underpenetrated emerging markets, as well as raking in dependable cash flow in developed markets.
The other key to success for Coca-Cola is its marketing. It's arguably the most-recognized consumer goods brand in the world. This is a company that's been able to use everything from its holiday tie-ins to its social media brand ambassadors to transcend generational gaps and connect with consumers young and old.
5. American Express: 6.9% of invested assets
In case the point hasn't been driven home yet, Warren Buffett really enjoys putting Berkshire Hathaway's money to work in financial stocks. Credit-services company American Express (NYSE: AXP) certainly fits the bill -- and is Berkshire's second longest-held stock (since 1993).
Similar to Bank of America, AmEx benefits from disproportionately long periods of expansion. But it's the company's ability to double-dip that really stands out. In addition to collecting fees as a payment processor, American Express also lends money and collects fees and/or interest from its cardholders. While lending exposes the company to potential loan losses during recessions, it allows American Express to double down during the good times.
AmEx has also done a phenomenal job of courting high-income cardholders. High earners are less likely than the typical worker/consumer to be impacted by above-average inflation or a modest recession. This adds predictability to AmEx's operating results.
WTI Crude Oil Spot Price data by YCharts.
6. Occidental Petroleum: 3.9% of invested assets
Perhaps the most eyebrow-raising thing about Occidental Petroleum (NYSE: OXY) being Berkshire Hathaway's sixth-largest holding is that the entirety of this position was added last year. However, I'll also note that Berkshire has been holding $10 billion in Occidental preferred stock (yielding 8%) since 2019.
The bull thesis behind Occidental is very similar to Chevron, but it does have its own nuances. For example, even though Occidental is an integrated operator with downstream assets, a larger percentage of its revenue is tied to drilling assets than Chevron. In other words, holding Occidental Petroleum stock may allow Buffett's company even more leverage if the price of crude oil stays elevated.
The other key difference between Berkshire Hathaway's two large energy positions is their balance sheets. Chevron has what's arguably the best balance sheet among big oil companies. Meanwhile, Occidental has been mired in debt following its Anadarko acquisition in 2019. Buffett and his team may well have a bargain if Occidental can continue to dig itself out of the hole it's created. However, oil prices will need to remain elevated for that to happen.
7. Kraft Heinz: 3.9% of invested assets
Lastly, consumer staples stock Kraft Heinz (NASDAQ: KHC) accounts for 3.9% of Berkshire Hathaway's invested assets. Altogether, these seven stocks round up to 80% of the assets in Warren Buffett's portfolio.
Consumer staples stocks like Kraft Heinz tend to be attractive during periods of heightened uncertainty, such as what we're experiencing now. This is a company with more than a dozen well-recognized brands and generally strong pricing power. Since food is a basic necessity, the expectation is for predictable operating cash flow from Kraft Heinz.
But as I recently opined, Kraft Heinz is quite possibly Warren Buffett's worst investment. The company's balance sheet is weighed down by large amounts of long-term debt and goodwill, which leaves it little financial flexibility. If the U.S. were to enter a recession in 2023, it's not out of the question that consumers trade down from Kraft Heinz to less-costly store brands to save money.
10 stocks we like better than Apple
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American Express and Bank of America are advertising partners of The Ascent, a Motley Fool company. Sean Williams has positions in Bank of America. The Motley Fool has positions in and recommends Apple, Bank of America, and Berkshire Hathaway. The Motley Fool recommends Kraft Heinz and recommends the following options: long January 2023 $200 calls on Berkshire Hathaway, long January 2024 $47.50 calls on Coca-Cola, long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway, short January 2023 $265 calls on Berkshire Hathaway, and short March 2023 $130 calls on 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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Apple: 37.9% of invested assets If there were ever any doubt that the Oracle of Omaha and his investment team prefer a concentrated portfolio, tech stock Apple (NASDAQ: AAPL) confirms it. Lengthy periods of economic expansion allow giants like Bank of America to grow their loans and deposits and return a sizable portion of their net income to shareholders in the form of dividends and buybacks. The likeliest reason for Buffett and his investing lieutenants (Todd Combs and Ted Weschler) to pile into Chevron is the expectation that the spot prices for crude oil and natural gas will remain high.
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Apple: 37.9% of invested assets If there were ever any doubt that the Oracle of Omaha and his investment team prefer a concentrated portfolio, tech stock Apple (NASDAQ: AAPL) confirms it. Kraft Heinz: 3.9% of invested assets Lastly, consumer staples stock Kraft Heinz (NASDAQ: KHC) accounts for 3.9% of Berkshire Hathaway's invested assets. The Motley Fool recommends Kraft Heinz and recommends the following options: long January 2023 $200 calls on Berkshire Hathaway, long January 2024 $47.50 calls on Coca-Cola, long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway, short January 2023 $265 calls on Berkshire Hathaway, and short March 2023 $130 calls on Apple.
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Apple: 37.9% of invested assets If there were ever any doubt that the Oracle of Omaha and his investment team prefer a concentrated portfolio, tech stock Apple (NASDAQ: AAPL) confirms it. Coca-Cola: 7.2% of invested assets No stock in Berkshire Hathaway's investment portfolio has been a longer continuous holding than beverage company Coca-Cola (NYSE: KO). Kraft Heinz: 3.9% of invested assets Lastly, consumer staples stock Kraft Heinz (NASDAQ: KHC) accounts for 3.9% of Berkshire Hathaway's invested assets.
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Apple: 37.9% of invested assets If there were ever any doubt that the Oracle of Omaha and his investment team prefer a concentrated portfolio, tech stock Apple (NASDAQ: AAPL) confirms it. Chevron: 9.2% of invested assets Over the past two years, energy stock Chevron (NYSE: CVX) has grown into a top-three position in Berkshire Hathaway's portfolio. Coca-Cola: 7.2% of invested assets No stock in Berkshire Hathaway's investment portfolio has been a longer continuous holding than beverage company Coca-Cola (NYSE: KO).
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17413.0
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2023-01-26 00:00:00 UTC
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Earnings Preview: Apple (AAPL) Q1 Earnings Expected to Decline
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AAPL
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https://www.nasdaq.com/articles/earnings-preview%3A-apple-aapl-q1-earnings-expected-to-decline
|
nan
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nan
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The market expects Apple (AAPL) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended December 2022. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on February 2. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on theearnings callwill mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus Estimate
This maker of iPhones, iPads and other products is expected to post quarterly earnings of $1.94 per share in its upcoming report, which represents a year-over-year change of -7.6%.
Revenues are expected to be $121.21 billion, down 2.2% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 0.13% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Earnings Whisper
Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Apple?
For Apple, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -0.17%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that Apple will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?
Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Apple would post earnings of $1.26 per share when it actually produced earnings of $1.29, delivering a surprise of +2.38%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom Line
An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Apple doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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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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The market expects Apple (AAPL) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended December 2022. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
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The market expects Apple (AAPL) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended December 2022. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
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The market expects Apple (AAPL) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended December 2022. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate.
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The market expects Apple (AAPL) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended December 2022. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on February 2.
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17414.0
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2023-01-26 00:00:00 UTC
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U.S. lawsuit against Google could benefit Apple and others
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AAPL
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https://www.nasdaq.com/articles/u.s.-lawsuit-against-google-could-benefit-apple-and-others
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nan
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nan
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By Sheila Dang and Diane Bartz
Jan 26 (Reuters) - A landmark lawsuit by the U.S. Justice Department against Alphabet's GOOGL.O Google over its dominance of advertising technology could help rivals and websites that sell ad space, but leaves an uncertain future for the advertisers themselves, experts told Reuters.
The Justice Department's complaint against Google on Tuesday called for the company to divest Google Ad Manager, a suite of tools including one that lets websites put ad space up for a sale and another that served as an ad marketplace that automatically matched advertisers with those publishers.
If the Justice Department lawsuit succeeds, "advertisers and publishers could have more leverage with more options with expanding players – and consequently more competition," said Neil Begley of Moody's Investors Service.
Apple Inc AAPL.O, which is steadily growing its nascent advertising business and promoting it as privacy-focused, could be a winner if Google ads become less effective, said Brian Mandelbaum, chief executive of marketing firm Attain.
Ad industry executives say Google's business in placing ads on websites it does not own gives Google valuable information on an ad's effectiveness.
Apple has "an ability to be a new dominant force," in advertising because Apple has data through its ownership of phones, its Safari web browser and the distribution of apps through the App Store, he said.
Google's competitors in ad tech are increasingly creating products that serve both the publishers like news websites, which sell ad space, and advertisers who buy ads, like Google currently does, said Paul Bannister, chief strategy officer at CafeMedia, which helps small and medium-sized publishers sell ad space.
If Google is forced to divest the tools that serve publishers, it would benefit competitors like Xandr, which is owned by MicrosoftMSFT.O, that will still work with both sides of the ad-buying ecosystem, Bannister said.
With more options besides Google, publishers will have more transparency over how much they can sell ad space for, and could end up paying less in fees, Mandelbaum said.
The divested assets could result in Google losing key data that helps target ads to relevant consumers, he said.
If Google loses access to data signals, advertisers could see their Google ads become less effective, said Nikhil Lai, senior analyst at research firm Forrester.
At least twice before, the government has filed lawsuits against dominant companies with far-reaching results. A lawsuit breaking up AT&T, filed in 1974, resulted in an agreement in 1982 to break up the company. That breakup has been credited with a host of innovations in telephony.
The Justice Department's lawsuit against Microsoft, filed in 1998, reined in the company at a time when it was seeking to extend its dominant operating system to the internet browser. While the lawsuit settled, the fight is credited with opening the way for other internet innovators, like Google itself.
U.S. targets Google's online ad business monopoly in latest Big Tech lawsuit
Google says U.S. Justice Department complaint is 'without merit'
Canada competition bureau has court order for Google advertising probe - statement
U.S. consumer watchdog to query tech giants over financial data -sources
FACTBOX-The sun never sets on Google's antitrust woes
FACTBOX-Biden administration continues Trump antitrust focus on tech giants
BREAKINGVIEWS-Frankenstein's watchdog can tame Big Tech monster
BREAKINGVIEWS-Google ad lawsuit reaches back to the future
(Reporting by Sheila Dang and Diane Bartz Editing by Nick Zieminski)
((Sheila.Dang@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.
|
Apple Inc AAPL.O, which is steadily growing its nascent advertising business and promoting it as privacy-focused, could be a winner if Google ads become less effective, said Brian Mandelbaum, chief executive of marketing firm Attain. If the Justice Department lawsuit succeeds, "advertisers and publishers could have more leverage with more options with expanding players – and consequently more competition," said Neil Begley of Moody's Investors Service. The Justice Department's lawsuit against Microsoft, filed in 1998, reined in the company at a time when it was seeking to extend its dominant operating system to the internet browser.
|
Apple Inc AAPL.O, which is steadily growing its nascent advertising business and promoting it as privacy-focused, could be a winner if Google ads become less effective, said Brian Mandelbaum, chief executive of marketing firm Attain. By Sheila Dang and Diane Bartz Jan 26 (Reuters) - A landmark lawsuit by the U.S. Justice Department against Alphabet's GOOGL.O Google over its dominance of advertising technology could help rivals and websites that sell ad space, but leaves an uncertain future for the advertisers themselves, experts told Reuters. The divested assets could result in Google losing key data that helps target ads to relevant consumers, he said.
|
Apple Inc AAPL.O, which is steadily growing its nascent advertising business and promoting it as privacy-focused, could be a winner if Google ads become less effective, said Brian Mandelbaum, chief executive of marketing firm Attain. The Justice Department's complaint against Google on Tuesday called for the company to divest Google Ad Manager, a suite of tools including one that lets websites put ad space up for a sale and another that served as an ad marketplace that automatically matched advertisers with those publishers. Google's competitors in ad tech are increasingly creating products that serve both the publishers like news websites, which sell ad space, and advertisers who buy ads, like Google currently does, said Paul Bannister, chief strategy officer at CafeMedia, which helps small and medium-sized publishers sell ad space.
|
Apple Inc AAPL.O, which is steadily growing its nascent advertising business and promoting it as privacy-focused, could be a winner if Google ads become less effective, said Brian Mandelbaum, chief executive of marketing firm Attain. Google's competitors in ad tech are increasingly creating products that serve both the publishers like news websites, which sell ad space, and advertisers who buy ads, like Google currently does, said Paul Bannister, chief strategy officer at CafeMedia, which helps small and medium-sized publishers sell ad space. If Google loses access to data signals, advertisers could see their Google ads become less effective, said Nikhil Lai, senior analyst at research firm Forrester.
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17415.0
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2023-01-26 00:00:00 UTC
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Apple Reports After the Close on 2/2 -- Options Contracts Expire the Next Day
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AAPL
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https://www.nasdaq.com/articles/apple-reports-after-the-close-on-2-2-options-contracts-expire-the-next-day
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nan
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nan
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According to NextEarningsDate.com, the Apple (NASD: AAPL) AAPL next earnings date is projected to be 2/2 after the close, with earnings estimates of $1.97/share on $122.56 Billion of revenue. Looking back, the recent Apple earnings history looks like this:
PERIOD EARNINGS DATE EARNINGS
Q4 2022 10/27/2022 1.290
Q3 2022 7/28/2022 1.200
Q2 2022 4/28/2022 1.520
Q1 2022 1/27/2022 2.100
Q4 2021 10/28/2021 1.240
The company has an impressive long-term earnings per share chart:
And with equally impressive revenue growth:
But earnings reports can often uniquely bring abrupt volatility to a stock, in either direction, as investors digest the fundamental details. And that volatility can be a stock options trader's dream come true — so such traders will be interested to know that Apple has options available that expire February 03rd.
Visit StockOptionsChannel.com to investigate the AAPL options chain on either the puts side or the call side, for further ideas.
Apple's current dividend yield is 0.65%, with the following Apple Dividend History. Also, dividend investors should check out the following ideas for Top Dividends and Monthly Dividend Paying Stocks.
Also see:
Funds Holding HPJ
UNAM shares outstanding history
Funds Holding GBNY
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 NextEarningsDate.com, the Apple (NASD: AAPL) AAPL next earnings date is projected to be 2/2 after the close, with earnings estimates of $1.97/share on $122.56 Billion of revenue. Visit StockOptionsChannel.com to investigate the AAPL options chain on either the puts side or the call side, for further ideas. The company has an impressive long-term earnings per share chart: And with equally impressive revenue growth: But earnings reports can often uniquely bring abrupt volatility to a stock, in either direction, as investors digest the fundamental details.
|
According to NextEarningsDate.com, the Apple (NASD: AAPL) AAPL next earnings date is projected to be 2/2 after the close, with earnings estimates of $1.97/share on $122.56 Billion of revenue. Visit StockOptionsChannel.com to investigate the AAPL options chain on either the puts side or the call side, for further ideas. Looking back, the recent Apple earnings history looks like this:
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According to NextEarningsDate.com, the Apple (NASD: AAPL) AAPL next earnings date is projected to be 2/2 after the close, with earnings estimates of $1.97/share on $122.56 Billion of revenue. Visit StockOptionsChannel.com to investigate the AAPL options chain on either the puts side or the call side, for further ideas. The company has an impressive long-term earnings per share chart: And with equally impressive revenue growth: But earnings reports can often uniquely bring abrupt volatility to a stock, in either direction, as investors digest the fundamental details.
|
According to NextEarningsDate.com, the Apple (NASD: AAPL) AAPL next earnings date is projected to be 2/2 after the close, with earnings estimates of $1.97/share on $122.56 Billion of revenue. Visit StockOptionsChannel.com to investigate the AAPL options chain on either the puts side or the call side, for further ideas. Looking back, the recent Apple earnings history looks like this:
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17416.0
|
2023-01-26 00:00:00 UTC
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U.S. lawsuit against Google could benefit Apple and others
|
AAPL
|
https://www.nasdaq.com/articles/u.s.-lawsuit-against-google-could-benefit-apple-and-others-0
|
nan
|
nan
|
By Sheila Dang and Diane Bartz
Jan 26 (Reuters) - A landmark lawsuit by the U.S. Justice Department against Alphabet's GOOGL.O Google over its dominance of advertising technology could help rivals and websites that sell ad space, but leaves an uncertain future for the advertisers themselves, experts told Reuters.
The Justice Department's complaint against Google on Tuesday called for the company to divest Google Ad Manager, a suite of tools including one that lets websites put ad space up for a sale and another that served as an ad marketplace that automatically matched advertisers with those publishers.
If the Justice Department lawsuit succeeds, "advertisers and publishers could have more leverage with more options with expanding players – and consequently more competition," said Neil Begley of Moody's Investors Service.
Apple Inc AAPL.O, which is steadily growing its nascent advertising business and promoting it as privacy-focused, could be a winner if Google ads become less effective, said Brian Mandelbaum, chief executive of ad tech company Attain.
Ad industry executives say Google's business in placing ads on websites it does not own gives Google valuable information on an ad's effectiveness.
Apple has "an ability to be a new dominant force," in advertising because Apple has data through its ownership of phones, its Safari web browser and the distribution of apps through the App Store, he said.
Google's competitors in ad tech are increasingly creating products that serve both the publishers like news websites, which sell ad space, and advertisers who buy ads, like Google currently does, said Paul Bannister, chief strategy officer at CafeMedia, which helps small and medium-sized publishers sell ad space.
If Google is forced to divest the tools that serve publishers, it would benefit competitors like Xandr, which is owned by Microsoft MSFT.O, that will still work with both sides of the ad-buying ecosystem, Bannister said.
With more options besides Google, publishers will have more transparency over how much they can sell ad space for, and could end up paying less in fees, Mandelbaum said.
If successful, the lawsuit could be "the beginning of serious business model changes for Google," said Paul Gallant, managing director at Cowen Washington Research Group.
The divested assets could result in Google losing key data that helps target ads to relevant consumers, he said.
If Google loses access to data signals, advertisers could see their Google ads become less effective, said Nikhil Lai, senior analyst at research firm Forrester.
At least twice before, the government has filed lawsuits against dominant companies with far-reaching results. A lawsuit breaking up AT&T, filed in 1974, resulted in an agreement in 1982 to break up the company. That breakup has been credited with a host of innovations in telephony.
The Justice Department's lawsuit against Microsoft, filed in 1998, reined in the company at a time when it was seeking to extend its dominant operating system to the internet browser. While the lawsuit settled, the fight is credited with opening the way for other internet innovators, like Google itself.
U.S. targets Google's online ad business monopoly in latest Big Tech lawsuit
Google says U.S. Justice Department complaint is 'without merit'
Canada competition bureau has court order for Google advertising probe - statement
U.S. consumer watchdog to query tech giants over financial data -sources
FACTBOX-The sun never sets on Google's antitrust woes
FACTBOX-Biden administration continues Trump antitrust focus on tech giants
BREAKINGVIEWS-Frankenstein's watchdog can tame Big Tech monster
BREAKINGVIEWS-Google ad lawsuit reaches back to the future
(Reporting by Sheila Dang and Diane Bartz Editing by Nick Zieminski)
((Sheila.Dang@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.
|
Apple Inc AAPL.O, which is steadily growing its nascent advertising business and promoting it as privacy-focused, could be a winner if Google ads become less effective, said Brian Mandelbaum, chief executive of ad tech company Attain. If the Justice Department lawsuit succeeds, "advertisers and publishers could have more leverage with more options with expanding players – and consequently more competition," said Neil Begley of Moody's Investors Service. If Google is forced to divest the tools that serve publishers, it would benefit competitors like Xandr, which is owned by Microsoft MSFT.O, that will still work with both sides of the ad-buying ecosystem, Bannister said.
|
Apple Inc AAPL.O, which is steadily growing its nascent advertising business and promoting it as privacy-focused, could be a winner if Google ads become less effective, said Brian Mandelbaum, chief executive of ad tech company Attain. By Sheila Dang and Diane Bartz Jan 26 (Reuters) - A landmark lawsuit by the U.S. Justice Department against Alphabet's GOOGL.O Google over its dominance of advertising technology could help rivals and websites that sell ad space, but leaves an uncertain future for the advertisers themselves, experts told Reuters. Google's competitors in ad tech are increasingly creating products that serve both the publishers like news websites, which sell ad space, and advertisers who buy ads, like Google currently does, said Paul Bannister, chief strategy officer at CafeMedia, which helps small and medium-sized publishers sell ad space.
|
Apple Inc AAPL.O, which is steadily growing its nascent advertising business and promoting it as privacy-focused, could be a winner if Google ads become less effective, said Brian Mandelbaum, chief executive of ad tech company Attain. The Justice Department's complaint against Google on Tuesday called for the company to divest Google Ad Manager, a suite of tools including one that lets websites put ad space up for a sale and another that served as an ad marketplace that automatically matched advertisers with those publishers. Google's competitors in ad tech are increasingly creating products that serve both the publishers like news websites, which sell ad space, and advertisers who buy ads, like Google currently does, said Paul Bannister, chief strategy officer at CafeMedia, which helps small and medium-sized publishers sell ad space.
|
Apple Inc AAPL.O, which is steadily growing its nascent advertising business and promoting it as privacy-focused, could be a winner if Google ads become less effective, said Brian Mandelbaum, chief executive of ad tech company Attain. Google's competitors in ad tech are increasingly creating products that serve both the publishers like news websites, which sell ad space, and advertisers who buy ads, like Google currently does, said Paul Bannister, chief strategy officer at CafeMedia, which helps small and medium-sized publishers sell ad space. The Justice Department's lawsuit against Microsoft, filed in 1998, reined in the company at a time when it was seeking to extend its dominant operating system to the internet browser.
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17417.0
|
2023-01-26 00:00:00 UTC
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LG Display posts record loss in Q4 due to weak demand
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AAPL
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https://www.nasdaq.com/articles/lg-display-posts-record-loss-in-q4-due-to-weak-demand
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nan
|
nan
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By Joyce Lee and Heekyong Yang
SEOUL, Jan 27 (Reuters) - South Korean display panel maker LG Display 034220.KS on Friday posted a record operating loss in the December quarter, as global demand for smartphones, computers and televisions remains depressed amid an uncertain economic outlook.
The Apple Inc AAPL.O supplier posted a 876 billion won ($711.13 million) operating loss for the October-December quarter, compared with a profit of 476 billion won in the same period a year earlier.
It missed an average forecast of a 797 billion won loss from 10 analysts polled by Refinitiv SmartEstimate, which is weighted toward analysts that are more consistently accurate.
The loss was due to a continuous decline in mid-sized panel prices and a "high-intensity" effort to control inventory and reduce factory operations, LG Display said in a statement.
Sluggish demand from large European clients for higher-margin large organic light-emitting diode (OLED) TV panels, as well as laptop and monitor manufacturers further weighed, analysts said.
Revenue fell 17% to 7.3 trillion won, LG Display said.
Analysts forecast continued operating losses for the display maker in the current quarter, as consumers cut back spending and businesses slash jobs to ride out harder times.
In order to weather the downturn, LG Display said last month it is stopping production of liquid-crystal display (LCD) TV panels in South Korea.
The display maker has offered voluntary leave of absence for a small number of domestic office workers as well as some production personnel.
Analysts said the company is also reducing LCD panel production in China, and adjusting factory utilisation rates for its flagship OLED panels for TVs.
LG Display said it plans to boost its made-to-order business to increase stability in the face of uncertain market conditions, from 30% of sales currently to 50% of sales by 2024.
($1 = 1,231.8400 won)
(Reporting by Joyce Lee and Heekyong Yang; Editing by Lincoln Feast.)
((joyce.lee@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.
|
The Apple Inc AAPL.O supplier posted a 876 billion won ($711.13 million) operating loss for the October-December quarter, compared with a profit of 476 billion won in the same period a year earlier. The loss was due to a continuous decline in mid-sized panel prices and a "high-intensity" effort to control inventory and reduce factory operations, LG Display said in a statement. Analysts forecast continued operating losses for the display maker in the current quarter, as consumers cut back spending and businesses slash jobs to ride out harder times.
|
The Apple Inc AAPL.O supplier posted a 876 billion won ($711.13 million) operating loss for the October-December quarter, compared with a profit of 476 billion won in the same period a year earlier. By Joyce Lee and Heekyong Yang SEOUL, Jan 27 (Reuters) - South Korean display panel maker LG Display 034220.KS on Friday posted a record operating loss in the December quarter, as global demand for smartphones, computers and televisions remains depressed amid an uncertain economic outlook. The loss was due to a continuous decline in mid-sized panel prices and a "high-intensity" effort to control inventory and reduce factory operations, LG Display said in a statement.
|
The Apple Inc AAPL.O supplier posted a 876 billion won ($711.13 million) operating loss for the October-December quarter, compared with a profit of 476 billion won in the same period a year earlier. By Joyce Lee and Heekyong Yang SEOUL, Jan 27 (Reuters) - South Korean display panel maker LG Display 034220.KS on Friday posted a record operating loss in the December quarter, as global demand for smartphones, computers and televisions remains depressed amid an uncertain economic outlook. The loss was due to a continuous decline in mid-sized panel prices and a "high-intensity" effort to control inventory and reduce factory operations, LG Display said in a statement.
|
The Apple Inc AAPL.O supplier posted a 876 billion won ($711.13 million) operating loss for the October-December quarter, compared with a profit of 476 billion won in the same period a year earlier. By Joyce Lee and Heekyong Yang SEOUL, Jan 27 (Reuters) - South Korean display panel maker LG Display 034220.KS on Friday posted a record operating loss in the December quarter, as global demand for smartphones, computers and televisions remains depressed amid an uncertain economic outlook. It missed an average forecast of a 797 billion won loss from 10 analysts polled by Refinitiv SmartEstimate, which is weighted toward analysts that are more consistently accurate.
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17418.0
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2023-01-26 00:00:00 UTC
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Does This VR News Make Apple Stock a Buy for 2023?
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AAPL
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https://www.nasdaq.com/articles/does-this-vr-news-make-apple-stock-a-buy-for-2023
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nan
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nan
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Apple (NASDAQ: AAPL) could have an epic year in 2023. To kick things off, it has already announced its new M2 Pro and M2 Max chips for its perennially popular MacBook laptop lineup, as well as the reintroduced HomePod smart home speaker. And, of course, an iPhone 15 is certainly coming in the second half of this year.
But the biggest item in the rumor mill that could really launch Apple higher is an augmented and virtual reality (AR/VR, or simply "MR" for mixed reality) headset. Is Apple stock a buy for 2023 ahead of this potentially game-changing news?
An Apple MR headset: The long-awaited next big hit?
Apple has reportedly been working on a mixed reality headset for some time now, but speculation now holds that the company will host an official release event this spring. Bolstering the validity of this rumor last year, CEO Tim Cook spoke about problems with "the metaverse," likely in a marketing tactic to put down existing headsets on the market -- most obviously from rival Facebook parent Meta Platforms' Quest 2 and Quest Pro.
An Apple MR headset will apparently be able to toggle between real-world-view with a digital overlay and a fully immersive virtual experience, including using the headset as a display for a user's Mac or MacBook. And, as can be expected from Apple, a headset will go beyond just integrating with other Apple hardware. The company is also apparently working with media companies like Disney to bring 3D experiences to the MR device, and Apple TV is also reportedly getting some upgrades to support a more immersive viewing experience.
It's clear why Apple would want in on AR/VR, metaverse, Web3, or whatever "next-gen" computing experience term you'd like to apply here. The tech community is already immersed in digital workflows, so making this work more lifelike and efficient has actual real-world value. The kids these days also love binging TV and playing video games, so why not make it even more immersive?
Apple also needs a new hit if it wants to keep growing at a brisk pace. After all, there's only so much profit that can be squeezed from its current breadwinner, the iPhone, by designing new chips for it and for the MacBook lineup. At some point, investors will start demanding a new shot in the arm to keep the growth engine going, and MR could be just the right medicine.
APPLE REVENUE SEGMENT
FISCAL YEAR 2022 REVENUE (12 MONTHS ENDED SEPT. 2022)
YOY % GROWTH
iPhone
$205 billion
7%
Services (software and subscriptions)
$78.1 billion
14%
Wearables, Home, Accessories
$41.2 billion
7%
Mac
$40.2 billion
14%
iPad
$29.3 billion
-8%
Data source: Apple.
Problems before the race has even started?
Getting an ambitious project like an MR headset ready for race day isn't easy, though. Apple has been working on augmented and virtual reality tech for years (Meta, to its unfair detriment, has been vilified for its transparency on how much it costs to launch a new computing device ecosystem). Not all of its efforts will pay off. Apple reportedly has shelved its AR glasses project in lieu of focusing its efforts on a cheaper follow-up headset to the one that will (hopefully) be announced this spring.
That's probably a good move, because reports indicate the first-gen Apple MR headset could cost as much as $3,000. That will be prohibitively expensive for widespread adoption -- especially when the Meta Quest 2 can be had for a few hundred bucks, and the Meta Quest Pro MR headset has a $1,500 price tag.
Nevertheless, Apple has an extensive ecosystem of devoted fans already using iPhones, MacBooks, Watches, and more. If any of those users get interested in MR, there's a good chance they'll take a look at Apple's new product. I expect an Apple MR device to start small, but it could steadily build into a lucrative business within a few years via headset sales and related services and software spending.
Is Apple stock a buy for 2023?
If you thought Apple stock was a buy after the company's final fiscal year 2022 earnings report a few months ago, not much has changed with the business itself since then. The iPhone is still hot, especially in new emerging markets. The Mac could have a great year if it can eat some market share from struggling laptops powered by Intel and AMD. And the iPad and wearable devices like the Watch could continue to put in steady results. Apple is also wildly profitable and is returning excess cash via stock buybacks. A new mixed reality device in 2023 would be gravy.
What has changed in recent months? Share valuation has become quite a bit more reasonable due to the bear market. Apple now trades for 22 times trailing 12-month earnings, and 21 times trailing 12-month free cash flow, as of this writing. Stay tuned for updates in early February after the first-quarter fiscal 2023 financial update. But at this juncture, this is still absolutely a wonderful business to build a portfolio around. Apple stock is a buy in my book.
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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. Nicholas Rossolillo and his clients have positions in Advanced Micro Devices, Apple, Meta Platforms, and Walt Disney. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Intel, Meta Platforms, and Walt Disney. The Motley Fool recommends the following options: long January 2023 $57.50 calls on Intel, long January 2024 $145 calls on Walt Disney, long January 2025 $45 calls on Intel, long March 2023 $120 calls on Apple, short January 2024 $155 calls on Walt Disney, short January 2025 $45 puts on Intel, and short March 2023 $130 calls on 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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Apple (NASDAQ: AAPL) could have an epic year in 2023. To kick things off, it has already announced its new M2 Pro and M2 Max chips for its perennially popular MacBook laptop lineup, as well as the reintroduced HomePod smart home speaker. Apple has been working on augmented and virtual reality tech for years (Meta, to its unfair detriment, has been vilified for its transparency on how much it costs to launch a new computing device ecosystem).
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Apple (NASDAQ: AAPL) could have an epic year in 2023. iPhone $205 billion 7% Services (software and subscriptions) $78.1 billion 14% Wearables, Home, Accessories $41.2 billion 7% Mac $40.2 billion 14% iPad $29.3 billion -8% Data source: Apple. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Intel, Meta Platforms, and Walt Disney.
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Apple (NASDAQ: AAPL) could have an epic year in 2023. An Apple MR headset will apparently be able to toggle between real-world-view with a digital overlay and a fully immersive virtual experience, including using the headset as a display for a user's Mac or MacBook. If you thought Apple stock was a buy after the company's final fiscal year 2022 earnings report a few months ago, not much has changed with the business itself since then.
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Apple (NASDAQ: AAPL) could have an epic year in 2023. Apple has reportedly been working on a mixed reality headset for some time now, but speculation now holds that the company will host an official release event this spring. The company is also apparently working with media companies like Disney to bring 3D experiences to the MR device, and Apple TV is also reportedly getting some upgrades to support a more immersive viewing experience.
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17419.0
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2023-01-26 00:00:00 UTC
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Apple Earnings Preview: Time to Buy AAPL Stock?
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AAPL
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https://www.nasdaq.com/articles/apple-earnings-preview%3A-time-to-buy-aapl-stock
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nan
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nan
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As one of the most popular and successful stocks in recent history, Apple AAPL is always top of mind when it comes to the stock market. The world’s largest public company will be reporting Q1 FY23 earnings Thursday, February 2 after the market closes.
What AAPL does, the stock market follows, so how the tech giant fairs will be a major factor on the stock market as a whole.
With iPhone sales showing early signs of slowing, and supply chain issues slowing production it makes you wonder what the future holds for Apple. On the flip side, Apple is as good as they get when it comes to engineering new products. Being able to diversify the product suite like Apple has done, is an amazing feat, and the culture of innovation is something that should stay with the company for a long time to come.
The last year has been mixed for Apple, down about -10% on the year, but still outperforming the market. Additionally, AAPL stock has fared better than all the other mega cap technology companies, including Amazon AMZN, Google GOOGL, Microsoft MSFT, Meta Platforms META, and Nvidia NVDA.
Image Source: Zacks Investment Research
Expanding Portfolio
Apple's flagship product, the iPhone, has played a critical role in establishing the company as a leader in the tech industry and continues to drive its revenue growth. But Apple’s other products play a major role and have helped it transform into far more than just an iPhone maker.
Apple’s Services offerings including, cloud, App store, Apple Music, AppleCare, Apple Pay and Apple Tv have become a major contributor, especially to the bottom line, as these are high margin products. As the new cash cow, Apple Services is becoming increasingly important to Apple’s business model.
Furthermore, products like the Apple Watch, and AirPods are highly successful, and dominant businesses in their own right.
Apple generated $394.33 billion in total revenue in fiscal 2022, with 52.1% coming from iPhone sales. Services contributed 19.8%, Mac contributed 10.2%, iPad contributed 7.4%, and the combined category of Wearables, Home, and Accessories products pulled in 10.5%.
Image Source: Zacks Investment Research
Earnings Expectations
After growing revenues 33% in FY21 and 8% in FY22, current year sales are projected by Zacks to grow just 2% to $402 billion, as Apple faces a decelerating economy.
Apple’s first quarter sales are expected to shrink -2.2% to $121 billion. Earnings are challenged as well, with FY23 expected to be up 1.1% to $6.18 per share, while Q1 earnings are forecasted to be down -7.6% to $1.94 per share.
Apple looks poised to return to a more substantial expansion with FY24 sales estimated to climb 5.6% to $425 billion, and earnings to climb 8.5% to $6.70 per share.
With these mixed earnings expectations it is no surprise Apple currently has a Zacks Rank #3 (Hold). Earnings revisions, Zacks primary input for the ranking methodology, are trending downward as well. Over the last 90 days Q1 earnings expectations have been lowered from $2.10 per share to $1.94 per share.
On a positive note, Apple has been able to avoid the mass layoffs of the other tech giants like Amazon, Alphabet, Microsoft and Meta Platforms. Alphabet has cut 12,000 jobs, Microsoft 10,000, Amazon 18,000, and Meta 11,000.
Additionally, Apples sales growth over the last few years need to be highlighted. Sales for Apple have grown from $275 billion in 2020 to $400 billion today, which for such a massive and mature company is incredibly impressive.
Image Source: Zacks Investment Research
China Risk
Something I don’t think gets enough attention is the geopolitical risk Apple faces with so much of its production based in China. There is no denying that tensions between the US and China are continuing to grow, and Apple seems it could be a valuable bargaining chip for the world’s second largest economy.
The Covid-19 pandemic shook supply chains and made everyone realize how fragile a globalized production line can be. As the trend towards onshoring production gains momentum, it's worth considering how companies like Apple may mitigate the potential risks, particularly given the significant proportion of their production currently taking place in China.
Valuation
Considering the praise Apple receives today as a business it’s hard to imagine that between 2013 and 2019, investors could buy the stock relatively cheaper than the S&P 500. In 2013 Apple traded with a forward P/E of just 8x.
Today AAPL’s one year forward P/E is 22x earnings, above the index and its ten-year median of 14x. The reasoning is that Apple stock is practically considered as sure an investment as a Treasury bond, and maybe for good reason. Imagine owning the real estate of the little screen we all look at every day, quite powerful.
Also worth noting is Apple’s large cash balance. With nearly $50 billion on hand, and some of the greatest engineering talent in the world, Apple can venture into any vertical they choose. Whether it be cars, healthcare, VR or AR this optionality allows AAPL stock to always have something new to surprise consumers and investors with.
It seems unlikely investors will get an opportunity to buy AAPL stock as cheap as it was in the 2010s. Now well off its all-time highs, a near 20x multiple seems almost reasonable. But the key to this notion is how badly sales will be affected in a recession. What about a bad recession?
Image Source: Zacks Investment Research
Conclusion
Apple is without a doubt an unbelievable business. The iPhone has become a critical part of our lives, and maybe the most influential consumer technology ever. Even more impressive is how Apple has managed to engineer a number of other highly successful hardware and software products, diversifying its income streams.
Apple will likely be around for many years to come, but whether it is a buy today is debatable. With slowing sales from a wavering economy, to geographical, and supply chain risk it is up to investors to decide what they are comfortable with. The earnings report will provide a great deal of insight into the future.
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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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As one of the most popular and successful stocks in recent history, Apple AAPL is always top of mind when it comes to the stock market. What AAPL does, the stock market follows, so how the tech giant fairs will be a major factor on the stock market as a whole. Additionally, AAPL stock has fared better than all the other mega cap technology companies, including Amazon AMZN, Google GOOGL, Microsoft MSFT, Meta Platforms META, and Nvidia NVDA.
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Additionally, AAPL stock has fared better than all the other mega cap technology companies, including Amazon AMZN, Google GOOGL, Microsoft MSFT, Meta Platforms META, and Nvidia NVDA. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. As one of the most popular and successful stocks in recent history, Apple AAPL is always top of mind when it comes to the stock market.
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. As one of the most popular and successful stocks in recent history, Apple AAPL is always top of mind when it comes to the stock market. What AAPL does, the stock market follows, so how the tech giant fairs will be a major factor on the stock market as a whole.
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. As one of the most popular and successful stocks in recent history, Apple AAPL is always top of mind when it comes to the stock market. What AAPL does, the stock market follows, so how the tech giant fairs will be a major factor on the stock market as a whole.
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17420.0
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2023-01-26 00:00:00 UTC
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After Hours Most Active for Jan 26, 2023 : ACWI, AAPL, GEO, ARMK, YEXT, AMD, FOLD, SYF, MTG, UBER, AMZN, WBD
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-jan-26-2023-%3A-acwi-aapl-geo-armk-yext-amd-fold-syf-mtg-uber
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nan
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nan
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The NASDAQ 100 After Hours Indicator is down -54.47 to 11,997.01. The total After hours volume is currently 22,377,916 shares traded.
The following are the most active stocks for the after hours session:
iShares MSCI ACWI ETF (ACWI) is +0.01 at $91.32, with 1,000,769 shares traded. This represents a 20.62% increase from its 52 Week Low.
Apple Inc. (AAPL) is -0.02 at $143.96, with 954,722 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2022. The consensus EPS forecast is $1.94. AAPL is scheduled to provide an earnings report on 2/2/2023, for the fiscal quarter ending Dec2022. The consensus earnings per share forecast is 1.94 per share, which represents a 210 percent increase over the EPS one Year Ago
Geo Group Inc (The) (GEO) is -0.015 at $11.42, with 838,393 shares traded. As reported by Zacks, the current mean recommendation for GEO is in the "strong buy range".
Aramark (ARMK) is +0.015 at $44.46, with 776,808 shares traded. ARMK's current last sale is 98.8% of the target price of $45.
Yext, Inc. (YEXT) is unchanged at $6.74, with 711,211 shares traded. YEXT's current last sale is 112.33% of the target price of $6.
Advanced Micro Devices, Inc. (AMD) is -0.02 at $75.14, with 680,422 shares traded.AMD is scheduled to provide an earnings report on 1/31/2023, for the fiscal quarter ending Dec2022. The consensus earnings per share forecast is 0.52 per share, which represents a 83 percent increase over the EPS one Year Ago
Amicus Therapeutics, Inc. (FOLD) is -0.005 at $13.17, with 676,132 shares traded. As reported in the last short interest update the days to cover for FOLD is 9.608886; this calculation is based on the average trading volume of the stock.
Synchrony Financial (SYF) is unchanged at $36.55, with 650,930 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 $1.29. SYF's current last sale is 91.38% of the target price of $40.
MGIC Investment Corporation (MTG) is -0.015 at $14.33, with 639,322 shares traded.MTG is scheduled to provide an earnings report on 2/1/2023, for the fiscal quarter ending Dec2022. The consensus earnings per share forecast is 0.59 per share, which represents a 61 percent increase over the EPS one Year Ago
Uber Technologies, Inc. (UBER) is -0.02 at $30.00, with 511,102 shares traded. As reported by Zacks, the current mean recommendation for UBER is in the "buy range".
Amazon.com, Inc. (AMZN) is +0.025 at $99.22, with 369,521 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2023. The consensus EPS forecast is $0.35. AMZN is scheduled to provide an earnings report on 2/2/2023, for the fiscal quarter ending Dec2022. The consensus earnings per share forecast is 0.15 per share, which represents a 139 percent increase over the EPS one Year Ago
Warner Bros. Discovery, Inc. (WBD) is -0.015 at $15.00, with 355,463 shares traded. WBD's current last sale is 78.95% of the target price of $19.
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 $143.96, with 954,722 shares traded. AAPL is scheduled to provide an earnings report on 2/2/2023, for the fiscal quarter ending Dec2022. Advanced Micro Devices, Inc. (AMD) is -0.02 at $75.14, with 680,422 shares traded.AMD is scheduled to provide an earnings report on 1/31/2023, for the fiscal quarter ending Dec2022.
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Apple Inc. (AAPL) is -0.02 at $143.96, with 954,722 shares traded. AAPL is scheduled to provide an earnings report on 2/2/2023, for the fiscal quarter ending Dec2022. The consensus earnings per share forecast is 1.94 per share, which represents a 210 percent increase over the EPS one Year Ago
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Apple Inc. (AAPL) is -0.02 at $143.96, with 954,722 shares traded. AAPL is scheduled to provide an earnings report on 2/2/2023, for the fiscal quarter ending Dec2022. The consensus earnings per share forecast is 1.94 per share, which represents a 210 percent increase over the EPS one Year Ago
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Apple Inc. (AAPL) is -0.02 at $143.96, with 954,722 shares traded. AAPL is scheduled to provide an earnings report on 2/2/2023, for the fiscal quarter ending Dec2022. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2022.
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17421.0
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2023-01-26 00:00:00 UTC
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Why This "RAVEN" 10%+ Dividend Strategy Will Win in 2023
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AAPL
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https://www.nasdaq.com/articles/why-this-raven-10-dividend-strategy-will-win-in-2023
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nan
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nan
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These days, it seems like every investor is chasing that one big thing that will make them rich--the newest stock, technology, fad or whatever.
We contrarian dividend investors know these folks well--you probably have a friend or family member who chased down gains in crypto, NFTs, profitless tech or heaven knows what else over the last few years.
Heck, they may have even taken a poke or two at you about your "boring" dividend stocks and closed-end funds (CEFs)!
Then 2022 came along. And while everything got hit last year, we CEF investors had the last laugh, as we could use our funds' 7%+ dividends to pay the bills. And we certainly didn't experience anything like the declines the crypto crowd suffered.
"Fad" Investors Paid a Heavy Price in '22
You're probably nodding as you read along. And to be fair, it is easy to be pulled into these types of investments--especially when we see some of the big profits early investors in crypto and meme stocks made. Trouble is, when the party ends, it ends quickly--and getting out in time to make a profit is largely a matter of luck.
This is gambling, not investing.
So how do we avoid this trap? Well, the one thing to look for is whether the asset in question has real value. If you seek wealth while ignoring value, you'll end up falling for a slew of scams and tricks from shady people.
How to Be a RAVEN
In light of that, I suggest ignoring fads and being what I like to call a RAVEN investor. That stands for "rationally assessing value and examining numbers" (okay, maybe it's not perfect, but it's a simple way to remember what's most important). RAVENs stick to logic and reason, relying on the numbers and precise methodologies to assess the value of all investment opportunities they see.
In the long term, RAVENs win at the investing game. Not only has study after study shown that consistent, long-term investing in high-quality assets provides reliable returns, but long-term investing also means not losing over 70% of your investment! Losses like those are simply impossible--or at least it's very hard to do--if you invest like a RAVEN.
And it's not hard. You just have to follow these four basic rules.
Have a plan and a goal--and stick to them. What works for one investor doesn't work for another. Remember what you're investing for and what you need to get there. Investing isn't about getting the high score, it's about getting the freedom to live the life you want.
Data and facts are king. A lot of investments feel good. That doesn't mean they are good. More than anything, investors who rely on facts over feelings beat everyone else. But that also means you need to be open-minded and willing to change your strategy when the data changes. For most people, that's hard.
The market's mood is never right or wrong. Emotions can't be right or wrong. They can, however, be signals of what is going to happen in the short term, so don't ignore them, but don't let them cloud your judgment, either.
Cash flow creates value--nothing else. If something produces or distributes cash, it always has value. If it doesn't, it might have value for a short period of time, but, like Beanie Babies, it will ultimately be worthless. Focus on producing cash if you want to gain financial independence.
That last rule trips up a lot of people. Take, for example, Apple (AAPL), and compare it to Bitcoin. The former produces a lot of cash: $99.8 billion in 2022, which was 5% more than the prior year and over 80% more than before the pandemic.
Bitcoin, on the other hand, doesn't produce anything. It isn't supposed to, because it's a currency, and currencies don't produce anything. Apple's near-$100 billion-per-year cash flow is much better than Bitcoin's $0 for infinity cash flow, so it's no surprise that Apple has been steadily going up, even after the Bitcoin bubble fully popped.
Steady Long-Term Profits Beat Bubble Timing
And that doesn't mean just companies' cash flow. Your cash flow matters, too. If you need a 7% yield on your investments to cover your expenses, you'll never run out of money if your portfolio yields over 7%. Sticking with low-yielding funds and no-yielding stocks? You have a much higher chance of running out of money.
Fortunately, there are hundreds of CEFs out there that produce such a cash flow and more, while investing in solid companies like Apple.
Take, for instance, one of my long-term favorites, the Liberty All-Star Equity Fund (USA), a 9.9%-yielding fund which has been a long-time Apple holder, alongside Microsoft (MSFT), Amazon (AMZN), Visa (V) and Alphabet (GOOGL). This fund is a good replacement for your low-yielding index fund, since its focus on large-cap American firms has been both a source of stability and strong profits for literally decades.
USA's Strong Long-Term Returns
If you chose USA's dividend cash flow over Bitcoin's zero cash flow, you've secured an income stream for life. That's a far sight better than folks who are gambling in speculative and manipulated markets like crypto. The result for them will likely be the opposite of financial independence.
Get "RAVENs-Only" Access to Our CEF Portfolio (for 10.2% Dividends + Upside)
The best way to make sure you're getting the highest, safest yields out of your CEF buys is through a 60-day trial to my CEF Insider service.
We always stick to the numbers and ignore fads at CEF Insider. And I expect 2023 to be a strong year for our funds. Our portfolio is already up nicely in January, but it's not too late to get in: right now, our CEF Insider holdings are generating a 10.2% average yield and trading at a totally unusual 9.2% discount to their true value, setting the stage for nice upside this year.
Speaking of monthly payouts, I've also combed through the entire CEF universe to dig up the 5 best monthly paying CEFs to buy now. These stout funds yield 8.9% and come from across the economy, including funds that hold bonds, blue chip US stocks, top international stocks and more.
All you have to do is click here and I'll reveal how to get a FREE copy of my Special Report detailing these 5 reliable 8.9%-yielding monthly payers. Plus you'll get full access to CEF Insider through my exclusive 60-day trial offer, too!
Also see:
Warren Buffett Dividend Stocks
Dividend Growth Stocks: 25 Aristocrats
Future Dividend Aristocrats: Close Contenders
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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Take, for example, Apple (AAPL), and compare it to Bitcoin. These days, it seems like every investor is chasing that one big thing that will make them rich--the newest stock, technology, fad or whatever. We contrarian dividend investors know these folks well--you probably have a friend or family member who chased down gains in crypto, NFTs, profitless tech or heaven knows what else over the last few years.
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Take, for example, Apple (AAPL), and compare it to Bitcoin. Not only has study after study shown that consistent, long-term investing in high-quality assets provides reliable returns, but long-term investing also means not losing over 70% of your investment! If you chose USA's dividend cash flow over Bitcoin's zero cash flow, you've secured an income stream for life.
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Take, for example, Apple (AAPL), and compare it to Bitcoin. Not only has study after study shown that consistent, long-term investing in high-quality assets provides reliable returns, but long-term investing also means not losing over 70% of your investment! Apple's near-$100 billion-per-year cash flow is much better than Bitcoin's $0 for infinity cash flow, so it's no surprise that Apple has been steadily going up, even after the Bitcoin bubble fully popped.
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Take, for example, Apple (AAPL), and compare it to Bitcoin. These days, it seems like every investor is chasing that one big thing that will make them rich--the newest stock, technology, fad or whatever. That doesn't mean they are good.
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17422.0
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2023-01-26 00:00:00 UTC
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These 3 Companies Can't Get Enough of Their Own Stock
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AAPL
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https://www.nasdaq.com/articles/these-3-companies-cant-get-enough-of-their-own-stock
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nan
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nan
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Stock buybacks, also regularly known as share repurchase programs, are a common strategy we see implemented by companies.
There are several reasons companies elect to buy back their stock; they’ve decided to utilize excess cash, they want to limit dilution caused by employee stock option programs, or simply because they believe their shares are undervalued.
Three companies – Chevron CVX, Kinder Morgan KMI, and Agilent Technologies A – have all announced repurchase programs in 2023. Below is a chart illustrating the performance of all three over the last year, with the S&P 500 blended in as a benchmark.
Image Source: Zacks Investment Research
Let’s take a closer look at how each one stacks up.
Chevron
Chevron is one of the world's largest publicly traded oil and gas companies, with operations that span almost every corner of the globe. Yesterday, the company announced a sizable $75 billion share repurchase program.
The recent surge in energy prices has benefitted the company in a big way; CVX reported free cash flow of a steep $12.3 billion in its latest quarter, good enough for a 16% sequential uptick and an 84% Y/Y increase.
As we can see in the chart below, Chevron has been a cash-generating machine.
Image Source: Zacks Investment Research
In addition, the company’s dividend is in decent shape, currently yielding 3.2% annually paired with a sustainable payout ratio sitting at 33% of its earnings.
Image Source: Zacks Investment Research
Most importantly, the company is scheduled to release quarterly results tomorrow, January 27th, before the market open. Currently, the Zacks Consensus EPS Estimate of $4.16 suggests a 62% Y/Y increase in earnings.
And our consensus revenue estimate stands firm at $52.3 billion, suggesting an improvement of nearly 9% from the year-ago quarter.
Image Source: Zacks Investment Research
Kinder Morgan
Kinder Morgan is a leading midstream energy infrastructure provider in North America. Earlier in the year, KMI increased its previously authorized $2 billion stock buyback to $3 billion.
An increase in energy prices has helped Kinder Morgan increasingly reward its shareholders; KMI’s dividend payout grew nearly 3% over the last year, currently yielding a steep 6% annually.
Image Source: Zacks Investment Research
Impressively, last year marked the fifth consecutive year of increased payouts.
Image Source: Zacks Investment Research
Agilent Technologies
Agilent is an original equipment manufacturer (OEM) of a broad-based portfolio of test and measurement products serving multiple end markets. Currently, the company sports the highly-coveted Zacks Rank #1 (Strong Buy).
On January 9th, Agilent approved a fresh $2 billion share repurchase program.
Agilent has reported strong results as of late, exceeding the Zacks Consensus EPS Estimate by double-digit percentages in back-to-back releases. Just in its latest print, the company posted a 10% EPS beat and reported sales nearly 5% above expectations.
Image Source: Zacks Investment Research
The company does pay a dividend, currently yielding a modest 0.6%. Still, while the yield may be on the lower end of the spectrum, Agilent’s 8.6% five-year annualized dividend growth rate helps bridge the gap.
Image Source: Zacks Investment Research
Bottom Line
Buybacks have been common in recent years, with titans such as Alphabet GOOGL, Apple AAPL, and Microsoft MSFT also regularly joining in on the fun.
Buybacks send a positive message to investors, indicating that the company is confident in its future prospects.
All three companies above – Chevron CVX, Kinder Morgan KMI, and Agilent Technologies A – have recently announced repurchase programs, with investors cheering on the news.
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Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Chevron Corporation (CVX) : Free Stock Analysis Report
Agilent Technologies, Inc. (A) : Free Stock Analysis Report
Kinder Morgan, Inc. (KMI) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Image Source: Zacks Investment Research Bottom Line Buybacks have been common in recent years, with titans such as Alphabet GOOGL, Apple AAPL, and Microsoft MSFT also regularly joining in on the fun. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Chevron Corporation (CVX) : Free Stock Analysis Report Agilent Technologies, Inc. (A) : Free Stock Analysis Report Kinder Morgan, Inc. (KMI) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. The recent surge in energy prices has benefitted the company in a big way; CVX reported free cash flow of a steep $12.3 billion in its latest quarter, good enough for a 16% sequential uptick and an 84% Y/Y increase.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Chevron Corporation (CVX) : Free Stock Analysis Report Agilent Technologies, Inc. (A) : Free Stock Analysis Report Kinder Morgan, Inc. (KMI) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. Image Source: Zacks Investment Research Bottom Line Buybacks have been common in recent years, with titans such as Alphabet GOOGL, Apple AAPL, and Microsoft MSFT also regularly joining in on the fun. Image Source: Zacks Investment Research Kinder Morgan Kinder Morgan is a leading midstream energy infrastructure provider in North America.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Chevron Corporation (CVX) : Free Stock Analysis Report Agilent Technologies, Inc. (A) : Free Stock Analysis Report Kinder Morgan, Inc. (KMI) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. Image Source: Zacks Investment Research Bottom Line Buybacks have been common in recent years, with titans such as Alphabet GOOGL, Apple AAPL, and Microsoft MSFT also regularly joining in on the fun. Image Source: Zacks Investment Research In addition, the company’s dividend is in decent shape, currently yielding 3.2% annually paired with a sustainable payout ratio sitting at 33% of its earnings.
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Image Source: Zacks Investment Research Bottom Line Buybacks have been common in recent years, with titans such as Alphabet GOOGL, Apple AAPL, and Microsoft MSFT also regularly joining in on the fun. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Chevron Corporation (CVX) : Free Stock Analysis Report Agilent Technologies, Inc. (A) : Free Stock Analysis Report Kinder Morgan, Inc. (KMI) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. Three companies – Chevron CVX, Kinder Morgan KMI, and Agilent Technologies A – have all announced repurchase programs in 2023.
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17423.0
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2023-01-26 00:00:00 UTC
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What Does Apple's Move to India Mean for Investors?
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AAPL
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https://www.nasdaq.com/articles/what-does-apples-move-to-india-mean-for-investors
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nan
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nan
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Apple Inc (NASDAQ: APPL) wants to increase its manufacturing presence in India and sidestep its reliance on Chinese manufacturing capabilities.
The company intends to create 25% of all of its iPhones on Indian soil, which is part of its broader pivot of having 40% of its devices made outside China. JP Morgan analysts have poured over this development and come to the tentative conclusion that the brand could make a move by 2025 at the earliest.
But what does this move mean for Apple investors? First, let's break down some of the likely implications.
What will Apple's move to India mean for investors?
In the short term, there could be a negative impact on Apple's stock price due to the costs associated with such a significant shift in production. This could include the costs of finding new suppliers, establishing new facilities, and retraining staff. Additionally, there could be a disruption in the production pipeline, leading to a decrease in sales and a corresponding decrease in profits.
Apple has a significant presence in China. It's estimated that it has around 156 production facilities within Chinese borders, accounting for 25.36% of its total facilities. This could cause significant disruptions to its operations and likely see a substantial corresponding increase in Apple's capital expenditures in India to replace them.
However, the move could positively impact Apple's stock price in the longer term. Moving production out of China would reduce the company's exposure to trade tensions and tariffs. These tensions could likely escalate as China continues to signal its intentions to invade Taiwan, which it has promised to do since the Chinese Communist Party came into power in 1949.
If the invasion happens as promised, corporations with a significant production presence in the country will face a geopolitical disaster. This can be observed in Russia's invasion of Ukraine, which tore through US-listed firms' balance sheets in Russia, such as McDonald's (NYSE: MCD), which made a $1.36 billion loss on its way out. Apple could therefore be prepared for this contingency in the red nation.
Apple could reap cost savings
On a more positive side, India's large population, cost-competitive labor, and focus on technology could enable Apple to produce products cost-effectively and efficiently. This could result in increased profits and increased Apple's stock price.
China might not be the manufacturing dragon it used to be, partially due to the rising production costs in the country. Meanwhile, other developing nations such as India, Vietnam, and Indonesia are decreasing China's market share of the world's manufacturing output.
A significant driver of this change is China's productivity and wages per person increase. As a result, China's real GDP per capita stands at $12,556; in 2000, that number stood at less than $1,000. India, on the other hand, has a GDP per capita of $2,256.
As a proxy for the country's cost and standard of living, India has better economics to help support Apple's production since their workers can be paid less while still delivering quality products. Indias is also not in NATO, so if a conflict does arrive across the Taiwan strait, one could expect it to remain objectively neutral despite its agitations towards China.
Cutting costly taxes and tariffs
A direct cost that Apple could save money on is import duties if India can ramp up its production of components. Nowadays, India is assembling parts of Apple devices from China. This incurs heavy import duties from these parts shipped overseas to Apple's OEM in India. A duty of 22% is levied on the base price of the phones, and then there's 18% GST on top of that.
A reduction in the costly levies could be passed from Apple to Indian consumers, a market in which it has struggled to gain market penetration due to its premium price tag and the country's low wages. As a swiftly developing nation with a roaring middle class akin to China's boom in the 90s and 2000s, Apple could be positioning itself to take advantage of India's rise and taste for (now more affordable) premium products from the western world.
The times of India recently reported that "The share of the middle class, with an annual household income of Rs 5-30 lakh, more than doubled from 14% in 2004-05 to 31% last year, and is projected to rise to 63% by 2047".
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 tensions could likely escalate as China continues to signal its intentions to invade Taiwan, which it has promised to do since the Chinese Communist Party came into power in 1949. As a swiftly developing nation with a roaring middle class akin to China's boom in the 90s and 2000s, Apple could be positioning itself to take advantage of India's rise and taste for (now more affordable) premium products from the western world. The times of India recently reported that "The share of the middle class, with an annual household income of Rs 5-30 lakh, more than doubled from 14% in 2004-05 to 31% last year, and is projected to rise to 63% by 2047".
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However, the move could positively impact Apple's stock price in the longer term. This could result in increased profits and increased Apple's stock price. Meanwhile, other developing nations such as India, Vietnam, and Indonesia are decreasing China's market share of the world's manufacturing output.
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Apple Inc (NASDAQ: APPL) wants to increase its manufacturing presence in India and sidestep its reliance on Chinese manufacturing capabilities. Apple could reap cost savings On a more positive side, India's large population, cost-competitive labor, and focus on technology could enable Apple to produce products cost-effectively and efficiently. As a swiftly developing nation with a roaring middle class akin to China's boom in the 90s and 2000s, Apple could be positioning itself to take advantage of India's rise and taste for (now more affordable) premium products from the western world.
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This could result in increased profits and increased Apple's stock price. China might not be the manufacturing dragon it used to be, partially due to the rising production costs in the country. Meanwhile, other developing nations such as India, Vietnam, and Indonesia are decreasing China's market share of the world's manufacturing output.
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17424.0
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2023-01-26 00:00:00 UTC
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Chevron Delights Shareholders with $75 Billion in Share Buybacks
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AAPL
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https://www.nasdaq.com/articles/chevron-delights-shareholders-with-%2475-billion-in-share-buybacks
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nan
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nan
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Before the company’s earnings report on January 27, Chevron Corporation (NYSE: CVX) announced a $75 billion share buyback program. This triples the company’s budget for share buybacks. Not surprisingly, CVX stock is up nearly 3% in morning trading.
The company is also increasing its quarterly dividend by 6%. That means that shareholders of record on February 16, 2023, will receive a dividend of $1.51 per share on March 10, 2023.
Analysts and investors were not surprised by either announcement. Chevron expects to report full-year profits of $37.2 billion when it delivers its earnings report. The news is good news for shareholders of CVX stock.
But not everyone is thrilled with the news.
Cue the Outrage
Chevron’s stock buyback announcement is being met by criticism from the Biden administration. The administration has been critical of oil companies for what it sees as “excessive profits” in 2022.
The argument is that Chevron, along with other oil giants, is not doing enough to ease consumers' prices for gas. And what exactly does that “more” look like? For the administration, it means that Chevron and other oil companies, such as Exxon Mobil Corporation (NYSE: XOM), would put more of their profits into drilling, acquisitions, or reducing consumer prices.
It should be noted, however, that Chevron is likely to report that it spent $17 billion on new oil and gas projects in 2022. That’s a $2 billion increase from the prior year. And as I wrote earlier for MarketBeat, Chevron is expecting its total capital and exploratory expenditures (C&E) to average between $15 billion and $17 billion per year through 2025.
The counterargument would be that the company’s C&E expenditures are a fraction of what shareholders receive. This at a time when stakeholder capitalism in the form of the ESG (environmental, sustainability, and governance) movement is garnering headlines.
However, the issue becomes a little more complex when put into context with some of the recent actions of tech companies. Apple Inc. (NASDAQ: AAPL), as of the quarter ended in September 2022, has announced $405 billion in buybacks and $90 billion in share repurchases in the prior 12 months.
Apple’s market cap is more than 6x that of Chevron, which makes their buyback and share repurchase initiatives roughly equal to that of Chevron.
What Are the Analysts Saying?
Since the beginning of the year, five analysts have weighed in on CVX stock. Two have lowered their rating from Buy to Neutral. However, all five have increased their price target for Chevron stock, which is currently trading near the top of its 52-week range.
Of course, most analysts won’t give a verdict on the stock until after the company reports earnings. They will undoubtedly be waiting for the company’s outlook on macroeconomic conditions that would affect the price of oil.
Opinions on the direction of oil prices are mixed. Some economists believe that a recession will curb demand. But others are seeing the reopening of China and the continued strength in travel demand by U.S. consumers as being bullish for oil prices.
However, oil stocks have always been cyclical stocks. If you’re going to invest in an oil stock, you’ll want to look at companies with strong cash balances that can help the company continue to provide shareholder value regardless of what is happening with oil prices. Chevron offers that value and merits consideration as a growth and income investment.
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), as of the quarter ended in September 2022, has announced $405 billion in buybacks and $90 billion in share repurchases in the prior 12 months. Before the company’s earnings report on January 27, Chevron Corporation (NYSE: CVX) announced a $75 billion share buyback program. For the administration, it means that Chevron and other oil companies, such as Exxon Mobil Corporation (NYSE: XOM), would put more of their profits into drilling, acquisitions, or reducing consumer prices.
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Apple Inc. (NASDAQ: AAPL), as of the quarter ended in September 2022, has announced $405 billion in buybacks and $90 billion in share repurchases in the prior 12 months. Before the company’s earnings report on January 27, Chevron Corporation (NYSE: CVX) announced a $75 billion share buyback program. Cue the Outrage Chevron’s stock buyback announcement is being met by criticism from the Biden administration.
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Apple Inc. (NASDAQ: AAPL), as of the quarter ended in September 2022, has announced $405 billion in buybacks and $90 billion in share repurchases in the prior 12 months. Before the company’s earnings report on January 27, Chevron Corporation (NYSE: CVX) announced a $75 billion share buyback program. For the administration, it means that Chevron and other oil companies, such as Exxon Mobil Corporation (NYSE: XOM), would put more of their profits into drilling, acquisitions, or reducing consumer prices.
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Apple Inc. (NASDAQ: AAPL), as of the quarter ended in September 2022, has announced $405 billion in buybacks and $90 billion in share repurchases in the prior 12 months. Before the company’s earnings report on January 27, Chevron Corporation (NYSE: CVX) announced a $75 billion share buyback program. If you’re going to invest in an oil stock, you’ll want to look at companies with strong cash balances that can help the company continue to provide shareholder value regardless of what is happening with oil prices.
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17425.0
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2023-01-26 00:00:00 UTC
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Should You Invest in the iShares Expanded Tech Sector ETF (IGM)?
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AAPL
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https://www.nasdaq.com/articles/should-you-invest-in-the-ishares-expanded-tech-sector-etf-igm-5
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nan
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Launched on 03/13/2001, the iShares Expanded Tech Sector ETF (IGM) is a passively managed exchange traded fund designed to provide a broad exposure to the Technology - Broad segment of the equity market.
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
Sector ETFs are also funds of convenience, offering many ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Technology - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 5, placing it in top 31%.
Index Details
The fund is sponsored by Blackrock. It has amassed assets over $2.47 billion, making it one of the larger ETFs attempting to match the performance of the Technology - Broad segment of the equity market. IGM seeks to match the performance of the S&P North American Technology Sector Index before fees and expenses.
The S&P North American Expanded Technology Sector Index comprises of North American equities in the technology sector and select North American equities from communication services to consumer discretionary sectors.
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 0.40%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 0.48%.
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 in the Information Technology sector--about 75.30% of the portfolio. Telecom and Consumer Discretionary round out the top three.
Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 8.21% of total assets, followed by Amazon Com Inc (AMZN) and Apple Inc (AAPL).
The top 10 holdings account for about 8.21% of total assets under management.
Performance and Risk
Year-to-date, the iShares Expanded Tech Sector ETF return is roughly 9.74% so far, and is down about -17.27% over the last 12 months (as of 01/26/2023). IGM has traded between $266.47 and $404.12 in this past 52-week period.
The ETF has a beta of 1.15 and standard deviation of 31.80% for the trailing three-year period, making it a medium risk choice in the space. With about 334 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Expanded Tech Sector ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, IGM is an excellent option for investors seeking exposure to the Technology ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
Technology Select Sector SPDR ETF (XLK) tracks Technology Select Sector Index and the Vanguard Information Technology ETF (VGT) tracks MSCI US Investable Market Information Technology 25/50 Index. Technology Select Sector SPDR ETF has $40.21 billion in assets, Vanguard Information Technology ETF has $42.56 billion. XLK has an expense ratio of 0.10% and VGT charges 0.10%.
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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iShares Expanded Tech Sector ETF (IGM): 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
Technology Select Sector SPDR ETF (XLK): ETF Research Reports
Vanguard Information Technology ETF (VGT): 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, Microsoft Corp (MSFT) accounts for about 8.21% of total assets, followed by Amazon Com Inc (AMZN) and Apple Inc (AAPL). Click to get this free report iShares Expanded Tech Sector ETF (IGM): 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 Technology Select Sector SPDR ETF (XLK): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. It has amassed assets over $2.47 billion, making it one of the larger ETFs attempting to match the performance of the Technology - Broad segment of the equity market.
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Click to get this free report iShares Expanded Tech Sector ETF (IGM): 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 Technology Select Sector SPDR ETF (XLK): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 8.21% of total assets, followed by Amazon Com Inc (AMZN) and Apple Inc (AAPL). The S&P North American Expanded Technology Sector Index comprises of North American equities in the technology sector and select North American equities from communication services to consumer discretionary sectors.
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Click to get this free report iShares Expanded Tech Sector ETF (IGM): 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 Technology Select Sector SPDR ETF (XLK): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 8.21% of total assets, followed by Amazon Com Inc (AMZN) and Apple Inc (AAPL). Technology Select Sector SPDR ETF (XLK) tracks Technology Select Sector Index and the Vanguard Information Technology ETF (VGT) tracks MSCI US Investable Market Information Technology 25/50 Index.
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Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 8.21% of total assets, followed by Amazon Com Inc (AMZN) and Apple Inc (AAPL). Click to get this free report iShares Expanded Tech Sector ETF (IGM): 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 Technology Select Sector SPDR ETF (XLK): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. Launched on 03/13/2001, the iShares Expanded Tech Sector ETF (IGM) is a passively managed exchange traded fund designed to provide a broad exposure to the Technology - Broad segment of the equity market.
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17426.0
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2023-01-26 00:00:00 UTC
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The Best Fintech Stock to Buy in 2023
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AAPL
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https://www.nasdaq.com/articles/the-best-fintech-stock-to-buy-in-2023
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nan
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nan
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One of the most exciting secular growth trends that investors should be paying attention to if they aren't already is the advent of fintech and digital payments businesses. The large traditional banks were too slow to incorporate technology to improve their user experiences to prevent being disrupted. And now there are numerous companies encroaching on their territory.
One such fintech pioneer, Block (NYSE: SQ), should be on every investor's radar right now. JPMorgan Chase Chief Executive Officer Jamie Dimon even said the business, formerly known as Square, "innovated where we should have."
Here's why I think it deserves a closer look as a potential portfolio addition in 2023.
Two budding ecosystems
What makes Block an impressive business is that it has two outstanding segments. Its Square unit provides financial services, software, and hardware solutions to small merchants that want to seamlessly accept card payments from customers, as well as handle payroll, invoicing, and loyalty programs, among many other services. During the most recent quarter (Q3 2022 ended Sept. 30), Square's gross profit increased 29% year over year. And the segment processed gross payment volume of $50 billion, which was up 20% year over year.
There's also Cash App, the popular personal finance mobile app targeted at individuals, which was the No. 2-ranked finance app on the Apple App Store, behind only Intuit's TurboTax. Cash App lets its users buy stocks, trade Bitcoin, send and receive peer-to-peer payments, and get debit cards.
Cash App, like Square, is posting stellar growth. Gross profit for the segment of $774 million represented an increase of 51% year over year. And in September of last year, Cash App counted 49 million monthly active users, with 18 million active Cash App Card customers.
These two ecosystems would be great companies on their own, but Block is finding ways to strengthen the ties between them. Cash App Pay lets customers make purchases at Square merchants directly with their Cash App balances utilizing a QR code. And with the addition of buy now, pay later specialist Afterpay, Cash App customers and Square sellers are further integrated thanks to the payment installment service.
Huge upside
Block's past growth has been tremendous, but there is still a sizable opportunity ahead. According to the management team, the company has a $120 billion gross profit opportunity, one that keeps increasing. Since it's continuing to expand its product offerings while further penetrating existing regions and entering new ones, Block's story is far from over.
Another upside is the resurgence of Bitcoin, which has soared 38% so far in 2023. If the top cryptocurrency's momentum continues, it could be a boon for Cash App in terms of attracting new users and getting its existing ones to add more money to the platform to buy Bitcoin.
Despite general macroeconomic weakness, Square and Cash App continue to demonstrate that they can grow in this environment. And with $7.1 billion of liquidity, compared to long-term debt of $4.6 billion, shareholders have peace of mind that the business will weather any recession in the near term.
The beauty of payments enterprises is that they can be extremely lucrative at scale. For example, just look at the two dominant card networks, Visa and Mastercard. These behemoths have pristine income statements. Visa's and Mastercard's net income margins were 51% and 43%, respectively, in their latest fiscal quarters.
And then there's PayPal, which has experienced a bit of a slowdown in recent quarters, but still generated free cash flow of $1.8 billion in the third quarter of 2022 on revenue of $6.9 billion. That translates to an incredible margin of 26%.
To be clear, with its Square and Cash App segments, Block obviously doesn't have exactly the same business model as Visa, Mastercard, or PayPal. However, Block does benefit from operating leverage. The marginal cost to process each additional transaction for its merchant base or its individual users is negligible because the network infrastructure is already largely built out. Therefore, as revenue and gross profit continue climbing in the years ahead, Block's margins will expand, and the hope is that it becomes very profitable.
At a price-to-sales multiple of 2.5 today, investors shouldn't hesitate to add this wonderful company to their portfolios in 2023.
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JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Neil Patel has positions in Bitcoin and Block. The Motley Fool has positions in and recommends Apple, Bitcoin, Block, Intuit, JPMorgan Chase, Mastercard, PayPal, and Visa. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on 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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And with the addition of buy now, pay later specialist Afterpay, Cash App customers and Square sellers are further integrated thanks to the payment installment service. If the top cryptocurrency's momentum continues, it could be a boon for Cash App in terms of attracting new users and getting its existing ones to add more money to the platform to buy Bitcoin. The marginal cost to process each additional transaction for its merchant base or its individual users is negligible because the network infrastructure is already largely built out.
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And in September of last year, Cash App counted 49 million monthly active users, with 18 million active Cash App Card customers. Cash App Pay lets customers make purchases at Square merchants directly with their Cash App balances utilizing a QR code. The Motley Fool has positions in and recommends Apple, Bitcoin, Block, Intuit, JPMorgan Chase, Mastercard, PayPal, and Visa.
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And in September of last year, Cash App counted 49 million monthly active users, with 18 million active Cash App Card customers. Cash App Pay lets customers make purchases at Square merchants directly with their Cash App balances utilizing a QR code. To be clear, with its Square and Cash App segments, Block obviously doesn't have exactly the same business model as Visa, Mastercard, or PayPal.
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According to the management team, the company has a $120 billion gross profit opportunity, one that keeps increasing. To be clear, with its Square and Cash App segments, Block obviously doesn't have exactly the same business model as Visa, Mastercard, or PayPal. The Motley Fool has positions in and recommends Apple, Bitcoin, Block, Intuit, JPMorgan Chase, Mastercard, PayPal, and Visa.
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17427.0
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2023-01-26 00:00:00 UTC
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1 Growth Stock Down 15% to Buy Right Now
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AAPL
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https://www.nasdaq.com/articles/1-growth-stock-down-15-to-buy-right-now
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nan
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nan
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The stock market has been dragged down over the past year, with the Russell 3000 dropping by 10%. But growth stocks, losing 16%, have fared worse than the broad market. That's because many traded at higher valuations than their value counterparts and were more susceptible to higher interest rates and market downturns.
Apple (NASDAQ: AAPL) has seen its share price fall by 15% during this time. But that shouldn't scare off investors. The company still has a lot going for it, and there are several reasons you should consider this a buying opportunity.
Image source: Getty Images.
Loyal customers
Apple's customers remain very loyal to the brand. Getting customers to keep coming back remains encouraging. After all, what's a better testament for a company?
In October 2021, research group CIRP showed that more than 90% of iPhone users purchased the same brand when buying a new smartphone over the previous 12 months. It was also at this level for the prior two years. That compares favorably to rivals such as Samsung Electronics (FRA: SSU), with less than 70%.
Apple's iPhone continues to take market share from rival smartphone makers. In the U.S., it now accounts for more than 50% of smartphones used.
While the company certainly has other products, iPhones account for a large portion of Apple's sales. In its latest fiscal year, which ended on Sept. 24, 2022, iPhones were 52% of the company's top line.
A good lineup
Apple released a new iPhone version in September. Although it was only sold for less than a month, fourth-quarter sales of the devices increased by 9.7% to $42.7 billion.
Management has also been taking steps to increase the iPhone's profitability. This includes moving away from relying on costly third-party providers and producing more parts internally.
While iPhones represent the biggest slice of the sales pie, Apple has other growth areas. This includes services, such as advertising, technical support, and the App Store. As the second biggest source of sales, it grew by 5% in the latest quarter to $19.2 billion. While sales growth slowed from earlier in the year, management blamed it on temporary factors such as foreign currency exchange translations. On a constant currency basis, it said sales rose by double digits.
Returning cash
The business produces a healthy amount of free cash flow (FCF). Last year's FCF was $110.4 billion. Management has been returning a lot of it to shareholders, primarily via repurchases. In the latest year, it spent $89.4 billion on buying back shares.
The company also spent $14.8 billion on dividends. While the 0.7% dividend yield trails the S&P 500's 1.7%, Apple has raised the dividend payment annually since 2012. That includes last April, when it increased the quarterly payout by 5% to $0.23.
It's encouraging when a company can continue investing in new products, grow sales and profit, and return cash to shareholders. Plus, the stock's valuation has become more compelling. The trailing price-to-earnings ratio (P/E) has dropped to 23. By way of contrast, the P/E was over 40 at the start of 2021 and more than 30 a year ago.
A company like Apple won't sell at this valuation for long. That adds up to a compelling opportunity for this growth stock.
10 stocks we like better than Apple
When our award-winning 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 January 9, 2023
Lawrence Rothman, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on 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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Apple (NASDAQ: AAPL) has seen its share price fall by 15% during this time. In October 2021, research group CIRP showed that more than 90% of iPhone users purchased the same brand when buying a new smartphone over the previous 12 months. While sales growth slowed from earlier in the year, management blamed it on temporary factors such as foreign currency exchange translations.
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Apple (NASDAQ: AAPL) has seen its share price fall by 15% during this time. Loyal customers Apple's customers remain very loyal to the brand. In the latest year, it spent $89.4 billion on buying back shares.
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Apple (NASDAQ: AAPL) has seen its share price fall by 15% during this time. While the company certainly has other products, iPhones account for a large portion of Apple's sales. See the 10 stocks *Stock Advisor returns as of January 9, 2023 Lawrence Rothman, CFA has no position in any of the stocks mentioned.
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Apple (NASDAQ: AAPL) has seen its share price fall by 15% during this time. Apple's iPhone continues to take market share from rival smartphone makers. Last year's FCF was $110.4 billion.
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17428.0
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2023-01-26 00:00:00 UTC
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4 Set-It-and-Forget-It Stocks
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AAPL
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https://www.nasdaq.com/articles/4-set-it-and-forget-it-stocks
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nan
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nan
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Investing in great companies doesn't have to mean tracking them day in and day out. Great companies can be held for decades, so investors can set an investment and forget it. Motley Fool contributors Travis Hoium and Lou Whiteman discuss four stocks that they think will be excellent buys for decades to come.
*Stock prices used were end-of-day prices of Jan. 19, 2023. The video was published on Jan. 25, 2023.
10 stocks we like better than TransDigm Group
When our award-winning 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 TransDigm Group 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 January 9, 2023
Lou Whiteman has positions in TransDigm Group. Travis Hoium has positions in Apple and Rivian Automotive and has the following options: long January 2023 $15 puts on Blink Charging and long March 2023 $250 puts on Tesla. The Motley Fool has positions in and recommends Apple and Tesla. The Motley Fool recommends Heico and TransDigm Group and recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy. Travis Hoium is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link, they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Great companies can be held for decades, so investors can set an investment and forget it. Motley Fool contributors Travis Hoium and Lou Whiteman discuss four stocks that they think will be excellent buys for decades to come. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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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 January 9, 2023 Lou Whiteman has positions in TransDigm Group. The Motley Fool recommends Heico and TransDigm Group and recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple.
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Motley Fool contributors Travis Hoium and Lou Whiteman discuss four stocks that they think will be excellent buys for decades to come. See the 10 stocks *Stock Advisor returns as of January 9, 2023 Lou Whiteman has positions in TransDigm Group. The Motley Fool recommends Heico and TransDigm Group and recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple.
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Motley Fool contributors Travis Hoium and Lou Whiteman discuss four stocks that they think will be excellent buys for decades to come. * They just revealed what they believe are the ten best stocks for investors to buy right now... and TransDigm Group wasn't one of them! See the 10 stocks *Stock Advisor returns as of January 9, 2023 Lou Whiteman has positions in TransDigm Group.
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17429.0
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2023-01-26 00:00:00 UTC
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2 Warren Buffett Stocks That Could Crush the Market in 2023
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AAPL
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https://www.nasdaq.com/articles/2-warren-buffett-stocks-that-could-crush-the-market-in-2023
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nan
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nan
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If you want to beat the market, there's no one better to follow than Warren Buffett.
The compound annual growth from Buffett's company, Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B), has nearly doubled the S&P 500's annual return of almost 60 years, making early investors millionaires and Buffett one of the richest people in the world.
In characteristic fashion, Berkshire Hathaway beat the S&P 500 last year, gaining 3% compared to a 19% loss for the broad-market index.
Looking ahead to 2023, here are two Buffett stocks that appear poised to outperform.
Image source: The Motley Fool.
1. Apple
Apple (NASDAQ: AAPL), which is Berkshire's top holding, has gotten a fast start out of the gate, with shares of the iPhone maker up 10% to start the year.
Apple stock fell 27% last year, and it's starting to look like the sell-off was overblown. Demand for the iPhone 14 remains strong, according to the company's update in November, and it also looks poised to benefit from the weakening dollar. In fact, Apple's guidance of a 10-percentage-point headwind in its December quarterly report seems overly conservative and should help the company beat estimates in its upcoming earnings report.
The iPhone maker is also the only one of the big tech companies, including Alphabet, Microsoft, Amazon, and Meta Platforms, to have not issued major layoffs. Rather than ramping up headcount during the pandemic like many of its peers in the tech industry did, Apple grew its employee base judiciously. From September 2020 to September 2022, it added 17,000 employees, growing its workforce by 12%, even though its revenue jumped by a total of 44% during that period.
The decision not to over-hire puts Apple in a much better position than its peers, and it can capitalize on the opportunity in the layoffs at other tech companies by hiring their talent.
Finally, the company is set to introduce a new mixed-reality headset in June, priced at as much as $3,000. The device has the potential to be a game-changer and could put Apple in the lead in the metaverse, ahead of Meta Platforms.
The business remains a cash machine and spins off enough cash to support a healthy buyback program, but the stock trades at just a slight premium to the S&P 500 at a price-to-earnings ratio of 23. If the economy starts to recover in 2023, Apple could soar.
2. RH
RH (NYSE: RH), the company formerly known as Restoration Hardware, might not fit the conventional definition of a Buffett stock. But RH is cheap and has proven its competitive advantages, carving out a well-known brand in the high-end home furnishings market. It also pivoted to a membership model a few years ago, creating a base of loyal customers who pay $175 a year for discounts of 20% to 25% on merchandise. The membership program has been highly successful.
The company finished fiscal 2021, which ended a year ago, with 459,000 members, who made up 97% of its revenue. The average member spent about $8,000 that year with the company.
Today, the stock trades at a P/E ratio of just 11, due primarily to short-term headwinds. CEO Gary Friedman has warned about weakness in the housing market, which directly affects RH, and macroeconomic headwinds more generally.
However, the company isn't sitting still even as it faces a difficult economy. RH is expanding into new markets, opening galleries in England and major cities in Europe. It's also leveraging the RH brand into new categories including hotels and restaurants, leasing planes and a yacht, and launching a media division, which includes a streaming service devoted to architecture and design. It also plans to sell fully furnished homes, branded as RH Residences, which opens it up to the real estate market.
RH's membership base of nearly half a million households should help make those new initiatives a success in expanding the luxury brand to new markets beyond just home furnishings. While it may be risky, Friedman has proven the market wrong before with the pivot to a membership model, and the stock is priced like a no-growth value play, rather than a luxury stock expanding to new models.
If Friedman can prove the market wrong again, the stock could have a lot of upside in front of it.
10 stocks we like better than Apple
When our award-winning 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 January 9, 2023
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. 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. Jeremy Bowman has positions in Amazon.com, Meta Platforms, and RH. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Berkshire Hathaway, Meta Platforms, and Microsoft. The Motley Fool recommends RH and recommends the following options: long January 2023 $200 calls on Berkshire Hathaway, long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway, short January 2023 $265 calls on Berkshire Hathaway, and short March 2023 $130 calls on 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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Apple Apple (NASDAQ: AAPL), which is Berkshire's top holding, has gotten a fast start out of the gate, with shares of the iPhone maker up 10% to start the year. The iPhone maker is also the only one of the big tech companies, including Alphabet, Microsoft, Amazon, and Meta Platforms, to have not issued major layoffs. CEO Gary Friedman has warned about weakness in the housing market, which directly affects RH, and macroeconomic headwinds more generally.
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Apple Apple (NASDAQ: AAPL), which is Berkshire's top holding, has gotten a fast start out of the gate, with shares of the iPhone maker up 10% to start the year. The iPhone maker is also the only one of the big tech companies, including Alphabet, Microsoft, Amazon, and Meta Platforms, to have not issued major layoffs. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Berkshire Hathaway, Meta Platforms, and Microsoft.
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Apple Apple (NASDAQ: AAPL), which is Berkshire's top holding, has gotten a fast start out of the gate, with shares of the iPhone maker up 10% to start the year. While it may be risky, Friedman has proven the market wrong before with the pivot to a membership model, and the stock is priced like a no-growth value play, rather than a luxury stock expanding to new models. See the 10 stocks *Stock Advisor returns as of January 9, 2023 Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors.
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Apple Apple (NASDAQ: AAPL), which is Berkshire's top holding, has gotten a fast start out of the gate, with shares of the iPhone maker up 10% to start the year. Looking ahead to 2023, here are two Buffett stocks that appear poised to outperform. RH's membership base of nearly half a million households should help make those new initiatives a success in expanding the luxury brand to new markets beyond just home furnishings.
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17430.0
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2023-01-26 00:00:00 UTC
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Should SPDR Portfolio S&P 500 Growth ETF (SPYG) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-spdr-portfolio-sp-500-growth-etf-spyg-be-on-your-investing-radar-5
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nan
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nan
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Launched on 09/25/2000, the SPDR Portfolio S&P 500 Growth ETF (SPYG) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Growth segment of the US equity market.
The fund is sponsored by State Street Global Advisors. It has amassed assets over $14.33 billion, making it one of the largest ETFs attempting to match the Large Cap Growth segment of the US equity market.
Why Large Cap Growth
Large cap companies typically have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.
Qualities of growth stocks include faster growth rates compared to the broader market, as well as higher valuations and higher than average sales and earnings growth rates. Also, growth stocks are a type of equity that carries more risk compared to others. When you consider growth versus value, growth stocks are usually the clear winner in strong bull markets but tend to fall flat in nearly all other environments.
Costs
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 0.04%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 0.99%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 44.10% of the portfolio. Consumer Discretionary and Healthcare round out the top three.
Looking at individual holdings, Apple Inc. (AAPL) accounts for about 14.01% of total assets, followed by Microsoft Corporation (MSFT) and Amazon.com Inc. (AMZN).
The top 10 holdings account for about 49% of total assets under management.
Performance and Risk
SPYG seeks to match the performance of the S&P 500 Growth Index before fees and expenses. The S&P 500 Growth Index measures the performance of the large-capitalization growth sector in the U.S. equity market.
The ETF has gained about 4.03% so far this year and is down about -15.43% in the last one year (as of 01/26/2023). In the past 52-week period, it has traded between $49.14 and $68.01.
The ETF has a beta of 1.05 and standard deviation of 28.36% for the trailing three-year period, making it a medium risk choice in the space. With about 244 holdings, it effectively diversifies company-specific risk.
Alternatives
SPDR Portfolio S&P 500 Growth 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, SPYG is a sufficient option for those seeking exposure to the Style Box - Large Cap Growth area of the market. Investors might also want to consider some other ETF options in the space.
The Vanguard Growth ETF (VUG) and the Invesco QQQ (QQQ) track a similar index. While Vanguard Growth ETF has $73.51 billion in assets, Invesco QQQ has $152.96 billion. VUG has an expense ratio of 0.04% and QQQ charges 0.20%.
Bottom-Line
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
SPDR Portfolio S&P 500 Growth ETF (SPYG): ETF Research Reports
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Invesco QQQ (QQQ): ETF Research Reports
Vanguard Growth ETF (VUG): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc. (AAPL) accounts for about 14.01% of total assets, followed by Microsoft Corporation (MSFT) and Amazon.com Inc. (AMZN). Click to get this free report SPDR Portfolio S&P 500 Growth ETF (SPYG): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. It has amassed assets over $14.33 billion, making it one of the largest ETFs attempting to match the Large Cap Growth segment of the US equity market.
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Looking at individual holdings, Apple Inc. (AAPL) accounts for about 14.01% of total assets, followed by Microsoft Corporation (MSFT) and Amazon.com Inc. (AMZN). Click to get this free report SPDR Portfolio S&P 500 Growth ETF (SPYG): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. While Vanguard Growth ETF has $73.51 billion in assets, Invesco QQQ has $152.96 billion.
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Click to get this free report SPDR Portfolio S&P 500 Growth ETF (SPYG): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc. (AAPL) accounts for about 14.01% of total assets, followed by Microsoft Corporation (MSFT) and Amazon.com Inc. (AMZN). Launched on 09/25/2000, the SPDR Portfolio S&P 500 Growth ETF (SPYG) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Growth segment of the US equity market.
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Looking at individual holdings, Apple Inc. (AAPL) accounts for about 14.01% of total assets, followed by Microsoft Corporation (MSFT) and Amazon.com Inc. (AMZN). Click to get this free report SPDR Portfolio S&P 500 Growth ETF (SPYG): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Also, growth stocks are a type of equity that carries more risk compared to others.
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17431.0
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2023-01-26 00:00:00 UTC
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Should iShares Russell Top 200 Growth ETF (IWY) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-ishares-russell-top-200-growth-etf-iwy-be-on-your-investing-radar-6
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nan
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nan
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Looking for broad exposure to the Large Cap Growth segment of the US equity market? You should consider the iShares Russell Top 200 Growth ETF (IWY), a passively managed exchange traded fund launched on 09/22/2009.
The fund is sponsored by Blackrock. It has amassed assets over $4.66 billion, making it one of the larger ETFs attempting to match the Large Cap Growth segment of the US equity market.
Why Large Cap Growth
Companies that 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.
Qualities of growth stocks include faster growth rates compared to the broader market, as well as higher valuations and higher than average sales and earnings growth rates. Something to keep in mind is the higher level of volatility that is affiliated with growth stocks. They are likely to outperform value stocks in strong bull markets but over the longer-term, value stocks have delivered better returns than growth stocks in almost all markets.
Costs
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 0.20%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 0.83%.
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 47.70% of the portfolio. Consumer Discretionary and Healthcare round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 13.77% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN).
The top 10 holdings account for about 43.71% of total assets under management.
Performance and Risk
IWY seeks to match the performance of the Russell Top 200 Growth Index before fees and expenses. The Russell Top 200 Growth Index is a style factor weighted index that measures the performance of the largest capitalization growth sector of the U.S. equity market. It is a subset of the Russell Top 200 Index issuers with relatively higher price-to-book ratios and higher forecasted growth, which measures the performance of the largest capitalization sector of the U.S. equity market.
The ETF has added about 5.90% so far this year and is down about -14.67% in the last one year (as of 01/26/2023). In the past 52-week period, it has traded between $117.55 and $163.04.
The ETF has a beta of 1.07 and standard deviation of 28.35% for the trailing three-year period, making it a medium risk choice in the space. With about 118 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Russell Top 200 Growth 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, IWY is a good option for those seeking exposure to the Style Box - Large Cap Growth area of the market. Investors might also want to consider some other ETF options in the space.
The Vanguard Growth ETF (VUG) and the Invesco QQQ (QQQ) track a similar index. While Vanguard Growth ETF has $73.51 billion in assets, Invesco QQQ has $152.96 billion. VUG has an expense ratio of 0.04% and QQQ charges 0.20%.
Bottom-Line
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
iShares Russell Top 200 Growth ETF (IWY): ETF Research Reports
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Invesco QQQ (QQQ): ETF Research Reports
Vanguard Growth ETF (VUG): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 13.77% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report iShares Russell Top 200 Growth ETF (IWY): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. You should consider the iShares Russell Top 200 Growth ETF (IWY), a passively managed exchange traded fund launched on 09/22/2009.
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Click to get this free report iShares Russell Top 200 Growth ETF (IWY): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 13.77% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). You should consider the iShares Russell Top 200 Growth ETF (IWY), a passively managed exchange traded fund launched on 09/22/2009.
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Click to get this free report iShares Russell Top 200 Growth ETF (IWY): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 13.77% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Alternatives IShares Russell Top 200 Growth 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 13.77% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report iShares Russell Top 200 Growth ETF (IWY): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. You should consider the iShares Russell Top 200 Growth ETF (IWY), a passively managed exchange traded fund launched on 09/22/2009.
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17432.0
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2023-01-26 00:00:00 UTC
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Should Invesco QQQ (QQQ) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-invesco-qqq-qqq-be-on-your-investing-radar-5
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Designed to provide broad exposure to the Large Cap Growth segment of the US equity market, the Invesco QQQ (QQQ) is a passively managed exchange traded fund launched on 03/10/1999.
The fund is sponsored by Invesco. It has amassed assets over $152.96 billion, making it the largest ETFs attempting to match the Large Cap Growth segment of the US equity market.
Why Large Cap Growth
Large cap companies usually have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.
While growth stocks do boast higher than average sales and earnings growth rates, and they are expected to grow faster than the wider market, investors should note these kinds of stocks have higher valuations. Also, growth stocks are a type of equity that carries more risk compared to others. They are likely to outperform value stocks in strong bull markets but over the longer-term, value stocks have delivered better returns than growth stocks in almost all markets.
Costs
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 0.20%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 0.74%.
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 49.70% of the portfolio. Telecom and Consumer Discretionary round out the top three.
Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 12.46% of total assets, followed by Apple Inc (AAPL) and Amazon.com Inc (AMZN).
The top 10 holdings account for about 51.41% of total assets under management.
Performance and Risk
QQQ seeks to match the performance of the NASDAQ-100 Index before fees and expenses. The Nasdaq-100 Index includes 100 of the largest domestic and international nonfinancial companies listed on the Nasdaq Stock Market based on market capitalization.
The ETF has added about 8.06% so far this year and is down about -16.01% in the last one year (as of 01/26/2023). In the past 52-week period, it has traded between $260.10 and $371.19.
The ETF has a beta of 1.10 and standard deviation of 29.74% for the trailing three-year period, making it a medium risk choice in the space. With about 101 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco QQQ carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, QQQ is a sufficient option for those seeking exposure to the Style Box - Large Cap Growth area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Russell 1000 Growth ETF (IWF) and the Vanguard Growth ETF (VUG) track a similar index. While iShares Russell 1000 Growth ETF has $60.60 billion in assets, Vanguard Growth ETF has $73.51 billion. IWF has an expense ratio of 0.18% and VUG charges 0.04%.
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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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
Invesco QQQ (QQQ): ETF Research Reports
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
iShares Russell 1000 Growth ETF (IWF): ETF Research Reports
Vanguard Growth ETF (VUG): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 12.46% of total assets, followed by Apple Inc (AAPL) and Amazon.com Inc (AMZN). Click to get this free report Invesco QQQ (QQQ): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report iShares Russell 1000 Growth ETF (IWF): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. It has amassed assets over $152.96 billion, making it the largest ETFs attempting to match the Large Cap Growth segment of the US equity market.
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Click to get this free report Invesco QQQ (QQQ): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report iShares Russell 1000 Growth ETF (IWF): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 12.46% of total assets, followed by Apple Inc (AAPL) and Amazon.com Inc (AMZN). Designed to provide broad exposure to the Large Cap Growth segment of the US equity market, the Invesco QQQ (QQQ) is a passively managed exchange traded fund launched on 03/10/1999.
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Click to get this free report Invesco QQQ (QQQ): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report iShares Russell 1000 Growth ETF (IWF): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 12.46% of total assets, followed by Apple Inc (AAPL) and Amazon.com Inc (AMZN). While iShares Russell 1000 Growth ETF has $60.60 billion in assets, Vanguard Growth ETF has $73.51 billion.
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Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 12.46% of total assets, followed by Apple Inc (AAPL) and Amazon.com Inc (AMZN). Click to get this free report Invesco QQQ (QQQ): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report iShares Russell 1000 Growth ETF (IWF): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Designed to provide broad exposure to the Large Cap Growth segment of the US equity market, the Invesco QQQ (QQQ) is a passively managed exchange traded fund launched on 03/10/1999.
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17433.0
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2023-01-26 00:00:00 UTC
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Shiba Inu Is Up Almost 40% in 2023. Here Are 3 Reasons to Sell
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AAPL
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https://www.nasdaq.com/articles/shiba-inu-is-up-almost-40-in-2023.-here-are-3-reasons-to-sell
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nan
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With tighter monetary policy conditions and a general risk-off sentiment from the investment community, it's no wonder the crypto market lost roughly two-thirds of its value in 2022. But after the calendar turned on the new year, we're seeing a resurgence. The market cap of the entire industry is back over $1 trillion.
Some digital tokens, such as Shiba Inu (CRYPTO: SHIB), have gotten off to a hot start, as speculators bet on continued price gains. But even though Shiba Inu is up almost 40% already this year, I don't think it's a good long-term investment. In fact, if you're lucky enough to be sitting on a gain in your holdings, it's a good idea to sell now. Here's why.
No competitive edge
Seeing the shortcomings of Dogecoin, Shiba Inu's founders created its token to be compatible with the Ethereum ecosystem, hoping to draw in more users. This strategy made logical sense, as SHIB worked with various crypto wallets and decentralized exchanges. The founders hoped it would catch on because of its accessibility.
It eventually did catch fire, thanks to the meme-investing craze in early 2021. But apart from a community of supporters who love the dog-themed token, Shiba Inu hasn't found much adoption. According to cryptwerk.com, a crypto and digital listing directory, SHIB is accepted as a method of payment at only 715 merchants worldwide. That's essentially nothing.
I think the ultimate viability of a crypto project depends entirely on its potential for real-world utility. Shiba Inu lacks in this department. What's more, investors have much more promising cryptocurrency networks to look at instead.
Enormous token supply
Another reason to dump your SHIB holdings is the token's enormous supply. There are 549 trillion SHIB tokens in circulation. This silly amount artificially keeps the price of one token insanely low. And to make matters worse, there's nothing stopping the founders from creating new tokens out of thin air whenever they want.
Shiba Inu's supply is so gargantuan that it's virtually impossible for each individual token's value to ever reach $1. At this price, the market cap of the entire network would total $549 trillion. Not only is that much higher than the market caps of Apple, Microsoft, Alphabet, Berkshire Hathaway, and ExxonMobil combined, but it's around the total amount of household wealth worldwide (according to data from McKinsey).
This means that SHIB's price will remain at fractions of a penny for the foreseeable future.
Catalysts won't move the needle
Shiba Inu is slow and expensive. Developers have been working on a Layer 2 scaling solution, known as Shibarium, to lower transaction fees and increase throughput. There are also plans to introduce a native stablecoin.
Additionally, Shiba Inu could fully introduce a metaverse powered by non-fungible tokens in the near future. With it, users will be able to buy digital land, interact with other users, play games, and earn passive income. But even if Shiba Inu can successfully launch Shibarium and the metaverse, I'm not convinced they will catch on.
Why would any skilled developers or enthusiastic users be inclined to take their time and money to Shiba Inu when there are much more promising crypto projects out there? Ethereum, Cardano, and Solana all have huge developer networks helping to lay the foundation for greater use of decentralized applications. And they actually possess innovative features that help them stand out in a crowded industry.
There's no doubt that the cryptocurrency market is experiencing a quick bounce-back to start the year, and this situation might entice investors to speculate on Shiba Inu to try to profit from the momentum. But it's best to focus on the things that matter, like the underlying fundamentals of the digital token. With this in mind, it's a good idea to sell Shiba Inu and direct your capital elsewhere.
10 stocks we like better than Shiba Inu
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Neil Patel has positions in Alphabet and Berkshire Hathaway. The Motley Fool has positions in and recommends Alphabet, Apple, Berkshire Hathaway, Cardano, Ethereum, Microsoft, and Solana. The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway, long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway, short January 2023 $265 calls on Berkshire Hathaway, and short March 2023 $130 calls on 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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No competitive edge Seeing the shortcomings of Dogecoin, Shiba Inu's founders created its token to be compatible with the Ethereum ecosystem, hoping to draw in more users. Not only is that much higher than the market caps of Apple, Microsoft, Alphabet, Berkshire Hathaway, and ExxonMobil combined, but it's around the total amount of household wealth worldwide (according to data from McKinsey). There's no doubt that the cryptocurrency market is experiencing a quick bounce-back to start the year, and this situation might entice investors to speculate on Shiba Inu to try to profit from the momentum.
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Not only is that much higher than the market caps of Apple, Microsoft, Alphabet, Berkshire Hathaway, and ExxonMobil combined, but it's around the total amount of household wealth worldwide (according to data from McKinsey). The Motley Fool has positions in and recommends Alphabet, Apple, Berkshire Hathaway, Cardano, Ethereum, Microsoft, and Solana. The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway, long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway, short January 2023 $265 calls on Berkshire Hathaway, and short March 2023 $130 calls on Apple.
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Some digital tokens, such as Shiba Inu (CRYPTO: SHIB), have gotten off to a hot start, as speculators bet on continued price gains. No competitive edge Seeing the shortcomings of Dogecoin, Shiba Inu's founders created its token to be compatible with the Ethereum ecosystem, hoping to draw in more users. The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway, long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway, short January 2023 $265 calls on Berkshire Hathaway, and short March 2023 $130 calls on Apple.
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Some digital tokens, such as Shiba Inu (CRYPTO: SHIB), have gotten off to a hot start, as speculators bet on continued price gains. But even though Shiba Inu is up almost 40% already this year, I don't think it's a good long-term investment. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Shiba Inu wasn't one of them!
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17434.0
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2023-01-25 00:00:00 UTC
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Zacks Investment Ideas feature highlights: Amazon and Apple
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AAPL
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https://www.nasdaq.com/articles/zacks-investment-ideas-feature-highlights%3A-amazon-and-apple
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nan
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For Immediate Release
Chicago, IL – January 25, 2023 – Today, Zacks Investment Ideas feature highlights Amazon AMZN and Apple AAPL.
Timing the Market: EPS Is a Lagging Indicator
Timing Is Everything
In both life and markets, timing is a critical ingredient to success and often impacts the outcome of a situation. For example, you can meet the right partner at the wrong time in your life or interview for the right job at the wrong time in your career. Or imagine you invested in shares of Amazon at or near the peak of the dot com bubble in 2000. While ultimately, the company would become the dominant player in the eCommerce space and a massive winning stock, you would have likely been stopped out or suffered fatigue from holding shares.
The General Market Direction has the Greatest Impact on Stocks
Because most stocks tend to follow the direction of the major indices, one crucial factor that can significantly increase our chances of investing profitability is to be in sync with the direction of the major market indices. In other words, "so goes the S&P 500 Index, so goes your portfolio." Below is a chart of Appleversus the S&P 500.
Price Bottoms Precede Earnings Bottoms
But like individual stocks, the general market also requires timing. In the long run, markets are driven by earnings growth. However, historical precedent tells us that in bear markets, stocks tend to bottom long before earnings. In other words, a stock's price tends to trough long before earnings turnaround.
In the past two bear markets (COVID-19 correction of '20 & the Housing Crisis of '08), the S&P 500 bottomed roughly three quarters before earnings turned around and began to accelerate again! In the aftermath of the dot com bubble, price and EPS bottomed simultaneously. Said another way, at some point in the last legs of a bear market, the investors begin to discount the future and tend to look past weakening earnings data.
How to Time the Market
So, if we can't rely on real-time earnings data to lead us, what should we depend on?
· Zack's Consensus Estimates: While most of us do not have a crystal ball into earnings, Zack's processes information from roughly 3,000 analysts at over 150 different brokerage firms to provide consensus analysts estimates moving forward.
· Guidance: Though paying attention to the current quarter is important, most companies also provide investors with forward-looking statements and EPS guidance.
· Participation: Wide participation is a signal of a strong market. A new uptrend is more likely to work if several sectors are acting strong and leadership is broad. Market breadth (number of stocks up vs. down), new highs vs. lows, and number of stocks above their 50-day moving average are some tools traders can use to measure participation.
· Reaction to Earnings: Most investors would be hard-pressed to predict the price action of a stock following earnings if they were given the earnings ahead of time. More times than not, the reaction to a report and earnings season is more important than the report itself.
Summary
Ultimately, earnings dictate the direction of the market. However, stock market history suggests real-time EPS is a lagging indicator. Instead, investors should pay attention to consensus estimates, guidance, market participation, and earnings reactions.
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Media Contact
Zacks Investment Research
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Amazon.com, Inc. (AMZN) : Free Stock Analysis 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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For Immediate Release Chicago, IL – January 25, 2023 – Today, Zacks Investment Ideas feature highlights Amazon AMZN and Apple AAPL. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. While ultimately, the company would become the dominant player in the eCommerce space and a massive winning stock, you would have likely been stopped out or suffered fatigue from holding shares.
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. For Immediate Release Chicago, IL – January 25, 2023 – Today, Zacks Investment Ideas feature highlights Amazon AMZN and Apple AAPL. However, historical precedent tells us that in bear markets, stocks tend to bottom long before earnings.
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For Immediate Release Chicago, IL – January 25, 2023 – Today, Zacks Investment Ideas feature highlights Amazon AMZN and Apple AAPL. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. The General Market Direction has the Greatest Impact on Stocks Because most stocks tend to follow the direction of the major indices, one crucial factor that can significantly increase our chances of investing profitability is to be in sync with the direction of the major market indices.
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For Immediate Release Chicago, IL – January 25, 2023 – Today, Zacks Investment Ideas feature highlights Amazon AMZN and Apple AAPL. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. Timing the Market: EPS Is a Lagging Indicator Timing Is Everything In both life and markets, timing is a critical ingredient to success and often impacts the outcome of a situation.
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17435.0
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2023-01-25 00:00:00 UTC
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The Coming AI Revolution: 5 Companies at the Forefront
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AAPL
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https://www.nasdaq.com/articles/the-coming-ai-revolution%3A-5-companies-at-the-forefront
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nan
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Artificial Intelligence, also known as AI, describes the technology that uses computers to mimic human knowledge and learning. While AI has been a well-known buzzword for years, the rollout of ChatGPT has catapulted it to the mainstream. ChatGPT (stands for Generative Pre-Trained Transformer) is an AI-powered chatbot that was launched in November 2022 by OpenAI – a company co-founded by some of Silicon Valley’s most prominent names such as Reid Hoffman (LinkedIn founder), Elon Musk, and Peter Thiel (co-founder of Paypal PYPL).
Image Source: Zacks Investment Research
Pictured: The BOTZ ETF is up 19% in the past few months and attempting to rebound from a weak 2022.
Though ChatGPT is still merely a prototype, users are flocking to the tool due to its surprisingly deep knowledge across many areas and its in-depth responses to queries. Just how powerful is ChatGPT? The bot has passed the medical license, MBA operations, and bar exams – and it will only improve from here.
Today we will cover 5 companies at the forefront of the AI revolution:
Microsoft MSFT: In 2019, Microsoft backed ChatGPT creator OpenAI with $1 billion in funding. After the hugely successful launch of the ChatGPT prototype, Microsoft announced earlier this week that the software giant would invest another $10 billion over the next ten years. Meanwhile, ChatGPT is converting from a free service to a “freemium” service. The tool is available for free to all. However, premium users can enjoy more rapid response speeds and availability when the bot’s demand is high for $42 per month. Microsoft’s Azure is the primary cloud service provider for ChatGPT. Last night during MSFT's EPS call CEO Satya Nadella confirmed the company's commitment to AI by saying, "We are committed to help customers use our platforms and tools to do more with less today and innovate for the future in the new era of AI." Shares rose 5% initially.
Nvidia NVDA: Though AI has been in use for years, it has only recently exploded in popularity because the masses are using it. What was holding AI back before? AI platforms such as ChatGPT require immense computing power to process intricate computing tasks. Nvidia is the leader in PC graphic processors, and its technologies are already being used in several AI realms, such as high-performance computing and virtual reality platforms. Nvidia competitors such as Intel INTC and Advanced Micro Devices AMD also stand to benefit.
Image Source: Zacks Investment Research
Pictured: NVDA has soared 50% in 6 months as AI technology goes viral. NVDA is a huge beneficiary of AI adoption.
Alphabet GOOGL: Google parent Alphabet is currently the biggest user of AI in its many businesses. Alphabet utilizes AI to:
· Optimize its search engine Google.
· Moderate content that violates policies on its YouTube video platform.
· Spearhead its autonomous driving division Waymo.
· Turn image data into actionable insights in its robotics company Boston Dynamics.
Tesla TSLA: Considering that Elon Musk is a co-founder of OpenAi, it should be no surprise that Tesla makes it onto the list. Tesla’s autonomous driving division is at the heart of AI use in real-life situations. Tesla’s autopilot system uses cameras, sensors, and GPS to record information and then uses its AI technology to interpret the information and make decisions at lightning speed. Once the information is used, it is not discarded but instead recorded and leveraged for future use. In other words, the more people use Tesla’s technology, the smarter and safer it will get.
The best option for investors looking for a pure play on AI and autonomous driving would be Mobileye MBLY. Mobileye is a leader in the autonomous driving space and supplies its technologies to automakers such as Nio Inc NIO, Ford Motor F, and General Motors GM. Mobileye and Tesla should continue to lead in this space as demand grows due to the drastic increase in distracted driving deaths. Several months ago, CEO Elon Musk hinted that Tesla would soon look to manufacture a futuristic “Robotaxi” which will be an Uber UBER – like rideshare service that can operate without a human driver.
Intuitive Surgical ISRG: Like driving, there are many realms that AI proponents believe will be better handled by machine rather than man. One such area is minimally invasive surgery – a medical practice where precision is paramount. Intuitive Surgical is best known for its successful “da Vinci” robotic surgical system which costs $2 million. Currently, surgeons control the device from a console away from the patient and can complete a variety of complex procedures. However, the company is using AI to collect and curate data to lead to better patient outcomes in the future.
Conclusion
In the long run, stocks are driven by higher earnings, and higher earnings are driven by innovation. Think back to some of the biggest winning stocks over the past few decades. Netflix NFLX brought streaming to the masses – eliminating the need for Blockbuster video stores. Apple AAPL combined a phone, computer, and camera into one device – forever changing the mobile phone landscape. For this reason, investors need to begin tracking the AI space. Though the space is in its infancy and the use cases have only scratched the surface, investors should expect an influx of investment dollars following the recent success of ChatGPT and more game-changing technology to be unveiled in the coming years. While few public pure plays exist now, in the future, investors should expect new companies to come public and existing companies to derive more and more revenue from this groundbreaking industry.
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
Intel Corporation (INTC) : Free Stock Analysis Report
Ford Motor Company (F) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Netflix, Inc. (NFLX) : Free Stock Analysis Report
Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
General Motors Company (GM) : Free Stock Analysis Report
Tesla, Inc. (TSLA) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
Mobileye Global Inc. (MBLY) : Free Stock Analysis Report
PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report
NIO Inc. (NIO) : Free Stock Analysis Report
Uber Technologies, Inc. (UBER) : 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 combined a phone, computer, and camera into one device – forever changing the mobile phone landscape. Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report Ford Motor Company (F) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report General Motors Company (GM) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Mobileye Global Inc. (MBLY) : Free Stock Analysis Report PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report NIO Inc. (NIO) : Free Stock Analysis Report Uber Technologies, Inc. (UBER) : Free Stock Analysis Report To read this article on Zacks.com click here. After the hugely successful launch of the ChatGPT prototype, Microsoft announced earlier this week that the software giant would invest another $10 billion over the next ten years.
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Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report Ford Motor Company (F) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report General Motors Company (GM) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Mobileye Global Inc. (MBLY) : Free Stock Analysis Report PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report NIO Inc. (NIO) : Free Stock Analysis Report Uber Technologies, Inc. (UBER) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple AAPL combined a phone, computer, and camera into one device – forever changing the mobile phone landscape. Image Source: Zacks Investment Research Pictured: NVDA has soared 50% in 6 months as AI technology goes viral.
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Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report Ford Motor Company (F) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report General Motors Company (GM) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Mobileye Global Inc. (MBLY) : Free Stock Analysis Report PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report NIO Inc. (NIO) : Free Stock Analysis Report Uber Technologies, Inc. (UBER) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple AAPL combined a phone, computer, and camera into one device – forever changing the mobile phone landscape. Today we will cover 5 companies at the forefront of the AI revolution: Microsoft MSFT: In 2019, Microsoft backed ChatGPT creator OpenAI with $1 billion in funding.
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Apple AAPL combined a phone, computer, and camera into one device – forever changing the mobile phone landscape. Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report Ford Motor Company (F) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report General Motors Company (GM) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Mobileye Global Inc. (MBLY) : Free Stock Analysis Report PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report NIO Inc. (NIO) : Free Stock Analysis Report Uber Technologies, Inc. (UBER) : Free Stock Analysis Report To read this article on Zacks.com click here. Tesla TSLA: Considering that Elon Musk is a co-founder of OpenAi, it should be no surprise that Tesla makes it onto the list.
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17436.0
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2023-01-25 00:00:00 UTC
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US STOCKS-Wall St falls as Microsoft outlook dents tech stocks, earnings disappoint
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-falls-as-microsoft-outlook-dents-tech-stocks-earnings-disappoint
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nan
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nan
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By Shreyashi Sanyal and Johann M Cherian
Jan 25 (Reuters) - Wall Street benchmarks dropped on Wednesday as a decline in technology stocks after Microsoft's downbeat forecast and a bleak quarterly report from Boeing fanned fears of a recession.
Shares of Microsoft CorpMSFT.O fell 1.2% after it warned that growth in its lucrative cloud business could stall, while its PC unit continues to struggle.
Amazon.com Inc AMZN.O, Salesforce Inc CRM.N and ServiceNow Inc NOW.N, which have large cloud businesses, fell about 1% each. The S&P 500 technology index .SPLRCT shed 1.3%.
Other major growth stocks, including Apple Inc AAPL.O, Alphabet Inc GOOGL.O and Tesla Inc TSLA.O, also dropped between 0.4% and 3%.
Growth stocks, however, have enjoyed a bounce in January after a battering last year, with investors now focused on earnings reports to assess the impact of the Federal Reserve's rate hikes and to gauge whether the renewed enthusiasm for these stocks will be sustained.
"One of the most resilient sectors in the economy (tech) is starting to feel the softness coming through," said Larry Adam, chief investment officer at Raymond James.
"Microsoft particularly talked about December - and that's another shot across the bow to the Fed that they make sure they do not overtighten and send the economy into a more severe recession than the one we're getting."
An overwhelming majority of traders expect the Federal Reserve to raise interest rates by another 25 basis points in its meeting next week.
They now see the terminal rate peaking at 4.91% in June, even as Fed policymakers have repeatedly backed taking rates above the 5% level. 0#FEDWATCH
Data later in the week is likely to show December personal consumption expenditure index (PCE) fell 0.1% from a 0.1% rise in the prior month. Fourth quarter GDP advance numbers are also awaited.
Dow Jones Industrial Average .DJI constituent, Boeing CoBA.N slipped 1.2% as the planemaker's losses widened in 2022 and it missed fourth-quarter revenue estimates.
At 12:21 p.m. ET, the Dow was down 208.76 points, or 0.62%, at 33,525.20, the S&P 500 .SPX was down 34.45 points, or 0.86%, at 3,982.50, and the Nasdaq Composite .IXIC was down 139.09 points, or 1.23%, at 11,195.19.
Abbott Laboratories ABT.N fell 1.9%, weighed down by lower-than-expected medical device sales in the fourth quarter.
In a bright spot, AT&T Inc T.N jumped 5.4% on higher-than-expected quarterly subscriber additions, while Textron IncTXT.N added 0.9% as its revenue beat estimates.
News CorpNWSA.O jumped 6.1%, leading gains on the S&P 500, after Rupert Murdoch withdrew a proposal to reunite News Corp and Fox Corp.
Meanwhile, the New York Stock Exchange said a manual error triggered a technical issue on Tuesday, preventing the opening auctions in some listed stocks, leading to widespread confusion and attracting a review from the U.S. Securities and Exchange Commission.
Declining issues outnumbered advancers for a 2.20-to-1 ratio on the NYSE and for a 1.92-to-1 ratio on the Nasdaq.
The S&P index recorded two new 52-week highs and one new low, while the Nasdaq recorded 45 new highs and 25 new lows.
(Reporting by Shreyashi Sanyal and Johann M Cherian in Bengaluru; Additional reporting by Medha Singh; Editing by Vinay Dwivedi and Anil D'Silva)
((Shreyashi.Sanyal@thomsonreuters.com; +1 646 223 8780; +91 961 144 3740; Twitter: https://twitter.com/s_shreyashi;))
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 major growth stocks, including Apple Inc AAPL.O, Alphabet Inc GOOGL.O and Tesla Inc TSLA.O, also dropped between 0.4% and 3%. By Shreyashi Sanyal and Johann M Cherian Jan 25 (Reuters) - Wall Street benchmarks dropped on Wednesday as a decline in technology stocks after Microsoft's downbeat forecast and a bleak quarterly report from Boeing fanned fears of a recession. "One of the most resilient sectors in the economy (tech) is starting to feel the softness coming through," said Larry Adam, chief investment officer at Raymond James.
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Other major growth stocks, including Apple Inc AAPL.O, Alphabet Inc GOOGL.O and Tesla Inc TSLA.O, also dropped between 0.4% and 3%. Amazon.com Inc AMZN.O, Salesforce Inc CRM.N and ServiceNow Inc NOW.N, which have large cloud businesses, fell about 1% each. The S&P index recorded two new 52-week highs and one new low, while the Nasdaq recorded 45 new highs and 25 new lows.
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Other major growth stocks, including Apple Inc AAPL.O, Alphabet Inc GOOGL.O and Tesla Inc TSLA.O, also dropped between 0.4% and 3%. By Shreyashi Sanyal and Johann M Cherian Jan 25 (Reuters) - Wall Street benchmarks dropped on Wednesday as a decline in technology stocks after Microsoft's downbeat forecast and a bleak quarterly report from Boeing fanned fears of a recession. Growth stocks, however, have enjoyed a bounce in January after a battering last year, with investors now focused on earnings reports to assess the impact of the Federal Reserve's rate hikes and to gauge whether the renewed enthusiasm for these stocks will be sustained.
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Other major growth stocks, including Apple Inc AAPL.O, Alphabet Inc GOOGL.O and Tesla Inc TSLA.O, also dropped between 0.4% and 3%. By Shreyashi Sanyal and Johann M Cherian Jan 25 (Reuters) - Wall Street benchmarks dropped on Wednesday as a decline in technology stocks after Microsoft's downbeat forecast and a bleak quarterly report from Boeing fanned fears of a recession. Growth stocks, however, have enjoyed a bounce in January after a battering last year, with investors now focused on earnings reports to assess the impact of the Federal Reserve's rate hikes and to gauge whether the renewed enthusiasm for these stocks will be sustained.
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17437.0
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2023-01-25 00:00:00 UTC
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MSCI Scheduled to Report Q4 Earnings: What's in the Cards?
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AAPL
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https://www.nasdaq.com/articles/msci-scheduled-to-report-q4-earnings%3A-whats-in-the-cards
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nan
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nan
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MSCI MSCI is set to report its fourth-quarter 2022 results on Jan 31.
The Zacks Consensus Estimate for fourth-quarter earnings has been unchanged at $2.71 per share over the past 30 days, suggesting 7.97% growth from the figure reported in the year-ago quarter.
The consensus mark for revenues is pegged at $565.16 million, indicating an increase of 2.79% from the year-ago quarter's reported number.
Notably, the company’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, the earnings surprise being 3.65%, on average.
MSCI Inc Price and EPS Surprise
MSCI Inc price-eps-surprise | MSCI Inc Quote
Let’s see how things have shaped up for the upcoming announcement.
Factors to Note
MSCI’s fourth-quarter 2022 results are expected to reflect benefits of the increasing uptake of climate and ESG solutions in the investment process.
Expanding use of ESG tools bodes well for the company. The retention rate for ESG and Climate tools was 97.4% in the third quarter of 2022, reflecting strong demand for the company’s solutions.
MSCI’s expanding portfolio of ESG and Climate tools has been noteworthy. The company’s Net Zero tracker illustrates how listed companies align with different temperature rise scenarios. The availability of new equity factor models, including the first models to offer sustainability, crowding and machine learning factors, has been a key catalyst. The sustainability factor includes ESG and carbon efficiency components, which are expected to have aided the demand for MSCI’s solutions.
Partnership with Snowflake boosts MSCI’s distribution capabilities of these factor models. The company has also collaborated with MarketAxess Holdings to offer innovative portfolio analytics solutions and co-branded Fixed Income Indexes.
Moreover, MSCI’s focus on expanding into new areas like Wealth Management, Insurers, Derivatives, case funds, broker-dealers, and ESG & Climate is expected to have driven growth in its customer base in the to-be-reported quarter.
However, turbulent equity markets are expected to have negatively impacted revenues generated from asset-based fees in the to-be-reported quarter. Moreover, unfavorable forex has been concerning.
What Our Model Says
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
MSCI has an Earnings ESP of +0.43% and a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks to Consider
Here are a few other companies worth considering, as our model shows that these too have the right combination of elements to beat on earnings in their upcoming releases:
Juniper JNPR has an Earnings ESP of +1.89% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Juniper shares have moved up 0.7% in the past year. JNPR is set to report its fourth-quarter 2022 results on Jan 31.
Perion Network PERI currently has an Earnings ESP of +13.40% and a Zacks Rank #3.
Perion shares have declined 36.5% in the past year. PERI is set to report its fourth-quarter 2022 results on Feb 8.
Apple AAPL has an Earnings ESP of +0.35% and a Zacks Rank #3 at present.
Apple shares have moved down 3.7% in the past year. AAPL is set to report its first-quarter fiscal 2023 results on Feb 2.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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
Juniper Networks, Inc. (JNPR) : Free Stock Analysis Report
MSCI Inc (MSCI) : Free Stock Analysis Report
Perion Network Ltd (PERI) : 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 has an Earnings ESP of +0.35% and a Zacks Rank #3 at present. AAPL is set to report its first-quarter fiscal 2023 results on Feb 2. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Juniper Networks, Inc. (JNPR) : Free Stock Analysis Report MSCI Inc (MSCI) : Free Stock Analysis Report Perion Network Ltd (PERI) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Juniper Networks, Inc. (JNPR) : Free Stock Analysis Report MSCI Inc (MSCI) : Free Stock Analysis Report Perion Network Ltd (PERI) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple AAPL has an Earnings ESP of +0.35% and a Zacks Rank #3 at present. AAPL is set to report its first-quarter fiscal 2023 results on Feb 2.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Juniper Networks, Inc. (JNPR) : Free Stock Analysis Report MSCI Inc (MSCI) : Free Stock Analysis Report Perion Network Ltd (PERI) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple AAPL has an Earnings ESP of +0.35% and a Zacks Rank #3 at present. AAPL is set to report its first-quarter fiscal 2023 results on Feb 2.
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Apple AAPL has an Earnings ESP of +0.35% and a Zacks Rank #3 at present. AAPL is set to report its first-quarter fiscal 2023 results on Feb 2. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Juniper Networks, Inc. (JNPR) : Free Stock Analysis Report MSCI Inc (MSCI) : Free Stock Analysis Report Perion Network Ltd (PERI) : Free Stock Analysis Report To read this article on Zacks.com click here.
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17438.0
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2023-01-25 00:00:00 UTC
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Interesting AAPL Put And Call Options For December 2025
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AAPL
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https://www.nasdaq.com/articles/interesting-aapl-put-and-call-options-for-december-2025
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nan
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nan
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Investors in Apple Inc (Symbol: AAPL) saw new options begin trading today, for the December 2025 expiration. One of the key inputs that goes into the price an option buyer is willing to pay, is the time value, so with 1059 days until expiration the newly trading contracts represent a potential opportunity for sellers of puts or calls to achieve a higher premium than would be available for the contracts with a closer expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAPL options chain for the new December 2025 contracts and identified one put and one call contract of particular interest.
The put contract at the $135.00 strike price has a current bid of $18.15. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $135.00, but will also collect the premium, putting the cost basis of the shares at $116.85 (before broker commissions). To an investor already interested in purchasing shares of AAPL, that could represent an attractive alternative to paying $139.15/share today.
Because the $135.00 strike represents an approximate 3% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 13.44% return on the cash commitment, or 4.63% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for Apple Inc, and highlighting in green where the $135.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $150.00 strike price has a current bid of $26.65. If an investor was to purchase shares of AAPL stock at the current price level of $139.15/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $150.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 26.95% if the stock gets called away at the December 2025 expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if AAPL shares really soar, which is why looking at the trailing twelve month trading history for Apple Inc, as well as studying the business fundamentals becomes important. Below is a chart showing AAPL's trailing twelve month trading history, with the $150.00 strike highlighted in red:
Considering the fact that the $150.00 strike represents an approximate 8% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 19.15% boost of extra return to the investor, or 6.60% annualized, which we refer to as the YieldBoost.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 251 trading day closing values as well as today's price of $139.15) to be 36%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of the Nasdaq 100 »
Also see:
Top Ten Hedge Funds Holding BDRY
Funds Holding BBLU
ETFs Holding CCO
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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Of course, a lot of upside could potentially be left on the table if AAPL shares really soar, which is why looking at the trailing twelve month trading history for Apple Inc, as well as studying the business fundamentals becomes important. Below is a chart showing AAPL's trailing twelve month trading history, with the $150.00 strike highlighted in red: Considering the fact that the $150.00 strike represents an approximate 8% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Apple Inc (Symbol: AAPL) saw new options begin trading today, for the December 2025 expiration.
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Below is a chart showing AAPL's trailing twelve month trading history, with the $150.00 strike highlighted in red: Considering the fact that the $150.00 strike represents an approximate 8% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. Investors in Apple Inc (Symbol: AAPL) saw new options begin trading today, for the December 2025 expiration.
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Below is a chart showing AAPL's trailing twelve month trading history, with the $150.00 strike highlighted in red: Considering the fact that the $150.00 strike represents an approximate 8% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Apple Inc (Symbol: AAPL) saw new options begin trading today, for the December 2025 expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAPL options chain for the new December 2025 contracts and identified one put and one call contract of particular interest.
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At Stock Options Channel, our YieldBoost formula has looked up and down the AAPL options chain for the new December 2025 contracts and identified one put and one call contract of particular interest. Below is a chart showing AAPL's trailing twelve month trading history, with the $150.00 strike highlighted in red: Considering the fact that the $150.00 strike represents an approximate 8% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Apple Inc (Symbol: AAPL) saw new options begin trading today, for the December 2025 expiration.
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17439.0
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2023-01-25 00:00:00 UTC
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Notable ETF Outflow Detected - ITOT, AAPL, MSFT, AMZN
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AAPL
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https://www.nasdaq.com/articles/notable-etf-outflow-detected-itot-aapl-msft-amzn
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nan
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nan
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core S&P Total U.S. Stock Market ETF (Symbol: ITOT) where we have detected an approximate $392.1 million dollar outflow -- that's a 1.0% decrease week over week (from 457,700,000 to 453,300,000). Among the largest underlying components of ITOT, in trading today Apple Inc (Symbol: AAPL) is down about 1.9%, Microsoft Corporation (Symbol: MSFT) is down about 3.2%, and Amazon.com Inc (Symbol: AMZN) is lower by about 4.1%. For a complete list of holdings, visit the ITOT Holdings page » The chart below shows the one year price performance of ITOT, versus its 200 day moving average:
Looking at the chart above, ITOT's low point in its 52 week range is $77.44 per share, with $103.48 as the 52 week high point — that compares with a last trade of $87.90. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs experienced notable outflows »
Also see:
The Ten Worst ETF Performers
PLUG shares outstanding history
DQ Historical Stock Prices
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Among the largest underlying components of ITOT, in trading today Apple Inc (Symbol: AAPL) is down about 1.9%, Microsoft Corporation (Symbol: MSFT) is down about 3.2%, and Amazon.com Inc (Symbol: AMZN) is lower by about 4.1%. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
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Among the largest underlying components of ITOT, in trading today Apple Inc (Symbol: AAPL) is down about 1.9%, Microsoft Corporation (Symbol: MSFT) is down about 3.2%, and Amazon.com Inc (Symbol: AMZN) is lower by about 4.1%. For a complete list of holdings, visit the ITOT Holdings page » The chart below shows the one year price performance of ITOT, versus its 200 day moving average: Looking at the chart above, ITOT's low point in its 52 week range is $77.44 per share, with $103.48 as the 52 week high point — that compares with a last trade of $87.90. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed).
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Among the largest underlying components of ITOT, in trading today Apple Inc (Symbol: AAPL) is down about 1.9%, Microsoft Corporation (Symbol: MSFT) is down about 3.2%, and Amazon.com Inc (Symbol: AMZN) is lower by about 4.1%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core S&P Total U.S. Stock Market ETF (Symbol: ITOT) where we have detected an approximate $392.1 million dollar outflow -- that's a 1.0% decrease week over week (from 457,700,000 to 453,300,000). For a complete list of holdings, visit the ITOT Holdings page » The chart below shows the one year price performance of ITOT, versus its 200 day moving average: Looking at the chart above, ITOT's low point in its 52 week range is $77.44 per share, with $103.48 as the 52 week high point — that compares with a last trade of $87.90.
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Among the largest underlying components of ITOT, in trading today Apple Inc (Symbol: AAPL) is down about 1.9%, Microsoft Corporation (Symbol: MSFT) is down about 3.2%, and Amazon.com Inc (Symbol: AMZN) is lower by about 4.1%. For a complete list of holdings, visit the ITOT Holdings page » The chart below shows the one year price performance of ITOT, versus its 200 day moving average: Looking at the chart above, ITOT's low point in its 52 week range is $77.44 per share, with $103.48 as the 52 week high point — that compares with a last trade of $87.90. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed).
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17440.0
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2023-01-25 00:00:00 UTC
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US STOCKS-Wall St falls as Microsoft forecast hits tech stocks, earnings disappoint
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-falls-as-microsoft-forecast-hits-tech-stocks-earnings-disappoint
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nan
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nan
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For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
Microsoft falls on dismal Q3 cloud outlook
Salesforce, Amazon, other cloud-based stocks drop
Tech shares lead sectoral declines on S&P 500
Boeing slides after missing Q4 revenue estimates
Indexes down: Nasdaq 2.0%, S&P 1.2%, Dow 0.7%
Adds details; updates prices to open
By Shreyashi Sanyal and Johann M Cherian
Jan 25 (Reuters) - Wall Street's main indexes dropped on Wednesday, with the Nasdaq down 2% as Microsoft's outlook weighed down technology stocks, while a bleak quarterly report from Boeing added to fears of a recession.
Shares of Microsoft MSFT.O fell 3.9% after it warned that growth in its lucrative cloud business could stall, while its PC unit continued to struggle. The S&P 500 technology index .SPLRCT shed 2.1% to lead declines among the 11 major sector indexes.
Amazon.com Inc AMZN.O, Salesforce Inc CRM.N and ServiceNow Inc NOW.N, which have substantial cloud businesses, fell between 2.5% and 4.5%.
Other major growth stocks, including Apple Inc AAPL.O, Alphabet Inc GOOGL.O and Tesla Inc TSLA.O, also dropped between 1.5% and 3.0%.
Growth stocks, however, have enjoyed a bounce in January after a battering last year, with investors now focused on earnings reports to assess the impact of the Federal Reserve's rate hikes and to gauge whether the renewed enthusiasm for these stocks will be sustained.
"The environment may look attractive because some of these cloud companies, like Salesforce, are down so much, but people are still skeptical because we're heading into weaker economic news," said Robert Pavlik, senior portfolio manager at Dakota Wealth.
"We still have inflation, we still have the Fed raising interest rates, we're seeing companies laying off thousands of peoples ... We're not completely through the cycle yet."
An overwhelming majority of traders expect the Federal Reserve to raise interest rates by another 25 basis points in its meeting next week.
They now see the terminal rate peaking at 4.91% in June, even as Fed policymakers have repeatedly backed taking rates above the 5% level. 0#FEDWATCH
Data later in the week is likely to show December personal consumption expenditure index (PCE) fell 0.1% from a 0.1% rise in the prior month. Fourth quarter GDP advance numbers are also awaited.
Dow Jones Industrial Average .DJI constituent, Boeing CoBA.N slipped 1.3% as the planemaker's losses widened in 2022 and it missed fourth-quarter revenue estimates.
At 10:07 a.m. ET, the Dow was down 227.63 points, or 0.67%, at 33,506.33, the S&P 500 .SPX was down 46.92 points, or 1.17%, at 3,970.03, and the Nasdaq Composite .IXIC was down 220.49 points, or 1.95%, at 11,113.79.
Abbott Laboratories ABT.N fell 0.7%, weighed down by lower-than-expected medical device sales in the fourth quarter.
In a bright spot, AT&T Inc T.N rose 6.2% on higher-than-expected quarterly subscriber additions, while Textron Inc TXT.N added 0.3% as revenue beat estimates, boosted by demand for its private jets.
News CorpNWSA.O jumped 8.0%, leading gains on the S&P 500, after Rupert Murdoch withdrew a proposal to reunite News Corp and Fox Corp.
Declining issues outnumbered advancers for a 3.92-to-1 ratio on the NYSE and for a 2.82-to-1 ratio on the Nasdaq.
The S&P index recorded two new 52-week highs and one new low, while the Nasdaq recorded 29 new highs and 16 new lows.
(Reporting by Shreyashi Sanyal and Johann M Cherian in Bengaluru; Additional reporting by Ankika Biswas; Editing by Vinay Dwivedi and Anil D'Silva)
((Shreyashi.Sanyal@thomsonreuters.com; +1 646 223 8780; +91 961 144 3740; Twitter: https://twitter.com/s_shreyashi;))
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 major growth stocks, including Apple Inc AAPL.O, Alphabet Inc GOOGL.O and Tesla Inc TSLA.O, also dropped between 1.5% and 3.0%. Microsoft falls on dismal Q3 cloud outlook Salesforce, Amazon, other cloud-based stocks drop Tech shares lead sectoral declines on S&P 500 Boeing slides after missing Q4 revenue estimates Indexes down: Nasdaq 2.0%, S&P 1.2%, Dow 0.7% Adds details; updates prices to open By Shreyashi Sanyal and Johann M Cherian Jan 25 (Reuters) - Wall Street's main indexes dropped on Wednesday, with the Nasdaq down 2% as Microsoft's outlook weighed down technology stocks, while a bleak quarterly report from Boeing added to fears of a recession. "The environment may look attractive because some of these cloud companies, like Salesforce, are down so much, but people are still skeptical because we're heading into weaker economic news," said Robert Pavlik, senior portfolio manager at Dakota Wealth.
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Other major growth stocks, including Apple Inc AAPL.O, Alphabet Inc GOOGL.O and Tesla Inc TSLA.O, also dropped between 1.5% and 3.0%. Microsoft falls on dismal Q3 cloud outlook Salesforce, Amazon, other cloud-based stocks drop Tech shares lead sectoral declines on S&P 500 Boeing slides after missing Q4 revenue estimates Indexes down: Nasdaq 2.0%, S&P 1.2%, Dow 0.7% Adds details; updates prices to open By Shreyashi Sanyal and Johann M Cherian Jan 25 (Reuters) - Wall Street's main indexes dropped on Wednesday, with the Nasdaq down 2% as Microsoft's outlook weighed down technology stocks, while a bleak quarterly report from Boeing added to fears of a recession. The S&P 500 technology index .SPLRCT shed 2.1% to lead declines among the 11 major sector indexes.
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Other major growth stocks, including Apple Inc AAPL.O, Alphabet Inc GOOGL.O and Tesla Inc TSLA.O, also dropped between 1.5% and 3.0%. Microsoft falls on dismal Q3 cloud outlook Salesforce, Amazon, other cloud-based stocks drop Tech shares lead sectoral declines on S&P 500 Boeing slides after missing Q4 revenue estimates Indexes down: Nasdaq 2.0%, S&P 1.2%, Dow 0.7% Adds details; updates prices to open By Shreyashi Sanyal and Johann M Cherian Jan 25 (Reuters) - Wall Street's main indexes dropped on Wednesday, with the Nasdaq down 2% as Microsoft's outlook weighed down technology stocks, while a bleak quarterly report from Boeing added to fears of a recession. Growth stocks, however, have enjoyed a bounce in January after a battering last year, with investors now focused on earnings reports to assess the impact of the Federal Reserve's rate hikes and to gauge whether the renewed enthusiasm for these stocks will be sustained.
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Other major growth stocks, including Apple Inc AAPL.O, Alphabet Inc GOOGL.O and Tesla Inc TSLA.O, also dropped between 1.5% and 3.0%. Microsoft falls on dismal Q3 cloud outlook Salesforce, Amazon, other cloud-based stocks drop Tech shares lead sectoral declines on S&P 500 Boeing slides after missing Q4 revenue estimates Indexes down: Nasdaq 2.0%, S&P 1.2%, Dow 0.7% Adds details; updates prices to open By Shreyashi Sanyal and Johann M Cherian Jan 25 (Reuters) - Wall Street's main indexes dropped on Wednesday, with the Nasdaq down 2% as Microsoft's outlook weighed down technology stocks, while a bleak quarterly report from Boeing added to fears of a recession. "We still have inflation, we still have the Fed raising interest rates, we're seeing companies laying off thousands of peoples ... We're not completely through the cycle yet."
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17441.0
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2023-01-25 00:00:00 UTC
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US STOCKS-Wall St eyes lower open as weak earnings updates dent sentiment
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-eyes-lower-open-as-weak-earnings-updates-dent-sentiment
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nan
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nan
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By Shreyashi Sanyal and Johann M Cherian
Jan 25 (Reuters) - Wall Street's main indexes were set to open lower on Wednesday as downbeat quarterly updates from Microsoft and Boeing added to fears of a recession.
Shares of the software giant MSFT.O fell 2.7% in premarket trading after it warned that growth in its lucrative cloud business could stall, while its PC unit continued to struggle.
Amazon.com Inc AMZN.O, Salesforce Inc CRM.N and ServiceNow Inc NOW.N, which have substantial cloud businesses, fell between 1.3% and 3.0%.
Other large growth stocks, including Apple Inc AAPL.O, Alphabet Inc GOOGL.Oand Tesla Inc TSLA.O, also dropped between 0.7% and 1.5%.
Growth stocks, however, have enjoyed a bounce in January after a battering last year, with investors now focused on earnings reports to assess the impact of the Federal Reserve's rate hikes and to gauge whether the renewed enthusiasm for such stocks will be sustained.
The S&P 500 Growth index .IGX has added over 4% in the month, reclaiming more than half of its losses from December.
"The environment may look attractive because some of these cloud companies, like Salesforce, are down so much, but people are still skeptical because we're heading into weaker economic news," said Robert Pavlik, senior portfolio manager at Dakota Wealth.
"We still have inflation, we still have the Fed raising interest rates, we're seeing companies laying off thousands of peoples ... We're not completely through the cycle yet."
Dow constituent, Boeing CoBA.N slipped 2.4% as the planemaker's losses widened in 2022 and it fell short of fourth-quarter revenue expectations.
AT&T Inc T.N rose 1.7% on reporting higher-than-expected quarterly subscriber additions, while Textron Inc TXT.Nadded 3% as the Cessna jet maker reported better-than-expected revenue, boosted by demand for its private jets.
Abbott Laboratories ABT.Nslid over 1.5% weighed down by lower-than-expected medical device sales in the fourth quarter as COVID-19 lockdown restrictions in China and supply chain issues hit its international operations.
News CorpNWSA.Oadded 5% after Rupert Murdoch withdrew a proposal to reunite News Corp and Fox Corp.
(Reporting by Shreyashi Sanyal and Johann M Cherian in Bengaluru; Additional reporting by Ankika Biswas; Editing by Vinay Dwivedi and Anil D'Silva)
((Shreyashi.Sanyal@thomsonreuters.com; +1 646 223 8780; +91 961 144 3740; Twitter: https://twitter.com/s_shreyashi;))
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 large growth stocks, including Apple Inc AAPL.O, Alphabet Inc GOOGL.Oand Tesla Inc TSLA.O, also dropped between 0.7% and 1.5%. By Shreyashi Sanyal and Johann M Cherian Jan 25 (Reuters) - Wall Street's main indexes were set to open lower on Wednesday as downbeat quarterly updates from Microsoft and Boeing added to fears of a recession. "The environment may look attractive because some of these cloud companies, like Salesforce, are down so much, but people are still skeptical because we're heading into weaker economic news," said Robert Pavlik, senior portfolio manager at Dakota Wealth.
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Other large growth stocks, including Apple Inc AAPL.O, Alphabet Inc GOOGL.Oand Tesla Inc TSLA.O, also dropped between 0.7% and 1.5%. By Shreyashi Sanyal and Johann M Cherian Jan 25 (Reuters) - Wall Street's main indexes were set to open lower on Wednesday as downbeat quarterly updates from Microsoft and Boeing added to fears of a recession. Amazon.com Inc AMZN.O, Salesforce Inc CRM.N and ServiceNow Inc NOW.N, which have substantial cloud businesses, fell between 1.3% and 3.0%.
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Other large growth stocks, including Apple Inc AAPL.O, Alphabet Inc GOOGL.Oand Tesla Inc TSLA.O, also dropped between 0.7% and 1.5%. Shares of the software giant MSFT.O fell 2.7% in premarket trading after it warned that growth in its lucrative cloud business could stall, while its PC unit continued to struggle. Growth stocks, however, have enjoyed a bounce in January after a battering last year, with investors now focused on earnings reports to assess the impact of the Federal Reserve's rate hikes and to gauge whether the renewed enthusiasm for such stocks will be sustained.
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Other large growth stocks, including Apple Inc AAPL.O, Alphabet Inc GOOGL.Oand Tesla Inc TSLA.O, also dropped between 0.7% and 1.5%. By Shreyashi Sanyal and Johann M Cherian Jan 25 (Reuters) - Wall Street's main indexes were set to open lower on Wednesday as downbeat quarterly updates from Microsoft and Boeing added to fears of a recession. Amazon.com Inc AMZN.O, Salesforce Inc CRM.N and ServiceNow Inc NOW.N, which have substantial cloud businesses, fell between 1.3% and 3.0%.
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17442.0
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2023-01-25 00:00:00 UTC
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After Hours Most Active for Jan 25, 2023 : TSLA, GOOG, C, WIT, AAPL, TQQQ, IOVA, ALT, CLVT, DAL, AES, KMI
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-jan-25-2023-%3A-tsla-goog-c-wit-aapl-tqqq-iova-alt-clvt-dal-aes
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The NASDAQ 100 After Hours Indicator is down -19.93 to 11,794.76. The total After hours volume is currently 60,863,533 shares traded.
The following are the most active stocks for the after hours session:
Tesla, Inc. (TSLA) is +0.67 at $145.10, with 6,502,820 shares traded. Smarter Analyst Reports: Tesla Gets Environmental Approval for Gigafactory Outside Berlin — Report
Alphabet Inc. (GOOG) is -0.19 at $96.54, with 3,262,299 shares traded. As reported by Zacks, the current mean recommendation for GOOG is in the "buy range".
Citigroup Inc. (C) is -0.08 at $51.82, with 2,224,080 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2023. The consensus EPS forecast is $1.68. C's current last sale is 86.37% of the target price of $60.
Wipro Limited (WIT) is unchanged at $4.92, with 2,001,305 shares traded. WIT's current last sale is 110.56% of the target price of $4.45.
Apple Inc. (AAPL) is -0.2818 at $141.58, with 1,630,318 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
ProShares UltraPro QQQ (TQQQ) is -0.04 at $21.40, with 1,566,912 shares traded. This represents a 32.92% increase from its 52 Week Low.
Iovance Biotherapeutics, Inc. (IOVA) is -0.13 at $7.61, with 1,544,568 shares traded. As reported by Zacks, the current mean recommendation for IOVA is in the "buy range".
Altimmune, Inc. (ALT) is unchanged at $14.03, with 1,504,313 shares traded. As reported by Zacks, the current mean recommendation for ALT is in the "strong buy range".
Clarivate Plc (CLVT) is +0.005 at $10.92, with 1,230,853 shares traded. As reported by Zacks, the current mean recommendation for CLVT is in the "buy range".
Delta Air Lines, Inc. (DAL) is -0.07 at $39.31, with 1,108,809 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 $1.84. As reported by Zacks, the current mean recommendation for DAL is in the "buy range".
The AES Corporation (AES) is unchanged at $27.01, with 1,049,433 shares traded. As reported by Zacks, the current mean recommendation for AES is in the "strong buy range".
Kinder Morgan, Inc. (KMI) is +0.01 at $18.46, with 1,010,240 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2023. The consensus EPS forecast is $0.32. KMI's current last sale is 92.3% of the target price of $20.
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 -0.2818 at $141.58, with 1,630,318 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 3 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2023.
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Apple Inc. (AAPL) is -0.2818 at $141.58, with 1,630,318 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 3 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2023.
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Apple Inc. (AAPL) is -0.2818 at $141.58, with 1,630,318 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 3 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2023.
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Apple Inc. (AAPL) is -0.2818 at $141.58, with 1,630,318 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 -19.93 to 11,794.76.
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17443.0
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2023-01-25 00:00:00 UTC
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Will Soft Processor Revenues Hurt Intel (INTC) Q4 Earnings?
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AAPL
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https://www.nasdaq.com/articles/will-soft-processor-revenues-hurt-intel-intc-q4-earnings
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nan
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nan
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Intel Corporation INTC is scheduled to report fourth-quarter 2022 results after the closing bell on Jan 26. In the fourth quarter, the company is likely to have recorded lower revenues from the Client Computing Group (“CCG”) segment due to challenging macroeconomic conditions and cheaper alternatives available from rival firms.
Factors at Play
CCG is the company’s largest segment and accounts for the lion’s share of total revenues. It includes computer CPUs, several server boards and form factor systems and graphic products. The segment focuses on high-growth businesses, thin-and-light, commercial and gaming, and growing opportunities in areas such as connectivity.
In the to-be-reported quarter, Intel Foundry Services added features to its design ecosystem Accelerator program to enable assured chip design and production on advanced process technologies and meet the stringent design and production requirements of national security applications. However, the segment revenues are likely to have declined as customers continue to reduce inventory owing to a challenging macroeconomic environment, leading to lower shipments.
The company is gradually reducing its dependence on PC-centric business by transitioning into data-centric businesses such as AI and autonomous driving. Moreover, the continued ramp-down from the exit of 5G smartphone modem and Home Gateway Platform businesses is likely to have resulted in lower revenues for the segment. In addition, the prolonged Ukraine-Russia war has hampered the company's operations. All these are likely to have led to top-line contraction and increased pricing pressure.
Overall Expectations
The Zacks Consensus Estimate for revenues from the CCG segment is pegged at $7,354 million, indicating a decline from $10,133 million reported in the year-ago quarter.
The Zacks Consensus Estimate for total revenues of the company stands at pegged at $14,462 million, which indicates a decline from the year-ago quarter’s reported figure of $19,532 million. The consensus estimate for adjusted earnings per share stands at 20 cents, suggesting a sharp fall from $1.09 reported in the prior year.
Earnings Whispers
Our proven model does not predict an earnings beat for Intel this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00%, with both pegged at 20 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Intel Corporation Price and EPS Surprise
Intel Corporation price-eps-surprise | Intel Corporation Quote
Zacks Rank: Intel currently has a Zacks Rank #4 (Sell).
Stocks to Consider
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:
Apple Inc. AAPL is set to release quarterly numbers on Feb 2. It has an Earnings ESP of +0.35% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Earnings ESP for Applied Materials Inc. AMAT is +0.17% and it carries a Zacks Rank of 3. The company is scheduled to report quarterly numbers on Feb 15.
The Earnings ESP for Meta Platforms, Inc. META is +6.88% and it carries a Zacks Rank of 3. The company is scheduled to report quarterly numbers on Feb 1.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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
Intel Corporation (INTC) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Applied Materials, Inc. (AMAT) : 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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Apple Inc. AAPL is set to release quarterly numbers on Feb 2. Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Applied Materials, Inc. (AMAT) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. In the fourth quarter, the company is likely to have recorded lower revenues from the Client Computing Group (“CCG”) segment due to challenging macroeconomic conditions and cheaper alternatives available from rival firms.
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Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Applied Materials, Inc. (AMAT) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple Inc. AAPL is set to release quarterly numbers on Feb 2. Overall Expectations The Zacks Consensus Estimate for revenues from the CCG segment is pegged at $7,354 million, indicating a decline from $10,133 million reported in the year-ago quarter.
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Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Applied Materials, Inc. (AMAT) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple Inc. AAPL is set to release quarterly numbers on Feb 2. The Zacks Consensus Estimate for total revenues of the company stands at pegged at $14,462 million, which indicates a decline from the year-ago quarter’s reported figure of $19,532 million.
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Apple Inc. AAPL is set to release quarterly numbers on Feb 2. Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Applied Materials, Inc. (AMAT) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Overall Expectations The Zacks Consensus Estimate for revenues from the CCG segment is pegged at $7,354 million, indicating a decline from $10,133 million reported in the year-ago quarter.
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17444.0
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2023-01-25 00:00:00 UTC
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Will Lower Data Center Revenues Dent Intel (INTC) Q4 Earnings?
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AAPL
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https://www.nasdaq.com/articles/will-lower-data-center-revenues-dent-intel-intc-q4-earnings
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nan
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nan
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Intel Corporation INTC is scheduled to report fourth-quarter 2022 results after the closing bell on Jan 26. In the fourth quarter, the company is likely to have recorded lower revenues from the Datacenter and AI Group (DCAI) segment due to dwindling PC sales, supply chain adversities and an uncertain macroeconomic environment.
Factors at Play
The DCAI segment seeks to develop leading data center products, including Intel Xeon servers and field programmable gate array products, while overseeing the overall artificial intelligence (AI) strategy.
In the to-be-reported quarter, Intel unveiled the 2023 version of the oneAPI tools that will support the upcoming 4th Gen Xeon Scalable processors, Xeon CPU Max Series and Data Center GPUs (released in January 2023). In addition to improved performance and productivity enhancements, the tools offer support for new Codeplay plug-ins that make it easier for developers to write SYCL code for non-Intel GPU architectures.
However, delay in 7 nm process-based chips, renamed Intel 4, is a major concern. The company detected a defect mode in the 7 nm process, which caused yield degradation. Notably, Intel’s chips utilize process technologies that are designed in-house. After much delay, Intel released the data center GPU design, Ponte Vecchio, in November 2022. The chipmaker now expects initial production shipments of the first Intel-based 7 nm client CPU in early 2023. Moreover, initial production shipments of Intel’s first in-house-based 7-nm data center CPU design are scheduled in the first half of 2023. All these are likely to affect the segment’s revenues.
In addition, deteriorating PC sales owing to market saturation, supply chain woes, inflationary pressures and a challenging macroeconomic environment are likely to have weighed on the company’s top-line performance. Intel is also witnessing intensifying competition in the server, storage and networking markets.
Overall Expectations
The Zacks Consensus Estimate for revenues from the DCAI segment is pegged at $4,094 million, indicating a decline from $7,306 million reported in the year-ago quarter.
The Zacks Consensus Estimate for total revenues of the company stands at pegged at $14,462 million, which indicates a decline from the year-ago quarter’s reported figure of $19,532 million. The consensus estimate for adjusted earnings per share stands at 20 cents, suggesting a sharp fall from $1.09 reported in the prior year.
Earnings Whispers
Our proven model does not predict an earnings beat for Intel this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00%, with both pegged at 20 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Intel Corporation Price and EPS Surprise
Intel Corporation price-eps-surprise | Intel Corporation Quote
Zacks Rank: Intel currently has a Zacks Rank #4 (Sell).
Stocks to Consider
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:
Apple Inc. AAPL is set to release quarterly numbers on Feb 2. It has an Earnings ESP of +0.35% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Earnings ESP for Applied Materials Inc. AMAT is +0.17% and it carries a Zacks Rank of 3. The company is scheduled to report quarterly numbers on Feb 15.
The Earnings ESP for Meta Platforms, Inc. META is +6.88% and it carries a Zacks Rank of 3. The company is scheduled to report quarterly numbers on Feb 1.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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
Intel Corporation (INTC) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Applied Materials, Inc. (AMAT) : 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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Apple Inc. AAPL is set to release quarterly numbers on Feb 2. Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Applied Materials, Inc. (AMAT) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. In the fourth quarter, the company is likely to have recorded lower revenues from the Datacenter and AI Group (DCAI) segment due to dwindling PC sales, supply chain adversities and an uncertain macroeconomic environment.
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Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Applied Materials, Inc. (AMAT) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple Inc. AAPL is set to release quarterly numbers on Feb 2. Overall Expectations The Zacks Consensus Estimate for revenues from the DCAI segment is pegged at $4,094 million, indicating a decline from $7,306 million reported in the year-ago quarter.
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Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Applied Materials, Inc. (AMAT) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple Inc. AAPL is set to release quarterly numbers on Feb 2. Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00%, with both pegged at 20 cents.
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Apple Inc. AAPL is set to release quarterly numbers on Feb 2. Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Applied Materials, Inc. (AMAT) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Moreover, initial production shipments of Intel’s first in-house-based 7-nm data center CPU design are scheduled in the first half of 2023.
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17445.0
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2023-01-25 00:00:00 UTC
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Google says U.S. Justice Department complaint is 'without merit'
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AAPL
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https://www.nasdaq.com/articles/google-says-u.s.-justice-department-complaint-is-without-merit
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nan
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nan
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Adds background, analyst comment
Jan 25 (Reuters) - Alphabet Inc's GOOGL.O Google said on Wednesday it believes the complaint from the U.S. Department of Justice accusing the company of abusing its dominance in digital advertising is "without merit".
The company also added it will "defend itself vigorously".
The government on Tuesday said Google should be forced to sell its ad manager suite, tackling a business that generated about 12% of Google's revenue in 2021 while also playing a vital role in the search engine and cloud company's overall sales.
Google, which depends on its advertising business for about 80% of its revenue, said the government was "doubling down on a flawed argument that would slow innovation, raise advertising fees and make it harder for thousands of small businesses and publishers to grow."
The federal government has said its Big Tech investigations and lawsuits are aimed at leveling the playing field for smaller rivals who are up against a group of powerful companies that include Amazon.com AMZN.O, Facebook-owner Meta Platforms META.O and Apple Inc AAPL.O.
"In contrast with prior cases/investigations against Google's ad tech biz, we view the DOJ complaint as fairly substantive and preempting some potential Google lines of defense," said Wells Fargo analyst Brian Fitzgerald.
(Reporting by Tiyashi Datta and Nivedita Balu in Bengaluru; Editing by Krishna Chandra Eluri)
((tiyashi.datta@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 federal government has said its Big Tech investigations and lawsuits are aimed at leveling the playing field for smaller rivals who are up against a group of powerful companies that include Amazon.com AMZN.O, Facebook-owner Meta Platforms META.O and Apple Inc AAPL.O. Adds background, analyst comment Jan 25 (Reuters) - Alphabet Inc's GOOGL.O Google said on Wednesday it believes the complaint from the U.S. Department of Justice accusing the company of abusing its dominance in digital advertising is "without merit". Google, which depends on its advertising business for about 80% of its revenue, said the government was "doubling down on a flawed argument that would slow innovation, raise advertising fees and make it harder for thousands of small businesses and publishers to grow."
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The federal government has said its Big Tech investigations and lawsuits are aimed at leveling the playing field for smaller rivals who are up against a group of powerful companies that include Amazon.com AMZN.O, Facebook-owner Meta Platforms META.O and Apple Inc AAPL.O. The government on Tuesday said Google should be forced to sell its ad manager suite, tackling a business that generated about 12% of Google's revenue in 2021 while also playing a vital role in the search engine and cloud company's overall sales. Google, which depends on its advertising business for about 80% of its revenue, said the government was "doubling down on a flawed argument that would slow innovation, raise advertising fees and make it harder for thousands of small businesses and publishers to grow."
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The federal government has said its Big Tech investigations and lawsuits are aimed at leveling the playing field for smaller rivals who are up against a group of powerful companies that include Amazon.com AMZN.O, Facebook-owner Meta Platforms META.O and Apple Inc AAPL.O. The government on Tuesday said Google should be forced to sell its ad manager suite, tackling a business that generated about 12% of Google's revenue in 2021 while also playing a vital role in the search engine and cloud company's overall sales. Google, which depends on its advertising business for about 80% of its revenue, said the government was "doubling down on a flawed argument that would slow innovation, raise advertising fees and make it harder for thousands of small businesses and publishers to grow."
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The federal government has said its Big Tech investigations and lawsuits are aimed at leveling the playing field for smaller rivals who are up against a group of powerful companies that include Amazon.com AMZN.O, Facebook-owner Meta Platforms META.O and Apple Inc AAPL.O. Adds background, analyst comment Jan 25 (Reuters) - Alphabet Inc's GOOGL.O Google said on Wednesday it believes the complaint from the U.S. Department of Justice accusing the company of abusing its dominance in digital advertising is "without merit". The company also added it will "defend itself vigorously".
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17446.0
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2023-01-25 00:00:00 UTC
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Should iShares Core S&P 500 ETF (IVV) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-ishares-core-sp-500-etf-ivv-be-on-your-investing-radar-4
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The iShares Core S&P 500 ETF (IVV) was launched on 05/15/2000, 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 Blackrock. It has amassed assets over $301.85 billion, making it the largest ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Large cap companies typically have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.
Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.
Costs
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 counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0.03%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.59%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 26.30% of the portfolio. Healthcare and Financials round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 5.83% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN).
The top 10 holdings account for about 20.15% of total assets under management.
Performance and Risk
IVV seeks to match the performance of the S&P 500 Index before fees and expenses. The S&P 500 Index measures the performance of the large-capitalization sector of the U.S. equity market.
The ETF has gained about 4.67% so far this year and is down about -7.47% in the last one year (as of 01/25/2023). In the past 52-week period, it has traded between $357.98 and $463.67.
The ETF has a beta of 1 and standard deviation of 25.50% for the trailing three-year period, making it a medium risk choice in the space. With about 509 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Core S&P 500 ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, IVV is an outstanding option for investors seeking exposure to the Style Box - Large Cap Blend segment of the market. There are other additional ETFs in the space that investors could consider as well.
The Vanguard S&P 500 ETF (VOO) and the SPDR S&P 500 ETF (SPY) track the same index. While Vanguard S&P 500 ETF has $274.47 billion in assets, SPDR S&P 500 ETF has $373.73 billion. VOO 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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iShares Core S&P 500 ETF (IVV): 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
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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 5.83% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report iShares Core S&P 500 ETF (IVV): 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 Vanguard S&P 500 ETF (VOO): ETF Research Reports To read this article on Zacks.com click here. The iShares Core S&P 500 ETF (IVV) was launched on 05/15/2000, 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 iShares Core S&P 500 ETF (IVV): 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 Vanguard S&P 500 ETF (VOO): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 5.83% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). The iShares Core S&P 500 ETF (IVV) was launched on 05/15/2000, 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 iShares Core S&P 500 ETF (IVV): 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 Vanguard S&P 500 ETF (VOO): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 5.83% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Alternatives IShares Core S&P 500 ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 5.83% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report iShares Core S&P 500 ETF (IVV): 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 Vanguard S&P 500 ETF (VOO): ETF Research Reports To read this article on Zacks.com click here. The iShares Core S&P 500 ETF (IVV) was launched on 05/15/2000, 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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17447.0
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2023-01-25 00:00:00 UTC
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US STOCKS-Nasdaq futures drop 1% after Microsoft's bleak outlook
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AAPL
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https://www.nasdaq.com/articles/us-stocks-nasdaq-futures-drop-1-after-microsofts-bleak-outlook
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nan
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For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
Futures down: Nasdaq 1.18%, S&P 0.79%, Dow 0.64%
Jan 25 (Reuters) - Nasdaq futures fell more than 1% on Wednesday as Microsoft led declines in tech stocks after it forecast current-quarter cloud revenue below Wall Street estimates.
Microsoft CorpMSFT.O shares fell 2.1% in premarket trading after it warned that growth in its cloud business, which helped the company meet analysts' expectations in the second quarter, could stall, while its PC unit continues to struggle.
Other large growth stocks including Amazon.com Inc AMZN.O, Tesla Inc TSLA.O, Apple Inc AAPL.O and Alphabet Inc GOOGL.O also dropped between 1% and 2%.
Growth stocks have enjoyed a bounce in January after a battering last year, with investors now focused on earnings reports to assess the impact of the Federal Reserve's rate hikes and to gauge whether the renewed enthusiasm for such stocks will be sustained.
"Microsoft is dealing with a marked slowdown in personal computing revenues, which reflects the incredibly challenging consumer environment," Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown wrote in a client note.
"Despite renewed hope that interest rate hikes might be slowed and peak inflation coming into view, buying a new laptop and the software that comes with it is simply not a priority for many people right now."
Microsoft was also hit with a that disrupted its cloud platform, Azure, along with services such as Teams and Outlook, potentially affecting millions of users globally.
At 5:30 a.m. ET, Dow e-minis 1YMcv1 were down 215 points, or 0.64%, S&P 500 e-minis EScv1 were down 31.75 points, or 0.79%, and Nasdaq 100 e-minis NQcv1 were down 140.25 points, or 1.18%.
(Reporting by Shreyashi Sanyal in Bengaluru Editing by Vinay Dwivedi)
((Shreyashi.Sanyal@thomsonreuters.com; +1 646 223 8780; +91 961 144 3740; Twitter: https://twitter.com/s_shreyashi;))
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 large growth stocks including Amazon.com Inc AMZN.O, Tesla Inc TSLA.O, Apple Inc AAPL.O and Alphabet Inc GOOGL.O also dropped between 1% and 2%. Microsoft CorpMSFT.O shares fell 2.1% in premarket trading after it warned that growth in its cloud business, which helped the company meet analysts' expectations in the second quarter, could stall, while its PC unit continues to struggle. "Microsoft is dealing with a marked slowdown in personal computing revenues, which reflects the incredibly challenging consumer environment," Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown wrote in a client note.
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Other large growth stocks including Amazon.com Inc AMZN.O, Tesla Inc TSLA.O, Apple Inc AAPL.O and Alphabet Inc GOOGL.O also dropped between 1% and 2%. Futures down: Nasdaq 1.18%, S&P 0.79%, Dow 0.64% Jan 25 (Reuters) - Nasdaq futures fell more than 1% on Wednesday as Microsoft led declines in tech stocks after it forecast current-quarter cloud revenue below Wall Street estimates. ET, Dow e-minis 1YMcv1 were down 215 points, or 0.64%, S&P 500 e-minis EScv1 were down 31.75 points, or 0.79%, and Nasdaq 100 e-minis NQcv1 were down 140.25 points, or 1.18%.
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Other large growth stocks including Amazon.com Inc AMZN.O, Tesla Inc TSLA.O, Apple Inc AAPL.O and Alphabet Inc GOOGL.O also dropped between 1% and 2%. Futures down: Nasdaq 1.18%, S&P 0.79%, Dow 0.64% Jan 25 (Reuters) - Nasdaq futures fell more than 1% on Wednesday as Microsoft led declines in tech stocks after it forecast current-quarter cloud revenue below Wall Street estimates. Growth stocks have enjoyed a bounce in January after a battering last year, with investors now focused on earnings reports to assess the impact of the Federal Reserve's rate hikes and to gauge whether the renewed enthusiasm for such stocks will be sustained.
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Other large growth stocks including Amazon.com Inc AMZN.O, Tesla Inc TSLA.O, Apple Inc AAPL.O and Alphabet Inc GOOGL.O also dropped between 1% and 2%. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window. Futures down: Nasdaq 1.18%, S&P 0.79%, Dow 0.64% Jan 25 (Reuters) - Nasdaq futures fell more than 1% on Wednesday as Microsoft led declines in tech stocks after it forecast current-quarter cloud revenue below Wall Street estimates.
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17448.0
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2023-01-25 00:00:00 UTC
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3 No-Brainer Warren Buffett Stocks to Buy Right Now
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https://www.nasdaq.com/articles/3-no-brainer-warren-buffett-stocks-to-buy-right-now-3
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nan
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While the S&P 500 turned in an underwhelming performance over the past year and lost nearly 10% of its value, Warren Buffett's holding company Berkshire Hathaway's (NYSE: BRK.A)(NYSE: BRK.B) Class A shares held their ground nicely with gains of 2.4% during the same period.
The Oracle of Omaha easily outpaced the broader market's performance amid the downturn, which can be attributed to the Berkshire CEO's smart investment strategies. However, not all stocks in Buffett's portfolio escaped the broad market sell-off. Shares of Apple (NASDAQ: AAPL), Snowflake (NYSE: SNOW), and Amazon (NASDAQ: AMZN) dropped 15%, 32%, and 46%, respectively, over the past year. However, their declines mean that investors have an opportunity to buy potential long-term winners at attractive valuations.
Let's look at the reasons why buying these stocks right now is a no-brainer.
1. Apple
Apple stock may have been an underperformer over the past year, but the tech giant generates solid dividend income for Berkshire Hathaway. That's not surprising, as Apple is Berkshire's biggest holding. And investors now have an opportunity to buy this dividend-paying tech stock at a discount, as it is trading at 22 times trailing earnings, compared to its five-year average price-to-earnings ratio of 24.
Of course, Apple faces near-term headwinds thanks to a slowdown in sales of smartphones and personal computers (PCs), which explains why its top and bottom lines are expected to grow slowly in fiscal 2023. Analysts anticipate a 2.3% jump in Apple's revenue this year to $403 billion, while earnings could increase to $6.17 per share from $6.11 per share last fiscal year.
However, investors would do well to focus on the bigger picture, as Apple's bottom line is estimated to increase at nearly 9% a year for the next five years. But it also wouldn't be surprising to see it clock faster growth.
Apple is dominating the 5G smartphone space in terms of revenue share. Counterpoint Research points out that Apple's revenue share of the 5G smartphone market stood at 42% in the third quarter of 2022, up from 37.1% in the year-ago period thanks to an increase in the average selling price (ASP) of the iPhone.
With the global 5G smartphone market expected to generate over $4 trillion in annual revenue by 2027, Apple's terrific revenue share in this space should turn out to be a solid catalyst for the company's long-term growth. Additionally, the company's moves in emerging markets such as India could unlock another major growth opportunity in the long run.
So it would be a good idea for investors to accumulate Apple stock for the long run considering its attractive valuation and the potential acceleration in the company's growth.
2. Snowflake
Snowflake doesn't look like a typical Buffett stock given its expensive valuation, but Berkshire holds a 1.9% stake in the cloud platform provider. A closer look at Snowflake's financial performance and the industry in which it operates suggests that this could turn out to be a smart investment in the long run.
The company has a massive total addressable revenue opportunity worth $248 billion spread across multiple applications such as data warehouse, data lake, data science, and cybersecurity. More importantly, Snowflake's growth trajectory suggests that it is doing well to take advantage of the huge revenue opportunity it is sitting on.
SNOW Revenue (TTM) data by YCharts
That momentum looks like it's here to stay, as Snowflake had $3 billion worth of remaining performance obligations at the end of the third quarter of fiscal 2023 (for the three months ended Oct. 31, 2022). The metric refers to the "amount of contracted future revenue that has not yet been recognized." Given that Snowflake generated $1.86 billion of revenue in the trailing 12 months, it is evident that the company has built up an impressive revenue pipeline.
Not surprisingly, Snowflake's revenue is expected to grow at a terrific pace in the coming years as well following a 68% jump in fiscal 2023 to $2.05 billion.
SNOW Revenue Estimates for Current Fiscal Year data by YCharts
The company should be able to match Wall Street's ambitious revenue growth estimates given that it is among the leading players in fast-growing categories such as data warehouse, with a market share of 18.6%. The data warehouse market alone is expected to clock nearly 23% annual growth through 2030, which should pave the way for incremental revenue growth at Snowflake.
Buying Snowflake stock will come at a price, as it is trading at a rich 24 times sales. But the company's eye-popping growth and its ability to sustain that growth justify that valuation. Also, investors are getting a relatively good deal on this cloud stock right now, as it trades at a much cheaper level than where it was a year ago.
SNOW PS Ratio data by YCharts
As such, growth investors looking to buy a fast-growing company might want to consider Snowflake given its relatively attractive valuation and rapid growth.
3. Amazon
With shares trading at less than 2 times sales, buying Amazon looks like a no-brainer right now given the company's multiple catalysts, which should help it deliver a stronger 2023. From a potential recovery in e-commerce sales to the secular growth of the cloud computing market and the company's fast-growing advertising business, investors have several reasons to buy this Warren Buffett stock at its cheap valuation.
Global e-commerce sales are expected to increase 10.4% in 2023 following a 9.7% increase in 2022, according to eMarketer. As a result, Amazon should enjoy favorable year-over-year comparisons in 2023 -- especially since the company had to deal with a big slowdown in e-commerce growth last year after it grew 17% in 2021.
Meanwhile, Amazon's 34% share of the cloud services market is another reason to be positive about the company's prospects this year. Gartner estimates that global spending on public cloud services could increase close to 21% this year to $592 billion, which would be an improvement over last year's increase of 19%. So Amazon's two key end markets are on track to enjoy healthy growth in 2023.
Throw in the company's solid prospects in the advertising business, which has been growing at a faster pace than the broader market, and it is easy to see why Amazon's growth is expected to pick up pace this year. It is expected to swing to a profit of $1.62 per share from last year's estimated loss of $0.11 per share. Additionally, its top-line growth is also expected to gather momentum after increasing an estimated 8.6% in 2022 to $510 billion.
AMZN Revenue Estimates for Current Fiscal Year data by YCharts
All this indicates that Amazon stock could head higher in 2023, and it could sustain its growth over the long run as well, which is why investors should consider buying it while it is still down.
10 stocks we like better than Apple
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*Stock Advisor returns as of January 9, 2023
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon.com, Apple, Berkshire Hathaway, and Snowflake. The Motley Fool recommends Gartner and recommends the following options: long January 2023 $200 calls on Berkshire Hathaway, long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway, short January 2023 $265 calls on Berkshire Hathaway, and short March 2023 $130 calls on 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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Shares of Apple (NASDAQ: AAPL), Snowflake (NYSE: SNOW), and Amazon (NASDAQ: AMZN) dropped 15%, 32%, and 46%, respectively, over the past year. Of course, Apple faces near-term headwinds thanks to a slowdown in sales of smartphones and personal computers (PCs), which explains why its top and bottom lines are expected to grow slowly in fiscal 2023. Counterpoint Research points out that Apple's revenue share of the 5G smartphone market stood at 42% in the third quarter of 2022, up from 37.1% in the year-ago period thanks to an increase in the average selling price (ASP) of the iPhone.
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Shares of Apple (NASDAQ: AAPL), Snowflake (NYSE: SNOW), and Amazon (NASDAQ: AMZN) dropped 15%, 32%, and 46%, respectively, over the past year. With the global 5G smartphone market expected to generate over $4 trillion in annual revenue by 2027, Apple's terrific revenue share in this space should turn out to be a solid catalyst for the company's long-term growth. From a potential recovery in e-commerce sales to the secular growth of the cloud computing market and the company's fast-growing advertising business, investors have several reasons to buy this Warren Buffett stock at its cheap valuation.
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Shares of Apple (NASDAQ: AAPL), Snowflake (NYSE: SNOW), and Amazon (NASDAQ: AMZN) dropped 15%, 32%, and 46%, respectively, over the past year. With the global 5G smartphone market expected to generate over $4 trillion in annual revenue by 2027, Apple's terrific revenue share in this space should turn out to be a solid catalyst for the company's long-term growth. SNOW Revenue Estimates for Current Fiscal Year data by YCharts The company should be able to match Wall Street's ambitious revenue growth estimates given that it is among the leading players in fast-growing categories such as data warehouse, with a market share of 18.6%.
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Shares of Apple (NASDAQ: AAPL), Snowflake (NYSE: SNOW), and Amazon (NASDAQ: AMZN) dropped 15%, 32%, and 46%, respectively, over the past year. Analysts anticipate a 2.3% jump in Apple's revenue this year to $403 billion, while earnings could increase to $6.17 per share from $6.11 per share last fiscal year. From a potential recovery in e-commerce sales to the secular growth of the cloud computing market and the company's fast-growing advertising business, investors have several reasons to buy this Warren Buffett stock at its cheap valuation.
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17449.0
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2023-01-25 00:00:00 UTC
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Better Buy in 2023: Apple Stock vs. Disney Stock
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AAPL
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https://www.nasdaq.com/articles/better-buy-in-2023%3A-apple-stock-vs.-disney-stock
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nan
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nan
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Many companies and investors will be happy to see 2022 in their rearview mirrors after the significant market declines that plagued the whole year. Rises in inflation and interest rates were detrimental to many businesses' earnings growth, with their stocks suffering the brunt of economic challenges.
However, the start of 2023 has Wall Street optimistic, as the Nasdaq Composite index is up 6% since Jan. 1. Companies such as Apple (NASDAQ: AAPL) and Disney (NYSE: DIS) enjoyed increases in their stock prices alongside the market's recovery this year. These market leaders are titans of their respective industries, suggesting their stocks might be worth buying before they completely bounce back.
So, is your money better off with Apple's or Disney's stock? Let's take a look.
1. Apple
Apple shares have risen about 6% year to date, with new product releases and reports on future projects rallying investors. However, the company's stock is still down 15% year over year, presenting a buying opportunity.
The tech giant's shares make an asset for any portfolio thanks to consistent growth and high demand for its products. In fact, Apple's stock rose 209% in the last five years (at this writing) and 672% in the last 10, making it an investment you can buy now and leave to grow over the long term.
The new year has only just started, and Apple has already announced additions to its lineup. The new products include upgrades to its MacBook Pro, featuring new M2 Pro and M2 Max chips, a more powerful Mac mini, and a second-generation HomePod. The new Macs bring Apple closer to completing its transition from Intel chips to its custom version, Apple Silicon.
The company is expected to fully complete the changeover to Apple Silicon this year, relieving itself of any reliance on Intel and boosting profit margins in its Mac segment by ending the costly partnership.
In addition to Macs, Apple is working toward using more in-house components in iPhones. This month, Bloomberg reported the company would begin swapping telecom chips and smartphone screens from companies like Qualcomm and Samsung for custom-designed ones within the next two years.
By utilizing more in-house components, Apple is looking out for its long-term future, with the change likely to increase its operating income per product. As a result, the company can potentially sell fewer products in the event of an economic downturn but keep revenue high.
2. Disney
After a challenging 2022, Disney has started the new year with a bang as its stock has soared more than 19% since Jan. 1. A box office hit with Avatar: The Way of Water and Netflix's news that it added 7.7 million subscribers last quarter has investors feeling bullish over the House of Mouse's prospects.
The company was hit hard in recent years, with pandemic closures in 2020 and 2021 wiping out revenue from theme parks and movie theaters. Disney used the downtime to expand its streaming presence with the launch of Disney+, but that has also been a costly venture.
In its most recent quarter, the company's parks revenue soared 36% year over year to $7.4 billion, and operating income shot up over 100% as reopenings welcomed guests back in droves. However, Disney's media and entertainment segment disappointed, with revenue falling 3% to $12.7 billion and operating income plunging 91% to $83 million after a hefty investment in streaming content. As a result, signs that media earnings may be improving this year made investors more optimistic about Disney's future.
Moreover, Disney's challenges over the last few years have been detrimental to its long-term stock growth, with its shares down 6% over the last five years. Compared to Apple's over 200% stock growth in the same period, it's clear which has been the more reliable investment.
This year marks 100 years since Disney's founding, with the company the undeniable king of entertainment in nearly any form. However, its performance in an economic downturn over the last year and its price-to-earnings ratio of 60 compared to Apple's 22 make Disney a questionable choice. Apple's consistent stock growth and plans to safeguard its business over the long term by using more in-house components make its stock the better buy in 2023.
10 stocks we like better than Apple
When our award-winning 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 January 9, 2023
Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Intel, Netflix, Qualcomm, and Walt Disney. The Motley Fool recommends the following options: long January 2023 $57.50 calls on Intel, long January 2024 $145 calls on Walt Disney, long January 2025 $45 calls on Intel, long March 2023 $120 calls on Apple, short January 2024 $155 calls on Walt Disney, short January 2025 $45 puts on Intel, and short March 2023 $130 calls on 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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Companies such as Apple (NASDAQ: AAPL) and Disney (NYSE: DIS) enjoyed increases in their stock prices alongside the market's recovery this year. The company is expected to fully complete the changeover to Apple Silicon this year, relieving itself of any reliance on Intel and boosting profit margins in its Mac segment by ending the costly partnership. A box office hit with Avatar: The Way of Water and Netflix's news that it added 7.7 million subscribers last quarter has investors feeling bullish over the House of Mouse's prospects.
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Companies such as Apple (NASDAQ: AAPL) and Disney (NYSE: DIS) enjoyed increases in their stock prices alongside the market's recovery this year. In its most recent quarter, the company's parks revenue soared 36% year over year to $7.4 billion, and operating income shot up over 100% as reopenings welcomed guests back in droves. The Motley Fool has positions in and recommends Apple, Intel, Netflix, Qualcomm, and Walt Disney.
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Companies such as Apple (NASDAQ: AAPL) and Disney (NYSE: DIS) enjoyed increases in their stock prices alongside the market's recovery this year. Moreover, Disney's challenges over the last few years have been detrimental to its long-term stock growth, with its shares down 6% over the last five years. The Motley Fool recommends the following options: long January 2023 $57.50 calls on Intel, long January 2024 $145 calls on Walt Disney, long January 2025 $45 calls on Intel, long March 2023 $120 calls on Apple, short January 2024 $155 calls on Walt Disney, short January 2025 $45 puts on Intel, and short March 2023 $130 calls on Apple.
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Companies such as Apple (NASDAQ: AAPL) and Disney (NYSE: DIS) enjoyed increases in their stock prices alongside the market's recovery this year. Moreover, Disney's challenges over the last few years have been detrimental to its long-term stock growth, with its shares down 6% over the last five years. Apple's consistent stock growth and plans to safeguard its business over the long term by using more in-house components make its stock the better buy in 2023.
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17450.0
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2023-01-25 00:00:00 UTC
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MORNING BID-Running out of breath
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AAPL
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https://www.nasdaq.com/articles/morning-bid-running-out-of-breath
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nan
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A look at the day ahead in European and global markets from Anshuman Daga
After a strong start to the year, fuelled by hopes that the outlook for the world economy was not shaping up as bad as expected a few months ago, stocks are finally taking a breather.
Asian equities held steady on Wednesday near seven-month highs after a mixed session on Wall Street.
On the corporate front, Barclays BARC.L CEO C.S. Venkatakrishnan appointed former Credit Suisse CSGN.S dealmaker Cathal Deasy as co-head of investment banking with a view to grow the business and an eye for succession.
And a group of minority shareholders that appealed against the French government's full nationalisation of energy giant EDF EDF.PA dropped the motion on the eve of the hearing.
On a thin day for economic data, focus will be on U.K. producer prices and the German IFO.
European stock futures dipped 0.3%, indicating a weaker start for markets, while U.S. stock futures EScv1 shed 0.5%.
Revenue at Europe's largest companies is expected to have risen by just 0.9% in the fourth quarter, Refinitiv I/B/E/S data showed on Tuesday.
The forecast, which tracks companies listed on the pan-European STOXX 600 .STOXX benchmark index, represents a drop from last week when analysts expected revenue growth of 4%.
Investment strategists at Standard Chartered say it is time to fade the rally seen in European stocks and the euro since the lows of September.
They say an unusually warm winter has allayed fears of wide-spread energy shortages and rationing in Europe. China's economic reopening has been another tailwind for European exporters' prospects.
But they outlined many challenges for European equities, including stretched technicals and an increasingly hawkish central bank policy.
Meanwhile, Microsoft MSFT.O kicked off the U.S. tech season with a sobering outlook and forecast that third-quarter revenue in its cloud business would come just shy of market forecasts.
The 2% increase in the last quarter's revenue, the slowest in more than five years, signalled tougher times for tech companies just as Apple AAPL.O and Google-parent Alphabet GOOGL.O are due to report earnings next week.
Key developments that could influence markets on Wednesday:
Economic data: U.K. December producer prices, Germany January Ifo
European results: Christian Dior
U.S. results: IBM, AT&T, Boeing, Whirlpool
Analysts downgrade earnings forecastshttps://tmsnrt.rs/3DqkBav
Microsoft's slowing quarterly revenue growthhttps://tmsnrt.rs/3DcGcmF
(Reporting by Anshuman Daga; Editing by Christopher Cushing)
((anshuman.daga@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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The 2% increase in the last quarter's revenue, the slowest in more than five years, signalled tougher times for tech companies just as Apple AAPL.O and Google-parent Alphabet GOOGL.O are due to report earnings next week. A look at the day ahead in European and global markets from Anshuman Daga After a strong start to the year, fuelled by hopes that the outlook for the world economy was not shaping up as bad as expected a few months ago, stocks are finally taking a breather. Key developments that could influence markets on Wednesday: Economic data: U.K. December producer prices, Germany January Ifo European results: Christian Dior U.S. results: IBM, AT&T, Boeing, Whirlpool Analysts downgrade earnings forecastshttps://tmsnrt.rs/3DqkBav Microsoft's slowing quarterly revenue growthhttps://tmsnrt.rs/3DcGcmF (Reporting by Anshuman Daga; Editing by Christopher Cushing) ((anshuman.daga@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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The 2% increase in the last quarter's revenue, the slowest in more than five years, signalled tougher times for tech companies just as Apple AAPL.O and Google-parent Alphabet GOOGL.O are due to report earnings next week. European stock futures dipped 0.3%, indicating a weaker start for markets, while U.S. stock futures EScv1 shed 0.5%. The forecast, which tracks companies listed on the pan-European STOXX 600 .STOXX benchmark index, represents a drop from last week when analysts expected revenue growth of 4%.
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The 2% increase in the last quarter's revenue, the slowest in more than five years, signalled tougher times for tech companies just as Apple AAPL.O and Google-parent Alphabet GOOGL.O are due to report earnings next week. A look at the day ahead in European and global markets from Anshuman Daga After a strong start to the year, fuelled by hopes that the outlook for the world economy was not shaping up as bad as expected a few months ago, stocks are finally taking a breather. European stock futures dipped 0.3%, indicating a weaker start for markets, while U.S. stock futures EScv1 shed 0.5%.
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The 2% increase in the last quarter's revenue, the slowest in more than five years, signalled tougher times for tech companies just as Apple AAPL.O and Google-parent Alphabet GOOGL.O are due to report earnings next week. Asian equities held steady on Wednesday near seven-month highs after a mixed session on Wall Street. European stock futures dipped 0.3%, indicating a weaker start for markets, while U.S. stock futures EScv1 shed 0.5%.
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17451.0
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2023-01-25 00:00:00 UTC
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Apple's Chip Strategy Is Great News for Shareholders, Bad News for Skyworks, Broadcom, and Qualcomm
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AAPL
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https://www.nasdaq.com/articles/apples-chip-strategy-is-great-news-for-shareholders-bad-news-for-skyworks-broadcom-and
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Apple (NASDAQ: AAPL) is the world's largest company, Warren Buffett's largest holding, and one of the most successful stocks of this millennium.
However, even with a record that impressive, its management team is not resting on its laurels. In order to improve its products and maintain or expand its already-high margins, Apple has embarked on a new strategy: to design more and more of the semiconductors that will go into its smartphones, computers, and other electronic devices.
This plan entails some risk, but also could deliver a lot of advantages for Apple if it's successful. On the other hand, its strategy should continue to be an overhang for major component suppliers Qualcomm (NASDAQ: QCOM), Broadcom (NASDAQ: AVGO), and Skyworks Solutions (NASDAQ: SWKS).
Apple's vertical integration efforts to date
When a company manufactures more of the sub-components that go into its end devices, that's a strategy called vertical integration.
Of note, this has been an aspect of Apple's brand since its founding. Unlike other device makers, Apple never used the industry standard Windows operating system for PCs, nor the Android operating system for smartphones. Rather, Apple has its own proprietary macOS and iOS operating systems, which allow for tighter integration with hardware components and design.
So, Apple has always married proprietary software with its hardware. However, its expertise has been in design, not making the semiconductors for its devices. In the 20th century, semiconductor manufacturing was expensive, and required lots of design and manufacturing expertise.
However, as Apple got bigger, it gained more resources to invest in research and development. In the 2000s, the semiconductor industry also began to gravitate toward an outsourced foundry model under which third-party chip manufacturers gained snowballing manufacturing expertise and scale while letting "fabless" chip designers operate without shouldering the high costs of owing the manufacturing infrastructure. That meant Apple could build its own internal chip designer.
In 2010, Apple unveiled its A-series system-on-a-chip for the iPhone, which contained a proprietary CPU and GPU, along with other intelligence. Then in 2020, Apple dumped Intel's processors for its Mac computers and replaced them with its own M-series CPU processors. In 2019, Apple bought the Intel unit that manufactures cellular modems -- the hardware components that connect cellphones with mobile cell towers. While Apple has not yet been able to stop using modems from Qualcomm (the dominant player in that niche) in its phones, it plans to transition away from them by 2024 or 2025, according to Bloomberg. And just a couple of weeks ago, Bloomberg reported that Apple was looking to replace Broadcom's radio frequency and wireless charging chips with its own proprietary chips by 2025. Bloomberg also reported Apple is looking to replace various chips from Skyworks in the future, though its plans on that front aren't definitive yet.
The risks and rewards for Apple
Obviously, if Apple is designing its own chips, it has to invest in research and development. Moreover, there is the risk that Apple's internal teams won't be able to devise better components than its current suppliers, which, after all, specialize in chip design.
On the other hand, the apparent potential benefits seem to outweigh the risks. First, because Apple can coordinate its component design into a single end product, its engineers should be able to design chips that perform optimally with each other in the context of a whole device system.
And while Apple does have to invest in incremental R&D, it should be able to make up for that in gross margin savings. Over the last 12 months, Qualcomm had a gross margin of 58%, Broadcom had a gross margin of 75%, and Skyworks had a gross margin of 47%. Since Apple sells devices at such massive scales, vertical integration could yield huge savings.
In fact, the margin savings it has already achieved via in-house component design have already been substantial. Even though the past year featured high cost inflation for the company due to elevated materials and shipping costs, Apple surprised tech watchers in September by keeping prices for the iPhone stable, and prices for the Apple Watch at lower-than-expected levels. It's estimated that replacing Intel chips with its in-house Series M chips in Macs alone is saving Apple $2.5 billion per year in licensing fees.
Image source: Getty Images.
Who is at risk?
Obviously, the likelihood of losing some or all of Apple's business could be a headwind for shares of Skyworks, Broadcom, and Qualcomm. In the past year, Apple accounted for roughly 21% of Qualcomm's revenue. However, even if Apple is able to replace Qualcomm's chips with its own, it may have to continue paying patent licensing fees to the chipmaker. So Qualcomm may not lose 100% of its Apple revenue.
According to Bloomberg, Apple also accounted for about 20% of Broadcom's revenue. So for that component maker, the risk -- assuming its components are replaced in 2025 -- would be greater. And while there have been no definitive reports confirming that Apple's planning to phase out its use of Skyworks' components, that would be a much bigger deal for the company: Apple accounts for 58% of Skyworks' revenue.
Of course, this is all known by the markets, and is probably why Qualcomm trades at 12 times this year's earnings estimates, Broadcom trades at 14 times, and Skyworks trades at 9 times this year's estimates -- well below Apple's forward price-to-earnings ratio of 22.
It's also not as if these companies are standing still. Qualcomm has been gaining market share in high-end 5G phones from other vendors, and has been aggressively growing its newer auto and Internet of Things (IoT) chip units. Broadcom is in the midst of attempting to buy software giant VMware for $61 billion. And Skyworks has begun attempting to diversify away from Apple, acquiring Silicon Laboratories in 2021.
Which stock is the better buy?
These three Apple suppliers will likely trade with the Apple overhang for the next few years at least. And while each company should survive and diversify their businesses away from dependence on the iPhone giant, that could be expensive to do, as Broadcom's massive VMware bid is showing.
Meanwhile, it appears as though Apple plans to continue deepening its technology moat and widening its control over its supply chain. So despite its much higher valuation, Apple's superior market position makes it a safer play for investors.
On the other hand, the relatively cheaper valuations of Skyworks, Broadcom, and Qualcomm could lead to upside surprises, should their other sources of revenue in auto, IoT, and other types of chips do better than expected, or should they be able to hold onto their Apple revenues longer than expected. Yet while outsized gains are possible for these suppliers, that's less assured than Apple's continued strength.
10 stocks we like better than Apple
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Billy Duberstein has positions in Apple and Broadcom and has the following options: short January 2023 $210 calls on Apple. His clients may own shares of the companies mentioned. The Motley Fool has positions in and recommends Apple, Intel, and Qualcomm. The Motley Fool recommends Broadcom, Skyworks Solutions, and VMware and recommends the following options: long January 2023 $57.50 calls on Intel, long January 2025 $45 calls on Intel, long March 2023 $120 calls on Apple, short January 2025 $45 puts on Intel, and short March 2023 $130 calls on 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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Apple (NASDAQ: AAPL) is the world's largest company, Warren Buffett's largest holding, and one of the most successful stocks of this millennium. In order to improve its products and maintain or expand its already-high margins, Apple has embarked on a new strategy: to design more and more of the semiconductors that will go into its smartphones, computers, and other electronic devices. In 2019, Apple bought the Intel unit that manufactures cellular modems -- the hardware components that connect cellphones with mobile cell towers.
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Apple (NASDAQ: AAPL) is the world's largest company, Warren Buffett's largest holding, and one of the most successful stocks of this millennium. On the other hand, its strategy should continue to be an overhang for major component suppliers Qualcomm (NASDAQ: QCOM), Broadcom (NASDAQ: AVGO), and Skyworks Solutions (NASDAQ: SWKS). Of course, this is all known by the markets, and is probably why Qualcomm trades at 12 times this year's earnings estimates, Broadcom trades at 14 times, and Skyworks trades at 9 times this year's estimates -- well below Apple's forward price-to-earnings ratio of 22.
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Apple (NASDAQ: AAPL) is the world's largest company, Warren Buffett's largest holding, and one of the most successful stocks of this millennium. And while there have been no definitive reports confirming that Apple's planning to phase out its use of Skyworks' components, that would be a much bigger deal for the company: Apple accounts for 58% of Skyworks' revenue. See the 10 stocks *Stock Advisor returns as of January 9, 2023 Billy Duberstein has positions in Apple and Broadcom and has the following options: short January 2023 $210 calls on Apple.
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Apple (NASDAQ: AAPL) is the world's largest company, Warren Buffett's largest holding, and one of the most successful stocks of this millennium. First, because Apple can coordinate its component design into a single end product, its engineers should be able to design chips that perform optimally with each other in the context of a whole device system. It's estimated that replacing Intel chips with its in-house Series M chips in Macs alone is saving Apple $2.5 billion per year in licensing fees.
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17452.0
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2023-01-24 00:00:00 UTC
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Mixed Reality, Digital Dust and Other Buzzwords You’ll Need to Know in 2023
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AAPL
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https://www.nasdaq.com/articles/mixed-reality-digital-dust-and-other-buzzwords-youll-need-to-know-in-2023
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nan
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nan
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V
ocabularies can change fast in the worlds of business and technology. A year ago, both of those groups were borderline obsessed with wallstreetbets, the reddit community that was driving meme stocks. Today, it’s rarely whispered, beyond a sad shake of the head.
The evolution of people’s language continues to occur at a staggering pace. And with the dawning of a new year, new buzzwords are beginning to emerge as well. Staying current on all of the new terms can be a challenge, so here’s a rundown of the big ones that are popping up these days. Some you might know. Others you’ll hear slipped into a conversation in the coming months. Here’s a chance to get ahead of the curve.
Mixed Reality: Virtual reality hasn’t lit up the tech world like its advocates had hoped. Augmented reality is still in its infant stages. Now eyes are turning to mixed reality (XR), which lets you use real-world objects to interact with digital ones. Expect to hear a lot more about it when Apple (AAPL) finally unveils its VR/AR/XR headset, which is expected to happen later this year.
Digital Dust: Every action you take in the online world leaves traces. Those could be text, photos, audio files or something else. That’s known as digital dust. And more and more smart devices are leaving a trail of it these days, including your preferences and behaviors.
Proximity bias: Work-from-home holdouts could be doing more damage to their careers than they realize. Proximity bias is the tendency for employers to give preferential treatment or show favoritism to the employees physically closest to them. It's a very real threat. A 2021 survey by the Society for Human Resource Management (SHRM) spoke with over 800 supervisors, with two-thirds who oversaw remote workers saying they believed remote workers were more replaceable than onsite workers.
Overemployment: Can’t pay the bills with one job? More and more people are adding a side hustle or even a second full time job to their plates (And remote working has made it easier for some people to do so). It’s called overemployment. And some people have managed to be ‘overemployed’ but still just work a 40-hour week.
Career cushioning: Some workers, concerned that their positions could be eliminated in the coming months, are focusing less on getting things done and more on adding skills to their resumes, which would make them more attractive to companies if they have to look for a new gig. LinkedIn says 365 million people have added skills to their profiles over the last 12 months, up 43% from last year.
Polycrisis: Everything old is new again, even our problems. Polycrisis is the latest term for the convergence of those problems all at once—and we’re in one now. We’ve got wars going on, a pandemic that’s still impacting the world, economic crises and more. The World Economic Forum describes a polycrisis as "a cluster of related global risks with compounding effects, such as the overall impact exceeds the sum of each part."
Doughnut effect: Hybrid work is fast becoming normalized at many companies, meaning workers are less concerned about living somewhere that’s in close proximity to their office. That’s increasing values in suburban areas, meaning home value increases and rent increases will tend to encircle the city center, creating a doughnut-like effect, with a ‘hole’ or smaller/non-existent growth taking place in the middle.
Frolleagues: One of the chief reasons people want to go back to work is to interact with their work friends. “Frolleagues” is essentially the new term for a work husband or work wife. It’s a close, trusted confidant at the office, with whom you can share worries, frustrations and successes. And having one tends to make people a lot more productive at the workplace.
Metaverse: Yep, this buzzword made the 2022 list, but it’s still going to be a big area of conversation this year. At its core, metaverse describes a shared immersive digital world accessed via the Internet, but it’s a term that many people have defined differently over the past year. Ideally, there will start to be some cohesion of what the metaverse is this year. The term was bandied about at the Consumer Electronics Show (CES) frequently in January, though there are still a significant number of doubters who argue the metaverse is not the next step in the internet’s evolution, but instead just the latest shiny object meant to distract people’s attentions.
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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Expect to hear a lot more about it when Apple (AAPL) finally unveils its VR/AR/XR headset, which is expected to happen later this year. Career cushioning: Some workers, concerned that their positions could be eliminated in the coming months, are focusing less on getting things done and more on adding skills to their resumes, which would make them more attractive to companies if they have to look for a new gig. The World Economic Forum describes a polycrisis as "a cluster of related global risks with compounding effects, such as the overall impact exceeds the sum of each part."
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Expect to hear a lot more about it when Apple (AAPL) finally unveils its VR/AR/XR headset, which is expected to happen later this year. The World Economic Forum describes a polycrisis as "a cluster of related global risks with compounding effects, such as the overall impact exceeds the sum of each part." Doughnut effect: Hybrid work is fast becoming normalized at many companies, meaning workers are less concerned about living somewhere that’s in close proximity to their office.
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Expect to hear a lot more about it when Apple (AAPL) finally unveils its VR/AR/XR headset, which is expected to happen later this year. More and more people are adding a side hustle or even a second full time job to their plates (And remote working has made it easier for some people to do so). At its core, metaverse describes a shared immersive digital world accessed via the Internet, but it’s a term that many people have defined differently over the past year.
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Expect to hear a lot more about it when Apple (AAPL) finally unveils its VR/AR/XR headset, which is expected to happen later this year. More and more people are adding a side hustle or even a second full time job to their plates (And remote working has made it easier for some people to do so). Doughnut effect: Hybrid work is fast becoming normalized at many companies, meaning workers are less concerned about living somewhere that’s in close proximity to their office.
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17453.0
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2023-01-24 00:00:00 UTC
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What's in Store for Big Tech ETFs in Q4 Earnings?
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AAPL
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https://www.nasdaq.com/articles/whats-in-store-for-big-tech-etfs-in-q4-earnings
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nan
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We are in the peak of the fourth-quarter earnings season and tech giants are in the spotlight this week and the next. The five biggest tech players — Microsoft MSFT, Apple AAPL, Amazon AMZN, Meta Platforms META, and Alphabet GOOGL — are set to report.
The technology sector, which was hit the hardest by soaring yields and a hawkish Fed, showed a strong comeback to start 2023. Hopes that the Fed will soon wrap up its inflation-fighting campaign and optimism over cooling inflation have compelled investors to buy beaten-up technology stocks (read: 5 Tech ETFs Riding High on Sectors' Comeback to Start 2023).
Microsoft is expected to release results on Jan 24 after market close, while Meta Platforms will report on Feb 1. Alphabet, Apple and Amazon are scheduled to release their earnings on Feb 2.
Microsoft
Microsoft has a Zacks Rank #3 (Hold) and an Earnings ESP of 0.34%. According to our methodology, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
The stock witnessed a positive earnings estimate revision of a penny for the to-be-reported quarter over the past 30 days. Analysts increasing estimates right before earnings — with the most up-to-date information possible — is a good indicator for the stock. Microsoft’s earnings track is impressive, with the last four-quarter earnings surprise being 2.64%, on average. The Zacks Consensus Estimate indicates a substantial earnings decline of 7.8% and a modest revenue growth of 2.3% from the year-ago quarter. Microsoft belongs to a top-ranked Zacks industry (top 33%) and has lost about 1.8% over the past three months (see: all the Technology ETFs here).
Meta Platforms
Meta Platforms has a Zacks Rank #3 and an Earnings ESP of +6.88%. The social media giant saw a negative earnings estimate revision of a penny for the to-be-reported quarter over the past seven days. The current Zacks Consensus Estimate for the yet-to-be reported quarter indicates a substantial year-over-year earnings decline of 42.2%. Revenues are also expected to decrease 7%. Meta Platforms delivered a negative earnings surprise of 2.55%, on average, in the last four quarters. The stock belongs to a top-ranked Zacks industry (top 26%). Shares of META have gained more than 10% in the past three months.
Alphabet
Alphabet has a Zacks Rank #3 and an Earnings ESP of -4.85%. It saw no earnings estimate revision over the past seven days for the to-be-reported quarter. The company’s earnings surprise track over the past four quarters is not good, with the beat being negative 2.28%, on average. Earnings are expected to decline 23.5%, while revenues are expected to grow 2.1% from the year-ago quarter. However, Alphabet falls under a top-ranked Zacks industry (top 35%). The Internet behemoth has shed about 3% in the past three months.
Apple
Apple has a Zacks Rank #3 and an Earnings ESP of +4.42%. The stock saw no earnings estimate revision over the past 30 days for first-quarter fiscal 2023, and its earnings surprise history is strong. It delivered an earnings surprise of 6.26%, on average, over the past four quarters. Apple is expected to report an earnings decline of 8.1% and a revenue decline of 2.46% from the year-ago quarter. It belongs to a bottom-ranked Zacks industry (bottom 5%). The stock has declined 5.5% in the past three-month timeframe.
Amazon
Amazon has a Zacks Rank #3 and an Earnings ESP of -16.30%. The stock saw no earnings estimate revision over the past 30 days for the fourth quarter. The Zacks Consensus Estimate represents a substantial year-over-year earnings decline of 87.8% and revenue growth of 5.92%. Amazon’s earnings surprise history is impressive, with an average beat of 129.88% for the last four quarters. The stock falls under a top-ranked Zacks industry (top 13%). The online e-commerce behemoth has witnessed a share price fall of 18.6% in the past three months.
ETFs to Tap
Given this, investors may want to play these stocks with the help of ETFs. Below, we have highlighted six ETFs having the largest exposure to these tech giants.
MicroSectors FANG+ ETN (FNGS): This ETN is linked to the performance of the NYSE FANG+ Index, which is equal-dollar weighted and designed to provide exposure to a group of highly traded growth stocks of next-generation technology and tech-enabled companies. The note accounts for a 10% share in each of the FAANG stocks and has a Zacks ETF Rank #3 (read: ETFs to Click on Netflix's Blowout Q4 Subscriber Growth).
Blue Chip Growth ETF (TCHP): This fund focuses on companies with leading market positions, seasoned management and strong financial fundamentals. It accounts for a combined 40% share in the five firms.
Vanguard Mega Cap Growth ETF (MGK): This ETF offers exposure to the largest growth stocks in the U.S. market and has a Zacks ETF Rank #3. The five firms account for a combined 39.7% share in the basket.
Invesco QQQ (QQQ): This ETF focuses on 100 of the largest domestic and international nonfinancial companies listed on the Nasdaq Stock Market based on market capitalization. This fund makes up for a 36.7% share in the in-focus firms and has a Zacks ETF Rank #3 with a Medium risk outlook (read: 5 Stocks Powering Nasdaq ETF to Start 2023).
iShares U.S. Tech Independence Focused ETF (IETC): This fund offers exposure to U.S. companies with a focus on U.S. tech independence. The five firms account for a combined 23.6% share in the basket.
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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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The five biggest tech players — Microsoft MSFT, Apple AAPL, Amazon AMZN, Meta Platforms META, and Alphabet GOOGL — are set to report. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Hopes that the Fed will soon wrap up its inflation-fighting campaign and optimism over cooling inflation have compelled investors to buy beaten-up technology stocks (read: 5 Tech ETFs Riding High on Sectors' Comeback to Start 2023).
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The five biggest tech players — Microsoft MSFT, Apple AAPL, Amazon AMZN, Meta Platforms META, and Alphabet GOOGL — are set to report. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Hopes that the Fed will soon wrap up its inflation-fighting campaign and optimism over cooling inflation have compelled investors to buy beaten-up technology stocks (read: 5 Tech ETFs Riding High on Sectors' Comeback to Start 2023).
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. The five biggest tech players — Microsoft MSFT, Apple AAPL, Amazon AMZN, Meta Platforms META, and Alphabet GOOGL — are set to report. The stock saw no earnings estimate revision over the past 30 days for first-quarter fiscal 2023, and its earnings surprise history is strong.
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The five biggest tech players — Microsoft MSFT, Apple AAPL, Amazon AMZN, Meta Platforms META, and Alphabet GOOGL — are set to report. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. According to our methodology, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat.
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17454.0
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2023-01-24 00:00:00 UTC
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BBEU, QVML: Big ETF Inflows
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AAPL
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https://www.nasdaq.com/articles/bbeu-qvml%3A-big-etf-inflows
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nan
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Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the BBEU ETF, which added 15,100,000 units, or a 23.3% increase week over week.
And on a percentage change basis, the ETF with the biggest increase in inflows was the Invesco S&P 500 QVM Multi-factor ETF, which added 10,900,000 units, for a 35.0% increase in outstanding units. Among the largest underlying components of QVML, in morning trading today Apple is up about 0.5%, and Microsoft is higher by about 0.2%.
VIDEO: BBEU, QVML: Big ETF Inflows
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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And on a percentage change basis, the ETF with the biggest increase in inflows was the Invesco S&P 500 QVM Multi-factor ETF, which added 10,900,000 units, for a 35.0% increase in outstanding units. Among the largest underlying components of QVML, in morning trading today Apple is up about 0.5%, and Microsoft is higher by about 0.2%. VIDEO: BBEU, QVML: Big ETF Inflows 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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Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the BBEU ETF, which added 15,100,000 units, or a 23.3% increase week over week. And on a percentage change basis, the ETF with the biggest increase in inflows was the Invesco S&P 500 QVM Multi-factor ETF, which added 10,900,000 units, for a 35.0% increase in outstanding units. VIDEO: BBEU, QVML: Big ETF Inflows 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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Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the BBEU ETF, which added 15,100,000 units, or a 23.3% increase week over week. And on a percentage change basis, the ETF with the biggest increase in inflows was the Invesco S&P 500 QVM Multi-factor ETF, which added 10,900,000 units, for a 35.0% increase in outstanding units. VIDEO: BBEU, QVML: Big ETF Inflows 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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Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the BBEU ETF, which added 15,100,000 units, or a 23.3% increase week over week. And on a percentage change basis, the ETF with the biggest increase in inflows was the Invesco S&P 500 QVM Multi-factor ETF, which added 10,900,000 units, for a 35.0% increase in outstanding units. Among the largest underlying components of QVML, in morning trading today Apple is up about 0.5%, and Microsoft is higher by about 0.2%.
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17455.0
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2023-01-24 00:00:00 UTC
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S&P 500 ETFs in Focus as SPY Turns 30
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AAPL
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https://www.nasdaq.com/articles/sp-500-etfs-in-focus-as-spy-turns-30
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nan
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nan
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The SPDR S&P 500 ETF Trust SPY, the largest ETF in the world, celebrated its 30th birthday on Sunday. The launch revolutionized the investment world, and the ETF industry has come a long way since then with over 3,000 US-listed ETFs and about $6.5 trillion in assets under management.
SPY is also the most actively traded equity security with average daily trading volumes of about $39 billion, more than three times as much as Apple’s stock, per FT. Due to its unparalleled liquidity, there is a large ecosystem of derivatives built on SPY.
The iShares Core S&P 500 ETF IVV, the Vanguard S&P 500 ETF VOO and the SPDR Portfolio S&P 500 ETF SPLG track the same index and charge just 0.03% in expense ratio compared to SPY’s 0.09%. Apple AAPL Microsoft MSFT Alphabet GOOGL are the top holdings in these ETFs.
SPY has been losing market share at the asset level to the cheaper alternatives, but it remains very popular with traders and institutional investors.
To learn more, please watch the short video above.
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Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
SPDR S&P 500 ETF (SPY): ETF Research Reports
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
Vanguard S&P 500 ETF (VOO): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports
SPDR Portfolio S&P 500 ETF (SPLG): 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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Apple AAPL Microsoft MSFT Alphabet GOOGL are the top holdings in these ETFs. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report Vanguard S&P 500 ETF (VOO): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports SPDR Portfolio S&P 500 ETF (SPLG): ETF Research Reports To read this article on Zacks.com click here. SPY has been losing market share at the asset level to the cheaper alternatives, but it remains very popular with traders and institutional investors.
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Apple AAPL Microsoft MSFT Alphabet GOOGL are the top holdings in these ETFs. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report Vanguard S&P 500 ETF (VOO): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports SPDR Portfolio S&P 500 ETF (SPLG): ETF Research Reports To read this article on Zacks.com click here. The iShares Core S&P 500 ETF IVV, the Vanguard S&P 500 ETF VOO and the SPDR Portfolio S&P 500 ETF SPLG track the same index and charge just 0.03% in expense ratio compared to SPY’s 0.09%.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report Vanguard S&P 500 ETF (VOO): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports SPDR Portfolio S&P 500 ETF (SPLG): ETF Research Reports To read this article on Zacks.com click here. Apple AAPL Microsoft MSFT Alphabet GOOGL are the top holdings in these ETFs. The iShares Core S&P 500 ETF IVV, the Vanguard S&P 500 ETF VOO and the SPDR Portfolio S&P 500 ETF SPLG track the same index and charge just 0.03% in expense ratio compared to SPY’s 0.09%.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report Vanguard S&P 500 ETF (VOO): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports SPDR Portfolio S&P 500 ETF (SPLG): ETF Research Reports To read this article on Zacks.com click here. Apple AAPL Microsoft MSFT Alphabet GOOGL are the top holdings in these ETFs. The SPDR S&P 500 ETF Trust SPY, the largest ETF in the world, celebrated its 30th birthday on Sunday.
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17456.0
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2023-01-24 00:00:00 UTC
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Why Alphabet Stock Pulled Back Today
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AAPL
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https://www.nasdaq.com/articles/why-alphabet-stock-pulled-back-today
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nan
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nan
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What happened
Shares of Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) were moving lower today in response to a lawsuit from the Department of Justice and eight states, which are suing to break up what they see as Alphabet's online advertising monopoly.
As a result, the stock finished the day down 2%.
So what
The Justice Department's lawsuit alleges that Google abuses its power in advertising auctions as a dominant broker and supplier in the digital advertising supply chain, harming both ad tech companies and publishers.
The suit calls for Google to unwind its 2008 acquisition of DoubleClick, an ad-serving company, and to sell its ad exchange.
The filing said, "Google uses its dominion over digital advertising technology to funnel more transactions to its own ad tech products where it extracts inflated fees to line its own pockets at the expense of the advertisers and publishers it purportedly serves."
This is far from the first time Alphabet has been sued over antitrust matters. The company also faces an investigation in Europe. And the Justice Department sued it in 2020 over its payment to be the default search engine on Apple's Safari browser, among related issues, in a case due to go to trial this year.
Now what
The lawsuit is the latest headache for the company, coming just days after it said it would lay off 12,000 employees after profits declined and the stock price tumbled last year. Activist investor TCI called on the company to cut even more costs after the announcement.
Regulatory concerns have long been a thorn in Alphabet's side, but so far nothing has significantly damaged the company. Still, the lawsuit is more aggressive than observers had expected, and the Justice Department earlier rejected Alphabet's offer to spin off the ad tech business into a separate subsidiary.
It will take time for the suit to play out in court, and while it might not have a material impact on the business, investors shouldn't ignore the regulatory risk with Alphabet stock.
10 stocks we like better than Alphabet
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*Stock Advisor returns as of January 9, 2023
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet and Apple. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on 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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And the Justice Department sued it in 2020 over its payment to be the default search engine on Apple's Safari browser, among related issues, in a case due to go to trial this year. Now what The lawsuit is the latest headache for the company, coming just days after it said it would lay off 12,000 employees after profits declined and the stock price tumbled last year. Still, the lawsuit is more aggressive than observers had expected, and the Justice Department earlier rejected Alphabet's offer to spin off the ad tech business into a separate subsidiary.
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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 Alphabet and Apple. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple.
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What happened Shares of Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) were moving lower today in response to a lawsuit from the Department of Justice and eight states, which are suing to break up what they see as Alphabet's online advertising monopoly. So what The Justice Department's lawsuit alleges that Google abuses its power in advertising auctions as a dominant broker and supplier in the digital advertising supply chain, harming both ad tech companies and publishers. See the 10 stocks *Stock Advisor returns as of January 9, 2023 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors.
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So what The Justice Department's lawsuit alleges that Google abuses its power in advertising auctions as a dominant broker and supplier in the digital advertising supply chain, harming both ad tech companies and publishers. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Alphabet wasn't one of them! The Motley Fool has positions in and recommends Alphabet and Apple.
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17457.0
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2023-01-24 00:00:00 UTC
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2 No-Brainer Growth Stocks to Buy in 2023
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AAPL
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https://www.nasdaq.com/articles/2-no-brainer-growth-stocks-to-buy-in-2023
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nan
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After a year when countless tech companies suffered significant declines in their stocks and earnings because of macroeconomic headwinds, 2023 has shown signs that the market is recovering. The Nasdaq-100 Technology Sector index has risen almost 8% since the start of the year, as many stocks have gradually trended upward. As a result, now is an excellent time to invest in growth stocks while they're still down year over year.
Because technology is constantly developing, the industry is a great place to hold an investment over the long term because it is likely to provide consistent gains.
Here are two no-brainer growth stocks to buy in 2023.
1. AMD
Along with numerous other growth stocks, Advanced Micro Devices (NASDAQ: AMD) was hit hard in 2022 by reduced spending on tech and rises in inflation. However, the dismal year hasn't hampered its stellar long-term prospects. Even with last year's sell-off, AMD's shares have increased 493% over the previous five years and almost 3,000% in the last decade.
Meanwhile, the semiconductor company's revenue has increased 153% since 2018 to $16.4 billion in 2022, with operating income rising 1,000% to $2.6 billion. As a result, now is an excellent time to invest in this undervalued growth stock, with its price still down 36% year over year.
Despite declines in its PC-focused client segment in the third quarter of 2022, AMD's biggest earning segment, data centers, did not disappoint. The company's data center business saw revenue increase 45% year over year to $1.6 billion, with operating income rising 64% to $505 million. And the company has plans to expand further in this booming market.
In November, AMD launched a new generation of data center chips named Genoa, and plans to release a more powerful version called Genoa-X later this year. With companies such as Alphabet's Google, Microsoft's Azure, and Oracle already signed on as clients, AMD is well-positioned to continue profiting from the market's expansion.
The company's forward price-to-earnings ratio of 20.7 is especially attractive considering its prospects. The same metric for its biggest competitor, Nvidia, is 57.6.
Advanced Micro Devices' stock was battered in 2022, but it is unlikely to be down forever, considering its consistent long-term performance. The company's shares have risen 16% since Jan. 1 as investors reevaluate AMD's potential. As a result, now could be the perfect time to invest in this exceptional growth stock.
2. Apple
Apple (NASDAQ: AAPL) is a solid growth stock in all aspects. Over the last five years, the company's shares have soared 211%, and 664% in the last decade.
Revenue has risen 48% since 2018 to $394.3 billion in 2022, and operating income has increased by over 80% to $119.4 billion in the same period. That is primarily thanks to strong, consistent demand for its products and a talent for successfully entering new markets.
In 2022, Apple's iPhone officially surpassed Alphabet's Android for smartphone market share by hitting 50%, according to Counterpoint Research. This is particularly encouraging thanks to its walled garden of products, where one purchase can encourage consumers to dive deeper into the company's varied lineup of other devices and services.
And 2023 holds a lot of promise for the tech giant. In the first 20 days of the year, Apple announced MacBook Pros featuring more powerful chips, a beefier Mac Mini, and a second-generation HomePod.
Reports say the company will soon enter the augmented/virtual reality markets with a new headset and is working toward reducing its dependency on other companies by using more in-house components in its iPhones. Each of these developments has the potential to significantly increase revenue over the long term, making Apple's stock a screaming buy in 2023.
10 stocks we like better than Advanced Micro Devices
When our award-winning 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 Advanced Micro Devices 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 January 9, 2023
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Apple, Microsoft, and Nvidia. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on 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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Apple Apple (NASDAQ: AAPL) is a solid growth stock in all aspects. After a year when countless tech companies suffered significant declines in their stocks and earnings because of macroeconomic headwinds, 2023 has shown signs that the market is recovering. Along with numerous other growth stocks, Advanced Micro Devices (NASDAQ: AMD) was hit hard in 2022 by reduced spending on tech and rises in inflation.
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Apple Apple (NASDAQ: AAPL) is a solid growth stock in all aspects. Along with numerous other growth stocks, Advanced Micro Devices (NASDAQ: AMD) was hit hard in 2022 by reduced spending on tech and rises in inflation. The company's data center business saw revenue increase 45% year over year to $1.6 billion, with operating income rising 64% to $505 million.
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Apple Apple (NASDAQ: AAPL) is a solid growth stock in all aspects. As a result, now is an excellent time to invest in growth stocks while they're still down year over year. As a result, now is an excellent time to invest in this undervalued growth stock, with its price still down 36% year over year.
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Apple Apple (NASDAQ: AAPL) is a solid growth stock in all aspects. The company's data center business saw revenue increase 45% year over year to $1.6 billion, with operating income rising 64% to $505 million. Each of these developments has the potential to significantly increase revenue over the long term, making Apple's stock a screaming buy in 2023.
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17458.0
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2023-01-24 00:00:00 UTC
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Dow Movers: MMM, CRM
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AAPL
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https://www.nasdaq.com/articles/dow-movers%3A-mmm-crm-1
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nan
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nan
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In early trading on Tuesday, shares of Salesforce topped the list of the day's best performing Dow Jones Industrial Average components, trading up 0.9%. Year to date, Salesforce registers a 18.7% gain.
And the worst performing Dow component thus far on the day is MMM, trading down 3.5%. MMM is lower by about 1.4% looking at the year to date performance.
Two other components making moves today are Walgreens Boots Alliance, trading down 2.4%, and Apple, trading up 0.6% on the day.
VIDEO: Dow Movers: MMM, CRM
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 Tuesday, shares of Salesforce topped the list of the day's best performing Dow Jones Industrial Average components, trading up 0.9%. And the worst performing Dow component thus far on the day is MMM, trading down 3.5%. VIDEO: Dow Movers: MMM, CRM 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 Tuesday, shares of Salesforce topped the list of the day's best performing Dow Jones Industrial Average components, trading up 0.9%. Year to date, Salesforce registers a 18.7% gain. And the worst performing Dow component thus far on the day is MMM, trading down 3.5%.
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In early trading on Tuesday, shares of Salesforce topped the list of the day's best performing Dow Jones Industrial Average components, trading up 0.9%. And the worst performing Dow component thus far on the day is MMM, trading down 3.5%. Two other components making moves today are Walgreens Boots Alliance, trading down 2.4%, and Apple, trading up 0.6% on the day.
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And the worst performing Dow component thus far on the day is MMM, trading down 3.5%. MMM is lower by about 1.4% looking at the year to date performance. VIDEO: Dow Movers: MMM, CRM 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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17459.0
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2023-01-24 00:00:00 UTC
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Netflix Q4 Subscriber Numbers Were Strong, What's Next For The Stock?
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AAPL
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https://www.nasdaq.com/articles/netflix-q4-subscriber-numbers-were-strong-whats-next-for-the-stock
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nan
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nan
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Netflix (NASDAQ:NFLX) posted a relatively strong set of Q4 2022 results, with paid subscriber additions coming in at 7.7 million, well ahead of the company’s guidance of 4.5 million additions. Much like most other U.S. multinational companies, revenues were impacted by the strong U.S. dollar (the dollar index is up 7% over the last year), with revenue growing 1.9% versus last year to $7.85 billion, although it would have been about 10% in constant currency terms. Net income fell to $55 million, due to the unrealized loss from foreign-exchange re-measurement on the company’s euro-denominated debt. For the quarter ending March 2023, Netflix is projecting revenue of $8.2 billion and earnings of $2.82 a share. Going forward, Netflix indicated that it would stop providing guidance on subscriber additions – a sign that its years of big growth are clearly cooling.
The company is now focusing on boosting monetization. Netflix began to roll out its advertising-supported plan in early November. Thus far, the company says that it is seeing few customers switch to the ad-supported plan from other subscription tiers and this makes sense, given that the purpose of the plan was to help the company reach out to a new set of more price-sensitive customers. While Netflix expects the impact of advertising on its financials to be limited in 2023, it is an important space to play given that branded TV advertising is estimated to be a $180 billion market in the 190 countries that Netflix operates. Netflix is also looking to better monetize account sharing, expanding the paid password-sharing option that it tested in parts of Latin America more broadly to new geographies from late Q1 2023. Under the offering, subscribers should have the option to pay an extra fee if they want to share their Netflix account with people they do not live with. Although the company could see some amount of initial subscriber churn due to the rollout, the move should help to eventually boost revenue.
We were quite bullish on Netflix stock when it fell to five-year lows around mid-2022. However, the stock has recovered considerably since then, almost doubling over the last six months. At the current market price of about $340 per share, Netflix trades at about 30x forward earnings which is not very attractive considering multiple headwinds, including the potential U.S. recession which could hurt consumer spending. We currently remain neutral on Netflix stock, with a price estimate of $340 per share, which is roughly in line with the current market price. See our analysis Netflix Valuation: Expensive or Cheap for more details on what’s driving our price estimate for Netflix. Also, check out the analysis of Netflix Revenue for more details on how Netflix revenues are trending.
What if you’re looking for a more balanced portfolio instead? Our high-quality portfolio and multi-strategy portfolio have beaten the market consistently since the end of 2016.
Returns Jan 2023
MTD [1] 2023
YTD [1] 2017-23
Total [2]
NFLX Return 16% 16% 177%
S&P 500 Return 3% 3% 77%
Trefis Multi-Strategy Portfolio 8% 8% 239%
[1] Month-to-date and year-to-date as of 1/21/2023
[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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Net income fell to $55 million, due to the unrealized loss from foreign-exchange re-measurement on the company’s euro-denominated debt. Netflix is also looking to better monetize account sharing, expanding the paid password-sharing option that it tested in parts of Latin America more broadly to new geographies from late Q1 2023. At the current market price of about $340 per share, Netflix trades at about 30x forward earnings which is not very attractive considering multiple headwinds, including the potential U.S. recession which could hurt consumer spending.
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Netflix (NASDAQ:NFLX) posted a relatively strong set of Q4 2022 results, with paid subscriber additions coming in at 7.7 million, well ahead of the company’s guidance of 4.5 million additions. At the current market price of about $340 per share, Netflix trades at about 30x forward earnings which is not very attractive considering multiple headwinds, including the potential U.S. recession which could hurt consumer spending. Total [2] NFLX Return 16% 16% 177% S&P 500 Return 3% 3% 77% Trefis Multi-Strategy Portfolio 8% 8% 239% [1] Month-to-date and year-to-date as of 1/21/2023 [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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While Netflix expects the impact of advertising on its financials to be limited in 2023, it is an important space to play given that branded TV advertising is estimated to be a $180 billion market in the 190 countries that Netflix operates. Also, check out the analysis of Netflix Revenue for more details on how Netflix revenues are trending. Total [2] NFLX Return 16% 16% 177% S&P 500 Return 3% 3% 77% Trefis Multi-Strategy Portfolio 8% 8% 239% [1] Month-to-date and year-to-date as of 1/21/2023 [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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Netflix is also looking to better monetize account sharing, expanding the paid password-sharing option that it tested in parts of Latin America more broadly to new geographies from late Q1 2023. Also, check out the analysis of Netflix Revenue for more details on how Netflix revenues are trending. Total [2] NFLX Return 16% 16% 177% S&P 500 Return 3% 3% 77% Trefis Multi-Strategy Portfolio 8% 8% 239% [1] Month-to-date and year-to-date as of 1/21/2023 [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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17460.0
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2023-01-24 00:00:00 UTC
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The Zacks Analyst Blog Highlights Apple, Microsoft, Meta Platforms, Alphabet and NVIDIA
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AAPL
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights-apple-microsoft-meta-platforms-alphabet-and-nvidia
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nan
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nan
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For Immediate Release
Chicago, IL – January 24, 2023 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Apple Inc. AAPL, Microsoft Corp. MSFT, Meta Platforms Inc. META, Alphabet Inc. GOOGL and NVIDIA Corp. NVDA.
Here are highlights from Monday’s Analyst Blog:
Tech Shows Initial Signs of Revival, Trend Likely to Continue
Wall Street witnessed a broad-based decline in 2022 with the technology sector suffering the most. The technology sector, which enabled Wall Street to get rid of the coronavirus-induced short bear market and formed the new bull market, suffered owing to overvaluation, a high interest rate regime and tighter monetary control adopted by the Fed to combat a 40-year high inflation.
However, as we have entered 2023, a very early sign of a rebound in the technology sector is clearly visible. Of the three major stock indexes — month to date — the tech-heavy has gained 6.4% while the Dow and the S&P 500 have risen 0.7%, respectively. Year to date, of the 11 broad sectors of the S&P 500 Index, the Technology Select Sector SPDR (XLK) and the tech-laden Communication Services Select Sector SPDR (XLC) have rallied 5.5% and 10.7%, respectively. This trend is likely to get further momentum in 2023.
Peak Inflation Seems Behind Us
Peak inflation seems behind us. Less-than-expected inflation rates in October, November and December with respect to several measures have clearly indicated this. The University of Michigan Surveys of Consumers released on Jan 13 showed that the one-year inflation outlook slipped to a preliminary reading of 4.0% this month from 4.4% in December, the lowest reading since April 2021.
The Fed raised the benchmark interest rate 4.25% in 2022 to the range of 4.25 to 4.5%. Market is currently expecting the central bank to increase the interest rate maximum by 75 basis points in 2023. Some financial analysts are expecting the first rate cut to come in the last quarter of 2023 or in early 2024.
On the other hand, the U.S. labor market remains resilient. The initial results of the fourth-quarter 2022 earnings were as disappointing as expected. Therefore, the Fed may reach its goal of a soft landing.
Technology is the Best Bet for the Long Term
Last year's meltdown of the technology sector was a temporary phenomenon. The fundamentals of this sector are rock solid. We must not forget that the growing demand for hi-tech products has been a catalyst for the sector in an otherwise tough environment. A series of breakthroughs in 5G wireless network, cloud computing, predictive analysis, Artificial Intelligence, self-driving vehicles, digital personal assistants and Internet of Things, has given a boost to the overall space.
The leading emerging markets of Asia, Latin America, Africa and some European countries are still way behind in using digital technology compared to the developed world. While mobile phone penetration is nearly 90% in these countries, a large number of people are still using phones with old features, since voice communication and not data serve most of their needs. Even those using smartphones, rarely utilize online digital features.
However, the outbreak of coronavirus quickly changed the lifestyle and lookout of these people. The countries that are more digitized have been able to minimize their losses during the pandemic. These are major lessons for other countries. Even those who are less inclined toward digital technology and online platforms, either because they have to learn using smartphones or tablets or due to fear of data theft, are now feeling the massive advantage of online platforms.
Tech is No Longer Overvalued
The technology sector suffered a massive humiliation in 2022. The Nasdaq Composite plummeted 33.1% year over year and 32.9% from its all-time high. On the other hand, the XLK and XLC are currently trading at a 20% and 30.7% discount, respectively, from their 52-week highs.
Technology behemoths like Apple Inc., Microsoft Corp., Meta Platforms Inc., Alphabet Inc. and NVIDIA Corp. are currently trading at 23.2%, 24%, 57.5%, 35.3% and 38.4% discount from their respective 52-week high levels. These five stocks currently carry a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 (Strong Buy) Rank stocks here.
These companies have a solid business model, globally claimed brand value and strong financial positions. A weak guidance for one or two quarters will not affect the share prices of these companies to a great extent.
On the other hand, these stocks were heavily shorted and have corrected significantly in the past year. A gradually declining inflation rate, a lower magnitude of interest rate hike and the possibility of a soft landing (without recession) of the U.S. economy will result in a sharp northbound movement of these stock prices.
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Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
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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Stocks recently featured in the blog include: Apple Inc. AAPL, Microsoft Corp. MSFT, Meta Platforms Inc. META, Alphabet Inc. GOOGL and NVIDIA Corp. NVDA. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Here are highlights from Monday’s Analyst Blog: Tech Shows Initial Signs of Revival, Trend Likely to Continue Wall Street witnessed a broad-based decline in 2022 with the technology sector suffering the most.
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Stocks recently featured in the blog include: Apple Inc. AAPL, Microsoft Corp. MSFT, Meta Platforms Inc. META, Alphabet Inc. GOOGL and NVIDIA Corp. NVDA. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Year to date, of the 11 broad sectors of the S&P 500 Index, the Technology Select Sector SPDR (XLK) and the tech-laden Communication Services Select Sector SPDR (XLC) have rallied 5.5% and 10.7%, respectively.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Stocks recently featured in the blog include: Apple Inc. AAPL, Microsoft Corp. MSFT, Meta Platforms Inc. META, Alphabet Inc. GOOGL and NVIDIA Corp. NVDA. The technology sector, which enabled Wall Street to get rid of the coronavirus-induced short bear market and formed the new bull market, suffered owing to overvaluation, a high interest rate regime and tighter monetary control adopted by the Fed to combat a 40-year high inflation.
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Stocks recently featured in the blog include: Apple Inc. AAPL, Microsoft Corp. MSFT, Meta Platforms Inc. META, Alphabet Inc. GOOGL and NVIDIA Corp. NVDA. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Of the three major stock indexes — month to date — the tech-heavy has gained 6.4% while the Dow and the S&P 500 have risen 0.7%, respectively.
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2023-01-24 00:00:00 UTC
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Will Meta Platforms Be a Trillion-Dollar Stock by 2030?
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https://www.nasdaq.com/articles/will-meta-platforms-be-a-trillion-dollar-stock-by-2030-0
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Meta Platforms (NASDAQ: META), the social media giant formerly known as Facebook, became a trillion-dollar company in June 2021. Three months later, its market cap peaked at $1.08 trillion.
But as of this writing, Meta is only worth $370 billion. It lost two-thirds of its value as the decelerating growth of its advertising business, the ongoing losses at its virtual reality business, and rising interest rates drove away the bulls.
Image source: Meta Platforms.
Those headwinds won't dissipate anytime soon, but Meta's stock also looks historically cheap at just 17 times forward earnings. Could this fallen FAANG stock regain its mojo and rejoin the 12-zero club by 2030?
Why did Meta Platforms lose its momentum?
Meta generated nearly 98% of its revenue from ads in the first nine months of 2022. It serves up those ads across its "family of apps," which includes Facebook, Messenger, Instagram, and WhatsApp.
That family of apps served 3.71 billion monthly active people in the third quarter of 2022, which represented 4% growth from a year ago. However, the growth of Meta's advertising business still slowed to a crawl in 2022.
METRIC
2020
2021
FIRST NINE MONTHS OF 2022
Advertising revenue growth (YOY)
21%
37%
0%
Total revenue growth (YOY)
22%
37%
0%
Data source: Meta Platforms. YOY = Year-over-year.
That slowdown was caused by three main headwinds. Apple's (NASDAQ: AAPL) iOS update crippled Meta's ability to craft targeted ads with third-party data, ByteDance's TikTok pulled users and advertisers away from Facebook and Instagram, and businesses purchased fewer ads as the macroeconomic headwinds throttled their spending power.
To counter Apple, Meta has been fine-tuning its algorithms to collect more first-party data for targeted ads. It's also been aggressively expanding Instagram Reels to challenge TikTok, but it admits that short videos are much tougher to monetize than traditional ads. Both strategies will require Meta to ramp up its spending as its revenue growth stalls out.
At the same time, Meta continues to pour billions of dollars into its "Reality Labs" segment, which houses its virtual reality headsets and software. This division's revenue rose less than 3% year over year to $1.4 billion in the first nine months of 2022, but its operating loss widened from $6.9 billion to $9.4 billion. That pressure, along with the slowdown of its higher-margin advertising business, reduced Meta's operating margin from 40% in 2021 to 27% in the first nine months of 2022.
How Meta can regain its momentum
Analysts are overwhelmingly bearish on Meta's near-term prospects. For 2022, they expect its revenue to decline 1% to $116.3 billion, its operating margin to shrink to 26%, and its net income to drop 37% to $24.7 billion.
However, that outlook could improve over the next few years as the near-term headwinds dissipate. Meta's advertising revenues could stabilize and climb again as it gathers more first-party data and monetizes more Reels. The broader advertising market could warm up as inflation is reined in and the Fed stops raising rates. An outright ban on TikTok in the U.S., which has been proposed by lawmakers, would drive more revenue to Instagram.
Meta's Reality Labs investments could also finally bear fruit as it launches cheaper, lighter, and more powerful Quest VR headsets. The mainstream adoption of those devices might drive more users to Horizon Worlds, Meta's metaverse playground, which got off to a sluggish start after its initial launch in December 2021.
But if Reality Labs continues to burn billions of dollars without showing any signs of progress, Meta could either spin it off or shut it down. Either decision would likely be embraced by Meta's investors, since it would instantly boost its operating margins while freeing up more cash for the expansion of its core advertising business.
Lastly, Meta ended its latest quarter with $41.8 billion in cash, cash equivalents, and marketable securities. That massive war chest gives it plenty of room for fresh investments and acquisitions -- as long as antitrust regulators clear those deals.
Where could Meta's stock be in 2030?
For now, analysts expect Meta's revenue to rise 5% in 2023 and grow 12% to $136.3 billion in 2024. Its net income is expected to decline 11% in 2023 as it ramps up its spending, but increase 20% to $26.2 billion in 2024. Those long-term estimates, which we should take with a grain of salt, suggest Meta can eventually overcome its near-term challenges.
If Meta's business stabilizes in 2024 and it continues to grow its revenue and earnings per share (EPS) at a modest compound annual growth rate (CAGR) of 10% over the following six years, it could generate $240 billion in revenue with an EPS of about $16 in 2030.
If it's still trading at 17 times earnings and three times sales, its stock could reach $270 per share with a market cap of $720 billion. However, a slightly higher valuation could easily push Meta back past the trillion-dollar mark. Simply put, if Meta weathers its near-term slowdown and generates stable growth again, it might join the 12-zero club again by 2030.
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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. Leo Sun has positions in Apple and Meta Platforms. The Motley Fool has positions in and recommends Apple and Meta Platforms. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on 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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Apple's (NASDAQ: AAPL) iOS update crippled Meta's ability to craft targeted ads with third-party data, ByteDance's TikTok pulled users and advertisers away from Facebook and Instagram, and businesses purchased fewer ads as the macroeconomic headwinds throttled their spending power. Meta's Reality Labs investments could also finally bear fruit as it launches cheaper, lighter, and more powerful Quest VR headsets. The mainstream adoption of those devices might drive more users to Horizon Worlds, Meta's metaverse playground, which got off to a sluggish start after its initial launch in December 2021.
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Apple's (NASDAQ: AAPL) iOS update crippled Meta's ability to craft targeted ads with third-party data, ByteDance's TikTok pulled users and advertisers away from Facebook and Instagram, and businesses purchased fewer ads as the macroeconomic headwinds throttled their spending power. Advertising revenue growth (YOY) 21% 37% 0% Total revenue growth (YOY) 22% 37% 0% Data source: Meta Platforms. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple.
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Apple's (NASDAQ: AAPL) iOS update crippled Meta's ability to craft targeted ads with third-party data, ByteDance's TikTok pulled users and advertisers away from Facebook and Instagram, and businesses purchased fewer ads as the macroeconomic headwinds throttled their spending power. Advertising revenue growth (YOY) 21% 37% 0% Total revenue growth (YOY) 22% 37% 0% Data source: Meta Platforms. If Meta's business stabilizes in 2024 and it continues to grow its revenue and earnings per share (EPS) at a modest compound annual growth rate (CAGR) of 10% over the following six years, it could generate $240 billion in revenue with an EPS of about $16 in 2030.
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Apple's (NASDAQ: AAPL) iOS update crippled Meta's ability to craft targeted ads with third-party data, ByteDance's TikTok pulled users and advertisers away from Facebook and Instagram, and businesses purchased fewer ads as the macroeconomic headwinds throttled their spending power. Meta generated nearly 98% of its revenue from ads in the first nine months of 2022. Advertising revenue growth (YOY) 21% 37% 0% Total revenue growth (YOY) 22% 37% 0% Data source: Meta Platforms.
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2023-01-24 00:00:00 UTC
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The Zacks Analyst Blog Highlights Microsoft, Tesla, Apple and Alphabet
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights-microsoft-tesla-apple-and-alphabet
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For Immediate Release
Chicago, IL – January 24, 2023 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Microsoft MSFT, Tesla TSLA, Apple AAPL and Alphabet GOOGL.
Here are highlights from Monday’s Analyst Blog:
Big Tech Reports: Global Week Ahead
In the Global Week Ahead, some of the biggest tech names in the U.S. report results.
At the same time, the U.S. federal government will hit its debt limit.
Surprising some across the Atlantic, Britain's FTSE100 share index flirts with a record high.
In Asia, Japan, New Zealand and Australia release consumer price inflation (CPI) data.
Global business activity data (PMIs) out this week can provide the latest insights into how protracted a global demand slowdown could prove.
Next are Reuters' five world market themes, reordered for equity traders—
(1) Big Tech Reports Q4 Earnings
Results from the mega-cap tech and growth companies will test the nascent new year's rebound in tech shares.
Microsoft, the second biggest U.S. company by market value, reports on Tuesday, followed by Elon Musk's Tesla on Wednesday.
That's just the warm up forApple, the top U.S. firm and Google-parent Alphabet the week after.
All told, companies worth more than half the S&P 500's market value are reporting results over the next two weeks.
Earnings season has had a tepid start. S&P500 companies are expected to post an overall -2.6% drop in Q4 earnings versus the year-ago period, according to Refinitiv IBES data.
Other market-moving catalysts could come from economic data, including new home sales on Thursday and the Personal Consumption Expenditures (PCE) index on Friday.
(2) The End of Bear Market Rallies?
Global stocks remain nearly -20% below their January 2022 record high. But MSCI's global share index is also on its longest winning streak since the depths of the bear market last October, as traders bet on economic conditions improving.
All eyes will be on purchasing managers indexes summarizing executives' views of the business climate, to see if the global economy really is heading somewhere less gloomy.
The JPMorgan Global Composite PMI in December lingered below the 50 benchmark separating expansion from contraction. It was also, at 48.2, a few ticks above November's 29-month low.
Stock markets can predict the global PMI levels, tending to bounce ahead of a sustainable rise of the index.
Improvements in PMI readings from developed economies will likely increase risk appetite.
Another downturn may cause the bears to roar again.
(3) London's FTSE 100 Looks Strong
London's blue-chip FTSE 100 index is poised to launch a new attempt to scale an all-time high in days to come.
The rally is a sign, at least in part, that the so-called "moron premium" which weighed on British assets after the political turmoil of autumn 2022 is easing.
That's not the only thing helping the index outperform peers - its heavy weighting of miners and other commodity-focused stocks has received a boost from China's reopening.
The fact it is only just about to match its May 2018 record reflects the FTSE's weakness in recent years: The S&P 500 hit its record top in January 2022 and is currently +40% above May 2018 levels.
British public sector borrowing numbers, producer price inflation and PMI data are all due as well, ahead of a Bank of England meeting the following week.
(4) The U.S. Federal Government Hits Debt Ceiling
The U.S. government hit its $31.4 trillion borrowing limit amid a spat between the Republican-controlled House of Representatives and President Joe Biden's Democrats over raising the country's debt ceiling - a standoff that could lead to a fiscal crisis, or at worst a default within months.
Immediate fallout might be limited, but risks will emerge closer to June, when the government approaches the date beyond which the Treasury will likely have exhausted emergency maneuvers to stave off default.
Legislative fights over the limit this last decade have largely been resolved before they hurt markets. But a lengthy standoff in 2011 prompted S&P to downgrade the U.S. credit rating for the first time.
U.S. credit default swaps - an instrument used to insure against default - have hit decade highs in recent days.
(5) Global Consumer Price inflation (CPI) Rates Hit the Tape
The Bank of Japan just sent a strong signal to the bond market: stop betting that the end of stimulus is near.
But data could fuel market speculation. Inflation renewed a more than four-decade high nationwide last month, and double the BOJ's 2% target. January figures for Tokyo could push even higher when they're released on Jan. 27.
While Japanese government bond yields remain subdued following the BOJ's unanimous decision to keep the status quo on Wednesday, currency markets tell a different story.
The yen retraced most of its big, knee-jerk drop on the same day of the decision, and is hovering near seven-month highs.
On Wednesday, watch out for Australian and New Zealand inflation data as well, with the RBNZ pondering how much more to tighten, and the RBA wondering whether it's time to pause.
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Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Tesla, Inc. (TSLA) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Stocks recently featured in the blog include: Microsoft MSFT, Tesla TSLA, Apple AAPL and Alphabet GOOGL. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. But MSCI's global share index is also on its longest winning streak since the depths of the bear market last October, as traders bet on economic conditions improving.
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Stocks recently featured in the blog include: Microsoft MSFT, Tesla TSLA, Apple AAPL and Alphabet GOOGL. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. Here are highlights from Monday’s Analyst Blog: Big Tech Reports: Global Week Ahead In the Global Week Ahead, some of the biggest tech names in the U.S. report results.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. Stocks recently featured in the blog include: Microsoft MSFT, Tesla TSLA, Apple AAPL and Alphabet GOOGL. Here are highlights from Monday’s Analyst Blog: Big Tech Reports: Global Week Ahead In the Global Week Ahead, some of the biggest tech names in the U.S. report results.
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Stocks recently featured in the blog include: Microsoft MSFT, Tesla TSLA, Apple AAPL and Alphabet GOOGL. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. Global stocks remain nearly -20% below their January 2022 record high.
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2023-01-24 00:00:00 UTC
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Should WisdomTree U.S. LargeCap ETF (EPS) Be on Your Investing Radar?
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https://www.nasdaq.com/articles/should-wisdomtree-u.s.-largecap-etf-eps-be-on-your-investing-radar-6
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The WisdomTree U.S. LargeCap ETF (EPS) was launched on 02/23/2007, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Value segment of the US equity market.
The fund is sponsored by Wisdomtree. It has amassed assets over $653.55 million, making it one of the average sized ETFs attempting to match the Large Cap Value segment of the US equity market.
Why Large Cap Value
Large cap companies typically 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.
Carrying lower than average price-to-earnings and price-to-book ratios, value stocks also have lower than average sales and earnings growth rates. Looking at their long-term performance, value stocks have outperformed growth stocks in almost all markets. They are however likely to underperform growth stocks in strong bull markets.
Costs
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 counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0.08%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.87%.
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 21.40% of the portfolio. Financials and Healthcare round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 4.50% of total assets, followed by Alphabet Inc-Cl A (GOOGL) and Microsoft Corp (MSFT).
The top 10 holdings account for about 26.17% of total assets under management.
Performance and Risk
EPS seeks to match the performance of the WisdomTree U.S. Earnings 500 Index before fees and expenses. The WisdomTree U.S. LargeCap Index is a fundamentally weighted index that measures the performance of earnings-generating companies within the large-capitalization segment of the U.S. Stock Market.
The ETF has added about 4.79% so far this year and is down about -6.09% in the last one year (as of 01/24/2023). In the past 52-week period, it has traded between $38.39 and $49.35.
The ETF has a beta of 1 and standard deviation of 25.02% for the trailing three-year period, making it a medium risk choice in the space. With about 502 holdings, it effectively diversifies company-specific risk.
Alternatives
WisdomTree U.S. LargeCap 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, EPS is a good option for those seeking exposure to the Style Box - Large Cap Value area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Russell 1000 Value ETF (IWD) and the Vanguard Value ETF (VTV) track a similar index. While iShares Russell 1000 Value ETF has $54.28 billion in assets, Vanguard Value ETF has $100.92 billion. IWD has an expense ratio of 0.18% and VTV charges 0.04%.
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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WisdomTree U.S. LargeCap ETF (EPS): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : 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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Looking at individual holdings, Apple Inc (AAPL) accounts for about 4.50% of total assets, followed by Alphabet Inc-Cl A (GOOGL) and Microsoft Corp (MSFT). Click to get this free report WisdomTree U.S. LargeCap ETF (EPS): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : 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. The WisdomTree U.S. LargeCap ETF (EPS) was launched on 02/23/2007, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Value segment of the US equity market.
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Click to get this free report WisdomTree U.S. LargeCap ETF (EPS): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : 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. Looking at individual holdings, Apple Inc (AAPL) accounts for about 4.50% of total assets, followed by Alphabet Inc-Cl A (GOOGL) and Microsoft Corp (MSFT). 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 WisdomTree U.S. LargeCap ETF (EPS): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : 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. Looking at individual holdings, Apple Inc (AAPL) accounts for about 4.50% of total assets, followed by Alphabet Inc-Cl A (GOOGL) and Microsoft Corp (MSFT). Alternatives WisdomTree U.S. LargeCap 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 4.50% of total assets, followed by Alphabet Inc-Cl A (GOOGL) and Microsoft Corp (MSFT). Click to get this free report WisdomTree U.S. LargeCap ETF (EPS): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : 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. The WisdomTree U.S. LargeCap ETF (EPS) was launched on 02/23/2007, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Value segment of the US equity market.
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17464.0
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2023-01-24 00:00:00 UTC
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1 Warren Buffett Stock to Buy in 2023 and Hold Forever
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AAPL
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https://www.nasdaq.com/articles/1-warren-buffett-stock-to-buy-in-2023-and-hold-forever
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nan
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nan
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There are countless reasons to invest in Apple's (NASDAQ: AAPL) stock, but Warren Buffett's faith in the tech company is one of the big ones. Since the investing star first bought the stock in 2016, its shares have shot up 424%. The consistent growth led Buffett's holdings company Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) to make Apple 38% of its portfolio, by far the biggest portion. Comparatively, the company's second-biggest holding is Bank of America at 10.5%.
In the first three weeks of the new year, Apple shares have been gradually rising, up 8.6% year to date. However, the stock is still down 13.1% year over year. Now is an excellent time to invest in this resilient and reliable company.
Here's one Warren Buffett stock to buy in 2023 and hold forever.
Apple is maximizing iPhone profits
Last year ended sourly for Apple, with its stock plunging 12% in December 2022. The fall was primarily fueled by concerns over the company's dependency on China for its iPhone production after increased COVID-19 restrictions put strains on the factory, which produces about 70% of iPhones. The stock has since recovered some, with production back to 90% capacity. However, other developments see Apple securing its future over the long term.
The iPhone accounted for 52% of Apple's revenue in 2022. While the company has other quickly growing segments, such as a booming services business, the iPhone is still its biggest asset and a compelling avenue to attract consumers to its other offerings. Thus, Apple's recent moves toward boosting iPhone profit margins are promising.
Since the start of 2023, Bloomberg has released multiple reports that Apple is working toward reducing its reliance on other tech companies. For instance, on Jan. 9, the publication revealed Apple will swap Qualcomm's telecom chips in the iPhone with in-house versions and will do the same with Broadcom's Wi-Fi and Bluetooth chips.
Moreover, Bloomberg reported on Jan. 11 that Apple will shift away from using Samsung and LG iPhone displays as early as 2024 in favor of its own custom-designed screens. The move will allow Apple to boost profits by ending costly partnerships with these companies. Because the tech giant already uses in-house chips, screens are the single most expensive iPhone component, making the decision to move to custom versions lucrative for operating income.
Apple is expanding in other markets
In addition to optimizing iPhone profits, Apple is adding another layer of protection to its business by diversifying its revenue to lessen its smartphone dependency.
According to Grand View Research, the online on-demand home services market was worth $3.7 billion in 2021 and will grow at a compound annual growth rate (CAGR) of 16.7% through 2030. And Apple is in a prime position to profit from that growth with its subscription-based services, Apple TV+, Music, Fitness+, News+, Arcade, and iCloud.
In fact, the company is already enjoying revenue boosts from the industry, with services revenue rising 14% in 2022, double iPhone growth. Meanwhile, services hit a 71.7% profit margin compared to products' 36.3% profit margin.
Additionally, Apple reportedly has plans to venture into the augmented and virtual reality (AR/VR) markets in 2023 with the launch of a new headset. The coming device is promising, as the VR market was worth $21.8 billion in 2021 and will grow at a CAGR of 15% until at least 2030. Furthermore, the AR market is worth $25.33 billion and is expected to see a CAGR of 40.9% in the same period.
Apple is home to some of the world's most in-demand products; it's not surprising it's one of Buffett's top stocks. The company has provided investors with consistent growth over the long term, making it a stock you can buy now and hold forever.
10 stocks we like better than Apple
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*Stock Advisor returns as of January 9, 2023
Bank of America is an advertising partner of The Ascent, a Motley Fool company. Dani Cook has positions in LG Display. The Motley Fool has positions in and recommends Apple, Bank of America, Berkshire Hathaway, and Qualcomm. The Motley Fool recommends Broadcom and recommends the following options: long January 2023 $200 calls on Berkshire Hathaway, long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway, short January 2023 $265 calls on Berkshire Hathaway, and short March 2023 $130 calls on 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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There are countless reasons to invest in Apple's (NASDAQ: AAPL) stock, but Warren Buffett's faith in the tech company is one of the big ones. While the company has other quickly growing segments, such as a booming services business, the iPhone is still its biggest asset and a compelling avenue to attract consumers to its other offerings. Because the tech giant already uses in-house chips, screens are the single most expensive iPhone component, making the decision to move to custom versions lucrative for operating income.
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There are countless reasons to invest in Apple's (NASDAQ: AAPL) stock, but Warren Buffett's faith in the tech company is one of the big ones. The consistent growth led Buffett's holdings company Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) to make Apple 38% of its portfolio, by far the biggest portion. The Motley Fool has positions in and recommends Apple, Bank of America, Berkshire Hathaway, and Qualcomm.
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There are countless reasons to invest in Apple's (NASDAQ: AAPL) stock, but Warren Buffett's faith in the tech company is one of the big ones. Apple is maximizing iPhone profits Last year ended sourly for Apple, with its stock plunging 12% in December 2022. Apple is expanding in other markets In addition to optimizing iPhone profits, Apple is adding another layer of protection to its business by diversifying its revenue to lessen its smartphone dependency.
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There are countless reasons to invest in Apple's (NASDAQ: AAPL) stock, but Warren Buffett's faith in the tech company is one of the big ones. Here's one Warren Buffett stock to buy in 2023 and hold forever. That's right -- they think these 10 stocks are even better buys.
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17465.0
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2023-01-24 00:00:00 UTC
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Stock Market News for Jan 24, 2023
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AAPL
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https://www.nasdaq.com/articles/stock-market-news-for-jan-24-2023
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nan
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nan
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U.S. stocks closed higher on Monday, led by a tech rally, as investors geared up for a busy week of earnings and grew optimistic about the Fed going slow on its interest rate hikes in the coming months. All three major indexes ended in positive territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) gained 0.8% or 254.07 points to close at 33,629.56 points.
The S&P 500 rose 1.2% or 47.2 points to finish at 4,019.81 points. Communication services and tech stocks were the biggest gainers.
The Communication Services Select Sector SPDR (XLC) gained 1.8%. The Technology Select Sector SPDR (XLK) rose 2.3%. All 11 sectors of the benchmark index ended in positive territory.
The tech-heavy Nasdaq jumped 2% or 223.98 points to end at 11,364.41 points.
The fear-gauge CBOE Volatility Index (VIX) was down 0.20% to 19.81. Advancers outnumbered decliners on the NYSE by a 2.77-to-1 ratio. On Nasdaq, a 1.73-to-1 ratio favored advancing issues. A total of 11.99 billion shares were traded on Monday, higher than the last 20-session average of 10.62 billion.
Investors Optimistic Ahead of Fed’s Meeting
Investors started a fresh week with renewed vigor as they are growing optimistic ahead of the Fed’s policy meeting in February. They are weighing on the possibility that the Fed might slow its pace of rate hikes after going with an aggressive rate-hike policy in 2022. The central bank already gave hint by increasing the interest rate by 50 basis points after four consecutive 75-basis point rate hikes.
Also, data released last week showed that wholesale prices declined in December, which is a sign of easing inflation. Also, Fed Governor Christopher Waller’s comments on Friday indicated that he prefers a 25-basis point quarterly rise in interest rates. These have made investors optimistic.
Also, investors braced for a busy week of earnings on Monday. A large number of tech companies are scheduled to report earnings this week. Monday’s rally was also driven by tech stocks ahead of earnings. Shares of International Business Machines Corporation IBM gained 0.5% ahead of announcing its quarterly results this week.
Shares of Apple Inc. AAPL gained 2.4% on hopes that the reopening in China will help the smooth functioning of its business after taking a major blow over the past couple of months owing to the COVID-induced lockdown. Apple has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
No economic data was released on Monday.
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
International Business Machines Corporation (IBM) : 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 gained 2.4% on hopes that the reopening in China will help the smooth functioning of its business after taking a major blow over the past couple of months owing to the COVID-induced lockdown. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report International Business Machines Corporation (IBM) : Free Stock Analysis Report To read this article on Zacks.com click here. U.S. stocks closed higher on Monday, led by a tech rally, as investors geared up for a busy week of earnings and grew optimistic about the Fed going slow on its interest rate hikes in the coming months.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report International Business Machines Corporation (IBM) : Free Stock Analysis Report To read this article on Zacks.com click here. Shares of Apple Inc. AAPL gained 2.4% on hopes that the reopening in China will help the smooth functioning of its business after taking a major blow over the past couple of months owing to the COVID-induced lockdown. The Communication Services Select Sector SPDR (XLC) gained 1.8%.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report International Business Machines Corporation (IBM) : Free Stock Analysis Report To read this article on Zacks.com click here. Shares of Apple Inc. AAPL gained 2.4% on hopes that the reopening in China will help the smooth functioning of its business after taking a major blow over the past couple of months owing to the COVID-induced lockdown. U.S. stocks closed higher on Monday, led by a tech rally, as investors geared up for a busy week of earnings and grew optimistic about the Fed going slow on its interest rate hikes in the coming months.
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Shares of Apple Inc. AAPL gained 2.4% on hopes that the reopening in China will help the smooth functioning of its business after taking a major blow over the past couple of months owing to the COVID-induced lockdown. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report International Business Machines Corporation (IBM) : Free Stock Analysis Report To read this article on Zacks.com click here. U.S. stocks closed higher on Monday, led by a tech rally, as investors geared up for a busy week of earnings and grew optimistic about the Fed going slow on its interest rate hikes in the coming months.
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17466.0
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2023-01-24 00:00:00 UTC
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How to Find Strong Computer and Technology Stocks Slated for Positive Earnings Surprises
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AAPL
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https://www.nasdaq.com/articles/how-to-find-strong-computer-and-technology-stocks-slated-for-positive-earnings-surprises-0
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nan
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nan
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Earnings are arguably the most important single number on a company's quarterly financial report. Wall Street clearly dives into all of the other metrics and management's input, but the EPS figure helps cut through all the noise.
Life and the stock market are both about expectations, and rising above what is expected is often rewarded, while falling short can come with negative consequences. Investors might want to try to capture stronger returns by finding positive earnings surprises.
The ability to identify stocks that are likely to top quarterly earnings expectations can be profitable, but it's no simple task. Here at Zacks, our Earnings ESP filter helps make things easier.
The Zacks Earnings ESP, Explained
The Zacks Earnings ESP, or Expected Surprise Prediction, aims to find earnings surprises by focusing on the most recent analyst revisions. The basic premise is that if an analyst reevaluates their earnings estimate ahead of an earnings release, it means they likely have new information that could possibly be more accurate.
Now that we understand the basic idea, let's look at how the Expected Surprise Prediction works. The ESP is calculated by comparing the Most Accurate Estimate to the Zacks Consensus Estimate, with the percentage difference between the two giving us the Zacks ESP figure.
When we join a positive earnings ESP with a Zacks Rank #3 (Hold) or stronger, stocks posted a positive bottom-line surprise 70% of the time. Plus, this system saw investors produce roughly 28% annual returns on average, according to our 10 year backtest.
Most stocks, about 60%, fall into the #3 (Hold) category, and they are expected to perform in-line with the broader market. Stocks with a #2 (Buy) and #1 (Strong Buy) rating, or the top 15% and top 5% of stocks, respectively, should outperform the market, with Strong Buy stocks outperforming more than any other rank.
Should You Consider ASML?
The final step today is to look at a stock that meets our ESP qualifications. ASML (ASML) earns a #2 (Buy) one day from its next quarterly earnings release on January 25, 2023, and its Most Accurate Estimate comes in at $4.81 a share.
ASML's Earnings ESP sits at +4.19%, which, as explained above, is calculated by taking the percentage difference between the $4.81 Most Accurate Estimate and the Zacks Consensus Estimate of $4.62. ASML is also part of a large group of stocks that boast a positive ESP. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
ASML is just one of a large group of Computer and Technology stocks with a positive ESP figure. Apple (AAPL) is another qualifying stock you may want to consider.
Apple, which is readying to report earnings on February 2, 2023, sits at a Zacks Rank #3 (Hold) right now. It's Most Accurate Estimate is currently $1.94 a share, and AAPL is nine days out from its next earnings report.
The Zacks Consensus Estimate for Apple is $1.93, and when you take the percentage difference between that number and its Most Accurate Estimate, you get the Earnings ESP figure of +0.35%.
ASML and AAPL's positive ESP figures tell us that both stocks have a good chance at beating analyst expectations in their next earnings report.
Find Stocks to Buy or Sell Before They're Reported
Use the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they're reported for profitable earnings season trading. Check it out here >>
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
ASML Holding N.V. (ASML) : Free Stock Analysis 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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ASML and AAPL's positive ESP figures tell us that both stocks have a good chance at beating analyst expectations in their next earnings report. Apple (AAPL) is another qualifying stock you may want to consider. It's Most Accurate Estimate is currently $1.94 a share, and AAPL is nine days out from its next earnings report.
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Click to get this free report ASML Holding N.V. (ASML) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple (AAPL) is another qualifying stock you may want to consider. It's Most Accurate Estimate is currently $1.94 a share, and AAPL is nine days out from its next earnings report.
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Click to get this free report ASML Holding N.V. (ASML) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple (AAPL) is another qualifying stock you may want to consider. It's Most Accurate Estimate is currently $1.94 a share, and AAPL is nine days out from its next earnings report.
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It's Most Accurate Estimate is currently $1.94 a share, and AAPL is nine days out from its next earnings report. Apple (AAPL) is another qualifying stock you may want to consider. ASML and AAPL's positive ESP figures tell us that both stocks have a good chance at beating analyst expectations in their next earnings report.
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17467.0
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2023-01-24 00:00:00 UTC
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Timing the Market: EPS is a Lagging Indicator
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AAPL
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https://www.nasdaq.com/articles/timing-the-market%3A-eps-is-a-lagging-indicator
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nan
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nan
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Timing is Everything
In both life and markets, timing is a critical ingredient to success and often impacts the outcome of a situation. For example, you can meet the right partner at the wrong time in your life or interview for the right job at the wrong time in your career. Or imagine you invested in shares of Amazon AMZN at or near the peak of the dot com bubble in 2000. While ultimately, the company would become the dominant player in the eCommerce space and a massive winning stock, you would have likely been stopped out or suffered fatigue from holding shares.
The General Market Direction has the Greatest Impact on Stocks
Because most stocks tend to follow the direction of the major indices, one crucial factor that can significantly increase our chances of investing profitability is to be in sync with the direction of the major market indices. In other words, “so goes the S&P 500 Index, so goes your portfolio”. Below is a chart of Apple AAPL versus the S&P 500.
Image Source: Zacks Investment Research
Price Bottoms Precede Earnings Bottoms
But like individual stocks, the general market also requires timing. In the long run, markets are driven by earnings growth. However, historical precedent tells us that in bear markets, stocks tend to bottom long before earnings. In other words, a stock’s price tends to trough long before earnings turnaround.
Image Source: Zacks Investment Research
The chart above represents the S&P 500’s performance (blue line) above the S&P’s EPS. In the past two bear markets (COVID-19 correction of 20’ & the Housing Crisis of 08’), the S&P 500 bottomed roughly three quarters before earnings turned around and began to accelerate again! In the aftermath of the dot com bubble, price and EPS bottomed simultaneously. Said another way, at some point in the last legs of a bear market, the investors begin to discount the future and tend to look past weakening earnings data.
How to Time the Market
So, if we can’t rely on real-time earnings data to lead us, what should we depend on?
· Zack’s Consensus Estimates: While most of us do not have a crystal ball into earnings, Zack’s processes information from roughly 3,000 analysts at over 150 different brokerage firms to provide consensus analysts estimates moving forward.
Image Source: Zacks Investment Research
· Guidance: Though paying attention to the current quarter is important, most companies also provide investors with forward-looking statements and EPS guidance.
· Participation: Wide participation is a signal of a strong market. A new uptrend is more likely to work if several sectors are acting strong and leadership is broad. Market breadth (number of stocks up vs. down), new highs vs. lows, and number of stocks above their 50-day moving average are some tools traders can use to measure participation.
· Reaction to Earnings:Most investors would be hard-pressed to predict the price action of a stock following earnings if they were given the earnings ahead of time. More times than not, the reaction to a report and earnings season is more important than the report itself.
Summary
Ultimately, earnings dictate the direction of the market. However, stock market history suggests real-time EPS is a lagging indicator. Instead, investors should pay attention to consensus estimates, guidance, market participation, and earnings reactions.
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
Amazon.com, Inc. (AMZN) : Free Stock Analysis 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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Below is a chart of Apple AAPL versus the S&P 500. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. While ultimately, the company would become the dominant player in the eCommerce space and a massive winning stock, you would have likely been stopped out or suffered fatigue from holding shares.
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. Below is a chart of Apple AAPL versus the S&P 500. Image Source: Zacks Investment Research Price Bottoms Precede Earnings Bottoms But like individual stocks, the general market also requires timing.
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Below is a chart of Apple AAPL versus the S&P 500. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. The General Market Direction has the Greatest Impact on Stocks Because most stocks tend to follow the direction of the major indices, one crucial factor that can significantly increase our chances of investing profitability is to be in sync with the direction of the major market indices.
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Below is a chart of Apple AAPL versus the S&P 500. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. Image Source: Zacks Investment Research Price Bottoms Precede Earnings Bottoms But like individual stocks, the general market also requires timing.
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17468.0
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2023-01-24 00:00:00 UTC
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Is WisdomTree U.S. Quality Dividend Growth ETF (DGRW) a Strong ETF Right Now?
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AAPL
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https://www.nasdaq.com/articles/is-wisdomtree-u.s.-quality-dividend-growth-etf-dgrw-a-strong-etf-right-now-5
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nan
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nan
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Designed to provide broad exposure to the Style Box - Large Cap Value category of the market, the WisdomTree U.S. Quality Dividend Growth ETF (DGRW) is a smart beta exchange traded fund launched on 05/22/2013.
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.
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.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
The fund is sponsored by Wisdomtree. It has amassed assets over $7.73 billion, making it one of the larger ETFs in the Style Box - Large Cap Value. Before fees and expenses, this particular fund seeks to match the performance of the WisdomTree U.S. Quality Dividend Growth Index.
The WisdomTree U.S. Quality Dividend Growth Index is a fundamentally weighted index that consists of dividend-paying stocks with growth characteristics.
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 DGRW, making it on par with most peer products in the space.
The fund has a 12-month trailing dividend yield of 2.11%.
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.
For DGRW, it has heaviest allocation in the Information Technology sector --about 27.20% of the portfolio --while Consumer Staples and Healthcare round out the top three.
When you look at individual holdings, Microsoft Corp (MSFT) accounts for about 6.33% of the fund's total assets, followed by Apple Inc (AAPL) and Johnson & Johnson (JNJ).
DGRW's top 10 holdings account for about 33.28% of its total assets under management.
Performance and Risk
The ETF has gained about 2.20% so far this year and is up roughly 0.48% in the last one year (as of 01/24/2023). In the past 52-week period, it has traded between $53.91 and $64.63.
The ETF has a beta of 0.89 and standard deviation of 22.73% for the trailing three-year period, making it a medium risk choice in the space. With about 299 holdings, it effectively diversifies company-specific risk.
Alternatives
WisdomTree U.S. Quality Dividend Growth 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 Core Dividend Growth ETF (DGRO) tracks Morningstar US Dividend Growth Index and the Vanguard Dividend Appreciation ETF (VIG) tracks NASDAQ US Dividend Achievers Select Index. IShares Core Dividend Growth ETF has $24.90 billion in assets, Vanguard Dividend Appreciation ETF has $66.64 billion. DGRO has an expense ratio of 0.08% and VIG charges 0.06%.
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
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WisdomTree U.S. Quality Dividend Growth ETF (DGRW): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Johnson & Johnson (JNJ) : Free Stock Analysis Report
Vanguard Dividend Appreciation ETF (VIG): ETF Research Reports
iShares Core Dividend Growth ETF (DGRO): 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, Microsoft Corp (MSFT) accounts for about 6.33% of the fund's total assets, followed by Apple Inc (AAPL) and Johnson & Johnson (JNJ). Click to get this free report WisdomTree U.S. Quality Dividend Growth ETF (DGRW): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Johnson & Johnson (JNJ) : Free Stock Analysis Report Vanguard Dividend Appreciation ETF (VIG): ETF Research Reports iShares Core Dividend Growth ETF (DGRO): ETF Research Reports To read this article on Zacks.com click here. Designed to provide broad exposure to the Style Box - Large Cap Value category of the market, the WisdomTree U.S. Quality Dividend Growth ETF (DGRW) is a smart beta exchange traded fund launched on 05/22/2013.
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Click to get this free report WisdomTree U.S. Quality Dividend Growth ETF (DGRW): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Johnson & Johnson (JNJ) : Free Stock Analysis Report Vanguard Dividend Appreciation ETF (VIG): ETF Research Reports iShares Core Dividend Growth ETF (DGRO): ETF Research Reports To read this article on Zacks.com click here. When you look at individual holdings, Microsoft Corp (MSFT) accounts for about 6.33% of the fund's total assets, followed by Apple Inc (AAPL) and Johnson & Johnson (JNJ). IShares Core Dividend Growth ETF (DGRO) tracks Morningstar US Dividend Growth Index and the Vanguard Dividend Appreciation ETF (VIG) tracks NASDAQ US Dividend Achievers Select Index.
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Click to get this free report WisdomTree U.S. Quality Dividend Growth ETF (DGRW): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Johnson & Johnson (JNJ) : Free Stock Analysis Report Vanguard Dividend Appreciation ETF (VIG): ETF Research Reports iShares Core Dividend Growth ETF (DGRO): ETF Research Reports To read this article on Zacks.com click here. When you look at individual holdings, Microsoft Corp (MSFT) accounts for about 6.33% of the fund's total assets, followed by Apple Inc (AAPL) and Johnson & Johnson (JNJ). IShares Core Dividend Growth ETF (DGRO) tracks Morningstar US Dividend Growth Index and the Vanguard Dividend Appreciation ETF (VIG) tracks NASDAQ US Dividend Achievers Select Index.
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When you look at individual holdings, Microsoft Corp (MSFT) accounts for about 6.33% of the fund's total assets, followed by Apple Inc (AAPL) and Johnson & Johnson (JNJ). Click to get this free report WisdomTree U.S. Quality Dividend Growth ETF (DGRW): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Johnson & Johnson (JNJ) : Free Stock Analysis Report Vanguard Dividend Appreciation ETF (VIG): ETF Research Reports iShares Core Dividend Growth ETF (DGRO): ETF Research Reports To read this article on Zacks.com click here. Designed to provide broad exposure to the Style Box - Large Cap Value category of the market, the WisdomTree U.S. Quality Dividend Growth ETF (DGRW) is a smart beta exchange traded fund launched on 05/22/2013.
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17469.0
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2023-01-24 00:00:00 UTC
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3 Hidden Stocks That Could Make You a Fortune
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AAPL
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https://www.nasdaq.com/articles/3-hidden-stocks-that-could-make-you-a-fortune
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nan
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nan
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Not all great investments get headlines in the paper or online. Some companies are generating value for investors with little fanfare. In this video, Travis Hoium and Lou Whiteman discuss three stocks you may have overlooked because they get little fanfare.
*Stock prices used were end of day prices of Jan. 19, 2023. The video was published on Jan. 23, 2023.
10 stocks we like better than GXO Logistics
When our award-winning 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 GXO Logistics 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 January 9, 2023
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Lou Whiteman has positions in Boston Omaha, GXO Logistics, Microsoft, Nelnet, Shopify, and Walt Disney. Travis Hoium has positions in Alphabet, Apple, Shopify, and Walt Disney and has the following options: long March 2023 $250 puts on Tesla. The Motley Fool has positions in and recommends Alphabet, Apple, Boston Omaha, Meta Platforms, Microsoft, Nelnet, Nike, Shopify, Tesla, and Walt Disney. The Motley Fool recommends GXO Logistics and Nestlé and recommends the following options: long January 2023 $1,140 calls on Shopify, long January 2024 $145 calls on Walt Disney, long January 2025 $47.50 calls on Nike, long March 2023 $120 calls on Apple, short January 2023 $1,160 calls on Shopify, short January 2024 $155 calls on Walt Disney, and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy. Travis Hoium is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Lou Whiteman has positions in Boston Omaha, GXO Logistics, Microsoft, Nelnet, Shopify, and Walt Disney. Travis Hoium has positions in Alphabet, Apple, Shopify, and Walt Disney and has the following options: long March 2023 $250 puts on Tesla. The Motley Fool has positions in and recommends Alphabet, Apple, Boston Omaha, Meta Platforms, Microsoft, Nelnet, Nike, Shopify, Tesla, and Walt Disney.
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Lou Whiteman has positions in Boston Omaha, GXO Logistics, Microsoft, Nelnet, Shopify, and Walt Disney. The Motley Fool has positions in and recommends Alphabet, Apple, Boston Omaha, Meta Platforms, Microsoft, Nelnet, Nike, Shopify, Tesla, and Walt Disney. The Motley Fool recommends GXO Logistics and Nestlé and recommends the following options: long January 2023 $1,140 calls on Shopify, long January 2024 $145 calls on Walt Disney, long January 2025 $47.50 calls on Nike, long March 2023 $120 calls on Apple, short January 2023 $1,160 calls on Shopify, short January 2024 $155 calls on Walt Disney, and short March 2023 $130 calls on Apple.
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See the 10 stocks *Stock Advisor returns as of January 9, 2023 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. The Motley Fool has positions in and recommends Alphabet, Apple, Boston Omaha, Meta Platforms, Microsoft, Nelnet, Nike, Shopify, Tesla, and Walt Disney. The Motley Fool recommends GXO Logistics and Nestlé and recommends the following options: long January 2023 $1,140 calls on Shopify, long January 2024 $145 calls on Walt Disney, long January 2025 $47.50 calls on Nike, long March 2023 $120 calls on Apple, short January 2023 $1,160 calls on Shopify, short January 2024 $155 calls on Walt Disney, and short March 2023 $130 calls on Apple.
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In this video, Travis Hoium and Lou Whiteman discuss three stocks you may have overlooked because they get little fanfare. See the 10 stocks *Stock Advisor returns as of January 9, 2023 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Lou Whiteman has positions in Boston Omaha, GXO Logistics, Microsoft, Nelnet, Shopify, and Walt Disney.
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17470.0
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2023-01-23 00:00:00 UTC
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Stock Market Recovery: These 4 Stocks Have Been on the Rise in 2023
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AAPL
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https://www.nasdaq.com/articles/stock-market-recovery%3A-these-4-stocks-have-been-on-the-rise-in-2023
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nan
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nan
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After economic headwinds triggered a stock market sell-off in 2022, countless companies started 2023 with their shares at lower-than-optimal valuations. Many of the biggest names in tech and entertainment have suffered double-digit percentage declines over the last 12 months.
However, investors seem to be feeling optimistic as the new year opens. Numerous companies have gradually been trending upward since Jan. 1 -- and now would be an excellent time to invest in solid businesses before their share prices climb any higher.
Here are four stocks that I'd recommend that have been on the rise early in 2023, in order from the least growth to the most.
1. Apple
Apple (NASDAQ: AAPL) shares are down 15% year over year, but have gained 10% since the start of January. While the iPhone company has seen the least growth of the companies on this list, it also declined by the least over the course of the last 12 months. The tech star's robust business has overcome economic challenges better than most companies, and the prospect of promising developments in 2023 has prompted investors to bid the stock up a bit.
In the first few weeks of the new year, multiple reports have revealed aspects of Apple's roadmap for the next couple of years, including a mixed-reality headset due to launch in 2023, touchscreen Macs, $99 AirPods, and an in-house designed telecom chip. If true, each of these ventures has the potential to offer revenue boosts over the long term.
The headset alone will thrust Apple into a burgeoning market. The augmented reality industry was worth $25.33 billion in 2021, and Grand View Research predicts it will grow at a 40.9% compound annual rate through 2030.
2. Alphabet
Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) shares have risen 11% since Jan. 1. That's positive news for investors, as the stock is down 24% year over year.
The Google parent suffered in 2022 from declining ad spending as rising inflation and fears of an economic downturn led many businesses to slash their marketing budgets. However, Alphabet's stock is particularly attractive this month, trading at a price-to-earnings ratio of 18 -- one of its lowest valuations by that metric in a decade. This suggests its current share price doesn't properly reflect the company's financials, making it a bargain.
Moreover, Alphabet's stock is still up by 72% over the last five years. Meanwhile, its operating income increased by about 200% from $26.18 billion in 2017 to $78.71 billion in 2021. The company may have suffered from temporary economic challenges last year, but I wouldn't bet against its continued long-term growth.
3. Netflix
The start of 2023 has investors feeling bullish about Netflix (NASDAQ: NFLX), with its stock rising 16% since Jan. 1. However, the company still has a mountain to climb, with its shares down 14% year over year.
The streaming giant has had a challenging 12 months, to say the least, suffering from dwindling market share in an industry it almost single-handedly created. Its declines were primarily due to the intensifying competition in its space. Disney surpassed Netflix for most total subscribers in Q3 (when combining Disney+, Hulu, and ESPN+) and retained the top position in Q4.
Netflix responded by introducing a cheaper, ad-supported tier to its service and venturing into video games with Netflix Games. However, it's still too early to know if these changes will be effective or profitable.
Analysts' average 12-month price target of $349.32 for Netflix is only about 2% higher than its current price. Netflix's stock growth in 2023 is positive, but it might be best to hold off investing in the streaming company for now.
4. Amazon
After an immensely challenging year for Amazon's (NASDAQ: AMZN) e-commerce business, the company's stock has started 2023 on the right foot, rising 16% since Jan. 1. Investors are growing a bit more optimistic about Amazon's future based on signs that U.S. inflation is easing, as well as an expansion of the company's "Buy with Amazon" program that makes it possible for the company to earn revenue from nearly any e-commerce site.
Amazon shares are still down 32% in the last 12 months. The company's e-commerce segment provided 85% of its revenue in the third quarter of 2022, but was responsible for operating losses of $2.87 billion. As a result, Amazon's success in the next year will largely be dependent on a recovering economy. Yet the possibility that instead there will be a recession makes its short-term future murky.
Amazon's stock is currently trading at 89 times earnings. That's too expensive of a valuation to buy now, in my view. However, the company's leading market share in multiple high-growth markets make it an investment worth keeping an eye on, so you can buy when the time is right.
10 stocks we like better than Apple
When our award-winning 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 January 9, 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. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Netflix, and Walt Disney. The Motley Fool recommends the following options: long January 2024 $145 calls on Walt Disney, long March 2023 $120 calls on Apple, short January 2024 $155 calls on Walt Disney, and short March 2023 $130 calls on 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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Apple Apple (NASDAQ: AAPL) shares are down 15% year over year, but have gained 10% since the start of January. Numerous companies have gradually been trending upward since Jan. 1 -- and now would be an excellent time to invest in solid businesses before their share prices climb any higher. The tech star's robust business has overcome economic challenges better than most companies, and the prospect of promising developments in 2023 has prompted investors to bid the stock up a bit.
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Apple Apple (NASDAQ: AAPL) shares are down 15% year over year, but have gained 10% since the start of January. Amazon After an immensely challenging year for Amazon's (NASDAQ: AMZN) e-commerce business, the company's stock has started 2023 on the right foot, rising 16% since Jan. 1. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Netflix, and Walt Disney.
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Apple Apple (NASDAQ: AAPL) shares are down 15% year over year, but have gained 10% since the start of January. Amazon After an immensely challenging year for Amazon's (NASDAQ: AMZN) e-commerce business, the company's stock has started 2023 on the right foot, rising 16% since Jan. 1. Investors are growing a bit more optimistic about Amazon's future based on signs that U.S. inflation is easing, as well as an expansion of the company's "Buy with Amazon" program that makes it possible for the company to earn revenue from nearly any e-commerce site.
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Apple Apple (NASDAQ: AAPL) shares are down 15% year over year, but have gained 10% since the start of January. Amazon After an immensely challenging year for Amazon's (NASDAQ: AMZN) e-commerce business, the company's stock has started 2023 on the right foot, rising 16% since Jan. 1. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Netflix, and Walt Disney.
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17471.0
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2023-01-23 00:00:00 UTC
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Why Apple Stock Was Climbing Today
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AAPL
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https://www.nasdaq.com/articles/why-apple-stock-was-climbing-today
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nan
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nan
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What happened
Shares of Apple (NASDAQ: AAPL) were moving higher today after two analysts reiterated buy ratings on the FAANG stock with one noting that Apple seems likely to beat its own vague guidance due to the weakening dollar.
Shares were up 2.9% as of 2:26 p.m. EST.
So what
In a note this morning, UBS analyst David Vogt maintained his buy rating and a price target of $180 on the stock, noting that his earlier decision to lower his estimates on supply chain issues didn't account for the weakening dollar, especially against currencies in Apple's top foreign markets like Europe, the U.K., China, and Japan.
On its fiscal fourth-quarterearnings call Apple had guided for a 10 percentage-point headwind in foreign currency, but Vogt believes the actual headwind will be four to five percentage points less than that.
Deutsche Bank also raised its buy rating on Apple ahead of its earnings report next Thursday. Analyst Sidney Ho lowered his price target on the stock from $170 to $160, though he said he expected Apple's Q1 results to meet or slightly beat his estimates. He noted that supply constraints have improved since the company's announcement of delays back in November and that the risk/reward in the stock is positive following a recent pullback in the share price.
Finally, Bloomberg reported more details on the company's upcoming mixed-reality headset, saying that hand-and-eye-tracking capabilities could set it apart from rivals. The headset is expected to cost as much as $3,000 and could be a significant revenue driver for the iPhone maker.
Now what
Apple was rising in tandem with the broad market as investors seemed to be betting the Fed will moderate its interest rate hike to just 25 basis points at its meeting next week.
The weakening dollar will almost certainly be a tailwind for Apple in its upcoming report, at least compared to its earlier forecast, and could be one over the rest of the year. That, the recent sell-off in the stock, and the potential impact of the new headset all make Apple an intriguing buy at the current price, which is just slightly more expensive than the S&P 500.
We'll learn more when the company reports earnings next week.
10 stocks we like better than Apple
When our award-winning 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 January 9, 2023
Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on 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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What happened Shares of Apple (NASDAQ: AAPL) were moving higher today after two analysts reiterated buy ratings on the FAANG stock with one noting that Apple seems likely to beat its own vague guidance due to the weakening dollar. Analyst Sidney Ho lowered his price target on the stock from $170 to $160, though he said he expected Apple's Q1 results to meet or slightly beat his estimates. He noted that supply constraints have improved since the company's announcement of delays back in November and that the risk/reward in the stock is positive following a recent pullback in the share price.
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What happened Shares of Apple (NASDAQ: AAPL) were moving higher today after two analysts reiterated buy ratings on the FAANG stock with one noting that Apple seems likely to beat its own vague guidance due to the weakening dollar. So what In a note this morning, UBS analyst David Vogt maintained his buy rating and a price target of $180 on the stock, noting that his earlier decision to lower his estimates on supply chain issues didn't account for the weakening dollar, especially against currencies in Apple's top foreign markets like Europe, the U.K., China, and Japan. Analyst Sidney Ho lowered his price target on the stock from $170 to $160, though he said he expected Apple's Q1 results to meet or slightly beat his estimates.
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What happened Shares of Apple (NASDAQ: AAPL) were moving higher today after two analysts reiterated buy ratings on the FAANG stock with one noting that Apple seems likely to beat its own vague guidance due to the weakening dollar. So what In a note this morning, UBS analyst David Vogt maintained his buy rating and a price target of $180 on the stock, noting that his earlier decision to lower his estimates on supply chain issues didn't account for the weakening dollar, especially against currencies in Apple's top foreign markets like Europe, the U.K., China, and Japan. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple.
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What happened Shares of Apple (NASDAQ: AAPL) were moving higher today after two analysts reiterated buy ratings on the FAANG stock with one noting that Apple seems likely to beat its own vague guidance due to the weakening dollar. So what In a note this morning, UBS analyst David Vogt maintained his buy rating and a price target of $180 on the stock, noting that his earlier decision to lower his estimates on supply chain issues didn't account for the weakening dollar, especially against currencies in Apple's top foreign markets like Europe, the U.K., China, and Japan. That's right -- they think these 10 stocks are even better buys.
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17472.0
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2023-01-23 00:00:00 UTC
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Big Tech Layoffs; Signs of Trouble in the Housing Market
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AAPL
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https://www.nasdaq.com/articles/big-tech-layoffs-signs-of-trouble-in-the-housing-market
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nan
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nan
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In this podcast, Motley Fool senior analysts Matt Argersinger and Jason Moser discuss:
The ripple effect of Big Tech layoffs.
Netflix founder Reed Hastings stepping down from his co-CEO role.
Cancellation rates soaring in one segment of the housing market.
Differing views on interest rates from two major bank CEOs.
The latest from Procter & Gamble, Nordstrom, and holiday retail data.
CEOs they'd like to shadow for a day.
Under-the-radar trends.
Two stocks on their radar: Roper Technologies and Regions Financial.
John Rotonti, head of investor training and development at The Motley Fool, talks with Jurrien Timmer, director of global macro at Fidelity Investments, about what history can teach about the current market cycle and sectors that may hold opportunities for investors.
Motley Fool Stock Advisor is open to new members for just $99 a year. Join the hundreds of thousands of investors in Stock Advisor by going to www.fool.com/intro.
To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. To get started investing, check out our quick-start guide to investing in stocks. A full transcript follows the video.
10 stocks we like better than Walmart
When our award-winning analyst team has an investing 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 Walmart 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 January 9, 2023
This video was recorded on Jan. 20, 2023
Chris Hill: We've got CEOs to follow, under-the-radar trends to watch, and we've got the latest from Big Tech. Motley Fool Money starts now.
From Fool global headquarters, this is Motley Fool Money. It's the Motley Fool Money radio show. I'm Chris Hill, joining me, Motley Fool senior analysts Jason Moser and Matt Argersinger. Good to see you both.
Matt Argersinger: Hey, Chris.
Jason Moser: Hey.
Chris Hill: We've got the latest news from Wall Street. We're going to dip into the Fool mailbag, and as always, we've got a couple of stocks on our radar, but we begin with Big Tech. This week, Microsoft and Alphabet became the latest major companies to announce layoffs. From Microsoft, it was 10,000 employees, roughly five percent of the workforce. Alphabet 12,000 employees, nearly seven percent of the workforce. Matt, a common refrain from these companies in the sense that, both talked about how they over-hired during the pandemic.
Matt Argersinger: Right. That's not a secret anymore. It just seems like every day we're getting a new major announcement that a major tech company is cutting tens of thousands or thousands of jobs, 6 to 7 percent of their workforce. It almost feels like we're getting numb to this happening. I think it's also easy to ignore, and set aside a little bit because the economy, overall, is still adding jobs. The unemployment rate is still, I think, around 3.5 percent, which is near a record low. I think we have to remind ourselves that these companies are the largest companies on the planet, and they have massive tentacles within the overall economy. A 12,000 job cut from Alphabet, it doesn't just affect Google employees. It affects workers who clean Alphabet's offices, food service workers, businesses that do consulting or HR work for the company, businesses that partner with Alphabet on various projects. The more of these come, I feel like the more we're going to see downstream effects to the overall economy. I think, we're getting to a point where it's no longer going to be about inflation that we're concerned about or what the Fed is going to do next. It really is going to start being about jobs and consumer spending. I don't want us listening to this, and seeing these headlines, and saying, "Well, things got overheated during the pandemic, these companies are just correcting, and there's going to be a reversion to the mean, and sure". But the economy is in a vulnerable state, and I think the more of this happens, the more we're going to see that.
Chris Hill: Jason, it does seem like a situation where now the eyes turn to Apple. I mean, Apple is really the lone major tech company that hasn't made this announcement. Do you expect them to, and if they do, what does it say? Because you can look at Alphabet for all of their success, their employee base is actually a little bit smaller than these two other companies.
Jason Moser: Yeah, it is. I guess it's a coin flip as to whether Apple does this or not. I feel like they may be a little bit more insulated than some of these other companies really just due to the nature of the actual business. I mean, at the end of the day, Apple is still, primarily, the iPhone company. I mean, it's a hardware company that uses that hardware. It's the gateway drug to then bring people into its universe, and sell those services, and develop long-lasting relationships. It certainly is possibly, we saw a slowdown on the services side for that business, and so it is possible that they may feel like there are some areas where they can trim a little bit of the fat, so to speak. In regard to Apple, I just don't expect it to be as drastic, perhaps, as some of the other Big Tech names we've seen.
Chris Hill: Let's move on to Netflix, and founder Reed Hastings, going out with a bang. In addition to announcing that subscribers in the fourth quarter came in much higher than expected, the streaming giant announced that Hastings will be stepping down as co-CEO, but staying on as Executive Chairman of the Board. Chief Operating Officer, Greg Peters, has been promoted to co-CEO alongside Ted Sarandos, and shares of Netflix up seven percent on Friday, Jason?
Jason Moser: Yeah. I mean, on the face of it, it was a very strong quarter just due to the subscriber growth alone. They guided for around four-and-a-half million subscriber additions for the quarter, chalked up around 7.7 million. Great to report from that perspective, revenue, $7.8 billion. That was up 10 percent from a year ago, excluding currency effects. Operating profit is down slightly, but better than the target they set. An average revenue per member was up five percent on a currency-neutral basis as well. Really good news on the cash flow front for the year, generated $1.6 billion in free cash flow versus a modest lost a year ago. They are now guiding for three billion dollars in free cash flow for this year, and ultimately, project being free-cash-flow positive from here on out. It does feel like, maybe, that's why Reed Hastings feels like this is a great place to pass the torch along. He's got this business where he wants it, where it feels like it can really start to grow, and produce meaningful revenue and cash flows now. I'm still not bought in on the co-CEO model, it feels like every time we talk about this, a year later, we revisit why it didn't work. It's not to say it can't work in this case, but I don't know. I just like the chain of command a little bit more. CEO, COO, you got the decision-makers, they know their roles. It is a business in transition. I mean, you've got the ad-supported model rolling off now. It's off too a slow, but what they consider a satisfactory start, and they will continue to start cracking down on the password sharing here, which could crimp results in the near term, but I think, ultimately, it's the right long-term goal.
Chris Hill: Do you think part of the timing here is they've just launched the ad tier, and if you dose them with truth serum, Reed Hastings didn't want to do the ad tier, did he?
Jason Moser: I don't believe he did. I think he made the right call, ultimately, in doing it, because that opportunity is so large. I mean, a quote this market opportunity in a call with this estimated $300 billion pay TV and streaming industry, along with the $180 billion branded TV advertising spend. That's not to say Netflix is going to capture all of that by any stretch of the imagination, but it is to say that's a big market opportunity that business can pursue. They feel like he can ultimately contribute 10 percent or better to the business. Now, that's three billion dollars plus by today's numbers, and this is a company that will continue growing. But back to your point, no, I don't think Hastings really wanted to do it. I feel like he probably felt like they had to do it either way. It sounds [laughs] like it's going to be someone else's problem going forward.
Chris Hill: Signs of trouble in the housing market. In the last three months of 2022, KB Homes, which is one of the largest homebuilders in America, experienced a cancellation rate of 68 percent. Meaning, home-buyers canceled 68 percent of the homes that went under contract. For context, just one year prior, the cancellation rate was only 13 percent. Matt, there are a couple of things I want to get to here, but first and foremost, how bad does this look for the housing industry?
Matt Argersinger: Yeah, that's a dire statistic from KB Homes, and I don't think they're going to be the only one. They just happen to be the one that reports earliest. Yeah. You said it, normally their cancellation rate is a lot lower for the industry. It's usually in the teens. But the reality is, a lot of these buyers are having trouble getting financing or they're locked into a good rate, but are worried they overpaid by 10-15 percent for their home. I think, that's a real worry, and that's probably the case for most markets across the country. I just would say that, housing is a major contributor to the economy. You look at construction, materials, home improvement, financial services for the mortgage lenders, etc. It feeds into so many places, and so to see a cancellation that high, it's remarkable to me that KB Homes didn't sell off more, that the home-building industry hasn't really sold off that much. But a lot of it was, they had a difficult 2022 already. Some of this was priced in.
Chris Hill: Earlier you were talking about the ripple effects of the layoffs at the major tech company, and you're absolutely right about that. It's not just for those individual people. There are ripple effects when the companies are that large. Let's apply that thinking to this story. Because this cancellation rate, the last time we saw at this high it was 2008, 2009, and that was a housing crisis that threatened the entire US economy. Based on what you've seen so far, does this, at least, look contained to the housing industry, even allowing for the ripple effects for businesses tied to the housing industry?
Matt Argersinger: It's a good question. I don't think this spills over into a larger issue for the economy the way it did back in the last housing bubble and the financial crisis. I think, the scars from that global financial crisis runs so deep. As we discussed before the show, you didn't have the same speculation in its latest housing run-up that you had back then. You don't have the bank's lending out billions of dollars to unqualified buyers, homeowners who bought, even in the last few years, they still have a ton of equity in their homes. Even if prices drop, 10-15 percent nationwide, a lot of those homeowners are still protected. But yeah, at the margins, I think, this hurts consumer spending. Absolutely, especially, when you marry it with some of the issues we've talked about that you just mentioned. Like those massive job cuts at Microsoft and Alphabet, and the other is Amazon, Salesforce, Twitter, etc. Or we could get into the other issues, the surge in car loans, the surge in credit card debt, which is at record levels, I believe so. I think it certainly could factor into lower consumer spending. To a certain extent, I think, we're going to start seeing it with fourth-quarter earnings.
Chris Hill: After the break, we're going to get a check on how the holiday retail season went, and we're going to head to Switzerland for a headline out of Davos. Don't touch that dial. You're listening to Motley Fool Money. Welcome back to Motley Fool Money. Chris Hill here with Jason Moser and Matthew Argersinger. Quick shout out to our flagship investing service, Stock Advisor. When you joined Stock Advisor, you get two new stock picks every month. Plus you get access to exclusive reports on fast-growing industries and exclusive access to our brand new Stock Advisor round table podcast on Spotify. The service is open to new members, is just $99 a year. If you want to learn more, just go to fool.com/intro. That's fool.com/intro. Late this week, Nordstrom said that week sales and lots of discounting hurt their holiday sales and not surprisingly, Nordstrom cut their earnings guidance for the fiscal year which ends later this month, Jason.
Jason Moser: Well, the pre-announce is usually not good news and in this case, that streak continues. I think the company summed it up nicely in the release where they said, I, ''the holiday season was highly promotional and sales were softer than pre-pandemic levels." To quantify that net sales down 3.5 percent for the nine-week holiday period that ended the year versus the same nine weeks from a year ago. It seems like the wealthier, better-off shopper is still spending, the lower-income spenders are not. That's certainly playing out on Nordstrom. They took additional markdowns on inventory and they feel like they've got inventory in a good place now. But you look at this business, you go back to 2018 at this time during the year, the share price was closing in on $60. When you look at the numbers, revenue for the full-year clocked in around $15 billion. They saw net income $437 million. You look at this today. Share price now around $17. I think you're looking at revenue. Same 15 billion hasn't really moved. Big difference in the bottom line, the bottom-line is shrinking, they're trailing 12 months, $326 million now, but it gets better. Chris. If you look at the balance sheet for this company and this is what's really concerning. I think investors really need to take note of this. You go back to 2018, their balance sheet, they had $1.2 billion in cash and equivalents. You look at that number today is 293 million. That's what we call that cash burn, that it's worth watching because it plays out, it's an indicator, it tells you what the business is doing and the state that the business is in. Right now, this is a business that's really hunkering down, I think for some tougher times ahead.
Chris Hill: Not that Nordstrom is necessarily a bellwether for the retail industry, but we also got some additional data. Last fall, the National Retail Federation predicted that holiday retail sales would grow 6-8 percent and their track record is really strong. Earlier this week we got data. Overall sales grew 5.3 percent. I'm a little worried that the National Retail Federation missed by the margin that they did.
Jason Moser: Well, they did miss, but let's give them a little bit of credit. Let's give them partial credit because they did nail the year. They said sales for the year would fall between six and eight percent and sales for the year grew seven percent. They did at least bring some of the noise, so to speak, right Chris. But yeah, I think when you look at all of the retail categories, mean over a year ago, there were gains and all but two of the nine categories, furniture and home furnishings were down 1.1 percent. Interestingly, electronics and appliances were down 5.7 percent. But there was an interesting quote in that release that I just thought, well, I'm pushing back on this when they said the last two years of retail sales have been unprecedented, no one ever thought it was sustainable. I don't know about you. It seems like a lot of business is higher because they thought it was sustainable and now they're realizing it's unsustainable and they're letting all these people go. I think a lot of businesses did think it was sustainable. It's just now we're realizing it wasn't and they're having to right size accordingly.
Chris Hill: Procter & Gamble's second-quarter results were in line with Wall Street's expectations. But every division of the consumer products giant reported lower sales volume in the quarter. Matt, it's not like P&G stock got hammered this week, but it does seem like the business has hit the ceiling in terms of raising prices.
Matt Argersinger: I think that's the case. I mean, with any business, even a consumer stable business like P&G, at some point, price increases are going to hurt demand. It wasn't a terrible quarter necessarily. I mean, if you looked at headline sales were down one percent. But if you take out foreign exchange and adjust for some acquisitions and divestitures, the sales were up five percent on an organic basis. But the point is, all of that came from price increases. As you mentioned, sales volume was down in all five of the company's main segments, overall volumes were down six percent. It's just fortunate that prices were up 10 percent so you get the overall sales increase. But I think what I'm worried about as now going forward, can they have more sales price increases, probably not. You can look at their earnings per share. It was down four percent year-over-year. As you know, even higher sales weren't able to offset higher operating expenses and that I think those headwinds only gets stronger as we go through 2023. But should you worry if you're P&G shareholder? For one, I expect the company's going to raise its dividend again next quarter. That'll mark the 67th consecutive annual dividend increase. They've been paying a dividend for 132 years. Believe it or not, the stock has outperformed the market over the last five years. If you're in a P&G shareholder, I wouldn't worry. It's not necessarily why you own the stock, but you do at some point have to say, have to expect revenue to slow down here. Price increases are just not going to be able to flow-through as they were earlier in 2022.
Chris Hill: The World Economic Forum in Davos, Switzerland always attract some of the biggest CEOs in the world. But two from the same industry shared different predictions of what the Federal Reserve will do this year. JP Morgan Chase CEO Jamie Dimon said he believes interest rates are going higher than five percent. While Morgan Stanley CEO James Gorman said that interest rates have clearly peaked. Jason, who do you think is going to be proven correct?
Jason Moser: Well, we could get to that just one second, but I just want to say, can you imagine how triggered crypto investors had to be when Dimon said what he said about crypto in that interview. In calling it a pet rock, in saying why you guys waste any breadth on it is totally beyond me. I mean, he couldn't have had harsher awards. Then he went further to split crypto in blockchain technology. I just thought that was an interesting conversation for sure. In regard to interest rates, I think I'll tend to side with Dimon on this one simply because I think the Fed, I think Jay Powell, I think they've been pretty consistent with what they've been saying they want to do and that they would rather overdo it than not do enough. They've already botched the whole transitory call. I can't imagine that he or they want to risk something else coming back to bite them something as significant as this. It's really guided every policy decision. It just feels like at least if he overdoes it, then that will be consistent with what he's been saying all along. That better safe than sorry, mentality. But I guess we'll have to watch how the year plays out.
Chris Hill: Jason Moser, Matt Argersinger, guys. We'll see you a little bit later in the show. But up next, if the era of easy money is over, shouldn't you change the way you invest? The answer is coming up after the break. This is Motley Fool Money. Welcome back to Motley Fool Money. I'm Chris Hill. Jurrien Timmer is the Director of Global Macro at Fidelity Investments. Motley Fool senior analyst John Rotonti caught up with Timmer to learn what history can teach us about this market cycle and sectors where there may be some opportunity for investors.
John Rotonti: Someone else that the markets follow very closely, Howard Marks, thinks he has identified only the third, what he calls sea change in his 53-year investing career. In his recent memo, he says that the investment strategies that work best over the prior 13 years "may not be the one that outperforms in the years ahead." Similarly, KKR, the large global alternative asset manager, just put out their investment outlook for 2023 where they say, "We have entered a regime change that requires a different approach to overall global macro and asset allocation." What do you think about this? Are we in a sea change or a regime change? If so, does that require a change of strategy from the profitless high multiple tech stocks that benefited over the last several years from a zero interest rate policy?
Jurrien Timmer: No, it's a great question and it's a very important one, especially for the structural outlook. I think if I can summarize the KKR and Howard Marks, I think maybe what they're saying is that the great moderation is over. You look past going to history and I look at a lot of history which you can tell from my charts, until the late 90s when we went into this disinflationary era called the Great Moderation, where you had lower inflation, lower interest rates, less volatility of inflation and interest rates, therefore, higher multiples. You had financial engineering start to take shape. You had the Feds put, if you will, lower rates, but quantitative easing. As soon as financial conditions were tightened, the Fed would put its foot on the gas pedal because there was no inflation price to be paid for that at that time. That was this great secular bull market where PEs were high, volatilities were low, and returns were outsized, and interest rates were well-behaved, and the Fed would always bill out the market. We can't know in real-time whether the Great Moderation is over, but certainly, it looks over, at least at this point. You look at inflation, which is now coming down, but it's come down from 9-6.5 or so, and the question is, will it go down all the way to two, or will it start getting really stubborn at three or four? We don't know the answer to that yet, of course.
But the period before the Great Moderation was pretty volatile. You had the classic inventory cycle where the economy starts to overheat, becomes inflationary, the Fed starts to tighten, the yield curve inverts, the Fed overstays its welcome, it breaks something, you got a recession, and then the whole cycle starts over. That was the four-year cycle. You look at old charts of the Dow Jones and you can see that four-year cycle very clearly. The market today feels like the old market before the Great Moderation. It's more volatile. Maybe the cycles are shorter because you don't have these elongated periods where inflation just doesn't do anything, and part of that has to do with globalization, the great labor arbitrage may be coming to an end either for geopolitical reasons or just because it's been played out. The labor arbitrage has been played out. It's possible that we go back to the markets of yesteryear in that sense. You mentioned the big growers, the FAANGs, the large growth names, and I've been following that whole phenomenon, not specifically for the FAANGs, but what we call the NIFTY 50 stocks. We have a custom series here that we create in-house that goes back all the way to the 1960s, where you can clearly see the NIFTY 50 period coming up, so the top 50 stocks in the S&P relative to the bottom 450. The original NIFTY 50 of course, was in the early 70s, which happened when, and this goes way back, but in '68, you had a big speculative bubble. People were speculating in the space stock. Any company with the word tronics in it was just bid up to 50 times earnings. Those were the glamour stocks as they were called, and then the market fell.
We had a recession in 1970. It wiped out the retail speculators. Very similar to the meme stock stuff of today and the dot-com stuff of 1999. Then when the market recovered, the market was in the hands of institutional investors and they would only buy the companies that they knew they would never have to worry about in terms of producing earnings. They were the one-and-done companies like Colgate and IBM and Xerox and companies like that and those were the original NIFTY 50. That became a bubble relative to the rest of the market, and then a long period where they underperformed because we had inflation in the 70s. That tends to favor value stocks and small-cap stocks, not the big growth stocks, which are of course sensitive to changes in interest rates which were soaring back then.
Then we had a similar episode in the late 90s, of course, the dot-com bubble. We all know how that ended. Then around 10 years ago, the current phenomenon started and it never reached bubble levels, like the PE of Apple never went to 100, but relative to the rest of the market, the performance looked very similar. We had an eight-year run of large-cap growth companies dominating everything else, small-cap value, and by extension, the US would dominate non-US because the US is very centric to those very large growth companies. Purely from a technical point of view, it looks like that trade is over, and if that trade is over, you juxtapose that against, again, a really long-term chart going back 100-plus years of large secular swings between value and growth, small and large, US and non-US, commodities and financial assets, and they all have the same 30-year rhythm and we're right at that point where, on a 10-year rate of change basis, value, and small, and commodities, and non-US should start to take the baton from the big grower. In that sense, I think a regime change seems to be underway indeed.
John Rotonti: That was the best financial history lesson in five minutes I think I've ever heard, honestly. Just to pull on that string a bit, if you think we are in possibly in this regime change, how do you think equity investors should be positioned going into 2023? What asset classes do you prefer? Is it the value, small-cap commodities that you just referenced?
Jurrien Timmer: Yes. I think the market will, almost by definition, based on what we just talked about, will broaden out. If you have five FAANG stocks and they're 25 percent of the market and those are outperforming, you don't really have to look very much further than that. You could just buy an index fund or just buy those stocks. But when you're on the flip side of that and think back to 2000, 2001, when the dot-com bubble burst, and I'm not suggesting the overall market is going to follow the same route because that was a 53 percent bear market, which is something I definitely not feel expecting this time. But you had a market that went down or sideways, and there was a lot of breath in the market. All those names, all the older styles, values, small commodities, non-US, all did extremely well, and that, of course, also was when China entered the WTO. You had the whole EM investing phenomenon really take off into 2000. We're obviously much further down the path on EM, but I do think 2023 and beyond will be a period where it'll become more of a stock picker's market and more of an active management type of market where you have to look beyond just that core group of really large companies. We're already seeing this, but non-US equities, for instance, are performing very well, and one of the reasons, of course, is that the dollar is down and the dollar plays a large role in currency translation. But the other one is that the global cycle has become more fragmented.
The US is now in a late cycle, possibly heading into a recession. We don't know, but you look at the yield curve, you look at where the Fed is going to take rates relative to your all-star, or the natural rate of interests. Every time it's done that in the past, we've had a recession. A recession call is something we can't ignore. Maybe it happens later this year, and maybe it's only shallow, who knows? But this is where the US cycle is, and on the other side, China is now finally reopening after three years of COVID, like we reopened a long time ago. China has been relatively locked down the whole time, and now they're reopening in a big way. I mean, I think the latest I heard was that by March, the entire economy is going to be completely freely operate it in terms of movements. Obviously, we have to worry about the human toll because a lot of people there haven't gotten COVID, and they're going to get it. They're also going to start traveling. We have to worry about where else it ends up going.
But that's a different dimension. But in terms of where the market cycle is, you have a period where China is now going to be creating that economic tailwind, even though the US is on the other side, and that creates opportunities to be invested in emerging markets in China, assuming China is investable, which is another, maybe a conversation for another day. But you see that fragmentation, and then you look at the level of interest rates. Eventually, the yield curve will start to steepen again. That tends to be good for banks. Energy stocks are still very, very cheap. There's a lot of things that look interesting, and actually, even bonds look pretty interesting because they actually finally offer a real yield again. We can talk about the correlation between the 60 and the 40 going forward over the very long term, because that correlation tends to only be negative during periods of low inflation, and we don't know where the inflation question is going to end up settling. But I think in 2023, bonds will actually offer a good insurance policy if we do end up having that other shoe-dropping, which again, we don't know if it will, but at least it provides viable insurance now that the valuation across all these asset classes has risen.
Chris Hill: Coming up after the break. Jason Moser and Matt Argersinger are coming back. We're going to dip into the Fool mailbag and they've got a couple of stocks on their radar. Stay right here. You're listening to Motley Fool Money.
As always, people on the program may have interest in the stocks they talk about and The Motley Fool may have formal recommendations for or against so don't buy or sell stocks based solely on what you hear. Welcome back to Motley Fool Money. Chris Hill here once again with Matt Argersinger and Jason Moser. Our email address is podcasts@fool.com. Got a question from Emilia in New Hampshire, who writes, you often talk about CEOs on the show. If you could shadow a CEO for a day, who would you pick, and what would you hope to learn? Matt, who you're going to follow for a day, if you could?
Matt Argersinger: I love that question. I think right now I'd go with Steve Schwarzman over at Blackstone. I love real estate. I love the alternative assets space and Blackstone has reached in so many places. I would just love to know what he's thinking about the end market, and certain investments. But I also just would love to be in a room where analysts at Blackstone pitching him ideas which I think happens on a weekly basis. I think that'd be super fascinating.
Chris Hill: Jason, what about you?
Jason Moser: Yeah. I think I'd go with Josh Silverman at Etsy. I think he'd be a fun one because he's helped build this tremendous network that ultimately has to serve so many different stakeholders. They took on the Amazon challenge with positive results. But ultimately, back to the stakeholder's thing, we'd get the customers who buy from Etsy, but you also have the merchants that sell on the platform that the company has to serve. They have to build out this tremendous tech infrastructure. They've got a phenomenal mobile presence. What's the philosophy on balancing the two-site design? How far forward-thinking are they? How do they act on that? Just seems a very interesting business that's very customer-centric and a lot of moving parts there to understand better their decision-making.
Chris Hill: I would follow Howard Schultz at Starbucks.
Jason Moser: You just want the free coffee.
Chris Hill: I want to go to the Roastery and I think he'd be a good tour guide. But also as a shareholder, I would feel compelled to ask him like this is the last time. Like this is the last time? Just confirm for me that when you step away in April, this is really the last time. Question from Doug in San Francisco, "For as bad and investment, as it's been over the past year, crypto still seems to get a lot of attention from the financial media. What is the topic or trend that you think we should be paying attention to, instead? Matt, what do you think?
Matt Argersinger: Doug, anything but crypto? They're just so nobody productive businesses, productive assets, so why spend so much time on something that really just, I think has no intrinsic value to it. For one, I'd focus on companies that are paying dividends and growing dividends. That's real cash and I mean, real cash in your pocket.
Chris Hill: Jason, what about you?
Jason Moser: Yeah, I think firstly, crypto gets a lot of attention for the financial media because they pay for it. I mean, you see all of the advertisements every day. I mean, they're paying for those advertisements while they've got to talk about it on the show. That's part of it there. For me, one of the services I run here is focused on 5G and connectivity. Obviously, I like that, but I would actually even take it one step further to go beyond just 5G. Talk about 6G, talk about the inevitable 7G, the capabilities these networks will open up. It's just such a broad universe of opportunity, and connectivity enables so much that impacts so many around the world. It just seems like an endless conversation.
Chris Hill: Keep the emails coming. Podcasts@fool.com is our email address, that's podcasts@fool.com. Really appreciate it, great questions. Let's get to the stocks on our radar. Our man behind the glass, Rick Engdahl, is going to hit you with a question. Matt Argersinger, you're up first. What are you looking at this week?
Matt Argersinger: Chris, I'm going to go with Regions Financial, the ticker is RF. It's just a really well-run regional bank locations, mostly in the South and Midwest. It was in fact the best performing S&P 500 bank in 2022. Q4 results just came out this Friday morning. You had net interest income up 11 percent, 3.99 percent, net interest margin, that's up from 2.8 percent last year. It's also a dividend knight if you know what that means. Not only is it raised its dividend by more than 10 percent per year over the last 10 years, but it's also beaten the S&P 500 during that span, so just a lot to like about this bank.
Chris Hill: I like the fact that you're bringing in a regional bank because we give a decent amount of oxygen to the big banks, it's always worth remembering there are regional banks out there as well. Rick, question about Regions Financial?
Rick Engdahl: By those regional banks, how many banks are there out there? It seems like there's big banks and then there's all these regionals all over the place. I mean, how many banks do we need?
Matt Argersinger: Small local banks. Yeah, there's hundreds Rick, and well, thousands if you count branches, but there's hundreds of bank companies, and I think that is a good point. There's definitely room for consolidation. I think Regions Financial in fact, could be a bio candidate itself.
Chris Hill: Jason Moser, what are you looking at this week?
Jason Moser: Chris, I always liked Mr. Furley, but this week I'm going with Roper Technologies. Ticker is ROP. Roper Technologies is actually a collection of many businesses that focus on everything from software to medical and water products. They are smaller companies that really specialize in niche markets, and so that makes for growing switching costs over time ultimately gives them a little pricing power and gross retention rates of greater than 95 percent in many cases. You look at the business itself, I mean, from 2012 through 2021, free cash flow grew at an annualized rate of 13.4 percent. Ten-year total returns on this business right now, 300 percent, almost doubling up on the market over that period of time. Earnings come out on Friday, January 27th before the market opens. I will be interested to see what they have to say.
Chris Hill: Rick's question about Roper Technologies.
Rick Engdahl: You know, I do a lot of research before asking these questions and I went over to the Roper website and for the life of me, I could not find anything about what this business does. What the heck what this company for?
Jason Moser: Rick, I just told you what they do.
Rick Engdahl: I'm sorry, I nodded it off.
Jason Moser: Okay. Well, that sounds like a Rick problem not a Jason problem.
Chris Hill: Before I go back to Rick, I have to say it always blows my mind. Matt, you mentioned P&G earlier and how long that company has been around. Roper Technologies started in 1890. Maybe I shouldn't, but I am impressed by businesses that have that longevity. Rick, what do you want to add to your watchlist?
Rick Engdahl: I think I have to go with at least something where I can envision the buildings. I'll go with the little bank.
Chris Hill: I don't know if they're going to take offense to being called a little bank. I don't know. Matt, what do you think?
Matt Argersinger: It's a big bank, the 26th largest bank in the country, but I agree, relative to JPMorgan. It's a small, tiny bank.
Chris Hill: Matt Argersinger, Jason Moser, guys thanks for being here.
Matt Argersinger.: Thank you.
Chris Hill: That's going to do it for this week's Motley Fool Money radio show. The show's mixed by Rick Engdahl. I'm Chris Hill. Thanks for listening and we'll see you next time.
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Chris Hill has positions in Alphabet, Amazon.com, Apple, Etsy, JPMorgan Chase, Microsoft, Roper Technologies, and Starbucks. Jason Moser has positions in Alphabet, Amazon.com, Apple, Etsy, and Starbucks. John Rotonti has positions in Alphabet, Apple, Blackstone, KKR, Microsoft, and Salesforce. Matthew Argersinger has positions in Alphabet, Amazon.com, Blackstone, Etsy, Netflix, Regions Financial, Roper Technologies, and Starbucks and has the following options: short January 2023 $80 puts on Amazon.com and short March 2023 $85 puts on Blackstone. Rick Engdahl has positions in Alphabet, Amazon.com, Apple, Etsy, Microsoft, Netflix, Salesforce, and Starbucks. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Blackstone, Etsy, JPMorgan Chase, KKR, Microsoft, Netflix, Salesforce, and Starbucks. The Motley Fool recommends KB Home and Roper Technologies and recommends the following options: long March 2023 $120 calls on Apple, short January 2023 $92.50 puts on Starbucks, and short March 2023 $130 calls on 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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Motley Fool senior analyst John Rotonti caught up with Timmer to learn what history can teach us about this market cycle and sectors where there may be some opportunity for investors. Then around 10 years ago, the current phenomenon started and it never reached bubble levels, like the PE of Apple never went to 100, but relative to the rest of the market, the performance looked very similar. They are smaller companies that really specialize in niche markets, and so that makes for growing switching costs over time ultimately gives them a little pricing power and gross retention rates of greater than 95 percent in many cases.
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John Rotonti, head of investor training and development at The Motley Fool, talks with Jurrien Timmer, director of global macro at Fidelity Investments, about what history can teach about the current market cycle and sectors that may hold opportunities for investors. Matthew Argersinger has positions in Alphabet, Amazon.com, Blackstone, Etsy, Netflix, Regions Financial, Roper Technologies, and Starbucks and has the following options: short January 2023 $80 puts on Amazon.com and short March 2023 $85 puts on Blackstone. The Motley Fool recommends KB Home and Roper Technologies and recommends the following options: long March 2023 $120 calls on Apple, short January 2023 $92.50 puts on Starbucks, and short March 2023 $130 calls on Apple.
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I'm Chris Hill, joining me, Motley Fool senior analysts Jason Moser and Matt Argersinger. As always, people on the program may have interest in the stocks they talk about and The Motley Fool may have formal recommendations for or against so don't buy or sell stocks based solely on what you hear. You had net interest income up 11 percent, 3.99 percent, net interest margin, that's up from 2.8 percent last year.
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In this podcast, Motley Fool senior analysts Matt Argersinger and Jason Moser discuss: The ripple effect of Big Tech layoffs. But you look at this business, you go back to 2018 at this time during the year, the share price was closing in on $60. The market today feels like the old market before the Great Moderation.
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7 Growth Stocks That Will Make You Rich in 10 Years
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https://www.nasdaq.com/articles/7-growth-stocks-that-will-make-you-rich-in-10-years
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The last three years have gone from being a market where valuation of growth stocks didn’t matter to a market where investors are hesitant to buy growth stocks with exceptional valuations. So, I want to clearly explain my methodology for finding the stocks for this list. I wanted to find one stock in a sector that is expected to be one of the most significant for investors in the next decade. The thinking is that when market conditions change, these stocks will stand to benefit the most over the next 10 years.
Not surprisingly, I looked at cybersecurity, artificial intelligence, and healthcare. But I also looked at some other intriguing areas like nanotechnology and the demand for electric vehicles. In the process, I found seven stocks that all look good choices to help make patient investors rich in the next 10 years.
AAPL Apple $141.11
PANW Palo Alto $149.34
AMAT Applied Materials $114.16
ISRG Intuitive Surgical $255.98
WELL Welltower $74.28
CHPT ChargePoint $11.87
MARA Marathon Digital $9.00
Apple (AAPL)
Source: Eric Broder Van Dyke / Shutterstock.com
Apple (NASDAQ:AAPL) is the first stock on this list of growth stocks that will make you rich in 10 years. And to be fair, it was probably on similar lists in 2012. The stock is up 625% in the last decade. That’s a credit to a company that keeps evolving and innovating.
As a technology company, Apple operates in several high-demand sectors of the economy including the consumer discretionary space. The company is also making moves into the AI/virtual reality space. Plans for its Apple Glasses are delayed, but a VR/AR headset launch is the first step in this vital stage of Apple’s long-term strategy. And investors are still likely to be buying the iPhones and Apple watches that will keep revenue and earnings strong. In fact, one of the catalysts for earnings growth is likely to come as the company begins to extend its supply chain away from China and into areas like India and the United States.
Palo Alto Networks (PANW)
Source: Shutterstock
The next sector to look for growth stocks that will make you rich in 10 years is cybersecurity. There are many names to choose from, but I’ll choose Palo Alto Networks (NASDAQ:PANW). As the unquestioned leader in the sector, Palo Alto is well-positioned to take advantage of the continued demand for cybersecurity.
Even before the Covid-19 pandemic, demand for cybersecurity solutions was on the rise. And the reality of the ongoing threat means that spending in this sector will remain strong in the next decade. In Dec., I cited a forecast from Cybersecurity Ventures that predicted “cumulative global spending on cybersecurity products and services will climb to $1.75 trillion between 2021 and 2025.”
Palo Alto was recently named the top global cybersecurity vendor. This distinction supports the company’s premium valuation. And analysts seem to agree. The consensus rating is a Moderate Buy, and the stock has a price target of $216.11 which is a 46% gain from the stock’s current level. Analysts also expect the company to grow earnings at a pace of over 19% in the next five years.
Applied Materials (AMAT)
Source: 3rdtimeluckystudio / Shutterstock
Applied Materials (NASDAQ:AMAT) makes this list of growth stocks that will make you rich in 10 years because of its focus on nanotechnology. This is a sector that is concerned with building materials on the scale of atoms and molecules.
By itself, that’s intriguing. Now you add into it the fact that nanotechnology is expected to play a key role in the growth of several key sectors such as pharmaceuticals, aerospace, solar panels, and even food. Grand View Research forecasts the global nanomaterials market will more than double from $21 billion in 2021 to $23 billion in 2027.
That growth may not be forecast by analysts who are projecting single-digit revenue and earnings per share (EPS) growth in the next five years. Applied Materials is a fundamentally strong company that has one of the highest profit margins in the sector and is correctly valued at the moment.
Intuitive Surgical (ISRG)
Source: Khakimullin Aleksandr / Shutterstock
Intuitive Surgical (NASDAQ:ISRG) makes this list because demand for robotic surgery is likely to increase in the next decade. That will be good news for the company’s daVinci Surgical System which is already showing strong growth. In the company’s most recent quarter it saw 12.9% year-over-year (YOY) growth in the daVinci system’s installed base.
The company’s revenue has grown sharply since being severely curtailed due to the Covid-19 pandemic. But the company is dealing with the effects of inflation, which has negatively influenced earnings and the company’s stock price, which is down over 4% in the last 12 months. That being said, analysts are expecting to see double-digit growth in earnings in the next five years. Growth like that is one reason ISRG stock easily makes the list of growth stocks that can make you rich in the next decade.
Welltower (WELL)
Source: Shutterstock
Real estate investment trusts (REITs) are not the first group of stocks that come to mind when you think of growth stocks to buy for the long haul. But the next 10 years are going to be critical in the expansion of senior living facilities that can also help the transition into long-term care.
With a market cap of over $35 billion, Welltower (NYSE:WELL) is among the largest healthcare REITs. EPS is expected to grow at an average pace of over 38% in the next five years. That makes the 10% growth in share price currently expected by analysts feel on the light side. Even if it doesn’t hit those lofty earnings projections, investors benefit from the business model of a REIT which requires it to return a substantial amount of the company’s profits to shareholders in the form of a dividend.
Currently that means an annual dividend of $2.44 per share with a dividend yield of 3.35%.
ChargePoint (CHPT)
Source: Freedom365day / Shutterstock.com
The only thing you need to know about the potential for the electric vehicle (EV) market is how much money governments are investing in this transition. But one key to mass adoption of EVs will be the elimination of range anxiety. That’s where ChargePoint (NYSE:CHPT) comes in.
ChargePoint is the world’s leading provider of electric mobility charging solutions (e.g., charging stations) and it also is the market leader in North America. Between 2020 and 2026, sales of passenger EVs are expected to have a compound annual growth rate of 51%. If you believe that ChargePoint’s growth can be proportional to that, CHPT stock looks compelling.
And the company recently entered into an agreement with Mercedes-Benz Group (OTCMKTS:MBGYY) and MNB Energy to significantly increase the number of EV fast chargers in the U.S. and Canada.
Investors have been souring on CHPT stock. And you should also be mindful of the fact that ChargePoint is not profitable and is not expected to be for several years despite dramatically increasing revenue. Still, if you’re trying to find growth stocks that will make you rich in 10 years, it’s okay to take some risks.
Marathon Digital Holdings (MARA)
Source: Shutterstock
Speaking of risks, let’s talk about the Bitcoin (BTC-USD) miner Marathon Digital Holdings (NASDAQ;MARA). Bitcoin had a dreadful year in 2022. In fact, the entire cryptocurrency industry has lost over $2 trillion in value. There are those that would argue that the sector has no intrinsic value to lose. That’s an argument for another article. But the argument for Marathon Digital Holdings is about the continuing expansion of blockchain technology which will prop up demand for bitcoin.
MARA is one of the leading bitcoin miners, increasing its output by 29% in the crypto winter of 2022. The hash rate (which is a metric used to measure the market value of mining or computer power will only increase as the number of bitcoin to be mined dwindles. And with most analysts saying that it will take until approximately 2040 for the last of the current two million remaining bitcoin to be mined, MARA stock looks like a winner for the next decade.
On the date of publication, Chris Markoch had a LONG position in AAPL. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Chris Markoch is a freelance financial copywriter who has been covering the market for over five years. He has been writing for InvestorPlace since 2019.
The post 7 Growth Stocks That Will Make You Rich in 10 Years 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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AAPL Apple $141.11 PANW Palo Alto $149.34 AMAT Applied Materials $114.16 ISRG Intuitive Surgical $255.98 WELL Welltower $74.28 CHPT ChargePoint $11.87 MARA Marathon Digital $9.00 Apple (AAPL) Source: Eric Broder Van Dyke / Shutterstock.com Apple (NASDAQ:AAPL) is the first stock on this list of growth stocks that will make you rich in 10 years. On the date of publication, Chris Markoch had a LONG position in AAPL. Palo Alto Networks (PANW) Source: Shutterstock The next sector to look for growth stocks that will make you rich in 10 years is cybersecurity.
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AAPL Apple $141.11 PANW Palo Alto $149.34 AMAT Applied Materials $114.16 ISRG Intuitive Surgical $255.98 WELL Welltower $74.28 CHPT ChargePoint $11.87 MARA Marathon Digital $9.00 Apple (AAPL) Source: Eric Broder Van Dyke / Shutterstock.com Apple (NASDAQ:AAPL) is the first stock on this list of growth stocks that will make you rich in 10 years. On the date of publication, Chris Markoch had a LONG position in AAPL. Applied Materials (AMAT) Source: 3rdtimeluckystudio / Shutterstock Applied Materials (NASDAQ:AMAT) makes this list of growth stocks that will make you rich in 10 years because of its focus on nanotechnology.
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AAPL Apple $141.11 PANW Palo Alto $149.34 AMAT Applied Materials $114.16 ISRG Intuitive Surgical $255.98 WELL Welltower $74.28 CHPT ChargePoint $11.87 MARA Marathon Digital $9.00 Apple (AAPL) Source: Eric Broder Van Dyke / Shutterstock.com Apple (NASDAQ:AAPL) is the first stock on this list of growth stocks that will make you rich in 10 years. On the date of publication, Chris Markoch had a LONG position in AAPL. InvestorPlace - Stock Market News, Stock Advice & Trading Tips The last three years have gone from being a market where valuation of growth stocks didn’t matter to a market where investors are hesitant to buy growth stocks with exceptional valuations.
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AAPL Apple $141.11 PANW Palo Alto $149.34 AMAT Applied Materials $114.16 ISRG Intuitive Surgical $255.98 WELL Welltower $74.28 CHPT ChargePoint $11.87 MARA Marathon Digital $9.00 Apple (AAPL) Source: Eric Broder Van Dyke / Shutterstock.com Apple (NASDAQ:AAPL) is the first stock on this list of growth stocks that will make you rich in 10 years. On the date of publication, Chris Markoch had a LONG position in AAPL. InvestorPlace - Stock Market News, Stock Advice & Trading Tips The last three years have gone from being a market where valuation of growth stocks didn’t matter to a market where investors are hesitant to buy growth stocks with exceptional valuations.
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17474.0
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2023-01-23 00:00:00 UTC
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Amazon Earnings Set to Disappoint: Time to Buy AMZN Stock at a Steep Discount?
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AAPL
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https://www.nasdaq.com/articles/amazon-earnings-set-to-disappoint%3A-time-to-buy-amzn-stock-at-a-steep-discount
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nan
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nan
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Amazon AMZN, the global e-commerce and web services company, reports Q4 FY22 earnings on Thursday, February 2 after the market closes. February 2 is a big day for tech earnings with both Apple AAPL and Alphabet GOOG set to report earnings after the close.
This last year has been a challenging one for AMZN stock. Over the trailing twelve months Amazon stock is down -33%, underperforming the broad market, which is down -10% over the same period.
With a slowdown in online spending, and inflation raising its transportation and fulfillment costs, Amazon is dealing with some painful headwinds in the short-term.
Yet, long-term prospects are still promising driven by the continued adoption of Amazon Prime internationally, and the rapid expansion of Amazon Web Services.
Business Model
Amazon’s primary business is e-commerce, which is powered by its sprawling fulfillment operations in North America, and rapidly expanding international presence. The e-commerce business is further bolstered by its Amazon Prime membership, offering subscribers free shipping and online content, among other perks. Prime members have shown themselves to be very loyal customers, and on average spend twice the amount of non-members.
Amazon’s ecommerce business is further extended by its physical retail footprint. With the acquisition of Whole Foods, Amazon has cemented its position in groceries, and as a physical retailer further enhanced by its broad infrastructure.
The ecommerce business also supports online, third-party vendors. Through its Amazon FBA (fulfilled by Amazon) program, online sellers can utilize Amazon’s robust fulfillment resources.
Amazon’s ecommerce business runs with very low margins. Similarly, to Costco COST, another leading US and international retailer, most of the profits come from the annual subscription fees. This business model allows both AMZN and COST to provide products at extremely competitive prices.
Amazon’s other main business segment is Amazon Web Services. AWS is an online infrastructure business, providing web-based businesses cloud-computing services. In perfect contrast to the ecommerce business, AWS runs with very high margins, providing a strong source of cash flow to balance the business.
AWS was an early leader of the cloud infrastructure business, which explains its dominance in the highly competitive industry. According to Statista, cloud services spending globally was $217 billion over the last year. Amazon is currently the dominant business with 34% market share of the industry.
Image Source: Statista
In addition to their primary business segments, Amazon also has their devices business. This includes Fire TV, Kindle, Ring and Alexa. FY21 revenues were $470 billion split between three segments: North America segment generated 60%, International 27%, and AWS 13% of revenue.
Earnings Estimates
Amazon currently sports a Zacks Rank #3 (Hold), with a disconcerting Earnings ESP of -16%.
Zacks estimates call for Amazons Q4 sales to increase 5.9% to $145 billion, and FY22 sales to increase 8.6% to $510 billion. Because of its slim margins, and reinvesting, Amazon’s earnings numbers are usually a bit wonky, although not entirely reassuring.
Q4 earnings estimates are expected to be down -88%, to $0.17 per share, with FY22 earnings projected to fall -104% to -$0.13 per share. That wonkiness is illustrated by FY23 earnings which are projected to grow 1,300%, while sales are expected to increase 9.3% in the same period.
Consensus estimates continue to trend downward on all timeframes, hence the Zacks Rank #3 (Hold). Q4 estimates have more than halved over the last 90 days.
Image Source: Zacks Investment Research
Notably, along with the other mega cap tech companies, AMZN recently laid off 18,000 employees. After the Covid boom Amazon pulled forward a huge amount of spending on infrastructure and new hires. Between 2019 and 2022 Amazon’s employee count went from 798,000 to 1,608,000, which puts the recent layoff into some important context.
Price Leads Earnings
An interesting topic floating around the Zacks Strategists group is the tendency of earnings to bottom after the stock prices bottom. It is worth considering that although AMZN earnings are being revised lower, it is possible that the stock has already bottomed out or is near a bottom.
The nature of markets is to act as a forward discounting mechanism.
Image Source: Zacks Investment Research
Stock Performance
After a couple of decades of outperformance, it is quite surprising to see Amazon underperform the market index over the last five years. Although it is no longer the start-up of the early 2000s, with astronomical growth projections, expectations for the e-commerce giant are probably lower than they should be.
The last 5 years AMZN compounded at a very average 7.5% annualized, which is a far cry from its 20 year average of 25% annualized.
Image Source: Zacks Investment Research
Valuation
Amazon is in an interesting position with regards to its valuation. After last year’s selloff, Amazon’s one year Forward P/E of 60x is now well below its ten-year median of 95x. But considering the peculiarities of Amazon’s earnings figures, I think it may be useful to divide Amazon’s two primary business segments.
Price to Sales may be a simpler context for AMZN’s ecommerce business, while P/E ratio is useful for AWS. Recently while looking at Costco, a business very similar to Amazon’s ecommerce business, I noticed COST’s market cap was about equal to its annual sales.
Based on the most recent projections, we can estimate e-commerce sales to be about $430 billion and we will give the ecommerce segment a P/S multiple of 1x. AWS sales are estimated at $80 billion with ~40% net profits. With the exceptional growth expectations, I will give AWS a conservative 15x multiple, bringing that business to $480 billion market cap.
Add those together and you get a total market cap of $910 billion, which is below the current market cap of $990 billion. This is a very simplistic measure of Amazons business valuation, but I find it a useful exercise. By playing around with multiples, and sales projection this final number can vary drastically.
Conclusion
Amazon is an exceptional business, with very strong long-term prospects. Particularly interesting, which I think may be overlooked, is Amazon Prime’s international potential. With ~200 million total prime subscribers, and only 50 million of those from international markets, I think the potential speaks for itself.
With a slowing economy, AMZN is dealing with near term headwinds, but this shouldn’t cause one to discount Amazon’s powerful business engine. Sentiment usually follows price, and with the stock price down significantly, it is no surprise that the Amazon naysayers have been very loud. While there may be more downside for the stock in the short-term, it is hard to argue against the business fundamentals.
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
Alphabet Inc. (GOOG) : Free Stock Analysis Report
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Costco Wholesale Corporation (COST) : 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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February 2 is a big day for tech earnings with both Apple AAPL and Alphabet GOOG set to report earnings after the close. Click to get this free report Alphabet Inc. (GOOG) : Free Stock Analysis Report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Costco Wholesale Corporation (COST) : Free Stock Analysis Report To read this article on Zacks.com click here. Amazon AMZN, the global e-commerce and web services company, reports Q4 FY22 earnings on Thursday, February 2 after the market closes.
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Click to get this free report Alphabet Inc. (GOOG) : Free Stock Analysis Report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Costco Wholesale Corporation (COST) : Free Stock Analysis Report To read this article on Zacks.com click here. February 2 is a big day for tech earnings with both Apple AAPL and Alphabet GOOG set to report earnings after the close. Amazon AMZN, the global e-commerce and web services company, reports Q4 FY22 earnings on Thursday, February 2 after the market closes.
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Click to get this free report Alphabet Inc. (GOOG) : Free Stock Analysis Report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Costco Wholesale Corporation (COST) : Free Stock Analysis Report To read this article on Zacks.com click here. February 2 is a big day for tech earnings with both Apple AAPL and Alphabet GOOG set to report earnings after the close. But considering the peculiarities of Amazon’s earnings figures, I think it may be useful to divide Amazon’s two primary business segments.
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February 2 is a big day for tech earnings with both Apple AAPL and Alphabet GOOG set to report earnings after the close. Click to get this free report Alphabet Inc. (GOOG) : Free Stock Analysis Report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Costco Wholesale Corporation (COST) : Free Stock Analysis Report To read this article on Zacks.com click here. Image Source: Zacks Investment Research Valuation Amazon is in an interesting position with regards to its valuation.
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17475.0
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2023-01-23 00:00:00 UTC
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MATANA Is Back: Which Stocks to Buy Now
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AAPL
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https://www.nasdaq.com/articles/matana-is-back%3A-which-stocks-to-buy-now
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nan
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nan
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“Bull markets are born on pessimism, grown on skepticism, mature on optimism, and die on euphoria.” -Sir John Templeton
The time has come to reevaluate the growth story as big tech stocks roar back to life to kick off the new year. The beaten down MATANA stocks – Microsoft MSFT, Apple AAPL, Tesla TSLA, Alphabet GOOGL, NVIDIA NVDA, and Amazon AMZN – are all up double-digit percentages off their respective lows.
The move follows a period of severe underperformance in 2022, as growth names took a backseat amid fears of an economic slowdown. Many investors are still unconvinced that technology stocks (along with the major indices) have already bottomed, adding fuel to the bullish case. Remember – bull markets climb a wall of worry.
Microsoft has been in the news recently due to its partnership with OpenAI, investing billions of dollars into the artificial intelligence lab behind the online chatbot ChatGPT. Arguably a move aimed to compete with Google-parent Alphabet, the investment aims to keep MSFT at the center of generative artificial intelligence – a set of technologies that are able to generate text, images, and other media in response to user questions.
A Zacks Rank #3 (Hold) stock, MSFT has lagged a bit versus its peers. The company is set to announce Q4 earnings results tomorrow after the bell. Analysts are expecting MSFT to deliver quarterly EPS of $2.29/share, a -7.66% decline versus the same quarter a year ago.
Tesla is also due to report fourth-quarter results tomorrow, where the earnings picture is a bit brighter. Earnings are projected to have risen 31.76% year-over-year to $1.12/share on revenues of $24.05 billion. The electric car maker was one of the last to bottom out in December but has since risen more than 25% off the lows. TSLA is currently a Zacks Rank #5 (Strong Sell) stock.
As one of the leading AI companies, NVIDIA has also been at the forefront of the ChatGPT conversation, as the company headlines the graphics chips that are designed for complex computing applications. NVDA, currently a Zacks Rank #4 (Sell) stock, has rallied more than 65% off its October low. With earnings estimates evolving for this chip leader, I believe this rating will change to reflect a more bullish outlook.
Alphabet has witnessed a streak of earnings misses lately, falling short of the mark in each of the past three quarters. A Zacks Rank #3 (Hold), GOOGL stock shed about 45% of its value before rallying nearly 20% off its November low. GOOGL is set to report Q4 earnings on February 2nd, where analysts are expecting a -23.53% profit decline to $1.17/share versus the same quarter in the prior year.
It’s a similar story for Amazon, having missed earnings estimates in each of the past three quarters. AMZN is a Zacks Rank #3 (Hold) and reports Q4 results in early February as well. AMZN is expected to post a year-over-year quarterly EPS decline of -87.77% to $0.17/share. The stock has rallied nearly 20% off the low.
Lastly, Apple has surged to kick off the new year after ending 2022 near a low in price. In fact, AAPL didn’t find a bottom for the move until early this year. Despite a weak period last year, AAPL was still able to surpass earnings estimates in each of the past four quarters. While the tech behemoth ultimately succumbed to the bear market, prospects are looking up as the stock has rallied about 10% to start the new year with a bang.
It’s important to remember that the market is forward-looking and is already taking into account earnings in future quarters. At major turning points, stocks are often able to rally past subpar earnings announcements because the downside has already been priced in. Even slightly better-than-expected results can trigger powerful upside momentum.
Investors will want to keep an eye on the MATANA stocks as well as the tech sector as signs are abundant that the growth story has returned.
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
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Tesla, Inc. (TSLA) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The beaten down MATANA stocks – Microsoft MSFT, Apple AAPL, Tesla TSLA, Alphabet GOOGL, NVIDIA NVDA, and Amazon AMZN – are all up double-digit percentages off their respective lows. In fact, AAPL didn’t find a bottom for the move until early this year. Despite a weak period last year, AAPL was still able to surpass earnings estimates in each of the past four quarters.
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The beaten down MATANA stocks – Microsoft MSFT, Apple AAPL, Tesla TSLA, Alphabet GOOGL, NVIDIA NVDA, and Amazon AMZN – are all up double-digit percentages off their respective lows. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. In fact, AAPL didn’t find a bottom for the move until early this year.
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The beaten down MATANA stocks – Microsoft MSFT, Apple AAPL, Tesla TSLA, Alphabet GOOGL, NVIDIA NVDA, and Amazon AMZN – are all up double-digit percentages off their respective lows. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. In fact, AAPL didn’t find a bottom for the move until early this year.
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Despite a weak period last year, AAPL was still able to surpass earnings estimates in each of the past four quarters. The beaten down MATANA stocks – Microsoft MSFT, Apple AAPL, Tesla TSLA, Alphabet GOOGL, NVIDIA NVDA, and Amazon AMZN – are all up double-digit percentages off their respective lows. In fact, AAPL didn’t find a bottom for the move until early this year.
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17476.0
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2023-01-23 00:00:00 UTC
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Apple in talks with Disney, others on VR content for new headset - Bloomberg News
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AAPL
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https://www.nasdaq.com/articles/apple-in-talks-with-disney-others-on-vr-content-for-new-headset-bloomberg-news
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nan
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nan
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Jan 23 (Reuters) - Apple Inc AAPL.O was in talks with about half a dozen media partners including Walt Disney Co DIS.N to develop virtual reality (VR) content for its mixed reality headset, Bloomberg News reported on Monday.
Developed with Sony Group Corp 6758.T, the headset will have two ultra-high-resolution displays to handle the VR aspects and a collection of external cameras to enable an augmented reality "pass-through mode", the report said.
It added that the tech giant was working to update its own Apple TV+ material to work with the headset.
Disney, Apple and Sony did not immediately respond to Reuters requests for comment.
Earlier this month, Bloomberg reported that Apple was planning to unveil its first mixed reality (MR) headset this year.
MR is one of three types of extended reality technologies often associated with the metaverse. An MR headset could allow the wearer to use a real world object to trigger a virtual world reaction.
The iPhone maker's MR headset is set to launch in this year's spring event and will cost around $3,000, according to the report.
That would be twice as much as Meta Platforms Inc's META.O Quest Pro virtual and MR headset, which waslaunched late last year for $1,500.
(Reporting by Tiyashi Datta in Bengaluru; Editing by Devika Syamnath)
((tiyashi.datta@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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Jan 23 (Reuters) - Apple Inc AAPL.O was in talks with about half a dozen media partners including Walt Disney Co DIS.N to develop virtual reality (VR) content for its mixed reality headset, Bloomberg News reported on Monday. Developed with Sony Group Corp 6758.T, the headset will have two ultra-high-resolution displays to handle the VR aspects and a collection of external cameras to enable an augmented reality "pass-through mode", the report said. Earlier this month, Bloomberg reported that Apple was planning to unveil its first mixed reality (MR) headset this year.
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Jan 23 (Reuters) - Apple Inc AAPL.O was in talks with about half a dozen media partners including Walt Disney Co DIS.N to develop virtual reality (VR) content for its mixed reality headset, Bloomberg News reported on Monday. Disney, Apple and Sony did not immediately respond to Reuters requests for comment. Earlier this month, Bloomberg reported that Apple was planning to unveil its first mixed reality (MR) headset this year.
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Jan 23 (Reuters) - Apple Inc AAPL.O was in talks with about half a dozen media partners including Walt Disney Co DIS.N to develop virtual reality (VR) content for its mixed reality headset, Bloomberg News reported on Monday. Developed with Sony Group Corp 6758.T, the headset will have two ultra-high-resolution displays to handle the VR aspects and a collection of external cameras to enable an augmented reality "pass-through mode", the report said. Earlier this month, Bloomberg reported that Apple was planning to unveil its first mixed reality (MR) headset this year.
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Jan 23 (Reuters) - Apple Inc AAPL.O was in talks with about half a dozen media partners including Walt Disney Co DIS.N to develop virtual reality (VR) content for its mixed reality headset, Bloomberg News reported on Monday. It added that the tech giant was working to update its own Apple TV+ material to work with the headset. MR is one of three types of extended reality technologies often associated with the metaverse.
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17477.0
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2023-01-23 00:00:00 UTC
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Notable Monday Option Activity: SBUX, AAPL, COST
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AAPL
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https://www.nasdaq.com/articles/notable-monday-option-activity%3A-sbux-aapl-cost
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nan
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nan
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Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Starbucks Corp. (Symbol: SBUX), where a total volume of 342,346 contracts has been traded thus far today, a contract volume which is representative of approximately 34.2 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 593.6% of SBUX's average daily trading volume over the past month, of 5.8 million shares. Particularly high volume was seen for the $115 strike call option expiring April 21, 2023, with 121,390 contracts trading so far today, representing approximately 12.1 million underlying shares of SBUX. Below is a chart showing SBUX's trailing twelve month trading history, with the $115 strike highlighted in orange:
Apple Inc (Symbol: AAPL) options are showing a volume of 1.1 million contracts thus far today. That number of contracts represents approximately 107.6 million underlying shares, working out to a sizeable 142.5% of AAPL's average daily trading volume over the past month, of 75.5 million shares. Especially high volume was seen for the $140 strike call option expiring January 27, 2023, with 50,174 contracts trading so far today, representing approximately 5.0 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $140 strike highlighted in orange:
And Costco Wholesale Corp (Symbol: COST) options are showing a volume of 24,766 contracts thus far today. That number of contracts represents approximately 2.5 million underlying shares, working out to a sizeable 128.8% of COST's average daily trading volume over the past month, of 1.9 million shares. Particularly high volume was seen for the $500 strike call option expiring January 27, 2023, with 1,517 contracts trading so far today, representing approximately 151,700 underlying shares of COST. Below is a chart showing COST's trailing twelve month trading history, with the $500 strike highlighted in orange:
For the various different available expirations for SBUX options, AAPL options, or COST options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
Also see:
ETFs Holding SYKE
ATCX YTD Return
Funds Holding IIM
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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Especially high volume was seen for the $140 strike call option expiring January 27, 2023, with 50,174 contracts trading so far today, representing approximately 5.0 million underlying shares of AAPL. Below is a chart showing SBUX's trailing twelve month trading history, with the $115 strike highlighted in orange: Apple Inc (Symbol: AAPL) options are showing a volume of 1.1 million contracts thus far today. That number of contracts represents approximately 107.6 million underlying shares, working out to a sizeable 142.5% of AAPL's average daily trading volume over the past month, of 75.5 million shares.
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Below is a chart showing SBUX's trailing twelve month trading history, with the $115 strike highlighted in orange: Apple Inc (Symbol: AAPL) options are showing a volume of 1.1 million contracts thus far today. That number of contracts represents approximately 107.6 million underlying shares, working out to a sizeable 142.5% of AAPL's average daily trading volume over the past month, of 75.5 million shares. Especially high volume was seen for the $140 strike call option expiring January 27, 2023, with 50,174 contracts trading so far today, representing approximately 5.0 million underlying shares of AAPL.
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That number of contracts represents approximately 107.6 million underlying shares, working out to a sizeable 142.5% of AAPL's average daily trading volume over the past month, of 75.5 million shares. Below is a chart showing SBUX's trailing twelve month trading history, with the $115 strike highlighted in orange: Apple Inc (Symbol: AAPL) options are showing a volume of 1.1 million contracts thus far today. Especially high volume was seen for the $140 strike call option expiring January 27, 2023, with 50,174 contracts trading so far today, representing approximately 5.0 million underlying shares of AAPL.
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That number of contracts represents approximately 107.6 million underlying shares, working out to a sizeable 142.5% of AAPL's average daily trading volume over the past month, of 75.5 million shares. Below is a chart showing COST's trailing twelve month trading history, with the $500 strike highlighted in orange: For the various different available expirations for SBUX options, AAPL options, or COST options, visit StockOptionsChannel.com. Below is a chart showing SBUX's trailing twelve month trading history, with the $115 strike highlighted in orange: Apple Inc (Symbol: AAPL) options are showing a volume of 1.1 million contracts thus far today.
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17478.0
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2023-01-23 00:00:00 UTC
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Why Apple (AAPL) is Poised to Beat Earnings Estimates Again
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AAPL
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https://www.nasdaq.com/articles/why-apple-aapl-is-poised-to-beat-earnings-estimates-again
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nan
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nan
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Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Apple (AAPL), which belongs to the Zacks Computer - Mini computers industry.
This maker of iPhones, iPads and other products has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 3.82%.
For the last reported quarter, Apple came out with earnings of $1.29 per share versus the Zacks Consensus Estimate of $1.26 per share, representing a surprise of 2.38%. For the previous quarter, the company was expected to post earnings of $1.14 per share and it actually produced earnings of $1.20 per share, delivering a surprise of 5.26%.
Price and EPS Surprise
For Apple, estimates have been trending higher, thanks in part to this earnings surprise history. And when you look at the stock's positive Zacks Earnings ESP (Expected Surprise Prediction), it's a great indicator of a future earnings beat, especially when combined with its solid Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Apple has an Earnings ESP of +4.42% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #3 (Hold), it shows that another beat is possibly around the corner. The company's next earnings report is expected to be released on February 2, 2023.
With the Earnings ESP metric, it's important to note that a negative value reduces its predictive power; however, a negative Earnings ESP does not indicate an earnings miss.
Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
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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.
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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 is worth considering Apple (AAPL), which belongs to the Zacks Computer - Mini computers industry. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
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It is worth considering Apple (AAPL), which belongs to the Zacks Computer - Mini computers industry. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. And when you look at the stock's positive Zacks Earnings ESP (Expected Surprise Prediction), it's a great indicator of a future earnings beat, especially when combined with its solid Zacks Rank.
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It is worth considering Apple (AAPL), which belongs to the Zacks Computer - Mini computers industry. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. For the last reported quarter, Apple came out with earnings of $1.29 per share versus the Zacks Consensus Estimate of $1.26 per share, representing a surprise of 2.38%.
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It is worth considering Apple (AAPL), which belongs to the Zacks Computer - Mini computers industry. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. For the last reported quarter, Apple came out with earnings of $1.29 per share versus the Zacks Consensus Estimate of $1.26 per share, representing a surprise of 2.38%.
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17479.0
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2023-01-23 00:00:00 UTC
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Apple Wants To Make 25% Of Its IPhones In India, Minister Says
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AAPL
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https://www.nasdaq.com/articles/apple-wants-to-make-25-of-its-iphones-in-india-minister-says
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(RTTNews) - Tech giant Apple Inc. (AAPL) plans to manufacture 25% of its iPhones in India, according to the Asian country's commerce minister.
Piyush Goyal, India's minister of commerce and industry, said on Monday that iPhone maker wants India to account for up to 25% of its production, up from about 5%-7% now.
"They're already at about 5-7% of their manufacturing in India. If I am not mistaken, they are targeting to go up to 25% of their manufacturing," Goyal said at a conference. However, Apple has not issued any statement regarding this news.
Apple began iPhone assembly in the country in 2017 via Wistron and later with Foxconn. Last year, Apple began assembling its flagship iPhone 14 in India, which was for the first time that the company produced its latest model in the country. Earlier, they used to produce only older models.
Foxconn manufactures the smartphones at its Sriperumbudur factory on the outskirts of Chennai in southern India. According to reports, Foxconn seeks to quadruple the workforce at the factory over two years.
Apple has been seeking to shift its production away from China, where it currently makes a major chunk of its iPhones, driven largely by China's strict COVID-related lockdowns and restrictions, and rising trade and geopolitical tensions between the country and the U.S.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - Tech giant Apple Inc. (AAPL) plans to manufacture 25% of its iPhones in India, according to the Asian country's commerce minister. Last year, Apple began assembling its flagship iPhone 14 in India, which was for the first time that the company produced its latest model in the country. Foxconn manufactures the smartphones at its Sriperumbudur factory on the outskirts of Chennai in southern India.
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(RTTNews) - Tech giant Apple Inc. (AAPL) plans to manufacture 25% of its iPhones in India, according to the Asian country's commerce minister. Piyush Goyal, India's minister of commerce and industry, said on Monday that iPhone maker wants India to account for up to 25% of its production, up from about 5%-7% now. Apple began iPhone assembly in the country in 2017 via Wistron and later with Foxconn.
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(RTTNews) - Tech giant Apple Inc. (AAPL) plans to manufacture 25% of its iPhones in India, according to the Asian country's commerce minister. Piyush Goyal, India's minister of commerce and industry, said on Monday that iPhone maker wants India to account for up to 25% of its production, up from about 5%-7% now. Last year, Apple began assembling its flagship iPhone 14 in India, which was for the first time that the company produced its latest model in the country.
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(RTTNews) - Tech giant Apple Inc. (AAPL) plans to manufacture 25% of its iPhones in India, according to the Asian country's commerce minister. "They're already at about 5-7% of their manufacturing in India. Last year, Apple began assembling its flagship iPhone 14 in India, which was for the first time that the company produced its latest model in the country.
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17480.0
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2023-01-23 00:00:00 UTC
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Warren Buffett Just Beat the S&P 500 by the Widest Margin Since 2007. Can He Do It Again in 2023?
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AAPL
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https://www.nasdaq.com/articles/warren-buffett-just-beat-the-sp-500-by-the-widest-margin-since-2007.-can-he-do-it-again-in
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nan
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nan
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Warren Buffett's Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) gained 3.3% for investors in 2022, compared to the S&P 500's loss of 18.1% with dividends reinvested. Berkshire hadn't outperformed the S&P 500 by such a wide margin since 2007. And it did so even though the largest holding in its investment portfolio, Apple (NASDAQ: AAPL), fell more than 26%.
The question now is whether Berkshire can follow up its 2022 performance with another banner year in 2023. If Berkshire does beat the market, here's what it could mean for your portfolio.
Image source: Getty Images.
Finding value across all sectors
Although Buffett is known as a bargain hunter, his recent track record shows he doesn't shy away from adding to his positions even at higher prices. Apple, Chevron (NYSE: CVX), and Occidental Petroleum (NYSE: OXY) make up a combined 50% of Berkshire's public equity holdings. Yet Buffett has only been buying Apple stock since 2016, Occidental since 2019, and Chevron since 2020. Instead of avoiding new purchases as prices rose, Buffett and his team added to their winners, possibly because they still considered these stocks undervalued.
Berkshire's public equity portfolio consists of over 50 companies. But 85% of the portfolio is concentrated in the 10 largest holdings. Included in those top 10 holdings are companies in the tech, financials, energy, consumer staples, and communications sectors.
Berkshire has held companies like Coca-Cola and American Express for decades. But relatively recent moves show that Buffett and his team aren't afraid to revamp their portfolio if they find value in other areas.
What it takes for Berkshire to beat the market
Berkshire's holdings and recent moves showcase a strategy that is far bolder than the Oracle of Omaha often gets credit for. A few key points are summarized below:
Heavy concentration in a select few industry-leading companies.
Investing in companies with inexpensive or at least reasonable valuations.
Investing across all sectors of the economy.
Adding to winning positions even if the stock price has grown much higher.
Given the investment style of Buffett and his team, it is harder for Berkshire to beat a raging bull market than a flat or falling market. Berkshire's returns from 2010 to 2022 show noticeable underperformance during years when the market was doing very well. For example, in 2020, Berkshire produced a return of just 2.4% compared to 18.4% for the S&P 500 with dividends reinvested. The year before that, Berkshire returned just 11%, compared to a 31.5% total return for the S&P 500.
Buffett doesn't tend to overpay for companies or chase market trends. So when the valuations are expanding, and unprofitable growth stocks are leading the market, expect Berkshire to underperform. By the same token, if valuations are compressing and value stocks outperform growth stocks, expect Berkshire to beat the market.
However, given Berkshire's concentration in just a handful of stocks, Berkshire could underperform in a value-orientated market if there's an issue with one of the top holdings. One of the main reasons Berkshire was able to beat the market in 2022 despite Apple's underperformance was that the energy sector did well. Chevron's stock rose over 58% in 2022, and Occidental went up 119% -- which more than made up for Apple's underperformance.
Lessons from Berkshire's portfolio allocation
Berkshire's past performance and present allocation indicate the benefits of operating a diversified portfolio with a principled strategy. Berkshire is upfront with the objective of its portfolio, which is to beat the stock market over the long term in a regimented way that doesn't expose its investors to unnecessary risks.
When Berkshire ramps up its holdings in a particular stock, it's typically for a good reason. Therefore, scanning the list of Berkshire holdings can be a helpful starting point for finding balanced companies as well as foundational dividend stocks.
All told, we can all learn a thing or two about the way that Berkshire manages a disciplined portfolio by aligning risk tolerance and objectives with its investment strategy -- and more importantly, by focusing less on beating the market in a given year and more on accomplishing financial goals over a multi-decade time horizon.
10 stocks we like better than Berkshire Hathaway
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Berkshire Hathaway wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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American Express is an advertising partner of The Ascent, a Motley Fool company. Daniel Foelber has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway. The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway, long January 2024 $47.50 calls on Coca-Cola, long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway, short January 2023 $265 calls on Berkshire Hathaway, and short March 2023 $130 calls on 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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And it did so even though the largest holding in its investment portfolio, Apple (NASDAQ: AAPL), fell more than 26%. Finding value across all sectors Although Buffett is known as a bargain hunter, his recent track record shows he doesn't shy away from adding to his positions even at higher prices. Berkshire is upfront with the objective of its portfolio, which is to beat the stock market over the long term in a regimented way that doesn't expose its investors to unnecessary risks.
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And it did so even though the largest holding in its investment portfolio, Apple (NASDAQ: AAPL), fell more than 26%. By the same token, if valuations are compressing and value stocks outperform growth stocks, expect Berkshire to beat the market. See the 10 stocks *Stock Advisor returns as of January 9, 2023 American Express is an advertising partner of The Ascent, a Motley Fool company.
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And it did so even though the largest holding in its investment portfolio, Apple (NASDAQ: AAPL), fell more than 26%. By the same token, if valuations are compressing and value stocks outperform growth stocks, expect Berkshire to beat the market. However, given Berkshire's concentration in just a handful of stocks, Berkshire could underperform in a value-orientated market if there's an issue with one of the top holdings.
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And it did so even though the largest holding in its investment portfolio, Apple (NASDAQ: AAPL), fell more than 26%. If Berkshire does beat the market, here's what it could mean for your portfolio. One of the main reasons Berkshire was able to beat the market in 2022 despite Apple's underperformance was that the energy sector did well.
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17481.0
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2023-01-23 00:00:00 UTC
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Why Buying This FAANG Stock Could Be a Genius Move
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AAPL
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https://www.nasdaq.com/articles/why-buying-this-faang-stock-could-be-a-genius-move
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nan
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nan
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FAANG stocks remain popular among investors because these tech giants have historically outperformed the market. Over the past decade, the stocks of (Facebook) Meta Platforms, Apple (NASDAQ: AAPL), Amazon, Netflix, and (Google) Alphabet have all beaten the S&P 500.
FAANG STOCK
STOCK PRICE GAIN
AVERAGE ANNUAL INCREASE
Apple
616%
25%
Netflix
532.8%
23.2%
Amazon.com
452.8%
21.4%
Alphabet
256.5%
15.5%
Meta Platforms
117.4%
9.2%
S&P 500
113.9%
9%
Data source: Ycharts.
Apple has led the way. In fact, the tech titan has also outperformed its FAANG stock peers over the last three- and five-year periods.
While it's likely not the only catalyst, Apple is the only FAANG stock that pays dividends. That's worth noting because dividend-paying stocks have historically outperformed their stingier peers.
Here's why Apple's decision to pay a growing dividend makes the company look like the smartest FAANG stock to buy.
The secret to Apple's success?
Dividend payments have historically been an important contributor to shareholder returns. Since 1930, 40% of the S&P 500's total return has come from dividend income, according to data by Morningstar and Hartford Funds. Meanwhile, over the last 50 years, dividend-paying stocks have outperformed the broader market (9.6% average annual total return vs. 8.2% for the S&P 500). They have also vastly outperformed non-payers (4.8% total return). Of note, companies that have initiated dividends or consistently increased them have produced even higher total returns of 10.7%.
Apple got back into the dividend-paying game in 2012 by reinitiating a dividend following a 20-year layoff. The company has increased its shareholder payout every year since then:
AAPL Dividend data by YCharts
Given the power of a growing dividend, it has contributed to some of Apple's relative outperformance during the last decade.
Plenty of room to continue growing the dividend
Apple should be able to continue growing its dividend in the future. The company produces a massive amount of cash flow each year, giving it the funds to reinvest in growing its business and return to shareholders. The company produced a prodigious $122.2 billion of cash generated by operating activities in 2022, up $18 billion, or 17.4%, from 2021. It spent about $11 billion on business-related investments and returned $104 billion to shareholders through repurchases and dividend payments.
The dividend only consumed $14.8 billion of its cash last year, which was 2.6% more than it paid in 2021. However, the per-share payment rose by 4.5% -- from $0.22 per quarter to $0.23 per quarter -- showcasing the positive impact of its meaningful share repurchase program.
Apple's combination of growing cash flow, a falling share count, and a low payout ratio put it in an excellent position to continue increasing its dividend in the future. The company also has a cash-rich balance sheet, further enhancing its financial flexibility. While it will be tough for the company to repeat its monster outperformance from last decade -- especially considering its mammoth size -- Apple's rising dividend payments position it to continue producing market-beating total returns.
The smartest FAANG stock
Companies have de-emphasized dividends over the years because investors prefer stock price appreciation. That has many companies, especially in the tech sector, choosing to allocate all their cash flow toward growing their businesses and repurchasing shares in hopes of delivering outsized stock price gains.
However, dividend-paying stocks have historically produced higher total returns, especially companies that consistently grow their payouts. Apple has chosen the wiser path of paying a growing dividend. It could enable the tech behemoth to continue producing market-beating total returns, making it look like the smartest FAANG stock to buy.
10 stocks we like better than Apple
When our award-winning 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 January 9, 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. Matthew DiLallo has positions in Alphabet, Amazon.com, Apple, Meta Platforms, and Netflix and has the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Meta Platforms, and Netflix. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on 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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Over the past decade, the stocks of (Facebook) Meta Platforms, Apple (NASDAQ: AAPL), Amazon, Netflix, and (Google) Alphabet have all beaten the S&P 500. The company has increased its shareholder payout every year since then: AAPL Dividend data by YCharts Given the power of a growing dividend, it has contributed to some of Apple's relative outperformance during the last decade. Apple's combination of growing cash flow, a falling share count, and a low payout ratio put it in an excellent position to continue increasing its dividend in the future.
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Over the past decade, the stocks of (Facebook) Meta Platforms, Apple (NASDAQ: AAPL), Amazon, Netflix, and (Google) Alphabet have all beaten the S&P 500. The company has increased its shareholder payout every year since then: AAPL Dividend data by YCharts Given the power of a growing dividend, it has contributed to some of Apple's relative outperformance during the last decade. However, dividend-paying stocks have historically produced higher total returns, especially companies that consistently grow their payouts.
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The company has increased its shareholder payout every year since then: AAPL Dividend data by YCharts Given the power of a growing dividend, it has contributed to some of Apple's relative outperformance during the last decade. Over the past decade, the stocks of (Facebook) Meta Platforms, Apple (NASDAQ: AAPL), Amazon, Netflix, and (Google) Alphabet have all beaten the S&P 500. Here's why Apple's decision to pay a growing dividend makes the company look like the smartest FAANG stock to buy.
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The company has increased its shareholder payout every year since then: AAPL Dividend data by YCharts Given the power of a growing dividend, it has contributed to some of Apple's relative outperformance during the last decade. Over the past decade, the stocks of (Facebook) Meta Platforms, Apple (NASDAQ: AAPL), Amazon, Netflix, and (Google) Alphabet have all beaten the S&P 500. However, dividend-paying stocks have historically produced higher total returns, especially companies that consistently grow their payouts.
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17482.0
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2023-01-23 00:00:00 UTC
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After Hours Most Active for Jan 23, 2023 : BBD, NOK, ITUB, ARMK, TEVA, CCL, QQQ, FOLD, STNE, AAPL, CMCSA, ACWI
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-jan-23-2023-%3A-bbd-nok-itub-armk-teva-ccl-qqq-fold-stne-aapl
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nan
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The NASDAQ 100 After Hours Indicator is down -2.88 to 11,869.66. The total After hours volume is currently 82,521,401 shares traded.
The following are the most active stocks for the after hours session:
Banco Bradesco Sa (BBD) is +0.01 at $2.72, with 13,006,149 shares traded. As reported by Zacks, the current mean recommendation for BBD is in the "buy range".
Nokia Corporation (NOK) is unchanged at $4.63, with 9,308,098 shares traded.NOK is scheduled to provide an earnings report on 1/26/2023, for the fiscal quarter ending Dec2022. The consensus earnings per share forecast is 0.14 per share, which represents a 15 percent increase over the EPS one Year Ago
Itau Unibanco Banco Holding SA (ITUB) is -0.01 at $4.85, with 7,402,099 shares traded. As reported by Zacks, the current mean recommendation for ITUB is in the "buy range".
Aramark (ARMK) is unchanged at $44.99, with 3,917,573 shares traded. ARMK's current last sale is 99.98% of the target price of $45.
Teva Pharmaceutical Industries Limited (TEVA) is +0.02 at $10.40, with 3,783,093 shares traded. TEVA's current last sale is 104% of the target price of $10.
Carnival Corporation (CCL) is -0.04 at $10.68, with 2,733,448 shares traded. CCL's current last sale is 106.8% of the target price of $10.
Invesco QQQ Trust, Series 1 (QQQ) is -0.22 at $288.74, with 2,550,048 shares traded. This represents a 13.56% increase from its 52 Week Low.
Amicus Therapeutics, Inc. (FOLD) is unchanged at $13.06, with 2,427,204 shares traded. As reported in the last short interest update the days to cover for FOLD is 11.113964; this calculation is based on the average trading volume of the stock.
StoneCo Ltd. (STNE) is -0.01 at $10.14, with 2,172,422 shares traded. STNE's current last sale is 67.6% of the target price of $15.
Apple Inc. (AAPL) is -0.0996 at $141.01, with 1,906,173 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Comcast Corporation (CMCSA) is +0.03 at $40.29, with 1,822,600 shares traded.CMCSA is scheduled to provide an earnings report on 1/26/2023, for the fiscal quarter ending Dec2022. The consensus earnings per share forecast is 0.77 per share, which represents a 77 percent increase over the EPS one Year Ago
iShares MSCI ACWI ETF (ACWI) is unchanged at $90.46, with 1,671,549 shares traded. This represents a 19.48% increase from its 52 Week Low.
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 -0.0996 at $141.01, with 1,906,173 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Nokia Corporation (NOK) is unchanged at $4.63, with 9,308,098 shares traded.NOK is scheduled to provide an earnings report on 1/26/2023, for the fiscal quarter ending Dec2022.
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Apple Inc. (AAPL) is -0.0996 at $141.01, with 1,906,173 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Nokia Corporation (NOK) is unchanged at $4.63, with 9,308,098 shares traded.NOK is scheduled to provide an earnings report on 1/26/2023, for the fiscal quarter ending Dec2022.
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Apple Inc. (AAPL) is -0.0996 at $141.01, with 1,906,173 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 82,521,401 shares traded.
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Apple Inc. (AAPL) is -0.0996 at $141.01, with 1,906,173 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 -2.88 to 11,869.66.
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17483.0
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2023-01-23 00:00:00 UTC
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Market on Tipping Point of New Bull Trend: These 5 Charts Illustrate Why
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AAPL
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https://www.nasdaq.com/articles/market-on-tipping-point-of-new-bull-trend%3A-these-5-charts-illustrate-why
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nan
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nan
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There is no specific indicator or warning that tells investors when the direction of the market is about to change or has already changed. On Wall Street, “no one rings a bell” when the trend changes from a bull market to bear market and vice versa. For this reason, it is essential that investors monitor the market regularly, do their best to put the pieces of the puzzle together, and can make decisions based on incomplete information.
Today we will cover 5 charts that show we are on the tipping point of entering a bull market:
Spdr S&P 500 Index SPY: The S&P 500 Index is the broadest method U.S. investors have for following markets. Included in the index is 500 large companies such as Apple AAPL, ExxonMobil XOM, Tesla TSLA, and Johnson and Johnson JNJ. As of late 2022, the index had a market cap of $34 trillion.
In January 2022, the S&P 500 index and “SPY,” the largest ETF tracking the index, topped. Since then, there have been several failed rally attempts, also known as bear market rallies. Though the downtrend has been frustrating for investors, there is one light at the end of the tunnel for market technicians: the downtrend is uniform. Each large-scale failed rally attempt has been turned away at a down-trend dating back to the infancy of the bear market trend. In other words, a break and hold above the line is a major signal that the market may be turning from bearish to bullish.
Image Source: Zacks Investment Research
IShares Russell 2000 ETF IWM: Just as large-cap stocks are important to the overall market, so are small-caps. The Russell 2000 Index is a small-cap index tracking some of the smallest publicly traded companies. Components include names such as Matador Resources MTDR, Halozyme Therapeutics HALO, and Texas Roadhouse (TXRH). Investors must see performance from this group of stocks because there are different factors at play for them, such as sector mix, foreign exchange impact, and risk appetite for investors. IWM is the largest ETF tracking these names and is looking to break out above Q4 highs.
Image Source: Zacks Investment Research
The iShares Biotech ETF IBB tracks the biotech sector within the Nasdaq. IBB has been a significant laggard – while the S&P 500 Index topped in early 2022, IBB topped in August of 2021 and sold off much harder. The Spdr S&P Biotech ETF XBI, which tracks the biotech sector within the S&P 500, topped back in February of 2021. If the market is to continue to strengthen, beaten down sectors such as biotech will have to breathe new life into the market. In the past few months, the industry has shown a distinct change of character and demonstrated leadership. A break above last quarter’s resistance in IBB should renew confidence in these names for investors.
Image Source: Zacks Investment Research
Semiconductors are another such group that led the market on the way up and the way down. Like IBB, the Vaneck Semiconductor ETF SMH has seemingly turned the corner and is now in an uptrend.
The iShares MSCI World Index ETF URTH is an index composed of globally developed market equities. Why is it worth tracking? Simply put, the economy is now global in nature. For example, most countries simultaneously suffered from inflation and a lower stock market. It is tough to imagine an improvement in U.S. markets without and improvement in global markets. Luckily for investors, the index regained its 200-day moving average, signaling a burgeoning uptrend. Investors should watch to see if the index can maintain the 200-day moving forward and begin to trend higher.
Image Source: Zacks Investment Research
Tech stocks and the Invesco Tech ETF QQQ suffered the brunt of the bear market. High-growth, high-valuation stocks saw non-stop selling as investors migrated to lower valuation safe havens. These stocks will need to stabilize for U.S. markets to truly be back in play. This week should be telling – tech giants such as Microsoft MSFT are slated to report EPS, and the QQQ and Nasdaq sit just atop the 200-week moving average. Over the past 20-years, the 200-week moving average has acted as an important level of support for the index.
Image Source: Zacks Investment Research
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Johnson & Johnson (JNJ) : Free Stock Analysis Report
Exxon Mobil Corporation (XOM) : Free Stock Analysis Report
Texas Roadhouse, Inc. (TXRH) : Free Stock Analysis Report
Halozyme Therapeutics, Inc. (HALO) : Free Stock Analysis Report
Tesla, Inc. (TSLA) : Free Stock Analysis Report
iShares Biotechnology ETF (IBB): ETF Research Reports
Invesco QQQ (QQQ): ETF Research Reports
SPDR S&P 500 ETF (SPY): ETF Research Reports
iShares Russell 2000 ETF (IWM): ETF Research Reports
Matador Resources Company (MTDR) : Free Stock Analysis Report
VanEck Semiconductor ETF (SMH): ETF Research Reports
SPDR S&P Biotech ETF (XBI): ETF Research Reports
iShares MSCI World ETF (URTH): 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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Included in the index is 500 large companies such as Apple AAPL, ExxonMobil XOM, Tesla TSLA, and Johnson and Johnson JNJ. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Johnson & Johnson (JNJ) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Texas Roadhouse, Inc. (TXRH) : Free Stock Analysis Report Halozyme Therapeutics, Inc. (HALO) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report iShares Biotechnology ETF (IBB): ETF Research Reports Invesco QQQ (QQQ): ETF Research Reports SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Russell 2000 ETF (IWM): ETF Research Reports Matador Resources Company (MTDR) : Free Stock Analysis Report VanEck Semiconductor ETF (SMH): ETF Research Reports SPDR S&P Biotech ETF (XBI): ETF Research Reports iShares MSCI World ETF (URTH): ETF Research Reports To read this article on Zacks.com click here. For this reason, it is essential that investors monitor the market regularly, do their best to put the pieces of the puzzle together, and can make decisions based on incomplete information.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Johnson & Johnson (JNJ) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Texas Roadhouse, Inc. (TXRH) : Free Stock Analysis Report Halozyme Therapeutics, Inc. (HALO) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report iShares Biotechnology ETF (IBB): ETF Research Reports Invesco QQQ (QQQ): ETF Research Reports SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Russell 2000 ETF (IWM): ETF Research Reports Matador Resources Company (MTDR) : Free Stock Analysis Report VanEck Semiconductor ETF (SMH): ETF Research Reports SPDR S&P Biotech ETF (XBI): ETF Research Reports iShares MSCI World ETF (URTH): ETF Research Reports To read this article on Zacks.com click here. Included in the index is 500 large companies such as Apple AAPL, ExxonMobil XOM, Tesla TSLA, and Johnson and Johnson JNJ. Image Source: Zacks Investment Research The iShares Biotech ETF IBB tracks the biotech sector within the Nasdaq.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Johnson & Johnson (JNJ) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Texas Roadhouse, Inc. (TXRH) : Free Stock Analysis Report Halozyme Therapeutics, Inc. (HALO) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report iShares Biotechnology ETF (IBB): ETF Research Reports Invesco QQQ (QQQ): ETF Research Reports SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Russell 2000 ETF (IWM): ETF Research Reports Matador Resources Company (MTDR) : Free Stock Analysis Report VanEck Semiconductor ETF (SMH): ETF Research Reports SPDR S&P Biotech ETF (XBI): ETF Research Reports iShares MSCI World ETF (URTH): ETF Research Reports To read this article on Zacks.com click here. Included in the index is 500 large companies such as Apple AAPL, ExxonMobil XOM, Tesla TSLA, and Johnson and Johnson JNJ. Today we will cover 5 charts that show we are on the tipping point of entering a bull market: Spdr S&P 500 Index SPY: The S&P 500 Index is the broadest method U.S. investors have for following markets.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Johnson & Johnson (JNJ) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Texas Roadhouse, Inc. (TXRH) : Free Stock Analysis Report Halozyme Therapeutics, Inc. (HALO) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report iShares Biotechnology ETF (IBB): ETF Research Reports Invesco QQQ (QQQ): ETF Research Reports SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Russell 2000 ETF (IWM): ETF Research Reports Matador Resources Company (MTDR) : Free Stock Analysis Report VanEck Semiconductor ETF (SMH): ETF Research Reports SPDR S&P Biotech ETF (XBI): ETF Research Reports iShares MSCI World ETF (URTH): ETF Research Reports To read this article on Zacks.com click here. Included in the index is 500 large companies such as Apple AAPL, ExxonMobil XOM, Tesla TSLA, and Johnson and Johnson JNJ. In January 2022, the S&P 500 index and “SPY,” the largest ETF tracking the index, topped.
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17484.0
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2023-01-23 00:00:00 UTC
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Tech Shows Initial Signs of Revival: Trend Likely to Continue
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AAPL
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https://www.nasdaq.com/articles/tech-shows-initial-signs-of-revival%3A-trend-likely-to-continue
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nan
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Wall Street witnessed a broad-based decline in 2022 with the technology sector suffering the most. The technology sector, which enabled Wall Street to get rid of the coronavirus-induced short bear market and formed the new bull market, suffered owing to overvaluation, a high interest rate regime and tighter monetary control adopted by the Fed to combat a 40-year high inflation.
However, as we have entered 2023, a very early sign of a rebound in the technology sector is clearly visible. Of the three major stock indexes — month to date — the tech-heavy has gained 6.4% while the Dow and the S&P 500 have risen 0.7%, respectively. Year to date, of the 11 broad sectors of the S&P 500 Index, the Technology Select Sector SPDR (XLK) and the tech-laden Communication Services Select Sector SPDR (XLC) have rallied 5.5% and 10.7%, respectively. This trend is likely to get further momentum in 2023.
Peak Inflation Seems Behind Us
Peak inflation seems behind us. Less-than-expected inflation rates in October, November and December with respect to several measures have clearly indicated this. The University of Michigan Surveys of Consumers released on Jan 13 showed that the one-year inflation outlook slipped to a preliminary reading of 4.0% this month from 4.4% in December, the lowest reading since April 2021.
The Fed raised the benchmark interest rate 4.25% in 2022 to the range of 4.25 to 4.5%. Market is currently expecting the central bank to increase the interest rate maximum by 75 basis points in 2023. Some financial analysts are expecting the first rate cut to come in the last quarter of 2023 or in early 2024.
On the other hand, the U.S. labor market remains resilient. The initial results of the fourth-quarter 2022 earnings were as disappointing as expected. Therefore, the Fed may reach its goal of a soft landing.
Technology is the Best Bet for the Long Term
Last year’s meltdown of the technology sector was a temporary phenomenon. The fundamentals of this sector are rock solid. We must not forget that the growing demand for hi-tech products has been a catalyst for the sector in an otherwise tough environment. A series of breakthroughs in 5G wireless network, cloud computing, predictive analysis, Artificial Intelligence, self-driving vehicles, digital personal assistants and Internet of Things, has given a boost to the overall space.
The leading emerging markets of Asia, Latin America, Africa and some European countries are still way behind in using digital technology compared to the developed world. While mobile phone penetration is nearly 90% in these countries, a large number of people are still using phones with old features, since voice communication and not data serve most of their needs. Even those using smartphones, rarely utilize online digital features.
However, the outbreak of coronavirus quickly changed the lifestyle and lookout of these people. The countries that are more digitized have been able to minimize their losses during the pandemic. These are major lessons for other countries. Even those who are less inclined toward digital technology and online platforms, either because they have to learn using smartphones or tablets or due to fear of data theft, are now feeling the massive advantage of online platforms.
Tech is No Longer Overvalued
The technology sector suffered a massive humiliation in 2022. The Nasdaq Composite plummeted 33.1% year over year and 32.9% from its all-time high. On the other hand, the XLK and XLC are currently trading at a 20% and 30.7% discount, respectively, from their 52-week highs.
Technology behemoths like Apple Inc. AAPL, Microsoft Corp. MSFT, Meta Platforms Inc. META, Alphabet Inc. GOOGL and NVIDIA Corp. NVDA are currently trading at 23.2%, 24%, 57.5%, 35.3% and 38.4% discount from their respective 52-week high levels. These five stocks currently carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
These companies have a solid business model, globally claimed brand value and strong financial positions. A weak guidance for one or two quarters will not affect the share prices of these companies to a great extent.
On the other hand, these stocks were heavily shorted and have corrected significantly in the past year. A gradually declining inflation rate, a lower magnitude of interest rate hike and the possibility of a soft landing (without recession) of the U.S. economy will result in a sharp northbound movement of these stock prices.
The chart below shows the price performance of the five above-mentioned stocks in the past year.
Image Source: Zacks Investment Research
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : 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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Technology behemoths like Apple Inc. AAPL, Microsoft Corp. MSFT, Meta Platforms Inc. META, Alphabet Inc. GOOGL and NVIDIA Corp. NVDA are currently trading at 23.2%, 24%, 57.5%, 35.3% and 38.4% discount from their respective 52-week high levels. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. A series of breakthroughs in 5G wireless network, cloud computing, predictive analysis, Artificial Intelligence, self-driving vehicles, digital personal assistants and Internet of Things, has given a boost to the overall space.
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Technology behemoths like Apple Inc. AAPL, Microsoft Corp. MSFT, Meta Platforms Inc. META, Alphabet Inc. GOOGL and NVIDIA Corp. NVDA are currently trading at 23.2%, 24%, 57.5%, 35.3% and 38.4% discount from their respective 52-week high levels. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Year to date, of the 11 broad sectors of the S&P 500 Index, the Technology Select Sector SPDR (XLK) and the tech-laden Communication Services Select Sector SPDR (XLC) have rallied 5.5% and 10.7%, respectively.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Technology behemoths like Apple Inc. AAPL, Microsoft Corp. MSFT, Meta Platforms Inc. META, Alphabet Inc. GOOGL and NVIDIA Corp. NVDA are currently trading at 23.2%, 24%, 57.5%, 35.3% and 38.4% discount from their respective 52-week high levels. The technology sector, which enabled Wall Street to get rid of the coronavirus-induced short bear market and formed the new bull market, suffered owing to overvaluation, a high interest rate regime and tighter monetary control adopted by the Fed to combat a 40-year high inflation.
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Technology behemoths like Apple Inc. AAPL, Microsoft Corp. MSFT, Meta Platforms Inc. META, Alphabet Inc. GOOGL and NVIDIA Corp. NVDA are currently trading at 23.2%, 24%, 57.5%, 35.3% and 38.4% discount from their respective 52-week high levels. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Year to date, of the 11 broad sectors of the S&P 500 Index, the Technology Select Sector SPDR (XLK) and the tech-laden Communication Services Select Sector SPDR (XLC) have rallied 5.5% and 10.7%, respectively.
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17485.0
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2023-01-23 00:00:00 UTC
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METALS-Demand recovery hopes help copper towards 7-month high
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AAPL
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https://www.nasdaq.com/articles/metals-demand-recovery-hopes-help-copper-towards-7-month-high
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nan
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nan
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By Pratima Desai
LONDON, Jan 23 (Reuters) - Copper prices rose on Monday, heading back towards the seven-month highs seen last week on improving prospects for demand in top consumer China, low inventories and a weaker dollar.
However, traders said activity was subdued due to the Chinese Lunar new year holiday.
Benchmark copper CMCU3 on the London Metal Exchange traded up 0.3% at $9,355 a tonne in official rings. Prices of the metal used in the power and construction industries rose to $9,550.50 last week, the highest since June 6.
"Copper is up over 12% this year on positive sentiment surrounding China's re-opening narrative, physical stockpile shortages and a weaker dollar," said Giles Coghlan, an analyst at broker HYCM.
"None of these look like changing much in the near term, but it's a big week for U.S. earnings. If markets start to price in a greater chance of a U.S. recession, that could weigh on sentiment which could in turn impact copper's near term prices."
Companies accounting for more than half the S&P 500's market value are reporting over the next two weeks. Microsoft MSFT.O results are due on Tuesday, followed by Elon Musk's Tesla TSLA.O on Wednesday, while Apple AAPL.O and Google parent Alphabet GOOGL.O report next week.
Also on the agenda this week is a spate of U.S. data on growth, manufacturing and price pressures, which may yield clues to the Federal Reserve's monetary policy intentions.
Worries about supplies from Peru due to social unrest are also helping to support copper prices.
Demand for industrial metals overall is expected to pick up soon after the Chinese holiday as companies restock ahead of a pick-up in manufacturing activity.
A lower U.S. currency makes dollar-priced metals cheaper for holders of other currencies, which could subdue demand. FRX/
Traders are watching copper inventories in LME-registered warehouses MCUSTX-TOTAL, which at 78,300 tonnes are heading towards 10-month lows hit last November.
Cancelled warrants - metal earmarked for delivery - at 37% of the total suggest more copper is due to leave LME warrant.
In other metals, aluminium CMAL3 climbed 0.3% to $2,619, zinc CMZN3 was little changed at $3,422, lead CMPB3 was up 0.7% at $2,104, tin CMSN3 added 1.2% to $29,900 and nickel CMNI3 fell 2.8% to $27,950.
(Reporting by Pratima Desai; additional reporting by Neha Arora; Editing by Jan Harvey and Chizu Nomiyama)
((pratima.desai@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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Microsoft MSFT.O results are due on Tuesday, followed by Elon Musk's Tesla TSLA.O on Wednesday, while Apple AAPL.O and Google parent Alphabet GOOGL.O report next week. By Pratima Desai LONDON, Jan 23 (Reuters) - Copper prices rose on Monday, heading back towards the seven-month highs seen last week on improving prospects for demand in top consumer China, low inventories and a weaker dollar. "Copper is up over 12% this year on positive sentiment surrounding China's re-opening narrative, physical stockpile shortages and a weaker dollar," said Giles Coghlan, an analyst at broker HYCM.
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Microsoft MSFT.O results are due on Tuesday, followed by Elon Musk's Tesla TSLA.O on Wednesday, while Apple AAPL.O and Google parent Alphabet GOOGL.O report next week. By Pratima Desai LONDON, Jan 23 (Reuters) - Copper prices rose on Monday, heading back towards the seven-month highs seen last week on improving prospects for demand in top consumer China, low inventories and a weaker dollar. However, traders said activity was subdued due to the Chinese Lunar new year holiday.
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Microsoft MSFT.O results are due on Tuesday, followed by Elon Musk's Tesla TSLA.O on Wednesday, while Apple AAPL.O and Google parent Alphabet GOOGL.O report next week. By Pratima Desai LONDON, Jan 23 (Reuters) - Copper prices rose on Monday, heading back towards the seven-month highs seen last week on improving prospects for demand in top consumer China, low inventories and a weaker dollar. Prices of the metal used in the power and construction industries rose to $9,550.50 last week, the highest since June 6.
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Microsoft MSFT.O results are due on Tuesday, followed by Elon Musk's Tesla TSLA.O on Wednesday, while Apple AAPL.O and Google parent Alphabet GOOGL.O report next week. By Pratima Desai LONDON, Jan 23 (Reuters) - Copper prices rose on Monday, heading back towards the seven-month highs seen last week on improving prospects for demand in top consumer China, low inventories and a weaker dollar. "None of these look like changing much in the near term, but it's a big week for U.S. earnings.
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17486.0
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2023-01-23 00:00:00 UTC
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Want to Get Richer? 3 Stocks to Buy in 2023 and Hold Forever
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AAPL
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https://www.nasdaq.com/articles/want-to-get-richer-3-stocks-to-buy-in-2023-and-hold-forever
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nan
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nan
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The Nasdaq Composite index saw some recovery so far in 2023, but it is down 19.1% over the past 52 weeks as it continues to get buffeted by macroeconomic headwinds. The current market downturn highlights the importance of focusing on stocks for solid companies and holding indefinitely. Doing so can help protect a portfolio from market fluctuations and temporary economic declines.
Apple (NASDAQ: AAPL), Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), and Walt Disney (NYSE: DIS) have each suffered double-digit percentage declines in their stock prices over the last 12 months. Yet they remain leaders in lucrative markets and generate consistent long-term growth, making them excellent stocks to buy in 2023 and hold forever. Let's take a closer look at these three stocks.
1. Apple
Apple shares have been a great long-term hold, with the company's stock up 202% in the last five years and 657% in the last decade. The global tech giant maintains a robust business, with some of the world's most in-demand products and almost unparalleled brand loyalty. These two characteristics are a big part of why investing luminary Warren Buffett dedicated nearly 38% of Berkshire Hathaway's investment portfolio to Apple stock.
Apple's annual revenue in fiscal 2022 (which ended Sept. 24) topped $394 billion and is up 48.5% from fiscal 2018's total. At the same time, Apple's operating income has increased 68%, and it now tops $119.4 billion. The company's consistent growth makes its stock an asset to any portfolio, and one likely to provide significant gains for years.
With its stock price down 15.1% in the past year, The opportunity is there to invest in Apple and benefit from the discount price, especially if you plan to hold it for keeps.
2. Alphabet
Alphabet shares are down about 24% over the past year. But like many other tech stocks, the tech giant has been gradually trending upward since the start of 2023, rising almost 12% since Jan. 1. The company had a challenging 2022, with economic headwinds triggering declines in digital ad spending that slowed overall growth.
However, Alphabet remains home to potent (and growing) brands such as YouTube, Android, Pixel, and many other businesses in its Google segment. YouTube alone hosts 2.6 billion active users a day, and 52% of all internet users worldwide visit the site at least once a month. Meanwhile, Google has held an overwhelming majority market share in search engines, above 84% every year since at least 2015.
The company's dominant role in markets such as online video sharing, search engines, and smartphone operating systems helped push its stock price up 71% in the last five years and 256% in the last 10.
Moreover, Alphabet's price-to-earnings (P/E) ratio of 18 is at one of its lowest points in a decade; its ratio of price to free cash flow is similarly close to a 10-year low. As a result, now is the perfect time to get Alphabet's stock at a bargain to hold indefinitely.
3. Walt Disney
Disney's stock is down 24.7% in the past year. However, the company started 2023 strong, as its shares are up 19.1% since Jan. 1. Investors were encouraged that Avatar: The Way of Water is a box-office hit, now grossing move than $2 billion and becoming the sixth-highest-earning film in history after six weeks in theaters. The Avatar sequel reportedly cost $350 million to produce, according to Variety. The film's profits will provide a much-needed boost to Disney's media business.
In the company's latest quarter (which ended Oct. 1), revenue in its media and entertainment distribution segment fell 3% year over year to $12.7 billion, alongside a 91% decline in operating income of $83 million. A box-office hit like Avatar: The Way of Water should help both these metrics improve.
The hits to Disney's media business were primarily fueled by significant investment in streaming content. This allowed Disney's various streaming services (Disney+, Hulu, and ESPN+) to combine and achieve the most subscribers in the industry in the third quarter, and retain its leading position in the fourth, with 236 million subscribers compared to Netflix's 223 million. While expensive to attain, Disney's spot at the top of streaming has it leading a $59.14 billion market that's expected to grow at a compound annual growth rate (CAGR) of 21.3% through 2030 -- which will likely boost revenue for years.
Moreover, the company expects operating losses to "narrow going forward" as it pushes Disney+ toward profitability by 2024.
With a media business swiftly reclaiming its losses and a booming parks business, Disney is worth an investment. You can pick up shares in 2023, and hold them for good.
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Suzanne Frey, an executive at Alphabet, 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, Apple, Berkshire Hathaway, Netflix, and Walt Disney. The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway, long January 2024 $145 calls on Walt Disney, long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway, short January 2023 $265 calls on Berkshire Hathaway, short January 2024 $155 calls on Walt Disney, and short March 2023 $130 calls on 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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Apple (NASDAQ: AAPL), Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), and Walt Disney (NYSE: DIS) have each suffered double-digit percentage declines in their stock prices over the last 12 months. The company's dominant role in markets such as online video sharing, search engines, and smartphone operating systems helped push its stock price up 71% in the last five years and 256% in the last 10. Investors were encouraged that Avatar: The Way of Water is a box-office hit, now grossing move than $2 billion and becoming the sixth-highest-earning film in history after six weeks in theaters.
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Apple (NASDAQ: AAPL), Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), and Walt Disney (NYSE: DIS) have each suffered double-digit percentage declines in their stock prices over the last 12 months. In the company's latest quarter (which ended Oct. 1), revenue in its media and entertainment distribution segment fell 3% year over year to $12.7 billion, alongside a 91% decline in operating income of $83 million. The Motley Fool has positions in and recommends Alphabet, Apple, Berkshire Hathaway, Netflix, and Walt Disney.
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Apple (NASDAQ: AAPL), Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), and Walt Disney (NYSE: DIS) have each suffered double-digit percentage declines in their stock prices over the last 12 months. Apple Apple shares have been a great long-term hold, with the company's stock up 202% in the last five years and 657% in the last decade. The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway, long January 2024 $145 calls on Walt Disney, long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway, short January 2023 $265 calls on Berkshire Hathaway, short January 2024 $155 calls on Walt Disney, and short March 2023 $130 calls on Apple.
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Apple (NASDAQ: AAPL), Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), and Walt Disney (NYSE: DIS) have each suffered double-digit percentage declines in their stock prices over the last 12 months. Apple Apple shares have been a great long-term hold, with the company's stock up 202% in the last five years and 657% in the last decade. Alphabet Alphabet shares are down about 24% over the past year.
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17487.0
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2023-01-23 00:00:00 UTC
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Is Most-Watched Stock Apple Inc. (AAPL) Worth Betting on Now?
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AAPL
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https://www.nasdaq.com/articles/is-most-watched-stock-apple-inc.-aapl-worth-betting-on-now-2
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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.
Over the past month, shares of this maker of iPhones, iPads and other products have returned +4.6%, compared to the Zacks S&P 500 composite's +4.1% change. During this period, the Zacks Computer - Mini computers industry, which Apple falls in, has gained 4.2%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings Estimates
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 $1.93 per share, indicating a change of -8.1% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.9% over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $6.19 points to a change of +1.3% from the prior year. Over the last 30 days, this estimate has changed +0.1%.
For the next fiscal year, the consensus earnings estimate of $6.72 indicates a change of +8.6% from what Apple is expected to report a year ago. Over the past month, the estimate has changed +0.4%.
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
While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For Apple, the consensus sales estimate for the current quarter of $120.9 billion indicates a year-over-year change of -2.5%. For the current and next fiscal years, $404.08 billion and $427.64 billion estimates indicate +2.5% and +5.8% changes, respectively.
Last Reported Results and Surprise History
Apple reported revenues of $90.15 billion in the last reported quarter, representing a year-over-year change of +8.1%. EPS of $1.29 for the same period compares with $1.24 a year ago.
Compared to the Zacks Consensus Estimate of $88.47 billion, the reported revenues represent a surprise of +1.9%. The EPS surprise was +2.38%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time 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 C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Conclusion
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 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) 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. 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.
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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 $6.72 indicates a change of +8.6% 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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17488.0
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2023-01-23 00:00:00 UTC
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SPY Has Aged Well for 30 Despite So Many Grandkids
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AAPL
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https://www.nasdaq.com/articles/spy-has-aged-well-for-30-despite-so-many-grandkids
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nan
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nan
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On Sunday, a select few of us in the ETF industry will be toasting the 30th anniversary of the SPDR S&P 500 ETF (SPY), the first U.S.-listed and still-largest ETF. However, millions of Americans will unknowingly be among the beneficiaries of the major milestone.
The first ETF began trading in Canada in 1990, but most will agree that the birth of SPY on January 22, 1993, helped propel the ETF industry’s global growth. While it took some time and weakness in the financial markets for ETFs to become mainstream, there is now approximately $7 trillion in assets spread across more than 3,000 U.S. ETFs, aided by back-to-back impressive years of net inflows. Many advisors have built strategies using only ETFs, and there is a collection of experienced and passionate VettaFi Voices eager to help them.
VettaFi is going to have a proper celebration with more than 1,000 of our closest financial advisors and ETF industry friends in a few weeks at Exchange in Miami. But I asked Matt Bartolini, head of SPDR Americas Research, to share some statistics about SPY, which remains the granddaddy of all ETFs. Here are some of my favorites as well as some perspective from me on the data:
SPY has had $110 trillion of total trading volume since inception.
SPY recently had $372 billion in assets. While many buy and hold SPY, the ETF is frequently used for shorter-term purposes.
SPY traded more than $9.7 trillion in 2022, making it the most traded ETF. SPY accounted for 21% of the record U.S. ETF volume.
SPY’s total trading volume in 2022 was 15 times more than that of the iShares S&P 500 ETF (IVV) and 18 times more than that of the Vanguard S&P 500 ETF (VOO).
Over the last five years, VOO, IVV, and the SPDR Portolio S&P 500 ETF (SPLG) had net inflows of $134 billion, $79 billion, and $13 billion respectively, while SPY had $16 billion of net outflows.
SPY’s net expense ratio of 0.09% is three times that of these ETFs. Despite losing some market share at the asset level, SPY remains the go-to vehicle for many.
SPY, on average, trades more than its top seven index constituents combined, including Apple, Amazon.com, and Microsoft.
While what is inside the ETF is the driver of its performance, there is tremendous liquidity in the basket of stocks in the S&P 500.
Over the last three decades, the ETF industry has provided investors, large and small, with many additional ways to access financial markets we take for granted. Some of these are the offspring for SPY, and it is a lineage worthy of pride.
For example, there is a wide range of ETFs tied the S&P 500 Index, including sector-focused funds like the Technology Select Sector SPDR (XLK), style-oriented funds like the iShares S&P 500 Growth ETF (IVW), factor-based funds like the Invesco S&P 500 Low Volatility ETF (SPLV), ESG-screened funds like the Xtrackers S&P 500 ESG ETF (SNPE), and many more.
Meanwhile, thanks to SPY, investors can gain access to international equity markets that are closed for the day when the ETF trading in the U.S. occurs, including funds like the KraneShares CSI China Internet ETF (KWEB) and the WisdomTree India Earnings Fund (EPI).
For those wanting to outperform SPY, despite the challenges, there are now hundreds of actively managed ETFs to consider, including many from firms long associated with the mutual fund world, such as ETFs like the American Century Focused Large Cap Value ETF (FLV) and the T. Rowe Price Blue Chip Growth ETF (TCHP). Indeed, it is hard to think of an asset management firm that does not have an ETF presence.
Not to mention that ETF investors get the benefits of trading on an exchange a portfolio of securities like high yield bonds (through funds like the SPDR Bloomberg High Yield Bond ETF (JNK)), gold (through an ETF like the SPDR Gold Shares (GLD)), and even ones investing in futures like the iMGP DBi Managed Futures Strategy ETF (DBMF).
I could list ETF innovations from now until SPY turns 30 years old. But I want to get ready to celebrate, and you should too.
To learn more about the event and register, please visit the Exchange website.
For more news, information, and analysis, visit VettaFi | ETF Trends.
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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VettaFi is going to have a proper celebration with more than 1,000 of our closest financial advisors and ETF industry friends in a few weeks at Exchange in Miami. But I asked Matt Bartolini, head of SPDR Americas Research, to share some statistics about SPY, which remains the granddaddy of all ETFs. Over the last three decades, the ETF industry has provided investors, large and small, with many additional ways to access financial markets we take for granted.
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Over the last five years, VOO, IVV, and the SPDR Portolio S&P 500 ETF (SPLG) had net inflows of $134 billion, $79 billion, and $13 billion respectively, while SPY had $16 billion of net outflows. For example, there is a wide range of ETFs tied the S&P 500 Index, including sector-focused funds like the Technology Select Sector SPDR (XLK), style-oriented funds like the iShares S&P 500 Growth ETF (IVW), factor-based funds like the Invesco S&P 500 Low Volatility ETF (SPLV), ESG-screened funds like the Xtrackers S&P 500 ESG ETF (SNPE), and many more. Not to mention that ETF investors get the benefits of trading on an exchange a portfolio of securities like high yield bonds (through funds like the SPDR Bloomberg High Yield Bond ETF (JNK)), gold (through an ETF like the SPDR Gold Shares (GLD)), and even ones investing in futures like the iMGP DBi Managed Futures Strategy ETF (DBMF).
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For example, there is a wide range of ETFs tied the S&P 500 Index, including sector-focused funds like the Technology Select Sector SPDR (XLK), style-oriented funds like the iShares S&P 500 Growth ETF (IVW), factor-based funds like the Invesco S&P 500 Low Volatility ETF (SPLV), ESG-screened funds like the Xtrackers S&P 500 ESG ETF (SNPE), and many more. For those wanting to outperform SPY, despite the challenges, there are now hundreds of actively managed ETFs to consider, including many from firms long associated with the mutual fund world, such as ETFs like the American Century Focused Large Cap Value ETF (FLV) and the T. Rowe Price Blue Chip Growth ETF (TCHP). Not to mention that ETF investors get the benefits of trading on an exchange a portfolio of securities like high yield bonds (through funds like the SPDR Bloomberg High Yield Bond ETF (JNK)), gold (through an ETF like the SPDR Gold Shares (GLD)), and even ones investing in futures like the iMGP DBi Managed Futures Strategy ETF (DBMF).
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VettaFi is going to have a proper celebration with more than 1,000 of our closest financial advisors and ETF industry friends in a few weeks at Exchange in Miami. SPY traded more than $9.7 trillion in 2022, making it the most traded ETF. SPY’s total trading volume in 2022 was 15 times more than that of the iShares S&P 500 ETF (IVV) and 18 times more than that of the Vanguard S&P 500 ETF (VOO).
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17489.0
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2023-01-23 00:00:00 UTC
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Dow Movers: GS, CRM
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AAPL
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https://www.nasdaq.com/articles/dow-movers%3A-gs-crm
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nan
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nan
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In early trading on Monday, shares of Salesforce topped the list of the day's best performing Dow Jones Industrial Average components, trading up 2.3%. Year to date, Salesforce registers a 16.7% gain.
And the worst performing Dow component thus far on the day is Goldman Sachs Group, trading down 1.1%. Goldman Sachs Group is lower by about 1.6% looking at the year to date performance.
Two other components making moves today are UnitedHealth Group, trading down 0.7%, and Apple, trading up 1.2% on the day.
VIDEO: Dow Movers: GS, CRM
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In early trading on Monday, shares of Salesforce topped the list of the day's best performing Dow Jones Industrial Average components, trading up 2.3%. And the worst performing Dow component thus far on the day is Goldman Sachs Group, trading down 1.1%. Goldman Sachs Group is lower by about 1.6% looking at the year to date performance.
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In early trading on Monday, shares of Salesforce topped the list of the day's best performing Dow Jones Industrial Average components, trading up 2.3%. And the worst performing Dow component thus far on the day is Goldman Sachs Group, trading down 1.1%. Goldman Sachs Group is lower by about 1.6% looking at the year to date performance.
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In early trading on Monday, shares of Salesforce topped the list of the day's best performing Dow Jones Industrial Average components, trading up 2.3%. And the worst performing Dow component thus far on the day is Goldman Sachs Group, trading down 1.1%. Two other components making moves today are UnitedHealth Group, trading down 0.7%, and Apple, trading up 1.2% on the day.
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And the worst performing Dow component thus far on the day is Goldman Sachs Group, trading down 1.1%. Goldman Sachs Group is lower by about 1.6% looking at the year to date performance. VIDEO: Dow Movers: GS, CRM 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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17490.0
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2023-01-23 00:00:00 UTC
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Why Warren Buffett Wants Apple Stock to Tumble
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AAPL
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https://www.nasdaq.com/articles/why-warren-buffett-wants-apple-stock-to-tumble
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nan
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nan
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Warren Buffett didn't have any problems beating the market last year. His beloved Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) delivered a 3.3% gain. It wasn't jaw-dropping. However, it was still a lot better than the S&P 500's 19.4% decline.
Several stocks were key in enabling Buffett to trounce the S&P 500. But Apple (NASDAQ: AAPL) wasn't one of them. Actually, the tech giant's performance weighed heavily on Berkshire's return in 2022.
You might think that Buffett would want Apple to rebound in a huge way this year. That's not the case. Here's why Buffett actually wants Apple stock to tumble.
Irrational?
Let's first note that Buffett is a huge fan of Apple. The stock is by far his biggest holding, making up a whopping 37.9% of Berkshire Hathaway's portfolio (including shares owned by Berkshire subsidiary New England Asset Management).
Buffett has stated in the past that Apple is "probably the best business I know in the world." In his latest letter to Berkshire shareholders, he called Apple one of Berkshire's "four giants" and referred to Tim Cook, the company's CEO, as "brilliant."
It would make sense if Buffett wanted Apple stock to perform exceptionally well. Impressive gains for the company would boost Berkshire's returns and make Buffett a lot of money. One might even argue that it would be irrational for Buffett to instead prefer that Apple stock lag well behind the market.
However, Buffett thinks the exact opposite is true. In his letter to Berkshire shareholders discussing the company's 2013 performance, he took time to "address the irrational reaction of many investors to changes in stock prices." The multibillionaire investor stated unequivocally that when Berkshire buys the stock of a company that's buying back its shares, he and the management team "hope that the stock underperforms in the market for a long time."
Apple is definitely repurchasing its shares. The company bought back $90.2 billion of its stock in fiscal year 2022. Buffett applauded those buybacks in his latest letter to Berkshire shareholders.
Simple logic
Why would one of the most successful investors of all time want the top stock in his portfolio to underperform? He told Berkshire shareholders that "the logic is simple."
Buffett's view assumes that he will continue to buy stocks down the road, including Apple. Because of this long-term perspective, he argues that his overall performance is hurt when the stocks he owns rise and helped when they fall.
In his 2013 letter, he used an analogy of a person who drives to work. Buffett wrote that investors who are happy when their stocks rise "resemble a commuter who rejoices after the price of gas increases, simply because his tank contains a day's supply."
Let's dig deeper into Buffett's way of thinking. Berkshire owns 37.9% of Apple's 15.84 billion outstanding shares today (or around 6 billion shares) with the share price at around $135. Apple had more than $60 billion remaining in its share repurchase program as of Sept. 30, 2022. If Apple's share price falls to $120, the company could buy back around 500 million shares. If the share price rises to $150, Apple could buy back around 400 million shares.
In the former scenario, Berkshire's stake in Apple would grow to more than 39.1%. In the latter scenario, that stake would increase to nearly 38.9%. If Apple generates annual earnings of $110 billion or more in the future (which is likely), Berkshire's portion would be $220 million higher because Apple was able to buy back its shares at a lower price.
A key prerequisite
There's one other important thing that Buffett wants from Apple: solid long-term earnings growth. Without this key prerequisite, everything we just talked about is a moot point.
Some investors question whether or not Apple can continue increasing its earnings. They even maintain that the stock is risky because of the possibility that the company's bottom line will decline. We'll have more insight into whether or not this pessimistic view is right when Apple reports its fiscal first-quarter results on Feb. 2, 2023.
But remember that Buffett isn't concerned about temporary earnings headwinds. Actually, if Apple's earnings decline a little because of a slump in the overall smartphone market with the company gaining market share along the way, Buffett would likely be happy. (By the way, Apple's iPhone is gaining market share.)
It won't be surprising if Berkshire Hathaway adds to its position in Apple if the stock tumbles this year. I think that following in Buffett's footsteps by buying Apple could make you money over the long run, too.
10 stocks we like better than Apple
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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 January 9, 2023
Keith Speights has positions in Apple and Berkshire Hathaway. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway. The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway, long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway, short January 2023 $265 calls on Berkshire Hathaway, and short March 2023 $130 calls on 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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But Apple (NASDAQ: AAPL) wasn't one of them. In his letter to Berkshire shareholders discussing the company's 2013 performance, he took time to "address the irrational reaction of many investors to changes in stock prices." Buffett wrote that investors who are happy when their stocks rise "resemble a commuter who rejoices after the price of gas increases, simply because his tank contains a day's supply."
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But Apple (NASDAQ: AAPL) wasn't one of them. The multibillionaire investor stated unequivocally that when Berkshire buys the stock of a company that's buying back its shares, he and the management team "hope that the stock underperforms in the market for a long time." If Apple's share price falls to $120, the company could buy back around 500 million shares.
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But Apple (NASDAQ: AAPL) wasn't one of them. The multibillionaire investor stated unequivocally that when Berkshire buys the stock of a company that's buying back its shares, he and the management team "hope that the stock underperforms in the market for a long time." If Apple generates annual earnings of $110 billion or more in the future (which is likely), Berkshire's portion would be $220 million higher because Apple was able to buy back its shares at a lower price.
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But Apple (NASDAQ: AAPL) wasn't one of them. In his letter to Berkshire shareholders discussing the company's 2013 performance, he took time to "address the irrational reaction of many investors to changes in stock prices." The multibillionaire investor stated unequivocally that when Berkshire buys the stock of a company that's buying back its shares, he and the management team "hope that the stock underperforms in the market for a long time."
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17491.0
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2023-01-23 00:00:00 UTC
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Nervous About the Stock Market? 1 ETF to Keep Your Money Safer
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AAPL
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https://www.nasdaq.com/articles/nervous-about-the-stock-market-1-etf-to-keep-your-money-safer
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nan
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nan
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Millions of investors have watched their savings dwindle over the past year as stock prices tumble. With concerns that we could be headed toward a recession in 2023, it's normal to feel nervous about investing right now.
While it can be tempting to stop investing or even pull your money out of the market, those strategies are often costly.
It's safer to simply ride out the storm and wait for stock prices to recover. But you'll need the right investments to pull off this tactic successfully. Fortunately, there's one ETF that can not only protect your savings, but potentially make you a millionaire, too.
The right ETF to keep your money safe
No investment is immune to volatility, but some have a better chance of recovering from downturns than others. And one of the safest ETFs out there is the S&P 500 ETF.
An S&P 500 ETF -- such as the Vanguard S&P 500 ETF (NYSEMKT: VOO) or the SPDR S&P 500 ETF Trust (NYSEMKT: SPY) -- is a fund that aims to mirror the performance of the S&P 500 index itself. Each fund includes stocks from 500 of the largest companies in the U.S., such as Amazon, Apple, and Microsoft.
When you own an S&P 500 ETF, you have a small stake in all 500 of the companies in the index. Not only does that provide instant diversification (which limits your risk), but because these stocks are some of the strongest in the world, they're also extremely likely to recover from downturns.
To be clear, your investments could still take a hit in the short term. In fact, over the past year, the S&P 500 has fallen by roughly 13%. But over the last 20 years, the index has earned returns of more than 250% -- and that's despite multiple major downturns in that time.
In short, no investment can avoid volatility entirely. But S&P 500 ETFs are far more likely to rebound from even the most severe crashes, bear markets, and recessions. Regardless of what happens in the coming weeks or months, the S&P 500 will be just fine over the long run.
Maximizing your returns
S&P 500 ETFs are one of the safest types of investments out there, but they can also help you make a lot of money over time.
For example, the SPDR S&P 500 ETF Trust has earned an average return of around 9.5% per year since its inception in 1993 -- which is in line with the index's historical average return of around 10% per year. In other words, all the annual highs and lows have averaged out to around 10% per year over time.
If you were to invest, say, $200 per month while earning a 10% average annual return, here's approximately how much you'd accumulate over time:
NUMBER OF YEARS TOTAL SAVINGS
20 $137,000
25 $236,000
30 $395,000
35 $650,000
40 $1,062,000
Source: Author's calculations via Investor.gov
The sooner you begin investing, the easier it will be to earn hundreds of thousands of dollars or more. Even if you can't afford to invest much per month, the more time you give your money to grow, the faster it will snowball.
Also, while waiting decades to save a substantial amount of money is tough, keep in mind that S&P 500 ETFs are passive investments. You don't need to do any research on individual stocks, and you can still build wealth even if know next to nothing about the stock market.
There's not necessarily a right or wrong way to invest. But if you want to limit your risk, an S&P 500 ETF could be a smart option to protect your savings while still generating long-term wealth.
10 stocks we like better than SPDR S&P 500 ETF Trust
When our award-winning 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 SPDR S&P 500 ETF Trust 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 January 9, 2023
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Katie Brockman has positions in Vanguard S&P 500 ETF. The Motley Fool has positions in and recommends Amazon.com, Apple, Microsoft, and Vanguard S&P 500 ETF. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on 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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Not only does that provide instant diversification (which limits your risk), but because these stocks are some of the strongest in the world, they're also extremely likely to recover from downturns. 20 $137,000 25 $236,000 30 $395,000 35 $650,000 40 $1,062,000 Source: Author's calculations via Investor.gov The sooner you begin investing, the easier it will be to earn hundreds of thousands of dollars or more. Also, while waiting decades to save a substantial amount of money is tough, keep in mind that S&P 500 ETFs are passive investments.
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See the 10 stocks *Stock Advisor returns as of January 9, 2023 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. The Motley Fool has positions in and recommends Amazon.com, Apple, Microsoft, and Vanguard S&P 500 ETF. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple.
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An S&P 500 ETF -- such as the Vanguard S&P 500 ETF (NYSEMKT: VOO) or the SPDR S&P 500 ETF Trust (NYSEMKT: SPY) -- is a fund that aims to mirror the performance of the S&P 500 index itself. Maximizing your returns S&P 500 ETFs are one of the safest types of investments out there, but they can also help you make a lot of money over time. For example, the SPDR S&P 500 ETF Trust has earned an average return of around 9.5% per year since its inception in 1993 -- which is in line with the index's historical average return of around 10% per year.
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Maximizing your returns S&P 500 ETFs are one of the safest types of investments out there, but they can also help you make a lot of money over time. For example, the SPDR S&P 500 ETF Trust has earned an average return of around 9.5% per year since its inception in 1993 -- which is in line with the index's historical average return of around 10% per year. If you were to invest, say, $200 per month while earning a 10% average annual return, here's approximately how much you'd accumulate over time:
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17492.0
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2023-01-23 00:00:00 UTC
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Will Apple Stock Beat the Market in 2023?
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AAPL
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https://www.nasdaq.com/articles/will-apple-stock-beat-the-market-in-2023
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nan
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nan
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Apple (NASDAQ: AAPL) has been one of the top stocks on the market over the last 20 years, surging over that time to become the most valuable company in the world. The company dominated the mobile computing era thanks to the success of the iPhone, and it supplemented its devices businesses with its high-margin services ecosystem, built around the App Store.
However, like other tech stocks, Apple couldn't escape the market malaise of 2022, and the stock finished down 27%, better than the Nasdaq Composite but worse than the S&P 500.
Looking ahead to 2023, investors are hoping for a comeback. But will Apple deliver? Let's take a look at what to expect from the iPhone maker this year, and whether it can beat the market.
Image source: Getty Images.
Uncertainty is lurking
In its most recent earnings report for the fiscal fourth quarter, Apple delivered solid results. Revenue rose 8% to $90.1 billion and earnings per share ticked up 4% to $1.29. However, management declined to give specific guidance due to uncertainty in the global economy.
For the key fiscal first quarter, which is Apple's biggest of the year as it follows its latest iPhone release, management declined to provide revenue guidance due to uncertainty, but said it expected revenue growth to decelerate from the September quarter and December quarter. It also forecast 10 percentage points of foreign currency headwinds, though the dollar has weakened significantly since it issued that guidance.
It's worth heeding CFO Luca Maestri's commentary about uncertainty. As a maker of high-end consumer electronics, Apple is sensitive to the global economy, and a recession is likely to weigh on demand for its products. Consumers may delay upgrading to the latest iPhone, or trade down to one of the cheaper models when they do.
Apple was a much smaller company during the last economic recession in 2008-2009, but its growth decelerated significantly then, slowing from 35.3% in fiscal 2008 to 12.5% in fiscal 2009.
In an announcement warning of production delays, the company did say that iPhone 14 demand was strong, a sign the company may continue to grow through the year.
What's in store for 2023
Apple generally keeps its product updates and releases close to the vest, but a couple of big changes are on the way this year. According to Bloomberg, the company is expected to introduce a mixed-reality headset later this year, possibly at its Worldwide Developers Conference in June, and the price point could be as high as $3,000.
Unlike any new products it's released in several years, the device has the potential to move the needle for Apple if the metaverse goes mainstream. And with its brand leadership in consumer electronics, the company seems like the early favorite in the space, despite the efforts of Meta Platforms, which is pouring billions into Oculus and its VR technology.
Moving forward with its push to develop more of its chips in-house, the company is also building a new team to develop wireless chips that it previously bought from companies like Broadcom and Skyworks. The project could take years to implement, but it is likely to save Apple on costs over the long run, differentiate its product, and give it more control over its supply chain.
Will Apple beat the market this year?
Apple is now trading at a price-to-earnings ratio of 22, about as cheap as it's been since the pandemic started, and only slightly more expensive than the S&P 500.
Considering the company's dominant brand, competitive advantages including its installed base of roughly 2 billion devices, and its high-margin services business, there are a lot of reasons why the stock should trade at a premium to the broad-market index.
Whether Apple can beat the market this year will likely depend on the overall economy. If the global economy continues to slip into a recession, Apple is likely to suffer, especially if its profits decline. However, the good news is that analyst expectations are low, calling for revenue and earnings-per-share growth in the low single digits. If the stock can beat those targets and the economy shows signs of recovery, Apple has a good chance of beating the market this year. Over the long run, its wide economic moat and steady expansion in demand should support the business's growth and its ability to return cash to shareholders.
10 stocks we like better than Apple
When our award-winning 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 January 9, 2023
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. Jeremy Bowman has positions in Meta Platforms. The Motley Fool has positions in and recommends Apple and Meta Platforms. The Motley Fool recommends Broadcom and Skyworks Solutions and recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on 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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Apple (NASDAQ: AAPL) has been one of the top stocks on the market over the last 20 years, surging over that time to become the most valuable company in the world. The company dominated the mobile computing era thanks to the success of the iPhone, and it supplemented its devices businesses with its high-margin services ecosystem, built around the App Store. And with its brand leadership in consumer electronics, the company seems like the early favorite in the space, despite the efforts of Meta Platforms, which is pouring billions into Oculus and its VR technology.
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Apple (NASDAQ: AAPL) has been one of the top stocks on the market over the last 20 years, surging over that time to become the most valuable company in the world. However, management declined to give specific guidance due to uncertainty in the global economy. For the key fiscal first quarter, which is Apple's biggest of the year as it follows its latest iPhone release, management declined to provide revenue guidance due to uncertainty, but said it expected revenue growth to decelerate from the September quarter and December quarter.
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Apple (NASDAQ: AAPL) has been one of the top stocks on the market over the last 20 years, surging over that time to become the most valuable company in the world. For the key fiscal first quarter, which is Apple's biggest of the year as it follows its latest iPhone release, management declined to provide revenue guidance due to uncertainty, but said it expected revenue growth to decelerate from the September quarter and December quarter. If the stock can beat those targets and the economy shows signs of recovery, Apple has a good chance of beating the market this year.
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Apple (NASDAQ: AAPL) has been one of the top stocks on the market over the last 20 years, surging over that time to become the most valuable company in the world. Let's take a look at what to expect from the iPhone maker this year, and whether it can beat the market. For the key fiscal first quarter, which is Apple's biggest of the year as it follows its latest iPhone release, management declined to provide revenue guidance due to uncertainty, but said it expected revenue growth to decelerate from the September quarter and December quarter.
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17493.0
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2023-01-23 00:00:00 UTC
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Apple targets raising India production share to up to 25% - minister
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AAPL
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https://www.nasdaq.com/articles/apple-targets-raising-india-production-share-to-up-to-25-minister
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nan
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Adds details, background
NEW DELHI, Jan 23 (Reuters) - Apple Inc AAPL.O wants India to account for up to 25% of its production from about 5%-7% now, the trade minister told a conference on Monday, as the iPhone maker continues to move its manufacturing away from China.
"Apple, another success story," Piyush Goyal said, pitching India as a competitive manufacturing destination. "They are already at about 5-7% of their manufacturing in India. If I am not mistaken, they are targeting to go up to 25% of their manufacturing. They launched the most recent models from India, manufactured in India."
Goyal did not say when Apple wants to meet the target. Apple did not immediately respond to a request for comment.
Cupertino, California-based Apple has bet big on India since it began iPhone assembly in the country in 2017 via Wistron 3231.TW and later with Foxconn 2317.TW, in line with the Indian government's push for local manufacturing.
Foxconn plans to quadruple the workforce at its iPhone factory in India over two years, sources told Reuters late last year.
Ashwini Vaishnaw, Indian's electronics and information technology minister, tweeted on Monday that Apple's exports from India had hit $1 billion in December.
China's COVID-related lockdowns and restrictions, and rising trade and geopolitical tensions between Beijing and Washington, have influenced Apple's plans to shift production elsewhere.
J.P.Morgan analysts estimated last year that a quarter of all Apple products would be made outside China by 2025, from 5% currently.
(Reporting by Shivangi Acharya and Tanvi Mehta, writing by Sudipto Ganguly; Editing by Krishna N. Das)
((sudipto.ganguly@thomsonreuters.com; +91 7738571441; Twitter: @Sudipto_Reuters;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Adds details, background NEW DELHI, Jan 23 (Reuters) - Apple Inc AAPL.O wants India to account for up to 25% of its production from about 5%-7% now, the trade minister told a conference on Monday, as the iPhone maker continues to move its manufacturing away from China. Cupertino, California-based Apple has bet big on India since it began iPhone assembly in the country in 2017 via Wistron 3231.TW and later with Foxconn 2317.TW, in line with the Indian government's push for local manufacturing. China's COVID-related lockdowns and restrictions, and rising trade and geopolitical tensions between Beijing and Washington, have influenced Apple's plans to shift production elsewhere.
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Adds details, background NEW DELHI, Jan 23 (Reuters) - Apple Inc AAPL.O wants India to account for up to 25% of its production from about 5%-7% now, the trade minister told a conference on Monday, as the iPhone maker continues to move its manufacturing away from China. They launched the most recent models from India, manufactured in India." Foxconn plans to quadruple the workforce at its iPhone factory in India over two years, sources told Reuters late last year.
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Adds details, background NEW DELHI, Jan 23 (Reuters) - Apple Inc AAPL.O wants India to account for up to 25% of its production from about 5%-7% now, the trade minister told a conference on Monday, as the iPhone maker continues to move its manufacturing away from China. "Apple, another success story," Piyush Goyal said, pitching India as a competitive manufacturing destination. Cupertino, California-based Apple has bet big on India since it began iPhone assembly in the country in 2017 via Wistron 3231.TW and later with Foxconn 2317.TW, in line with the Indian government's push for local manufacturing.
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Adds details, background NEW DELHI, Jan 23 (Reuters) - Apple Inc AAPL.O wants India to account for up to 25% of its production from about 5%-7% now, the trade minister told a conference on Monday, as the iPhone maker continues to move its manufacturing away from China. "They are already at about 5-7% of their manufacturing in India. Apple did not immediately respond to a request for comment.
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17494.0
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2023-01-23 00:00:00 UTC
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Is John Hancock Multifactor Large Cap ETF (JHML) a Strong ETF Right Now?
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AAPL
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https://www.nasdaq.com/articles/is-john-hancock-multifactor-large-cap-etf-jhml-a-strong-etf-right-now-4
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The John Hancock Multifactor Large Cap ETF (JHML) made its debut on 09/28/2015, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - Large Cap Blend 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.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.
The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.
Fund Sponsor & Index
The fund is managed by John Hancock, and has been able to amass over $750.94 million, which makes it one of the larger ETFs in the Style Box - Large Cap Blend. JHML seeks to match the performance of the John Hancock Dimensional Large Cap Index before fees and expenses.
The John Hancock Dimensional Large Cap Index comprises of a subset of securities in the U.S. Universe issued by companies whose market capitalizations are larger than that of the 801st largest U.S. company.
Cost & Other Expenses
Expense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.
Annual operating expenses for this ETF are 0.29%, making it on par with most peer products in the space.
The fund has a 12-month trailing dividend yield of 1.41%.
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.
JHML's heaviest allocation is in the Information Technology sector, which is about 22.30% of the portfolio. Its Healthcare and Financials round out the top three.
When you look at individual holdings, Microsoft Corp (MSFT) accounts for about 3.46% of the fund's total assets, followed by Apple Inc (AAPL) and Amazon.com Inc (AMZN).
JHML's top 10 holdings account for about 15.01% of its total assets under management.
Performance and Risk
The ETF has added about 3.51% so far this year and is down about -7.50% in the last one year (as of 01/23/2023). In the past 52-week period, it has traded between $45.43 and $57.85.
The ETF has a beta of 1.01 and standard deviation of 25.33% for the trailing three-year period, making it a medium risk choice in the space. With about 771 holdings, it effectively diversifies company-specific risk.
Alternatives
John Hancock Multifactor Large Cap ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Blend segment of the market. However, there are other ETFs in the space which investors could consider.
IShares Core S&P 500 ETF (IVV) tracks S&P 500 Index and the SPDR S&P 500 ETF (SPY) tracks S&P 500 Index. IShares Core S&P 500 ETF has $298.01 billion in assets, SPDR S&P 500 ETF has $369.88 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Blend.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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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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John Hancock Multifactor Large Cap ETF (JHML): 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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When you look at individual holdings, Microsoft Corp (MSFT) accounts for about 3.46% of the fund's total assets, followed by Apple Inc (AAPL) and Amazon.com Inc (AMZN). Click to get this free report John Hancock Multifactor Large Cap ETF (JHML): 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 smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting.
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Click to get this free report John Hancock Multifactor Large Cap ETF (JHML): 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. When you look at individual holdings, Microsoft Corp (MSFT) accounts for about 3.46% of the fund's total assets, followed by Apple Inc (AAPL) and Amazon.com Inc (AMZN). Alternatives John Hancock Multifactor Large Cap ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Blend segment of the market.
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Click to get this free report John Hancock Multifactor Large Cap ETF (JHML): 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. When you look at individual holdings, Microsoft Corp (MSFT) accounts for about 3.46% of the fund's total assets, followed by Apple Inc (AAPL) and Amazon.com Inc (AMZN). The John Hancock Multifactor Large Cap ETF (JHML) made its debut on 09/28/2015, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - Large Cap Blend category of the market.
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When you look at individual holdings, Microsoft Corp (MSFT) accounts for about 3.46% of the fund's total assets, followed by Apple Inc (AAPL) and Amazon.com Inc (AMZN). Click to get this free report John Hancock Multifactor Large Cap ETF (JHML): 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 John Hancock Multifactor Large Cap ETF (JHML) made its debut on 09/28/2015, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - Large Cap Blend category of the market.
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17495.0
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2023-01-22 00:00:00 UTC
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Apple Announces New Chips -- Should Semiconductor Companies Worry?
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AAPL
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https://www.nasdaq.com/articles/apple-announces-new-chips-should-semiconductor-companies-worry
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nan
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In today's video, Jose Najarro and Nick Rossolillo discuss Apple (NASDAQ: AAPL) and the new chips powering its consumer products. Nick also shares why he prefers Apple over Intel (NASDAQ: INTC). Check out the short video to learn more, consider subscribing, and click the special offer link below.
*Stock prices used were the market prices of Jan. 18, 2023. The video was published on Jan. 19, 2023.
10 stocks we like better than Apple
When our award-winning 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 January 9, 2023
Jose Najarro has no position in any of the stocks mentioned. Nicholas Rossolillo has positions in Apple. The Motley Fool has positions in and recommends Apple and Intel. The Motley Fool recommends the following options: long January 2023 $57.50 calls on Intel, long January 2025 $45 calls on Intel, long March 2023 $120 calls on Apple, short January 2025 $45 puts on Intel, and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy. Jose Najarro is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In today's video, Jose Najarro and Nick Rossolillo discuss Apple (NASDAQ: AAPL) and the new chips powering its consumer products. Check out the short video to learn more, consider subscribing, and click the special offer link below. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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In today's video, Jose Najarro and Nick Rossolillo discuss Apple (NASDAQ: AAPL) and the new chips powering its consumer products. See the 10 stocks *Stock Advisor returns as of January 9, 2023 Jose Najarro has no position in any of the stocks mentioned. The Motley Fool recommends the following options: long January 2023 $57.50 calls on Intel, long January 2025 $45 calls on Intel, long March 2023 $120 calls on Apple, short January 2025 $45 puts on Intel, and short March 2023 $130 calls on Apple.
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In today's video, Jose Najarro and Nick Rossolillo discuss Apple (NASDAQ: AAPL) and the new chips powering its consumer products. See the 10 stocks *Stock Advisor returns as of January 9, 2023 Jose Najarro has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Intel.
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In today's video, Jose Najarro and Nick Rossolillo discuss Apple (NASDAQ: AAPL) and the new chips powering its consumer products. See the 10 stocks *Stock Advisor returns as of January 9, 2023 Jose Najarro has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Intel.
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17496.0
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2023-01-22 00:00:00 UTC
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3 Dow 30 Stocks To Watch In January 2023
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AAPL
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https://www.nasdaq.com/articles/3-dow-30-stocks-to-watch-in-january-2023
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nan
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The Dow Jones Industrial Average, also known as the Dow 30, is a stock market index that tracks the performance of 30 large, publicly traded companies in the United States. These companies are considered to be leaders in their respective industries and are considered to be a good representation of the overall health of the U.S. economy. Investing in Dow 30 stocks can be a great way for retail investors to gain exposure to some of the most well-established and financially sound companies in the country. These stocks tend to be relatively stable and have a history of steady growth, making them a popular choice for long-term investors.
Some of the most well-known companies in the Dow 30 include household names like Coca-Cola (NYSE: KO), and McDonald’s (NYSE: MCD). These companies have a proven track record of success and are likely to continue to be profitable in the future. Other companies in the Dow 30 include newer technology companies like Intel, Cisco Systems, and Microsoft. Investing in Dow 30 stocks can also be a great way to diversify your portfolio, as these companies operate in a variety of industries. This can help to reduce risk and increase the chances of earning a return on your investment.
It’s important to do your own research before making any investment decisions. The Dow 30 is a great choice for retail investors looking for a stable and diversified way to invest in the stock market. With a mix of well-established and newer companies, the Dow 30 offers something for everyone. However, as with any investment, it’s important to consider your own financial goals and risk tolerance before making a decision. With that, let’s look at three top Dow 30 stocks for your watchlist this week.
Dow 30 Stocks To Buy [Or Sell] Right Now
Apple Inc. (NASDAQ: AAPL)
American Express Company (NYSE: AXP)
The Travelers Companies Inc. (NYSE: TRV)
Apple (AAPL Stock)
To begin, Apple Inc. is a multinational technology company. In detail, the company designs, develops and sells consumer electronics, computer software, and online services. It is known for producing popular products such as the iPhone, iPad, and Mac computers, as well as the iTunes media player and the App Store.
This month Apple Apple introduced a new version of their smart speaker, the HomePod. The new HomePod is designed to deliver superior sound quality and comes packed with Apple’s latest innovations and Siri intelligence. The speaker is able to support immersive Spatial Audio tracks and offers advanced computational audio for a unique listening experience. Additionally, the new HomePod includes new features such as the ability to use Siri to manage tasks and control the smart home and more.
So far this year, shares of AAPL have started to rebound by 10.23% as of Friday’s closing bell. Meanwhile, looking ahead to Monday’s trading session, shares of Apple stock look set to open at around $138.10 a share.
Source: TD Ameritrade TOS
[Read More] Best Gold Stocks To Buy In January 2023? 3 To Watch
American Express (AXP Stock)
Next, American Express Company (AXP) is a global financial services corporation. For starters, American Express provides credit cards, charge cards, and travel-related services to consumers and businesses. It is one of the most well-established and recognizable brands in the credit card industry, and it is known for its high-end rewards programs and premium customer service.
Last week, American Express announced it is acquiring Nipendo, a B2B payments automation company, to help create a leading end-to-end B2B platform and make business payments simpler and more efficient. Nipendo’s platform allows businesses to easily connect, communicate, and automate Procure-to-Pay processes. American Express will integrate Nipendo’s team, technology, and capabilities to expand its offerings for businesses.
In 2023 YTD, AXP Stock has increased by 3.05%. Meanwhile, as of Friday’s closing bell, shares of AXP stock closed higher on the day by 3.23% at $151.60 a share.
Source: TD Ameritrade TOS
[Read More] 3 Semiconductor Stocks For Your January 2023 Watchlist
Travelers Companies (TRV Stock)
Lastly, The Travelers Companies Inc. (TRV) is a provider of property and casualty insurance for businesses and individuals. In detail, the company offers a wide range of insurance products. This includes auto, home, and commercial insurance, as well as coverage for specialty lines such as workers’ compensation and umbrella liability.
Just last week, Travelers Companies announced its preliminary results for the fourth quarter of 2022. In detail, the company reported a preliminary net income of $819 million and a core income of $810 million. The results also include an estimate for catastrophe losses of $459 million pre-tax, which primarily resulted from the significant winter storm that impacted much of the U.S. and Canada in late December. These losses were factored into the final figures and were net of reinsurance.
Shares of TRV stock outperformed the broader markets in 2022. Though, so far this year, TRV stock is down slightly by 0.96% YTD. Meanwhile, as of Friday’s closing bell, shares of TRV stock closed the day green by 0.70% at $185.33 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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Dow 30 Stocks To Buy [Or Sell] Right Now Apple Inc. (NASDAQ: AAPL) American Express Company (NYSE: AXP) The Travelers Companies Inc. (NYSE: TRV) Apple (AAPL Stock) To begin, Apple Inc. is a multinational technology company. So far this year, shares of AAPL have started to rebound by 10.23% as of Friday’s closing bell. Investing in Dow 30 stocks can be a great way for retail investors to gain exposure to some of the most well-established and financially sound companies in the country.
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Dow 30 Stocks To Buy [Or Sell] Right Now Apple Inc. (NASDAQ: AAPL) American Express Company (NYSE: AXP) The Travelers Companies Inc. (NYSE: TRV) Apple (AAPL Stock) To begin, Apple Inc. is a multinational technology company. So far this year, shares of AAPL have started to rebound by 10.23% as of Friday’s closing bell. 3 To Watch American Express (AXP Stock) Next, American Express Company (AXP) is a global financial services corporation.
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Dow 30 Stocks To Buy [Or Sell] Right Now Apple Inc. (NASDAQ: AAPL) American Express Company (NYSE: AXP) The Travelers Companies Inc. (NYSE: TRV) Apple (AAPL Stock) To begin, Apple Inc. is a multinational technology company. So far this year, shares of AAPL have started to rebound by 10.23% as of Friday’s closing bell. 3 To Watch American Express (AXP Stock) Next, American Express Company (AXP) is a global financial services corporation.
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Dow 30 Stocks To Buy [Or Sell] Right Now Apple Inc. (NASDAQ: AAPL) American Express Company (NYSE: AXP) The Travelers Companies Inc. (NYSE: TRV) Apple (AAPL Stock) To begin, Apple Inc. is a multinational technology company. So far this year, shares of AAPL have started to rebound by 10.23% as of Friday’s closing bell. The Dow 30 is a great choice for retail investors looking for a stable and diversified way to invest in the stock market.
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17497.0
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2023-01-22 00:00:00 UTC
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If I Could Buy Only 1 Stock, This Would Be It
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AAPL
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https://www.nasdaq.com/articles/if-i-could-buy-only-1-stock-this-would-be-it-7
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nan
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nan
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I love to pick stocks. There's nothing quite like the thrill of researching a company, analyzing its financials, digging into its business model, and making a decision on where my investment-ready cash is going. And then I get to show you the whole process, from finding the first glimmer of promise to slamming the "buy" button with both hands. It's what I do, and I wouldn't change it for the world.
But selecting stocks one by one works only as long as I get to grab a whole bunch of them. You know what they say about eggs and baskets.
The thrills and spills of stock-picking
There is no such thing as a risk-free investment.
For instance, Netflix (NASDAQ: NFLX) continues to deliver fantastic results and great shareholder value. This stock has made me a lot of money over the years, but the media-streaming expert's stock is also prone to deep dives every now and then. What if I needed to cash in my Netflix stock at the bottom of the Qwikster conundrum, or after a slowdown in subscriber growth drove share prices 77% lower in 2022? Clearly, this ticker isn't suitable for a full commitment to a single ticker.
And Netflix isn't uniquely risk-packed. In fact, every business always faces a mix of obvious and unknown risks. Google parent Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) may have looked invulnerable for years, but now everyone is concerned about artificial intelligence bots stealing the online search market. Oil giants like Chevron (NYSE: CVX) and ExxonMobil (NYSE: XOM) used to be paragons of unassailable value, but now they face challenges from renewable energy sources and electric vehicles.
And it gets worse, too. Enron was the kind of highly respected blue chip were people would feel comfortable parking their entire life savings and nest eggs. Lehman Brothers was the fourth-largest investment bank in America, actively advising people on how their money should be managed. Going all-in on Lehman stock in 2008 or Enron in 2001 would quickly leave you with nothing. Remember, these were highly respectable businesses, until they weren't.
Finding inspiration in Berkshire Hathaway
Stock-picking can work, but only if you set up a diverse portfolio across different industries, geographies, and business models.
Look at Warren Buffett's Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) as a great example to follow. To simplify Berkshire's investment history, its portfolio was built around insurance companies and banks, then extended into retailers and restaurant chains. Today, Berkshire's holdings have expanded into sectors Buffett would never have touched ten or twenty years ago, like video game studios and microchip makers.
And Apple (NASDAQ: AAPL) accounts for 42% of Berkshire's invested assets. The iPhone maker's portion of the Berkshire collection is so large, I wouldn't be surprised to see Buffett's team taking some of their Apple profits off the table to redeploy it in other ideas. It's one thing to let your winners run, and another to let them dominate your portfolio.
I don't care how respectable your favorite company is, how guaranteed its long-term success might be, nor how much you trust its management. There is no single stock, bond, cryptocurrency, real estate parcel, or other one-trick pony that can be trusted to carry your entire net worth.
Even the safest bets aren't worth the risk. No, not even Berkshire Hathaway, even though its own investments constitute a broadly diversified portfolio. How deep is Berkshire's bench when Warren Buffett and Charlie Munger aren't running the show anymore? Owning some Berkshire stock makes sense, and you could make it the centerpiece of your own stock holdings with an oversize investment. But it shouldn't be 100% of your nest egg.
ETFs: The ultimate stock market safety net
If you really can't -- or don't want to -- piece together your own stock collection with a couple of dozen tickers, there is still an easy way out. The trick is to choose a passive exchange-traded fund (ETF) that simply tracks a popular market index with dozens, hundreds, or even thousands of stocks. If one or more of the individual companies inside your chosen index turns out to be a bad egg, you'll see a limited price drop in your ETF but life goes on. The failed stock will soon be replaced and you'll continue to share the gains of the broader market.
Popular options include ETFs mirroring the components of the S&P 500 (SNPINDEX: ^GSPC) or Russell 3000 indexes. Passive funds like the Vanguard 500 Index Fund (NYSEMKT: VOO) and iShares Russell 3000 (NYSEMKT: IWV) offer large collections of diverse stocks, featuring expense ratios that are low because of the automated nature of index-tracking investments.
So if I could only pick one ticker to hold my life savings, it would be one of these index-tracking ETFs. There is really no other choice under those circumstances.
And here's the best part. You can always start your investing experience with one of these safe and sound ETFs, then add in specific tickers on top of that fundamental base as you get more comfortable with the stock market.
And if it turns out that stock picking isn't your cup of tea after all, you can always go back to the index-base ETF that got you started. Beating the market is a noble goal, but there's nothing wrong with simply matching the long-term returns of a healthy index like the S&P 500. With an average annual return of roughly 10% in the long run, you can double your money in seven years and triple it in 12.
10 stocks we like better than Vanguard S&P 500 ETF
When our award-winning 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 Vanguard S&P 500 ETF 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 January 9, 2023
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Anders Bylund has positions in Alphabet, Netflix, and Vanguard S&P 500 ETF. The Motley Fool has positions in and recommends Alphabet, Apple, Berkshire Hathaway, Netflix, and Vanguard S&P 500 ETF. The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway, long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway, short January 2023 $265 calls on Berkshire Hathaway, and short March 2023 $130 calls on 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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And Apple (NASDAQ: AAPL) accounts for 42% of Berkshire's invested assets. Today, Berkshire's holdings have expanded into sectors Buffett would never have touched ten or twenty years ago, like video game studios and microchip makers. The iPhone maker's portion of the Berkshire collection is so large, I wouldn't be surprised to see Buffett's team taking some of their Apple profits off the table to redeploy it in other ideas.
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And Apple (NASDAQ: AAPL) accounts for 42% of Berkshire's invested assets. Passive funds like the Vanguard 500 Index Fund (NYSEMKT: VOO) and iShares Russell 3000 (NYSEMKT: IWV) offer large collections of diverse stocks, featuring expense ratios that are low because of the automated nature of index-tracking investments. The Motley Fool has positions in and recommends Alphabet, Apple, Berkshire Hathaway, Netflix, and Vanguard S&P 500 ETF.
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And Apple (NASDAQ: AAPL) accounts for 42% of Berkshire's invested assets. Owning some Berkshire stock makes sense, and you could make it the centerpiece of your own stock holdings with an oversize investment. ETFs: The ultimate stock market safety net If you really can't -- or don't want to -- piece together your own stock collection with a couple of dozen tickers, there is still an easy way out.
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And Apple (NASDAQ: AAPL) accounts for 42% of Berkshire's invested assets. The trick is to choose a passive exchange-traded fund (ETF) that simply tracks a popular market index with dozens, hundreds, or even thousands of stocks. So if I could only pick one ticker to hold my life savings, it would be one of these index-tracking ETFs.
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17498.0
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2023-01-22 00:00:00 UTC
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This Oil Stock Is Beating Apple at Its Own Game
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AAPL
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https://www.nasdaq.com/articles/this-oil-stock-is-beating-apple-at-its-own-game
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nan
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nan
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Apple (NASDAQ: AAPL) does a masterful job of repurchasing its stock. While many technology companies use their free cash flow to buy back shares, most barely offset the dilution created by share-based compensation to executives and other employees. Apple, however, has retired a meaningful percentage of its stock over the years.
As good as Apple is at repurchasing shares, Marathon Oil (NYSE: MRO) might be even better. After accelerating its repurchase pace last year, the oil stock has gobbled up more shares during the previous five years than the tech giant. That strategy could enable the company to put up Apple-like total returns in the coming years.
Following Apple's capital return strategy
Apple is a cash-flow machine. The tech titan grew its operating cash flow by over $18.0 billion last year to more than $122.0 billion. It returned the lion's share of that money to shareholders by repurchasing $89.4 billion of its stock and paying $14.8 billion in dividends. Those repurchases have reduced the company's outstanding shares by almost 2% over the past year.
While Marathon Oil's business doesn't consistently generate free cash flow, the company can produce a gusher of excess cash when oil prices are higher, which was the case last year. The oil and gas producer was on pace to generate over $4.0 billion in free cash flow. It has been returning most of its windfall to shareholders through repurchases and a rapidly rising dividend.
Marathon has repurchased $3.4 billion of its shares since achieving its leverage target in October 2021, reducing its outstanding share count by a staggering 20% from its level at that time. That's the most meaningful reduction in outstanding shares in the oil patch.
It also put it ahead of Apple in reducing its outstanding shares over the last five years:
AAPL Average Diluted Shares Outstanding (Quarterly) data by YCharts.
The fuel for Apple-like total returns
Marathon hopes that by following in Apple's footsteps, it can mirror the tech company's success in creating value for shareholders. Apple's steadily declining share count and the consistently rising dividend have enabled it to produce powerful total returns over the last five years. Apple has delivered a nearly 26% average annual total return, which has crushed the S&P 500's 8.9% average annual total return during that timeframe.
Marathon has roughly matched the S&P 500's total return during that time frame. That's because it hasn't consistently returned capital to shareholders due to volatility in the oil market and some balance sheet issues. However, the company has spent the past few years repositioning its portfolio toward higher-margin oil fields and strengthening its balance sheet. That put it in a better position to generate consistent cash flow.
The oil company has also set targets to return cash to shareholders. That includes paying a competitive and sustainable base dividend it aims to increase consistently. Further, it plans to return a growing portion of its operating cash flow at higher oil prices to investors via repurchases.
The company's new capital return strategy has paid big dividends for shareholders since it achieved its balance sheet target in October 2021. The company has increased its dividend in six of the last seven quarters (growing it by over 200% since early 2021) and has repurchased a big chunk of its outstanding stock. That has helped fuel a total return of more than 90% since the third quarter of 2021. Given the company's priority on reducing its outstanding shares, it could continue to produce Apple-like total returns if oil prices remain elevated.
A stock-buyback leader
Apple does an excellent job of repurchasing its stock to reduce outstanding shares and enhance shareholder value meaningfully. However, after accelerating its buyback game last year, Marathon Oil is beating the tech giant at gobbling up its outstanding shares. That enabled it to produce Apple-like returns last year -- a feat it could continue in the future.
10 stocks we like better than Marathon Oil
When our award-winning 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 Marathon Oil 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 January 9, 2023
Matthew DiLallo has positions in Apple and has the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has positions in and recommends Apple. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on 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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Apple (NASDAQ: AAPL) does a masterful job of repurchasing its stock. It also put it ahead of Apple in reducing its outstanding shares over the last five years: AAPL Average Diluted Shares Outstanding (Quarterly) data by YCharts. While many technology companies use their free cash flow to buy back shares, most barely offset the dilution created by share-based compensation to executives and other employees.
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Apple (NASDAQ: AAPL) does a masterful job of repurchasing its stock. It also put it ahead of Apple in reducing its outstanding shares over the last five years: AAPL Average Diluted Shares Outstanding (Quarterly) data by YCharts. While Marathon Oil's business doesn't consistently generate free cash flow, the company can produce a gusher of excess cash when oil prices are higher, which was the case last year.
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Apple (NASDAQ: AAPL) does a masterful job of repurchasing its stock. It also put it ahead of Apple in reducing its outstanding shares over the last five years: AAPL Average Diluted Shares Outstanding (Quarterly) data by YCharts. While Marathon Oil's business doesn't consistently generate free cash flow, the company can produce a gusher of excess cash when oil prices are higher, which was the case last year.
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It also put it ahead of Apple in reducing its outstanding shares over the last five years: AAPL Average Diluted Shares Outstanding (Quarterly) data by YCharts. Apple (NASDAQ: AAPL) does a masterful job of repurchasing its stock. That strategy could enable the company to put up Apple-like total returns in the coming years.
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17499.0
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2023-01-22 00:00:00 UTC
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Warren Buffett Has $32 Billion in These 5 Stocks
|
AAPL
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https://www.nasdaq.com/articles/warren-buffett-has-%2432-billion-in-these-5-stocks
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nan
|
nan
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Warren Buffett is unparalleled as both a CEO and stock picker. And while almost all of his wealth is in Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) shares, more than 40% of Berkshire's value is in its stock portfolio. In this video, Motley Fool contributors Jason Hall and Jeff Santoro break down the five most valuable stocks in the Berkshire portfolio. Combined, they make up 30% of Buffett's $110 billion net worth.
*Stock prices used were from the afternoon of Jan. 13, 2022. The video was published on Jan. 13, 2022.
10 stocks we like better than Berkshire Hathaway
When our award-winning 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 Berkshire Hathaway 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 January 9, 2023
Bank of America is an advertising partner of The Ascent, a Motley Fool company. American Express is an advertising partner of The Ascent, a Motley Fool company. Jason Hall has no position in any of the stocks mentioned. Jeff Santoro has positions in Apple and Berkshire Hathaway. The Motley Fool has positions in and recommends Apple, Bank of America, Berkshire Hathaway, and Moody's. The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway, long January 2024 $47.50 calls on Coca-Cola, long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway, short January 2023 $265 calls on Berkshire Hathaway, and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy. Jason Hall 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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In this video, Motley Fool contributors Jason Hall and Jeff Santoro break down the five most valuable stocks in the Berkshire portfolio. 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, Bank of America, Berkshire Hathaway, and Moody's.
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See the 10 stocks *Stock Advisor returns as of January 9, 2023 Bank of America is an advertising partner of The Ascent, a Motley Fool company. The Motley Fool has positions in and recommends Apple, Bank of America, Berkshire Hathaway, and Moody's. The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway, long January 2024 $47.50 calls on Coca-Cola, long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway, short January 2023 $265 calls on Berkshire Hathaway, and short March 2023 $130 calls on Apple.
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In this video, Motley Fool contributors Jason Hall and Jeff Santoro break down the five most valuable stocks in the Berkshire portfolio. See the 10 stocks *Stock Advisor returns as of January 9, 2023 Bank of America is an advertising partner of The Ascent, a Motley Fool company. The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway, long January 2024 $47.50 calls on Coca-Cola, long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway, short January 2023 $265 calls on Berkshire Hathaway, and short March 2023 $130 calls on Apple.
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In this video, Motley Fool contributors Jason Hall and Jeff Santoro break down the five most valuable stocks in the Berkshire portfolio. See the 10 stocks *Stock Advisor returns as of January 9, 2023 Bank of America is an advertising partner of The Ascent, a Motley Fool company. Jeff Santoro has positions in Apple and Berkshire Hathaway.
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