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710300.0 | 2014-08-15 00:00:00 UTC | Ducommun (DCO) Stock: Moving Average Crossover Alert - Tale of the Tape | DCO | https://www.nasdaq.com/articles/ducommun-dco-stock%3A-moving-average-crossover-alert-tale-of-the-tape-2014-08-15 | nan | nan | Ducommun Inc. ( DCO ) may be a solid choice for technical investors, as the firm saw some good news with its moving average crossover. DCO just saw its 50 Day Moving Average break out above its 200 Day Simple Moving Average, meaning that there could be some short-term bullishness for the stock.
You could definitely argue that this has already started to take place, as shares of DCO have jumped by 27.3% in the trailing 4 weeks. If that wasn't enough, the company currently possesses a Zacks Rank #1 (Strong Buy), so it could have more room to run in the weeks ahead too.
More bullishness may especially be the case when investors consider what has been happening for DCO on the earnings estimate revision front lately. No estimate has gone lower in the past two months, compared to 4 higher, while the consensus estimate has also moved higher too.
So given this move in estimates, and the positive technical factors, investors may want to watch this breakout candidate closely for more gains in the near future.
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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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Ducommun Inc. ( DCO ) may be a solid choice for technical investors, as the firm saw some good news with its moving average crossover. DCO just saw its 50 Day Moving Average break out above its 200 Day Simple Moving Average, meaning that there could be some short-term bullishness for the stock. You could definitely argue that this has already started to take place, as shares of DCO have jumped by 27.3% in the trailing 4 weeks. | Click to get this free report DUCOMMUN INC DE (DCO): Free Stock Analysis Report To read this article on Zacks.com click here. Ducommun Inc. ( DCO ) may be a solid choice for technical investors, as the firm saw some good news with its moving average crossover. DCO just saw its 50 Day Moving Average break out above its 200 Day Simple Moving Average, meaning that there could be some short-term bullishness for the stock. | DCO just saw its 50 Day Moving Average break out above its 200 Day Simple Moving Average, meaning that there could be some short-term bullishness for the stock. Click to get this free report DUCOMMUN INC DE (DCO): Free Stock Analysis Report To read this article on Zacks.com click here. Ducommun Inc. ( DCO ) may be a solid choice for technical investors, as the firm saw some good news with its moving average crossover. | Ducommun Inc. ( DCO ) may be a solid choice for technical investors, as the firm saw some good news with its moving average crossover. DCO just saw its 50 Day Moving Average break out above its 200 Day Simple Moving Average, meaning that there could be some short-term bullishness for the stock. You could definitely argue that this has already started to take place, as shares of DCO have jumped by 27.3% in the trailing 4 weeks. | 9c1ee1f4-252a-47f9-9b2a-8840affa2f85 |
710301.0 | 2014-08-15 00:00:00 UTC | Triumph Group Operational Efforts to Counter Harsh Budgets - Analyst Blog | DCO | https://www.nasdaq.com/articles/triumph-group-operational-efforts-to-counter-harsh-budgets-analyst-blog-2014-08-15 | nan | nan | On Aug 14, we have issued an updated research report on Triumph Group, Inc. ( TGI ). Systematic investment in strategic acquisitions, stable backlog, steady flow of contract wins and practice of paying dividends at regular intervals are expected to boost this aerospace and defense product and service provider's future performance. However, over-dependence on government spending and volatility in commodity prices are causes of concern.
Triumph Group, a Zacks Rank #2 (Buy) stock, reported unfavorable results in the first quarter of fiscal year 2015. The company's earnings per share and revenues missed the Zacks Consensus Estimate and decreased year over year, mainly due to lower organic sales as a result of production rate cuts on the 747-8 and V-22 programs.
Triumph Group is however continuously expanding its product offering through acquisitions and the addition of products and services. Recently, the company acquired the hydraulic actuation business of GE Aviation, a subsidiary of General Electric Company ( GE ), for $70 million. The acquisition will enable Triumph Group to enhance its product portfolio, thereby meeting increasing customer demand from the commercial, business and military jet markets. Earlier, the company had completed a number of significant acquisitions, including the Insulfab product line from Chase Corporation and General Donlee Canada Inc.
At the end of the fiscal first quarter, Triumph Group had an order backlog of $5.01 billion. During the quarter, the company won several important contracts from Airbus and The Boeing Company ( BA ). A steady flow of contract wins will boost Triumph Group's future cash inflows.
In addition, Triumph Group continues to share profits with its shareholders through the payment of dividends and an effective share repurchase program. These initiatives will enable the company to retain investors' interest in the stock.
On the flip side, declining spending trend in the military end market is expected to continue unabated as defense budgets come increasingly under pressure. This may negatively impact Triumph Group's order book due to cancellation of existing orders or not wining enough of new ones.
Key Picks from the Sector
Besides Triumph Group, another stock worth considering in the same sector is Ducommun Inc. ( DCO ), which carries a Zacks Rank #1 (Strong Buy).
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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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Key Picks from the Sector Besides Triumph Group, another stock worth considering in the same sector is Ducommun Inc. ( DCO ), which carries a Zacks Rank #1 (Strong Buy). Click to get this free report BOEING CO (BA): Free Stock Analysis Report TRIUMPH GRP INC (TGI): Free Stock Analysis Report GENL ELECTRIC (GE): Free Stock Analysis Report DUCOMMUN INC DE (DCO): Free Stock Analysis Report To read this article on Zacks.com click here. Systematic investment in strategic acquisitions, stable backlog, steady flow of contract wins and practice of paying dividends at regular intervals are expected to boost this aerospace and defense product and service provider's future performance. | Click to get this free report BOEING CO (BA): Free Stock Analysis Report TRIUMPH GRP INC (TGI): Free Stock Analysis Report GENL ELECTRIC (GE): Free Stock Analysis Report DUCOMMUN INC DE (DCO): Free Stock Analysis Report To read this article on Zacks.com click here. Key Picks from the Sector Besides Triumph Group, another stock worth considering in the same sector is Ducommun Inc. ( DCO ), which carries a Zacks Rank #1 (Strong Buy). Triumph Group, a Zacks Rank #2 (Buy) stock, reported unfavorable results in the first quarter of fiscal year 2015. | Click to get this free report BOEING CO (BA): Free Stock Analysis Report TRIUMPH GRP INC (TGI): Free Stock Analysis Report GENL ELECTRIC (GE): Free Stock Analysis Report DUCOMMUN INC DE (DCO): Free Stock Analysis Report To read this article on Zacks.com click here. Key Picks from the Sector Besides Triumph Group, another stock worth considering in the same sector is Ducommun Inc. ( DCO ), which carries a Zacks Rank #1 (Strong Buy). Triumph Group, a Zacks Rank #2 (Buy) stock, reported unfavorable results in the first quarter of fiscal year 2015. | Key Picks from the Sector Besides Triumph Group, another stock worth considering in the same sector is Ducommun Inc. ( DCO ), which carries a Zacks Rank #1 (Strong Buy). Click to get this free report BOEING CO (BA): Free Stock Analysis Report TRIUMPH GRP INC (TGI): Free Stock Analysis Report GENL ELECTRIC (GE): Free Stock Analysis Report DUCOMMUN INC DE (DCO): Free Stock Analysis Report To read this article on Zacks.com click here. Triumph Group, a Zacks Rank #2 (Buy) stock, reported unfavorable results in the first quarter of fiscal year 2015. | b6638467-1475-465d-9874-752be16300db |
710302.0 | 2014-08-06 00:00:00 UTC | Ducommun (DCO) Shares March Higher, Can It Continue? - Tale of the Tape | DCO | https://www.nasdaq.com/articles/ducommun-dco-shares-march-higher-can-it-continue-tale-of-the-tape-2014-08-06 | nan | nan | As of late, it has definitely been a great time to be an investor in Ducommun Incorporated ( DCO ) . The stock has moved higher by 10.4% in the past month, while it is also above its 20 Day SMA too. This combination of strong price performance and favorable technical, could suggest that the stock may be on the right path.
We certainly think that this might be the case, particularly if you consider DCO's recent earnings estimate revision activity. From this look, the company's future is quite favorable; as DCO has earned itself a Zacks Rank #1(Strong Buy), meaning that its recent run may continue for a bit longer, and that this isn't the top for the in-focus company.
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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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | As of late, it has definitely been a great time to be an investor in Ducommun Incorporated ( DCO ) . From this look, the company's future is quite favorable; as DCO has earned itself a Zacks Rank #1(Strong Buy), meaning that its recent run may continue for a bit longer, and that this isn't the top for the in-focus company. We certainly think that this might be the case, particularly if you consider DCO's recent earnings estimate revision activity. | Click to get this free report DUCOMMUN INC DE (DCO): Free Stock Analysis Report To read this article on Zacks.com click here. As of late, it has definitely been a great time to be an investor in Ducommun Incorporated ( DCO ) . We certainly think that this might be the case, particularly if you consider DCO's recent earnings estimate revision activity. | From this look, the company's future is quite favorable; as DCO has earned itself a Zacks Rank #1(Strong Buy), meaning that its recent run may continue for a bit longer, and that this isn't the top for the in-focus company. Click to get this free report DUCOMMUN INC DE (DCO): Free Stock Analysis Report To read this article on Zacks.com click here. As of late, it has definitely been a great time to be an investor in Ducommun Incorporated ( DCO ) . | As of late, it has definitely been a great time to be an investor in Ducommun Incorporated ( DCO ) . We certainly think that this might be the case, particularly if you consider DCO's recent earnings estimate revision activity. From this look, the company's future is quite favorable; as DCO has earned itself a Zacks Rank #1(Strong Buy), meaning that its recent run may continue for a bit longer, and that this isn't the top for the in-focus company. | f067393c-0813-4126-a267-c7099824ad74 |
710303.0 | 2014-08-06 00:00:00 UTC | Earnings Estimates Moving Higher for Ducommun (DCO): Time to Buy? - Tale of the Tape | DCO | https://www.nasdaq.com/articles/earnings-estimates-moving-higher-for-ducommun-dco%3A-time-to-buy-tale-of-the-tape-2014-08-06 | nan | nan | Ducommun Inc. ( DCO ) is a Carson based aerospace, defense products and services provider that could be an interesting play for investors. That is because, not only does the stock have decent short-term momentum, but it is seeing solid activity on the earnings estimate revision front as well.
These positive earnings estimate revisions suggest that analysts are becoming more optimistic on DCO's earnings for the coming quarter and year. In fact, consensus estimates have moved sharply higher for both of these time frames over the past four weeks, suggesting that Ducommun could be a solid choice for investors.
Current Quarter Estimates for DCO
In the past 30 days, 4 estimates have gone higher for Ducommun while none have gone lower in the same time period. The trend has been pretty favorable too, with estimates increasing from 40 cents a share 30 days ago, to 49 cents today, a move of 22.5%.
Current Year Estimates for DCO
Meanwhile, Ducommun's current year figures are also looking quite promising, with 4 estimates moving higher in the past month, compared to none lower. The consensus estimate trend has also seen a boost for this time frame, increasing from $1.62 per share 30 days ago to $1.94 per share today, an increase of 20.0%.
Bottom Line
The stock has also started to move higher lately, adding 7.8% over the past four weeks, suggesting that investors are starting to take note of this impressive story. So investors may definitely want to consider this Zacks Rank #1 (Strong Buy) stock to profit in the near future.
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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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Ducommun Inc. ( DCO ) is a Carson based aerospace, defense products and services provider that could be an interesting play for investors. These positive earnings estimate revisions suggest that analysts are becoming more optimistic on DCO's earnings for the coming quarter and year. Current Quarter Estimates for DCO In the past 30 days, 4 estimates have gone higher for Ducommun while none have gone lower in the same time period. | Current Year Estimates for DCO Meanwhile, Ducommun's current year figures are also looking quite promising, with 4 estimates moving higher in the past month, compared to none lower. Ducommun Inc. ( DCO ) is a Carson based aerospace, defense products and services provider that could be an interesting play for investors. These positive earnings estimate revisions suggest that analysts are becoming more optimistic on DCO's earnings for the coming quarter and year. | Current Quarter Estimates for DCO In the past 30 days, 4 estimates have gone higher for Ducommun while none have gone lower in the same time period. Current Year Estimates for DCO Meanwhile, Ducommun's current year figures are also looking quite promising, with 4 estimates moving higher in the past month, compared to none lower. Ducommun Inc. ( DCO ) is a Carson based aerospace, defense products and services provider that could be an interesting play for investors. | Current Quarter Estimates for DCO In the past 30 days, 4 estimates have gone higher for Ducommun while none have gone lower in the same time period. Ducommun Inc. ( DCO ) is a Carson based aerospace, defense products and services provider that could be an interesting play for investors. These positive earnings estimate revisions suggest that analysts are becoming more optimistic on DCO's earnings for the coming quarter and year. | 4c829e1a-4d9a-41f7-b1f1-ce0a94bf137a |
710304.0 | 2014-08-05 00:00:00 UTC | Bloomin' Brands Falls After Weak Results; Chegg Shares Spike Higher | DCO | https://www.nasdaq.com/articles/bloomin-brands-falls-after-weak-results-chegg-shares-spike-higher-2014-08-05 | nan | nan | Midway through trading Tuesday, the Dow traded down 0.40 percent to 16,503.65 while the NASDAQ tumbled 0.27 percent to 4,372.00. The S&P also fell, dropping 0.43 percent to 1,930.71.
Leading and Lagging Sectors
In trading on Tuesday, industrials shares rose by 0.07 percent. Top gainers in the sector included Mueller Water Products (NYSE: MWA ), Ducommun (NYSE: DCO ), and The KEYW Holding (NASDAQ: KEYW ).
Energy shares tumbled by 1.36 percent in today's trading. Meanwhile, top losers in the sector included CARBO Ceramics (NYSE: CRR ), down 12.3 percent, and Approach Resources (NASDAQ: AREX ), off 13.2 percent.
Top Headline
Coach (NYSE: COH ) reported stronger-than-expected fiscal fourth-quarter profit.
The New York-based company posted a quarterly profit of $75.3 million, or $0.27 per share, versus a year-ago profit of $221.3 million, or $0.78 per share. Excluding special items, Coach's earnings fell to $0.59 per share from $0.89 per share.
Its sales slipped 7.1% to $1.14 billion. On a constant currency basis, sales fell 6%. However, analysts were estimating earnings of $0.53 per share on sales of $1.09 billion.
Equities Trading UP
Chegg (NYSE: CHGG ) shares shot up 18.34 percent to $6.97 on Q2 results. The company reported Q2 earnings of $0.00 per share on revenue of $64.50 million..
Shares of Mueller Water Products (NYSE: MWA ) got a boost, shooting up 14.47 percent to $8.94 after the company reported Q3 earnings of $0.11 per share on revenue of $318.50 million. Brean Capital upgraded the stock from Hold to Buy.
GT Advanced Technologies (NASDAQ: GTAT ) shares were also up, gaining 6.22 percent to $15.01 after the company issued a strong full-year 2014 adjusted profit forecast. It reported Q2 adjusted loss of $0.16 per share on sales of $58 million.
Equities Trading DOWN
Shares of RetailMeNot (NASDAQ: SALE ) were down 26.38 percent to $18.63 after the company reported Q2 earnings of $0.08 per share on revenue of $59.50 million. RBC Capital downgraded RetailMeNot from Outperform to Sector Perform and lowered the price target from $42.00 to $24.00.
Bloomin' Brands (NASDAQ: BLMN ) shares tumbled 23.07 percent to $15.24 after the company reported weaker-than-expected Q2 earnings and issued a downbeat Q3 forecast.
Monster Worldwide (NYSE: MWW ) was down, falling 10.73 percent to $5.91 on weak Q2 results and forecast.
Commodities
In commodity news, oil traded down 0.99 percent to $97.32, while gold traded down 0.28 percent to $1,285.30.
Silver traded down 2.02 percent Tuesday to $19.83, while copper fell 1.29 percent to $3.20.
Eurozone
European shares were mostly higher today. The eurozone's STOXX 600 rose 0.29 percent, the Spanish Ibex Index dropped 1.36 percent, while Italy's FTSE MIB Index tumbled 1.62 percent. Meanwhile, the German DAX climbed 0.39 percent and the French CAC 40 jumped 0.35 percent while UK shares surged 0.09 percent.
Economics
The ICSC-Goldman Same Store Sales Index gained 0.2% in the week ended Saturday versus the earlier week.
The Johnson Redbook Retail Sales Index declined 0.4% in the first four weeks of July versus June.
US factory orders rose 1.1% in June, versus economists' expectations for a 0.6% gain.
The final reading of Markit PMI services index fell to 60.80 in July, versus a prior reading of 61. However, economists were expecting a reading of 60.80.
The ISM non-manufacturing index rose to 58.70 in July, versus a prior reading of 56. However, economists were expecting a reading of 56.10.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Top gainers in the sector included Mueller Water Products (NYSE: MWA ), Ducommun (NYSE: DCO ), and The KEYW Holding (NASDAQ: KEYW ). Top Headline Coach (NYSE: COH ) reported stronger-than-expected fiscal fourth-quarter profit. GT Advanced Technologies (NASDAQ: GTAT ) shares were also up, gaining 6.22 percent to $15.01 after the company issued a strong full-year 2014 adjusted profit forecast. | Top gainers in the sector included Mueller Water Products (NYSE: MWA ), Ducommun (NYSE: DCO ), and The KEYW Holding (NASDAQ: KEYW ). The company reported Q2 earnings of $0.00 per share on revenue of $64.50 million.. Shares of Mueller Water Products (NYSE: MWA ) got a boost, shooting up 14.47 percent to $8.94 after the company reported Q3 earnings of $0.11 per share on revenue of $318.50 million. Equities Trading DOWN Shares of RetailMeNot (NASDAQ: SALE ) were down 26.38 percent to $18.63 after the company reported Q2 earnings of $0.08 per share on revenue of $59.50 million. | Top gainers in the sector included Mueller Water Products (NYSE: MWA ), Ducommun (NYSE: DCO ), and The KEYW Holding (NASDAQ: KEYW ). The company reported Q2 earnings of $0.00 per share on revenue of $64.50 million.. Shares of Mueller Water Products (NYSE: MWA ) got a boost, shooting up 14.47 percent to $8.94 after the company reported Q3 earnings of $0.11 per share on revenue of $318.50 million. Equities Trading DOWN Shares of RetailMeNot (NASDAQ: SALE ) were down 26.38 percent to $18.63 after the company reported Q2 earnings of $0.08 per share on revenue of $59.50 million. | Top gainers in the sector included Mueller Water Products (NYSE: MWA ), Ducommun (NYSE: DCO ), and The KEYW Holding (NASDAQ: KEYW ). Energy shares tumbled by 1.36 percent in today's trading. Equities Trading DOWN Shares of RetailMeNot (NASDAQ: SALE ) were down 26.38 percent to $18.63 after the company reported Q2 earnings of $0.08 per share on revenue of $59.50 million. | 7620e528-bc7d-4a5b-a586-945383957ee7 |
710305.0 | 2014-05-23 00:00:00 UTC | Updated Research Report on TransDigm - Analyst Blog | DCO | https://www.nasdaq.com/articles/updated-research-report-on-transdigm-analyst-blog-2014-05-23 | nan | nan | On May 22, 2014, we issued an updated research report on TransDigm Group Inc. ( TDG ). The company reported strong second-quarter fiscal 2014 results, with both earnings and revenues surpassing estimates. The company also announced its plans to amend the senior secured credit facilities and is considering paying a special dividend in an effort to enhance shareholders' value.
TransDigm Group has delivered positive earnings surprises in three of the last four quarters, with an average beat of 37.9%. Second-quarter results were driven by the company's strategic acquisitions in fiscal 2013, improving commercial aftermarket and strength in commercial aerospace as well as the continuing improvement in the commercial original equipment manufacturing (OEM) business. However, earnings were partially offset by the increase in interest expense and acquisition-related costs in the quarter.
In the quarter, TransDigm completed the acquisition of Elektro-Metall Export GmbH (EME GmbH) for about $47.4 million to strengthen its presence in the aerospace electromechanical actuators, electrical and electromechanical components and assemblies, primarily for commercial aircrafts, helicopters and other specialty applications segments.
TransDigm expects to reap positive synergies from its recent acquisitions and has raised its outlook for fiscal 2014 to highlight the benefits of the EME GmbH acquisition. The company expects fiscal 2014 net sales to be in the range of $2,317 million to $2,367 million versus the earlier range of $2,283 million to $2,343 million. Adjusted earnings per share are expected to be in the range of $7.46-$7.70 a share, compared with the previously projected range of $7.35 to $7.65 per share.
However, TransDigm is currently affected by the debt burden and higher interest expense. At the end of the quarter, the company's long-term debt stood at $5.7 billion, compared with the debt of $4.3 billion in the second-quarter of 2013. Moreover, TransDigm has been funding its dividends by taking loans, which can drag down its bottom line going forward. In 2013, the company had borrowed about $1.8 billion to payout special dividends.
Also, the company's defence business is significantly dependent upon the government contracts. The projects being spread over a multi-year period are more prone to delays and cancellations and can significantly weigh on the company's business.
TransDigm currently holds a Zacks Rank #4 (Sell). Other better-ranked stocks that look promising at the moment include Ducommun Inc. ( DCO ), CAE Inc. ( CAE ) and Curtiss-Wright Corp. ( CW ). All three stocks carry a Zacks Rank #2 (Buy).
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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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Other better-ranked stocks that look promising at the moment include Ducommun Inc. ( DCO ), CAE Inc. ( CAE ) and Curtiss-Wright Corp. ( CW ). Click to get this free report CAE INC (CAE): Free Stock Analysis Report CURTISS WRIGHT (CW): Free Stock Analysis Report DUCOMMUN INC DE (DCO): Free Stock Analysis Report TRANSDIGM GROUP (TDG): Free Stock Analysis Report To read this article on Zacks.com click here. The company also announced its plans to amend the senior secured credit facilities and is considering paying a special dividend in an effort to enhance shareholders' value. | Click to get this free report CAE INC (CAE): Free Stock Analysis Report CURTISS WRIGHT (CW): Free Stock Analysis Report DUCOMMUN INC DE (DCO): Free Stock Analysis Report TRANSDIGM GROUP (TDG): Free Stock Analysis Report To read this article on Zacks.com click here. Other better-ranked stocks that look promising at the moment include Ducommun Inc. ( DCO ), CAE Inc. ( CAE ) and Curtiss-Wright Corp. ( CW ). On May 22, 2014, we issued an updated research report on TransDigm Group Inc. ( TDG ). | Click to get this free report CAE INC (CAE): Free Stock Analysis Report CURTISS WRIGHT (CW): Free Stock Analysis Report DUCOMMUN INC DE (DCO): Free Stock Analysis Report TRANSDIGM GROUP (TDG): Free Stock Analysis Report To read this article on Zacks.com click here. Other better-ranked stocks that look promising at the moment include Ducommun Inc. ( DCO ), CAE Inc. ( CAE ) and Curtiss-Wright Corp. ( CW ). Second-quarter results were driven by the company's strategic acquisitions in fiscal 2013, improving commercial aftermarket and strength in commercial aerospace as well as the continuing improvement in the commercial original equipment manufacturing (OEM) business. | Click to get this free report CAE INC (CAE): Free Stock Analysis Report CURTISS WRIGHT (CW): Free Stock Analysis Report DUCOMMUN INC DE (DCO): Free Stock Analysis Report TRANSDIGM GROUP (TDG): Free Stock Analysis Report To read this article on Zacks.com click here. Other better-ranked stocks that look promising at the moment include Ducommun Inc. ( DCO ), CAE Inc. ( CAE ) and Curtiss-Wright Corp. ( CW ). In the quarter, TransDigm completed the acquisition of Elektro-Metall Export GmbH (EME GmbH) for about $47.4 million to strengthen its presence in the aerospace electromechanical actuators, electrical and electromechanical components and assemblies, primarily for commercial aircrafts, helicopters and other specialty applications segments. | fb96fa44-ba7a-439c-817a-57695518c56a |
710306.0 | 2014-05-20 00:00:00 UTC | Rockwell Collins Poised Evenly - Analyst Blog | DCO | https://www.nasdaq.com/articles/rockwell-collins-poised-evenly-analyst-blog-2014-05-20 | nan | nan | On May 16, we have issued an updated research report on Rockwell Collins Inc. ( COL ). The aerospace and defense equipment provider continues to expand its product and service offering, and pursue an effective share repurchase program. The company's systematic acquisitions strategy is also appreciable. However, higher exposure to fixed price contracts and over-dependence on international sales are matters of concern.
Rockwell Collins, a Zacks Rank #3 (Hold) stock, reported stable results in second quarter fiscal 2014. Both the top as well as the bottom line surpassed the Zacks Consensus Estimates. Quarterly revenues also improved year over year primarily on the back of higher sales as a result of the acquisition of ARINC Inc.
It is evident from Rockwell Collins' capital spending strategy that the company is continuously improving existing products and adding new ones to its portfolio. During the second quarter, the company spent $232 million for research and development activities. The company delivered the first Pro Line Fusion system for the Brazilian Air Force KC-390 program.
Rockwell Collins also follows a strategic acquisition program. In 2013, the company acquired ARINC Inc. The acquisition will help to boost the company's existing information management capacities. In fiscal 2014, the transaction is expected to contribute $400 - $430 million as revenues. Earlier, Rockwell Collins acquired Computing Technologies for Aviation and Blue Ridge Simulation, Inc.
In addition to utilizing funds to expand its scale of operations through internal and inorganic routes, Rockwell Collins also took several initiatives to maximize shareholder wealth. During the second quarter, the company repurchased 0.5 million shares of common stock at a total cost of $39 million. Moreover, Rockwell Collins distributed $81 million as dividends in the first six months ended Mar 31, 2014.
On the flip side, Rockwell Collins generates a major portion of its revenues from fixed priced contracts. During fiscal 2013, fixed priced contracts contributed 93% to the company's revenues. We believe that if costs stay higher than the contracted price, Rockwell Collins' margins will be negatively impacted.
Key Picks from the Sector
Some better-ranked stocks in the industry include CAE Inc. ( CAE ), Curtiss-Wright Corporation ( CW ) and Ducommun Inc. ( DCO ), each carrying a Zacks Rank #2 (Buy).
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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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Key Picks from the Sector Some better-ranked stocks in the industry include CAE Inc. ( CAE ), Curtiss-Wright Corporation ( CW ) and Ducommun Inc. ( DCO ), each carrying a Zacks Rank #2 (Buy). Click to get this free report CAE INC (CAE): Free Stock Analysis Report ROCKWELL COLLIN (COL): Free Stock Analysis Report CURTISS WRIGHT (CW): Free Stock Analysis Report DUCOMMUN INC DE (DCO): Free Stock Analysis Report To read this article on Zacks.com click here. The aerospace and defense equipment provider continues to expand its product and service offering, and pursue an effective share repurchase program. | Click to get this free report CAE INC (CAE): Free Stock Analysis Report ROCKWELL COLLIN (COL): Free Stock Analysis Report CURTISS WRIGHT (CW): Free Stock Analysis Report DUCOMMUN INC DE (DCO): Free Stock Analysis Report To read this article on Zacks.com click here. Key Picks from the Sector Some better-ranked stocks in the industry include CAE Inc. ( CAE ), Curtiss-Wright Corporation ( CW ) and Ducommun Inc. ( DCO ), each carrying a Zacks Rank #2 (Buy). Rockwell Collins, a Zacks Rank #3 (Hold) stock, reported stable results in second quarter fiscal 2014. | Click to get this free report CAE INC (CAE): Free Stock Analysis Report ROCKWELL COLLIN (COL): Free Stock Analysis Report CURTISS WRIGHT (CW): Free Stock Analysis Report DUCOMMUN INC DE (DCO): Free Stock Analysis Report To read this article on Zacks.com click here. Key Picks from the Sector Some better-ranked stocks in the industry include CAE Inc. ( CAE ), Curtiss-Wright Corporation ( CW ) and Ducommun Inc. ( DCO ), each carrying a Zacks Rank #2 (Buy). Rockwell Collins, a Zacks Rank #3 (Hold) stock, reported stable results in second quarter fiscal 2014. | Key Picks from the Sector Some better-ranked stocks in the industry include CAE Inc. ( CAE ), Curtiss-Wright Corporation ( CW ) and Ducommun Inc. ( DCO ), each carrying a Zacks Rank #2 (Buy). Click to get this free report CAE INC (CAE): Free Stock Analysis Report ROCKWELL COLLIN (COL): Free Stock Analysis Report CURTISS WRIGHT (CW): Free Stock Analysis Report DUCOMMUN INC DE (DCO): Free Stock Analysis Report To read this article on Zacks.com click here. Rockwell Collins, a Zacks Rank #3 (Hold) stock, reported stable results in second quarter fiscal 2014. | 87e16c02-d815-41d6-916a-465d15b199d6 |
710307.0 | 2014-05-20 00:00:00 UTC | Triumph Group to Issue $300M Notes - Analyst Blog | DCO | https://www.nasdaq.com/articles/triumph-group-to-issue-%24300m-notes-analyst-blog-2014-05-20 | nan | nan | Triumph Group Inc. ( TGI ) announced it would issue $300 million 5.25% notes due 2022 to refinance its existing debts. The new series of notes will be issued at a price equal to 100% of their face value.
The company will utilize the net proceeds from this issue along with its other existing sources of fund to redeem the outstanding principal amount of its 8.625% senior notes due 2018 and pay related fees and expenses. The 8.625% senior notes of aggregate amount $350 million due 2018 were issued by Triumph Group in 2010.
The issue of senior notes to redeem older notes is a practice very common in the corporate world. The companies can thus benefit from favorable market conditions and lower the cost of capital.
In most cases a company issues new debts to finance its business ventures or use it for general corporate purposes. A common reason for the issue is to refinance existing debts. In fiscal 2014, Triumph Group issued new debts worth $451 million and redeemed debt and other long-term obligations amounting to $416.7 million.
The company's interest expenses in the fourth quarter of fiscal 2014 were $17.6 million. Interest expenses are expected to come down following the refinancing of the higher interest bearing debts. Management had given such an indication during its fourth quarter fiscal 2014 earnings call. Accordingly, the earnings guidance range for fiscal 2015 was adjusted to take into account the refinancing fees of the notes due 2018.
Fourth quarter fiscal 2014 earnings were higher than the Zacks Consensus Estimate of $1.26 by 10.3%. Triumph Group expects earnings per share for fiscal 2015 in the range of $5.65 to $5.75. The Zacks Consensus Estimate is presently at $5.71 per share, on the higher end of the guided range.
Triumph Group currently has a Zacks Rank #3 (Hold). Investors interested in the aerospace and defense equipment industry may consider stocks like Curtiss-Wright Corporation ( CW ), Ducommun Inc. ( DCO ) and HEICO Corporation ( HEI ). All these stocks carry a Zacks Rank #2 (Buy).
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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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Investors interested in the aerospace and defense equipment industry may consider stocks like Curtiss-Wright Corporation ( CW ), Ducommun Inc. ( DCO ) and HEICO Corporation ( HEI ). Click to get this free report CURTISS WRIGHT (CW): Free Stock Analysis Report DUCOMMUN INC DE (DCO): Free Stock Analysis Report HEICO CORP (HEI): Free Stock Analysis Report TRIUMPH GRP INC (TGI): Free Stock Analysis Report To read this article on Zacks.com click here. Triumph Group Inc. ( TGI ) announced it would issue $300 million 5.25% notes due 2022 to refinance its existing debts. | Click to get this free report CURTISS WRIGHT (CW): Free Stock Analysis Report DUCOMMUN INC DE (DCO): Free Stock Analysis Report HEICO CORP (HEI): Free Stock Analysis Report TRIUMPH GRP INC (TGI): Free Stock Analysis Report To read this article on Zacks.com click here. Investors interested in the aerospace and defense equipment industry may consider stocks like Curtiss-Wright Corporation ( CW ), Ducommun Inc. ( DCO ) and HEICO Corporation ( HEI ). Triumph Group Inc. ( TGI ) announced it would issue $300 million 5.25% notes due 2022 to refinance its existing debts. | Click to get this free report CURTISS WRIGHT (CW): Free Stock Analysis Report DUCOMMUN INC DE (DCO): Free Stock Analysis Report HEICO CORP (HEI): Free Stock Analysis Report TRIUMPH GRP INC (TGI): Free Stock Analysis Report To read this article on Zacks.com click here. Investors interested in the aerospace and defense equipment industry may consider stocks like Curtiss-Wright Corporation ( CW ), Ducommun Inc. ( DCO ) and HEICO Corporation ( HEI ). Triumph Group Inc. ( TGI ) announced it would issue $300 million 5.25% notes due 2022 to refinance its existing debts. | Investors interested in the aerospace and defense equipment industry may consider stocks like Curtiss-Wright Corporation ( CW ), Ducommun Inc. ( DCO ) and HEICO Corporation ( HEI ). Click to get this free report CURTISS WRIGHT (CW): Free Stock Analysis Report DUCOMMUN INC DE (DCO): Free Stock Analysis Report HEICO CORP (HEI): Free Stock Analysis Report TRIUMPH GRP INC (TGI): Free Stock Analysis Report To read this article on Zacks.com click here. The issue of senior notes to redeem older notes is a practice very common in the corporate world. | 7f995f68-4859-416d-8a7b-9414abba8352 |
710308.0 | 2013-10-31 00:00:00 UTC | Zacks #5 Rank Additions for Thursday - Tale of the Tape | DCO | https://www.nasdaq.com/articles/zacks-5-rank-additions-for-thursday-tale-of-the-tape-2013-10-31 | nan | nan | Here are 5 stocks added to the Zacks #5 Rank ("strong sell") List today:
ACCO Brands Corporation ( ACCO )
Air Methods Corp ( AIRM )
Ashford Hospitality Trust, Inc. ( AHT )
Capstead Mortgage Corporation ( CMO )
Ducommun Incorporated ( DCO )
View the entire Zacks #5 Rank List .
ACCO BRANDS CP (ACCO): Free Stock Analysis Report
ASHFORD HOSPTLY (AHT): Free Stock Analysis Report
AIR METHODS CRP (AIRM): Free Stock Analysis Report
CAPSTEAD MTG (CMO): Free Stock Analysis Report
DUCOMMUN INC DE (DCO): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Here are 5 stocks added to the Zacks #5 Rank ("strong sell") List today: ACCO Brands Corporation ( ACCO ) Air Methods Corp ( AIRM ) Ashford Hospitality Trust, Inc. ( AHT ) Capstead Mortgage Corporation ( CMO ) Ducommun Incorporated ( DCO ) View the entire Zacks #5 Rank List . ACCO BRANDS CP (ACCO): Free Stock Analysis Report ASHFORD HOSPTLY (AHT): Free Stock Analysis Report AIR METHODS CRP (AIRM): Free Stock Analysis Report CAPSTEAD MTG (CMO): Free Stock Analysis Report DUCOMMUN INC DE (DCO): Free Stock Analysis Report To read this article on Zacks.com click here. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Here are 5 stocks added to the Zacks #5 Rank ("strong sell") List today: ACCO Brands Corporation ( ACCO ) Air Methods Corp ( AIRM ) Ashford Hospitality Trust, Inc. ( AHT ) Capstead Mortgage Corporation ( CMO ) Ducommun Incorporated ( DCO ) View the entire Zacks #5 Rank List . ACCO BRANDS CP (ACCO): Free Stock Analysis Report ASHFORD HOSPTLY (AHT): Free Stock Analysis Report AIR METHODS CRP (AIRM): Free Stock Analysis Report CAPSTEAD MTG (CMO): Free Stock Analysis Report DUCOMMUN INC DE (DCO): Free Stock Analysis Report To read this article on Zacks.com click here. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | ACCO BRANDS CP (ACCO): Free Stock Analysis Report ASHFORD HOSPTLY (AHT): Free Stock Analysis Report AIR METHODS CRP (AIRM): Free Stock Analysis Report CAPSTEAD MTG (CMO): Free Stock Analysis Report DUCOMMUN INC DE (DCO): Free Stock Analysis Report To read this article on Zacks.com click here. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Here are 5 stocks added to the Zacks #5 Rank ("strong sell") List today: ACCO Brands Corporation ( ACCO ) Air Methods Corp ( AIRM ) Ashford Hospitality Trust, Inc. ( AHT ) Capstead Mortgage Corporation ( CMO ) Ducommun Incorporated ( DCO ) View the entire Zacks #5 Rank List . | Here are 5 stocks added to the Zacks #5 Rank ("strong sell") List today: ACCO Brands Corporation ( ACCO ) Air Methods Corp ( AIRM ) Ashford Hospitality Trust, Inc. ( AHT ) Capstead Mortgage Corporation ( CMO ) Ducommun Incorporated ( DCO ) View the entire Zacks #5 Rank List . ACCO BRANDS CP (ACCO): Free Stock Analysis Report ASHFORD HOSPTLY (AHT): Free Stock Analysis Report AIR METHODS CRP (AIRM): Free Stock Analysis Report CAPSTEAD MTG (CMO): Free Stock Analysis Report DUCOMMUN INC DE (DCO): Free Stock Analysis Report To read this article on Zacks.com click here. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | e84341f1-62a8-4d8e-9176-3abbc75fb75a |
710309.0 | 2013-10-07 00:00:00 UTC | ATK Looks for $1.86B External Funding - Analyst Blog | DCO | https://www.nasdaq.com/articles/atk-looks-for-%241.86b-external-funding-analyst-blog-2013-10-07 | nan | nan | Alliant Techsystems Inc. ( ATK ) announced that it intends to resort to a new external financing program to meet the new debt requirement of $1.86 billion. On Oct 8, 2013, the company plans to meet prospective lenders to discuss about the financing.
Per the plan, the new debt of $1.86 billion may comprise a $1.01 billion term loan A, a $0.25 billion term loan B and a $0.6 billion under the revolving credit facility.
The company intends to utilize the funds to finance its previously announced acquisition of Bushnell Group Holdings, Inc. ("Bushnell"). In addition, it plans to use the funds to refinance the existing senior term loans and revolving credit facilities and use the rest for other general corporate purposes.
On Sep 5, 2013, Alliant announced that it will purchase Bushnell from MidOcean Partners at a transaction value of $985 million. Bushnell is a provider of branded sports optics, outdoor accessories, performance eyewear and affordable sports products for the sports enthusiast. Alliant is expected to complete the acquisition in the third or fourth quarter of fiscal 2014, subject to regulatory approvals and customary closing conditions.
It is evident that Alliant is currently following a steady inorganic growth strategy to expand its operations. To complete the acquisitions, the company is primarily utilizing its own cash balance and funds under the revolving credit facility.
As of Jun 30 2013, Alliant's cash balance was $99.3 million compared with $417.3 million as of Mar 31, 2013. The company's cash position decreased on account of the acquisition of Savage Sports Corporation, a parent company of Caliber Company. In addition, the company utilized a certain portion of the limit under the revolving credit facility for the acquisition. As of Jun 30, 2013, Alliant had a borrowing limit of $0.2 million under the Revolving Credit Facility and had outstanding letters of credit of $0.1 million. Therefore, for now the current fund position is not sufficient for acquisition of Bushnell.
We believe it is easier for the company to collect funds from investors as it has a good debt service record with a rating of BB assigned by credit rating agency Standard & Poor's Ratings Services. Also, Alliant's stable credit profile, effort toward minimizing debts, a stable inorganic growth strategy, and strong operational efficiency will help it to attract more investors.
However, the U.S. defense budget cutbacks and current U.S. government shutdown are our major cause of concern. Alliant currently has a Zacks Rank #3 (Hold). However, other stocks from the industry that are presently performing well include Elbit Systems Ltd. ( ESLT ) with a Zacks Rank #1 (Strong Buy), and B/E Aerospace Inc. ( BEAV ) and Ducommun Inc. ( DCO ), both with a Zacks Rank #2 (Buy).
ALLIANT TECHSYS (ATK): Free Stock Analysis Report
B/E AEROSPACE (BEAV): Free Stock Analysis Report
DUCOMMUN INC DE (DCO): Free Stock Analysis Report
ELBIT SYSTEMS (ESLT): Free Stock Analysis Report
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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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | However, other stocks from the industry that are presently performing well include Elbit Systems Ltd. ( ESLT ) with a Zacks Rank #1 (Strong Buy), and B/E Aerospace Inc. ( BEAV ) and Ducommun Inc. ( DCO ), both with a Zacks Rank #2 (Buy). ALLIANT TECHSYS (ATK): Free Stock Analysis Report B/E AEROSPACE (BEAV): Free Stock Analysis Report DUCOMMUN INC DE (DCO): Free Stock Analysis Report ELBIT SYSTEMS (ESLT): Free Stock Analysis Report To read this article on Zacks.com click here. Alliant Techsystems Inc. ( ATK ) announced that it intends to resort to a new external financing program to meet the new debt requirement of $1.86 billion. | However, other stocks from the industry that are presently performing well include Elbit Systems Ltd. ( ESLT ) with a Zacks Rank #1 (Strong Buy), and B/E Aerospace Inc. ( BEAV ) and Ducommun Inc. ( DCO ), both with a Zacks Rank #2 (Buy). ALLIANT TECHSYS (ATK): Free Stock Analysis Report B/E AEROSPACE (BEAV): Free Stock Analysis Report DUCOMMUN INC DE (DCO): Free Stock Analysis Report ELBIT SYSTEMS (ESLT): Free Stock Analysis Report To read this article on Zacks.com click here. Per the plan, the new debt of $1.86 billion may comprise a $1.01 billion term loan A, a $0.25 billion term loan B and a $0.6 billion under the revolving credit facility. | ALLIANT TECHSYS (ATK): Free Stock Analysis Report B/E AEROSPACE (BEAV): Free Stock Analysis Report DUCOMMUN INC DE (DCO): Free Stock Analysis Report ELBIT SYSTEMS (ESLT): Free Stock Analysis Report To read this article on Zacks.com click here. However, other stocks from the industry that are presently performing well include Elbit Systems Ltd. ( ESLT ) with a Zacks Rank #1 (Strong Buy), and B/E Aerospace Inc. ( BEAV ) and Ducommun Inc. ( DCO ), both with a Zacks Rank #2 (Buy). Per the plan, the new debt of $1.86 billion may comprise a $1.01 billion term loan A, a $0.25 billion term loan B and a $0.6 billion under the revolving credit facility. | However, other stocks from the industry that are presently performing well include Elbit Systems Ltd. ( ESLT ) with a Zacks Rank #1 (Strong Buy), and B/E Aerospace Inc. ( BEAV ) and Ducommun Inc. ( DCO ), both with a Zacks Rank #2 (Buy). ALLIANT TECHSYS (ATK): Free Stock Analysis Report B/E AEROSPACE (BEAV): Free Stock Analysis Report DUCOMMUN INC DE (DCO): Free Stock Analysis Report ELBIT SYSTEMS (ESLT): Free Stock Analysis Report To read this article on Zacks.com click here. The company intends to utilize the funds to finance its previously announced acquisition of Bushnell Group Holdings, Inc. ("Bushnell"). | f4adee9d-4ddb-422e-a302-ed7eebceaaef |
710310.0 | 2013-09-11 00:00:00 UTC | EAC Gets a $10M MEDEVAC Contract - Analyst Blog | DCO | https://www.nasdaq.com/articles/eac-gets-a-%2410m-medevac-contract-analyst-blog-2013-09-11 | nan | nan | The provider of aviation services Erickson Air-Crane Inc. ( EAC ) received a contract from the U.S. Army to provide medical evacuation ("MEDEVAC") service and support for the United States Army base at Fort Wainwright and Fort Greenly in Alaska. The contract value is $10 million. Fort Wainwright and Fort Greenly operate in extreme conditions where temperatures at times drop to -40°F. This makes medical evacuation all the more challenging.
Erickson Air Crane has the expertise and necessary equipment to carry out this specialized job. Erickson will provide dedicated aircraft, management and supervision, personnel, equipment, supplies, materials, tools, and transportation services to perform air medical evacuation and training.
Fort Greenly plays an important role in the U.S. Army's development plans as it is the launch site for anti-ballistic missiles. With North Korea continuing with its intercontinental ballistic missile development program, defying pleas from the international community, the U.S. anti-ballistic missile program is gaining prominence. As a result, the U.S. Army might consider expanding its operations at the Fort Greenly base, thus necessitating more medical transportation services.
The MEDEVAC service will be available at these two army base 24x7. The dedicated Erickson team will take all necessary measures to transport injured personnel for better medical treatment. The contract is for one base year with one additional option year.
Erickson Air-Crane recently received another contract from the defense establishment on the back of its expertise in heavy air lifting. In August 2013, the company received a five-year $36.6 million contract to provide comprehensive replenishment and logistics services to the Military Sealift Command.
Erickson Air-Crane currently retains a Zacks Rank #3 (Hold). Other defense operators worth accumulating now are Alliant Techsystems Inc. ( ATK ), Elbit Systems Ltd. ( ESLT ) and Ducommun Inc. ( DCO ). Alliant Techsystems and Elbit Systems retain a Zacks Rank #1 (Strong Buy) while Ducommun has a Zacks Rank #2 (Buy).
ALLIANT TECHSYS (ATK): Free Stock Analysis Report
DUCOMMUN INC DE (DCO): Free Stock Analysis Report
ERICKSON AIR-CR (EAC): Free Stock Analysis Report
ELBIT SYSTEMS (ESLT): Free Stock Analysis Report
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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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Other defense operators worth accumulating now are Alliant Techsystems Inc. ( ATK ), Elbit Systems Ltd. ( ESLT ) and Ducommun Inc. ( DCO ). ALLIANT TECHSYS (ATK): Free Stock Analysis Report DUCOMMUN INC DE (DCO): Free Stock Analysis Report ERICKSON AIR-CR (EAC): Free Stock Analysis Report ELBIT SYSTEMS (ESLT): Free Stock Analysis Report To read this article on Zacks.com click here. Erickson will provide dedicated aircraft, management and supervision, personnel, equipment, supplies, materials, tools, and transportation services to perform air medical evacuation and training. | ALLIANT TECHSYS (ATK): Free Stock Analysis Report DUCOMMUN INC DE (DCO): Free Stock Analysis Report ERICKSON AIR-CR (EAC): Free Stock Analysis Report ELBIT SYSTEMS (ESLT): Free Stock Analysis Report To read this article on Zacks.com click here. Other defense operators worth accumulating now are Alliant Techsystems Inc. ( ATK ), Elbit Systems Ltd. ( ESLT ) and Ducommun Inc. ( DCO ). The provider of aviation services Erickson Air-Crane Inc. ( EAC ) received a contract from the U.S. Army to provide medical evacuation ("MEDEVAC") service and support for the United States Army base at Fort Wainwright and Fort Greenly in Alaska. | ALLIANT TECHSYS (ATK): Free Stock Analysis Report DUCOMMUN INC DE (DCO): Free Stock Analysis Report ERICKSON AIR-CR (EAC): Free Stock Analysis Report ELBIT SYSTEMS (ESLT): Free Stock Analysis Report To read this article on Zacks.com click here. Other defense operators worth accumulating now are Alliant Techsystems Inc. ( ATK ), Elbit Systems Ltd. ( ESLT ) and Ducommun Inc. ( DCO ). The provider of aviation services Erickson Air-Crane Inc. ( EAC ) received a contract from the U.S. Army to provide medical evacuation ("MEDEVAC") service and support for the United States Army base at Fort Wainwright and Fort Greenly in Alaska. | Other defense operators worth accumulating now are Alliant Techsystems Inc. ( ATK ), Elbit Systems Ltd. ( ESLT ) and Ducommun Inc. ( DCO ). ALLIANT TECHSYS (ATK): Free Stock Analysis Report DUCOMMUN INC DE (DCO): Free Stock Analysis Report ERICKSON AIR-CR (EAC): Free Stock Analysis Report ELBIT SYSTEMS (ESLT): Free Stock Analysis Report To read this article on Zacks.com click here. The provider of aviation services Erickson Air-Crane Inc. ( EAC ) received a contract from the U.S. Army to provide medical evacuation ("MEDEVAC") service and support for the United States Army base at Fort Wainwright and Fort Greenly in Alaska. | 00da6e90-5ae8-435c-8857-675d5cf534af |
710311.0 | 2013-08-28 00:00:00 UTC | Elbit Systems Upgraded to Strong Buy - Analyst Blog | DCO | https://www.nasdaq.com/articles/elbit-systems-upgraded-to-strong-buy-analyst-blog-2013-08-28 | nan | nan | Zacks Investment Research upgraded Elbit Systems Ltd. ( ESLT ) to a Zacks Rank #1 (Strong Buy) on Aug 27, 2013.
Why the Upgrade?
Elbit Systems reported an impressive financial result for the second quarter of 2013 on Aug 13, 2013. Non-GAAP EPS came in at $1.19, up compared with $1.14 reported in the year-ago quarter due to healthy revenue performance and strong margins in the quarter.
Revenue grew 3.9% year over year on the back of higher revenue generation at Elbit Systems' Airborne Systems and Electro-optic systems businesses. Revenue generated in Israel, Europe and Latin America grew 30.0%, 18.4% and 5.0%, respectively.
Elbit Systems reported 0.5% sequential increase in backlog of orders in the second quarter. Of the total backlog, 67% are from outside Israel.
Talking of margins, gross margin increased 90 basis points (bps) year over year to 28.9%. Higher gross margins and lower operating expenses led to 330 basis points increase in operating margin.
In the last 30 days, the Zacks Consensus Estimate for Elbit Systems remained stable at $4.31 for 2013 while it increased by 4.8% to $5.05 for 2014. Also, the company has a positive earnings surprise average of 35.8%. Considering these along with the impressive second quarter result and strong backlog position, expectation is high for another quarter of solid performance.
Other Stocks to Consider:
Elbit Systems is a $1.8 billion company engaged primarily in the production, development and integration of defense systems and products.
Other stocks to watch out for in the industry are Alliant Techsystems Inc. ( ATK ) with a Zacks Rank #1 (Strong Buy) while Curtiss-Wright Corporation ( CW ) and Ducommun Inc. ( DCO ), each come with a Zacks Rank #2 (Buy).
ALLIANT TECHSYS (ATK): Free Stock Analysis Report
CURTISS WRIGHT (CW): Free Stock Analysis Report
DUCOMMUN INC DE (DCO): Free Stock Analysis Report
ELBIT SYSTEMS (ESLT): 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Other stocks to watch out for in the industry are Alliant Techsystems Inc. ( ATK ) with a Zacks Rank #1 (Strong Buy) while Curtiss-Wright Corporation ( CW ) and Ducommun Inc. ( DCO ), each come with a Zacks Rank #2 (Buy). ALLIANT TECHSYS (ATK): Free Stock Analysis Report CURTISS WRIGHT (CW): Free Stock Analysis Report DUCOMMUN INC DE (DCO): Free Stock Analysis Report ELBIT SYSTEMS (ESLT): Free Stock Analysis Report To read this article on Zacks.com click here. Elbit Systems reported an impressive financial result for the second quarter of 2013 on Aug 13, 2013. | ALLIANT TECHSYS (ATK): Free Stock Analysis Report CURTISS WRIGHT (CW): Free Stock Analysis Report DUCOMMUN INC DE (DCO): Free Stock Analysis Report ELBIT SYSTEMS (ESLT): Free Stock Analysis Report To read this article on Zacks.com click here. Other stocks to watch out for in the industry are Alliant Techsystems Inc. ( ATK ) with a Zacks Rank #1 (Strong Buy) while Curtiss-Wright Corporation ( CW ) and Ducommun Inc. ( DCO ), each come with a Zacks Rank #2 (Buy). Zacks Investment Research upgraded Elbit Systems Ltd. ( ESLT ) to a Zacks Rank #1 (Strong Buy) on Aug 27, 2013. | ALLIANT TECHSYS (ATK): Free Stock Analysis Report CURTISS WRIGHT (CW): Free Stock Analysis Report DUCOMMUN INC DE (DCO): Free Stock Analysis Report ELBIT SYSTEMS (ESLT): Free Stock Analysis Report To read this article on Zacks.com click here. Other stocks to watch out for in the industry are Alliant Techsystems Inc. ( ATK ) with a Zacks Rank #1 (Strong Buy) while Curtiss-Wright Corporation ( CW ) and Ducommun Inc. ( DCO ), each come with a Zacks Rank #2 (Buy). Zacks Investment Research upgraded Elbit Systems Ltd. ( ESLT ) to a Zacks Rank #1 (Strong Buy) on Aug 27, 2013. | Other stocks to watch out for in the industry are Alliant Techsystems Inc. ( ATK ) with a Zacks Rank #1 (Strong Buy) while Curtiss-Wright Corporation ( CW ) and Ducommun Inc. ( DCO ), each come with a Zacks Rank #2 (Buy). ALLIANT TECHSYS (ATK): Free Stock Analysis Report CURTISS WRIGHT (CW): Free Stock Analysis Report DUCOMMUN INC DE (DCO): Free Stock Analysis Report ELBIT SYSTEMS (ESLT): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research upgraded Elbit Systems Ltd. ( ESLT ) to a Zacks Rank #1 (Strong Buy) on Aug 27, 2013. | 96d88546-be06-40ce-a85c-d8ee17d5883c |
710312.0 | 2013-08-13 00:00:00 UTC | Rockwell Collins Retained at Neutral - Analyst Blog | DCO | https://www.nasdaq.com/articles/rockwell-collins-retained-at-neutral-analyst-blog-2013-08-13 | nan | nan | We have maintained our Neutral recommendation on Rockwell Collins Inc. ( COL ) on Aug 8, 2013, based on strong second quarter earnings and operational efficiency. Our view was partly tempered by delayed funding authorizations.
Why the Reiteration?
Rockwell Collins posted strong results with top and bottom line above the Zacks Consensus Estimate. The results reflect enhanced operating performance and the company's share repurchase program.
Rockwell Collins is the foremost global supplier of communications and avionics equipment for both commercial and military customers. Its balanced exposure to both types of customers allows the company to use government funding to develop products for the dual-end market. The dual-end market leads to higher volume sales, which create economies of scale in cost-sensitive government contracts. Meanwhile, numerous contracts though small in size, are generating revenue for the company.
The company is utilizing its cash in the best possible manner. Recently, the company signed a definitive agreement to acquire airline communications and information processing solution major, ARINC Inc. This acquisition will certainly boost Rockwell Collins' existing information management capabilities with its application beyond avionics and cabin technologies.
Despite the positives, we remain concerned about the company's short-cycle products, the U.S. government's delayed funding authorizations, program execution risk, dependence on international sales, high exposure to fixed price contracts and high research and development overheads.
Other Stocks to Consider
Rockwell Collins presently retains a Zacks Rank #3 (Hold). Among the stocks worth considering in the space are Alliant Techsystems Inc. ( ATK ), Curtiss-Wright Corp. ( CW ) and Ducommun Inc. ( DCO ). While Alliant Techsystems carries a Zacks Rank #1 (Strong Buy), Curtiss-Wright and Ducommun Inc. hold a Zacks Rank #2 (Buy).
ALLIANT TECHSYS (ATK): Free Stock Analysis Report
ROCKWELL COLLIN (COL): Free Stock Analysis Report
CURTISS WRIGHT (CW): Free Stock Analysis Report
DUCOMMUN INC DE (DCO): Free Stock Analysis Report
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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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the stocks worth considering in the space are Alliant Techsystems Inc. ( ATK ), Curtiss-Wright Corp. ( CW ) and Ducommun Inc. ( DCO ). ALLIANT TECHSYS (ATK): Free Stock Analysis Report ROCKWELL COLLIN (COL): Free Stock Analysis Report CURTISS WRIGHT (CW): Free Stock Analysis Report DUCOMMUN INC DE (DCO): Free Stock Analysis Report To read this article on Zacks.com click here. We have maintained our Neutral recommendation on Rockwell Collins Inc. ( COL ) on Aug 8, 2013, based on strong second quarter earnings and operational efficiency. | Among the stocks worth considering in the space are Alliant Techsystems Inc. ( ATK ), Curtiss-Wright Corp. ( CW ) and Ducommun Inc. ( DCO ). ALLIANT TECHSYS (ATK): Free Stock Analysis Report ROCKWELL COLLIN (COL): Free Stock Analysis Report CURTISS WRIGHT (CW): Free Stock Analysis Report DUCOMMUN INC DE (DCO): Free Stock Analysis Report To read this article on Zacks.com click here. While Alliant Techsystems carries a Zacks Rank #1 (Strong Buy), Curtiss-Wright and Ducommun Inc. hold a Zacks Rank #2 (Buy). | ALLIANT TECHSYS (ATK): Free Stock Analysis Report ROCKWELL COLLIN (COL): Free Stock Analysis Report CURTISS WRIGHT (CW): Free Stock Analysis Report DUCOMMUN INC DE (DCO): Free Stock Analysis Report To read this article on Zacks.com click here. Among the stocks worth considering in the space are Alliant Techsystems Inc. ( ATK ), Curtiss-Wright Corp. ( CW ) and Ducommun Inc. ( DCO ). Despite the positives, we remain concerned about the company's short-cycle products, the U.S. government's delayed funding authorizations, program execution risk, dependence on international sales, high exposure to fixed price contracts and high research and development overheads. | Among the stocks worth considering in the space are Alliant Techsystems Inc. ( ATK ), Curtiss-Wright Corp. ( CW ) and Ducommun Inc. ( DCO ). ALLIANT TECHSYS (ATK): Free Stock Analysis Report ROCKWELL COLLIN (COL): Free Stock Analysis Report CURTISS WRIGHT (CW): Free Stock Analysis Report DUCOMMUN INC DE (DCO): Free Stock Analysis Report To read this article on Zacks.com click here. Our view was partly tempered by delayed funding authorizations. | a7263564-41b4-478e-a88c-ca822917cf4f |
710313.0 | 2013-07-24 00:00:00 UTC | Will Triumph Group (TGI) Beat Earnings? - Analyst Blog | DCO | https://www.nasdaq.com/articles/will-triumph-group-tgi-beat-earnings-analyst-blog-2013-07-24 | nan | nan | We expect aerospace company Triumph Group, Inc. ( TGI ) to beat expectations when it reports the first quarter of fiscal year 2014 results on Jul 25, 2013.
Why a Likely Positive Surprise?
Our proven model shows that Triumph is likely to beat earnings because it has the right combination of key factors.
Positive Zacks ESP: Expected Surprise Prediction or ESP (Read: Zacks Earnings ESP: A Better Method ), which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is +3.27%. This is meaningful and a leading indicator of a likely positive earnings surprise for this company.
Zacks #3 Rank (Hold): We note that stocks with Zacks Ranks of #1, 2 and 3 have a significantly higher chance of beating earnings. The Sell rated stocks (#4 and 5) should never be considered going into an earnings announcement.
The combination of Triumph's Zacks Rank #3 (Hold) and +3.27% ESP make us confident of a positive earnings beat on Jul 25.
What is Driving the Better than Expected Earnings?
We expect the continuing progress in the commercial aviation industry to play an important role to boost Triumph's near-term performance.
In addition, the company's strong order book and steady organic as well as inorganic growth strategy are strong catalysts to boost its future results. Triumph supplies several types of products to the airline majors - The BoeingCompany ( BA ) and Airbus and gets orders from them at regular intervals.
During first-quarter 2013, Triumph acquired Primus Composites from Precision Castparts Corp. ( PCP ). This acquisition will complement the company's operations and will be immediately accretive to its earnings.
The positive trend is seen in the trailing four quarter average surprise of 11.28%. Triumph's fourth-quarter of fiscal year 2013 surprise was 5.66%. Benefits from the acquisitions, improvement in the aviation industry and cost control aided the surprise.
Other Stocks to Consider
Triumph is not the only organization looking up this earnings season. We see other aerospace players who are likely to beat earnings.
Spirit AeroSystems Holdings, Inc. ( SPR ), Earnings ESP of +4.00% and Zacks Rank #2 (Buy).
Alliant Techsystems Inc. ( ATK ), Earnings ESP of +3.13% and Zacks Rank #3 (Hold).
Ducommun Inc. ( DCO ), Earnings ESP of +10.26% and Zacks Rank #3 (Hold).
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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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Ducommun Inc. ( DCO ), Earnings ESP of +10.26% and Zacks Rank #3 (Hold). ALLIANT TECHSYS (ATK): Free Stock Analysis Report BOEING CO (BA): Free Stock Analysis Report DUCOMMUN INC DE (DCO): Free Stock Analysis Report PRECISION CASTP (PCP): Free Stock Analysis Report SPIRIT AEROSYS (SPR): Free Stock Analysis Report TRIUMPH GRP INC (TGI): Free Stock Analysis Report To read this article on Zacks.com click here. The combination of Triumph's Zacks Rank #3 (Hold) and +3.27% ESP make us confident of a positive earnings beat on Jul 25. | ALLIANT TECHSYS (ATK): Free Stock Analysis Report BOEING CO (BA): Free Stock Analysis Report DUCOMMUN INC DE (DCO): Free Stock Analysis Report PRECISION CASTP (PCP): Free Stock Analysis Report SPIRIT AEROSYS (SPR): Free Stock Analysis Report TRIUMPH GRP INC (TGI): Free Stock Analysis Report To read this article on Zacks.com click here. Ducommun Inc. ( DCO ), Earnings ESP of +10.26% and Zacks Rank #3 (Hold). We expect aerospace company Triumph Group, Inc. ( TGI ) to beat expectations when it reports the first quarter of fiscal year 2014 results on Jul 25, 2013. | ALLIANT TECHSYS (ATK): Free Stock Analysis Report BOEING CO (BA): Free Stock Analysis Report DUCOMMUN INC DE (DCO): Free Stock Analysis Report PRECISION CASTP (PCP): Free Stock Analysis Report SPIRIT AEROSYS (SPR): Free Stock Analysis Report TRIUMPH GRP INC (TGI): Free Stock Analysis Report To read this article on Zacks.com click here. Ducommun Inc. ( DCO ), Earnings ESP of +10.26% and Zacks Rank #3 (Hold). Positive Zacks ESP: Expected Surprise Prediction or ESP (Read: Zacks Earnings ESP: A Better Method ), which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is +3.27%. | Ducommun Inc. ( DCO ), Earnings ESP of +10.26% and Zacks Rank #3 (Hold). ALLIANT TECHSYS (ATK): Free Stock Analysis Report BOEING CO (BA): Free Stock Analysis Report DUCOMMUN INC DE (DCO): Free Stock Analysis Report PRECISION CASTP (PCP): Free Stock Analysis Report SPIRIT AEROSYS (SPR): Free Stock Analysis Report TRIUMPH GRP INC (TGI): Free Stock Analysis Report To read this article on Zacks.com click here. We expect aerospace company Triumph Group, Inc. ( TGI ) to beat expectations when it reports the first quarter of fiscal year 2014 results on Jul 25, 2013. | 73482472-43ec-4597-8771-98db8ba4a77e |
710314.0 | 2013-04-03 00:00:00 UTC | GD Gets $40M Order for Saudi Tanks - Analyst Blog | DCO | https://www.nasdaq.com/articles/gd-gets-%2440m-order-for-saudi-tanks-analyst-blog-2013-04-03 | nan | nan | General Dynamics Corporation 's ( GD ) subsidiary General Dynamics Land Systems has entered into a $40 million agreement with the U.S. Army TACOM Life Cycle Management Command. The deal comes under the U.S. Foreign Military Sales contract to offer defense support to the Kingdom of Saudi Arabia.
Per the agreement, General Dynamics will provide procurement and production services to the Saudi M1A2 (M1A2S) Abrams tanks. The contract is a modification to an existing contract for the improvement of the fleet of tanks in the Kingdom of Saudi Arabia. The previous deal, signed in Jan 2013, was for the production and delivery of 69 Saudi M1A2 Abrams tanks.
General Dynamics will roll out the services from its facilities at the Joint Systems Manufacturing Center in Lima, Ohio. The deliveries are expected to be completed by Jul 31, 2014.
M1A2 SEP V2 is the most advanced digital tank with improved color displays, day and night thermal sights, commander remote operated weapon station (CROWS II), a Thermal Management System (TMS) and a tank-infantry phone. The M1A2S conversion increases the efficiency and capability of the tank.
Over the years, General Dynamics has a long-standing strategic alliance with the U.S. defense establishments and tries to meet its commitments in terms of maintaining product and service standards along with delivery timing. The company has been upgrading the kingdom's fleet of M1A1 and M1A2 tanks for a long time.
General Dynamics' Abrams tanks provide the troops with a proven and supreme decisive edge. In addition, survivability, mobility, adaptability and maintainability are important features of the tank. With these traits, these tanks are formidable and will dominate the battlefield. Apart from the Saudi defense authority, General Dynamics supplies the Abrams tanks to its international allies including Egypt, Kuwait and Australia.
In Jan 2012, General Dynamics had received the contract for upgrading M1A1 tanks to the M1A2 Systems Enhancement Package (SEP) V2 configuration. In Feb 2008, the company had originally received the order from the U.S. Army TACOM Lifecycle Management Command to upgrade 435 M1A1 tanks.
We believe the effects of Arab Spring as well as the prevailing unrest in the Middle East are propelling the Saudi defense establishment to enhance and upgrade its arsenal capability. Last month, the Royal Saudi Air Force entered into an agreement, worth $253 million, with Lockheed Martin Corporation ( LMT ) to seek assistance for its F-15SA pilot and maintenance training systems.
General Dynamics Corporation currently has a Zacks Rank #3 (Hold). Other stocks from the sector that are presently performing better include Ducommun Inc. ( DCO ) with a Zacks Rank #1 (Strong Buy), and Alliant Techsystems Inc. ( ATK ) with a Zacks Rank #2 (Buy).
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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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Other stocks from the sector that are presently performing better include Ducommun Inc. ( DCO ) with a Zacks Rank #1 (Strong Buy), and Alliant Techsystems Inc. ( ATK ) with a Zacks Rank #2 (Buy). ALLIANT TECHSYS (ATK): Free Stock Analysis Report DUCOMMUN INC DE (DCO): Free Stock Analysis Report GENL DYNAMICS (GD): Free Stock Analysis Report LOCKHEED MARTIN (LMT): Free Stock Analysis Report To read this article on Zacks.com click here. Over the years, General Dynamics has a long-standing strategic alliance with the U.S. defense establishments and tries to meet its commitments in terms of maintaining product and service standards along with delivery timing. | Other stocks from the sector that are presently performing better include Ducommun Inc. ( DCO ) with a Zacks Rank #1 (Strong Buy), and Alliant Techsystems Inc. ( ATK ) with a Zacks Rank #2 (Buy). ALLIANT TECHSYS (ATK): Free Stock Analysis Report DUCOMMUN INC DE (DCO): Free Stock Analysis Report GENL DYNAMICS (GD): Free Stock Analysis Report LOCKHEED MARTIN (LMT): Free Stock Analysis Report To read this article on Zacks.com click here. General Dynamics Corporation 's ( GD ) subsidiary General Dynamics Land Systems has entered into a $40 million agreement with the U.S. Army TACOM Life Cycle Management Command. | ALLIANT TECHSYS (ATK): Free Stock Analysis Report DUCOMMUN INC DE (DCO): Free Stock Analysis Report GENL DYNAMICS (GD): Free Stock Analysis Report LOCKHEED MARTIN (LMT): Free Stock Analysis Report To read this article on Zacks.com click here. Other stocks from the sector that are presently performing better include Ducommun Inc. ( DCO ) with a Zacks Rank #1 (Strong Buy), and Alliant Techsystems Inc. ( ATK ) with a Zacks Rank #2 (Buy). General Dynamics Corporation 's ( GD ) subsidiary General Dynamics Land Systems has entered into a $40 million agreement with the U.S. Army TACOM Life Cycle Management Command. | Other stocks from the sector that are presently performing better include Ducommun Inc. ( DCO ) with a Zacks Rank #1 (Strong Buy), and Alliant Techsystems Inc. ( ATK ) with a Zacks Rank #2 (Buy). ALLIANT TECHSYS (ATK): Free Stock Analysis Report DUCOMMUN INC DE (DCO): Free Stock Analysis Report GENL DYNAMICS (GD): Free Stock Analysis Report LOCKHEED MARTIN (LMT): Free Stock Analysis Report To read this article on Zacks.com click here. General Dynamics Corporation 's ( GD ) subsidiary General Dynamics Land Systems has entered into a $40 million agreement with the U.S. Army TACOM Life Cycle Management Command. | f9f69edd-75da-46a8-8a53-891f8a4916f4 |
710315.0 | 2013-04-01 00:00:00 UTC | Lockheed Inks $256.6M Deal - Analyst Blog | DCO | https://www.nasdaq.com/articles/lockheed-inks-%24256.6m-deal-analyst-blog-2013-04-01 | nan | nan | The aerospace and defense major Lockheed Martin Corporation ( LMT ) has received a total of five standalone contracts from the Department of Defense (DoD). The total contract value is $256.6 million.
The lion's share of these multiple contracts, with a total ceiling value of $146 million, entails the support of the operations of the Joint Land Component Constrictive Training Capability. It involves the largest U.S. defense contractor to assist in the training of officers at the brigade level and above. The contract would support training operations through Mar 31, 2018.
Other smaller contracts comprise a $65 million worth of foreign military sales agreement related to the Aegis Weapon System Modernization agenda in Japan. This type of modification contract is scheduled to be completed by Jan 2017.
The company has also received another foreign military sales contract worth $19.9 million. This is to support the Patriot Advanced Capability Missile Support Center in the Netherlands, Japan, and the United Arab Emirates.
Again, Lockheed is responsible for the supply of engineering and technical support for British Trident II Missile Systems. This $18.7 million deal will last till Mar 2015 and is mainly intended to maintain the planned programs and prerequisites for the Fleet Ballistic Missile Program of U.K.
Lastly, Lockheed gets a $7 million firm-fixed-price contract. This agreement allows the company to execute indefinite weapons systems support at Arizona's Luke Air Force Base through Mar 31, 2014.
Lockheed Martin is a well-managed defense major and its operational effectiveness is evident in its industry-high Return on Investment (ROI) of 34.9% in 2012. The company has already an order backlog of approximately $82.3 billion at the end of 2012.
Recently, LMT received an order from the National Aeronautics and Space Administration (NASA) to supply biomedical, medical and health services for all human spaceflight programs of the latter. The contract, awarded by NASA's Johnson Space Center, has a maximum potential value of $250 million, over 10 years.
Over the long term, the earnings growth rate is pegged at 6.08% while the top line is expected to increase at a clip of 2.66%. The last 90 days saw the Zacks Consensus Estimate for 2013 scale up 7.6% to $8.87. With last year's earnings at $8.45 per share, the 2013 profit level is expected to climb approximately 5%.
Lockheed currently retains a Zacks Rank #2 (Buy). Other stocks from the sector that are also performing well presently include Ducommun Inc. ( DCO ) with a Zacks Rank #1 (Strong Buy), and Alliant Techsystems Inc. ( ATK ) and The Boeing Company ( BA ) with a Zacks Rank #2 (Buy).
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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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Other stocks from the sector that are also performing well presently include Ducommun Inc. ( DCO ) with a Zacks Rank #1 (Strong Buy), and Alliant Techsystems Inc. ( ATK ) and The Boeing Company ( BA ) with a Zacks Rank #2 (Buy). ALLIANT TECHSYS (ATK): Free Stock Analysis Report BOEING CO (BA): Free Stock Analysis Report DUCOMMUN INC DE (DCO): Free Stock Analysis Report LOCKHEED MARTIN (LMT): Free Stock Analysis Report To read this article on Zacks.com click here. The lion's share of these multiple contracts, with a total ceiling value of $146 million, entails the support of the operations of the Joint Land Component Constrictive Training Capability. | Other stocks from the sector that are also performing well presently include Ducommun Inc. ( DCO ) with a Zacks Rank #1 (Strong Buy), and Alliant Techsystems Inc. ( ATK ) and The Boeing Company ( BA ) with a Zacks Rank #2 (Buy). ALLIANT TECHSYS (ATK): Free Stock Analysis Report BOEING CO (BA): Free Stock Analysis Report DUCOMMUN INC DE (DCO): Free Stock Analysis Report LOCKHEED MARTIN (LMT): Free Stock Analysis Report To read this article on Zacks.com click here. The company has also received another foreign military sales contract worth $19.9 million. | ALLIANT TECHSYS (ATK): Free Stock Analysis Report BOEING CO (BA): Free Stock Analysis Report DUCOMMUN INC DE (DCO): Free Stock Analysis Report LOCKHEED MARTIN (LMT): Free Stock Analysis Report To read this article on Zacks.com click here. Other stocks from the sector that are also performing well presently include Ducommun Inc. ( DCO ) with a Zacks Rank #1 (Strong Buy), and Alliant Techsystems Inc. ( ATK ) and The Boeing Company ( BA ) with a Zacks Rank #2 (Buy). The lion's share of these multiple contracts, with a total ceiling value of $146 million, entails the support of the operations of the Joint Land Component Constrictive Training Capability. | Other stocks from the sector that are also performing well presently include Ducommun Inc. ( DCO ) with a Zacks Rank #1 (Strong Buy), and Alliant Techsystems Inc. ( ATK ) and The Boeing Company ( BA ) with a Zacks Rank #2 (Buy). ALLIANT TECHSYS (ATK): Free Stock Analysis Report BOEING CO (BA): Free Stock Analysis Report DUCOMMUN INC DE (DCO): Free Stock Analysis Report LOCKHEED MARTIN (LMT): Free Stock Analysis Report To read this article on Zacks.com click here. The total contract value is $256.6 million. | 725c2502-893e-4e1e-9962-33b838196823 |
710316.0 | 2013-03-27 00:00:00 UTC | Northrop Upgrades Sensor System - Analyst Blog | DCO | https://www.nasdaq.com/articles/northrop-upgrades-sensor-system-analyst-blog-2013-03-27 | nan | nan | Northrop Grumman Corporation ( NOC ) has introduced the Fourth Generation Tracking Adjunct Sensor (4G TAS) for its Hawk air defense system. The company's Electronic Systems business is responsible for this new product development.
The new 4G TAS is a steady and high-resolution sensor system. It offers passive electro-optical/infrared (EO/IR) initiating, tracking and investigating competence to Hawk. In addition, this new system provides risk-measurement and detection ability away from the visual range by giving 24 hours real-time positional alertness, and passes them to Hawk's fire control radar.
Northrop Grumman's improvements to the baseline arrangements include a new 640 x 480 pixel infrared sensor. This new sensor has more than double the resolution capacity of the current system. In addition, it has a new Charge-Coupled Device (CCD) camera, which increases resolution and enhances actions under low-light situations.
Over the years, Northrop Grumman has a long-standing business association with the U.S. defense establishments and tries to meet its commitments in terms of maintaining product and service standards along with delivery timing.
We believe Northrop Grumman introduced this new system due to a rise in security compromises and terrorist activities. The U.S. government has currently increased its focus on countering these threats. As an important provider of sensor solutions to the U.S. government as well as its international allies, the company strives to maintain its track record by upgrading TAS in order to strengthen its defense mechanism. The company has been a trusted partner of numerous federal bodies for more than 30 years. It has to date delivered several kinds of sensors, which have acted as the eyes of the Hawk air defense system.
Falls Church, VA-based Northrop Grumman offers products, services, and solutions in aerospace, electronics, information systems, and technical services worldwide.
Northrop Grumman's strength lies in its strong order backlog, which stood at $40.8 billion for full year-2012. Moreover, its cyber security offering, constant upgrading of defense and homeland security assets, intelligence, surveillance and reconnaissance systems, advanced electronics and software development businesses are expected to be the major top-line churners, going forward.
However, these positives are offset by apprehensions over the future growth of the U.S. defense budget and risks related to key project executions and order cancellations.
Northrop Grumman Corporation currently has a Zacks Rank #3 (Hold). Other stocks from the sector that are presently performing better include Ducommun Inc. ( DCO ) and Lockheed Martin Corporation ( LMT ) with a Zacks Rank #1 (Strong Buy), and The Boeing Company ( BA ) with a Zacks Rank #2 (Buy).
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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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Other stocks from the sector that are presently performing better include Ducommun Inc. ( DCO ) and Lockheed Martin Corporation ( LMT ) with a Zacks Rank #1 (Strong Buy), and The Boeing Company ( BA ) with a Zacks Rank #2 (Buy). BOEING CO (BA): Free Stock Analysis Report DUCOMMUN INC DE (DCO): Free Stock Analysis Report LOCKHEED MARTIN (LMT): Free Stock Analysis Report NORTHROP GRUMMN (NOC): Free Stock Analysis Report To read this article on Zacks.com click here. In addition, this new system provides risk-measurement and detection ability away from the visual range by giving 24 hours real-time positional alertness, and passes them to Hawk's fire control radar. | Other stocks from the sector that are presently performing better include Ducommun Inc. ( DCO ) and Lockheed Martin Corporation ( LMT ) with a Zacks Rank #1 (Strong Buy), and The Boeing Company ( BA ) with a Zacks Rank #2 (Buy). BOEING CO (BA): Free Stock Analysis Report DUCOMMUN INC DE (DCO): Free Stock Analysis Report LOCKHEED MARTIN (LMT): Free Stock Analysis Report NORTHROP GRUMMN (NOC): Free Stock Analysis Report To read this article on Zacks.com click here. Northrop Grumman Corporation ( NOC ) has introduced the Fourth Generation Tracking Adjunct Sensor (4G TAS) for its Hawk air defense system. | BOEING CO (BA): Free Stock Analysis Report DUCOMMUN INC DE (DCO): Free Stock Analysis Report LOCKHEED MARTIN (LMT): Free Stock Analysis Report NORTHROP GRUMMN (NOC): Free Stock Analysis Report To read this article on Zacks.com click here. Other stocks from the sector that are presently performing better include Ducommun Inc. ( DCO ) and Lockheed Martin Corporation ( LMT ) with a Zacks Rank #1 (Strong Buy), and The Boeing Company ( BA ) with a Zacks Rank #2 (Buy). Northrop Grumman Corporation ( NOC ) has introduced the Fourth Generation Tracking Adjunct Sensor (4G TAS) for its Hawk air defense system. | Other stocks from the sector that are presently performing better include Ducommun Inc. ( DCO ) and Lockheed Martin Corporation ( LMT ) with a Zacks Rank #1 (Strong Buy), and The Boeing Company ( BA ) with a Zacks Rank #2 (Buy). BOEING CO (BA): Free Stock Analysis Report DUCOMMUN INC DE (DCO): Free Stock Analysis Report LOCKHEED MARTIN (LMT): Free Stock Analysis Report NORTHROP GRUMMN (NOC): Free Stock Analysis Report To read this article on Zacks.com click here. Northrop Grumman Corporation ( NOC ) has introduced the Fourth Generation Tracking Adjunct Sensor (4G TAS) for its Hawk air defense system. | 61bcef27-2dc0-44fa-989b-d4d93ab6d12f |
710317.0 | 2013-03-26 00:00:00 UTC | Strong Buy on Lockheed Martin - Analyst Blog | DCO | https://www.nasdaq.com/articles/strong-buy-on-lockheed-martin-analyst-blog-2013-03-26 | nan | nan | On Mar 26, we upgraded aerospace and defense major Lockheed Martin Corporation ( LMT ) to a Zacks Rank #1 (Strong Buy).
Why the Upgrade?
Lockheed reported mixed results in the fourth quarter 2012 with earnings below and revenue above the Zacks Consensus Estimates. But that did not deter us from holding a bullish outlook on the company. Our favorable outlook stems from a solid order backlog, incremental dividend payouts and positive initiatives taken by the company.
Lockheed Martin is a well-managed defense prime. Its working capital improvements continue to impress, as is evident from its inventory turnover of 16.1 times in the trailing twelve months at the end of 2012, compared to only 3.1 times for the Zacks industry average -- a strong sign of operational efficiency. In addition, Lockheed's operational effectiveness is evident in its industry-high Return on Investment (ROI) of 34.9% in 2012.
Lockheed Martin has one of the strongest balance sheets among its peers, with a stable long-term debt-to-capitalization of 80.2% at the end of 2012. Lockheed continues to be a strong cash generator with its operating cash flow reaching approximately $1.6 billion during 2012.
Lockheed's premier position in the defense space is upheld by the company's solid 2013 guidance. Lockheed Martin forecast full-year 2013 earnings per share in the range of $8.80-$9.10 on net revenues of $44.5-$46.0 billion.
Over the long term, the earnings growth rate is pegged at 6.08% while the top line is expected to rise at a clip of 2.66%. The last 90 days saw the Zacks Consensus Estimates for 2013 and 2014 rise a respective 7.6% and 2.9% to $8.87 and $9.11.
Other Stocks to Consider
Besides Lockheed Martin, other defense stocks that are currently performing well include The Boeing Company ( BA ) and Alliant Techsystems Inc. ( ATK ). These companies carry a Zacks Rank #2 (Buy). We also have Ducommun Inc. ( DCO ), which currently sports a Zacks Rank #1 (Strong Buy).
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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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | We also have Ducommun Inc. ( DCO ), which currently sports a Zacks Rank #1 (Strong Buy). ALLIANT TECHSYS (ATK): Free Stock Analysis Report BOEING CO (BA): Free Stock Analysis Report DUCOMMUN INC DE (DCO): Free Stock Analysis Report LOCKHEED MARTIN (LMT): Free Stock Analysis Report To read this article on Zacks.com click here. On Mar 26, we upgraded aerospace and defense major Lockheed Martin Corporation ( LMT ) to a Zacks Rank #1 (Strong Buy). | ALLIANT TECHSYS (ATK): Free Stock Analysis Report BOEING CO (BA): Free Stock Analysis Report DUCOMMUN INC DE (DCO): Free Stock Analysis Report LOCKHEED MARTIN (LMT): Free Stock Analysis Report To read this article on Zacks.com click here. We also have Ducommun Inc. ( DCO ), which currently sports a Zacks Rank #1 (Strong Buy). On Mar 26, we upgraded aerospace and defense major Lockheed Martin Corporation ( LMT ) to a Zacks Rank #1 (Strong Buy). | ALLIANT TECHSYS (ATK): Free Stock Analysis Report BOEING CO (BA): Free Stock Analysis Report DUCOMMUN INC DE (DCO): Free Stock Analysis Report LOCKHEED MARTIN (LMT): Free Stock Analysis Report To read this article on Zacks.com click here. We also have Ducommun Inc. ( DCO ), which currently sports a Zacks Rank #1 (Strong Buy). On Mar 26, we upgraded aerospace and defense major Lockheed Martin Corporation ( LMT ) to a Zacks Rank #1 (Strong Buy). | We also have Ducommun Inc. ( DCO ), which currently sports a Zacks Rank #1 (Strong Buy). ALLIANT TECHSYS (ATK): Free Stock Analysis Report BOEING CO (BA): Free Stock Analysis Report DUCOMMUN INC DE (DCO): Free Stock Analysis Report LOCKHEED MARTIN (LMT): Free Stock Analysis Report To read this article on Zacks.com click here. On Mar 26, we upgraded aerospace and defense major Lockheed Martin Corporation ( LMT ) to a Zacks Rank #1 (Strong Buy). | 4a451936-8f68-4931-9e2d-24bf521de807 |
710318.0 | 2013-03-21 00:00:00 UTC | Boeing Gets Ryanair Commitment - Analyst Blog | DCO | https://www.nasdaq.com/articles/boeing-gets-ryanair-commitment-analyst-blog-2013-03-21 | nan | nan | The Boeing Company ( BA ) has received an order-commitment from Irish low cost carrier Ryanair Holdings plc ( RYAAY ) to deliver 175 units of Next-Generation 737-800 airplanes. This assurance is part of Ryanair's fleet expansion program and has the potential value of $15.6 billion at list prices, if exercised.
Boeing has a long-standing alliance with Ryanair and aims to meet its commitments in terms of maintaining product standard along with delivery timing. Ryanair is one of the major operators of the 737-800 airplanes, having more than 300 units. The airline took delivery of its first 737-800 airplane from Boeing in 1999.
The Boeing Next-Generation 737-800 airplanes came into service on Sep 5, 1994. This model continues to be a pillar of strength for Boeing in the commercial airplane sector. Steady demand for this model is primarily driven by fuel efficiency and lower operating costs compared with other models. The single-aisle aircraft can accommodate 162-189 passengers and can fly approximately 3,000 nautical miles (3,452.3 miles).
To cope with the anticipated higher demand, the company increased the production rate of this airplane twice in the recent past. Boeing aims to increase production to 38 from 35 airplanes per month from the second quarter of 2013, and subsequently increase it to 42 airplanes per month next year.
As of Mar 12, 2013, net orders received by Boeing for 737, stands at 138 airplanes. The delivery of Next-Generation 737 in full-year 2012 reached 415 units, making it the company's highest selling model.
During fourth-quarter 2012, top-line contribution from Boeing's Commercial Airplane segment rose 32% year over year along with net orders booking of 394 airplanes. At the end of 2012, the company's backlog was more than 4,400 airplanes valued at a record $319 billion.
Chicago-based Boeing Company is a premier jet aircraft manufacturer and one of the largest defense contractors in the U.S.
The company currently has a Zacks Rank #2 (Buy). Other stocks from the sector that are also performing well presently include Ducommun Inc. ( DCO ) with a Zacks Rank #1 (Strong Buy), and Lockheed Martin Corporation ( LMT ) with a Zacks Rank #2 (Buy).
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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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Other stocks from the sector that are also performing well presently include Ducommun Inc. ( DCO ) with a Zacks Rank #1 (Strong Buy), and Lockheed Martin Corporation ( LMT ) with a Zacks Rank #2 (Buy). BOEING CO (BA): Free Stock Analysis Report DUCOMMUN INC DE (DCO): Free Stock Analysis Report LOCKHEED MARTIN (LMT): Free Stock Analysis Report RYANAIR HLDGS (RYAAY): Free Stock Analysis Report To read this article on Zacks.com click here. The Boeing Company ( BA ) has received an order-commitment from Irish low cost carrier Ryanair Holdings plc ( RYAAY ) to deliver 175 units of Next-Generation 737-800 airplanes. | Other stocks from the sector that are also performing well presently include Ducommun Inc. ( DCO ) with a Zacks Rank #1 (Strong Buy), and Lockheed Martin Corporation ( LMT ) with a Zacks Rank #2 (Buy). BOEING CO (BA): Free Stock Analysis Report DUCOMMUN INC DE (DCO): Free Stock Analysis Report LOCKHEED MARTIN (LMT): Free Stock Analysis Report RYANAIR HLDGS (RYAAY): Free Stock Analysis Report To read this article on Zacks.com click here. During fourth-quarter 2012, top-line contribution from Boeing's Commercial Airplane segment rose 32% year over year along with net orders booking of 394 airplanes. | BOEING CO (BA): Free Stock Analysis Report DUCOMMUN INC DE (DCO): Free Stock Analysis Report LOCKHEED MARTIN (LMT): Free Stock Analysis Report RYANAIR HLDGS (RYAAY): Free Stock Analysis Report To read this article on Zacks.com click here. Other stocks from the sector that are also performing well presently include Ducommun Inc. ( DCO ) with a Zacks Rank #1 (Strong Buy), and Lockheed Martin Corporation ( LMT ) with a Zacks Rank #2 (Buy). The Boeing Company ( BA ) has received an order-commitment from Irish low cost carrier Ryanair Holdings plc ( RYAAY ) to deliver 175 units of Next-Generation 737-800 airplanes. | Other stocks from the sector that are also performing well presently include Ducommun Inc. ( DCO ) with a Zacks Rank #1 (Strong Buy), and Lockheed Martin Corporation ( LMT ) with a Zacks Rank #2 (Buy). BOEING CO (BA): Free Stock Analysis Report DUCOMMUN INC DE (DCO): Free Stock Analysis Report LOCKHEED MARTIN (LMT): Free Stock Analysis Report RYANAIR HLDGS (RYAAY): Free Stock Analysis Report To read this article on Zacks.com click here. The Boeing Company ( BA ) has received an order-commitment from Irish low cost carrier Ryanair Holdings plc ( RYAAY ) to deliver 175 units of Next-Generation 737-800 airplanes. | 361156c6-0123-4baa-909a-9fada3b9808f |
710319.0 | 2013-03-18 00:00:00 UTC | Zacks Rank #1 Addition for Monday - Tale of the Tape | DCO | https://www.nasdaq.com/articles/zacks-rank-1-addition-for-monday-tale-of-the-tape-2013-03-18 | nan | nan | Here are 5 stocks added to the Zacks Rank #1 ("strong buy") List today:
Addus Homecare Corp. ( ADUS )
Advent Software, Inc. ( ADVS )
CVR Partners LP ( UAN )
Ducommun Inc. ( DCO )
eGain Communications Corp. ( EGAN )
View the entire Zacks Rank #1 List .
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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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Here are 5 stocks added to the Zacks Rank #1 ("strong buy") List today: Addus Homecare Corp. ( ADUS ) Advent Software, Inc. ( ADVS ) CVR Partners LP ( UAN ) Ducommun Inc. ( DCO ) eGain Communications Corp. ( EGAN ) View the entire Zacks Rank #1 List . ADDUS HOMECARE (ADUS): Free Stock Analysis Report ADVENT SOFTWARE (ADVS): Free Stock Analysis Report DUCOMMUN INC DE (DCO): Free Stock Analysis Report EGAIN COMM CORP (EGAN): Free Stock Analysis Report CVR PARTNERS LP (UAN): 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. | Here are 5 stocks added to the Zacks Rank #1 ("strong buy") List today: Addus Homecare Corp. ( ADUS ) Advent Software, Inc. ( ADVS ) CVR Partners LP ( UAN ) Ducommun Inc. ( DCO ) eGain Communications Corp. ( EGAN ) View the entire Zacks Rank #1 List . ADDUS HOMECARE (ADUS): Free Stock Analysis Report ADVENT SOFTWARE (ADVS): Free Stock Analysis Report DUCOMMUN INC DE (DCO): Free Stock Analysis Report EGAIN COMM CORP (EGAN): Free Stock Analysis Report CVR PARTNERS LP (UAN): 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. | Here are 5 stocks added to the Zacks Rank #1 ("strong buy") List today: Addus Homecare Corp. ( ADUS ) Advent Software, Inc. ( ADVS ) CVR Partners LP ( UAN ) Ducommun Inc. ( DCO ) eGain Communications Corp. ( EGAN ) View the entire Zacks Rank #1 List . ADDUS HOMECARE (ADUS): Free Stock Analysis Report ADVENT SOFTWARE (ADVS): Free Stock Analysis Report DUCOMMUN INC DE (DCO): Free Stock Analysis Report EGAIN COMM CORP (EGAN): Free Stock Analysis Report CVR PARTNERS LP (UAN): 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. | Here are 5 stocks added to the Zacks Rank #1 ("strong buy") List today: Addus Homecare Corp. ( ADUS ) Advent Software, Inc. ( ADVS ) CVR Partners LP ( UAN ) Ducommun Inc. ( DCO ) eGain Communications Corp. ( EGAN ) View the entire Zacks Rank #1 List . ADDUS HOMECARE (ADUS): Free Stock Analysis Report ADVENT SOFTWARE (ADVS): Free Stock Analysis Report DUCOMMUN INC DE (DCO): Free Stock Analysis Report EGAIN COMM CORP (EGAN): Free Stock Analysis Report CVR PARTNERS LP (UAN): 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. | 57a283fb-93b5-49cf-88f9-2ef0a7dcce51 |
710320.0 | 2013-03-12 00:00:00 UTC | Lockheed Receives Saudi Contract - Analyst Blog | DCO | https://www.nasdaq.com/articles/lockheed-receives-saudi-contract-analyst-blog-2013-03-12 | nan | nan | Lockheed Martin Corporation ( LMT ) has entered into an agreement, worth $253 million, with the Royal Saudi Air Force (RSAF) to provide assistance for the latter's F-15SA pilot and maintenance training systems. Lockheed Martin's Mission Systems and Training business will be responsible for this contract.
Per the contract, Lockheed Martin will offer a complete ground-based training setup for Saudi Arabia's F-15SA modernization program. Utilizing this technology, pilots will engage in air-to-surface combats, air-to-air warfare, air combat tricks and strategic intercepts with 360-degree full mission trainers. The company will also offer avionics, egress and desktop trainers for procedure training by pilots.
In addition, Lockheed Martin will provide virtual systems, which will enable training without the actual aircraft. This offering includes basic maintenance, armaments, landing gears and arresting hooks, flight controls and jet fuel starter trainers. The company will roll out the deliveries from its facilities at Akron, Ohio, and Orlando, Fla. The deliveries are expected to be complete by 2020.
Lockheed Martin has been associated with Saudi Arabian defense establishments for long and even acted as an F-15 training partner for more than three decades. In Feb 2013, Lockheed Martin set up its Saudi Arabian headquarters in Riyadh to strengthen its strategic alliance with the country.
Bethesda, Md.-based Lockheed Martin Corporation is a global security and aerospace company that is principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services.
The U.S. Department of Defense is one of the major customers of the company and therefore any cutbacks in the U.S. defense budget could limit Lockheed Martin's future growth prospects. To manage domestic order curtailments, most of the U.S. defense players are now expanding their operations outside the U.S. particularly in the Middle East.
In Jan 2013, Lockheed Martin's peer General Dynamics Corporation ( GD ) received an order, worth $132.7 million, from the Kingdom of Saudi Arabia for the procurement and production of 69 Saudi M1A2 (M1A2S) Abrams tanks.
Lockheed Martin Corporation currently has a Zacks Rank #2 (Buy). Other stocks from the sector that are presently performing well include Ducommun Inc. ( DCO ) with a Zacks Rank #1 (Strong Buy) and The Boeing Company ( BA ) with a Zacks Rank #2 (Buy).
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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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Other stocks from the sector that are presently performing well include Ducommun Inc. ( DCO ) with a Zacks Rank #1 (Strong Buy) and The Boeing Company ( BA ) with a Zacks Rank #2 (Buy). BOEING CO (BA): Free Stock Analysis Report DUCOMMUN INC DE (DCO): Free Stock Analysis Report GENL DYNAMICS (GD): Free Stock Analysis Report LOCKHEED MARTIN (LMT): Free Stock Analysis Report To read this article on Zacks.com click here. Lockheed Martin Corporation ( LMT ) has entered into an agreement, worth $253 million, with the Royal Saudi Air Force (RSAF) to provide assistance for the latter's F-15SA pilot and maintenance training systems. | Other stocks from the sector that are presently performing well include Ducommun Inc. ( DCO ) with a Zacks Rank #1 (Strong Buy) and The Boeing Company ( BA ) with a Zacks Rank #2 (Buy). BOEING CO (BA): Free Stock Analysis Report DUCOMMUN INC DE (DCO): Free Stock Analysis Report GENL DYNAMICS (GD): Free Stock Analysis Report LOCKHEED MARTIN (LMT): Free Stock Analysis Report To read this article on Zacks.com click here. In Jan 2013, Lockheed Martin's peer General Dynamics Corporation ( GD ) received an order, worth $132.7 million, from the Kingdom of Saudi Arabia for the procurement and production of 69 Saudi M1A2 (M1A2S) Abrams tanks. | BOEING CO (BA): Free Stock Analysis Report DUCOMMUN INC DE (DCO): Free Stock Analysis Report GENL DYNAMICS (GD): Free Stock Analysis Report LOCKHEED MARTIN (LMT): Free Stock Analysis Report To read this article on Zacks.com click here. Other stocks from the sector that are presently performing well include Ducommun Inc. ( DCO ) with a Zacks Rank #1 (Strong Buy) and The Boeing Company ( BA ) with a Zacks Rank #2 (Buy). Lockheed Martin Corporation ( LMT ) has entered into an agreement, worth $253 million, with the Royal Saudi Air Force (RSAF) to provide assistance for the latter's F-15SA pilot and maintenance training systems. | Other stocks from the sector that are presently performing well include Ducommun Inc. ( DCO ) with a Zacks Rank #1 (Strong Buy) and The Boeing Company ( BA ) with a Zacks Rank #2 (Buy). BOEING CO (BA): Free Stock Analysis Report DUCOMMUN INC DE (DCO): Free Stock Analysis Report GENL DYNAMICS (GD): Free Stock Analysis Report LOCKHEED MARTIN (LMT): Free Stock Analysis Report To read this article on Zacks.com click here. Per the contract, Lockheed Martin will offer a complete ground-based training setup for Saudi Arabia's F-15SA modernization program. | aa8385d2-4482-48ca-8c58-cc81db8592d9 |
710321.0 | 2013-03-11 00:00:00 UTC | Alliant Obtains $12M Navy Contract - Analyst Blog | DCO | https://www.nasdaq.com/articles/alliant-obtains-%2412m-navy-contract-analyst-blog-2013-03-11 | nan | nan | Alliant Techsystems Inc. ( ATK ) has entered into a firm-fixed price five-year Indefinite Delivery/Indefinite Quantity (IDIQ) contract with the U.S. Navy to deliver 30mm x 173mm, MK266 High Explosive Incendiary with Trace Cartridges in MK15 Linked Belts. The agreement authorizes the initial funding of roughly $12 million and has the maximum potential value of $41 million. Alliant's Defense Group will be responsible for this contract.
Per the agreement, Alliant will provide 30mm x 173mm ammunitions to the U.S. Navy. The company will roll out the deliveries from its Allegheny Ballistics Laboratory facility in Rocket Center at W. Va. and New River Energetics facility in Radford, Va. The deliveries are expected to start from 2014 and will be over by 2018.
Alliant's series of 30mm x 173mm ammunition provides cost-effective, anti-personnel, and armor-piercing training rounds for improved war-fighter performance. In addition, these ammunitions offer exceptional accuracy, lethality and necessary penetration to overcome the threats on the battlefield. The MK266 is an alteration to the PGU-13 High Explosive Incendiary 30mm round along with the addition of a tracer. It is installed at the MK46 Mod 2 Gun Weapon System of the U.S. Navy's San Antonio class Landing Platform Dock ships and Littoral Combat Ships.
Alliant plays a significant role to meet the U.S. defense establishment's demand for the small and medium caliber ammunitions. Till date, the company has supplied roughly 200 million rounds of 30 mm GAU-8 ammunitions to the armed forces.
In December last year, the company had received a similar kind of IDIQ contract, worth $75 million, from Department of Justice and Federal Bureau of Investigation to deliver .40 caliber ammunitions.
We consider these kinds of small ticket-size deals further strengthen Alliant's ongoing alliance with different government organizations.
However, we believe that any further U.S. defense budget cutback could limit the company's future growth prospects. In addition, the higher degree of competition from a number of players in each of Alliant's business segments is also our concern.
Considering positive and negative factors, we prefer Alliant Techsystems Inc. to have a Zacks Rank #2 (Buy). Other stocks from the industry we presently prefer are Zacks Ranked #1 (Strong Buy) Ducommun Inc. ( DCO ), and Rockwell Collins Inc. ( COL ) and Hexcel Corporation ( HXL ) with Zacks Rank #2 (Buy).
Arlington, Virginia-based Alliant Techsystems Inc. provides aerospace and defense products to the U.S. government agencies. The company also supplies ammunition and related accessories to law enforcement agencies and commercial customers.
ALLIANT TECHSYS (ATK): Free Stock Analysis Report
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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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Other stocks from the industry we presently prefer are Zacks Ranked #1 (Strong Buy) Ducommun Inc. ( DCO ), and Rockwell Collins Inc. ( COL ) and Hexcel Corporation ( HXL ) with Zacks Rank #2 (Buy). ALLIANT TECHSYS (ATK): Free Stock Analysis Report ROCKWELL COLLIN (COL): Free Stock Analysis Report DUCOMMUN INC DE (DCO): Free Stock Analysis Report HEXCEL CORP (HXL): Free Stock Analysis Report To read this article on Zacks.com click here. Alliant Techsystems Inc. ( ATK ) has entered into a firm-fixed price five-year Indefinite Delivery/Indefinite Quantity (IDIQ) contract with the U.S. Navy to deliver 30mm x 173mm, MK266 High Explosive Incendiary with Trace Cartridges in MK15 Linked Belts. | Other stocks from the industry we presently prefer are Zacks Ranked #1 (Strong Buy) Ducommun Inc. ( DCO ), and Rockwell Collins Inc. ( COL ) and Hexcel Corporation ( HXL ) with Zacks Rank #2 (Buy). ALLIANT TECHSYS (ATK): Free Stock Analysis Report ROCKWELL COLLIN (COL): Free Stock Analysis Report DUCOMMUN INC DE (DCO): Free Stock Analysis Report HEXCEL CORP (HXL): Free Stock Analysis Report To read this article on Zacks.com click here. Alliant Techsystems Inc. ( ATK ) has entered into a firm-fixed price five-year Indefinite Delivery/Indefinite Quantity (IDIQ) contract with the U.S. Navy to deliver 30mm x 173mm, MK266 High Explosive Incendiary with Trace Cartridges in MK15 Linked Belts. | ALLIANT TECHSYS (ATK): Free Stock Analysis Report ROCKWELL COLLIN (COL): Free Stock Analysis Report DUCOMMUN INC DE (DCO): Free Stock Analysis Report HEXCEL CORP (HXL): Free Stock Analysis Report To read this article on Zacks.com click here. Other stocks from the industry we presently prefer are Zacks Ranked #1 (Strong Buy) Ducommun Inc. ( DCO ), and Rockwell Collins Inc. ( COL ) and Hexcel Corporation ( HXL ) with Zacks Rank #2 (Buy). Alliant Techsystems Inc. ( ATK ) has entered into a firm-fixed price five-year Indefinite Delivery/Indefinite Quantity (IDIQ) contract with the U.S. Navy to deliver 30mm x 173mm, MK266 High Explosive Incendiary with Trace Cartridges in MK15 Linked Belts. | Other stocks from the industry we presently prefer are Zacks Ranked #1 (Strong Buy) Ducommun Inc. ( DCO ), and Rockwell Collins Inc. ( COL ) and Hexcel Corporation ( HXL ) with Zacks Rank #2 (Buy). ALLIANT TECHSYS (ATK): Free Stock Analysis Report ROCKWELL COLLIN (COL): Free Stock Analysis Report DUCOMMUN INC DE (DCO): Free Stock Analysis Report HEXCEL CORP (HXL): Free Stock Analysis Report To read this article on Zacks.com click here. Alliant Techsystems Inc. ( ATK ) has entered into a firm-fixed price five-year Indefinite Delivery/Indefinite Quantity (IDIQ) contract with the U.S. Navy to deliver 30mm x 173mm, MK266 High Explosive Incendiary with Trace Cartridges in MK15 Linked Belts. | 67e6a85c-b2aa-4bc8-84b5-a81d41b5205b |
710322.0 | 2013-03-04 00:00:00 UTC | After-Hours Earnings Report for March 4, 2013 : ASNA, ABM, SHFL, SNTS, RSO, EPIQ, TCRD, GSS, REGI, CWST, DCO, AACC | DCO | https://www.nasdaq.com/articles/after-hours-earnings-report-march-4-2013-asna-abm-shfl-snts-rso-epiq-tcrd-gss-regi-cwst | nan | nan | The following companies are expected to report earnings after hours on 03/04/2013. Visit our Earnings Calendar for a full list of expected earnings releases.
Ascena Retail Group, Inc. ( ASNA ) is reporting for the quarter ending January 31, 2013. The retail (shoe) company's consensus earnings per share forecast from the 9 analysts that follow the stock is $0.24. This value represents a -41.46% decrease compared to the same quarter last year. ASNA missed the consensus earnings per share in the 2nd calendar quarter of 2012 by -5.56%. Zacks Investment Research reports that the 2013 Price to Earnings ratio for ASNA is 13.06 vs. an industry ratio of -13.40, implying that they will have a higher earnings growth than their competitors in the same industry.
ABM Industries Incorporated ( ABM ) is reporting for the quarter ending January 31, 2013. The building maintenance & services company's consensus earnings per share forecast from the 4 analysts that follow the stock is $0.22. This value represents a no change for the same quarter last year. ABM missed the consensus earnings per share in the 3rd calendar quarter of 2012 by -11.9%. Zacks Investment Research reports that the 2013 Price to Earnings ratio for ABM is 16.47 vs. an industry ratio of 19.40.
SHFL Entertainment, Inc. ( SHFL ) is reporting for the quarter ending January 31, 2013. The gaming company's consensus earnings per share forecast from the 6 analysts that follow the stock is $0.14. This value represents a no change for the same quarter last year. SHFL missed the consensus earnings per share in the 3rd calendar quarter of 2012 by -10%. Zacks Investment Research reports that the 2013 Price to Earnings ratio for SHFL is 19.80 vs. an industry ratio of 11.00, implying that they will have a higher earnings growth than their competitors in the same industry.
Santarus, Inc. ( SNTS ) is reporting for the quarter ending December 31, 2012. The drug company's consensus earnings per share forecast from the 5 analysts that follow the stock is $0.01. This value represents a -66.67% decrease compared to the same quarter last year. SNTS missed the consensus earnings per share in the 2nd calendar quarter of 2012 by -37.5%. Zacks Investment Research reports that the 2012 Price to Earnings ratio for SNTS is 67.30 vs. an industry ratio of 9.50, implying that they will have a higher earnings growth than their competitors in the same industry.
Resource Capital Corp. ( RSO ) is reporting for the quarter ending December 31, 2012. The reit company's consensus earnings per share forecast from the 1 analyst that follows the stock is $0.17. This value represents a 750.00% increase compared to the same quarter last year. Zacks Investment Research reports that the 2012 Price to Earnings ratio for RSO is 8.32 vs. an industry ratio of 15.60.
EPIQ Systems, Inc. ( EPIQ ) is reporting for the quarter ending December 31, 2012. The computer software company's consensus earnings per share forecast from the 1 analyst that follows the stock is $0.22. This value represents a 4.76% increase compared to the same quarter last year. In the past year EPIQ has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2012 Price to Earnings ratio for EPIQ is 14.71 vs. an industry ratio of 9.90, implying that they will have a higher earnings growth than their competitors in the same industry.
THL Credit, Inc. ( TCRD ) is reporting for the quarter ending December 31, 2012. The financial services company's consensus earnings per share forecast from the 5 analysts that follow the stock is $0.32. This value represents a 6.67% increase compared to the same quarter last year. In the past year TCRD has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2012 Price to Earnings ratio for TCRD is 11.98 vs. an industry ratio of 19.50.
Golden Star Resources, Ltd ( GSS ) is reporting for the quarter ending December 31, 2012. The consensus earnings per share forecast from the 5 analysts that follow the stock is $0.03. GSS reported earnings of $0.02 per share for the same quarter a year ago; representing a a increase of 50.00%. The "days to cover" for this stock exceeds 10 days. Renewable Energy Group, Inc. ( REGI ) is reporting for the quarter ending December 31, 2012. The biofuels company's consensus earnings per share forecast from the 5 analysts that follow the stock is $-0.02. This value represents a -100.51% decrease compared to the same quarter last year. REGI missed the consensus earnings per share in the 1st calendar quarter of 2012 by -53.85%. Zacks Investment Research reports that the 2012 Price to Earnings ratio for REGI is 39.16 vs. an industry ratio of -0.10, implying that they will have a higher earnings growth than their competitors in the same industry.
Casella Waste Systems, Inc. ( CWST ) is reporting for the quarter ending January 31, 2013. The pollution control company's consensus earnings per share forecast from the 4 analysts that follow the stock is $-0.16. This value represents a -42.86% decrease compared to the same quarter last year. Zacks Investment Research reports that the 2013 Price to Earnings ratio for CWST is -6.51 vs. an industry ratio of 8.50.
Ducommun Incorporated ( DCO ) is reporting for the quarter ending December 31, 2012. The aerospace and defense company's consensus earnings per share forecast from the 5 analysts that follow the stock is $0.42. This value represents a 55.56% increase compared to the same quarter last year. Zacks Investment Research reports that the 2012 Price to Earnings ratio for DCO is 9.33 vs. an industry ratio of 35.40.
Asset Acceptance Capital Corp. ( AACC ) is reporting for the quarter ending December 31, 2012. The financial services company's consensus earnings per share forecast from the 2 analysts that follow the stock is $0.06. This value represents a -62.50% decrease compared to the same quarter last year. In the past year AACC has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 42.86%. The "days to cover" for this stock exceeds 27 days. Zacks Investment Research reports that the 2012 Price to Earnings ratio for AACC is 13.03 vs. an industry ratio of 22.10.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Ducommun Incorporated ( DCO ) is reporting for the quarter ending December 31, 2012. Zacks Investment Research reports that the 2012 Price to Earnings ratio for DCO is 9.33 vs. an industry ratio of 35.40. The retail (shoe) company's consensus earnings per share forecast from the 9 analysts that follow the stock is $0.24. | Ducommun Incorporated ( DCO ) is reporting for the quarter ending December 31, 2012. Zacks Investment Research reports that the 2012 Price to Earnings ratio for DCO is 9.33 vs. an industry ratio of 35.40. Zacks Investment Research reports that the 2013 Price to Earnings ratio for ASNA is 13.06 vs. an industry ratio of -13.40, implying that they will have a higher earnings growth than their competitors in the same industry. | Ducommun Incorporated ( DCO ) is reporting for the quarter ending December 31, 2012. Zacks Investment Research reports that the 2012 Price to Earnings ratio for DCO is 9.33 vs. an industry ratio of 35.40. Zacks Investment Research reports that the 2013 Price to Earnings ratio for SHFL is 19.80 vs. an industry ratio of 11.00, implying that they will have a higher earnings growth than their competitors in the same industry. | Ducommun Incorporated ( DCO ) is reporting for the quarter ending December 31, 2012. Zacks Investment Research reports that the 2012 Price to Earnings ratio for DCO is 9.33 vs. an industry ratio of 35.40. ABM missed the consensus earnings per share in the 3rd calendar quarter of 2012 by -11.9%. | 8d2d40bb-7df6-40b2-8e89-83de4f5592a6 |
710323.0 | 2013-01-24 00:00:00 UTC | AAR Chosen for Airlift yet Again - Analyst Blog | DCO | https://www.nasdaq.com/articles/aar-chosen-for-airlift-yet-again-analyst-blog-2013-01-24 | nan | nan | AAR Corp. ( AIR ), one of the top contractors of aerospace, defense products and services in the world, declared that its contract to provide airlift services in Western and Central Africa has been renewed. The contract is expected to close by June 2013 and is valued at roughly $9 million.
The agreement entails providing services to U.S. Army Space and Missile Defense Command (SMDC) and U.S. Department of Defense Counter Narco-Terrorism Program Office (CNTPO) operations. Per the terms of the renewed contract, the company will be responsible for personnel and supplies transportation through the use of two fixed-wing aircraft.
The company has a track record of successful contracts with the US government. This deal, therefore, further strengthens the company's ties with the government due to the safety and reliability of the services it offers.
AAR reported its fiscal second quarter 2013 results last month with earnings per share of 44 cents and revenue of $512.8 million. Based on the improved year-over-year results for the quarter, management increased its earnings outlook for fiscal 2013. New contracts as well as contract renewals are expected to help the company to achieve the target.
Illinois based AAR Corp. provides a wide range of high-quality, and cost-effective technical services. The company's airlift unit is engaged in offering expeditionary airlift and specific aircraft services to assist national security, safety and humanitarian relief operations in various regions.
AAR Corp. carries a Zacks Rank #3 (Hold). Other stocks in the industry which are worth considering include Alliant Techsystems Inc. ( ATK ), Ducommun Inc. ( DCO ) and Triumph Group Inc. ( TGI ). Each of them holds a Zacks Rank #1 (Strong Buy).
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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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Other stocks in the industry which are worth considering include Alliant Techsystems Inc. ( ATK ), Ducommun Inc. ( DCO ) and Triumph Group Inc. ( TGI ). AAR CORP (AIR): Free Stock Analysis Report ALLIANT TECHSYS (ATK): Free Stock Analysis Report DUCOMMUN INC DE (DCO): Free Stock Analysis Report TRIUMPH GRP INC (TGI): Free Stock Analysis Report To read this article on Zacks.com click here. Per the terms of the renewed contract, the company will be responsible for personnel and supplies transportation through the use of two fixed-wing aircraft. | Other stocks in the industry which are worth considering include Alliant Techsystems Inc. ( ATK ), Ducommun Inc. ( DCO ) and Triumph Group Inc. ( TGI ). AAR CORP (AIR): Free Stock Analysis Report ALLIANT TECHSYS (ATK): Free Stock Analysis Report DUCOMMUN INC DE (DCO): Free Stock Analysis Report TRIUMPH GRP INC (TGI): 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. | AAR CORP (AIR): Free Stock Analysis Report ALLIANT TECHSYS (ATK): Free Stock Analysis Report DUCOMMUN INC DE (DCO): Free Stock Analysis Report TRIUMPH GRP INC (TGI): Free Stock Analysis Report To read this article on Zacks.com click here. Other stocks in the industry which are worth considering include Alliant Techsystems Inc. ( ATK ), Ducommun Inc. ( DCO ) and Triumph Group Inc. ( TGI ). AAR Corp. ( AIR ), one of the top contractors of aerospace, defense products and services in the world, declared that its contract to provide airlift services in Western and Central Africa has been renewed. | Other stocks in the industry which are worth considering include Alliant Techsystems Inc. ( ATK ), Ducommun Inc. ( DCO ) and Triumph Group Inc. ( TGI ). AAR CORP (AIR): Free Stock Analysis Report ALLIANT TECHSYS (ATK): Free Stock Analysis Report DUCOMMUN INC DE (DCO): Free Stock Analysis Report TRIUMPH GRP INC (TGI): Free Stock Analysis Report To read this article on Zacks.com click here. AAR Corp. ( AIR ), one of the top contractors of aerospace, defense products and services in the world, declared that its contract to provide airlift services in Western and Central Africa has been renewed. | c70639aa-1a4c-4f0b-a764-5997f8d8c4a0 |
710324.0 | 2012-12-12 00:00:00 UTC | Ducommun Gets Boeing Contract - Analyst Blog | DCO | https://www.nasdaq.com/articles/ducommun-gets-boeing-contract-analyst-blog-2012-12-12 | nan | nan | Ducommun Inc. ( DCO ) announced it has received a contract from The Boeing Company ( BA ) to produce titanium detail components and subassemblies for the Boeing 787 Dreamliner. Under the terms of the contract, production on the titanium assemblies will continue at the Ducommun AeroStructures facility in Coxsackie, New York.
The 787 Dreamliner is a mid-sized, twin-engine jet airliner with various configurations that can carry up to 290 passengers on routes of 8,000 to 8,500 nautical miles. The plane also uses 20% less fuel than similarly sized airplanes.
Ducommun provides engineering and manufacturing services to the aerospace, defense, and other industries through a wide spectrum of electronic and structural applications. The company is an established supplier of critical components and assemblies for commercial aircraft and military and space vehicles as well as for the energy market, medical field, and industrial automation. It operates through two primary business units - Ducommun AeroStructures and Ducommun LaBarge Technologies.
Boeing enjoys a unique position as the largest aircraft manufacturer in the world in terms of revenues, orders and deliveries, and is also one of the largest aerospace and defense contractors. Besides, its revenues are spread across more than 90 countries around the globe.
Boeing taking into account its performance in the first nine months of 2012, raised its full year 2012 earnings per share guidance to a range of $4.80-$4.95 from its earlier range of $4.40-$4.60. The company also raised its revenue guidance for 2012 to the range of $80.5 billion to $82 billion versus the earlier range of $79.5 billion to $81.5 billion.
The company expects its Commercial Airplanes' 2012 deliveries to come between 585 and 600 airplanes, which are already sold out. This includes an expected 70 to 85 787 and 747-8 deliveries. Commercial Airplanes' 2012 revenue is expected to be between $47.5 billion and $49.5 billion with operating margin around 9.0%.
In the defense space, the company expects defense revenue for 2012 to be between $32.5 billion and $33.0 billion versus its earlier range of $31.5 billion and $32.0 billion with operating margin greater than 9%. Boeing Capital Corporation expects that its aircraft finance portfolio will continue to decline in 2012.
Boeing currently retains a Zacks #3 Rank, which translates into a short-term Hold rating. Considering the fundamentals, we are maintaining our Neutral recommendation on the stock. This is in sync with other aerospace and defense behemoths, General Dynamics Corporation ( GD ) and Lockheed Martin Corporation ( LMT ).
BOEING CO (BA): Free Stock Analysis Report
DUCOMMUN INC DE (DCO): Free Stock Analysis Report
GENL DYNAMICS (GD): Free Stock Analysis Report
LOCKHEED MARTIN (LMT): 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Ducommun Inc. ( DCO ) announced it has received a contract from The Boeing Company ( BA ) to produce titanium detail components and subassemblies for the Boeing 787 Dreamliner. BOEING CO (BA): Free Stock Analysis Report DUCOMMUN INC DE (DCO): Free Stock Analysis Report GENL DYNAMICS (GD): Free Stock Analysis Report LOCKHEED MARTIN (LMT): Free Stock Analysis Report To read this article on Zacks.com click here. The 787 Dreamliner is a mid-sized, twin-engine jet airliner with various configurations that can carry up to 290 passengers on routes of 8,000 to 8,500 nautical miles. | BOEING CO (BA): Free Stock Analysis Report DUCOMMUN INC DE (DCO): Free Stock Analysis Report GENL DYNAMICS (GD): Free Stock Analysis Report LOCKHEED MARTIN (LMT): Free Stock Analysis Report To read this article on Zacks.com click here. Ducommun Inc. ( DCO ) announced it has received a contract from The Boeing Company ( BA ) to produce titanium detail components and subassemblies for the Boeing 787 Dreamliner. The company also raised its revenue guidance for 2012 to the range of $80.5 billion to $82 billion versus the earlier range of $79.5 billion to $81.5 billion. | BOEING CO (BA): Free Stock Analysis Report DUCOMMUN INC DE (DCO): Free Stock Analysis Report GENL DYNAMICS (GD): Free Stock Analysis Report LOCKHEED MARTIN (LMT): Free Stock Analysis Report To read this article on Zacks.com click here. Ducommun Inc. ( DCO ) announced it has received a contract from The Boeing Company ( BA ) to produce titanium detail components and subassemblies for the Boeing 787 Dreamliner. The company also raised its revenue guidance for 2012 to the range of $80.5 billion to $82 billion versus the earlier range of $79.5 billion to $81.5 billion. | Ducommun Inc. ( DCO ) announced it has received a contract from The Boeing Company ( BA ) to produce titanium detail components and subassemblies for the Boeing 787 Dreamliner. BOEING CO (BA): Free Stock Analysis Report DUCOMMUN INC DE (DCO): Free Stock Analysis Report GENL DYNAMICS (GD): Free Stock Analysis Report LOCKHEED MARTIN (LMT): Free Stock Analysis Report To read this article on Zacks.com click here. Under the terms of the contract, production on the titanium assemblies will continue at the Ducommun AeroStructures facility in Coxsackie, New York. | 3922739a-7468-49f3-84c1-7e3e736b5732 |
710325.0 | 2011-11-15 00:00:00 UTC | Value Ideas: Top 10 Options Market Picks Trading Well Below Target Price | DCO | https://www.nasdaq.com/articles/value-ideas-top-10-options-market-picks-trading-well-below-target-price-2011-11-15 | nan | nan | (Written by Alexander Crawford. Target price data sourced from Thomson/First Call (via Yahoo! Finance), options data sourced from Schaeffer’s.)
If you consider yourself a value investor, you might be interested in a list like this.
Value investors look for stocks that they believe are trading below their “fair value” with the belief that they’ll soon rise to that fair value, generating a profit for those investors savvy enough to foresee this happening. The catch is deciphering which stocks are indeed underpriced by the market.
Finding a Stock’s Fair Value
There are many ways to find a stock’s fair value, but one of the simplest proxies is analyst target price. This reflects analyst expectations of where the stock is headed within the next year, and if a stock is trading at a steep discount to this number, it may be currently undervalued.
Because target prices are notoriously inflated, it helps to focus on the most pessimistic (the lowest) target prices, as well as those with sufficient analyst coverage of 5 or more analyst ratings.
Investing Ideas
We ran a stock screen to illustrate these ideas, focusing on stocks currently favored by the options market. We screened for stocks seeing significant decreases in put/call ratio over the last ten trading days.
We screened these option market picks for those trading well below their most pessimistic (lowest) target prices, only focusing on stocks with 5 or more analyst ratings.
Do you think these stocks should be trading higher?
Analyze These Ideas (Tools Will Open In A New Window)
1. Access a thorough description of all companies mentioned
2. Compare analyst ratings for all stocks mentioned below
3. Visualize annual returns for all stocks mentioned
List sorted alphabetically.
1. American Axle & Manufacturing Holdings Inc. (AXL): Engages in the manufacture, engineering, design, and validation of driveline and drivetrain systems, and related components and chassis modules for automotive industry in the United States. Of the 9 analysts that track the stock, the lowest price target stands at $11.00, which implies an upside of 29.87% from current levels around $8.47. Over the last two weeks, the stock's Put/Call ratio decreased from 0.22 to 0.13 (a bullish change).
2. Ducommun Inc. (DCO): Designs, engineers, and manufactures aerostructure, and electromechanical components and subassemblies. Of the 6 analysts that track the stock, the lowest price target stands at $16.00, which implies an upside of 29.87% from current levels around $12.32. Over the last two weeks, the stock's Put/Call ratio decreased from 0.13 to 0.09 (a bullish change).
3. Finish Line Inc. (FINL): Operates as a mall-based specialty retailer in the United States. Of the 12 analysts that track the stock, the lowest price target stands at $23.00, which implies an upside of 16.99% from current levels around $19.66. Over the last two weeks, the stock's Put/Call ratio decreased from 0.18 to 0.15 (a bullish change).
4. Halozyme Therapeutics, Inc. (HALO): Engages in the development and commercialization of recombinant human enzymes that transiently modify tissue under the skin to facilitate injection of other therapies or correct diseased tissue structures for clinical benefits. Of the 8 analysts that track the stock, the lowest price target stands at $10.00, which implies an upside of 20.48% from current levels around $8.30. Over the last two weeks, the stock's Put/Call ratio decreased from 0.26 to 0.21 (a bullish change).
5. HEALTHSOUTH Corp. (HLS): HealthSouth Corporation offers inpatient rehabilitative healthcare services in the United States and Puerto Rico. Of the 16 analysts that track the stock, the lowest price target stands at $22.00, which implies an upside of 20.95% from current levels around $18.19. Over the last two weeks, the stock's Put/Call ratio decreased from 0.53 to 0.19 (a bullish change).
6. InfoSpace Inc (INSP): Develops search tools and technologies that assist consumers with finding content and information on the Internet. Of the 5 analysts that track the stock, the lowest price target stands at $11.00, which implies an upside of 28.35% from current levels around $8.57. Over the last two weeks, the stock's Put/Call ratio decreased from 0.53 to 0.09 (a bullish change).
7. Mobile Telesystems OJSC (MBT): Provides telecommunications services primarily in the Russian Federation, Ukraine, Uzbekistan, Turkmenistan, Armenia, and Belarus. Of the 19 analysts that track the stock, the lowest price target stands at $16.00, which implies an upside of 19.94% from current levels around $13.34. Over the last two weeks, the stock's Put/Call ratio decreased from 0.29 to 0.24 (a bullish change).
8. Noranda Aluminum Holding Corp. (NOR): Engages in the production and sale of primary aluminum products and rolled aluminum coils in the United States. Of the 5 analysts that track the stock, the lowest price target stands at $10.00, which implies an upside of 17.65% from current levels around $8.50. Over the last two weeks, the stock's Put/Call ratio decreased from 0.18 to 0.1 (a bullish change).
9. WMS Industries Inc. (WMS): Engages in the design, manufacture, and distribution of games, video and mechanical reel-spinning gaming machines, and video lottery terminals (VLTs) for the legalized gaming industry worldwide. Of the 16 analysts that track the stock, the lowest price target stands at $22.00, which implies an upside of 18.85% from current levels around $18.51. Over the last two weeks, the stock's Put/Call ratio decreased from 1.5 to 0.51 (a bullish change).
10. TAL Education Group (XRS): Provides K-12 after-school tutoring services in the People's Republic of China. Of the 6 analysts that track the stock, the lowest price target stands at $12.60, which implies an upside of 27.92% from current levels around $9.85. Over the last two weeks, the stock's Put/Call ratio decreased from 14.12 to 0.25 (a bullish change).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Ducommun Inc. (DCO): Designs, engineers, and manufactures aerostructure, and electromechanical components and subassemblies. We screened these option market picks for those trading well below their most pessimistic (lowest) target prices, only focusing on stocks with 5 or more analyst ratings. InfoSpace Inc (INSP): Develops search tools and technologies that assist consumers with finding content and information on the Internet. | Ducommun Inc. (DCO): Designs, engineers, and manufactures aerostructure, and electromechanical components and subassemblies. American Axle & Manufacturing Holdings Inc. (AXL): Engages in the manufacture, engineering, design, and validation of driveline and drivetrain systems, and related components and chassis modules for automotive industry in the United States. Of the 9 analysts that track the stock, the lowest price target stands at $11.00, which implies an upside of 29.87% from current levels around $8.47. | Ducommun Inc. (DCO): Designs, engineers, and manufactures aerostructure, and electromechanical components and subassemblies. American Axle & Manufacturing Holdings Inc. (AXL): Engages in the manufacture, engineering, design, and validation of driveline and drivetrain systems, and related components and chassis modules for automotive industry in the United States. Of the 9 analysts that track the stock, the lowest price target stands at $11.00, which implies an upside of 29.87% from current levels around $8.47. | Ducommun Inc. (DCO): Designs, engineers, and manufactures aerostructure, and electromechanical components and subassemblies. We screened for stocks seeing significant decreases in put/call ratio over the last ten trading days. We screened these option market picks for those trading well below their most pessimistic (lowest) target prices, only focusing on stocks with 5 or more analyst ratings. | 654bff93-62b2-4aa2-9cd6-a58ac837fa29 |
710326.0 | 2023-12-16 23:49:00 UTC | US STOCKS-S&P 500, Dow muted as rate-cut rally sputters; FedEx slides | DCOMP | https://www.nasdaq.com/articles/us-stocks-sp-500-dow-muted-as-rate-cut-rally-sputters-fedex-slides | nan | nan | By Johann M Cherian and Shristi Achar A
Dec 20 (Reuters) - The benchmark S&P 500 and the blue-chip Dow were nearly flat on Wednesday as investors took a breather from a rally that was sparked by the Federal Reserve's likely pivot to a dovish policy, while FedEx tumbled after issuing a grim outlook.
Propping up the tech-heavy Nasdaq .IXIC, AlphabetGOOGL.Oclimbed 3.1% to an over one-and-a-half year high after a report said Google is planning to reorganize a big part of its 30,000-person ad sales unit, citing a person with knowledge of the situation.
The three main indexes had advanced over 2% since the Fed's Dec. 13 meet where policymakers projected lower policy rates by the end of 2024, with the Dow notching fresh record highs and the S&P 500 within arm's reach of its highest closing levels since January 2022.
Since then, central bank officials have attempted to keep investor euphoria in check, the latest being Chicago Fed President Austan Goolsbee who said further progress on beating back inflation will be the decisive factor in any central bank decision next year to reduce interest rates.
Still, traders expect the Fed to ease credit conditions by over 125 basis points by September next year, with a 79% chance that the first cut of at least 25 basis points could come in as early as March 2024, according to the CME Group's FedWatch tool.
"(Investors) think that they (Fed) will cut rates more than the Fed is willing to admit that they are likely to cut rates," said Sam Stovall, chief investment strategist at CFRA Research.
Stovall added that with most of the stocks trading above their 50-day moving average, likely indicating over valuation, "the market is due for some near-term digestion of gains."
Meanwhile, FedExFDX.N slid 11.0% after the global delivery firm cut its full-year revenue forecast and reported quarterly profit that fell far short of analysts' targets.
Volatile macroeconomic conditions, muted retailer restocking and reduced demand from the company's largest Express customer, the U.S. Postal Service (USPS), dealt a blow to the company's air delivery business.
The results also dragged down shares of rival United Parcel Service UPS.N by 1.4%.
At 11:28 a.m. ET, the Dow Jones Industrial Average .DJI was up 15.65 points, or 0.04%, at 37,573.57, the S&P 500 .SPX was up 2.53 points, or 0.05%, at 4,770.90, and the Nasdaq Composite .IXIC was up 35.22 points, or 0.23%, at 15,038.45.
Six of the top 11 S&P 500 sectors were in declines, though the communications services sector .SPLRCL added 1.6%, underpinned by gains in Alphabet.
General MillsGIS.Nslipped 2.8% after the Cheerios cereal-maker trimmed its annual sales forecast due to slowing demand for its higher-priced products.
The consumer staples sector .SPLRCS housing the stock declined 1.0%.
Advancing issues outnumbered decliners by a 1.83-to-1 ratio on the NYSE and by a 1.41-to-1 ratio on the Nasdaq.
The S&P index recorded 30 new 52-week highs and one new low, while the Nasdaq recorded 167 new highs and 63 new lows.
Are we there yet? https://tmsnrt.rs/3RQBoee
(Reporting by Johann M Cherian and Shristi Achar A in Bengaluru; Editing by Maju Samuel)
((johann.mcherian@thomsonreuters.com; Shristi.AcharA@thomsonreuters.com https://twitter.com/ShristiAchar;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Johann M Cherian and Shristi Achar A Dec 20 (Reuters) - The benchmark S&P 500 and the blue-chip Dow were nearly flat on Wednesday as investors took a breather from a rally that was sparked by the Federal Reserve's likely pivot to a dovish policy, while FedEx tumbled after issuing a grim outlook. Propping up the tech-heavy Nasdaq .IXIC, AlphabetGOOGL.Oclimbed 3.1% to an over one-and-a-half year high after a report said Google is planning to reorganize a big part of its 30,000-person ad sales unit, citing a person with knowledge of the situation. The three main indexes had advanced over 2% since the Fed's Dec. 13 meet where policymakers projected lower policy rates by the end of 2024, with the Dow notching fresh record highs and the S&P 500 within arm's reach of its highest closing levels since January 2022. | Since then, central bank officials have attempted to keep investor euphoria in check, the latest being Chicago Fed President Austan Goolsbee who said further progress on beating back inflation will be the decisive factor in any central bank decision next year to reduce interest rates. The S&P index recorded 30 new 52-week highs and one new low, while the Nasdaq recorded 167 new highs and 63 new lows. https://tmsnrt.rs/3RQBoee (Reporting by Johann M Cherian and Shristi Achar A in Bengaluru; Editing by Maju Samuel) ((johann.mcherian@thomsonreuters.com; Shristi.AcharA@thomsonreuters.com https://twitter.com/ShristiAchar;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Propping up the tech-heavy Nasdaq .IXIC, AlphabetGOOGL.Oclimbed 3.1% to an over one-and-a-half year high after a report said Google is planning to reorganize a big part of its 30,000-person ad sales unit, citing a person with knowledge of the situation. Still, traders expect the Fed to ease credit conditions by over 125 basis points by September next year, with a 79% chance that the first cut of at least 25 basis points could come in as early as March 2024, according to the CME Group's FedWatch tool. "(Investors) think that they (Fed) will cut rates more than the Fed is willing to admit that they are likely to cut rates," said Sam Stovall, chief investment strategist at CFRA Research. | "(Investors) think that they (Fed) will cut rates more than the Fed is willing to admit that they are likely to cut rates," said Sam Stovall, chief investment strategist at CFRA Research. Six of the top 11 S&P 500 sectors were in declines, though the communications services sector .SPLRCL added 1.6%, underpinned by gains in Alphabet. The S&P index recorded 30 new 52-week highs and one new low, while the Nasdaq recorded 167 new highs and 63 new lows. | 640b4daa-4858-496b-ba30-82a7174fb076 |
710327.0 | 2023-12-16 23:00:00 UTC | Here's My Top Value Stock to Buy Right Now | DCOMP | https://www.nasdaq.com/articles/heres-my-top-value-stock-to-buy-right-now-14 | nan | nan | Prudential Financial (NYSE: PRU) just weathered quite a storm for its business. For an insurance giant that prides itself on being financially rock solid, the recent economic situation was incredibly rough.
In particular, rising interest rates played havoc for the company, as it owns over $300 billion in bonds, all held as available for sale or as trading positions. When interest rates rise, the prices of existing fixed-rate bonds fall. In its 2022 annual report, Prudential Financial indicated that it had nearly $30 billion in interest rate related risks on its balance sheet, down from $40 billion the previous year.
Now that the Federal Reserve has indicated that it thinks it is done boosting rates, and indeed, that it might lower them in 2024, that rate-related pressure looks to be behind Prudential Financial. Given its bond-heavy balance sheet, the easing of those pressures is a key driver of why Prudential Financial is my top value stock to buy right now.
Image source: Getty Images.
Why it really looks cheap right now
Analysts expect Prudential Financial to close out 2023 earning a total of $11.78 per share for the year, and they have an average forecast of $13.31 per share in income for 2024. At a recent price of $104.34 per share, that puts it at a price-to-expected earnings ratio below 9 for this year and below 8 for next year.
That's the sort of earnings multiple you might expect from a company with absolutely no growth prospects. Prudential Financial, on the other hand, is projected to achieve a solid 10.5% annualized earnings growth rate over the next five or so years. While that's not exactly the fastest growth on the planet, it is solid enough to where its valuation looks downright cheap if its growth delivers anywhere near that rate.
Investors are also getting paid a decent amount to own its shares. The company currently pays a dividend of $1.25 per share per quarter, putting its yield at around 4.8%. Prudential Financial has a decent recent history of annual dividend increases, and with its $5 annual payment consuming less than half of its anticipated earnings, it may very well continue that dividend growth.
Then there's its rock solid balance sheet. Prudential Financial bases its whole corporate identity around that fact, using the Rock of Gibraltar as its corporate logo. The $300 billion in bonds on its balance sheet support a total shareholder equity above $26 billion.
An insurance company's balance sheet is critical to its success because the company is in the business of pricing and paying out on financial risks. Even if Prudential Financial's risk pricing models get it right on average, the reality is that people tend to buy insurance for the bigger risks that they face. If a whole lot of things go wrong at once for its clients, a strong balance sheet is crucial to the company's ability to pay out on those larger-than-expected claims.
This bargain price may not last long
While Prudential Financial looks like a value-priced company based on its prospects, based on its trailing earnings, the story isn't so clear. Its trailing price-to-earnings ratio is nearly 30, which may be scaring off people who are using automatic screeners with backward-looking metrics to look for bargains.
That high trailing price-to-earnings ratio is driven by a major set of write-offs in the October through December quarter of last year. Those write-offs look like they were one-time events, including over $1 billion from interest rate related investment losses.
Those one-time charges will roll off the company's trailing-12-month price-to-earnings ratio once it reports its final set of earnings for 2023. After that report, if it delivers as expected, its bargain price may simply be too cheap for the overall market to ignore. That makes now a great time to consider whether Prudential Financial could be your top value stock pick, as well as mine.
Should you invest $1,000 in Prudential Financial right now?
Before you buy stock in Prudential Financial, consider this:
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Chuck Saletta has positions in Prudential Financial and has the following options: long January 2024 $110 calls on Prudential Financial, short January 2024 $115 calls on Prudential Financial, short January 2026 $82.50 puts on Prudential Financial, and short January 2026 $95 puts on Prudential Financial. The Motley Fool has no position in any of the stocks mentioned. 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. | In particular, rising interest rates played havoc for the company, as it owns over $300 billion in bonds, all held as available for sale or as trading positions. Given its bond-heavy balance sheet, the easing of those pressures is a key driver of why Prudential Financial is my top value stock to buy right now. If a whole lot of things go wrong at once for its clients, a strong balance sheet is crucial to the company's ability to pay out on those larger-than-expected claims. | In its 2022 annual report, Prudential Financial indicated that it had nearly $30 billion in interest rate related risks on its balance sheet, down from $40 billion the previous year. Before you buy stock in Prudential Financial, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Prudential Financial wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 18, 2023 Chuck Saletta has positions in Prudential Financial and has the following options: long January 2024 $110 calls on Prudential Financial, short January 2024 $115 calls on Prudential Financial, short January 2026 $82.50 puts on Prudential Financial, and short January 2026 $95 puts on Prudential Financial. | In its 2022 annual report, Prudential Financial indicated that it had nearly $30 billion in interest rate related risks on its balance sheet, down from $40 billion the previous year. Before you buy stock in Prudential Financial, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Prudential Financial wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 18, 2023 Chuck Saletta has positions in Prudential Financial and has the following options: long January 2024 $110 calls on Prudential Financial, short January 2024 $115 calls on Prudential Financial, short January 2026 $82.50 puts on Prudential Financial, and short January 2026 $95 puts on Prudential Financial. | In its 2022 annual report, Prudential Financial indicated that it had nearly $30 billion in interest rate related risks on its balance sheet, down from $40 billion the previous year. Then there's its rock solid balance sheet. Before you buy stock in Prudential Financial, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Prudential Financial wasn't one of them. | 56f18c9a-579a-476d-b3f2-0ae1a1e70d1c |
710328.0 | 2023-12-16 23:00:00 UTC | 3 Beaten-Down Bank Stocks to Buy for a Turnaround in 2024 | DCOMP | https://www.nasdaq.com/articles/3-beaten-down-bank-stocks-to-buy-for-a-turnaround-in-2024 | nan | nan | Year 2023 has not been great for bank stocks. Since the beginning of the year, the Federal Reserve has been ultra-aggressive in raising interest rates to tame the “sticky” inflation.
Banks typically thrive in a rising interest rate environment. But this was not the case this time. While a few big banks did benefit from higher rates, most medium and small-sized banks suffered. Faster rate hikes placed these banks in a disadvantageous situation as demand for loans gradually waned and funding costs increased. This put pressure on banks’ net interest margin (NIM) growth.
Moreover, the fastest pace of rate hikes since the 1980s triggered a regional banking crisis in early March, which was the primary reason for the collapse and failure of three major regional banks (Silicon Valley Bank, Signature Bank and First Republic Bank).
A host of issues, including the risk of a potential recession, slowing loan demand, rising funding costs, and high levels of fixed-rate mortgage and commercial real estate loans, as well as uninsured deposits in balance sheets, made the situation more difficult for regional banks.
Huge exposure to uninsured deposits and asset-liability mismatches were bigger concerns for some banks, as they witnessed heavy deposit outflows.
Nevertheless, as the year comes to an end and we prepare to enter 2024, investors are gradually turning optimistic toward banks. The primary reason for this optimism is that at the end of the two-day FOMC meeting earlier this month, the Fed signaled that it is done with raising rates this cycle. Given that inflation has been steadily cooling and U.S. economic growth has been surprisingly robust, the central bank is now expected to cut rates thrice in 2024.
The Fed officials, through the latest dot-plot, have indicated that rates will come down to 4.6% by the end of 2024, lower than the 5.1% estimated in September.
During a press conference following the decision, Fed chairman Jerome Powell said, “We believe that we are likely at or near the peak rate for this cycle. Participants didn't write down additional hikes that we believe are likely. So that's what we wrote down. But participants also didn't want to take the possibility of further hikes off the table. So that's really what we were thinking.”
Thus, the central bank indicating rate cuts next year comes as a silver lining for banks. In addition to this, several measures taken by banks of late, such as revenue diversification efforts to boost fee income and balance sheet repositioning, will likely support revenues in the coming quarters.
Hence, we believe that bank stocks, which have been laggards since the beginning of 2023, are poised for a turnaround in 2024. Thus, we present three stocks from the banking sector, which have performed rather poorly so far this year but are expected to witness a rebound in 2024.
All three stocks have a market capitalization of more than $450 million and have witnessed their share prices decline more than 10% so far this year. We recommend adding these stocks to your portfolio now, as analysts seem optimistic regarding their earnings growth potential in the coming year.
3 Bank Stocks to Bet on for a Rebound in 2024
Cullen/Frost Bankers (CFR): Headquartered in San Antonio, TX, the company, through its subsidiaries, provides a broad array of products and services throughout numerous Texas markets. CFR has a market cap of $6.9 billion. So far this year, shares of the company have lost 18.4%.
Cullen/Frost has been enhancing its presence in the lucrative Texas markets. In June 2023, the company announced plans to double its financial centers to 34 in the Austin region by 2026. Management expects to open approximately 15 branches in the Texas region in 2024. Supported by a robust balance sheet and such branch openings, CFR’s top line is expected to be positively impacted.
The company’s sales are projected to grow marginally next year from the current year. Moreover, analysts seem optimistic regarding its earnings growth potential. For 2024, the Zacks Consensus Estimate for CFR’s earnings has been revised 4.4% upward over the past 60 days. Currently, CFR carries a Zacks Rank #2 (Buy).
Glacier Bancorp (GBCI): This Zacks Ranked #2 stock has a market cap of $4.7 billion. Headquartered in Kalispell, MT, GBCI operates as the bank holding company for Glacier Bank that provides commercial banking services to individuals, small to medium-sized businesses, community organizations, and public entities in the United States.
The company also provides construction and permanent loans on residential real estate; consumer land or lot loans; unimproved land and land development loans; and residential builder guidance lines comprising pre-sold and spec-home construction, and lot acquisition loans.
GBCI’s acquisition of Community Financial Group, the parent company of Wheatland Bank, will be its 25th acquisition since 2000. The deal aligns with GBCI’s history of consistently adding high-quality community banks to its proven banking model.
So far this year, shares of GBCI have lost 13.6%. Its earnings estimates for 2024 have witnessed an upward revision of 5.7% over the past 60 days. The company’s 2024 sales growth rate is expected to be 1.7%.
Arrow Financial Corporation (AROW): Headquartered in Glens Falls, NY, the firm is a multi-bank holding company with more than $4 billion in assets. AROW has a market cap of more than $480 million.
Year to date, AROW’s share price has declined 12%. Currently, the company sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Arrow Financial remains committed to delivering value for its shareholders, customers and communities. The company has been witnessing robust growth in loans and deposit balances, which will likely aid the top line in the near term.
For 2024, AROW’s sales are projected to grow 9%. The Zacks Consensus Estimate for the company’s next-year earnings has been revised 12.6% upward over the past 60 days.
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
Be First to New Top 10 Stocks >>
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
Cullen/Frost Bankers, Inc. (CFR) : Free Stock Analysis Report
Glacier Bancorp, Inc. (GBCI) : Free Stock Analysis Report
Arrow Financial Corporation (AROW) : 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. | The primary reason for this optimism is that at the end of the two-day FOMC meeting earlier this month, the Fed signaled that it is done with raising rates this cycle. 3 Bank Stocks to Bet on for a Rebound in 2024 Cullen/Frost Bankers (CFR): Headquartered in San Antonio, TX, the company, through its subsidiaries, provides a broad array of products and services throughout numerous Texas markets. Arrow Financial Corporation (AROW): Headquartered in Glens Falls, NY, the firm is a multi-bank holding company with more than $4 billion in assets. | Supported by a robust balance sheet and such branch openings, CFR’s top line is expected to be positively impacted. The company also provides construction and permanent loans on residential real estate; consumer land or lot loans; unimproved land and land development loans; and residential builder guidance lines comprising pre-sold and spec-home construction, and lot acquisition loans. Click to get this free report Cullen/Frost Bankers, Inc. (CFR) : Free Stock Analysis Report Glacier Bancorp, Inc. (GBCI) : Free Stock Analysis Report Arrow Financial Corporation (AROW) : Free Stock Analysis Report To read this article on Zacks.com click here. | Moreover, the fastest pace of rate hikes since the 1980s triggered a regional banking crisis in early March, which was the primary reason for the collapse and failure of three major regional banks (Silicon Valley Bank, Signature Bank and First Republic Bank). Headquartered in Kalispell, MT, GBCI operates as the bank holding company for Glacier Bank that provides commercial banking services to individuals, small to medium-sized businesses, community organizations, and public entities in the United States. Click to get this free report Cullen/Frost Bankers, Inc. (CFR) : Free Stock Analysis Report Glacier Bancorp, Inc. (GBCI) : Free Stock Analysis Report Arrow Financial Corporation (AROW) : Free Stock Analysis Report To read this article on Zacks.com click here. | Year 2023 has not been great for bank stocks. Glacier Bancorp (GBCI): This Zacks Ranked #2 stock has a market cap of $4.7 billion. The company’s 2024 sales growth rate is expected to be 1.7%. | b50a7646-9f79-40a5-a815-92aab156b424 |
710329.0 | 2023-12-16 23:00:00 UTC | 3 Stocks to Buy for 2024 and Onward | DCOMP | https://www.nasdaq.com/articles/3-stocks-to-buy-for-2024-and-onward | nan | nan | In this video, I will review three growth stocks to buy for 2024. I believe each of these companies will perform well over the long term and has free cash flow that could provide investors with a margin of safety in case a recession hits.
*Stock prices used were from the trading day of Dec. 19, 2023. The video was published on Dec. 20, 2023.
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Neil Rozenbaum has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet and Netflix. The Motley Fool recommends Alibaba Group. The Motley Fool has a disclosure policy. Neil 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. | I believe each of these companies will perform well over the long term and has free cash flow that could provide investors with a margin of safety in case a recession hits. The 10 stocks that made the cut could produce monster returns in the coming years. If you choose to subscribe through his link, he will earn some extra money that supports his channel. | Before you buy stock in Alphabet, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Alphabet wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 18, 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 and Netflix. | Before you buy stock in Alphabet, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Alphabet wasn't one of them. Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. See the 10 stocks *Stock Advisor returns as of December 18, 2023 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. | Before you buy stock in Alphabet, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Alphabet wasn't one of them. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*. The Motley Fool has positions in and recommends Alphabet and Netflix. | 7d85b469-87ca-445f-a421-45aff31b5ea6 |
710330.0 | 2023-12-16 23:00:00 UTC | 5 Amazing Dividend Stocks to Buy for Secure Income in 2024 | DCOMP | https://www.nasdaq.com/articles/5-amazing-dividend-stocks-to-buy-for-secure-income-in-2024 | nan | nan | The Wall Street has seen some of the best stock market rallies in 2023, with the three main U.S. stock indices — the S&P 500, the Dow Jones Industrial Average and the Nasdaq Composite — tracking remarkable growth so far this year. After a weak 2022, the S&P 500 index has returned more than 20% year-to-date 2023, while the Dow Jones Industrial Average and the Nasdaq Composite have gained 13% and 42%, respectively, over the same period.
Despite some spill-overs of economic challenges from 2022, such as rising inflation, supply-chain disruptions and shifts in central bank policies, companies in these indices have demonstrated resilience through 2023, preserving their long-term growth trajectory. Growth of these indices was also characterized by robust economic growth, low unemployment rates and steady consumer spending.
The Federal Reserve's monetary policy decisions remained a focal point for investors in 2023. Throughout the year, the central bank piloted the subtle balance between supporting economic growth and preventing inflationary pressures. Interest rate adjustments and quantitative easing measures were closely monitored, as they had direct impacts on market sentiment and asset valuations.
Looking into 2024, experts expect the year to be crafted by considerable shifts in the economic outlook, uncertainties in interest rates, concerning the path of inflation, geopolitical developments and the unpredictable twists and turns of the upcoming presidential election season. With these events on the cards, it is difficult to predict the market’s future movement.
Why Dividend-Investing?
In the ever-changing landscape of the stock market, investors often seek strategies that provide stability and consistent returns. Here, dividend-paying stocks emerge as a reliable and strategic choice. Stocks paying regular dividends have historically demonstrated a level of stability during turbulent market conditions.
Companies generally pay out dividends from their profits after securing enough funds for reinvestment in business operations, growth and expansion. This indicates that dividend-paying stocks often possess strong fundamentals, including stable earnings and cash flows, making them less susceptible to extreme market fluctuations.
The regular income stream provided by dividends acts as a cushion, helping investors weather market downturns with more resilience. The dividend aristocrats, companies with a history of increasing their dividends annually for the past 25 years, are safe investment options for the long term.
In the current market environment, with uncertainties abound, dividend investing offers a strategic and prudent approach. By prioritizing stability, income generation, compounding and quality, investors can build resilient portfolios that weather market volatility.
Our Choices
With the help of the Zacks Stock Screener, we have narrowed down on five attractive dividend stocks that sport a Zacks Rank #1 (Strong Buy) or #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
These S&P 500 stocks have a dividend yield of more than or equal to 3%, as well as a five-year historical dividend growth rate of more than 0. Additionally, a Value Score of A or B and consistent sales growth make these stocks attractive.
The above-mentioned combination is compelling for investors interested in owning well-known companies with a steady and long-term income, based on stability amid volatility.
3M Company MMM: The Saint Paul, MN-based diversified technology firm has been gaining from its focus on business transformation, which enhances its competitive advantage. 3M’s portfolio reshaping actions are expected to enhance its shareholder value over time. The company’s operational execution, restructuring savings and spending discipline are supporting its margins. Strength in auto OEM (Original Equipment Manufacturer) and medical solutions businesses augurs well for MMM’s growth.
3M pays out a quarterly dividend of $1.50 ($6.00 annualized) per share, with a 5.65% yield at the current stock price. The company’s payout ratio is 66%, with a five-year dividend growth rate of 1.3%. MMM currently has a Zacks Rank #2 and a Value Score of A. (Check MMM’s dividend history here)
3M Company Dividend Yield (TTM)
3M Company dividend-yield-ttm | 3M Company Quote
Omnicom Group Inc. OMC: The New York-based company is one of the largest advertising, marketing and corporate communications companies in the world. Omnicom, with its diversified presence in advertising and marketing, improves adaptability in a dynamic industry. A rising current ratio signals a positive outlook. OMC consistently rewards shareholders through dividends and share buybacks, while focusing on internal development, and investing in efficiency, data and analytics for revenue growth.
Omnicom pays out a quarterly dividend of 70 cents ($2.80 annualized) per share, with a 3.23% yield at the current stock price. OMC’s payout ratio is 38%, with a five-year dividend growth rate of 2.70%. The company currently has a Zacks Rank #2 and a Value Score of A. (Check OMC’s dividend history here)
Omnicom Group Inc. Dividend Yield (TTM)
Omnicom Group Inc. dividend-yield-ttm | Omnicom Group Inc. Quote
Amcor plc AMCR: Based in Zurich, Amcor is a global leader in developing and producing responsible packaging for food, beverage, pharmaceutical, medical, home and personal care, and other products. The company has been focusing on higher-growth, higher value-added, more packaging-intensive segments like healthcare, protein, pet food, premium coffee and hot fill beverage containers. It is positioned to gain from its efforts to expand its presence in high-growth segments and emerging markets. Solid demand in e-commerce, and investments in adding capacity and innovation are expected to aid growth.
Amcor pays out a quarterly dividend of 13 cents (50 cents annualized) per share, with a 5.13% yield at the current stock price. AMCR’s payout ratio is 68%, with a five-year dividend growth rate of 11.6%. The company currently has a Zacks Rank #2 and a Value Score of A. (Check AMCR’s dividend history here)
Amcor PLC Dividend Yield (TTM)
Amcor PLC dividend-yield-ttm | Amcor PLC Quote
NiSource Inc. NI: Merrillville, IN-based NiSource is an energy holding company. Together with its subsidiaries, NI provides natural gas, electricity, and other products and services in the United States. NiSource’s consistent investments to strengthen its existing infrastructure, stable return from regulated assets and focus on clean energy are going to drive its performance. NI’s earnings are likely to benefit from the electric and gas rates that came into effect during 2022 and 2023. The company is also gaining from its cost-saving initiatives. NI expects to lower operation and maintenance (O&M) expenses.
NiSource pays out a quarterly dividend of 25 cents ($1.00 annualized) per share, with a 3.77% yield at the current stock price. NI’s payout ratio is 64%, with a five-year dividend growth rate of 5.53%. The company currently has a Zacks Rank #2 and a Value Score of B. (Check NI’s dividend history here)
NiSource, Inc Dividend Yield (TTM)
NiSource, Inc dividend-yield-ttm | NiSource, Inc Quote
NRG Energy Inc. NRG: The company is engaged in the production, sale and delivery of energy and energy products and services to residential, industrial and commercial consumers in major competitive power markets in the United States. It has financial and commercial headquarters in Princeton, NJ, and operational headquarters in Houston, TX. NRG’s acquisitions, services to a wide variety of customers, focus on emission cuts and dividend policy will boost its long-term growth objectives.
NRG Energy pays out a quarterly dividend of 38 cents ($1.51 annualized) per share, yielding 3.02% at the current stock price. NRG’s payout ratio is 29%, with a five-year dividend growth rate of 77.7%. It currently has a Zacks Rank #2 and a Value Score of B. (Check NRG’s dividend history here)
NRG Energy, Inc. Dividend Yield (TTM)
NRG Energy, Inc. dividend-yield-ttm | NRG Energy, Inc. Quote
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
Be First to New Top 10 Stocks >>
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
NiSource, Inc (NI) : Free Stock Analysis Report
NRG Energy, Inc. (NRG) : Free Stock Analysis Report
3M Company (MMM) : Free Stock Analysis Report
Omnicom Group Inc. (OMC) : Free Stock Analysis Report
Amcor PLC (AMCR) : 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. | Despite some spill-overs of economic challenges from 2022, such as rising inflation, supply-chain disruptions and shifts in central bank policies, companies in these indices have demonstrated resilience through 2023, preserving their long-term growth trajectory. Looking into 2024, experts expect the year to be crafted by considerable shifts in the economic outlook, uncertainties in interest rates, concerning the path of inflation, geopolitical developments and the unpredictable twists and turns of the upcoming presidential election season. The company has been focusing on higher-growth, higher value-added, more packaging-intensive segments like healthcare, protein, pet food, premium coffee and hot fill beverage containers. | (Check OMC’s dividend history here) Omnicom Group Inc. Dividend Yield (TTM) Omnicom Group Inc. dividend-yield-ttm | Omnicom Group Inc. Quote Amcor plc AMCR: Based in Zurich, Amcor is a global leader in developing and producing responsible packaging for food, beverage, pharmaceutical, medical, home and personal care, and other products. (Check AMCR’s dividend history here) Amcor PLC Dividend Yield (TTM) Amcor PLC dividend-yield-ttm | Amcor PLC Quote NiSource Inc. NI: Merrillville, IN-based NiSource is an energy holding company. Click to get this free report NiSource, Inc (NI) : Free Stock Analysis Report NRG Energy, Inc. (NRG) : Free Stock Analysis Report 3M Company (MMM) : Free Stock Analysis Report Omnicom Group Inc. (OMC) : Free Stock Analysis Report Amcor PLC (AMCR) : Free Stock Analysis Report To read this article on Zacks.com click here. | (Check MMM’s dividend history here) 3M Company Dividend Yield (TTM) 3M Company dividend-yield-ttm | 3M Company Quote Omnicom Group Inc. OMC: The New York-based company is one of the largest advertising, marketing and corporate communications companies in the world. (Check NI’s dividend history here) NiSource, Inc Dividend Yield (TTM) NiSource, Inc dividend-yield-ttm | NiSource, Inc Quote NRG Energy Inc. NRG: The company is engaged in the production, sale and delivery of energy and energy products and services to residential, industrial and commercial consumers in major competitive power markets in the United States. Click to get this free report NiSource, Inc (NI) : Free Stock Analysis Report NRG Energy, Inc. (NRG) : Free Stock Analysis Report 3M Company (MMM) : Free Stock Analysis Report Omnicom Group Inc. (OMC) : Free Stock Analysis Report Amcor PLC (AMCR) : Free Stock Analysis Report To read this article on Zacks.com click here. | Despite some spill-overs of economic challenges from 2022, such as rising inflation, supply-chain disruptions and shifts in central bank policies, companies in these indices have demonstrated resilience through 2023, preserving their long-term growth trajectory. (Check MMM’s dividend history here) 3M Company Dividend Yield (TTM) 3M Company dividend-yield-ttm | 3M Company Quote Omnicom Group Inc. OMC: The New York-based company is one of the largest advertising, marketing and corporate communications companies in the world. (Check NRG’s dividend history here) NRG Energy, Inc. Dividend Yield (TTM) NRG Energy, Inc. dividend-yield-ttm | NRG Energy, Inc. Quote Zacks Naming Top 10 Stocks for 2024 Want to be tipped off early to our 10 top picks for the entirety of 2024? | 57488a1a-233c-46a4-9648-dbe89b09ab44 |
710331.0 | 2023-12-16 23:00:00 UTC | 5 Top-Ranked Construction Stocks That More Than Doubled the S&P | DCOMP | https://www.nasdaq.com/articles/5-top-ranked-construction-stocks-that-more-than-doubled-the-sp | nan | nan | One of the most volatile years, 2023, is about to end on a happy note after seeing a peak in inflation and weak housing demand. Particularly, the U.S. construction market is expected to be fairly strong next year. Thankfully, the Federal government took a decision to stabilize interest rates as inflation moderates. The labor market is also improving, although higher material costs are concerning due to energy market swings.
The residential market, which was a major concern for most construction companies, is also gaining confidence in the upcoming season. Per the recent Housing Market Index (HMI) published by the National Association of Home Builders/Wells Fargo, builder confidence rose three points in December from November. The HMI also noted that the component measuring sales expectations for the next six months increased six points to 45 from November.
On Dec 19, the Commerce Department's Census Bureau reported that privately owned housing starts for November rose 14.8% sequentially and 9.3% from the prior year. Permits for future construction also rose 4.1% from November 2022. Lower mortgage/interest rates and a lack of resale inventory are helping these metrics drive high, especially for single-family construction despite elevated construction and regulatory costs.
The non-residential players are also optimistic on strong R&R activities, impressive global trends in infrastructure modernization, energy transition, national security and a potential super-cycle in global supply-chain investments. Also, increased funding for carbon/ESG-related projects to focus more on carbon capture and storage work is commendable. In the first 10 months of 2023, public construction spending was up 14.7% from the year-ago period, led by notable gains in non-residential spending like power.
The solid public sector outlays and positive economic data are propelling the construction sector, which has nearly doubled from the S&P 500 index so far this year. So far in 2023, the Zacks Construction sector has risen 47.4% versus the S&P 500 index’s 24.1% rally.
Image Source: Zacks Investment Research
Notably, investing in the Construction sector might sound profitable right now, as it falls within the top 13% (2 out of 16 sectors) of the Zacks Sector Rank, which hints at further growth.
Stocks Worth Adding to Your Portfolio Now
Here are five construction stocks that have returned more than double of the S&P 500 year to date (YTD) and will continue to outperform in the coming months, as gauged by potentially superior weighting methodologies and a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
A VGM Score of A or B, along with a solid rank, is quite a combination to look for in stocks, especially for investors beefing up their portfolios amid precarious market conditions.
A few such construction stocks with encouraging prospects are Dream Finders Homes, Inc. DFH, Sterling Construction Company, Inc. STRL, TopBuild Corp. BLD, Installed Building Products, Inc. IBP and Trex Company, Inc. TREX. Notably, all these stocks have a market cap of more than $1 billion at present.
Dream Finders Homes: This Jacksonville, FL-based company’s land-light operating model and strategic position in high-growth markets, providing affordable homes to entry-level, first and second-time move-up homebuyers, are tailwinds. Also, the build-for-rent platform provides a consistent home delivery pipeline, which is less susceptible to temporary changes in demand from individual homebuyers.
DFH, currently sporting a Zacks Rank #1, has rallied 299.9% YTD. The Zacks Consensus Estimate for its 2024 earnings has been revised upward to $2.81 from $2.62 over the past seven days. This reflects growth of 12.2% from the year-ago period on 3.5% higher revenues. The company’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed in one, the average being 131.6%. It currently has a VGM Score of B.
Sterling: This Zacks Rank #2 company operates through subsidiaries within segments specializing in E-Infrastructure, Building and Transportation Solutions, which aid in developing large-scale site development systems and services projects, residential and commercial concrete foundation projects, and infrastructure and rehabilitation projects for highways, roads and bridges, to name a few.
Sterling Infrastructure has gained 145.7% YTD. It has a trailing four-quarter earnings surprise of 12.2%, on average. The Zacks Consensus Estimate for 2024 earnings has moved north to $4.74 per share from $4.68 over the past 30 days, indicating 13.1% year-over-year growth on 12.1% higher revenues. It currently has a VGM Score of A.
TopBuild: Headquartered in Daytona Beach, FL, the company is an installer and distributor of insulation and other building products. BLD is experiencing significant advantages from a strong installation business and well-planned acquisitions. Additionally, improvements in operational efficiency, leveraging fixed costs and implementing measures to mitigate inflation are all contributing to increases in profit margins.
TopBuild, with a Zacks Rank #2, has gained 141.3% YTD. BLD has seen an upward estimate revision for 2024 earnings over the past seven days to $20.62 per share from $20.51. The estimate indicates 4.9% year-over-year growth on 6.9% revenue improvement. The company’s earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, the average being 14.3%. It currently has a VGM Score of A.
Installed Building Products: This Columbus, OH-based company is one of the nation's leading new residential insulation installers and a diversified installer of complementary building products. The company is poised to gain from favorable pricing strategies, geographic and product diversification strategies, and solid acquisitions despite the cyclicality of the U.S. housing market. IBP continues to prioritize profitable growth through its proven strategy of acquiring well-run installers of insulation and complementary building products.
Installed Building, a Zacks Rank #2 stock, has gained 114.5% YTD. IBP has seen an upward estimate revision for 2024 earnings over the past seven days to $10.84 per share from $10.72. This indicates 7.2% year-over-year growth on a 5.9% rise in revenues. The company’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed on one occasion, the average being 7.3%. It currently has a VGM Score of A.
Trex Company: Based in Winchester, VA, this company manufactures and distributes wood and plastic composite products, and related accessories, mainly for residential decking and railing applications. Despite soft demand due to softening economic conditions, and more resilient repair and remodeling, the sector has been driving growth. Additionally, Trex’s tiered product strategy, which supports consumers’ decision-making by providing a range of product aesthetics, is encouraging. Its focus on automation, modernization, energy efficiency and raw material processing is expected to be a major tailwind.
TREX, with a Zacks Rank #2, has gained 91.2% so far this year. The company has surpassed earnings estimates in the trailing four quarters, the average surprise being 16.9%. It has seen an upward estimate revision to $2.18 per share from $2.13 for 2024 earnings over the past 60 days. The upside suggests 18.4% year-over-year growth, with 11.4% revenue improvement. The company also has a VGM Score of B.
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
Be First to New Top 10 Stocks >>
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
Sterling Infrastructure, Inc. (STRL) : Free Stock Analysis Report
Trex Company, Inc. (TREX) : Free Stock Analysis Report
TopBuild Corp. (BLD) : Free Stock Analysis Report
Installed Building Products, Inc. (IBP) : Free Stock Analysis Report
Dream Finders Homes, Inc. (DFH) : 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. | Per the recent Housing Market Index (HMI) published by the National Association of Home Builders/Wells Fargo, builder confidence rose three points in December from November. On Dec 19, the Commerce Department's Census Bureau reported that privately owned housing starts for November rose 14.8% sequentially and 9.3% from the prior year. Additionally, improvements in operational efficiency, leveraging fixed costs and implementing measures to mitigate inflation are all contributing to increases in profit margins. | A few such construction stocks with encouraging prospects are Dream Finders Homes, Inc. DFH, Sterling Construction Company, Inc. STRL, TopBuild Corp. BLD, Installed Building Products, Inc. IBP and Trex Company, Inc. TREX. Installed Building, a Zacks Rank #2 stock, has gained 114.5% YTD. Click to get this free report Sterling Infrastructure, Inc. (STRL) : Free Stock Analysis Report Trex Company, Inc. (TREX) : Free Stock Analysis Report TopBuild Corp. (BLD) : Free Stock Analysis Report Installed Building Products, Inc. (IBP) : Free Stock Analysis Report Dream Finders Homes, Inc. (DFH) : Free Stock Analysis Report To read this article on Zacks.com click here. | Image Source: Zacks Investment Research Notably, investing in the Construction sector might sound profitable right now, as it falls within the top 13% (2 out of 16 sectors) of the Zacks Sector Rank, which hints at further growth. A few such construction stocks with encouraging prospects are Dream Finders Homes, Inc. DFH, Sterling Construction Company, Inc. STRL, TopBuild Corp. BLD, Installed Building Products, Inc. IBP and Trex Company, Inc. TREX. Click to get this free report Sterling Infrastructure, Inc. (STRL) : Free Stock Analysis Report Trex Company, Inc. (TREX) : Free Stock Analysis Report TopBuild Corp. (BLD) : Free Stock Analysis Report Installed Building Products, Inc. (IBP) : Free Stock Analysis Report Dream Finders Homes, Inc. (DFH) : Free Stock Analysis Report To read this article on Zacks.com click here. | A few such construction stocks with encouraging prospects are Dream Finders Homes, Inc. DFH, Sterling Construction Company, Inc. STRL, TopBuild Corp. BLD, Installed Building Products, Inc. IBP and Trex Company, Inc. TREX. Installed Building, a Zacks Rank #2 stock, has gained 114.5% YTD. TREX, with a Zacks Rank #2, has gained 91.2% so far this year. | f78a579e-7a4f-4cdf-a8dd-ced76543db2a |
710332.0 | 2023-12-16 23:00:00 UTC | Gilead (GILD), Compugen Collaborate for Immunotherapy Program | DCOMP | https://www.nasdaq.com/articles/gilead-gild-compugen-collaborate-for-immunotherapy-program | nan | nan | Gilead Sciences, Inc. GILD entered into an agreement with clinical-stage cancer immunotherapy company, Compugen Ltd. CGEN, to license its pre-clinical immunotherapy program.
Per the terms of this license agreement, Compugen is responsible for the ongoing pre-clinical development and the future phase I study of immuno-oncology candidate COM503, following which, Gilead will assume the rights to develop and commercialize COM503.
The company will make an upfront payment of $60 million to Compugen. CGEN is also eligible for a milestone payment of $30 million subject to investigational new drug clearance of COM503, expected in 2024.
Compugen is entitled to get up to an additional $758 million in future development, regulatory and commercial milestone payments, with a total deal value of $848 million, along with single-digit to low double-digit tiered royalties on worldwide net sales.
COM503 is a potential first-in-class, high-affinity antibody that blocks the interaction between IL-18 binding protein and IL-18, thereby releasing natural IL-18 in the tumor microenvironment and inhibiting cancer growth.
The license agreement will reduce Gilead’s bottom line by approximately 3-5 cents.
Shares of Compugen surged 174% on the license news, while GILD lost 0.01%. Shares of Gilead have lost 7.4% year to date compared with the industry’s decline of 18%.
Image Source: Zacks Investment Research
GILD is now targeting the lucrative oncology market and aims to expand beyond the virology business.
The oncology business put up a stellar performance in 2023, boosting its top line. The Cell Therapy franchise, comprising Yescarta and Tecartus, also continues to witness a steady increase in sales, primarily due to higher demand for Yescarta in relapsed or refractory (“R/R”) large B-Cell lymphoma and Tecartus in R/R acute lymphoblastic leukemia and mantle cell lymphoma. The uptake of the breast cancer drug Trodelvy has also been strong.
The company recently expanded its partnership with Arcellx ACLX to develop CART-ddBCMA to treat lymphomas. Gilead’s subsidiary Kite and Arcellx initially entered into a strategic partnership in December 2022 to co-develop and co-commercialize the latter’s lead late-stage product candidate, CART-ddBCMA, in multiple myeloma. Following the expansion of the collaboration scope, the companies will develop CART-ddBCMA to treat lymphomas.
Kite also exercised its option to negotiate a license for Arcellx’s ARC-SparX program, ACLX-001, in multiple myeloma, which is comprised of ARC-T cells and SparX proteins that target BCMA.
Gilead has also partnered with Arcus RCUS to evaluate the combinations of domvanalimab plus zimberelimab (doublet) and domvanalimab plus zimberelimab and etrumadenant (triplet) versus zimberelimab monotherapy in patients with first-line, metastatic PD-L1-high non-small cell lung cancer.
GILD and Arcus recently announced that domvanalimab plus zimberelimab and chemotherapy showed an encouraging overall response rate and six-month progression-free survival rate results in a preliminary analysis from Arm A1 of the EDGE-Gastric study.
This data supports the ongoing phase III study, STAR-221, in unresectable or metastatic upper gastrointestinal cancers. Gilead and Arcus have three additional ongoing phase III registrational studies of domvanalimab-containing regimens in lung cancer, including STAR-121, ARC-10 and PACIFIC-8.
The company is poised to gain further inroads in the oncology market in 2024 as Trodelvy propels growth and additional label expansion of the drug (lung cancer), which will fuel sales. HIV therapy Biktarvy should also maintain momentum in 2024. GILD has a deep pipeline with 60 ongoing clinical programs spanning virology, oncology and inflammation.
Gilead currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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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. | Gilead’s subsidiary Kite and Arcellx initially entered into a strategic partnership in December 2022 to co-develop and co-commercialize the latter’s lead late-stage product candidate, CART-ddBCMA, in multiple myeloma. Kite also exercised its option to negotiate a license for Arcellx’s ARC-SparX program, ACLX-001, in multiple myeloma, which is comprised of ARC-T cells and SparX proteins that target BCMA. The company is poised to gain further inroads in the oncology market in 2024 as Trodelvy propels growth and additional label expansion of the drug (lung cancer), which will fuel sales. | Gilead Sciences, Inc. GILD entered into an agreement with clinical-stage cancer immunotherapy company, Compugen Ltd. CGEN, to license its pre-clinical immunotherapy program. Per the terms of this license agreement, Compugen is responsible for the ongoing pre-clinical development and the future phase I study of immuno-oncology candidate COM503, following which, Gilead will assume the rights to develop and commercialize COM503. Click to get this free report Gilead Sciences, Inc. (GILD) : Free Stock Analysis Report Compugen Ltd. (CGEN) : Free Stock Analysis Report Arcus Biosciences, Inc. (RCUS) : Free Stock Analysis Report Arcellx, Inc. (ACLX) : Free Stock Analysis Report To read this article on Zacks.com click here. | Gilead Sciences, Inc. GILD entered into an agreement with clinical-stage cancer immunotherapy company, Compugen Ltd. CGEN, to license its pre-clinical immunotherapy program. Per the terms of this license agreement, Compugen is responsible for the ongoing pre-clinical development and the future phase I study of immuno-oncology candidate COM503, following which, Gilead will assume the rights to develop and commercialize COM503. Click to get this free report Gilead Sciences, Inc. (GILD) : Free Stock Analysis Report Compugen Ltd. (CGEN) : Free Stock Analysis Report Arcus Biosciences, Inc. (RCUS) : Free Stock Analysis Report Arcellx, Inc. (ACLX) : Free Stock Analysis Report To read this article on Zacks.com click here. | Per the terms of this license agreement, Compugen is responsible for the ongoing pre-clinical development and the future phase I study of immuno-oncology candidate COM503, following which, Gilead will assume the rights to develop and commercialize COM503. Image Source: Zacks Investment Research GILD is now targeting the lucrative oncology market and aims to expand beyond the virology business. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. | 320226f3-dee4-4d59-b5ec-cb815a0fcb82 |
710333.0 | 2023-12-16 23:00:00 UTC | Rolls-Royce can grow market share and improve profit, says CEO | DCOMP | https://www.nasdaq.com/articles/rolls-royce-can-grow-market-share-and-improve-profit-says-ceo | nan | nan | By Paul Sandle, Sarah Young and Tim Hepher
LONDON, Dec 20 (Reuters) - The chief executive of Rolls-Royce RR.L said on Wednesday his mission to lift the British company's profits was compatible with continuing to gain market share and delivering improvements in engines demanded by airlines.
Tufan Erginbilgic was brought into Rolls-Royce last January to turn around Britain's flagship engineering company, and investors like what they have seen, with the shares rising more than 200% this year.
But his challenge is to convince airlines after a public row with Dubai's Emirates, one of the world's biggest, whose president told Rolls last month to "go back to basics" and pay attention to improving the durability of its products before raising prices.
"We are going to transform Rolls-Royce with customers, not against customers," Erginbilgic told Reuters.
Emirates has said the time between repairs of Rolls' XWB-97 engine in hot and dusty conditions must improve before it will buy A350-1000s, raising questions over the impact on plane maker Airbus AIR.PA for which Rolls is the sole supplier of engines for wide-body jets.
Long-standing customer Thai Airways is finalising an order for 80 Boeing 787s powered by competitor GE GE.N after disagreements over pricing with Rolls, industry sources have told Reuters.
The move, which is intertwined with a defeat for the Airbus A350, follows a disagreement over whether Rolls could increase prices for engines on previously acquired 787s, in the event the airline added GE to its all-Rolls wide-body fleet, they said.
None of the parties have agreed to comment.
But Erginbilgic said in an interview on Wednesday that orders continued to flow despite recent criticisms.
"There is one deal, which is very important and big," he said. "We've made the deal. It is not announced yet."
Some analysts have voiced concerns about the impact of efforts to improve prices on Rolls' market share, even though the size of the market is growing overall. Competitivity is driven partly by the number of engines built relative to rivals.
Erginbilgic rejected this.
"Our delivery market share is around 55% and that will continue for the next 5-10 years, so we are gaining market share every year including this year".
GE's share has been curbed partly by Boeing BA.N delivery delays.
Based on underlying aircraft deliveries and excluding spares, Agency Partners analyst Nick Cunningham said Rolls had a 52% share of large engine deliveries in 2022, projected to dip to 48% in 2027 versus GE's 47% (with the rest represented by Pratt & Whitney RTX.N engines for U.S. military tankers).
"They are around equal. If Boeing can ramp higher, then GE will overtake RR again, but that’s a big if," he said.
'TIME-ON-WING'
Durability is a key issue for airlines because unscheduled repair visits, coupled with higher waiting times for spares across the industry, have forced many planes to be grounded.
Christine Ourmieres-Widener, CEO of Air Caraibes and French Bee, said waiting times for spare A350 engines is 18-24 months.
Erginbilgic said Rolls is investing heavily in improvements to its Trent 1000 engine, an option on Boeing's 787, and the XWB-97, which exclusively powers the Airbus A350-1000.
"I'm investing in the next three or four years more than 1 billion pounds in time-on-wing," he said.
"We are more than doubling Trent 1000 time on wing, XWB-97 time on wing is actually good in benign environments; in non-benign environments we will more than quadruple."
Long-delayed certification of improvements to the Trent 1000 will come next year, he said, aiming to restore its competitiveness on the Boeing 787.
"We've done everything we could. It is going to be certified now next year," he said.
"That will more than double durability. Then in 2025, given our programme, we will make another 25-30% improvement. Our engine will be very competitive to GE's engine."
Analysts say GE has effectively become the de facto sole engine of choice on the 787 in recent orders.
"We would like to grow Trent 1000 and grow our position in 787 as well," Erginbilgic added.
The historic Trent 1000 durability problems have dragged on Rolls since 2016, and the company only narrowly avoided collapse during the COVID-19 pandemic, as a turnaround attempt floundered.
Erginbilgic's fix for the Derby, England-based company, which also has defence and nuclear capabilities, is a new pricing strategy for the sale and maintenance of its engines, while at the same time boosting durability for airlines and curbing costs for Rolls.
Erginbilgic insisted Rolls had come a long way since he was famously reported to describe the company he had just joined in January as a "burning platform".
"It is not the same company," he said.
(Reporting by Paul Sandle, Sarah Young, Tim Hepher; Editing by Emelia Sithole-Matarise and Nick Zieminski)
((paul.sandle@thomsonreuters.com; +44 20 7542 6843; Reuters Messaging: paul.sandle.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Paul Sandle, Sarah Young and Tim Hepher LONDON, Dec 20 (Reuters) - The chief executive of Rolls-Royce RR.L said on Wednesday his mission to lift the British company's profits was compatible with continuing to gain market share and delivering improvements in engines demanded by airlines. But his challenge is to convince airlines after a public row with Dubai's Emirates, one of the world's biggest, whose president told Rolls last month to "go back to basics" and pay attention to improving the durability of its products before raising prices. Erginbilgic's fix for the Derby, England-based company, which also has defence and nuclear capabilities, is a new pricing strategy for the sale and maintenance of its engines, while at the same time boosting durability for airlines and curbing costs for Rolls. | By Paul Sandle, Sarah Young and Tim Hepher LONDON, Dec 20 (Reuters) - The chief executive of Rolls-Royce RR.L said on Wednesday his mission to lift the British company's profits was compatible with continuing to gain market share and delivering improvements in engines demanded by airlines. Long-standing customer Thai Airways is finalising an order for 80 Boeing 787s powered by competitor GE GE.N after disagreements over pricing with Rolls, industry sources have told Reuters. (Reporting by Paul Sandle, Sarah Young, Tim Hepher; Editing by Emelia Sithole-Matarise and Nick Zieminski) ((paul.sandle@thomsonreuters.com; +44 20 7542 6843; Reuters Messaging: paul.sandle.thomsonreuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Paul Sandle, Sarah Young and Tim Hepher LONDON, Dec 20 (Reuters) - The chief executive of Rolls-Royce RR.L said on Wednesday his mission to lift the British company's profits was compatible with continuing to gain market share and delivering improvements in engines demanded by airlines. Emirates has said the time between repairs of Rolls' XWB-97 engine in hot and dusty conditions must improve before it will buy A350-1000s, raising questions over the impact on plane maker Airbus AIR.PA for which Rolls is the sole supplier of engines for wide-body jets. Based on underlying aircraft deliveries and excluding spares, Agency Partners analyst Nick Cunningham said Rolls had a 52% share of large engine deliveries in 2022, projected to dip to 48% in 2027 versus GE's 47% (with the rest represented by Pratt & Whitney RTX.N engines for U.S. military tankers). | "Our delivery market share is around 55% and that will continue for the next 5-10 years, so we are gaining market share every year including this year". Our engine will be very competitive to GE's engine." "It is not the same company," he said. | 2594c627-5370-4aec-a442-891cc4fac5d9 |
710334.0 | 2023-12-16 23:00:00 UTC | Is It Wise to Retain Jones Lang (JLL) in Your Portfolio Now? | DCOMP | https://www.nasdaq.com/articles/is-it-wise-to-retain-jones-lang-jll-in-your-portfolio-now | nan | nan | Jones Lang LaSalle Incorporated JLL, popularly known as JLL, is well-poised to benefit from the continued strength of its resilient lines of business and favorable outsourcing trends. However, persistent macroeconomic uncertainty, geopolitical unrest and a high interest rate environment have kept JLL’s transaction-based businesses in distress over the past few quarters. We expect this trend to continue in the near term and weigh on JLL’s growth.
What’s Aiding JLL?
JLL has a broad range of real estate products and services and extensive knowledge of domestic and international real estate markets, thus enabling it to operate as a single-source provider of real estate solutions. The company is focused on balanced revenue growth across profitable markets. Its superior client services and strategic investment in technology and innovation are expected to help grow market share and win relationships. Strategic investments in the technology front helped the company navigate challenging times.
While we expect a year-over-year fall of 12.8% and 1.7% in fee revenues in 2023 and 2024, respectively, the metric is estimated to increase 21.1% in 2025. The adjusted EBITDA margin is projected to be 10.3% in 2023, 12.9 % in 2024 and 16% in 2025.
JLL’s Work Dynamics segment is well-poised to benefit from favorable trends in the outsourcing business. Corporations are looking for the company’s wide-ranging knowledge and the breadth of its services, including sustainability. In the post-pandemic period, this trend for organizations to outsource real estate services while progressively looking for strategic advice on reimagining their workspaces and workstyles to boost culture, attract talent and drive performance is likely to gather more strength.
Amid this, new contract wins and the expansion of services with existing clients are likely to aid JLL’s performance in the upcoming period. We expect a year-over-year increase of 5.1% in JLL’s Work Dynamics total revenues in 2023.
JLL is focused on maintaining balance sheet strength and adequate liquidity to enjoy operational flexibility. The company exited the third quarter of 2023 with $2.1 billion of liquidity and a net leverage of 2.2X.
In November 2023, JLL amended its bank credit facility and raised the borrowing capacity to $3.3 billion to maintain its operating flexibility and support its growth strategy. With a solid balance sheet, added financial flexibility and manageable debt maturities, the company is well-poised to sail through any challenging times and capitalize on solid opportunities.
Shares of this Zacks Rank #3 (Hold) company have rallied 19.1% in the past month, outperforming the industry’s growth of 12.9%.
Image Source: Zacks Investment Research
What’s Hurting JLL?
Persistent macroeconomic uncertainty and geopolitical unrest have resulted in an uneven recovery in the global economy. Also, capital markets have slowed down due to restrictive underwriting assumptions and high debt costs in an elevated interest rate environment. The global capital market investment sales, debt and equity advisory pipeline are affected due to muted deal proliferation.
Occupiers continue to adopt a cautious approach under present market circumstances, awaiting greater price discovery and causing a delay in the closing timeline for transactions, particularly for large-scale transactions. As a result, an industry-wide slowdown in investment sales and leasing activity across several asset types has led to underperformance in the company’s transaction-based businesses over the past few quarters, specifically Capital Markets and Leasing under Markets Advisory.
With subdued consumer and business sentiment expected in the near term, JLL’s transaction-based businesses are likely to continue to be adversely impacted. For 2023, we estimate a year-over-year decline of 14.1% and 29.9% in fee revenues for JLL’s Market Advisory and Capital Markets segments, respectively.
Competition from other real estate service providers and institutional players on the international, regional and local ground is a concern for JLL. Also, some of them are larger on a regional or local basis or have a stronger position in a specific market segment or service offering. This could lead to an increase in the commoditization of services and curb JLL’s ability to raise fees, affecting profitability.
A Stock to Consider
A better-ranked stock from the broader real estate sector is Legacy Housing Corporation LEGH, which carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Legacy Housing Corporation’s 2023 earnings per share has moved 5.7% upward in the past two months to $2.59.
Note: Anything related to earnings presented in this write-up represents FFO — a widely used metric to gauge the performance of REITs.
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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. | However, persistent macroeconomic uncertainty, geopolitical unrest and a high interest rate environment have kept JLL’s transaction-based businesses in distress over the past few quarters. In the post-pandemic period, this trend for organizations to outsource real estate services while progressively looking for strategic advice on reimagining their workspaces and workstyles to boost culture, attract talent and drive performance is likely to gather more strength. In November 2023, JLL amended its bank credit facility and raised the borrowing capacity to $3.3 billion to maintain its operating flexibility and support its growth strategy. | However, persistent macroeconomic uncertainty, geopolitical unrest and a high interest rate environment have kept JLL’s transaction-based businesses in distress over the past few quarters. As a result, an industry-wide slowdown in investment sales and leasing activity across several asset types has led to underperformance in the company’s transaction-based businesses over the past few quarters, specifically Capital Markets and Leasing under Markets Advisory. Click to get this free report Jones Lang LaSalle Incorporated (JLL) : Free Stock Analysis Report Legacy Housing Corporation (LEGH) : Free Stock Analysis Report To read this article on Zacks.com click here. | JLL has a broad range of real estate products and services and extensive knowledge of domestic and international real estate markets, thus enabling it to operate as a single-source provider of real estate solutions. As a result, an industry-wide slowdown in investment sales and leasing activity across several asset types has led to underperformance in the company’s transaction-based businesses over the past few quarters, specifically Capital Markets and Leasing under Markets Advisory. Click to get this free report Jones Lang LaSalle Incorporated (JLL) : Free Stock Analysis Report Legacy Housing Corporation (LEGH) : Free Stock Analysis Report To read this article on Zacks.com click here. | JLL is focused on maintaining balance sheet strength and adequate liquidity to enjoy operational flexibility. For 2023, we estimate a year-over-year decline of 14.1% and 29.9% in fee revenues for JLL’s Market Advisory and Capital Markets segments, respectively. Be First to New Top 10 Stocks >> Want the latest recommendations from Zacks Investment Research? | 2f6705e0-bdfd-43a9-b1a5-773e9e8d7082 |
710335.0 | 2023-12-16 23:00:00 UTC | Cerence (CRNC) Launches CaLLM in Collaboration With NVIDIA | DCOMP | https://www.nasdaq.com/articles/cerence-crnc-launches-callm-in-collaboration-with-nvidia | nan | nan | Cerence CRNC recently launched its automotive specific large language model, Cerence Automotive Large Language Model (“CaLLM”), powered by NVIDIA NVDA. CaLLM will be the foundation on which CRNC is set to build its next-generation in-car computing platform, running on the NVIDIA DRIVE platform.
Cerence and NVIDIA are collaborating to solve challenges faced by automakers related to the usage of generative AI and LLMs in improving user experience. CaLLM is well-equipped to solve this issue, given its unique level of automotive-specific intelligence.
CaLLM leverages Cerence’s extensive automotive expertise and growing automotive dataset encompassing billions of tokens to deliver integrated in-car user experiences. Cerence will train CaLLM on its extensive dataset using NVIDIA’s DGX Cloud and DGX systems and then develop the capabilities required for in-car user experiences.
Cerence is building CaLLM with the NVIDIA AI foundry service, which includes NVIDIA’s AI Foundation Models, AI Enterprise software and accelerated computing. To develop an ultrafast user experience, CRNC will deploy CaLLM in an NVIDIA-accelerated infrastructure with NVIDIA AI Enterprise.
Strong Portfolio Aids Cerence’s Prospects
Cerence is benefiting from the robust software platform that is helping it to win clients. Its platform allows OEMs to quickly, easily and cost-efficiently deploy new AI-driven applications in their cars. On a trailing 12-month basis, Cerence’s global auto penetration has stayed strong at 54%.
Cerence Inc. Price and Consensus
Cerence Inc. price-consensus-chart | Cerence Inc. Quote
The company has been benefiting from an expanding clientele with 14 strategic wins in fiscal 2023. In fourth-quarter fiscal 2023, it secured several strategic wins, including three in automotive and another in the two-wheeler space.
In August, Boson Motors, a Bay Area-based electric truck company, selected Cerence to enhance the in-vehicle experience in its wide range of electric trucks.
In June, CRNC announced that Mercedes-Benz AG, in its intuitive multimedia system, MBUX, in the new Mercedes-Benz E-Class, has selected Cerence JustTalk, an AI-powered capability for automotive assistants that eliminates the need for a push-to-talk button or wake-up word.
CRNC has also been expanding its footprint in the Chinese market. Cerence assistant had nine design wins in the fiscal year. In May, China OEM Loncin Motors selected Cerence Ride to enable AI-powered voice interaction for riders of its high-end motorcycle line.
Outlook Strong
Cerence’s expanding clientele aids top-line growth. For first-quarter fiscal 2024, it expects revenues between $128 million and $132 million. The Zacks Consensus Estimate for revenues is pegged at $130.89 million, indicating year-over-year growth of 56.46%
Adjusted EBITDA is projected in the range of $58-$62 million. Non-GAAP operating margin is anticipated in the range of 44-46%. Non-GAAP earnings for the fiscal first quarter are expected to be in the range of 84-92 cents per share.
The consensus mark is pegged at 90 cents per share, up 275% over the past 30 days.
Zacks Rank & Other Stocks to Consider
Cerence currently has a Zacks Rank #2 (Buy).
CRNC shares have underperformed the Zacks Computer & Technology sector in the past year. While its shares have dropped 1.8%, the sector has risen 49.7%.
Ceridian HCM CDAY and Dropbox DBX are some other top-ranked stocks that investors can consider in the broader sector, each carrying a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past year, shares of Ceridian HCM and Dropbox have gained 7.5% and 34.5%, respectively.
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
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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. | Cerence and NVIDIA are collaborating to solve challenges faced by automakers related to the usage of generative AI and LLMs in improving user experience. In May, China OEM Loncin Motors selected Cerence Ride to enable AI-powered voice interaction for riders of its high-end motorcycle line. Ceridian HCM CDAY and Dropbox DBX are some other top-ranked stocks that investors can consider in the broader sector, each carrying a Zacks Rank #1 (Strong Buy) at present. | Cerence CRNC recently launched its automotive specific large language model, Cerence Automotive Large Language Model (“CaLLM”), powered by NVIDIA NVDA. Cerence is building CaLLM with the NVIDIA AI foundry service, which includes NVIDIA’s AI Foundation Models, AI Enterprise software and accelerated computing. Click to get this free report NVIDIA Corporation (NVDA) : Free Stock Analysis Report 8x8 Inc (EGHT) : Free Stock Analysis Report Dropbox, Inc. (DBX) : Free Stock Analysis Report Ceridian HCM (CDAY) : Free Stock Analysis Report Cerence Inc. (CRNC) : Free Stock Analysis Report To read this article on Zacks.com click here. | Cerence CRNC recently launched its automotive specific large language model, Cerence Automotive Large Language Model (“CaLLM”), powered by NVIDIA NVDA. Cerence Inc. Price and Consensus Cerence Inc. price-consensus-chart | Cerence Inc. Quote The company has been benefiting from an expanding clientele with 14 strategic wins in fiscal 2023. Click to get this free report NVIDIA Corporation (NVDA) : Free Stock Analysis Report 8x8 Inc (EGHT) : Free Stock Analysis Report Dropbox, Inc. (DBX) : Free Stock Analysis Report Ceridian HCM (CDAY) : Free Stock Analysis Report Cerence Inc. (CRNC) : Free Stock Analysis Report To read this article on Zacks.com click here. | Zacks Rank & Other Stocks to Consider Cerence currently has a Zacks Rank #2 (Buy). Ceridian HCM CDAY and Dropbox DBX are some other top-ranked stocks that investors can consider in the broader sector, each carrying a Zacks Rank #1 (Strong Buy) at present. Be First to New Top 10 Stocks >> Want the latest recommendations from Zacks Investment Research? | c57cbbf4-396d-406b-a793-49e747102292 |
710336.0 | 2023-12-16 23:00:00 UTC | Bio-Rad (BIO) Faces Soft Industry-wide Demand, Macro Woes | DCOMP | https://www.nasdaq.com/articles/bio-rad-bio-faces-soft-industry-wide-demand-macro-woes | nan | nan | Bio-Rad’s BIO performance has been affected by softness in the biopharma space, uncertain global macroeconomic conditions and adverse currency impacts. The stock carries a Zacks Rank #5 (Strong Sell) currently.
Since the beginning of 2023, Bio-Rad has been witnessing softness in smaller biopharma companies, where historically, demand for life science products has been strong. This directly correlates with funding constraints the broader pharmaceutical industry had started to experience. Management stated that the softness in the biopharma space has resulted in the Life Science Segment’s decelerated growth.
In the third quarter of 2023, negative macro trends persisted. Bio-Rad experienced reduced demand from biopharma customers for its process chromatography resins and from both biopharma and smaller biotech customers for Life Science research projects – products. Bio-Rad experienced weaker demand from government accounts in China due to softening macroeconomic conditions.
On the third-quarterearnings call management stated that the situation might have a potentially larger impact on the company’s BioPharma business than initially communicated. This takes into account a core revenue guidance cut of 200 basis points related to the third-quarter revenue shortfall due to weakness in the biopharma industry and softer demand in China.
Bio-Rad Laboratories, Inc. Price
Bio-Rad Laboratories, Inc. price | Bio-Rad Laboratories, Inc. Quote
Further, in recent times, Bio-Rad’s margin performance has been affected by elevated raw material costs, increased logistics costs and higher employee-related expenses. In the third quarter, the company’s gross margin was additionally impacted by an unfavorable product mix, with a higher-than-anticipated percentage of instrument sales versus reagents, as well as lower-than-projected revenues in the Life Science Group.
These macroeconomic factors, particularly the ongoing labor unrest, rising wage and raw material costs, along with the ongoing geopolitical unrest, are resulting in a significant escalation in the company’s operating expenses. Bio-Rad witnessed a 3.9% year-over-year decline in operating profit in the third quarter.
Over the past year, shares of Bio-Rad have declined 21.4% compared with the industry’s 0.9% drop.
On a positive note, following the acquisition of Dropworks in 2021, Bio-Rad is consistently developing its foothold in the rapidly growing digital PCR space to address additional opportunities in the PCR market. The pipeline of Bio-Rad’s QX600 Droplet Digital PCR platform is currently robust and growing. Backed by the tremendous customer response, the company continues to ramp up production capacity to accommodate ongoing demand.
The company’s diabetes franchise is seeing elevated growth and a substantial improvement in the immunohematology and quality control businesses. Bio-Rad recently launched the IH-500 next instrument, designed to enhance the functionality of the system along with increased security from potential cyberattacks. The platform update, which includes updated software, increases the competitiveness of the company’s transfusion medicine portfolio. With the ramp-up of production in Singapore following the manufacturing transition, management has better visibility on future Diagnostics output and, therefore, backlog reduction.
In the third quarter, Clinical Diagnostics sales were up 1% at CER, led by increased demand for diagnostic testing systems and quality control products. Overall, growth of the Clinical Diagnostics Group was driven by strong demand for diagnostic testing systems, primarily within diabetes and blood typing, and growth from the quality control portfolio.
Key Picks
Some better-ranked stocks in the broader medical space are Insulet PODD, Haemonetics HAE and DexCom DXCM. Insulet sports a Zacks Rank #1 (Strong Buy), while Haemonetics and DexCom presently carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Estimates for Insulet’s 2023 earnings per share have moved up from $1.90 to $1.91 in the past 30 days. Shares of the company have plunged 28.8% in the past year compared with the industry’s decline of 2.2%.
PODD’s earnings surpassed estimates in each ofthe trailing four quarters, the average surprise being 105.1%. In the last reported quarter, it delivered an average earnings surprise of 77.4%.
Haemonetics’ stock has risen 10.8% in the past year. Earnings estimates for Haemonetics have increased from $3.86 to $3.89 for 2023 and from $4.11 to $4.15 for 2024 in the past 30 days.
HAE’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 16.1%. In the last reported quarter, it posted an earnings surprise of 5.3%.
Estimates for DexCom’s 2023 earnings per share have increased from $1.43 to $1.44 in the past 30 days. Shares of the company have increased 7.4% in the past year compared with the industry’s rise of 2.2%.
DXCM’s earnings surpassed estimates in each ofthe trailing four quarters, the average surprise being 36.4%. In the last reported quarter, it delivered an average earnings surprise of 47.1%.
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
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Haemonetics Corporation (HAE) : Free Stock Analysis Report
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Bio-Rad Laboratories, Inc. (BIO) : Free Stock Analysis Report
Insulet Corporation (PODD) : Free Stock Analysis Report
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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. | Bio-Rad’s BIO performance has been affected by softness in the biopharma space, uncertain global macroeconomic conditions and adverse currency impacts. On the third-quarterearnings call management stated that the situation might have a potentially larger impact on the company’s BioPharma business than initially communicated. In the third quarter, the company’s gross margin was additionally impacted by an unfavorable product mix, with a higher-than-anticipated percentage of instrument sales versus reagents, as well as lower-than-projected revenues in the Life Science Group. | Bio-Rad Laboratories, Inc. Price Bio-Rad Laboratories, Inc. price | Bio-Rad Laboratories, Inc. Quote Further, in recent times, Bio-Rad’s margin performance has been affected by elevated raw material costs, increased logistics costs and higher employee-related expenses. Insulet sports a Zacks Rank #1 (Strong Buy), while Haemonetics and DexCom presently carry a Zacks Rank #2 (Buy) each. Click to get this free report Haemonetics Corporation (HAE) : Free Stock Analysis Report DexCom, Inc. (DXCM) : Free Stock Analysis Report Bio-Rad Laboratories, Inc. (BIO) : Free Stock Analysis Report Insulet Corporation (PODD) : Free Stock Analysis Report To read this article on Zacks.com click here. | Since the beginning of 2023, Bio-Rad has been witnessing softness in smaller biopharma companies, where historically, demand for life science products has been strong. Bio-Rad Laboratories, Inc. Price Bio-Rad Laboratories, Inc. price | Bio-Rad Laboratories, Inc. Quote Further, in recent times, Bio-Rad’s margin performance has been affected by elevated raw material costs, increased logistics costs and higher employee-related expenses. Click to get this free report Haemonetics Corporation (HAE) : Free Stock Analysis Report DexCom, Inc. (DXCM) : Free Stock Analysis Report Bio-Rad Laboratories, Inc. (BIO) : Free Stock Analysis Report Insulet Corporation (PODD) : Free Stock Analysis Report To read this article on Zacks.com click here. | Since the beginning of 2023, Bio-Rad has been witnessing softness in smaller biopharma companies, where historically, demand for life science products has been strong. In the third quarter, Clinical Diagnostics sales were up 1% at CER, led by increased demand for diagnostic testing systems and quality control products. Earnings estimates for Haemonetics have increased from $3.86 to $3.89 for 2023 and from $4.11 to $4.15 for 2024 in the past 30 days. | 00b4e48c-629d-40bd-a3dc-d470c544fa32 |
710337.0 | 2023-12-16 23:00:00 UTC | Gildan Activewear Ex-CEO Glenn Chamandy Refused To Adhere To Succession Plan | DCOMP | https://www.nasdaq.com/articles/gildan-activewear-ex-ceo-glenn-chamandy-refused-to-adhere-to-succession-plan | nan | nan | (RTTNews) - Apparel manufacturer Gildan Activewear Inc. (GIL), stated in an open letter to shareholders on Wednesday that its former CEO Glenn Chamandy had refused to adhere to the previously agreed-upon succession plan. According to this plan, he was to be replaced by the new CEO Vince Tyra.
The company mentioned that Chamandy had agreed to the succession plan in December 2021. Following this agreement, a search for a new CEO was conducted, and the Board selected Vince Tyra on December 10.
In October, Chamandy requested the Board to allow him to stay as CEO to implement future acquisition plans. The Board denied the request.
After the incident, Chamandy stated to The Globe and Mail in an article on December 16: "I had no intention of leaving. You know, my view is that I would leave when I think the time is right for the company."
The letter further stated that the Board was upset with Chamandy's effort to disrupt the succession plan and continued to defend its decision about the appointment of Tyra as the new CEO.
Also, Chris Shackelton, Co-Founder and Managing Partner of Coliseum Capital Management has accepted to join the Board.
Currently, Gildan's stock is slipping 1.22%, to $34.07 on the New York Stock Exchange.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - Apparel manufacturer Gildan Activewear Inc. (GIL), stated in an open letter to shareholders on Wednesday that its former CEO Glenn Chamandy had refused to adhere to the previously agreed-upon succession plan. In October, Chamandy requested the Board to allow him to stay as CEO to implement future acquisition plans. The letter further stated that the Board was upset with Chamandy's effort to disrupt the succession plan and continued to defend its decision about the appointment of Tyra as the new CEO. | According to this plan, he was to be replaced by the new CEO Vince Tyra. The company mentioned that Chamandy had agreed to the succession plan in December 2021. Following this agreement, a search for a new CEO was conducted, and the Board selected Vince Tyra on December 10. | (RTTNews) - Apparel manufacturer Gildan Activewear Inc. (GIL), stated in an open letter to shareholders on Wednesday that its former CEO Glenn Chamandy had refused to adhere to the previously agreed-upon succession plan. In October, Chamandy requested the Board to allow him to stay as CEO to implement future acquisition plans. The letter further stated that the Board was upset with Chamandy's effort to disrupt the succession plan and continued to defend its decision about the appointment of Tyra as the new CEO. | According to this plan, he was to be replaced by the new CEO Vince Tyra. You know, my view is that I would leave when I think the time is right for the company." The letter further stated that the Board was upset with Chamandy's effort to disrupt the succession plan and continued to defend its decision about the appointment of Tyra as the new CEO. | 264a0a21-e577-4992-971a-85478ab3c996 |
710338.0 | 2023-12-16 23:00:00 UTC | Wednesday 12/20 Insider Buying Report: ASYS, SNCR | DCOMP | https://www.nasdaq.com/articles/wednesday-12-20-insider-buying-report%3A-asys-sncr | nan | nan | Bargain hunters are wise to pay careful attention to insider buying, because although there are many various reasons for an insider to sell a stock, presumably the only reason they would use their hard-earned dollars to make a purchase, is that they expect to make money. Today we look at two noteworthy recent insider buys.
On Tuesday, Amtech Systems' Chief Executive Officer, Robert C. Daigle, made a $260,160 buy of ASYS, purchasing 66,000 shares at a cost of $3.94 each. Amtech Systems is trading up about 4.1% on the day Wednesday. Before this latest buy, Daigle bought ASYS at 5 other times during the past twelve months, for a total cost of $274,239 at an average of $8.79 per share.
And on Friday, Director Kevin Rendino purchased $202,341 worth of Synchronoss Technologies, purchasing 47,115 shares at a cost of $4.29 a piece. Synchronoss Technologies is trading up about 0.6% on the day Wednesday. So far Rendino is in the green, up about 36.8% on their buy based on today's trading high of $5.88.
VIDEO: Wednesday 12/20 Insider Buying Report: ASYS, SNCR
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Bargain hunters are wise to pay careful attention to insider buying, because although there are many various reasons for an insider to sell a stock, presumably the only reason they would use their hard-earned dollars to make a purchase, is that they expect to make money. On Tuesday, Amtech Systems' Chief Executive Officer, Robert C. Daigle, made a $260,160 buy of ASYS, purchasing 66,000 shares at a cost of $3.94 each. Before this latest buy, Daigle bought ASYS at 5 other times during the past twelve months, for a total cost of $274,239 at an average of $8.79 per share. | On Tuesday, Amtech Systems' Chief Executive Officer, Robert C. Daigle, made a $260,160 buy of ASYS, purchasing 66,000 shares at a cost of $3.94 each. And on Friday, Director Kevin Rendino purchased $202,341 worth of Synchronoss Technologies, purchasing 47,115 shares at a cost of $4.29 a piece. VIDEO: Wednesday 12/20 Insider Buying Report: ASYS, SNCR The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Bargain hunters are wise to pay careful attention to insider buying, because although there are many various reasons for an insider to sell a stock, presumably the only reason they would use their hard-earned dollars to make a purchase, is that they expect to make money. On Tuesday, Amtech Systems' Chief Executive Officer, Robert C. Daigle, made a $260,160 buy of ASYS, purchasing 66,000 shares at a cost of $3.94 each. VIDEO: Wednesday 12/20 Insider Buying Report: ASYS, SNCR The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Bargain hunters are wise to pay careful attention to insider buying, because although there are many various reasons for an insider to sell a stock, presumably the only reason they would use their hard-earned dollars to make a purchase, is that they expect to make money. Today we look at two noteworthy recent insider buys. On Tuesday, Amtech Systems' Chief Executive Officer, Robert C. Daigle, made a $260,160 buy of ASYS, purchasing 66,000 shares at a cost of $3.94 each. | d5b75d87-49cc-4bb6-beb2-99f9eb1a2082 |
710339.0 | 2023-12-16 23:00:00 UTC | Ryanair (RYAAY) Hits 52-Week High: What's Driving the Stock? | DCOMP | https://www.nasdaq.com/articles/ryanair-ryaay-hits-52-week-high%3A-whats-driving-the-stock-1 | nan | nan | Shares of Ryanair Holdings plc (RYAAY) scaled a 52-week high of $133.34 in the trading session on Dec 19, 2023, before closing a tad lower at $133.09.
The company’s shares have gained 78% year to date, significantly higher than 14.9% growth of the industry it belongs to.
Image Source: Zacks Investment Research
Let’s find out the factors supporting the uptick.
Passenger volume has been robust at Ryanair over the past few months owing to the rebound in air traffic from the pandemic lows. Ryanair’s second-quarter fiscal 2024 (ended Sep 30, 2023) revenues of $5,361.3 million beat the Zacks Consensus Estimate of $5,137.7 million. Revenues improved year over year, driven by upbeat passenger volumes.
An improvement in Ryanair’s traffic from the pandemic-led slump is encouraging. Traffic grew 11% to 105.4 million during the first half of fiscal 2024. Ryanair expects its traffic view for fiscal 2024 to be 183.5 million. On the back of the buoyant traffic scenario, RYAAY’s profit after tax grew 59% year over year during the first half of fiscal 2024. The load factor increased to 95% in the first half of fiscal 2024 from 92% in the year-ago reported quarter.
Meanwhile, Ryanair recently reported solid traffic numbers for November, driven by upbeat air-travel demand. The number of passengers ferried on RYAAY flights in September was 11.7 million, implying that 4% more passengers flew than a year ago. The load factor (percentage of seats filled by passengers) was high at 92% in November 2023. The reading was similar in the year-ago period. RYAAY operated more than 66,400 flights in November 2023.
Ryanair’s measures to expand its fleet to cater to the improvement in air-travel demand are encouraging. RYAAY’s total fleet included 536 aircraft as of Sep 30, 2023.
Zacks Rank & Stocks to Consider
Ryanair currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the Zacks Transportation sector are Westinghouse Air Brake Technologies Corporation, operating as Wabtec Corporation WAB and SkyWest, Inc. SKYW. Each stock presently carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Wabtec has an expected earnings growth rate of 22.43% for the current year. WAB delivered a trailing four-quarter earnings surprise of 7.11%, on average.
The Zacks Consensus Estimate for WAB’s current-year earnings has improved 4.9% over the past 90 days. Shares of WAB have gained 26.1% year to date.
SkyWest's fleet-modernization efforts are commendable. The Zacks Consensus Estimate for SKYW’s current-year earnings has improved 38.9% over the past 90 days. Shares of SKYW have surged 209.7% year to date.
SKYW delivered a trailing four-quarter earnings surprise of 32.57%, on average.
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
Be First to New Top 10 Stocks >>
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Ryanair Holdings PLC (RYAAY) : Free Stock Analysis Report
SkyWest, Inc. (SKYW) : Free Stock Analysis Report
Westinghouse Air Brake Technologies Corporation (WAB) : Free Stock Analysis Report
To read this article on Zacks.com click here.
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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. | Shares of Ryanair Holdings plc (RYAAY) scaled a 52-week high of $133.34 in the trading session on Dec 19, 2023, before closing a tad lower at $133.09. Passenger volume has been robust at Ryanair over the past few months owing to the rebound in air traffic from the pandemic lows. From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. | Revenues improved year over year, driven by upbeat passenger volumes. Some better-ranked stocks from the Zacks Transportation sector are Westinghouse Air Brake Technologies Corporation, operating as Wabtec Corporation WAB and SkyWest, Inc. SKYW. Click to get this free report Ryanair Holdings PLC (RYAAY) : Free Stock Analysis Report SkyWest, Inc. (SKYW) : Free Stock Analysis Report Westinghouse Air Brake Technologies Corporation (WAB) : Free Stock Analysis Report To read this article on Zacks.com click here. | Zacks Rank & Stocks to Consider Ryanair currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks from the Zacks Transportation sector are Westinghouse Air Brake Technologies Corporation, operating as Wabtec Corporation WAB and SkyWest, Inc. SKYW. Click to get this free report Ryanair Holdings PLC (RYAAY) : Free Stock Analysis Report SkyWest, Inc. (SKYW) : Free Stock Analysis Report Westinghouse Air Brake Technologies Corporation (WAB) : Free Stock Analysis Report To read this article on Zacks.com click here. | Ryanair expects its traffic view for fiscal 2024 to be 183.5 million. The load factor increased to 95% in the first half of fiscal 2024 from 92% in the year-ago reported quarter. Be First to New Top 10 Stocks >> Want the latest recommendations from Zacks Investment Research? | a2609ca7-c0c0-465e-bd61-43e0d7ee9feb |
710340.0 | 2023-12-16 23:00:00 UTC | EXCLUSIVE-Rosneft to discuss possible German asset sale with Berlin on Friday - source | DCOMP | https://www.nasdaq.com/articles/exclusive-rosneft-to-discuss-possible-german-asset-sale-with-berlin-on-friday-source | nan | nan | By Riham Alkousaa and Sarah Marsh
BERLIN, Dec 20 (Reuters) - Rosneft ROSN.MM representatives will travel to Berlin on Friday to discuss a possible sale of the Russian oil giant's German assets, among other options, with government officials, a source familiar with the matter told Reuters.
The meeting is the first of its kind since Berlin placed local units of Rosneft, which owns 54.17% of the PCK Schwedt refinery, under trusteeship, keeping Rosneft as the legal owner of the stake but stripping it of its ability to exert control.
It also comes a week after Shell announced the sale of its 37.5% stake in the refinery, which supplies most of Berlin's fuel, to Britain's Prax Group, and after Rosneft filed a case at Germany's Federal Constitutional Court against the trusteeship.
The sale of Rosneft's stake is one option that will be discussed in the meeting with Philipp Steinberg, the head of the economic stabilisation and energy security unit in the ministry, the source said.
"It will be an exchange of positions of possibilities and ... there will certainly be no concrete decision on a solution on Friday," the source added.
A spokesperson for the economy ministry declined to comment.
Rosneft did not immediately respond to a request for comment.
(Reporting by Riham Alkousaa and Sarah Marsh Additional reporting by Vladimir Soldatkin Editing by Sabine Wollrab, Miranda Murray, Kirsten Donovan)
((Riham.Alkousaa@thomsonreuters.com; Twitter: @RihamKousa;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Riham Alkousaa and Sarah Marsh BERLIN, Dec 20 (Reuters) - Rosneft ROSN.MM representatives will travel to Berlin on Friday to discuss a possible sale of the Russian oil giant's German assets, among other options, with government officials, a source familiar with the matter told Reuters. It also comes a week after Shell announced the sale of its 37.5% stake in the refinery, which supplies most of Berlin's fuel, to Britain's Prax Group, and after Rosneft filed a case at Germany's Federal Constitutional Court against the trusteeship. The sale of Rosneft's stake is one option that will be discussed in the meeting with Philipp Steinberg, the head of the economic stabilisation and energy security unit in the ministry, the source said. | By Riham Alkousaa and Sarah Marsh BERLIN, Dec 20 (Reuters) - Rosneft ROSN.MM representatives will travel to Berlin on Friday to discuss a possible sale of the Russian oil giant's German assets, among other options, with government officials, a source familiar with the matter told Reuters. The sale of Rosneft's stake is one option that will be discussed in the meeting with Philipp Steinberg, the head of the economic stabilisation and energy security unit in the ministry, the source said. (Reporting by Riham Alkousaa and Sarah Marsh Additional reporting by Vladimir Soldatkin Editing by Sabine Wollrab, Miranda Murray, Kirsten Donovan) ((Riham.Alkousaa@thomsonreuters.com; Twitter: @RihamKousa;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Riham Alkousaa and Sarah Marsh BERLIN, Dec 20 (Reuters) - Rosneft ROSN.MM representatives will travel to Berlin on Friday to discuss a possible sale of the Russian oil giant's German assets, among other options, with government officials, a source familiar with the matter told Reuters. The meeting is the first of its kind since Berlin placed local units of Rosneft, which owns 54.17% of the PCK Schwedt refinery, under trusteeship, keeping Rosneft as the legal owner of the stake but stripping it of its ability to exert control. The sale of Rosneft's stake is one option that will be discussed in the meeting with Philipp Steinberg, the head of the economic stabilisation and energy security unit in the ministry, the source said. | The meeting is the first of its kind since Berlin placed local units of Rosneft, which owns 54.17% of the PCK Schwedt refinery, under trusteeship, keeping Rosneft as the legal owner of the stake but stripping it of its ability to exert control. The sale of Rosneft's stake is one option that will be discussed in the meeting with Philipp Steinberg, the head of the economic stabilisation and energy security unit in the ministry, the source said. "It will be an exchange of positions of possibilities and ... there will certainly be no concrete decision on a solution on Friday," the source added. | 5bb91509-a2ef-49c1-b0c6-5852dfd7d1b5 |
710341.0 | 2023-12-16 23:00:00 UTC | Westport (WPRT) Gets $33M Contract From Truck Manufacturer | DCOMP | https://www.nasdaq.com/articles/westport-wprt-gets-%2433m-contract-from-truck-manufacturer | nan | nan | Westport Fuel Systems Inc. WPRT received a development contract from a global heavy truck manufacturer. Per the contract, Westport needs to modify its Next Generation LNG HPDI fuel system to comply with the Euro 7 emissions requirements for heavy-duty vehicle applications.
The estimated amount of the program is around $33 million, which will be financed by the original equipment manufacturer (“OEM”). The new LNG and liquified biomethane-fueled product is expected to launch within a few years.
The new features that will be incorporated in Westport’s Next Generation LNG HPDI fuel system are enhanced fuel pressure control to improve fuel efficiency, higher pressure fuel supply systems to optimize engine performance and Brake Thermal Efficiency, enhanced reliability and durability and On Board Fuel Consumption Monitoring.
Per Anders Johansson, vice president of Heavy-Duty OEM for Westport Fuel Systems, the LNG HPDI fuel system helps long-haul trucks to reduce CO2 emission while fulfilling the fleet’s performance demands for payload, performance and durability, along with stringent Euro 7 emission regulations.
This program is Westport’s next major collaboration with the OEM to design a low-carbon solution for heavy-duty trucking by developing Westport's Next Generation LNG HPDI fuel system. The new solution will be an extension of the existing HPDI LNG truck application from the OEM.
The Euro 7 standards aim to reduce air pollution from road transport by lowering emissions limits from new vehicles sold in the European Union. The agreement on the new regulation is yet to be finalized, but for heavy-duty vehicles, the European Commission's proposal will bring the new standards into effect from mid-2027.
Zacks Rank & Key Picks
WPRT currently carries a Zacks Rank #3 (Hold).
Some better-ranked players in the auto space are Volvo VLVLY, Stellantis N.V. STLA and BYD Company Limited BYDDY. While VLVLY and STLA each sport a Zacks Rank #1 (Strong Buy), BYDDY carries Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for VLVLY’s 2023 sales and earnings indicates year-over-year growth of 4.2% and 70.6%, respectively. The EPS estimates for 2023 and 2024 have increased 8 cents and 7 cents, respectively, in the past seven days.
The Zacks Consensus Estimate for STLA’s 2023 sales and earnings indicates year-over-year growth of 12.3% and 10.5%, respectively. The EPS estimate for 2024 has increased 13 cents in the past 30 days.
The Zacks Consensus Estimate for BYDDY’s 2023 sales and earnings indicates year-over-year growth of 35.7% and 74.7%, respectively. The EPS estimate for 2024 has increased 10 cents in the past 60 days.
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
Be First to New Top 10 Stocks >>
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
Westport Fuel Systems Inc. (WPRT) : Free Stock Analysis Report
AB Volvo (VLVLY) : Free Stock Analysis Report
Byd Co., Ltd. (BYDDY) : Free Stock Analysis Report
Stellantis N.V. (STLA) : Free Stock Analysis Report
To read this article on Zacks.com click here.
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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. | Per the contract, Westport needs to modify its Next Generation LNG HPDI fuel system to comply with the Euro 7 emissions requirements for heavy-duty vehicle applications. The Euro 7 standards aim to reduce air pollution from road transport by lowering emissions limits from new vehicles sold in the European Union. From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. | The new features that will be incorporated in Westport’s Next Generation LNG HPDI fuel system are enhanced fuel pressure control to improve fuel efficiency, higher pressure fuel supply systems to optimize engine performance and Brake Thermal Efficiency, enhanced reliability and durability and On Board Fuel Consumption Monitoring. Per Anders Johansson, vice president of Heavy-Duty OEM for Westport Fuel Systems, the LNG HPDI fuel system helps long-haul trucks to reduce CO2 emission while fulfilling the fleet’s performance demands for payload, performance and durability, along with stringent Euro 7 emission regulations. Click to get this free report Westport Fuel Systems Inc. (WPRT) : Free Stock Analysis Report AB Volvo (VLVLY) : Free Stock Analysis Report Byd Co., Ltd. (BYDDY) : Free Stock Analysis Report Stellantis N.V. (STLA) : Free Stock Analysis Report To read this article on Zacks.com click here. | The new features that will be incorporated in Westport’s Next Generation LNG HPDI fuel system are enhanced fuel pressure control to improve fuel efficiency, higher pressure fuel supply systems to optimize engine performance and Brake Thermal Efficiency, enhanced reliability and durability and On Board Fuel Consumption Monitoring. Per Anders Johansson, vice president of Heavy-Duty OEM for Westport Fuel Systems, the LNG HPDI fuel system helps long-haul trucks to reduce CO2 emission while fulfilling the fleet’s performance demands for payload, performance and durability, along with stringent Euro 7 emission regulations. Click to get this free report Westport Fuel Systems Inc. (WPRT) : Free Stock Analysis Report AB Volvo (VLVLY) : Free Stock Analysis Report Byd Co., Ltd. (BYDDY) : Free Stock Analysis Report Stellantis N.V. (STLA) : Free Stock Analysis Report To read this article on Zacks.com click here. | Per the contract, Westport needs to modify its Next Generation LNG HPDI fuel system to comply with the Euro 7 emissions requirements for heavy-duty vehicle applications. Per Anders Johansson, vice president of Heavy-Duty OEM for Westport Fuel Systems, the LNG HPDI fuel system helps long-haul trucks to reduce CO2 emission while fulfilling the fleet’s performance demands for payload, performance and durability, along with stringent Euro 7 emission regulations. While VLVLY and STLA each sport a Zacks Rank #1 (Strong Buy), BYDDY carries Zacks Rank #2. | 87016a66-ea7e-4ceb-977d-604892145c33 |
710342.0 | 2023-12-16 23:00:00 UTC | Dow Movers: CRM, CVX | DCOMP | https://www.nasdaq.com/articles/dow-movers%3A-crm-cvx-4 | nan | nan | In early trading on Wednesday, shares of Chevron topped the list of the day's best performing Dow Jones Industrial Average components, trading up 0.5%. Year to date, Chevron has lost about 15.1% of its value.
And the worst performing Dow component thus far on the day is Salesforce, trading down 0.7%. Salesforce is showing a gain of 98.0% looking at the year to date performance.
Two other components making moves today are International Business Machines, trading down 0.6%, and Walt Disney, trading up 0.2% on the day.
VIDEO: Dow Movers: CRM, CVX
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In early trading on Wednesday, shares of Chevron topped the list of the day's best performing Dow Jones Industrial Average components, trading up 0.5%. And the worst performing Dow component thus far on the day is Salesforce, trading down 0.7%. Salesforce is showing a gain of 98.0% looking at the year to date performance. | In early trading on Wednesday, shares of Chevron topped the list of the day's best performing Dow Jones Industrial Average components, trading up 0.5%. Year to date, Chevron has lost about 15.1% of its value. And the worst performing Dow component thus far on the day is Salesforce, trading down 0.7%. | In early trading on Wednesday, shares of Chevron topped the list of the day's best performing Dow Jones Industrial Average components, trading up 0.5%. And the worst performing Dow component thus far on the day is Salesforce, trading down 0.7%. Two other components making moves today are International Business Machines, trading down 0.6%, and Walt Disney, trading up 0.2% on the day. | And the worst performing Dow component thus far on the day is Salesforce, trading down 0.7%. Salesforce is showing a gain of 98.0% looking at the year to date performance. VIDEO: Dow Movers: CRM, CVX The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | 59bab7ec-f304-4366-8503-cfd175fbf454 |
710343.0 | 2023-12-16 23:00:00 UTC | US STOCKS-S&P 500, Dow slip as rate-cut rally sputters; FedEx slides | DCOMP | https://www.nasdaq.com/articles/us-stocks-sp-500-dow-slip-as-rate-cut-rally-sputters-fedex-slides | nan | nan | By Johann M Cherian and Shristi Achar A
Dec 20 (Reuters) - The benchmark S&P 500 and the blue-chip Dow inched lower on Wednesday as investors took a breather from a rally that was sparked by the Federal Reserve's likely pivot to a dovish policy, while FedEx tumbled after issuing a grim outlook.
The three main indexes had advanced over 2% since the Fed's Dec. 13 meet where policymakers projected lower policy rates by the end of 2024, with the Dow notching fresh record highs and the S&P 500 within arm's reach of its highest closing levels since January 2022.
Since then, central bank officials have attempted to keep investor euphoria in check, the latest being Chicago Fed President Austan Goolsbee who said further progress on beating back inflation will be the decisive factor in any central bank decision next year to reduce interest rates.
"Just the fact that we've had such a strong run (of gains) in the overall market, it is taking a little bit of a break," said Robert Pavlik, senior portfolio manager at Dakota Wealth.
Still, traders expect the Fed to ease credit conditions by over 125 basis points by September next year, with a 79% chance that the first cut of at least 25 basis points could come in as early as March 2024, according to the CME Group's FedWatch tool.
Some analysts, however, pointed that the market expectations around rate cuts might be too aggressive.
"I don't think the economy is slipping to the point where you need four or five rate cuts ... most likely two rate cuts are coming in 2024 and then the Fed is going to be on hold after that," Pavlik said.
Meanwhile, FedExFDX.N slid 10.1% after the global delivery firm cut its full-year revenue forecast and reported quarterly profit that fell far short of analysts' targets.
Volatile macroeconomic conditions, muted retailer restocking and reduced demand from the company's largest Express customer, the U.S. Postal Service (USPS), dealt a blow to the company's air delivery business.
The results also dragged down shares of rival United Parcel Service UPS.N by 2.1%.
Nine of the top 11 S&P 500 sectors were in declines, though the communications services sector .SPLRCLadded 1.1%, underpinned by gains in Alphabet GOOGL.O.
Alphabet surged 2.4% to a two-month high after a report said Google plans to reorganize a big part of its 30,000-person ad sales unit, citing a person with knowledge of the situation.
General MillsGIS.Nslipped 2.5% after the Cheerios cereal-maker trimmed its annual sales forecast due to slowing demand for its higher-priced products.
The S&P index recorded 13 new 52-week highs and one new low, while the Nasdaq recorded 60 new highs and 34 new lows.
Are we there yet? https://tmsnrt.rs/3RQBoee
(Reporting by Johann M Cherian and Shristi Achar A in Bengaluru; Editing by Maju Samuel)
((johann.mcherian@thomsonreuters.com; Shristi.AcharA@thomsonreuters.com https://twitter.com/ShristiAchar;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Johann M Cherian and Shristi Achar A Dec 20 (Reuters) - The benchmark S&P 500 and the blue-chip Dow inched lower on Wednesday as investors took a breather from a rally that was sparked by the Federal Reserve's likely pivot to a dovish policy, while FedEx tumbled after issuing a grim outlook. The three main indexes had advanced over 2% since the Fed's Dec. 13 meet where policymakers projected lower policy rates by the end of 2024, with the Dow notching fresh record highs and the S&P 500 within arm's reach of its highest closing levels since January 2022. Alphabet surged 2.4% to a two-month high after a report said Google plans to reorganize a big part of its 30,000-person ad sales unit, citing a person with knowledge of the situation. | Since then, central bank officials have attempted to keep investor euphoria in check, the latest being Chicago Fed President Austan Goolsbee who said further progress on beating back inflation will be the decisive factor in any central bank decision next year to reduce interest rates. The S&P index recorded 13 new 52-week highs and one new low, while the Nasdaq recorded 60 new highs and 34 new lows. https://tmsnrt.rs/3RQBoee (Reporting by Johann M Cherian and Shristi Achar A in Bengaluru; Editing by Maju Samuel) ((johann.mcherian@thomsonreuters.com; Shristi.AcharA@thomsonreuters.com https://twitter.com/ShristiAchar;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The three main indexes had advanced over 2% since the Fed's Dec. 13 meet where policymakers projected lower policy rates by the end of 2024, with the Dow notching fresh record highs and the S&P 500 within arm's reach of its highest closing levels since January 2022. Still, traders expect the Fed to ease credit conditions by over 125 basis points by September next year, with a 79% chance that the first cut of at least 25 basis points could come in as early as March 2024, according to the CME Group's FedWatch tool. "I don't think the economy is slipping to the point where you need four or five rate cuts ... most likely two rate cuts are coming in 2024 and then the Fed is going to be on hold after that," Pavlik said. | By Johann M Cherian and Shristi Achar A Dec 20 (Reuters) - The benchmark S&P 500 and the blue-chip Dow inched lower on Wednesday as investors took a breather from a rally that was sparked by the Federal Reserve's likely pivot to a dovish policy, while FedEx tumbled after issuing a grim outlook. The three main indexes had advanced over 2% since the Fed's Dec. 13 meet where policymakers projected lower policy rates by the end of 2024, with the Dow notching fresh record highs and the S&P 500 within arm's reach of its highest closing levels since January 2022. Some analysts, however, pointed that the market expectations around rate cuts might be too aggressive. | 15d87135-4b89-48af-8825-e353216bc827 |
710344.0 | 2023-12-16 23:00:00 UTC | 2 Overhyped Artificial Intelligence (AI) Stocks to Sell in 2024 | DCOMP | https://www.nasdaq.com/articles/2-overhyped-artificial-intelligence-ai-stocks-to-sell-in-2024 | nan | nan | The technology-heavy Nasdaq Index has risen an impressive 43% year to date. Much of that came from investor optimism in artificial intelligence (AI), which is already boosting growth for many companies. But even though a rising tide can lift all boats, some of these stocks don't deserve their inflated valuations. Let's discuss why C3.ai (NYSE: AI) and Arm Holdings (NASDAQ: ARM) might underperform in 2024.
1. C3.ai
With shares up by a whopping 183% year to date, C3.ai was a fantastic investment for those who got in at the start of 2023. But this doesn't overshadow the company's weak fundamentals. Despite its name, C3.ai remains a poor way to bet on the AI opportunity because of its relentless cash burn and lackluster growth.
Founded in 2009, software company C3.ai offers enterprise software in a variety of industries. According to the company website, its turnkey systems have been for tasks ranging from predicting system failure in military aircraft to optimizing industrial plant management. But while the business has a slew of big-name clients (including Shell and the U.S. Air Force), operational results leave much to be desired.
Revenue increased by just 17% year over year to $73.2 million, with the vast majority coming from recurring client subscriptions. However, C3.ai's cost of revenue and overhead expenses remain high, leading to an operating loss of $79.4 million -- up 10% from the prior year period. With such modest top-line growth, the company doesn't look likely to scale into profitability any time soon. Even though, with $762 million in cash and marketable securities on its balance sheet, it is in no immediate threat of running out of the liquidity needed to maintain operations.
Based solely on its income statement and balance sheet, C3.ai doesn't look like a horrible company. But its valuation is simply too high. With a price-to-sales (P/S) multiple of 12.6, the stock is roughly 5 times pricier than the S&P 500 average. And that's just too much for what's on offer.
2. Arm Holdings
With an initial public offering (IPO) in September of this year, Arm Holdings was at the right place at the right time to ride the wave of AI hype, which helped it earn a market cap of $73 billion at the time of writing. But while the chip designer can benefit from rising AI-related demand, it will struggle to justify its astronomical valuation.
On the surface, Arm Holdings is an attractive business with a deep economic moat. Founded in 1990, the U.K.-based semiconductor company is a leader in designing and licensing the intellectual property needed to make central processing units (CPUs) -- a technology with applications in a wide range of consumer and enterprise hardware. Management expects new demand from data centers and cloud computing providers to help offset its more mature revenue streams, such as smartphones and PCs.
Image source: Getty Images.
But like C3.ai, Arm's biggest problem is valuation. With a price-to-sales ratio of 26, it makes even C3.ai look cheap.
In fact, the stock's valuation is similar to the industry-leading semiconductor company, Nvidia, which trades for 27 times sales. The problem is that Nvidia grew its top line by 206% year over year in its most recently reported quarter, while Arm grew its top line by only 28% (to $806 million). Investors who want to bet on the "picks and shovels" side of the AI opportunity have better options.
Focus on fundamentals
Following the launch of ChatGPT in late 2022, AI has arguably become a hype cycle -- a situation where investor excitement can begin to overshadow fundamentals. Companies that seem associated with the technology have enjoyed substantial share price growth despite minimal improvement in their operations. C3.AI and Arm Holdings seem to fit into this category. Investors should be careful about holding these stocks into 2024 as the hype begins to fade and pressure mounts for AI-related companies to justify their sky-high valuations.
Should you invest $1,000 in Arm Holdings right now?
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Will Ebiefung has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool recommends C3.ai. 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. | Founded in 1990, the U.K.-based semiconductor company is a leader in designing and licensing the intellectual property needed to make central processing units (CPUs) -- a technology with applications in a wide range of consumer and enterprise hardware. Management expects new demand from data centers and cloud computing providers to help offset its more mature revenue streams, such as smartphones and PCs. Investors should be careful about holding these stocks into 2024 as the hype begins to fade and pressure mounts for AI-related companies to justify their sky-high valuations. | Let's discuss why C3.ai (NYSE: AI) and Arm Holdings (NASDAQ: ARM) might underperform in 2024. Founded in 2009, software company C3.ai offers enterprise software in a variety of industries. Before you buy stock in Arm Holdings, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Arm Holdings wasn't one of them. | Arm Holdings With an initial public offering (IPO) in September of this year, Arm Holdings was at the right place at the right time to ride the wave of AI hype, which helped it earn a market cap of $73 billion at the time of writing. Investors should be careful about holding these stocks into 2024 as the hype begins to fade and pressure mounts for AI-related companies to justify their sky-high valuations. Before you buy stock in Arm Holdings, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Arm Holdings wasn't one of them. | Much of that came from investor optimism in artificial intelligence (AI), which is already boosting growth for many companies. Before you buy stock in Arm Holdings, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Arm Holdings wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Will Ebiefung has no position in any of the stocks mentioned. | 1de2f9f6-c8d6-4ebe-b803-01144b899928 |
710345.0 | 2023-12-16 23:00:00 UTC | Hooker Furniture (HOFT) and Beacon Roofing Supply (BECN) Are Aggressive Growth Stocks | DCOMP | https://www.nasdaq.com/articles/hooker-furniture-hoft-and-beacon-roofing-supply-becn-are-aggressive-growth-stocks | nan | nan | Brian Bolan is the aggressive growth stock strategist at Zacks Investment Research and he has two more stocks for your aggressive growth stock radar screen. Today Brian is looking at a component of the housing industry.
New homeowners and people that are moving often buy new furniture, and it usually isn't an inexpensive adventure. Brian notes that Hooker Furniture HOFT has found its way to the strongest Zacks rank after posting a solid beat just a few weeks ago.
As is the case in all of Brian's videos he reviews the earnings history, estimate revision and valuation of this stock. For HOFT Brian doesn't have a lot of data to work with as estimates have only recently come in on this stock. That said there are a few positive earnings estimate revisions that have driven this stock to the highest Zacks rank.
With interest rates moving lower and the number of homes for sale increasing it is likely that consumers will return to the housing market in the coming year. An influx and activity could lead to more furniture purchases and this stock is poised to benefit from that trend.
Brian also takes a look at a more expensive and foundational part of the housing market in Beacon Roofing Supply BECN. This company is much larger than the furniture maker and is a lot more stable as growth rates are much smaller. Oftentimes homeowners will replace a roof before attempting to sell a home that they have held for some time. This could be a source of new business for the company in 2024 as lower rates will inevitably heat up the home buying market.
As with all stocks Brian reviews BECN earnings estimates and earnings history as well as the valuation for the stock. If home is where the heart is then this video will certainly warm your heart.
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
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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. | Brian notes that Hooker Furniture HOFT has found its way to the strongest Zacks rank after posting a solid beat just a few weeks ago. With interest rates moving lower and the number of homes for sale increasing it is likely that consumers will return to the housing market in the coming year. From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. | As is the case in all of Brian's videos he reviews the earnings history, estimate revision and valuation of this stock. As with all stocks Brian reviews BECN earnings estimates and earnings history as well as the valuation for the stock. Click to get this free report Beacon Roofing Supply, Inc. (BECN) : Free Stock Analysis Report Hooker Furnishings Corp. (HOFT) : Free Stock Analysis Report To read this article on Zacks.com click here. | Brian Bolan is the aggressive growth stock strategist at Zacks Investment Research and he has two more stocks for your aggressive growth stock radar screen. As with all stocks Brian reviews BECN earnings estimates and earnings history as well as the valuation for the stock. Click to get this free report Beacon Roofing Supply, Inc. (BECN) : Free Stock Analysis Report Hooker Furnishings Corp. (HOFT) : Free Stock Analysis Report To read this article on Zacks.com click here. | As is the case in all of Brian's videos he reviews the earnings history, estimate revision and valuation of this stock. Brian also takes a look at a more expensive and foundational part of the housing market in Beacon Roofing Supply BECN. Be First to New Top 10 Stocks >> Want the latest recommendations from Zacks Investment Research? | 814f9f2f-d435-49ef-ba5d-d8e43775e3e0 |
710346.0 | 2023-12-16 23:00:00 UTC | HCI Group (HCI) Affiliate TypTap Surpasses $1B In-Force Premium | DCOMP | https://www.nasdaq.com/articles/hci-group-hci-affiliate-typtap-surpasses-%241b-in-force-premium | nan | nan | HCI Group, Inc. HCI recently declared the successful assumption of the initial of its two transfers from Florida's Citizens Property Insurance Corporation by its subsidiary, TypTap Insurance Company. This strategic step has resulted in the acquisition of approximately $30 million in in-force premiums for the company.
On Dec 19, 2023, TypTap assumed around 6,800 policies, in accordance with the approval granted by the Florida Office of Insurance Regulation in October 2023, which had authorized up to 25,000 policies. HCI expects its subsidiary to conclude the second assumption from Citizens Property Insurance in the first month of 2024.
The first assumption has helped TypTap to surpass writing $1 billion in in-force premiums. At the beginning of 2023, the company had in-force premiums of less than $740 million. This move underscores TypTap's expanding capabilities and the efficacy of its internally developed technology.
During the 2018-2022 period, TypTap recorded a gross written premium CAGR of 121%. It was launched in 2016 and now is operating in 13 states. As of Jun 30, 2023, it had invested assets of $306 million, 79% of which was in fixed income to enhance stability. Refining risk evaluation and improving efficiency are expanding its profit levels.
Last month, HCI Group’s subsidiary, HCPCI, assumed around 53,750 policies from the state-backed insurer in Florida, with an acceptance rate of 74%. The assumed policies represented an in-force premium of around $196 million.
Price Performance
Over the past year, shares of HCI have jumped 139.1%, outperforming the industry’s 14.6% growth.
Image Source: Zacks Investment Research
Zacks Rank & Other Key Picks
HCI Group currently sports a Zacks Rank #1 (Strong Buy). Some other top-ranked stocks in the broader Finance space are Assurant, Inc. AIZ, Brown & Brown, Inc. BRO and Chubb Limited CB. While Assurant sports a Zacks Rank #1 at present, Brown & Brown and Chubb carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Assurant’s current-year earnings indicates a 31% year-over-year increase. It beat earnings estimates in all the past four quarters, with an average surprise of 42.4%. Also, the consensus mark for AIZ’s 2023 revenues suggests 5.4% year-over-year growth.
The Zacks Consensus Estimate for Brown & Brown’s current-year earnings is pegged at $2.76 per share, which indicates 21.1% year-over-year growth. It has witnessed five upward estimate revisions against none in the opposite direction during the past 60 days. BRO beat earnings estimates in each of the past four quarters, with an average surprise of 12.3%.
The consensus mark for Chubb’s current-year earnings indicates a 25.9% year-over-year increase. It beat earnings estimates in three of the past four quarters and missed once, with an average surprise of 6.5%. Furthermore, the consensus estimate for CB’s 2023 revenues suggests 10.6% year-over-year growth.
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
Be First to New Top 10 Stocks >>
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
Chubb Limited (CB) : Free Stock Analysis Report
Assurant, Inc. (AIZ) : Free Stock Analysis Report
Brown & Brown, Inc. (BRO) : Free Stock Analysis Report
HCI Group, Inc. (HCI) : Free Stock Analysis Report
To read this article on Zacks.com click here.
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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. | Last month, HCI Group’s subsidiary, HCPCI, assumed around 53,750 policies from the state-backed insurer in Florida, with an acceptance rate of 74%. Price Performance Over the past year, shares of HCI have jumped 139.1%, outperforming the industry’s 14.6% growth. From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. | Image Source: Zacks Investment Research Zacks Rank & Other Key Picks HCI Group currently sports a Zacks Rank #1 (Strong Buy). Some other top-ranked stocks in the broader Finance space are Assurant, Inc. AIZ, Brown & Brown, Inc. BRO and Chubb Limited CB. Click to get this free report Chubb Limited (CB) : Free Stock Analysis Report Assurant, Inc. (AIZ) : Free Stock Analysis Report Brown & Brown, Inc. (BRO) : Free Stock Analysis Report HCI Group, Inc. (HCI) : Free Stock Analysis Report To read this article on Zacks.com click here. | Image Source: Zacks Investment Research Zacks Rank & Other Key Picks HCI Group currently sports a Zacks Rank #1 (Strong Buy). The Zacks Consensus Estimate for Brown & Brown’s current-year earnings is pegged at $2.76 per share, which indicates 21.1% year-over-year growth. Click to get this free report Chubb Limited (CB) : Free Stock Analysis Report Assurant, Inc. (AIZ) : Free Stock Analysis Report Brown & Brown, Inc. (BRO) : Free Stock Analysis Report HCI Group, Inc. (HCI) : Free Stock Analysis Report To read this article on Zacks.com click here. | The first assumption has helped TypTap to surpass writing $1 billion in in-force premiums. At the beginning of 2023, the company had in-force premiums of less than $740 million. The Zacks Consensus Estimate for Brown & Brown’s current-year earnings is pegged at $2.76 per share, which indicates 21.1% year-over-year growth. | 46422d2a-ab77-419c-99f7-a83e95005420 |
710347.0 | 2023-12-16 23:00:00 UTC | Could Supply Chain Disruptions End the Party? | DCOMP | https://www.nasdaq.com/articles/could-supply-chain-disruptions-end-the-party | nan | nan | Is the party over? Pre-market futures are down for the first time in recent memory; it’s been a terrific week-long demonstration of exuberance, as market participants did the math on what three (or perhaps more) interest rate cuts next year will do for earnings — and others followed along for fear of missing out. We may be seeing some profits being booked — the Dow is -59 points at this hour, the S&P 500 -9 and the Nasdaq -49 points. Or maybe it’s a sign of something else…
Aside from valuation considerations on this run-up — which is not a week old, but more like eight weeks — we do have the next leg in the Middle Eastern war to concern ourselves with. The October 7th attack on Israeli citizens morphed into an Israeli army strafing of the Gaza Strip, which has now morphed into maritime attacks from Yemen-based Houthi rebels to restrict Israel’s war effort by hitting their supply chains.
But it may not be only the war effort supply chains being affected: 100 attacks on 12 separate vessels in the Red Sea — which stretches from the Sinai Peninsula to the narrow pass to the Arabian Sea between Yemen and Somalia — have occurred so far. It’s now taking a coalition of mostly Western trade nations to secure the passage of key goods like oil and gas. Add to this the issues in Ukraine with grain shipments as its war with Russia approaches a winter stalemate, and we’ll start to add up the possibility that supply chain disruptions may lead to spikes in commodity prices.
These may be small wrinkles easily ironed out over the grand scheme of things, but they may not be. Everyone can remember the global supply chain issues during and just after the Covid pandemic, and what they meant for inflation in this country. This directly elbows its way into our current conversation regarding when the Fed will start easing interest rates; if the monetary policy body sees inflation dangers rearing their ugly head once again, you can bet they’ll delay their rate-cut dot-plot. And that will be felt in the stock market.
This morning, Q3 U.S. Current Account deficits are out — lower quarter over quarter, as expected, to -$200.3 billion, but still higher than the -$197.5 billion expected. There is also a residual pandemic effect here: before Covid, we were seeing Current Account deficits roughly half of where they are now. The good news is that we are indeed coming down, even if slightly less than originally anticipated.
And American staple General Mills GIS reported mixed results in its fiscal Q2 earnings report this morning, beating expectations on its bottom line by a solid dime to $1.25 per share (and even better than the $1.10 per share reported in the year-ago quarter), marking its eighth-straight earnings beat. But revenues in the quarter, at $5.14 billion, missed the Zacks consensus by -3.7%. As a result, shares are selling off -4% in today’s pre-market, adding to the pain of -20% returns year to date, basically a mirror image of the S&P’s +24%. For more of GIS’ earnings, click here.
After the opening bell, we’ll get a look at Existing Home Sales for November — expected to tick down month over month — and Consumer Confidence for December is expected to bump up from prior levels. Bond yields are still wallowing at 7-month lows — 4.378% on 2’s, 3.881% on 10’s — which should benefit the stock market. Right now, it’s likely some profit-booking going on in the sell-off, but it’s always worth it to pay attention to what’s going on.
Questions or comments about this article and/or author? Click here>>
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
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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. | Pre-market futures are down for the first time in recent memory; it’s been a terrific week-long demonstration of exuberance, as market participants did the math on what three (or perhaps more) interest rate cuts next year will do for earnings — and others followed along for fear of missing out. This directly elbows its way into our current conversation regarding when the Fed will start easing interest rates; if the monetary policy body sees inflation dangers rearing their ugly head once again, you can bet they’ll delay their rate-cut dot-plot. From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. | This morning, Q3 U.S. Current Account deficits are out — lower quarter over quarter, as expected, to -$200.3 billion, but still higher than the -$197.5 billion expected. And American staple General Mills GIS reported mixed results in its fiscal Q2 earnings report this morning, beating expectations on its bottom line by a solid dime to $1.25 per share (and even better than the $1.10 per share reported in the year-ago quarter), marking its eighth-straight earnings beat. Click to get this free report General Mills, Inc. (GIS) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports SPDR S&P 500 ETF (SPY): ETF Research Reports SPDR Dow Jones Industrial Average ETF (DIA): ETF Research Reports To read this article on Zacks.com click here. | And American staple General Mills GIS reported mixed results in its fiscal Q2 earnings report this morning, beating expectations on its bottom line by a solid dime to $1.25 per share (and even better than the $1.10 per share reported in the year-ago quarter), marking its eighth-straight earnings beat. From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Click to get this free report General Mills, Inc. (GIS) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports SPDR S&P 500 ETF (SPY): ETF Research Reports SPDR Dow Jones Industrial Average ETF (DIA): ETF Research Reports To read this article on Zacks.com click here. | This morning, Q3 U.S. Current Account deficits are out — lower quarter over quarter, as expected, to -$200.3 billion, but still higher than the -$197.5 billion expected. As a result, shares are selling off -4% in today’s pre-market, adding to the pain of -20% returns year to date, basically a mirror image of the S&P’s +24%. For more of GIS’ earnings, click here. | a06ceb05-bb59-47b5-b3f6-e9c836e517ba |
710348.0 | 2023-12-16 23:00:00 UTC | S&P 500 Movers: FDX, GOOGL | DCOMP | https://www.nasdaq.com/articles/sp-500-movers%3A-fdx-googl | nan | nan | In early trading on Wednesday, shares of Alphabet topped the list of the day's best performing components of the S&P 500 index, trading up 2.3%. Year to date, Alphabet registers a 58.4% gain.
And the worst performing S&P 500 component thus far on the day is FedEx, trading down 10.2%. FedEx is showing a gain of 45.2% looking at the year to date performance.
One other component making moves today is AON, trading down 8.2% on the day.
VIDEO: S&P 500 Movers: FDX, GOOGL
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | And the worst performing S&P 500 component thus far on the day is FedEx, trading down 10.2%. FedEx is showing a gain of 45.2% looking at the year to date performance. One other component making moves today is AON, trading down 8.2% on the day. | In early trading on Wednesday, shares of Alphabet topped the list of the day's best performing components of the S&P 500 index, trading up 2.3%. Year to date, Alphabet registers a 58.4% gain. And the worst performing S&P 500 component thus far on the day is FedEx, trading down 10.2%. | In early trading on Wednesday, shares of Alphabet topped the list of the day's best performing components of the S&P 500 index, trading up 2.3%. And the worst performing S&P 500 component thus far on the day is FedEx, trading down 10.2%. VIDEO: S&P 500 Movers: FDX, GOOGL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | And the worst performing S&P 500 component thus far on the day is FedEx, trading down 10.2%. FedEx is showing a gain of 45.2% looking at the year to date performance. VIDEO: S&P 500 Movers: FDX, GOOGL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | 9006cca9-44d9-4a66-ba50-42f343ae2773 |
710349.0 | 2023-12-16 23:00:00 UTC | Ansys (ANSS) & BMW Partner to Launch AVxcelerate Autonomy | DCOMP | https://www.nasdaq.com/articles/ansys-anss-bmw-partner-to-launch-avxcelerate-autonomy | nan | nan | Ansys ANSS has launched a cloud-native system developed with BMW Group — AVxcelerate Autonomy. This technology significantly cuts costs and time-to-compliance for advanced driver assistance systems and autonomous vehicle (AV) compliance.
The technology will assist BMW in safety validation for autonomous vehicles through features like extensive virtual testing that simulate real-world scenarios. It uses a powerful cloud-optimized exploration algorithm that significantly accelerates sensitivity analyses compared to traditional methods.
Furthermore, the AVxcelerate Autonomy also replaces physical tests with virtual simulations, which, in turn, significantly reduces development time and offers a substantial cost and time reduction for compliance.
ANSYS, Inc. Price and Consensus
ANSYS, Inc. price-consensus-chart | ANSYS, Inc. Quote
The technology is designed around an MBSE framework and follows the Association for Standardization of Automation and Measuring Systems openX standards. AVxcelerate Autonomy is likely to receive ISO 26262 certification, enabling workflows for L3 and above certification.
Per a report from Mordor Intelligence, the electromagnetic simulation software market size is estimated at $1.24 billion in 2023 and is expected to reach $2.01 billion by 2028, witnessing a CAGR of 10.14% from 2023 to 2028.
Ansys develops and globally markets engineering simulation software and services widely used by engineers, designers, researchers and students across a spectrum of industries and academia.
In November, the company announced that its simulation solutions are being leveraged by a leading nuclear technology company — NuScale Power. Ansys will help NuScale Power develop the NPM, which is the first small modular reactor approved by the U.S. Nuclear Regulatory Commission.
Prior to that, the company announced that its simulation solutions are being leveraged by uPI Semiconductor Corp to enhance the efficiency of its product packaging processes and achieve a two-fold improvement in thermal reliability.
ANSS now projects 2023 non-GAAP revenues in the range of $2,234-$2,284 million compared with the earlier prediction of $2,257-$2,327 million. Management expects non-GAAP operating margin between 41% and 42%.
Non-GAAP earnings per share (EPS) are anticipated to be in the range of $8.34-$8.75 compared with the previous guidance of $8.39-$8.88.
ANSS currently carries a Zacks Rank #3 (Hold). Shares of ANSYS have gained 23.3% in the past year compared with the sub-industry’s growth of 52.5%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks in the broader technology space are Pegasystems PEGA, Flex FLEX and Watts Water Technologies WTS. Pegasystems and Flex presently sport a Zacks Rank #1 (Strong Buy), whereas Watts Water Technologies carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Pegasystems’ 2023 EPS has improved 21.2% in the past 60 days to $1.77. PEGA delivered an average earnings surprise of 1,250.2% in the trailing four quarters. Shares of PEGA have soared 50.2% in the past year.
The Zacks Consensus Estimate for Flex’s fiscal 2024 EPS has increased 3.6% in the past 60 days to $2.56. Flex’s long-term earnings growth rate is 12.4%.
Flex’s earnings outpaced the Zacks Consensus Estimate in each of the last four quarters, the average earnings surprise being 11%. Shares of the company have risen 20% in the past year.
The Zacks Consensus Estimate for Watts Water Technologies 2023 EPS has improved 3.9% in the past 60 days to $8.08. Watts Water’s long-term earnings growth rate is 7.8%.
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
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Flex Ltd. (FLEX) : Free Stock Analysis Report
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To read this article on Zacks.com click here.
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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. | This technology significantly cuts costs and time-to-compliance for advanced driver assistance systems and autonomous vehicle (AV) compliance. The technology will assist BMW in safety validation for autonomous vehicles through features like extensive virtual testing that simulate real-world scenarios. Prior to that, the company announced that its simulation solutions are being leveraged by uPI Semiconductor Corp to enhance the efficiency of its product packaging processes and achieve a two-fold improvement in thermal reliability. | Pegasystems and Flex presently sport a Zacks Rank #1 (Strong Buy), whereas Watts Water Technologies carries a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for Watts Water Technologies 2023 EPS has improved 3.9% in the past 60 days to $8.08. Click to get this free report Flex Ltd. (FLEX) : Free Stock Analysis Report Watts Water Technologies, Inc. (WTS) : Free Stock Analysis Report ANSYS, Inc. (ANSS) : Free Stock Analysis Report Pegasystems Inc. (PEGA) : Free Stock Analysis Report To read this article on Zacks.com click here. | Image Source: Zacks Investment Research Stocks to Consider Some better-ranked stocks in the broader technology space are Pegasystems PEGA, Flex FLEX and Watts Water Technologies WTS. Pegasystems and Flex presently sport a Zacks Rank #1 (Strong Buy), whereas Watts Water Technologies carries a Zacks Rank #2 (Buy). Click to get this free report Flex Ltd. (FLEX) : Free Stock Analysis Report Watts Water Technologies, Inc. (WTS) : Free Stock Analysis Report ANSYS, Inc. (ANSS) : Free Stock Analysis Report Pegasystems Inc. (PEGA) : Free Stock Analysis Report To read this article on Zacks.com click here. | Ansys ANSS has launched a cloud-native system developed with BMW Group — AVxcelerate Autonomy. In November, the company announced that its simulation solutions are being leveraged by a leading nuclear technology company — NuScale Power. Non-GAAP earnings per share (EPS) are anticipated to be in the range of $8.34-$8.75 compared with the previous guidance of $8.39-$8.88. | e8d48a32-965e-4507-b7ad-e0007f51ed93 |
710350.0 | 2023-12-16 23:00:00 UTC | Should You Retain Digital Realty (DLR) Stock in Your Portfolio? | DCOMP | https://www.nasdaq.com/articles/should-you-retain-digital-realty-dlr-stock-in-your-portfolio-0 | nan | nan | Digital Realty’s DLR portfolio of data centers, located all over North America, Europe, South America, Asia, Australia and Africa, is well-positioned to benefit from the growing reliance on technology and an acceleration in digital transformation strategies by enterprises.
High growth in cloud computing, the Internet of Things and big data and the elevated demand for third-party IT infrastructure are spurring the demand for data center infrastructure. Growth in the artificial intelligence, autonomous vehicles and virtual/augmented reality markets is anticipated to be robust in the upcoming years. With superior assets, DLR is likely to capitalize on this upbeat trend, which will aid its long-term growth.
Demand is strong in top-tier data center markets, and despite enjoying high occupancy, these markets are absorbing new construction at a faster pace. In uncertain periods, with a more resilient and predictable stream of earnings compared with other asset categories, data centers are likely to gain preference among investors.
Digital Realty is making efforts to enhance its portfolio by carrying out various development and redevelopment activities. The company has a robust development pipeline, which seems encouraging. As of Sep 30, 2023, it had 9.2 million square feet of space under active development and 3.9 million square feet of space held for future development. For 2023, the company expects to incur capital expenditures for its development activities in the range of $2.7-$3.2 billion, up from $2.3-$2.5 billion estimated earlier.
Moreover, in early December 2023, Digital Realty entered into a groundbreaking JV with Blackstone Inc., a global alternative asset manager. The $7 billion venture aims to develop four hyperscale data center campuses across Frankfurt, Paris and Northern Virginia, supporting approximately 500 megawatts of total IT load upon full build-out. The four campuses are slated to host 10 data centers.
Further, the company’s capital-recycling efforts are likely to drive long-term growth while preserving its financial flexibility. As of the end of the third quarter of 2023, it completed $2.5 billion of capital recycling transactions, bolstering and diversifying its sources of capital and improving its balance sheet. For 2023, it expects to carry out dispositions in the range of $2.7-$3.2 billion, up from its earlier guided range of $2.2-$3 billion.
Digital Realty focuses on maintaining a solid balance sheet and has ample liquidity with diversified sources of capital. As a result of its proactive balance sheet management, the company exited the third quarter of 2023 with cash and cash equivalents of $1.06 billion.
Its debt maturity schedule is well-laddered, with a weighted average maturity to initial maturity of 4.6 years and a 2.9% weighted average coupon as of Sep 30, 2023. Its net debt-to-adjusted EBITDA was 6.3X, while its fixed charge coverage was 4.1X as of the end of the third quarter of 2023. With proceeds from asset sales and growth in cash flows as the signed leases commence, the company is expected to experience an improvement in net debt-to-adjusted EBITDA.
Solid dividend payouts are the biggest enticements for REIT shareholders, and Digital Realty remains committed to that. The company has increased its dividend four times in the last five years, and the five-year annualized dividend growth rate is 3.69%. Moreover, its dividend witnessed a CAGR of 10% over the 2005-2022 period. Given its solid operating platform and balance-sheet management efforts, the company remains well-poised to sustain the dividend payment.
Shares of this Zacks Rank #3 (Hold) company have rallied 28.9% in the past six months, outperforming the industry’s increase of 8.7%.
Image Source: Zacks Investment Research
However, Digital Realty faces stiff competition in its industry. Given the solid growth potential of the data center real estate market, competition is expected to increase in the upcoming period from existing players and the entry of new players. Amid this, there is likely to be aggressive pricing pressure in the data center market.
A high interest rate environment is a concern for Digital Realty. Elevated rates imply high borrowing costs for the company, affecting its ability to purchase or develop real estate. DLR has a substantial debt burden, and its total consolidated debt as of Sep 30, 2023 was $16.9 billion. Further, with high interest rates in place, the dividend payout might seem less attractive than the yields on fixed-income and money-market accounts.
Stocks to Consider
Some better-ranked stocks from the REIT sector are Lamar Advertising Company LAMR and STAG Industrial, Inc. STAG, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Lamar’s current-year FFO per share has been revised 1.7% upward over the past two months to $7.31.
The Zacks Consensus Estimate for STAG Industrial’s 2023 FFO per share has moved marginally upward in the past two months to $2.28 and indicates an estimated increase of 3.2% year over year.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
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Lamar Advertising Company (LAMR) : Free Stock Analysis Report
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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. | In uncertain periods, with a more resilient and predictable stream of earnings compared with other asset categories, data centers are likely to gain preference among investors. The $7 billion venture aims to develop four hyperscale data center campuses across Frankfurt, Paris and Northern Virginia, supporting approximately 500 megawatts of total IT load upon full build-out. With proceeds from asset sales and growth in cash flows as the signed leases commence, the company is expected to experience an improvement in net debt-to-adjusted EBITDA. | Given the solid growth potential of the data center real estate market, competition is expected to increase in the upcoming period from existing players and the entry of new players. Stocks to Consider Some better-ranked stocks from the REIT sector are Lamar Advertising Company LAMR and STAG Industrial, Inc. STAG, each carrying a Zacks Rank #2 (Buy) at present. Click to get this free report Lamar Advertising Company (LAMR) : Free Stock Analysis Report Digital Realty Trust, Inc. (DLR) : Free Stock Analysis Report Stag Industrial, Inc. (STAG) : Free Stock Analysis Report To read this article on Zacks.com click here. | For 2023, the company expects to incur capital expenditures for its development activities in the range of $2.7-$3.2 billion, up from $2.3-$2.5 billion estimated earlier. Stocks to Consider Some better-ranked stocks from the REIT sector are Lamar Advertising Company LAMR and STAG Industrial, Inc. STAG, each carrying a Zacks Rank #2 (Buy) at present. Click to get this free report Lamar Advertising Company (LAMR) : Free Stock Analysis Report Digital Realty Trust, Inc. (DLR) : Free Stock Analysis Report Stag Industrial, Inc. (STAG) : Free Stock Analysis Report To read this article on Zacks.com click here. | For 2023, the company expects to incur capital expenditures for its development activities in the range of $2.7-$3.2 billion, up from $2.3-$2.5 billion estimated earlier. The company has increased its dividend four times in the last five years, and the five-year annualized dividend growth rate is 3.69%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. | 6cdca92e-6f49-4d53-a8b3-3db05b86b4dc |
710351.0 | 2023-12-16 23:00:00 UTC | Nasdaq 100 Movers: DXCM, SIRI | DCOMP | https://www.nasdaq.com/articles/nasdaq-100-movers%3A-dxcm-siri-0 | nan | nan | In early trading on Wednesday, shares of Sirius XM Holdings topped the list of the day's best performing components of the Nasdaq 100 index, trading up 2.5%. Year to date, Sirius XM Holdings has lost about 4.4% of its value.
And the worst performing Nasdaq 100 component thus far on the day is DexCom, trading down 4.3%. DexCom is showing a gain of 4.2% looking at the year to date performance.
Two other components making moves today are Airbnb, trading down 2.2%, and Illumina, trading up 2.3% on the day.
VIDEO: Nasdaq 100 Movers: DXCM, SIRI
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In early trading on Wednesday, shares of Sirius XM Holdings topped the list of the day's best performing components of the Nasdaq 100 index, trading up 2.5%. And the worst performing Nasdaq 100 component thus far on the day is DexCom, trading down 4.3%. VIDEO: Nasdaq 100 Movers: DXCM, SIRI The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In early trading on Wednesday, shares of Sirius XM Holdings topped the list of the day's best performing components of the Nasdaq 100 index, trading up 2.5%. Year to date, Sirius XM Holdings has lost about 4.4% of its value. And the worst performing Nasdaq 100 component thus far on the day is DexCom, trading down 4.3%. | In early trading on Wednesday, shares of Sirius XM Holdings topped the list of the day's best performing components of the Nasdaq 100 index, trading up 2.5%. And the worst performing Nasdaq 100 component thus far on the day is DexCom, trading down 4.3%. Two other components making moves today are Airbnb, trading down 2.2%, and Illumina, trading up 2.3% on the day. | In early trading on Wednesday, shares of Sirius XM Holdings topped the list of the day's best performing components of the Nasdaq 100 index, trading up 2.5%. And the worst performing Nasdaq 100 component thus far on the day is DexCom, trading down 4.3%. VIDEO: Nasdaq 100 Movers: DXCM, SIRI The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | 2efab94d-03a6-47e6-81da-0cb49c588d52 |
710352.0 | 2023-12-16 22:00:00 UTC | Buying Apple Stock in 2024 and Expecting It to 2X by 2029? Here's What Has to Happen | DCOMP | https://www.nasdaq.com/articles/buying-apple-stock-in-2024-and-expecting-it-to-2x-by-2029-heres-what-has-to-happen | nan | nan | Thanks to its outsize business success, Apple (NASDAQ: AAPL) has been a ridiculously fruitful investment. Its shares have soared a jaw-dropping 363% in just the last five years. This leading FAANG stock has handily trounced the market and now sports a market capitalization of over $3 trillion.
Some bullish investors on the sidelines might be looking to buy shares in the new year with the expectation that Apple could double by 2029. This is certainly a lofty projection, but is it a pipe dream? Here's what must happen for this scenario to become a reality.
Accelerating growth
Apple's stellar past returns can mostly be attributed to strong fundamental performance. Looking ahead, there's no doubt the stock will be a winner if the underlying business continues to do well.
Between fiscal 2018 and fiscal 2023 (ended Sept. 30), Apple was able to grow revenue at a compound annual rate of 7.6%, with diluted earnings per share rising at an annualized clip of 15.5%. These impressive gains have helped propel the share price.
Is it likely that Apple will be able to post similar growth going forward? I'm becoming less optimistic. That's because the iPhone, which represents 52% of total revenue, has seen unit volume flatline in recent years. Plus, with new iPhones having fewer updated features, customers could be inclined to hold on to their smartphone devices longer, translating to less frequent upgrades. That's not what Apple's management team likes to see.
Macro headwinds and the law of large numbers might help explain why Apple's fiscal 2023 revenue of $383 billion was down 3% from the previous year. Maybe there just isn't much more room for expansion for a mature, stable, gargantuan enterprise such as this one.
To its credit, Apple has a long, successful history of introducing new hardware products to market. But besides the iPhone, none have really moved the needle from a financial perspective. Should the business introduce a game-changing product, then perhaps growth could accelerate. It's impossible to know whether this will happen.
Astute investors might point to the ascending services segment, which was able to increase sales by 9% in the most recent fiscal year. However, even this division might have limited long-term prospects unless the company can push more of its hardware into the hands of more consumers.
This leads me to believe it's hard to envision a scenario in which Apple continues its past revenue and earnings gains over the next five years. This presents a major headwind to the stock doubling by 2029.
Is the current setup favorable for investors?
But there is one other critical factor that always has a huge impact on investors and their returns. That's the valuation.
As of this writing, Apple's stock trades at a price-to-earnings ratio of about 32. That's expensive, and it's up from a more reasonable 22 at the start of this year. In the trailing-five-year period, the shares have traded at an average P/E multiple of 26, so you can argue that things are pricey right now.
The setup for investors looking to buy Apple in 2024 just isn't very accommodating. At the current valuation, there is above-average optimism priced into the stock. And this doesn't give me confidence that shares will double in the next five years, particularly when you think about the muted growth prospects discussed above.
In fact, I'd say that this outcome of the stock doubling is far more unlikely to happen than it is to occur. I'd even go so far as to say that I wouldn't be surprised if Apple underperforms the S&P 500 between now and 2029. Therefore, it's best for investors seeking market-beating gains to seriously temper their expectations as they relate to Apple.
Should you invest $1,000 in Apple right now?
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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. | Plus, with new iPhones having fewer updated features, customers could be inclined to hold on to their smartphone devices longer, translating to less frequent upgrades. Macro headwinds and the law of large numbers might help explain why Apple's fiscal 2023 revenue of $383 billion was down 3% from the previous year. This leads me to believe it's hard to envision a scenario in which Apple continues its past revenue and earnings gains over the next five years. | Accelerating growth Apple's stellar past returns can mostly be attributed to strong fundamental performance. This leads me to believe it's hard to envision a scenario in which Apple continues its past revenue and earnings gains over the next five years. Before you buy stock in Apple, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Apple wasn't one of them. | Some bullish investors on the sidelines might be looking to buy shares in the new year with the expectation that Apple could double by 2029. Before you buy stock in Apple, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Apple wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Neil Patel and his clients have no position in any of the stocks mentioned. | This leads me to believe it's hard to envision a scenario in which Apple continues its past revenue and earnings gains over the next five years. Before you buy stock in Apple, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Apple wasn't one of them. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*. | a2a6ac79-80e0-4474-b691-5602a2240cba |
710353.0 | 2023-12-16 22:00:00 UTC | Want to Retire a Millionaire? Consider This Artificial Intelligence (AI) Stock | DCOMP | https://www.nasdaq.com/articles/want-to-retire-a-millionaire-consider-this-artificial-intelligence-ai-stock | nan | nan | It's been more than a year since OpenAI launched ChatGPT, and there's still no shortage of hype around artificial intelligence (AI). Big tech companies are racing to deploy their latest foundation models and cloud infrastructure services, and others are scrambling to acquire graphics processing units (GPUs) to scale up to meet demand.
Investors have bid up nearly every stock associated with AI, making it harder to find AI stocks worth buying. However, one small-cap company that is rapidly embracing AI has traveled largely under the radar thus far. That's Perion Network (NASDAQ: PERI), an adtech company that connects ad buyers and sellers across all major digital channels. The company is best known for its intelligent hub, which facilitates both ends of the ad transaction, helping to optimize ad buys and seller inventory, and increase advertisers' return on investment.
Here's a breakdown of what Perion is doing with AI. From there we can determine how the stock could deliver big returns for you. Could it, for example, turn a $100,000 investment into $1 million over time? Here's a closer look.
Image source: Getty Images.
Perion and AI
As is common in the adtech sector, Perion's technology is built on machine learning algorithms and other forms of AI; the company says it uses advanced AI, neural networks, and machine learning to optimize yield for its users.
Advertising is a natural use case for AI as there are millions of data points generated by ad impressions, clicks, and purchases, and AI systems can process those massive volumes of data and make connections in a way that a human never could. Perion's partnership with Microsoft Bing gives it additional exposure to AI as Microsoft has integrated a number of ChatGPT's capabilities into Bing over the past year.
The adtech company has also developed new generative AI technologies. For example, it recently launched WAVE (Waveform Audio Voice Engine), a new generative AI audio technology that is able to generate hundreds of thousands of highly targeted audio ads using retail data about products and promotions.
With WAVE, retailers don't need to use a human actor to record a radio or podcast spot, and they can rapidly deploy and customize ads according to changing conditions like weather or the time of day, or adapt them to the listener.
Supermarket chain giant Albertson's, the first adopter of the new technology, said it was "blown away" by how real the AI voice sounded. WAVE could help Perion win a significant piece of the digital audio ad market, which is valued at close to $7 billion and expected to grow to nearly $10 billion by 2027.
How Perion could make you a millionaire
Perion is growing rapidly, with revenue up 17% in its most recent quarter to $185.3 million. Its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 29% year over year to $42.7 million.
Perion's growth has outpaced that of its industry over the last few years as it has invested in new solutions like SORT, its cookieless tracking solution, and it has grown both organically and through acquisitions.
In fact, the company just bought Hivestack, a digital out-of-home (DOOH) advertising platform, for $100 million. DOOH refers to digital billboards and other digitally enabled outdoor media such as ads on bus stop shelters or on top of taxis. That market is just beginning to see significant growth, and the Hivestack acquisition will help Perion diversify its offerings.
Perion is still small, with a market cap of $1.5 billion, giving it significant growth potential, and the stock is cheap, trading at a price-to-earnings ratio of 14. Wall Street seems skeptical that Perion will be able to maintain its recent growth rates, but that gives the stock more upside potential as it benefits from multiple expansion as well as growth. With new AI products like WAVE and a proven acquisition strategy, Perion could evolve into a much bigger company than it is today.
For Perion to become a ten-bagger, its market cap would have to grow from $1.5 billion to $15 billion, which seems achievable, considering the growth in digital advertising, emerging markets and ad surfaces, and the company's track record of growing organically and through acquisitions. By comparison, The Trade Desk, which is the most valuable pure-play adtech stock, is currently worth $37 billion and has a P/E ratio around 60, yet its revenue growth has been similar to Perion over the last three years as the chart below shows.
PERI Revenue (Quarterly YoY Growth) data by YCharts
Given the factors above, it seems within reach for Perion's revenue and profits to 5x over the next decade, which would imply a compound annual growth rate of 18%, and for Perion's earnings multiple to double from 14 as it shows its staying power. That would make the stock a ten-bagger in the next decade, turning $100,000 into $1 million.
You're better off diversifying your portfolio across multiple stocks than investing $100,000 in a single stock, but if you're looking for an AI stock that can help make you a millionaire and offers growth, innovation, and profits, all at a great price, Perion should be at the top of your list.
Should you invest $1,000 in Perion Network right now?
Before you buy stock in Perion Network, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Perion Network wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
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Jeremy Bowman has positions in Perion Network and The Trade Desk. The Motley Fool has positions in and recommends The Trade Desk. 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. | Big tech companies are racing to deploy their latest foundation models and cloud infrastructure services, and others are scrambling to acquire graphics processing units (GPUs) to scale up to meet demand. With WAVE, retailers don't need to use a human actor to record a radio or podcast spot, and they can rapidly deploy and customize ads according to changing conditions like weather or the time of day, or adapt them to the listener. By comparison, The Trade Desk, which is the most valuable pure-play adtech stock, is currently worth $37 billion and has a P/E ratio around 60, yet its revenue growth has been similar to Perion over the last three years as the chart below shows. | For example, it recently launched WAVE (Waveform Audio Voice Engine), a new generative AI audio technology that is able to generate hundreds of thousands of highly targeted audio ads using retail data about products and promotions. For Perion to become a ten-bagger, its market cap would have to grow from $1.5 billion to $15 billion, which seems achievable, considering the growth in digital advertising, emerging markets and ad surfaces, and the company's track record of growing organically and through acquisitions. Before you buy stock in Perion Network, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Perion Network wasn't one of them. | Perion and AI As is common in the adtech sector, Perion's technology is built on machine learning algorithms and other forms of AI; the company says it uses advanced AI, neural networks, and machine learning to optimize yield for its users. You're better off diversifying your portfolio across multiple stocks than investing $100,000 in a single stock, but if you're looking for an AI stock that can help make you a millionaire and offers growth, innovation, and profits, all at a great price, Perion should be at the top of your list. Before you buy stock in Perion Network, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Perion Network wasn't one of them. | How Perion could make you a millionaire Perion is growing rapidly, with revenue up 17% in its most recent quarter to $185.3 million. Before you buy stock in Perion Network, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Perion Network wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Jeremy Bowman has positions in Perion Network and The Trade Desk. | b09bcd14-1751-4d71-9445-023bcc7b52ad |
710354.0 | 2023-12-16 22:00:00 UTC | Best Momentum Stocks to Buy for December 20th | DCOMP | https://www.nasdaq.com/articles/best-momentum-stocks-to-buy-for-december-20th-1 | nan | nan | Here are three stocks with buy rank and strong momentum characteristics for investors to consider today, December 20:
Stewart Information Services Corporation STC: This company which provides title insurance and real estate transaction related services has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 29% over the last 60 days.
Stewart Information Services Corporation Price and Consensus
Stewart Information Services Corporation price-consensus-chart | Stewart Information Services Corporation Quote
Stewart's shares gained 28.4% over the last three months compared with the S&P 500’s advance of 9.0%. The company possesses a Momentum Score of A.
Stewart Information Services Corporation Price
Stewart Information Services Corporation price | Stewart Information Services Corporation Quote
Clear Secure, Inc. YOU: This identity platform provider has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 26.2% over the last 60 days.
CLEAR Secure, Inc. Price and Consensus
CLEAR Secure, Inc. price-consensus-chart | CLEAR Secure, Inc. Quote
Clear Secure's shares gained 19.1% over the last three months compared with the S&P 500’s advance of 9.0%. The company possesses a Momentum Score of B.
CLEAR Secure, Inc. Price
CLEAR Secure, Inc. price | CLEAR Secure, Inc. Quote
MINISO Group Holding Limited MNSO: This investment holding company has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 9.8% over the last 60 days.
MINISO Group Holding Limited Unsponsored ADR Price and Consensus
MINISO Group Holding Limited Unsponsored ADR price-consensus-chart | MINISO Group Holding Limited Unsponsored ADR Quote
MINISO's shares gained 24.5% over the last six months compared with the S&P 500’s advance of 8.0%. The company possesses a Momentum Score of A.
MINISO Group Holding Limited Unsponsored ADR Price
MINISO Group Holding Limited Unsponsored ADR price | MINISO Group Holding Limited Unsponsored ADR Quote
See the full list of top ranked stocks here
Learn more about the Momentum score and how it is calculated here.
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
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Stewart Information Services Corporation (STC) : Free Stock Analysis Report
MINISO Group Holding Limited Unsponsored ADR (MNSO) : Free Stock Analysis Report
CLEAR Secure, Inc. (YOU) : 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. | Here are three stocks with buy rank and strong momentum characteristics for investors to consider today, December 20: Stewart Information Services Corporation STC: This company which provides title insurance and real estate transaction related services has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 29% over the last 60 days. The company possesses a Momentum Score of A. MINISO Group Holding Limited Unsponsored ADR Price MINISO Group Holding Limited Unsponsored ADR price | MINISO Group Holding Limited Unsponsored ADR Quote See the full list of top ranked stocks here Learn more about the Momentum score and how it is calculated here. From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. | MINISO Group Holding Limited Unsponsored ADR Price and Consensus MINISO Group Holding Limited Unsponsored ADR price-consensus-chart | MINISO Group Holding Limited Unsponsored ADR Quote MINISO's shares gained 24.5% over the last six months compared with the S&P 500’s advance of 8.0%. The company possesses a Momentum Score of A. MINISO Group Holding Limited Unsponsored ADR Price MINISO Group Holding Limited Unsponsored ADR price | MINISO Group Holding Limited Unsponsored ADR Quote See the full list of top ranked stocks here Learn more about the Momentum score and how it is calculated here. Click to get this free report Stewart Information Services Corporation (STC) : Free Stock Analysis Report MINISO Group Holding Limited Unsponsored ADR (MNSO) : Free Stock Analysis Report CLEAR Secure, Inc. (YOU) : Free Stock Analysis Report To read this article on Zacks.com click here. | The company possesses a Momentum Score of A. Stewart Information Services Corporation Price Stewart Information Services Corporation price | Stewart Information Services Corporation Quote Clear Secure, Inc. YOU: This identity platform provider has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 26.2% over the last 60 days. CLEAR Secure, Inc. Price CLEAR Secure, Inc. price | CLEAR Secure, Inc. Quote MINISO Group Holding Limited MNSO: This investment holding company has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 9.8% over the last 60 days. The company possesses a Momentum Score of A. MINISO Group Holding Limited Unsponsored ADR Price MINISO Group Holding Limited Unsponsored ADR price | MINISO Group Holding Limited Unsponsored ADR Quote See the full list of top ranked stocks here Learn more about the Momentum score and how it is calculated here. | The company possesses a Momentum Score of A. Stewart Information Services Corporation Price Stewart Information Services Corporation price | Stewart Information Services Corporation Quote Clear Secure, Inc. YOU: This identity platform provider has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 26.2% over the last 60 days. CLEAR Secure, Inc. Price CLEAR Secure, Inc. price | CLEAR Secure, Inc. Quote MINISO Group Holding Limited MNSO: This investment holding company has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 9.8% over the last 60 days. Be First to New Top 10 Stocks >> Want the latest recommendations from Zacks Investment Research? | c75ce2e1-2087-49b3-b8e6-0e17ecad6f28 |
710355.0 | 2023-12-16 22:00:00 UTC | Telefonica (TEF) Secures $2.2B for Spain Government's Buyout | DCOMP | https://www.nasdaq.com/articles/telefonica-tef-secures-%242.2b-for-spain-governments-buyout | nan | nan | Telefonica TEF is reportedly receiving a significant investment worth $2.20 billion from the government of Spain through the state-holding company — SEPI. The government will acquire a stake of up to 10% in Telefonica, per a report from Reuters.
The report further added that the acquisition will be done gradually over a period of up to two months, financed through public debt issuance. The market value of a 10% stake is approximately €2 billion, which is equivalent to $2.20 billion.
The participation of SEPI will likely provide Telefonica with greater shareholding stability and safeguard its strategic capabilities. The government of Spain’s presence as a key public shareholder is expected to reinforce the ownership stability of Telefonica.
Telefonica SA Price and Consensus
Telefonica SA price-consensus-chart | Telefonica SA Quote
Telefonica stated that it remains focused on executing its previously announced strategic plan for the next three years. Per the plan, the company aims to increase shareholder value by paying a minimum dividend of €0.30 per share from 2023 through 2026.
The current investment aims to counterbalance the large stake in Telefonica obtained by Saudi Arabia's STC in September. STC acquired a substantial 9.9% stake in Telefonica for €2.1 billion, which is equivalent to $2.25 billion.
The substantial stake comprises 4.9% of the company’s shares, with an additional 5% of economic exposure through financial instruments. STC's plan includes seeking regulatory approval to secure voting rights for this 5% interest held through these financial instruments.
However, the government of Spain has not yet received a request from STC to obtain authorization for exercising the voting rights associated with the financial instruments, added the report.
Telefonica provides mobile and fixed communication services in Europe and Latin America. The company is focusing on divesting stakes in more mature businesses to finance its 5G and optic fiber initiatives to tackle profitability challenges caused by intense competition and the substantial investments needed for next-generation mobile technology infrastructure.
TEF currently carries a Zacks Rank #3 (Hold). Shares of the company have gained 17.6% compared with sub-industry’s growth of 3.2% in the past year.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks in the broader technology space are Pegasystems PEGA, Flex FLEX and Watts Water Technologies WTS. Pegasystems and Flex presently sport a Zacks Rank #1 (Strong Buy), whereas Watts Water Technologies carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Pegasystems’ 2023 EPS has improved 21.2% in the past 60 days to $1.77. PEGA delivered an average earnings surprise of 1,250.2% in the trailing four quarters. Shares of PEGA have soared 51% in the past year.
The Zacks Consensus Estimate for Flex’s fiscal 2024 EPS has increased 3.6% in the past 60 days to $2.56. Flex’s long-term earnings growth rate is 12.4%.
Flex’s earnings outpaced the Zacks Consensus Estimate in each of the last four quarters, the average earnings surprise being 11%. Shares of the company have risen 19.8% in the past year.
The Zacks Consensus Estimate for Watts Water Technologies 2023 EPS has improved 3.9% in the past 60 days to $8.08. Watts Water’s long-term earnings growth rate is 7.8%.
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
Be First to New Top 10 Stocks >>
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Telefonica SA (TEF) : Free Stock Analysis Report
Flex Ltd. (FLEX) : Free Stock Analysis Report
Watts Water Technologies, Inc. (WTS) : Free Stock Analysis Report
Pegasystems Inc. (PEGA) : 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. | Telefonica TEF is reportedly receiving a significant investment worth $2.20 billion from the government of Spain through the state-holding company — SEPI. However, the government of Spain has not yet received a request from STC to obtain authorization for exercising the voting rights associated with the financial instruments, added the report. The company is focusing on divesting stakes in more mature businesses to finance its 5G and optic fiber initiatives to tackle profitability challenges caused by intense competition and the substantial investments needed for next-generation mobile technology infrastructure. | Pegasystems and Flex presently sport a Zacks Rank #1 (Strong Buy), whereas Watts Water Technologies carries a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for Watts Water Technologies 2023 EPS has improved 3.9% in the past 60 days to $8.08. Click to get this free report Telefonica SA (TEF) : Free Stock Analysis Report Flex Ltd. (FLEX) : Free Stock Analysis Report Watts Water Technologies, Inc. (WTS) : Free Stock Analysis Report Pegasystems Inc. (PEGA) : Free Stock Analysis Report To read this article on Zacks.com click here. | Telefonica SA Price and Consensus Telefonica SA price-consensus-chart | Telefonica SA Quote Telefonica stated that it remains focused on executing its previously announced strategic plan for the next three years. Image Source: Zacks Investment Research Stocks to Consider Some better-ranked stocks in the broader technology space are Pegasystems PEGA, Flex FLEX and Watts Water Technologies WTS. Click to get this free report Telefonica SA (TEF) : Free Stock Analysis Report Flex Ltd. (FLEX) : Free Stock Analysis Report Watts Water Technologies, Inc. (WTS) : Free Stock Analysis Report Pegasystems Inc. (PEGA) : Free Stock Analysis Report To read this article on Zacks.com click here. | Telefonica TEF is reportedly receiving a significant investment worth $2.20 billion from the government of Spain through the state-holding company — SEPI. The substantial stake comprises 4.9% of the company’s shares, with an additional 5% of economic exposure through financial instruments. However, the government of Spain has not yet received a request from STC to obtain authorization for exercising the voting rights associated with the financial instruments, added the report. | d792731d-0564-408e-88ff-e926f39b6999 |
710356.0 | 2023-12-16 22:00:00 UTC | Fidelity's (FIS) Worldpay to Provide Omnichannel Solutions to HMV | DCOMP | https://www.nasdaq.com/articles/fidelitys-fis-worldpay-to-provide-omnichannel-solutions-to-hmv | nan | nan | Fidelity National Information Services, Inc. FIS recently announced that its Worldpay business inked a deal to expand its partnership with HMV. FIS will aid HMV, a British entertainment and music merchant, to expand its footprint in Europe with its omnichannel solutions.
Worldpay and FreedomPay have jointly developed an omnichannel strategy, Worldpay Omnichannel, which will allow merchants to traverse boundaries and serve customers with their preferred payment methods. The Next Level Retail Report, by FreedomPay and Worldpay, highlights that in the past 12 months, almost half of the customers have used three plus shopping channels to buy something. The changing landscape of customer preferences makes an omnichannel strategy inevitable for merchants. The demand for Worldpay’s services should further boost FIS earnings in the future.
Fidelity also partnered with Alchemy Pay on Dec 19, 2023, improving efficiency and enhancing customer experience throughout the buying and selling process of cryptocurrency. WorldPay would allow access to its Mastercard and Visa payment rails to Alchemy. This move bodes well for FIS as it aims to bridge the gap between traditional and digital assets, being optimistic about the rise of cryptocurrency adoption in the future.
A bold move highlighting FIS’s foresight was the divestment of a majority stake in its Worldpay Merchant Solutions to GTCR, which is expected to close by the first quarter of 2024. Partnerships with merchants should boost Worldpay’s business, positively impacting FIS’s results. Fidelity is expected to report earnings from its Worldpay business as income from a minority interest in its income statement. The company is likely to gain from the equity stake in Worldpay, along with cash influx from its majority stake sale, acting as a win-win situation for Fidelity.
Price Performance
Shares of Fidelity have gained 11.7% in the past six months compared with the 11.6% rise of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Fidelity currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Business Services space are FirstCash Holdings, Inc. FCFS, Shift4 Payments, Inc. FOUR and RB Global, Inc. RBA. While FirstCash and Shift4 Payments currently sport a Zacks Rank #1 (Strong Buy), RB Global carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for FirstCash’s current-year bottom line indicates 13.1% year-over-year growth. Headquartered in Fort Worth, TX, FCFS beat earnings estimates in all the past four quarters, with an average surprise of 7.9%.
The Zacks Consensus Estimate for Shift4 Payments’ current-year earnings is pegged at $2.92 per share, which indicates 110.1% year-over-year growth. Allentown, PA-based FOUR beat earnings estimates in all the past four quarters, with an average surprise of 25%.
The Zacks Consensus Estimate for RB Global’s current-year bottom line suggests 15.4% year-over-year growth. Based in Westchester, IL, RBA beat earnings estimates in each of the past four quarters, with an average surprise of 18.9%.
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
Be First to New Top 10 Stocks >>
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
Fidelity National Information Services, Inc. (FIS) : Free Stock Analysis Report
FirstCash Holdings, Inc. (FCFS) : Free Stock Analysis Report
RB Global, Inc. (RBA) : Free Stock Analysis Report
Shift4 Payments, Inc. (FOUR) : 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. | Fidelity National Information Services, Inc. FIS recently announced that its Worldpay business inked a deal to expand its partnership with HMV. This move bodes well for FIS as it aims to bridge the gap between traditional and digital assets, being optimistic about the rise of cryptocurrency adoption in the future. A bold move highlighting FIS’s foresight was the divestment of a majority stake in its Worldpay Merchant Solutions to GTCR, which is expected to close by the first quarter of 2024. | Image Source: Zacks Investment Research Zacks Rank & Key Picks Fidelity currently has a Zacks Rank #3 (Hold). The Zacks Consensus Estimate for RB Global’s current-year bottom line suggests 15.4% year-over-year growth. Click to get this free report Fidelity National Information Services, Inc. (FIS) : Free Stock Analysis Report FirstCash Holdings, Inc. (FCFS) : Free Stock Analysis Report RB Global, Inc. (RBA) : Free Stock Analysis Report Shift4 Payments, Inc. (FOUR) : Free Stock Analysis Report To read this article on Zacks.com click here. | Image Source: Zacks Investment Research Zacks Rank & Key Picks Fidelity currently has a Zacks Rank #3 (Hold). While FirstCash and Shift4 Payments currently sport a Zacks Rank #1 (Strong Buy), RB Global carries a Zacks Rank #2 (Buy). Click to get this free report Fidelity National Information Services, Inc. (FIS) : Free Stock Analysis Report FirstCash Holdings, Inc. (FCFS) : Free Stock Analysis Report RB Global, Inc. (RBA) : Free Stock Analysis Report Shift4 Payments, Inc. (FOUR) : Free Stock Analysis Report To read this article on Zacks.com click here. | Image Source: Zacks Investment Research Zacks Rank & Key Picks Fidelity currently has a Zacks Rank #3 (Hold). While FirstCash and Shift4 Payments currently sport a Zacks Rank #1 (Strong Buy), RB Global carries a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for Shift4 Payments’ current-year earnings is pegged at $2.92 per share, which indicates 110.1% year-over-year growth. | a3cb156e-ccbf-4be0-9565-8d826c3455c1 |
710357.0 | 2023-12-16 22:00:00 UTC | Wall Street Analysts Predict a 62.4% Upside in REE Automotive Ltd. (REE): Here's What You Should Know | DCOMP | https://www.nasdaq.com/articles/wall-street-analysts-predict-a-62.4-upside-in-ree-automotive-ltd.-ree%3A-heres-what-you | nan | nan | REE Automotive Ltd. (REE) closed the last trading session at $5.16, gaining 9.1% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $8.38 indicates a 62.4% upside potential.
The mean estimate comprises four short-term price targets with a standard deviation of $6.55. While the lowest estimate of $4 indicates a 22.5% decline from the current price level, the most optimistic analyst expects the stock to surge 248.8% to reach $18. It's very important to note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.
While the consensus price target is highly sought after by investors, the ability and unbiasedness of analysts in setting price targets have long been questionable. And investors making investment decisions solely based on this tool would arguably do themselves a disservice.
However, an impressive consensus price target is not the only factor that indicates a potential upside in REE. This view is strengthened by the agreement among analysts that the company will report better earnings than what they estimated earlier. Though a positive trend in earnings estimate revisions doesn't give any idea as to how much the stock could surge, it has proven effective in predicting an upside.
Here's What You May Not Know About Analysts' Price Targets
According to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.
While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?
They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.
However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.
That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.
Here's Why There Could be Plenty of Upside Left in REE
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason to expect an upside in the stock. That's because empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Over the last 30 days, the Zacks Consensus Estimate for the current year has increased 15.5%, as one estimate has moved higher compared to no negative revision.
Moreover, REE currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than the 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, while the consensus price target may not be a reliable indicator of how much REE could gain, the direction of price movement it implies does appear to be a good guide.
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
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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. | Though a positive trend in earnings estimate revisions doesn't give any idea as to how much the stock could surge, it has proven effective in predicting an upside. While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces. | REE Automotive Ltd. (REE) closed the last trading session at $5.16, gaining 9.1% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. That's because empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Click to get this free report REE Automotive Ltd. (REE) : Free Stock Analysis Report To read this article on Zacks.com click here. | Here's What You May Not Know About Analysts' Price Targets According to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Therefore, while the consensus price target may not be a reliable indicator of how much REE could gain, the direction of price movement it implies does appear to be a good guide. | The mean price target of $8.38 indicates a 62.4% upside potential. While the consensus price target is highly sought after by investors, the ability and unbiasedness of analysts in setting price targets have long been questionable. However, an impressive consensus price target is not the only factor that indicates a potential upside in REE. | 67d55b1b-6e43-4179-b5c7-92ffe6707573 |
710358.0 | 2023-12-16 22:00:00 UTC | 3 Reasons to Add HealthEquity (HQY) Stock to Your Portfolio | DCOMP | https://www.nasdaq.com/articles/3-reasons-to-add-healthequity-hqy-stock-to-your-portfolio | nan | nan | HealthEquity, Inc. HQY has been gaining from its unique investment platform. The optimism led by a solid third-quarter fiscal 2024 performance and strength in Health Savings Accounts (HSA) are expected to contribute further. However, data security issues and the possibility that integration of acquisitions may be unsuccessful are major downsides.
Over the past year, the Zacks Rank #2 (Buy) stock has gained 3.9% against the 7.9% decline of the industry. The S&P 500 has witnessed 22.8% growth in the said time frame.
The renowned provider of technology-enabled services platforms for healthcare savings and spending decisions has a market capitalization of $5.51 billion. The company projects 27.5% growth for the next five years and expects to witness continued improvements in its business. HealthEquity’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average earnings surprise being 16.5%.
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Let’s delve deeper.
Unique Investment Platform: We are optimistic about HealthEquity’s multiple cloud-based platforms, which are accessed by its members online via a desktop or mobile device. Individuals can make health-saving and spending decisions and pay healthcare bills, among other activities, via these platforms. These platforms provide users access to services HealthEquity provides as well as services provided by third parties selected by HealthEquity or its Network Partners. Among other features, HealthEquity’s HSA platform has the capability to provide users with medical bills upon adjudication by a health plan, including details such as the amount paid by insurance.
Strength in HSA: HealthEquity’s total number of HSAs, as of Oct 31, 2023, rose 8.4% year over year. HealthEquity reported 592,000 HSAs with investments as of Oct 31, 2023, up 11.9% year over year. Total Accounts, as of Oct 31, 2023, were up 5.4% year over year. This uptick included total HSAs and 6.9 million other consumer-directed benefits. Total HSA assets at the end of Oct 31, 2023, were up 11.7% year over year. This included HSA cash and HSA investments.
Strong Q3 Results: HealthEquity saw solid top-line and bottom-line performances in third-quarter fiscal 2024. The top line benefited from robust contributions from the majority of its revenue sources. The expansion of both margins was also seen.
Downsides
Integration of Acquisitions Maybe Unsuccessful: The success of HealthEquity’s recent acquisitions depends partly on its ability to realize the anticipated business opportunities by combining the operations of the acquired businesses with its business in an efficient and effective manner. The integration of HealthEquity’s acquisitions could take longer and be more costly than anticipated, and it could result in the disruption of its ongoing business and the acquired business, among others, and could harm its financial performance.
Data Security Issues: HealthEquity deals with a high level of sensitive personal data and information. Any security breaches might result in the loss of sensitive information, theft or loss of actual funds, litigation or indemnity obligations to the customers. The company’s ability to ensure the security of its technology platforms and, thus, sensitive customer and partner information is critical to its operations.
Estimate Trend
HealthEquity has been witnessing a positive estimate revision trend for fiscal 2024. Over the past 90 days, the Zacks Consensus Estimate for its earnings per share has moved 4.9% north to $2.11.
The Zacks Consensus Estimate for fourth-quarter fiscal 2024 revenues is pegged at $256 million, suggesting a 9.5% rise from the year-ago reported number.
Other Key Picks
A few other top-ranked stocks in the broader medical space are DaVita Inc. DVA, DexCom, Inc. DXCM and Integer Holdings Corporation ITGR.
DaVita, sporting a Zacks Rank #1 (Strong Buy), has an estimated long-term growth rate of 17.3%. DVA’s earnings surpassed estimates in all the trailing four quarters, with an average surprise of 36.6%. You can see the complete list of today’s Zacks #1 Rank stocks here.
DaVita’s shares have gained 45.4% compared with the industry’s 8.6% rise in the past year.
DexCom, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 33.6%. DXCM’s earnings surpassed estimates in all the trailing four quarters, with an average of 36.4%.
DexCom has gained 7.4% compared with the industry’s 3.7% rise over the past year.
Integer Holdings, flaunting a Zacks Rank of 1 at present, has an estimated long-term growth rate of 15.8%. ITGR’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 11.9%.
Integer Holdings’ shares have rallied 45.6% compared with the industry’s 3.7% rise in the past year.
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
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DaVita Inc. (DVA) : Free Stock Analysis Report
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Integer Holdings Corporation (ITGR) : Free Stock Analysis Report
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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. | The optimism led by a solid third-quarter fiscal 2024 performance and strength in Health Savings Accounts (HSA) are expected to contribute further. Among other features, HealthEquity’s HSA platform has the capability to provide users with medical bills upon adjudication by a health plan, including details such as the amount paid by insurance. Other Key Picks A few other top-ranked stocks in the broader medical space are DaVita Inc. DVA, DexCom, Inc. DXCM and Integer Holdings Corporation ITGR. | The optimism led by a solid third-quarter fiscal 2024 performance and strength in Health Savings Accounts (HSA) are expected to contribute further. HealthEquity’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average earnings surprise being 16.5%. Click to get this free report DaVita Inc. (DVA) : Free Stock Analysis Report DexCom, Inc. (DXCM) : Free Stock Analysis Report HealthEquity, Inc. (HQY) : Free Stock Analysis Report Integer Holdings Corporation (ITGR) : Free Stock Analysis Report To read this article on Zacks.com click here. | HealthEquity’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average earnings surprise being 16.5%. HealthEquity reported 592,000 HSAs with investments as of Oct 31, 2023, up 11.9% year over year. Click to get this free report DaVita Inc. (DVA) : Free Stock Analysis Report DexCom, Inc. (DXCM) : Free Stock Analysis Report HealthEquity, Inc. (HQY) : Free Stock Analysis Report Integer Holdings Corporation (ITGR) : Free Stock Analysis Report To read this article on Zacks.com click here. | Over the past year, the Zacks Rank #2 (Buy) stock has gained 3.9% against the 7.9% decline of the industry. Over the past 90 days, the Zacks Consensus Estimate for its earnings per share has moved 4.9% north to $2.11. The Zacks Consensus Estimate for fourth-quarter fiscal 2024 revenues is pegged at $256 million, suggesting a 9.5% rise from the year-ago reported number. | e40def1c-a11f-42b9-a599-9f6acd55aa60 |
710359.0 | 2023-12-16 22:00:00 UTC | Here's What Makes Arista (ANET) a Promising Portfolio Pick | DCOMP | https://www.nasdaq.com/articles/heres-what-makes-arista-anet-a-promising-portfolio-pick | nan | nan | Shares of Arista Networks, Inc. ANET have surged 91.9% over the past year, driven by solid demand trends and healthy customer additions. Its current fiscal-year earnings estimates have moved up 26.2% over the past year and that for the next fiscal year has appreciated 28.4%, implying healthy growth potential. Despite intense market volatility, this Zacks Rank #2 (Buy) stock appears to be a solid investment option at the moment. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Growth Drivers
Arista continues to benefit from strong momentum and diversification across its top verticals and product lines. The company has a software-driven, data-centric approach to help customers build their cloud architecture and enhance their cloud experience. It is well-poised for growth in data-driven cloud networking business with proactive platforms and predictive operations.
The company holds a leadership position in 100-gigabit Ethernet switching share in port for the high-speed datacenter segment. It is increasingly gaining market traction in 200- and 400-gig high-performance switching products. It remains well-positioned for healthy growth in data-driven cloud networking business with proactive platforms and predictive operations.
Arista is witnessing solid demand trends among enterprise customers backed by its multi-domain modern software approach, which is built upon its unique and differentiating foundation, the single EOS (Extensible Operating System) and CloudVision stack. The versatility of Arista’s unified software stack across various use cases, including WAN routing and campus and data center infrastructure, sets it apart from other competitors in the industry. Its strong emphasis on quality, solid execution and consistent release schedule are driving more value for customers. Steady improvement in lead times and easing of supply chain woes are major tailwinds.
With customers deploying transformative cloud networking solutions, it has announced several additions to its multi-cloud and cloud-native software product family with CloudEOS Edge. It has introduced cognitive Wi-Fi software that delivers intelligent application identification, automated troubleshooting and location services. This supports video conferencing applications like Google Hangouts, Microsoft Teams and Zoom.
The buyout of Awake Security, a Network Detection and Response platform provider that combines artificial intelligence with human expertise to autonomously hunt and respond to insider and external threats, has strengthened its market position.
The company expanded its cognitive campus portfolio with new platforms, including the 750 Series modular chassis and the 720 Series 96 port fixed switch. Arista announced unified edge innovations across wired and wireless networks for its Cognitive Campus Edge portfolio for Enterprise Workspaces. It has also introduced an enterprise-grade Software-as-a-Service offering for the flagship CloudVision platform.
Arista continues benefiting from the expanding cloud networking market, driven by strong demand for scalable infrastructure. In addition to high capacity and easy availability, its cloud networking solutions promise predictable performance and programmability, enabling integration with third-party applications for network management, automation and orchestration.
It offers one of the broadest product lines of datacenter and campus Ethernet switches and routers in the industry. Arista provides routing and switching platforms with industry-leading capacity, low latency, port density and power efficiency. The company also innovates in areas such as deep packet buffers, embedded optics and reversible cooling.
ANET delivered an earnings surprise of 12%, on average, in the trailing four quarters. With a long-term earnings growth expectation of 19.8%, this stock appears to be an enticing investment option for the volatile market.
Other Key Picks
United States Cellular Corporation USM, sporting a Zacks Rank #1, is the fourth largest full-service wireless carrier in the United States. The company provides a range of wireless products and services, and a high-quality network to increase the competitiveness of local businesses and improve the efficiency of government operations.
U.S. Cellular has taken concrete steps to accelerate subscriber additions and improve churn management. The company aims to offer the best wireless experience to customers by providing superior quality network and national coverage. It is well-positioned to support the investment required for network enhancements, including the deployment of 5G technology. The company is well-positioned for continued demand for broadband.
InterDigital, Inc. IDCC: Headquartered in Wilmington, DE, InterDigital is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. The company engages in designing and developing a wide range of advanced technology solutions, which are used in digital cellular as well as wireless 3G, 4G and IEEE 802-related products and networks.
This Zacks Rank #1 stock has a long-term earnings growth expectation of 17.4% and has surged 122.6% over the past year. A well-established global footprint, diversified product portfolio and ability to penetrate different markets are key growth drivers for InterDigital. Apart from a strong portfolio of wireless technology solutions, the addition of technologies related to sensors, user interface and video to its offerings is likely to drive considerable value, given the massive size of the market it offers licensing technologies to.
Deutsche Telekom AG DTEGY, carrying a Zacks Rank #2 (Buy), is likely to benefit from the accretive post-merger integration of T-Mobile US Inc. and Sprite in the United States, in which it owns about 43% stake. The removal of forced cable TV access in multiple dwelling units in Germany through telecom legislation is likely to help Deutsche Telekom expand its broadband market.
Moreover, an aggressive fiber rollout strategy across the country is expected to augment its domestic market hold. The Zacks Consensus Estimate for current-year earnings for Deutsche Telekom has been revised 3.4% upward over the past year. It has a long-term earnings growth expectation of 8.5%. The stock has gained 16.1% in the past year.
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
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United States Cellular Corporation (USM) : Free Stock Analysis Report
Deutsche Telekom AG (DTEGY) : Free Stock Analysis Report
InterDigital, Inc. (IDCC) : Free Stock Analysis Report
Arista Networks, Inc. (ANET) : Free Stock Analysis Report
To read this article on Zacks.com click here.
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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. | Arista is witnessing solid demand trends among enterprise customers backed by its multi-domain modern software approach, which is built upon its unique and differentiating foundation, the single EOS (Extensible Operating System) and CloudVision stack. The buyout of Awake Security, a Network Detection and Response platform provider that combines artificial intelligence with human expertise to autonomously hunt and respond to insider and external threats, has strengthened its market position. Deutsche Telekom AG DTEGY, carrying a Zacks Rank #2 (Buy), is likely to benefit from the accretive post-merger integration of T-Mobile US Inc. and Sprite in the United States, in which it owns about 43% stake. | Shares of Arista Networks, Inc. ANET have surged 91.9% over the past year, driven by solid demand trends and healthy customer additions. It remains well-positioned for healthy growth in data-driven cloud networking business with proactive platforms and predictive operations. Click to get this free report United States Cellular Corporation (USM) : Free Stock Analysis Report Deutsche Telekom AG (DTEGY) : Free Stock Analysis Report InterDigital, Inc. (IDCC) : Free Stock Analysis Report Arista Networks, Inc. (ANET) : Free Stock Analysis Report To read this article on Zacks.com click here. | This Zacks Rank #1 stock has a long-term earnings growth expectation of 17.4% and has surged 122.6% over the past year. Apart from a strong portfolio of wireless technology solutions, the addition of technologies related to sensors, user interface and video to its offerings is likely to drive considerable value, given the massive size of the market it offers licensing technologies to. Click to get this free report United States Cellular Corporation (USM) : Free Stock Analysis Report Deutsche Telekom AG (DTEGY) : Free Stock Analysis Report InterDigital, Inc. (IDCC) : Free Stock Analysis Report Arista Networks, Inc. (ANET) : Free Stock Analysis Report To read this article on Zacks.com click here. | Shares of Arista Networks, Inc. ANET have surged 91.9% over the past year, driven by solid demand trends and healthy customer additions. In addition to high capacity and easy availability, its cloud networking solutions promise predictable performance and programmability, enabling integration with third-party applications for network management, automation and orchestration. Be First to New Top 10 Stocks >> Want the latest recommendations from Zacks Investment Research? | 82bd75c0-2c70-4084-9d9d-5b8373a9f768 |
710360.0 | 2023-12-16 22:00:00 UTC | Visa (V) to Unlock New Horizons for Intermex With New Alliance | DCOMP | https://www.nasdaq.com/articles/visa-v-to-unlock-new-horizons-for-intermex-with-new-alliance | nan | nan | Visa Inc. V recently partnered with International Money Express, Inc. IMXI or Intermex to enhance the latter’s money transfer services. The partnership involves integrating Visa Direct into Intermex's platform. The move is expected to enable Intermex to provide improved service to its customers, like sending money to unserved areas.
Visa Direct is a service provided by Visa that acts as a single point of access to numerous endpoints. This facilitates the global movement of money by enabling swift delivery of funds to eligible cards, bank accounts and wallets on a worldwide scale. Visa continues to leverage its cutting-edge technologies to build partnerships and expand its market reach.
Thanks to this collaboration, customers of Intermex, a remittance services company, can now enjoy expedited transfers to eligible Visa cards and bank accounts in over 20 countries that were previously not served by Intermex. The move is expected to provide the company with a competitive advantage in the market and attract new customers while retaining existing ones.
This partnership is expected to broaden the range of choices and flexibility for consumers, particularly migrant workers in the United States sending money abroad. On Dec 15, 2023, Intermex launched the service.
The partnership is expected to help Visa with increased transaction volumes, expanding remittance services and boosting global presence and consumer base. In the last reported quarter, V’s processed transactions totaled 56 billion, which rose 10% year over year.
Price Performance
Shares of Visa have gained 26.6% in the past year compared with the industry’s 22.2% jump.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Visa currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Business Services space are FirstCash Holdings, Inc. FCFS and Shift4 Payments, Inc. FOUR, each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for FirstCash’s current year bottom line indicates 13.1% year-over-year growth. Headquartered in Fort Worth, TX, FCFS beat earnings estimates in all the past four quarters, with an average surprise of 7.9%.
The Zacks Consensus Estimate for Shift4 Payments’ current year earnings is pegged at $2.92 per share, which indicates 110.1% year-over-year growth. Allentown, PA-based FOUR beat earnings estimates in all the past four quarters, with an average surprise of 25%.
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
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Visa Inc. (V) : Free Stock Analysis Report
FirstCash Holdings, Inc. (FCFS) : Free Stock Analysis Report
INTERNATIONAL MONEY EXPRESS, INC. (IMXI) : Free Stock Analysis Report
Shift4 Payments, Inc. (FOUR) : Free Stock Analysis Report
To read this article on Zacks.com click here.
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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. | This facilitates the global movement of money by enabling swift delivery of funds to eligible cards, bank accounts and wallets on a worldwide scale. This partnership is expected to broaden the range of choices and flexibility for consumers, particularly migrant workers in the United States sending money abroad. Some better-ranked stocks in the broader Business Services space are FirstCash Holdings, Inc. FCFS and Shift4 Payments, Inc. FOUR, each currently sporting a Zacks Rank #1 (Strong Buy). | Image Source: Zacks Investment Research Zacks Rank & Key Picks Visa currently has a Zacks Rank #3 (Hold). The Zacks Consensus Estimate for Shift4 Payments’ current year earnings is pegged at $2.92 per share, which indicates 110.1% year-over-year growth. Click to get this free report Visa Inc. (V) : Free Stock Analysis Report FirstCash Holdings, Inc. (FCFS) : Free Stock Analysis Report INTERNATIONAL MONEY EXPRESS, INC. (IMXI) : Free Stock Analysis Report Shift4 Payments, Inc. (FOUR) : Free Stock Analysis Report To read this article on Zacks.com click here. | Thanks to this collaboration, customers of Intermex, a remittance services company, can now enjoy expedited transfers to eligible Visa cards and bank accounts in over 20 countries that were previously not served by Intermex. Image Source: Zacks Investment Research Zacks Rank & Key Picks Visa currently has a Zacks Rank #3 (Hold). Click to get this free report Visa Inc. (V) : Free Stock Analysis Report FirstCash Holdings, Inc. (FCFS) : Free Stock Analysis Report INTERNATIONAL MONEY EXPRESS, INC. (IMXI) : Free Stock Analysis Report Shift4 Payments, Inc. (FOUR) : Free Stock Analysis Report To read this article on Zacks.com click here. | The move is expected to enable Intermex to provide improved service to its customers, like sending money to unserved areas. Thanks to this collaboration, customers of Intermex, a remittance services company, can now enjoy expedited transfers to eligible Visa cards and bank accounts in over 20 countries that were previously not served by Intermex. The Zacks Consensus Estimate for Shift4 Payments’ current year earnings is pegged at $2.92 per share, which indicates 110.1% year-over-year growth. | 78bf2a5b-6d4d-42f6-8a52-c220523ed7aa |
710361.0 | 2023-12-16 22:00:00 UTC | Veeva Systems (VEEV) Vault Quality Offerings Adopted by Recipharm | DCOMP | https://www.nasdaq.com/articles/veeva-systems-veev-vault-quality-offerings-adopted-by-recipharm | nan | nan | Veeva Systems Inc. VEEV recently announced that Recipharm will be using Veeva Vault QMS, Veeva Vault QualityDocs and Veeva Vault Training to streamline its quality operations. Veeva quality applications will likely help Recipharm to standardize quality processes and manage GxP content across its organization.
It is worthwhile to mention that Recipharm is a global contract development and manufacturing organization, which offers manufacturing services to pharmaceutical and medical device companies.
The latest adoption is likely to provide a significant boost to the Veeva Vault Quality Suite applications under the Veeva Development Cloud solutions. Notably, the Veeva Development Cloud solutions belong to the broader Life Sciences segment.
Significance of the Adoption
Recipharm’s adoption of Veeva Systems’ products is expected to aid it in achieving greater quality oversight, using resources more effectively, accelerating validation and maintaining inspection readiness.
Per Veeva Systems’ management, unifying quality processes, content and training on Veeva Vault Quality will likely help Recipharm keep contract development and manufacturing on track as it continues to scale.
Recipharm’s management believes that Veeva Vault Quality will likely enable it to provide its customers with a standard approach to quality.
Industry Prospects
Per a report by Marketsandresearch.biz, the global clinical data management system market was estimated to be $1574.8 million in 2021 and is projected to reach $4294.1 million by 2028 at a CAGR of 15.4%. Factors like a surge in clinical trials, a flourishing healthcare industry, and increasing research collaborations and partnerships are expected to drive the market.
Given the market potential, the latest product adoption is expected to strengthen Veeva Systems’ position in the global cloud application space.
Recent Developments
This month, Veeva Systems announced its third-quarter fiscal 2024 results, wherein it recorded a solid year-over-year uptick in the overall top and bottom lines and robust performances by both segments. The company continued to benefit from its flagship Vault platform. Veeva Systems also saw continued strength in its Commercial Solutions with new customer additions and strong win rates in Veeva CRM during the quarter. Veeva Systems also registered great traction in newer areas, including LIMS and Batch Release.
In October, Veeva Systems announced that LEO Pharma is using Veeva Vault Safety to optimize its safety operations.
Veeva Systems announced a new cloud application, Veeva Vault Batch Release, in September. The latest application will likely enable faster and more confident GMP (Good Manufacturing Processes) release and market-ship decisions.
Price Performance
Shares of the company have gained 9.5% in the past year compared with the industry’s 69.4% rise and the S&P 500's 23.5% growth.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Currently, Veeva Systems carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space are DaVita Inc. DVA, HealthEquity, Inc. HQY and Integer Holdings Corporation ITGR.
DaVita, sporting a Zacks Rank #1 (Strong Buy), has an estimated long-term growth rate of 17.3%. DVA’s earnings surpassed estimates in all the trailing four quarters, with an average surprise of 36.6%. You can see the complete list of today’s Zacks #1 Rank stocks here.
DaVita’s shares have gained 45.4% compared with the industry’s 8.6% rise in the past year.
HealthEquity, carrying a Zacks Rank of 2 (Buy) at present, has an estimated long-term growth rate of 27.5%. HQY’s earnings surpassed estimates in all the trailing four quarters, with an average of 16.5%.
HealthEquity has gained 3.9% against the industry’s 7.9% decline over the past year.
Integer Holdings, flaunting a Zacks Rank of 1 at present, has an estimated long-term growth rate of 15.8%. ITGR’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 11.9%.
Integer Holdings’ shares have rallied 45.6% compared with the industry’s 3.7% rise in the past year.
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
Be First to New Top 10 Stocks >>
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
DaVita Inc. (DVA) : Free Stock Analysis Report
Veeva Systems Inc. (VEEV) : Free Stock Analysis Report
HealthEquity, Inc. (HQY) : Free Stock Analysis Report
Integer Holdings Corporation (ITGR) : 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. | Factors like a surge in clinical trials, a flourishing healthcare industry, and increasing research collaborations and partnerships are expected to drive the market. Given the market potential, the latest product adoption is expected to strengthen Veeva Systems’ position in the global cloud application space. Recent Developments This month, Veeva Systems announced its third-quarter fiscal 2024 results, wherein it recorded a solid year-over-year uptick in the overall top and bottom lines and robust performances by both segments. | Veeva Systems Inc. VEEV recently announced that Recipharm will be using Veeva Vault QMS, Veeva Vault QualityDocs and Veeva Vault Training to streamline its quality operations. Image Source: Zacks Investment Research Zacks Rank & Key Picks Currently, Veeva Systems carries a Zacks Rank #3 (Hold). Click to get this free report DaVita Inc. (DVA) : Free Stock Analysis Report Veeva Systems Inc. (VEEV) : Free Stock Analysis Report HealthEquity, Inc. (HQY) : Free Stock Analysis Report Integer Holdings Corporation (ITGR) : Free Stock Analysis Report To read this article on Zacks.com click here. | Veeva Systems Inc. VEEV recently announced that Recipharm will be using Veeva Vault QMS, Veeva Vault QualityDocs and Veeva Vault Training to streamline its quality operations. Image Source: Zacks Investment Research Zacks Rank & Key Picks Currently, Veeva Systems carries a Zacks Rank #3 (Hold). Click to get this free report DaVita Inc. (DVA) : Free Stock Analysis Report Veeva Systems Inc. (VEEV) : Free Stock Analysis Report HealthEquity, Inc. (HQY) : Free Stock Analysis Report Integer Holdings Corporation (ITGR) : Free Stock Analysis Report To read this article on Zacks.com click here. | Per Veeva Systems’ management, unifying quality processes, content and training on Veeva Vault Quality will likely help Recipharm keep contract development and manufacturing on track as it continues to scale. Veeva Systems announced a new cloud application, Veeva Vault Batch Release, in September. Some better-ranked stocks in the broader medical space are DaVita Inc. DVA, HealthEquity, Inc. HQY and Integer Holdings Corporation ITGR. | 9680caa5-667d-49a0-989a-486925beeb3b |
710362.0 | 2023-12-16 22:00:00 UTC | Monolithic Power (MPWR) Soars 80% YTD: Will the Trend Last? | DCOMP | https://www.nasdaq.com/articles/monolithic-power-mpwr-soars-80-ytd%3A-will-the-trend-last | nan | nan | Shares of semiconductor firm Monolithic Power Systems, Inc. MPWR have climbed 79.6% year to date, driven by solid end-market demand across its portfolio on the back of a flexible business model and solid cash flow. With healthy fundamentals, this Zacks Rank #3 (Hold) stock appears primed for further appreciation. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Image Source: Zacks Investment Research
Growth Drivers
Based in Kirkland, WA, Monolithic Power designs, develops and markets high-performance power solutions. The company focuses on the market for high-performance analog and mixed-signal integrated circuits (ICs) that are widely utilized in industrial applications, cloud computing, telecommunication infrastructures, automotive and consumer applications.
Automotive is one of the foremost industries that is benefiting from the emergence of IoT and AI applications. The increasing demand for analog ICs and sensors bodes well for semiconductor component providers like Monolithic Power. Management has stated that the company is winning increasing dollar content in the automotive market.
Moreover, its deep-rooted partnerships with leading auto suppliers will likely boost the top line. Monolithic Power has a strong growth opportunity due to its robust product portfolio that targets in-car connectivity and infotainment, advanced driver assistance system and rapid adoption of LED lighting in cars and vehicles.
Apart from automotive, Monolithic Power is investing in markets like industrial, server and communications that have strong growth potential over the long term. The increasing adoption of cloud computing is driving demand for servers, which bodes well for the company’s power management solutions.
We expect Monolithic Power to benefit from the ongoing Grantley to Purley platform conversion in the server market, which significantly increases memory bandwidth performance by incorporating additional memory channels. Higher dollar content in new servers based on Purley will drive top-line growth. Management also anticipates cloud computing to be a notable growth driver, particularly due to increasing demand for solid state drives and servers.
In addition, Monolithic Power projects e-commerce as a solid growth driver. The company is engaged in developing its e-commerce platform, which will allow customers to input their specific needs. The company aims to leverage AI software to predict performance for the consumer’s desired product. Monolithic Power expects to deliver Amazon-like consumer experience through its e-commerce platform. This will not only expand the customer base but also help the company rapidly penetrate small and medium businesses.
It has a long-term earnings growth expectation of 10.1% and delivered an earnings surprise of 0.6%, on average, in the trailing four quarters.
Key Picks
United States Cellular Corporation USM, sporting a Zacks Rank #1, is the fourth largest full-service wireless carrier in the United States. The company provides a range of wireless products and services, and a high-quality network to increase the competitiveness of local businesses and improve the efficiency of government operations.
U.S. Cellular has taken concrete steps to accelerate subscriber additions and improve churn management. The company aims to offer the best wireless experience to customers by providing superior quality network and national coverage. It is well-positioned to support the investment required for network enhancements, including the deployment of 5G technology. The company is well-positioned for continued demand for broadband.
InterDigital, Inc. IDCC: Headquartered in Wilmington, DE, InterDigital is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. The company engages in designing and developing a wide range of advanced technology solutions, which are used in digital cellular as well as wireless 3G, 4G and IEEE 802-related products and networks.
This Zacks Rank #1 stock has a long-term earnings growth expectation of 17.4% and has surged 122.6% over the past year. A well-established global footprint, diversified product portfolio and ability to penetrate different markets are key growth drivers for InterDigital. Apart from a strong portfolio of wireless technology solutions, the addition of technologies related to sensors, user interface and video to its offerings is likely to drive considerable value, given the massive size of the market it offers licensing technologies to.
Deutsche Telekom AG DTEGY, carrying a Zacks Rank #2 (Buy), is likely to benefit from the accretive post-merger integration of T-Mobile US Inc. and Sprite in the United States, in which it owns about 43% stake. The removal of forced cable TV access in multiple dwelling units in Germany through telecom legislation is likely to help Deutsche Telekom expand its broadband market.
Moreover, an aggressive fiber rollout strategy across the country is expected to augment its domestic market hold. The Zacks Consensus Estimate for current-year earnings for Deutsche Telekom has been revised 3.4% upward over the past year. It has a long-term earnings growth expectation of 8.5%. The stock has gained 16.1% in the past year.
Zacks Naming Top 10 Stocks for 2024
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History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
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United States Cellular Corporation (USM) : Free Stock Analysis Report
Deutsche Telekom AG (DTEGY) : Free Stock Analysis Report
InterDigital, Inc. (IDCC) : Free Stock Analysis Report
Monolithic Power Systems, Inc. (MPWR) : Free Stock Analysis Report
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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. | Monolithic Power has a strong growth opportunity due to its robust product portfolio that targets in-car connectivity and infotainment, advanced driver assistance system and rapid adoption of LED lighting in cars and vehicles. The company provides a range of wireless products and services, and a high-quality network to increase the competitiveness of local businesses and improve the efficiency of government operations. Deutsche Telekom AG DTEGY, carrying a Zacks Rank #2 (Buy), is likely to benefit from the accretive post-merger integration of T-Mobile US Inc. and Sprite in the United States, in which it owns about 43% stake. | Image Source: Zacks Investment Research Growth Drivers Based in Kirkland, WA, Monolithic Power designs, develops and markets high-performance power solutions. Key Picks United States Cellular Corporation USM, sporting a Zacks Rank #1, is the fourth largest full-service wireless carrier in the United States. Click to get this free report United States Cellular Corporation (USM) : Free Stock Analysis Report Deutsche Telekom AG (DTEGY) : Free Stock Analysis Report InterDigital, Inc. (IDCC) : Free Stock Analysis Report Monolithic Power Systems, Inc. (MPWR) : Free Stock Analysis Report To read this article on Zacks.com click here. | Image Source: Zacks Investment Research Growth Drivers Based in Kirkland, WA, Monolithic Power designs, develops and markets high-performance power solutions. This Zacks Rank #1 stock has a long-term earnings growth expectation of 17.4% and has surged 122.6% over the past year. Click to get this free report United States Cellular Corporation (USM) : Free Stock Analysis Report Deutsche Telekom AG (DTEGY) : Free Stock Analysis Report InterDigital, Inc. (IDCC) : Free Stock Analysis Report Monolithic Power Systems, Inc. (MPWR) : Free Stock Analysis Report To read this article on Zacks.com click here. | In addition, Monolithic Power projects e-commerce as a solid growth driver. The company aims to offer the best wireless experience to customers by providing superior quality network and national coverage. The company engages in designing and developing a wide range of advanced technology solutions, which are used in digital cellular as well as wireless 3G, 4G and IEEE 802-related products and networks. | 55bf6079-fcc8-47a9-a47f-02ecc6c21fe6 |
710363.0 | 2023-12-16 22:00:00 UTC | Did Verizon Stock Have on Off Year in 2023? Does It Matter to Investors? | DCOMP | https://www.nasdaq.com/articles/did-verizon-stock-have-on-off-year-in-2023-does-it-matter-to-investors | nan | nan | Telecom can be a good industry to invest in if you're looking for long-term stability and dividend income. But that doesn't mean you'll get great returns. Verizon Communications (NYSE: VZ) is one of the top telecom stocks in the country, and it has struggled in 2023. Year to date, its share prices are down 4%, while the S&P 500 jumped by more than 23%.
Is this really a bad year for Verizon, or is this just the norm? And even if its gains aren't impressive, could this still be a good investment to hang on to for the long haul?
Verizon doesn't have a great track record for outperforming the markets
Unfortunately, this year isn't that much of an anomaly for Verizon's stock. Neither being down in negative territory nor underperforming the S&P 500 is unusual territory for the stock. Here's a comparison of how it has done versus the broad index in the previous 10 years.
Image source: yCharts. Chart by author.
In just two of the past 10 years, Verizon's stock has done better than the S&P 500. These days it's battling high interest rates, inflation, and weaker consumer demand. The one positive spin you can make is that at least the stock's losses aren't as steep as last year's 24% decline.
Why Verizon could still make for a good long-term investment
Verizon and other telecom companies often trade subscribers back and forth, so it can be difficult to generate any significant, meaningful growth. In the past decade, for example, the company has averaged a fairly minimal growth rate of just 1%.
VZ Revenue (Quarterly YoY Growth) data by YCharts
By and large, Verizon is a stock that's most suitable for dividend investors. With its modest valuation, the dividend's yield is 7.1%, which is a payout that is close to five times the S&P 500 average of 1.5%. Investors are getting some good dividend income from Verizon's stock. And over the years, the company has also increased its payouts.
VZ Dividend data by YCharts
Verizon's business is still in good shape
Despite the struggling share price, the business remains in good shape, with Verizon projecting free cash flow to top $18 billion this year, $1 billion higher than its previous guidance. And its wireless service revenue may also rise by as much as 4.5%.
The stock's payout ratio of 53% also suggests that there is plenty of room for Verizon to continue increasing its dividend in the years to come; its streak currently sits at 17 consecutive years of dividend hikes.
Should you invest in Verizon's stock?
If you're a growth investor, you're better off looking elsewhere. But for dividend investors who are more concerned with recurring payouts than a market-beating stock, Verizon can make for a solid long-term investment. While the stock should still rise in value given its incredibly low valuation (it trades at only 8 times earnings), investors should make sure to temper their expectations for the stock.
Should you invest $1,000 in Verizon Communications right now?
Before you buy stock in Verizon Communications, consider this:
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David Jagielski has no position in any of the stocks mentioned. The Motley Fool recommends Verizon Communications. 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. | VZ Revenue (Quarterly YoY Growth) data by YCharts By and large, Verizon is a stock that's most suitable for dividend investors. VZ Dividend data by YCharts Verizon's business is still in good shape Despite the struggling share price, the business remains in good shape, with Verizon projecting free cash flow to top $18 billion this year, $1 billion higher than its previous guidance. But for dividend investors who are more concerned with recurring payouts than a market-beating stock, Verizon can make for a solid long-term investment. | Why Verizon could still make for a good long-term investment Verizon and other telecom companies often trade subscribers back and forth, so it can be difficult to generate any significant, meaningful growth. VZ Dividend data by YCharts Verizon's business is still in good shape Despite the struggling share price, the business remains in good shape, with Verizon projecting free cash flow to top $18 billion this year, $1 billion higher than its previous guidance. Before you buy stock in Verizon Communications, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Verizon Communications wasn't one of them. | Verizon doesn't have a great track record for outperforming the markets Unfortunately, this year isn't that much of an anomaly for Verizon's stock. VZ Dividend data by YCharts Verizon's business is still in good shape Despite the struggling share price, the business remains in good shape, with Verizon projecting free cash flow to top $18 billion this year, $1 billion higher than its previous guidance. Before you buy stock in Verizon Communications, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Verizon Communications wasn't one of them. | In just two of the past 10 years, Verizon's stock has done better than the S&P 500. Investors are getting some good dividend income from Verizon's stock. Before you buy stock in Verizon Communications, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Verizon Communications wasn't one of them. | 1b436fc1-c5f8-4686-b4db-1f71890b8eb4 |
710364.0 | 2023-12-16 22:00:00 UTC | Will Passenger Ticket Revenues Aid Carnival's (CCL) Q4 Earnings? | DCOMP | https://www.nasdaq.com/articles/will-passenger-ticket-revenues-aid-carnivals-ccl-q4-earnings | nan | nan | Carnival Corporation & plc CCL is scheduled to report its fourth-quarter fiscal 2023 results on Dec 21. The company is likely to benefit from robust passenger ticket revenues. CCL has exhibited a solid performance in the past year, with the stock rising 120.9% and outperforming the industry’s 19.6% growth.
Robust Passenger Ticket Revenues Bode Well
CCL is anticipated to see improved performance in the fourth quarter of fiscal 2023, driven by robust passenger ticket revenues. The company is expected to have witnessed heightened booking activities, a favorable pricing environment and successful capacity-generation initiatives, all contributing positively to its financial results.
Additionally, the company's performance in the quarter to be reported is likely to have been boosted by strong demand and improved onboard spending. With the strength and diversity of its brands and itineraries, CCL boasts a broader passenger base among potential and repeat cruise vacationers.
Our model predicts passenger ticket revenues to surge 47.6% year over year to $3,350.1 million. Per our model, revenues from North America, Europe, Australia and Other will likely jump 34.8%, 23.2%, 19.9% and 767.5% year over year to $3,200.6 million, $1,529.8 million, $302.2 million and $193.6 million, respectively.
Click here to know how the company’s overall fiscal fourth-quarter performance is expected to be.
Carnival Corporation Price and EPS Surprise
Carnival Corporation price-eps-surprise | Carnival Corporation Quote
Overall Q4 Earnings & Revenue Expectations
The Zacks Consensus Estimate for the bottom line is currently pegged at a loss of 12 cents per share, compared with a loss of 85 cents reported in the prior-year quarter. The consensus mark for revenues is pegged at $5.32 billion, suggesting a 38.6% year-over-year jump.
CCL currently carries a Zacks rank #3 (Hold).
Stocks Poised to Beat Estimates
Here are some stocks from the Zacks Consumer Discretionary sector that investors may consider, as our model shows that these have the right combination of elements to post an earnings beat this season.
Royal Caribbean Cruises Ltd. RCL has an Earnings ESP of +0.39% and a Zacks Rank #1.
Shares of Royal Caribbean have surged 139.2% in the past year. RCL’s earnings beat the consensus mark in all the trailing four quarters, the average surprise being 28.3%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Live Nation Entertainment, Inc. LYV has an Earnings ESP of +0.98% and a Zacks Rank #1.
Shares of Live Nation have gained 34.3% in the past year. LYV’s earnings beat the consensus mark thrice in the trailing four quarters and missed once, the average surprise being 37.5%.
Cedar Fair, L.P. FUN has an Earnings ESP of +47.83% and a Zacks Rank #3.
Shares of Cedar Fair have gained 0.7% in the past year. FUN’s earnings topped the consensus mark in three of the trailing four quarters and missed once, with the average surprise being 67.3%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
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Carnival Corporation (CCL) : Free Stock Analysis Report
Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report
Live Nation Entertainment, Inc. (LYV) : Free Stock Analysis Report
Cedar Fair, L.P. (FUN) : Free Stock Analysis Report
To read this article on Zacks.com click here.
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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. | The company is expected to have witnessed heightened booking activities, a favorable pricing environment and successful capacity-generation initiatives, all contributing positively to its financial results. With the strength and diversity of its brands and itineraries, CCL boasts a broader passenger base among potential and repeat cruise vacationers. From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. | Our model predicts passenger ticket revenues to surge 47.6% year over year to $3,350.1 million. Carnival Corporation Price and EPS Surprise Carnival Corporation price-eps-surprise | Carnival Corporation Quote Overall Q4 Earnings & Revenue Expectations The Zacks Consensus Estimate for the bottom line is currently pegged at a loss of 12 cents per share, compared with a loss of 85 cents reported in the prior-year quarter. Click to get this free report Carnival Corporation (CCL) : Free Stock Analysis Report Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report Live Nation Entertainment, Inc. (LYV) : Free Stock Analysis Report Cedar Fair, L.P. (FUN) : Free Stock Analysis Report To read this article on Zacks.com click here. | Robust Passenger Ticket Revenues Bode Well CCL is anticipated to see improved performance in the fourth quarter of fiscal 2023, driven by robust passenger ticket revenues. Carnival Corporation Price and EPS Surprise Carnival Corporation price-eps-surprise | Carnival Corporation Quote Overall Q4 Earnings & Revenue Expectations The Zacks Consensus Estimate for the bottom line is currently pegged at a loss of 12 cents per share, compared with a loss of 85 cents reported in the prior-year quarter. Click to get this free report Carnival Corporation (CCL) : Free Stock Analysis Report Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report Live Nation Entertainment, Inc. (LYV) : Free Stock Analysis Report Cedar Fair, L.P. (FUN) : Free Stock Analysis Report To read this article on Zacks.com click here. | Click here to know how the company’s overall fiscal fourth-quarter performance is expected to be. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. FUN’s earnings topped the consensus mark in three of the trailing four quarters and missed once, with the average surprise being 67.3%. | fea0e8bf-2a2e-46cd-a0d9-62cd9f41ee48 |
710365.0 | 2023-12-16 22:00:00 UTC | Is PennantPark Investment (PNNT) Stock Undervalued Right Now? | DCOMP | https://www.nasdaq.com/articles/is-pennantpark-investment-pnnt-stock-undervalued-right-now | nan | nan | Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is PennantPark Investment (PNNT). PNNT is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 7.15 right now. For comparison, its industry sports an average P/E of 7.79. Over the past year, PNNT's Forward P/E has been as high as 7.94 and as low as 5.95, with a median of 7.15.
We should also highlight that PNNT has a P/B ratio of 0.85. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 0.90. PNNT's P/B has been as high as 0.90 and as low as 0.62, with a median of 0.78, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. PNNT has a P/S ratio of 2.97. This compares to its industry's average P/S of 3.49.
These are only a few of the key metrics included in PennantPark Investment's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, PNNT looks like an impressive value stock at the moment.
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
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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
PennantPark Investment Corporation (PNNT) : 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. | Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits. On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. | Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. These are only a few of the key metrics included in PennantPark Investment's strong Value grade, but they help show that the stock is likely undervalued right now. Click to get this free report PennantPark Investment Corporation (PNNT) : Free Stock Analysis Report To read this article on Zacks.com click here. | Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today. Click to get this free report PennantPark Investment Corporation (PNNT) : Free Stock Analysis Report To read this article on Zacks.com click here. | Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today. One company value investors might notice is PennantPark Investment (PNNT). PNNT has a P/S ratio of 2.97. | 6ff3bd0a-90ca-4069-9d51-da21f2abd30b |
710366.0 | 2023-12-16 22:00:00 UTC | Twilio (TWLO)'s Technical Outlook is Bright After Key Golden Cross | DCOMP | https://www.nasdaq.com/articles/twilio-twlos-technical-outlook-is-bright-after-key-golden-cross | nan | nan | After reaching an important support level, Twilio Inc. (TWLO) could be a good stock pick from a technical perspective. TWLO recently experienced a "golden cross" event, which saw its 50-day simple moving average breaking out above its 200-day simple moving average.
Considered an important signifier for a bullish breakout, a golden cross is a technical chart pattern that's formed when a stock's short-term moving average breaks above a longer-term moving average; the most common crossover involves the 50-day and the 200-day, since bigger time periods tend to form stronger breakouts.
A successful golden cross event has three stages. It first begins when a stock's price on the decline bottoms out. Then, its shorter moving average crosses above its longer moving average, triggering a positive trend reversal. The third and final phase occurs when the stock maintains its upward momentum.
A golden cross is the opposite of a death cross, another technical event that indicates bearish price movement may be on the horizon.
TWLO has rallied 24.5% over the past four weeks, and the company is a #3 (Hold) on the Zacks Rank at the moment. This combination indicates TWLO could be poised for a breakout.
Looking at TWLO's earnings expectations, investors will be even more convinced of the bullish uptrend. For the current quarter, there have been 10 changes higher compared to none lower over the past 60 days, and the Zacks Consensus Estimate has moved up as well.
Investors may want to watch TWLO for more gains in the near future given the company's key technical level and positive earnings estimate revisions.
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
Be First to New Top 10 Stocks >>
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
Twilio Inc. (TWLO) : 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. | Considered an important signifier for a bullish breakout, a golden cross is a technical chart pattern that's formed when a stock's short-term moving average breaks above a longer-term moving average; the most common crossover involves the 50-day and the 200-day, since bigger time periods tend to form stronger breakouts. Investors may want to watch TWLO for more gains in the near future given the company's key technical level and positive earnings estimate revisions. From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. | TWLO recently experienced a "golden cross" event, which saw its 50-day simple moving average breaking out above its 200-day simple moving average. Considered an important signifier for a bullish breakout, a golden cross is a technical chart pattern that's formed when a stock's short-term moving average breaks above a longer-term moving average; the most common crossover involves the 50-day and the 200-day, since bigger time periods tend to form stronger breakouts. Click to get this free report Twilio Inc. (TWLO) : Free Stock Analysis Report To read this article on Zacks.com click here. | TWLO recently experienced a "golden cross" event, which saw its 50-day simple moving average breaking out above its 200-day simple moving average. Considered an important signifier for a bullish breakout, a golden cross is a technical chart pattern that's formed when a stock's short-term moving average breaks above a longer-term moving average; the most common crossover involves the 50-day and the 200-day, since bigger time periods tend to form stronger breakouts. From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. | TWLO recently experienced a "golden cross" event, which saw its 50-day simple moving average breaking out above its 200-day simple moving average. Considered an important signifier for a bullish breakout, a golden cross is a technical chart pattern that's formed when a stock's short-term moving average breaks above a longer-term moving average; the most common crossover involves the 50-day and the 200-day, since bigger time periods tend to form stronger breakouts. Be First to New Top 10 Stocks >> Want the latest recommendations from Zacks Investment Research? | f2abdc23-f46d-4cca-b8ce-48e0389911d9 |
710367.0 | 2023-12-16 22:00:00 UTC | MGM Resorts' (MGM) BetMGM, NHL Extend Multi-Year Partnership | DCOMP | https://www.nasdaq.com/articles/mgm-resorts-mgm-betmgm-nhl-extend-multi-year-partnership | nan | nan | MGM Resorts International’s MGM sports betting and iGaming operator, BetMGM, and National Hockey League (“NHL”) announced the extension of a North American multi-year partnership.
As part of the collaboration, BetMGM will continue as an official sports betting and gaming partner and create specialized VIP fan experiences. Also, it will utilize NHL picturing to design teams as well as league-branded casino games.
BetMGM will be featured on nationally televised broadcasts during which it will encounter significant branding in the United States. The branding will comprise its camera-visible signage during NHL’s games, highlights through Digitally Enhanced Dasherboards, the League's advanced approach to dynamic dasherboard advertising and virtual slot in-ice ads.
The company has optimistic views on the partnership extension as it believes this will enhance BetMGM’s product portfolio and enable it to offer its customers top-tier live experiences and new content.
Online Gaming Spurs Growth
Sports betting and iGaming serve as the primary growth driver of MGM Resorts. The company’s continuous focus on sports betting expansion has determined the increase in market share gains by BetMGM.
MGM’s continuous investment in additional markets to drive growth bodes well. MGM Resorts and Entain anticipate investing approximately $150 million in 2023. Meanwhile, MGM Resorts’ BetMGM announced that it has partnered with Gila River Hotels & Casinos and the Arizona Cardinals to expand its retail and online sports betting.
Given the positive market momentum coupled with its unique and unparalleled online and offline offerings, MGM remains well on track to achieve the long-term growth of BetMGM with revenue expectations of $1.8-$2 billion in 2023. The company is confident about the improved design and functionality of the BetMGM app launch (of a single wallet) and omnichannel growth prospects. BetMGM has a long-term growth target of 20% to 25% in U.S. sports betting and iGaming.
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Owing to these tailwinds, shares of MGM increased 4.8% in the past six months against the Zacks Gaming industry’s 2.2% decline.
Zacks Rank & Key Picks
MGM currently carries a Zacks Rank #3 (Hold).
Here are some better-ranked stocks from the Zacks Consumer Discretionary sector.
Royal Caribbean Cruises Ltd. RCL sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.
It has a trailing four-quarter earnings surprise of 28.3%, on average. The stock has surged 139.1% in the past year. The Zacks Consensus Estimate for RCL’s 2023 sales and earnings per share (EPS) suggests rises of 57.7% and 187.9%, respectively, from the year-ago period’s levels.
Live Nation Entertainment, Inc. LYV currently sports a Zacks Rank of 1. It has a trailing four-quarter earnings surprise of 37.5%, on average. The stock has gained 34.2% in the past year.
The Zacks Consensus Estimate for LYV’s 2023 sales and EPS indicates a 29.5% and 132.8% rise, respectively, from the year-ago period’s levels.
Grand Canyon Education, Inc. LOPE currently sports a Zacks Rank of 1. It has a trailing four-quarter earnings surprise of 9.9%, on average. The stock has increased 29.2% in the past year.
The Zacks Consensus Estimate for LOPE’s 2023 sales and EPS suggests an improvement of 7.1% and 17.1%, respectively, from the year-ago period’s levels.
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
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Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report
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Live Nation Entertainment, Inc. (LYV) : Free Stock Analysis Report
Grand Canyon Education, Inc. (LOPE) : Free Stock Analysis Report
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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. | The company has optimistic views on the partnership extension as it believes this will enhance BetMGM’s product portfolio and enable it to offer its customers top-tier live experiences and new content. Meanwhile, MGM Resorts’ BetMGM announced that it has partnered with Gila River Hotels & Casinos and the Arizona Cardinals to expand its retail and online sports betting. Given the positive market momentum coupled with its unique and unparalleled online and offline offerings, MGM remains well on track to achieve the long-term growth of BetMGM with revenue expectations of $1.8-$2 billion in 2023. | MGM Resorts International’s MGM sports betting and iGaming operator, BetMGM, and National Hockey League (“NHL”) announced the extension of a North American multi-year partnership. The Zacks Consensus Estimate for RCL’s 2023 sales and earnings per share (EPS) suggests rises of 57.7% and 187.9%, respectively, from the year-ago period’s levels. Click to get this free report Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report MGM Resorts International (MGM) : Free Stock Analysis Report Live Nation Entertainment, Inc. (LYV) : Free Stock Analysis Report Grand Canyon Education, Inc. (LOPE) : Free Stock Analysis Report To read this article on Zacks.com click here. | MGM Resorts International’s MGM sports betting and iGaming operator, BetMGM, and National Hockey League (“NHL”) announced the extension of a North American multi-year partnership. Image Source: Zacks Investment Research Owing to these tailwinds, shares of MGM increased 4.8% in the past six months against the Zacks Gaming industry’s 2.2% decline. Click to get this free report Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report MGM Resorts International (MGM) : Free Stock Analysis Report Live Nation Entertainment, Inc. (LYV) : Free Stock Analysis Report Grand Canyon Education, Inc. (LOPE) : Free Stock Analysis Report To read this article on Zacks.com click here. | MGM Resorts International’s MGM sports betting and iGaming operator, BetMGM, and National Hockey League (“NHL”) announced the extension of a North American multi-year partnership. The Zacks Consensus Estimate for RCL’s 2023 sales and earnings per share (EPS) suggests rises of 57.7% and 187.9%, respectively, from the year-ago period’s levels. Live Nation Entertainment, Inc. LYV currently sports a Zacks Rank of 1. | 88d6023c-9933-470a-90b8-d4e62bc4c51c |
710368.0 | 2023-12-16 22:00:00 UTC | Does Morphic Holding, Inc. (MORF) Have the Potential to Rally 92.88% as Wall Street Analysts Expect? | DCOMP | https://www.nasdaq.com/articles/does-morphic-holding-inc.-morf-have-the-potential-to-rally-92.88-as-wall-street-analysts | nan | nan | Morphic Holding, Inc. (MORF) closed the last trading session at $29.36, gaining 26.6% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $56.63 indicates a 92.9% upside potential.
The mean estimate comprises eight short-term price targets with a standard deviation of $17.68. While the lowest estimate of $27 indicates an 8% decline from the current price level, the most optimistic analyst expects the stock to surge 172.5% to reach $80. It's very important to note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.
While the consensus price target is highly sought after by investors, the ability and unbiasedness of analysts in setting price targets have long been questionable. And investors making investment decisions solely based on this tool would arguably do themselves a disservice.
But, for MORF, an impressive average price target is not the only indicator of a potential upside. Strong agreement among analysts about the company's ability to report better earnings than they predicted earlier strengthens this view. While a positive trend in earnings estimate revisions doesn't gauge how much a stock could gain, it has proven to be powerful in predicting an upside.
Here's What You Should Know About Analysts' Price Targets
According to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.
While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?
They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.
However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.
That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.
Why MORF Could Witness a Solid Upside
There has been increasing optimism among analysts lately about the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher. And that could be a legitimate reason to expect an upside in the stock. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current year, one estimate has moved higher over the last 30 days compared to no negative revision. As a result, the Zacks Consensus Estimate has increased 2.3%.
Moreover, MORF currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than the 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, while the consensus price target may not be a reliable indicator of how much MORF could gain, the direction of price movement it implies does appear to be a good guide.
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
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Morphic Holding, Inc. (MORF) : Free Stock Analysis Report
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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. | Morphic Holding, Inc. (MORF) closed the last trading session at $29.36, gaining 26.6% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces. | That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Click to get this free report Morphic Holding, Inc. (MORF) : Free Stock Analysis Report To read this article on Zacks.com click here. | Here's What You Should Know About Analysts' Price Targets According to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Therefore, while the consensus price target may not be a reliable indicator of how much MORF could gain, the direction of price movement it implies does appear to be a good guide. | The mean price target of $56.63 indicates a 92.9% upside potential. While the consensus price target is highly sought after by investors, the ability and unbiasedness of analysts in setting price targets have long been questionable. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Therefore, while the consensus price target may not be a reliable indicator of how much MORF could gain, the direction of price movement it implies does appear to be a good guide. | 85849042-7c60-481d-9c9a-543755e3b256 |
710369.0 | 2023-12-16 22:00:00 UTC | Are Investors Undervaluing Stellantis (STLA) Right Now? | DCOMP | https://www.nasdaq.com/articles/are-investors-undervaluing-stellantis-stla-right-now-4 | nan | nan | The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company value investors might notice is Stellantis (STLA). STLA is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock has a Forward P/E ratio of 4.10. This compares to its industry's average Forward P/E of 8.87. Over the last 12 months, STLA's Forward P/E has been as high as 4.28 and as low as 2.79, with a median of 3.53.
We should also highlight that STLA has a P/B ratio of 0.87. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 1.37. STLA's P/B has been as high as 0.88 and as low as 0.58, with a median of 0.70, over the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Stellantis is likely undervalued currently. And when considering the strength of its earnings outlook, STLA sticks out at as one of the market's strongest value stocks.
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
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Stellantis N.V. (STLA) : Free Stock Analysis Report
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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. | Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels. Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. | The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now. Click to get this free report Stellantis N.V. (STLA) : Free Stock Analysis Report To read this article on Zacks.com click here. | The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now. Click to get this free report Stellantis N.V. (STLA) : Free Stock Analysis Report To read this article on Zacks.com click here. | One company value investors might notice is Stellantis (STLA). This compares to its industry's average Forward P/E of 8.87. Be First to New Top 10 Stocks >> Want the latest recommendations from Zacks Investment Research? | 93c66b04-d7ed-40c0-964c-8c61e1fb5107 |
710370.0 | 2023-12-16 22:00:00 UTC | Should Value Investors Buy Flex (FLEX) Stock? | DCOMP | https://www.nasdaq.com/articles/should-value-investors-buy-flex-flex-stock-3 | nan | nan | Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
Flex (FLEX) is a stock many investors are watching right now. FLEX is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 9.87. This compares to its industry's average Forward P/E of 16.58. Over the past year, FLEX's Forward P/E has been as high as 11.41 and as low as 8.10, with a median of 9.81.
Investors will also notice that FLEX has a PEG ratio of 0.80. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. FLEX's PEG compares to its industry's average PEG of 1.81. FLEX's PEG has been as high as 1.09 and as low as 0.61, with a median of 0.78, all within the past year.
Investors should also recognize that FLEX has a P/B ratio of 1.96. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 4.15. Over the past year, FLEX's P/B has been as high as 2.47 and as low as 1.56, with a median of 2.06.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. FLEX has a P/S ratio of 0.43. This compares to its industry's average P/S of 0.92.
Finally, our model also underscores that FLEX has a P/CF ratio of 9.89. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 19.10. Over the past 52 weeks, FLEX's P/CF has been as high as 10.08 and as low as 6.98, with a median of 8.85.
Investors could also keep in mind Spectris (SEPJY), an Electronics - Miscellaneous Products stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Additionally, Spectris has a P/B ratio of 2.13 while its industry's price-to-book ratio sits at 4.15. For SEPJY, this valuation metric has been as high as 2.87, as low as 2.04, with a median of 2.35 over the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Flex and Spectris are likely undervalued currently. And when considering the strength of its earnings outlook, FLEX and SEPJY sticks out as one of the market's strongest value stocks.
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
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Flex Ltd. (FLEX) : Free Stock Analysis Report
Spectris (SEPJY) : 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. | Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large. On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. | Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. FLEX's PEG compares to its industry's average PEG of 1.81. Click to get this free report Flex Ltd. (FLEX) : Free Stock Analysis Report Spectris (SEPJY) : Free Stock Analysis Report To read this article on Zacks.com click here. | Flex (FLEX) is a stock many investors are watching right now. Investors could also keep in mind Spectris (SEPJY), an Electronics - Miscellaneous Products stock with a Zacks Rank of # 2 (Buy) and Value grade of A. Additionally, Spectris has a P/B ratio of 2.13 while its industry's price-to-book ratio sits at 4.15. Click to get this free report Flex Ltd. (FLEX) : Free Stock Analysis Report Spectris (SEPJY) : Free Stock Analysis Report To read this article on Zacks.com click here. | Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today. FLEX has a P/S ratio of 0.43. Be First to New Top 10 Stocks >> Want the latest recommendations from Zacks Investment Research? | 4f6092f7-8269-4001-ab5a-3bb0adea01d8 |
710371.0 | 2023-12-16 22:00:00 UTC | Is Potbelly (PBPB) Stock Undervalued Right Now? | DCOMP | https://www.nasdaq.com/articles/is-potbelly-pbpb-stock-undervalued-right-now | nan | nan | While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is Potbelly (PBPB). PBPB is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. PBPB has a P/S ratio of 0.61. This compares to its industry's average P/S of 1.02.
Finally, investors will want to recognize that PBPB has a P/CF ratio of 16.59. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 17.63. Over the past 52 weeks, PBPB's P/CF has been as high as 18.56 and as low as 9.59, with a median of 12.83.
Carrols Restaurant Group (TAST) may be another strong Retail - Restaurants stock to add to your shortlist. TAST is a # 1 (Strong Buy) stock with a Value grade of A.
Additionally, Carrols Restaurant Group has a P/B ratio of 2.19 while its industry's price-to-book ratio sits at -27.70. For TAST, this valuation metric has been as high as 2.47, as low as 0.43, with a median of 1.72 over the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Potbelly and Carrols Restaurant Group are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, PBPB and TAST feels like a great value stock at the moment.
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
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Potbelly Corporation (PBPB) : Free Stock Analysis Report
Carrols Restaurant Group, Inc. (TAST) : Free Stock Analysis Report
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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. | In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. These figures are just a handful of the metrics value investors tend to look at, but they help show that Potbelly and Carrols Restaurant Group are likely being undervalued right now. From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. | Carrols Restaurant Group (TAST) may be another strong Retail - Restaurants stock to add to your shortlist. TAST is a # 1 (Strong Buy) stock with a Value grade of A. Additionally, Carrols Restaurant Group has a P/B ratio of 2.19 while its industry's price-to-book ratio sits at -27.70. Click to get this free report Potbelly Corporation (PBPB) : Free Stock Analysis Report Carrols Restaurant Group, Inc. (TAST) : Free Stock Analysis Report To read this article on Zacks.com click here. | Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment. TAST is a # 1 (Strong Buy) stock with a Value grade of A. Additionally, Carrols Restaurant Group has a P/B ratio of 2.19 while its industry's price-to-book ratio sits at -27.70. Click to get this free report Potbelly Corporation (PBPB) : Free Stock Analysis Report Carrols Restaurant Group, Inc. (TAST) : Free Stock Analysis Report To read this article on Zacks.com click here. | Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment. TAST is a # 1 (Strong Buy) stock with a Value grade of A. Additionally, Carrols Restaurant Group has a P/B ratio of 2.19 while its industry's price-to-book ratio sits at -27.70. Be First to New Top 10 Stocks >> Want the latest recommendations from Zacks Investment Research? | 65d42cf3-d87f-4c34-bc96-797871c78e0b |
710372.0 | 2023-12-16 22:00:00 UTC | Do Options Traders Know Something About iHeartMedia (IHRT) Stock We Don't? | DCOMP | https://www.nasdaq.com/articles/do-options-traders-know-something-about-iheartmedia-ihrt-stock-we-dont | nan | nan | Investors in iHeartMedia, Inc. IHRT need to pay close attention to the stock based on moves in the options market lately. That is because the Jan 19, 2024 $17.50 Call had some of the highest implied volatility of all equity options today.
What is Implied Volatility?
Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
What do the Analysts Think?
Clearly, options traders are pricing in a big move for iHeartMedia shares, but what is the fundamental picture for the company? Currently, iHeartMedia is a Zacks Rank #4 (Sell) in the Broadcast Radio and Television industry that ranks in the Bottom 39% of our Zacks Industry Rank. Over the last 60 days, no analysts have increased the earnings estimates for the current quarter, while four have revised the estimates downward. The net effect has taken our Zacks Consensus Estimate for the current quarter from 36 cents per share to 5 cents in that period.
Given the way analysts feel iHeartMedia right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.
Looking to Trade Options?
Check out the simple yet high-powered approach that Zacks Executive VP Kevin Matras has used to close recent double and triple-digit winners. In addition to impressive profit potential, these trades can actually reduce your risk.
Click to see the trades now >>
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
Be First to New Top 10 Stocks >>
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
iHeartMedia, Inc. (IHRT) : Free Stock Analysis Report
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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. | Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. Check out the simple yet high-powered approach that Zacks Executive VP Kevin Matras has used to close recent double and triple-digit winners. From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. | Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. Click to get this free report iHeartMedia, Inc. (IHRT) : Free Stock Analysis Report To read this article on Zacks.com click here. | Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. Given the way analysts feel iHeartMedia right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. | Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. Over the last 60 days, no analysts have increased the earnings estimates for the current quarter, while four have revised the estimates downward. Looking to Trade Options? | 40418e94-d880-41e3-91a3-df92cc2596ba |
710373.0 | 2023-12-16 22:00:00 UTC | 3 Stocks You'll Be Glad You Bought at These Prices | DCOMP | https://www.nasdaq.com/articles/3-stocks-youll-be-glad-you-bought-at-these-prices-8 | nan | nan | As the year winds down and we're getting ready to celebrate the holidays, looking back at the stock market's rebound will undoubtedly bring extra joy to investors' faces. The S&P 500 rose by nearly 23% this year after dropping by more than 19% in 2022. Still, this doesn't mean all stocks rose in unison.
But these three stocks have underperformed the overall market. Of course, that alone doesn't make them worthy of purchase. Let's uncover why I think these stocks will put a smile on your face for many holiday seasons to come.
Image source: Getty Images.
1. Realty Income
Realty Income (NYSE: O) has severely underperformed the stock market this year. The shares have slipped 5.2% compared to a 24.9% gain for the S&P 500. Nonetheless, this real estate investment trust (REIT), which must pay out at least 90% of its taxable income as dividends, remains a strong choice for income-oriented investors.
Realty Income collects about 83% of its rent from retail tenants. That may cause some angst, given the threat from online shopping. But management carefully assesses the situation, renting to companies with a strong omnichannel presence or minimal online competition. These include grocery, dollar, convenience, drug, and home improvement stores.
Plus, the company's announced $9.3 billion purchase of Spirit Realty Capital (NYSE: SRC) will expand and diversify its real estate holdings.
Meanwhile, its existing portfolio has been performing well. Occupancy remains high, at 98.8% in the most recent quarter. And it was able to get a 6.9% boost on payments for expiring leases.
Realty Income, which pays dividends monthly, has raised them multiple times for more than 25 years. This includes the board of directors' recent decision to increase January's payment from $0.256 to $0.2565. The shares currently offer a 5.4% dividend yield, versus 1.5% for the S&P 500.
2. Etsy
Etsy (NASDAQ: ETSY), founded nearly 20 years ago, gained popularity during the early days of the pandemic when many people stayed home. The stock exploded in 2020, rising by more than 300%. Since then, the shares have dropped by about 55%.
But the online marketplace, which connects makers of creative goods with buyers, has executed well this year. The Etsy site grew active buyers by 4% to 92 million. Gross merchandise sales were flat, but management largely attributed this to an overall economy that saw people affected by higher prices. Now that inflation has abated, I think this will improve.
During the quarter, Etsy's top line rose by 7% to $636.3 million. It's difficult to compare earnings, since the company took a $1 billion impairment charge a year ago. However, adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) increased by 8.6% to $182.2 million.
The stock, with a price-to-sales (P/S) ratio of 4.1, trades at a more attractive valuation. Earlier this year, the P/S multiple was about 8.
3. Target
Target (NYSE: TGT) has made some missteps that included holding too much inventory in the discretionary merchandise category. Investors punished the retailer's stock, which has fallen by over 7% this year.
However, management has taken steps to address the issue, including discounting inventory to clear the shelves of unwanted items and stock up on everyday items. In its fiscal third quarter, which ended on Oct. 28, inventory was 14% lower than last year. And while discretionary categories (like apparel and home furnishings) continue to struggle, Target's frequency categories (like beauty, household essentials, food, and beverage) have been doing well.
The better inventory position has led to an improved margin. Target's gross margin went from 24.7% to 27.4%, and its operating margin expanded by 1.3 percentage points to 5.2%.
Same-store sales have been under pressure this year, dropping by 4.9% in the quarter. However, I think that will improve, as a better economic environment will lead to higher discretionary spending. Target's stock sells at a price-to-earnings (P/E) ratio of 18, compared to over 30 earlier this year.
These three stocks offer compelling opportunities. Realty Income should appeal to income investors. Etsy sells at a more reasonable valuation while continuing to grow its business. And Target, after missteps, has moved to improve its inventory and margin, and sales growth should follow from a healthier consumer.
Should you invest $1,000 in Realty Income right now?
Before you buy stock in Realty Income, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Realty Income wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
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Lawrence Rothman, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Etsy, Realty Income, and Target. 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. | As the year winds down and we're getting ready to celebrate the holidays, looking back at the stock market's rebound will undoubtedly bring extra joy to investors' faces. Nonetheless, this real estate investment trust (REIT), which must pay out at least 90% of its taxable income as dividends, remains a strong choice for income-oriented investors. Plus, the company's announced $9.3 billion purchase of Spirit Realty Capital (NYSE: SRC) will expand and diversify its real estate holdings. | Realty Income Realty Income (NYSE: O) has severely underperformed the stock market this year. Target Target (NYSE: TGT) has made some missteps that included holding too much inventory in the discretionary merchandise category. Before you buy stock in Realty Income, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Realty Income wasn't one of them. | Realty Income Realty Income (NYSE: O) has severely underperformed the stock market this year. Before you buy stock in Realty Income, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Realty Income wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Lawrence Rothman, CFA has no position in any of the stocks mentioned. | The better inventory position has led to an improved margin. Before you buy stock in Realty Income, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Realty Income wasn't one of them. The Motley Fool has positions in and recommends Etsy, Realty Income, and Target. | e9d4b235-863c-4998-81fd-670f98cdeb7d |
710374.0 | 2023-12-16 22:00:00 UTC | RMR Group (RMR) Expands Reach With the CARROLL Acquisition | DCOMP | https://www.nasdaq.com/articles/rmr-group-rmr-expands-reach-with-the-carroll-acquisition | nan | nan | The RMR Group RMR recently completed a strategic move that positions it for substantial growth and enhanced diversification within the commercial real estate (CRE) sector. The acquisition of MPC Partnership Holdings, LLC, operating under the name CARROLL, represents a significant milestone for RMR, expanding its expertise and private capital assets under management (AUM) in the multifamily CRE space.
The acquisition, which was announced on Jul 31, 2023, underscores RMR's commitment to executing a growth strategy that leverages its robust balance sheet. The $80 million all-cash acquisition brings CARROLL to the RMR fold, marking the entrance into multifamily real estate — the only major property sector where RMR previously did not have a substantial presence.
Adam Portnoy, the president and CEO of RMR, expressed enthusiasm about the acquisition, stating, “With the CARROLL acquisition, RMR was able to implement our growth strategy of leveraging our strong balance sheet to make strategic acquisitions. Today, we acquired a vertically integrated organization that expands our scale, diversifies our platform, substantially increases our private capital assets under management, and is financially accretive.”
The CARROLL acquisition enhances RMR's multifamily platform, adding a vertically integrated organization with a proven track record. By absorbing CARROLL's expertise, RMR gains access to a talented team and a portfolio that aligns seamlessly with the company's overarching goals. This move positions RMR as a formidable player in the multifamily real estate sector, a market segment known for its resilience and growth potential.
This $80 million cash transaction is subject to customary purchase price adjustments, with the potential for incremental earnout consideration of up to $20 million based on the deployment of the remaining capital commitments of the existing CARROLL investment funds.
RMR's financial strength is underscored by the fact that, even after the completion of the CARROLL acquisition, the company retains more than $200 million in cash with no outstanding debt. This robust financial position empowers RMR to explore further growth opportunities, reinforcing its commitment to delivering value to shareholders.
With a strengthened platform, expanded private capital AUM and a solid financial foundation, RMR is well-poised for continued success in a dynamic and competitive market. This alternative asset management company, with a unique focus on commercial real estate and related businesses, manages around $36 billion in assets.
Shares of this Zacks Rank #3 (Hold) company have rallied 16.1% in the past month, outperforming the industry’s growth of 12.9%.
Image Source: Zacks Investment Research
A Stock to Consider
A better-ranked stock from the broader real estate sector is Legacy Housing Corporation LEGH, which carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Legacy Housing Corporation’s 2023 earnings per share has moved 5.7% upward in the past two months to $2.59.
Note: Anything related to earnings presented in this write-up represents FFO — a widely used metric to gauge the performance of REITs.
Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
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The RMR Group Inc. (RMR) : Free Stock Analysis Report
Legacy Housing Corporation (LEGH) : Free Stock Analysis Report
To read this article on Zacks.com click here.
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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. | The acquisition of MPC Partnership Holdings, LLC, operating under the name CARROLL, represents a significant milestone for RMR, expanding its expertise and private capital assets under management (AUM) in the multifamily CRE space. Today, we acquired a vertically integrated organization that expands our scale, diversifies our platform, substantially increases our private capital assets under management, and is financially accretive.” With a strengthened platform, expanded private capital AUM and a solid financial foundation, RMR is well-poised for continued success in a dynamic and competitive market. | The RMR Group RMR recently completed a strategic move that positions it for substantial growth and enhanced diversification within the commercial real estate (CRE) sector. The CARROLL acquisition enhances RMR's multifamily platform, adding a vertically integrated organization with a proven track record. Click to get this free report The RMR Group Inc. (RMR) : Free Stock Analysis Report Legacy Housing Corporation (LEGH) : Free Stock Analysis Report To read this article on Zacks.com click here. | Adam Portnoy, the president and CEO of RMR, expressed enthusiasm about the acquisition, stating, “With the CARROLL acquisition, RMR was able to implement our growth strategy of leveraging our strong balance sheet to make strategic acquisitions. Image Source: Zacks Investment Research A Stock to Consider A better-ranked stock from the broader real estate sector is Legacy Housing Corporation LEGH, which carries a Zacks Rank #2 (Buy) at present. Click to get this free report The RMR Group Inc. (RMR) : Free Stock Analysis Report Legacy Housing Corporation (LEGH) : Free Stock Analysis Report To read this article on Zacks.com click here. | The RMR Group RMR recently completed a strategic move that positions it for substantial growth and enhanced diversification within the commercial real estate (CRE) sector. Image Source: Zacks Investment Research A Stock to Consider A better-ranked stock from the broader real estate sector is Legacy Housing Corporation LEGH, which carries a Zacks Rank #2 (Buy) at present. From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. | deb8c1e1-f4dc-4f8d-b7ea-39b71b4546f0 |
710375.0 | 2023-12-16 22:00:00 UTC | New Investor? Buy These 2 Growth Stocks | DCOMP | https://www.nasdaq.com/articles/new-investor-buy-these-2-growth-stocks-10 | nan | nan | Investing is not an easy task, and it can take years of effort and experimentation before you feel comfortable doing it. That's why new investors shouldn't jump in with both feet. Instead, take it slowly while you learn by doing (and hopefully by reading a few investment classics along the way, like Benjamin Graham's The Intelligent Investor).
A good starting place is to buy the stocks of companies you know because you regularly use their products and services, such as Costco Wholesale (NASDAQ: COST) and Procter & Gamble (NYSE: PG).
Don't get in over your head
It can be very easy to get caught up in the emotional side of Wall Street. That might have you chasing dangerous fads, like the meme stocks that blew up not too long ago. Or maybe today you'll be attracted to anything with an artificial intelligence angle even though there's no way to tell who the real winners will be just yet.
The point is, humans are fallible and particularly prone to greed and fear. If you are just starting out as an investor, you want to limit the risk you pose to yourself.
Image source: Getty Images.
A great book to get your feet wet on the topic of the emotional mistakes you will likely make is The Little Book of Behavioral Investing. It's a quick read that covers a lot of ground, but you are almost certain to see your own mistakes reflected in many of the chapters.
Another good way to limit potential risk is to stick with a small number of stocks from companies you know. Some of the best options are probably sitting in plain sight, like retailers and consumer staples companies. In this way, you will have a better handle on the company's business, and you can keep tabs on it simply by living your daily life.
Costco and P&G are two stocks you might want to consider since they both have a growth bias to them. (To get a bit of background on growth investing, consider Philip Fisher's iconic book Common Stocks and Uncommon Profits). Here is a quick look at these two companies.
Costco's all about the membership fees
As a club store, Costco is a bit different from most retailers because its customers pay a fee for the privilege of shopping there. This is a huge point of differentiation. Essentially, the membership fees provide a revenue source that supports Costco's profits and allows it to be more aggressive with its low-price ethos. That, in turn, keeps customers happily coming back and paying the annual dues each year. The more stores it opens, the more membership fees it collects, so store growth is also really important for the global retailer.
Some numbers will help. In the first quarter of its fiscal 2024, Costco posted revenue of $57.8 billion. The products it sold cost the company $50.5 billion, and selling, general, and administrative expenses tallied up to roughly $5.4 billion. In the end, the company's gross profit was a touch under $2 billion. But here's the interesting thing: Membership fees made up $1.1 billion of the company's revenue line and, thus, more than half of the gross profit. That's how important membership fees are to the company and why it works so hard to keep customer costs low.
Costco's stock is very rarely cheap. And it isn't cheap today. But it has a great track record of success behind it and is a wonderful way to learn while you invest. Given enough time, and new store openings (nine new stores were opened in Q1 alone), even paying a high price for the stock has historically worked out well for long-term growth investors.
Procter & Gamble is big on innovation
While shopping at Costco, you might buy one of Procter & Gamble's products, sold under iconic name brands like Bounty, Crest, and Swiffer. That last brand is important because the product category that it dominates didn't even exist until P&G created it. It is an example of how the company uses research and development to create innovative new products and product advances. Nothing gets customers' blood flowing like the words "new" and "improved." And that's exactly what P&G tries to offer again and again.
That's important because most of the products it sells are cash cows that have been around for a very long time (like toothpaste). The only way to differentiate a brand is by offering more value in some way. Many companies compete on price (selling products as cheaply as possible). P&G competes at the other end of the spectrum, charging premium prices for demonstrably better products.
Add in the industry giant's marketing and distribution strength, and it is a favorite of both retailers and end consumers. It isn't likely to grow as quickly as Costco, but slow and steady has been the long-term trend for decades.
Unlike Costco, however, P&G appears reasonably priced right now given that key valuation metrics, like price to sales and price to earnings, are below their five-year averages. But the extra attraction here for a new investor is that you can own a well-run growth company that is easy to understand and track.
Start small and build from there
Costco and P&G aren't perfect by any means. Note that neither is trading at bargain prices. It wouldn't be wise to "bet the farm" on either of them. But as a new investor, you'll want to stick with companies you know as you learn. These two industry bellwethers fit that bill, and they are historically well-run, too.
Once you build a little knowledge, hopefully by using the lessons of investors who have come before you (such as in the three books mentioned above), you can reach beyond this easy-to-understand-and-track pair and start swimming in the deeper end of the pool.
Should you invest $1,000 in Costco Wholesale right now?
Before you buy stock in Costco Wholesale, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Costco Wholesale wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of the S&P 500 since 2002*.
See the 10 stocks
*Stock Advisor returns as of December 18, 2023
Reuben Gregg Brewer has positions in Procter & Gamble. The Motley Fool has positions in and recommends Costco Wholesale. 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. | A good starting place is to buy the stocks of companies you know because you regularly use their products and services, such as Costco Wholesale (NASDAQ: COST) and Procter & Gamble (NYSE: PG). (To get a bit of background on growth investing, consider Philip Fisher's iconic book Common Stocks and Uncommon Profits). Once you build a little knowledge, hopefully by using the lessons of investors who have come before you (such as in the three books mentioned above), you can reach beyond this easy-to-understand-and-track pair and start swimming in the deeper end of the pool. | Given enough time, and new store openings (nine new stores were opened in Q1 alone), even paying a high price for the stock has historically worked out well for long-term growth investors. Procter & Gamble is big on innovation While shopping at Costco, you might buy one of Procter & Gamble's products, sold under iconic name brands like Bounty, Crest, and Swiffer. Before you buy stock in Costco Wholesale, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Costco Wholesale wasn't one of them. | A good starting place is to buy the stocks of companies you know because you regularly use their products and services, such as Costco Wholesale (NASDAQ: COST) and Procter & Gamble (NYSE: PG). Costco's all about the membership fees As a club store, Costco is a bit different from most retailers because its customers pay a fee for the privilege of shopping there. Before you buy stock in Costco Wholesale, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Costco Wholesale wasn't one of them. | But the extra attraction here for a new investor is that you can own a well-run growth company that is easy to understand and track. Should you invest $1,000 in Costco Wholesale right now? Before you buy stock in Costco Wholesale, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Costco Wholesale wasn't one of them. | 37ac8ca0-6664-4a81-a56c-5ea370d4597a |
710376.0 | 2023-12-16 22:00:00 UTC | Bears are Losing Control Over Enveric Biosciences, Inc. (ENVB), Here's Why It's a 'Buy' Now | DCOMP | https://www.nasdaq.com/articles/bears-are-losing-control-over-enveric-biosciences-inc.-envb-heres-why-its-a-buy-now | nan | nan | A downtrend has been apparent in Enveric Biosciences, Inc. (ENVB) lately. While the stock has lost 7.8% over the past two weeks, it could witness a trend reversal as a hammer chart pattern was formed in its last trading session. This could mean that the bulls have been able to counteract the bears to help the stock find support.
The formation of a hammer pattern is considered a technical indication of nearing a bottom with likely subsiding of selling pressure. But this is not the only factor that makes a bullish case for the stock. On the fundamental side, strong agreement among Wall Street analysts in raising earnings estimates for this company enhances its prospects of a trend reversal.
Understanding Hammer Chart and the Technique to Trade It
This is one of the popular price patterns in candlestick charting. A minor difference between the opening and closing prices forms a small candle body, and a higher difference between the low of the day and the open or close forms a long lower wick (or vertical line). The length of the lower wick being at least twice the length of the real body, the candle resembles a 'hammer.'
In simple terms, during a downtrend, with bears having absolute control, a stock usually opens lower compared to the previous day's close, and again closes lower. On the day the hammer pattern is formed, maintaining the downtrend, the stock makes a new low. However, after eventually finding support at the low of the day, some amount of buying interest emerges, pushing the stock up to close the session near or slightly above its opening price.
When it occurs at the bottom of a downtrend, this pattern signals that the bears might have lost control over the price. And, the success of bulls in stopping the price from falling further indicates a potential trend reversal.
Hammer candles can occur on any timeframe -- such as one-minute, daily, weekly -- and are utilized by both short-term as well as long-term investors.
Like every technical indicator, the hammer chart pattern has its limitations. Particularly, as the strength of a hammer depends on its placement on the chart, it should always be used in conjunction with other bullish indicators.
Here's What Increases the Odds of a Turnaround for ENVB
There has been an upward trend in earnings estimate revisions for ENVB lately, which can certainly be considered a bullish indicator on the fundamental side. That's because a positive trend in earnings estimate revisions usually translates into price appreciation in the near term.
The consensus EPS estimate for the current year has increased 3.3% over the last 30 days. This means that the Wall Street analysts covering ENVB are majorly in agreement about the company's potential to report better earnings than what they predicted earlier.
If this is not enough, you should note that ENVB currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than the 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises. And stocks carrying a Zacks Rank #1 or 2 usually outperform the market. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Moreover, a Zacks Rank of 2 for Enveric Biosciences, Inc. is a more conclusive indication of a potential trend reversal, as the Zacks Rank has proven to be an excellent timing indicator that helps investors identify precisely when a company's prospects are beginning to improve.
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
Be First to New Top 10 Stocks >>
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
Enveric Biosciences, Inc. (ENVB) : Free Stock Analysis Report
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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. | On the fundamental side, strong agreement among Wall Street analysts in raising earnings estimates for this company enhances its prospects of a trend reversal. However, after eventually finding support at the low of the day, some amount of buying interest emerges, pushing the stock up to close the session near or slightly above its opening price. This means that the Wall Street analysts covering ENVB are majorly in agreement about the company's potential to report better earnings than what they predicted earlier. | On the fundamental side, strong agreement among Wall Street analysts in raising earnings estimates for this company enhances its prospects of a trend reversal. A minor difference between the opening and closing prices forms a small candle body, and a higher difference between the low of the day and the open or close forms a long lower wick (or vertical line). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Moreover, a Zacks Rank of 2 for Enveric Biosciences, Inc. is a more conclusive indication of a potential trend reversal, as the Zacks Rank has proven to be an excellent timing indicator that helps investors identify precisely when a company's prospects are beginning to improve. | While the stock has lost 7.8% over the past two weeks, it could witness a trend reversal as a hammer chart pattern was formed in its last trading session. If this is not enough, you should note that ENVB currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than the 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Moreover, a Zacks Rank of 2 for Enveric Biosciences, Inc. is a more conclusive indication of a potential trend reversal, as the Zacks Rank has proven to be an excellent timing indicator that helps investors identify precisely when a company's prospects are beginning to improve. | On the day the hammer pattern is formed, maintaining the downtrend, the stock makes a new low. Here's What Increases the Odds of a Turnaround for ENVB There has been an upward trend in earnings estimate revisions for ENVB lately, which can certainly be considered a bullish indicator on the fundamental side. If this is not enough, you should note that ENVB currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than the 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises. | ad00b0ff-ae6e-4463-9a21-57bdb8db8a65 |
710377.0 | 2023-12-16 22:00:00 UTC | Should Value Investors Buy Willdan Group (WLDN) Stock? | DCOMP | https://www.nasdaq.com/articles/should-value-investors-buy-willdan-group-wldn-stock | nan | nan | The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company value investors might notice is Willdan Group (WLDN). WLDN is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 13.08. This compares to its industry's average Forward P/E of 21.06. Over the last 12 months, WLDN's Forward P/E has been as high as 22.46 and as low as 11.37, with a median of 14.19.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. WLDN has a P/S ratio of 0.61. This compares to its industry's average P/S of 0.99.
Finally, investors will want to recognize that WLDN has a P/CF ratio of 13.32. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 24.22. Within the past 12 months, WLDN's P/CF has been as high as 23.08 and as low as 11.35, with a median of 13.88.
These are only a few of the key metrics included in Willdan Group's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, WLDN looks like an impressive value stock at the moment.
Zacks Naming Top 10 Stocks for 2024
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History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
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Willdan Group, Inc. (WLDN) : Free Stock Analysis Report
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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. | Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels. Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. | The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. WLDN is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. Click to get this free report Willdan Group, Inc. (WLDN) : Free Stock Analysis Report To read this article on Zacks.com click here. | The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now. Click to get this free report Willdan Group, Inc. (WLDN) : Free Stock Analysis Report To read this article on Zacks.com click here. | Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now. WLDN has a P/S ratio of 0.61. Be First to New Top 10 Stocks >> Want the latest recommendations from Zacks Investment Research? | 929c93e7-2f36-46e3-8873-690c0efca89c |
710378.0 | 2023-12-16 22:00:00 UTC | Are Investors Undervaluing Comcast (CMCSA) Right Now? | DCOMP | https://www.nasdaq.com/articles/are-investors-undervaluing-comcast-cmcsa-right-now-0 | nan | nan | While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
Comcast (CMCSA) is a stock many investors are watching right now. CMCSA is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 10.35, while its industry has an average P/E of 10.78. Over the last 12 months, CMCSA's Forward P/E has been as high as 11.59 and as low as 9.12, with a median of 10.36.
CMCSA is also sporting a PEG ratio of 0.99. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. CMCSA's industry has an average PEG of 1.07 right now. Over the last 12 months, CMCSA's PEG has been as high as 1.23 and as low as 0.70, with a median of 0.87.
Finally, our model also underscores that CMCSA has a P/CF ratio of 6.29. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 6.76. Within the past 12 months, CMCSA's P/CF has been as high as 9.56 and as low as 5.51, with a median of 8.47.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Comcast is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CMCSA feels like a great value stock at the moment.
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
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Comcast Corporation (CMCSA) : 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. | Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels. On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. | CMCSA is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. Click to get this free report Comcast Corporation (CMCSA) : 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. | While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today. | Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today. The stock holds a P/E ratio of 10.35, while its industry has an average P/E of 10.78. Be First to New Top 10 Stocks >> Want the latest recommendations from Zacks Investment Research? | 7130bad1-99df-4f39-abc4-2c8f513c2871 |
710379.0 | 2023-12-16 22:00:00 UTC | Is Globe Life (GL) a Great Value Stock Right Now? | DCOMP | https://www.nasdaq.com/articles/is-globe-life-gl-a-great-value-stock-right-now | nan | nan | While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is Globe Life (GL). GL is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 10.79 right now. For comparison, its industry sports an average P/E of 13.14. Over the past year, GL's Forward P/E has been as high as 14.89 and as low as 9.61, with a median of 10.26.
Finally, our model also underscores that GL has a P/CF ratio of 8.38. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. GL's current P/CF looks attractive when compared to its industry's average P/CF of 13.76. Over the past 52 weeks, GL's P/CF has been as high as 8.92 and as low as 7.37, with a median of 7.96.
Value investors will likely look at more than just these metrics, but the above data helps show that Globe Life is likely undervalued currently. And when considering the strength of its earnings outlook, GL sticks out at as one of the market's strongest value stocks.
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
Be First to New Top 10 Stocks >>
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
Globe Life Inc. (GL) : 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. | Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels. Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. | When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today. GL is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. Click to get this free report Globe Life Inc. (GL) : Free Stock Analysis Report To read this article on Zacks.com click here. | While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today. Click to get this free report Globe Life Inc. (GL) : Free Stock Analysis Report To read this article on Zacks.com click here. | When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today. GL is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. Be First to New Top 10 Stocks >> Want the latest recommendations from Zacks Investment Research? | 34271eac-13b2-4fb8-b8dc-ea93a65c3ddf |
710380.0 | 2023-12-16 22:00:00 UTC | Are Investors Undervaluing First Horizon (FHN) Right Now? | DCOMP | https://www.nasdaq.com/articles/are-investors-undervaluing-first-horizon-fhn-right-now | nan | nan | Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is First Horizon (FHN). FHN is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 10.07, which compares to its industry's average of 12.87. Over the past year, FHN's Forward P/E has been as high as 15.75 and as low as 5.20, with a median of 8.95.
Another valuation metric that we should highlight is FHN's P/B ratio of 0.92. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. FHN's current P/B looks attractive when compared to its industry's average P/B of 1.88. FHN's P/B has been as high as 1.81 and as low as 0.66, with a median of 0.83, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. FHN has a P/S ratio of 1.63. This compares to its industry's average P/S of 1.85.
Finally, investors should note that FHN has a P/CF ratio of 7.02. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 14.14. Within the past 12 months, FHN's P/CF has been as high as 14.68 and as low as 5.03, with a median of 6.26.
These are only a few of the key metrics included in First Horizon's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, FHN looks like an impressive value stock at the moment.
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
Be First to New Top 10 Stocks >>
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
First Horizon Corporation (FHN) : 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. | But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels. From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. | FHN is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. FHN's current P/B looks attractive when compared to its industry's average P/B of 1.88. Click to get this free report First Horizon Corporation (FHN) : Free Stock Analysis Report To read this article on Zacks.com click here. | Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now. The stock is trading with a P/E ratio of 10.07, which compares to its industry's average of 12.87. Click to get this free report First Horizon Corporation (FHN) : Free Stock Analysis Report To read this article on Zacks.com click here. | Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now. FHN has a P/S ratio of 1.63. Be First to New Top 10 Stocks >> Want the latest recommendations from Zacks Investment Research? | 0a8a35d8-6805-481b-808c-38accf59825b |
710381.0 | 2023-12-16 22:00:00 UTC | Manufacturing Sector Steadying for a 2024 Recovery: 5 Winners | DCOMP | https://www.nasdaq.com/articles/manufacturing-sector-steadying-for-a-2024-recovery%3A-5-winners | nan | nan | Manufacturing activity slowed over the past year in the United States as the nation grappled with inflation and the Federal Reserve maintained an aggressive interest rate hike policy to fight against it. However, the sector put up a great fight against the odds as demand remained high.
Now, easing inflation and high expectations of rate cuts in 2024 are likely to bolster conditions for higher manufacturing activity and output. One of the immediate signs of this was a slow but steady jump in manufacturing activity.
Production at U.S. factories rose 0.2% month over month in November, the Federal Reserve said last week. Also, manufacturing output increased 0.3% in November from a month earlier. This comes after a 0.8% decline in production at U.S. factories in October.
Also, capacity utilization inched up 0.1% point to 78.8% in November.
Last month’s jump was driven by the output of motor vehicles as strikes at major factories ended. The manufacturing sector’s mixed fortune continues amid growing interest rates that somewhat softened demand.
However, the broader economy has been expanding despite a slowdown in the manufacturing sector, which accounts for 10.2% of the economy. The U.S. GDP grew at an annual rate of 5.2% in the third quarter, which proves the underlying strength of the economy.
The Federal Reserve kept its benchmark policy rates unchanged in its December FOMC meeting in the range of 5.25-5.50% after hiking interest rates by 525 points. Investors have been optimistic lately as the Fed finally gave a clearer picture of its plans with interest rates.
Federal Reserve Chairman Jerome Powell said that he believes that interest rates may have reached the peak or near it. He added that the central bank will closely monitor inflation data so as not to keep rates higher for a longer period.
Also, a majority of the Federal Reserve believes that three rate cuts of 25 basis points each could be possible in 2024. Lower interest rates definitely bode well for the manufacturing sector.
Our Choices
Given this scenario, it would be ideal to invest in five stocks such as A. O. Smith Corporation AOS, Emerson Electric Co. EMR, Graham Corporation GHM, Flowserve Corporation FLS and Alamo Group Inc. ALG,which we have detailed below. These stocks have a Zacks Rank #1 (Strong Buy) or 2 (Buy) and assure good returns. You can see the complete list of today’s Zacks #1 Rank stocks here.
A. O. Smith Corporation is one of the leading manufacturers of commercial and residential water heating equipment, and water treatment products of the world. AOS specializes in offering innovative and energy-efficient solutions and products, which are developed and sold on a global platform.
A. O. Smith’s expected earnings growth for next year is 6.1%. The Zacks Consensus Estimate for current-year earnings has improved 4.4% over the last 60 days. AOS presently carries a Zacks Rank #2.
Emerson Electric Co. is a diversified global engineering and technology company with a presence in Europe, the Americas, and Asia, the Middle East & Africa. EMR offers a wide range of products and services to customers in consumer, commercial and industrial markets.
Emerson Electric’s expected earnings growth for next year is 7.6%. The Zacks Consensus Estimate for current-year earnings has improved 6.4% over the last 60 days. EMR currently sports a Zacks Rank #1.
Graham Corporation designs and builds vacuum and heat transfer equipment for process industries and energy markets worldwide. GHM’s products include steam jet ejector vacuum systems and liquid ring vacuum pumps, surface condensers, Heliflows, water heaters and various types of heat exchangers.
Graham Corporation’s expected earnings growth for next year is 3.2%. The Zacks Consensus Estimate for current-year earnings has improved 106.7% over the past 60 days. GHM presently sports a Zacks Rank #1.
Flowserve Corporation is a leading manufacturer and aftermarket service provider of comprehensive flow control systems, globally. FLS develops and manufactures precision-engineered flow control equipment, such as pumps, valves and seals, for critical service applications that require high reliability. Flowserve uses its manufacturing platform to offer a broad array of aftermarket equipment services, such as installation, advanced diagnostics, repair and retrofitting.
Flowserve Corporation’s expected earnings growth for next year is 24.1%. The Zacks Consensus Estimate for current-year earnings has improved 2.5% over the past 60 days. FLS presently has a Zacks Rank #2.
Alamo Group Inc. is a leader in the design, manufacture, distribution and service of high quality-equipment for infrastructure maintenance, agriculture and other applications. ALG’s include truck and tractor-mounted mowing and other vegetation maintenance equipment, street sweepers, snow removal equipment, excavators, vacuum trucks, other industrial equipment, agricultural implements and related after-market parts and services.
Alamo Group’s expected earnings growth for next year is 13.6%. The Zacks Consensus Estimate for current-year earnings has improved 4.5% over the past 60 days. ALG presently carries a Zacks Rank #2.
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
Be First to New Top 10 Stocks >>
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
Emerson Electric Co. (EMR) : Free Stock Analysis Report
A. O. Smith Corporation (AOS) : Free Stock Analysis Report
Flowserve Corporation (FLS) : Free Stock Analysis Report
Alamo Group, Inc. (ALG) : Free Stock Analysis Report
Graham Corporation (GHM) : 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. | Manufacturing activity slowed over the past year in the United States as the nation grappled with inflation and the Federal Reserve maintained an aggressive interest rate hike policy to fight against it. FLS develops and manufactures precision-engineered flow control equipment, such as pumps, valves and seals, for critical service applications that require high reliability. Flowserve uses its manufacturing platform to offer a broad array of aftermarket equipment services, such as installation, advanced diagnostics, repair and retrofitting. | Our Choices Given this scenario, it would be ideal to invest in five stocks such as A. O. Smith Corporation AOS, Emerson Electric Co. EMR, Graham Corporation GHM, Flowserve Corporation FLS and Alamo Group Inc. ALG,which we have detailed below. Flowserve Corporation is a leading manufacturer and aftermarket service provider of comprehensive flow control systems, globally. Click to get this free report Emerson Electric Co. (EMR) : Free Stock Analysis Report A. O. Smith Corporation (AOS) : Free Stock Analysis Report Flowserve Corporation (FLS) : Free Stock Analysis Report Alamo Group, Inc. (ALG) : Free Stock Analysis Report Graham Corporation (GHM) : Free Stock Analysis Report To read this article on Zacks.com click here. | Manufacturing activity slowed over the past year in the United States as the nation grappled with inflation and the Federal Reserve maintained an aggressive interest rate hike policy to fight against it. Our Choices Given this scenario, it would be ideal to invest in five stocks such as A. O. Smith Corporation AOS, Emerson Electric Co. EMR, Graham Corporation GHM, Flowserve Corporation FLS and Alamo Group Inc. ALG,which we have detailed below. Click to get this free report Emerson Electric Co. (EMR) : Free Stock Analysis Report A. O. Smith Corporation (AOS) : Free Stock Analysis Report Flowserve Corporation (FLS) : Free Stock Analysis Report Alamo Group, Inc. (ALG) : Free Stock Analysis Report Graham Corporation (GHM) : Free Stock Analysis Report To read this article on Zacks.com click here. | Lower interest rates definitely bode well for the manufacturing sector. Our Choices Given this scenario, it would be ideal to invest in five stocks such as A. O. Smith Corporation AOS, Emerson Electric Co. EMR, Graham Corporation GHM, Flowserve Corporation FLS and Alamo Group Inc. ALG,which we have detailed below. Be First to New Top 10 Stocks >> Want the latest recommendations from Zacks Investment Research? | 4a523657-8d8e-472c-b397-05029ac9d657 |
710382.0 | 2023-12-16 22:00:00 UTC | Wall Street Bulls Look Optimistic About Marvell (MRVL): Should You Buy? | DCOMP | https://www.nasdaq.com/articles/wall-street-bulls-look-optimistic-about-marvell-mrvl%3A-should-you-buy-0 | nan | nan | The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Marvell Technology (MRVL).
Marvell currently has an average brokerage recommendation (ABR) of 1.22, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 27 brokerage firms. An ABR of 1.22 approximates between Strong Buy and Buy.
Of the 27 recommendations that derive the current ABR, 23 are Strong Buy and two are Buy. Strong Buy and Buy respectively account for 85.2% and 7.4% of all recommendations.
Brokerage Recommendation Trends for MRVL
Check price target & stock forecast for Marvell here>>>
While the ABR calls for buying Marvell, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.
Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.
Zacks Rank Should Not Be Confused With ABR
Although both Zacks Rank and ABR are displayed in a range of 1-5, they are different measures altogether.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
Is MRVL Worth Investing In?
Looking at the earnings estimate revisions for Marvell, the Zacks Consensus Estimate for the current year has declined 3.3% over the past month to $1.51.
Analysts' growing pessimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates lower, could be a legitimate reason for the stock to plunge in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #5 (Strong Sell) for Marvell. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, it could be wise to take the Buy-equivalent ABR for Marvell with a grain of salt.
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
Be First to New Top 10 Stocks >>
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
Marvell Technology, Inc. (MRVL) : 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. | But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements. Analysts' growing pessimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates lower, could be a legitimate reason for the stock to plunge in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Therefore, it could be wise to take the Buy-equivalent ABR for Marvell with a grain of salt. | Marvell currently has an average brokerage recommendation (ABR) of 1.22, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation. Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. | Marvell currently has an average brokerage recommendation (ABR) of 1.22, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Therefore, it could be wise to take the Buy-equivalent ABR for Marvell with a grain of salt. | Brokerage Recommendation Trends for MRVL According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation. Zacks Rank Should Not Be Confused With ABR Although both Zacks Rank and ABR are displayed in a range of 1-5, they are different measures altogether. | 1f1b70d0-410f-4437-96df-82c3d7a8c5a5 |
710383.0 | 2023-12-16 22:00:00 UTC | T. Rowe Price (TROW) Crossed Above the 200-Day Moving Average: What That Means for Investors | DCOMP | https://www.nasdaq.com/articles/t.-rowe-price-trow-crossed-above-the-200-day-moving-average%3A-what-that-means-for-investors | nan | nan | From a technical perspective, T. Rowe Price (TROW) is looking like an interesting pick, as it just reached a key level of support. TROW recently overtook the 200-day moving average, and this suggests a long-term bullish trend.
The 200-day simple moving average is widely-used by traders and analysts, and helps establish market trends for stocks, commodities, indexes, and other financial instruments over the long term. The indicator moves higher or lower together with longer-term price moves, serving as a support or resistance level.
TROW could be on the verge of another rally after moving 11.6% higher over the last four weeks. Plus, the company is currently a Zacks Rank #3 (Hold) stock.
The bullish case only gets stronger once investors take into account TROW's positive earnings estimate revisions. There have been 6 higher compared to none lower for the current fiscal year, and the consensus estimate has moved up as well.
Given this move in earnings estimate revisions and the positive technical factor, investors may want to keep their eye on TROW for more gains in the near future.
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
Be First to New Top 10 Stocks >>
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
T. Rowe Price Group, Inc. (TROW) : 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. | The 200-day simple moving average is widely-used by traders and analysts, and helps establish market trends for stocks, commodities, indexes, and other financial instruments over the long term. Given this move in earnings estimate revisions and the positive technical factor, investors may want to keep their eye on TROW for more gains in the near future. From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. | The bullish case only gets stronger once investors take into account TROW's positive earnings estimate revisions. Given this move in earnings estimate revisions and the positive technical factor, investors may want to keep their eye on TROW for more gains in the near future. Click to get this free report T. Rowe Price Group, Inc. (TROW) : Free Stock Analysis Report To read this article on Zacks.com click here. | Given this move in earnings estimate revisions and the positive technical factor, investors may want to keep their eye on TROW for more gains in the near future. From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Click to get this free report T. Rowe Price Group, Inc. (TROW) : Free Stock Analysis Report To read this article on Zacks.com click here. | From a technical perspective, T. Rowe Price (TROW) is looking like an interesting pick, as it just reached a key level of support. TROW recently overtook the 200-day moving average, and this suggests a long-term bullish trend. Be First to New Top 10 Stocks >> Want the latest recommendations from Zacks Investment Research? | 96f52bc9-898c-4a95-a135-d11fe4dc4d87 |
710384.0 | 2023-12-16 22:00:00 UTC | Wall Street Analysts Think MongoDB (MDB) Is a Good Investment: Is It? | DCOMP | https://www.nasdaq.com/articles/wall-street-analysts-think-mongodb-mdb-is-a-good-investment%3A-is-it-0 | nan | nan | When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?
Let's take a look at what these Wall Street heavyweights have to say about MongoDB (MDB) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
MongoDB currently has an average brokerage recommendation (ABR) of 1.42, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 26 brokerage firms. An ABR of 1.42 approximates between Strong Buy and Buy.
Of the 26 recommendations that derive the current ABR, 20 are Strong Buy and three are Buy. Strong Buy and Buy respectively account for 76.9% and 11.5% of all recommendations.
Brokerage Recommendation Trends for MDB
Check price target & stock forecast for MongoDB here>>>
While the ABR calls for buying MongoDB, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.
Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.
Zacks Rank Should Not Be Confused With ABR
Although both Zacks Rank and ABR are displayed in a range of 1-5, they are different measures altogether.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.
On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Is MDB a Good Investment?
In terms of earnings estimate revisions for MongoDB, the Zacks Consensus Estimate for the current year has increased 24.4% over the past month to $2.90.
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for MongoDB. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, the Buy-equivalent ABR for MongoDB may serve as a useful guide for investors.
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
Be First to New Top 10 Stocks >>
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
MongoDB, Inc. (MDB) : 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. | Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Therefore, the Buy-equivalent ABR for MongoDB may serve as a useful guide for investors. | MongoDB currently has an average brokerage recommendation (ABR) of 1.42, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation. In terms of earnings estimate revisions for MongoDB, the Zacks Consensus Estimate for the current year has increased 24.4% over the past month to $2.90. | MongoDB currently has an average brokerage recommendation (ABR) of 1.42, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Therefore, the Buy-equivalent ABR for MongoDB may serve as a useful guide for investors. | Brokerage Recommendation Trends for MDB According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Therefore, the Buy-equivalent ABR for MongoDB may serve as a useful guide for investors. | 9b3c999d-2cd2-4ef0-95e1-5cf25f4bbbdd |
710385.0 | 2023-12-16 22:00:00 UTC | Is It Worth Investing in Zscaler (ZS) Based on Wall Street's Bullish Views? | DCOMP | https://www.nasdaq.com/articles/is-it-worth-investing-in-zscaler-zs-based-on-wall-streets-bullish-views-0 | nan | nan | The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Zscaler (ZS).
Zscaler currently has an average brokerage recommendation (ABR) of 1.44, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 34 brokerage firms. An ABR of 1.44 approximates between Strong Buy and Buy.
Of the 34 recommendations that derive the current ABR, 26 are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 76.5% and 2.9% of all recommendations.
Brokerage Recommendation Trends for ZS
Check price target & stock forecast for Zscaler here>>>
While the ABR calls for buying Zscaler, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.
Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.
Zacks Rank Should Not Be Confused With ABR
Although both Zacks Rank and ABR are displayed in a range of 1-5, they are different measures altogether.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
Is ZS Worth Investing In?
Looking at the earnings estimate revisions for Zscaler, the Zacks Consensus Estimate for the current year has increased 15.8% over the past month to $2.47.
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Zscaler. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, the Buy-equivalent ABR for Zscaler may serve as a useful guide for investors.
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
Be First to New Top 10 Stocks >>
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
Zscaler, Inc. (ZS) : 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. | But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements. Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Therefore, the Buy-equivalent ABR for Zscaler may serve as a useful guide for investors. | Zscaler currently has an average brokerage recommendation (ABR) of 1.44, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation. Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. | Zscaler currently has an average brokerage recommendation (ABR) of 1.44, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Therefore, the Buy-equivalent ABR for Zscaler may serve as a useful guide for investors. | Brokerage Recommendation Trends for ZS According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements. | b922e2e8-e842-499e-8f85-6c1fc81ce720 |
710386.0 | 2023-12-16 22:00:00 UTC | Should Value Investors Buy PACCAR (PCAR) Stock? | DCOMP | https://www.nasdaq.com/articles/should-value-investors-buy-paccar-pcar-stock-7 | nan | nan | While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is PACCAR (PCAR). PCAR is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
Investors should also note that PCAR holds a PEG ratio of 1.29. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. PCAR's PEG compares to its industry's average PEG of 3.40. Over the past 52 weeks, PCAR's PEG has been as high as 1.32 and as low as 0.94, with a median of 1.16.
Another valuation metric that we should highlight is PCAR's P/B ratio of 3.13. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 4.82. PCAR's P/B has been as high as 3.20 and as low as 2.58, with a median of 2.87, over the past year.
Finally, investors will want to recognize that PCAR has a P/CF ratio of 10.08. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. PCAR's P/CF compares to its industry's average P/CF of 19.13. Within the past 12 months, PCAR's P/CF has been as high as 11.24 and as low as 8.57, with a median of 9.90.
These are just a handful of the figures considered in PACCAR's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that PCAR is an impressive value stock right now.
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
Be First to New Top 10 Stocks >>
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
PACCAR Inc. (PCAR) : 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. | Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels. In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. | PCAR's PEG compares to its industry's average PEG of 3.40. Click to get this free report PACCAR Inc. (PCAR) : 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. | While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment. Click to get this free report PACCAR Inc. (PCAR) : Free Stock Analysis Report To read this article on Zacks.com click here. | Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment. Investors should also note that PCAR holds a PEG ratio of 1.29. Be First to New Top 10 Stocks >> Want the latest recommendations from Zacks Investment Research? | 45bd3925-dc98-4ffa-ae69-96b66e384159 |
710387.0 | 2023-12-16 22:00:00 UTC | Compared to Estimates, Winnebago (WGO) Q1 Earnings: A Look at Key Metrics | DCOMP | https://www.nasdaq.com/articles/compared-to-estimates-winnebago-wgo-q1-earnings%3A-a-look-at-key-metrics | nan | nan | For the quarter ended November 2023, Winnebago Industries (WGO) reported revenue of $763 million, down 19.9% over the same period last year. EPS came in at $1.06, compared to $2.07 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $727.57 million, representing a surprise of +4.87%. The company delivered an EPS surprise of -11.67%, with the consensus EPS estimate being $1.20.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Winnebago performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Units deliveries - Total Towable: 7,846 versus 6,557 estimated by three analysts on average.
Unit deliveries - Total Motorhome: 1,721 versus 1,817 estimated by three analysts on average.
Unit deliveries - Marine - Boats: 1,118 compared to the 1,268 average estimate based on three analysts.
Units deliveries - Towable - Fifth wheel: 2,465 versus 2,152 estimated by two analysts on average.
Units deliveries - Towable - Travel trailer: 5,381 versus 4,434 estimated by two analysts on average.
Units deliveries - Motorhome - Class C: 549 versus 422 estimated by two analysts on average.
Unit deliveries - Motorhome - Class A: 481 compared to the 568 average estimate based on two analysts.
Units deliveries - Motorhome - Class B: 691 versus the two-analyst average estimate of 936.
Net Revenues- Motorhome: $334.40 million compared to the $344.57 million average estimate based on four analysts. The reported number represents a change of -28% year over year.
Net Revenues- Towable: $330.80 million versus $274.93 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -4.8% change.
Net Revenues- Marine: $87.30 million versus $102.34 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -33.6% change.
Adjusted EBITDA- Towable: $33.10 million versus the three-analyst average estimate of $31.05 million.
View all Key Company Metrics for Winnebago here>>>
Shares of Winnebago have returned +13.6% over the past month versus the Zacks S&P 500 composite's +5.2% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.
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Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
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Winnebago Industries, Inc. (WGO) : Free Stock Analysis Report
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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. | For the quarter ended November 2023, Winnebago Industries (WGO) reported revenue of $763 million, down 19.9% over the same period last year. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. | Here is how Winnebago performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Units deliveries - Total Towable: 7,846 versus 6,557 estimated by three analysts on average. Net Revenues- Motorhome: $334.40 million compared to the $344.57 million average estimate based on four analysts. Net Revenues- Towable: $330.80 million versus $274.93 million estimated by four analysts on average. | Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Here is how Winnebago performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Units deliveries - Total Towable: 7,846 versus 6,557 estimated by three analysts on average. Net Revenues- Motorhome: $334.40 million compared to the $344.57 million average estimate based on four analysts. | The reported revenue compares to the Zacks Consensus Estimate of $727.57 million, representing a surprise of +4.87%. Here is how Winnebago performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Units deliveries - Total Towable: 7,846 versus 6,557 estimated by three analysts on average. View all Key Company Metrics for Winnebago here>>> | fb096929-3d0a-4d8d-a390-9a7df60835cb |
710388.0 | 2023-12-16 22:00:00 UTC | General Mills (GIS) Reports Q2 Earnings: What Key Metrics Have to Say | DCOMP | https://www.nasdaq.com/articles/general-mills-gis-reports-q2-earnings%3A-what-key-metrics-have-to-say | nan | nan | For the quarter ended November 2023, General Mills (GIS) reported revenue of $5.14 billion, down 1.6% over the same period last year. EPS came in at $1.25, compared to $1.10 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $5.34 billion, representing a surprise of -3.71%. The company delivered an EPS surprise of +8.70%, with the consensus EPS estimate being $1.15.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how General Mills performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Net Sales- North America Foodservice: $582 million versus $601.85 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -0.2% change.
Net Sales- International: $683.10 million versus the four-analyst average estimate of $736.29 million. The reported number represents a year-over-year change of +1.7%.
Net Sales- Pet: $569.30 million versus $611.54 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -4% change.
Net Sales- North America Retail: $3.31 billion compared to the $3.40 billion average estimate based on four analysts. The reported number represents a change of -2% year over year.
Operating Profit- North America Retail: $859.90 million versus the four-analyst average estimate of $837.37 million.
Operating Profit- North America Foodservice: $95.50 million compared to the $84.47 million average estimate based on four analysts.
Operating Profit- Pet: $102.50 million compared to the $95.69 million average estimate based on four analysts.
Operating Profit- International: $34.60 million compared to the $37.30 million average estimate based on four analysts.
Operating Profit- Unallocated corporate: $157.10 million versus -$133.90 million estimated by two analysts on average.
View all Key Company Metrics for General Mills here>>>
Shares of General Mills have returned +3.2% over the past month versus the Zacks S&P 500 composite's +5.2% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
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General Mills, Inc. (GIS) : Free Stock Analysis Report
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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. | For the quarter ended November 2023, General Mills (GIS) reported revenue of $5.14 billion, down 1.6% over the same period last year. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. | Here is how General Mills performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Net Sales- North America Foodservice: $582 million versus $601.85 million estimated by four analysts on average. Net Sales- North America Retail: $3.31 billion compared to the $3.40 billion average estimate based on four analysts. Operating Profit- North America Retail: $859.90 million versus the four-analyst average estimate of $837.37 million. | Here is how General Mills performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Net Sales- North America Foodservice: $582 million versus $601.85 million estimated by four analysts on average. Operating Profit- North America Foodservice: $95.50 million compared to the $84.47 million average estimate based on four analysts. Operating Profit- International: $34.60 million compared to the $37.30 million average estimate based on four analysts. | Here is how General Mills performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Net Sales- North America Foodservice: $582 million versus $601.85 million estimated by four analysts on average. The reported number represents a year-over-year change of +1.7%. View all Key Company Metrics for General Mills here>>> | c05bc8b7-a533-40a7-8fd8-78f434231ee5 |
710389.0 | 2023-12-16 22:00:00 UTC | Prediction: The Biggest (and Most Anticipated) Stock Splits for 2024 | DCOMP | https://www.nasdaq.com/articles/prediction%3A-the-biggest-and-most-anticipated-stock-splits-for-2024 | nan | nan | High-priced stocks can be a drag. It may only be psychological, but paying $1,000 for a single share of stock often feels like a raw deal. More to the point, some people simply can't afford to spend so much. Sure, there are alternatives, such as fractional shares. Still, what many investors really want is lower-priced stocks.
So, with that in mind, here are my picks for the biggest (and most anticipated) potential stock splits in 2024.
Image source: Getty Images.
Fair Issac Corporation
Simply too good to ignore. That's my opinion of Fair Issac Corporation (NYSE: FICO). Famous for its credit scoring system, Fair Issac is one of the top-performing stocks of the last 10 years.
Indeed, $10,000 invested in Fair Issac in 2013 would have grown to an eye-popping $191,640 today.
FICO Total Return Level data by YCharts
Similarly, Fair Issac's stock price itself has ballooned. A single share now trades at a price over $1,100. The company last split its shares nearly 20 years ago, executing a 3-for-2 stock split on March 11, 2004.
Regardless of whether Fair Issac executes a split, investors should consider owning its stock, as the company remains red-hot. Analysts estimate Fair Issac will grow sales 12% next year to $1.9 billion. Earnings per share (EPS), meanwhile, are expected to grow to $28.71, up 21%.
Chipotle Mexican Grill
Sometimes a high price seems to define how a stock is perceived. Case in point: Chipotle Mexican Grill (NYSE: CMG).
Since its shares debuted via an initial public offering (IPO) on Jan. 26, 2006, Chipotle's shares climbed from around $40 to over $2,300. Yet, in all that time, the company has never executed a stock split.
Nevertheless, investors may finally get their wish in 2024. Recent stock splits from high-profile companies like Amazon, Alphabet, and Tesla sparked renewed retail interest. For their part, Amazon and Alphabet recently set new 52-week highs.
In any event, Chipotle's stock is pricey -- even if the company executes a split. That's because shares trade at a high price-to-earnings (P/E) multiple -- and that is not affected by a stock split. With a forward P/E of 52x, Chipotle is far more expensive than its fast food peers like McDonald's (25x), Starbucks (24x), and Wendy's (20x).
CMG PE Ratio (Forward) data by YCharts
Chipotle is a red-hot stock, but investors should understand that even after a split, shares would remain expensive.
Nvidia
Finally, Nvidia (NASDAQ: NVDA) rounds out the list of most anticipated stock splits for 2024.
The company, whose stock is the top-performing stock in the Nasdaq-100 with a staggering 235% year-to-date gain, must be considered the big winner of 2023. Demand for its high-powered graphics processing units (GPUs) -- the brains behind today's cutting-edge artificial intelligence (AI) innovations -- is sky-high. As a result, Nvidia shares now trade for almost $500 apiece.
While it has only been two and a half years since Nvidia last split its shares (in July 2021), the company may choose to do so again in 2024. After all, the last share split (a 4-for-1 split) was announced when shares were trading in the $560 range.
Given how quickly Nvidia is growing -- and analyst estimates are rising -- it is hard to pin down a valuation for Nvidia shares. Nevertheless, the stock's volatility means Nvidia isn't a good fit for every investment portfolio.
That said, long-term investors willing to hold for many years to come would be wise to consider adding Nvidia shares now. The AI revolution is still in the early innings, and AI chipmakers like Nvidia stand to reap enormous profits because of that.
And, at any rate, another Nvidia stock split would help more retail investors participate, and that would be a great thing.
Should you invest $1,000 in Nvidia right now?
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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Jake Lerch has positions in Alphabet, Amazon, McDonald's, Nvidia, and Tesla. The Motley Fool has positions in and recommends Alphabet, Amazon, Chipotle Mexican Grill, Nvidia, Starbucks, and Tesla. The Motley Fool recommends Fair Isaac. 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. | FICO Total Return Level data by YCharts Similarly, Fair Issac's stock price itself has ballooned. CMG PE Ratio (Forward) data by YCharts Chipotle is a red-hot stock, but investors should understand that even after a split, shares would remain expensive. Demand for its high-powered graphics processing units (GPUs) -- the brains behind today's cutting-edge artificial intelligence (AI) innovations -- is sky-high. | FICO Total Return Level data by YCharts Similarly, Fair Issac's stock price itself has ballooned. Case in point: Chipotle Mexican Grill (NYSE: CMG). The Motley Fool has positions in and recommends Alphabet, Amazon, Chipotle Mexican Grill, Nvidia, Starbucks, and Tesla. | The company last split its shares nearly 20 years ago, executing a 3-for-2 stock split on March 11, 2004. Before you buy stock in Nvidia, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Nvidia wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 18, 2023 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. | Regardless of whether Fair Issac executes a split, investors should consider owning its stock, as the company remains red-hot. After all, the last share split (a 4-for-1 split) was announced when shares were trading in the $560 range. Before you buy stock in Nvidia, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Nvidia wasn't one of them. | 4a5e9ace-80ab-407d-82bc-a9e725932f21 |
710390.0 | 2023-12-16 22:00:00 UTC | 3 Best 'Dogs of the Dow' Stocks to Enrich Your Portfolio in 2024 | DCOMP | https://www.nasdaq.com/articles/3-best-dogs-of-the-dow-stocks-to-enrich-your-portfolio-in-2024 | nan | nan | Global macroeconomic challenges, interest rate hikes and inflationary pressure dented the performance of the indices in 2023. However, the broader equity markets have started improving, with the Dow Jones Industrial Average Index (DJIA) recently crossing the 37,000 mark on Dec 13.
DJIA rallied amid speculations that the Federal Reserve is planning to cut interest rates several times next year. The Fed also kept interest rates unchanged at a range of 5.25% to 5.5%, indicating that the inflationary pressure was easing now. The Dow is up 13.3% year to date. In comparison, the index was down 8.8% in 2022.
With Dow expected to continue its upward trajectory on rate cut speculations, investing in blue chip companies appears to be a prudent decision. These blue-chip stocks generally have a large market cap, solid cash flows, a healthy balance sheet and, in most cases, a stable dividend policy that aims to reward shareholders with risk-adjusted returns.
Investors can utilize the classic long-term stock picking strategy called ‘The Dogs of the Dow,’ which aims to deliver solid returns while maintaining low risk.
What is ‘The Dogs of the Dow’ Strategy?
The strategy involves the purchase of equal dollar amounts of the ten Dow Jones Industrial stocks with the highest dividend yields (calculated by dividing a company’s dividend by its current stock price).
A very simple concept powers this strategy. The high-yielding stocks that make up the portfolio are the ones with prices that are lower relative to the dividend paid. This implies that these stocks have underperformed recently. These companies do not stay undervalued for too long as share prices of companies at the bottom of their business cycle appreciate relatively faster than companies at other stages of their business cycles.
In 1991, Michael O’Higgins, in his book, Beating the Dow, first introduced the investing strategy known as ‘Dogs of the Dow’ based on the DJIA.
However, the performance of this particular strategy remains uneven. Investors can consider this particular strategy as it is a dividend-based strategy. Generally, stocks with stable dividend policy are regarded as sound additions to one’s investment portfolio. Dividend-paying stocks carry low risk and are favored as these reduce the overall portfolio risk.
The yield on 10-year Treasuries, which is widely viewed as one of the safest havens, was closed at 3.89% as of Dec 19. With Fed planning rate cuts in the upcoming year, yields are expected to fall further. This makes investing in dividend stocks prudent.
3 Best 'Dogs of the Dow' Stocks
We bring three stocks from the ‘Dogs of the Dow’ list that have a dividend yield of more than 3%. These blue-chip stocks have a market capital in excess of $50 billion, have a solid Zacks Industry Rank, and are placed within the top 50% of more than 250 Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Added to the intrinsic value proposition of these stocks, a healthy dividend yield satisfies the appetite of risk-averse investors. The fact that these stocks have the potential to outperform the market while also historically providing a decent dividend yield has made them prized assets.
Let’s discuss three such stocks:
3M Company MMM: Headquartered in St. Paul, MN, 3M Company, together with its subsidiaries, operates as a diversified technology firm. It has manufacturing operations across the globe and serves a diversified customer base.
Strength in auto OEM (Original Equipment Manufacturer) and medical solutions businesses augurs well for 3M’s growth. Solid momentum in the roofing granules business bodes well for the Safety and Industrial unit. Improvement in supply chains and easier availability of labor and raw materials should drive MMM’s performance.
MMM carries a Zacks Rank #2 (Buy). It also has a Zacks Industry Rank #82 (top 33%). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Apart from a favorable rank, MMM has a VGM Score of B. Per Zacks's proprietary methodology, stocks with a combination of a Zacks Rank #1 or 2 and a VGM Score of A or B offer solid investment opportunities.
The Zacks Consensus Estimate for 2023 and 2024 earnings have improved by 2.1% and 2.5%, respectively, in the past 60 days, reflecting analysts’ optimism.
MMM’s long-term earnings growth rate is pegged at 7.3%. The company’s dividend yield stands at 5.67%.
International Business Machines Corporation IBM: The company has gradually evolved as a provider of cloud and data platforms. Red Hat's acquisition, in particular, has helped it strengthen its competitive position in the hybrid cloud market.
IBM is poised to benefit from strong demand for hybrid cloud and AI, driving growth in the Software and Consulting segments. The company's focus on developing next-generation AI-powered technology will likely drive the top line. IBM's enterprise-focused AI and data platform Watsonx is gaining solid traction. Its unified platform allows AI developers to train, fine-tune and deploy AI solutions per customer-specific requirements. However, intense competition in various end markets is exerting pressure on profits. Low demand for Distributed Infrastructure and support services is impeding the top line.
The stock carries a Zacks Rank #3 (Hold). It has a Zacks Industry Rank #92 (top 37%).
The Zacks Consensus Estimate for 2023 earnings has improved by 5 cents to $9.45. IBM’s long-term earnings growth rate is pegged at 3.9%.
The company’s dividend yield stands at 4.08%. IBM has a P/E ratio of 17.22 versus the industry average of 18.90.
The Coca-Cola Company KO: The company is witnessing steady momentum in its business. The top line is being driven by growth across operating segments, aided by improved price/mix and concentrate sales. The ongoing recovery in the markets and market share gain in the non-alcoholic ready-to-drink beverages space bodes well.
As a result, management has raised its view for 2023. Coca-Cola anticipates organic revenue growth of 10-11% for 2023, compared with 8-9% growth expected earlier. Comparable currency-neutral earnings per share are estimated to increase 13-14% versus 9-11% growth mentioned earlier. The company anticipates year-over-year comparable earnings per share growth of 7-8% for 2023 compared with 5-6% growth stated earlier.
The stock currently has a Zacks Rank #3. It has a Zacks Industry Rank #23 (top 9%).
The Zacks Consensus Estimate for KO’s 2023 earnings suggests growth of 8%. The consensus mark for earnings has improved by 5 cents in the past 60 days to $2.68. KO’s long-term earnings growth rate is pegged at 6.2%.
The company’s dividend yield stands at 3.12%. KO has a P/E ratio of 22.01 versus the industry average of 54.50.
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
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International Business Machines Corporation (IBM) : Free Stock Analysis Report
CocaCola Company (The) (KO) : Free Stock Analysis Report
3M Company (MMM) : Free Stock Analysis Report
To read this article on Zacks.com click here.
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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. | However, the broader equity markets have started improving, with the Dow Jones Industrial Average Index (DJIA) recently crossing the 37,000 mark on Dec 13. These blue-chip stocks generally have a large market cap, solid cash flows, a healthy balance sheet and, in most cases, a stable dividend policy that aims to reward shareholders with risk-adjusted returns. Investors can utilize the classic long-term stock picking strategy called ‘The Dogs of the Dow,’ which aims to deliver solid returns while maintaining low risk. | However, the broader equity markets have started improving, with the Dow Jones Industrial Average Index (DJIA) recently crossing the 37,000 mark on Dec 13. Investors can utilize the classic long-term stock picking strategy called ‘The Dogs of the Dow,’ which aims to deliver solid returns while maintaining low risk. Click to get this free report International Business Machines Corporation (IBM) : Free Stock Analysis Report CocaCola Company (The) (KO) : Free Stock Analysis Report 3M Company (MMM) : Free Stock Analysis Report To read this article on Zacks.com click here. | The strategy involves the purchase of equal dollar amounts of the ten Dow Jones Industrial stocks with the highest dividend yields (calculated by dividing a company’s dividend by its current stock price). These blue-chip stocks have a market capital in excess of $50 billion, have a solid Zacks Industry Rank, and are placed within the top 50% of more than 250 Zacks industries. Click to get this free report International Business Machines Corporation (IBM) : Free Stock Analysis Report CocaCola Company (The) (KO) : Free Stock Analysis Report 3M Company (MMM) : Free Stock Analysis Report To read this article on Zacks.com click here. | However, the broader equity markets have started improving, with the Dow Jones Industrial Average Index (DJIA) recently crossing the 37,000 mark on Dec 13. It also has a Zacks Industry Rank #82 (top 33%). It has a Zacks Industry Rank #92 (top 37%). | b5a24502-c71c-45c1-b723-7f7d568cfa8a |
710391.0 | 2023-12-16 22:00:00 UTC | Paramount Global (PARA) Shares First Look of Rock Paper Scissors | DCOMP | https://www.nasdaq.com/articles/paramount-global-para-shares-first-look-of-rock-paper-scissors | nan | nan | Paramount Global’s PARA Nickelodeon has unveiled the exclusive look of Rock Paper Scissors, premiering Monday, Feb 12, 2024, at 5:30 p.m. Inspired by the age-old tradition of settling things with your best friends, the game comes to life through the shenanigans of pals Rock, Paper and Scissors.
As the first short picked up for series from Nickelodeon's Intergalactic Shorts Program, new episodes will continue to air weekdays at 5:30 p.m. and internationally later in the month.
In the animated series Rock Paper Scissors, the central characters, Rock, Paper and Scissors, form a trio of best friends and roommates engaged in playful yet wildly absurd competitions. Throughout the first season, their antics include global hide-and-seek, evading the birthday police, defending against an alien invasion, facing off with the Rat Bros and more.
Leading up to the series debut, audiences can catch an exclusive glimpse of the Rock Paper Scissors Intergalactic Short, 'TV Time’, during the Nickelodeon NFL Nickmas Game on Monday, Dec 25, at 1:00 p.m. PT on Nickelodeon.
Paramount Global Price and Consensus
Paramount Global price-consensus-chart | Paramount Global Quote
Nickelodeon’s Upcoming Content to Aid Subscriber Growth
PARA’s Nickelodeon has announced a highly anticipated content lineup, which includes Kamp Koral: SpongeBob's Under Years, Season 2, Monster High, Season 3 and Star Trek: Prodigy, Season 2. These new shows are expected to aid subscriber growth in the upcoming quarters.
The Zacks Consensus Estimate for 2023 subscribers is pegged at 67.4 million, indicating year-over-year growth of 20.6%. The consensus estimate for the company’s revenues is pegged at $29.98 billion, indicating year-over-year decline of 0.59%.
Kamp Koral: SpongeBob's Under Years is the inaugural spin-off series inspired by SpongeBob SquarePants. The show portrays SpongeBob and his friends enjoying their summer by engaging in activities such as "building underwater campfires, catching wild jellyfish and swimming in Lake Yuckymuck" at the unconventional camp, Kamp Koral. An announcement revealed the second season comprising 13 episodes. Notably, season 2 is slated to be the concluding season for the series.
Monster High is an animated TV series created by Mattel Television, with Shea Fontana as the showrunner. Inspired by Mattel's doll line of the same name, the show debuted on Oct 28, 2022, airing on Nickelodeon in the United States. The series is renewed for season 3, which is set to release in 2024.
Star Trek: Prodigy is a CG-animated series that was officially disclosed on August 2020, as part of the Star Trek franchise. The show made its debut on Paramount+ on October 2021. A second season comprising 10 episodes is scheduled for a 2024 premiere.
Shares of Paramount, which currently has a Zacks Rank #3 (Hold), have increased 13.4% year to date compared with the Zacks Consumer Discretionary sector’s 16.8% rise due to competition from Netflix NFLX, Disney DIS and Amazon AMZN Prime Video. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Netflix, as the dominant force in the streaming market, has made significant investments in expanding its content library. Among its upcoming releases is Pokémon Concierge scheduled for December 28. Additionally, titles like Miss Shampoo and Berlin are set to premiere on Dec 28 and Dec 29, respectively.
Disney's streaming platform is renowned for its specialized content catering to young adults and children, with exclusive franchises adding to its popularity. Upcoming Disney releases include What If…? Season 2 on Dec 22 and Echo, which is scheduled to release on Jan 9.
As a streaming giant, Amazon Prime Video provides both complimentary and subscription-based streaming services. The upcoming superhero film, The Flash, is slated for release on Dec 25. Additionally, other offerings like Baby Shark’s Big Show: S1 and Blue’s Clues: S1 will be available on Dec 30.
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
Be First to New Top 10 Stocks >>
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
Netflix, Inc. (NFLX) : Free Stock Analysis Report
The Walt Disney Company (DIS) : Free Stock Analysis Report
Paramount Global (PARA) : Free Stock Analysis Report
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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. | Throughout the first season, their antics include global hide-and-seek, evading the birthday police, defending against an alien invasion, facing off with the Rat Bros and more. The show portrays SpongeBob and his friends enjoying their summer by engaging in activities such as "building underwater campfires, catching wild jellyfish and swimming in Lake Yuckymuck" at the unconventional camp, Kamp Koral. Disney's streaming platform is renowned for its specialized content catering to young adults and children, with exclusive franchises adding to its popularity. | Paramount Global Price and Consensus Paramount Global price-consensus-chart | Paramount Global Quote Nickelodeon’s Upcoming Content to Aid Subscriber Growth PARA’s Nickelodeon has announced a highly anticipated content lineup, which includes Kamp Koral: SpongeBob's Under Years, Season 2, Monster High, Season 3 and Star Trek: Prodigy, Season 2. Shares of Paramount, which currently has a Zacks Rank #3 (Hold), have increased 13.4% year to date compared with the Zacks Consumer Discretionary sector’s 16.8% rise due to competition from Netflix NFLX, Disney DIS and Amazon AMZN Prime Video. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report Paramount Global (PARA) : Free Stock Analysis Report To read this article on Zacks.com click here. | Leading up to the series debut, audiences can catch an exclusive glimpse of the Rock Paper Scissors Intergalactic Short, 'TV Time’, during the Nickelodeon NFL Nickmas Game on Monday, Dec 25, at 1:00 p.m. PT on Nickelodeon. Paramount Global Price and Consensus Paramount Global price-consensus-chart | Paramount Global Quote Nickelodeon’s Upcoming Content to Aid Subscriber Growth PARA’s Nickelodeon has announced a highly anticipated content lineup, which includes Kamp Koral: SpongeBob's Under Years, Season 2, Monster High, Season 3 and Star Trek: Prodigy, Season 2. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report Paramount Global (PARA) : Free Stock Analysis Report To read this article on Zacks.com click here. | Paramount Global Price and Consensus Paramount Global price-consensus-chart | Paramount Global Quote Nickelodeon’s Upcoming Content to Aid Subscriber Growth PARA’s Nickelodeon has announced a highly anticipated content lineup, which includes Kamp Koral: SpongeBob's Under Years, Season 2, Monster High, Season 3 and Star Trek: Prodigy, Season 2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Upcoming Disney releases include What If…? | 4904dc96-690d-46f7-8215-5b4ce5dba9be |
710392.0 | 2023-12-16 22:00:00 UTC | 2 Unstoppable Growth Stocks to Buy in 2024 | DCOMP | https://www.nasdaq.com/articles/2-unstoppable-growth-stocks-to-buy-in-2024 | nan | nan | Growth stocks have done well this year, but heading into 2024, many of them could start to lose steam, especially amid rising valuations. Yet, some businesses still look poised for much more growth in the years ahead, and are likely to continue rising in value next year, regardless of their high prices tags.
Two stocks that look unstoppable heading into 2024 are Eli Lilly (NYSE: LLY) and PDD Holdings (NASDAQ: PDD). Here's why these stocks have been soaring -- and why they could still perform well in the new year.
1. Eli Lilly
Eli Lilly has been one of the hottest healthcare stocks to own this year as its shares are up over 56% since January. The big catalyst behind the company's success is Zepbound (tirzepatide), which regulators approved last month as a treatment for chronic weight management. In clinical trials, it has shown that it can help people lose close to 27% of their body weight over a period of 84 weeks.
While Eli Lilly has a lot of different drugs in its portfolio as well as a robust pipeline, it's the potential of Zepbound that makes it a truly unstoppable investment. Some analysts believe it may be one of the best-selling drugs ever, pegging its peak sales potential at over $50 billion.
Now that Zepbound is approved, the growth ahead for Eli Lilly could be incredible. Through the first nine months of the year, the company reported revenue of $24.8 billion, which rose 17% year over year. That growth rate should accelerate in 2024 as Zepbound becomes more widely available.
Although Eli Lilly's stock isn't cheap, trading at more than 100 times earnings, the sheer potential behind Zepbound could make that valuation justifiable as the new medication could transform its business. This is a stock that in the long run has the potential to eventually become worth more than $1 trillion.
2. PDD Holdings
Another top growth stock for investors to consider for next year is PDD Holdings. The Chinese e-commerce company offers two highly popular marketplaces: Pinduoduo and Temu. And it's Temu in particular that's likely to help the company continue generating impressive growth next year.
With many items priced at just a few dollars and offering returns within 90 days, Temu stands out from many other cheap marketplaces. It has become so popular that it is even drawing customers away from dollar stores; data from Earnest Analytics suggests that Temu accounts for close to 17% of revenue from the discount store category in the U.S. By comparison, Dollar General accounts for 43%, while Dollar Tree makes up 28% of the category's market share.
Sales have been soaring for PDD Holdings, with the company reporting 94% revenue growth for the period ended Sept. 30 and the top line reaching $9.4 billion. With consumers continuing to feel the effects of inflation and a possible recession still ahead in 2024, the company looks likely to continue growing at a fast pace next year.
At 38 times earnings, the stock's valuation is a bit high, but given the impressive numbers the business has been generating, PDD could still prove to be a cheap buy at its current valuation. Year to date, the stock has risen 82%.
Should you invest $1,000 in Eli Lilly right now?
Before you buy stock in Eli Lilly, consider this:
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David Jagielski has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 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. | The big catalyst behind the company's success is Zepbound (tirzepatide), which regulators approved last month as a treatment for chronic weight management. Although Eli Lilly's stock isn't cheap, trading at more than 100 times earnings, the sheer potential behind Zepbound could make that valuation justifiable as the new medication could transform its business. Sales have been soaring for PDD Holdings, with the company reporting 94% revenue growth for the period ended Sept. 30 and the top line reaching $9.4 billion. | And it's Temu in particular that's likely to help the company continue generating impressive growth next year. Sales have been soaring for PDD Holdings, with the company reporting 94% revenue growth for the period ended Sept. 30 and the top line reaching $9.4 billion. Before you buy stock in Eli Lilly, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Eli Lilly wasn't one of them. | Eli Lilly Eli Lilly has been one of the hottest healthcare stocks to own this year as its shares are up over 56% since January. Before you buy stock in Eli Lilly, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Eli Lilly wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 11, 2023 David Jagielski has no position in any of the stocks mentioned. | Now that Zepbound is approved, the growth ahead for Eli Lilly could be incredible. Through the first nine months of the year, the company reported revenue of $24.8 billion, which rose 17% year over year. Before you buy stock in Eli Lilly, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Eli Lilly wasn't one of them. | 6f06ad14-313a-4f1e-9cbd-6f390842457d |
710393.0 | 2023-12-16 22:00:00 UTC | Wall Street Bulls Look Optimistic About Tecnoglass (TGLS): Should You Buy? | DCOMP | https://www.nasdaq.com/articles/wall-street-bulls-look-optimistic-about-tecnoglass-tgls%3A-should-you-buy-0 | nan | nan | The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?
Let's take a look at what these Wall Street heavyweights have to say about Tecnoglass (TGLS) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
Tecnoglass currently has an average brokerage recommendation (ABR) of 1.00, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by four brokerage firms. An ABR of 1.00 indicates Strong Buy.
Of the four recommendations that derive the current ABR, four are Strong Buy, representing 100% of all recommendations.
Brokerage Recommendation Trends for TGLS
Check price target & stock forecast for Tecnoglass here>>>
While the ABR calls for buying Tecnoglass, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.
Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near -term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.
ABR Should Not Be Confused With Zacks Rank
In spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Is TGLS Worth Investing In?
Looking at the earnings estimate revisions for Tecnoglass, the Zacks Consensus Estimate for the current year has declined 0.3% over the past month to $3.93.
Analysts' growing pessimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates lower, could be a legitimate reason for the stock to plunge in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #4 (Sell) for Tecnoglass. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, it could be wise to take the Buy-equivalent ABR for Tecnoglass with a grain of salt.
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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. | In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. Analysts' growing pessimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates lower, could be a legitimate reason for the stock to plunge in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Therefore, it could be wise to take the Buy-equivalent ABR for Tecnoglass with a grain of salt. | Tecnoglass currently has an average brokerage recommendation (ABR) of 1.00, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations. With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near -term price performance. | Tecnoglass currently has an average brokerage recommendation (ABR) of 1.00, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near -term price performance. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices. | An ABR of 1.00 indicates Strong Buy. Brokerage Recommendation Trends for TGLS Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations. | 95871ddb-7780-468a-9bc4-25b5fb24657c |
710394.0 | 2023-12-16 22:00:00 UTC | Better AI Stock: Palantir Technologies vs. SentinelOne | DCOMP | https://www.nasdaq.com/articles/better-ai-stock%3A-palantir-technologies-vs.-sentinelone | nan | nan | Artificial intelligence (AI) was a hot investing theme in 2023 and billions of investing dollars found their way into this technology this year, leading to windfall gains for certain companies that were savvy enough to make the most of the early adoption of AI.
According to Goldman Sachs, private investments in AI could hit $110 billion this year globally and increase to an impressive $200 billion by 2025. Nvidia, Microsoft, and Alphabet are some of the obvious names that investors have been piling into to take advantage of this huge opportunity. At the same time, some smaller companies could be big beneficiaries of AI adoption thanks to the markets they serve.
Palantir Technologies (NYSE: PLTR) and SentinelOne (NYSE: S) are two companies for whom AI is likely to be a big catalyst. While Palantir is a leading player in the market for AI software platforms, SentinelOne is setting itself up to capitalize on the growing deployment of AI within the cybersecurity niche.
But if you were to choose one of these two stocks to benefit from AI's growth, which one should you buy? Let's find out.
The case for Palantir Technologies
Palantir Technologies is known for building and deploying software platforms for both government and commercial customers, and the company is now using its expertise in the AI market as well. It is estimated that Palantir's opportunity in the AI software platform market could be as huge as $1 trillion in the long run, and the good part is that the company is well-placed to capitalize on this opportunity.
That's because Palantir was ranked as the top vendor of AI, machine learning (ML), and data science solutions per a third-party research report, ahead of the likes of Alphabet and Microsoft. More importantly, Palantir has already started landing AI-related contracts. In September, Palantir was awarded a $250 million contract by the U.S. Army to carry out AI/ML-related research work. This was followed by a one-year extension worth $115 million to an existing U.S. Army contract for providing new AI capabilities.
At the same time, Palantir saw a nice jump in the number of commercial customers it serves thanks to the growing adoption of its AI platform. In just five months, the company's AI platform has been used by almost 300 organizations across multiple industries. Not surprisingly, Palantir's overall customer count was up 34% year over year last quarter, driven primarily by a 45% year-over-year jump in the commercial customer base.
What's more, Palantir is working aggressively to broaden its AI sales funnel among commercial customers. That's why the company conducted 140 boot camps, or training programs, last month to help potential customers understand how to deploy AI for their use cases. These moves seem to be the reason why Palantir increased its full-year revenue and operating income guidance despite seeing softness in the government spending environment.
Palantir expects to finish 2023 with a 16.5% year-over-year increase in revenue to $2.22 billion. Even better, the company's growth rate is expected to get better from 2024.
PLTR Revenue Estimates for Current Fiscal Year data by YCharts
So, emerging catalysts such as AI could help Palantir stock sustain its outstanding momentum on the market following 178% gains in 2023.
The case for SentinelOne
Cybersecurity companies focus more now on integrating generative AI within their offerings. That's because generative AI-fueled cybersecurity spending is anticipated to jump from just $9 million in 2022 to $3.2 billion in 2027. This is an opportunity for SentinelOne to quickly ramp up its business and attract more cybersecurity customers.
SentinelOne already provides an autonomous, AI-enabled threat prevention, detection, and response platform known as Singularity. The company can target the extended detection and response (XDR) cybersecurity market with this platform, which is forecast to grow 38% annually through 2028. At the same time, SentinelOne started selling its Purple AI generative AI cybersecurity analyst to customers and has integrated the functionality into the Singularity platform.
According to SentinelOne, this generative AI-powered security solution will allow an organization's cybersecurity analysts to become quicker and more efficient by enabling them to use text-based prompts to look for threats, analyze them, and eventually respond to the threats. Market research firm Canalys estimates that over 70% of businesses are likely to adopt generative AI-based cybersecurity tools by 2028.
As a result, it won't be surprising to see SentinelOne sustain its impressive growth. The company's fiscal 2024 revenue guidance of $616 million would be a 46% jump over its fiscal 2023 revenue of $422 million. Management thinks SentinelOne can sustain a 30% revenue growth rate for the next two fiscal years as well.
S Revenue Estimates for Current Fiscal Year data by YCharts
But don't be surprised to see the growing adoption of generative AI in the cybersecurity niche driving stronger growth at SentinelOne, which could allow this cybersecurity stock to jump higher following 83% gains in 2023.
The verdict
Both Palantir and SentinelOne could witness a solid jump in their businesses thanks to AI. However, investors looking to choose one of these AI stocks over the other have an easy decision to make.
While Palantir stock trades at almost 19 times sales, SentinelOne is cheaper, with a price-to-sales ratio of 13.5. SentinelOne is also growing at a much faster pace than Palantir. What's more, as the charts in the article indicate, SentinelOne could keep outperforming Palantir over the next couple of years as well.
As such, investors looking to buy an AI stock right now that's growing at a nice clip and isn't very expensive may be tempted to buy SentinelOne, as it appears to be the better choice when compared to Palantir, based on its faster growth and relatively attractive valuation.
Should you invest $1,000 in Palantir Technologies right now?
Before you buy stock in Palantir Technologies, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Palantir Technologies wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
See the 10 stocks
*Stock Advisor returns as of December 18, 2023
Suzanne Frey, an executive at Alphabet, 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 Alphabet, Goldman Sachs Group, Microsoft, Nvidia, and Palantir Technologies. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | That's because Palantir was ranked as the top vendor of AI, machine learning (ML), and data science solutions per a third-party research report, ahead of the likes of Alphabet and Microsoft. That's why the company conducted 140 boot camps, or training programs, last month to help potential customers understand how to deploy AI for their use cases. PLTR Revenue Estimates for Current Fiscal Year data by YCharts So, emerging catalysts such as AI could help Palantir stock sustain its outstanding momentum on the market following 178% gains in 2023. | The case for Palantir Technologies Palantir Technologies is known for building and deploying software platforms for both government and commercial customers, and the company is now using its expertise in the AI market as well. PLTR Revenue Estimates for Current Fiscal Year data by YCharts So, emerging catalysts such as AI could help Palantir stock sustain its outstanding momentum on the market following 178% gains in 2023. S Revenue Estimates for Current Fiscal Year data by YCharts But don't be surprised to see the growing adoption of generative AI in the cybersecurity niche driving stronger growth at SentinelOne, which could allow this cybersecurity stock to jump higher following 83% gains in 2023. | The case for Palantir Technologies Palantir Technologies is known for building and deploying software platforms for both government and commercial customers, and the company is now using its expertise in the AI market as well. S Revenue Estimates for Current Fiscal Year data by YCharts But don't be surprised to see the growing adoption of generative AI in the cybersecurity niche driving stronger growth at SentinelOne, which could allow this cybersecurity stock to jump higher following 83% gains in 2023. Before you buy stock in Palantir Technologies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Palantir Technologies wasn't one of them. | The case for Palantir Technologies Palantir Technologies is known for building and deploying software platforms for both government and commercial customers, and the company is now using its expertise in the AI market as well. At the same time, Palantir saw a nice jump in the number of commercial customers it serves thanks to the growing adoption of its AI platform. S Revenue Estimates for Current Fiscal Year data by YCharts But don't be surprised to see the growing adoption of generative AI in the cybersecurity niche driving stronger growth at SentinelOne, which could allow this cybersecurity stock to jump higher following 83% gains in 2023. | db7b9aa0-bd2d-4fce-89db-defddd702aaf |
710395.0 | 2023-12-16 22:00:00 UTC | Santa Claus Rally Sets In: 4 Stocks From Top Sectors to Play | DCOMP | https://www.nasdaq.com/articles/santa-claus-rally-sets-in%3A-4-stocks-from-top-sectors-to-play | nan | nan | Santa Claus landed on Wall Street this year earlier than scheduled as the key equity indexes jumped last week. Thanks to the Federal Reserve's dovish stance and tone, U.S. stocks had an amazing week, as they closed their longest winning streak since 2017. The stocks are now on their way for the eighth weekly win. The Dow Jones hit its fifth straight record yesterday.
We expect four top-ranked stocks come from top-ranked sectors — Otter Tail OTTR, Rollins ROL, DaVita DVA and NetEase NTES — to realize the Fed-induced Santa Claus rally in 2023.You can see the complete list of today’s Zacks #1 Rank stocks here.
What is Santa Rally?
The Santa Claus Rally refers to the jump in stock prices in the week between Christmas and New Year's Day. There are several factors behind this surge, including “tax considerations, happiness around Wall Street, people investing their Christmas bonuses and the fact that the pessimists are usually on vacation this week,” as per Investopedia.
In fact, some even believe that investors buy stocks during this period to cash in on another strong equity event, known as the January Effect, which takes place soon after. If we dig a little deeper, the consistency of this rally would be more visible.
Are We Primed for a Super-Strong Santa Rally This Year?
With just a handful of days remaining for Christmas and sentiments still strong (in fact, a renewed optimism is playing a key role in pushing Wall Street higher thanks to a less-hawkish Fed), it looks like such a solid urge is going to continue.
Wall Street's upbeat outlook on interest rate cuts is encouraging brokers to make more optimistic calls on stocks, too. Goldman Sachs now sees the S&P 500 closing out 2024 at 5,100, as quoted on Yahoo Finance. The broker house’s initial outlook was a level of 4,700 by 2024-end.
The financial markets celebrated the Federal Reserve's change in its outlook last week. The central bank hinted at a higher number of anticipated rate cuts (by about 75 bps) in 2024 than previously predicted and acknowledged the effectiveness of its anti-inflation campaign.
"Above-consensus retail sales growth further evidenced economic resilience, while lower-than-expected jobless claims affirmed that the labor market remains healthy," Goldman Sachs' equity strategy team led by David Kostin wrote in a research note over the weekend, as quoted on Yahoo Finance.
Against this backdrop, we have highlighted a few top-ranked stocks that come from top-ranked sectors. These stocks are likely to gain from Santa Rally 2023.
Utilities – Zacks Sector Rank #1
Utility companies are often debt-dependent due to their significant infrastructure investments. Lower interest rates reduce the cost of servicing this debt, improving profitability. Moreover, utilities are generally seen as stable, income-generating investments, making them attractive in a low-rate environment.
Otter Tail – OTTER TAIL's primary business is the production, transmission, distribution and sale of electric energy. The stock has a Zacks Rank #1 (Strong Buy). OTTR belongs to a top-ranked Zacks Industry (top 23%).
Construction – Zacks Sector Rank #2
U.S. single-family homebuilding jumped to more than a 1-1/2-year high in November and could gain further momentum on the back of falling mortgage rates and incentives from builders likely to draw potential buyers back into the housing market. The Fed’s potential easy money policy from 2024 has set the momentum in the construction sector.
Rollins – Rollins provides pest and termite control services to residential and commercial customers. The company offers protection against termite damage, insects and rodents to homes and businesses, including food manufacturers, food service establishments, hotels, transportation companies and retailers. The stock has a Zacks Rank #2 (Buy). ROL comes from a top-ranked Zacks Industry (top 1%).
Medical – Zacks Sector Rank #2
The sector boasts a safe-haven status amid market crisis. The tensions in the Middle East and chances of an economic slowdown next year may cause global markets to be a little volatile. Against this backdrop, medical/healthcare investing makes sense. The job growth in the sector remains decent.
DaVita – It is a leading provider of dialysis services in the United States to patients suffering from chronic kidney failure, also known as end-stage renal disease. The stock has a Zacks Rank #1. DVA hails from a top-ranked Zacks Industry (top 18%).
Technology – Zacks Rank #4
The areas of blockchain, digital technology and data sharing have surged this year courtesy of the space’s inherent strength and a less-hawkish Fed. With the Fed likely to be more benevolent in 2024 and the strength of data sharing and AI space remaining intact, Internet - Software and Services stocks should continue to do well in 2024.
NetEase– NetEase is an Internet technology company engaged in the development of applications, services and other technologies for the Internet in China. The stock has a Zacks Rank #1. NTES comes from a top-ranked Zacks Industry (top 5%).
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
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DaVita Inc. (DVA) : Free Stock Analysis Report
NetEase, Inc. (NTES) : Free Stock Analysis Report
Rollins, Inc. (ROL) : Free Stock Analysis Report
Otter Tail Corporation (OTTR) : Free Stock Analysis Report
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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. | There are several factors behind this surge, including “tax considerations, happiness around Wall Street, people investing their Christmas bonuses and the fact that the pessimists are usually on vacation this week,” as per Investopedia. With just a handful of days remaining for Christmas and sentiments still strong (in fact, a renewed optimism is playing a key role in pushing Wall Street higher thanks to a less-hawkish Fed), it looks like such a solid urge is going to continue. "Above-consensus retail sales growth further evidenced economic resilience, while lower-than-expected jobless claims affirmed that the labor market remains healthy," Goldman Sachs' equity strategy team led by David Kostin wrote in a research note over the weekend, as quoted on Yahoo Finance. | We expect four top-ranked stocks come from top-ranked sectors — Otter Tail OTTR, Rollins ROL, DaVita DVA and NetEase NTES — to realize the Fed-induced Santa Claus rally in 2023.You can see the complete list of today’s Zacks #1 Rank stocks here. Utilities – Zacks Sector Rank #1 Utility companies are often debt-dependent due to their significant infrastructure investments. Click to get this free report DaVita Inc. (DVA) : Free Stock Analysis Report NetEase, Inc. (NTES) : Free Stock Analysis Report Rollins, Inc. (ROL) : Free Stock Analysis Report Otter Tail Corporation (OTTR) : Free Stock Analysis Report To read this article on Zacks.com click here. | We expect four top-ranked stocks come from top-ranked sectors — Otter Tail OTTR, Rollins ROL, DaVita DVA and NetEase NTES — to realize the Fed-induced Santa Claus rally in 2023.You can see the complete list of today’s Zacks #1 Rank stocks here. The stock has a Zacks Rank #2 (Buy). Click to get this free report DaVita Inc. (DVA) : Free Stock Analysis Report NetEase, Inc. (NTES) : Free Stock Analysis Report Rollins, Inc. (ROL) : Free Stock Analysis Report Otter Tail Corporation (OTTR) : Free Stock Analysis Report To read this article on Zacks.com click here. | We expect four top-ranked stocks come from top-ranked sectors — Otter Tail OTTR, Rollins ROL, DaVita DVA and NetEase NTES — to realize the Fed-induced Santa Claus rally in 2023.You can see the complete list of today’s Zacks #1 Rank stocks here. Wall Street's upbeat outlook on interest rate cuts is encouraging brokers to make more optimistic calls on stocks, too. Be First to New Top 10 Stocks >> Want the latest recommendations from Zacks Investment Research? | 2a7a3b41-f1e5-42a0-8943-83cfcfd65999 |
710396.0 | 2023-12-16 22:00:00 UTC | Homebuilding Market Poised for a 2024 Rebound: 4 Stocks to Watch | DCOMP | https://www.nasdaq.com/articles/homebuilding-market-poised-for-a-2024-rebound%3A-4-stocks-to-watch | nan | nan | The homebuilding industry has been one of the worst sufferers of the Federal Reserve’s aggressive interest rate hike policy. While demand remains high, higher mortgage rates have discouraged buyers from investing in new homes.
However, the homebuilding market appears to be bouncing back, as the Federal Reserve indicated at ending its monetary tightening campaign after inflation declined sharply over the past year.
Hopes of rate cuts in 2024 have been giving homebuilders their lost confidence back. Also, single-family homebuilding surged in November as mortgage rates have started falling.
Homebuilder Confidence Rebounds
The National Association of Homebuilders/Wells Fargo Index reading showed that homebuilder confidence bounced back to 37 in December from 34 in November, higher than the consensus estimate of 36.
Also, housing starts jumped in November. Single-family housing starts that account for the majority of the homebuilding in the nation rose a solid 18% to a seasonally adjusted annual rate of 1.143 million in November.
Housing permits for single-family homes jumped 0.7% in November to a seasonally adjusted annual rate of 976,000 units.
Although the confidence level among homebuilders is still low, it is gradually trying to rebound on easing interest rates, which is likely to bolster sales in the near term. Homebuilders have struggled to attract buyers over the past couple of years.
The Federal Reserve’s monetary tightening campaign to curb 40-year-high inflation saw it increasing interest rates from 0-0.25% in March 2022 to the present rate of 5.25-5.50%. This pushed the 30-year fixed mortgage rate to nearly 8% over the past year, leaving buyers struggling to purchase new property.
However, the Federal Reserve’s aggressive rate hike policy has been bearing fruit, with inflation now a lot lower from its peak of 9.1% in June 2022. The Fed left interest rates unchanged for the third straight time in its December policy meeting and hinted at ending its monetary tightening campaign soon.
The 30-year fixed mortgage rate averaged 6.95% last week, a lot lower than the 23-year high of 7.79% in late October.
Also, the Federal Reserve has said that it doesn’t plan to keep interest rates high for a longer period and expectation is high that the central bank may go for three 25-basis point rate cuts in 2024, which is further going to bring down mortgage rates and help homebuilders.
Stocks in Focus
Given the promising outlook, it would be ideal to track homebuilding stocks like Dream Finders Homes, Inc. DFH, Lennar Corporation LEN, D.R. Horton, Inc. DHI and Toll Brothers Inc. TOL.
Dream Finders Homes, Inc. is a homebuilding company that operates principally in Florida, Texas, North Carolina, South Carolina, Georgia, Colorado, Virginia and Maryland. DFH is based in Jacksonville, FL.
Dream Finders Homes has an expected earnings growth rate of 12% for next year. The Zacks Consensus Estimate for current-year earnings has improved 9.6% over the last 60 days. DFH presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Lennar Corporation is engaged in homebuilding and financial services in the United States. LEN’s reportable segments consist of Homebuilding, Lennar Financial Services, Rialto and Lennar Multifamily.
Lennar Corporation’s expected earnings growth rate for next year is 8.5%. The Zacks Consensus Estimate for current-year earnings has improved 1.2% over the past 60 days. LEN presently carries a Zacks Rank #2 (Buy).
D.R. Horton, Inc. is one of the leading national homebuilders, primarily engaged in the construction and sale of single-family houses both in the entry-level and move-up markets. DHI’s operations are spread across 11 markets in 33 states in the East, Midwest, Southeast, South Central, Southwest and West regions of the United States.
D.R. Horton has an expected earnings growth rate of 7.4% for next year. The Zacks Consensus Estimate for current-year earnings has improved 1.1% over the last 30 days. DHI presently carries a Zacks Rank #3 (Hold).
Toll Brothers Inc. builds single-family detached and attached home communities, master-planned luxury residential resort-style golf communities, and urban low, mid, and high-rise communities, principally on the land it develops and improves. TOL operates in Arizona, California, Florida, Delaware, Maryland, Pennsylvania, and South Carolina. Toll Brothers offers homes under two segments, namely Traditional Home Building Product and City Living.
Toll Brothers’ expected earnings growth rate for the current year is 2.7%. The Zacks Consensus Estimate for current-year earnings improved 1.7% over the past 60 days. Toll Brothers presently has a Zacks Rank #3.
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Toll Brothers Inc. (TOL) : Free Stock Analysis Report
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D.R. Horton, Inc. (DHI) : Free Stock Analysis Report
Dream Finders Homes, Inc. (DFH) : Free Stock Analysis Report
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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. | However, the homebuilding market appears to be bouncing back, as the Federal Reserve indicated at ending its monetary tightening campaign after inflation declined sharply over the past year. Single-family housing starts that account for the majority of the homebuilding in the nation rose a solid 18% to a seasonally adjusted annual rate of 1.143 million in November. The Fed left interest rates unchanged for the third straight time in its December policy meeting and hinted at ending its monetary tightening campaign soon. | Stocks in Focus Given the promising outlook, it would be ideal to track homebuilding stocks like Dream Finders Homes, Inc. DFH, Lennar Corporation LEN, D.R. Click to get this free report Toll Brothers Inc. (TOL) : Free Stock Analysis Report Lennar Corporation (LEN) : Free Stock Analysis Report D.R. Horton, Inc. (DHI) : Free Stock Analysis Report Dream Finders Homes, Inc. (DFH) : Free Stock Analysis Report To read this article on Zacks.com click here. | Also, the Federal Reserve has said that it doesn’t plan to keep interest rates high for a longer period and expectation is high that the central bank may go for three 25-basis point rate cuts in 2024, which is further going to bring down mortgage rates and help homebuilders. Click to get this free report Toll Brothers Inc. (TOL) : Free Stock Analysis Report Lennar Corporation (LEN) : Free Stock Analysis Report D.R. Horton, Inc. (DHI) : Free Stock Analysis Report Dream Finders Homes, Inc. (DFH) : Free Stock Analysis Report To read this article on Zacks.com click here. | Also, the Federal Reserve has said that it doesn’t plan to keep interest rates high for a longer period and expectation is high that the central bank may go for three 25-basis point rate cuts in 2024, which is further going to bring down mortgage rates and help homebuilders. Toll Brothers presently has a Zacks Rank #3. Be First to New Top 10 Stocks >> Want the latest recommendations from Zacks Investment Research? | 8f5309ff-efe4-4245-badd-51515a78005e |
710397.0 | 2023-12-16 22:00:00 UTC | Health Care Sector Update for 12/20/2023: ARGX, BLUE, GH, XLV, IBB | DCOMP | https://www.nasdaq.com/articles/health-care-sector-update-for-12-20-2023%3A-argx-blue-gh-xlv-ibb | nan | nan | Health care stocks were mixed pre-bell Wednesday as the iShares Biotechnology ETF (IBB) was down 0.2% and the Health Care Select Sector SPDR Fund (XLV) unchanged recently.
Argenx (ARGX) was retreating by more than 24% after saying the clinical study of its efgartigimod subcutaneous therapeutic candidate for pemphigus vulgaris and pemphigus foliaceus did not meet its primary endpoint.
Bluebird bio (BLUE) was over 48% lower after it priced an underwritten public offering of about 83.3 million common shares at $1.50 apiece for expected gross proceeds of $125 million.
Guardant Health (GH) was down more than 6% after saying its premarket approval application for its Shield blood test to screen for colorectal cancer is tentatively set for review by the US Food and Drug Administration's Molecular and Clinical Genetics Panel of the Medical Devices Advisory Committee on March 28.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Health care stocks were mixed pre-bell Wednesday as the iShares Biotechnology ETF (IBB) was down 0.2% and the Health Care Select Sector SPDR Fund (XLV) unchanged recently. Argenx (ARGX) was retreating by more than 24% after saying the clinical study of its efgartigimod subcutaneous therapeutic candidate for pemphigus vulgaris and pemphigus foliaceus did not meet its primary endpoint. Guardant Health (GH) was down more than 6% after saying its premarket approval application for its Shield blood test to screen for colorectal cancer is tentatively set for review by the US Food and Drug Administration's Molecular and Clinical Genetics Panel of the Medical Devices Advisory Committee on March 28. | Health care stocks were mixed pre-bell Wednesday as the iShares Biotechnology ETF (IBB) was down 0.2% and the Health Care Select Sector SPDR Fund (XLV) unchanged recently. Argenx (ARGX) was retreating by more than 24% after saying the clinical study of its efgartigimod subcutaneous therapeutic candidate for pemphigus vulgaris and pemphigus foliaceus did not meet its primary endpoint. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Bluebird bio (BLUE) was over 48% lower after it priced an underwritten public offering of about 83.3 million common shares at $1.50 apiece for expected gross proceeds of $125 million. Guardant Health (GH) was down more than 6% after saying its premarket approval application for its Shield blood test to screen for colorectal cancer is tentatively set for review by the US Food and Drug Administration's Molecular and Clinical Genetics Panel of the Medical Devices Advisory Committee on March 28. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Health care stocks were mixed pre-bell Wednesday as the iShares Biotechnology ETF (IBB) was down 0.2% and the Health Care Select Sector SPDR Fund (XLV) unchanged recently. Argenx (ARGX) was retreating by more than 24% after saying the clinical study of its efgartigimod subcutaneous therapeutic candidate for pemphigus vulgaris and pemphigus foliaceus did not meet its primary endpoint. Bluebird bio (BLUE) was over 48% lower after it priced an underwritten public offering of about 83.3 million common shares at $1.50 apiece for expected gross proceeds of $125 million. | 9dc09937-b2c4-48e3-9ace-ac97d9894604 |
710398.0 | 2023-12-16 22:00:00 UTC | Consumer Sector Update for 12/20/2023: WGO, GIS, BABA, XLP, XLY | DCOMP | https://www.nasdaq.com/articles/consumer-sector-update-for-12-20-2023%3A-wgo-gis-baba-xlp-xly | nan | nan | Consumer stocks were leaning lower premarket Wednesday as the Consumer Staples Select Sector SPDR Fund (XLP) and Consumer Discretionary Select Sector SPDR Fund (XLY) were both down 0.3% recently.
Winnebago Industries (WGO) was more than 4% lower after it reported fiscal Q1 adjusted earnings of $1.06 per diluted share, down from $2.07 a year earlier. Analysts polled by Capital IQ expected $1.17.
General Mills (GIS) was down more than 3% after it reported fiscal Q2 net sales of $5.14 billion, down from $5.22 billion a year earlier. Analysts surveyed by Capital IQ expected $5.36 billion.
Alibaba Group Holding (BABA) said Chief Executive Eddie Yongming Wu will also serve as CEO of Taobao and Tmall Group, from Dec. 20. Alibaba was marginally advancing pre-bell.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Winnebago Industries (WGO) was more than 4% lower after it reported fiscal Q1 adjusted earnings of $1.06 per diluted share, down from $2.07 a year earlier. Analysts surveyed by Capital IQ expected $5.36 billion. Alibaba Group Holding (BABA) said Chief Executive Eddie Yongming Wu will also serve as CEO of Taobao and Tmall Group, from Dec. 20. | Consumer stocks were leaning lower premarket Wednesday as the Consumer Staples Select Sector SPDR Fund (XLP) and Consumer Discretionary Select Sector SPDR Fund (XLY) were both down 0.3% recently. General Mills (GIS) was down more than 3% after it reported fiscal Q2 net sales of $5.14 billion, down from $5.22 billion a year earlier. Analysts surveyed by Capital IQ expected $5.36 billion. | Consumer stocks were leaning lower premarket Wednesday as the Consumer Staples Select Sector SPDR Fund (XLP) and Consumer Discretionary Select Sector SPDR Fund (XLY) were both down 0.3% recently. General Mills (GIS) was down more than 3% after it reported fiscal Q2 net sales of $5.14 billion, down from $5.22 billion a year earlier. Alibaba Group Holding (BABA) said Chief Executive Eddie Yongming Wu will also serve as CEO of Taobao and Tmall Group, from Dec. 20. | Consumer stocks were leaning lower premarket Wednesday as the Consumer Staples Select Sector SPDR Fund (XLP) and Consumer Discretionary Select Sector SPDR Fund (XLY) were both down 0.3% recently. General Mills (GIS) was down more than 3% after it reported fiscal Q2 net sales of $5.14 billion, down from $5.22 billion a year earlier. Analysts surveyed by Capital IQ expected $5.36 billion. | 8e92b6f8-a9c8-4316-a54d-465d5d87aa03 |
710399.0 | 2023-12-16 22:00:00 UTC | Financial Sector Update for 12/20/2023: AON, CACC, FULT, XLF, FAS, FAZ | DCOMP | https://www.nasdaq.com/articles/financial-sector-update-for-12-20-2023%3A-aon-cacc-fult-xlf-fas-faz | nan | nan | Financial stocks were leaning lower premarket Wednesday with the Financial Select Sector SPDR Fund (XLF) recently declining by 0.2%.
The Direxion Daily Financial Bull 3X Shares (FAS) was down 0.6% and its bearish counterpart Direxion Daily Financial Bear 3X Shares (FAZ) was 0.6% higher.
Aon (AON) was shedding over 7% in value after saying it signed a definitive agreement to acquire property and casualty broker NFP from Madison Dearborn Partners and HPS Investment Partners for a total consideration of around $13.4 billion at the time of close.
Credit Acceptance (CACC) was 1% higher after saying it closed its offering of $600 million of 9.250% senior notes due 2028 and completed a cash tender offer for its 5.125% senior notes due 2024.
Fulton Financial (FULT) was advancing 0.6% after saying its board increased its quarterly dividend to $0.17 per share from $0.16, payable on Jan. 12 to shareholders of record Jan. 2.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Aon (AON) was shedding over 7% in value after saying it signed a definitive agreement to acquire property and casualty broker NFP from Madison Dearborn Partners and HPS Investment Partners for a total consideration of around $13.4 billion at the time of close. Credit Acceptance (CACC) was 1% higher after saying it closed its offering of $600 million of 9.250% senior notes due 2028 and completed a cash tender offer for its 5.125% senior notes due 2024. Fulton Financial (FULT) was advancing 0.6% after saying its board increased its quarterly dividend to $0.17 per share from $0.16, payable on Jan. 12 to shareholders of record Jan. 2. | The Direxion Daily Financial Bull 3X Shares (FAS) was down 0.6% and its bearish counterpart Direxion Daily Financial Bear 3X Shares (FAZ) was 0.6% higher. Aon (AON) was shedding over 7% in value after saying it signed a definitive agreement to acquire property and casualty broker NFP from Madison Dearborn Partners and HPS Investment Partners for a total consideration of around $13.4 billion at the time of close. Credit Acceptance (CACC) was 1% higher after saying it closed its offering of $600 million of 9.250% senior notes due 2028 and completed a cash tender offer for its 5.125% senior notes due 2024. | The Direxion Daily Financial Bull 3X Shares (FAS) was down 0.6% and its bearish counterpart Direxion Daily Financial Bear 3X Shares (FAZ) was 0.6% higher. Credit Acceptance (CACC) was 1% higher after saying it closed its offering of $600 million of 9.250% senior notes due 2028 and completed a cash tender offer for its 5.125% senior notes due 2024. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Financial stocks were leaning lower premarket Wednesday with the Financial Select Sector SPDR Fund (XLF) recently declining by 0.2%. The Direxion Daily Financial Bull 3X Shares (FAS) was down 0.6% and its bearish counterpart Direxion Daily Financial Bear 3X Shares (FAZ) was 0.6% higher. Aon (AON) was shedding over 7% in value after saying it signed a definitive agreement to acquire property and casualty broker NFP from Madison Dearborn Partners and HPS Investment Partners for a total consideration of around $13.4 billion at the time of close. | a842e8d8-1a66-49ae-a279-3bd169815c91 |
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