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710400.0 | 2023-12-16 22:00:00 UTC | EIA Expects Record Oil & Liquid Exports in '24: 3 Stocks to Gain | DCOMP | https://www.nasdaq.com/articles/eia-expects-record-oil-liquid-exports-in-24%3A-3-stocks-to-gain | nan | nan | The West Texas Intermediate (WTI) crude oil price is once again nearing the $75 per barrel threshold and is expected to stay robust into the coming year. Specifically, the U.S. Energy Information Administration (“EIA”) anticipates a WTI oil price of $78.07 per barrel in 2024, slightly surpassing its projected figure of $77.63 for the current year. Contributing to the strength of commodity prices are additional voluntary production cuts implemented by several OPEC countries.
Although there has been a slowdown in drilling activities, handsome oil prices may provide incentives to explorers and producers to produce more of the commodity. Increasing liquid production will thus, in turn, increase net exports of the U.S. petroleum and other liquids. The EIA anticipates that net exports of crude oil and petroleum products from the domestic market will achieve a record peak of nearly 2 million barrels per day (Bbl/D) in 2024. This projection indicates a rise from 1.8 million Bbl/D in the current year and 1.2 million Bbl/D in 2022.
Therefore, it is an opportune moment for investors to monitor prominent upstream companies that will continue contributing to oil production in the United States in the coming year and beyond.
Employing our Stock Screener, we have identified three stocks – EOG Resources, Inc. EOG, Matador Resources Company MTDR and Diamondback Energy, Inc. FANG. While one carries a Zacks Rank #2 (Buy), the remaining two have a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
3 Stocks in Focus
EOG Resources is a leading oil and natural gas exploration and production company, capitalizing on handsome crude prices. It has many undrilled premium locations in prolific shale resources comprising the Permian Basin and Eagle Ford Shale play, resulting in a brightened production outlook.
The leading upstream energy player, with a Zacks Rank of 2 at present, is strongly committed to returning capital to shareholders. Since transitioning to premium drilling, the company has returned a handsome amount of cash to stockholders. Moreover, with the employment of premium drilling, EOG can reduce its cash operating costs per barrel of oil equivalent, aiding its bottom line.
Matador Resources has a strong presence in the oil-rich core acres of the Wolfcamp and Bone Spring plays in the Delaware Basin. Promising oil prices are likely to aid it in increasing production volumes.
The company acquired Advance Energy Partners Holdings, LLC, in the largest deal in its two-decade history. MTDR, carrying a Zacks Rank #3 at present, expects the buyout to be accretive to important valuation and financial metrics since the deal involves a strategic bolt-on of 18,500 net acres in the core of the Northern Delaware Basin, a sub-basin of the prolific Permian Basin.
Diamondback Energy, a leading pure-play Permian operator, has reported ongoing enhancements in the average productivity per well in the Midland Basin throughout 2023. Thus, the #3 Ranked company may continue to witness increased production volumes. FANG also has an investment-grade balance sheet.
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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 West Texas Intermediate (WTI) crude oil price is once again nearing the $75 per barrel threshold and is expected to stay robust into the coming year. Specifically, the U.S. Energy Information Administration (“EIA”) anticipates a WTI oil price of $78.07 per barrel in 2024, slightly surpassing its projected figure of $77.63 for the current year. The EIA anticipates that net exports of crude oil and petroleum products from the domestic market will achieve a record peak of nearly 2 million barrels per day (Bbl/D) in 2024. | Employing our Stock Screener, we have identified three stocks – EOG Resources, Inc. EOG, Matador Resources Company MTDR and Diamondback Energy, Inc. FANG. 3 Stocks in Focus EOG Resources is a leading oil and natural gas exploration and production company, capitalizing on handsome crude prices. Click to get this free report EOG Resources, Inc. (EOG) : Free Stock Analysis Report Diamondback Energy, Inc. (FANG) : Free Stock Analysis Report Matador Resources Company (MTDR) : Free Stock Analysis Report To read this article on Zacks.com click here. | Employing our Stock Screener, we have identified three stocks – EOG Resources, Inc. EOG, Matador Resources Company MTDR and Diamondback Energy, Inc. FANG. 3 Stocks in Focus EOG Resources is a leading oil and natural gas exploration and production company, capitalizing on handsome crude prices. Click to get this free report EOG Resources, Inc. (EOG) : Free Stock Analysis Report Diamondback Energy, Inc. (FANG) : Free Stock Analysis Report Matador Resources Company (MTDR) : Free Stock Analysis Report To read this article on Zacks.com click here. | The EIA anticipates that net exports of crude oil and petroleum products from the domestic market will achieve a record peak of nearly 2 million barrels per day (Bbl/D) in 2024. 3 Stocks in Focus EOG Resources is a leading oil and natural gas exploration and production company, capitalizing on handsome crude prices. Be First to New Top 10 Stocks >> Want the latest recommendations from Zacks Investment Research? | 38f5487b-d58d-4aa9-b599-d3dd8bff8222 |
710401.0 | 2023-12-16 22:00:00 UTC | US natgas prices edge up 1% on record LNG feedgas, higher demand | DCOMP | https://www.nasdaq.com/articles/us-natgas-prices-edge-up-1-on-record-lng-feedgas-higher-demand | nan | nan | By Scott DiSavino
Dec 20 (Reuters) - U.S. natural gas futures gained about 1% to a one-week high on Wednesday amid record amounts of gas flow to liquefied natural gas (LNG) export plants and on forecasts for higher gas demand this week than previously expected.
That price increase came despite record gas production and forecasts for milder weather and lower heating demand next week that should allow utilities to keep pulling less gas from storage than usual through the end of December.
Analysts forecast there was around 8.7% more gas in storage than usual for this time of year. EIA/GASNGAS/POLL
Front-month gas futures NGc1 for January delivery on the New York Mercantile Exchange rose 2.6 cents, or 1.0%, to $2.518 per million British thermal units at 9:04 a.m. EST (1404 GMT), putting the contract on track for its highest close since Dec. 8.
A lack of big price moves in recent weeks has cut historic or actual 30-day close-to-close futures volatility to 45.3%, the lowest since September 2021 for a second day in a row.
Historic daily volatility hit a record high of 177.7% in February 2022 and a record low of 7.3% in June 1991. Historic volatility has averaged 71.0% so far this year, versus a record high of 92.8% in 2022 and a five-year (2018-2022) average of 57.9%.
Record production and ample gas in storage has weighed on futures prices for weeks, prompting some traders to forecast that prices this winter (November-March) have already peaked in November.
Looking ahead, analysts project U.S. gas prices and demand will rise in coming years as new LNG export plants enter service in the U.S., Canada and Mexico to meet rising global usage of the fuel.
But expected delays at Exxon Mobil XOM.N/QatarEnergy's Golden Pass LNG export plant in Texas and Venture Global LNG's Plaquemines in Louisiana have caused some analysts to reduce their forecasts for U.S. gas demand and prices in 2024. NGAS/POLL
SUPPLY AND DEMAND
Financial firm LSEG said average gas output in the lower 48 U.S. states rose to 108.6 billion cubic feet per day (bcfd) so far in December from a record 108.3 bcfd in November.
Meteorologists projected the weather would remain warmer than normal through Jan. 1 before turning near normal from Jan. 2-4.
LSEG forecast U.S. gas demand in the Lower 48 states, including exports, would drop from 126.0 bcfd this week to 120.4 bcfd next week when many businesses and government offices shut for the Christmas holiday.
The forecast for this week was higher than LSEG's outlook on Tuesday, while its forecast for next week was lower.
U.S. pipeline exports to Mexico fell to an average of 3.9 bcfd so far in December, down from 5.6 bcfd in November and a record 7.0 bcfd in August.
Analysts, however, expect exports to Mexico to rise in coming months once U.S. energy company New Fortress Energy's NFE.O plant in Altamira starts pulling in U.S. gas to turn into LNG for export in December.
Gas flows to the seven big U.S. LNG export plants rose to an average of 14.7 bcfd so far in December, up from a record 14.3 bcfd in November.
Week ended Dec 15 Forecast
Week ended Dec 8 Actual
Year ago Dec 15
Five-year average
Dec 15
U.S. weekly natgas storage change (bcf):
-80
-55
-82
-107
U.S. total natgas in storage (bcf):
3,584
3,664
3,337
3,297
U.S. total storage versus 5-year average
8.7%
7.6%
Global Gas Benchmark Futures ($ per mmBtu)
Current Day
Prior Day
This Month Last Year
Prior Year Average 2022
Five Year Average (2017-2021)
Henry Hub NGc1
2.50
2.49
5.77
6.54
2.89
Title Transfer Facility (TTF) TRNLTTFMc1
10.54
10.76
36.68
40.50
7.49
Japan Korea Marker (JKM) JKMc1
11.78
12.40
32.34
34.11
8.95
LSEG Heating (HDD), Cooling (CDD) and Total (TDD) Degree Days
Two-Week Total Forecast
Current Day
Prior Day
Prior Year
10-Year Norm
30-Year Norm
U.S. GFS HDDs
348
346
462
408
426
U.S. GFS CDDs
1
1
3
5
4
U.S. GFS TDDs
349
347
365
413
430
LSEG U.S. Weekly GFS Supply and Demand Forecasts
Prior Week
Current Week
Next Week
This Week Last Year
Five-Year (2018-2022) Average For Month
U.S. Supply (bcfd)
U.S. Lower 48 Dry Production
108.9
108.7
108.8
98.6
94.2
U.S. Imports from Canada8
8.6
8.5
8.9
10.1
9.1
U.S. LNG Imports
0.0
0.0
0.0
0.0
0.2
Total U.S. Supply
117.5
117.2
117.6
108.7
103.5
U.S. Demand (bcfd)
U.S. Exports to Canada
3.4
3.2
3.2
2.1
3.2
U.S. Exports to Mexico
3.8
3.9
4.4
5.0
5.0
U.S. LNG Exports
14.7
15.0
14.6
12.1
8.6
U.S. Commercial
13.8
13.9
12.8
20.4
14.6
U.S. Residential
22.3
22.3
20.4
35.6
24.7
U.S. Power Plant
34.1
34.6
32.8
34.9
28.6
U.S. Industrial
24.7
24.7
24.1
27.1
25.0
U.S. Plant Fuel
5.4
5.4
5.4
5.4
5.3
U.S. Pipe Distribution
2.7
2.8
2.6
2.7
2.9
U.S. Vehicle Fuel
0.1
0.1
0.1
0.1
0.1
Total U.S. Consumption
103.1
103.8
98.2
126.2
101.2
Total U.S. Demand
125.0
126.0
120.4
145.4
118.0
U.S. Northwest River Forecast Center (NWRFC) at The Dalles Dam
Current Day % of Normal Forecast
Prior Day % of Normal Forecast
2023
% of Normal Actual
2022 % of Normal Actual
2021 % of Normal Actual
Apr-Sep
80
82
83
107
81
Jan-Jul
80
81
77
102
79
Oct-Sep
81
81
76
103
81
U.S. weekly power generation percent by fuel - EIA
Week ended Dec 22
Week ended Dec 15
Week ended Dec 8
Week ended Dec 1
Week ended Nov 24
Wind
11
11
12
10
11
Solar
3
3
3
3
3
Hydro
6
6
5
6
6
Other
2
2
2
2
2
Petroleum
Natural Gas
41
41
40
42
39
Coal
17
17
17
17
16
Nuclear
20
20
21
20
22
SNL U.S. Natural Gas Next-Day Prices ($ per mmBtu)
Hub
Current Day
Prior Day
Henry Hub NG-W-HH-SNL
2.44
2.59
Transco Z6 New York NG-CG-NY-SNL
2.20
2.21
PG&E Citygate NG-CG-PGE-SNL
3.97
3.97
Eastern Gas (old Dominion South) NG-PCN-APP-SNL
1.85
1.94
Chicago Citygate NG-CG-CH-SNL
2.11
2.26
Algonquin Citygate NG-CG-BS-SNL
2.99
2.86
SoCal Citygate NG-SCL-CGT-SNL
3.60
3.30
Waha Hub NG-WAH-WTX-SNL
1.33
1.73
AECO NG-ASH-ALB-SNL
1.25
1.38
SNL U.S. Power Next-Day Prices ($ per megawatt-hour)
Hub
Current Day
Prior Day
New England EL-PK-NPMS-SNL
35.00
33.00
PJM West EL-PK-PJMW-SNL
37.75
43.25
Ercot North EL-PK-ERTN-SNL
17.25
15.00
Mid C EL-PK-MIDC-SNL
51.00
50.00
Palo Verde EL-PK-PLVD-SNL
43.00
50.25
SP-15 EL-PK-SP15-SNL
51.00
51.50
(Reporting by Scott DiSavino Editing by Bernadette Baum)
((scott.disavino@thomsonreuters.com; +1 332 219 1922; Reuters Messaging: scott.disavino.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. | EIA/GASNGAS/POLL Front-month gas futures NGc1 for January delivery on the New York Mercantile Exchange rose 2.6 cents, or 1.0%, to $2.518 per million British thermal units at 9:04 a.m. EST (1404 GMT), putting the contract on track for its highest close since Dec. 8. A lack of big price moves in recent weeks has cut historic or actual 30-day close-to-close futures volatility to 45.3%, the lowest since September 2021 for a second day in a row. Consumption 103.1 103.8 98.2 126.2 101.2 Total U.S. Demand 125.0 126.0 120.4 145.4 118.0 U.S. Northwest River Forecast Center (NWRFC) at The Dalles Dam Current Day % of Normal Forecast Prior Day % of Normal Forecast 2023 % of Normal Actual 2022 % of Normal Actual 2021 % of Normal Actual Apr-Sep 80 82 83 107 81 Jan-Jul 80 81 77 102 79 Oct-Sep 81 81 76 103 81 U.S. weekly power generation percent by fuel - EIA Week ended Dec 22 Week ended Dec 15 Week ended Dec 8 Week ended Dec 1 Week ended Nov 24 Wind 11 11 12 10 11 Solar 3 3 3 3 3 Hydro 6 6 5 6 6 Other 2 2 2 2 2 Petroleum Natural Gas 41 41 40 42 39 Coal 17 17 17 17 16 Nuclear 20 20 21 20 22 SNL U.S. Natural Gas Next-Day Prices ($ per mmBtu) Hub Current Day Prior Day Henry Hub NG-W-HH-SNL 2.44 2.59 Transco Z6 New York NG-CG-NY-SNL 2.20 2.21 PG&E Citygate NG-CG-PGE-SNL 3.97 3.97 Eastern Gas (old Dominion South) NG-PCN-APP-SNL 1.85 1.94 Chicago Citygate NG-CG-CH-SNL 2.11 2.26 Algonquin Citygate NG-CG-BS-SNL 2.99 2.86 SoCal Citygate NG-SCL-CGT-SNL 3.60 3.30 Waha Hub NG-WAH-WTX-SNL 1.33 1.73 | By Scott DiSavino Dec 20 (Reuters) - U.S. natural gas futures gained about 1% to a one-week high on Wednesday amid record amounts of gas flow to liquefied natural gas (LNG) export plants and on forecasts for higher gas demand this week than previously expected. Week ended Dec 15 Forecast Week ended Dec 8 Actual Year ago Dec 15 Five-year average Dec 15 U.S. weekly natgas storage change (bcf): -80 -55 -82 -107 U.S. total natgas in storage (bcf): 3,584 3,664 3,337 3,297 U.S. total storage versus 5-year average 8.7% 7.6% Global Gas Benchmark Futures ($ per mmBtu) Current Day Prior Day This Month Last Year Prior Year Average 2022 Five Year Average (2017-2021) Henry Hub NGc1 2.50 2.49 5.77 6.54 2.89 Title Transfer Facility (TTF) TRNLTTFMc1 10.54 10.76 36.68 40.50 7.49 Japan Korea Marker (JKM) JKMc1 11.78 12.40 32.34 34.11 8.95 LSEG Heating (HDD), Cooling (CDD) and Total (TDD) Degree Days Two-Week Total Forecast Current Day Prior Day Prior Year 10-Year Norm 30-Year Norm U.S. GFS HDDs 348 346 462 408 426 U.S. GFS CDDs 1 1 3 5 4 U.S. GFS TDDs 349 347 365 413 430 LSEG U.S. Weekly GFS Supply and Demand Forecasts Prior Week Current Week Next Week This Week Last Year Five-Year (2018-2022) Average For Month U.S. Supply (bcfd) U.S. Lower 48 Dry Production 108.9 108.7 108.8 98.6 94.2 U.S. Imports from Canada8 8.6 8.5 8.9 10.1 9.1 U.S. LNG Imports 0.0 0.0 0.0 0.0 0.2 Total U.S. Supply 117.5 117.2 117.6 108.7 103.5 U.S. Demand (bcfd) U.S. Exports to Canada 3.4 3.2 3.2 2.1 3.2 U.S. Exports to Mexico 3.8 3.9 4.4 5.0 5.0 U.S. LNG Exports 14.7 15.0 14.6 12.1 8.6 U.S. Commercial 13.8 13.9 12.8 20.4 14.6 U.S. Consumption 103.1 103.8 98.2 126.2 101.2 Total U.S. Demand 125.0 126.0 120.4 145.4 118.0 U.S. Northwest River Forecast Center (NWRFC) at The Dalles Dam Current Day % of Normal Forecast Prior Day % of Normal Forecast 2023 % of Normal Actual 2022 % of Normal Actual 2021 % of Normal Actual Apr-Sep 80 82 83 107 81 Jan-Jul 80 81 77 102 79 Oct-Sep 81 81 76 103 81 U.S. weekly power generation percent by fuel - EIA Week ended Dec 22 Week ended Dec 15 Week ended Dec 8 Week ended Dec 1 Week ended Nov 24 Wind 11 11 12 10 11 Solar 3 3 3 3 3 Hydro 6 6 5 6 6 Other 2 2 2 2 2 Petroleum Natural Gas 41 41 40 42 39 Coal 17 17 17 17 16 Nuclear 20 20 21 20 22 SNL U.S. Natural Gas Next-Day Prices ($ per mmBtu) Hub Current Day Prior Day Henry Hub NG-W-HH-SNL 2.44 2.59 Transco Z6 New York NG-CG-NY-SNL 2.20 2.21 PG&E Citygate NG-CG-PGE-SNL 3.97 3.97 Eastern Gas (old Dominion South) NG-PCN-APP-SNL 1.85 1.94 Chicago Citygate NG-CG-CH-SNL 2.11 2.26 Algonquin Citygate NG-CG-BS-SNL 2.99 2.86 SoCal Citygate NG-SCL-CGT-SNL 3.60 3.30 Waha Hub NG-WAH-WTX-SNL 1.33 1.73 | By Scott DiSavino Dec 20 (Reuters) - U.S. natural gas futures gained about 1% to a one-week high on Wednesday amid record amounts of gas flow to liquefied natural gas (LNG) export plants and on forecasts for higher gas demand this week than previously expected. Week ended Dec 15 Forecast Week ended Dec 8 Actual Year ago Dec 15 Five-year average Dec 15 U.S. weekly natgas storage change (bcf): -80 -55 -82 -107 U.S. total natgas in storage (bcf): 3,584 3,664 3,337 3,297 U.S. total storage versus 5-year average 8.7% 7.6% Global Gas Benchmark Futures ($ per mmBtu) Current Day Prior Day This Month Last Year Prior Year Average 2022 Five Year Average (2017-2021) Henry Hub NGc1 2.50 2.49 5.77 6.54 2.89 Title Transfer Facility (TTF) TRNLTTFMc1 10.54 10.76 36.68 40.50 7.49 Japan Korea Marker (JKM) JKMc1 11.78 12.40 32.34 34.11 8.95 LSEG Heating (HDD), Cooling (CDD) and Total (TDD) Degree Days Two-Week Total Forecast Current Day Prior Day Prior Year 10-Year Norm 30-Year Norm U.S. GFS HDDs 348 346 462 408 426 U.S. GFS CDDs 1 1 3 5 4 U.S. GFS TDDs 349 347 365 413 430 LSEG U.S. Weekly GFS Supply and Demand Forecasts Prior Week Current Week Next Week This Week Last Year Five-Year (2018-2022) Average For Month U.S. Supply (bcfd) U.S. Lower 48 Dry Production 108.9 108.7 108.8 98.6 94.2 U.S. Imports from Canada8 8.6 8.5 8.9 10.1 9.1 U.S. LNG Imports 0.0 0.0 0.0 0.0 0.2 Total U.S. Supply 117.5 117.2 117.6 108.7 103.5 U.S. Demand (bcfd) U.S. Exports to Canada 3.4 3.2 3.2 2.1 3.2 U.S. Exports to Mexico 3.8 3.9 4.4 5.0 5.0 U.S. LNG Exports 14.7 15.0 14.6 12.1 8.6 U.S. Commercial 13.8 13.9 12.8 20.4 14.6 U.S. Consumption 103.1 103.8 98.2 126.2 101.2 Total U.S. Demand 125.0 126.0 120.4 145.4 118.0 U.S. Northwest River Forecast Center (NWRFC) at The Dalles Dam Current Day % of Normal Forecast Prior Day % of Normal Forecast 2023 % of Normal Actual 2022 % of Normal Actual 2021 % of Normal Actual Apr-Sep 80 82 83 107 81 Jan-Jul 80 81 77 102 79 Oct-Sep 81 81 76 103 81 U.S. weekly power generation percent by fuel - EIA Week ended Dec 22 Week ended Dec 15 Week ended Dec 8 Week ended Dec 1 Week ended Nov 24 Wind 11 11 12 10 11 Solar 3 3 3 3 3 Hydro 6 6 5 6 6 Other 2 2 2 2 2 Petroleum Natural Gas 41 41 40 42 39 Coal 17 17 17 17 16 Nuclear 20 20 21 20 22 SNL U.S. Natural Gas Next-Day Prices ($ per mmBtu) Hub Current Day Prior Day Henry Hub NG-W-HH-SNL 2.44 2.59 Transco Z6 New York NG-CG-NY-SNL 2.20 2.21 PG&E Citygate NG-CG-PGE-SNL 3.97 3.97 Eastern Gas (old Dominion South) NG-PCN-APP-SNL 1.85 1.94 Chicago Citygate NG-CG-CH-SNL 2.11 2.26 Algonquin Citygate NG-CG-BS-SNL 2.99 2.86 SoCal Citygate NG-SCL-CGT-SNL 3.60 3.30 Waha Hub NG-WAH-WTX-SNL 1.33 1.73 | Gas flows to the seven big U.S. LNG export plants rose to an average of 14.7 bcfd so far in December, up from a record 14.3 bcfd in November. Week ended Dec 15 Forecast Week ended Dec 8 Actual Year ago Dec 15 Five-year average Dec 15 U.S. weekly natgas storage change (bcf): -80 -55 -82 -107 U.S. total natgas in storage (bcf): 3,584 3,664 3,337 3,297 U.S. total storage versus 5-year average 8.7% 7.6% Global Gas Benchmark Futures ($ per mmBtu) Current Day Prior Day This Month Last Year Prior Year Average 2022 Five Year Average (2017-2021) Henry Hub NGc1 2.50 2.49 5.77 6.54 2.89 Title Transfer Facility (TTF) TRNLTTFMc1 10.54 10.76 36.68 40.50 7.49 Japan Korea Marker (JKM) JKMc1 11.78 12.40 32.34 34.11 8.95 LSEG Heating (HDD), Cooling (CDD) and Total (TDD) Degree Days Two-Week Total Forecast Current Day Prior Day Prior Year 10-Year Norm 30-Year Norm U.S. GFS HDDs 348 346 462 408 426 U.S. GFS CDDs 1 1 3 5 4 U.S. GFS TDDs 349 347 365 413 430 LSEG U.S. Weekly GFS Supply and Demand Forecasts Prior Week Current Week Next Week This Week Last Year Five-Year (2018-2022) Average For Month U.S. Supply (bcfd) U.S. Lower 48 Dry Production 108.9 108.7 108.8 98.6 94.2 U.S. Imports from Canada8 8.6 8.5 8.9 10.1 9.1 U.S. LNG Imports 0.0 0.0 0.0 0.0 0.2 Total U.S. Supply 117.5 117.2 117.6 108.7 103.5 U.S. Demand (bcfd) U.S. Exports to Canada 3.4 3.2 3.2 2.1 3.2 U.S. Exports to Mexico 3.8 3.9 4.4 5.0 5.0 U.S. LNG Exports 14.7 15.0 14.6 12.1 8.6 U.S. Commercial 13.8 13.9 12.8 20.4 14.6 U.S. Consumption 103.1 103.8 98.2 126.2 101.2 Total U.S. Demand 125.0 126.0 120.4 145.4 118.0 U.S. Northwest River Forecast Center (NWRFC) at The Dalles Dam Current Day % of Normal Forecast Prior Day % of Normal Forecast 2023 % of Normal Actual 2022 % of Normal Actual 2021 % of Normal Actual Apr-Sep 80 82 83 107 81 Jan-Jul 80 81 77 102 79 Oct-Sep 81 81 76 103 81 U.S. weekly power generation percent by fuel - EIA Week ended Dec 22 Week ended Dec 15 Week ended Dec 8 Week ended Dec 1 Week ended Nov 24 Wind 11 11 12 10 11 Solar 3 3 3 3 3 Hydro 6 6 5 6 6 Other 2 2 2 2 2 Petroleum Natural Gas 41 41 40 42 39 Coal 17 17 17 17 16 Nuclear 20 20 21 20 22 SNL U.S. Natural Gas Next-Day Prices ($ per mmBtu) Hub Current Day Prior Day Henry Hub NG-W-HH-SNL 2.44 2.59 Transco Z6 New York NG-CG-NY-SNL 2.20 2.21 PG&E Citygate NG-CG-PGE-SNL 3.97 3.97 Eastern Gas (old Dominion South) NG-PCN-APP-SNL 1.85 1.94 Chicago Citygate NG-CG-CH-SNL 2.11 2.26 Algonquin Citygate NG-CG-BS-SNL 2.99 2.86 SoCal Citygate NG-SCL-CGT-SNL 3.60 3.30 Waha Hub NG-WAH-WTX-SNL 1.33 1.73 | 2a009b48-b2c4-4fba-af82-f107b4965750 |
710402.0 | 2023-12-16 22:00:00 UTC | Stock Market News for Dec 20, 2023 | DCOMP | https://www.nasdaq.com/articles/stock-market-news-for-dec-20-2023 | nan | nan | Wall Street closed sharply higher on Tuesday, led by energy and tech stocks. Markets continued to rally on rate-cut expectations despite yet another Fed official turning hawkish. Energy prices hit a two-week high over concerns in the Red Sea region. All of the three major stock indexes ended in the green.
How Did the Benchmarks Perform?
The Dow Jones Industrial Average (DJI) added 251.9 points, or 0.7%, to close at 37,557.92. Twenty-four components of the 30-stock index ended in positive territory, while six ended in negative.
The tech-heavy Nasdaq Composite gained 0.7%, or 98.03 points, to close at 15,003.22.
The S&P 500 rose 0.6%, or 27.81 points, to close at 4,768.37. All of the 11 broad sectors of the benchmark index closed in the green. The Energy Select Sector SPDR (XLE), the Communication Services Select Sector SPDR (XLC) and the Materials Select Sector SPDR (XLB) advanced 1.2%, 1% and 0.9%, respectively.
The fear-gauge CBOE Volatility Index (VIX) decreased 0.2% to 12.53. A total of 11.6 billion shares were traded on Tuesday, lower than the last 20-session average of 12 billion. Advancers outnumbered decliners on the NYSE by a 4.68-to-1 ratio. On the Nasdaq, advancing issues led to declining ones by 2.85-to-1.
Investors Remain Upbeat Despite Another Fed Official Turning Hawkish
Over the past few weeks, Wall Street has continued to ride on the rate cut rally. Market participants have remained hopeful that there will be multiple rate cuts in 2024. In fact, per CME’s FedWatch tool, currently, there is a 67.5% possibility that the central bank will announce a 25 bps rate cut in March of next year.
Fed officials, however, in recent sessions, have started to balance things out a bit by turning a bit hawkish. More and more important Fed officials are coming out and saying that the markets might have gotten ahead of themselves and may have read too much into Fed Chair Jerome Powell’s post-FOMC speech. Also, per the Fed December meeting, there are only three rate cuts planned in 2024, while investors are anticipating at least five or six.
Atlanta Fed president Raphael Bostic joined this set of cautious Fed officials on Tuesday, stating that there is no current urgency for the apex bank to reduce interest rates in the United States given the strength of the economy and that inflation needs to return to the central bank's stated target of 2%. Bostic expects 25 bps rate cuts in the second half of the year but emphasized that inflation remains too high for that to happen.
“Inflation is going to come down relatively slowly in the next six months, which means that there's not going to be urgency for us to start to pull off of our restrictive stance," Bostic said in a program at the Harvard Business School Club of Atlanta. However, just like the previous sessions, the market has continued to disregard these comments and has boomed.
Energy Sector Drives the Market on Red Sea Concerns
Oil prices shot up for a second session in a row this week, rising more than a dollar a barrel on Tuesday. Yemen's Houthi militants attacked ships in the Red Sea, disrupting maritime trade and pushing up energy prices. Brent crude rose $1.28, or 1.6%, to settle at $79.23/barrel. WTI crude rose 97 cents, or 1.3%, to settle at $73.44/barrel, the highest in over two weeks.
Consequently, shares of Exxon Mobil Corporation XOM and Chevron Corporation CVX jumped 1.3% each, respectively. Both carry a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Economic Data
The U.S. Census Bureau and the U.S. Department of Housing and Urban Development reported that building permits for November had come in at a seasonally adjusted annual rate of 1,460,000. The number for October had been revised up to 1,498,000 from the previously reported 1,487,000.
Housing starts for November increased to a seasonally adjusted annual rate of 1,560,000. The number for October was revised down to 1,359,000 from the previously reported 1,372,000.
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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. | “Inflation is going to come down relatively slowly in the next six months, which means that there's not going to be urgency for us to start to pull off of our restrictive stance," Bostic said in a program at the Harvard Business School Club of Atlanta. Energy Sector Drives the Market on Red Sea Concerns Oil prices shot up for a second session in a row this week, rising more than a dollar a barrel on Tuesday. Economic Data The U.S. Census Bureau and the U.S. Department of Housing and Urban Development reported that building permits for November had come in at a seasonally adjusted annual rate of 1,460,000. | Bostic expects 25 bps rate cuts in the second half of the year but emphasized that inflation remains too high for that to happen. Consequently, shares of Exxon Mobil Corporation XOM and Chevron Corporation CVX jumped 1.3% each, respectively. Click to get this free report Chevron Corporation (CVX) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report To read this article on Zacks.com click here. | The Energy Select Sector SPDR (XLE), the Communication Services Select Sector SPDR (XLC) and the Materials Select Sector SPDR (XLB) advanced 1.2%, 1% and 0.9%, respectively. Atlanta Fed president Raphael Bostic joined this set of cautious Fed officials on Tuesday, stating that there is no current urgency for the apex bank to reduce interest rates in the United States given the strength of the economy and that inflation needs to return to the central bank's stated target of 2%. Click to get this free report Chevron Corporation (CVX) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report To read this article on Zacks.com click here. | The S&P 500 rose 0.6%, or 27.81 points, to close at 4,768.37. Investors Remain Upbeat Despite Another Fed Official Turning Hawkish Over the past few weeks, Wall Street has continued to ride on the rate cut rally. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. | 51769c18-a5c8-473a-b2a0-98fe755f8ab7 |
710403.0 | 2023-12-16 22:00:00 UTC | Energy Sector Update for 12/20/2023: IEP, PCG, XLE, USO, UNG | DCOMP | https://www.nasdaq.com/articles/energy-sector-update-for-12-20-2023%3A-iep-pcg-xle-uso-ung | nan | nan | Energy stocks were gaining premarket Wednesday with the Energy Select Sector SPDR Fund (XLE) recently advancing by 0.5%.
The United States Oil Fund (USO) was 0.8% higher and the United States Natural Gas Fund (UNG) was down 2.2%.
Front-month US West Texas Intermediate crude oil was up 1.4% at $75 per barrel at the New York Mercantile Exchange. Global benchmark North Sea crude oil gained 1.3% to $80.24 per barrel, and natural gas futures were 0.9% higher at $2.52 per 1 million British Thermal Units.
Icahn Enterprises (IEP) was down 0.4% after the company and its Icahn Enterprises Finance closed their private offering of $500 million of 9.75% senior notes due 2029 and $200 million of additional 2029 notes.
PG&E's (PCG) is now allowed to continue operating the two units at its Diablo Canyon Power Plant after the federal Nuclear Regulatory Commission accepted for review its license renewal application to extend the plant's operations, according to a statement. PG&E was 0.4% higher 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. | Front-month US West Texas Intermediate crude oil was up 1.4% at $75 per barrel at the New York Mercantile Exchange. Global benchmark North Sea crude oil gained 1.3% to $80.24 per barrel, and natural gas futures were 0.9% higher at $2.52 per 1 million British Thermal Units. PG&E's (PCG) is now allowed to continue operating the two units at its Diablo Canyon Power Plant after the federal Nuclear Regulatory Commission accepted for review its license renewal application to extend the plant's operations, according to a statement. | The United States Oil Fund (USO) was 0.8% higher and the United States Natural Gas Fund (UNG) was down 2.2%. Front-month US West Texas Intermediate crude oil was up 1.4% at $75 per barrel at the New York Mercantile Exchange. Global benchmark North Sea crude oil gained 1.3% to $80.24 per barrel, and natural gas futures were 0.9% higher at $2.52 per 1 million British Thermal Units. | The United States Oil Fund (USO) was 0.8% higher and the United States Natural Gas Fund (UNG) was down 2.2%. Global benchmark North Sea crude oil gained 1.3% to $80.24 per barrel, and natural gas futures were 0.9% higher at $2.52 per 1 million British Thermal Units. PG&E's (PCG) is now allowed to continue operating the two units at its Diablo Canyon Power Plant after the federal Nuclear Regulatory Commission accepted for review its license renewal application to extend the plant's operations, according to a statement. | Energy stocks were gaining premarket Wednesday with the Energy Select Sector SPDR Fund (XLE) recently advancing by 0.5%. Global benchmark North Sea crude oil gained 1.3% to $80.24 per barrel, and natural gas futures were 0.9% higher at $2.52 per 1 million British Thermal Units. Icahn Enterprises (IEP) was down 0.4% after the company and its Icahn Enterprises Finance closed their private offering of $500 million of 9.75% senior notes due 2029 and $200 million of additional 2029 notes. | fa676de4-5b6f-47a5-9669-2681617c94a0 |
710404.0 | 2023-12-16 22:00:00 UTC | Company News for Dec 20, 2023 | DCOMP | https://www.nasdaq.com/articles/company-news-for-dec-20-2023 | nan | nan | Shares of The Boeing Company BA rose 1.2% after Deutsche Lufthansa AG DLAKY announced that it had ordered 40 737-8 Max jets from the aircraft maker.
Kenvue Inc.’s KVUE shares gained 2.2% following a court ruling in favor of the company in a lawsuit over Tylenol, its prize drug.
Shares of Intel Corporation INTC jumped 2.1% on semiconductor stocks continuing to do well.
Shell plc’s SHEL shares advanced 1.2% on energy becoming the biggest winning sector of the day.
Zacks Naming Top 10 Stocks for 2024
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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. | Shares of The Boeing Company BA rose 1.2% after Deutsche Lufthansa AG DLAKY announced that it had ordered 40 737-8 Max jets from the aircraft maker. Kenvue Inc.’s KVUE shares gained 2.2% following a court ruling in favor of the company in a lawsuit over Tylenol, its prize drug. 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%. | Shares of The Boeing Company BA rose 1.2% after Deutsche Lufthansa AG DLAKY announced that it had ordered 40 737-8 Max jets from the aircraft maker. 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 The Boeing Company (BA) : Free Stock Analysis Report Intel Corporation (INTC) : Free Stock Analysis Report Deutsche Lufthansa AG (DLAKY) : Free Stock Analysis Report Shell PLC Unsponsored ADR (SHEL) : Free Stock Analysis Report Kenvue Inc. (KVUE) : Free Stock Analysis Report To read this article on Zacks.com click here. | 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%. Click to get this free report The Boeing Company (BA) : Free Stock Analysis Report Intel Corporation (INTC) : Free Stock Analysis Report Deutsche Lufthansa AG (DLAKY) : Free Stock Analysis Report Shell PLC Unsponsored ADR (SHEL) : Free Stock Analysis Report Kenvue Inc. (KVUE) : Free Stock Analysis Report To read this article on Zacks.com click here. | Shares of The Boeing Company BA rose 1.2% after Deutsche Lufthansa AG DLAKY announced that it had ordered 40 737-8 Max jets from the aircraft maker. Kenvue Inc.’s KVUE shares gained 2.2% following a court ruling in favor of the company in a lawsuit over Tylenol, its prize drug. Be First to New Top 10 Stocks >> Want the latest recommendations from Zacks Investment Research? | d21f7144-48a4-4ac7-86e6-61e798e58670 |
710405.0 | 2023-12-16 22:00:00 UTC | Electronic Arts (EA) Unveils Frostbite's New Look and Vision | DCOMP | https://www.nasdaq.com/articles/electronic-arts-ea-unveils-frostbites-new-look-and-vision | nan | nan | Electronic Arts EA introduced a fresh logo and brand identity for Frostbite, reflecting its evolution as a hub for collaborative innovation. This marks a new era for Frostbite with its cutting-edge, multi-platform game engine driving major franchises. Designed for innovation, it symbolizes the fusion of creativity and technology, thus shaping immersive player experiences.
The rebrand signifies not just a visual transformation but also a philosophical one for Frostbite, highlighting a renewed commitment to collaboration with teams and creators. Over time, Frostbite has closely collaborated with EA game teams, gaining insights into their development and technology requirements.
Frostbite is purpose-built for EA, and its dedication lies in crafting top-tier tools and technology for its games. In this new phase, the mission is to bring together and amplify the expertise and endeavors of every EA game team utilizing Frostbite, thus tailoring each approach to meet the player’s distinctive needs in a way that sets the game apart.
This year, Frostbite played a crucial role in the successful release of six titles such as Dead Space, PGA Tour, Madden NFL 24, EA SPORTS FC 24, NHL 24 and UFC 5. The most recent iteration of the engine excels in power, performance and community support.
Shares of this Zacks Rank #3 (Hold) company have gained 13.4% year to date compared with the Zacks Consumer Discretionary sector’s 16.8% rise due to tough competition in the market. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Electronic Arts Inc. Price and Consensus
Electronic Arts Inc. price-consensus-chart | Electronic Arts Inc. Quote
Frostbite Faces Tough Competition in the Game Engines Market
According to a Polaris Market Research report, theglobal marketsize/share for game engines reached USD 2,389.77 million in 2022. The study further indicates a projected compound annual growth rate of 17.1%, foreseeing the market to reach USD 11,615.51 million by 2032.
In 2022, the solutions segment dominated the market share, primarily due to the development of high-quality games. Key market leaders include Amazon AMZN Lumberyard, Unity Software U, Tencent’s TCEHY Unreal Engine and Frostbite.
Amazon Lumberyard is a game engine crafted by Amazon and established in 2016. Although Lumberyard is a free, cross-platform engine, Amazon has recently shifted its approach by converting it into an open-source model. The latest development from Amazon, Open3D, builds upon Lumberyard, introducing a more modular framework for game development.
Unity, a leading game engine developed by Unity Technologies in 2005, is renowned for making game development more inclusive, featuring notable support for screen readers. Unity has found applications beyond game development, including its utilization in the field of architecture. Its capabilities span the development of various game genres and it has established a robust reputation for mobile game development on the Android platform.
Unreal Engine, created by Epic Games in 1998, is a premier game engine. It is renowned for its thorough documentation and user-friendly interface. Its versatility allows the development of various game types, spanning from console to mobile platforms, including Android and iOS. Furthermore, its applicability extends beyond the realm of game development, reaching industries such as automotive. It is widely adopted, with everyone from AAA game developers to indie studios leveraging its capabilities.
Frostbite constantly updates its technology to stay ahead of the competition and develop games, which are as realistic as possible. This is expected to aid the company’s top-line growth in fiscal 2025.
The Zacks Consensus Estimate for EA’s fiscal 2025 revenues is pegged at $7.96 billion, indicating a year-over-year increase of 5.16%. The consensus mark for earnings is pegged at $7.43 per share, indicating year-over-year growth of 8.86%.
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. | Electronic Arts EA introduced a fresh logo and brand identity for Frostbite, reflecting its evolution as a hub for collaborative innovation. This year, Frostbite played a crucial role in the successful release of six titles such as Dead Space, PGA Tour, Madden NFL 24, EA SPORTS FC 24, NHL 24 and UFC 5. Key market leaders include Amazon AMZN Lumberyard, Unity Software U, Tencent’s TCEHY Unreal Engine and Frostbite. | Electronic Arts Inc. Price and Consensus Electronic Arts Inc. price-consensus-chart | Electronic Arts Inc. Quote Frostbite Faces Tough Competition in the Game Engines Market According to a Polaris Market Research report, theglobal marketsize/share for game engines reached USD 2,389.77 million in 2022. Key market leaders include Amazon AMZN Lumberyard, Unity Software U, Tencent’s TCEHY Unreal Engine and Frostbite. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Tencent Holding Ltd. (TCEHY) : Free Stock Analysis Report Electronic Arts Inc. (EA) : Free Stock Analysis Report Unity Software Inc. (U) : Free Stock Analysis Report To read this article on Zacks.com click here. | Electronic Arts Inc. Price and Consensus Electronic Arts Inc. price-consensus-chart | Electronic Arts Inc. Quote Frostbite Faces Tough Competition in the Game Engines Market According to a Polaris Market Research report, theglobal marketsize/share for game engines reached USD 2,389.77 million in 2022. Unity, a leading game engine developed by Unity Technologies in 2005, is renowned for making game development more inclusive, featuring notable support for screen readers. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Tencent Holding Ltd. (TCEHY) : Free Stock Analysis Report Electronic Arts Inc. (EA) : Free Stock Analysis Report Unity Software Inc. (U) : Free Stock Analysis Report To read this article on Zacks.com click here. | Over time, Frostbite has closely collaborated with EA game teams, gaining insights into their development and technology requirements. Electronic Arts Inc. Price and Consensus Electronic Arts Inc. price-consensus-chart | Electronic Arts Inc. Quote Frostbite Faces Tough Competition in the Game Engines Market According to a Polaris Market Research report, theglobal marketsize/share for game engines reached USD 2,389.77 million in 2022. Unity, a leading game engine developed by Unity Technologies in 2005, is renowned for making game development more inclusive, featuring notable support for screen readers. | 6d0c9841-f027-431d-b357-6fd78ad1368b |
710406.0 | 2023-12-16 21:00:00 UTC | The Ultimate Growth Stocks to Buy With $1,000 Right Now | DCOMP | https://www.nasdaq.com/articles/the-ultimate-growth-stocks-to-buy-with-%241000-right-now-3 | nan | nan | The stock market has rallied impressively in 2023 thanks to multiple factors such as cooling inflation, the Federal Reserve's pause on interest rate hikes, a robust U.S. economy, and a solid job market, all of which explains why the Nasdaq Composite index has shot up an impressive 41% this year.
The good news is that the stock market is expected to head higher in 2024, especially as the Fed is anticipated to cut interest rates three times next year. Bloomberg, for instance, forecasts that the S&P 500 index could hit record highs in 2024. A lower interest rate environment bodes well for growth stocks, which struggled last year when the Fed was continuously increasing rates.
Lower interest rates will allow growth-oriented companies to get access to capital at a lower cost, while also increasing the value of their future cash flows. That's why if you have $1,000 in investible cash after paying off your bills, clearing any high-interest debt, and saving enough for difficult times, it could be a good idea to put that money into the following growth stocks that could deliver healthy returns in 2024 and beyond.
1. Nvidia
Nvidia (NASDAQ: NVDA) has become a top growth play in 2023, turning a $1,000 investment made in the stock at the beginning of the year into more than $3,300 as of this writing.
NVDA data by YCharts
What's worth noting here is that Nvidia stock is cheaper on a forward earnings basis compared to some of its peers in the "Magnificent Seven," which refers to a group of seven megacap tech companies that have been delivering significant gains recently.
Melius Research analyst Ben Reitzes, who has a $750 price target on Nvidia stock, points out that the tech giant is cheaper than Apple and Microsoft as far as the forward price-to-earnings (P/E) ratio is concerned. As the following chart shows, only Meta Platforms and Alphabet are cheaper than Nvidia on a forward P/E basis.
NVDA PE Ratio (Forward 1y) data by YCharts
Investors, therefore, can still consider buying Nvidia even though it has more than tripled this year. That's because the company's dominance of the market for artificial intelligence (AI) chips is likely to drive even stronger growth next year.
Nvidia is on track to end the current fiscal year with revenue of $59 billion, which would be a 119% jump over the prior year. The company's data center business has played a critical role in this impressive growth, as this segment has benefited from the AI chip boom. More specifically, 75% of the company's revenue has come from selling data center chips in the first nine months of the current fiscal year.
So, the data center business could end the year with $44 billion in revenue (based on the contribution of the data center business to Nvidia's top line and its full-year revenue forecast), which would be nearly triple the revenue it generated in fiscal 2023.
Nvidia's rival Advanced Micro Devices estimates that the AI chip market could be worth $45 billion this year. This means that Nvidia now has a terrific grip on this market. What's more, AMD estimates that the AI chip market could be worth a whopping $400 billion in 2027, multiplying almost 10 times within five years. Even if Nvidia loses share and ends up controlling half of this market at that time, its top line could hit $200 billion. That would be more than three times Nvidia's estimated fiscal 2024 revenue.
Not surprisingly, analysts are expecting Nvidia's earnings growth to accelerate significantly over the next five years to an annual rate of 103% as compared to the 48% annual growth it has clocked in the past five years. As such, Nvidia seems capable of giving investors hefty returns in the future as well, which is why putting $1,000 into this tech stock seems like a good idea right now.
2. Micron Technology
A $1,000 investment in Micron Technology (NASDAQ: MU) stock at the beginning of the year is now worth just over $1,600. Shares of the memory specialist have benefited from the changing dynamics in the memory market, which has been under duress over the past couple of years on account of an oversupply.
Market research firm TrendForce estimates that the price of dynamic random access memory (DRAM) increased 18% quarter over quarter in the third quarter of 2023. The firm predicts that prices could jump another 13% to 18% in the current quarter. More importantly, Gartner is forecasting a massive increase of 66% in the memory market's revenue next year, which would be a big improvement over 2023's estimated decline of 39%.
There are multiple reasons the memory market is expected to turn around sharply next year. First, sales of personal computers are expected to recover 8% in 2024, following an estimated decline of 12.4% this year. Second, the smartphone market is also expected to rebound next year. And finally, new catalysts such as AI are going to drive an improvement in memory demand, and the good part is that Micron is well-placed to take advantage of the same.
Therefore, consensus estimates are pointing toward a significant acceleration in Micron's growth. The company is expected to deliver a 40% jump in revenue in the current fiscal year (which started in September 2023) to $21.8 billion, while its loss is expected to shrink to $1.21 per share from a loss of $4.45 per share in fiscal 2023. Even better, Micron is expected to sustain solid growth in the next fiscal year.
MU EPS Estimates for Next Fiscal Year data by YCharts
Given that Micron stock is currently trading at 5.7 times sales, investors are getting a good deal on it, considering the impressive growth that it is set to deliver. If Micron does hit $31 billion in revenue in a couple of years, as the estimates suggest and maintains its current sales multiple, its market cap could increase to $176 billion. That would be a 95% increase from current levels, indicating that a $1,000 investment in this semiconductor stock may double over the next two years.
Should you invest $1,000 in Nvidia right now?
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Apple, Meta Platforms, Microsoft, and Nvidia. The Motley Fool recommends Gartner. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | That's why if you have $1,000 in investible cash after paying off your bills, clearing any high-interest debt, and saving enough for difficult times, it could be a good idea to put that money into the following growth stocks that could deliver healthy returns in 2024 and beyond. NVDA data by YCharts What's worth noting here is that Nvidia stock is cheaper on a forward earnings basis compared to some of its peers in the "Magnificent Seven," which refers to a group of seven megacap tech companies that have been delivering significant gains recently. MU EPS Estimates for Next Fiscal Year data by YCharts Given that Micron stock is currently trading at 5.7 times sales, investors are getting a good deal on it, considering the impressive growth that it is set to deliver. | Nvidia Nvidia (NASDAQ: NVDA) has become a top growth play in 2023, turning a $1,000 investment made in the stock at the beginning of the year into more than $3,300 as of this writing. Nvidia's rival Advanced Micro Devices estimates that the AI chip market could be worth $45 billion this year. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Apple, Meta Platforms, Microsoft, and Nvidia. | Nvidia Nvidia (NASDAQ: NVDA) has become a top growth play in 2023, turning a $1,000 investment made in the stock at the beginning of the year into more than $3,300 as of this writing. So, the data center business could end the year with $44 billion in revenue (based on the contribution of the data center business to Nvidia's top line and its full-year revenue forecast), which would be nearly triple the revenue it generated in fiscal 2023. 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. | MU EPS Estimates for Next Fiscal Year data by YCharts Given that Micron stock is currently trading at 5.7 times sales, investors are getting a good deal on it, considering the impressive growth that it is set to deliver. If Micron does hit $31 billion in revenue in a couple of years, as the estimates suggest and maintains its current sales multiple, its market cap could increase to $176 billion. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Apple, Meta Platforms, Microsoft, and Nvidia. | 993921b4-ade4-4a24-990a-6345554d0be1 |
710407.0 | 2023-12-16 21:00:00 UTC | FedEx dives after sober results; Express unit disappoints Wall Street | DCOMP | https://www.nasdaq.com/articles/fedex-dives-after-sober-results-express-unit-disappoints-wall-street | nan | nan | By Shivansh Tiwary
Dec 20 (Reuters) - Shares of global delivery giant FedEx FDX.N sank before the bell on Wednesday after its dismal results and outlook prompted a slew of price-target cuts from Wall Street, which said its air delivery business needed improvements.
If current losses hold, FedEx's shares, which fell 11%, were poised to lose over $8 billion in market cap as at least five brokerages cut their price targets (PT). Shares of rival UPS also fell 3.5%.
BoFA Global Research cut its PT by $21 to $313, the largest action on Wednesday. The stock has a median PT of $296.50, according to LSEG data.
Volatile macroeconomic conditions, muted retailer restocking and reduced demand from the company's largest Express customer, the U.S. Postal Service (USPS) - which has been diverting more packages from higher-margin air services to cost-effective ground services - dealt a blow to the company's air delivery business.
Operating income for the air-based Express unit saw a 60% drop for the quarter, resulting in overall company profits that fell short of expectations.
The drop in Express earnings came as a surprise to analysts, who had anticipated that the cost-cutting initiatives announced earlier in the year would offset some of the decline in business from USPS.
"FedEx's quarterly results are a step back, not step forward," Deutsche Bank analyst Amit Malhotra said, while emphasizing that FedEx's Express business has consistently presented the segment with the most significant opportunity for improvement.
FedEx said on Wednesday it was negotiating a renewal of the post office contract with the goal of improving profitability from its business with USPS.
But TD Cowen analyst Helane Becker expects FedEx to walk away from the USPS business next year, when the contract expires.
Shares of FedEx trade about 14 times forward profit estimates, below rival UPS's UPS.N 16.7 multiple.
FedEx Shares https://tmsnrt.rs/48mme5V
(Reporting by Shivansh Tiwary in Bengaluru; Editing by Pooja Desai)
((Shivansh.Tiwary@thomsonreuters.com; +91 9708363192;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | If current losses hold, FedEx's shares, which fell 11%, were poised to lose over $8 billion in market cap as at least five brokerages cut their price targets (PT). Operating income for the air-based Express unit saw a 60% drop for the quarter, resulting in overall company profits that fell short of expectations. The drop in Express earnings came as a surprise to analysts, who had anticipated that the cost-cutting initiatives announced earlier in the year would offset some of the decline in business from USPS. | By Shivansh Tiwary Dec 20 (Reuters) - Shares of global delivery giant FedEx FDX.N sank before the bell on Wednesday after its dismal results and outlook prompted a slew of price-target cuts from Wall Street, which said its air delivery business needed improvements. Postal Service (USPS) - which has been diverting more packages from higher-margin air services to cost-effective ground services - dealt a blow to the company's air delivery business. "FedEx's quarterly results are a step back, not step forward," Deutsche Bank analyst Amit Malhotra said, while emphasizing that FedEx's Express business has consistently presented the segment with the most significant opportunity for improvement. | By Shivansh Tiwary Dec 20 (Reuters) - Shares of global delivery giant FedEx FDX.N sank before the bell on Wednesday after its dismal results and outlook prompted a slew of price-target cuts from Wall Street, which said its air delivery business needed improvements. "FedEx's quarterly results are a step back, not step forward," Deutsche Bank analyst Amit Malhotra said, while emphasizing that FedEx's Express business has consistently presented the segment with the most significant opportunity for improvement. FedEx Shares https://tmsnrt.rs/48mme5V (Reporting by Shivansh Tiwary in Bengaluru; Editing by Pooja Desai) ((Shivansh.Tiwary@thomsonreuters.com; +91 9708363192;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Shivansh Tiwary Dec 20 (Reuters) - Shares of global delivery giant FedEx FDX.N sank before the bell on Wednesday after its dismal results and outlook prompted a slew of price-target cuts from Wall Street, which said its air delivery business needed improvements. Shares of rival UPS also fell 3.5%. But TD Cowen analyst Helane Becker expects FedEx to walk away from the USPS business next year, when the contract expires. | 89283178-7c46-458a-9d7c-517c99f97f4c |
710408.0 | 2023-12-16 21:00:00 UTC | Venus Concept (VERO) Expands Global Reach With New Partnerships | DCOMP | https://www.nasdaq.com/articles/venus-concept-vero-expands-global-reach-with-new-partnerships | nan | nan | Venus Concept Inc. VERO, in its efforts to solidify its international reach, has inked two exclusive partnerships with Core Aesthetics Skin & Laser Limited in the United Kingdom and Spectra Medical Systems in India. Both regions are identified as high-growth markets for aesthetic technology, Venus Concept’s niche area.
The financial terms of the deals have been kept under wraps.
More on the News
The signing of these exclusive agreements reflects Venus Concept’s strategic vision to tap high-growth markets by leveraging local expertise. The partnerships with Core Aesthetics and Spectra are a significant step in the company's efforts to channel resources toward profitable direct markets, emphasizing a key aspect of its ongoing restructuring efforts.
Core Aesthetics, based in London, is led by former Venus Concept partner Michael Dodd, who helped facilitate the successful launch of Venus Viva and the distribution of Venus Legacy and Venus Versa in the United Kingdom. This company brings years of industry experience and a trusted reputation as a distributor. Per the new deal, Core Aesthetics is poised to cater to the comprehensive needs of U.K. clientele starting January 2024.
Spectra Medical Systems, on the other hand, is a prominent medical equipment distributor in India. It holds the exclusive rights to distribute Venus Concept's diverse portfolio throughout the country. With over 125 dedicated sales personnel and a strong presence in major cities, Spectra is well-positioned to provide extensive customer and technical support, ensuring the seamless operation of all commercial aspects, including sales, marketing, post-sale support and customer education.
Image Source: Zacks Investment Research
Strategic Implications
Venus Concept expects these deals to fetch continued success in both the United Kingdom and India. The move aligns with Venus Concept’s commitment to excellence and dedication to providing advanced aesthetic solutions on a global scale. As Venus Concept continues to execute its strategic restructuring efforts, these exclusive partnerships set the stage for sustained international growth and success in the dynamic field of medical aesthetics.
Market Prospects
According to a Grand View Research report, the global aesthetic medicine market, valued at $112 billion in 2022, is projected to witness a 14.7% CAGR from 2023 to 2030. Advanced aesthetic devices, like non-invasive body contouring systems, are driving demand. Despite initial pandemic setbacks, remote work has intensified focus on appearance, boosting interest in cosmetic procedures, particularly non-invasive treatments. The surge in awareness, especially in developing countries like India and South Korea, positions the market for sustained high demand, with India ranking among the top five countries globally for non-surgical procedures in 2021, according to the International Society of Aesthetic Plastic Surgery.
Share Price Performance
Shares of VERO have plunged 76.3% over the past year against 4.1% rise of the industry.
Zacks Rank and Key Picks
Venus Concept carries a Zacks Rank #3 (Hold).
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%.
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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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Venus Concept Inc. VERO, in its efforts to solidify its international reach, has inked two exclusive partnerships with Core Aesthetics Skin & Laser Limited in the United Kingdom and Spectra Medical Systems in India. Image Source: Zacks Investment Research Strategic Implications Venus Concept expects these deals to fetch continued success in both the United Kingdom and India. As Venus Concept continues to execute its strategic restructuring efforts, these exclusive partnerships set the stage for sustained international growth and success in the dynamic field of medical aesthetics. | Zacks Rank and Key Picks Venus Concept carries a Zacks Rank #3 (Hold). 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 Insulet Corporation (PODD) : Free Stock Analysis Report Venus Concept Inc. (VERO) : Free Stock Analysis Report To read this article on Zacks.com click here. | Venus Concept Inc. VERO, in its efforts to solidify its international reach, has inked two exclusive partnerships with Core Aesthetics Skin & Laser Limited in the United Kingdom and Spectra Medical Systems in India. Core Aesthetics, based in London, is led by former Venus Concept partner Michael Dodd, who helped facilitate the successful launch of Venus Viva and the distribution of Venus Legacy and Venus Versa in the United Kingdom. Click to get this free report Haemonetics Corporation (HAE) : Free Stock Analysis Report DexCom, Inc. (DXCM) : Free Stock Analysis Report Insulet Corporation (PODD) : Free Stock Analysis Report Venus Concept Inc. (VERO) : Free Stock Analysis Report To read this article on Zacks.com click here. | Venus Concept Inc. VERO, in its efforts to solidify its international reach, has inked two exclusive partnerships with Core Aesthetics Skin & Laser Limited in the United Kingdom and Spectra Medical Systems in India. As Venus Concept continues to execute its strategic restructuring efforts, these exclusive partnerships set the stage for sustained international growth and success in the dynamic field of medical aesthetics. Estimates for Insulet’s 2023 earnings per share have moved up from $1.90 to $1.91 in the past 30 days. | a8efb816-71e9-4b8a-88b3-194176e1562e |
710409.0 | 2023-12-16 21:00:00 UTC | 3 Top-Ranked Dividend Stocks: A Smarter Way to Boost Your Retirement Income | DCOMP | https://www.nasdaq.com/articles/3-top-ranked-dividend-stocks%3A-a-smarter-way-to-boost-your-retirement-income-117 | nan | nan | Here's an eye-opening statistic: older Americans are more afraid of running out of money than of death itself.
Also, retirees who have constructed a nest egg have valid justifications to be concerned, since the traditional ways to plan for retirement may mean income can no longer cover expenses. Some retirees are now tapping their principal to make a decent living, pressed for time between decreasing investment balances and longer life expectancies.
The tried-and-true retirement investing approach of yesterday doesn't work today.
For example, 10-year Treasury bonds in the late 1990s offered a yield of around 6.50%, which translated to an income source you could count on. However, today's yield is much lower and probably not a viable return option to fund typical retirements.
That means if you had $1 million in 10-year Treasuries, the difference in yield between 1999 and today is more than $1 million.
And lower bond yields aren't the only potential problem seniors are facing. Today's retirees aren't feeling as secure as they once did about Social Security, either. Benefit checks will still be coming for the foreseeable future, but based on current estimates, Social Security funds will run out of money in 2035.
Unfortunately, it looks like the two traditional sources of retirement income - bonds and Social Security - may not be able to adequately meet the needs of present and future retirees. But what if there was another option that could provide a steady, reliable source of income in retirement?
Invest in Dividend Stocks
Dividend-paying stocks from low-risk, high-quality companies are a smart way to generate steady and reliable attractive income streams to replace low risk, low yielding Treasury and bond options.
Look for stocks that have paid steady, increasing dividends for years (or decades), and have not cut their dividends even during recessions.
One approach to recognizing appropriate stocks is to look for companies with an average dividend yield of 3% and positive average annual dividend growth. Numerous stocks hike dividends over time, counterbalancing inflation risks.
Here are three dividend-paying stocks retirees should consider for their nest egg portfolio.
Amgen (AMGN) is currently shelling out a dividend of $2.25 per share, with a dividend yield of 3.06%. This compares to the Medical - Biomedical and Genetics industry's yield of 0% and the S&P 500's yield of 1.62%. The company's annualized dividend growth in the past year was 9.79%. Check Amgen (AMGN) dividend history here>>>
Fifth Third Bancorp (FITB) is paying out a dividend of $0.35 per share at the moment, with a dividend yield of 3.99% compared to the Banks - Major Regional industry's yield of 3.73% and the S&P 500's yield. The annualized dividend growth of the company was 6.06% over the past year. Check Fifth Third Bancorp (FITB) dividend history here>>>
Currently paying a dividend of $0 per share, Banco Itau (ITUB) has a dividend yield of 6.7%. This is compared to the Banks - Foreign industry's yield of 3.98% and the S&P 500's current yield. Annualized dividend growth for the company in the past year was 549.69%. Check Banco Itau (ITUB) dividend history here>>>
But aren't stocks generally more risky than bonds?
The fact is that stocks, as an asset class, carry more risk than bonds. To counterbalance this, invest in superior quality dividend stocks that not only can grow over time but more significantly, can also decrease your overall portfolio volatility with respect to the broader stock market.
An advantage of owning dividend stocks for your retirement nest egg is that numerous companies, particularly blue chip stocks, raise their dividends over time, helping alleviate the impact of inflation on your potential retirement income.
Thinking about dividend-focused mutual funds or ETFs? Watch out for fees.
You may be thinking, "I like this dividend strategy, but instead of investing in individual stocks, I'm going to find a dividend-focused mutual fund or ETF." This approach can make sense, but be aware that some mutual funds and specialized ETFs carry high fees, which may reduce your dividend gains or income, and defeat the goal of this dividend investment approach. If you do wish to invest in a fund, do your research to find the best-quality dividend funds with the lowest fees.
Bottom Line
Pursuing a dividend investing strategy can help protect your retirement portfolio. Whether you choose to invest in stocks or through low-fee mutual funds or ETFs, this approach can potentially help you achieve a more secure and enjoyable retirement.
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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Amgen Inc. (AMGN) : Free Stock Analysis Report
Fifth Third Bancorp (FITB) : Free Stock Analysis Report
Itau Unibanco Holding S.A. (ITUB) : 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. | Also, retirees who have constructed a nest egg have valid justifications to be concerned, since the traditional ways to plan for retirement may mean income can no longer cover expenses. Some retirees are now tapping their principal to make a decent living, pressed for time between decreasing investment balances and longer life expectancies. Whether you choose to invest in stocks or through low-fee mutual funds or ETFs, this approach can potentially help you achieve a more secure and enjoyable retirement. | Invest in Dividend Stocks Dividend-paying stocks from low-risk, high-quality companies are a smart way to generate steady and reliable attractive income streams to replace low risk, low yielding Treasury and bond options. Check Fifth Third Bancorp (FITB) dividend history here>>> Currently paying a dividend of $0 per share, Banco Itau (ITUB) has a dividend yield of 6.7%. Click to get this free report Amgen Inc. (AMGN) : Free Stock Analysis Report Fifth Third Bancorp (FITB) : Free Stock Analysis Report Itau Unibanco Holding S.A. (ITUB) : Free Stock Analysis Report To read this article on Zacks.com click here. | Invest in Dividend Stocks Dividend-paying stocks from low-risk, high-quality companies are a smart way to generate steady and reliable attractive income streams to replace low risk, low yielding Treasury and bond options. Check Amgen (AMGN) dividend history here>>> Fifth Third Bancorp (FITB) is paying out a dividend of $0.35 per share at the moment, with a dividend yield of 3.99% compared to the Banks - Major Regional industry's yield of 3.73% and the S&P 500's yield. An advantage of owning dividend stocks for your retirement nest egg is that numerous companies, particularly blue chip stocks, raise their dividends over time, helping alleviate the impact of inflation on your potential retirement income. | Here are three dividend-paying stocks retirees should consider for their nest egg portfolio. Check Amgen (AMGN) dividend history here>>> Fifth Third Bancorp (FITB) is paying out a dividend of $0.35 per share at the moment, with a dividend yield of 3.99% compared to the Banks - Major Regional industry's yield of 3.73% and the S&P 500's yield. Check Fifth Third Bancorp (FITB) dividend history here>>> Currently paying a dividend of $0 per share, Banco Itau (ITUB) has a dividend yield of 6.7%. | 4b6d8503-398a-4257-829c-6feff4a48935 |
710410.0 | 2023-12-16 21:00:00 UTC | Why Hold Strategy is Apt for Phillips 66 (PSX) Stock Now | DCOMP | https://www.nasdaq.com/articles/why-hold-strategy-is-apt-for-phillips-66-psx-stock-now-2 | nan | nan | Phillips 66 PSX has gained 46.1% in the past six months, outpacing the industry’s 20.3% improvement.
What's Favoring the Stock?
PSX has a diversified business model, with a significant presence in businesses related to refining midstream, chemicals and marketing & specialties. In each of its operations, Phillips 66 has a solid footprint pertaining to safety, profitability, size and competitive strengths.
It is focusing more on businesses like midstream, renewables and chemicals, which makes the business model more stable. Having 72,000 miles of U.S. pipeline network, the company expects roughly 80% of its midstream contracts to be fee-based, signifying a stable business model with low sensitivity to commodity price fluctuations.
Phillips 66, carrying a Zacks Rank #3 (Hold), has a strong focus on returning capital to shareholders. In July 2012, the company got authorization for $25 billion of share buyback, and since then, the energy major has repurchased shares worth $16.9 billion. The remaining program will continue and has no expiration date.
Risks
Phillips 66’s refining business is exposed to extreme volatility in commodity prices since the end products are made with raw crude oil. Rising input costs hurt the company’s refining business.
Stocks to Consider
Better-ranked players in the energy space include Murphy USA Inc. MUSA, Weatherford International plc WFRD and Transportadora de Gas del Sur SA TGS. While Murphy USA sports a Zacks Rank #1 (Strong Buy), Weatherford International and Transportadora de Gas carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Murphy USA is a renowned retailer of gasoline and convenience goods, distinguished by its adaptable business model that effectively enhances profitability during periods of economic expansion and recession. Over the past 30 days, the stock has witnessed upward earnings estimate revisions for this year.
Weatherfordis a key energy player and is engaged in offering exclusive drilling technologies that will maximize clients’ reservoir exposure. Weatherford is also involved in well construction and completion activities in an efficient manner.
Transportadora’s midstream asset portfolio has the most extensive natural gas pipeline network in Latin America. It generates stable fee-based revenues since its pipeline assets transport more than 60% of the gas consumed in Argentina.
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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Murphy USA Inc. (MUSA) : Free Stock Analysis Report
Phillips 66 (PSX) : Free Stock Analysis Report
Transportadora De Gas Sa Ord B (TGS) : Free Stock Analysis Report
Weatherford International PLC (WFRD) : 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. | Having 72,000 miles of U.S. pipeline network, the company expects roughly 80% of its midstream contracts to be fee-based, signifying a stable business model with low sensitivity to commodity price fluctuations. Stocks to Consider Better-ranked players in the energy space include Murphy USA Inc. MUSA, Weatherford International plc WFRD and Transportadora de Gas del Sur SA TGS. Murphy USA is a renowned retailer of gasoline and convenience goods, distinguished by its adaptable business model that effectively enhances profitability during periods of economic expansion and recession. | Stocks to Consider Better-ranked players in the energy space include Murphy USA Inc. MUSA, Weatherford International plc WFRD and Transportadora de Gas del Sur SA TGS. While Murphy USA sports a Zacks Rank #1 (Strong Buy), Weatherford International and Transportadora de Gas carry a Zacks Rank #2 (Buy). Click to get this free report Murphy USA Inc. (MUSA) : Free Stock Analysis Report Phillips 66 (PSX) : Free Stock Analysis Report Transportadora De Gas Sa Ord B (TGS) : Free Stock Analysis Report Weatherford International PLC (WFRD) : Free Stock Analysis Report To read this article on Zacks.com click here. | Stocks to Consider Better-ranked players in the energy space include Murphy USA Inc. MUSA, Weatherford International plc WFRD and Transportadora de Gas del Sur SA TGS. While Murphy USA sports a Zacks Rank #1 (Strong Buy), Weatherford International and Transportadora de Gas carry a Zacks Rank #2 (Buy). Click to get this free report Murphy USA Inc. (MUSA) : Free Stock Analysis Report Phillips 66 (PSX) : Free Stock Analysis Report Transportadora De Gas Sa Ord B (TGS) : Free Stock Analysis Report Weatherford International PLC (WFRD) : Free Stock Analysis Report To read this article on Zacks.com click here. | It is focusing more on businesses like midstream, renewables and chemicals, which makes the business model more stable. Having 72,000 miles of U.S. pipeline network, the company expects roughly 80% of its midstream contracts to be fee-based, signifying a stable business model with low sensitivity to commodity price fluctuations. While Murphy USA sports a Zacks Rank #1 (Strong Buy), Weatherford International and Transportadora de Gas carry a Zacks Rank #2 (Buy). | 3594cd26-503b-4d02-b861-d5f3b0b7f88c |
710411.0 | 2023-12-16 21:00:00 UTC | Nvidia Stock Dominated 2023, but Investors Should Be Mindful of These Risks for 2024 | DCOMP | https://www.nasdaq.com/articles/nvidia-stock-dominated-2023-but-investors-should-be-mindful-of-these-risks-for-2024 | nan | nan | In today's video, I discuss recent updates affecting Nvidia (NASDAQ: NVDA). Check out the short video to learn more, consider subscribing, and click the special offer link below.
*Stock prices used were the market prices of Dec. 19, 2023. The video was published on Dec. 19, 2023.
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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 today's video, I discuss recent updates affecting Nvidia (NASDAQ: NVDA). Check out the short video to learn more, consider subscribing, and click the special offer link below. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Microsoft, and Nvidia. | Jose Najarro has positions in Advanced Micro Devices, Alphabet, Microsoft, and Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Microsoft, and Nvidia. The Motley Fool recommends Intel and recommends the following options: long January 2023 $57.50 calls on Intel, long January 2025 $45 calls on Intel, and short February 2024 $47 calls on Intel. | 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 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. The Motley Fool recommends Intel and recommends the following options: long January 2023 $57.50 calls on Intel, long January 2025 $45 calls on Intel, and short February 2024 $47 calls on Intel. | Before you buy stock in Nvidia, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Nvidia wasn't one of them. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Microsoft, and Nvidia. | 24fccc24-1f59-43a5-8354-f3a54746dfed |
710412.0 | 2023-12-16 21:00:00 UTC | Is Amazon Stock a Smart Buy Before the End of 2023? | DCOMP | https://www.nasdaq.com/articles/is-amazon-stock-a-smart-buy-before-the-end-of-2023 | nan | nan | Amazon (NASDAQ: AMZN) went from monster gains throughout the pandemic to more muted growth as a result of macroeconomic headwinds. But the business is still performing well in uncertain times.
The optimism surrounding this tech giant has been rising this year, with shares up 83% (as of Dec. 18). This is likely due to accelerating revenue growth in the past few quarters.
Despite the company's strong rise, investors should rush to buy Amazon stock before the end of 2023. Here are some important reasons this is a no-brainer decision.
Amazon's growth is key
Amazon's Q3 revenue growth of 13% is a marked slowdown from the greater-than-20% top-line gains the business was posting for several years before 2022. However, there's no reason for investors to panic. The fact that Amazon, at its current scale, can still expand by double-digits is wonderful.
What's unique about this company is that it benefits from numerous growth tailwinds. Online shopping is still a tiny fraction of overall retail spending in the U.S. As the dominant leader in e-commerce, Amazon will undoubtedly capture a lot of this growth.
There's also cloud computing, one of the fastest-growing areas of the economy. Amazon Web Services (AWS) is leading in worldwide market share, thanks to its first-mover advantage in the space.
With Prime Video, Amazon has exposure to the rise of streaming entertainment. And this company is becoming a bigger force in the world of digital advertising.
This is one of the reasons why Amazon is a better stock to buy right now for long-term investors than Apple. The iPhone maker is one of the best businesses of all time but has less growth potential and fewer options than a company like Amazon, which has its corporate fingers in multiple industries with long expansionary runways.
I can see why many investors might be rightfully concerned that due to Amazon's massive scale, the law of large numbers will start to be a headwind for the company and its expansion. But there's no rule that says revenue can't keep growing, especially if the business keeps customers as the primary focus.
Protection from a massive economic moat
When trying to assess whether a particular company is of high quality, I immediately try to figure out if there's an economic moat present. This means a business possesses favorable qualities that protect its competitive position not just now, but hopefully for many years.
Amazon's online marketplace benefits from network effects. As more merchants sell their goods on the site, consumers will be better off because there will be a wider selection of merchandise to choose from. As more customers flock to the site, both existing and prospective merchants will find a larger shopper base.
In just the last few years, Amazon's capital expenditures have ballooned. And a lot of this spending has been directed to improving and expanding its logistics network to better serve customers with fast and reliable shipping.
Nowadays, Amazon has developed a cost advantage, thanks to its sprawling regionalized fulfillment system. Because of the deep infrastructure of warehouses, trucks, planes, and drivers, for example, coupled with the sheer volume of goods being shipped, the business can deliver items at a lower cost structure than pretty much any other company.
These factors that contribute to Amazon's economic moat substantially raise the chances that this business will still be dominating many years from now. And this is exactly what long-term investors should be looking for when picking stocks to own.
To hammer home this point, think about a company that lacks an economic moat. If you want to own the shares for 10 years, buying the stock would be a risky endeavor. You'd lack confidence in the company's ability to even survive that far into the future if it can't outcompete rival firms.
For Amazon, this isn't really a concern. It's a smart stock to buy before the year ends.
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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. | Online shopping is still a tiny fraction of overall retail spending in the U.S. As the dominant leader in e-commerce, Amazon will undoubtedly capture a lot of this growth. The iPhone maker is one of the best businesses of all time but has less growth potential and fewer options than a company like Amazon, which has its corporate fingers in multiple industries with long expansionary runways. Because of the deep infrastructure of warehouses, trucks, planes, and drivers, for example, coupled with the sheer volume of goods being shipped, the business can deliver items at a lower cost structure than pretty much any other company. | Despite the company's strong rise, investors should rush to buy Amazon stock before the end of 2023. Amazon's growth is key Amazon's Q3 revenue growth of 13% is a marked slowdown from the greater-than-20% top-line gains the business was posting for several years before 2022. After all, the newsletter they have run for two decades, Motley Fool Stock Advisor, has more than tripled the market. | Despite the company's strong rise, investors should rush to buy Amazon stock before the end of 2023. Amazon's growth is key Amazon's Q3 revenue growth of 13% is a marked slowdown from the greater-than-20% top-line gains the business was posting for several years before 2022. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Amazon made the list -- but there are 9 other stocks you may be overlooking. | Despite the company's strong rise, investors should rush to buy Amazon stock before the end of 2023. Amazon's growth is key Amazon's Q3 revenue growth of 13% is a marked slowdown from the greater-than-20% top-line gains the business was posting for several years before 2022. The Motley Fool has positions in and recommends Amazon and Apple. | 62bb5ba3-ff72-453a-ac51-da2bd4b7c6de |
710413.0 | 2023-12-16 21:00:00 UTC | Mosaic (MOS) Shares Up 10% in 6 Months: What's Driving It? | DCOMP | https://www.nasdaq.com/articles/mosaic-mos-shares-up-10-in-6-months%3A-whats-driving-it | nan | nan | The Mosaic Company's MOS shares have gained 9.7% over the past six months. The company has also outperformed its industry’s decline of 6.6% over the same time frame. Moreover, it has topped the S&P 500’s roughly 8.1% rise over the same period.
Let’s take a look into the factors behind this Zacks Rank #3 (Hold) stock’s price appreciation.
Image Source: Zacks Investment Research
Strong Demand, Cost Actions Drive Mosaic
Mosaic is benefiting from strong demand for phosphate and potash. Higher agricultural commodity prices and attractive farm economics are driving demand for fertilizers globally. Farmer economics remains attractive in most global growing regions on strong crop demand, affordable inputs, and favorable weather.
Demand for grains and oilseeds remains high along with strong farm economics. Strong agricultural commodity pricing trends and improved farmer affordability are likely to drive demand for fertilizers in the balance of 2023. Strong demand is expected to support the company’s sales volumes.
Mosaic is also taking actions to reduce costs amid a still-challenging operating environment. Its actions to improve its operating cost structure through transformation plans are expected to boost profitability.
The company also remains committed to carrying out investments with high returns with moderate capital expenditures, such as the expansion of MicroEssentials capacity at its Riverview facility, constructing a new blending and distribution center in Palmeirante, Brazil and executing the construction of a purified phosphoric acid plant for sale in North America. The company expects total capital expenditures to be $1.3-$1.4 billion for 2023 including roughly $500 million in growth investments.
The Mosaic Company Price and Consensus
The Mosaic Company price-consensus-chart | The Mosaic Company Quote
Stocks to Consider
Better-ranked stocks worth a look in the basic materials space include Denison Mines Corp. DNN, Axalta Coating Systems Ltd. AXTA and Hawkins, Inc. HWKN.
Denison Mines has a projected earnings growth rate of 100% for the current year. DNN has a trailing four-quarter earnings surprise of roughly 225%, on average. The stock is up around 56% in a year. It currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, the Zacks Consensus Estimate for Axalta Coating Systems’ current-year earnings has been revised upward by 8.2%. AXTA, carrying a Zacks Rank #1, beat the Zacks Consensus Estimate in three of the last four quarters while missing in one quarter, with the average earnings surprise being 6.7%. The company’s shares have gained around 35% in the past year.
Hawkins has a projected earnings growth rate of 21% for the current year. It currently carries a Zacks Rank #2 (Buy). Hawkins has a trailing four-quarter earnings surprise of roughly 27.5%, on average. HWKN shares have rallied around 91% in a year.
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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. | Farmer economics remains attractive in most global growing regions on strong crop demand, affordable inputs, and favorable weather. In the past 60 days, the Zacks Consensus Estimate for Axalta Coating Systems’ current-year earnings has been revised upward by 8.2%. 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 Strong Demand, Cost Actions Drive Mosaic Mosaic is benefiting from strong demand for phosphate and potash. The Mosaic Company Price and Consensus The Mosaic Company price-consensus-chart | The Mosaic Company Quote Stocks to Consider Better-ranked stocks worth a look in the basic materials space include Denison Mines Corp. DNN, Axalta Coating Systems Ltd. AXTA and Hawkins, Inc. HWKN. Click to get this free report The Mosaic Company (MOS) : Free Stock Analysis Report Denison Mine Corp (DNN) : Free Stock Analysis Report Axalta Coating Systems Ltd. (AXTA) : Free Stock Analysis Report Hawkins, Inc. (HWKN) : Free Stock Analysis Report To read this article on Zacks.com click here. | Image Source: Zacks Investment Research Strong Demand, Cost Actions Drive Mosaic Mosaic is benefiting from strong demand for phosphate and potash. The Mosaic Company Price and Consensus The Mosaic Company price-consensus-chart | The Mosaic Company Quote Stocks to Consider Better-ranked stocks worth a look in the basic materials space include Denison Mines Corp. DNN, Axalta Coating Systems Ltd. AXTA and Hawkins, Inc. HWKN. Click to get this free report The Mosaic Company (MOS) : Free Stock Analysis Report Denison Mine Corp (DNN) : Free Stock Analysis Report Axalta Coating Systems Ltd. (AXTA) : Free Stock Analysis Report Hawkins, Inc. (HWKN) : Free Stock Analysis Report To read this article on Zacks.com click here. | Image Source: Zacks Investment Research Strong Demand, Cost Actions Drive Mosaic Mosaic is benefiting from strong demand for phosphate and potash. The stock is up around 56% in a year. AXTA, carrying a Zacks Rank #1, beat the Zacks Consensus Estimate in three of the last four quarters while missing in one quarter, with the average earnings surprise being 6.7%. | 312cf6d4-ac45-4834-a58f-d29ac52e20b3 |
710414.0 | 2023-12-16 21:00:00 UTC | This Big Pharma Is Teaming Up With Nvidia to Make Drugs With AI. Here's What You Need to Know | DCOMP | https://www.nasdaq.com/articles/this-big-pharma-is-teaming-up-with-nvidia-to-make-drugs-with-ai.-heres-what-you-need-to | nan | nan | In late November, Roche's (OTC: RHHBY) subsidiary Genentech and the chipmaker Nvidia (NASDAQ: NVDA) agreed to collaborate on developing new medicines using artificial intelligence (AI) over the next few years. While the pair didn't announce the financial terms of their partnership, the move is just one of a slew of similar deals between big pharmas and businesses making AI platforms to improve the drug discovery and development process.
Now, investors are left grappling with the question of what to make of the announcement, given that few concrete details are available. Let's clear up some of the confusion by putting the new collaboration into context and discussing some of its likely goals and impacts in the near future.
This revolution is just getting started
In theory, AI has a lot to offer drug developers like Roche. The drug development process can take upwards of a decade, not to mention billions of dollars in research and development (R&D) expenses. Even under the best conditions, candidates for new medicines can fail to perform as anticipated when tested in clinical trials, and failures are the rule rather than the exception.
If using AI in some capacity could slash costs, reduce the number of stumbles, or speed up the process, the cost savings could be tremendous. It's plausible that it'd lead to safer and more effective drugs, too.
But few big pharmas have the in-house technical know-how necessary to develop or implement such an AI system independently. Hence, Roche is teaming up with Nvidia, a leading AI company building a suite of services explicitly to help biopharma businesses operationalize AI.
With Nvidia's BioNeMo AI platform for drug development, customers can, among many other functions, predict how a given molecule or therapy candidate will interact with its intended physiological targets, paving the way for picking higher-quality leads to start working with in the laboratory. They can also train AI models to address their specific needs across most stages of the development process.
Roche isn't putting all its eggs in one basket when it comes to AI. It's also collaborating with Recursion Pharmaceuticals, a biotech focusing on using AI to empower drug development efforts, partially owned by Nvidia. In terms of how important the collaboration is, consider that Roche paid $150 million up front. It also committed to paying as much as $300 million in milestones and royalties for up to 40 different programs, making for a total potential consideration of more than $12 billion over the next 10 years or so.
Given that it currently has around $8 billion in cash, equivalents, and short-term investments on hand, it's reasonable to assume it's taking a bit of a shotgun approach to the programs it's working on with Recursion, with the expectation being that, ultimately, only a few of its attempts will be worth the full payment.
Recursion isn't Roche's only bet on scrappy young biotechs using AI, though. Since late 2020, it's been partnering with private biotech Genesis Therapeutics on unspecified programs, as well as others like Reverie Labs and Dyno Therapeutics. It also bought another company, Prescient Design, in 2021. With so many different attempts at generating some value from AI, it's quite likely the business will find a measure of success with at least one.
Wait for a firmer plan or actual results
In broad terms, it's a plus that Roche is making strides to optimize its drug development operations with AI. Securing collaborations with capstone players in AI, like Nvidia, is unambiguously positive and could indeed make Genentech a more efficient drugmaker in the short term. If, over the next couple of years, the company can advance more of its pre-clinical programs into clinical trials than before, it'll be evidence that AI is leading to higher productivity in a financially impactful way.
Management's alternative course of action -- waiting to dabble until the AI technology for drug development is proven useful -- would allow competitors uncontested access to this generation's most promising new digital toolset. Obviously, that doesn't sound like a good plan at all.
But as you may have noticed, there aren't too many clues as to which disease areas or biotechnologies will be the focus of its investments and partnerships in AI. So, there's little to reassure shareholders that resources are being allocated well.
In the near future, at least one big pharma player will very likely find a way to turn their use of AI into a competitive advantage. Presently, investors are mostly left with generalities and statements of broad ambitions from Roche's management rather than concrete roadmaps for how it will turn its use of AI into a durable driver of shareholder value. Until that changes, the best course of action is to hold off on buying (or selling) shares.
Should you invest $1,000 in Roche Ag right now?
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Alex Carchidi has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool recommends Roche Ag. 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. | While the pair didn't announce the financial terms of their partnership, the move is just one of a slew of similar deals between big pharmas and businesses making AI platforms to improve the drug discovery and development process. With Nvidia's BioNeMo AI platform for drug development, customers can, among many other functions, predict how a given molecule or therapy candidate will interact with its intended physiological targets, paving the way for picking higher-quality leads to start working with in the laboratory. Given that it currently has around $8 billion in cash, equivalents, and short-term investments on hand, it's reasonable to assume it's taking a bit of a shotgun approach to the programs it's working on with Recursion, with the expectation being that, ultimately, only a few of its attempts will be worth the full payment. | While the pair didn't announce the financial terms of their partnership, the move is just one of a slew of similar deals between big pharmas and businesses making AI platforms to improve the drug discovery and development process. Before you buy stock in Roche Ag, 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 Roche Ag wasn't one of them. The Motley Fool recommends Roche Ag. | While the pair didn't announce the financial terms of their partnership, the move is just one of a slew of similar deals between big pharmas and businesses making AI platforms to improve the drug discovery and development process. Hence, Roche is teaming up with Nvidia, a leading AI company building a suite of services explicitly to help biopharma businesses operationalize AI. Before you buy stock in Roche Ag, 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 Roche Ag wasn't one of them. | While the pair didn't announce the financial terms of their partnership, the move is just one of a slew of similar deals between big pharmas and businesses making AI platforms to improve the drug discovery and development process. Hence, Roche is teaming up with Nvidia, a leading AI company building a suite of services explicitly to help biopharma businesses operationalize AI. Before you buy stock in Roche Ag, 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 Roche Ag wasn't one of them. | f1641736-58d8-48a7-b4ff-6c473733e703 |
710415.0 | 2023-12-16 21:00:00 UTC | 3 Chemicals Stocks Set to Continue Their Winning Streaks in 2024 | DCOMP | https://www.nasdaq.com/articles/3-chemicals-stocks-set-to-continue-their-winning-streaks-in-2024 | nan | nan | The chemical industry grappled with a slowdown in demand in certain markets, including consumer durables and building & construction, and an unprecedented customer inventory destocking this year. Lower consumer spending due to inflationary pressures in Europe and a slow recovery in China impacted demand.
While the industry remains buffeted by demand headwinds, strategic measures, including operating cost reductions and aggressive price hikes along with declining raw material costs, bode well. Stocks like Axalta Coating Systems Ltd. AXTA, Hawkins, Inc. HWKN and L'Air Liquide S.A. AIQUY are good choices for investment in the current scenario.
Companies in the chemical space have faced headwinds from a slowdown in certain key markets in 2023. The sluggishness in the building & construction market and destocking in consumer electronics have played spoilsport. In North America, uncertainties surrounding the U.S. housing market are weighing on building & construction. The housing market is bearing the brunt of interest rate hikes. Softer demand in industrial and consumer durables is hurting chemical volumes. Weaker global economic activities led to a higher level of uncertainty, affecting the chemical space.
A slower recovery in economic activities in China following the lifting of the restrictions related to the resurgence in COVID-19 infections has hurt chemical demand in that country this year. Global industrial activities have been affected by the weaker demand recovery in China. The slowdown in Europe, resulting from the war in Ukraine and weaker consumer spending due to high levels of inflation and rising interest rates, have also led to softer demand in that region. The energy and feedstock inflation resulted in reduced industrial production and consumer spending in Europe.
Nevertheless, demand for chemicals in the automotive market has remained healthy, aided by a recovery in automotive production on an improved supply of semiconductors. Notably, the U.S. automotive sector got back into gear after reeling under the effects of the chip crisis for nearly two years. The recent resolution to the six-week United Auto Workers (UAW) strike also augurs well for chemical demand in this space.
Demand in packaging and healthcare also remains strong. Moreover, chemical companies are seeing a recovery in demand across the aerospace and energy markets. A rebound in drilling activities on the back of an uptick in oil prices has led to the demand recovery in the energy space. On a more positive note, customer inventory destocking — that hurt the chemical industry for much of this year — has largely ended, which should lead to an uptick in chemical demand in 2024. A moderation in raw material and energy costs driven by the easing of supply-chain disruptions is also expected to act as a tailwind.
Meanwhile, chemical companies continue to take a host of strategic measures, including cost-cutting and productivity improvement, operational efficiency improvement and actions to strengthen the balance sheet and boost cash flows amid a challenging environment. In particular, the industry participants are aggressively implementing actions to bring down costs. They are also raising selling prices to counter inflation. Such moves are likely to help the industry sustain margins amid the prevailing challenges. A decline in raw material and energy costs driven by the easing of supply-chain disruptions also augurs well for the chemical industry heading into 2024.
3 Chemical Stocks Poised to Run Higher
While softer demand in construction and electronics is likely to continue to plague the chemical industry over the near term, a rebound in automotive production following the easing of the semiconductor crisis and moderating inventory destocking augur well for the industry heading into 2024. Based on strong fundamentals and healthy prospects, we have shortlisted stocks that are expected to continue their winning streak in 2024.
For this, we have taken the help of the Zacks Stocks Screener to choose stocks that have a market cap of more than $1 billion and currently carry a Zacks Rank #1 (Strong Buy) or 2 (Buy). Our research shows that stocks with a Zacks Rank #1 or 2 offer the best investment options. Moreover, these stocks have gained more than 30% this year.
Image Source: Zacks Investment Research
You can see the complete list of today’s Zacks #1 Rank stocks here.
Here are the three chemical stocks that meet the criteria:
Axalta Coating Systems: Pennsylvania-based Axalta is expected to benefit from higher average prices and improved volumes. Price and product mix benefits are supporting results in its Performance Coatings segment. Continued momentum in refinish is expected to offset weakness in industrial markets. The Mobility Coatings business is also expected to be driven by a recovery in global automotive production, new business wins and strong pricing. Strong market demand is likely to drive volumes in this business. Axalta has also strategically expanded its portfolio by acquiring Andre Koch AG, a well-established Refinish distribution partner headquartered in Switzerland.
Axalta, carrying a Zacks Rank #1, has an expected earnings growth rate of 21% for 2024. The Zacks Consensus Estimate for 2024 earnings of AXTA has been revised 9.8% upward over the past 60 days. Shares of AXTA have popped 34% so far this year.
Hawkins: Minnesota-based Hawkins is seeing strong growth in its Water Treatment segment, reflecting the company's strategic emphasis on the water treatment sector, including the successful integration of recent acquisitions, such as EcoTech Enterprises. These moves have solidified the company's position in the water treatment market. Its judicious pricing strategy to counter cost inflation is also supporting results. HWKN also remains committed to enhancing shareholders’ value.
Hawkins, carrying a Zacks Rank #2, has expected earnings growth of 21% for fiscal 2024. The Zacks Consensus Estimate for HWKN’s earnings for fiscal 2024 has been revised upward by 1.8% over the last 60 days. It beat the Zacks Consensus Estimate for earnings in each of the last four quarters at an average of 27.5%. HWKN shares have also shot up 90.2% year to date.
Air Liquide: France-based Air Liquide is expected to benefit from its diversified business model, strong project backlog and investment for future growth. AIQUY is seeing an uptick in gas and services activities driven by healthcare and industrial merchant businesses. It remains focused on executing its actions to drive operating performance in sync with its ADVANCE strategic plan.
Air Liquide currently carries a Zacks Rank #2. It has an expected earnings growth rate of 7.7% for 2024. The Zacks Consensus Estimate for AIQUY’s 2024 earnings has been stable over the last 60 days. The stock has rallied 36.9% year to date.
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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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Air Liquide (AIQUY) : 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. | The chemical industry grappled with a slowdown in demand in certain markets, including consumer durables and building & construction, and an unprecedented customer inventory destocking this year. A slower recovery in economic activities in China following the lifting of the restrictions related to the resurgence in COVID-19 infections has hurt chemical demand in that country this year. The slowdown in Europe, resulting from the war in Ukraine and weaker consumer spending due to high levels of inflation and rising interest rates, have also led to softer demand in that region. | While the industry remains buffeted by demand headwinds, strategic measures, including operating cost reductions and aggressive price hikes along with declining raw material costs, bode well. Hawkins: Minnesota-based Hawkins is seeing strong growth in its Water Treatment segment, reflecting the company's strategic emphasis on the water treatment sector, including the successful integration of recent acquisitions, such as EcoTech Enterprises. Click to get this free report Air Liquide (AIQUY) : Free Stock Analysis Report Axalta Coating Systems Ltd. (AXTA) : Free Stock Analysis Report Hawkins, Inc. (HWKN) : Free Stock Analysis Report To read this article on Zacks.com click here. | 3 Chemical Stocks Poised to Run Higher While softer demand in construction and electronics is likely to continue to plague the chemical industry over the near term, a rebound in automotive production following the easing of the semiconductor crisis and moderating inventory destocking augur well for the industry heading into 2024. For this, we have taken the help of the Zacks Stocks Screener to choose stocks that have a market cap of more than $1 billion and currently carry a Zacks Rank #1 (Strong Buy) or 2 (Buy). Click to get this free report Air Liquide (AIQUY) : Free Stock Analysis Report Axalta Coating Systems Ltd. (AXTA) : Free Stock Analysis Report Hawkins, Inc. (HWKN) : Free Stock Analysis Report To read this article on Zacks.com click here. | Moreover, chemical companies are seeing a recovery in demand across the aerospace and energy markets. Axalta, carrying a Zacks Rank #1, has an expected earnings growth rate of 21% for 2024. Hawkins, carrying a Zacks Rank #2, has expected earnings growth of 21% for fiscal 2024. | 002a816a-e009-446a-81b5-3e50a4faabe7 |
710416.0 | 2023-12-16 21:00:00 UTC | Emerging Technologies: What Will 2023 Be Remembered For? | DCOMP | https://www.nasdaq.com/articles/emerging-technologies-what-will-2023-be-remembered-for | nan | nan | N
o doubt 2023 will mostly be remembered as the year of Generative Artificial Intelligence, or GenAI. OpenAI, with its ChatGPT app, sparked more interest since its launch in late 2022 than any other application that has ever existed, reaching millions of users in less than a week and receiving hyped media coverage, prompting tech and finance titans to pivot to AI and GenAI.
ChatGPT got so much attention that Google parent Alphabet, which had seen itself as an AI-first company for almost a decade, worried that it was losing ground to rival Microsoft (which has a 49% stake in OpenAI), and hastily released a promotional demo of their own GenAI bot, Bard, in early February. The move backfired when, during the demo, Bard posted a wrong answer, and Alphabet stock lost $100 billion in value that day.
Alphabet has continued to play catch-up with OpenAI, often making announcements or launching features at around the same time as OpenAI, but running into controversy as they do so, showing that they are struggling to keep pace with OpenAI. Beyond Alphabet, other companies are trying to surf the AI wave:
Microsoft has utilized GPT capabilities in all of its products including Azure and Microsoft 365;
Amazon launched its own GenAI bot, Amazon Q for business;
Elon Musk, a former OpenAI board member, unveiled a GenAI bot named Grok, which might represent a serious threat to ChatGPT;
Mark Zuckerberg announced in March that “we're creating a new top-level product group at Meta focused on generative AI to turbocharge our work in this area;" and
Tim Cook said in February, "[AI] is a major focus of ours," adding that “Apple sees an enormous potential in this space to affect virtually everything we do."
Big tech companies have been investing in AI development and utilizing it in their services and products for many years, but in 2023, the focus became more intense and the competition fiercer.
AI and the Financial Sector
This intensified focus on AI and its utilization is not reserved to big tech companies; financial institutions are also zeroing in on advanced AI products and services:
JPMorgan CEO Jamie Dimon acknowledged AI's benefits during the bank’s last annual meeting, calling the technology "extraordinary and groundbreaking,” further indicating that "AI has helped us to significantly decrease risk in our retail business and improve trading optimization and portfolio construction."
JPMorgan applied to trademark a product called IndexGPT and is developing a ChatGPT-like software service that leans on AI to select investments for customers.
Bloomberg earlier this year released a research paper detailing the development of BloombergGPT, a new large scale GenAI model.
In early December, Mastercard unveiled a GenAI retail assistant tool that offers shoppers personalized experience, where customers’ colloquial language is translated into tailored product recommendations.
BlackRock announced in early December that it plans to roll out a GenAI feature to clients who will be able to use their large language model (LLM) to extract information from its AI-powered platform called Aladdin.
CaixaBank has assembled a multi-disciplinary task force of more than 100 people to exclusively work on and deploy GenAI in specific areas of internal and customer-related services, working in partnership with Microsoft and Accenture.
Financial institutions have acknowledged the power of AI and have been implementing it in various services and products for decades, and the models and services have become more sophisticated as the technology advanced over the years. Now the financial industry is taking it to the next level with the new capabilities GenAI can offer.
Challenges and Risks
Like with any technology, with the benefits also comes challenges and risks. The most discussed concern has been AI systems bias. AI models are data-driven, using data that we humans have created. Every subtlety of bias, which we humans have, consciously or unconsciously, is reflected (and amplified) in the data we feed into the algorithm. Bias results in discrimination – when the algorithm favors or disfavors a sub-group of people – that’s a discriminatory algorithm.
Another highlighted concern has been the misuse of AI for disseminating misinformation and scams, especially via deepfakes. Unscrupulous behavior has been around since the dawn of civilization, it's just that this technology has simply made it easier and cheaper for criminals. Technology, after all, is a tool, and like any tool, it can be used for good or evil.
That may not even be our biggest concern: Elon Musk has repeatedly warned that unrestrained development of AI poses a potential existential threat to humanity and calls on governments to develop clear safety guardrails for AI technology. Legislators around the world are taking notes, and while tech companies were competing on who reigns supreme, government officials were working on how to regulate AI.
AI Regulation
U.S.
In late November, the Biden administration issued an Executive Order on Safe, Secure and Trustworthy Development and Use of AI. It demonstrates that the administration is taking seriously its responsibility not only to foster a vibrant AI ecosystem but also to harness and govern AI. The order ensures that it is committed to trustworthy AI for the American people and the broader global community by directing agencies to ensure safety and security, promote rights-respecting development and international collaboration, and protect against discrimination.
The order requires a set of obligations, which builds on a recent wave of White House initiatives on foundation models. Foundation models refer to AI systems that are trained on massive data at a scale to attain broad capabilities that can be adapted to a wide range of different, more specific purposes. In other words, the original model provides a base (hence “foundation”) on which other things can be built. Therefore, it is important to ensure that foundation models are safe and protect people and creators’ rights.
The White House also launched a red-teaming initiative in August and voluntary commitments for tech companies in July and September. The White House’s efforts on foundation models accompany the simultaneous release of the G7 principles and code of conduct on GenAI and foundation models.
European Union (EU)
In early December, Europe reached a provisional deal on landmark EU rules governing the use of AI including governments' use of AI in biometric surveillance and how to regulate GenAI. The final votes on the AI Act are expected to take place in early 2024; the law will then have a gradual period before it becomes fully applicable.
First proposed in April 2021, the Act presented a risk-based approach according to the potential risk AI poses to the safety of citizens and their fundamental rights: minimal, limited, high and unacceptable. But when OpenAI launched ChatGPT and unleashed a global furor over chatbots, the commission had to reconsider the approach to foundation models that power these chatbots and other GenAI applications.
The Commission's original proposal did not introduce any provisions for foundation models, forcing lawmakers to add an entirely new article with an extensive list of obligations. There is also a special requirement that high-impact foundation models with systemic risk will have to conduct model evaluations to assess and mitigate systemic risk.
Blockchain
Legislators can ask companies to adhere to responsible AI and ensure safety, security, and trust in AI systems and applications. But how can they enforce this? This is where blockchain technology can assist in the implementation and manifestation of auditable and responsible AI that is safe, secure, and trustworthy.
And speaking of blockchain technology, 2023 will also be remembered for its strides in regulated tokenized assets:
Several major traditional financial institutions, such as CitiGroup, JPMorgan, Swift, UBS and LSEG, announced tokenized assets services and products,.
PayPal launched its own regulated stablecoin, PayPal USD (PYUSD). The support for the launch of PayPal stablecoin by the Chairman of the House Financial Services Committee may indicate a positive sentiment among legislators for regulated tokenized assets.
In late October, global regulators in Japan, Singapore, the UK, and Switzerland formed a tokenized assets policy forum to explore tokenized assets and funds use cases. The project aims to share knowledge and examine the benefits, regulatory challenges, and commercial use cases of tokenized assets and funds.
Fed Governor Christopher J. Waller gave a speech on “Innovations and the Future of Finance,” explicitly talking about tokenization and the advantages that blockchain technology offers relative to traditional approaches to conducting transactions.
Coming Full Circle
2022 ended with the collapse of FTX, the centralized crypto exchange, and the arrest of its founder and ex-CEO, Sam Bankman-Fried, for fraud. It stirred a deepening of the “crypto winter” and increased misconceptions on what blockchain technology and Web3 are. In November, Bankman-Fried was convicted and faces a maximum sentence of 115 years in prison. Maybe now we can put this fiasco behind us and focus on what is truly important: how technology can benefit society.
But even as we make tremendous strides forward and continue to innovate, it is important to innovate responsibly. Innovators should not halt innovation and wait for regulators. They need to develop and nourish a “Responsible Innovation” mindset, understanding that being responsible will gain the trust of stakeholders and regulators, and help to create a more optimistic future.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | OpenAI, with its ChatGPT app, sparked more interest since its launch in late 2022 than any other application that has ever existed, reaching millions of users in less than a week and receiving hyped media coverage, prompting tech and finance titans to pivot to AI and GenAI. ChatGPT got so much attention that Google parent Alphabet, which had seen itself as an AI-first company for almost a decade, worried that it was losing ground to rival Microsoft (which has a 49% stake in OpenAI), and hastily released a promotional demo of their own GenAI bot, Bard, in early February. Fed Governor Christopher J. Waller gave a speech on “Innovations and the Future of Finance,” explicitly talking about tokenization and the advantages that blockchain technology offers relative to traditional approaches to conducting transactions. | Beyond Alphabet, other companies are trying to surf the AI wave: Microsoft has utilized GPT capabilities in all of its products including Azure and Microsoft 365; Amazon launched its own GenAI bot, Amazon Q for business; Elon Musk, a former OpenAI board member, unveiled a GenAI bot named Grok, which might represent a serious threat to ChatGPT; Mark Zuckerberg announced in March that “we're creating a new top-level product group at Meta focused on generative AI to turbocharge our work in this area;" and Tim Cook said in February, "[AI] is a major focus of ours," adding that “Apple sees an enormous potential in this space to affect virtually everything we do." That may not even be our biggest concern: Elon Musk has repeatedly warned that unrestrained development of AI poses a potential existential threat to humanity and calls on governments to develop clear safety guardrails for AI technology. Blockchain Legislators can ask companies to adhere to responsible AI and ensure safety, security, and trust in AI systems and applications. | Beyond Alphabet, other companies are trying to surf the AI wave: Microsoft has utilized GPT capabilities in all of its products including Azure and Microsoft 365; Amazon launched its own GenAI bot, Amazon Q for business; Elon Musk, a former OpenAI board member, unveiled a GenAI bot named Grok, which might represent a serious threat to ChatGPT; Mark Zuckerberg announced in March that “we're creating a new top-level product group at Meta focused on generative AI to turbocharge our work in this area;" and Tim Cook said in February, "[AI] is a major focus of ours," adding that “Apple sees an enormous potential in this space to affect virtually everything we do." AI and the Financial Sector This intensified focus on AI and its utilization is not reserved to big tech companies; financial institutions are also zeroing in on advanced AI products and services: JPMorgan CEO Jamie Dimon acknowledged AI's benefits during the bank’s last annual meeting, calling the technology "extraordinary and groundbreaking,” further indicating that "AI has helped us to significantly decrease risk in our retail business and improve trading optimization and portfolio construction." That may not even be our biggest concern: Elon Musk has repeatedly warned that unrestrained development of AI poses a potential existential threat to humanity and calls on governments to develop clear safety guardrails for AI technology. | The most discussed concern has been AI systems bias. AI Regulation The White House’s efforts on foundation models accompany the simultaneous release of the G7 principles and code of conduct on GenAI and foundation models. | 3dfbfc45-152c-4bf0-9daf-723f51f70174 |
710417.0 | 2023-12-16 21:00:00 UTC | Here's Why Momentum in Knife River (KNF) Should Keep going | DCOMP | https://www.nasdaq.com/articles/heres-why-momentum-in-knife-river-knf-should-keep-going | nan | nan | When it comes to short-term investing or trading, they say "the trend is your friend." And there's no denying that this is the most profitable strategy. But making sure of the sustainability of a trend to profit from it is easier said than done.
The trend often reverses before exiting the trade, leading to a short-term capital loss for investors. So, for a profitable trade, one should confirm factors such as sound fundamentals, positive earnings estimate revisions, etc. that could keep the momentum in the stock alive.
Investors looking to make a profit from stocks that are currently on the move may find our "Recent Price Strength" screen pretty useful. This predefined screen comes handy in spotting stocks that are on an uptrend backed by strength in their fundamentals, and trading in the upper portion of their 52-week high-low range, which is usually an indicator of bullishness.
There are several stocks that passed through the screen and Knife River (KNF) is one of them. Here are the key reasons why this stock is a solid choice for "trend" investing.
A solid price increase over a period of 12 weeks reflects investors' continued willingness to pay more for the potential upside in a stock. KNF is quite a good fit in this regard, gaining 36.9% over this period.
However, it's not enough to look at the price change for around three months, as it doesn't reflect any trend reversal that might have happened in a shorter time frame. It's important for a potential winner to maintain the price trend. A price increase of 14.5% over the past four weeks ensures that the trend is still in place for the stock of this construction materials company.
Moreover, KNF is currently trading at 98.6% of its 52-week High-Low Range, hinting that it can be on the verge of a breakout.
Looking at the fundamentals, the stock currently carries a Zacks Rank #1 (Strong Buy), which means it is in the top 5% of more than the 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises -- the key factors that impact a stock's near-term price movements.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Another factor that confirms the company's fundamental strength is its Average Broker Recommendation of #1 (Strong Buy). This indicates that the brokerage community is highly optimistic about the stock's near-term price performance.
So, the price trend in KNF may not reverse anytime soon.
In addition to KNF, there are several other stocks that currently pass through our "Recent Price Strength" screen. You may consider investing in them and start looking for the newest stocks that fit these criteria.
This is not the only screen that could help you find your next winning stock pick. Based on your personal investing style, you may choose from over 45 Zacks Premium Screens that are strategically created to beat the market.
However, keep in mind that the key to a successful stock-picking strategy is to ensure that it produced profitable results in the past. You could easily do that with the help of the Zacks Research Wizard. In addition to allowing you to backtest the effectiveness of your strategy, the program comes loaded with some of our most successful stock-picking strategies.
Click here to sign up for a free trial to the Research Wizard today.
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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Knife River Corporation (KNF) : 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. | This predefined screen comes handy in spotting stocks that are on an uptrend backed by strength in their fundamentals, and trading in the upper portion of their 52-week high-low range, which is usually an indicator of bullishness. A solid price increase over a period of 12 weeks reflects investors' continued willingness to pay more for the potential upside in a stock. 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 Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Another factor that confirms the company's fundamental strength is its Average Broker Recommendation of #1 (Strong Buy). Click to get this free report Knife River Corporation (KNF) : Free Stock Analysis Report To read this article on Zacks.com click here. | Looking at the fundamentals, the stock currently carries a Zacks Rank #1 (Strong Buy), which means it is in the top 5% of more than the 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises -- the key factors that impact a stock's near-term price movements. The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Another factor that confirms the company's fundamental strength is its Average Broker Recommendation of #1 (Strong Buy). | You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Another factor that confirms the company's fundamental strength is its Average Broker Recommendation of #1 (Strong Buy). So, the price trend in KNF may not reverse anytime soon. Be First to New Top 10 Stocks >> Want the latest recommendations from Zacks Investment Research? | f66675d5-61f1-4e5e-aacb-87ca999ab957 |
710418.0 | 2023-12-16 21:00:00 UTC | US STOCKS-Wall St set for lower open as rate-cut rally fizzles; FedEx slides | DCOMP | https://www.nasdaq.com/articles/us-stocks-wall-st-set-for-lower-open-as-rate-cut-rally-fizzles-fedex-slides | nan | nan | By Johann M Cherian and Shristi Achar A
Dec 20 (Reuters) - U.S. stocks were poised to open 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.
All the three main indexes have advanced over 2% since the Fed's Dec. 13 verdict where policymakers projected lower policy rates by the end of 2024, with the blue-chips 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 10.9% in premarket trading after the global delivery firm cut its full-year revenue forecast and reported quarterly profit that fell far short of analysts' targets, as its largest Express business saw demand from the U.S. Postal Service drop.
The results also dragged down shares of rival United Parcel Service UPS.N by 3.2%.
On the economic data front, investors await consumer confidence data for December and November existing home sales, both due at 10:00 a.m. ET. Consumer confidence is expected to improve to 104 this month.
At 8:29 a.m. ET, Dow e-minis 1YMcv1 were down 56 points, or 0.15%, S&P 500 e-minis EScv1 were down 8.25 points, or 0.17%, and Nasdaq 100 e-minis NQcv1 were down 42 points, or 0.25%.
Among tech-heavy Nasdaq constituents, Nvidia NVDA.O, Apple AAPL.O and Amazon.com AMZN.O slipped between 0.4% and 0.6% before the bell.
AlphabetGOOGL.O outperformed its megacap peers, up 1.2% 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.N slipped 4.3% after the Cheerios cereal-maker trimmed its annual sales forecast due to slowing demand for its higher-priced products.
SteelcaseSCS.N dropped 7.6% after the furniture maker reported a decline in its third-quarter revenue.
(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) - U.S. stocks were poised to open 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. All the three main indexes have advanced over 2% since the Fed's Dec. 13 verdict where policymakers projected lower policy rates by the end of 2024, with the blue-chips Dow notching fresh record highs and the S&P 500 within arm's reach of its highest closing levels since January 2022. Meanwhile, FedExFDX.N slid 10.9% in premarket trading after the global delivery firm cut its full-year revenue forecast and reported quarterly profit that fell far short of analysts' targets, as its largest Express business saw demand from the U.S. | Some analysts, however, pointed that the market expectations around rate cuts might be too aggressive. On the economic data front, investors await consumer confidence data for December and November existing home sales, both due at 10:00 a.m. ET, Dow e-minis 1YMcv1 were down 56 points, or 0.15%, S&P 500 e-minis EScv1 were down 8.25 points, or 0.17%, and Nasdaq 100 e-minis NQcv1 were down 42 points, or 0.25%. | 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. ET, Dow e-minis 1YMcv1 were down 56 points, or 0.15%, S&P 500 e-minis EScv1 were down 8.25 points, or 0.17%, and Nasdaq 100 e-minis NQcv1 were down 42 points, or 0.25%. | By Johann M Cherian and Shristi Achar A Dec 20 (Reuters) - U.S. stocks were poised to open 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. Some analysts, however, pointed that the market expectations around rate cuts might be too aggressive. Postal Service drop. | af3dd0c6-d4c9-4282-97e1-c4fb22e50bcd |
710419.0 | 2023-12-16 21:00:00 UTC | Despite Fast-paced Momentum, Beacon Roofing (BECN) Is Still a Bargain Stock | DCOMP | https://www.nasdaq.com/articles/despite-fast-paced-momentum-beacon-roofing-becn-is-still-a-bargain-stock | nan | nan | Momentum investing is essentially the opposite of the tried-and-tested Wall Street adage -- "buy low and sell high." Investors following this investing style typically avoid betting on cheap stocks and waiting long for them to recover. They believe instead that one could make far more money in lesser time by "buying high and selling higher."
Who doesn't like betting on fast-moving trending stocks? But determining the right entry point isn't easy. Often, these stocks lose momentum once their valuation moves ahead of their future growth potential. In such a situation, investors find themselves loaded up on expensive shares with limited to no upside or even a downside. So, going all-in on momentum could be risky at times.
A safer approach could be investing in bargain stocks with recent price momentum. While the Zacks Momentum Style Score (part of the Zacks Style Scores system) helps identify great momentum stocks by paying close attention to trends in a stock's price or earnings, our 'Fast-Paced Momentum at a Bargain' screen comes handy in spotting fast-moving stocks that are still attractively priced.
Beacon Roofing Supply (BECN) is one of the several great candidates that made it through the screen. While there are numerous reasons why this stock is a great choice, here are the most vital ones:
A dash of recent price momentum reflects growing interest of investors in a stock. With a four-week price change of 7.2%, the stock of this roofing materials distributor is certainly well-positioned in this regard.
While any stock can see a spike in price for a short period, it takes a real momentum player to deliver positive returns for a longer time frame. BECN meets this criterion too, as the stock gained 14.7% over the past 12 weeks.
Moreover, the momentum for BECN is fast paced, as the stock currently has a beta of 1.6. This indicates that the stock moves 60% higher than the market in either direction.
Given this price performance, it is no surprise that BECN has a Momentum Score of A, which indicates that this is the right time to enter the stock to take advantage of the momentum with the highest probability of success.
In addition to a favorable Momentum Score, an upward trend in earnings estimate revisions has helped BECN earn a Zacks Rank #1 (Strong Buy). Our research shows that the momentum-effect is quite strong among Zacks Rank #1 and #2 stocks. That's because as covering analysts raise their earnings estimates for a stock, more and more investors take an interest in it, helping its price race to keep up. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Most importantly, despite possessing fast-paced momentum features, BECN is trading at a reasonable valuation. In terms of Price-to-Sales ratio, which is considered as one of the best valuation metrics, the stock looks quite cheap now. BECN is currently trading at 0.63 times its sales. In other words, investors need to pay only 63 cents for each dollar of sales.
So, BECN appears to have plenty of room to run, and that too at a fast pace.
In addition to BECN, there are several other stocks that currently pass through our 'Fast-Paced Momentum at a Bargain' screen. You may consider investing in them and start looking for the newest stocks that fit these criteria.
This is not the only screen that could help you find your next winning stock pick. Based on your personal investing style, you may choose from over 45 Zacks Premium Screens that are strategically created to beat the market.
However, keep in mind that the key to a successful stock-picking strategy is to ensure that it produced profitable results in the past. You could easily do that with the help of the Zacks Research Wizard. In addition to allowing you to backtest the effectiveness of your strategy, the program comes loaded with some of our most successful stock-picking strategies.
Click here to sign up for a free trial to the Research Wizard today.
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
Beacon Roofing Supply, Inc. (BECN) : 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 any stock can see a spike in price for a short period, it takes a real momentum player to deliver positive returns for a longer time frame. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Most importantly, despite possessing fast-paced momentum features, BECN is trading at a reasonable valuation. 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%. | While the Zacks Momentum Style Score (part of the Zacks Style Scores system) helps identify great momentum stocks by paying close attention to trends in a stock's price or earnings, our 'Fast-Paced Momentum at a Bargain' screen comes handy in spotting fast-moving stocks that are still attractively priced. In addition to a favorable Momentum Score, an upward trend in earnings estimate revisions has helped BECN earn a Zacks Rank #1 (Strong Buy). Click to get this free report Beacon Roofing Supply, Inc. (BECN) : Free Stock Analysis Report To read this article on Zacks.com click here. | While the Zacks Momentum Style Score (part of the Zacks Style Scores system) helps identify great momentum stocks by paying close attention to trends in a stock's price or earnings, our 'Fast-Paced Momentum at a Bargain' screen comes handy in spotting fast-moving stocks that are still attractively priced. While there are numerous reasons why this stock is a great choice, here are the most vital ones: A dash of recent price momentum reflects growing interest of investors in a stock. Given this price performance, it is no surprise that BECN has a Momentum Score of A, which indicates that this is the right time to enter the stock to take advantage of the momentum with the highest probability of success. | While the Zacks Momentum Style Score (part of the Zacks Style Scores system) helps identify great momentum stocks by paying close attention to trends in a stock's price or earnings, our 'Fast-Paced Momentum at a Bargain' screen comes handy in spotting fast-moving stocks that are still attractively priced. Given this price performance, it is no surprise that BECN has a Momentum Score of A, which indicates that this is the right time to enter the stock to take advantage of the momentum with the highest probability of success. In addition to BECN, there are several other stocks that currently pass through our 'Fast-Paced Momentum at a Bargain' screen. | 6613b7dc-f173-4bdb-87e9-26d279058f1a |
710420.0 | 2023-12-16 21:00:00 UTC | Arcos Dorados (ARCO) Is a Great Choice for 'Trend' Investors, Here's Why | DCOMP | https://www.nasdaq.com/articles/arcos-dorados-arco-is-a-great-choice-for-trend-investors-heres-why-1 | nan | nan | When it comes to short-term investing or trading, they say "the trend is your friend." And there's no denying that this is the most profitable strategy. But making sure of the sustainability of a trend to profit from it is easier said than done.
The trend often reverses before exiting the trade, leading to a short-term capital loss for investors. So, for a profitable trade, one should confirm factors such as sound fundamentals, positive earnings estimate revisions, etc. that could keep the momentum in the stock alive.
Our "Recent Price Strength" screen, which is created on a unique short-term trading strategy, could be pretty useful in this regard. This predefined screen makes it really easy to shortlist the stocks that have enough fundamental strength to maintain their recent uptrend. Also, the screen passes only the stocks that are trading in the upper portion of their 52-week high-low range, which is usually an indicator of bullishness.
Arcos Dorados (ARCO) is one of the several suitable candidates that passed through the screen. Here are the key reasons why it could be a profitable bet for "trend" investors.
A solid price increase over a period of 12 weeks reflects investors' continued willingness to pay more for the potential upside in a stock. ARCO is quite a good fit in this regard, gaining 35.4% over this period.
However, it's not enough to look at the price change for around three months, as it doesn't reflect any trend reversal that might have happened in a shorter time frame. It's important for a potential winner to maintain the price trend. A price increase of 8.5% over the past four weeks ensures that the trend is still in place for the stock of this restaurant owner.
Moreover, ARCO is currently trading at 94.4% of its 52-week High-Low Range, hinting that it can be on the verge of a breakout.
Looking at the fundamentals, the stock currently carries a Zacks Rank #1 (Strong Buy), which means it is in the top 5% of more than the 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises -- the key factors that impact a stock's near-term price movements.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Another factor that confirms the company's fundamental strength is its Average Broker Recommendation of #1 (Strong Buy). This indicates that the brokerage community is highly optimistic about the stock's near-term price performance.
So, the price trend in ARCO may not reverse anytime soon.
In addition to ARCO, there are several other stocks that currently pass through our "Recent Price Strength" screen. You may consider investing in them and start looking for the newest stocks that fit these criteria.
This is not the only screen that could help you find your next winning stock pick. Based on your personal investing style, you may choose from over 45 Zacks Premium Screens that are strategically created to beat the market.
However, keep in mind that the key to a successful stock-picking strategy is to ensure that it produced profitable results in the past. You could easily do that with the help of the Zacks Research Wizard. In addition to allowing you to backtest the effectiveness of your strategy, the program comes loaded with some of our most successful stock-picking strategies.
Click here to sign up for a free trial to the Research Wizard today.
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
Arcos Dorados Holdings Inc. (ARCO) : 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. | A solid price increase over a period of 12 weeks reflects investors' continued willingness to pay more for the potential upside in a stock. Based on your personal investing style, you may choose from over 45 Zacks Premium Screens that are strategically created to beat the market. 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 Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Another factor that confirms the company's fundamental strength is its Average Broker Recommendation of #1 (Strong Buy). Click to get this free report Arcos Dorados Holdings Inc. (ARCO) : Free Stock Analysis Report To read this article on Zacks.com click here. | Looking at the fundamentals, the stock currently carries a Zacks Rank #1 (Strong Buy), which means it is in the top 5% of more than the 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises -- the key factors that impact a stock's near-term price movements. The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Another factor that confirms the company's fundamental strength is its Average Broker Recommendation of #1 (Strong Buy). | You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Another factor that confirms the company's fundamental strength is its Average Broker Recommendation of #1 (Strong Buy). So, the price trend in ARCO may not reverse anytime soon. Be First to New Top 10 Stocks >> Want the latest recommendations from Zacks Investment Research? | 05750385-0ada-4c3c-b23b-9cce973d15e7 |
710421.0 | 2023-12-16 21:00:00 UTC | What Makes Myomo, Inc. (MYO) a Good Fit for 'Trend Investing' | DCOMP | https://www.nasdaq.com/articles/what-makes-myomo-inc.-myo-a-good-fit-for-trend-investing | nan | nan | When it comes to short-term investing or trading, they say "the trend is your friend." And there's no denying that this is the most profitable strategy. But making sure of the sustainability of a trend to profit from it is easier said than done.
The trend often reverses before exiting the trade, leading to a short-term capital loss for investors. So, for a profitable trade, one should confirm factors such as sound fundamentals, positive earnings estimate revisions, etc. that could keep the momentum in the stock alive.
Our "Recent Price Strength" screen, which is created on a unique short-term trading strategy, could be pretty useful in this regard. This predefined screen makes it really easy to shortlist the stocks that have enough fundamental strength to maintain their recent uptrend. Also, the screen passes only the stocks that are trading in the upper portion of their 52-week high-low range, which is usually an indicator of bullishness.
Myomo, Inc. (MYO) is one of the several suitable candidates that passed through the screen. Here are the key reasons why it could be a profitable bet for "trend" investors.
A solid price increase over a period of 12 weeks reflects investors' continued willingness to pay more for the potential upside in a stock. MYO is quite a good fit in this regard, gaining 307.3% over this period.
However, it's not enough to look at the price change for around three months, as it doesn't reflect any trend reversal that might have happened in a shorter time frame. It's important for a potential winner to maintain the price trend. A price increase of 59.8% over the past four weeks ensures that the trend is still in place for the stock of this company.
Moreover, MYO is currently trading at 89.8% of its 52-week High-Low Range, hinting that it can be on the verge of a breakout.
Looking at the fundamentals, the stock currently carries 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 -- the key factors that impact a stock's near-term price movements.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Another factor that confirms the company's fundamental strength is its Average Broker Recommendation of #1 (Strong Buy). This indicates that the brokerage community is highly optimistic about the stock's near-term price performance.
So, the price trend in MYO may not reverse anytime soon.
In addition to MYO, there are several other stocks that currently pass through our "Recent Price Strength" screen. You may consider investing in them and start looking for the newest stocks that fit these criteria.
This is not the only screen that could help you find your next winning stock pick. Based on your personal investing style, you may choose from over 45 Zacks Premium Screens that are strategically created to beat the market.
However, keep in mind that the key to a successful stock-picking strategy is to ensure that it produced profitable results in the past. You could easily do that with the help of the Zacks Research Wizard. In addition to allowing you to backtest the effectiveness of your strategy, the program comes loaded with some of our most successful stock-picking strategies.
Click here to sign up for a free trial to the Research Wizard today.
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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Myomo, Inc. (MYO) : 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. | A solid price increase over a period of 12 weeks reflects investors' continued willingness to pay more for the potential upside in a stock. Based on your personal investing style, you may choose from over 45 Zacks Premium Screens that are strategically created to beat the market. 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 Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Another factor that confirms the company's fundamental strength is its Average Broker Recommendation of #1 (Strong Buy). Click to get this free report Myomo, Inc. (MYO) : Free Stock Analysis Report To read this article on Zacks.com click here. | Looking at the fundamentals, the stock currently carries 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 -- the key factors that impact a stock's near-term price movements. The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Another factor that confirms the company's fundamental strength is its Average Broker Recommendation of #1 (Strong Buy). | Our "Recent Price Strength" screen, which is created on a unique short-term trading strategy, could be pretty useful in this regard. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Another factor that confirms the company's fundamental strength is its Average Broker Recommendation of #1 (Strong Buy). Be First to New Top 10 Stocks >> Want the latest recommendations from Zacks Investment Research? | 1b929b4f-b838-40d4-920a-43251172c40e |
710422.0 | 2023-12-16 21:00:00 UTC | Taro (TARO) is on the Move, Here's Why the Trend Could be Sustainable | DCOMP | https://www.nasdaq.com/articles/taro-taro-is-on-the-move-heres-why-the-trend-could-be-sustainable | nan | nan | When it comes to short-term investing or trading, they say "the trend is your friend." And there's no denying that this is the most profitable strategy. But making sure of the sustainability of a trend to profit from it is easier said than done.
The trend often reverses before exiting the trade, leading to a short-term capital loss for investors. So, for a profitable trade, one should confirm factors such as sound fundamentals, positive earnings estimate revisions, etc. that could keep the momentum in the stock alive.
Our "Recent Price Strength" screen, which is created on a unique short-term trading strategy, could be pretty useful in this regard. This predefined screen makes it really easy to shortlist the stocks that have enough fundamental strength to maintain their recent uptrend. Also, the screen passes only the stocks that are trading in the upper portion of their 52-week high-low range, which is usually an indicator of bullishness.
There are several stocks that passed through the screen and Taro Pharmaceutical (TARO) is one of them. Here are the key reasons why this stock is a solid choice for "trend" investing.
A solid price increase over a period of 12 weeks reflects investors' continued willingness to pay more for the potential upside in a stock. TARO is quite a good fit in this regard, gaining 11% over this period.
However, it's not enough to look at the price change for around three months, as it doesn't reflect any trend reversal that might have happened in a shorter time frame. It's important for a potential winner to maintain the price trend. A price increase of 15.1% over the past four weeks ensures that the trend is still in place for the stock of this drug maker.
Moreover, TARO is currently trading at 98.6% of its 52-week High-Low Range, hinting that it can be on the verge of a breakout.
Looking at the fundamentals, the stock currently carries a Zacks Rank #1 (Strong Buy), which means it is in the top 5% of more than the 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises -- the key factors that impact a stock's near-term price movements.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Another factor that confirms the company's fundamental strength is its Average Broker Recommendation of #1 (Strong Buy). This indicates that the brokerage community is highly optimistic about the stock's near-term price performance.
So, the price trend in TARO may not reverse anytime soon.
In addition to TARO, there are several other stocks that currently pass through our "Recent Price Strength" screen. You may consider investing in them and start looking for the newest stocks that fit these criteria.
This is not the only screen that could help you find your next winning stock pick. Based on your personal investing style, you may choose from over 45 Zacks Premium Screens that are strategically created to beat the market.
However, keep in mind that the key to a successful stock-picking strategy is to ensure that it produced profitable results in the past. You could easily do that with the help of the Zacks Research Wizard. In addition to allowing you to backtest the effectiveness of your strategy, the program comes loaded with some of our most successful stock-picking strategies.
Click here to sign up for a free trial to the Research Wizard today.
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
Taro Pharmaceutical Industries Ltd. (TARO) : 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. | A solid price increase over a period of 12 weeks reflects investors' continued willingness to pay more for the potential upside in a stock. Based on your personal investing style, you may choose from over 45 Zacks Premium Screens that are strategically created to beat the market. 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 Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Another factor that confirms the company's fundamental strength is its Average Broker Recommendation of #1 (Strong Buy). Click to get this free report Taro Pharmaceutical Industries Ltd. (TARO) : Free Stock Analysis Report To read this article on Zacks.com click here. | Looking at the fundamentals, the stock currently carries a Zacks Rank #1 (Strong Buy), which means it is in the top 5% of more than the 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises -- the key factors that impact a stock's near-term price movements. The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Another factor that confirms the company's fundamental strength is its Average Broker Recommendation of #1 (Strong Buy). | Our "Recent Price Strength" screen, which is created on a unique short-term trading strategy, could be pretty useful in this regard. So, the price trend in TARO may not reverse anytime soon. Be First to New Top 10 Stocks >> Want the latest recommendations from Zacks Investment Research? | d5537666-a0e5-49ee-9c19-1ce63ec84f21 |
710423.0 | 2023-12-16 21:00:00 UTC | Manitex (MNTX) Is a Great Choice for 'Trend' Investors, Here's Why | DCOMP | https://www.nasdaq.com/articles/manitex-mntx-is-a-great-choice-for-trend-investors-heres-why | nan | nan | While "the trend is your friend" when it comes to short-term investing or trading, timing entries into the trend is a key determinant of success. And increasing the odds of success by making sure the sustainability of a trend isn't easy.
Often, the direction of a stock's price movement reverses quickly after taking a position in it, making investors incur a short-term capital loss. So, it's important to ensure that there are enough factors -- such as sound fundamentals, positive earnings estimate revisions, etc. -- that could keep the momentum in the stock going.
Our "Recent Price Strength" screen, which is created on a unique short-term trading strategy, could be pretty useful in this regard. This predefined screen makes it really easy to shortlist the stocks that have enough fundamental strength to maintain their recent uptrend. Also, the screen passes only the stocks that are trading in the upper portion of their 52-week high-low range, which is usually an indicator of bullishness.
Manitex (MNTX) is one of the several suitable candidates that passed through the screen. Here are the key reasons why it could be a profitable bet for "trend" investors.
A solid price increase over a period of 12 weeks reflects investors' continued willingness to pay more for the potential upside in a stock. MNTX is quite a good fit in this regard, gaining 88.5% over this period.
However, it's not enough to look at the price change for around three months, as it doesn't reflect any trend reversal that might have happened in a shorter time frame. It's important for a potential winner to maintain the price trend. A price increase of 36.8% over the past four weeks ensures that the trend is still in place for the stock of this maker of forklifts, cranes and other lifting vehicles.
Moreover, MNTX is currently trading at 99.2% of its 52-week High-Low Range, hinting that it can be on the verge of a breakout.
Looking at the fundamentals, the stock currently carries a Zacks Rank #1 (Strong Buy), which means it is in the top 5% of more than the 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises -- the key factors that impact a stock's near-term price movements.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Another factor that confirms the company's fundamental strength is its Average Broker Recommendation of #1 (Strong Buy). This indicates that the brokerage community is highly optimistic about the stock's near-term price performance.
So, the price trend in MNTX may not reverse anytime soon.
In addition to MNTX, there are several other stocks that currently pass through our "Recent Price Strength" screen. You may consider investing in them and start looking for the newest stocks that fit these criteria.
This is not the only screen that could help you find your next winning stock pick. Based on your personal investing style, you may choose from over 45 Zacks Premium Screens that are strategically created to beat the market.
However, keep in mind that the key to a successful stock-picking strategy is to ensure that it produced profitable results in the past. You could easily do that with the help of the Zacks Research Wizard. In addition to allowing you to backtest the effectiveness of your strategy, the program comes loaded with some of our most successful stock-picking strategies.
Click here to sign up for a free trial to the Research Wizard today.
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
Manitex International, Inc. (MNTX) : 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. | Often, the direction of a stock's price movement reverses quickly after taking a position in it, making investors incur a short-term capital loss. A solid price increase over a period of 12 weeks reflects investors' continued willingness to pay more for the potential upside in a stock. A price increase of 36.8% over the past four weeks ensures that the trend is still in place for the stock of this maker of forklifts, cranes and other lifting vehicles. | Our "Recent Price Strength" screen, which is created on a unique short-term trading strategy, could be pretty useful in this regard. The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Another factor that confirms the company's fundamental strength is its Average Broker Recommendation of #1 (Strong Buy). | Looking at the fundamentals, the stock currently carries a Zacks Rank #1 (Strong Buy), which means it is in the top 5% of more than the 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises -- the key factors that impact a stock's near-term price movements. The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Another factor that confirms the company's fundamental strength is its Average Broker Recommendation of #1 (Strong Buy). | You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Another factor that confirms the company's fundamental strength is its Average Broker Recommendation of #1 (Strong Buy). So, the price trend in MNTX may not reverse anytime soon. Be First to New Top 10 Stocks >> Want the latest recommendations from Zacks Investment Research? | 80bd4460-f387-4f6a-a430-0e2fcd508112 |
710424.0 | 2023-12-16 21:00:00 UTC | Fast-paced Momentum Stock Air France-KLM SA (AFLYY) Is Still Trading at a Bargain | DCOMP | https://www.nasdaq.com/articles/fast-paced-momentum-stock-air-france-klm-sa-aflyy-is-still-trading-at-a-bargain-0 | nan | nan | Momentum investing is essentially the opposite of the tried-and-tested Wall Street adage -- "buy low and sell high." Investors following this investing style typically avoid betting on cheap stocks and waiting long for them to recover. They believe instead that one could make far more money in lesser time by "buying high and selling higher."
Everyone likes betting on fast-moving trending stocks, but it isn't easy to determine the right entry point. These stocks often lose momentum when their future growth potential fails to justify their swelled-up valuation. In that phase, investors find themselves invested in shares that have limited to no upside or even a downside. So, betting on a stock just by looking at the traditional momentum parameters could be risky at times.
A safer approach could be investing in bargain stocks with recent price momentum. While the Zacks Momentum Style Score (part of the Zacks Style Scores system) helps identify great momentum stocks by paying close attention to trends in a stock's price or earnings, our 'Fast-Paced Momentum at a Bargain' screen comes handy in spotting fast-moving stocks that are still attractively priced.
Air France-KLM SA (AFLYY) is one of the several great candidates that made it through the screen. While there are numerous reasons why this stock is a great choice, here are the most vital ones:
A dash of recent price momentum reflects growing interest of investors in a stock. With a four-week price change of 15.5%, the stock of this company is certainly well-positioned in this regard.
While any stock can see a spike in price for a short period, it takes a real momentum player to deliver positive returns for a longer time frame. AFLYY meets this criterion too, as the stock gained 21.8% over the past 12 weeks.
Moreover, the momentum for AFLYY is fast paced, as the stock currently has a beta of 1.69. This indicates that the stock moves 69% higher than the market in either direction.
Given this price performance, it is no surprise that AFLYY has a Momentum Score of B, which indicates that this is the right time to enter the stock to take advantage of the momentum with the highest probability of success.
In addition to a favorable Momentum Score, an upward trend in earnings estimate revisions has helped AFLYY earn a Zacks Rank #2 (Buy). Our research shows that the momentum-effect is quite strong among Zacks Rank #1 and #2 stocks. That's because as covering analysts raise their earnings estimates for a stock, more and more investors take an interest in it, helping its price race to keep up. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Most importantly, despite possessing fast-paced momentum features, AFLYY is trading at a reasonable valuation. In terms of Price-to-Sales ratio, which is considered as one of the best valuation metrics, the stock looks quite cheap now. AFLYY is currently trading at 0.03 times its sales. In other words, investors need to pay only 3 cents for each dollar of sales.
So, AFLYY appears to have plenty of room to run, and that too at a fast pace.
In addition to AFLYY, there are several other stocks that currently pass through our 'Fast-Paced Momentum at a Bargain' screen. You may consider investing in them and start looking for the newest stocks that fit these criteria.
This is not the only screen that could help you find your next winning stock pick. Based on your personal investing style, you may choose from over 45 Zacks Premium Screens that are strategically created to beat the market.
However, keep in mind that the key to a successful stock-picking strategy is to ensure that it produced profitable results in the past. You could easily do that with the help of the Zacks Research Wizard. In addition to allowing you to backtest the effectiveness of your strategy, the program comes loaded with some of our most successful stock-picking strategies.
Click here to sign up for a free trial to the Research Wizard today.
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
Air France-KLM SA (AFLYY) : 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 any stock can see a spike in price for a short period, it takes a real momentum player to deliver positive returns for a longer time frame. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Most importantly, despite possessing fast-paced momentum features, AFLYY is trading at a reasonable valuation. 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%. | While the Zacks Momentum Style Score (part of the Zacks Style Scores system) helps identify great momentum stocks by paying close attention to trends in a stock's price or earnings, our 'Fast-Paced Momentum at a Bargain' screen comes handy in spotting fast-moving stocks that are still attractively priced. In addition to a favorable Momentum Score, an upward trend in earnings estimate revisions has helped AFLYY earn a Zacks Rank #2 (Buy). Click to get this free report Air France-KLM SA (AFLYY) : Free Stock Analysis Report To read this article on Zacks.com click here. | While the Zacks Momentum Style Score (part of the Zacks Style Scores system) helps identify great momentum stocks by paying close attention to trends in a stock's price or earnings, our 'Fast-Paced Momentum at a Bargain' screen comes handy in spotting fast-moving stocks that are still attractively priced. While there are numerous reasons why this stock is a great choice, here are the most vital ones: A dash of recent price momentum reflects growing interest of investors in a stock. Given this price performance, it is no surprise that AFLYY has a Momentum Score of B, which indicates that this is the right time to enter the stock to take advantage of the momentum with the highest probability of success. | While the Zacks Momentum Style Score (part of the Zacks Style Scores system) helps identify great momentum stocks by paying close attention to trends in a stock's price or earnings, our 'Fast-Paced Momentum at a Bargain' screen comes handy in spotting fast-moving stocks that are still attractively priced. Given this price performance, it is no surprise that AFLYY has a Momentum Score of B, which indicates that this is the right time to enter the stock to take advantage of the momentum with the highest probability of success. In addition to AFLYY, there are several other stocks that currently pass through our 'Fast-Paced Momentum at a Bargain' screen. | 2bd173df-f078-45d8-b004-339100c0746f |
710425.0 | 2023-12-16 21:00:00 UTC | Despite Fast-paced Momentum, Willdan (WLDN) Is Still a Bargain Stock | DCOMP | https://www.nasdaq.com/articles/despite-fast-paced-momentum-willdan-wldn-is-still-a-bargain-stock | nan | nan | Momentum investing is essentially the opposite of the tried-and-tested Wall Street adage -- "buy low and sell high." Investors following this investing style typically avoid betting on cheap stocks and waiting long for them to recover. They believe instead that one could make far more money in lesser time by "buying high and selling higher."
Who doesn't like betting on fast-moving trending stocks? But determining the right entry point isn't easy. Often, these stocks lose momentum once their valuation moves ahead of their future growth potential. In such a situation, investors find themselves loaded up on expensive shares with limited to no upside or even a downside. So, going all-in on momentum could be risky at times.
A safer approach could be investing in bargain stocks with recent price momentum. While the Zacks Momentum Style Score (part of the Zacks Style Scores system) helps identify great momentum stocks by paying close attention to trends in a stock's price or earnings, our 'Fast-Paced Momentum at a Bargain' screen comes handy in spotting fast-moving stocks that are still attractively priced.
There are several stocks that currently pass through the screen and Willdan Group (WLDN) is one of them. Here are the key reasons why this stock is a great candidate.
A dash of recent price momentum reflects growing interest of investors in a stock. With a four-week price change of 5.5%, the stock of this energy efficiency and sustainability consultant is certainly well-positioned in this regard.
While any stock can see a spike in price for a short period, it takes a real momentum player to deliver positive returns for a longer time frame. WLDN meets this criterion too, as the stock gained 7.3% over the past 12 weeks.
Moreover, the momentum for WLDN is fast paced, as the stock currently has a beta of 1.35. This indicates that the stock moves 35% higher than the market in either direction.
Given this price performance, it is no surprise that WLDN has a Momentum Score of B, which indicates that this is the right time to enter the stock to take advantage of the momentum with the highest probability of success.
In addition to a favorable Momentum Score, an upward trend in earnings estimate revisions has helped WLDN earn a Zacks Rank #2 (Buy). Our research shows that the momentum-effect is quite strong among Zacks Rank #1 and #2 stocks. That's because as covering analysts raise their earnings estimates for a stock, more and more investors take an interest in it, helping its price race to keep up. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Most importantly, despite possessing fast-paced momentum features, WLDN is trading at a reasonable valuation. In terms of Price-to-Sales ratio, which is considered as one of the best valuation metrics, the stock looks quite cheap now. WLDN is currently trading at 0.61 times its sales. In other words, investors need to pay only 61 cents for each dollar of sales.
So, WLDN appears to have plenty of room to run, and that too at a fast pace.
In addition to WLDN, there are several other stocks that currently pass through our 'Fast-Paced Momentum at a Bargain' screen. You may consider investing in them and start looking for the newest stocks that fit these criteria.
This is not the only screen that could help you find your next winning stock pick. Based on your personal investing style, you may choose from over 45 Zacks Premium Screens that are strategically created to beat the market.
However, keep in mind that the key to a successful stock-picking strategy is to ensure that it produced profitable results in the past. You could easily do that with the help of the Zacks Research Wizard. In addition to allowing you to backtest the effectiveness of your strategy, the program comes loaded with some of our most successful stock-picking strategies.
Click here to sign up for a free trial to the Research Wizard today.
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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Willdan Group, Inc. (WLDN) : 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. | While any stock can see a spike in price for a short period, it takes a real momentum player to deliver positive returns for a longer time frame. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Most importantly, despite possessing fast-paced momentum features, WLDN is trading at a reasonable valuation. 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%. | While the Zacks Momentum Style Score (part of the Zacks Style Scores system) helps identify great momentum stocks by paying close attention to trends in a stock's price or earnings, our 'Fast-Paced Momentum at a Bargain' screen comes handy in spotting fast-moving stocks that are still attractively priced. In addition to a favorable Momentum Score, an upward trend in earnings estimate revisions has helped WLDN earn a Zacks Rank #2 (Buy). Click to get this free report Willdan Group, Inc. (WLDN) : Free Stock Analysis Report To read this article on Zacks.com click here. | While the Zacks Momentum Style Score (part of the Zacks Style Scores system) helps identify great momentum stocks by paying close attention to trends in a stock's price or earnings, our 'Fast-Paced Momentum at a Bargain' screen comes handy in spotting fast-moving stocks that are still attractively priced. Given this price performance, it is no surprise that WLDN has a Momentum Score of B, which indicates that this is the right time to enter the stock to take advantage of the momentum with the highest probability of success. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Most importantly, despite possessing fast-paced momentum features, WLDN is trading at a reasonable valuation. | While the Zacks Momentum Style Score (part of the Zacks Style Scores system) helps identify great momentum stocks by paying close attention to trends in a stock's price or earnings, our 'Fast-Paced Momentum at a Bargain' screen comes handy in spotting fast-moving stocks that are still attractively priced. Given this price performance, it is no surprise that WLDN has a Momentum Score of B, which indicates that this is the right time to enter the stock to take advantage of the momentum with the highest probability of success. In addition to WLDN, there are several other stocks that currently pass through our 'Fast-Paced Momentum at a Bargain' screen. | 77bf440b-7564-48a9-8157-708115676d5c |
710426.0 | 2023-12-16 21:00:00 UTC | Despite Fast-paced Momentum, Jakks (JAKK) Is Still a Bargain Stock | DCOMP | https://www.nasdaq.com/articles/despite-fast-paced-momentum-jakks-jakk-is-still-a-bargain-stock-0 | nan | nan | Momentum investors typically don't time the market or "buy low and sell high." In other words, they avoid betting on cheap stocks and waiting long for them to recover. Instead, they believe that "buying high and selling higher" is the way to make far more money in lesser time.
Who doesn't like betting on fast-moving trending stocks? But determining the right entry point isn't easy. Often, these stocks lose momentum once their valuation moves ahead of their future growth potential. In such a situation, investors find themselves loaded up on expensive shares with limited to no upside or even a downside. So, going all-in on momentum could be risky at times.
It could be safer to invest in bargain stocks that have been witnessing price momentum recently. While the Zacks Momentum Style Score (part of the Zacks Style Scores system), which pays close attention to trends in a stock's price or earnings, is pretty useful in identifying great momentum stocks, our 'Fast-Paced Momentum at a Bargain' screen comes handy in spotting fast-moving stocks that are still attractively priced.
Jakks Pacific (JAKK) is one of the several great candidates that made it through the screen. While there are numerous reasons why this stock is a great choice, here are the most vital ones:
A dash of recent price momentum reflects growing interest of investors in a stock. With a four-week price change of 22.4%, the stock of this toymaker is certainly well-positioned in this regard.
While any stock can see a spike in price for a short period, it takes a real momentum player to deliver positive returns for a longer time frame. JAKK meets this criterion too, as the stock gained 102.3% over the past 12 weeks.
Moreover, the momentum for JAKK is fast paced, as the stock currently has a beta of 2.45. This indicates that the stock moves 145% higher than the market in either direction.
Given this price performance, it is no surprise that JAKK has a Momentum Score of B, which indicates that this is the right time to enter the stock to take advantage of the momentum with the highest probability of success.
In addition to a favorable Momentum Score, an upward trend in earnings estimate revisions has helped JAKK earn a Zacks Rank #1 (Strong Buy). Our research shows that the momentum-effect is quite strong among Zacks Rank #1 and #2 stocks. That's because as covering analysts raise their earnings estimates for a stock, more and more investors take an interest in it, helping its price race to keep up. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Most importantly, despite possessing fast-paced momentum features, JAKK is trading at a reasonable valuation. In terms of Price-to-Sales ratio, which is considered as one of the best valuation metrics, the stock looks quite cheap now. JAKK is currently trading at 0.51 times its sales. In other words, investors need to pay only 51 cents for each dollar of sales.
So, JAKK appears to have plenty of room to run, and that too at a fast pace.
In addition to JAKK, there are several other stocks that currently pass through our 'Fast-Paced Momentum at a Bargain' screen. You may consider investing in them and start looking for the newest stocks that fit these criteria.
This is not the only screen that could help you find your next winning stock pick. Based on your personal investing style, you may choose from over 45 Zacks Premium Screens that are strategically created to beat the market.
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Click here to sign up for a free trial to the Research Wizard today.
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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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JAKKS Pacific, Inc. (JAKK) : 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. | While any stock can see a spike in price for a short period, it takes a real momentum player to deliver positive returns for a longer time frame. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Most importantly, despite possessing fast-paced momentum features, JAKK is trading at a reasonable valuation. 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%. | While the Zacks Momentum Style Score (part of the Zacks Style Scores system), which pays close attention to trends in a stock's price or earnings, is pretty useful in identifying great momentum stocks, our 'Fast-Paced Momentum at a Bargain' screen comes handy in spotting fast-moving stocks that are still attractively priced. In addition to a favorable Momentum Score, an upward trend in earnings estimate revisions has helped JAKK earn a Zacks Rank #1 (Strong Buy). Click to get this free report JAKKS Pacific, Inc. (JAKK) : Free Stock Analysis Report To read this article on Zacks.com click here. | While the Zacks Momentum Style Score (part of the Zacks Style Scores system), which pays close attention to trends in a stock's price or earnings, is pretty useful in identifying great momentum stocks, our 'Fast-Paced Momentum at a Bargain' screen comes handy in spotting fast-moving stocks that are still attractively priced. While there are numerous reasons why this stock is a great choice, here are the most vital ones: A dash of recent price momentum reflects growing interest of investors in a stock. Given this price performance, it is no surprise that JAKK has a Momentum Score of B, which indicates that this is the right time to enter the stock to take advantage of the momentum with the highest probability of success. | Given this price performance, it is no surprise that JAKK has a Momentum Score of B, which indicates that this is the right time to enter the stock to take advantage of the momentum with the highest probability of success. In addition to JAKK, there are several other stocks that currently pass through our 'Fast-Paced Momentum at a Bargain' screen. Be First to New Top 10 Stocks >> Want the latest recommendations from Zacks Investment Research? | 3898a09d-e59e-416d-8fd4-32bf9e9e2d39 |
710427.0 | 2023-12-16 21:00:00 UTC | 4 Stocks Likely to be Hurt by European Union's Limit on AI Usage | DCOMP | https://www.nasdaq.com/articles/4-stocks-likely-to-be-hurt-by-european-unions-limit-on-ai-usage | nan | nan | The European Union’s (EU) growing efforts to regulate Artificial Intelligence (AI) have been taking a toll on the technology companies.
AI, which has created a niche in this data-driven world owing to its automation capabilities, poses risks to society. Despite several benefits to mankind, aggressive usage of AI, as well as generative AI, carries severe economic implications. It may harm fundamental rights and national security, as well as lead to job loss.
Considering the aforementioned facts, not only the EU but also other governing bodies have realized the utmost need to regularize this technology.
EU’s Aggressive Stance
Recently, the EU marked itself as the first major world power to enact laws governing AI. The European Parliament passed a draft law known as the A.I. Act in June 2023 and the EU lawmakers reached a provisional deal on it on Dec 8, 2023.
The A.I. Act limits the usage of AI and focuses on the technology’s risky benefits being availed by various companies and governments. The usage of AI in biometric surveillance, facial recognition software, deepfakes-generating software and most importantly, chatbots will be restricted under this act.
Moreover, companies making or using these AI software will be required to give clarification. Chatbot makers such as Microsoft-backed OpenAI and Alphabet’s Google, among others, will have to be transparent about their AI models.
Upon violating rules, companies will be charged a penalty of up to seven percent of their global sales.
We note that the A.I. Act is likely to hurt the prospects of big tech companies that have driven the AI revolution so far, as well as small tech companies with exposure to European countries in the days ahead. In this backdrop, we have provided a sneak peek into four such companies:
Year-to-Date Price Performance
Image Source: Zacks Investment Research
Box BOX, which has lost 15.8% year to date, is making concerted efforts to enhance its content creation and publishing offerings on the back of AI-infused capabilities. Its partnership with CrowdStrike to leverage the latter’s AI-powered platform, CrowdStrike Falcon remains noteworthy. Further, it teamed up with Microsoft to introduce a new plugin for Microsoft's AI workplace tool, Microsoft 365 Copilot, enhancing the usefulness of Box files within organizations.
However, Box, which is expanding its presence in Europe, will likely suffer from the enactment of the latest A.I. Act. The company has also been subjected to the adverse impacts of Brexit, as well as labor regulations in Europe.
BOX currently has a Zacks Rank #3 (Hold) and a VGM Score of C. The Zacks Consensus Estimate for fiscal 2025 earnings is pegged at $1.70 per share, which has moved 6.1% downward over the past 60 days.
C3.ai AI, which has gained 188.4% on a year-to-date basis, is gaining from increased demand for its Enterprise AI software. Further, solid momentum across C3 Generative AI and predictive maintenance services remains a plus. Moreover, the C3 Generative AI platform is enabling the company to acquire top-notch new customers while expanding its associations with existing customers.
However, most of the company’s international operations are based in Europe, which makes it vulnerable to the impacts of the EU’s stringent activities to regulate AI technology. Its revenues from Europe, the Middle East and Africa region accounted for 18% of total revenues in fiscal 2023.
C3.ai currently has a Zacks Rank #4 (Sell) and a VGM Score of F. The Zacks Consensus Estimate for fiscal 2024 loss is pegged at 63 cents per share, which has expanded from 42 cents over the past 60 days.
Duos Technologies Group DUOT is leaving no stone unturned to bolster its AI capabilities. It is well-known for its AI-powered technology solutions for rail, transit and transportation systems. It leverages machine vision and AI to identify potential problems and develop predictive maintenance models for rail systems.
However, the company may have to suffer with its plans to expand its footprint in European countries due to the fact that the EU is getting nastier for AI companies.
DUOT has returned 45% year to date. It currently has a Zacks Rank #4 and a VGM Score of F. The Zacks Consensus Estimate for 2024 loss is pegged at 65 cents per share, which has expanded from a loss of 39 cents over the past 60 days.
SoundHound AI SOUN, which has returned 26.6% year to date, provides artificial intelligence solutions for voice-enabled applications and devices. It leverages AI to recognize, understand and respond to human speech and sounds. The company is experiencing billions of user interactions thanks to its voice AI-powered millions of apps, TVs, cars and IoT devices.
However, SoundHound AI has significant operations in Europe where it generates most of its international revenues. So, it may have to face the impacts of the A.I. Act upon implementation. It is already facing the consequences of the EU’s General Data Protection Regulation.
SOUN has a Zacks Rank #3 and a VGM Score of D. The Zacks Consensus Estimate for 2024 loss is pegged at 23 cents per share, which has expanded from a loss of 22 cents over the past 60 days. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks 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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C3.ai, Inc. (AI) : Free Stock Analysis Report
Box, Inc. (BOX) : Free Stock Analysis Report
Duos Technologies Group, Inc. (DUOT) : Free Stock Analysis Report
SoundHound AI, Inc. (SOUN) : 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 European Union’s (EU) growing efforts to regulate Artificial Intelligence (AI) have been taking a toll on the technology companies. However, most of the company’s international operations are based in Europe, which makes it vulnerable to the impacts of the EU’s stringent activities to regulate AI technology. SoundHound AI SOUN, which has returned 26.6% year to date, provides artificial intelligence solutions for voice-enabled applications and devices. | C3.ai currently has a Zacks Rank #4 (Sell) and a VGM Score of F. The Zacks Consensus Estimate for fiscal 2024 loss is pegged at 63 cents per share, which has expanded from 42 cents over the past 60 days. SOUN has a Zacks Rank #3 and a VGM Score of D. The Zacks Consensus Estimate for 2024 loss is pegged at 23 cents per share, which has expanded from a loss of 22 cents over the past 60 days. Click to get this free report C3.ai, Inc. (AI) : Free Stock Analysis Report Box, Inc. (BOX) : Free Stock Analysis Report Duos Technologies Group, Inc. (DUOT) : Free Stock Analysis Report SoundHound AI, Inc. (SOUN) : Free Stock Analysis Report To read this article on Zacks.com click here. | Act is likely to hurt the prospects of big tech companies that have driven the AI revolution so far, as well as small tech companies with exposure to European countries in the days ahead. However, the company may have to suffer with its plans to expand its footprint in European countries due to the fact that the EU is getting nastier for AI companies. Click to get this free report C3.ai, Inc. (AI) : Free Stock Analysis Report Box, Inc. (BOX) : Free Stock Analysis Report Duos Technologies Group, Inc. (DUOT) : Free Stock Analysis Report SoundHound AI, Inc. (SOUN) : Free Stock Analysis Report To read this article on Zacks.com click here. | However, most of the company’s international operations are based in Europe, which makes it vulnerable to the impacts of the EU’s stringent activities to regulate AI technology. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Be First to New Top 10 Stocks >> Want the latest recommendations from Zacks Investment Research? | 973470e8-786d-418a-94b4-0965b203d8de |
710428.0 | 2023-12-16 21:00:00 UTC | Will NIO Succeed in Shaking Off 2023 Woes in the Year Ahead? | DCOMP | https://www.nasdaq.com/articles/will-nio-succeed-in-shaking-off-2023-woes-in-the-year-ahead | nan | nan | China’s electric vehicle (EV) maker, NIO, Inc. NIO has performed poorly on the bourses so far this year amid high interest rates and slower economic recovery in China, which impacted deliveries, particularly in the first half of 2023. The company also grappled with low vehicle margins. High operational costs for the development of new products and expansion initiatives increased operating costs. Additionally, the price war started by EV industry leader Tesla TSLA prompted NIO to slash prices across its models, which further weighed on margins. Stiff competition with its local rivals like Li Auto LI and XPeng XPEV added to NIO's difficulties in navigating this demanding landscape.
Year to date, shares of NIO have declined 9.3% against the industry’s growth of 32.2%. In comparison, LI and XPEV witnessed a sharp uptick of 72.9% and 48.8%, respectively.
Image Source: Zacks Investment Research
In terms of valuation, NIO’s P/S F12M ratio of 1.23 presently compares favorably with XPEV and LI’s 1.52X and 1.43X, respectively.
Currently priced at around $9/share, NIO is trading at a steep discount to its 52-week high of $16.18/share. So, should you buy the dip in the stock? Well, we think a potential comeback is on the horizon, and you should invest in this Chinese EV stock for profits in 2024.
Resurgent Delivery Momentum: After witnessing sequential declines in delivery volumes in the first and second quarters of 2023, NIO demonstrated strong delivery momentum in the third quarter and the first two months of the fourth quarter. Around 16,000 units were delivered on average in the last two months. For fourth-quarter 2023, NIO projects deliveries in the range of 47,000-49,000 vehicles, suggesting a 17.3-22.3% surge year over year.
The recent upgrade of GDP growth forecasts by the International Monetary Fund for China indicates an encouraging economic landscape. The agency now expects China's economy to grow by 4.6% in 2024, up from its previous forecast of 4.2% in October. Chinese consumers' spending is also on the rise, as evidenced by a notable 10.1% increase in national retail sales in November. With increasing economic activity and consumer expenditure, NIO appears positioned to benefit from favorable economic tailwinds in 2024.
Improving Vehicle Margins: NIO’s vehicle margins plunged to as low as 5.1% in the first quarter of 2023 amid intensifying pricing pressure in China’s EV industry. However, the last two quarters have witnessed an uptick in vehicle margins, particularly in the third quarter, thanks to decreased promotions. In the last reported quarter, NIO reported a vehicle margin of 11%, up 4.8 percentage points from the second quarter of 2023. Encouragingly, the company guided a vehicle margin of 15% for the fourth quarter of 2023. NIO anticipates vehicle margin in the band of 15-18% for 2024 and 20-22% for the longer term, driven by enhancements to the cost structure of the NT2 product, achieved through design optimization and improvements in supply chain and production efficiency.
Moreover, early this month, NIO announced that it would acquire two JAC plants for $442 million, marking a crucial shift from contract manufacturing to full-fledged factory management. This strategic move is expected to reduce production costs by approximately 10%, per management. Due to its manufacturing arrangement with JAC, there wasn’t much scope for NIO to streamline manufacturing costs. But that’s about to change now. Gaining full control over the manufacturing process will enable NIO to enhance efficiency and have greater influence in the competitive landscape, establishing a foundation for improved performance and cost-effectiveness.
Robust Battery Swap Network: NIO’s battery swap technology — part of NIO’s battery as a service (BaaS) strategy —provides an edge to the firm over its peers. The company claims that a battery pack can be replaced in its vehicles in about three minutes. On the latestearnings call NIO notified that it had installed 2,226 power swap stations worldwide. Encouragingly, NIO is expected to increase the total number of battery-swap stations to more than 2,300 by 2023-end.
NIO's strategic collaboration with Changan Automobile and Geely Holdings Group, allowing access to its battery swap network, signals a pivotal move, akin to Tesla's successful Supercharger network model. This partnership not only opens new revenue streams through access fees but aligns with industry trends, enhancing NIO's market influence.
NIO likens the battery swap network to cloud services and infrastructure—commencing with internal service and subsequently opening up to the public. The company plans to bring in partners to acquire the assets of the battery swap network but entrust its operations to NIO. Notably, NIO Power's charging business is almost breaking even, with 80% of electricity consumed by other brands, underscoring the success and efficiency of NIO's charging ecosystem.
Additionally, market speculation suggests that NIO may consider spinning off its battery production unit and swapping technology as a distinct entity. Such a move could potentially generate additional liquidity for the parent company.
Mobility Revolution with NOP+: Leveraging the backing of 29 highway battery swap stations, NIO's PSP system smoothly incorporates NOP+ with cutting-edge battery swap technologies. NOP+ stands as NIO's driver assistance software akin to Tesla's FSD. Concurrently, the company is advancing its NAD (NIO Autonomous Driving) software. Having effectively introduced NOP+ to early adopters across 100 cities, exceeding the 60,000 km testing milestone, NIO is well-positioned to accelerate the citywide rollout of NOP+, propelled by an advanced closed-loop data system and inventive hardware embedding strategies.
Funding Boost From Abu Dhabi: NIO recently secured a $2.2 billion investment from Abu Dhabi's CYVN Holdings, which not only strengthens the EV maker’s financial position but also cements CYVN's confidence in NIO's strategic standing in the EV industry. With CYVN's increased stake of about 20.1%, NIO gains crucial support for its long-term initiatives. This funding provides NIO with a fortified balance sheet, enabling intensified brand positioning, enhanced sales and service capabilities, and substantial investments in core technologies. Moreover, the collaboration with CYVN extends beyond financial backing, fostering strategic and technical collaborations in international markets and positioning NIO for sustained growth amid a transformative automotive landscape.
Buy NIO Now
While NIO is yet to turn a profit and is suffering from weak cash flow, the company seems to be making progress in the right direction. Hence, investing in NIO shares at the current price point might be prudent due to multiple factors. Its robust relationship with China’s government and innovative lineup, featuring models like ES6, ES8, EC6, EL7, ET5, ET7, and EC7, will act as growth drivers. The recent commencement of deliveries for the all-new EC6 underscores its commitment to product innovation. NIO's strategic focus on core technologies, in-house manufacturing for cost reduction, and an emphasis on product development and service expansion are set to boost prospects.
The upcoming year holds promise, with the full potential of NIO's second-generation products set to be unleashed, further solidifying its competitive edge. Increasing average selling prices and growing sales signal a positive trajectory. With the worst seemingly behind, NIO is poised for a promising 2024 backed by factors like cash boost, delivery upticks, model launches and an improvement in margins.
NIO currently carries a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for NIO’s top and bottom line implies a year-over-year improvement of 52% and 31%, respectively.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks 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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Tesla, Inc. (TSLA) : Free Stock Analysis Report
NIO Inc. (NIO) : Free Stock Analysis Report
Li Auto Inc. Sponsored ADR (LI) : Free Stock Analysis Report
XPeng Inc. Sponsored ADR (XPEV) : 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. | Gaining full control over the manufacturing process will enable NIO to enhance efficiency and have greater influence in the competitive landscape, establishing a foundation for improved performance and cost-effectiveness. Having effectively introduced NOP+ to early adopters across 100 cities, exceeding the 60,000 km testing milestone, NIO is well-positioned to accelerate the citywide rollout of NOP+, propelled by an advanced closed-loop data system and inventive hardware embedding strategies. NIO's strategic focus on core technologies, in-house manufacturing for cost reduction, and an emphasis on product development and service expansion are set to boost prospects. | Robust Battery Swap Network: NIO’s battery swap technology — part of NIO’s battery as a service (BaaS) strategy —provides an edge to the firm over its peers. Click to get this free report Tesla, Inc. (TSLA) : Free Stock Analysis Report NIO Inc. (NIO) : Free Stock Analysis Report Li Auto Inc. Sponsored ADR (LI) : Free Stock Analysis Report XPeng Inc. | China’s electric vehicle (EV) maker, NIO, Inc. NIO has performed poorly on the bourses so far this year amid high interest rates and slower economic recovery in China, which impacted deliveries, particularly in the first half of 2023. Robust Battery Swap Network: NIO’s battery swap technology — part of NIO’s battery as a service (BaaS) strategy —provides an edge to the firm over its peers. Click to get this free report Tesla, Inc. (TSLA) : Free Stock Analysis Report NIO Inc. (NIO) : Free Stock Analysis Report Li Auto Inc. | High operational costs for the development of new products and expansion initiatives increased operating costs. Improving Vehicle Margins: NIO’s vehicle margins plunged to as low as 5.1% in the first quarter of 2023 amid intensifying pricing pressure in China’s EV industry. Be First to New Top 10 Stocks >> Want the latest recommendations from Zacks Investment Research? | db6c69da-692a-4b7f-944f-d36ab6ebb956 |
710429.0 | 2023-12-16 21:00:00 UTC | Implied Volatility Surging for TakeTwo Interactive (TTWO) Stock Options | DCOMP | https://www.nasdaq.com/articles/implied-volatility-surging-for-taketwo-interactive-ttwo-stock-options | nan | nan | Investors in Take-Two Interactive Software, Inc. TTWO need to pay close attention to the stock based on moves in the options market lately. That is because the Jan 19, 2024 $15 Put 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 TakeTwo Interactive shares, but what is the fundamental picture for the company? Currently, TakeTwo Interactive is a Zacks Rank #3 (Hold) in the Toys - Games - Hobbies industry that ranks in the Top 37% of our Zacks Industry Rank. Over the last 30 days, no analysts have increased their earnings estimates for the current quarter, while two analysts have revised their estimates downward. The net effect has taken our Zacks Consensus Estimate for the current quarter from 74 cents per share to 72 cents in that period.
Given the way analysts feel about TakeTwo Interactive 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.
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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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Take-Two Interactive Software, Inc. (TTWO) : 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. | Investors in Take-Two Interactive Software, Inc. TTWO need to pay close attention to the stock based on moves in the options market lately. 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. | Investors in Take-Two Interactive Software, Inc. TTWO need to pay close attention to the stock based on moves in the options market lately. 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. Click to get this free report Take-Two Interactive Software, Inc. (TTWO) : 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. Currently, TakeTwo Interactive is a Zacks Rank #3 (Hold) in the Toys - Games - Hobbies industry that ranks in the Top 37% of our Zacks Industry Rank. 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. Looking to Trade Options? 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? | 3ee62266-728a-461a-9673-71f7749c2043 |
710430.0 | 2023-12-16 21:00:00 UTC | 4 Drug Stocks Rising More Than 40% in 2023 With Room to Grow | DCOMP | https://www.nasdaq.com/articles/4-drug-stocks-rising-more-than-40-in-2023-with-room-to-grow | nan | nan | The drug and biotech sector had a rather rough time in 2023. Regular pipeline setbacks, slow ramp-up of newer drugs, supply chain disruptions, uncertainty about the impact of Medicare drug price negotiations, Federal Trade Commission’s scrutiny of merger and acquisition (M&A) deals and broader economic uncertainty were some of the factors that pulled down the drug/biotech industry. However, rapid innovation, artificial intelligence and machine learning techniques for drug discovery and target identification processes, and growing opportunities for generics and biosimilar products were some of the highlights of 2023.
Innovation is likely to drive growth in the industry, with key spaces like weight loss/obesity and Alzheimer’s disease drugs attracting attention. M&A activity will continue to remain strong, which shows growth. Also, the Federal Reserve's indications of potential rate cuts in 2024 lead to hopes of a biotech market rebound in 2024. The fundamentals of the sector remain strong and investors are expected to come back to this defensive space eventually.
Several companies in the drug and biotech sector have returned 40% or higher year to date and have room for more growth in 2024. Here, we discuss four such companies — Novo Nordisk NVO, Journey Medical Corporation DERM, Lyra Therapeutics LYRA and Fusion Pharmaceuticals FUSN.
Novo Nordisk
It has one of the broadest diabetes portfolios in the industry, with an extensive range of insulin drugs and diabetes-related products. Semaglutide remains the company's growth engine. It is approved as Ozempic pre-filled pen and Rybelsus oral tablet for type II diabetes and as Wegovy injection for weight management. Ozempic, Rybelsus and Saxenda have been helping the company maintain momentum.
Novo Nordisk is aglobal marketleader in the popular GLP-1 segment of the diabetes market. Its popular GLP-1 receptor agonist, Wegovy, is seeing strong prescription trends and is generating impressive revenues and profits for Novo Nordisk. Label expansions of diabetes and obesity care drugs in cardiovascular and other indications are likely to boost sales.
Data from the phase III SELECT study, which evaluated Wegovy (semaglutide 2.4 mg) as an adjunctive treatment for preventing cardiovascular (“CV”) diseases in adults with overweight or obesity, showed that Wegovy reduced the risk of major adverse CV events by 20%. Obesity is one of the major risk factors responsible for CV diseases. A weight-loss drug like Wegovy, which also has CV benefits, is expected to see an increase in sales and demand. Novo Nordisk is also evaluating a once-daily oral formulation of semaglutide for obesity indication in late-stage studies, with a potential FDA filing expected later this year.
Novo Nordisk has also significantly stepped up its M&A activity in the past two years.
Novo Nordisk sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The stock has risen 47.8% so far this year compared with an increase of 5% for the industry.
Image Source: Zacks Investment Research
Estimates for its 2024 earnings per share have increased from $2.99 to $3.10 over the past 60 days.
Journey Medical
Journey Medical markets eight branded and two generic products to treat some common skin conditions.
Its key pipeline candidate is DFD-29, which is being developed as an oral treatment for inflammatory lesions (papules and pustules) and erythema of rosacea. Journey Medical announced positive top-line data from two phase III studies on DFD-29 in July. The studies achieved the co-primary and all secondary endpoints, demonstrating statistically superior efficacy of DFD-29 over Oracea (standard of care) and placebo. Oracea is used to treat inflammation associated with rosacea in adults.
The studies also demonstrated the beneficial effect of DFD-29 on erythema assessment, which means redness from rosacea. Erythema assessment is a key secondary endpoint of the study. Erythema is an important sign of rosacea severity. Improving erythema is relevant to rosacea treatment. DFD-29’s significant impact on erythema reduction could prove to be the differentiating factor over the current standard of care for rosacea. The company plans to file a new drug application for DFD-29 toward the end of 2023. Journey Medical believes DFD-29 has the potential to change the treatment paradigm for rosacea.
Journey Medical's stock has risen 296.9% so far this year against a decrease of 3.5% for the industry.
Image Source: Zacks Investment Research
Journey Medical sports a Zacks Rank #1 currently. Estimates for Journey Medical’s 2024 bottom line have improved from a loss of 41 cents per share to a loss of 35 cents per share over the past 60 days.
Lyra Therapeutics
The company is developing two therapies for the treatment of chronic rhinosinusitis (CRS) in late-stage studies. LYR-210 and LYR-220 are bioresorbable nasal implants designed to deliver six months of continuous anti-inflammatory medication to the sinonasal passages for the treatment of CRS, a highly prevalent inflammatory disease of the paranasal sinuses.
In September, Lyra announced positive top-line data from the BEACON phase II study of LYR-220 in CRS patients who have had prior ethmoid sinus surgery. The study met its primary safety endpoint with LYR-220 demonstrating statistically significant and clinically relevant improvements in symptom severity.
Enrolment has been completed in the pivotal phase III ENLIGHTEN I study on the second candidate, LYR-210, in CRS patients who have not had ethmoid sinus surgery, with top-line data expected in the first half of 2024. Enrolment is ongoing in the second pivotal phase III study, ENLIGHTEN II on LYR-210, also in the pre-surgical CRS patient group.
Lyra Therapeutics’ stock has risen 58.9% so far this year against a decrease of 3.5% for the industry.
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The consensus estimate for 2024 loss has narrowed from $1.27 per share to $1.03 per share over the past 60 days. The company has a Zacks Rank #2 (Buy).
Fusion Pharmaceuticals
The company makes next-generation radiopharmaceuticals as precision medicines. It has a diversified pipeline of targeted alpha therapy (TAT) programs.
Its key pipeline candidates are FPI-2265, a small molecule-based TAT targeting prostate specific membrane antigen for the treatment of metastatic castration-resistant prostate cancer, and FPI-1434 in phase I for patients with solid tumors expressing IGF-1R. Preliminary data from approximately 20 to 30 patients from the phase II study on FPI-2265 are expected to be released in the first quarter of 2024.
In April, Fusion Pharmaceuticals received IND clearance to begin clinical development of FPI-2068, its novel TAT candidate, which targets solid tumors expressing EGFR-cMET. Fusion Pharmaceuticals is jointly developing FPI-2068 with AstraZeneca under the companies' multi-asset collaboration agreement. Pre-clinical data on the candidate has demonstrated strong anti-tumor activity and confirmatory evidence of FPI-2068's mechanism of action.
Fusion has also entered into a collaboration with Merck to evaluate FPI-1434 in combination with Merck's blockbuster PD-L1 inhibitor, Keytruda, in patients with solid tumors expressing IGF-1R.
Fusion Pharmaceuticals’ stock has risen 91.4% so far this year against a decrease of 3.5% for the industry.
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The consensus estimate for 2024 loss has narrowed from $1.63 per share to $1.40 per share over the past 60 days. The company has 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.
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Novo Nordisk A/S (NVO) : 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, rapid innovation, artificial intelligence and machine learning techniques for drug discovery and target identification processes, and growing opportunities for generics and biosimilar products were some of the highlights of 2023. LYR-210 and LYR-220 are bioresorbable nasal implants designed to deliver six months of continuous anti-inflammatory medication to the sinonasal passages for the treatment of CRS, a highly prevalent inflammatory disease of the paranasal sinuses. Enrolment has been completed in the pivotal phase III ENLIGHTEN I study on the second candidate, LYR-210, in CRS patients who have not had ethmoid sinus surgery, with top-line data expected in the first half of 2024. | Here, we discuss four such companies — Novo Nordisk NVO, Journey Medical Corporation DERM, Lyra Therapeutics LYRA and Fusion Pharmaceuticals FUSN. Image Source: Zacks Investment Research Journey Medical sports a Zacks Rank #1 currently. Click to get this free report Novo Nordisk A/S (NVO) : Free Stock Analysis Report Journey Medical Corporation (DERM) : Free Stock Analysis Report Fusion Pharmaceuticals Inc. (FUSN) : Free Stock Analysis Report Lyra Therapeutics, Inc. (LYRA) : Free Stock Analysis Report To read this article on Zacks.com click here. | Here, we discuss four such companies — Novo Nordisk NVO, Journey Medical Corporation DERM, Lyra Therapeutics LYRA and Fusion Pharmaceuticals FUSN. Data from the phase III SELECT study, which evaluated Wegovy (semaglutide 2.4 mg) as an adjunctive treatment for preventing cardiovascular (“CV”) diseases in adults with overweight or obesity, showed that Wegovy reduced the risk of major adverse CV events by 20%. Click to get this free report Novo Nordisk A/S (NVO) : Free Stock Analysis Report Journey Medical Corporation (DERM) : Free Stock Analysis Report Fusion Pharmaceuticals Inc. (FUSN) : Free Stock Analysis Report Lyra Therapeutics, Inc. (LYRA) : Free Stock Analysis Report To read this article on Zacks.com click here. | Novo Nordisk has also significantly stepped up its M&A activity in the past two years. Novo Nordisk sports a Zacks Rank #1 (Strong Buy). Image Source: Zacks Investment Research Journey Medical sports a Zacks Rank #1 currently. | 248584b1-2da2-4b9f-b8a4-cbd077ecb205 |
710431.0 | 2023-12-16 21:00:00 UTC | Here's How Much You'd Have If You Invested $1000 in Wix.com a Decade Ago | DCOMP | https://www.nasdaq.com/articles/heres-how-much-youd-have-if-you-invested-%241000-in-wix.com-a-decade-ago | nan | nan | For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in Wix.com (WIX) ten years ago? It may not have been easy to hold on to WIX for all that time, but if you did, how much would your investment be worth today?
Wix.com's Business In-Depth
With that in mind, let's take a look at Wix.com's main business drivers.
Headquartered in Tel Aviv, Israel and founded in 2006, Wix.com Ltd. is a cloud-based web development platform. The company's platform offers solutions that enable businesses, organizations, professionals and individuals to develop customized websites and application platforms.
In 2022, the company reported revenues of $1.39 billion. Growth in the number of registered users and premium subscriptions are key revenue drivers. The company’s core products and services include Wix Editor, Wix ADI, Corvid by Wix (now Velo by Wix), Wix Mobile, Web, Wix App and Wix SEO Wi.
Wix Editor offers ready templates and drag-and-drop editor tool to facilitate Website editing to make web stores look professional without any design experience.
Wix ADI allows users to design websites customized to meet their specific needs. Corvid by Wix is designed to aid developers manage their workflow in a streamlined manner.
Ascend by Wix suite comprises of advanced features which allow users to seamlessly connect with customers, automate work processes, and aids in expanding business. Moreover, with Wix Logo Maker users can generate a logo by utilizing artificial intelligence.
Apart from the company’s own payment solution Wix Stores, payment wallets like Apple Pay and Google Play is also available to the merchants, who they offer to customers for completing transaction done on the Wix App.
Additionally, Wix Payments platform allows users to accept payments from customers via Wix Website.
Registered users as of Sep 30, 2023, were 258 million.
For increased transparency, beginning the fourth quarter of 2019, Wix reported revenues, collections and cost of revenues under two segments: Creative Subscriptions and Business Solutions. Creative Subscriptions and Business Solutions contributed 73.8% and 26.2%, respectively, to total third-quarter 2023 revenues of $390 million.
The company also started providing Annualized Recurring Revenue (ARR) as the primary KPI for growth of its Creative Subscriptions segment. As of Sep 30, 2023, Creative Subscriptions ARR was $1.18 billion.
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Wix.com, if you bought shares a decade ago, you're likely feeling really good about your investment today.
A $1000 investment made in December 2013 would be worth $4,420.92, or a gain of 342.09%, as of December 20, 2023, according to our calculations. This return excludes dividends but includes price appreciation.
In comparison, the S&P 500 gained 163.50% and the price of gold went up 64.72% over the same time frame.
Looking ahead, analysts are expecting more upside for WIX.
Wix’s performance is benefiting from solid momentum in Creative Subscriptions’ and Business Solutions’ segments. The company plans to tap the growing demand for Artificial Intelligence (AI) by launching new products like Conversational AI Chat for businesses and AI Meta Tags Creator. Increasing partner revenues and B2B partnerships bodes well in the long run. The conversion of new users to paid subscriptions, strong customer retention and increasing average revenue per subscription augur well. Going ahead, the company expects 2023 revenues and free cash flow margin to rise owing to business momentum. However, volatile macroeconomic environment and unfavorable foreign currency fluctuations could weigh down on the company’s performance. Stiff competition and rising accumulated deficit are major headwinds.
The stock is up 22.88% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 6 higher, for fiscal 2023. The consensus estimate has moved up as well.
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
Wix.com Ltd. (WIX) : 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. | Ascend by Wix suite comprises of advanced features which allow users to seamlessly connect with customers, automate work processes, and aids in expanding business. The company also started providing Annualized Recurring Revenue (ARR) as the primary KPI for growth of its Creative Subscriptions segment. 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 company's platform offers solutions that enable businesses, organizations, professionals and individuals to develop customized websites and application platforms. The company’s core products and services include Wix Editor, Wix ADI, Corvid by Wix (now Velo by Wix), Wix Mobile, Web, Wix App and Wix SEO Wi. Additionally, Wix Payments platform allows users to accept payments from customers via Wix Website. | The company’s core products and services include Wix Editor, Wix ADI, Corvid by Wix (now Velo by Wix), Wix Mobile, Web, Wix App and Wix SEO Wi. Apart from the company’s own payment solution Wix Stores, payment wallets like Apple Pay and Google Play is also available to the merchants, who they offer to customers for completing transaction done on the Wix App. For increased transparency, beginning the fourth quarter of 2019, Wix reported revenues, collections and cost of revenues under two segments: Creative Subscriptions and Business Solutions. | It may not have been easy to hold on to WIX for all that time, but if you did, how much would your investment be worth today? The company’s core products and services include Wix Editor, Wix ADI, Corvid by Wix (now Velo by Wix), Wix Mobile, Web, Wix App and Wix SEO Wi. Wix ADI allows users to design websites customized to meet their specific needs. | 00047ccb-15f6-4fa3-b117-2c88c3627ca8 |
710432.0 | 2023-12-16 21:00:00 UTC | Better Dividend Stock: Pfizer or British American Tobacco? | DCOMP | https://www.nasdaq.com/articles/better-dividend-stock%3A-pfizer-or-british-american-tobacco | nan | nan | Dividend stocks offer attractive features for income and growth investors alike. On the income side, many blue chip dividend stocks sport higher yields than those of risk-free assets such as the 10-year Treasury bill, and their payouts also appear safe and dependable, as corporate cash positions are at near-record levels in many instances. Investors can also improve their long-term returns by reinvesting their distributions, giving the power of compound growth an added boost. According to a recent report by Hartford Funds, over the past 62 years, reinvested dividends accounted for 69% of the total returns of the benchmark S&P 500 index.
Pfizer (NYSE: PFE) and British American Tobacco (NYSE: BTI) (aka BAT) are blue chip dividend stocks that command attention for two reasons. First off, both sport yields that are several times higher than the 1.5% average for S&P 500 stocks. They thus provide particularly generous income streams for shareholders. Second, both are known for their ability to generate ample free cash flow, which bodes well for the sustainability of their payouts and the prospects of future distribution hikes.
Image Source: Getty Images.
But which of these blue chip dividend stocks is the better buy now?
The case for Pfizer
Pfizer has the highest dividend yield of any big pharma stock -- 6.2% at the current share price. Its shares are also cheap, trading at 9.4 times 2024 estimated earnings. But due to falling demand for its COVID-19 products, Pfizer's revenue is on pace to decline by more than 40% this year, and it faces the prospect of little to no revenue growth next year, according to a recent corporate update. The drugmaker hopes to overcome this challenge by bringing new internally developed drugs to market and by acquiring biopharmas with commercial-stage assets, such as Seagen. However, these strategies will take time to pay off.
Still, Pfizer's dividend should be safe given the company's strong free cash flows and management's commitment to paying a top-tier cash distribution. However, the stock probably won't offer much in the way of capital appreciation until management's turnaround plan starts to bear fruit. That's fine if you plan to hold the stock for five to 10 years. But buying this big pharma stock if you have a shorter time horizon in mind for the investment may not be a winning strategy.
The case for British American Tobacco
British American Tobacco is one of the largest tobacco companies in the world in terms of annual sales. At its current share price, it offers a blistering 9.4% yield. BAT's stock is also exceptionally cheap at 6.28 times 2024 projected earnings. However, the tobacco company's sizable yield and low-ball valuation reflect some important headwinds.
Chief among them is the ongoing decline in cigarette smoking rates around the world. Now, British American Tobacco is transforming its business to mitigate this headwind by pivoting to vaping and heated tobacco alternatives. But this metamorphosis is likely to take a few years to complete.
Verdict
Should you invest $1,000 in Pfizer right now?
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George Budwell has positions in Pfizer. The Motley Fool has positions in and recommends Pfizer. The Motley Fool recommends British American Tobacco P.l.c. and recommends the following options: long January 2024 $40 calls on British American Tobacco P.l.c., long January 2026 $40 calls on British American Tobacco P.l.c., and short January 2026 $40 puts on British American Tobacco P.l.c. 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. | On the income side, many blue chip dividend stocks sport higher yields than those of risk-free assets such as the 10-year Treasury bill, and their payouts also appear safe and dependable, as corporate cash positions are at near-record levels in many instances. According to a recent report by Hartford Funds, over the past 62 years, reinvested dividends accounted for 69% of the total returns of the benchmark S&P 500 index. The drugmaker hopes to overcome this challenge by bringing new internally developed drugs to market and by acquiring biopharmas with commercial-stage assets, such as Seagen. | On the income side, many blue chip dividend stocks sport higher yields than those of risk-free assets such as the 10-year Treasury bill, and their payouts also appear safe and dependable, as corporate cash positions are at near-record levels in many instances. Pfizer (NYSE: PFE) and British American Tobacco (NYSE: BTI) (aka BAT) are blue chip dividend stocks that command attention for two reasons. and recommends the following options: long January 2024 $40 calls on British American Tobacco P.l.c., long January 2026 $40 calls on British American Tobacco P.l.c., and short January 2026 $40 puts on British American Tobacco P.l.c. | Pfizer (NYSE: PFE) and British American Tobacco (NYSE: BTI) (aka BAT) are blue chip dividend stocks that command attention for two reasons. Before you buy stock in Pfizer, 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 Pfizer wasn't one of them. and recommends the following options: long January 2024 $40 calls on British American Tobacco P.l.c., long January 2026 $40 calls on British American Tobacco P.l.c., and short January 2026 $40 puts on British American Tobacco P.l.c. | Dividend stocks offer attractive features for income and growth investors alike. Pfizer (NYSE: PFE) and British American Tobacco (NYSE: BTI) (aka BAT) are blue chip dividend stocks that command attention for two reasons. Before you buy stock in Pfizer, 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 Pfizer wasn't one of them. | 77292a78-affb-4adb-b1e4-8b7554ea54a7 |
710433.0 | 2023-12-16 21:00:00 UTC | If You Invested $1000 in Micron a Decade Ago, This is How Much It'd Be Worth Now | DCOMP | https://www.nasdaq.com/articles/if-you-invested-%241000-in-micron-a-decade-ago-this-is-how-much-itd-be-worth-now | nan | nan | How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in Micron (MU) ten years ago? It may not have been easy to hold on to MU for all that time, but if you did, how much would your investment be worth today?
Micron's Business In-Depth
With that in mind, let's take a look at Micron's main business drivers.
Idaho-based Micron Technology has established itself as one of the leading worldwide providers of semiconductor memory solutions.
Through global brands, namely Micron, Crucial and Ballistix, Micron manufactures and markets high-performance memory and storage technologies including Dynamic Random Access Memory (DRAM), NAND flash memory, NOR Flash, 3D XPoint memory and other technologies. Its solutions are used in leading-edge computing, consumer, networking and mobile products.
A major portion of the revenues is derived from DRAM sales. The company's mission is to be the most efficient and innovative global provider of semiconductor memory solutions.
Micron reported revenues of $15.54 billion in fiscal 2023. The company has four reportable segments:
Compute and Networking Business Unit (CNBU): The unit comprises of DRAM and NOR Flash products that are sold to the computer, networking, graphics, and cloud server markets, and NAND Flash products which are sold into the networking market. CNBU delivered revenues of $5.71 billion (37% of total revenues) in fiscal 2023.
Mobile Business Unit (MBU): The unit comprises Micron’s discrete DRAM, discrete NAND and managed NAND (including eMMC and universal flash storage (UFS) solutions) products that are sold to smartphone and other mobile-device markets. MBU generated revenues of $3.63 billion (23%) in fiscal 2023.
Storage Business Unit (SBU): The unit accounts for solid state drives (SSDs) and component-level solutions sold into enterprise and cloud, client and consumer storage markets as well as other discrete storage products sold in component and wafer forms to the removable storage markets. SBU’s revenues grossed $2.55 billion (16%) in fiscal 2023.
Embedded Business Unit (EBU): The unit includes Micron’s discrete DRAM, discrete NAND, managed NAND and NOR products, which are sold to the automotive, industrial and consumer markets. EBU’s revenues logged $3.64 billion (24%) in fiscal 2023.
The company struggles with intense competition from Intel, Samsung Electronics, SK Hynix, Toshiba Memory and Western Digital Corporation.
Bottom Line
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Micron ten years ago, you're likely feeling pretty good about your investment today.
A $1000 investment made in December 2013 would be worth $3,800.65, or a gain of 280.06%, as of December 20, 2023, according to our calculations. This return excludes dividends but includes price appreciation.
In comparison, the S&P 500 gained 163.50% and the price of gold went up 64.72% over the same time frame.
Looking ahead, analysts are expecting more upside for MU.
Micron is witnessing growing demand for memory chips (from cloud-computing providers) and acceleration in 5G cellular network adoptions. A rising mix of high-value solutions and improving customer engagement and cost structure are growth drivers as well. Additionally, 5G adoption in Internet of Things devices and wireless infrastructure is likely to spur demand for memory and storage. Nonetheless, the company's near-term prospects look gloomy as weakening consumer spending is negatively impacting the demand for memory chips used in personal computers (PCs) and smartphones. Bit shipments for the DRAM and NAND memory chips may decline in the near term as PC makers are adjusting their inventory due to weakened demand. Additionally, the United States and China’s tit-for-tat trade war is a major threat to the company.
The stock has jumped 7.12% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 7 higher, for fiscal 2023; the consensus estimate has moved up as well.
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
Micron Technology, Inc. (MU) : 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 struggles with intense competition from Intel, Samsung Electronics, SK Hynix, Toshiba Memory and Western Digital Corporation. Nonetheless, the company's near-term prospects look gloomy as weakening consumer spending is negatively impacting the demand for memory chips used in personal computers (PCs) and smartphones. Bit shipments for the DRAM and NAND memory chips may decline in the near term as PC makers are adjusting their inventory due to weakened demand. | Compute and Networking Business Unit (CNBU): The unit comprises of DRAM and NOR Flash products that are sold to the computer, networking, graphics, and cloud server markets, and NAND Flash products which are sold into the networking market. Mobile Business Unit (MBU): The unit comprises Micron’s discrete DRAM, discrete NAND and managed NAND (including eMMC and universal flash storage (UFS) solutions) products that are sold to smartphone and other mobile-device markets. Embedded Business Unit (EBU): The unit includes Micron’s discrete DRAM, discrete NAND, managed NAND and NOR products, which are sold to the automotive, industrial and consumer markets. | Through global brands, namely Micron, Crucial and Ballistix, Micron manufactures and markets high-performance memory and storage technologies including Dynamic Random Access Memory (DRAM), NAND flash memory, NOR Flash, 3D XPoint memory and other technologies. Compute and Networking Business Unit (CNBU): The unit comprises of DRAM and NOR Flash products that are sold to the computer, networking, graphics, and cloud server markets, and NAND Flash products which are sold into the networking market. Mobile Business Unit (MBU): The unit comprises Micron’s discrete DRAM, discrete NAND and managed NAND (including eMMC and universal flash storage (UFS) solutions) products that are sold to smartphone and other mobile-device markets. | It may not have been easy to hold on to MU for all that time, but if you did, how much would your investment be worth today? Micron reported revenues of $15.54 billion in fiscal 2023. Micron is witnessing growing demand for memory chips (from cloud-computing providers) and acceleration in 5G cellular network adoptions. | fd76a072-bf37-4e39-95ea-cead2ba1789d |
710434.0 | 2023-12-16 21:00:00 UTC | Is the Options Market Predicting a Spike in Community Health (CYH) Stock? | DCOMP | https://www.nasdaq.com/articles/is-the-options-market-predicting-a-spike-in-community-health-cyh-stock | nan | nan | Investors in Community Health Systems, Inc. CYH need to pay close attention to the stock based on moves in the options market lately. That is because the Jan 19, 2024 $1 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 Community Health shares, but what is the fundamental picture for the company? Currently, Community Health is a Zacks Rank #3 (Hold) in the Medical - Hospital industry that ranks in the Bottom 32% of our Zacks Industry Rank. Over the last 60 days, no analysts have increased their earnings estimates for the current quarter, while five analysts have revised their estimates downward. The net effect has taken our Zacks Consensus Estimate for the current quarter from 18 cents per share to 3 cents in that period.
Given the way analysts feel about Community Health 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 >>
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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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Community Health Systems, Inc. (CYH) : 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. | Investors in Community Health Systems, Inc. CYH need to pay close attention to the stock based on moves in the options market lately. 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. | Investors in Community Health Systems, Inc. CYH need to pay close attention to the stock based on moves in the options market lately. 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. Click to get this free report Community Health Systems, Inc. (CYH) : 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 about Community Health 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. Given the way analysts feel about Community Health right now, this huge implied volatility could mean there’s a trade developing. Looking to Trade Options? | 780f8474-3494-4e3d-bfef-a45c2644a521 |
710435.0 | 2023-12-16 21:00:00 UTC | Implied Volatility Surging for NCR Voyix (VYX) Stock Options | DCOMP | https://www.nasdaq.com/articles/implied-volatility-surging-for-ncr-voyix-vyx-stock-options | nan | nan | Investors in NCR Voyix Corporation VYX need to pay close attention to the stock based on moves in the options market lately. That is because the Jan 19, 2024 $13.00 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 NCR Voyix shares, but what is the fundamental picture for the company? Currently, NCR Voyix is a Zacks Rank #3 (Hold) in the Computer - Integrated Systems industry that ranks in the Top 37% of our Zacks Industry Rank. Over the last 30 days, the Zacks Consensus Estimate for the current quarter has moved from $1.02 per share to $1.04.
Given the way analysts feel about NCR Voyix 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.
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NCR Voyix Corporation (VYX) : 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. | Investors in NCR Voyix Corporation VYX need to pay close attention to the stock based on moves in the options market lately. 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. | Investors in NCR Voyix Corporation VYX need to pay close attention to the stock based on moves in the options market lately. 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. Click to get this free report NCR Voyix Corporation (VYX) : 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. Currently, NCR Voyix is a Zacks Rank #3 (Hold) in the Computer - Integrated Systems industry that ranks in the Top 37% of our Zacks Industry Rank. 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. Clearly, options traders are pricing in a big move for NCR Voyix shares, but what is the fundamental picture for the company? Given the way analysts feel about NCR Voyix right now, this huge implied volatility could mean there’s a trade developing. | 29e13eaf-ae4e-42d8-a8c1-e07c5e4cf4d0 |
710436.0 | 2023-12-16 21:00:00 UTC | Selling Covered Calls On The 2024 Dogs Of The Dow Stocks | DCOMP | https://www.nasdaq.com/articles/selling-covered-calls-on-the-2024-dogs-of-the-dow-stocks | nan | nan | The Dogs of the Dow is a long standing wall street strategy for investing in the stock market that involves purchasing the 10 highest yielding Dow Jones Industrial Average ($DOWI) (DIA) stocks. The DJIA is a stock market index that consists of 30 large publicly traded companies listed on the New York Stock Exchange and the NASDAQ 100 Index ($IUXX) (QQQ).
The Dogs of the Dow strategy is based on the idea that the high dividend yield of these stocks indicates that they may be undervalued by the market and are likely to outperform in the future. The strategy involves rebalancing the portfolio at the end of each year to ensure that it still includes the 10 highest yielding DJIA stocks.
The Dogs of the Dow strategy has been popular with investors as a way to potentially generate income and outperform the market. However, like all investment strategies, it carries risks and may not always be successful.
So, what are the 10 highest yielding stocks in the Dow right now? We can use the Stock Screener to find all the Dow stocks and include a column for Annual dividend yield.
Then for the results, we select Filter View and sort by Dividend Yield.
So our 10 Dogs of the Dow for 2023 are:
Walgreens (WBA)
Verizon (WBA)
3M Company (MMM)
Dow (DOW)
International Business Machines (IBM)
Chevron (CVX)
Coca-Cola Company (KO)
Amgen (AMGN)
Cisco (CSCO)
Johnson & Johnson (JNJ)
As shown in the above table, there are some very healthy dividend yields on offer. One way to further enhance this yield is by selling covered calls.
Some people like to sell monthly covered calls, but that can require ongoing maintenance and monitoring. Today, we’re going to look at a yearly covered call for those that like a more set and forget approach.
Walgreens Yearly Covered Call Example
Let’s use the first stock on the list, Walgreens, and look at an example.
Buying 100 shares of WBA would cost around $2,600. The January 17, 2025, call option with a strike price of $27.50 was trading yesterday for around $3.65, generating $365 in premium per contract for covered call sellers.
Selling the call option generates an income of 16.31% in 394 days, equalling around 15.07% annualized.
That assumes the stock stays exactly where it is. What if the stock rises above the strike price of $27.50?
If WBA closes above $27.50 on the expiration date, the shares will be called away at $27.50, leaving the trader with a total profit of $512 (gain on the shares plus the $365 option premium received). That equates to a 22.88% return, which is 21.14% on an annualized basis.
That doesn’t include dividends. WBA is estimate to pay around $1.92 in dividends over the next 12 months which would increase the income potential by 7.69% per annum.
Let’s look at another example using Intel.
Verizon Yearly Covered Call Example
Buying 100 shares of VZ would cost around $3,750. The January 17, 2025, call option with a strike price of $38 was trading yesterday for around $2.65, generating $265 in premium per contract for covered call sellers.
Selling the call option generates an income of 7.60% in 394 days, equalling around 7.03% annualized.
That assumes the stock stays exactly where it is. What if the stock rises above the strike price of $38?
If VZ closes above $38 on the expiration date, the shares will be called away at $38, leaving the trader with a total profit of $315 (gain on the shares plus the $265 option premium received). That equates to a 9.04% return, which is 8.35% on an annualized basis.
That doesn’t include dividends. VZ is estimate to pay around $2.62 in dividends over the next 12 months which would increase the income potential by 6.96% per annum.
Selling covered calls in 2024 on the Dogs of the Dow stocks, could be a great strategy for generating income and building long term wealth.
Please remember that options are risky, and investors can lose 100% of their investment. This article is for education purposes only and not a trade recommendation. Remember to always do your own due diligence and consult your financial advisor before making any investment decisions.
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Analysts Call This FAANG Stock a Top Pick for 2024
On the date of publication, Gavin McMaster did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The Dogs of the Dow strategy is based on the idea that the high dividend yield of these stocks indicates that they may be undervalued by the market and are likely to outperform in the future. Selling covered calls in 2024 on the Dogs of the Dow stocks, could be a great strategy for generating income and building long term wealth. Analysts Call This FAANG Stock a Top Pick for 2024 On the date of publication, Gavin McMaster did not have (either directly or indirectly) positions in any of the securities mentioned in this article. | The January 17, 2025, call option with a strike price of $27.50 was trading yesterday for around $3.65, generating $365 in premium per contract for covered call sellers. If WBA closes above $27.50 on the expiration date, the shares will be called away at $27.50, leaving the trader with a total profit of $512 (gain on the shares plus the $365 option premium received). The January 17, 2025, call option with a strike price of $38 was trading yesterday for around $2.65, generating $265 in premium per contract for covered call sellers. | The Dogs of the Dow is a long standing wall street strategy for investing in the stock market that involves purchasing the 10 highest yielding Dow Jones Industrial Average ($DOWI) (DIA) stocks. We can use the Stock Screener to find all the Dow stocks and include a column for Annual dividend yield. Selling covered calls in 2024 on the Dogs of the Dow stocks, could be a great strategy for generating income and building long term wealth. | The Dogs of the Dow strategy has been popular with investors as a way to potentially generate income and outperform the market. We can use the Stock Screener to find all the Dow stocks and include a column for Annual dividend yield. Verizon Yearly Covered Call Example Buying 100 shares of VZ would cost around $3,750. | fbd6b3b1-6fae-44e3-bfc7-ae66a2217c50 |
710437.0 | 2023-12-16 21:00:00 UTC | Are Options Traders Betting on a Big Move in Worthington Enterprises (WOR) Stock? | DCOMP | https://www.nasdaq.com/articles/are-options-traders-betting-on-a-big-move-in-worthington-enterprises-wor-stock | nan | nan | Investors in Worthington Enterprises, Inc. WOR need to pay close attention to the stock based on moves in the options market lately. That is because the Jan 19, 2024 $35.00 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 Worthington Enterprises’ shares, but what is the fundamental picture for the company? Currently, Worthington Enterprises is a Zacks Rank #3 (Hold) in the Diversified Operations industry that ranks in the Top 33% of our Zacks Industry Rank. Over the last 30 days, the Zacks Consensus Estimate for the current quarter has moved from 94 cents per share to 81 cents.
Given the way analysts feel about Worthington Enterprises 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
Worthington Enterprises, Inc. (WOR) : 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. | 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 Worthington Enterprises, Inc. (WOR) : 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. Currently, Worthington Enterprises is a Zacks Rank #3 (Hold) in the Diversified Operations industry that ranks in the Top 33% of our Zacks Industry Rank. 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. Clearly, options traders are pricing in a big move for Worthington Enterprises’ shares, but what is the fundamental picture for the company? Given the way analysts feel about Worthington Enterprises right now, this huge implied volatility could mean there’s a trade developing. | 9c6c71a5-16aa-419e-8398-03c7fe6b4453 |
710438.0 | 2023-12-16 21:00:00 UTC | GSK Inks License Deal With China's Hansoh Pharma For HS-20093; To Pay Up To $1.7 Bln | DCOMP | https://www.nasdaq.com/articles/gsk-inks-license-deal-with-chinas-hansoh-pharma-for-hs-20093-to-pay-up-to-%241.7-bln | nan | nan | (RTTNews) - GSK plc (GSK, GSK.L) and Chinese biopharmaceutical company Hansoh Pharma announced Wednesday that they have entered into an exclusive license agreement for HS-20093, a B7-H3 targeted antibody-drug conjugate (ADC) utilizing a clinically validated topoisomerase inhibitor (TOPOi) payload.
Under the agreement, GSK will obtain exclusive worldwide rights (excluding China's mainland, Hong Kong, Macau, and Taiwan) to progress clinical development and commercialization of HS-20093.
This agreement provides GSK with a second clinical-stage ADC that complements GSK's existing capabilities and strengths in developing medicines to address unmet medical needs in various solid tumors.
HS-20093 is currently being investigated in ongoing phase I and II trials in China. GSK plans to begin phase I trials for HS-20093 outside of China in 2024.
Under the terms of this agreement, GSK will pay $185 million upfront. In addition, Hansoh will be eligible to receive up to $1.525 billion in success-based milestones for HS-20093.
Upon commercialisation of HS-20093, GSK will pay tiered royalties on global net sales outside of China's mainland, Hong Kong, Macau, and Taiwan.
This agreement is subject to customary conditions, including applicable regulatory agency clearances under the Hart-Scott-Rodino Act in the US.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Under the agreement, GSK will obtain exclusive worldwide rights (excluding China's mainland, Hong Kong, Macau, and Taiwan) to progress clinical development and commercialization of HS-20093. Upon commercialisation of HS-20093, GSK will pay tiered royalties on global net sales outside of China's mainland, Hong Kong, Macau, and Taiwan. This agreement is subject to customary conditions, including applicable regulatory agency clearances under the Hart-Scott-Rodino Act in the US. | Under the agreement, GSK will obtain exclusive worldwide rights (excluding China's mainland, Hong Kong, Macau, and Taiwan) to progress clinical development and commercialization of HS-20093. Under the terms of this agreement, GSK will pay $185 million upfront. Upon commercialisation of HS-20093, GSK will pay tiered royalties on global net sales outside of China's mainland, Hong Kong, Macau, and Taiwan. | (RTTNews) - GSK plc (GSK, GSK.L) and Chinese biopharmaceutical company Hansoh Pharma announced Wednesday that they have entered into an exclusive license agreement for HS-20093, a B7-H3 targeted antibody-drug conjugate (ADC) utilizing a clinically validated topoisomerase inhibitor (TOPOi) payload. Under the agreement, GSK will obtain exclusive worldwide rights (excluding China's mainland, Hong Kong, Macau, and Taiwan) to progress clinical development and commercialization of HS-20093. This agreement provides GSK with a second clinical-stage ADC that complements GSK's existing capabilities and strengths in developing medicines to address unmet medical needs in various solid tumors. | (RTTNews) - GSK plc (GSK, GSK.L) and Chinese biopharmaceutical company Hansoh Pharma announced Wednesday that they have entered into an exclusive license agreement for HS-20093, a B7-H3 targeted antibody-drug conjugate (ADC) utilizing a clinically validated topoisomerase inhibitor (TOPOi) payload. This agreement provides GSK with a second clinical-stage ADC that complements GSK's existing capabilities and strengths in developing medicines to address unmet medical needs in various solid tumors. Upon commercialisation of HS-20093, GSK will pay tiered royalties on global net sales outside of China's mainland, Hong Kong, Macau, and Taiwan. | a84f88fc-67d7-4fac-9517-48e6e779715c |
710439.0 | 2023-12-16 21:00:00 UTC | Apple (AAPL) Tops $3T Milestone: More Upside Left for 2024? | DCOMP | https://www.nasdaq.com/articles/apple-aapl-tops-%243t-milestone%3A-more-upside-left-for-2024 | nan | nan | In December, Apple Inc. AAPL once again became a $3 trillion company for the first time in about four months. Apple’s shares have easily outperformed the broader S&P 500 so far this year (+51.5% versus +24.1%). Moreover, Apple’s shares are on track to register the best annual gains since 2020, when it soared 81%.
Image Source: Zacks Investment Research
However, 2023 hasn’t been smooth sailing for Apple as it has had to deal with a plethora of macroeconomic bottlenecks that adversely impacted spending patterns across the consumer tech sector. Foreign exchange headwinds, in particular, dragged Apple’s revenues during fiscal 2023, which ended in September.
But it’s also true that Apple’s revenues during the first half of fiscal 2023 declined 4% year over year, while it had fallen only 1% in the second half, a tell-tale sign that revenue trends are improving. To top it off, Samsung and Alphabet Inc.’s GOOGL smartphone shipments tanked more than Apple’s iPhone shipments in recent times, indicating the company’s dominance in the tech sector despite vulnerability to economic and geopolitical issues.
Most importantly, Apple is overshadowing recent challenges due to its loyal customer base. Apple’s devices are being used worldwide, and the company takes pride in having more than two billion active devices. CEO Luca Maestri, on the latestearnings call confirmed that users of Apple’s devices are growing at a nice pace, which should certainly boost the company’s profit margins soon.
Due to the immense brand loyalty that Apple relishes, its shares have been able to outdo its peers in the long run. For instance, over the past five-year period, shares of Apple have surged 422.3%, while shares of Microsoft Corporation MSFT, Amazon.com, Inc. AMZN, and Alphabet have gone up 279.9%, 122.8%, and 175.8%, respectively.
Image Source: Zacks Investment Research
Nonetheless, Apple is well-poised to outperform its competitors next year as well due to the strength of its services business. Apple, traditionally a hardware company, is now finding it difficult to come up with breakthrough innovations in its smartphones, tablets and various other devices.
However, Apple’s service division, which includes Apple Pay, subscriptions, and licensing fees, continues to provide a steady stream of income. An increase in transaction accounts, and recurring billing due to Apple’s large customer base is helping its revenues from services grow by leaps and bounds.
After the iPhone, Apple’s services business is at present becoming the highest-earnings segment. In reality, revenues from the services segment increased 9% year over year in fiscal 2023, while net iPhone sales dropped 2%. Therefore, it is not startling that Apple is currently placing a lot more priority on its digital offerings than product sales.
Apple’s services segment, by the way, is also well-unified with its hardware segment, which binds the customers to its ecosystem. This means that users are less likely to purchase non-Apple products, which eventually bodes well for the company.
Apple is also heavily investing in the artificial intelligence (AI) boom. AAPL is focusing on generative AI, and its outlays on AI-related research and development increased by more than $3 billion this year.
The AI market in itself is expected to explode, with Bloomberg Intelligence estimating the market to expand to $1.3 trillion in the next 10-year period from just $40 billion in 2022. Thus, it’s quite evident that Apple's initiative to venture into the AI field will benefit the organization immeasurably in the near future.
Thus, banking on dependable customers, strength in the services segment, and developments in the AI field, Apple’s expected earnings growth for next year increased by 8.2%. Its projected earnings growth rate for the next five-year period also surged 11%.
Apple’s net profit margin, meanwhile, is a solid 25.3%, and as a rule of thumb, above 20% is already a high margin. That means the company is in a position to generate enough profit from its sales, and its operational costs are under control. All these positives should certainly help Apple’s shares scale northward. Apple, presently, has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks 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.
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
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : 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. | Image Source: Zacks Investment Research However, 2023 hasn’t been smooth sailing for Apple as it has had to deal with a plethora of macroeconomic bottlenecks that adversely impacted spending patterns across the consumer tech sector. CEO Luca Maestri, on the latestearnings call confirmed that users of Apple’s devices are growing at a nice pace, which should certainly boost the company’s profit margins soon. An increase in transaction accounts, and recurring billing due to Apple’s large customer base is helping its revenues from services grow by leaps and bounds. | For instance, over the past five-year period, shares of Apple have surged 422.3%, while shares of Microsoft Corporation MSFT, Amazon.com, Inc. AMZN, and Alphabet have gone up 279.9%, 122.8%, and 175.8%, respectively. Thus, banking on dependable customers, strength in the services segment, and developments in the AI field, Apple’s expected earnings growth for next year increased by 8.2%. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. | Image Source: Zacks Investment Research Nonetheless, Apple is well-poised to outperform its competitors next year as well due to the strength of its services business. Thus, banking on dependable customers, strength in the services segment, and developments in the AI field, Apple’s expected earnings growth for next year increased by 8.2%. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. | In reality, revenues from the services segment increased 9% year over year in fiscal 2023, while net iPhone sales dropped 2%. Thus, banking on dependable customers, strength in the services segment, and developments in the AI field, Apple’s expected earnings growth for next year increased by 8.2%. Be First to New Top 10 Stocks >> Want the latest recommendations from Zacks Investment Research? | 5ef3fb53-adb7-43da-bded-d5937e318556 |
710440.0 | 2023-12-16 21:00:00 UTC | If You Invested $1000 in Williams-Sonoma a Decade Ago, This is How Much It'd Be Worth Now | DCOMP | https://www.nasdaq.com/articles/if-you-invested-%241000-in-williams-sonoma-a-decade-ago-this-is-how-much-itd-be-worth-now | nan | nan | For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in Williams-Sonoma (WSM) ten years ago? It may not have been easy to hold on to WSM for all that time, but if you did, how much would your investment be worth today?
Williams-Sonoma's Business In-Depth
With that in mind, let's take a look at Williams-Sonoma's main business drivers.
Headquartered in San Francisco, CA, Williams-Sonoma, Inc. is a multi-channel specialty retailer of premium quality home products. Incorporated in 1973, the company has five brands and each of the brands are operating segments.
Pottery Barn (accounting for 41% of fiscal 2022 total revenues) is the largest brand of the company and offers premium quality furniture, lighting, tabletop, outdoor and decorative accessories.
West Elm (26.3%) produces personalized products designed by the company’s team of artists and designers.
Williams-Sonoma (14.8%) offers cookware, tools, cutlery, electrics, tabletop and bar, outdoor, furniture and cookbooks.
Pottery Barn Kids and Teen (13.1%) deals with products used for putting up nurseries, bedrooms and play spaces. It also caters to the teenage population with furniture, bedding, lighting and decorative accents for teen bedrooms, dorm rooms, study spaces and lounges.
Other segment (4.8%) primarily consists of international franchise operations, Rejuvenation and Mark and Graham. Rejuvenation offers premium quality products which are inspired from history and are manufactured in facilities in Portland, OR. Mark and Graham is known for personalized gift items. The brand manufactures women’s and men’s accessories, home décor as well as seasonal items.
(Note: Zacks identifies fiscal years by the month in which the fiscal year ends, while WSM identifies their fiscal year by the calendar year in which it begins; so comparable figures for any given fiscal year, as published by WSM, will refer to this same fiscal year as being the year before the same year, as identified by Zacks).
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Williams-Sonoma, if you bought shares a decade ago, you're likely feeling really good about your investment today.
According to our calculations, a $1000 investment made in December 2013 would be worth $3,471.89, or a 247.19% gain, as of December 20, 2023. Investors should keep in mind that this return excludes dividends but includes price appreciation.
The S&P 500 rose 163.50% and the price of gold increased 64.72% over the same time frame in comparison.
Analysts are anticipating more upside for WSM.
Shares of Williams-Sonoma have outperformed its industry in the past three months. It’s third-quarter fiscal 2023 earnings and net sales declined year over year. The quarterly results reflect low contributions from the company’s reportable brands driven by ongoing softness witnessed in consumer discretionary spending, especially on furniture. Also, elevated levels of promotional activity and current macroeconomic uncertainties were added woes. That said, margins grew from the previous year on the back of a solid operating model, which partially offset the above-mentioned headwinds through its full-price selling, supply-chain efficiencies and top-tier customer service. Impressively, the company now expects its operating margin to be 16-16.5% for fiscal 2023, up from 15-16% expected earlier.
Shares have gained 12.93% over the past four weeks and there have been 9 higher earnings estimate revisions for fiscal 2024 compared to none lower. The consensus estimate has moved up as well.
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Williams-Sonoma, Inc. (WSM) : 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. | Pottery Barn (accounting for 41% of fiscal 2022 total revenues) is the largest brand of the company and offers premium quality furniture, lighting, tabletop, outdoor and decorative accessories. The quarterly results reflect low contributions from the company’s reportable brands driven by ongoing softness witnessed in consumer discretionary spending, especially on furniture. That said, margins grew from the previous year on the back of a solid operating model, which partially offset the above-mentioned headwinds through its full-price selling, supply-chain efficiencies and top-tier customer service. | Pottery Barn (accounting for 41% of fiscal 2022 total revenues) is the largest brand of the company and offers premium quality furniture, lighting, tabletop, outdoor and decorative accessories. (Note: Zacks identifies fiscal years by the month in which the fiscal year ends, while WSM identifies their fiscal year by the calendar year in which it begins; so comparable figures for any given fiscal year, as published by WSM, will refer to this same fiscal year as being the year before the same year, as identified by Zacks). Click to get this free report Williams-Sonoma, Inc. (WSM) : Free Stock Analysis Report To read this article on Zacks.com click here. | What if you'd invested in Williams-Sonoma (WSM) ten years ago? Pottery Barn (accounting for 41% of fiscal 2022 total revenues) is the largest brand of the company and offers premium quality furniture, lighting, tabletop, outdoor and decorative accessories. (Note: Zacks identifies fiscal years by the month in which the fiscal year ends, while WSM identifies their fiscal year by the calendar year in which it begins; so comparable figures for any given fiscal year, as published by WSM, will refer to this same fiscal year as being the year before the same year, as identified by Zacks). | What if you'd invested in Williams-Sonoma (WSM) ten years ago? It may not have been easy to hold on to WSM for all that time, but if you did, how much would your investment be worth today? Pottery Barn (accounting for 41% of fiscal 2022 total revenues) is the largest brand of the company and offers premium quality furniture, lighting, tabletop, outdoor and decorative accessories. | d3bc2c37-b743-4cb4-aeb5-f3816f87e1ba |
710441.0 | 2023-12-16 21:00:00 UTC | Implied Volatility Surging for Everi Holdings (EVRI) Stock Options | DCOMP | https://www.nasdaq.com/articles/implied-volatility-surging-for-everi-holdings-evri-stock-options | nan | nan | Investors in Everi Holdings Inc. EVRI need to pay close attention to the stock based on moves in the options market lately. That is because the Jan 19, 2024 $5.00 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 Everi Holdings shares, but what is the fundamental picture for the company? Currently, Everi Holdings is a Zacks Rank #3 (Hold) in the Business - Services industry that ranks in the Top 35% of our Zacks Industry Rank. Over the last 60 days, no analysts have increased their earnings estimates for the current quarter, while one analyst has revised the estimate downward. The net effect has taken our Zacks Consensus Estimate for the current quarter from 40 cents per share to 22 cents in that period.
Given the way analysts feel about Everi Holdings 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.
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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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Everi Holdings Inc. (EVRI) : 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. Currently, Everi Holdings is a Zacks Rank #3 (Hold) in the Business - Services industry that ranks in the Top 35% of our Zacks Industry Rank. Click to get this free report Everi Holdings Inc. (EVRI) : 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. Currently, Everi Holdings is a Zacks Rank #3 (Hold) in the Business - Services industry that ranks in the Top 35% of our Zacks Industry Rank. Given the way analysts feel about Everi Holdings right now, this huge implied volatility could mean there’s a trade developing. | 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 about Everi Holdings right now, this huge implied volatility could mean there’s a trade developing. Looking to Trade Options? | 23980e19-987b-4655-aac6-5c72a225699d |
710442.0 | 2023-12-16 21:00:00 UTC | Is It Time to Buy the S&P 500's 4 Worst-Performing Stocks This Year? | DCOMP | https://www.nasdaq.com/articles/is-it-time-to-buy-the-sp-500s-4-worst-performing-stocks-this-year-1 | nan | nan | Many investors understandably want to buy stocks that have already gone down by a lot. It seems logical that underperforming stocks are due for a rebound. But it's important to note that this doesn't always happen.
Look at the worst four stocks for the S&P 500 in 2022: Generac Holdings, Match Group, Align Technology, and Tesla. Match Group stock was down 69% in 2022, but it's still down another 18% in 2023, as the chart below shows.
GNRC data by YCharts
While Match stock is down, the others have performed better. Shares of Align and Generac are performing roughly in line with the market, and Tesla stock has been a huge winner. If investors had started the year with an equally weighted portfolio of these four stocks, they would have crushed it in 2023.
The point I'm making, however, is that stocks can drop more even after they've had a bad year. Therefore, investors can't just pile into the losers of 2023 expecting good things in 2024. They still need to be choosy with their investments.
As of this writing, the four worst S&P 500 stocks in 2023 are Enphase Energy (NASDAQ: ENPH), FMC Corporation (NYSE: FMC), Moderna (NASDAQ: MRNA), and Dollar General (NYSE: DG). (SolarEdge would have made this list, but it was removed from the S&P 500 index this month because of how far it's fallen.)
The drops for these four stocks are particularly painful this year because the S&P 500 is having a great year overall. The chart below shows just how wide the performance gap is.
^SPX data by YCharts
Having looked at all this important context, I can now turn my attention to handling these four companies on an individual basis.
1. Enphase Energy
With products that aid the adoption of solar power, Enphase's business is riding a powerful trend higher. Trailing 12-month revenue is up more than 750% over the last five years.
However, Enphase only expects to generate $325 million in revenue in the upcoming fourth quarter at the midpoint of its guidance. This would represent a year-over-year drop of over 50% -- its largest year-over-year pullback by far.
Given the high cost of adopting solar, this market can be driven by interest rates -- people take out loans to get solar panels. But with rates higher, solar projects are slowing down. The risk for Enphase would be that demand for its microinverters and batteries evaporates further, forcing it to lower prices to stimulate demand. Lower prices would lower profitability.
However, there's more to Enphase than meets the eye. Management expects the big drop in revenue in Q4 because it's intentionally not building up inventory in certain markets where demand is weak. Preemptively lowering inventory can actually be a margin-preserving move, which would bode well for the business.
Assuming its current headwinds are just from normal cyclicality in solar, Enphase could be in a great position to rebound when demand picks back up. Whether demand will pick back up in 2024, however, is another matter entirely.
2. FMC
FMC calls itself an agricultural sciences company, selling pesticides, fertilizers, and more around the world. With a growing world population, the need for these products is only increasing. However, like Enphase, FMC is working through some (hopefully) temporary challenges related to elevated inventory.
For full-year 2023, FMC expects about a 21% drop in revenue compared to 2022. Adjusted profitability is expected to nose-dive by almost 50%. In an investor presentation, CEO Mark Douglas said: "The crop protection market is working through the most severe channel destock ever on record."
Looking further ahead, FMC's management doesn't anticipate lasting issues. For 2023, it expects revenue of $4.72 billion, at most. But by 2026, the company believes it can generate revenue of $5.5 billion to $6.0 billion as it moves past the current de-stocking headwinds.
As of this writing, FMC stock trades at about 1.5 times its trailing sales. That's a steep discount to its 10-year average valuation of 2.7 times sales. Therefore, it's easy to see upside for this stock as its outlook improves and its valuation normalizes.
3. Moderna
Moderna went from about $50 million in revenue to over $22 billion in revenue in just two years. Its vaccine for treating the coronavirus catapulted this company into the limelight and into the S&P 500. But as we move further past the pandemic's height, the company's revenue stream is starting to go down.
It was only logical that Moderna's revenue would pull back. The company expects sales of $6 billion in 2023 and only $4 billion in 2024 -- a far cry from its peak. It's also unprofitable now with a year-to-date net loss of $4.9 billion.
Moderna has a net loss because it's gearing up for act two, and three, and four, and so on. The company is spending heavily on research and development and has a whopping 15 new drugs in development.
Profitability will be hard to come by for Moderna until it gets another hit drug. But the good news is that it's well-capitalized in the meantime. And even though it's currently burning cash, management still anticipates having $6 billion to $7 billion in cash in 2025.
Moderna is probably the most speculative turnaround play for 2024 of these four stocks -- investing in biotech stocks can be hard. That said, it could have the most long-term upside, depending on how many drugs are approved and how long it takes to get them across the approval finish line.
4. Dollar General
Finally, I've arrived at Dollar General, which I believe has the best chance of any of these four stocks to outperform the market average in 2024.
Two foundational facts underpin my Dollar General investment thesis here. First, Dollar General's revenue is at an all-time high. Second, with a price-to-sales ratio of 0.7, its valuation is within spitting distance of its lowest ever. In other words, business is good but the stock has never been cheaper. That's a good combo for investors today.
DG Revenue (TTM) data by YCharts
That said, Dollar General does have problems. But the problems are operational and consequently fixable. Overstocked inventory is leading to markdowns, theft, and damaged goods. All three hurt profits. Accordingly, diluted earnings per share through the first three quarters of 2023 were down almost 26% from the comparable period of 2022.
Aware of its issues and having returned Todd Vasos back to his CEO position, Dollar General is in a solid position to have its profit margins bounce back, which should lead to a recovery in the stock price. It's already bounced back about 26% from its low in 2023. But 2024 could see more upside as it corrects its inventory problem.
Should you invest $1,000 in Dollar General right now?
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Jon Quast has positions in Dollar General. The Motley Fool has positions in and recommends Align Technology, Enphase Energy, Match Group, and Tesla. The Motley Fool recommends Moderna and SolarEdge 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. | Shares of Align and Generac are performing roughly in line with the market, and Tesla stock has been a huge winner. Assuming its current headwinds are just from normal cyclicality in solar, Enphase could be in a great position to rebound when demand picks back up. In an investor presentation, CEO Mark Douglas said: "The crop protection market is working through the most severe channel destock ever on record." | As of this writing, the four worst S&P 500 stocks in 2023 are Enphase Energy (NASDAQ: ENPH), FMC Corporation (NYSE: FMC), Moderna (NASDAQ: MRNA), and Dollar General (NYSE: DG). Before you buy stock in Dollar General, 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 Dollar General wasn't one of them. The Motley Fool has positions in and recommends Align Technology, Enphase Energy, Match Group, and Tesla. | As of this writing, the four worst S&P 500 stocks in 2023 are Enphase Energy (NASDAQ: ENPH), FMC Corporation (NYSE: FMC), Moderna (NASDAQ: MRNA), and Dollar General (NYSE: DG). Aware of its issues and having returned Todd Vasos back to his CEO position, Dollar General is in a solid position to have its profit margins bounce back, which should lead to a recovery in the stock price. Before you buy stock in Dollar General, 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 Dollar General wasn't one of them. | Moderna Moderna went from about $50 million in revenue to over $22 billion in revenue in just two years. Profitability will be hard to come by for Moderna until it gets another hit drug. Before you buy stock in Dollar General, 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 Dollar General wasn't one of them. | 105784c4-f15a-49e9-a522-77165c3bc3dc |
710443.0 | 2023-12-16 21:00:00 UTC | Buy 5 Manufacturing Stocks Despite Disappointing November PMI | DCOMP | https://www.nasdaq.com/articles/buy-5-manufacturing-stocks-despite-disappointing-november-pmi | nan | nan | The U.S. manufacturing sector contracted for the 13th consecutive month in November, following a 28-months of growth. The Institute of Supply Management (ISM) reported that the reading for U.S. manufacturing PMI (purchasing managers’ index) came in at 46.7, in line with the previous month. However, the data was below the consensus estimate of 48.1.
Notably, any reading below 50 indicates a contraction in manufacturing activities. Moreover, major subindexes have contracted. The New Orders Index remained in contraction territory at 48.3%, 2.8% higher than the 45.5% recorded in October. The Production Index reading of 48.5% reflects a 1.9% decrease compared to October’s figure of 50.4%.
However, there are some positive developments too. While supply-chain disruptions persist, especially related to the availability of electronic components, the situation has improved, as evident from the ISM report’s Supplier Deliveries Index. The metric for November was 46.2, 1 5% lower than October’s metric of 47.7.
The industry participants are focused on an acquisition-based growth strategy to expand their network and product offerings. This helps their foray into new markets and solidifies their competitive position. Exposure to various end markets helps industrial manufacturing companies offset risks associated with a single market.
Our Top Picks
We have narrowed our search to five manufacturing stocks with strong potential for 2024. These stocks have seen positive earnings estimate revisions in the last 60 days. Moreover, these companies are regular dividend payers. Finally, each of our picks carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The chart below shows the price performance of our five picks in the past three months.
Image Source: Zacks Investment Research
Emerson Electric Co. EMR has been benefiting from healthy demand across end markets. Strong demand across the process and hybrid markets are driving EMR’s underlying sales. The successive deals to acquire Afag and Flexim spark optimism. Emerson Electric’s $8.2 billion deal to acquire National Instruments holds promise. EMR’s bullish guidance for fiscal 2023 is encouraging.
Emerson Electric has an expected revenue and earnings growth rate of 14.1% and 19.1%, respectively, for the current year (ending September 2024). The Zacks Consensus Estimate for current-year earnings has improved 2.5% over the last 30 days. EMR has a current dividend yield of 2.20%.
A. O. Smith Corp. AOS 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, as well as energy-efficient solutions and products, which are developed and sold on a global platform.
Improving supply chains and robust demand for commercial and residential boilers and water treatment products in North America have benefitted AOS. Higher sales from India support the Rest of the World unit’s performance amid weakness in China.
A.O. Smith has an expected revenue and earnings growth rate of 3.4% and 6%, respectively, for next year. The Zacks Consensus Estimate for next-year earnings has improved 3.1% over the last 60 days. AOS has a current dividend yield of 1.62%.
Xylem Inc. XYL has been benefiting from strength across the utilities and industrial water applications end markets, strong industrial demand and improving supply chains. Strong price realization and backlog execution in the U.S. and emerging markets are driving the Applied Water segment.
Synergies from the Evoqua acquisition bolster XYL’s growth. Amid a healthy demand environment and to include contributions from the Evoqua buyout, XYL has raised its 2023 guidance.
Xylem has an expected revenue and earnings growth rate of 15.2% and 8.6%, respectively, for next year. The Zacks Consensus Estimate for next-year earnings has improved 1% over the last 30 days. XYL has a current dividend yield of 1.19%.
Eaton Corp. plc ETN will benefit from improving end-market conditions and contribution from its organic assets which will assist it in retaining a strong market position. ETN is expanding via strategic acquisitions and its rising backlog shows strong demand for its products. ETN’s strategy to manufacture in the zone of sale has helped it to cut costs.
Eaton has an expected revenue and earnings growth rate of 6.9% and 10.5%, respectively, for next year. The Zacks Consensus Estimate for next-year earnings has improved 2.6% over the last 60 days. ETN has a current dividend yield of 1.45%.
Amcor plc’s AMCR volumes are bearing the brunt of weak consumer demand in the inflationary environment along with customer destocking. AMCR expects this situation to persist in the first half of fiscal 2024 and thus expects volumes to be lower for the period. As the situation normalizes in the second half, volumes are expected to pick up.
AMCR’s pricing actions and cost-saving initiatives undertaken will help negate the impact of low volumes on its results. AMCR’s investments to expand capacity in high-value segments like healthcare, protein, pet food, premium coffee and hot-fill beverage containers, and a focus on innovation and sustainable packaging are likely to drive growth.
Amcor has an expected revenue and earnings growth rate of 3.2% and 6.4%, respectively, for next year (ending June 2025). The Zacks Consensus Estimate for next-year earnings has improved 0.1% over the last 60 days. AMCR has a current dividend yield of 5.21%.
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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Emerson Electric Co. (EMR) : Free Stock Analysis Report
Eaton Corporation, PLC (ETN) : Free Stock Analysis Report
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Xylem Inc. (XYL) : Free Stock Analysis Report
Amcor PLC (AMCR) : 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. | While supply-chain disruptions persist, especially related to the availability of electronic components, the situation has improved, as evident from the ISM report’s Supplier Deliveries Index. Improving supply chains and robust demand for commercial and residential boilers and water treatment products in North America have benefitted AOS. AMCR’s investments to expand capacity in high-value segments like healthcare, protein, pet food, premium coffee and hot-fill beverage containers, and a focus on innovation and sustainable packaging are likely to drive growth. | Image Source: Zacks Investment Research Emerson Electric Co. EMR has been benefiting from healthy demand across end markets. Xylem Inc. XYL has been benefiting from strength across the utilities and industrial water applications end markets, strong industrial demand and improving supply chains. Click to get this free report Emerson Electric Co. (EMR) : Free Stock Analysis Report Eaton Corporation, PLC (ETN) : Free Stock Analysis Report A. O. Smith Corporation (AOS) : Free Stock Analysis Report Xylem Inc. (XYL) : Free Stock Analysis Report Amcor PLC (AMCR) : Free Stock Analysis Report To read this article on Zacks.com click here. | Emerson Electric has an expected revenue and earnings growth rate of 14.1% and 19.1%, respectively, for the current year (ending September 2024). Xylem Inc. XYL has been benefiting from strength across the utilities and industrial water applications end markets, strong industrial demand and improving supply chains. Click to get this free report Emerson Electric Co. (EMR) : Free Stock Analysis Report Eaton Corporation, PLC (ETN) : Free Stock Analysis Report A. O. Smith Corporation (AOS) : Free Stock Analysis Report Xylem Inc. (XYL) : Free Stock Analysis Report Amcor PLC (AMCR) : Free Stock Analysis Report To read this article on Zacks.com click here. | Image Source: Zacks Investment Research Emerson Electric Co. EMR has been benefiting from healthy demand across end markets. Xylem Inc. XYL has been benefiting from strength across the utilities and industrial water applications end markets, strong industrial demand and improving supply chains. AMCR expects this situation to persist in the first half of fiscal 2024 and thus expects volumes to be lower for the period. | 85224c5b-320d-48e7-853f-a3852a66a23a |
710444.0 | 2023-12-16 21:00:00 UTC | Time for Snap-Heavy ETFs? | DCOMP | https://www.nasdaq.com/articles/time-for-snap-heavy-etfs | nan | nan | Snap Inc. SNAP’s stock price is hovering around its highest level in over a year following a bullish report from Wells Fargo analysts initiated in early December, as quoted on CNBC. Overall, SNAP gained 6.9% last week. Snap's stock has surged by nearly 44% past month and 91% year-to-date. The Wells Fargo analysts attributed this impressive performance to Snap's strategic changes in product development and leadership.
Analyst Upgrade and Price Target Increase
The analysts at Wells Fargo upgraded Snap's stock from "equal weight" to "overweight" and raised their price target from $8 to $22. At the close of the market on Monday, Snap was trading at around $15.75, marking its highest price since July 2022. According to the analysts, the social media company's advertising performance has shown positive momentum for the first time since April 2021, as indicated in a note published on Dec 10.
Improved Competitive Position in Advertising
The analysts also noted that recent changes implemented by Snap have significantly narrowed the gap in its ad product offerings compared to other audience platforms. They wrote, "We believe changes made over the past several months have meaningfully narrowed Snap’s ad product gap relative to other audience platforms."
Impact of Recent Changes
Snap has made strategic hires from industry rivals Google and Meta to help revamp its ad business, which the analysts highlighted in their note. They expressed confidence that these changes will contribute to strengthening Snap's financial performance, stating, "We see meaningful gross margin improvement in 2024 and beyond," and they forecast a 65% gross margin by 2027.
Earnings Report Boost
The surge in Snap's stock price follows the release of the company's third-quarter earnings report in October, which temporarily drove shares up by as much as 20%. CEO Evan Spiegel attributed the positive performance to the company's cost-cutting measures and "positive growth." Snap reported $1.19 billion in revenue, surpassing Wall Street's estimates of $1.11 billion, according to LSEG (formerly known as Refinitiv).
Future Focus on Advertising Platform
Spiegel emphasized Snap's commitment to enhancing its advertising platform to provide higher returns on investment for its advertising partners. The company has also evolved its go-to-market efforts to better support partners and achieve customer success, as outlined in the earnings report.
Earnings Estimate Revision
One out of six analysts boosted the earnings estimate for the next quarter in the past one month. Most Accurate Estimate for March quarter earnings is now a loss of a penny, marking a 62.50% improvement from Zacks Consensus Estimate. Notably, SNAP has witnessed an average four-quarter earnings surprise of 110%.
Time for Snap-Heavy ETFs?
Against this backdrop, below we highlight a few ETFs that are heavy on Snap.
Global X Social Media ETF SOCL – Snap has 7.37% weight
Fidelity Disruptive Communications ETF FDCF – Snap has 7.16% weight
ProShares On-Demand ETF OND – Snap has 6.81% weight
Global X Metaverse ETF VR – Snap has 5.93% weight
SPDR S&P Internet ETF XWEB – Snap has 5.84% weight
(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.)
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Global X Metaverse ETF (VR): ETF Research Reports
Global X Social Media ETF (SOCL): ETF Research Reports
SPDR S&P Internet ETF (XWEB): ETF Research Reports
Snap Inc. (SNAP) : Free Stock Analysis Report
ProShares On-Demand ETF (OND): ETF Research Reports
Fidelity Disruptive Communications ETF (FDCF): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | According to the analysts, the social media company's advertising performance has shown positive momentum for the first time since April 2021, as indicated in a note published on Dec 10. Improved Competitive Position in Advertising The analysts also noted that recent changes implemented by Snap have significantly narrowed the gap in its ad product offerings compared to other audience platforms. Impact of Recent Changes Snap has made strategic hires from industry rivals Google and Meta to help revamp its ad business, which the analysts highlighted in their note. | Analyst Upgrade and Price Target Increase The analysts at Wells Fargo upgraded Snap's stock from "equal weight" to "overweight" and raised their price target from $8 to $22. Global X Social Media ETF SOCL – Snap has 7.37% weight Fidelity Disruptive Communications ETF FDCF – Snap has 7.16% weight ProShares On-Demand ETF OND – Snap has 6.81% weight Global X Metaverse ETF VR – Snap has 5.93% weight SPDR S&P Internet ETF XWEB – Snap has 5.84% weight (Disclaimer: This article has been written with the assistance of Generative AI. Click to get this free report Global X Metaverse ETF (VR): ETF Research Reports Global X Social Media ETF (SOCL): ETF Research Reports SPDR S&P Internet ETF (XWEB): ETF Research Reports Snap Inc. (SNAP) : Free Stock Analysis Report ProShares On-Demand ETF (OND): ETF Research Reports Fidelity Disruptive Communications ETF (FDCF): ETF Research Reports To read this article on Zacks.com click here. | Snap Inc. SNAP’s stock price is hovering around its highest level in over a year following a bullish report from Wells Fargo analysts initiated in early December, as quoted on CNBC. Global X Social Media ETF SOCL – Snap has 7.37% weight Fidelity Disruptive Communications ETF FDCF – Snap has 7.16% weight ProShares On-Demand ETF OND – Snap has 6.81% weight Global X Metaverse ETF VR – Snap has 5.93% weight SPDR S&P Internet ETF XWEB – Snap has 5.84% weight (Disclaimer: This article has been written with the assistance of Generative AI. Click to get this free report Global X Metaverse ETF (VR): ETF Research Reports Global X Social Media ETF (SOCL): ETF Research Reports SPDR S&P Internet ETF (XWEB): ETF Research Reports Snap Inc. (SNAP) : Free Stock Analysis Report ProShares On-Demand ETF (OND): ETF Research Reports Fidelity Disruptive Communications ETF (FDCF): ETF Research Reports To read this article on Zacks.com click here. | Earnings Report Boost The surge in Snap's stock price follows the release of the company's third-quarter earnings report in October, which temporarily drove shares up by as much as 20%. Earnings Estimate Revision One out of six analysts boosted the earnings estimate for the next quarter in the past one month. Click to get this free report Global X Metaverse ETF (VR): ETF Research Reports Global X Social Media ETF (SOCL): ETF Research Reports SPDR S&P Internet ETF (XWEB): ETF Research Reports Snap Inc. (SNAP) : Free Stock Analysis Report ProShares On-Demand ETF (OND): ETF Research Reports Fidelity Disruptive Communications ETF (FDCF): ETF Research Reports To read this article on Zacks.com click here. | fb212c3b-5194-4dc6-bbba-f0d860c523c2 |
710445.0 | 2023-12-16 21:00:00 UTC | Here's How Much a $1000 Investment in S&P Global Made 10 Years Ago Would Be Worth Today | DCOMP | https://www.nasdaq.com/articles/heres-how-much-a-%241000-investment-in-sp-global-made-10-years-ago-would-be-worth-today-1 | nan | nan | For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in S&P Global (SPGI) ten years ago? It may not have been easy to hold on to SPGI for all that time, but if you did, how much would your investment be worth today?
S&P Global's Business In-Depth
With that in mind, let's take a look at S&P Global's main business drivers. Incorporated in December 1925, S&P Global Inc. is a leading provider of transparent and independent ratings, benchmarks, analytics and data to the capital and commodity markets worldwide.
The company operates through six reportable segments: S&P Global Market Intelligence (“Market Intelligence”), S&P Global Ratings (“Ratings"), S&P Global Commodity Insights (“Commodity Insights”), S&P Global Mobility (“Mobility”), S&P Dow Jones Indices (“Indices”) and S&P Global Engineering Solutions (“Engineering Solutions”).
Ratings (27% of total revenues in 2022): Ratings operates as an independent provider of credit ratings, research and analytics, providing investors and other market participants with information, ratings and benchmarks. With offices in more than 25 countries globally, Ratings holds an important position in the world's financial infrastructure. Ratings’ revenues are differentiated between transaction and non-transaction revenues.
Market Intelligence (34%): It helps investment professionals, government agencies, corporations and universities to track performance, generate alpha, identify investment ideas, understand competitive and industry dynamics, perform evaluations and assess credit risk. Desktop, Data Management Solutions and Risk Services are the business lines included in the segment.
Commodity Insights (15%): Commodity Insights provides information and benchmark prices for commodity and energy markets. It helps producers, traders, energy and commodity market intermediaries with price data, analytics and industry insights, thereby enhancing transparency and efficiency in the market.
Indices (12%): Indices is a global index provider that maintains a wide variety of valuation and index benchmarks for investment advisors, wealth managers and institutional investors. Indices mainly derives revenues from asset-linked fees based on the S&P and Dow Jones indices and also from subscription and transaction revenues.
Mobility (10%) & Engineering Solutions (3%) which were acquired as a result of the IHS Markit buyout, serves two different sections of customers. Mobility serves vehicle manufacturers, automotive suppliers, mobility service providers, retailers, consumers, and finance and insurance companies while Engineering Solutions serves technical professionals.
Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in S&P Global a decade ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in December 2013 would be worth $5,915.20, or a 491.52% gain, as of December 20, 2023. Investors should keep in mind that this return excludes dividends but includes price appreciation.
Compare this to the S&P 500's rally of 163.50% and gold's return of 64.72% over the same time frame.
Analysts are anticipating more upside for SPGI.
S&P Global remains well-poised to gain from the growing demand for business information services. Buyouts help innovate, increase differentiated content and develop new products. New service launches have been aiding the company's growth. Dividend payments and share buybacks boost investors' confidence and positively impact earnings per share. Increasing current ratio bodes well for the company. Partly due to these positives, the stock has gained in the past year. However, S&P Global remains vulnerable to proceedings, investigations and inquiries concerning the ratings provided, leading to legal charges, damages or fines. Growth initiatives, higher compensations and incentives raise the company's expenses. More long-term debt than cash does not bode well for the company.
Shares have gained 5.53% over the past four weeks and there have been 11 higher earnings estimate revisions for fiscal 2023 compared to none lower. The consensus estimate has moved up as well.
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
S&P Global Inc. (SPGI) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Incorporated in December 1925, S&P Global Inc. is a leading provider of transparent and independent ratings, benchmarks, analytics and data to the capital and commodity markets worldwide. However, S&P Global remains vulnerable to proceedings, investigations and inquiries concerning the ratings provided, leading to legal charges, damages or fines. 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 company operates through six reportable segments: S&P Global Market Intelligence (“Market Intelligence”), S&P Global Ratings (“Ratings"), S&P Global Commodity Insights (“Commodity Insights”), S&P Global Mobility (“Mobility”), S&P Dow Jones Indices (“Indices”) and S&P Global Engineering Solutions (“Engineering Solutions”). Ratings (27% of total revenues in 2022): Ratings operates as an independent provider of credit ratings, research and analytics, providing investors and other market participants with information, ratings and benchmarks. Commodity Insights (15%): Commodity Insights provides information and benchmark prices for commodity and energy markets. | The company operates through six reportable segments: S&P Global Market Intelligence (“Market Intelligence”), S&P Global Ratings (“Ratings"), S&P Global Commodity Insights (“Commodity Insights”), S&P Global Mobility (“Mobility”), S&P Dow Jones Indices (“Indices”) and S&P Global Engineering Solutions (“Engineering Solutions”). Ratings (27% of total revenues in 2022): Ratings operates as an independent provider of credit ratings, research and analytics, providing investors and other market participants with information, ratings and benchmarks. Market Intelligence (34%): It helps investment professionals, government agencies, corporations and universities to track performance, generate alpha, identify investment ideas, understand competitive and industry dynamics, perform evaluations and assess credit risk. | It may not have been easy to hold on to SPGI for all that time, but if you did, how much would your investment be worth today? The company operates through six reportable segments: S&P Global Market Intelligence (“Market Intelligence”), S&P Global Ratings (“Ratings"), S&P Global Commodity Insights (“Commodity Insights”), S&P Global Mobility (“Mobility”), S&P Dow Jones Indices (“Indices”) and S&P Global Engineering Solutions (“Engineering Solutions”). Be First to New Top 10 Stocks >> Want the latest recommendations from Zacks Investment Research? | 87fce252-360f-43f6-9c04-2acc2a39e15d |
710446.0 | 2023-12-16 21:00:00 UTC | 4 Stocks to Watch From the Prospering Technology Solutions Industry | DCOMP | https://www.nasdaq.com/articles/4-stocks-to-watch-from-the-prospering-technology-solutions-industry | nan | nan | Players in the Zacks Computer – Integrated Systems industry, including International Business Machines IBM, Hewlett Packard Enterprise HPE, Agilysys AGYS and PAR Technology PAR, are benefiting from a rise in advanced forms of data management, the rapid shift from traditional silos, increased demand for the integration of deployment techniques and modern application development. However, industry participants are grappling with lingering supply-chain bottlenecks. A challenging macroeconomic landscape, with rising inflation and higher interest rates, is also a concern. Soaring prices and delays in customer acceptance have resulted in high levels of backlog and cast a pall on the industry’s prospects.
Industry Description
The Zacks Computer – Integrated Systems industry comprises companies that provide advanced information technology solutions, including computer systems, software, storage systems and microelectronics. These industry players are increasing investments in data modernization and analytics, cyber defense, remote work, automation and contact-less services, customer & employee experience and supply-chain modernization, which accelerate growth in digital transformation services. Some industry participants also provide technological solutions (both products and services) to help organizations connect, interact and transact with customers. Others develop and market information recognition, data entry software, systems and technologies.
4 Computer - Integrated Systems Industry Trends in Focus
Integrated Solutions Driving Demand: The industry is benefiting from rising demand for integrated solutions across small, medium and large-scale enterprises, as well as increasing investments in IoT, big data, AI and blockchain software technologies. Moreover, business analytics, cloud computing, mobile and security and social businesses present significant opportunities to an increasing number of remote workers in the wake of the coronavirus-induced work-from-home wave. The industry players are anticipated to benefit from recovering global IT spending, as predicted by Gartner.
Solid Adoption of Multi-Cloud Model: The growing adoption of the multi-cloud model to achieve better scalability and attain improved resource utilization is expanding the scope of industry participants. Cloud and hardware/software virtual technologies are anticipated to impact the industry favorably. As growth and investment opportunities in developed countries continue to slow down, we believe that emerging economies will play a crucial role in the days ahead.
Supply-Chain Bottlenecks and Backlogs: Industry participants are witnessing supply constraints, softness in server demand and cognitive applications, as well as delays in customer acceptance. These are resulting in consistent backlog levels, particularly in Compute, High Performance Computing & Mass Storage Class and Storage. Moreover, volatility in foreign exchange — primarily due to the current macroeconomic scenario and headwinds in emerging markets — does not bode well for the industry.
Semiconductor Chip Shortage Mars Prospects: Industry participants are facing challenges stemming from the ongoing and time-consuming business model transition to the cloud. Further, lower spending across Data-Center Systems — primarily due to component shortages like memory and CPUs, as well as deceleration in hyperscale spending — is likely to dampen the prospects of industry participants.
Zacks Industry Rank Indicates Bright Prospects
The Zacks Computer – Integrated Systems industry is housed within the broader Zacks Computer and Technology sector. It carries a Zacks Industry Rank #86, which places it in the top 34% of more than 250 Zacks industries.
The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates outperformance in the near term. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one.
The industry’s position in the top 50% of the Zacks-ranked industries is a result of a positive earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are optimistic about this group’s earnings growth potential.
Before we present a few stocks that you may want to consider for your portfolio, let’s take a look at the industry’s recent stock-market performance and valuation picture.
Industry Lags Sector and S&P 500
The Zacks Computer – Integrated Systems industry has underperformed the broader Computer and Technology sector and Zacks S&P 500 composite over the past year.
The industry has returned 11% over this period compared with the S&P 500 and the broader Computer and Technology sector’s respective returns of 22.8% and 47.4%.
One-Year Price Performance
Industry's Current Valuation
On the basis of the trailing 12-month P/S, which is a commonly used multiple for valuing computer-integrated systems stocks, we see that the industry is currently trading at 1.76X compared with the S&P 500’s 3.97X. It is also below the sector’s trailing 12-month P/S of 4.61X.
Over the past five years, the industry has traded as high as 2.15X and as low as 1.14X, with the median being at 1.56X, as the chart below shows.
Trailing 12-Month Price-to-Sales (P/S) Ratio
4 Computer-Integrated Systems Providers to Watch
PAR Technology: This Zacks Rank #2 (Buy) company designs, develops, manufactures, markets, installs and services microprocessor-based transaction processing systems for the restaurant and industrial marketplaces, including Corneal Topography systems for measuring the true topography of the eye and vision inspection systems for the food-processing industry (Commercial Segment). PAR is also engaged in the design and implementation of advanced-technology computer software systems for the Department of Defense and other government agencies. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
PAR has attained a position of market leadership among cloud-based restaurant management Software as a Service providers. The company’s software business, Brink, is growing very quickly, and its restaurant cloud-based Point of Sale software is deployed over multi-brands at more than 1,000 restaurants.
The Zacks Consensus Estimate for the company’s 2023 loss has widened from $1.05 per share to a loss of $1.43 per share over the past 30 days. PAR shares have gained 70.4% year to date.
Price & Consensus: PAR
International Business Machines: This Zacks Rank #3 (Hold) company is witnessing solid net sales growth in the software segment driven by healthy hybrid cloud adoption and solid demand trends across RedHat, automation, data in AI and security.
A strong foundation of research and innovation, a broad portfolio that caters to various industry requirements and a diverseglobal marketpresence set it apart from its competitors.
Synergies from the Red Hat buyout are boosting its competitive position in the hybrid cloud market. The company is likely to benefit from the robust adoption and broad-based availability of IBM Blockchain World Wire, a blockchain-driven global payments network aimed at accelerating and optimizing cross-border payments.
IBM is poised to gain from the spin-off of the legacy infrastructure services business as it focuses on a hybrid cloud strategy. However, declining trends in the infrastructure vertical are hurting its top line. Intense competition from other established players like Amazon, Microsoft and Google in cloud services is exerting pressure on margins.
The Zacks Consensus Estimate for its 2023 earnings has remained steady at $9.45 per share in the past 60 days. IBM shares have gained 14.7% year to date.
Price & Consensus: IBM
Hewlett Packard Enterprise: The company is benefiting from strong executions in clearing backlogs and increased customer acceptance.
HPE’s multi-billion-dollar investment plan across expanding networking capabilities will help diversify business from server and hardware storage markets and boost margins over the long run. Also, easing supply-chain challenges will help it clear backlogs rapidly.
Hewlett Packard views AI, the Industrial Internet of Things and distributed computing as the next major markets.
HPE’s efforts to shift focus to higher-margin offerings like Intelligent Edge and Aruba Central Hyperconverged Infrastructure are aiding the bottom line.
However, organizations are pushing back their investments in big and expensive technology products due to global economic slowdown concerns, which can undermine this Zacks Rank #3 company’s near-term prospects.
The Zacks Consensus Estimate for 2023 earnings has moved south by 4.5% to $1.93 per share in the past 60 days. HPE shares have gained 5.5% year to date.
Price & Consensus: HPE
Agilysys: The company is benefiting from steady demand for cloud-native products and supporting software modules, an end-to-end array of software solutions and world-class customer service.
Agilysys operates as a developer and marketer of hardware and software products as well as services, with special expertise in select vertical markets, including retail and hospitality in North America, Europe, the Asia-Pacific and India.
This Zacks Rank #3 company’s expertise in enterprise architecture and high availability, infrastructure optimization, storage and resource management and business continuity is a major growth driver.
The Zacks Consensus Estimate for its fiscal 2024 earnings has remained steady at 88 cents per share in the past 60 days. Shares of AGYS have declined 9.9% year to date.
Price & Consensus: AGYS
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
International Business Machines Corporation (IBM) : Free Stock Analysis Report
PAR Technology Corporation (PAR) : Free Stock Analysis Report
Agilysys, Inc. (AGYS) : Free Stock Analysis Report
Hewlett Packard Enterprise Company (HPE) : 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. | HPE’s multi-billion-dollar investment plan across expanding networking capabilities will help diversify business from server and hardware storage markets and boost margins over the long run. However, organizations are pushing back their investments in big and expensive technology products due to global economic slowdown concerns, which can undermine this Zacks Rank #3 company’s near-term prospects. This Zacks Rank #3 company’s expertise in enterprise architecture and high availability, infrastructure optimization, storage and resource management and business continuity is a major growth driver. | Players in the Zacks Computer – Integrated Systems industry, including International Business Machines IBM, Hewlett Packard Enterprise HPE, Agilysys AGYS and PAR Technology PAR, are benefiting from a rise in advanced forms of data management, the rapid shift from traditional silos, increased demand for the integration of deployment techniques and modern application development. Price & Consensus: PAR International Business Machines: This Zacks Rank #3 (Hold) company is witnessing solid net sales growth in the software segment driven by healthy hybrid cloud adoption and solid demand trends across RedHat, automation, data in AI and security. Click to get this free report International Business Machines Corporation (IBM) : Free Stock Analysis Report PAR Technology Corporation (PAR) : Free Stock Analysis Report Agilysys, Inc. (AGYS) : Free Stock Analysis Report Hewlett Packard Enterprise Company (HPE) : Free Stock Analysis Report To read this article on Zacks.com click here. | Industry Description The Zacks Computer – Integrated Systems industry comprises companies that provide advanced information technology solutions, including computer systems, software, storage systems and microelectronics. Zacks Industry Rank Indicates Bright Prospects The Zacks Computer – Integrated Systems industry is housed within the broader Zacks Computer and Technology sector. Trailing 12-Month Price-to-Sales (P/S) Ratio 4 Computer-Integrated Systems Providers to Watch PAR Technology: This Zacks Rank #2 (Buy) company designs, develops, manufactures, markets, installs and services microprocessor-based transaction processing systems for the restaurant and industrial marketplaces, including Corneal Topography systems for measuring the true topography of the eye and vision inspection systems for the food-processing industry (Commercial Segment). | Players in the Zacks Computer – Integrated Systems industry, including International Business Machines IBM, Hewlett Packard Enterprise HPE, Agilysys AGYS and PAR Technology PAR, are benefiting from a rise in advanced forms of data management, the rapid shift from traditional silos, increased demand for the integration of deployment techniques and modern application development. Zacks Industry Rank Indicates Bright Prospects The Zacks Computer – Integrated Systems industry is housed within the broader Zacks Computer and Technology sector. 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%. | 196b0273-f7b6-4e10-9f18-6ad046c6cc90 |
710447.0 | 2023-12-16 21:00:00 UTC | Beacon Roofing Supply and America's Car-Mart have been highlighted as Zacks Bull and Bear of the Day | DCOMP | https://www.nasdaq.com/articles/beacon-roofing-supply-and-americas-car-mart-have-been-highlighted-as-zacks-bull-and-bear | nan | nan | For Immediate Release
Chicago, IL – December 20, 2023 – Zacks Equity Research shares Beacon Roofing Supply BECN as the Bull of the Day and America’s Car-Mart CRMT as the Bear of the Day. In addition, Zacks Equity Research provides analysis on JPMorgan JPM, Bank of America BAC and Citigroup C.
Here is a synopsis of all five stocks.
Bull of the Day:
Beacon Roofing Supply, a Zacks Rank #1 (Strong Buy), is engaged in the distribution of roofing materials in the United States and Canada. BECN shares are widely outperforming the market this year and appear poised to continue that trend in 2024. The stock looks primed to break out of a multi-month consolidation pattern, touching a new 52-week high during yesterday’s trading session. Renewed volume has attracted investor attention as buying pressure accumulates in this top-ranked stock.
BECN is part of the Zacks Building Products – Retail industry group, which currently ranks in the top 37% out of more than 250 Zacks Ranked Industries. Because it is ranked in the top half of all Zacks Ranked Industries, we expect this group to outperform the market over the next 3 to 6 months.
Historical research studies suggest that approximately half of a stock’s price appreciation is due to its industry grouping. In fact, the top 50% of Zacks Ranked Industries outperforms the bottom 50% by a factor of more than 2 to 1. It’s no secret that investing in stocks that are part of leading industry groups can give us a leg up relative to the market. By focusing on leading stocks within the top 50% of Zacks Ranked Industries, we can dramatically improve our stock-picking success.
Company Description
Beacon Roofing Supply provides residential and non-residential roofing materials and building products to contractors, homebuilders, building owners, lumberyards, and retailers. The company offers a variety of solutions such as pitched and low-slope roofing, gutters and siding, HVAC, and commercial insulation products. BECN also provides building materials such as lumber and composite, plywood, decking and railing, skylights, and windows.
In addition, Beacon Roofing supplies waterproofing products and vapor barriers, as well as tools and equipment such as ladders, power tools, nails, screws, drill bits, and saw blades. The company was founded in 1928 and is headquartered in Herndon, Virginia.
Earnings Trends and Future Estimates
The roofing supplier has put together an impressive earnings history, surpassing earnings estimates in three of the last four quarters. Back in November, the company reported third-quarter earnings of $2.85/share, a 12.2% surprise over the $2.54/share consensus estimate. Beacon Roofing Supply has delivered a trailing four-quarter average earnings surprise of 11.1%.
BECN shares have received a boost as analysts covering the company have been increasing their Q4 earnings estimates lately. For the fourth quarter, earnings estimates have risen 16.08% in the past 60 days. The Q4 Zacks Consensus EPS Estimate now stands at $1.66/share, reflecting a potential growth rate of 36.07% relative to the year-ago period.
Let’s Get Technical
BECN shares have advanced more than 60% this year. Only stocks that are in extremely powerful uptrends are able to experience this type of outperformance. This is the kind of stock we want to include in our portfolio – one that is trending well and receiving positive earnings estimate revisions.
Notice how both the 50-day (blue line) and 200-day (red line) moving averages are sloping up. The stock has been making a series of higher highs, widely outperforming the major indices. With positive fundamental and technical indicators, BECN stock is poised to continue its outperformance.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. As we know, Beacon Roofing Supply has recently witnessed positive revisions. As long as this trend remains intact (and BECN continues to deliver earnings beats), the stock will likely continue its bullish run into the end of this year and beyond.
Bottom Line
Beacon Roofing Supply is ranked favorably by our Zacks Style Scores with top marks across our Growth, Value, and Momentum categories. This indicates that further upside is likely based on a combination of favorable earnings and sales metrics, as well as valuation and price performance.
Backed by a top industry group and impressive history of earnings beats, it’s not difficult to see why this company is a compelling investment. Robust fundamentals combined with an appealing technical trend certainly justify adding shares to the mix. The future looks bright for this highly-ranked, leading stock.
Bear of the Day:
America’s Car-Mart operates automotive dealerships in the United States. The company primarily sells used vehicles while providing financing for its customers. The auto retailer focuses on the Buy Here/Pay Here segment of the used car market. America’s Car-Mart operates its dealerships in small cities and rural locations, mainly in the South-Central region of the country.
The Zacks Rundown
America’s Car-Mart, a Zacks Rank #5 (Strong Sell), is a component of the Zacks Automotive – Retail and Whole Sales industry group. This industry ranks in the bottom 13% out of more than 250 Zacks Ranked Industries. As such, we expect this industry group as a whole to underperform the market over the next 3 to 6 months.
Candidates in the bottom tiers of industries can often be potential candidates for short positions. While individual stocks have the ability to outperform even when included in a lackluster industry group, the inclusion in a weaker group serves as a headwind for any potential rallies and the journey forward is that much more difficult.
Despite a rebound in stocks this year, CRMT shares have not been participating lately. The stock has experienced considerable volatility over the past year. CRMT hit a 52-week low earlier this month, all while the general market nears new highs.
Recent Earnings Misses and Deteriorating Outlook
CRMT has fallen short of earnings estimates in each of the last four quarters. The company most recently reported a fiscal second-quarter loss earlier in December of -$4.30/share, missing the $0.74/share consensus EPS estimate by a whopping -681.08%.
America’s Car-Mart has posted a trailing four-quarter average earnings miss of -210.38%. Consistently falling short of earnings estimates is a recipe for underperformance, and CRMT is no exception.
The company has been on the receiving end of negative earnings estimate revisions as of late. The current quarter’s outlook has been slashed by -222.73% in the past 60 days. The fiscal Q3 Zack Consensus Estimate stands at -$1.08/share, reflecting negative earnings growth of -569.57% relative to the year-ago period.
Falling earnings estimates are a huge red flag and need to be respected. Negative growth year-over-year is the type of trend that bears like to see.
Technical Outlook
As illustrated below, CRMT stock is in a sustained downtrend. Notice how shares have plunged below both the 50-day and 200-day moving averages signaled by the blue and red lines, respectively. The stock is making a series of lower lows, and a recent uptick presents a compelling short opportunity. Also note how both moving averages have rolled over and are sloping down – another good sign for the bears.
CRMT stock has also experienced what is known as a ‘death cross’, wherein the stock’s 50-day moving average crosses below its 200-day moving average. America’s Car-Mart would have to make a surprising move to the upside and show increasing earnings estimate revisions to warrant taking any long positions in the stock. CRMT shares have fallen more than 23% in the past 6 months alone, all while the major indexes have shown strength.
Final Thoughts
A deteriorating fundamental and technical backdrop show that this stock is not set to hit new highs anytime soon. The fact that CRMT stock is included in one of the worst-performing industry groups provides yet another headwind to a long list of concerns. A history of earnings misses and falling future earnings estimates will likely serve as a ceiling to any potential rallies, nurturing the stock’s downtrend.
Highlighted underperformance bodes well for the bears. Potential investors may want to consider including this stock as part of a short or hedge strategy. Bulls will want to steer clear of CRMT shares until the situation shows major signs of improvement.
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Is JPMorgan (JPM) Likely to Impress in 2024, Too?
JPMorgan’s shares have rallied 24% this year, significantly outperforming the industry’s rise of 10.2% and the Zacks Finance sector growth of 14.1%. This also marks a turnaround from dismal 2022 performance, wherein the stock lost 15.3%.
So, what led to the reversal?
This year started on a positive note on the back of the Federal Reserve’s monetary tightening to control ‘sticky’ inflation. Nonetheless, the early March regional banking crisis that led to the fall of three large banks because of deposit flight to higher-yielding investment options was a wake-up call for banks and regulators alike.
The ultra-aggressive pace of rate hikes turned counterproductive for banks that generally perform well in the higher interest rate regime. Though big banks weathered this turmoil better than their smaller regional peers, they, too, faced pressure from rising deposit and funding costs. This, thus, adversely impacted net interest income (NII) and margins.
The bright spot from the crisis for JPMorgan was it acquired First Republic Bank, the third large bank to collapse in 2023, for $10.6 billion. It must be noted that JPM is not permitted to buy another bank because of its size and scale. But this time, these factors helped the company secure the deal.
Following the transaction, JPMorgan’s balance sheet has swelled to almost $3.9 trillion. The deal resulted in increased penetration within the high-net-worth clients and added prime locations in wealthy markets. Recently, at an investor conference call, top management noted that they were able to retain 90% of FRC clients and the integration process is on track.
While the current higher rate environment is hurting other big banks like Bank of America and Citigroup, JPMorgan (driven by the FRC deal) witnessed robust improvement in NII. In the nine months ended Sep 30, 2023, the company’s NII jumped 40% to $65.2 billion. BAC recorded a 14% rise in NII and the metric for C grew 16% in the same time frame.
Additionally, JPMorgan kept on raising its 2023 NII guidance. Now, the company expects NII to be roughly $88.5 billion, driven by higher rates and slower-than-expected deposit repricing across both consumers and wholesale. Earlier, the company had guided NII to be $87 billion for this year.
Nevertheless, this Zacks Rank #3 (Hold) company believes that the current NII run rate is not sustained as competition for deposits and annual NII is estimated to be near $80 billion over the medium term. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Though the latest Summary of Economic Projections doesn’t indicate a recession for the U.S. economy, the growth rate will slow down to 1.4% in 2024. For 2023, the U.S. economy is anticipated to grow 2.6%. Thus, the demand for loans is expected to remain moderate over the next year. This, along with the central bank signaling 75 basis points cut in interest rates in 2024, the company’s NII is not expected to improve much.
JPMorgan is heavily investing in technology, spending more than $12 billion annually. Thus, its expenses keep on mounting. The company’s non-interest expenses witnessed a five-year (ended 2022) compound annual growth rate (CAGR) of 5.3%. Further, the First Republic acquisition is expected to result in $2 billion of post-tax restructuring charges to be incurred this year and in 2024. For 2023, management anticipates adjusted expenses to be approximately $84 billion (including integration-related charges) amid inflationary pressure.
Though some green shoots are visible in the investment banking (IB) business, IB fees are less likely to improve soon. This, along with the volatile nature of the capital markets business and high mortgage rates, will likely hamper JPMorgan’s fee income growth. In the first three quarters of 2023, the metric grew just 14%.
Thus, slowing NII growth, challenging fee income growth and elevated expenses are worrisome.
Yet, one should keep this banking behemoth on the radar due to its scale and leverage in terms of its huge branch network and presence in 48 of 50 states in the United States over other big banks like Bank of America and Citigroup.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index.Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Bank of America Corporation (BAC) : Free Stock Analysis Report
JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report
Citigroup Inc. (C) : Free Stock Analysis Report
Beacon Roofing Supply, Inc. (BECN) : Free Stock Analysis Report
America's Car-Mart, Inc. (CRMT) : 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. | In addition, Zacks Equity Research provides analysis on JPMorgan JPM, Bank of America BAC and Citigroup C. Here is a synopsis of all five stocks. Bottom Line Beacon Roofing Supply is ranked favorably by our Zacks Style Scores with top marks across our Growth, Value, and Momentum categories. America’s Car-Mart would have to make a surprising move to the upside and show increasing earnings estimate revisions to warrant taking any long positions in the stock. | For Immediate Release Chicago, IL – December 20, 2023 – Zacks Equity Research shares Beacon Roofing Supply BECN as the Bull of the Day and America’s Car-Mart CRMT as the Bear of the Day. In addition, Zacks Equity Research provides analysis on JPMorgan JPM, Bank of America BAC and Citigroup C. Here is a synopsis of all five stocks. Click to get this free report Bank of America Corporation (BAC) : Free Stock Analysis Report JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report Citigroup Inc. (C) : Free Stock Analysis Report Beacon Roofing Supply, Inc. (BECN) : Free Stock Analysis Report America's Car-Mart, Inc. (CRMT) : Free Stock Analysis Report To read this article on Zacks.com click here. | BECN is part of the Zacks Building Products – Retail industry group, which currently ranks in the top 37% out of more than 250 Zacks Ranked Industries. The Zacks Rundown America’s Car-Mart, a Zacks Rank #5 (Strong Sell), is a component of the Zacks Automotive – Retail and Whole Sales industry group. Click to get this free report Bank of America Corporation (BAC) : Free Stock Analysis Report JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report Citigroup Inc. (C) : Free Stock Analysis Report Beacon Roofing Supply, Inc. (BECN) : Free Stock Analysis Report America's Car-Mart, Inc. (CRMT) : Free Stock Analysis Report To read this article on Zacks.com click here. | BECN is part of the Zacks Building Products – Retail industry group, which currently ranks in the top 37% out of more than 250 Zacks Ranked Industries. Recent Earnings Misses and Deteriorating Outlook CRMT has fallen short of earnings estimates in each of the last four quarters. While the current higher rate environment is hurting other big banks like Bank of America and Citigroup, JPMorgan (driven by the FRC deal) witnessed robust improvement in NII. | 14a3e91b-1751-4e53-8031-c36758db0b0e |
710448.0 | 2023-12-16 21:00:00 UTC | Argenx's market cap takes $6.3 bln hit after failed drug study | DCOMP | https://www.nasdaq.com/articles/argenxs-market-cap-takes-%246.3-bln-hit-after-failed-drug-study | nan | nan | Adds analyst comment in paragraph 7 and updates share move in paragraph 2
Dec 20 (Reuters) - Shares in argenx ARGX.BR fell as much as 34% in Brussels on Wednesday after its autoimmune drug failed a study testing it in patients with two skin conditions, marking the treatment's second straight clinical setback in less than a month.
By 1235 GMT, the stock was down 23.8% and was on track to erase about 5.8 billion euros ($6.3 billion) from the company's market value. The slump dragged Belgium's blue-chip BEL20 .BFX index down more than 2.5%.
Shares of rival Immunovant IMVT.Ofell about 11% to $37 after the trial failure. Immunovant is also developing an under-the-skin injection to potentially treat autoimmune diseases.
The two common types of the disorder cause blisters on skin and mucous membranes, with pemphigus vulgaris being painful but not itchy, while the other being more itchy than painful.
The drug, also known as efgartigimod, recently failed to meet the main and secondary goals of another study, testing it in patients with a blood disease called immune thrombocytopenia.
"Following two phase 3 failures in a row, the question now is what's next for argenx and efgartigimod?" Stifel analyst Alex Thompson wrote in a note.
($1 = 0.9145 euros)
(Reporting by Danilo Masoni in Milan and Pratik Jain in Bengaluru; Editing by Anil D'Silva)
((Danilo.Masoni@TR.com; Reuters Messaging: danilo.masoni.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. | Adds analyst comment in paragraph 7 and updates share move in paragraph 2 Dec 20 (Reuters) - Shares in argenx ARGX.BR fell as much as 34% in Brussels on Wednesday after its autoimmune drug failed a study testing it in patients with two skin conditions, marking the treatment's second straight clinical setback in less than a month. The drug, also known as efgartigimod, recently failed to meet the main and secondary goals of another study, testing it in patients with a blood disease called immune thrombocytopenia. ($1 = 0.9145 euros) (Reporting by Danilo Masoni in Milan and Pratik Jain in Bengaluru; Editing by Anil D'Silva) ((Danilo.Masoni@TR.com; Reuters Messaging: danilo.masoni.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. | Adds analyst comment in paragraph 7 and updates share move in paragraph 2 Dec 20 (Reuters) - Shares in argenx ARGX.BR fell as much as 34% in Brussels on Wednesday after its autoimmune drug failed a study testing it in patients with two skin conditions, marking the treatment's second straight clinical setback in less than a month. By 1235 GMT, the stock was down 23.8% and was on track to erase about 5.8 billion euros ($6.3 billion) from the company's market value. Immunovant is also developing an under-the-skin injection to potentially treat autoimmune diseases. | Adds analyst comment in paragraph 7 and updates share move in paragraph 2 Dec 20 (Reuters) - Shares in argenx ARGX.BR fell as much as 34% in Brussels on Wednesday after its autoimmune drug failed a study testing it in patients with two skin conditions, marking the treatment's second straight clinical setback in less than a month. The drug, also known as efgartigimod, recently failed to meet the main and secondary goals of another study, testing it in patients with a blood disease called immune thrombocytopenia. ($1 = 0.9145 euros) (Reporting by Danilo Masoni in Milan and Pratik Jain in Bengaluru; Editing by Anil D'Silva) ((Danilo.Masoni@TR.com; Reuters Messaging: danilo.masoni.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. | Adds analyst comment in paragraph 7 and updates share move in paragraph 2 Dec 20 (Reuters) - Shares in argenx ARGX.BR fell as much as 34% in Brussels on Wednesday after its autoimmune drug failed a study testing it in patients with two skin conditions, marking the treatment's second straight clinical setback in less than a month. By 1235 GMT, the stock was down 23.8% and was on track to erase about 5.8 billion euros ($6.3 billion) from the company's market value. Shares of rival Immunovant IMVT.Ofell about 11% to $37 after the trial failure. | a0ff192c-f844-4cb4-9e9d-c96577570b90 |
710449.0 | 2023-12-16 21:00:00 UTC | Pre-Market Most Active for Dec 20, 2023 : SQQQ, NIO, TQQQ, RIVN, UBS, IQ, TSLA, TLT, UBER, SMFG, PLTR, NOK | DCOMP | https://www.nasdaq.com/articles/pre-market-most-active-for-dec-20-2023-%3A-sqqq-nio-tqqq-rivn-ubs-iq-tsla-tlt-uber-smfg-pltr | nan | nan | The NASDAQ 100 Pre-Market Indicator is down -46.62 to 16,765.23. The total Pre-Market volume is currently 60,406,382 shares traded.
The following are the most active stocks for the pre-market session:
ProShares UltraPro Short QQQ (SQQQ) is +0.0929 at $13.55, with 2,776,623 shares traded., following a 52-week high recorded in prior regular session.
NIO Inc. (NIO) is -0.07 at $8.75, with 1,838,401 shares traded. NIO's current last sale is 84.13% of the target price of $10.4.
ProShares UltraPro QQQ (TQQQ) is -0.3466 at $50.45, with 1,725,476 shares traded., following a 52-week high recorded in prior regular session.
Rivian Automotive, Inc. (RIVN) is -0.1494 at $24.20, with 1,118,250 shares traded. As reported by Zacks, the current mean recommendation for RIVN is in the "buy range".
UBS AG (UBS) is -0.25 at $30.46, with 1,021,431 shares traded., following a 52-week high recorded in prior regular session.
iQIYI, Inc. (IQ) is -0.09 at $4.61, with 918,496 shares traded. As reported by Zacks, the current mean recommendation for IQ is in the "buy range".
Tesla, Inc. (TSLA) is -0.3431 at $256.88, with 918,337 shares traded. TSLA's current last sale is 102.75% of the target price of $250.
iShares 20+ Year Treasury Bond ETF (TLT) is +0.47 at $99.36, with 908,988 shares traded. This represents a 20.55% increase from its 52 Week Low.
Uber Technologies, Inc. (UBER) is -0.6201 at $61.50, with 836,462 shares traded. As reported by Zacks, the current mean recommendation for UBER is in the "buy range".
Sumitomo Mitsui Financial Group Inc (SMFG) is +0.0223 at $9.26, with 632,110 shares traded. SMFG's current last sale is 91.71% of the target price of $10.1.
Palantir Technologies Inc. (PLTR) is -0.09 at $17.86, with 532,079 shares traded. PLTR's current last sale is 111.63% of the target price of $16.
Nokia Corporation (NOK) is unchanged at $3.31, with 484,414 shares traded. NOK's current last sale is 78.9% of the target price of $4.195.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | ProShares UltraPro Short QQQ (SQQQ) is +0.0929 at $13.55, with 2,776,623 shares traded., following a 52-week high recorded in prior regular session. ProShares UltraPro QQQ (TQQQ) is -0.3466 at $50.45, with 1,725,476 shares traded., following a 52-week high recorded in prior regular session. iShares 20+ Year Treasury Bond ETF (TLT) is +0.47 at $99.36, with 908,988 shares traded. | ProShares UltraPro Short QQQ (SQQQ) is +0.0929 at $13.55, with 2,776,623 shares traded., following a 52-week high recorded in prior regular session. ProShares UltraPro QQQ (TQQQ) is -0.3466 at $50.45, with 1,725,476 shares traded., following a 52-week high recorded in prior regular session. UBS AG (UBS) is -0.25 at $30.46, with 1,021,431 shares traded., following a 52-week high recorded in prior regular session. | The total Pre-Market volume is currently 60,406,382 shares traded. NIO Inc. (NIO) is -0.07 at $8.75, with 1,838,401 shares traded. Uber Technologies, Inc. (UBER) is -0.6201 at $61.50, with 836,462 shares traded. | The NASDAQ 100 Pre-Market Indicator is down -46.62 to 16,765.23. NIO's current last sale is 84.13% of the target price of $10.4. TSLA's current last sale is 102.75% of the target price of $250. | 3c778393-f25f-424f-8c3b-1c2f2ce107b8 |
710450.0 | 2023-12-16 21:00:00 UTC | Patrick Industries (PATK) Surges 5.7%: Is This an Indication of Further Gains? | DCOMP | https://www.nasdaq.com/articles/patrick-industries-patk-surges-5.7%3A-is-this-an-indication-of-further-gains | nan | nan | Patrick Industries (PATK) shares rallied 5.7% in the last trading session to close at $98.96. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 9.6% gain over the past four weeks.
The price surge can be attributed to the Federal Reserve's recent decision to maintain a steady interest level. The Federal Open Market Committee (FOMC) decided to maintain the interest rates at a 22-year high of 5.25-5.5%. The central bank also hinted at three interest rate cuts by the end of 2024. This is a relief for the housing and related industries.
This building products manufacturer is expected to post quarterly earnings of $1.39 per share in its upcoming report, which represents a year-over-year change of -23.6%. Revenues are expected to be $780 million, down 18.1% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Patrick Industries, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on PATK going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Patrick Industries is a member of the Zacks Building Products - Mobile Homes and RV Builders industry. One other stock in the same industry, Skyline (SKY), finished the last trading session 2.7% higher at $73.95. SKY has returned 20.2% over the past month.
For Skyline, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.70. This represents a change of -51.4% from what the company reported a year ago. Skyline currently has a Zacks Rank of #4 (Sell).
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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Patrick Industries, Inc. (PATK) : Free Stock Analysis Report
Skyline Corporation (SKY) : 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 price surge can be attributed to the Federal Reserve's recent decision to maintain a steady interest level. This building products manufacturer is expected to post quarterly earnings of $1.39 per share in its upcoming report, which represents a year-over-year change of -23.6%. 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%. | You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Patrick Industries is a member of the Zacks Building Products - Mobile Homes and RV Builders industry. For Skyline, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.70. Click to get this free report Patrick Industries, Inc. (PATK) : Free Stock Analysis Report Skyline Corporation (SKY) : Free Stock Analysis Report To read this article on Zacks.com click here. | While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Patrick Industries is a member of the Zacks Building Products - Mobile Homes and RV Builders industry. Click to get this free report Patrick Industries, Inc. (PATK) : Free Stock Analysis Report Skyline Corporation (SKY) : Free Stock Analysis Report To read this article on Zacks.com click here. | You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Patrick Industries is a member of the Zacks Building Products - Mobile Homes and RV Builders industry. One other stock in the same industry, Skyline (SKY), finished the last trading session 2.7% higher at $73.95. For Skyline, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.70. | 5a608282-0a97-477d-8b3c-cc7a6200f070 |
710451.0 | 2023-12-16 21:00:00 UTC | 3 Stocks to Buy if They Take a Dip | DCOMP | https://www.nasdaq.com/articles/3-stocks-to-buy-if-they-take-a-dip-12 | nan | nan | Many investors may have missed the boat on great stocks that have charged higher this year. The recent market rally has focused on high-quality companies, driving some valuations into uncertain territory. These three stocks are primed for long-term performance, and investors should take a look if their valuations dip into a more reasonable range.
1. Veeva Systems
Veeva Systems (NYSE: VEEV) is a leading cloud software platform for the life sciences industry. Its products are used by more than 1,000 customers of all sizes in the pharmaceutical, biotechnology, diagnostics, and related businesses. The cloud platform supports a wide range of critical functions, including sales, customer communications, drug development, clinical trial management, and regulatory compliance.
Image source: Getty Images.
The quality and breadth of Veeva's product portfolio, along with high switching costs, make it very difficult for competitors to take market share in this niche. The focus on a highly specialized industry also provides Veeva with an advantage over more generalized potential competitors, such as SAP (NYSE: SAP), Oracle (NYSE: ORCL) or Salesforce (NYSE: CRM). These factors create a wide economic moat for Veeva Systems, which should support future growth and profit margin stability.
The business fundamentals look great, but the cloud software stock's valuation isn't so enticing. Its forward price-to-earnings (P/E) ratio is just under 44, but Veeva's growth rate doesn't seem to support that price. The company's sales grew 12% last quarter although earnings outpaced the top line.
The company's recent results have been impacted by a change in the company's contract terms and revenue recognition. That change is expected to reduce the top line by roughly 4% this year -- that's meaningful but not transformative. Veeva's guidance for next year suggests that growth should stay roughly where it is now after adjusting for that revenue recognition change.
There's nothing wrong with a 15% to 20% annual growth rate, but the forward P/E ratio looks a bit high relative to that number, especially if we consider that the company's sales have been slowing for a few years. The market price assumes that things will pick up as the macro environment improves and Veeva enters lucrative new markets. That sort of speculation comes with risk.
It's hard to knock the company's operational performance -- the stock's valuation just needs to reflect the evolving trajectory. If its forward P/E ratio dropped into the 35 range, then it would create some major upside potential and take some of the risk off the table.
2. ServiceNow
ServiceNow (NYSE: NOW) provides cloud-based IT workflow management software. It helps customers identify and address issues and track these processes across the organization.
The company's platform is heavily embedded among enterprises – roughly 85% of the S&P 500 are customers, and it has roughly 40% market share. Like Veeva systems, ServiceNow covers a variety of critical functions that come with high switching costs. This causes customers to stick around, and the company has consistently expanded customer relationships by beefing up its offering.
ServiceNow is growing at roughly 25% annually, and it's producing a ton of cash along the way. The company expects to produce more than $2.5 billion in free cash flow this year on $8.6 billion of revenue. ServiceNow has repeatedly exceeded Wall Street's expectations and its own forecasts.
These all make for a compelling investment narrative, but that's created a risk-reward imbalance. The stock is up nearly 80% year to date, driving its forward P/E ratio close to 60. That's not an outrageous premium for a company with ServiceNow's prospects, but the stock would be very hard to ignore if its valuation came down a bit.
3. CrowdStrike
CrowdStrike (NASDAQ: CRWD) is an endpoint cybersecurity leader that's ranked among the best-in-class for its offering. The company's economic moat is hard to confirm, thanks to a highly competitive, rapidly evolving, and heavily fragmented industry. However, CrowdStrike is consistently taking market share while adding functionality to its platform. The company is also delivering consistently high revenue retention, indicating strong customer satisfaction and a "sticky" product that's difficult for customers to cast aside.
CrowdStrike reported impressive 35% revenue growth last quarter. Perhaps more importantly, the company swung into profitability while producing nearly $800 million of free cash flow for the full fiscal year. That's admirable performance in a difficult economic environment, and it shows that company management is able to drive operational efficiency without sacrificing too much growth potential.
That said, CrowdStrike's growth rate is steadily declining as the company's scale inflates and it penetrates its target market. Demand should stay robust in the long term for endpoint security, but it's getting more challenging for CrowdStrike to replicate its excellent results year after year.
CRWD Revenue (Quarterly YOY Growth) data by YCharts.
The cybersecurity stock's forward P/E ratio is over 60 now that the stock has rallied throughout 2023. That results in a price/earnings-to-growth ratio below 2.0, which suggests that it's reasonably priced relative to its growth rate. However, that assumes continued strong performance, which creates investment risk.
If CrowdStrike stock dips due to short-term uncertainty or weaker-than-expected results, this could become a great long-term opportunity for patient growth investors.
Should you invest $1,000 in Veeva Systems right now?
Before you buy stock in Veeva Systems, consider this:
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Ryan Downie has positions in Salesforce and Veeva Systems. The Motley Fool has positions in and recommends CrowdStrike, Oracle, Salesforce, ServiceNow, and Veeva Systems. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The cloud platform supports a wide range of critical functions, including sales, customer communications, drug development, clinical trial management, and regulatory compliance. The quality and breadth of Veeva's product portfolio, along with high switching costs, make it very difficult for competitors to take market share in this niche. If CrowdStrike stock dips due to short-term uncertainty or weaker-than-expected results, this could become a great long-term opportunity for patient growth investors. | The cloud platform supports a wide range of critical functions, including sales, customer communications, drug development, clinical trial management, and regulatory compliance. The quality and breadth of Veeva's product portfolio, along with high switching costs, make it very difficult for competitors to take market share in this niche. Before you buy stock in Veeva Systems, 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 Veeva Systems wasn't one of them. | There's nothing wrong with a 15% to 20% annual growth rate, but the forward P/E ratio looks a bit high relative to that number, especially if we consider that the company's sales have been slowing for a few years. Before you buy stock in Veeva Systems, 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 Veeva Systems wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Ryan Downie has positions in Salesforce and Veeva Systems. | The cybersecurity stock's forward P/E ratio is over 60 now that the stock has rallied throughout 2023. That results in a price/earnings-to-growth ratio below 2.0, which suggests that it's reasonably priced relative to its growth rate. Before you buy stock in Veeva Systems, 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 Veeva Systems wasn't one of them. | ad9f311a-cc29-4193-b7c2-562a3d026e4e |
710452.0 | 2023-12-16 20:00:00 UTC | Raymond James (RJF) Rides on Buyouts, Expenses Keep Rising | DCOMP | https://www.nasdaq.com/articles/raymond-james-rjf-rides-on-buyouts-expenses-keep-rising | nan | nan | Raymond James Financial, Inc.'s RJF inorganic expansion activities, solid balance sheet position and the Private Client Group (“PCG”) segment’s robust performance are expected to keep aiding its financials. However, the volatile nature of the investment banking (IB) business and mounting expenses are headwinds.
Raymond James’ successful business expansion in Europe and Canada over the years positions it well for growth. In September 2023, the company acquired Canada-based Solus Trust Company Limited. In fiscal 2022, the company acquired SumRidge Partners, TriState Capital Holdings and the U.K.-based Charles Stanley Group PLC. These, along with past several acquisitions, continue to be accretive and support its financials. Management is aiming for many such acquisitions to bolster its PCG and Asset Management segments driven by a robust balance sheet position.
The PCG segment remains a standout performer for the company. Net revenues in the segment have witnessed a CAGR of 15.9% over the last three fiscal years (2020-2023). The acquisition of the U.S. Private Client Services unit of Deutsche Asset & Wealth Management in 2016 added a significant amount of client assets to the segment's balance sheet, thereby further supporting its performance. We project the segment’s revenues to witness a CAGR of 5.3% by fiscal 2026.
In the past three months, shares of this Zacks Rank #3 (Hold) company have rallied 11%, outperforming the industry's growth of 9.6%.
Image Source: Zacks Investment Research
Yet, the current heightened geopolitical and macroeconomic uncertainties are likely to weigh on RJF’s IB performance in the near term. In fiscal 2022, the company’s IB revenues declined 4%, while in fiscal 2023, it plunged 41%. The company’s heavy reliance on the IB business, which is closely tied to the volatile performance of the capital market, is worrisome. We project IB revenues to slip 4.7% in fiscal 2024.
Also, rising expenses remain a major challenge for the company. Its non-interest expenses registered a CAGR of 10.4% over the last three fiscal years (2010-2023). Regulatory changes, inorganic expansion efforts and a highly competitive environment will likely lead to a further increase in expenses in the quarters ahead. We expect total non-interest expenses to witness a CAGR of 5.9% by fiscal 2026.
Finance Stocks Worth a Look
A couple of better-ranked stocks from the finance space are Tradeweb Markets TW and Arrow Financial Corporation AROW. At present, both TW and AROW sport 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 Tradeweb’s current-year earnings has remained unchanged at $1.19 over the past 30 days. TW’s shares have gained 10% in the past three months.
The Zacks Consensus Estimate for Arrow Financial’s 2023 earnings has remained unchanged at $1.81 over the past 30 days. In the past three months, shares of AROW have jumped 70.6%.
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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 fiscal 2022, the company acquired SumRidge Partners, TriState Capital Holdings and the U.K.-based Charles Stanley Group PLC. Image Source: Zacks Investment Research Yet, the current heightened geopolitical and macroeconomic uncertainties are likely to weigh on RJF’s IB performance in the near term. 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%. | Raymond James Financial, Inc.'s RJF inorganic expansion activities, solid balance sheet position and the Private Client Group (“PCG”) segment’s robust performance are expected to keep aiding its financials. The Zacks Consensus Estimate for Arrow Financial’s 2023 earnings has remained unchanged at $1.81 over the past 30 days. Click to get this free report Tradeweb Markets Inc. (TW) : Free Stock Analysis Report Raymond James Financial, Inc. (RJF) : Free Stock Analysis Report Arrow Financial Corporation (AROW) : Free Stock Analysis Report To read this article on Zacks.com click here. | Raymond James Financial, Inc.'s RJF inorganic expansion activities, solid balance sheet position and the Private Client Group (“PCG”) segment’s robust performance are expected to keep aiding its financials. Finance Stocks Worth a Look A couple of better-ranked stocks from the finance space are Tradeweb Markets TW and Arrow Financial Corporation AROW. Click to get this free report Tradeweb Markets Inc. (TW) : Free Stock Analysis Report Raymond James Financial, Inc. (RJF) : Free Stock Analysis Report Arrow Financial Corporation (AROW) : Free Stock Analysis Report To read this article on Zacks.com click here. | Raymond James Financial, Inc.'s RJF inorganic expansion activities, solid balance sheet position and the Private Client Group (“PCG”) segment’s robust performance are expected to keep aiding its financials. The PCG segment remains a standout performer for the company. Be First to New Top 10 Stocks >> Want the latest recommendations from Zacks Investment Research? | 79251193-adc4-4665-838c-a4378989bd1c |
710453.0 | 2023-12-16 20:00:00 UTC | Here's Why Arrow Financial (AROW) Stock is a Must Buy Now | DCOMP | https://www.nasdaq.com/articles/heres-why-arrow-financial-arow-stock-is-a-must-buy-now | nan | nan | Though the U.S. regional banking crisis in early March hurt investor sentiments and turned them bearish on the sector, they have regained confidence. Also, the Federal Reserve has signaled the end of interest rate hikes this cycle and chances of three cuts in 2024. So, Arrow Financial Corporation AROW stock looks like a promising investment option now.
Aided by higher interest rates and decent loan demand, AROW’s top line is expected to improve in the near term. Analysts are optimistic regarding the company’s earnings potential. The Zacks Consensus Estimate for earnings has been revised 13% and 12.6% upward for 2023 and 2024, respectively, over the past two months. It currently sports a Zacks Rank #1 (Strong Buy).
Shares of Arrow Financial have surged 43.2% in the past six months, outperforming the industry’s 21.6% rally.
Image Source: Zacks Investment Research
Factors That Make AROW Stock Worth Betting on
Earnings Growth: In the last three to five years, Arrow Financial witnessed earnings growth of 4.7%. Though the company’s earnings are expected to decline 36.5% in 2023, the trend is expected to reverse, and earnings are projected to jump 42.8% next year.
Revenue Strength: Arrow Financial’s revenues witnessed a CAGR of 8.6% over the last three years (2019-2022). Though the trend reversed in the first three quarters of 2023 because of increasing funding and deposit costs, the company entered into $300 million pay-fixed portfolio layer method fair value swaps in late September, which is expected to add more than $2 million in net interest income annually.
Thus, higher rates, decent loan demand and efforts to bolster fee income will continue to support the company’s top-line growth. Though AROW’s revenues are expected to decline 8.8% in 2023, the metric is anticipated to grow at the rate of 9.9% in 2024.
Solid Capital Distributions: AROW has been raising dividend payouts on a regular basis. In the last five years, the company hiked dividends six times.
Also, Arrow Financial has a share repurchase plan in place. In October 2023, the company expanded its existing stock repurchase program by $5 million. Thus, the total authorization under the repurchase program was $9.1 million as of Oct 26, 2023.
Given the company’s decent liquidity and balance sheet position, its capital distributions seem sustainable going forward.
Strong Leverage: Currently, Arrow Financial has a debt/equity ratio of 0.07. This compares favorably with the industry average of 0.39. Given the relatively low debt/equity ratio than its peers, the company is expected to be financially stable, even in adverse economic conditions.
Other Bank Stocks Worth Considering
A couple of top-ranked stocks from the banking space are WSFS Financial Corporation WSFS and Hilltop Holdings HTH
Earnings estimates for WSFS have remained unchanged for 2023 over the past 30 days at $4.47. The company’s shares have gained 27.3% over the past six months. WSFS Financial currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Hilltop Holdings’ earnings estimates have moved 1.9% north for the current year at $1.65 over the past 30 days. In six months’ time, HTH’s shares have gained 12.3%. The company sports a Zacks Rank #1 at present.
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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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Hilltop Holdings Inc. (HTH) : Free Stock Analysis Report
WSFS Financial Corporation (WSFS) : Free Stock Analysis Report
Arrow Financial Corporation (AROW) : 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. | Though the U.S. regional banking crisis in early March hurt investor sentiments and turned them bearish on the sector, they have regained confidence. Thus, higher rates, decent loan demand and efforts to bolster fee income will continue to support the company’s top-line 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%. | Aided by higher interest rates and decent loan demand, AROW’s top line is expected to improve in the near term. Image Source: Zacks Investment Research Factors That Make AROW Stock Worth Betting on Earnings Growth: In the last three to five years, Arrow Financial witnessed earnings growth of 4.7%. Click to get this free report Hilltop Holdings Inc. (HTH) : Free Stock Analysis Report WSFS Financial Corporation (WSFS) : Free Stock Analysis Report Arrow Financial Corporation (AROW) : Free Stock Analysis Report To read this article on Zacks.com click here. | Image Source: Zacks Investment Research Factors That Make AROW Stock Worth Betting on Earnings Growth: In the last three to five years, Arrow Financial witnessed earnings growth of 4.7%. Other Bank Stocks Worth Considering A couple of top-ranked stocks from the banking space are WSFS Financial Corporation WSFS and Hilltop Holdings HTH Click to get this free report Hilltop Holdings Inc. (HTH) : Free Stock Analysis Report WSFS Financial Corporation (WSFS) : Free Stock Analysis Report Arrow Financial Corporation (AROW) : Free Stock Analysis Report To read this article on Zacks.com click here. | Though the company’s earnings are expected to decline 36.5% in 2023, the trend is expected to reverse, and earnings are projected to jump 42.8% next year. Other Bank Stocks Worth Considering A couple of top-ranked stocks from the banking space are WSFS Financial Corporation WSFS and Hilltop Holdings HTH WSFS Financial currently carries a Zacks Rank #2 (Buy). | 2c7cf910-41f6-4d22-9a0d-12558e79cd80 |
710454.0 | 2023-12-16 20:00:00 UTC | Alphabet Just Said "Checkmate" to Microsoft, but Here's Why Investors Could Be the Real Winners | DCOMP | https://www.nasdaq.com/articles/alphabet-just-said-checkmate-to-microsoft-but-heres-why-investors-could-be-the-real | nan | nan | Financial headlines about artificial intelligence (AI) dominated 2023, with the "Magnificent Seven" stocks of Microsoft, Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL), Apple, Tesla, Meta Platforms, Amazon, and Nvidia garnering most of the attention.
Microsoft kicked off the AI arms race following a $10 billion investment in OpenAI, the developer of ChatGPT. Not long after, Alphabet debuted its own large language model (LLM) called Bard. Let's just say the initial reaction from Bard was underwhelming, given the chatbot didn't exactly provide accurate answers to basic questions during its public unveiling.
Nevertheless, as ChatGPT continued to gain momentum in the public eye, Alphabet doubled down and kept working. Earlier this month, Alphabet unveiled its latest installment in generative AI, called Gemini.
Make no mistake about it -- Alphabet's Gemini release is a calculated chess move during otherwise tumultuous times at OpenAI and the potential repercussions for Microsoft. Could now be a buying opportunity in Alphabet stock before the company begins reaping the benefits of its new AI product?
Is Gemini better than ChatGPT?
If you're wondering whether Alphabet just leapfrogged Microsoft and asking which generative AI application is more powerful, welcome to the club. This is, quite literally, the billion-dollar question. According to research at Goldman Sachs, generative AI has the potential to increase gross domestic product (GDP) by $7 trillion over the next decade -- a theme that is sparking interest across Wall Street.
A couple of months ago, it was revealed that famed hedge fund manager Bill Ackman took a sizable stake in Alphabet. During a fireside chat with CNBC's Scott Wapner, Ackman spoke about his bullish thesis on Alphabet. The bottom line is that Ackman is attracted to Alphabet's ecosystem, which stems across Google Search, productivity applications such as Gmail, video website YouTube, and the company's growing cloud business. In his view, Alphabet is uniquely positioned to integrate artificial intelligence across its entire suite of services, thereby becoming invaluable for end users.
The obvious undercurrent of Gemini is that it could further boost the demand for Alphabet's various products, making it appear lucrative and validating Ackman's hypothesis. But I'd caution investors to zoom out and really consider the full picture here.
Like Alphabet, Microsoft also has a compelling ecosystem. Per the company's latest earnings report, Microsoft experienced more demand for its AI applications than it was expecting. And while OpenAI has helped fuel growth in Microsoft's Azure cloud segment, the real opportunities may just be getting started.
Given the tailwinds pushing both Alphabet and Microsoft, I think it's a little early to declare one generative AI application as superior. For investors seriously considering a position in Alphabet, analysis beyond AI potential is required.
Image source: Getty Images.
Alphabet's valuation looks really attractive
There are several ways to assess a stock when it comes to valuation. One measure that can be useful is looking at a company's forward price-to-earnings (P/E) multiple benchmarked against a set of peers.
GOOG PE Ratio (Forward) data by YCharts.
The chart above illustrates that Alphabet's forward P/E of 23 is the lowest among its Magnificent Seven cohorts. Of note, Microsoft's forward P/E of 33 is well above Alphabet, thereby signaling the markets are applying a premium to the Windows developer.
Going beyond forward P/E, the chart below illustrates the company's price-to-free-cash-flow ratio over the last decade. At a multiple of 22.4, Alphabet stock is trading at a massive discount to its 10-year average, and quite close to its low point of 18.1. This looks like yet another sign that the markets are discounting Alphabet stock and its robust business model. In fact, the company's consistent free cash flow generation is what provides Alphabet with the financial flexibility to invest in new growth areas such as AI.
GOOG Price to Free Cash Flow data by YCharts.
Should you buy Alphabet stock?
Alphabet stock looks quite cheap at its current trading levels, especially compared to its competition. The secular tailwinds fueling artificial intelligence coupled with the company's institutional support are reasons to be optimistic. However, given the company's sheer dominance in its core online advertising business and its contribution to help fund other growth drivers, like the cloud and AI, don't seem to be appreciated. This most likely stems from the fact that some believe ChatGPT will begin replacing Google Search, putting Alphabet in an existential crisis.
If the valuation analysis above shows anything, it may imply that the thesis that Microsoft is going to dethrone Alphabet in online search is shortsighted. Given Alphabet is the home of the world's top two most visited websites (Google and YouTube), advertisers are keen to utilize these platforms. And since 2024 is the beginning of a new election cycle, research suggests that it could be a record year for political advertising campaigns -- a theme that should benefit Alphabet greatly.
Moreover, it's clear that the addressable market for artificial intelligence is not only large, but still evolving. As applications and use cases multiply, there will likely be several winners. As the stock trades at historically low levels, now could be a unique opportunity to begin dollar-cost averaging into Alphabet. Both the near-term and long-term pictures look strong, and investors should take advantage of the discounted trading multiples right now.
Should you invest $1,000 in Alphabet right now?
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 10 stocks that made the cut could produce monster returns in the coming years.
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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. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Adam Spatacco has positions in Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Goldman Sachs Group, Meta Platforms, Microsoft, Nvidia, and Tesla. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | According to research at Goldman Sachs, generative AI has the potential to increase gross domestic product (GDP) by $7 trillion over the next decade -- a theme that is sparking interest across Wall Street. The bottom line is that Ackman is attracted to Alphabet's ecosystem, which stems across Google Search, productivity applications such as Gmail, video website YouTube, and the company's growing cloud business. However, given the company's sheer dominance in its core online advertising business and its contribution to help fund other growth drivers, like the cloud and AI, don't seem to be appreciated. | Financial headlines about artificial intelligence (AI) dominated 2023, with the "Magnificent Seven" stocks of Microsoft, Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL), Apple, Tesla, Meta Platforms, Amazon, and Nvidia garnering most of the attention. Adam Spatacco has positions in Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Goldman Sachs Group, Meta Platforms, Microsoft, Nvidia, and Tesla. | Financial headlines about artificial intelligence (AI) dominated 2023, with the "Magnificent Seven" stocks of Microsoft, Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL), Apple, Tesla, Meta Platforms, Amazon, and Nvidia garnering most of the attention. Could now be a buying opportunity in Alphabet stock before the company begins reaping the benefits of its new AI product? 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. | Is Gemini better than ChatGPT? The bottom line is that Ackman is attracted to Alphabet's ecosystem, which stems across Google Search, productivity applications such as Gmail, video website YouTube, and the company's growing cloud business. See the 10 stocks *Stock Advisor returns as of December 11, 2023 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. | 97d651c9-a279-4f74-a010-f84f75f171cc |
710455.0 | 2023-12-16 20:00:00 UTC | Beyond Meat: Buy, Sell, or Hold? | DCOMP | https://www.nasdaq.com/articles/beyond-meat%3A-buy-sell-or-hold | nan | nan | Beyond Meat (NASDAQ: BYND) makes plant-based meat substitutes. There was a lot of excitement when the company's products first hit the market, but the hype has died down in recent years.
Valued at over $14 billion within a few months of its 2019 IPO, Beyond Meat has seen its stock decline 96% from that peak. After such a big price drop, contrarian investors may be wondering if the stock is worth buying. Here's why you should tread carefully.
Beyond Meat hasn't been profitable in years
One of the first reasons to stay away from Beyond Meat, or to sell it, is that the company isn't profitable. In fact, its bottom line was positive in early 2020, but it has been getting worse, not better. That said, results in 2023 have begun to show an improvement with net losses in the third-quarter shrinking to $70.5 from $101.7 million in the prior-year period. With a net margin of negative 94%, however, the company has a long way to go.
Image source: Getty Images.
It would be easy to argue the food maker is still relatively small and trying to reach scale to explain away those losses. But the numbers don't really back that view up. Beyond Meat has been losing points of distribution in the past two quarters, meaning fewer places are selling the company's products. And while overall volume sold is up, that's driven entirely by its international expansion. Third-quarter volume was down nearly 19% year over year in the U.S. retail channel and almost 38% in the U.S. restaurant channel. In other words, the market where the company made its debut looks like it's already growing tired of plant-based meat, and some investors fear a similar trend will eventually take hold overseas.
Then, there's the fact Beyond Meat announced a business review just before its Q3 earnings release. The company isn't that old, and this announcement is a clear sign of management's uncertainty regarding Beyond Meat's long-term growth prospects.
There's a clock ticking at Beyond Meat
So Beyond Meat is executing poorly right now and losing money. That's enough reason for investors to stay away (or sell the stock). But there's another important factor investors need to be aware of: The company has a convertible bond that will come due on March 15, 2027. As of Q3, the value of that obligation was just over $1.1 billion, and Beyond Meat had cash assets worth about $220 million on its balance sheet.
The conversion price on the bonds is so high it's highly unlikely any investor is going to convert it to stock, given where shares currently trade. In other words, it seems likely Beyond Meat will have to come up with the cash to pay off that debt. Only it doesn't have the cash now, and if it keeps losing money, it won't have it in 2027, either. Rolling the debt over will come with its own challenges including the potential of a very high interest rate.
That's another little wrinkle -- the converts were issued in a very different market and carry a zero interest rate. Thus, they pose no near-term problem. But if the business review doesn't do anything to turn the company's performance around, the Ides of March 2027 could be a make-or-break date for the company.
As it stands, this troubled company has high hurdles to clear, and the uncertainty makes Beyond Meat stock not worth owning for most investors.
Should you invest $1,000 in Beyond Meat right now?
Before you buy stock in Beyond Meat, 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 Beyond Meat 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*.
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*Stock Advisor returns as of December 18, 2023
Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Beyond Meat. 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. | Beyond Meat has been losing points of distribution in the past two quarters, meaning fewer places are selling the company's products. In other words, the market where the company made its debut looks like it's already growing tired of plant-based meat, and some investors fear a similar trend will eventually take hold overseas. As it stands, this troubled company has high hurdles to clear, and the uncertainty makes Beyond Meat stock not worth owning for most investors. | Beyond Meat (NASDAQ: BYND) makes plant-based meat substitutes. As it stands, this troubled company has high hurdles to clear, and the uncertainty makes Beyond Meat stock not worth owning for most investors. Before you buy stock in Beyond Meat, 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 Beyond Meat wasn't one of them. | Beyond Meat hasn't been profitable in years One of the first reasons to stay away from Beyond Meat, or to sell it, is that the company isn't profitable. As it stands, this troubled company has high hurdles to clear, and the uncertainty makes Beyond Meat stock not worth owning for most investors. Before you buy stock in Beyond Meat, 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 Beyond Meat wasn't one of them. | Beyond Meat hasn't been profitable in years One of the first reasons to stay away from Beyond Meat, or to sell it, is that the company isn't profitable. Only it doesn't have the cash now, and if it keeps losing money, it won't have it in 2027, either. Before you buy stock in Beyond Meat, 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 Beyond Meat wasn't one of them. | ccc0a077-fcf3-44fa-930c-c2a3ecb272a1 |
710456.0 | 2023-12-16 20:00:00 UTC | Strength Seen in Byrna Technologies Inc. (BYRN): Can Its 5.7% Jump Turn into More Strength? | DCOMP | https://www.nasdaq.com/articles/strength-seen-in-byrna-technologies-inc.-byrn%3A-can-its-5.7-jump-turn-into-more-strength | nan | nan | Byrna Technologies Inc. (BYRN) shares soared 5.7% in the last trading session to close at $6.14. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 9.4% gain over the past four weeks.
The price surge can be correlated to the recent announcement of preliminary expectations for the fourth fiscal quarter. Q4 2023 revenue forecast is $15.6M, a 120% rise from the quarter ago reported figure and a slight 2.7% dip from the year ago reported figure. Excluding erratic international sales, fourth quarter sales show a substantial 33% YoY increase.
This company is expected to post quarterly loss of $0.05 per share in its upcoming report, which represents a year-over-year change of -183.3%. Revenues are expected to be $10.98 million, down 31.5% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Byrna Technologies Inc., the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on BYRN going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Byrna Technologies Inc. is part of the Zacks Technology Services industry. Symbotic Inc. (SYM), another stock in the same industry, closed the last trading session 1.1% lower at $56.36. SYM has returned 53.4% in the past month.
Symbotic Inc.'s consensus EPS estimate for the upcoming report has changed +36.8% over the past month to -$0.05. Compared to the company's year-ago EPS, this represents a change of +58.3%. Symbotic Inc. currently boasts a Zacks Rank of #3 (Hold).
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. | The price surge can be correlated to the recent announcement of preliminary expectations for the fourth fiscal quarter. This company is expected to post quarterly loss of $0.05 per share in its upcoming report, which represents a year-over-year change of -183.3%. 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%. | Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Byrna Technologies Inc. is part of the Zacks Technology Services industry. Click to get this free report Byrna Technologies Inc. (BYRN) : Free Stock Analysis Report Symbotic Inc. (SYM) : Free Stock Analysis Report To read this article on Zacks.com click here. | Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Byrna Technologies Inc. is part of the Zacks Technology Services industry. Click to get this free report Byrna Technologies Inc. (BYRN) : Free Stock Analysis Report Symbotic Inc. (SYM) : Free Stock Analysis Report To read this article on Zacks.com click here. | You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Byrna Technologies Inc. is part of the Zacks Technology Services industry. Symbotic Inc.'s consensus EPS estimate for the upcoming report has changed +36.8% over the past month to -$0.05. Be First to New Top 10 Stocks >> Want the latest recommendations from Zacks Investment Research? | 75d19fe4-3342-4e7c-b727-f84140c6ec03 |
710457.0 | 2023-12-16 20:00:00 UTC | Is Cloudflare Stock a Buy? | DCOMP | https://www.nasdaq.com/articles/is-cloudflare-stock-a-buy | nan | nan | Either Cloudflare (NYSE: NET) possesses good timing or perhaps it's blessed with prescience. The provider of cloud-based services debuted on Wall Street in 2019 at $15 per share when cloud computing was rising in popularity. Mere months later the COVID-19 pandemic hit, and due to society's sudden need for cloud-based internet solutions to to take classes or work remotely, Cloudflare stock rocketed past $200 per share.
Its stock returned to earth since then. But on Dec. 15, Cloudflare shares reached a 52-week high after Fortune magazine listed the company among the top 10 businesses with long-term growth potential.
At this point, does it make sense to buy Cloudflare shares? Digging into the company in more detail can help to determine if now is a good time to invest.
Why Cloudflare's offerings attract customers
Cloudflare tackles the complex task of helping organizations maintain a digital presence. It does this by offering several cloud-based services centered around digital content delivery across an internet network that's fast, safe, and robust at a reasonable cost.
Every time you visit a website, your device retrieves it from a server in a data center, and the site must load quickly or you may not stick around. Cloudflare delivers speed through a network of data centers spanning over 100 countries around the globe.
Still, a robust network isn't useful unless it's safe and secure from hackers. So cybersecurity is also one of Cloudflare's offerings. Its network security was able to withstand a massive cyberattack generating the equivalent of all the internet traffic in the world.
Cloudflare's convergence of a cloud computing network and cybersecurity, referred to as a secure access service edge (SASE), proved another prescient move. SASE is expanding rapidly as more organizations transition to cloud computing.
The SASE market grew 30% in 2023 to $9 billion according to research firm Gartner, and is expected to reach $25 billion by 2027. Cloudflare's all-in-one SASE solution is already benefiting from this industry tailwind as demonstrated by the company's customer growth.
At the end of last year, Cloudflare reported more than 160,000 paying customers, nearly double the number it had after its 2019 initial public offering. Customers include U.S. government agencies shedding multiple vendors in favor of Cloudflare's all-in-one offering.
Cloudflare's success
This customer growth translated into rapidly expanding revenue. In the third quarter, Cloudflare generated sales of $335.6 million, a 32% year-over-year increase.
Its strong Q3 results were the latest in a multiyear trend of rising revenue.
Data by YCharts.
The company's sales growth is expected to continue. For the fourth quarter, Cloudflare is forecasting double-digit year-over-year revenue growth of at least $352 million, up from 2022's $274.7 million.
The company's free cash flow (FCF) is also strengthening. FCF provides insight into the cash available for Cloudflare to invest in its business, pay debt obligations, and repurchase shares. Its Q3 FCF was $34.9 million compared to negative FCF of $4.6 million in the prior year.
Yet despite Cloudflare's successes, the company isn't profitable. Cloudflare exited Q3 with a net loss of $23.5 million. Because of its strong revenue growth, however, Cloudflare's lack of profitability isn't a concern at this time.
In fact, many tech companies operate for years without a profit as they prioritize growing their businesses. And a positive sign is that Cloudflare's Q3 net loss improved over the prior year's loss of 42.5 million.
Deciding on Cloudflare stock
And now, there's the advent of artificial intelligence. Cloudflare's prescient gifts came into play once more since, years ago, the company prepared its data centers to support AI's hardware needs. That foresight is proving beneficial.
Cloudflare's network can handle the complex tasks executed by AI systems. As a result, the company already has customers wanting to put billions of AI tasks onto Cloudflare's network. The company believes this customer demand will continue to increase, and Cloudflare's foresight preparing for AI gives it a competitive advantage.
Cloudflare also benefits from the tailwind of growth across multiple industries. The cloud computing market is expected to increase from $678 billion in 2023 to $2.4 trillion by 2030, which also boosts SASE's market expansion. In addition, the AI market is forecast to grow from $142.3 billion in 2022 to $1.8 trillion by 2030.
With growth in these industries and its strong IT infrastructure, Cloudflare is positioned to continue its success into 2024, making the stock a buy. Because Cloudflare shares hover near a 52-week high, it's worth taking a small stake now, then using dollar-cost averaging to add to your position later should the price dip.
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Robert Izquierdo has positions in Cloudflare. The Motley Fool has positions in and recommends Cloudflare. The Motley Fool recommends Gartner. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Mere months later the COVID-19 pandemic hit, and due to society's sudden need for cloud-based internet solutions to to take classes or work remotely, Cloudflare stock rocketed past $200 per share. Cloudflare's convergence of a cloud computing network and cybersecurity, referred to as a secure access service edge (SASE), proved another prescient move. Because Cloudflare shares hover near a 52-week high, it's worth taking a small stake now, then using dollar-cost averaging to add to your position later should the price dip. | Cloudflare's success This customer growth translated into rapidly expanding revenue. In the third quarter, Cloudflare generated sales of $335.6 million, a 32% year-over-year increase. Before you buy stock in Cloudflare, 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 Cloudflare wasn't one of them. | Why Cloudflare's offerings attract customers Cloudflare tackles the complex task of helping organizations maintain a digital presence. As a result, the company already has customers wanting to put billions of AI tasks onto Cloudflare's network. Before you buy stock in Cloudflare, 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 Cloudflare wasn't one of them. | It does this by offering several cloud-based services centered around digital content delivery across an internet network that's fast, safe, and robust at a reasonable cost. With growth in these industries and its strong IT infrastructure, Cloudflare is positioned to continue its success into 2024, making the stock a buy. Before you buy stock in Cloudflare, 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 Cloudflare wasn't one of them. | 57c3f5ca-5c9c-4bcb-a147-11dfaac2982c |
710458.0 | 2023-12-16 20:00:00 UTC | Cenovus (CVE) Creates Kaybob Duvernay JV With Athabasca | DCOMP | https://www.nasdaq.com/articles/cenovus-cve-creates-kaybob-duvernay-jv-with-athabasca | nan | nan | Cenovus Energy Inc. CVE and Athabasca Oil Corporation have announced the formation of a joint venture (JV) stand-alone company named Duvernay Energy Corporation.
This independent, self-funded entity aims to generate strong, high netback cash flow and production growth, with the expectation of unlocking significant value.
In this JV, Athabasca will hold a 70% equity interest in Duvernay Energy, while Cenovus will own the remaining 30%. To kickstart the creation of Duvernay Energy, Athabasca will contribute $22 million in seed capital and Cenovus will contribute $18 million.
The consolidation of assets will focus on the Kaybob Duvernay resource play in northwest Alberta, particularly in the volatile oil region. Presently, Duvernay Energy’s assets yield a daily production of 2,000 barrels of oil equivalent, with plans to expand to 25,000 barrels of oil equivalent per day by the end of the decade.
In addition to the company’s current JV assets, Duvernay Energy holds exposure to approximately 46,000 acres of 100% working interest-operated lands. These lands are contiguous to its existing Duvernay assets, further expanding the company's operational footprint and potential resource development.
In total, the company will have exposure to approximately 200,000 gross acres in the liquids-rich and oil windows, encompassing around 500 gross well locations.
Management of Duvernay Energy will be overseen by Athabasca through a management and operating services agreement. The effective date of the transaction is Jan 1, 2024, and the closing is expected to take place in the first quarter of 2024, subject to customary closing conditions and regulatory approvals.
For fiscal 2024, Duvernay Energy anticipates capital expenditure of $82 million. The funding for the expenditure will be sourced from the entity’s cash flow, as well as seed capital totaling $40 million.
Furthermore, Duvernay Energy stands to benefit from $20 million in expenditure linked to Athabasca’s fourth-quarter 2023 drilling operations. These operations pertain to a 100% working interest multi-well pad and long-lead inventory, which will be instrumental for future activities.
Zacks Rank & Stocks to Consider
Cenovus currently carries a Zack Rank #3 (Hold).
Investors interested in the energy sector might look at the following companies that presently sport a Zacks Rank #1 (Strong Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Murphy USA’s MUSA unique high-volume, low-cost business model helps it to retain high profitability, even in the fiercely competitive retail environment.
MUSA remains committed to returning excess cash to its shareholders through continued share buyback programs. As part of this initiative, the fuel retailer recently approved a repurchase authorization of up to $1.5 billion, following the completion of the existing $1-billion mandate. The move underscores MUSA’s sound financial position and commitment to rewarding its shareholders.
The Williams Companies WMB is a premier energy infrastructure provider in North America. WMB has a thriving deepwater transportation business. The company’s deepwater portfolio includes a 3,500-mile natural gas and oil gathering and transmission pipeline, and is important for future cash flows.
Williams Companies’ debt maturity profile is in good shape, with its $4.5-billion revolver maturing in 2023. It is also paying its shareholders an attractive dividend, yielding around 5%. Besides this, the company has a share repurchase program worth $1.5 billion, thus highlighting its commitment to shareholders.
Ecopetrol S.A. EC operates across various segments of the oil and gas industry, including exploration, development and production of oil and gas, refining, transportation, and the sale of petroleum products.
Ecopetrol has witnessed upward earnings estimate revisions for 2023 and 2024 in the past 30 days. The Zacks Consensus Estimate for EC’s 2023 and 2024 earnings is pegged at $2.32 and $2.41 per share, 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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Williams Companies, Inc. (The) (WMB) : Free Stock Analysis Report
Ecopetrol S.A. (EC) : 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. | This independent, self-funded entity aims to generate strong, high netback cash flow and production growth, with the expectation of unlocking significant value. In addition to the company’s current JV assets, Duvernay Energy holds exposure to approximately 46,000 acres of 100% working interest-operated lands. Murphy USA’s MUSA unique high-volume, low-cost business model helps it to retain high profitability, even in the fiercely competitive retail environment. | Presently, Duvernay Energy’s assets yield a daily production of 2,000 barrels of oil equivalent, with plans to expand to 25,000 barrels of oil equivalent per day by the end of the decade. In addition to the company’s current JV assets, Duvernay Energy holds exposure to approximately 46,000 acres of 100% working interest-operated lands. Click to get this free report Williams Companies, Inc. (The) (WMB) : Free Stock Analysis Report Ecopetrol S.A. (EC) : Free Stock Analysis Report Cenovus Energy Inc (CVE) : Free Stock Analysis Report Murphy USA Inc. (MUSA) : Free Stock Analysis Report To read this article on Zacks.com click here. | Cenovus Energy Inc. CVE and Athabasca Oil Corporation have announced the formation of a joint venture (JV) stand-alone company named Duvernay Energy Corporation. Presently, Duvernay Energy’s assets yield a daily production of 2,000 barrels of oil equivalent, with plans to expand to 25,000 barrels of oil equivalent per day by the end of the decade. Click to get this free report Williams Companies, Inc. (The) (WMB) : Free Stock Analysis Report Ecopetrol S.A. (EC) : Free Stock Analysis Report Cenovus Energy Inc (CVE) : Free Stock Analysis Report Murphy USA Inc. (MUSA) : Free Stock Analysis Report To read this article on Zacks.com click here. | In this JV, Athabasca will hold a 70% equity interest in Duvernay Energy, while Cenovus will own the remaining 30%. The funding for the expenditure will be sourced from the entity’s cash flow, as well as seed capital totaling $40 million. Be First to New Top 10 Stocks >> Want the latest recommendations from Zacks Investment Research? | f20809a8-aef5-484f-b715-3eb585a9e5de |
710459.0 | 2023-12-16 20:00:00 UTC | Feast on These 4 Food Stocks as 2023 Approaches Its Finale | DCOMP | https://www.nasdaq.com/articles/feast-on-these-4-food-stocks-as-2023-approaches-its-finale | nan | nan | As 2023 comes to a close, it is worth noting some delicacies from the food space, which have exhibited resilience in the face of economic challenges and look well-placed for the new year.
The year was marked by inflation, which not only spiked up input costs for manufacturers but also weighed on consumers’ purchasing power, thereby affecting companies’ sales volumes. That being said, the inflationary trend has been showing signs of moderation now.
Encouragingly, we have pinpointed some food stocks that offer appealing prospects for investors seeking potential for growth in 2024. An effective combination of a strong brand presence and strategic pricing approach has empowered these companies to navigate the volatile economic landscape.
What’s Making Food Stocks Flavorful?
Companies have been benefiting from robust pricing strategies implemented to weather the economic storm. Brand strength has been another major upside. Consumers’ loyalty to specific brands, combined with companies' unwavering focus on innovation, has been a driving force.
For instance, companies have been responding well to the growing consumer preference for healthy and nourishing food by introducing innovations in the organic product sector. The focus on expanding plant-based alternatives has particularly benefited companies offering meat products, which remain a significant component of consumers' shopping carts.
Apart from this, endeavors to enhance manufacturing capabilities and strengthen product portfolios have proven successful for numerous food companies, positioning them favorably for future growth. Their ability to adapt to evolving consumer preferences and market dynamics has emerged as a winning formula.
Considering these factors, we are introducing four compelling options from the food domain, each sporting a favorable Zacks Rank #1 (Strong Buy) or 2 (Buy). These stocks have observed rises in their share prices over the past three months, bucking the performance of their respective industries.
Savor These 4 Delights
Investors can indulge in Pilgrim's Pride Corporation PPC, which currently sports a Zacks Rank #1. Specializing in the production, processing, marketing and distribution of fresh, frozen and value-added chicken and pork products, PPC has been consistently bolstering the marketing efforts of its brands while expanding into new regions. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company also regularly implements supply-chain enhancements to improve efficiency and cut costs. Pilgrim’s Pride’s focus on key customers is a pathway for refining its portfolio and creating competitive advantages.
The consensus mark for 2024 earnings per share (EPS) suggests growth of 62.4% from the year-ago period. The Zacks Consensus Estimate for Pilgrim's Pride’s 2024 EPS has increased from $2.12 to $2.48 in the past 60 days. Shares of PPC have risen 13% in the past three months, comfortably outpacing the industry’s decline of 8%.
Image Source: Zacks Investment Research
Another promising option is The Kraft Heinz Company KHC, currently holding a Zacks Rank #2. This consumer-packaged food and beverage company has experienced positive momentum, particularly in its three crucial pillars — Foodservice, Emerging Markets and U.S. Retail Grow platforms.
Additionally, The Kraft Heinz Company has been actively pursuing its transformation plan, with the AGILE@SCALE strategy standing out. This strategic approach involves making partnerships with technology giants and innovative leaders, contributing significantly to enhancing the company's agile expertise and capabilities.
KHC has been undertaking strategic pricing initiatives to improve its performance. The consensus mark for The Kraft Heinz Company’s EPS for 2024 suggests growth of 1.7% from the year-ago period figures. The Zacks Consensus Estimate for KHC’s 2024 EPS has risen by 1.7% to $3.01 over the past 60 days. Shares of the company have rallied 7% in the past three months compared with the industry’s rise of 1.4%.
Image Source: Zacks Investment Research
Ingredion Incorporated INGR is also worth relishing. This Zacks Rank #2 company looks well-positioned due to its market and product diversity and robust business model. An efficient approach to product pricing, a favorable customer mix and a focus on driving operational excellence and productivity have been aiding the company in battling cost inflation. Ingredion Incorporated’s focus on Driving Growth Roadmap also bodes well.
The company, which produces and sells sweeteners, starches, nutrition ingredients and biomaterial solutions, has rallied 8.1% in the past three months. The Zacks Consensus Estimate for INGR’s 2024 EPS has increased by a penny in the past 60 days to $9.74. This suggests growth of 4.9% from the figure reported in the year-ago period.
Vital Farms, Inc. VITL looks tempting, with its shares up 26.9% in the past three months. This provider of pasture-raised products currently carries a Zacks Rank #2. The Zacks Consensus Estimate for Vital Farms’ 2024 EPS has increased 12.3% in the past 60 days to 64 cents, indicating growth of 21.4.% from the figure reported in the year-ago period.
Vital Farms looks well-placed due to its focus on fueling demand through new retail collaborations and the expansion of the product range with existing partners. The company’s impressive marketing strategies are likely to help it witness a rise in household penetration. VITL recently highlighted its long-term goals. Vital Farms expects net revenues of $1 billion by 2027, with the gross margin expected to be 35%.
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
Pilgrim's Pride Corporation (PPC) : Free Stock Analysis Report
Ingredion Incorporated (INGR) : Free Stock Analysis Report
Kraft Heinz Company (KHC) : Free Stock Analysis Report
Vital Farms, Inc. (VITL) : 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. | Apart from this, endeavors to enhance manufacturing capabilities and strengthen product portfolios have proven successful for numerous food companies, positioning them favorably for future growth. This strategic approach involves making partnerships with technology giants and innovative leaders, contributing significantly to enhancing the company's agile expertise and capabilities. The Zacks Consensus Estimate for Vital Farms’ 2024 EPS has increased 12.3% in the past 60 days to 64 cents, indicating growth of 21.4.% from the figure reported in the year-ago period. | Image Source: Zacks Investment Research Another promising option is The Kraft Heinz Company KHC, currently holding a Zacks Rank #2. The Zacks Consensus Estimate for Vital Farms’ 2024 EPS has increased 12.3% in the past 60 days to 64 cents, indicating growth of 21.4.% from the figure reported in the year-ago period. Click to get this free report Pilgrim's Pride Corporation (PPC) : Free Stock Analysis Report Ingredion Incorporated (INGR) : Free Stock Analysis Report Kraft Heinz Company (KHC) : Free Stock Analysis Report Vital Farms, Inc. (VITL) : Free Stock Analysis Report To read this article on Zacks.com click here. | Image Source: Zacks Investment Research Another promising option is The Kraft Heinz Company KHC, currently holding a Zacks Rank #2. The Zacks Consensus Estimate for Vital Farms’ 2024 EPS has increased 12.3% in the past 60 days to 64 cents, indicating growth of 21.4.% from the figure reported in the year-ago period. Click to get this free report Pilgrim's Pride Corporation (PPC) : Free Stock Analysis Report Ingredion Incorporated (INGR) : Free Stock Analysis Report Kraft Heinz Company (KHC) : Free Stock Analysis Report Vital Farms, Inc. (VITL) : Free Stock Analysis Report To read this article on Zacks.com click here. | Image Source: Zacks Investment Research Another promising option is The Kraft Heinz Company KHC, currently holding a Zacks Rank #2. An efficient approach to product pricing, a favorable customer mix and a focus on driving operational excellence and productivity have been aiding the company in battling cost inflation. Vital Farms, Inc. VITL looks tempting, with its shares up 26.9% in the past three months. | c36197a2-6630-42a0-9838-05504027cc6d |
710460.0 | 2023-12-16 20:00:00 UTC | Lumen (LUMN) Reportedly Needs Time to Close Restructuring Deal | DCOMP | https://www.nasdaq.com/articles/lumen-lumn-reportedly-needs-time-to-close-restructuring-deal | nan | nan | Lumen Technologies LUMN is requesting more time from creditors to conclude its debt restructuring deal, per a report from Bloomberg. There was no official word on the matter from the company.
Citing sources familiar with the matter, Bloomberg noted that Lumen wants the deadline to be extended by one month and close on Jan 31, 2024. Creditors have agreed to the extension, but the reprieve has not been finalized yet.
Per sources, Lumen has been discussing the extension of the deadline on its credit line with banks in the past few weeks. LUMN will require all banks to sign on to the restructuring deal for it to be finalized. The discussions also include the topic of bank lenders receiving better priority in the line for repayment.
In November 2023, the firm announced that it inked an agreement with a group of creditors holding more than $7 billion of the outstanding debt (of the company and its subsidiaries) to extend the maturities of the debt instruments. The deal will also provide Lumen with another $1.2 billion of fresh financing.
Lumen Technologies, Inc. Price and Consensus
Lumen Technologies, Inc. price-consensus-chart | Lumen Technologies, Inc. Quote
As of Sep 30, 2023, the company had $311 million in cash and cash equivalents with $19,740 million of long-term debt compared with the respective figures of $411 million and $19,899 million as of Jun 30, 2023.
Lumen’s performance is affected by weakness in Business, Enterprise Channels and Mass markets business segments. It is currently in the middle of a time-consuming business transformation initiative. We expect revenues for 2023 to decline 17.3% year over year.
LUMN has undertaken a business transformation initiative whereby it has shed many non-core businesses to focus only on its robust growth opportunities. In August 2022, it sold its Latin American business to Stonepeak for $2.7 billion. It also completed the $7.5 billion divestiture of its 20-state ILEC business in October 2022. The company offloaded its Europe, Middle East and Asia (EMEA) business to Colt Technology Services for $1.8 billion in November 2023. It also sold a few of its content delivery network (CDN) service contracts to Akamai Technologies.
Nonetheless, continued momentum in cloud, colocation and intellectual property augurs well, along with heavy investment in the Quantum fiber business. The firm had 896,000 quantum fiber subscribers at the end of the third quarter.
Lumen currently carries a Zacks Rank #4 (Sell). Shares of the company have lost 66.6% against the sub-industry’s growth of 45.5% in the past year.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks worth consideration in the broader technology space are Blackbaud BLKB, NETGEAR NTGR and Watts Water Technologies WTS. While Watts Water Technologies sports a Zacks Rank #1 (Strong Buy), Blackbaud and NETGEAR, each carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Blackbaud’s 2023 EPS improved 1.8% in the past 60 days to $3.86. BLKB’s long-term earnings growth rate is 23.4%.
Blackbaud’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 10.6%. Shares of BLKB surged 49.8% in the past year.
The Zacks Consensus for NETGEAR’s 2023 EPS has remained unchanged in the past 30 days at a loss of 9 cents. NTGR’s earnings outpaced the Zacks Consensus Estimate in three of the last four quarters while missing in the remaining quarter. The average surprise was 127.5%. Shares of NTGR were down 19.4% in the past year.
The Zacks Consensus Estimate for Watts Water Technologies 2023 EPS has improved by 3.9% in the past 60 days to $8.08.
WTS’ earnings outpaced the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 11.8%. Shares of WTS jumped 40.9% 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
NETGEAR, Inc. (NTGR) : Free Stock Analysis Report
Blackbaud, Inc. (BLKB) : Free Stock Analysis Report
Watts Water Technologies, Inc. (WTS) : Free Stock Analysis Report
Lumen Technologies, Inc. (LUMN) : 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 offloaded its Europe, Middle East and Asia (EMEA) business to Colt Technology Services for $1.8 billion in November 2023. Nonetheless, continued momentum in cloud, colocation and intellectual property augurs well, along with heavy investment in the Quantum fiber business. 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 Stocks to Consider Some better-ranked stocks worth consideration in the broader technology space are Blackbaud BLKB, NETGEAR NTGR and Watts Water Technologies WTS. While Watts Water Technologies sports a Zacks Rank #1 (Strong Buy), Blackbaud and NETGEAR, each carry a Zacks Rank #2 (Buy). Click to get this free report NETGEAR, Inc. (NTGR) : Free Stock Analysis Report Blackbaud, Inc. (BLKB) : Free Stock Analysis Report Watts Water Technologies, Inc. (WTS) : Free Stock Analysis Report Lumen Technologies, Inc. (LUMN) : Free Stock Analysis Report To read this article on Zacks.com click here. | Lumen Technologies, Inc. Price and Consensus Lumen Technologies, Inc. price-consensus-chart | Lumen Technologies, Inc. Quote As of Sep 30, 2023, the company had $311 million in cash and cash equivalents with $19,740 million of long-term debt compared with the respective figures of $411 million and $19,899 million as of Jun 30, 2023. Image Source: Zacks Investment Research Stocks to Consider Some better-ranked stocks worth consideration in the broader technology space are Blackbaud BLKB, NETGEAR NTGR and Watts Water Technologies WTS. Click to get this free report NETGEAR, Inc. (NTGR) : Free Stock Analysis Report Blackbaud, Inc. (BLKB) : Free Stock Analysis Report Watts Water Technologies, Inc. (WTS) : Free Stock Analysis Report Lumen Technologies, Inc. (LUMN) : Free Stock Analysis Report To read this article on Zacks.com click here. | Lumen Technologies LUMN is requesting more time from creditors to conclude its debt restructuring deal, per a report from Bloomberg. NTGR’s earnings outpaced the Zacks Consensus Estimate in three of the last four quarters while missing in the remaining quarter. Be First to New Top 10 Stocks >> Want the latest recommendations from Zacks Investment Research? | 2c272751-14e2-4f1c-bc17-3e1571074ce4 |
710461.0 | 2023-12-16 20:00:00 UTC | CANADA STOCKS-TSX futures rise on higher commodity prices | DCOMP | https://www.nasdaq.com/articles/canada-stocks-tsx-futures-rise-on-higher-commodity-prices-1 | nan | nan | Dec 20 (Reuters) - Futures tied to Canada's resources-heavy main stock index were marginally higher on Wednesday as crude oil prices rose while gains in base metal prices posed an upside.
March futures on the S&P/TSX index SXFc1 were up 0.1% at 7:12 a.m. ET (1212 GMT), while their U.S. counterparts fell. .N
Crude oil prices rose amid jitters over global trade disruptions and geopolitical tensions in the Middle East following attacks on ships by Yemen's Iran-aligned Houthi forces in the Red Sea. O/R
Prices of most base metals were on the rise, while gold remained mostly flat. GOL/MET/L
Energy and materials companies combined make up just over 30% of the benchmark Canadian stock index, as per LSEG data.
The release of monetary policy deliberations from the Bank of Canada's last meeting - where the central bank had held its rates steady - is due later in the day and would be on investor radar.
The market is also awaiting data sets on Canada's October Gross Domestic Product (GDP) and retail sales due later in the week.
Across the border, the United States' December consumer confidence figure, a final estimate of third-quarter GDP and November Personal Consumption Expenditure index (PCE) - the U.S. Federal Reserve's preferred inflation gauge, would be awaited during the week.
The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE touched its highest level since June 2022 in the previous session, with financial stocks leading gains.
Among individual stocks to look out for, brokerage National Bank of Canada upgraded both Bank of Montreal BMO.TO and Canadian Imperial Bank of Commerce CM.TO to "outperform" from "sector perform".
Separately, Barclays initiated coverage on fintech company Nuvei Corp NVEI.TO with an "overweight" rating.
COMMODITIES AT 7:12 a.m. ET
Gold futures GCc2: $2,037.7; -0.2% GOL/
US crude CLc1: $74.92; +1.3% O/R
Brent crude LCOc1: $80.15; +1.2% O/R
($1= C$1.3339)
(Reporting by Shashwat Chauhan in Bengaluru: Editing by Tasim Zahid)
((Shashwat.Chauhan@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | .N Crude oil prices rose amid jitters over global trade disruptions and geopolitical tensions in the Middle East following attacks on ships by Yemen's Iran-aligned Houthi forces in the Red Sea. The market is also awaiting data sets on Canada's October Gross Domestic Product (GDP) and retail sales due later in the week. Across the border, the United States' December consumer confidence figure, a final estimate of third-quarter GDP and November Personal Consumption Expenditure index (PCE) - the U.S. Federal Reserve's preferred inflation gauge, would be awaited during the week. | Dec 20 (Reuters) - Futures tied to Canada's resources-heavy main stock index were marginally higher on Wednesday as crude oil prices rose while gains in base metal prices posed an upside. .N Crude oil prices rose amid jitters over global trade disruptions and geopolitical tensions in the Middle East following attacks on ships by Yemen's Iran-aligned Houthi forces in the Red Sea. ET Gold futures GCc2: $2,037.7; -0.2% GOL/ US crude CLc1: $74.92; +1.3% O/R Brent crude LCOc1: $80.15; +1.2% O/R | Dec 20 (Reuters) - Futures tied to Canada's resources-heavy main stock index were marginally higher on Wednesday as crude oil prices rose while gains in base metal prices posed an upside. The release of monetary policy deliberations from the Bank of Canada's last meeting - where the central bank had held its rates steady - is due later in the day and would be on investor radar. Among individual stocks to look out for, brokerage National Bank of Canada upgraded both Bank of Montreal BMO.TO and Canadian Imperial Bank of Commerce CM.TO to "outperform" from "sector perform". | Dec 20 (Reuters) - Futures tied to Canada's resources-heavy main stock index were marginally higher on Wednesday as crude oil prices rose while gains in base metal prices posed an upside. ET (1212 GMT), while their U.S. counterparts fell. ET Gold futures GCc2: $2,037.7; -0.2% GOL/ US crude CLc1: $74.92; +1.3% O/R Brent crude LCOc1: $80.15; +1.2% O/R | 30e743be-345c-45c7-b483-447da2e74a59 |
710462.0 | 2023-12-16 20:00:00 UTC | Can Dogs of the Dow ETFs Snap Losing Trend in 2024? | DCOMP | https://www.nasdaq.com/articles/can-dogs-of-the-dow-etfs-snap-losing-trend-in-2024 | nan | nan | The Dogs of the Dow in 2023 are up an average of just 2.8%, lagging the market by the widest amount since 2006, per Bespoke Investment Group, as quoted on Investors Business Daily. But more importantly, the Dogs of the Dow trailed the market in four of the past five years, Bespoke found.
Investors should note that the Dogs of the Dow represents the 10 highest-yielding blue-chip companies of the Dow Jones Industrial Average, picked after the stock market closes on the last day of the year. The stocks that form the Dogs of the Dow are likely to change every year because the relative dividend yields keep changing, thanks to the components’ regular dividend hikes and the changes in stock prices.
So, the outperformers often leave the Dogs list, allowing stocks that are in the oversold territory and that have seen their yields rising. Dividend stocks essentially erased their strong 2022 returns this year as 2023 can be defined as the year of strong Wall Street gains.Invesco Dow Jones Industrial Average Dividend ETF DJD is up 4.5% this year versus 24.2% gains in the S&P 500.
Investors now may try to foresee what lies ahead of Dogs of Dow in 2024. This is especially true given the Dow Jones hit a record high lately. The blue-chip index is in strong momentum just ahead of the Santa Claus rally.
Can Dogs of the Dow ETF Strategy Outperform in 2024?
The strength of the Dow Dogs weakened in 2023 as rates remained high. Apart from the Federal Reserve's rate hikes, increasing inflationary pressures caused a rise in Treasury bond yields, casting a pall over the Dogs. But with the Fed expected to cut rates 75 bps in 2024, dividend stocks have chances for a solid comeback.
Dividend Dogs of The Dow
You can invest in individual stocks with high dividends for potential gains. As of now, analysts highly recommend Chevron CVX for the upcoming year. This energy company offers a 4.04% yield, significantly exceeding the S&P 500's average. Based on short-term price targets offered by 17 analysts, the average price target for Chevron comes to $182.88. This equates to a 22.18% upside potential for the stock.
Then comes Verizon Communications VZ. Based on short-term price targets offered by 17 analysts, the average price target for Verizon Communications comes to $41.26, resulting in 9.53% upside potential. Verizon yields 7.06% annually.
Dow DOW yields 5.16% annually. Based on short-term price targets offered by 13 analysts, the average price target for Dow Inc. comes to $56.15, resulting in 6.50% upside potential.
3M MMM yields 5.67% annually. Based on short-term price targets offered by 12 analysts, the average price target for 3M comes to $109.75, marking a 3.7% upside potential.
Coca-Cola KO yields 3.12% annually. Based on short-term price targets offered by 15 analysts, the average price target for Coca-Cola comes to $65.33, marking a 1069% upside to average price target.
The Goldman Sachs Group GS yields 2.92% annually. Based on short-term price targets offered by 18 analysts, the average price target for Goldman Sachs comes to $393.44. This translates into a 4.53% upside to the average price target.
Amgen AMGN yields 3.09% annually. Based on short-term price targets offered by 18 analysts, Amgen stock has an upside potential of 2.08% to average price target.
Although Walgreens Boots Alliance WBA has a Zacks Rank #4 (Sell), the stock yields 7.69% annually. Based on short-term price targets offered by 13 analysts, the average price target for Walgreens Boots Alliance comes to $28.31. Upside to average price target is 13.33%, though risk is high.
Then again, Cisco Systems CSCO has a Zacks Rank #4 and a yield of 3.11%. Upside to average price target offered by 15 analysts is 10.53% (read: Dow Jones ETFs at Record High: More Rally Expected in 2024?).
ETFs in Focus
Apart from DJD, investors can keep a tab on ALPS Sector Dividend Dogs ETF SDOG and SPDR Portfolio S&P 500 High Dividend ETF SPYD. While DJD yields 4.37%, SPYD and SDOG yield 4.72% and 4.14% annually.
Any Caution?
Apart from rising rate concerns, several factors should now be kept in mind to bet on dividend dogs. The attractive dividend yield does not necessarily suggest these companies’ financial strength. They could be in the bottom of the business cycle. Also, the high yield can be the result of lower stock prices. An analyst also pointed out that the "Dogs of the Dow" strategy does not consider share buybacks, “which are functionally equivalent.”
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Invesco Dow Jones Industrial Average Dividend ETF (DJD): ETF Research Reports
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ALPS Sector Dividend Dogs ETF (SDOG): ETF Research Reports
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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 Dogs of the Dow in 2023 are up an average of just 2.8%, lagging the market by the widest amount since 2006, per Bespoke Investment Group, as quoted on Investors Business Daily. Apart from the Federal Reserve's rate hikes, increasing inflationary pressures caused a rise in Treasury bond yields, casting a pall over the Dogs. An analyst also pointed out that the "Dogs of the Dow" strategy does not consider share buybacks, “which are functionally equivalent.” Want key ETF info delivered straight to your inbox? | Based on short-term price targets offered by 15 analysts, the average price target for Coca-Cola comes to $65.33, marking a 1069% upside to average price target. Upside to average price target offered by 15 analysts is 10.53% (read: Dow Jones ETFs at Record High: More Rally Expected in 2024?). Click to get this free report The Goldman Sachs Group, Inc. (GS) : Free Stock Analysis Report Chevron Corporation (CVX) : Free Stock Analysis Report CocaCola Company (The) (KO) : Free Stock Analysis Report Verizon Communications Inc. (VZ) : Free Stock Analysis Report Cisco Systems, Inc. (CSCO) : Free Stock Analysis Report Amgen Inc. (AMGN) : Free Stock Analysis Report 3M Company (MMM) : Free Stock Analysis Report Dow Inc. (DOW) : Free Stock Analysis Report Walgreens Boots Alliance, Inc. (WBA) : Free Stock Analysis Report Invesco Dow Jones Industrial Average Dividend ETF (DJD): ETF Research Reports SPDR Portfolio S&P 500 High Dividend ETF (SPYD): ETF Research Reports ALPS Sector Dividend Dogs ETF (SDOG): ETF Research Reports To read this article on Zacks.com click here. | The stocks that form the Dogs of the Dow are likely to change every year because the relative dividend yields keep changing, thanks to the components’ regular dividend hikes and the changes in stock prices. Based on short-term price targets offered by 15 analysts, the average price target for Coca-Cola comes to $65.33, marking a 1069% upside to average price target. Click to get this free report The Goldman Sachs Group, Inc. (GS) : Free Stock Analysis Report Chevron Corporation (CVX) : Free Stock Analysis Report CocaCola Company (The) (KO) : Free Stock Analysis Report Verizon Communications Inc. (VZ) : Free Stock Analysis Report Cisco Systems, Inc. (CSCO) : Free Stock Analysis Report Amgen Inc. (AMGN) : Free Stock Analysis Report 3M Company (MMM) : Free Stock Analysis Report Dow Inc. (DOW) : Free Stock Analysis Report Walgreens Boots Alliance, Inc. (WBA) : Free Stock Analysis Report Invesco Dow Jones Industrial Average Dividend ETF (DJD): ETF Research Reports SPDR Portfolio S&P 500 High Dividend ETF (SPYD): ETF Research Reports ALPS Sector Dividend Dogs ETF (SDOG): ETF Research Reports To read this article on Zacks.com click here. | Dividend Dogs of The Dow You can invest in individual stocks with high dividends for potential gains. Dow DOW yields 5.16% annually. Upside to average price target offered by 15 analysts is 10.53% (read: Dow Jones ETFs at Record High: More Rally Expected in 2024?). | 97dd9d2b-9951-49a0-9fc6-a7970b28fed0 |
710463.0 | 2023-12-16 20:00:00 UTC | Bet on These 4 Top-Ranked Stocks With Solid Net Profit Margin | DCOMP | https://www.nasdaq.com/articles/bet-on-these-4-top-ranked-stocks-with-solid-net-profit-margin-0 | nan | nan | The primary purpose of a business is to generate profits that can be reinvested in expansion or utilized for rewarding shareholders. Net profit margin is an effective tool to measure the profits reaped by a business.
A higher net margin underlines a company’s efficiency in translating sales into actual profits. Moreover, this metric gives insight into how well a company is run and the headwinds weighing on it. Virco Manufacturing Corporation VIRC, EMCOR Group, Inc. EME, Photronics, Inc. PLAB and Limbach Holdings, Inc. LMB boast solid net profit margins.
Net Profit Margin = Net profit/Sales * 100.
In simple terms, net profit is the amount a company retains after deducting all costs, interest, depreciation, taxes and other expenses. In fact, net profit margin can turn out to be a potent point of reference to gauge the strength of a company’s operations and its cost-control measures.
Also, higher net profit is essential for rewarding stakeholders. Further, strength in the metric not only attracts investors but also draws well-skilled employees who eventually enhance the value of a business.
Moreover, a higher net profit margin compared with its peers provides a company with a competitive edge.
Pros and Cons
Net profit margin helps investors gain clarity on a company’s business model in terms of pricing policy, cost structure and manufacturing efficiency. Hence, a strong net profit margin is preferred by all classes of investors.
However, net profit margin, as an investment criterion, has its share of pitfalls. The metric varies widely from industry to industry. While net income is a key metric for investment measurement in traditional industries, it is not that important for technology companies.
In addition, the difference in accounting treatment of various items — especially non-cash expenses like depreciation and stock-based compensation — makes comparison a daunting task.
Furthermore, for companies preferring to grow with debt instead of equity funding, higher interest expenses usually weigh on net profit. In such cases, the measure is rendered ineffective while analyzing a company’s performance.
The Winning Strategy
A healthy net profit margin and solid EPS growth are the two most sought-after elements in a business model.
Apart from these, we have added a few criteria to ensure maximum returns from this strategy.
Screening Parameters
Net Margin 12 months – Most Recent (%) greater than equal to 0: High net profit margin indicates solid profitability.
Percentage Change in EPS F(0)/(F-1) greater than equal to 0: It indicates earnings growth.
Average Broker Rating (1-5) equal to 1: A rating of #1 indicates brokers’ extreme bullishness on the stock.
Zacks Rank less than or equal to 2: Stocks with a Zacks Rank #1 (Strong Buy) or 2 (Buy) generally perform better than their peers in all types of market environments. You can see the complete list of today’s Zacks #1 Rank stocks here.
VGM Score of A or B: Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 or 2, offer the best upside potential.
Here, we have picked four stocks — Virco Manufacturing, EMCOR Group, Photronics, and Limbach — from the 35 stocks that qualified the screening.
Virco Manufacturing designs, produces and distributes quality furniture for the contract and education markets worldwide. The stock sports a Zacks Rank #1 and has a VGM Score of A.
The Zacks Consensus Estimate for Virco Manufacturing’s fiscal 2024 earnings has moved 20.5% north in the past 30 days and currently stands at $1.35 per share. Virco Manufacturing surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 188.6%.
EMCOR Group is one of the leading providers of mechanical and electrical construction, industrial and energy infrastructure, as well as building services for a diverse range of businesses. The company serves commercial, industrial, utility and institutional clients. At present, the stock flaunts a Zacks Rank #1 and has a VGM Score of A.
The Zacks Consensus Estimate for EMCOR Group’s current-year earnings has moved up by 12.9% to $12.38 per share in the past 60 days. EME surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 25%.
Photronics is a leading worldwide manufacturer of photomasks. Photomasks are high-precision quartz plates that contain microscopic images of electronic circuits. A key element in the manufacture of semiconductors and flat panel displays, photomasks are used to transfer circuit patterns onto semiconductor wafers and flat panel substrates during the fabrication of integrated circuits, a variety of flat panel displays and, to a lesser extent, other types of electrical and optical components. At present, the stock sports a Zacks Rank #1 and has a VGM Score of A.
The Zacks Consensus Estimate for Photronics’ fiscal 2024 earnings has moved up by 15.6% to $2.60 per share in the past seven days. PLAB surpassed the Zacks Consensus Estimate thrice in the trailing four quarters while missing the same on one occasion, the average surprise being 8.5%.
Limbach provides building systems. The company engineers, constructs and services the mechanical, plumbing, air conditioning, heating, building automation, electrical and control systems. At present, the stock sports a Zacks Rank #1 and has a VGM Score of B.
The Zacks Consensus Estimate for Limbach’s current-year earnings has moved up to $1.75 per share from $1.36 60 days ago. LMB surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 92.1%.
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Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
Disclosure: Performance information for Zacks' portfolios and strategies are available at: https://www.zacks.com/performance/.
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. | Virco Manufacturing Corporation VIRC, EMCOR Group, Inc. EME, Photronics, Inc. PLAB and Limbach Holdings, Inc. LMB boast solid net profit margins. Pros and Cons Net profit margin helps investors gain clarity on a company’s business model in terms of pricing policy, cost structure and manufacturing efficiency. EMCOR Group is one of the leading providers of mechanical and electrical construction, industrial and energy infrastructure, as well as building services for a diverse range of businesses. | Virco Manufacturing Corporation VIRC, EMCOR Group, Inc. EME, Photronics, Inc. PLAB and Limbach Holdings, Inc. LMB boast solid net profit margins. Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. Click to get this free report EMCOR Group, Inc. (EME) : Free Stock Analysis Report Photronics, Inc. (PLAB) : Free Stock Analysis Report Virco Manufacturing Corporation (VIRC) : Free Stock Analysis Report Limbach Holdings, Inc. (LMB) : Free Stock Analysis Report To read this article on Zacks.com click here. | Screening Parameters Net Margin 12 months – Most Recent (%) greater than equal to 0: High net profit margin indicates solid profitability. Zacks Rank less than or equal to 2: Stocks with a Zacks Rank #1 (Strong Buy) or 2 (Buy) generally perform better than their peers in all types of market environments. Click to get this free report EMCOR Group, Inc. (EME) : Free Stock Analysis Report Photronics, Inc. (PLAB) : Free Stock Analysis Report Virco Manufacturing Corporation (VIRC) : Free Stock Analysis Report Limbach Holdings, Inc. (LMB) : Free Stock Analysis Report To read this article on Zacks.com click here. | Net profit margin is an effective tool to measure the profits reaped by a business. Zacks Rank less than or equal to 2: Stocks with a Zacks Rank #1 (Strong Buy) or 2 (Buy) generally perform better than their peers in all types of market environments. Disclosure: Performance information for Zacks' portfolios and strategies are available at: https://www.zacks.com/performance/. | 157107bc-f270-475b-a5c9-e4c93c1706d2 |
710464.0 | 2023-12-16 20:00:00 UTC | General Mills cuts annual sales forecast on slowing demand | DCOMP | https://www.nasdaq.com/articles/general-mills-cuts-annual-sales-forecast-on-slowing-demand | nan | nan | Adds shares, background
Dec 20 (Reuters) - General Mills GIS.N cut its annual sales forecast on Wednesday, hurt by slowing demand for its higher-priced breakfast cereals, snack bars and pet food products.
Shares of the Cheerios cereal maker were down 1% in premarket trading after it also missed second-quarter sales expectations.
High interest rates and sticky inflation are prompting consumers to opt for pantry staples from cheaper private-label alternatives to pricier national brands.
Repeated price hikes, undertaken to offset high input costs, have also pushed consumers to shop smaller pack and basket sizes in a hit to sales for General Mills.
The company forecast fiscal 2024 organic net sales between down 1% and flat, from a year earlier, compared with its earlier forecast for growth of 3% to 4%. Analysts expected growth of 2.4%, according to LSEG data.
Its net sales fell 2% to $5.14 billion, below estimates of $5.35 billion.
(Reporting by Annett Mary Manoj and Juveria Tabassum in Bengaluru; Editing by Devika Syamnath)
((AnnettMary.Manoj@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Adds shares, background Dec 20 (Reuters) - General Mills GIS.N cut its annual sales forecast on Wednesday, hurt by slowing demand for its higher-priced breakfast cereals, snack bars and pet food products. High interest rates and sticky inflation are prompting consumers to opt for pantry staples from cheaper private-label alternatives to pricier national brands. Repeated price hikes, undertaken to offset high input costs, have also pushed consumers to shop smaller pack and basket sizes in a hit to sales for General Mills. | Adds shares, background Dec 20 (Reuters) - General Mills GIS.N cut its annual sales forecast on Wednesday, hurt by slowing demand for its higher-priced breakfast cereals, snack bars and pet food products. Shares of the Cheerios cereal maker were down 1% in premarket trading after it also missed second-quarter sales expectations. Repeated price hikes, undertaken to offset high input costs, have also pushed consumers to shop smaller pack and basket sizes in a hit to sales for General Mills. | Adds shares, background Dec 20 (Reuters) - General Mills GIS.N cut its annual sales forecast on Wednesday, hurt by slowing demand for its higher-priced breakfast cereals, snack bars and pet food products. Repeated price hikes, undertaken to offset high input costs, have also pushed consumers to shop smaller pack and basket sizes in a hit to sales for General Mills. The company forecast fiscal 2024 organic net sales between down 1% and flat, from a year earlier, compared with its earlier forecast for growth of 3% to 4%. | Adds shares, background Dec 20 (Reuters) - General Mills GIS.N cut its annual sales forecast on Wednesday, hurt by slowing demand for its higher-priced breakfast cereals, snack bars and pet food products. Shares of the Cheerios cereal maker were down 1% in premarket trading after it also missed second-quarter sales expectations. High interest rates and sticky inflation are prompting consumers to opt for pantry staples from cheaper private-label alternatives to pricier national brands. | 468e17d2-f2f0-46d4-ab5a-407938b31de6 |
710465.0 | 2023-12-16 20:00:00 UTC | Better Growth Stock: Canopy Growth vs. Tilray Brands | DCOMP | https://www.nasdaq.com/articles/better-growth-stock%3A-canopy-growth-vs.-tilray-brands | nan | nan | The cannabis industry is full of risk but also full of opportunities. Globally, the pot market is expanding at an impressive compound annual growth rate of 34%, according to Fortune Business Insights. Analysts project that by the end of the decade, the cannabis market could be worth more than $444 billion (compared with $57 billion in 2023).
With such promising growth prospects, it's easy to get caught up in the excitement surrounding those opportunities. Two of the top cannabis stocks on the Nasdaq today are Canopy Growth (NASDAQ: CGC) and Tilray Brands (NASDAQ: TLRY). Here's a look at which one of these marijuana investments could make for the better growth stock.
The case for Canopy Growth
Canopy Growth's focus over the years has been the U.S. pot market. And even though it isn't able to enter the market today, it has been taking steps to ready itself should legalization in the U.S. take place. Canopy Growth has been scaling back on its Canadian operations to reduce its expenses and footprint. It's getting smaller in preparation for when it becomes much bigger. At the same time, it has been working on trying to find a way to house its U.S. interests in a special purpose vehicle, Canopy USA.
Although these moves don't do anything for the business today, they potentially set up Canopy Growth to be in a better position down the road. In the company's most recent quarter, Canopy Growth said that it was the third consecutive period in which its Canadian cannabis operations generated positive organic growth while also reducing expenses.
Meanwhile, during the past six months, the company's rate of cash burn has slowed. Cash used in operational activities totaled 227.3 million Canadian dollars ($170 million) versus CA$273.9 million in the prior-year period. Plus, with Canopy Growth getting rid of its sports drink business BioSteel, which it says was a cash-burning segment, that should further improve the company's rate of cash burn.
By improving its financials, including slowing its cash burn rate, Canopy Growth puts itself in a better financial position, which can help it pursue growth opportunities in the U.S. market if and when it eventually opens up.
The case for Tilray Brands
Rather than waiting for the U.S. cannabis market to open for business, Tilray Brands has been looking for ways to expand today. This includes acquiring U.S. beverage brands to help diversify its operations. Earlier this year, Tilray agreed to buy eight brands from beer giant Anheuser-Busch InBev. Through the acquisition, Tilray has become one of the top five craft brewers in the U.S.
Tilray has also been looking at opportunities in the European cannabis market. Tilray's medical products are available in more than 20 countries, including Portugal and Germany. In April, the company said that it was expanding its operations across the Czech Republic.
As Tilray has been focusing on expanding, it has also been posting encouraging results. For the period ended Aug. 31, the company increased its Canadian cannabis revenue and its international sales by 16.5% and 37%, respectively. It also claimed to have the top spot in the Canadian pot market, with market share of 13.4%. Its rate of quarterly cash burn has also improved, with Tilray using up just $15.8 million in cash from operating activities in the most recent period versus $46.3 million in the year-ago period.
Tilray is the clear winner
Both of these businesses are risky investments given they are still burning cash. But in terms of being a better growth stock, Tilray is hands down the superior option. The company is making diversification moves and is working on expanding into markets where there are opportunities for long-term growth. Canopy Growth's plan centers around a U.S. market that may not be legalized anytime soon. It's a much riskier strategy.
If you're choosing between these two pot stocks, Tilray Brands is the better option for growth-oriented investors.
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David Jagielski has no position in any of the stocks mentioned. The Motley Fool recommends Nasdaq and Tilray Brands. 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. | Globally, the pot market is expanding at an impressive compound annual growth rate of 34%, according to Fortune Business Insights. At the same time, it has been working on trying to find a way to house its U.S. interests in a special purpose vehicle, Canopy USA. Plus, with Canopy Growth getting rid of its sports drink business BioSteel, which it says was a cash-burning segment, that should further improve the company's rate of cash burn. | Two of the top cannabis stocks on the Nasdaq today are Canopy Growth (NASDAQ: CGC) and Tilray Brands (NASDAQ: TLRY). By improving its financials, including slowing its cash burn rate, Canopy Growth puts itself in a better financial position, which can help it pursue growth opportunities in the U.S. market if and when it eventually opens up. Its rate of quarterly cash burn has also improved, with Tilray using up just $15.8 million in cash from operating activities in the most recent period versus $46.3 million in the year-ago period. | Two of the top cannabis stocks on the Nasdaq today are Canopy Growth (NASDAQ: CGC) and Tilray Brands (NASDAQ: TLRY). The case for Tilray Brands Rather than waiting for the U.S. cannabis market to open for business, Tilray Brands has been looking for ways to expand today. Before you buy stock in Tilray Brands, 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 Tilray Brands wasn't one of them. | The case for Canopy Growth Canopy Growth's focus over the years has been the U.S. pot market. The case for Tilray Brands Rather than waiting for the U.S. cannabis market to open for business, Tilray Brands has been looking for ways to expand today. Before you buy stock in Tilray Brands, 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 Tilray Brands wasn't one of them. | 132320af-13a8-4165-823d-a85bb951200d |
710466.0 | 2023-12-16 20:00:00 UTC | 2 Red-Hot Artificial Intelligence (AI) Stocks to Buy in 2023 and Beyond | DCOMP | https://www.nasdaq.com/articles/2-red-hot-artificial-intelligence-ai-stocks-to-buy-in-2023-and-beyond | nan | nan | Artificial Intelligence (AI) has undoubtedly been the major investment theme of 2023. Unsurprisingly, the improved investor sentiment will also positively impact several AI stocks. However, investors should only consider AI-powered companies with robust fundamentals and high-quality business models, especially if they are interested in long-term gains.
Here's why Microsoft (NASDAQ: MSFT) and Snowflake (NYSE: SNOW) fit the bill.
Microsoft
Since the 90s, Microsoft's name has been synonymous with the Windows operating system and Office productivity suite. However, lately, the company has become more famous for its Azure cloud computing platform and partnership with ChatGPT developer OpenAI.
Although the past few quarters saw enterprises increasingly optimizing cloud spending, the trend seems to have started normalizing. Of course, the Microsoft Azure cloud computing business continues to be a major beneficiary of enterprises either shifting their workloads to the cloud or starting new AI-optimized workloads on the cloud.
Microsoft has integrated many OpenAI technologies into Azure to launch the Azure OpenAI service, enabling developers to build advanced AI applications using OpenAI's large language models (LLMs) and Azure's cloud-based AI infrastructure. The Microsoft-OpenAI partnership has also made Azure the exclusive cloud provider for all OpenAI's workloads.
Subsequently, Azure saw revenue soar by 29% year over year in its fiscal 2024's first quarter (ended Sep. 30, 2023), of which three percentage points' growth was attributed to Azure AI services. The company saw improved per-user business and higher graphics processing unit (GPU) capacity and utilization for its Azure AI business in the first quarter.
Lately, Microsoft has also expanded its partnership with Oracle to enable customers to deploy mission-critical Oracle databases on Microsoft Azure data centers. This deal can bring even more customers to Microsoft's cloud platform. Further, the company has introduced two custom silicon chips, Azure Maia 100 and Cobalt 100, designed to power its Azure data centers for training LLMs. This move will help reduce Microsoft's reliance on external chip vendors.
While solid demand for AI services is a major growth catalyst for Azure, Microsoft's personal computing business may also start recovering in line with the wider PC market in 2024. The company made Microsoft 365 Copilot, an AI assistant for its Microsoft 365 product suite, available to all enterprises starting in November.
With 40% of the Fortune 100 companies already using the AI assistant in preview mode, demand for Microsoft 365 Copilot looks to be strong. Priced at $30 per user per month, Microsoft 365 Copilot can also be a major revenue stream for the company in the coming months. These tailwinds make Microsoft a compelling pick in 2024.
Snowflake
Once an on-premise enterprise data warehouse for structured data, Snowflake has transformed itself into a cloud-native data platform. The platform helps organizations consolidate, store, and manage structured and unstructured data and workloads across departments, functions, and applications in the cloud. Snowflake also enables clients to process and share this proprietary data at scale to derive business insights for informed decision-making.
Since the launch of ChatGPT, more and more enterprises have become interested in generative AI technologies. These companies are increasingly building LLMs to power customized generative AI applications. With its highly curated, secure, optimized enterprise data repository, organizations are using Snowflake's data platform to train LLMs on huge amounts of high-quality data.
Snowflake's Data Marketplace, which enables clients to share proprietary data (buy, trade, or provide free access), is also pivotal in helping build more robust AI applications. In fact, 28% of its total customer data was shared in the third quarter of its fiscal 2024 (ended Oct. 31, 2023), up from 22% in the same quarter of the prior year.
The data-sharing activity was even more pronounced among the high-value customers, considering 73% of customers contributing $1 million or more in revenues shared data in the third quarter, up from 67% in the same quarter of the prior year. The data-sharing capability has not only made Snowflake's data platform more useful but also increased the customers' cost of switching to competitors. The data marketplace has also created a strong network effect for the company since it attracts more customers to join the platform, expanding Snowflake's data repository.
Furthermore, instead of resting on its past laurels, Snowflake is further innovating to benefit effectively from the AI opportunity. The company recently introduced a fully managed service, Snowflake Cortex, to allow organizations to analyze data and build AI applications. The company's Document AI helps clients convert unstructured data into semi-structured data, thereby making it capable of analytical processing.
Snowflake expects the target addressable market for cloud data platforms to be worth $248 billion by calendar 2026. With its extensive focus on data management and AI services and an annual run rate of around $2.6 billion, there is still significant future growth potential left for the company.
Should you invest $1,000 in Microsoft right now?
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Manali Bhade has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Microsoft, Oracle, and Snowflake. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | While solid demand for AI services is a major growth catalyst for Azure, Microsoft's personal computing business may also start recovering in line with the wider PC market in 2024. The company recently introduced a fully managed service, Snowflake Cortex, to allow organizations to analyze data and build AI applications. With its extensive focus on data management and AI services and an annual run rate of around $2.6 billion, there is still significant future growth potential left for the company. | Microsoft has integrated many OpenAI technologies into Azure to launch the Azure OpenAI service, enabling developers to build advanced AI applications using OpenAI's large language models (LLMs) and Azure's cloud-based AI infrastructure. These companies are increasingly building LLMs to power customized generative AI applications. With its highly curated, secure, optimized enterprise data repository, organizations are using Snowflake's data platform to train LLMs on huge amounts of high-quality data. | Microsoft has integrated many OpenAI technologies into Azure to launch the Azure OpenAI service, enabling developers to build advanced AI applications using OpenAI's large language models (LLMs) and Azure's cloud-based AI infrastructure. Snowflake Once an on-premise enterprise data warehouse for structured data, Snowflake has transformed itself into a cloud-native data platform. Before you buy stock in Microsoft, 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 Microsoft wasn't one of them. | Microsoft has integrated many OpenAI technologies into Azure to launch the Azure OpenAI service, enabling developers to build advanced AI applications using OpenAI's large language models (LLMs) and Azure's cloud-based AI infrastructure. The data marketplace has also created a strong network effect for the company since it attracts more customers to join the platform, expanding Snowflake's data repository. Before you buy stock in Microsoft, 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 Microsoft wasn't one of them. | bb8b953d-587c-46a3-806a-95d109328fa3 |
710467.0 | 2023-12-16 20:00:00 UTC | Is C3.ai a Buy? | DCOMP | https://www.nasdaq.com/articles/is-c3.ai-a-buy-1 | nan | nan | C3.ai (NYSE: AI) has been one of 2023's top-performing artificial intelligence (AI) stocks. It's up around 180% this year, but is down about 30% from its high set in June. With 2024 shaping up to be another strong year for AI-related companies, investors may wonder if this is a buying opportunity for C3.ai.
The government is becoming a large C3.ai customer
C3.ai specializes in plug-and-play AI solutions for enterprise-level customers. With products ranging from energy management, demand forecasting, and anti-money laundering, C3.ai has solutions spanning multiple industries.
However, one of C3.ai's most lucrative clients in recent quarters has been the federal government. In its fiscal 2024 second quarter, which ended Oct. 31, 49% of bookings came from its federal, defense, and aerospace segment. In Q1, that share was 67%. Clearly, C3.ai's relationship with the U.S. government is a vital part of its business, making this a key metric to watch.
It also reflects the company's diversification away from the oil and natural gas industry, which accounted for 34% of bookings in its fiscal 2023. (That year, federal, aerospace, and defense was 29%.) This is good, as oil and natural gas industry spending has dried up for C3.ai. In its fiscal Q1, only 1.5% of its bookings came from that space, and it reported no explicit bookings from it in Q2, though the results possibly landed in the "others" category, which comprised 0.1% of bookings.
This shouldn't come as a surprise, as a short report in 2023 alleged that C3.ai's partnership with oil and natural gas giant Baker Hughes was "falling apart." The most recent data from C3.ai's earnings reports seem to confirm this (we'll need to wait a full fiscal year for complete clarity due to the company's sales cycles), but with C3.ai's government contracts making up the ground, the loss of that business isn't dealing as severe a blow to its finances as it otherwise might.
Still, it shows that C3.ai has once again become dependent on a single client -- a massive risk source if the relationship sours.
Speaking of finances, C3.ai's are... interesting.
C3.ai spends a lot of money on a relatively low growth rate
Given that it's an AI-based company, you'd expect C3.ai would be growing rapidly, but that's far from the truth. In fiscal 2024 Q2, its total revenue rose 17%, with subscription revenue only rising 12%. It also guided for $76 million in revenue for fiscal Q3 -- about a 14% growth rate. While that's still market-beating growth, it isn't as fast as many would expect for a major player in a growing industry.
That growth rate also isn't going to cut it, as C3.ai is deeply unprofitable.
In fiscal Q2, C3.ai's cost of revenue and operating expenses totaled $32.1 million and $120.5 million, respectively. With $73.2 million in total revenue, its operating loss margin was 108%. So, with C3.ai spending more than double what it brings in, it has a long way to go before it breaks even.
Although management has forecast that the company will produce positive free cash flow in fiscal 2025, that assertion comes with a big asterisk. C3.ai shelled out $53.2 million in stock-based compensation in Q2, or about 73% of revenue. While this is technically a non-cash expense, the dilution caused by its increasing share count is harming shareholders.
Over the past three years, C3.ai's share count has risen by 19%. That means that, as an ownership slice of the company, a share purchased three years ago is now worth about 84% of what it was at that time.
Despite all of that, C3.ai still trades at about 13 times sales.
AI PS Ratio data by YCharts.
The current valuation the market is giving to C3.ai's stock is far too high for a company growing at the pace it is. Furthermore, with its deep unprofitability and massive stock-based compensation bill, it should trade at a much lower valuation.
If you want to invest in AI stocks, there are multiple better options available than C3.ai.
Should you invest $1,000 in C3.ai right now?
Before you buy stock in C3.ai, 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 C3.ai wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
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Keithen Drury has no position in any of the stocks mentioned. 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. | This shouldn't come as a surprise, as a short report in 2023 alleged that C3.ai's partnership with oil and natural gas giant Baker Hughes was "falling apart." The most recent data from C3.ai's earnings reports seem to confirm this (we'll need to wait a full fiscal year for complete clarity due to the company's sales cycles), but with C3.ai's government contracts making up the ground, the loss of that business isn't dealing as severe a blow to its finances as it otherwise might. Although management has forecast that the company will produce positive free cash flow in fiscal 2025, that assertion comes with a big asterisk. | This is good, as oil and natural gas industry spending has dried up for C3.ai. In fiscal Q2, C3.ai's cost of revenue and operating expenses totaled $32.1 million and $120.5 million, respectively. Before you buy stock in C3.ai, 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 C3.ai wasn't one of them. | The most recent data from C3.ai's earnings reports seem to confirm this (we'll need to wait a full fiscal year for complete clarity due to the company's sales cycles), but with C3.ai's government contracts making up the ground, the loss of that business isn't dealing as severe a blow to its finances as it otherwise might. Before you buy stock in C3.ai, 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 C3.ai wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Keithen Drury has no position in any of the stocks mentioned. | The most recent data from C3.ai's earnings reports seem to confirm this (we'll need to wait a full fiscal year for complete clarity due to the company's sales cycles), but with C3.ai's government contracts making up the ground, the loss of that business isn't dealing as severe a blow to its finances as it otherwise might. If you want to invest in AI stocks, there are multiple better options available than C3.ai. Before you buy stock in C3.ai, 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 C3.ai wasn't one of them. | 13f1dcc4-48b5-4789-ab2f-e4912c2e9be6 |
710468.0 | 2023-12-16 19:00:00 UTC | Lockheed (LMT) Wins $139M Deal to Support F-35 Jet Program | DCOMP | https://www.nasdaq.com/articles/lockheed-lmt-wins-%24139m-deal-to-support-f-35-jet-program | nan | nan | Lockheed Martin Corp.’s LMT Aeronautics business segment recently clinched a contract involving its F-35 Joint Strike Fighter aircraft. The award has been offered by the Naval Air Systems Command, Patuxent River, MD.
Details of the Deal
Valued at $138.5 million, the contract is projected to be completed by December 2026. Per the terms of the deal, Lockheed will procure various special tooling and special test equipment to support production, retrofit modifications and flight test instrumentation for F-35 jets.
The contract will serve the U.S. Air Force, Marine Corps, Navy, Foreign Military Sales customers and non-U.S. Department of Defense participants. Majority of the work related to this deal will be carried out in Merrimack, NH; Fort Worth, TX; and Samlesbury, the United Kingdom.
Importance of F-35 for LMT
Lockheed enjoys a dominant position in the global military aircraft space with its F-35 fleet. The stealth aircraft boasts features that make it an ideal choice for many nations. The company’s constant efforts to modernize and upgrade the aircraft using advanced technologies to meet current warfare needs boost demand significantly.
The F-35 program remained the largest revenue generator for the Aeronautics business unit. It also accounted for 66% of the segment’s net sales in 2022.
Lockheed has delivered 974 F-35 airplanes since the program's inception, with 391 jets in the backlog as of Sep 24, 2023. This, along with the latest contract win, boosts sales expectations for the segment.
Looking ahead, LMT expects to deliver 97 F-35 jets in 2023 and 147-153 aircraft in 2024. The jet deliveries for 2025 and beyond are still estimated to be 156. Successful delivery of the F-35 jets in due time, as expected by the company, should significantly bolster its revenues in the coming quarters.
Growth Prospects
Amid the widespread geopolitical tensions prevalent across the globe, nations are rapidly augmenting their defense purchase to strengthen their warfare capabilities. This has led to an increased demand for fighter jets, which form an integral part of a country’s defense products.
Looking ahead, per a report by the Mordor Intelligence firm, the global military aviation market is expected to witness a CAGR of 7.37% during 2023-2028. Such projections indicate immense opportunities for Lockheed to reap the benefits of the military aviation market’s expansion, with its Aeronautics business segment engaged in the research, design, development, manufacture, integration, sustainment, support and upgrade of advanced military aircraft.
Notably, Aeronautics’ major programs include the C-130 Hercules international tactical airlifter; the F-16 Fighting Falcon jet; and the F-22 Raptor stealth fighter aircraft, in addition to F-35 jets.
Peer Opportunities
Some other prominent defense majors involved in the manufacturing of military aircraft that are expected to gain from the military aviation market’s growth opportunities are Northrop Grumman NOC, Airbus Group EADSY and Textron TXT.
Since its inception, Northrop Grumman has been a pioneer in the development of manned aircraft. From fighter jets and stealth bombers to surveillance and electronic warfare, it has been providing manned solutions to customers worldwide. The company has built some of the world’s most advanced aircraft, ranging from the innovative B-2 Spirit stealth bomber to the game-changing E-2D Advanced Hawkeye.
NOC’s Aeronautics Systems unit is engaged in the design, development, production, integration, sustainment and modernization of advanced aircraft systems. Meanwhile, the Mission Systems segment offers advanced mission solutions and multifunction systems like Airborne Early Warning & Control, the LONGBOW Fire Control Radar and the Scalable Agile Beam Radar.
Airbus Group’s military aircraft consists of the A400M, the C295 tactical transporter, the new-generation A330 Multi Role Tanker Transport and the Eurofighter, the most advanced swing-role fighter ever conceived.
The company has been providing its aircraft customers with an extended portfolio of services for more than 40 years, ranging from the training of flight and ground staff to live firing exercises anywhere worldwide.
Textron’s military aircraft includes the Beechcraft T-6 training aircraft and the Beechcraft AT-6 light-attack aircraft. The company also manufactures the Beechcraft Model 18 light bomber, the T-44 and T-34 training aircraft, and the T-1A jet trainer.
TXT’s subsidiary, Able Aerospace Services, provides component and maintenance, repair and overhaul services in support of commercial and military fixed and rotor-wing aircraft.
Price Movement
Shares of Lockheed have risen 7.2% in the past three months compared with the industry’s 9.6% growth.
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Zacks Rank
Lockheed currently carries 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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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. | Lockheed Martin Corp.’s LMT Aeronautics business segment recently clinched a contract involving its F-35 Joint Strike Fighter aircraft. Growth Prospects Amid the widespread geopolitical tensions prevalent across the globe, nations are rapidly augmenting their defense purchase to strengthen their warfare capabilities. The company has been providing its aircraft customers with an extended portfolio of services for more than 40 years, ranging from the training of flight and ground staff to live firing exercises anywhere worldwide. | Such projections indicate immense opportunities for Lockheed to reap the benefits of the military aviation market’s expansion, with its Aeronautics business segment engaged in the research, design, development, manufacture, integration, sustainment, support and upgrade of advanced military aircraft. Peer Opportunities Some other prominent defense majors involved in the manufacturing of military aircraft that are expected to gain from the military aviation market’s growth opportunities are Northrop Grumman NOC, Airbus Group EADSY and Textron TXT. Click to get this free report Lockheed Martin Corporation (LMT) : Free Stock Analysis Report Northrop Grumman Corporation (NOC) : Free Stock Analysis Report Textron Inc. (TXT) : Free Stock Analysis Report Airbus Group (EADSY) : Free Stock Analysis Report To read this article on Zacks.com click here. | Such projections indicate immense opportunities for Lockheed to reap the benefits of the military aviation market’s expansion, with its Aeronautics business segment engaged in the research, design, development, manufacture, integration, sustainment, support and upgrade of advanced military aircraft. Peer Opportunities Some other prominent defense majors involved in the manufacturing of military aircraft that are expected to gain from the military aviation market’s growth opportunities are Northrop Grumman NOC, Airbus Group EADSY and Textron TXT. Click to get this free report Lockheed Martin Corporation (LMT) : Free Stock Analysis Report Northrop Grumman Corporation (NOC) : Free Stock Analysis Report Textron Inc. (TXT) : Free Stock Analysis Report Airbus Group (EADSY) : Free Stock Analysis Report To read this article on Zacks.com click here. | Peer Opportunities Some other prominent defense majors involved in the manufacturing of military aircraft that are expected to gain from the military aviation market’s growth opportunities are Northrop Grumman NOC, Airbus Group EADSY and Textron TXT. NOC’s Aeronautics Systems unit is engaged in the design, development, production, integration, sustainment and modernization of advanced aircraft systems. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. | a5573d76-f214-450f-84cc-95ef22b8cb85 |
710469.0 | 2023-12-16 19:00:00 UTC | Quest Diagnostics (DGX) Unveils the 88-Compound NPS Test Panel | DCOMP | https://www.nasdaq.com/articles/quest-diagnostics-dgx-unveils-the-88-compound-nps-test-panel | nan | nan | Quest Diagnostics DGX recently launched its new confirmatory testing service for novel psychoactive substances (NPS). The new panel, which tests for 88 compounds, covers a broad array of drug classes, such as designer opioids, designer benzodiazepines, designer stimulants, fentanyl analogs, synthetic cannabinoids and other illicit additives.
The company developed the panel to address the changing drug epidemic, as revealed by its nationally representative Health Trends report, "Drug Misuse in America 2023: The Growing Crisis of Novel Psychoactive Substances”. The Quest Diagnostics Health Trends reports are a series of data-supported scientific reports that provide insights into critical healthcare issues.
Significance of the Latest Health Trends Report
The “Drug Misuse in America 2023: The Growing Crisis of Novel Psychoactive Substances" report sheds light on the drug crisis and its shift from the misuse of prescription opioids and fentanyl to NPS based on more than 3.6 million clinical laboratory drug tests performed by the company in 2022. The report also includes an analysis of 3,730 randomly selected "remnant" specimens tested using a pilot version of the new NPS test panel.
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The findings align with a recent report from the Centers for Disease Control and Prevention (“CDC”), highlighting the increasing connection between xylazine and opioid overdose deaths while revealing the growing misuse of other NPS.
The Health Trends analysis also found that specimens in areas with low-income demographics were nearly seven times more likely to test positive for nonprescribed fentanyl than those linked to high-income communities. Researchers theorize that these differences are due to comparatively higher quality of care and generally greater access to resources in high-income communities.
News in Detail
NPS are versions of established prescription and illicit drugs that are routinely chemically altered to enhance drug effects and evade tracking by law enforcement. As their chemical composition frequently evolves, conventional point-of-care and laboratory test methods may fail to detect NPS, thereby increasing risks for individual patients and challenging efforts to understand their long-term health effects or prevalence in communities.
Two categories of drugs are rapidly accelerating the overdose crisis in America — other illicit additives (xylazine) and fentanyl analogs (acetyl fentanyl). In this context, Quest Diagnostics’ new test panel is designed to help healthcare providers detect potential drug misuse in patients prescribed controlled medications, such as opioids and other substances, amid a proliferation of synthetic or "designer" drugs in the nation's drug supply.
The new panel uses definitive liquid chromatography with advanced tandem mass spectrometry-based testing to establish NPS misuse. Quest Diagnostics’ team of toxicologists, medical experts and data analysts will periodically review and update the panel to include the most relevant and prevalent substances present in communities, backed by data.
Industry Prospects
Per a Research report, the drug screening market was valued at $8.48 billion in 2022 and is expected to witness a CAGR of 9.4% till 2030.
Recent Developments
Earlier this month, Quest Diagnostics was awarded a contract by the CDC to assess the burden of hepatitis C virus in the United States. The agreement marks a new phase of a decade-long collaboration between Quest and the CDC to improve hepatitis public health research based on insights from laboratory data.
In June 2023, the CDC published an MMWR report (Morbidity and Mortality Weekly Report) based on Quest Diagnostics Health Trends data that found only one in three adults with evidence of hepatitis C viral infection have achieved viral clearance despite the availability of curative therapies.
Price Performance
In the past six months, DGX shares have decreased 1.5% compared to the industry’s rise of 3.3%.
Zacks Rank and Key Picks
Quest Diagnostics currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space are Haemonetics HAE, Insulet PODD and DexCom DXCM. Haemonetics and DexCom each presently carry a Zacks Rank #2 (Buy), and Insulet sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Haemonetics’ stock has risen 10.8% in the past year. Earnings estimates for Haemonetics have increased from $3.86 to $3.89 in 2023 and $4.11 to $4.15 in 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 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 dropped 28.8% in the past year compared with the industry’s decline of 2.2%.
PODD’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 105.1%. In the last reported quarter, it delivered an average earnings surprise of 77.4%.
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 of the trailing four quarters, the average surprise being 36.4%. In the last reported quarter, it delivered an average earnings surprise of 47.1%.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Image Source: Zacks Investment Research The findings align with a recent report from the Centers for Disease Control and Prevention (“CDC”), highlighting the increasing connection between xylazine and opioid overdose deaths while revealing the growing misuse of other NPS. As their chemical composition frequently evolves, conventional point-of-care and laboratory test methods may fail to detect NPS, thereby increasing risks for individual patients and challenging efforts to understand their long-term health effects or prevalence in communities. The agreement marks a new phase of a decade-long collaboration between Quest and the CDC to improve hepatitis public health research based on insights from laboratory data. | Significance of the Latest Health Trends Report The “Drug Misuse in America 2023: The Growing Crisis of Novel Psychoactive Substances" report sheds light on the drug crisis and its shift from the misuse of prescription opioids and fentanyl to NPS based on more than 3.6 million clinical laboratory drug tests performed by the company in 2022. In this context, Quest Diagnostics’ new test panel is designed to help healthcare providers detect potential drug misuse in patients prescribed controlled medications, such as opioids and other substances, amid a proliferation of synthetic or "designer" drugs in the nation's drug supply. Click to get this free report Quest Diagnostics Incorporated (DGX) : Free Stock Analysis Report Haemonetics Corporation (HAE) : Free Stock Analysis Report DexCom, Inc. (DXCM) : Free Stock Analysis Report Insulet Corporation (PODD) : Free Stock Analysis Report To read this article on Zacks.com click here. | Significance of the Latest Health Trends Report The “Drug Misuse in America 2023: The Growing Crisis of Novel Psychoactive Substances" report sheds light on the drug crisis and its shift from the misuse of prescription opioids and fentanyl to NPS based on more than 3.6 million clinical laboratory drug tests performed by the company in 2022. In this context, Quest Diagnostics’ new test panel is designed to help healthcare providers detect potential drug misuse in patients prescribed controlled medications, such as opioids and other substances, amid a proliferation of synthetic or "designer" drugs in the nation's drug supply. Click to get this free report Quest Diagnostics Incorporated (DGX) : Free Stock Analysis Report Haemonetics Corporation (HAE) : Free Stock Analysis Report DexCom, Inc. (DXCM) : Free Stock Analysis Report Insulet Corporation (PODD) : Free Stock Analysis Report To read this article on Zacks.com click here. | Significance of the Latest Health Trends Report The “Drug Misuse in America 2023: The Growing Crisis of Novel Psychoactive Substances" report sheds light on the drug crisis and its shift from the misuse of prescription opioids and fentanyl to NPS based on more than 3.6 million clinical laboratory drug tests performed by the company in 2022. Earnings estimates for Haemonetics have increased from $3.86 to $3.89 in 2023 and $4.11 to $4.15 in 2024 in the past 30 days. Be First to New Top 10 Stocks >> Want the latest recommendations from Zacks Investment Research? | 8dd0d0dc-bf4c-4621-9e9d-393f2ee3eec0 |
710470.0 | 2023-12-16 19:00:00 UTC | Upstart: Buy, Sell, or Hold? | DCOMP | https://www.nasdaq.com/articles/upstart%3A-buy-sell-or-hold | nan | nan | After a challenging year in 2022, Upstart (NASDAQ: UPST) is finishing 2023 with a bang. The company had a rough go of it as investor demand for its artificial-intelligence-powered consumer loans waned. However, fresh cash came in to fund its loans this year, taking some pressure off the lender on that front.
After attracting new investors to take on its loans, the stock shot up over 500% from its low point in May, reaching as high as $72 per share. After giving up a large chunk of those gains, the stock has bounced back and is up almost 300% from its 52-week low.
Upstart is an intriguing company on the cutting edge of bringing together artificial intelligence (AI) and lending, looking to increase accessibility to loans for all people. However, the company faces persistent headwinds that could continue to weigh on the stock.
Upstart wants to make lending accessible to all
Upstart believes that traditional credit scoring systems, like Fair Isaac's FICO scoring system, shut out worthy people from borrowing. It argues that legacy credit systems fail to identify risk accurately because they rely on a limited set of variables.
To help more consumers access loans, Upstart created AI models to analyze risk to approve more loans at lower interest rates. Its models rely on 1,500 variables and over 44 million repayment events; the company argues that this model better assesses risk.
A critical component of Upstart's business is its highly automated nature. The company can assess and interpret risks thanks to its AI models, and 88% of its loans are fully automated. These loans are automated from end to end, from the initial rate request to the signing of a loan agreement, without any human intervention.
This high degree of automation enables Upstart to scale up and process more loans when demand is highest. For example, in 2020, it processed 300,000 loan applications; by the following year, that amount more than quadrupled to 1.3 million.
Demand for Upstart loans is muted
What has hurt Upstart is the tepid demand for loans. In 2021 and 2022, Upstart made more than 1 million loans worth over $11 billion. However, this year, demand for its loans was lackluster. Through the year's first three quarters, the company's system had approved 307,995 loans worth about $3.4 billion, a decline of 68% and 65%, respectively, from the same period last year.
Upstart's lending activity has suffered due to the economic backdrop. For one, the Federal Reserve raised prevailing interest rates aggressively to battle inflation. This has increased the rates Upstart must charge on loans, leading to lower demand from borrowers.
These higher rates also constrained funding for institutional investors, who in the past bought many of Upstart's loans; these conditions have persisted amid concerns about the macroeconomic picture. The company has done an excellent job forging partnerships with alternative asset investors and other banking institutions to buy its loans, but that hasn't done much to make up for tepid demand from consumers.
Upstart's model could face a big test
Upstart's loans continue to perform well, and the company has done a solid job identifying credit-worthy borrowers that FICO passed over. However, its lending models could face their biggest test yet.
That's because consumers are racking up debt -- a lot of it. According to the New York Federal Reserve, consumer credit card debt surpassed $1 trillion for the first time earlier this year. Growing use of debt could indicate that consumers don't have as much accumulated savings but want to continue spending.
Increasing consumer debt isn't too concerning as long as consumers have the money to pay those bills. However, an uptick in delinquencies or past-due accounts could indicate struggling consumers. According to the Fed, the delinquency rate on credit card loans is almost 3%, the highest level since 2012. The delinquency rate on all consumer loans is 2.5%, up from its pandemic low of 1.5% and around pre-pandemic levels.
Data source: YCharts.
Upstart's models have performed well, but how they perform as we advance is a big question mark. The models are built on a slew of data, but they haven't necessarily faced an environment like the one we're in today. Interest rates have risen rapidly, delinquencies are on the rise, and consumers have resumed repayments of student loans on top of all of this.
Is Upstart a buy?
One potentially positive catalyst could be if the Fed cuts interest rates. This could lower consumer borrowing costs and spur new demand for its loans. According to CME Group's FedWatch Tool, market participants are projecting the Fed will reduce its benchmark interest rate by 1.5% by December of next year.
However, investors shouldn't assume rate cuts will come. The Fed may be more patient than markets expect and wait to see if inflation reaches its 2% target before cutting interest rates. The most recent consumer price index measure showed prices for November were up 3.1% over the past year.
Upstart's long-term potential could be great, but the coming quarters could test the company and its lending models. Also, the stock is up a lot from its 52-week low and is valued at 7.4 times sales at a time when its growth remains muted. Given the stock's big run-up and uncertain outlook over the next couple of quarters, I would avoid Upstart shares in the near term.
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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. | Upstart is an intriguing company on the cutting edge of bringing together artificial intelligence (AI) and lending, looking to increase accessibility to loans for all people. These higher rates also constrained funding for institutional investors, who in the past bought many of Upstart's loans; these conditions have persisted amid concerns about the macroeconomic picture. The company has done an excellent job forging partnerships with alternative asset investors and other banking institutions to buy its loans, but that hasn't done much to make up for tepid demand from consumers. | Upstart wants to make lending accessible to all Upstart believes that traditional credit scoring systems, like Fair Isaac's FICO scoring system, shut out worthy people from borrowing. To help more consumers access loans, Upstart created AI models to analyze risk to approve more loans at lower interest rates. Upstart's model could face a big test Upstart's loans continue to perform well, and the company has done a solid job identifying credit-worthy borrowers that FICO passed over. | To help more consumers access loans, Upstart created AI models to analyze risk to approve more loans at lower interest rates. Demand for Upstart loans is muted What has hurt Upstart is the tepid demand for loans. Before you buy stock in Upstart, 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 Upstart wasn't one of them. | Upstart's model could face a big test Upstart's loans continue to perform well, and the company has done a solid job identifying credit-worthy borrowers that FICO passed over. One potentially positive catalyst could be if the Fed cuts interest rates. Before you buy stock in Upstart, 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 Upstart wasn't one of them. | affe99ce-3104-4fee-b911-a25482835a3c |
710471.0 | 2023-12-16 19:00:00 UTC | Thorne HealthTech taps former Vitamin Shoppe CEO Watts as leader | DCOMP | https://www.nasdaq.com/articles/thorne-healthtech-taps-former-vitamin-shoppe-ceo-watts-as-leader | nan | nan | By Abigail Summerville
NEW YORK, Dec 20 (Reuters) - Private equity firm L Catterton has appointed former Vitamin Shoppe CEO Colin Watts as Thorne HealthTech's next leader following its $680 million acquisition of the U.S. health and wellness company in October.
Thorne told Reuters on Wednesday that Watts will succeed outgoing CEO Paul Jacobson, who will lead a new business called Thorne Ventures that researches and develops scientific wellness breakthroughs.
Thorne provides at-home health tests and supplements for sleep, fertility, stress, gut health and more. Thorne Ventures will aim to identify the next generation of products and services in the wellness space. They will operate as two separate units that will have a high degree of collaboration.
Watts, who led Vitamin Shoppe between 2015 and 2018, also previously served as president of Weight Watchers Health Solutions, chief innovation officer at Walgreens, and global operating president of McNeil Nutritionals and Consumer Healthcare, a division of Johnson & Johnson.
Paul Jacobson, a Thorne co-founder, has also served on its board of directors since 2010. He also co-founded Onegevity Health, LLC, which became a division of Thorne in 2021.
Thorne's current Chief Operating Officer Tom McKenna, who has been with the company for 14 years, will continue in his role.
Thorne has more than five million customers, including thousands of professional athletes, over 100 professional sports teams, and multiple U.S. National Teams.
(Reporting by Abigail Summerville; editing by Diane Craft)
((abigail.summerville@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Abigail Summerville NEW YORK, Dec 20 (Reuters) - Private equity firm L Catterton has appointed former Vitamin Shoppe CEO Colin Watts as Thorne HealthTech's next leader following its $680 million acquisition of the U.S. health and wellness company in October. Watts, who led Vitamin Shoppe between 2015 and 2018, also previously served as president of Weight Watchers Health Solutions, chief innovation officer at Walgreens, and global operating president of McNeil Nutritionals and Consumer Healthcare, a division of Johnson & Johnson. Thorne's current Chief Operating Officer Tom McKenna, who has been with the company for 14 years, will continue in his role. | By Abigail Summerville NEW YORK, Dec 20 (Reuters) - Private equity firm L Catterton has appointed former Vitamin Shoppe CEO Colin Watts as Thorne HealthTech's next leader following its $680 million acquisition of the U.S. health and wellness company in October. Paul Jacobson, a Thorne co-founder, has also served on its board of directors since 2010. Thorne's current Chief Operating Officer Tom McKenna, who has been with the company for 14 years, will continue in his role. | By Abigail Summerville NEW YORK, Dec 20 (Reuters) - Private equity firm L Catterton has appointed former Vitamin Shoppe CEO Colin Watts as Thorne HealthTech's next leader following its $680 million acquisition of the U.S. health and wellness company in October. Thorne told Reuters on Wednesday that Watts will succeed outgoing CEO Paul Jacobson, who will lead a new business called Thorne Ventures that researches and develops scientific wellness breakthroughs. Watts, who led Vitamin Shoppe between 2015 and 2018, also previously served as president of Weight Watchers Health Solutions, chief innovation officer at Walgreens, and global operating president of McNeil Nutritionals and Consumer Healthcare, a division of Johnson & Johnson. | Thorne told Reuters on Wednesday that Watts will succeed outgoing CEO Paul Jacobson, who will lead a new business called Thorne Ventures that researches and develops scientific wellness breakthroughs. Thorne provides at-home health tests and supplements for sleep, fertility, stress, gut health and more. Paul Jacobson, a Thorne co-founder, has also served on its board of directors since 2010. | 1d6192ac-0469-4a94-b867-5567242e420d |
710472.0 | 2023-12-16 19:00:00 UTC | Choice Hotels Asks Wyndham Shareholders To Tender Shares In Exchange Offer | DCOMP | https://www.nasdaq.com/articles/choice-hotels-asks-wyndham-shareholders-to-tender-shares-in-exchange-offer | nan | nan | (RTTNews) - Choice Hotels International, Inc. (CHH) stated that Wyndham shareholders should tender their shares in Choice's exchange offer to send clear message to Wyndham's Board. Choice Hotels noted that it remains confident the company can complete the transaction within a one-year customary timeframe and is committed to moving forward with this process.
"Attempting to use the FTC to prevent Wyndham shareholders from even accessing the option of a merger with Choice robs them of meaningful upside from the combination or, at a minimum, the substantial break-fee Choice has offered in the unlikely event the transaction were not to receive the requisite regulatory clearance," Choice Hotels said.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - Choice Hotels International, Inc. (CHH) stated that Wyndham shareholders should tender their shares in Choice's exchange offer to send clear message to Wyndham's Board. Choice Hotels noted that it remains confident the company can complete the transaction within a one-year customary timeframe and is committed to moving forward with this process. "Attempting to use the FTC to prevent Wyndham shareholders from even accessing the option of a merger with Choice robs them of meaningful upside from the combination or, at a minimum, the substantial break-fee Choice has offered in the unlikely event the transaction were not to receive the requisite regulatory clearance," Choice Hotels said. | (RTTNews) - Choice Hotels International, Inc. (CHH) stated that Wyndham shareholders should tender their shares in Choice's exchange offer to send clear message to Wyndham's Board. Choice Hotels noted that it remains confident the company can complete the transaction within a one-year customary timeframe and is committed to moving forward with this process. "Attempting to use the FTC to prevent Wyndham shareholders from even accessing the option of a merger with Choice robs them of meaningful upside from the combination or, at a minimum, the substantial break-fee Choice has offered in the unlikely event the transaction were not to receive the requisite regulatory clearance," Choice Hotels said. | (RTTNews) - Choice Hotels International, Inc. (CHH) stated that Wyndham shareholders should tender their shares in Choice's exchange offer to send clear message to Wyndham's Board. "Attempting to use the FTC to prevent Wyndham shareholders from even accessing the option of a merger with Choice robs them of meaningful upside from the combination or, at a minimum, the substantial break-fee Choice has offered in the unlikely event the transaction were not to receive the requisite regulatory clearance," Choice Hotels said. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - Choice Hotels International, Inc. (CHH) stated that Wyndham shareholders should tender their shares in Choice's exchange offer to send clear message to Wyndham's Board. Choice Hotels noted that it remains confident the company can complete the transaction within a one-year customary timeframe and is committed to moving forward with this process. "Attempting to use the FTC to prevent Wyndham shareholders from even accessing the option of a merger with Choice robs them of meaningful upside from the combination or, at a minimum, the substantial break-fee Choice has offered in the unlikely event the transaction were not to receive the requisite regulatory clearance," Choice Hotels said. | a61a15ee-6ecf-498a-b4bf-f74641434020 |
710473.0 | 2023-12-16 19:00:00 UTC | Equinor (EQNR) Signs Long-Term Gas Supply Deal With SEFE | DCOMP | https://www.nasdaq.com/articles/equinor-eqnr-signs-long-term-gas-supply-deal-with-sefe | nan | nan | Equinor ASA EQNR entered into a significant long-term gas supply agreement with the German state energy company SEFE.
This agreement stands out as one of Equinor’s most significant deals in almost four decades.
Per the deal, Equinor is set to provide SEFE with 10 billion cubic meters (bcm) of natural gas annually, commencing on Jan 1, 2024, and continuing until 2034. Also, there is an option to extend the agreement for an additional five years, encompassing a total volume of 29 bcm.
The gas volume specified in the agreement accounts for approximately one-third of Germany’s industrial demand. At current prices, this translates into a contract worth roughly 50 billion euros.
In addition to the gas supply, the companies have entered into a non-binding letter of intent, aiming for SEFE to emerge as a long-term off-taker of giga-scale, low-carbon hydrogen supplies from Equinor. The anticipated commencement of this hydrogen supply is in 2029, with plans to extend it through 2060.
The goal is to deliver industrial-scale low-carbon hydrogen to SEFE, starting at 5 terawatt hours per year in 2029 and potentially scaling up to 40 terawatt hours per year from 2050 through 2060.
Equinor and SEFE share ambitious goals to accelerate the development of the hydrogen economy. This includes joint business opportunities related to the transport and storage of hydrogen for the future.
The latest agreement marks a significant step in securing a dependable and enduring energy supply for Europe, with a particular focus on Germany. It is viewed as a response to Europe’s imperative for consistent, long-term energy sources and a pathway toward substantial decarbonization on a large scale.
As global energy trends shift toward sustainability, Equinor is increasingly concentrating on renewable energy. The company is committed to generating long-term value by adapting its business model to align with the worldwide shift toward a low-carbon future. The latest agreement will contribute to this objective to a certain degree.
Zacks Rank & Stocks to Consider
Equinor currently carries a Zack Rank #3 (Hold).
Investors interested in the energy sector might look at the following companies that presently sport a Zacks Rank #1 (Strong Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Murphy USA’s MUSA unique high-volume, low-cost business model helps it retain high profitability, even in the fiercely competitive retail environment.
MUSA remains committed to returning excess cash to its shareholders through continued share buyback programs. As part of this initiative, the fuel retailer recently approved a repurchase authorization of up to $1.5 billion following the completion of the existing $1-billion mandate. The move underscores MUSA’s sound financial position and commitment to rewarding its shareholders.
The Williams Companies WMB is a premier energy infrastructure provider in North America. WMB has a thriving deepwater transportation business. The company's deepwater portfolio includes a 3,500-mile natural gas and oil gathering and transmission pipeline, which is essential for future cash flows.
Williams Companies’ debt maturity profile is in good shape, with its $4.5-billion revolver maturing in 2023. It is also paying its shareholders an attractive dividend yielding around 5%. Besides this, the company has a share repurchase program worth $1.5 billion, thus highlighting its commitment to shareholders.
Ecopetrol S.A. EC operates across various segments of the oil and gas industry, including exploration, development and production of oil and gas, refining, transportation and sale of petroleum products.
Ecopetrol has witnessed upward earnings estimate revisions for 2023 and 2024 in the past 30 days. The Zacks Consensus Estimate for earnings for EC’s 2023 and 2024 earnings is pegged at $2.32 per share and $2.41 per share, 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. | Equinor ASA EQNR entered into a significant long-term gas supply agreement with the German state energy company SEFE. Per the deal, Equinor is set to provide SEFE with 10 billion cubic meters (bcm) of natural gas annually, commencing on Jan 1, 2024, and continuing until 2034. Murphy USA’s MUSA unique high-volume, low-cost business model helps it retain high profitability, even in the fiercely competitive retail environment. | Equinor ASA EQNR entered into a significant long-term gas supply agreement with the German state energy company SEFE. The company's deepwater portfolio includes a 3,500-mile natural gas and oil gathering and transmission pipeline, which is essential for future cash flows. Click to get this free report Williams Companies, Inc. (The) (WMB) : Free Stock Analysis Report Ecopetrol S.A. (EC) : Free Stock Analysis Report Murphy USA Inc. (MUSA) : Free Stock Analysis Report Equinor ASA (EQNR) : Free Stock Analysis Report To read this article on Zacks.com click here. | Equinor ASA EQNR entered into a significant long-term gas supply agreement with the German state energy company SEFE. In addition to the gas supply, the companies have entered into a non-binding letter of intent, aiming for SEFE to emerge as a long-term off-taker of giga-scale, low-carbon hydrogen supplies from Equinor. Click to get this free report Williams Companies, Inc. (The) (WMB) : Free Stock Analysis Report Ecopetrol S.A. (EC) : Free Stock Analysis Report Murphy USA Inc. (MUSA) : Free Stock Analysis Report Equinor ASA (EQNR) : Free Stock Analysis Report To read this article on Zacks.com click here. | The latest agreement marks a significant step in securing a dependable and enduring energy supply for Europe, with a particular focus on Germany. Besides this, the company has a share repurchase program worth $1.5 billion, thus highlighting its commitment to shareholders. Be First to New Top 10 Stocks >> Want the latest recommendations from Zacks Investment Research? | 83dbab6e-a5c8-401e-adfc-cc31dbd6bace |
710474.0 | 2023-12-16 19:00:00 UTC | Chesapeake Utilities' (CPK) Unit Buys Propane Operating Assets | DCOMP | https://www.nasdaq.com/articles/chesapeake-utilities-cpk-unit-buys-propane-operating-assets | nan | nan | Chesapeake Utilities Corp. CPK announced that its subsidiary, Sharp Energy, has acquired the propane operating assets of J.T. Lee and Son's in Cape Fear, NC. Through this acquisition, the company will be able to increase its footprint in the state and provide cost savings and other synergistic benefits as a result of the expanded Wilmington service area.
Sharp Energy has gained more consumers in North Carolina as a result of this deal, adding over 3,000 customers and distributing about 800,000 gallons of propane annually. A bulk plant with 60,000 gallons of propane storage is also included in the acquisition. This will allow the company to realize efficiencies with more storage capacity and overlapping delivery regions.
Focus on Propane Business
Chesapeake Utilities has expanded its propane wholesale, retail and AutoGas businesses through its subsidiaries, using both organic and inorganic growth strategies. This has aided the business in growing throughout the Southeast and the Mid-Atlantic. The latest transaction will further strengthen CPK’s position in the U.S. propane market.
In December 2022, Chesapeake Utilities’ subsidiary, Florida Public Utilities, acquired the propane operating assets of Hernando Gas, based in Hernando, FL. This acquisition further helped the company to expand its operating footprint in Florida.
In December 2021, Sharp Energy also acquired Diversified Energy Company’s propane operating assets. The deal added nearly 19,000 residential, commercial and agricultural customers.
Growth Prospects
The rising demand for propane as a clean and efficient energy source, particularly in the residential and commercial sectors, is one of the key factors driving the propane market.
Propane is steadily gaining favor as an alternative to fossil fuels like petrol and diesel because of its low carbon content. Propane is in great demand and its market is growing rapidly due to its broad availability, reasonable price and higher dependability than other energy sources.
According to a Precedence Research report, the global propane market size was evaluated at $82.44 billion in 2022 and is projected to hit around $122.61 billion by 2032 at a registered CAGR of 4.1% during 2023-2032. The residential category is anticipated to rise at a CAGR of more than 5.2% between 2023 and 2032.
Price Performance
In the past month, shares of Chesapeake Utilities have risen 14.4% compared with the industry’s 3.7% growth.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
The company currently has a Zacks Rank #4 (Sell).
Some better-ranked stocks from the same sector are Atmos Energy Corporation ATO, Sempra Energy SRE and IDACORP, Inc. IDA, each holding a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Atmos Energy’s long-term (three- to five-year) earnings growth rate is 7.26%. It delivered an average earnings surprise of 1.1% in the last four quarters.
Sempra Energy’s long-term earnings growth rate is 4.95%. The company delivered an average earnings surprise of 9% in the last four quarters.
IDACORP’s long-term earnings growth rate is 4.11%. The company delivered an average earnings surprise of 13.3% in the last four quarters.
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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Sempra Energy (SRE) : Free Stock Analysis Report
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Chesapeake Utilities Corporation (CPK) : Free Stock Analysis Report
Atmos Energy Corporation (ATO) : 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. | Through this acquisition, the company will be able to increase its footprint in the state and provide cost savings and other synergistic benefits as a result of the expanded Wilmington service area. Sharp Energy has gained more consumers in North Carolina as a result of this deal, adding over 3,000 customers and distributing about 800,000 gallons of propane annually. Propane is in great demand and its market is growing rapidly due to its broad availability, reasonable price and higher dependability than other energy sources. | In December 2022, Chesapeake Utilities’ subsidiary, Florida Public Utilities, acquired the propane operating assets of Hernando Gas, based in Hernando, FL. Some better-ranked stocks from the same sector are Atmos Energy Corporation ATO, Sempra Energy SRE and IDACORP, Inc. IDA, each holding a Zacks Rank #2 (Buy) at present. Click to get this free report Sempra Energy (SRE) : Free Stock Analysis Report IDACORP, Inc. (IDA) : Free Stock Analysis Report Chesapeake Utilities Corporation (CPK) : Free Stock Analysis Report Atmos Energy Corporation (ATO) : Free Stock Analysis Report To read this article on Zacks.com click here. | Growth Prospects The rising demand for propane as a clean and efficient energy source, particularly in the residential and commercial sectors, is one of the key factors driving the propane market. Image Source: Zacks Investment Research Zacks Rank & Stocks to Consider The company currently has a Zacks Rank #4 (Sell). Click to get this free report Sempra Energy (SRE) : Free Stock Analysis Report IDACORP, Inc. (IDA) : Free Stock Analysis Report Chesapeake Utilities Corporation (CPK) : Free Stock Analysis Report Atmos Energy Corporation (ATO) : Free Stock Analysis Report To read this article on Zacks.com click here. | Some better-ranked stocks from the same sector are Atmos Energy Corporation ATO, Sempra Energy SRE and IDACORP, Inc. IDA, each holding a Zacks Rank #2 (Buy) at present. Sempra Energy’s long-term earnings growth rate is 4.95%. Be First to New Top 10 Stocks >> Want the latest recommendations from Zacks Investment Research? | 752c1bdd-0705-4418-8a66-ef8bd98c7550 |
710475.0 | 2023-12-16 19:00:00 UTC | Southern's (SO) Unit Secures Approval to Cover Cost Overruns | DCOMP | https://www.nasdaq.com/articles/southerns-so-unit-secures-approval-to-cover-cost-overruns | nan | nan | Southern Company's SO subsidiary, Georgia Power, recently received regulatory approval for a rate increase, allowing the utility to pass on an additional $7.56 billion to customers. The decision by Georgia utility regulators has sparked discussions and raised eyebrows as it aims to cover cost overruns associated with the Vogtle nuclear reactors project.
Challenges and Setbacks in Vogtle Expansion
The Vogtle two-unit expansion project was initially hailed as a significant achievement for the U.S. nuclear power industry, positioning itself as a cornerstone for transitioning to cleaner energy sources. However, the project encountered delays, with the reactors arriving seven years behind schedule. Additionally, the project's total costs have surged to a staggering $30 billion, more than double the initial projection.
Milestones and Complications
In July, a milestone was reached when Unit 3, the first reactor from the Vogtle project, entered commercial service. Unit 4 is anticipated to be completed in the first quarter of 2024. Despite these achievements, the journey has not been without challenges, and the consequences are now reflected in the decision to pass on increased costs to consumers.
Financial Ramifications and Consumer Concerns
According to company filings, the average charge to customers is expected to rise about 5% in the month following the commercial operation of Unit 4. This development has raised concerns among consumers, but Georgia Power contends that the rate increase is essential to offset the unexpected financial burden incurred during the project's execution.
Georgia Power's Stance
A spokesperson for Georgia Power conveyed that the company believes that the Georgia Public Service Commission's (PSC) decision acknowledges the perspectives of all parties involved. The spokesperson added that the decision signifies a balanced approach, recognizing the value of this long-term energy asset for the state of Georgia and addressing the affordability needs of customers.
Broader Conversation on Energy Projects
Georgia Power holds a significant 45.7% stake in the Vogtle reactors and serves as the electricity provider for 2.7 million customers in the state. The decision of rate hike is expected to have far-reaching implications for the utility and its consumers, prompting a broader conversation about the challenges and trade-offs associated with large-scale energy projects.
Nuclear Power's Potential and Pitfalls
While the Vogtle project highlights the potential of nuclear power as a cleaner energy source, the cost overruns and delays spotlight the complexities inherent in such endeavors. Striking a balance between the long-term benefits for the state and the immediate affordability needs of customers remains a delicate challenge that utilities like Georgia Power must navigate.
Conclusion
As the energy landscape continues to grow, decisions like Georgia Power's rate increase for the Vogtle project provide valuable insights into the challenges faced by the industry. This comprehensive analysis showcases the importance of understanding and addressing the complexities inherent in large-scale energy projects, ensuring a harmonious balance between progress and consumer affordability.
Zacks Rank and Key Picks
Currently, SO carries a Zacks Rank #3 (Hold).
Investors interested in the utility sector might look at some better-ranked stocks like Otter Tail Corporation OTTR,sporting a Zacks Rank #1 (Strong Buy), and Consolidated Water Co. Ltd. CWCO and CenterPoint Energy, Inc. CNP,each holding a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Otter Tail is valued at around $3.36 billion. In the past year, its shares have risen 46.1%.
OTTR, a company primarily focused on electric energy production, transmission, distribution and sale, also operates in Health Services Operations and Diversified Operations through its subsidiaries.
Consolidated Water is worth approximately $543.76 million. It currently pays dividends of 38 cents per share or 1.1% on an annual basis.
CWCO develops and operates seawater desalination plants and water distribution systems in scarce or nonexistent water sources, targeting tourist properties. The company operates in Retail, Bulk, Services and Manufacturing segments.
CenterPoint Energy is worth approximately $18.19 billion. It currently pays dividends of 80 cents per share or 2.78% on an annual basis.
CNP, a domestic energy delivery company, provides electric transmission & distribution, natural gas distribution and competitive natural gas sales and services operations.
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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. | Southern Company's SO subsidiary, Georgia Power, recently received regulatory approval for a rate increase, allowing the utility to pass on an additional $7.56 billion to customers. This development has raised concerns among consumers, but Georgia Power contends that the rate increase is essential to offset the unexpected financial burden incurred during the project's execution. Conclusion As the energy landscape continues to grow, decisions like Georgia Power's rate increase for the Vogtle project provide valuable insights into the challenges faced by the industry. | Investors interested in the utility sector might look at some better-ranked stocks like Otter Tail Corporation OTTR,sporting a Zacks Rank #1 (Strong Buy), and Consolidated Water Co. Ltd. CWCO and CenterPoint Energy, Inc. CNP,each holding a Zacks Rank #2 (Buy) at present. CNP, a domestic energy delivery company, provides electric transmission & distribution, natural gas distribution and competitive natural gas sales and services operations. Click to get this free report Southern Company (The) (SO) : Free Stock Analysis Report CenterPoint Energy, Inc. (CNP) : Free Stock Analysis Report Otter Tail Corporation (OTTR) : Free Stock Analysis Report Consolidated Water Co. Ltd. (CWCO) : Free Stock Analysis Report To read this article on Zacks.com click here. | Broader Conversation on Energy Projects Georgia Power holds a significant 45.7% stake in the Vogtle reactors and serves as the electricity provider for 2.7 million customers in the state. Investors interested in the utility sector might look at some better-ranked stocks like Otter Tail Corporation OTTR,sporting a Zacks Rank #1 (Strong Buy), and Consolidated Water Co. Ltd. CWCO and CenterPoint Energy, Inc. CNP,each holding a Zacks Rank #2 (Buy) at present. Click to get this free report Southern Company (The) (SO) : Free Stock Analysis Report CenterPoint Energy, Inc. (CNP) : Free Stock Analysis Report Otter Tail Corporation (OTTR) : Free Stock Analysis Report Consolidated Water Co. Ltd. (CWCO) : Free Stock Analysis Report To read this article on Zacks.com click here. | Broader Conversation on Energy Projects Georgia Power holds a significant 45.7% stake in the Vogtle reactors and serves as the electricity provider for 2.7 million customers in the state. Investors interested in the utility sector might look at some better-ranked stocks like Otter Tail Corporation OTTR,sporting a Zacks Rank #1 (Strong Buy), and Consolidated Water Co. Ltd. CWCO and CenterPoint Energy, Inc. CNP,each holding a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here. | 8da0cd22-c95d-4a04-99bc-1fb737f97219 |
710476.0 | 2023-12-16 19:00:00 UTC | LyondellBasell (LYB) Inches Closer to 2030 Renewable Energy Goal | DCOMP | https://www.nasdaq.com/articles/lyondellbasell-lyb-inches-closer-to-2030-renewable-energy-goal | nan | nan | LyondellBasell Industries N.V. LYB has inked two new Power Purchase Agreements (PPA) in the United States. This brings the company's total procured renewable electricity to 1,366 megawatts (MWs), representing 89% of its goal of procuring at least 50% of its electricity from renewable sources.
The company is taking significant steps to reduce scope 1 and 2 greenhouse gas emissions, and power purchase agreements are an important lever in attaining its goals. These two new agreements will assist LYB in accelerating the development of renewable energy and shifting to the usage of low-carbon energy at its facilities.
The company signed a long-term PPA for 125 MW of renewable energy from TotalEnergies' Brazoria Solar project in Brazoria County, TX. The 15-year arrangement is projected to generate around 300,000 megawatt-hours (MWh) of solar power each year, which is equivalent to more than 28,000 American homes' yearly electricity consumption. The project is scheduled to begin operations by the end of 2025. This is LYB's second PPA with TotalEnergies.
LyondellBasell also inked a long-term PPA with Industrial Sun to supply 50 MWs of renewable energy to the LyondellBasell Matagorda Complex from Industrial Sun's Industrial Bravo solar plant in Matagorda County, TX. This factory manufactures high-density polyethylene (HDPE) plastic resins, which are used to make a variety of consumer products. The project is expected to start in the first half of 2026.
LyondellBasell aims to obtain at least 50% of its power from renewable sources by 2030, based on procurement levels in 2020. Electricity usage accounts for approximately 15% of the company's 2020 baseline scope 1 and 2 greenhouse gas emissions. Renewable energy is a critical component of its plan to achieve net zero scope 1 and 2 emissions by 2050.
Shares of LyondellBasell have gained 17.8% over the past year against a 7.1% decline of its industry.
Image Source: Zacks Investment Research
The company, on its third-quarter call, said that it anticipates seasonally lower demand across most industries in the fourth quarter. Higher feedstock costs, new industry capacity and slowing Chinese demand growth continue to put pressure on global olefins and polyolefins margins. Following the end of the summer driving season, oxyfuels and refining margins are projected to fall.
Nonetheless, oxyfuel margins are expected to remain significantly higher than historical averages. LyondellBasell plans to operate its assets in line with market demand during the fourth quarter, with average operating rates of 85% for North American olefins and polyolefins (O&P) assets, 75% for European O&P assets and 70% for Intermediates & Derivatives assets.
LyondellBasell Industries N.V. Price and Consensus
LyondellBasell Industries N.V. price-consensus-chart | LyondellBasell Industries N.V. Quote
Zacks Rank & Key Picks
LyondellBasell currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the basic materials space include Denison Mines Corp. DNN, Axalta Coating Systems Ltd. AXTA and Hawkins, Inc. HWKN.
Denison Mines has a projected earnings growth rate of 100% for the current year. It currently carries a Zacks Rank #1 (Strong Buy). DNN delivered a trailing four-quarter earnings surprise of roughly 225%, on average. The stock is up around 53.2% in a year. You can see the complete list of today’s Zacks #1 Rank stocks here.
Axalta has a projected earnings growth rate of 5.4% for the current year. It currently carries a Zacks Rank #1. AXTA delivered a trailing four-quarter earnings surprise of roughly 6.7%, on average. The stock is up around 34.7% in a year.
Hawkins has a projected earnings growth rate of 21% for the current year. It currently carries a Zacks Rank #2 (Buy). Hawkins delivered a trailing four-quarter earnings surprise of roughly 27.5%, on average. HWKN shares are up around 91.1% in a year.
Zacks Naming Top 10 Stocks for 2024
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LyondellBasell Industries N.V. (LYB) : 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 is taking significant steps to reduce scope 1 and 2 greenhouse gas emissions, and power purchase agreements are an important lever in attaining its goals. Image Source: Zacks Investment Research The company, on its third-quarter call, said that it anticipates seasonally lower demand across most industries in the fourth quarter. Higher feedstock costs, new industry capacity and slowing Chinese demand growth continue to put pressure on global olefins and polyolefins margins. | LyondellBasell also inked a long-term PPA with Industrial Sun to supply 50 MWs of renewable energy to the LyondellBasell Matagorda Complex from Industrial Sun's Industrial Bravo solar plant in Matagorda County, TX. LyondellBasell Industries N.V. Price and Consensus LyondellBasell Industries N.V. price-consensus-chart | LyondellBasell Industries N.V. Quote Zacks Rank & Key Picks LyondellBasell currently carries a Zacks Rank #3 (Hold). Click to get this free report LyondellBasell Industries N.V. (LYB) : Free Stock Analysis Report Denison Mine Corp (DNN) : Free Stock Analysis Report Axalta Coating Systems Ltd. (AXTA) : Free Stock Analysis Report Hawkins, Inc. (HWKN) : Free Stock Analysis Report To read this article on Zacks.com click here. | LyondellBasell also inked a long-term PPA with Industrial Sun to supply 50 MWs of renewable energy to the LyondellBasell Matagorda Complex from Industrial Sun's Industrial Bravo solar plant in Matagorda County, TX. LyondellBasell Industries N.V. Price and Consensus LyondellBasell Industries N.V. price-consensus-chart | LyondellBasell Industries N.V. Quote Zacks Rank & Key Picks LyondellBasell currently carries a Zacks Rank #3 (Hold). Click to get this free report LyondellBasell Industries N.V. (LYB) : Free Stock Analysis Report Denison Mine Corp (DNN) : Free Stock Analysis Report Axalta Coating Systems Ltd. (AXTA) : Free Stock Analysis Report Hawkins, Inc. (HWKN) : Free Stock Analysis Report To read this article on Zacks.com click here. | LyondellBasell Industries N.V. Price and Consensus LyondellBasell Industries N.V. price-consensus-chart | LyondellBasell Industries N.V. Quote Zacks Rank & Key Picks LyondellBasell currently carries a Zacks Rank #3 (Hold). The stock is up around 53.2% in a year. The stock is up around 34.7% in a year. | d46d1bab-2d67-4789-8358-3afb04c276a1 |
710477.0 | 2023-12-16 19:00:00 UTC | Shell's (SHEL) Subsidiary Announces FID for Sparta Development | DCOMP | https://www.nasdaq.com/articles/shells-shel-subsidiary-announces-fid-for-sparta-development | nan | nan | Shell plc’s SHEL subsidiary, Shell Offshore Inc., officially declared the Final Investment Decision (FID) for Sparta, a deep-water development project in the U.S. Gulf of Mexico.
Sparta, jointly owned by Shell Offshore Inc. (51% operator) and Equinor Gulf of Mexico LLC (49%), is poised to achieve a peak production of approximately 90,000 barrels of oil equivalent per day (boe/d). The project currently boasts an estimated discovered recoverable resource volume of 244 million boe. It's important to note that the estimated peak production and the current estimated recoverable resources are presented as 100% total gross figures.
Sparta will be Shell's 15th deep-water host in the Gulf of Mexico and is scheduled to commence production in 2028. The project's design is rooted in Shell's cost-effective development approach, emphasizing standardized and simplified host designs.
Zoë Yujnovich, Shell's Integrated Gas & Upstream director, highlighted the significance of this deep-water development, stating that the company’s latest deep-water development demonstrates the power of replication, driving greater value from its advantageous position. She added that the FID is aligned with SHEL’s commitment to pursue the most energy-efficient and competitive projects while supplying safe, secure energy today and for decades to come.
Built on more than four decades of deep-water expertise, Sparta represents a milestone as Shell's inaugural development in the Gulf of Mexico, designed to produce oil and associated gas from reservoirs with pressures reaching up to 20,000 pounds per square inch.
The Sparta development spans across four Outer Continental Shelf blocks in the Garden Banks area of the U.S. Gulf of Mexico. It will feature a semi-submersible production host in water depths exceeding 1,400m/4,700ft, initially equipped with eight oil and gas producing wells.
Sparta's design closely mirrors the successful Vito and Whale designs, both four-column semi-submersible host facilities. It is an enhanced replica of Whale, imitating about 95% of Whale's hull and 85% of its topsides. Vito, located in the greater Mars Corridor, commenced production in February 2023, while Whale, set to be located in the Perdido corridor, is scheduled to come online in 2024.
Zacks Rank & Key Picks
Shell currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the energy sector are The Williams Companies, Inc. WMB, Sunoco LP SUN and EOG Resources, Inc. EOG. While both The Williams Companies and Sunoco sport a Zacks Rank #1 (Strong Buy), EOG Resources carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Williams Companies is well-positioned to capitalize on the anticipated substantial long-term growth in U.S. natural gas demand, thanks to its impressive portfolio of large-scale projects that create significant value. The company’s debt maturity profile is in good shape with its $4.5-billion revolver maturing in fiscal 2023.
WMB’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 13.68%.
Sunoco is among the biggest motor fuel distributors in the U.S. wholesale market in terms of volumes. By distributing more than 10 fuel brands via 10,000 convenience stores under long-term distribution contracts, the partnership will continue to generate stable cash flow.
SUN’s earnings beat estimates in two of the trailing four quarters and missed twice, delivering an average surprise of 28.33%.
EOG Resources is an energy exploration and production company with an attractive growth profile, upper-quartile returns and a disciplined management team. With highly productive acreages in premier oil shale plays like the Permian and Eagle Ford, the company has numerous untapped high-quality drilling sites.
EOG’s earnings beat estimates in three of the trailing four quarters and missed once, delivering an average surprise of 9.17%.
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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Williams Companies, Inc. (The) (WMB) : Free Stock Analysis Report
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Shell PLC Unsponsored ADR (SHEL) : 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. | Sparta, jointly owned by Shell Offshore Inc. (51% operator) and Equinor Gulf of Mexico LLC (49%), is poised to achieve a peak production of approximately 90,000 barrels of oil equivalent per day (boe/d). Built on more than four decades of deep-water expertise, Sparta represents a milestone as Shell's inaugural development in the Gulf of Mexico, designed to produce oil and associated gas from reservoirs with pressures reaching up to 20,000 pounds per square inch. The Williams Companies is well-positioned to capitalize on the anticipated substantial long-term growth in U.S. natural gas demand, thanks to its impressive portfolio of large-scale projects that create significant value. | Some better-ranked stocks in the energy sector are The Williams Companies, Inc. WMB, Sunoco LP SUN and EOG Resources, Inc. EOG. While both The Williams Companies and Sunoco sport a Zacks Rank #1 (Strong Buy), EOG Resources carries a Zacks Rank #2 (Buy) at present. Click to get this free report Williams Companies, Inc. (The) (WMB) : Free Stock Analysis Report Sunoco LP (SUN) : Free Stock Analysis Report EOG Resources, Inc. (EOG) : Free Stock Analysis Report Shell PLC Unsponsored ADR (SHEL) : Free Stock Analysis Report To read this article on Zacks.com click here. | Shell plc’s SHEL subsidiary, Shell Offshore Inc., officially declared the Final Investment Decision (FID) for Sparta, a deep-water development project in the U.S. Gulf of Mexico. While both The Williams Companies and Sunoco sport a Zacks Rank #1 (Strong Buy), EOG Resources carries a Zacks Rank #2 (Buy) at present. Click to get this free report Williams Companies, Inc. (The) (WMB) : Free Stock Analysis Report Sunoco LP (SUN) : Free Stock Analysis Report EOG Resources, Inc. (EOG) : Free Stock Analysis Report Shell PLC Unsponsored ADR (SHEL) : Free Stock Analysis Report To read this article on Zacks.com click here. | Shell plc’s SHEL subsidiary, Shell Offshore Inc., officially declared the Final Investment Decision (FID) for Sparta, a deep-water development project in the U.S. Gulf of Mexico. Sparta will be Shell's 15th deep-water host in the Gulf of Mexico and is scheduled to commence production in 2028. Built on more than four decades of deep-water expertise, Sparta represents a milestone as Shell's inaugural development in the Gulf of Mexico, designed to produce oil and associated gas from reservoirs with pressures reaching up to 20,000 pounds per square inch. | 389ebc2c-5bf9-4f1e-bde8-93fe38e0e051 |
710478.0 | 2023-12-16 19:00:00 UTC | Etsy Stock in 2024: Boom or Bust? | DCOMP | https://www.nasdaq.com/articles/etsy-stock-in-2024%3A-boom-or-bust | nan | nan | Etsy (NASDAQ: ETSY) used to be a darling on Wall Street. The stock quadrupled in 2020 and was up 67% before peaking in late 2021, riding impressive fundamental performance.
But thanks to macroeconomic worries, the business has seen its growth grind to a halt. And this has investors losing hope.
Shares of this top e-commerce company have had a terrible year, down 29% (as of Dec. 18). But 2024 could be a different story.
Let's find out if Etsy will be a boom or a bust as we turn the calendar.
Esty's favorable qualities
It's hard to ignore Etsy's positive attributes. For starters, it's an asset-light company that doesn't have to shell out cash for inventory, physical storefronts, warehouses, or trucks. By being an online marketplace that connects 97.3 million buyers and 8.8 million sellers, the business can avoid investing a ton in capital expenditures.
This leads to a very profitable enterprise. Etsy generated $669 million of free cash flow in the last four quarters. The company uses this to repurchase its stock, boosting earnings per share.
Etsy also benefits from the ongoing secular shift toward online shopping. This consumer trend was bolstered by the rise of Amazon over the past couple of decades. But there is still a long way to go.
According to data provided by the Federal Reserve Bank of St. Louis, online shopping represented less than 16% of overall retail spending during the three-month period that ended Sept. 30. It's anyone's guess what the eventual penetration rate might be, but it's not close to being saturated.
There's also growing interest from consumers to support small businesses, an area that Etsy specializes in with its handcrafted and unique product offerings. Plus, more and more people are looking to start side hustles to supplement their main sources of income. Etsy provides a way to quickly set up an online presence and sell goods to a global customer base.
By zooming out, we can easily see that Etsy certainly has some attractive qualities that could be beneficial over the long term. It's also helpful that the stock trades at a cheap forward price-to-earnings ratio of 18. This adds upside from a valuation perspective.
Macro headwinds are causing huge problems
If we focus our attention more on the near term, there could be some challenges in 2024.
There's one factor in particular that can't be ignored, and it's entirely outside of the company's control. I'm talking about the unfavorable macroeconomic backdrop.
Etsy's management team called out consumers prioritizing spending on essentials as a key reason for muted growth in the latest quarter. And as recently as Dec. 13, the company decided to lay off 11% of its workforce due to the challenging environment.
Yes, inflation is cooling, and the unemployment rate is still extremely low, but I don't believe this tells us the whole story.
Consumer confidence, as measured by the University of Michigan Consumer Sentiment survey, is about 30% below where it stood before the start of the pandemic. Credit card debt is at an all-time high in the U.S. And the fact that the yield curve has been inverted since the summer of 2022 indicates that a recession is still a possible scenario. This all points to tougher times ahead for corporate America.
To be fair, there is a bright spot. Etsy shares should perform well if the economy improves next year, and if spending on discretionary items picks up. This will lead to a larger user base, more revenue, and higher profits.
However, I don't believe anyone has any idea whether this will end up happening or not. Economic trends are simply too unpredictable.
All of this is to say that I can see Etsy's stock being a massive winner in 2024. On the other hand, it can also be a complete dud, as has been the case this year.
Long-term investors should pay less attention to the next 12 months and stay focused on the next five years. With this perspective, Etsy looks like a smart stock to buy.
Should you invest $1,000 in Etsy 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. Neil Patel and his clients have no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon and Etsy. 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. | According to data provided by the Federal Reserve Bank of St. Louis, online shopping represented less than 16% of overall retail spending during the three-month period that ended Sept. 30. There's also growing interest from consumers to support small businesses, an area that Etsy specializes in with its handcrafted and unique product offerings. Etsy's management team called out consumers prioritizing spending on essentials as a key reason for muted growth in the latest quarter. | Etsy (NASDAQ: ETSY) used to be a darling on Wall Street. Before you buy stock in Etsy, 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 Etsy wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 11, 2023 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. | With this perspective, Etsy looks like a smart stock to buy. Before you buy stock in Etsy, 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 Etsy wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 11, 2023 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. | Etsy generated $669 million of free cash flow in the last four quarters. Before you buy stock in Etsy, 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 Etsy wasn't one of them. The Motley Fool has positions in and recommends Amazon and Etsy. | cd7a6253-0074-43b5-9a85-89352e1343e7 |
710479.0 | 2023-12-16 19:00:00 UTC | Edison International (EIX) Announces Dividend Hike of 5.8% | DCOMP | https://www.nasdaq.com/articles/edison-international-eix-announces-dividend-hike-of-5.8 | nan | nan | Edison International EIX recently announced that its board of directors has approved a 5.8% increase in the quarterly dividend rate. The revised quarterly dividend will be 78 cents, payable on Jan 31, 2024, to shareholders of record at the close of business on Dec 29, 2023.
The company’s new annualized dividend rate is $3.12 per share, resulting in a dividend yield of 4.46%, based on its share price as of Dec 19, 2023. This marks the 20th straight year of increase in annual dividend rate, reflecting its strong performance. The current dividend yield is better than that of the Zacks S&P 500 composite’s 1.39%.
EIX’s History of Dividend Payment
The companies that are involved in utility services generally have stable operations and earnings. Consistent performance and the ability to generate cash flows allow utilities to reward shareholders with regular dividends.
Edison International has been consistently increasing dividends since 2004 at a CAGR of 7.1%.
Can We Expect Hikes in the Coming Years?
Dividend hikes are backed by a company’s financial strength and ability to generate enough cash to reward shareholders with impressive returns.
As of Sep 30, 2023, Edison International had a total cash and cash equivalents of $446 million, up significantly from the prior quarter level of $195 million. For the nine months ended Sep 30, 2023, the company had cash inflow from operating activities worth $2.5 billion, reflecting an improvement of 19% from the year-ago period. Such solid cash should enable EIX to duly offer attractive returns to its shareholders in terms of robust dividend payouts.
EIX is committed to delivering 5-7% core earnings per share (EPS) growth for 2021-2025. This reinforces the company’s financial prowess through strong earnings and its ability for enhanced dividend disbursements.
In May 2023, SCE filed its 2025 GRC application with the CPUC to authorize SCE's revenue requirement of $10.3 billion, $600 million, $700 million and $700 million in 2025, 2026, 2027 and 2028, respectively. Further, in August 2023, it filed a $2.4 billion cost recovery application for TKM events. These filings, once approved, will boost Edison International’s earnings and enable it to make generous dividend payouts.
Utilities’ Legacy of Dividend Payment
EIX is not the only one in the utility space that has a long dividend payment history. Many other utilities have a track record of increasing dividends. Some of these are:
Atmos Energy ATO: On Nov 8, 2023, Atmos Energy raised its quarterly dividend to 81 cents, marking a 9.5% increase. The company’s new annualized dividend rate is $3.24 per share. ATO payout currently is 48% of earnings.
The current dividend yield of ATO is 2.81%, better than the Zacks S&P 500 composite’s yield of 1.38%. The long-term (three to five years) earnings growth is pegged at 7.3%.
Entergy Corp. ETR: On Oct 27, 2023, Entergy raised its quarterly dividend to $1.13, marking a 5.6% increase. The company’s new annualized dividend rate is $4.52 per share. ETR's payout currently is 63% of earnings.
The current dividend yield of ETR is 4.45%, better than the Zacks S&P 500 composite’s yield of 1.38%. The long-term earnings growth is pegged at 6.4%.
American Electric Power AEP: On Oct 24, 2023, American Electric Power raised its quarterly dividend to 88 cents, marking a 6% increase. The company’s new annualized dividend rate is $3.52 per share. AEP's payout currently is 66% of earnings.
The current dividend yield of AEP is 4.31%, better than the Zacks S&P 500 composite’s yield of 1.38%. The long-term earnings growth is pegged at 4.8%.
Zacks Rank & Price Performance
EIX currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the past year, shares of EIX have rallied 7.3% against the industry’s 11.1% decline.
Image Source: Zacks Investment Research
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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. | Dividend hikes are backed by a company’s financial strength and ability to generate enough cash to reward shareholders with impressive returns. For the nine months ended Sep 30, 2023, the company had cash inflow from operating activities worth $2.5 billion, reflecting an improvement of 19% from the year-ago period. Such solid cash should enable EIX to duly offer attractive returns to its shareholders in terms of robust dividend payouts. | Atmos Energy ATO: On Nov 8, 2023, Atmos Energy raised its quarterly dividend to 81 cents, marking a 9.5% increase. American Electric Power AEP: On Oct 24, 2023, American Electric Power raised its quarterly dividend to 88 cents, marking a 6% increase. Click to get this free report Entergy Corporation (ETR) : Free Stock Analysis Report Edison International (EIX) : Free Stock Analysis Report American Electric Power Company, Inc. (AEP) : Free Stock Analysis Report Atmos Energy Corporation (ATO) : Free Stock Analysis Report To read this article on Zacks.com click here. | The company’s new annualized dividend rate is $3.12 per share, resulting in a dividend yield of 4.46%, based on its share price as of Dec 19, 2023. Utilities’ Legacy of Dividend Payment EIX is not the only one in the utility space that has a long dividend payment history. Click to get this free report Entergy Corporation (ETR) : Free Stock Analysis Report Edison International (EIX) : Free Stock Analysis Report American Electric Power Company, Inc. (AEP) : Free Stock Analysis Report Atmos Energy Corporation (ATO) : Free Stock Analysis Report To read this article on Zacks.com click here. | The company’s new annualized dividend rate is $3.12 per share, resulting in a dividend yield of 4.46%, based on its share price as of Dec 19, 2023. This marks the 20th straight year of increase in annual dividend rate, reflecting its strong performance. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. | 7500a36c-2b40-4c9c-9d82-fc678ab6e42d |
710480.0 | 2023-12-16 19:00:00 UTC | Want $1,500 in Dividend Income in 2024? Invest $25,000 in These 3 Top Income Stocks | DCOMP | https://www.nasdaq.com/articles/want-%241500-in-dividend-income-in-2024-invest-%2425000-in-these-3-top-income-stocks | nan | nan | Dividend income can boost your overall returns, and also provide you with some recurring cash flow for your portfolio. That's a good thing, because it means you don't have to sell your investments if you need cash -- you can just wait for the dividend income to roll in. And while the S&P 500 is performing well this year, there are still many good, cheap dividend stocks out there to buy right now that offer high yields.
Three safe long-term dividend stocks investors can load up on today are Kraft Heinz (NASDAQ: KHC), AT&T (NYSE: T), and Pfizer (NYSE: PFE). Below, I'll show you how you can invest $25,000 across these three stocks to collect $1,500 in dividend income next year.
1. Kraft Heinz: $5,000
Food and beverage company Kraft Heinz makes for a promising long-term investment. With strong consumer brands in its portfolio, including Kraft, Heinz, Philadelphia, Oscar Mayer, and many others, the company's operations are more resilient than those of most other consumer businesses. The strong brand power it enjoys is a key reason this is also a Warren Buffett stock, with Kraft Heinz being one of Berkshire Hathaway's top 10 holdings.
Over the past nine months, the business showed its resilience with sales of $19.8 billion rising by 4% year over year. Its adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) profit has also increased by 9%. Kraft Heinz's strong brands have enabled it to raise prices and pass on rising costs to consumers, allowing it to still post good results despite inflation.
The stock pays a dividend that yields 4.4% -- that's close to three times the S&P 500 average of 1.5%. Investing $5,000 into the stock would mean you could collect $220 in annual dividend income.
2. AT&T: $10,000
Telecom giant AT&T makes for another good place to invest in for next year. With a yield of 6.7%, investors can get a lot of bang for their buck with this dividend stock. On a $10,000 investment, you can expect to collect $670 in dividend income next year.
Investors have been concerned about the company's dividend, but with AT&T posting encouraging results of late, the risk isn't as high anymore, and that's reflected in the stock's price -- shares of AT&T have been rising in recent months.
For the period ending Sept. 30, the telecom giant reported stable year-over-year revenue growth of 1% as its top line reached $30.4 billion. The company also bumped up its guidance for free cash flow this year to $16.5 billion (versus its previous forecast of $16 billion). While it's not a huge increase, the more important takeaway for investors is that the business is doing better than expected, and cash flow isn't a problem, which is a great sign for safety and stability of the dividend.
3. Pfizer: $10,000
One of the best deals on the market right now may be for Pfizer's stock. Trading down 47% this year, investors have punished the stock for its lackluster financials of late. But it's a scenario investors should have expected given the declining demand for COVID-19 vaccine revenue. And in the long run, the company plans to build up and diversify its business via its pipeline and acquisitions. It recently closed on a key acquisition of cancer company Seagen, which Pfizer projects will help add $10 billion in annual revenue by the end of the decade.
It will be a bumpy road for Pfizer as it incurred a net loss of $2.4 billion last quarter (for the period ending Sept. 30), but as the business scales down its operations in light of lower-than-expected COVID-19 vaccine demand, its financials should improve.
Investors are heavily discounting Pfizer's stock, as it is trading at just 9 times its estimated future earnings. By comparison, the average stock on the S&P 500 trades at more than 21 times future profits.
Not only is Pfizer not concerned about the safety of its dividend, but it also recently increased it. Last week the company hiked its quarterly per-share dividend to $0.42 -- a modest one-cent increase from its previous quarterly payout.
Today the stock yields 6.2%. Another $10,000 invested in Pfizer's stock would result in $620 in annual dividends for your portfolio. Combined with the other investments on this list, that would put your total annual dividend income at approximately $1,510.
Should you invest $1,000 in Kraft Heinz right now?
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David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway and Pfizer. The Motley Fool recommends Kraft Heinz. 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. | Kraft Heinz's strong brands have enabled it to raise prices and pass on rising costs to consumers, allowing it to still post good results despite inflation. Investors have been concerned about the company's dividend, but with AT&T posting encouraging results of late, the risk isn't as high anymore, and that's reflected in the stock's price -- shares of AT&T have been rising in recent months. It will be a bumpy road for Pfizer as it incurred a net loss of $2.4 billion last quarter (for the period ending Sept. 30), but as the business scales down its operations in light of lower-than-expected COVID-19 vaccine demand, its financials should improve. | With strong consumer brands in its portfolio, including Kraft, Heinz, Philadelphia, Oscar Mayer, and many others, the company's operations are more resilient than those of most other consumer businesses. Before you buy stock in Kraft Heinz, 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 Kraft Heinz wasn't one of them. The Motley Fool recommends Kraft Heinz. | Three safe long-term dividend stocks investors can load up on today are Kraft Heinz (NASDAQ: KHC), AT&T (NYSE: T), and Pfizer (NYSE: PFE). Before you buy stock in Kraft Heinz, 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 Kraft Heinz wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 18, 2023 David Jagielski has no position in any of the stocks mentioned. | On a $10,000 investment, you can expect to collect $670 in dividend income next year. It recently closed on a key acquisition of cancer company Seagen, which Pfizer projects will help add $10 billion in annual revenue by the end of the decade. Before you buy stock in Kraft Heinz, 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 Kraft Heinz wasn't one of them. | 0c7b6249-91f6-4ae3-a9ff-57d34fb6c0aa |
710481.0 | 2023-12-16 19:00:00 UTC | Element Solutions (ESI) Wraps Up $1.15B Term Loan Syndication | DCOMP | https://www.nasdaq.com/articles/element-solutions-esi-wraps-up-%241.15b-term-loan-syndication | nan | nan | Element Solutions Inc ESI has announced the completion of the syndication of a seven-year secured term loan credit facility totaling $1.15 billion under its credit agreement.
Element Solutions prepaid its current $1,105 million term loan B-1 tranche and $150 million term loan A using the proceeds of the new $1,150 million term loan B-2 facility and cash on hand.
The new term loan B-2 tranche, with its applicable interest rate of SOFR plus a spread of 2.00% annually, has almost the exact same terms as the previous term loan B-1 tranche, with the exception of its maturity date.
ESI monetized existing interest rates and cross-currency swap arrangements originally set for maturity in 2024 and 2026 in connection with the funding of the new term loan B-2 tranche.
It then entered into new interest rate and cross-currency swap agreements, thereby converting $760 million of the term loan B-2 tranche, which was denominated in U.S. dollars, into fixed-rate euro-denominated debt at a fixed EUR all-in rate of 4.31%. These new swaps will mature in 2028. The remaining $390 million is subject to existing swaps that are slated to mature in 2025.
The company is extending the maturities of a large portion of its secured debt to 2030 and lowering gross debt by more than $100 million through this transaction — all without raising margin. With the new swaps in place, the company now has around 80% of its capital structure set until 2028, effectively minimizing interest rate risk in the current higher rate environment.
Shares of Element Solutions have gained 21.1% over the past year compared with 16.4% rise of its industry.
Image Source: Zacks Investment Research
ESI, on its third quarter call, revised its adjusted EBITDA guidance to nearly $485 million for 2023.
It estimates full-year 2023 adjusted earnings per share of around $1.30. ESI anticipates generating a free cash flow of about $265 million for 2023.
Element Solutions Inc. Price and Consensus
Element Solutions Inc. price-consensus-chart | Element Solutions Inc. Quote
Zacks Rank & Key Picks
Element Solutions currently carries a Zacks Rank #4 (Sell).
Better-ranked stocks in the basic materials space include Denison Mines Corp. DNN, Axalta Coating Systems Ltd. AXTA and Hawkins, Inc. HWKN.
Denison Mines has a projected earnings growth rate of 100% for the current year. It currently carries a Zacks Rank #1 (Strong Buy). DNN delivered a trailing four-quarter earnings surprise of roughly 225%, on average. The stock is up around 60% in a year. You can see the complete list of today’s Zacks #1 Rank stocks here.
Axalta has a projected earnings growth rate of 5.4% for the current year. It currently carries a Zacks Rank #1. AXTA delivered a trailing four-quarter earnings surprise of roughly 6.7%, on average. The stock is up around 35.3% in a year.
Hawkins has a projected earnings growth rate of 21% for the current year. It currently carries a Zacks Rank #2 (Buy). Hawkins delivered a trailing four-quarter earnings surprise of roughly 27.5%, on average. HWKN shares are up around 84.7% in a 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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Element Solutions Inc. (ESI) : Free Stock Analysis Report
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Axalta Coating Systems Ltd. (AXTA) : Free Stock Analysis Report
Hawkins, Inc. (HWKN) : 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. | ESI monetized existing interest rates and cross-currency swap arrangements originally set for maturity in 2024 and 2026 in connection with the funding of the new term loan B-2 tranche. Image Source: Zacks Investment Research ESI, on its third quarter call, revised its adjusted EBITDA guidance to nearly $485 million for 2023. Better-ranked stocks in the basic materials space include Denison Mines Corp. DNN, Axalta Coating Systems Ltd. AXTA and Hawkins, Inc. HWKN. | Element Solutions Inc. Price and Consensus Element Solutions Inc. price-consensus-chart | Element Solutions Inc. Quote Zacks Rank & Key Picks Element Solutions currently carries a Zacks Rank #4 (Sell). Better-ranked stocks in the basic materials space include Denison Mines Corp. DNN, Axalta Coating Systems Ltd. AXTA and Hawkins, Inc. HWKN. Click to get this free report Element Solutions Inc. (ESI) : Free Stock Analysis Report Denison Mine Corp (DNN) : Free Stock Analysis Report Axalta Coating Systems Ltd. (AXTA) : Free Stock Analysis Report Hawkins, Inc. (HWKN) : Free Stock Analysis Report To read this article on Zacks.com click here. | Element Solutions prepaid its current $1,105 million term loan B-1 tranche and $150 million term loan A using the proceeds of the new $1,150 million term loan B-2 facility and cash on hand. Element Solutions Inc. Price and Consensus Element Solutions Inc. price-consensus-chart | Element Solutions Inc. Quote Zacks Rank & Key Picks Element Solutions currently carries a Zacks Rank #4 (Sell). Click to get this free report Element Solutions Inc. (ESI) : Free Stock Analysis Report Denison Mine Corp (DNN) : Free Stock Analysis Report Axalta Coating Systems Ltd. (AXTA) : Free Stock Analysis Report Hawkins, Inc. (HWKN) : Free Stock Analysis Report To read this article on Zacks.com click here. | The stock is up around 60% in a year. The stock is up around 35.3% in a year. Be First to New Top 10 Stocks >> Want the latest recommendations from Zacks Investment Research? | 12bd46cb-647a-4d7d-b460-4da59b871506 |
710482.0 | 2023-12-16 19:00:00 UTC | US STOCKS-Futures take a breather after rally; FedEx slides | DCOMP | https://www.nasdaq.com/articles/us-stocks-futures-take-a-breather-after-rally-fedex-slides | nan | nan | For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
Futures dip: Dow 0.12%, S&P 0.17%, Nasdaq 0.28%
Dec 20 (Reuters) - U.S. stock index futures 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.
All the three main indexes have advanced over 2% since the Fed's Dec. 13 verdict where policymakers projected lower policy rates by the end of 2024, with the blue-chips Dow hitting record highs every other day 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 71.1% chance that the first 25 basis point cut could come in as early as March.
"We've seen positive sentiments starting back in October, but really gathering steam in December and obviously last week when we saw the FOMC coming in much more dovish than expected ... and traders are now starting to assess the sustainability of a further rally," said Daniela Hathorn, senior market analyst at Capital.com.
On the economic data front, investors await consumer confidence data that is expected to improve to 104 in December, as per a Reuters poll, and November existing home sales, both due at 10:00 a.m. ET.
Meanwhile, FedExFDX.N slid 9.9% in trading before the bell after the global delivery firm cut its full-year revenue forecast and reported quarterly profit that fell far short of analysts' targets, as its largest Express business saw demand from the U.S. Postal Service drop.
The results also dragged down shares of rival United Parcel Service UPS.N by 2.8% in thin trading.
"Whilst many economic indicators are backward looking logistics takes a real time temperature, so this set of results is likely to trouble many investors," said Danni Hewson, head of financial analysis at AJ Bell.
At 5:55 a.m. ET, Dow e-minis 1YMcv1 were down 44 points, or 0.12%, S&P 500 e-minis EScv1 were down 8.25 points, or 0.17%, and Nasdaq 100 e-minis NQcv1 were down 47.75 points, or 0.28%.
Among tech-heavy Nasdaq constituents, Microsoft MSFT.O, Apple AAPL.O and Amazon.com AMZN.O slipped between 0.4% and 0.5%, while Nvidia NVDA.O slid 0.9%.
AlphabetGOOGL.O dipped 0.4% 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.
(Reporting by Johann M Cherian in Bengaluru; Editing by Maju Samuel)
((johann.mcherian@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | All the three main indexes have advanced over 2% since the Fed's Dec. 13 verdict where policymakers projected lower policy rates by the end of 2024, with the blue-chips Dow hitting record highs every other day and the S&P 500 within arm's reach of its highest closing levels since January 2022. Meanwhile, FedExFDX.N slid 9.9% in trading before the bell after the global delivery firm cut its full-year revenue forecast and reported quarterly profit that fell far short of analysts' targets, as its largest Express business saw demand from the U.S. "Whilst many economic indicators are backward looking logistics takes a real time temperature, so this set of results is likely to trouble many investors," said Danni Hewson, head of financial analysis at AJ Bell. | Futures dip: Dow 0.12%, S&P 0.17%, Nasdaq 0.28% Dec 20 (Reuters) - U.S. stock index futures 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. All the three main indexes have advanced over 2% since the Fed's Dec. 13 verdict where policymakers projected lower policy rates by the end of 2024, with the blue-chips Dow hitting record highs every other day and the S&P 500 within arm's reach of its highest closing levels since January 2022. ET, Dow e-minis 1YMcv1 were down 44 points, or 0.12%, S&P 500 e-minis EScv1 were down 8.25 points, or 0.17%, and Nasdaq 100 e-minis NQcv1 were down 47.75 points, or 0.28%. | Futures dip: Dow 0.12%, S&P 0.17%, Nasdaq 0.28% Dec 20 (Reuters) - U.S. stock index futures 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. 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. ET, Dow e-minis 1YMcv1 were down 44 points, or 0.12%, S&P 500 e-minis EScv1 were down 8.25 points, or 0.17%, and Nasdaq 100 e-minis NQcv1 were down 47.75 points, or 0.28%. | For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window. Futures dip: Dow 0.12%, S&P 0.17%, Nasdaq 0.28% Dec 20 (Reuters) - U.S. stock index futures 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. All the three main indexes have advanced over 2% since the Fed's Dec. 13 verdict where policymakers projected lower policy rates by the end of 2024, with the blue-chips Dow hitting record highs every other day and the S&P 500 within arm's reach of its highest closing levels since January 2022. | 11e9bd1c-fbc7-4c3f-944c-6e06062dd1da |
710483.0 | 2023-12-16 19:00:00 UTC | 5 Aerospace Stocks That Crushed the Market in 2023 | DCOMP | https://www.nasdaq.com/articles/5-aerospace-stocks-that-crushed-the-market-in-2023 | nan | nan | The year 2023 has been a rewarding one for the Aerospace stocks, with a steady recovery observed in the worldwide air travel demand since the onset of the year. Evidently, major indices like the Dow Jones U.S. Select Aerospace & Defense Index and the S&P Aerospace & Defense Select Industry Index rose 12.9% and 22.7%, respectively, year to date.
With the International Air Transport Association projecting 2023 air passenger revenues to mark an impressive 47% improvement from the previous year’s reported actual, we recommend you to buy prominent stocks from the Zacks Aerospace sector like Leidos LDOS, TransDigm Group TDG, AeroVironment AVAV, Rolls Royce RYCEY and Safran SAFRY.
Key Sector Driving Factors
The most influential factor that has driven the growth of Aerospace stocks so far this year is undoubtedly the return of air transportation to almost its pre-pandemic level. In October 2023, the air passenger traffic recorded a solid 31.2% improvement year over year, edging closer to the pre-pandemic figures.
Such notable passenger traffic growth trends must have boosted orders for original equipment manufacturers as well as aftermarket service providers from the Aerospace sector. Evidently, we witnessed major aerospace players like Boeing receive a cohort of orders for its 787 Dreamliner and 737 Max jets from varied customers across the globe.
Another major growth driver for this sector’s players is the impressive funds offered by the U.S. government in the form of incremental defense budget as well as aids offered to the nation’s allies that resulted in generous weapon sales. In particular, Aerospace stocks that operate business in the defense space have been benefiting.
As an instance to this, we may mention the frequent security aids to Ukraine that the Biden administration has pledged over the past several months. With these military aids pledging to supply U.S.-made arms and ammunition to the recipients, automatically prominent defense contractors like RTX and Lockheed Martin enjoy a steady contract flow to deliver their combat-proven weaponries.
Further valuable mergers and acquisitions support Aerospace stocks to diversify their product portfolio as well as improve their economies of scale, thereby bolstering the entire sector’s profitability.
Our Top Picks
Expecting the aforementioned factors to continue steadily in the coming years, we remain optimistic about the Aerospace sector’s sustainability in the near term. Consequently, using our Zacks Stocks Screener, we have picked the following five large-cap Aerospace stocks with a Zacks Rank #2 (Buy) at present. A prudent investor can keep these stocks in their portfolio. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Leidos: The company’s core capabilities include providing solutions in the fields of cybersecurity, data analytics, enterprise IT modernization, operations and logistics, sensors, collection and phenomenology, software development and systems engineering.
On Dec 13, 2023, LDOS won a new prime contract worth $700 million to provide prototype and technology development support to the National Security Agency. Such contract wins tend to boost the company’s revenue generation prospects.
LDOS’ shares have moved north 2.4% year to date. The Zacks Consensus Estimate for the company’s 2023 sales implies an improvement of 5.9% from the 2022 reported figure. The consensus estimate for its 2023 earnings implies an improvement of 6.4% from the 2022 reported figure and has moved north 5.7% over the past 90 days.
TransDigm Group: It is a leading global designer, producer and supplier of highly engineered aerospace components that are used in commercial and military aircraft. In November 2023, TransDigm signed an agreement to acquire the Electron Device Business of Communications & Power Industries, with its revenues coming from highly engineered, proprietary products with substantial aftermarket content. This buyout, once complete, will boost TDG’s footprint in the Aerospace sector.
Its shares have moved north 58.6% year to date. The Zacks Consensus Estimate for its fiscal 2024 sales implies an improvement of 15.2% from the fiscal 2023 reported figure. The consensus estimate for its fiscal 2024 earnings implies an improvement of 25.4% from the fiscal 2023 reported figure and has moved north 5.4% over the past 60 days.
AeroVironment: The company supplies unmanned aircraft systems, tactical missile systems and related services primarily to organizations within the U.S. Department of Defense. It also supplies charging systems and services for electric vehicles, and power cycling and test systems to commercial and government customers. On Dec 12, 2023, AVAV secured an award worth $16 million from the U.S. Navy for the advancement of video analytics and computer vision research to support multi-domain robotics projects.
The company’s shares have moved north 52.3% year to date. The Zacks Consensus Estimate for its 2023 sales implies an improvement of 29.9% from the 2022 reported figure. The consensus estimate for its 2023 earnings implies an improvement of 119% year over year.
Rolls Royce: A provider of power systems and services for use on land, at sea and in the air, RYCEY operates in four global markets — civil aerospace, defense aerospace, marine and energy. On Dec 15, 2023, the company announced that Turkish Airlines will place an order for 100 Trent XWB-84 engines and 40 Rolls-Royce Trent XWB-97 engines. This should boost RYCEY’s revenues in the coming years.
The company’s shares have moved north 251.4% year to date. The Zacks Consensus Estimate for its 2023 sales implies an improvement of 19% from the 2022 reported figure. The consensus estimate for its 2023 earnings implies an improvement of 500% year over year.
Safran: It produces aircraft and rocket engines and propulsion systems. On Dec 6, 2023, Safran signed a framework agreement with the Moroccan government outlining a mutual commitment to support and develop Morocco’s aerospace industry ecosystem. This should strengthen SAFRY’s footprint in the aerospace sector.
The company’s shares have moved north 40.6% year to date. The Zacks Consensus Estimate for its 2023 sales implies an improvement of 37.3% from the 2022 reported figure. The consensus estimate for its 2023 earnings implies an improvement of 100% year over year.
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Transdigm Group Incorporated (TDG) : 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. | With these military aids pledging to supply U.S.-made arms and ammunition to the recipients, automatically prominent defense contractors like RTX and Lockheed Martin enjoy a steady contract flow to deliver their combat-proven weaponries. Leidos: The company’s core capabilities include providing solutions in the fields of cybersecurity, data analytics, enterprise IT modernization, operations and logistics, sensors, collection and phenomenology, software development and systems engineering. In November 2023, TransDigm signed an agreement to acquire the Electron Device Business of Communications & Power Industries, with its revenues coming from highly engineered, proprietary products with substantial aftermarket content. | With the International Air Transport Association projecting 2023 air passenger revenues to mark an impressive 47% improvement from the previous year’s reported actual, we recommend you to buy prominent stocks from the Zacks Aerospace sector like Leidos LDOS, TransDigm Group TDG, AeroVironment AVAV, Rolls Royce RYCEY and Safran SAFRY. The consensus estimate for its fiscal 2024 earnings implies an improvement of 25.4% from the fiscal 2023 reported figure and has moved north 5.4% over the past 60 days. Click to get this free report Transdigm Group Incorporated (TDG) : Free Stock Analysis Report AeroVironment, Inc. (AVAV) : Free Stock Analysis Report Rolls-Royce Holdings PLC (RYCEY) : Free Stock Analysis Report Safran SA (SAFRY) : Free Stock Analysis Report Leidos Holdings, Inc. (LDOS) : Free Stock Analysis Report To read this article on Zacks.com click here. | With the International Air Transport Association projecting 2023 air passenger revenues to mark an impressive 47% improvement from the previous year’s reported actual, we recommend you to buy prominent stocks from the Zacks Aerospace sector like Leidos LDOS, TransDigm Group TDG, AeroVironment AVAV, Rolls Royce RYCEY and Safran SAFRY. Consequently, using our Zacks Stocks Screener, we have picked the following five large-cap Aerospace stocks with a Zacks Rank #2 (Buy) at present. Click to get this free report Transdigm Group Incorporated (TDG) : Free Stock Analysis Report AeroVironment, Inc. (AVAV) : Free Stock Analysis Report Rolls-Royce Holdings PLC (RYCEY) : Free Stock Analysis Report Safran SA (SAFRY) : Free Stock Analysis Report Leidos Holdings, Inc. (LDOS) : Free Stock Analysis Report To read this article on Zacks.com click here. | With the International Air Transport Association projecting 2023 air passenger revenues to mark an impressive 47% improvement from the previous year’s reported actual, we recommend you to buy prominent stocks from the Zacks Aerospace sector like Leidos LDOS, TransDigm Group TDG, AeroVironment AVAV, Rolls Royce RYCEY and Safran SAFRY. The consensus estimate for its 2023 earnings implies an improvement of 6.4% from the 2022 reported figure and has moved north 5.7% over the past 90 days. Rolls Royce: A provider of power systems and services for use on land, at sea and in the air, RYCEY operates in four global markets — civil aerospace, defense aerospace, marine and energy. | 621136dc-0c53-4fc9-bb2b-ba67dbe330b4 |
710484.0 | 2023-12-16 19:00:00 UTC | The Smartest Investors Are Buying These 2 Stocks Hand Over Fist | DCOMP | https://www.nasdaq.com/articles/the-smartest-investors-are-buying-these-2-stocks-hand-over-fist-1 | nan | nan | The new year is right around the corner and now is an excellent time to invest in companies likely to soar over the next 12 months and beyond. Some of the best options have strong penetration in the consumer market and expanding positions in high-growth industries. These characteristics can almost guarantee significant financial gains over the long term and deliver reliable stock growth.
Two companies that easily fit this criteria are Amazon (NASDAQ: AMZN) and Apple (NASDAQ: AAPL). These tech giants have proven brand loyalty with consumers and are dominating their respective markets.
Shares in Amazon and Apple have risen about 81% and 50% year to date but could have plenty of room left to run thanks to significant cash reserves and positions in developing sectors like artificial intelligence (AI).
So, here are two stocks that the smartest investors are buying hand over fist.
1. Amazon
It's easy to be bullish about Amazon. The company is the biggest name in e-commerce in dozens of countries, leading a market worth more than $3 trillion and expected to expand at a compound annual growth rate of 10% through 2028. Its dependence on retail sales made it vulnerable to macroeconomic headwinds last year as reductions in consumer spending caused steep declines in its e-commerce segments.
However, the company posted revenue growth of 13% year over year in the third quarter of 2023, beating Wall Street forecasts by $1.5 billion after an impressive retail turnaround. Amazon's North American division topped $4 billion in operating income, massively improving on the $412 million loss it reported in the year-ago quarter.
The solid recovery in Amazon's e-commerce business proves the value of its stock as a long-term buy, with management able to successfully navigate market headwinds. Cost-cutting measures such as warehouse closures, shuttering unprofitable projects, and layoffs put the company on stronger financial footing heading into 2024 and long into the future.
In addition to a powerful position in e-commerce, Amazon is home to the world's biggest cloud platform with Amazon Web Services (AWS). Demand for AI cloud tools soared this year as businesses everywhere are increasingly seeking ways to boost productivity with the technology. Meanwhile, AWS introduced a diverse range of AI services catering to different professionals, from software developers to healthcare providers.
AWS accounts for 16% of Amazon's revenue yet is responsible for the biggest portion of operating income. The highly profitable business is one of the best reasons to invest in Amazon's stock, with earnings likely to continue rising alongside AI and cloud developments.
Data by YCharts.
This chart shows Amazon has the lowest price-to-sales ratio of the three biggest cloud companies, suggesting the retail giant's stock offers the best value. The company's stock is a screaming buy right now and you can confidently buy it hand over fist.
2. Apple
As the world's most valuable company with a market cap above $3 trillion, Apple is probably already on your radar for a potential investment. The chart below shows the company's stock has skyrocketed 378% over the last five years, outperforming many of its biggest competitors. While past gains are not always indicative of what's to come, even if Apple delivered half that growth over the next five years, it would still provide more growth than Alphabet, Meta, or Amazon has since 2018.
Data by YCharts.
Apple's history of reliability has caught the eye of some of the world's most successful investors, with Warren Buffett famously a huge proponent of the company. Apple accounts for 48% of Berkshire Hathaway's (Buffett's holding company) portfolio, delivering stock growth of 645% since the firm first bought shares in 2016.
Buffett has often spoken of Apple's powerful brand loyalty among consumers. The tech giant's walled garden of products encourages users to stay within its ecosystem, as advanced connectivity promotes ease of use. Apple's winning product strategy enabled it to achieve leading market shares in smartphones, headphones, tablets, and smartwatches.
Moreover, digital services such as Apple TV+, Music, and iCloud allow the company to continue making money from its devices for years after they are initially purchased.
Apple has had a challenging 2023, with revenue dipping 3% year over year as it faced an economic downturn. However, the company ended the fiscal year with nearly $100 billion in free cash flow, indicating it has the funds to overcome current headwinds and continue investing in its business.
Apple's valuation is slightly high, with a forward price-to-earnings ratio of 30. However, the popularity of its products and considerable cash reserves likely means it's earned its expensive price tag, with Apple stock a no-brainer buy for long-term-minded investors.
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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 in Amazon and Apple have risen about 81% and 50% year to date but could have plenty of room left to run thanks to significant cash reserves and positions in developing sectors like artificial intelligence (AI). Its dependence on retail sales made it vulnerable to macroeconomic headwinds last year as reductions in consumer spending caused steep declines in its e-commerce segments. However, the company ended the fiscal year with nearly $100 billion in free cash flow, indicating it has the funds to overcome current headwinds and continue investing in its business. | In addition to a powerful position in e-commerce, Amazon is home to the world's biggest cloud platform with Amazon Web Services (AWS). Apple accounts for 48% of Berkshire Hathaway's (Buffett's holding company) portfolio, delivering stock growth of 645% since the firm first bought shares in 2016. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Berkshire Hathaway, Meta Platforms, and Microsoft. | Shares in Amazon and Apple have risen about 81% and 50% year to date but could have plenty of room left to run thanks to significant cash reserves and positions in developing sectors like artificial intelligence (AI). This chart shows Amazon has the lowest price-to-sales ratio of the three biggest cloud companies, suggesting the retail giant's stock offers the best value. While past gains are not always indicative of what's to come, even if Apple delivered half that growth over the next five years, it would still provide more growth than Alphabet, Meta, or Amazon has since 2018. | However, the company posted revenue growth of 13% year over year in the third quarter of 2023, beating Wall Street forecasts by $1.5 billion after an impressive retail turnaround. In addition to a powerful position in e-commerce, Amazon is home to the world's biggest cloud platform with Amazon Web Services (AWS). The highly profitable business is one of the best reasons to invest in Amazon's stock, with earnings likely to continue rising alongside AI and cloud developments. | cb83d6f2-dfa3-4938-b760-d54372532477 |
710485.0 | 2023-12-16 19:00:00 UTC | Adobe and Figma End Their Acquisition Talks. Here's What I'm Doing With My Shares. | DCOMP | https://www.nasdaq.com/articles/adobe-and-figma-end-their-acquisition-talks.-heres-what-im-doing-with-my-shares. | nan | nan | In September of 2022, Adobe (NASDAQ: ADBE) announced plans to acquire Figma, a digital design collaboration company. Immediately after that was announced, multiple regulators voiced their concerns with the deal since Figma was seen as a direct competitor to Adobe for some of its products.
However, regulators can rest easy, as the two parties have mutually agreed to end the acquisition talks. This merger was a part of some investors' thesis for Adobe, and with the deal ripped up, some might wonder what they should do with their shares. Although this was an unfortunate ending to this plan, the company still looks like a strong investment.
All investors didn't applaud the Figma purchase
This deal wasn't loved by all investors. Immediately after the planned deal was announced, Adobe's stock plummeted 17%. That's a bad reaction for an acquisition announcement, but it came from one part of the deal: Figma's price tag.
Adobe agreed to acquire Figma for $20 billion, valuing the company at around 50 times sales. That's a sky-high price to pay, and investors didn't like it. Furthermore, it would be funded through a combination of cash and stock, which would have effectively wiped out all of the share repurchases over the past five years.
But all that is now irrelevant, and the company will have to pay $1 billion to Figma as a breakup fee. Still, investing in Adobe has its merits.
Adobe is still doing well by itself
For a while, the investment thesis for Adobe has been: Market-average revenue growth combined with share buybacks fuels market-beating earnings growth. The fourth quarter of fiscal 2023 (ending Dec. 1) was an example of that.
Revenue rose 12% year over year to $5.05 billion, while earnings per share (EPS) increased from $2.53 to $3.26 (a 29% rise). The company achieved this in a few ways:
Operating expenses increased 9% compared to 12% revenue growth. With expenses rising slower than revenue, Adobe can increase its earnings faster than it can grow its top line.
In one year, it repurchased around 10 million shares. This reduced the shares outstanding, which boosted its EPS figure.
While there were some other one-time effects, the slow expense growth and share repurchases combined to produce market-crushing earnings growth. This has been management's strategy for a while and will continue into 2024.
For fiscal 2024, it expects about $21.4 billion in revenue and EPS of $13.65. That would represent a 10% revenue hike and 16% EPS growth.
So, with Adobe expected to have another strong year, its stock looks like a great buy. The stock is a tad pricey at 50 times earnings, but that is right around its average valuation since 2016 (when it switched to the subscription business model).
As a result, even though the Figma acquisition fell through, the stock still looks like a great buy at these levels. With Adobe still excelling in the digital media world and its artificial intelligence products, shareholders have much more to look forward to.
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Keithen Drury has positions in Adobe. The Motley Fool has positions in and recommends Adobe. The Motley Fool recommends the following options: long January 2024 $420 calls on Adobe and short January 2024 $430 calls on Adobe. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In September of 2022, Adobe (NASDAQ: ADBE) announced plans to acquire Figma, a digital design collaboration company. Immediately after that was announced, multiple regulators voiced their concerns with the deal since Figma was seen as a direct competitor to Adobe for some of its products. With expenses rising slower than revenue, Adobe can increase its earnings faster than it can grow its top line. | In September of 2022, Adobe (NASDAQ: ADBE) announced plans to acquire Figma, a digital design collaboration company. While there were some other one-time effects, the slow expense growth and share repurchases combined to produce market-crushing earnings growth. Before you buy stock in Adobe, 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 Adobe wasn't one of them. | Adobe is still doing well by itself For a while, the investment thesis for Adobe has been: Market-average revenue growth combined with share buybacks fuels market-beating earnings growth. Before you buy stock in Adobe, 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 Adobe wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 18, 2023 Keithen Drury has positions in Adobe. | Adobe is still doing well by itself For a while, the investment thesis for Adobe has been: Market-average revenue growth combined with share buybacks fuels market-beating earnings growth. Revenue rose 12% year over year to $5.05 billion, while earnings per share (EPS) increased from $2.53 to $3.26 (a 29% rise). Before you buy stock in Adobe, 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 Adobe wasn't one of them. | a3f0c376-aa27-4751-b21b-15ffaa2519b9 |
710486.0 | 2023-12-16 19:00:00 UTC | Is American Century U.S. Quality Value ETF (VALQ) a Strong ETF Right Now? | DCOMP | https://www.nasdaq.com/articles/is-american-century-u.s.-quality-value-etf-valq-a-strong-etf-right-now-0 | nan | nan | The American Century U.S. Quality Value ETF (VALQ) was launched on 01/11/2018, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - All Cap Value category of the market.
What Are Smart Beta ETFs?
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor & Index
Managed by American Century Investments, VALQ has amassed assets over $209.27 million, making it one of the average sized ETFs in the Style Box - All Cap Value. This particular fund, before fees and expenses, seeks to match the performance of the AMERICAN CENTURY U.S. QUALITY VALUE INDX.
The American Century U.S. Quality Value Index seeks to select securities of large and mid-capitalization companies that are undervalued or have sustainable income.
Cost & Other Expenses
Expense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.
Annual operating expenses for this ETF are 0.29%, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.76%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
VALQ's heaviest allocation is in the Information Technology sector, which is about 26.60% of the portfolio. Its Industrials and Healthcare round out the top three.
When you look at individual holdings, Apple Inc Common Stock Usd.00001 (AAPL) accounts for about 2.56% of the fund's total assets, followed by Johnson + Johnson W/d Common Stock Usd1.0 (JNJ) and Gilead Sciences Inc Common Stock Usd.001 (GILD).
Its top 10 holdings account for approximately 21.21% of VALQ's total assets under management.
Performance and Risk
The ETF return is roughly 13.41% and was up about 14.60% so far this year and in the past one year (as of 12/20/2023), respectively. VALQ has traded between $45.72 and $52.98 during this last 52-week period.
The ETF has a beta of 0.94 and standard deviation of 15.39% for the trailing three-year period. With about 225 holdings, it effectively diversifies company-specific risk.
Alternatives
American Century U.S. Quality Value ETF is a reasonable option for investors seeking to outperform the Style Box - All Cap Value segment of the market. However, there are other ETFs in the space which investors could consider.
Dimensional U.S. Targeted Value ETF (DFAT) tracks ---------------------------------------- and the iShares Core S&P U.S. Value ETF (IUSV) tracks S&P 900 Value Index. Dimensional U.S. Targeted Value ETF has $9.50 billion in assets, iShares Core S&P U.S. Value ETF has $19.71 billion. DFAT has an expense ratio of 0.28% and IUSV charges 0.04%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - All Cap Value.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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American Century U.S. Quality Value ETF (VALQ): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Johnson & Johnson (JNJ) : Free Stock Analysis Report
Gilead Sciences, Inc. (GILD) : Free Stock Analysis Report
iShares Core S&P U.S. Value ETF (IUSV): ETF Research Reports
Dimensional U.S. Targeted Value ETF (DFAT): ETF Research Reports
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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 American Century U.S. Quality Value ETF (VALQ) was launched on 01/11/2018, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - All Cap Value category of the market. Fund Sponsor & Index Managed by American Century Investments, VALQ has amassed assets over $209.27 million, making it one of the average sized ETFs in the Style Box - All Cap Value. Alternatives American Century U.S. Quality Value ETF is a reasonable option for investors seeking to outperform the Style Box - All Cap Value segment of the market. | When you look at individual holdings, Apple Inc Common Stock Usd.00001 (AAPL) accounts for about 2.56% of the fund's total assets, followed by Johnson + Johnson W/d Common Stock Usd1.0 (JNJ) and Gilead Sciences Inc Common Stock Usd.001 (GILD). Alternatives American Century U.S. Quality Value ETF is a reasonable option for investors seeking to outperform the Style Box - All Cap Value segment of the market. Click to get this free report American Century U.S. Quality Value ETF (VALQ): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Johnson & Johnson (JNJ) : Free Stock Analysis Report Gilead Sciences, Inc. (GILD) : Free Stock Analysis Report iShares Core S&P U.S. Value ETF (IUSV): ETF Research Reports Dimensional U.S. | The American Century U.S. Quality Value ETF (VALQ) was launched on 01/11/2018, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - All Cap Value category of the market. Bottom Line To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center. Click to get this free report American Century U.S. Quality Value ETF (VALQ): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Johnson & Johnson (JNJ) : Free Stock Analysis Report Gilead Sciences, Inc. (GILD) : Free Stock Analysis Report iShares Core S&P U.S. Value ETF (IUSV): ETF Research Reports Dimensional U.S. | The American Century U.S. Quality Value ETF (VALQ) was launched on 01/11/2018, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - All Cap Value category of the market. Get it free >> Want the latest recommendations from Zacks Investment Research? Targeted Value ETF (DFAT): ETF Research Reports To read this article on Zacks.com click here. | f7ca77f1-2b67-4af6-b7dc-54c3ce88ea15 |
710487.0 | 2023-12-16 19:00:00 UTC | IBM Will Get a Revenue Boost in 2024 | DCOMP | https://www.nasdaq.com/articles/ibm-will-get-a-revenue-boost-in-2024 | nan | nan | International Business Machines (NYSE: IBM) has shifted its focus to two areas during its decade-long transformation: hybrid cloud computing and artificial intelligence. The company has built a platform for each. Red Hat's ubiquitous software takes center stage in the hybrid cloud arena, while the recently launched watsonx platform now leads the charge in AI.
IBM has divested plenty of businesses over the past decade as part of its turnaround, but it's kept one of its oldest. The tech titan has been manufacturing mainframes since the 1950s. While the mainframe segment isn't as critical to IBM as it once was, the hulking systems are still widely used in certain industries, and each mainframe system sold generates additional revenue from software, services, and financing.
At the end of 2022, 45 of the world's top 50 banks used IBM's mainframe systems. Once every two and half years or so, IBM launches a new lineup of mainframes. The latest iteration, the z16, was announced in April 2022 and became available the following month.
The z16 came with a slew of innovations, including an integrated AI accelerator capable of running AI inferencing workloads in real time. This allowed financial institutions to use AI to analyze transactions on the fly, reducing the risk of fraud. A single z16 system could process 300 billion inference requests per day with one millisecond of latency.
A new mainframe is coming
Given the typical cadence of mainframe launches, IBM is likely to reveal its next mainframe system in the third or fourth quarter of 2024. A mainframe launch generally triggers an upgrade cycle, boosting revenue in the infrastructure segment substantially.
In Q3 of 2022, the first full quarter of z16 availability, sales of mainframe systems soared 98% year over year. This pushed total infrastructure revenue up 23% year over year, and it likely drove some incremental sales of software and services as well.
IBM's mainframe systems work well with the company's hybrid cloud platform, allowing customers to modernize their infrastructures while sticking with mainframes. One of the benefits of an IBM mainframe is longevity. An application written decades ago in COBOL, an ancient programming language that still powers many critical systems, will run on today's mainframes without issue.
The heavy usage of code written in COBOL is a problem for companies that are dependent on that code. COBOL isn't really taught anymore, so the pool of software engineers capable of maintaining those applications is shrinking. This situation is bad news for IBM because it could compel some customers to move away from mainframes.
IBM has recently come up with a solution that should help. The company launched watsonx Code Assistant for Z in October, a generative AI-powered assistant that is trained specifically to translate COBOL applications into modern Java code. This gives customers a way to modernize their software without giving up on the mainframe, and it gives IBM an additional way to generate revenue from its mainframe customer base.
Steady growth for IBM
After years of waffling between revenue growth and revenue declines, IBM is now in a good position to grow consistently, barring a severe economic downturn. The company is settling into its role of providing platforms, software, and consulting services to enterprises looking to modernize their IT infrastructures and adopt artificial intelligence technology. The mainframe itself isn't a growth business like hybrid cloud and AI, but it plays a role in both.
IBM expects to increase revenue by 3% to 5% this year excluding the impact of currency. A mainframe launch sometime next year will boost sales in the second half of 2024, but there are a lot of moving parts, and the company likely won't issue any guidance for 2024 until its next earnings report in January. The state of the economy is a wild card that could swing IBM's revenue by a few percentage points either way.
While a new mainframe will provide a temporary bump to IBM's top line, it's the company's efforts to reposition itself for the cloud and AI era that will drive growth in the long run.
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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. | Red Hat's ubiquitous software takes center stage in the hybrid cloud arena, while the recently launched watsonx platform now leads the charge in AI. A mainframe launch sometime next year will boost sales in the second half of 2024, but there are a lot of moving parts, and the company likely won't issue any guidance for 2024 until its next earnings report in January. While a new mainframe will provide a temporary bump to IBM's top line, it's the company's efforts to reposition itself for the cloud and AI era that will drive growth in the long run. | While the mainframe segment isn't as critical to IBM as it once was, the hulking systems are still widely used in certain industries, and each mainframe system sold generates additional revenue from software, services, and financing. IBM's mainframe systems work well with the company's hybrid cloud platform, allowing customers to modernize their infrastructures while sticking with mainframes. Before you buy stock in International Business Machines, 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 International Business Machines wasn't one of them. | While the mainframe segment isn't as critical to IBM as it once was, the hulking systems are still widely used in certain industries, and each mainframe system sold generates additional revenue from software, services, and financing. IBM's mainframe systems work well with the company's hybrid cloud platform, allowing customers to modernize their infrastructures while sticking with mainframes. Before you buy stock in International Business Machines, 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 International Business Machines wasn't one of them. | This pushed total infrastructure revenue up 23% year over year, and it likely drove some incremental sales of software and services as well. IBM's mainframe systems work well with the company's hybrid cloud platform, allowing customers to modernize their infrastructures while sticking with mainframes. Before you buy stock in International Business Machines, 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 International Business Machines wasn't one of them. | d97bd0e6-45cb-4ff6-9a20-884260acc79e |
710488.0 | 2023-12-16 19:00:00 UTC | Should WisdomTree U.S. Total Dividend ETF (DTD) Be on Your Investing Radar? | DCOMP | https://www.nasdaq.com/articles/should-wisdomtree-u.s.-total-dividend-etf-dtd-be-on-your-investing-radar-10 | nan | nan | Looking for broad exposure to the Large Cap Value segment of the US equity market? You should consider the WisdomTree U.S. Total Dividend ETF (DTD), a passively managed exchange traded fund launched on 06/16/2006.
The fund is sponsored by Wisdomtree. It has amassed assets over $1.14 billion, making it one of the average sized ETFs attempting to match the Large Cap Value segment of the US equity market.
Why Large Cap Value
Companies that find themselves in the large cap category typically have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.
Value stocks are known for their lower than average price-to-earnings and price-to-book ratios, but investors should also note their lower than average sales and earnings growth rates. While value stocks have outperformed growth stocks in nearly all markets when you consider long-term performance, growth stocks are more likely to outpace value stocks in strong bull markets.
Costs
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.28%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 2.41%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 17.70% of the portfolio. Financials and Healthcare round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 3.81% of total assets, followed by Microsoft Corp (MSFT) and Exxon Mobil Corp (XOM).
The top 10 holdings account for about 23.07% of total assets under management.
Performance and Risk
DTD seeks to match the performance of the WisdomTree U.S. Dividend Index before fees and expenses. The WisdomTree U.S. Dividend Index is a fundamentally-weighted index that defines the dividend-paying portion of the U.S. equity market.
The ETF return is roughly 10.17% so far this year and is up about 11.25% in the last one year (as of 12/20/2023). In the past 52-week period, it has traded between $57.51 and $65.48.
The ETF has a beta of 0.91 and standard deviation of 14.38% for the trailing three-year period, making it a medium risk choice in the space. With about 818 holdings, it effectively diversifies company-specific risk.
Alternatives
WisdomTree U.S. Total Dividend ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, DTD is a sufficient option for those seeking exposure to the Style Box - Large Cap Value area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Russell 1000 Value ETF (IWD) and the Vanguard Value ETF (VTV) track a similar index. While iShares Russell 1000 Value ETF has $55.25 billion in assets, Vanguard Value ETF has $105.72 billion. IWD has an expense ratio of 0.19% and VTV charges 0.04%.
Bottom-Line
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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WisdomTree U.S. Total Dividend ETF (DTD): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Exxon Mobil Corporation (XOM) : Free Stock Analysis Report
Vanguard Value ETF (VTV): ETF Research Reports
iShares Russell 1000 Value ETF (IWD): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | It has amassed assets over $1.14 billion, making it one of the average sized ETFs attempting to match the Large Cap Value segment of the US equity market. The ETF has a beta of 0.91 and standard deviation of 14.38% for the trailing three-year period, making it a medium risk choice in the space. Thus, DTD is a sufficient option for those seeking exposure to the Style Box - Large Cap Value area of the market. | You should consider the WisdomTree U.S. Total Dividend ETF (DTD), a passively managed exchange traded fund launched on 06/16/2006. Looking at individual holdings, Apple Inc (AAPL) accounts for about 3.81% of total assets, followed by Microsoft Corp (MSFT) and Exxon Mobil Corp (XOM). Click to get this free report WisdomTree U.S. Total Dividend ETF (DTD): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. | Alternatives WisdomTree U.S. Total Dividend ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center. Click to get this free report WisdomTree U.S. Total Dividend ETF (DTD): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. | Costs Investors should also pay attention to an ETF's expense ratio. Sector Exposure and Top Holdings ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. The top 10 holdings account for about 23.07% of total assets under management. | 989e3c6e-423f-4d8c-9abb-87e25522a45e |
710489.0 | 2023-12-16 19:00:00 UTC | Should Invesco Dow Jones Industrial Average Dividend ETF (DJD) Be on Your Investing Radar? | DCOMP | https://www.nasdaq.com/articles/should-invesco-dow-jones-industrial-average-dividend-etf-djd-be-on-your-investing-radar-9 | nan | nan | Designed to provide broad exposure to the Large Cap Blend segment of the US equity market, the Invesco Dow Jones Industrial Average Dividend ETF (DJD) is a passively managed exchange traded fund launched on 12/16/2015.
The fund is sponsored by Invesco. It has amassed assets over $319.73 million, making it one of the average sized ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Large cap companies usually have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.
Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.
Costs
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.07%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 3.53%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Consumer Staples sector--about 18.60% of the portfolio. Financials and Healthcare round out the top three.
Looking at individual holdings, Walgreens Boots Alliance Inc (WBA) accounts for about 10.26% of total assets, followed by Verizon Communications Inc (VZ) and Dow Inc (DOW).
The top 10 holdings account for about 59.76% of total assets under management.
Performance and Risk
DJD seeks to match the performance of the Dow Jones Industrial Average Yield Weighted index before fees and expenses. The Dow Jones Industrial Average Yield Weighted Index provides exposure to high-yielding equity securities in the Dow Jones Industrial Average by their 12-month dividend yield over the prior 12 months.
The ETF return is roughly 8.15% so far this year and was up about 10.15% in the last one year (as of 12/20/2023). In the past 52-week period, it has traded between $39.87 and $45.66.
The ETF has a beta of 0.82 and standard deviation of 14.32% for the trailing three-year period. With about 29 holdings, it has more concentrated exposure than peers.
Alternatives
Invesco Dow Jones Industrial Average Dividend ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, DJD is a good option for those seeking exposure to the Style Box - Large Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Core S&P 500 ETF (IVV) and the SPDR S&P 500 ETF (SPY) track a similar index. While iShares Core S&P 500 ETF has $400.93 billion in assets, SPDR S&P 500 ETF has $462.27 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Invesco Dow Jones Industrial Average Dividend ETF (DJD): ETF Research Reports
Verizon Communications Inc. (VZ) : Free Stock Analysis Report
Dow Inc. (DOW) : Free Stock Analysis Report
SPDR S&P 500 ETF (SPY): ETF Research Reports
Walgreens Boots Alliance, Inc. (WBA) : Free Stock Analysis Report
iShares Core S&P 500 ETF (IVV): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Designed to provide broad exposure to the Large Cap Blend segment of the US equity market, the Invesco Dow Jones Industrial Average Dividend ETF (DJD) is a passively managed exchange traded fund launched on 12/16/2015. It has amassed assets over $319.73 million, making it one of the average sized ETFs attempting to match the Large Cap Blend segment of the US equity market. Thus, DJD is a good option for those seeking exposure to the Style Box - Large Cap Blend area of the market. | Designed to provide broad exposure to the Large Cap Blend segment of the US equity market, the Invesco Dow Jones Industrial Average Dividend ETF (DJD) is a passively managed exchange traded fund launched on 12/16/2015. The Dow Jones Industrial Average Yield Weighted Index provides exposure to high-yielding equity securities in the Dow Jones Industrial Average by their 12-month dividend yield over the prior 12 months. Click to get this free report Invesco Dow Jones Industrial Average Dividend ETF (DJD): ETF Research Reports Verizon Communications Inc. (VZ) : Free Stock Analysis Report Dow Inc. (DOW) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports Walgreens Boots Alliance, Inc. (WBA) : Free Stock Analysis Report iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. | Alternatives Invesco Dow Jones Industrial Average Dividend ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center. Click to get this free report Invesco Dow Jones Industrial Average Dividend ETF (DJD): ETF Research Reports Verizon Communications Inc. (VZ) : Free Stock Analysis Report Dow Inc. (DOW) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports Walgreens Boots Alliance, Inc. (WBA) : Free Stock Analysis Report iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. | Designed to provide broad exposure to the Large Cap Blend segment of the US equity market, the Invesco Dow Jones Industrial Average Dividend ETF (DJD) is a passively managed exchange traded fund launched on 12/16/2015. Costs Investors should also pay attention to an ETF's expense ratio. Click to get this free report Invesco Dow Jones Industrial Average Dividend ETF (DJD): ETF Research Reports Verizon Communications Inc. (VZ) : Free Stock Analysis Report Dow Inc. (DOW) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports Walgreens Boots Alliance, Inc. (WBA) : Free Stock Analysis Report iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. | ead80215-36e2-4aa0-8728-a584f1e5941d |
710490.0 | 2023-12-16 19:00:00 UTC | Should iShares S&P Mid-Cap 400 Value ETF (IJJ) Be on Your Investing Radar? | DCOMP | https://www.nasdaq.com/articles/should-ishares-sp-mid-cap-400-value-etf-ijj-be-on-your-investing-radar-4 | nan | nan | Looking for broad exposure to the Mid Cap Value segment of the US equity market? You should consider the iShares S&P Mid-Cap 400 Value ETF (IJJ), a passively managed exchange traded fund launched on 07/24/2000.
The fund is sponsored by Blackrock. It has amassed assets over $9.03 billion, making it one of the larger ETFs attempting to match the Mid Cap Value segment of the US equity market.
Why Mid Cap Value
Mid cap companies, with market capitalization in the range of $2 billion and $10 billion, offer investors many things that small and large companies don't, including less risk and higher growth opportunities. Thus they have a nice balance of growth potential and stability.
Value stocks are known for their lower than average price-to-earnings and price-to-book ratios, but investors should also note their lower than average sales and earnings growth rates. While value stocks have outperformed growth stocks in nearly all markets when you consider long-term performance, growth stocks are more likely to outpace value stocks in strong bull markets.
Costs
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.18%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.20%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Industrials sector--about 19.30% of the portfolio. Financials and Consumer Discretionary round out the top three.
Looking at individual holdings, Jabil Inc (JBL) accounts for about 1.73% of total assets, followed by Equity Lifestyle Properties Reit I (ELS) and Chesapeake Energy Corp (CHK).
The top 10 holdings account for about 9.72% of total assets under management.
Performance and Risk
IJJ seeks to match the performance of the S&P MidCap 400 Value Index before fees and expenses. The S&P MidCap 400 Value Index measures the performance of the mid-capitalization value sector of the U.S. equity market. It is a subset of the S&P MidCap 400 and consists of those stocks in the S&P MidCap 400 exhibiting the strongest value characteristics.
The ETF return is roughly 15% so far this year and is up about 17.73% in the last one year (as of 12/20/2023). In the past 52-week period, it has traded between $93.05 and $116.09.
The ETF has a beta of 1.18 and standard deviation of 20.79% for the trailing three-year period, making it a medium risk choice in the space. With about 306 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares S&P Mid-Cap 400 Value ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, IJJ is a great option for investors seeking exposure to the Style Box - Mid Cap Value segment of the market. There are other additional ETFs in the space that investors could consider as well.
The iShares Russell Mid-Cap Value ETF (IWS) and the Vanguard Mid-Cap Value ETF (VOE) track a similar index. While iShares Russell Mid-Cap Value ETF has $13.26 billion in assets, Vanguard Mid-Cap Value ETF has $16.45 billion. IWS has an expense ratio of 0.23% and VOE charges 0.07%.
Bottom-Line
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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iShares S&P Mid-Cap 400 Value ETF (IJJ): ETF Research Reports
Chesapeake Energy Corporation (CHK) : Free Stock Analysis Report
Jabil, Inc. (JBL) : Free Stock Analysis Report
Equity Lifestyle Properties, Inc. (ELS) : Free Stock Analysis Report
Vanguard Mid-Cap Value ETF (VOE): ETF Research Reports
iShares Russell Mid-Cap Value ETF (IWS): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | It has amassed assets over $9.03 billion, making it one of the larger ETFs attempting to match the Mid Cap Value segment of the US equity market. Looking at individual holdings, Jabil Inc (JBL) accounts for about 1.73% of total assets, followed by Equity Lifestyle Properties Reit I (ELS) and Chesapeake Energy Corp (CHK). Because of this, IJJ is a great option for investors seeking exposure to the Style Box - Mid Cap Value segment of the market. | Looking at individual holdings, Jabil Inc (JBL) accounts for about 1.73% of total assets, followed by Equity Lifestyle Properties Reit I (ELS) and Chesapeake Energy Corp (CHK). While iShares Russell Mid-Cap Value ETF has $13.26 billion in assets, Vanguard Mid-Cap Value ETF has $16.45 billion. Click to get this free report iShares S&P Mid-Cap 400 Value ETF (IJJ): ETF Research Reports Chesapeake Energy Corporation (CHK) : Free Stock Analysis Report Jabil, Inc. (JBL) : Free Stock Analysis Report Equity Lifestyle Properties, Inc. (ELS) : Free Stock Analysis Report Vanguard Mid-Cap Value ETF (VOE): ETF Research Reports iShares Russell Mid-Cap Value ETF (IWS): ETF Research Reports To read this article on Zacks.com click here. | Alternatives IShares S&P Mid-Cap 400 Value ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center. Click to get this free report iShares S&P Mid-Cap 400 Value ETF (IJJ): ETF Research Reports Chesapeake Energy Corporation (CHK) : Free Stock Analysis Report Jabil, Inc. (JBL) : Free Stock Analysis Report Equity Lifestyle Properties, Inc. (ELS) : Free Stock Analysis Report Vanguard Mid-Cap Value ETF (VOE): ETF Research Reports iShares Russell Mid-Cap Value ETF (IWS): ETF Research Reports To read this article on Zacks.com click here. | You should consider the iShares S&P Mid-Cap 400 Value ETF (IJJ), a passively managed exchange traded fund launched on 07/24/2000. While value stocks have outperformed growth stocks in nearly all markets when you consider long-term performance, growth stocks are more likely to outpace value stocks in strong bull markets. Alternatives IShares S&P Mid-Cap 400 Value ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. | b270322d-ee4d-43e8-b7b0-3935edd391fb |
710491.0 | 2023-12-16 19:00:00 UTC | Should You Invest in the iShares U.S. Aerospace & Defense ETF (ITA)? | DCOMP | https://www.nasdaq.com/articles/should-you-invest-in-the-ishares-u.s.-aerospace-defense-etf-ita-9 | nan | nan | Looking for broad exposure to the Industrials - Aerospace & Defense segment of the equity market? You should consider the iShares U.S. Aerospace & Defense ETF (ITA), a passively managed exchange traded fund launched on 05/01/2006.
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
Investor-friendly, sector ETFs provide many options to gain low risk and diversified exposure to a broad group of companies in particular sectors. Industrials - Aerospace & Defense is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 3, placing it in top 19%.
Index Details
The fund is sponsored by Blackrock. It has amassed assets over $6.03 billion, making it one of the largest ETFs attempting to match the performance of the Industrials - Aerospace & Defense segment of the equity market. ITA seeks to match the performance of the Dow Jones U.S. Select Aerospace & Defense Index before fees and expenses.
The Dow Jones U.S. Select Aerospace & Defense Index measures the performance of the aerospace and defense sector of the U.S. equity market.
Costs
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for this ETF are 0.40%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 0.59%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Industrials sector--about 99.60% of the portfolio.
Looking at individual holdings, Boeing (BA) accounts for about 16.95% of total assets, followed by Rtx Corp (RTX) and Lockheed Martin Corp (LMT).
The top 10 holdings account for about 75.75% of total assets under management.
Performance and Risk
So far this year, ITA has added about 13.71%, and it's up approximately 16.35% in the last one year (as of 12/20/2023). During this past 52-week period, the fund has traded between $103.16 and $126.46.
The ETF has a beta of 1 and standard deviation of 20.16% for the trailing three-year period, making it a medium risk choice in the space. With about 37 holdings, it has more concentrated exposure than peers.
Alternatives
IShares U.S. Aerospace & Defense ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, ITA is an excellent option for investors seeking exposure to the Industrials ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
SPDR S&P Aerospace & Defense ETF (XAR) tracks S&P Aerospace & Defense Select Industry Index and the Invesco Aerospace & Defense ETF (PPA) tracks SPADE Defense Index. SPDR S&P Aerospace & Defense ETF has $1.96 billion in assets, Invesco Aerospace & Defense ETF has $2.56 billion. XAR has an expense ratio of 0.35% and PPA charges 0.58%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
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iShares U.S. Aerospace & Defense ETF (ITA): ETF Research Reports
The Boeing Company (BA) : Free Stock Analysis Report
Lockheed Martin Corporation (LMT) : Free Stock Analysis Report
Invesco Aerospace & Defense ETF (PPA): ETF Research Reports
SPDR S&P Aerospace & Defense ETF (XAR): ETF Research Reports
RTX Corporation (RTX) : 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. | You should consider the iShares U.S. Aerospace & Defense ETF (ITA), a passively managed exchange traded fund launched on 05/01/2006. It has amassed assets over $6.03 billion, making it one of the largest ETFs attempting to match the performance of the Industrials - Aerospace & Defense segment of the equity market. The ETF has a beta of 1 and standard deviation of 20.16% for the trailing three-year period, making it a medium risk choice in the space. | Looking at individual holdings, Boeing (BA) accounts for about 16.95% of total assets, followed by Rtx Corp (RTX) and Lockheed Martin Corp (LMT). SPDR S&P Aerospace & Defense ETF (XAR) tracks S&P Aerospace & Defense Select Industry Index and the Invesco Aerospace & Defense ETF (PPA) tracks SPADE Defense Index. Click to get this free report iShares U.S. Aerospace & Defense ETF (ITA): ETF Research Reports The Boeing Company (BA) : Free Stock Analysis Report Lockheed Martin Corporation (LMT) : Free Stock Analysis Report Invesco Aerospace & Defense ETF (PPA): ETF Research Reports SPDR S&P Aerospace & Defense ETF (XAR): ETF Research Reports RTX Corporation (RTX) : Free Stock Analysis Report To read this article on Zacks.com click here. | SPDR S&P Aerospace & Defense ETF (XAR) tracks S&P Aerospace & Defense Select Industry Index and the Invesco Aerospace & Defense ETF (PPA) tracks SPADE Defense Index. SPDR S&P Aerospace & Defense ETF has $1.96 billion in assets, Invesco Aerospace & Defense ETF has $2.56 billion. Click to get this free report iShares U.S. Aerospace & Defense ETF (ITA): ETF Research Reports The Boeing Company (BA) : Free Stock Analysis Report Lockheed Martin Corporation (LMT) : Free Stock Analysis Report Invesco Aerospace & Defense ETF (PPA): ETF Research Reports SPDR S&P Aerospace & Defense ETF (XAR): ETF Research Reports RTX Corporation (RTX) : Free Stock Analysis Report To read this article on Zacks.com click here. | Industrials - Aerospace & Defense is one of the 16 broad Zacks sectors within the Zacks Industry classification. ITA seeks to match the performance of the Dow Jones U.S. SPDR S&P Aerospace & Defense ETF (XAR) tracks S&P Aerospace & Defense Select Industry Index and the Invesco Aerospace & Defense ETF (PPA) tracks SPADE Defense Index. | cb51d905-2ebc-4046-921b-ee7a877a0f23 |
710492.0 | 2023-12-16 19:00:00 UTC | Should Pacer US Cash Cows 100 ETF (COWZ) Be on Your Investing Radar? | DCOMP | https://www.nasdaq.com/articles/should-pacer-us-cash-cows-100-etf-cowz-be-on-your-investing-radar-0 | nan | nan | Designed to provide broad exposure to the Large Cap Value segment of the US equity market, the Pacer US Cash Cows 100 ETF (COWZ) is a passively managed exchange traded fund launched on 12/16/2016.
The fund is sponsored by Pacer Etfs. It has amassed assets over $18.10 billion, making it one of the largest ETFs attempting to match the Large Cap Value segment of the US equity market.
Why Large Cap Value
Large cap companies usually have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.
Carrying lower than average price-to-earnings and price-to-book ratios, value stocks also have lower than average sales and earnings growth rates. While value stocks have outperformed growth stocks in nearly all markets when you consider long-term performance, growth stocks are more likely to outpace value stocks in strong bull markets.
Costs
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0.49%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.95%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Energy sector--about 35.50% of the portfolio. Consumer Discretionary and Healthcare round out the top three.
Looking at individual holdings, Chevron Corp New (CVX) accounts for about 2.67% of total assets, followed by Marathon Pete Corp (MPC) and Valero Energy Corp (VLO).
The top 10 holdings account for about 22.31% of total assets under management.
Performance and Risk
COWZ seeks to match the performance of the Pacer US Cash Cows 100 Index before fees and expenses. The Pacer US Cash Cows 100 Index uses an objective, rules-based methodology to provide exposure to large and mid-capitalization U.S. companies with high free cash flow yields.
The ETF has added about 15.10% so far this year and was up about 16.34% in the last one year (as of 12/20/2023). In the past 52-week period, it has traded between $44.32 and $52.53.
The ETF has a beta of 1.07 and standard deviation of 19.33% for the trailing three-year period. With about 100 holdings, it effectively diversifies company-specific risk.
Alternatives
Pacer US Cash Cows 100 ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, COWZ is a great option for investors seeking exposure to the Style Box - Large Cap Value segment of the market. There are other additional ETFs in the space that investors could consider as well.
The iShares Russell 1000 Value ETF (IWD) and the Vanguard Value ETF (VTV) track a similar index. While iShares Russell 1000 Value ETF has $55.25 billion in assets, Vanguard Value ETF has $105.72 billion. IWD has an expense ratio of 0.19% and VTV charges 0.04%.
Bottom-Line
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Pacer US Cash Cows 100 ETF (COWZ): ETF Research Reports
Chevron Corporation (CVX) : Free Stock Analysis Report
Valero Energy Corporation (VLO) : Free Stock Analysis Report
Marathon Petroleum Corporation (MPC) : Free Stock Analysis Report
Vanguard Value ETF (VTV): ETF Research Reports
iShares Russell 1000 Value ETF (IWD): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Designed to provide broad exposure to the Large Cap Value segment of the US equity market, the Pacer US Cash Cows 100 ETF (COWZ) is a passively managed exchange traded fund launched on 12/16/2016. It has amassed assets over $18.10 billion, making it one of the largest ETFs attempting to match the Large Cap Value segment of the US equity market. Because of this, COWZ is a great option for investors seeking exposure to the Style Box - Large Cap Value segment of the market. | Designed to provide broad exposure to the Large Cap Value segment of the US equity market, the Pacer US Cash Cows 100 ETF (COWZ) is a passively managed exchange traded fund launched on 12/16/2016. Looking at individual holdings, Chevron Corp New (CVX) accounts for about 2.67% of total assets, followed by Marathon Pete Corp (MPC) and Valero Energy Corp (VLO). Click to get this free report Pacer US Cash Cows 100 ETF (COWZ): ETF Research Reports Chevron Corporation (CVX) : Free Stock Analysis Report Valero Energy Corporation (VLO) : Free Stock Analysis Report Marathon Petroleum Corporation (MPC) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. | Alternatives Pacer US Cash Cows 100 ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center. Click to get this free report Pacer US Cash Cows 100 ETF (COWZ): ETF Research Reports Chevron Corporation (CVX) : Free Stock Analysis Report Valero Energy Corporation (VLO) : Free Stock Analysis Report Marathon Petroleum Corporation (MPC) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. | Designed to provide broad exposure to the Large Cap Value segment of the US equity market, the Pacer US Cash Cows 100 ETF (COWZ) is a passively managed exchange traded fund launched on 12/16/2016. While value stocks have outperformed growth stocks in nearly all markets when you consider long-term performance, growth stocks are more likely to outpace value stocks in strong bull markets. Sector Exposure and Top Holdings Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. | 0e8e424a-87fb-4fc5-88b1-2c83971eeefc |
710493.0 | 2023-12-16 19:00:00 UTC | Is SPDR Russell 1000 Low Volatility Focus ETF (ONEV) a Strong ETF Right Now? | DCOMP | https://www.nasdaq.com/articles/is-spdr-russell-1000-low-volatility-focus-etf-onev-a-strong-etf-right-now-10 | nan | nan | Launched on 12/02/2015, the SPDR Russell 1000 Low Volatility Focus ETF (ONEV) is a smart beta exchange traded fund offering broad exposure to the Style Box - Large Cap Blend category of the market.
What Are Smart Beta ETFs?
The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.
A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.
Fund Sponsor & Index
Managed by State Street Global Advisors, ONEV has amassed assets over $590.83 million, making it one of the larger ETFs in the Style Box - Large Cap Blend. ONEV, before fees and expenses, seeks to match the performance of the Russell 1000 Low Volatility Focused Factor Index.
The Russell 1000 Low Volatility Focused Factor Index reflects the performance of a segment of large-capitalization U.S. equity securities demonstrating a combination of core factors high value, high quality, and low size characteristics, with a focus factor comprising low volatility characteristics.
Cost & Other Expenses
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Operating expenses on an annual basis are 0.20% for this ETF, which makes it on par with most peer products in the space.
ONEV's 12-month trailing dividend yield is 1.79%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
For ONEV, it has heaviest allocation in the Industrials sector --about 21% of the portfolio --while Consumer Discretionary and Healthcare round out the top three.
Taking into account individual holdings, Cencora Inc (COR) accounts for about 1.32% of the fund's total assets, followed by Centene Corp (CNC) and Mckesson Corp (MCK).
The top 10 holdings account for about 10.45% of total assets under management.
Performance and Risk
Year-to-date, the SPDR Russell 1000 Low Volatility Focus ETF has gained about 12.98% so far, and is up roughly 14.91% over the last 12 months (as of 12/20/2023). ONEV has traded between $99.61 and $114.89 in this past 52-week period.
The fund has a beta of 0.97 and standard deviation of 15.76% for the trailing three-year period. With about 471 holdings, it effectively diversifies company-specific risk.
Alternatives
SPDR Russell 1000 Low Volatility Focus ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Blend segment of the market. However, there are other ETFs in the space which investors could consider.
IShares Core S&P 500 ETF (IVV) tracks S&P 500 Index and the SPDR S&P 500 ETF (SPY) tracks S&P 500 Index. IShares Core S&P 500 ETF has $400.93 billion in assets, SPDR S&P 500 ETF has $462.27 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Blend.
Bottom Line
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SPDR Russell 1000 Low Volatility Focus ETF (ONEV): ETF Research Reports
McKesson Corporation (MCK) : Free Stock Analysis Report
Cencora, Inc. (COR) : Free Stock Analysis Report
SPDR S&P 500 ETF (SPY): ETF Research Reports
Centene Corporation (CNC) : Free Stock Analysis Report
iShares Core S&P 500 ETF (IVV): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Launched on 12/02/2015, the SPDR Russell 1000 Low Volatility Focus ETF (ONEV) is a smart beta exchange traded fund offering broad exposure to the Style Box - Large Cap Blend category of the market. Fund Sponsor & Index Managed by State Street Global Advisors, ONEV has amassed assets over $590.83 million, making it one of the larger ETFs in the Style Box - Large Cap Blend. Alternatives SPDR Russell 1000 Low Volatility Focus ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Blend segment of the market. | Launched on 12/02/2015, the SPDR Russell 1000 Low Volatility Focus ETF (ONEV) is a smart beta exchange traded fund offering broad exposure to the Style Box - Large Cap Blend category of the market. Alternatives SPDR Russell 1000 Low Volatility Focus ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Blend segment of the market. Click to get this free report SPDR Russell 1000 Low Volatility Focus ETF (ONEV): ETF Research Reports McKesson Corporation (MCK) : Free Stock Analysis Report Cencora, Inc. (COR) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports Centene Corporation (CNC) : Free Stock Analysis Report iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. | Launched on 12/02/2015, the SPDR Russell 1000 Low Volatility Focus ETF (ONEV) is a smart beta exchange traded fund offering broad exposure to the Style Box - Large Cap Blend category of the market. Bottom Line To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center. Click to get this free report SPDR Russell 1000 Low Volatility Focus ETF (ONEV): ETF Research Reports McKesson Corporation (MCK) : Free Stock Analysis Report Cencora, Inc. (COR) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports Centene Corporation (CNC) : Free Stock Analysis Report iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. | Launched on 12/02/2015, the SPDR Russell 1000 Low Volatility Focus ETF (ONEV) is a smart beta exchange traded fund offering broad exposure to the Style Box - Large Cap Blend category of the market. If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies. Get it free >> Want the latest recommendations from Zacks Investment Research? | d21b181b-3cdf-4ac8-8976-bcbb552c8604 |
710494.0 | 2023-12-16 19:00:00 UTC | Should You Invest in the iShares U.S. Utilities ETF (IDU)? | DCOMP | https://www.nasdaq.com/articles/should-you-invest-in-the-ishares-u.s.-utilities-etf-idu-9 | nan | nan | Designed to provide broad exposure to the Utilities - Broad segment of the equity market, the iShares U.S. Utilities ETF (IDU) is a passively managed exchange traded fund launched on 06/12/2000.
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
Sector ETFs are also funds of convenience, offering many ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Utilities - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 1, placing it in top 6%.
Index Details
The fund is sponsored by Blackrock. It has amassed assets over $838.34 million, making it one of the larger ETFs attempting to match the performance of the Utilities - Broad segment of the equity market. IDU seeks to match the performance of the Dow Jones U.S. Utilities Index before fees and expenses.
The Russell 1000 Utilities RIC 22.5/45 Capped Index measures the performance of the utilities sector of the U.S. equity market. It includes companies in the following sectors: electricity and gas, water and multi-utilities.
Costs
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.40%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 2%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Utilities sector--about 88.50% of the portfolio, followed by Industrials.
Looking at individual holdings, Nextera Energy Inc (NEE) accounts for about 9.88% of total assets, followed by Southern (SO) and Duke Energy Corp (DUK).
The top 10 holdings account for about 52.13% of total assets under management.
Performance and Risk
The ETF has lost about -4.99% and is down about -4.02% so far this year and in the past one year (as of 12/20/2023), respectively. IDU has traded between $70.39 and $88.37 during this last 52-week period.
The ETF has a beta of 0.57 and standard deviation of 17.44% for the trailing three-year period, making it a medium risk choice in the space. With about 50 holdings, it has more concentrated exposure than peers.
Alternatives
IShares U.S. Utilities ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, IDU is a reasonable option for those seeking exposure to the Utilities/Infrastructure ETFs area of the market. Investors might also want to consider some other ETF options in the space.
Vanguard Utilities ETF (VPU) tracks MSCI US Investable Market Utilities 25/50 Index and the Utilities Select Sector SPDR ETF (XLU) tracks Utilities Select Sector Index. Vanguard Utilities ETF has $4.77 billion in assets, Utilities Select Sector SPDR ETF has $14.24 billion. VPU has an expense ratio of 0.10% and XLU charges 0.10%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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iShares U.S. Utilities ETF (IDU): ETF Research Reports
NextEra Energy, Inc. (NEE) : Free Stock Analysis Report
Southern Company (The) (SO) : Free Stock Analysis Report
Duke Energy Corporation (DUK) : Free Stock Analysis Report
Utilities Select Sector SPDR ETF (XLU): ETF Research Reports
Vanguard Utilities ETF (VPU): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | It has amassed assets over $838.34 million, making it one of the larger ETFs attempting to match the performance of the Utilities - Broad segment of the equity market. IDU seeks to match the performance of the Dow Jones U.S. Utilities Index before fees and expenses. The ETF has a beta of 0.57 and standard deviation of 17.44% for the trailing three-year period, making it a medium risk choice in the space. | Designed to provide broad exposure to the Utilities - Broad segment of the equity market, the iShares U.S. Utilities ETF (IDU) is a passively managed exchange traded fund launched on 06/12/2000. Vanguard Utilities ETF (VPU) tracks MSCI US Investable Market Utilities 25/50 Index and the Utilities Select Sector SPDR ETF (XLU) tracks Utilities Select Sector Index. Click to get this free report iShares U.S. Utilities ETF (IDU): ETF Research Reports NextEra Energy, Inc. (NEE) : Free Stock Analysis Report Southern Company (The) (SO) : Free Stock Analysis Report Duke Energy Corporation (DUK) : Free Stock Analysis Report Utilities Select Sector SPDR ETF (XLU): ETF Research Reports Vanguard Utilities ETF (VPU): ETF Research Reports To read this article on Zacks.com click here. | Vanguard Utilities ETF (VPU) tracks MSCI US Investable Market Utilities 25/50 Index and the Utilities Select Sector SPDR ETF (XLU) tracks Utilities Select Sector Index. Vanguard Utilities ETF has $4.77 billion in assets, Utilities Select Sector SPDR ETF has $14.24 billion. Click to get this free report iShares U.S. Utilities ETF (IDU): ETF Research Reports NextEra Energy, Inc. (NEE) : Free Stock Analysis Report Southern Company (The) (SO) : Free Stock Analysis Report Duke Energy Corporation (DUK) : Free Stock Analysis Report Utilities Select Sector SPDR ETF (XLU): ETF Research Reports Vanguard Utilities ETF (VPU): ETF Research Reports To read this article on Zacks.com click here. | Utilities - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. The top 10 holdings account for about 52.13% of total assets under management. Vanguard Utilities ETF (VPU) tracks MSCI US Investable Market Utilities 25/50 Index and the Utilities Select Sector SPDR ETF (XLU) tracks Utilities Select Sector Index. | f7f3f0ed-f9e4-4d6c-a89e-df798e6502b7 |
710495.0 | 2023-12-16 19:00:00 UTC | Should You Invest in the Vanguard Consumer Discretionary ETF (VCR)? | DCOMP | https://www.nasdaq.com/articles/should-you-invest-in-the-vanguard-consumer-discretionary-etf-vcr-10 | nan | nan | If you're interested in broad exposure to the Consumer Discretionary - Broad segment of the equity market, look no further than the Vanguard Consumer Discretionary ETF (VCR), a passively managed exchange traded fund launched on 01/26/2004.
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
Sector ETFs are also funds of convenience, offering many ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Consumer Discretionary - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 13, placing it in bottom 19%.
Index Details
The fund is sponsored by Vanguard. It has amassed assets over $5.27 billion, making it one of the largest ETFs attempting to match the performance of the Consumer Discretionary - Broad segment of the equity market. VCR seeks to match the performance of the MSCI US Investable Market Consumer Discretionary 25/50 Index before fees and expenses.
The MSCI US Investable Market Consumer Discretionary 25/50 Index is designed to transition in and out of securities affected by pending updates to the consumer discretionary sector.
Costs
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.10%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 0.83%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Consumer Discretionary sector--about 100% of the portfolio.
Looking at individual holdings, Amazon.com Inc. (AMZN) accounts for about 22.57% of total assets, followed by Tesla Inc. (TSLA) and Home Depot Inc. (HD).
The top 10 holdings account for about 61.30% of total assets under management.
Performance and Risk
The ETF return is roughly 41.89% and was up about 39.95% so far this year and in the past one year (as of 12/20/2023), respectively. VCR has traded between $213.95 and $308.23 during this last 52-week period.
The ETF has a beta of 1.28 and standard deviation of 25.04% for the trailing three-year period, making it a medium risk choice in the space. With about 311 holdings, it effectively diversifies company-specific risk.
Alternatives
Vanguard Consumer Discretionary ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, VCR is an excellent option for investors seeking exposure to the Consumer Discretionary ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
First Trust Consumer Discretionary AlphaDEX ETF (FXD) tracks StrataQuant Consumer Discretionary Index and the Consumer Discretionary Select Sector SPDR ETF (XLY) tracks Consumer Discretionary Select Sector Index. First Trust Consumer Discretionary AlphaDEX ETF has $1.43 billion in assets, Consumer Discretionary Select Sector SPDR ETF has $19.85 billion. FXD has an expense ratio of 0.61% and XLY charges 0.10%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
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Vanguard Consumer Discretionary ETF (VCR): ETF Research Reports
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
The Home Depot, Inc. (HD) : Free Stock Analysis Report
Tesla, Inc. (TSLA) : Free Stock Analysis Report
Consumer Discretionary Select Sector SPDR ETF (XLY): ETF Research Reports
First Trust Consumer Discretionary AlphaDEX ETF (FXD): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | It has amassed assets over $5.27 billion, making it one of the largest ETFs attempting to match the performance of the Consumer Discretionary - Broad segment of the equity market. VCR seeks to match the performance of the MSCI US Investable Market Consumer Discretionary 25/50 Index before fees and expenses. The ETF has a beta of 1.28 and standard deviation of 25.04% for the trailing three-year period, making it a medium risk choice in the space. | First Trust Consumer Discretionary AlphaDEX ETF (FXD) tracks StrataQuant Consumer Discretionary Index and the Consumer Discretionary Select Sector SPDR ETF (XLY) tracks Consumer Discretionary Select Sector Index. First Trust Consumer Discretionary AlphaDEX ETF has $1.43 billion in assets, Consumer Discretionary Select Sector SPDR ETF has $19.85 billion. Click to get this free report Vanguard Consumer Discretionary ETF (VCR): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report The Home Depot, Inc. (HD) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Consumer Discretionary Select Sector SPDR ETF (XLY): ETF Research Reports First Trust Consumer Discretionary AlphaDEX ETF (FXD): ETF Research Reports To read this article on Zacks.com click here. | First Trust Consumer Discretionary AlphaDEX ETF (FXD) tracks StrataQuant Consumer Discretionary Index and the Consumer Discretionary Select Sector SPDR ETF (XLY) tracks Consumer Discretionary Select Sector Index. First Trust Consumer Discretionary AlphaDEX ETF has $1.43 billion in assets, Consumer Discretionary Select Sector SPDR ETF has $19.85 billion. Click to get this free report Vanguard Consumer Discretionary ETF (VCR): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report The Home Depot, Inc. (HD) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Consumer Discretionary Select Sector SPDR ETF (XLY): ETF Research Reports First Trust Consumer Discretionary AlphaDEX ETF (FXD): ETF Research Reports To read this article on Zacks.com click here. | If you're interested in broad exposure to the Consumer Discretionary - Broad segment of the equity market, look no further than the Vanguard Consumer Discretionary ETF (VCR), a passively managed exchange traded fund launched on 01/26/2004. Annual operating expenses for this ETF are 0.10%, making it one of the least expensive products in the space. Because of this, VCR is an excellent option for investors seeking exposure to the Consumer Discretionary ETFs segment of the market. | 31b71437-4ab2-417e-8aa2-1e909d67ac5b |
710496.0 | 2023-12-16 19:00:00 UTC | Should You Invest in the First Trust Energy AlphaDEX ETF (FXN)? | DCOMP | https://www.nasdaq.com/articles/should-you-invest-in-the-first-trust-energy-alphadex-etf-fxn-10 | nan | nan | The First Trust Energy AlphaDEX ETF (FXN) was launched on 05/08/2007, and is a passively managed exchange traded fund designed to offer broad exposure to the Energy - Broad segment of the equity market.
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
Sector ETFs are also funds of convenience, offering many ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Energy - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 15, placing it in bottom 6%.
Index Details
The fund is sponsored by First Trust Advisors. It has amassed assets over $602.44 million, making it one of the larger ETFs attempting to match the performance of the Energy - Broad segment of the equity market. FXN seeks to match the performance of the StrataQuant Energy Index before fees and expenses.
The StrataQuant Energy Index is a modified equal-dollar weighted index designed by the AMEX to objectively identify and select stocks from the Russell 1000 Index that may generate positive alpha relative to traditional passive style indices through the use of the AlphaDEX screening methodology.
Costs
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0.61%, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 3.14%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Energy sector--about 98.20% of the portfolio.
Looking at individual holdings, Chevron Corporation (CVX) accounts for about 7.07% of total assets, followed by Hf Sinclair Corp. (DINO) and Ovintiv Inc. (OVV).
The top 10 holdings account for about 43.70% of total assets under management.
Performance and Risk
The ETF has added roughly 1.68% so far this year and it's up approximately 3.02% in the last one year (as of 12/20/2023). In that past 52-week period, it has traded between $14.30 and $18.25.
The ETF has a beta of 1.71 and standard deviation of 31.76% for the trailing three-year period, making it a high risk choice in the space. With about 40 holdings, it has more concentrated exposure than peers.
Alternatives
First Trust Energy AlphaDEX ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, FXN is an outstanding option for investors seeking exposure to the Energy ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
Vanguard Energy ETF (VDE) tracks MSCI US Investable Market Energy 25/50 Index and the Energy Select Sector SPDR ETF (XLE) tracks Energy Select Sector Index. Vanguard Energy ETF has $8.03 billion in assets, Energy Select Sector SPDR ETF has $37.15 billion. VDE has an expense ratio of 0.10% and XLE charges 0.10%.
Bottom Line
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First Trust Energy AlphaDEX ETF (FXN): ETF Research Reports
Chevron Corporation (CVX) : Free Stock Analysis Report
Energy Select Sector SPDR ETF (XLE): ETF Research Reports
Vanguard Energy ETF (VDE): ETF Research Reports
Ovintiv Inc. (OVV) : Free Stock Analysis Report
HF Sinclair Corporation (DINO) : 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. | It has amassed assets over $602.44 million, making it one of the larger ETFs attempting to match the performance of the Energy - Broad segment of the equity market. Looking at individual holdings, Chevron Corporation (CVX) accounts for about 7.07% of total assets, followed by Hf Sinclair Corp. (DINO) and Ovintiv Inc. (OVV). The ETF has a beta of 1.71 and standard deviation of 31.76% for the trailing three-year period, making it a high risk choice in the space. | The First Trust Energy AlphaDEX ETF (FXN) was launched on 05/08/2007, and is a passively managed exchange traded fund designed to offer broad exposure to the Energy - Broad segment of the equity market. Vanguard Energy ETF (VDE) tracks MSCI US Investable Market Energy 25/50 Index and the Energy Select Sector SPDR ETF (XLE) tracks Energy Select Sector Index. Click to get this free report First Trust Energy AlphaDEX ETF (FXN): ETF Research Reports Chevron Corporation (CVX) : Free Stock Analysis Report Energy Select Sector SPDR ETF (XLE): ETF Research Reports Vanguard Energy ETF (VDE): ETF Research Reports Ovintiv Inc. (OVV) : Free Stock Analysis Report HF Sinclair Corporation (DINO) : Free Stock Analysis Report To read this article on Zacks.com click here. | Vanguard Energy ETF (VDE) tracks MSCI US Investable Market Energy 25/50 Index and the Energy Select Sector SPDR ETF (XLE) tracks Energy Select Sector Index. Bottom Line To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center. Click to get this free report First Trust Energy AlphaDEX ETF (FXN): ETF Research Reports Chevron Corporation (CVX) : Free Stock Analysis Report Energy Select Sector SPDR ETF (XLE): ETF Research Reports Vanguard Energy ETF (VDE): ETF Research Reports Ovintiv Inc. (OVV) : Free Stock Analysis Report HF Sinclair Corporation (DINO) : Free Stock Analysis Report To read this article on Zacks.com click here. | The First Trust Energy AlphaDEX ETF (FXN) was launched on 05/08/2007, and is a passively managed exchange traded fund designed to offer broad exposure to the Energy - Broad segment of the equity market. Because of this, FXN is an outstanding option for investors seeking exposure to the Energy ETFs segment of the market. Vanguard Energy ETF (VDE) tracks MSCI US Investable Market Energy 25/50 Index and the Energy Select Sector SPDR ETF (XLE) tracks Energy Select Sector Index. | eb10ec73-3f66-45bd-9883-7df4dc69db7d |
710497.0 | 2023-12-16 19:00:00 UTC | Should You Invest in the Invesco Building & Construction ETF (PKB)? | DCOMP | https://www.nasdaq.com/articles/should-you-invest-in-the-invesco-building-construction-etf-pkb-0 | nan | nan | Looking for broad exposure to the Industrials - Engineering and Construction segment of the equity market? You should consider the Invesco Building & Construction ETF (PKB), a passively managed exchange traded fund launched on 10/26/2005.
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
Investor-friendly, sector ETFs provide many options to gain low risk and diversified exposure to a broad group of companies in particular sectors. Industrials - Engineering and Construction is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 5, placing it in top 31%.
Index Details
The fund is sponsored by Invesco. It has amassed assets over $249.16 million, making it one of the average sized ETFs attempting to match the performance of the Industrials - Engineering and Construction segment of the equity market. PKB seeks to match the performance of the Dynamic Building & Construction Intellidex Index before fees and expenses.
The Dynamic Building & Construction Intellidex Index is comprised of stocks of U.S. building and construction companies. The Index is designed to provide capital appreciation by thoroughly evaluating companies based on a variety of investment merit criteria, including fundamental growth, stock valuation, investment timeliness and risk factors.
Costs
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for this ETF are 0.62%, making it one of the more expensive products in the space.
It has a 12-month trailing dividend yield of 0.33%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Consumer Discretionary sector--about 59% of the portfolio. Industrials and Materials round out the top three.
Looking at individual holdings, Lennox International Inc (LII) accounts for about 5.76% of total assets, followed by Nvr Inc (NVR) and Vulcan Materials Co (VMC).
The top 10 holdings account for about 47.25% of total assets under management.
Performance and Risk
So far this year, PKB has added about 54.28%, and it's up approximately 53.37% in the last one year (as of 12/20/2023). During this past 52-week period, the fund has traded between $40.34 and $62.90.
The ETF has a beta of 1.31 and standard deviation of 26.02% for the trailing three-year period, making it a high risk choice in the space. With about 31 holdings, it has more concentrated exposure than peers.
Alternatives
Invesco Building & Construction ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, PKB is a reasonable option for those seeking exposure to the Industrials ETFs area of the market. Investors might also want to consider some other ETF options in the space.
SPDR S&P Homebuilders ETF (XHB) tracks S&P Homebuilders Select Industry Index and the iShares U.S. Home Construction ETF (ITB) tracks Dow Jones U.S. Select Home Construction Index. SPDR S&P Homebuilders ETF has $1.63 billion in assets, iShares U.S. Home Construction ETF has $2.47 billion. XHB has an expense ratio of 0.35% and ITB charges 0.40%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Invesco Building & Construction ETF (PKB): ETF Research Reports
Vulcan Materials Company (VMC) : Free Stock Analysis Report
Lennox International, Inc. (LII) : Free Stock Analysis Report
NVR, Inc. (NVR) : Free Stock Analysis Report
SPDR S&P Homebuilders ETF (XHB): ETF Research Reports
iShares U.S. Home Construction ETF (ITB): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | You should consider the Invesco Building & Construction ETF (PKB), a passively managed exchange traded fund launched on 10/26/2005. It has amassed assets over $249.16 million, making it one of the average sized ETFs attempting to match the performance of the Industrials - Engineering and Construction segment of the equity market. The ETF has a beta of 1.31 and standard deviation of 26.02% for the trailing three-year period, making it a high risk choice in the space. | You should consider the Invesco Building & Construction ETF (PKB), a passively managed exchange traded fund launched on 10/26/2005. SPDR S&P Homebuilders ETF (XHB) tracks S&P Homebuilders Select Industry Index and the iShares U.S. Home Construction ETF (ITB) tracks Dow Jones U.S. Click to get this free report Invesco Building & Construction ETF (PKB): ETF Research Reports Vulcan Materials Company (VMC) : Free Stock Analysis Report Lennox International, Inc. (LII) : Free Stock Analysis Report NVR, Inc. (NVR) : Free Stock Analysis Report SPDR S&P Homebuilders ETF (XHB): ETF Research Reports iShares U.S. Home Construction ETF (ITB): ETF Research Reports To read this article on Zacks.com click here. | Alternatives Invesco Building & Construction ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Bottom Line To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center. Click to get this free report Invesco Building & Construction ETF (PKB): ETF Research Reports Vulcan Materials Company (VMC) : Free Stock Analysis Report Lennox International, Inc. (LII) : Free Stock Analysis Report NVR, Inc. (NVR) : Free Stock Analysis Report SPDR S&P Homebuilders ETF (XHB): ETF Research Reports iShares U.S. Home Construction ETF (ITB): ETF Research Reports To read this article on Zacks.com click here. | Investor-friendly, sector ETFs provide many options to gain low risk and diversified exposure to a broad group of companies in particular sectors. PKB seeks to match the performance of the Dynamic Building & Construction Intellidex Index before fees and expenses. Annual operating expenses for this ETF are 0.62%, making it one of the more expensive products in the space. | 7c7dee25-09ff-4217-a99d-cf7f0d8b86d6 |
710498.0 | 2023-12-16 19:00:00 UTC | Should Invesco S&P MidCap Value with Momentum ETF (XMVM) Be on Your Investing Radar? | DCOMP | https://www.nasdaq.com/articles/should-invesco-sp-midcap-value-with-momentum-etf-xmvm-be-on-your-investing-radar-7 | nan | nan | If you're interested in broad exposure to the Mid Cap Value segment of the US equity market, look no further than the Invesco S&P MidCap Value with Momentum ETF (XMVM), a passively managed exchange traded fund launched on 03/03/2005.
The fund is sponsored by Invesco. It has amassed assets over $244.80 million, making it one of the average sized ETFs attempting to match the Mid Cap Value segment of the US equity market.
Why Mid Cap Value
Compared to large and small cap companies, mid cap businesses tend to have higher growth prospects and are less volatile, respectively, with market capitalization between $2 billion and $10 billion. Thus they have a nice balance of growth potential and stability.
Value stocks are known for their lower than average price-to-earnings and price-to-book ratios, but investors should also note their lower than average sales and earnings growth rates. While value stocks have outperformed growth stocks in nearly all markets when you consider long-term performance, growth stocks are more likely to outpace value stocks in strong bull markets.
Costs
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.39%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.56%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Financials sector--about 24.40% of the portfolio. Consumer Discretionary and Industrials round out the top three.
Looking at individual holdings, Pbf Energy Inc (PBF) accounts for about 3.57% of total assets, followed by Hf Sinclair Corp (DINO) and Avnet Inc (AVT).
The top 10 holdings account for about 24.07% of total assets under management.
Performance and Risk
XMVM seeks to match the performance of the S&P MIDCAP 400 HIGH MOMENTUM VALUE INDEX before fees and expenses. The S&P MidCap 400 High Momentum Value Index is composed of securities with strong value characteristics selected from the Russell Midcap Index.
The ETF has added roughly 16.25% so far this year and it's up approximately 18.85% in the last one year (as of 12/20/2023). In the past 52-week period, it has traded between $40.38 and $50.41.
The ETF has a beta of 1.16 and standard deviation of 23.63% for the trailing three-year period. With about 79 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco S&P MidCap Value with Momentum ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, XMVM is a good option for those seeking exposure to the Style Box - Mid Cap Value area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Russell Mid-Cap Value ETF (IWS) and the Vanguard Mid-Cap Value ETF (VOE) track a similar index. While iShares Russell Mid-Cap Value ETF has $13.26 billion in assets, Vanguard Mid-Cap Value ETF has $16.45 billion. IWS has an expense ratio of 0.23% and VOE charges 0.07%.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Invesco S&P MidCap Value with Momentum ETF (XMVM): ETF Research Reports
Avnet, Inc. (AVT) : Free Stock Analysis Report
PBF Energy Inc. (PBF) : Free Stock Analysis Report
Vanguard Mid-Cap Value ETF (VOE): ETF Research Reports
iShares Russell Mid-Cap Value ETF (IWS): ETF Research Reports
HF Sinclair Corporation (DINO) : 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. | If you're interested in broad exposure to the Mid Cap Value segment of the US equity market, look no further than the Invesco S&P MidCap Value with Momentum ETF (XMVM), a passively managed exchange traded fund launched on 03/03/2005. It has amassed assets over $244.80 million, making it one of the average sized ETFs attempting to match the Mid Cap Value segment of the US equity market. Bottom-Line Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. | Looking at individual holdings, Pbf Energy Inc (PBF) accounts for about 3.57% of total assets, followed by Hf Sinclair Corp (DINO) and Avnet Inc (AVT). While iShares Russell Mid-Cap Value ETF has $13.26 billion in assets, Vanguard Mid-Cap Value ETF has $16.45 billion. Click to get this free report Invesco S&P MidCap Value with Momentum ETF (XMVM): ETF Research Reports Avnet, Inc. (AVT) : Free Stock Analysis Report PBF Energy Inc. (PBF) : Free Stock Analysis Report Vanguard Mid-Cap Value ETF (VOE): ETF Research Reports iShares Russell Mid-Cap Value ETF (IWS): ETF Research Reports HF Sinclair Corporation (DINO) : Free Stock Analysis Report To read this article on Zacks.com click here. | Alternatives Invesco S&P MidCap Value with Momentum ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center. Click to get this free report Invesco S&P MidCap Value with Momentum ETF (XMVM): ETF Research Reports Avnet, Inc. (AVT) : Free Stock Analysis Report PBF Energy Inc. (PBF) : Free Stock Analysis Report Vanguard Mid-Cap Value ETF (VOE): ETF Research Reports iShares Russell Mid-Cap Value ETF (IWS): ETF Research Reports HF Sinclair Corporation (DINO) : Free Stock Analysis Report To read this article on Zacks.com click here. | If you're interested in broad exposure to the Mid Cap Value segment of the US equity market, look no further than the Invesco S&P MidCap Value with Momentum ETF (XMVM), a passively managed exchange traded fund launched on 03/03/2005. While value stocks have outperformed growth stocks in nearly all markets when you consider long-term performance, growth stocks are more likely to outpace value stocks in strong bull markets. Sector Exposure and Top Holdings ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. | 11bdc569-c3b4-4321-bfd9-69238a970ee4 |
710499.0 | 2023-12-16 19:00:00 UTC | Where Will EPR Properties Be in 5 Years? | DCOMP | https://www.nasdaq.com/articles/where-will-epr-properties-be-in-5-years-0 | nan | nan | On the lead page of EPR Properties' (NYSE: EPR) third-quarter 2023 investor presentation are pictures of people playing golf, at a waterpark, and riding in a go-cart. That sums up the real estate investment trust's (REIT's) focus on experiential properties, but it hides an important fact about the company and its future. Here's why EPR isn't going to be the same company it is today in five years' time.
EPR is focused on bringing people together
During the early days of the coronavirus pandemic, there was a great deal of uncertainty. That led governments around the world to, effectively, shut their economies down in an effort to limit the spread of the illness. A particular effort was put toward social distancing since COVID-19 was spreading quickly in group settings. EPR's portfolio is filled with assets that bring people into groups for fun. To ensure that it could survive this period, EPR suspended its dividend, which was probably a very good idea.
Image source: Getty Images.
That was a long time ago now, and EPR's tenants are back open again. Most of its lessees are doing better now than before the pandemic, with rental coverage of 2.6 times today compared to 2.0 times in 2019. That's great news, but there's one specific group that's still struggling -- movie theaters. Rent coverage for theaters is just 1.4 times right now, down from 1.7 times in 2019.
That's a bigger problem than it may seem like, because movie theaters account for roughly 39% of the REIT's business. Think about that for a second -- roughly 40% of EPR's portfolio is underperforming. That is the single largest exposure to an industry that the REIT has in its portfolio. Something needs to be done about that, and that fact isn't lost on management.
Change is in the air at EPR
EPR's stated long-term goal is to reduce its exposure to movie theaters. That's the right plan, and investors should be pleased to hear it. There's just one problem: It has a lot of work to do before that exposure can be materially reduced.
For starters, there are still some movie theater operators that are struggling. EPR has reworked some leases with big tenants, but there's likely more work to be done on this front. It has 19 tenants in the theater business. Such negotiations aren't easy and take time. In other words, investors shouldn't expect quick action here.
Then there's the sheer size of the theater business in the portfolio. While EPR could sell assets, it would be hard to sell down that many assets (it owns 169 theater properties) without disrupting the company's overall business in a negative way. Spinning the theaters off would be similarly difficult, and it is unlikely that investors would be too happy with the move, given the troubles facing the theater properties.
In other words, it seems most likely that a slow and steady reduction will be the order of the day. After all, there are likely to be some worthwhile diamonds in the rough that EPR will want to keep. So, in five years, EPR's portfolio will probably look drastically different than it does today, with movie theater exposure much reduced. While the change may come in fits and starts, it probably won't be an overnight shift. But as theaters become less important, investors are likely to reevaluate their opinion of EPR in a positive direction.
EPR is already starting to look better
EPR isn't a slam-dunk investment, given that there's material execution risk ahead as it looks to shrink its single largest property exposure. That said, the dividend is back and has been increased twice. The adjusted funds from operations (FFO) payout ratio was a fairly modest 55% or so in the third quarter, which suggests management is being reasonably conservative with the dividend. Yet the yield is a very attractive 7%.
If you can stomach a little uncertainty as EPR works to adjust its portfolio, it seems likely that the changes over the next five years will be good news for the stock price. And you can collect a well-covered dividend while you wait out the overhaul.
Should you invest $1,000 in EPR Properties right now?
Before you buy stock in EPR Properties, consider this:
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Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool recommends EPR Properties. 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 sums up the real estate investment trust's (REIT's) focus on experiential properties, but it hides an important fact about the company and its future. The adjusted funds from operations (FFO) payout ratio was a fairly modest 55% or so in the third quarter, which suggests management is being reasonably conservative with the dividend. If you can stomach a little uncertainty as EPR works to adjust its portfolio, it seems likely that the changes over the next five years will be good news for the stock price. | EPR is already starting to look better EPR isn't a slam-dunk investment, given that there's material execution risk ahead as it looks to shrink its single largest property exposure. Before you buy stock in EPR Properties, 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 EPR Properties wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 18, 2023 Reuben Gregg Brewer has no position in any of the stocks mentioned. | Change is in the air at EPR EPR's stated long-term goal is to reduce its exposure to movie theaters. EPR is already starting to look better EPR isn't a slam-dunk investment, given that there's material execution risk ahead as it looks to shrink its single largest property exposure. Before you buy stock in EPR Properties, 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 EPR Properties wasn't one of them. | That's a bigger problem than it may seem like, because movie theaters account for roughly 39% of the REIT's business. If you can stomach a little uncertainty as EPR works to adjust its portfolio, it seems likely that the changes over the next five years will be good news for the stock price. Before you buy stock in EPR Properties, 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 EPR Properties wasn't one of them. | 9518f696-955e-4276-b19a-d1c3a4a6d5ed |
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