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710500.0 | 2023-12-16 19:00:00 UTC | New Strong Buy Stocks for December 20th | DCOMP | https://www.nasdaq.com/articles/new-strong-buy-stocks-for-december-20th-1 | nan | nan | Here are five stocks added to the Zacks Rank #1 (Strong Buy) List today:
Strattec Security Corporation STRT: This automotive access control solutions provider has seen the Zacks Consensus Estimate for its current year earnings increasing 960% over the last 60 days.
Strattec Security Corporation Price and Consensus
Strattec Security Corporation price-consensus-chart | Strattec Security Corporation Quote
Clear Secure, Inc. YOU: This identity platform provider has seen the Zacks Consensus Estimate for its current year earnings increasing 26.2% over the last 60 days.
CLEAR Secure, Inc. Price and Consensus
CLEAR Secure, Inc. price-consensus-chart | CLEAR Secure, Inc. Quote
MINISO Group Holding Limited MNSO: This investment holding company has seen the Zacks Consensus Estimate for its current year earnings increasing 9.8% over the last 60 days.
MINISO Group Holding Limited Unsponsored ADR Price and Consensus
MINISO Group Holding Limited Unsponsored ADR price-consensus-chart | MINISO Group Holding Limited Unsponsored ADR Quote
Stewart Information Services Corporation STC: This company which provides title insurance and real estate transaction related services has seen the Zacks Consensus Estimate for its current year earnings increasing 29% over the last 60 days.
Stewart Information Services Corporation Price and Consensus
Stewart Information Services Corporation price-consensus-chart | Stewart Information Services Corporation Quote
Duolingo, Inc. DUOL: This mobile learning platform provider has seen the Zacks Consensus Estimate for its current year earnings increasing 457.1% over the last 60 days.
Duolingo, Inc. Price and Consensus
Duolingo, Inc. price-consensus-chart | Duolingo, Inc. Quote
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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Stewart Information Services Corporation (STC) : Free Stock Analysis Report
Strattec Security Corporation (STRT) : Free Stock Analysis Report
MINISO Group Holding Limited Unsponsored ADR (MNSO) : Free Stock Analysis Report
CLEAR Secure, Inc. (YOU) : Free Stock Analysis Report
Duolingo, Inc. (DUOL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Here are five stocks added to the Zacks Rank #1 (Strong Buy) List today: Strattec Security Corporation STRT: This automotive access control solutions provider has seen the Zacks Consensus Estimate for its current year earnings increasing 960% over the last 60 days. MINISO Group Holding Limited Unsponsored ADR Price and Consensus MINISO Group Holding Limited Unsponsored ADR price-consensus-chart | MINISO Group Holding Limited Unsponsored ADR Quote Stewart Information Services Corporation STC: This company which provides title insurance and real estate transaction related services has seen the Zacks Consensus Estimate for its current year earnings increasing 29% over the last 60 days. From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. | MINISO Group Holding Limited Unsponsored ADR Price and Consensus MINISO Group Holding Limited Unsponsored ADR price-consensus-chart | MINISO Group Holding Limited Unsponsored ADR Quote Stewart Information Services Corporation STC: This company which provides title insurance and real estate transaction related services has seen the Zacks Consensus Estimate for its current year earnings increasing 29% over the last 60 days. Stewart Information Services Corporation Price and Consensus Stewart Information Services Corporation price-consensus-chart | Stewart Information Services Corporation Quote Duolingo, Inc. DUOL: This mobile learning platform provider has seen the Zacks Consensus Estimate for its current year earnings increasing 457.1% over the last 60 days. Click to get this free report Stewart Information Services Corporation (STC) : Free Stock Analysis Report Strattec Security Corporation (STRT) : Free Stock Analysis Report MINISO Group Holding Limited Unsponsored ADR (MNSO) : Free Stock Analysis Report CLEAR Secure, Inc. (YOU) : Free Stock Analysis Report Duolingo, Inc. (DUOL) : Free Stock Analysis Report To read this article on Zacks.com click here. | Strattec Security Corporation Price and Consensus Strattec Security Corporation price-consensus-chart | Strattec Security Corporation Quote Clear Secure, Inc. YOU: This identity platform provider has seen the Zacks Consensus Estimate for its current year earnings increasing 26.2% over the last 60 days. MINISO Group Holding Limited Unsponsored ADR Price and Consensus MINISO Group Holding Limited Unsponsored ADR price-consensus-chart | MINISO Group Holding Limited Unsponsored ADR Quote Stewart Information Services Corporation STC: This company which provides title insurance and real estate transaction related services has seen the Zacks Consensus Estimate for its current year earnings increasing 29% over the last 60 days. Click to get this free report Stewart Information Services Corporation (STC) : Free Stock Analysis Report Strattec Security Corporation (STRT) : Free Stock Analysis Report MINISO Group Holding Limited Unsponsored ADR (MNSO) : Free Stock Analysis Report CLEAR Secure, Inc. (YOU) : Free Stock Analysis Report Duolingo, Inc. (DUOL) : Free Stock Analysis Report To read this article on Zacks.com click here. | CLEAR Secure, Inc. Price and Consensus CLEAR Secure, Inc. price-consensus-chart | CLEAR Secure, Inc. Quote MINISO Group Holding Limited MNSO: This investment holding company has seen the Zacks Consensus Estimate for its current year earnings increasing 9.8% over the last 60 days. Stewart Information Services Corporation Price and Consensus Stewart Information Services Corporation price-consensus-chart | Stewart Information Services Corporation Quote Duolingo, Inc. DUOL: This mobile learning platform provider has seen the Zacks Consensus Estimate for its current year earnings increasing 457.1% over the last 60 days. Be First to New Top 10 Stocks >> Want the latest recommendations from Zacks Investment Research? | 1eb68c76-4fa3-4aad-b13a-3f65ce2b8c9b |
710501.0 | 2023-12-16 19:00:00 UTC | 2 Top Growth Stocks to Buy Right Now and Hold for 2024 and Beyond | DCOMP | https://www.nasdaq.com/articles/2-top-growth-stocks-to-buy-right-now-and-hold-for-2024-and-beyond | nan | nan | To be classified as a growth stock, a company should be developing new products or services that help it gain share in existing markets, enter new markets, or create entirely new ones. These characteristics often lead to increased earnings growth rates, providing investors a path to generate substantial returns over the long term as products and markets evolve.
There are plenty of growth stocks out there today, but only some have as clear of a path to long-term success as Coinbase Global (NASDAQ: COIN) and Tesla (NASDAQ: TSLA). With their embrace of innovation and expanding business models, the future is bright for these two companies. Let's dive deeper to see why Tesla and Coinbase should belong in every growth investor's portfolio.
Image source: Getty Images.
Leading the crypto revolution
It's no secret that Coinbase's success is closely tied to the health of the cryptocurrency market. So when crypto fell into a bear market, Coinbase's profits took a severe hit. At its lowest point, Coinbase posted a colossal $1 billion loss in the second quarter of 2022, but much has changed since the depths of the most recent crypto winter.
One of the main reasons Coinbase incurred such heavy losses was its reliance upon transaction fees as its primary source of revenue. At one point making up more than 90% of total revenue, when crypto prices plummeted and trading activity dried up, Coinbase's concentrated revenue model posed a serious threat to its future success.
But during the crypto winter, Coinbase used the downtime to rebuild and diversify. Today, the company generates just 53% of revenue from transaction fees as its innovative Subscription and Services product suite continues to grow.
Comprised of staking rewards, custodial fees, and earnings derived from its partnership with the issuer of USDC, a stablecoin pegged to the U.S. dollar, Subscriptions and Services is just one part of Coinbase's revitalization. In the last year, Coinbase launched its own blockchain, implemented an international expansion strategy, and released new derivative products for retail and institutional investors. Add in the fact that expenses are down nearly one-third from last year, and Coinbase is now just $2 million away from turning a profit.
With its revamped revenue model and cost-cutting measures, Coinbase is better prepared to mitigate the short-term volatility that often occurs in crypto. However, its long-term success is even more promising as the cryptocurrency market is projected to grow at a compound annual growth rate of 30% over the next five years.
For investors, Coinbase offers a clear and easy choice. Its resilience during the crypto winter should provide investors with confidence that it can navigate future uncertainties, while its diversified revenue model should generate healthy returns as crypto legitimization progresses.
A true company of the future
It's no wonder that Tesla is one of the first companies that investors might think of when considering long-term growth opportunities. With its stronghold on the electric vehicle (EV) industry and growing trends in EV adoption, the company offers investors seeking long-term growth an excellent opportunity. Yet, while Tesla's position at the top of the EV market will likely continue well into the future, its most lucrative potential might actually come from other endeavors.
One of those is autonomous driving. Tesla's pursuit of eradicating drivers has been in the works for quite a while, but recent advancements hint that the fateful day might be closer than ever. While progress remains until it reaches the coveted Level 4 or 5 of autonomy, once Tesla does, it will not only change how we travel but also its revenue. Hoping to launch a robotaxi fleet, CEO Elon Musk believes autonomous driving is the catalyst that will send Tesla to a $10 trillion valuation.
While Musk is no stranger to wishful thinking and optimistic predictions, he isn't alone in this belief. A report from Ark Invest estimates that the successful development of autonomy and the launch of a robotaxi fleet could generate up to $600 billion in additional revenue, a significant increase from the company's yearly revenue of nearly $100 billion today.
Tesla's EV success and the potential impact of robotaxis make it a promising long-term growth option. However, the company's prospects become even more exciting when considering the development of its humanoid robot, Optimus, and its supercomputer, Dojo. With its position at the forefront of innovative technologies such as artificial intelligence and robotics, Tesla is one of the few companies that offer investors exposure to the most thrilling advancements of tomorrow.
Should you invest $1,000 in Coinbase Global right now?
Before you buy stock in Coinbase Global, 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 Coinbase Global wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
See the 10 stocks
*Stock Advisor returns as of December 18, 2023
RJ Fulton has positions in Coinbase Global and Tesla. The Motley Fool has positions in and recommends Coinbase Global 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. | These characteristics often lead to increased earnings growth rates, providing investors a path to generate substantial returns over the long term as products and markets evolve. Comprised of staking rewards, custodial fees, and earnings derived from its partnership with the issuer of USDC, a stablecoin pegged to the U.S. dollar, Subscriptions and Services is just one part of Coinbase's revitalization. With its position at the forefront of innovative technologies such as artificial intelligence and robotics, Tesla is one of the few companies that offer investors exposure to the most thrilling advancements of tomorrow. | These characteristics often lead to increased earnings growth rates, providing investors a path to generate substantial returns over the long term as products and markets evolve. Today, the company generates just 53% of revenue from transaction fees as its innovative Subscription and Services product suite continues to grow. A report from Ark Invest estimates that the successful development of autonomy and the launch of a robotaxi fleet could generate up to $600 billion in additional revenue, a significant increase from the company's yearly revenue of nearly $100 billion today. | There are plenty of growth stocks out there today, but only some have as clear of a path to long-term success as Coinbase Global (NASDAQ: COIN) and Tesla (NASDAQ: TSLA). Before you buy stock in Coinbase Global, 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 Coinbase Global wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 18, 2023 RJ Fulton has positions in Coinbase Global and Tesla. | There are plenty of growth stocks out there today, but only some have as clear of a path to long-term success as Coinbase Global (NASDAQ: COIN) and Tesla (NASDAQ: TSLA). Today, the company generates just 53% of revenue from transaction fees as its innovative Subscription and Services product suite continues to grow. Its resilience during the crypto winter should provide investors with confidence that it can navigate future uncertainties, while its diversified revenue model should generate healthy returns as crypto legitimization progresses. | b09545a0-667b-4be8-9a7a-df8188c8343a |
710502.0 | 2023-12-16 19:00:00 UTC | MORNING BID AMERICAS-Global disinflation cheer as records break | DCOMP | https://www.nasdaq.com/articles/morning-bid-americas-global-disinflation-cheer-as-records-break | nan | nan | A look at the day ahead in U.S. and global markets from Mike Dolan
Wall Street is zooming into year-end holidays cracking as global disinflation tailwinds lifted bonds and stocks across the world, potentially tempting switches in 2024.
As the S&P500 .SPX crept to within 1% of all-time highs on Tuesday and tracking its best quarter since 2020, the Nasdaq 100 .NDX - up more than 50% this year - clocked a new record and the vanguard of megacap tech giants .NYFANG has now doubled in 2023.
With 2024 rate cut euphoria filling the pre-Christmas air, 10-year U.S. Treasury yields US10YT=RR fell to their lowest since July at 3.8830% early on Wednesday - spurred in large part by a surge in British markets on a surprisingly sharp drop in UK inflation last month.
Ten-year gilt yields GB10YT=RR plumbed their lowest since April at 3.51% and the FTSE100 .FTSE jumped 1% on news annual UK consumer price inflation dropped to 3.9% from October's 4.6% - below all forecasts and the Bank of England's expectation that CPI would be only just below 4.5% at the end of the year.
Knocking sterling GBP= back in the process, UK money markets shifted to price the first BoE rate cut as soon as March and two quarter-point cuts by midyear.
With U.S. traders eyeing a 20-year Treasury auction later in the day, the bond boom filtered around the globe - with 10-year German bund yields DE10YT=RR sinking below 2% for the first time since March. Italian equivalents IT10YT=RR plunged to their lowest of the year, with the premium over Germany shrinking to its narrowest since June.
Even though some central banks continued to push back against what they see as excessive rate cut bets for next year, the demand for long duration bonds on the turn of the interest rate cycle generally was unabated.
Chicago Federal Reserve boss Austan Goolsbee said markets had got "a little ahead of themselves" but inflation progress would dictate the pace of Fed easing from here.
Bundesbank chief and hawkish European Central Bank policymaker Joachim Nagel said rates most likely had peaked but added: ""I would say to everyone who is speculating on an imminent interest rate cut: be careful"
However, other Fed officials insisted policy plans should stay focussed and not get overly distracted with what was happening on markets.
"One of the things I've learned is I don't control markets and so they're going to do what they're going to do," Richmond Fed President Thomas Barkin said on Tuesday.
Even though MSCI's all-country stock index .MIWD00000PUS powered to its best levels since March last year, U.S. stock futures took a bit of a breather and stepped back from latest peaks early on Wednesday.
Cooling the mood was a profit miss from global delivery firm FedExFDX.N, whose shares dropped almost 10% after the bell on Tuesday after it cut full-year revenue forecasts as its largest Express business saw demand from the U.S. Postal Service drop.
U.S. consumer confidence readings for December will be watched closely later today, but housing market readouts this week have been upbeat.
Gains against sterling GBP= aside, the dollar .DXY was mixed. Crude oil prices were a touch higher, but still negative year-on-year and U.S. naval force protection for Red Sea shipping helped ease jitters about threats to supply chains there.
Overseas, the worrying funk in China's economy seemed to be spreading as Japan's exports fell last month for the first time in three months dragged down by China-bound chip shipments.
But stocks and bonds in Tokyo continued to be buoyed by this week's decision by the Bank of Japan to stand pat on its super-easy monetary policy.
Toshiba6502.T was delisted on Wednesday after 74 years on the Tokyo exchange, following a decade of upheaval and scandal that ushered in a buyout and an uncertain future.
China's markets .CSI300, as so often this year, underperformed yet again and lost another 1% on Tuesday to hit their lowest in almost five years. Freezing weather there added to chill.
A Bank of America Asia fund manager survey showed more than 60% of investors would rather stick to a wait-and-watch approach or look for opportunities elsewhere than be exposed to China equities. "Investor interest towards risk assets in China is shockingly low," the report said.
In politics, next year's U.S. election speculation hovered into view again after Colorado's top court ruled former President Donald Trump was disqualified from serving as president and cannot appear on the primary ballot because of his role in the 2021 attack on the U.S. Capitol by his supporters.
Key developments that should provide more direction to U.S. markets later on Wednesday:
-U.S. Dec consumer confidence, Nov existing home sales, Q3 current account
-Chicago Federal Reserve President Austan Goolsbee; European Central Bank chief economist Philip Lane speaks; Bank of Canada meeting minutes.
-U.S. treasury auctions 20-year bonds
-European Union finance ministers hold teleconference to clinch deal on EU fiscal and debt rules
-U.S. corporate earnings: Micron Technology, General Mills
(Editing by Bernadette Baum)
((mike.dolan@thomsonreuters.com; +44 207 542 8488; Reuters Messaging: mike.dolan.reuters.com@thomsonreuters.net/))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | With 2024 rate cut euphoria filling the pre-Christmas air, 10-year U.S. Treasury yields US10YT=RR fell to their lowest since July at 3.8830% early on Wednesday - spurred in large part by a surge in British markets on a surprisingly sharp drop in UK inflation last month. Ten-year gilt yields GB10YT=RR plumbed their lowest since April at 3.51% and the FTSE100 .FTSE jumped 1% on news annual UK consumer price inflation dropped to 3.9% from October's 4.6% - below all forecasts and the Bank of England's expectation that CPI would be only just below 4.5% at the end of the year. Crude oil prices were a touch higher, but still negative year-on-year and U.S. naval force protection for Red Sea shipping helped ease jitters about threats to supply chains there. | Ten-year gilt yields GB10YT=RR plumbed their lowest since April at 3.51% and the FTSE100 .FTSE jumped 1% on news annual UK consumer price inflation dropped to 3.9% from October's 4.6% - below all forecasts and the Bank of England's expectation that CPI would be only just below 4.5% at the end of the year. Chicago Federal Reserve boss Austan Goolsbee said markets had got "a little ahead of themselves" but inflation progress would dictate the pace of Fed easing from here. Key developments that should provide more direction to U.S. markets later on Wednesday: -U.S. Dec consumer confidence, Nov existing home sales, Q3 current account -Chicago Federal Reserve President Austan Goolsbee; European Central Bank chief economist Philip Lane speaks; Bank of Canada meeting minutes. | With 2024 rate cut euphoria filling the pre-Christmas air, 10-year U.S. Treasury yields US10YT=RR fell to their lowest since July at 3.8830% early on Wednesday - spurred in large part by a surge in British markets on a surprisingly sharp drop in UK inflation last month. Even though some central banks continued to push back against what they see as excessive rate cut bets for next year, the demand for long duration bonds on the turn of the interest rate cycle generally was unabated. Bundesbank chief and hawkish European Central Bank policymaker Joachim Nagel said rates most likely had peaked but added: ""I would say to everyone who is speculating on an imminent interest rate cut: be careful" However, other Fed officials insisted policy plans should stay focussed and not get overly distracted with what was happening on markets. | With 2024 rate cut euphoria filling the pre-Christmas air, 10-year U.S. Treasury yields US10YT=RR fell to their lowest since July at 3.8830% early on Wednesday - spurred in large part by a surge in British markets on a surprisingly sharp drop in UK inflation last month. Knocking sterling GBP= back in the process, UK money markets shifted to price the first BoE rate cut as soon as March and two quarter-point cuts by midyear. Even though some central banks continued to push back against what they see as excessive rate cut bets for next year, the demand for long duration bonds on the turn of the interest rate cycle generally was unabated. | d31e4e37-a589-4c2b-822f-a26828265a47 |
710503.0 | 2023-12-16 19:00:00 UTC | Got $5,000? Here's How to Turn It Into Over $300 of Annual Passive Income in 2024 | DCOMP | https://www.nasdaq.com/articles/got-%245000-heres-how-to-turn-it-into-over-%24300-of-annual-passive-income-in-2024 | nan | nan | Buying and holding dividend stocks is an easy way to start generating passive income. Many companies pay their investors a share of their profits each quarter (or each month, in some cases). Those payouts are often increased as the companies grow their earnings.
There are many high-quality dividend stocks that pay reliable and steadily rising dividends. Here are five top-notch companies that offer higher-yielding dividends that should grow in 2024 and beyond.
COMPANY
CURRENT YIELD
ANNUAL DIVIDEND FROM A $1,000 INITIAL INVESTMENT
Energy Transfer (NYSE: ET)
9.02%
$90.20
Clearway Energy (NYSE: CWEN)(NYSE: CWEN.A)
6.08%
$60.80
Realty Income (NYSE: O)
5.42%
$54.20
Brookfield Infrastructure (NYSE: BIPC)(NYSE: BIP)
4.28%
$42.80
Verizon (NYSE: VZ)
7.07%
$70.70
Total
6.37%
$318.70
Data source: Google Finance and author's calculations.
As that table shows, $5,000 invested evenly across these five companies could produce more than $300 in dividends next year. And they're great options for those seeking to generate a steadily rising passive income stream.
Energy Transfer
Energy Transfer is a master limited partnership (MLP) that operates midstream energy assets such as pipelines and processing plants. Those assets produce stable cash flows backed by long-term contracts and government-regulated rate structures. That provides Energy Transfer with predictable cash flow to pay dividends.
The MLP typically distributes a little more than half its cash flow to investors. It retains the rest to fund expansion projects and maintain a strong financial profile. Energy Transfer currently has several projects under construction that should start contributing to its cash flow in 2024. On top of that, the company recently made two needle-moving acquisitions. Those growth drivers will give the MLP plenty of fuel to hit its target of growing its already massive payout by 3% to 5% per year.
Clearway Energy
Clearway Energy owns and operates renewable energy and natural gas power generating facilities. It sells the electricity those assets produce to utilities and corporate buyers under long-term, fixed-rate agreements. Those contracts supply it with predictable cash flows.
The company has set a target for growing its already high-yielding payout by 5% to 8% annually, and expects its hikes will land near the upper end of that target range through 2026. It has already secured all the investments and funding needed to achieve that. It cashed in on its thermal business in 2022, giving it funds to recycle into higher-returning renewable energy investments. It has already closed several acquisitions that should power growth in 2024. Meanwhile, it has secured deals to buy several more renewable energy projects that are currently under development, giving it a clear view of how it will position itself to cover the dividend growth it is targeting.
Realty Income
Real estate investment trust (REIT) Realty Income focuses on commercial real estate. It has a diversified portfolio of properties (primarily retail, industrial, and gaming) being rented out under long-term net leases. That lease structure provides it with steadily rising rental incomes, as the rates often rise each year.
The REIT steadily expands its portfolio by investing in additional income-generating real estate. It recently agreed to buy fellow REIT Spirit Realty in a $9.3 billion deal, which will boost its adjusted funds from operations by more than 2.5% per share next year. That's over half its targeted annual growth rate of 4% to 5%. The company has lots of ways to continue growing because it has steadily expanded its reach into new property types (data centers and vertical farming), countries (Italy and Ireland), and investment platforms (credit). Its steady growth should enable Realty Income to continue hiking its monthly payouts, something it has done 123 times since its public market listing in 1994.
Brookfield Infrastructure
Brookfield Infrastructure owns a diversified portfolio of infrastructure businesses in the utility, energy midstream, transportation, and data infrastructure industries. These businesses generate steadily rising cash flows backed by long-term contracts and government-regulated rate structures that typically feature inflation-linked rate escalation clauses. That gives it the funds to pay a growing dividend. Brookfield has increased its payout for 14 straight years, and at an 8% annualized rate over the last decade.
The company aims to keep increasing its payouts by 5% to 9% annually. Its revenue growth drivers include inflation-linked rate increases, development projects, and acquisitions. Brookfield has secured four needle-moving deals this year (three data center investments and a leading global container leasing company). Those acquisitions should give it the fuel to grow its funds from operations per share at a double-digit-percentage pace again in 2024.
Verizon
Telecom giant Verizon needs no introduction. It's a leading provider of mobile and broadband services. Those businesses generate tremendous cash flows, giving the company the funds to invest in growing its business (5G), pay a steadily rising dividend, and maintain a strong balance sheet. Verizon delivered its 17th straight annual dividend hike in 2023.
That steady upward trend should continue. The telecom recently passed the peak investment phase for its 5G network, which will free up additional cash flow that it can use for debt reduction. Falling debt and its cost-cutting initiatives should further boost its cash flow. Meanwhile, its 5G investments are driving revenue growth as more customers upgrade to that faster network. Verizon's growing cash flow and falling debt levels will put it in an even better position to continue increasing its dividends in the future.
High-quality income stocks
Energy Transfer, Clearway Energy, Realty Income, Brookfield Infrastructure, and Verizon are excellent dividend stocks. They offer investors high-yielding payouts that should continue rising in the future. Because of that, they would be great ways to start generating passive income in 2024.
Should you invest $1,000 in Energy Transfer right now?
Before you buy stock in Energy Transfer, 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 Energy Transfer wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
See the 10 stocks
*Stock Advisor returns as of December 18, 2023
Matthew DiLallo has positions in Brookfield Infrastructure, Brookfield Infrastructure Partners, Clearway Energy, Energy Transfer, Realty Income, and Verizon Communications. The Motley Fool has positions in and recommends Realty Income. The Motley Fool recommends Brookfield Infrastructure Partners and Verizon Communications. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Meanwhile, it has secured deals to buy several more renewable energy projects that are currently under development, giving it a clear view of how it will position itself to cover the dividend growth it is targeting. It recently agreed to buy fellow REIT Spirit Realty in a $9.3 billion deal, which will boost its adjusted funds from operations by more than 2.5% per share next year. The company has lots of ways to continue growing because it has steadily expanded its reach into new property types (data centers and vertical farming), countries (Italy and Ireland), and investment platforms (credit). | Energy Transfer (NYSE: ET) 9.02% $90.20 Clearway Energy (NYSE: CWEN)(NYSE: CWEN.A) 6.08% $60.80 Realty Income (NYSE: O) 5.42% $54.20 Brookfield Infrastructure (NYSE: BIPC)(NYSE: BIP) 4.28% $42.80 Verizon (NYSE: VZ) 7.07% $70.70 Total 6.37% $318.70 Data source: Google Finance and author's calculations. These businesses generate steadily rising cash flows backed by long-term contracts and government-regulated rate structures that typically feature inflation-linked rate escalation clauses. See the 10 stocks *Stock Advisor returns as of December 18, 2023 Matthew DiLallo has positions in Brookfield Infrastructure, Brookfield Infrastructure Partners, Clearway Energy, Energy Transfer, Realty Income, and Verizon Communications. | Energy Transfer (NYSE: ET) 9.02% $90.20 Clearway Energy (NYSE: CWEN)(NYSE: CWEN.A) 6.08% $60.80 Realty Income (NYSE: O) 5.42% $54.20 Brookfield Infrastructure (NYSE: BIPC)(NYSE: BIP) 4.28% $42.80 Verizon (NYSE: VZ) 7.07% $70.70 Total 6.37% $318.70 Data source: Google Finance and author's calculations. High-quality income stocks Energy Transfer, Clearway Energy, Realty Income, Brookfield Infrastructure, and Verizon are excellent dividend stocks. See the 10 stocks *Stock Advisor returns as of December 18, 2023 Matthew DiLallo has positions in Brookfield Infrastructure, Brookfield Infrastructure Partners, Clearway Energy, Energy Transfer, Realty Income, and Verizon Communications. | That provides Energy Transfer with predictable cash flow to pay dividends. Meanwhile, it has secured deals to buy several more renewable energy projects that are currently under development, giving it a clear view of how it will position itself to cover the dividend growth it is targeting. High-quality income stocks Energy Transfer, Clearway Energy, Realty Income, Brookfield Infrastructure, and Verizon are excellent dividend stocks. | 8b6b6de6-1b62-43f8-9126-de503263bf98 |
710504.0 | 2023-12-16 19:00:00 UTC | Is Invesco KBW High Dividend Yield Financial ETF (KBWD) a Strong ETF Right Now? | DCOMP | https://www.nasdaq.com/articles/is-invesco-kbw-high-dividend-yield-financial-etf-kbwd-a-strong-etf-right-now-10 | nan | nan | Launched on 12/02/2010, the Invesco KBW High Dividend Yield Financial ETF (KBWD) is a smart beta exchange traded fund offering broad exposure to the Financials ETFs 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 Invesco, KBWD has amassed assets over $380.17 million, making it one of the average sized ETFs in the Financials ETFs. KBWD, before fees and expenses, seeks to match the performance of the KBW Nasdaq Financial Sector Dividend Yield Index.
The KBW Nasdaq Financial Sector Dividend Yield Index is a dividend yield weighted index seeking to reflect the performance of approximately 24 to 40 publicly listed financial companies engaged in the business of providing financial services and products, including banking, insurance and diversified financial services, in the US.
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 3.84% for this ETF, which makes it one of the most expensive products in the space.
KBWD's 12-month trailing dividend yield is 11.38%.
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 KBWD, it has heaviest allocation in the Financials sector --about 100% of the portfolio.
Taking into account individual holdings, Armour Residential Reit Inc (ARR) accounts for about 7.01% of the fund's total assets, followed by Orchid Island Capital Inc (ORC) and Agnc Investment Corp (AGNC).
The top 10 holdings account for about 38.87% of total assets under management.
Performance and Risk
Year-to-date, the Invesco KBW High Dividend Yield Financial ETF has gained about 19.62% so far, and is up roughly 18.98% over the last 12 months (as of 12/20/2023). KBWD has traded between $13.12 and $17.63 in this past 52-week period.
The fund has a beta of 1.43 and standard deviation of 21.02% for the trailing three-year period, which makes KBWD a medium risk choice in this particular space. With about 40 holdings, it has more concentrated exposure than peers.
Alternatives
Invesco KBW High Dividend Yield Financial ETF is an excellent option for investors seeking to outperform the Financials ETFs segment of the market. There are other ETFs in the space which investors could consider as well.
Vanguard Financials ETF (VFH) tracks MSCI US Investable Market Financials 25/50 Index and the Financial Select Sector SPDR ETF (XLF) tracks Financial Select Sector Index. Vanguard Financials ETF has $9.10 billion in assets, Financial Select Sector SPDR ETF has $33.82 billion. VFH has an expense ratio of 0.10% and XLF charges 0.10%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Financials ETFs.
Bottom Line
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Invesco KBW High Dividend Yield Financial ETF (KBWD): ETF Research Reports
AGNC Investment Corp. (AGNC) : Free Stock Analysis Report
ARMOUR Residential REIT, Inc. (ARR) : Free Stock Analysis Report
Financial Select Sector SPDR ETF (XLF): ETF Research Reports
Orchid Island Capital, Inc. (ORC) : Free Stock Analysis Report
Vanguard Financials ETF (VFH): 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. | KBWD, before fees and expenses, seeks to match the performance of the KBW Nasdaq Financial Sector Dividend Yield Index. Performance and Risk Year-to-date, the Invesco KBW High Dividend Yield Financial ETF has gained about 19.62% so far, and is up roughly 18.98% over the last 12 months (as of 12/20/2023). The fund has a beta of 1.43 and standard deviation of 21.02% for the trailing three-year period, which makes KBWD a medium risk choice in this particular space. | Launched on 12/02/2010, the Invesco KBW High Dividend Yield Financial ETF (KBWD) is a smart beta exchange traded fund offering broad exposure to the Financials ETFs category of the market. Vanguard Financials ETF (VFH) tracks MSCI US Investable Market Financials 25/50 Index and the Financial Select Sector SPDR ETF (XLF) tracks Financial Select Sector Index. Click to get this free report Invesco KBW High Dividend Yield Financial ETF (KBWD): ETF Research Reports AGNC Investment Corp. (AGNC) : Free Stock Analysis Report ARMOUR Residential REIT, Inc. (ARR) : Free Stock Analysis Report Financial Select Sector SPDR ETF (XLF): ETF Research Reports Orchid Island Capital, Inc. (ORC) : Free Stock Analysis Report Vanguard Financials ETF (VFH): ETF Research Reports To read this article on Zacks.com click here. | Launched on 12/02/2010, the Invesco KBW High Dividend Yield Financial ETF (KBWD) is a smart beta exchange traded fund offering broad exposure to the Financials ETFs category of the market. Vanguard Financials ETF (VFH) tracks MSCI US Investable Market Financials 25/50 Index and the Financial Select Sector SPDR ETF (XLF) tracks Financial Select Sector Index. Click to get this free report Invesco KBW High Dividend Yield Financial ETF (KBWD): ETF Research Reports AGNC Investment Corp. (AGNC) : Free Stock Analysis Report ARMOUR Residential REIT, Inc. (ARR) : Free Stock Analysis Report Financial Select Sector SPDR ETF (XLF): ETF Research Reports Orchid Island Capital, Inc. (ORC) : Free Stock Analysis Report Vanguard Financials ETF (VFH): ETF Research Reports To read this article on Zacks.com click here. | Launched on 12/02/2010, the Invesco KBW High Dividend Yield Financial ETF (KBWD) is a smart beta exchange traded fund offering broad exposure to the Financials ETFs category of the market. KBWD, before fees and expenses, seeks to match the performance of the KBW Nasdaq Financial Sector Dividend Yield Index. Vanguard Financials ETF (VFH) tracks MSCI US Investable Market Financials 25/50 Index and the Financial Select Sector SPDR ETF (XLF) tracks Financial Select Sector Index. | fb5c8f13-332b-4fc5-a491-8a7103aa3a36 |
710505.0 | 2023-12-16 18:00:00 UTC | ANALYSIS-Global banks see no recession, US companies are more circumspect | DCOMP | https://www.nasdaq.com/articles/analysis-global-banks-see-no-recession-us-companies-are-more-circumspect | nan | nan | By Vidya Ranganathan and Gaurav Dogra
SINGAPORE, Dec 20 (Reuters) - Heading into 2024, analysts say the U.S. recession they'd been forecasting for two years isn't coming anymore. Everyone else, from companies to investors, is still bracing for a slowdown caused by tepid consumer demand.
Dissonance between the habitually bullish investment bank analysts and the more circumspect money managers is not new. What's different this time is the level of prudence and caution from some top companies as they outline their plans for next year.
Real money managers are in no doubt about which side to trust. After months of being wrong footed, sell-side analysts are a bit too bullish about growth prospects, Fed rate cuts and a consumption recovery, they say.
"Take a grain of salt maybe to measuring the efficacy of some of these sell-side forecasts," says Patrick McDonough, a portfolio manager for PGIM Quantitative Solutions. "I would be a little bit more on the side of the companies.
Consensus forecasts from major banks, including Goldman Sachs, Morgan Stanley, UBS and Barclays, are for global growth to be constrained in 2024 by elevated interest rates, pricier oil and a weakened China, but with low odds for a recession. A year ago, many banks were forecasting a U.S. recession.
Businesses are sounding more grim than they did last year.
In its collection of management commentary from 150 earnings calls in the third-quarter reporting season, Deutsche Bank last month said companies broadly characterized demand as being somewhat weak, but not alarmingly so. Companies have continued to cut inventories as they adjust to sluggish demand for goods.
The words used by companies to describe demand included soft, sluggish, slow, lackluster, choppy, muted, constrained, challenging, weak, pressured and uneven, Deutsche said.
Retailer Walmart WMT.N said earlier this month that while it has been surprised by the resilience of the consumer this year in the face of rising prices, that behaviour was changing and it was turning cautious.
Walmart's chief financial officer John David Rainey told a Morgan Stanley consumer and retail conference earlier this month the firm wasn't trying to ring an alarm bell, but that caution was "certainly a departure from what we saw in the first three quarters of the year".
In its latest earnings transcript, discount chain Dollar General DG.N said gross profit was down, interest expenses had climbed and that it anticipated "customer spending may continue to be constrained as we head into 2024, especially in discretionary categories."
Consumer giant Procter & Gamble PG.N sounded a more optimistic note. Andre Schulten, the company's chief financial officer, recently said P&G was able to grow its share of volume and value in U.S. markets in the latest quarter, noting the "consumer remains strong.
The disconnect does not perturb fund managers. What matters to them however is whether the Federal Reserve manages to avert recession and yet contain inflation, without hurting consumers.
After leaving markets guessing for months, the Fed's most recent update shows it recognizes that need for balance and that officials are sensitive to the risks of over-tightening policy and pushing the economy into a faster than necessary slowdown.
Several companies are already feeling the slowdown.
"The consumer is starting to slow down a little bit and the consumer-based companies, which really are almost all the big companies at this point, are starting to talk about that," said PGIM's McDonough. The global asset manager has $1.27 trillion in assets.
Consumer spending has indeed been cooling, as per surveys from the Institute for Supply Management (ISM). A November survey from the Conference Board showed about two-thirds of consumers still perceived a recession to be "somewhat" or "very likely" to happen over the next year.
RECESSION IS COMING?
The past two years haven't been easy for macro pundits trying to reconcile the drivers of a post-pandemic bounce and trillions of dollars worth of stimulus in global markets alongside hawkish central banks.
Indicators from manufacturing surveys to an inverted U.S. yield curve and a bumper fiscal spending plan all screamed slowdown, or even recession.
Reuters polls conducted through 2022 and until mid-2023 consistently showed economists' median probability for a U.S. recession within a year were above 60%. That probability is now closer to 45%.
"To be fair, it's been a difficult year," said Chris Rands, a senior portfolio manager with the global multi-asset team at Nikko Asset Management.
"If you were to go back and look historically, if you use U.S. lead indicators, for example, they've been telling you that the U.S. should have entered a recession 12 months ago."
"But if you've been able to make that argument for 12 months, you've potentially got egg on your face."
Big banks forecast the global economy slowing in 2023, with a likely U.S. recession. Even the most bullish forecasts had the S&P 500 .SPX rising about 9% in 2023. It has rallied 21% so far.
In 2022, sell-side analysts from major banks expected growth to stumble but for stocks to keep rising. The S&P 500 fell 19% that year.
Forecasts for 2024 are more conservative, and laced with caveats. Even the most bullish Street forecasts for US stocks are for single-digit gains.
"Companies talk to their bankers and to economists and consultants, and so on. And so they are all getting the same picture, which is there's going to be a slowdown," said Deutsche Bank's Thatte.
"They are biding their time and being cautious which makes sense. And so if growth picks up, they will respond accordingly."
U.S. recession debate produces scattered 2024 forecasts https://tmsnrt.rs/3R91Vlq
Reuters poll - U.S. recession probability https://tmsnrt.rs/3YIogKc
Companies reported better than estimated results in the last two years https://tmsnrt.rs/3NnYrul
(Additional reporting by Rae Wee Graphics by Sarupya Ganguly; Editing by Anna Driver)
((vidya.ranganathan@thomsonreuters.com; +65 6973 8261; Reuters Messaging: Twitter:@Vid_Ranganathan))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Consensus forecasts from major banks, including Goldman Sachs, Morgan Stanley, UBS and Barclays, are for global growth to be constrained in 2024 by elevated interest rates, pricier oil and a weakened China, but with low odds for a recession. Walmart's chief financial officer John David Rainey told a Morgan Stanley consumer and retail conference earlier this month the firm wasn't trying to ring an alarm bell, but that caution was "certainly a departure from what we saw in the first three quarters of the year". The past two years haven't been easy for macro pundits trying to reconcile the drivers of a post-pandemic bounce and trillions of dollars worth of stimulus in global markets alongside hawkish central banks. | Andre Schulten, the company's chief financial officer, recently said P&G was able to grow its share of volume and value in U.S. markets in the latest quarter, noting the "consumer remains strong. Big banks forecast the global economy slowing in 2023, with a likely U.S. recession. U.S. recession debate produces scattered 2024 forecasts https://tmsnrt.rs/3R91Vlq Reuters poll - U.S. recession probability https://tmsnrt.rs/3YIogKc Companies reported better than estimated results in the last two years https://tmsnrt.rs/3NnYrul (Additional reporting by Rae Wee Graphics by Sarupya Ganguly; Editing by Anna Driver) ((vidya.ranganathan@thomsonreuters.com; +65 6973 8261; Reuters Messaging: Twitter:@Vid_Ranganathan)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Consensus forecasts from major banks, including Goldman Sachs, Morgan Stanley, UBS and Barclays, are for global growth to be constrained in 2024 by elevated interest rates, pricier oil and a weakened China, but with low odds for a recession. In its collection of management commentary from 150 earnings calls in the third-quarter reporting season, Deutsche Bank last month said companies broadly characterized demand as being somewhat weak, but not alarmingly so. U.S. recession debate produces scattered 2024 forecasts https://tmsnrt.rs/3R91Vlq Reuters poll - U.S. recession probability https://tmsnrt.rs/3YIogKc Companies reported better than estimated results in the last two years https://tmsnrt.rs/3NnYrul (Additional reporting by Rae Wee Graphics by Sarupya Ganguly; Editing by Anna Driver) ((vidya.ranganathan@thomsonreuters.com; +65 6973 8261; Reuters Messaging: Twitter:@Vid_Ranganathan)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | A year ago, many banks were forecasting a U.S. recession. Reuters polls conducted through 2022 and until mid-2023 consistently showed economists' median probability for a U.S. recession within a year were above 60%. Even the most bullish forecasts had the S&P 500 .SPX rising about 9% in 2023. | 683f6411-877d-4111-8a07-815d2395a7d2 |
710506.0 | 2023-12-16 18:00:00 UTC | Zacks Investment Ideas feature highlights: CAVA Group, Chipotle Mexican Grill and Arm Holdings | DCOMP | https://www.nasdaq.com/articles/zacks-investment-ideas-feature-highlights%3A-cava-group-chipotle-mexican-grill-and-arm | nan | nan | For Immediate Release
Chicago, IL – December 20, 2023 – Today, Zacks Investment Ideas feature highlights CAVA Group CAVA, Chipotle Mexican Grill CMG and Arm Holdings ARM.
IPO Watch: 2 Stocks to Buy
Initial Public Offerings (IPOs) can offer compelling opportunities in the equities market due to their potential for high growth and various other factors. When a company goes public through an IPO, it often signifies a stage of maturity and readiness for expansion. Investors are attracted to IPOs as they provide a chance to invest in a company during its early stages of public trading, potentially capitalizing on significant appreciation as the business grows.
Additionally, IPOs often generate substantial media attention, attracting both institutional and retail investors. The excitement surrounding a new stock can lead to increased demand and upward price momentum.
However, it's essential for investors to conduct thorough research, considering factors like the company's financial health, competitive landscape, and growth prospects, as investing in IPOs also comes with risks associated with the uncertainties of newly listed companies in the public market. When looking for IPOs to invest in, market participants should look for the following:
· A Welcoming Market Backdrop: 75% of a stock’s direction is correlated with the underlying market trend, so it is paramount that investors focus on whether the equity market is in a bull or bear market. Because IPOs are especially “risk-on” vehicles, it is essential to emphasize this factor. Currently, stocks are above their key moving averages and trending higher – evidence that the market is in a bull trend and IPOs can be purchased.
· Deep Liquidity: Institutional investors, such as mutual funds, banks, and hedge funds, are the biggest drivers of stocks. However, to establish a position, institutions require liquidity. If you are trading an IPO, ensure that it trades at least a few hundred thousand shares per day minimum.
· Innovation & High-Growth: The idea of buying a newly public company is to take advantage of its early growth trajectory. Screen for stocks that are part of innovative industries and have high earnings growth. These stocks have the most long-term potential.
3 2023 IPOs to Consider
CAVA Group
Zacks Rank #2 (Buy) stock CAVA is a healthy fast-casual restaurant operator. Started by first-generation Greek Americans, CAVA Group operates hundreds of Cava Grill Mediterranean restaurants across the United States.
Benefitting From the Fast-Casual Trend
Chipotle Mexican Grill, the first mainstream fast-casual restaurant operator, proves that the concept works for investors. Since its inception, the stock is up more than 5,000%! It’s clear – customers want fast, affordable, and healthy food options. Establishments like CAVA offer a middle ground between traditional fast food and sit-down dining, providing a quick and convenient dining experience with a focus on higher-quality ingredients.
EPS Surprise History
Thus far, CAVA has only reported quarterly results twice as a public company. However, CAVA has impressed both times and smashed Zacks Consensus estimates.
In the third-quarter conference call, the Co-Founder and CEO remained bullish by saying, “CAVA’s results in the third quarter clearly demonstrate the strength and portability of our category-defining brand and highly differentiated offering. Revenue was up 49.5% of the last year, driven by 14.1% CAVA Same Restaurant Sales Growth including 7.6% traffic growth.”
Arm Holdings
Zacks Rank #2 (Buy) stock Arm Holdings is a British semiconductor and software design company known for developing advanced computer architecture and technology. Arm specializes in designing and licensing intellectual property for microprocessors, including the popular ARM architecture used in various electronic devices such as smartphones, tablets, and embedded systems. Arm does not manufacture its own chips but licenses its technology to various companies in the semiconductor industry, allowing them to create custom processors based on Arm's architecture. This business model has made Arm a key player in the mobile computing and Internet of Things (IoT) markets.
IPO U-Turn Base Breakout Precedent
Those who traded Alphabet’s (GOOGL) IPO probably recognize ARM’s IPO U-turn base. In my view, GOOG is an excellent precedent for ARM because at the IPO both were high growth, liquidity, and established a very similar base structure. Can ARM mimic Google’s success?
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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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Chipotle Mexican Grill, Inc. (CMG) : Free Stock Analysis Report
ARM Holdings PLC Sponsored ADR (ARM) : Free Stock Analysis Report
CAVA Group, Inc. (CAVA) : 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. | Investors are attracted to IPOs as they provide a chance to invest in a company during its early stages of public trading, potentially capitalizing on significant appreciation as the business grows. In the third-quarter conference call, the Co-Founder and CEO remained bullish by saying, “CAVA’s results in the third quarter clearly demonstrate the strength and portability of our category-defining brand and highly differentiated offering. 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. | For Immediate Release Chicago, IL – December 20, 2023 – Today, Zacks Investment Ideas feature highlights CAVA Group CAVA, Chipotle Mexican Grill CMG and Arm Holdings ARM. Revenue was up 49.5% of the last year, driven by 14.1% CAVA Same Restaurant Sales Growth including 7.6% traffic growth.” Arm Holdings Zacks Rank #2 (Buy) stock Arm Holdings is a British semiconductor and software design company known for developing advanced computer architecture and technology. Click to get this free report Chipotle Mexican Grill, Inc. (CMG) : Free Stock Analysis Report ARM Holdings PLC Sponsored ADR (ARM) : Free Stock Analysis Report CAVA Group, Inc. (CAVA) : Free Stock Analysis Report To read this article on Zacks.com click here. | When looking for IPOs to invest in, market participants should look for the following: · A Welcoming Market Backdrop: 75% of a stock’s direction is correlated with the underlying market trend, so it is paramount that investors focus on whether the equity market is in a bull or bear market. Revenue was up 49.5% of the last year, driven by 14.1% CAVA Same Restaurant Sales Growth including 7.6% traffic growth.” Arm Holdings Zacks Rank #2 (Buy) stock Arm Holdings is a British semiconductor and software design company known for developing advanced computer architecture and technology. Click to get this free report Chipotle Mexican Grill, Inc. (CMG) : Free Stock Analysis Report ARM Holdings PLC Sponsored ADR (ARM) : Free Stock Analysis Report CAVA Group, Inc. (CAVA) : Free Stock Analysis Report To read this article on Zacks.com click here. | Investors are attracted to IPOs as they provide a chance to invest in a company during its early stages of public trading, potentially capitalizing on significant appreciation as the business grows. 3 2023 IPOs to Consider CAVA Group Zacks Rank #2 (Buy) stock CAVA is a healthy fast-casual restaurant operator. 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%. | e5647a62-383f-47a4-b38a-f70833224936 |
710507.0 | 2023-12-16 18:00:00 UTC | 2 Stocks Too Cheap to Ignore, Even After the Dow Jones Just Hit a New All-Time High | DCOMP | https://www.nasdaq.com/articles/2-stocks-too-cheap-to-ignore-even-after-the-dow-jones-just-hit-a-new-all-time-high | nan | nan | The Dow Jones Industrial Average recently hit a fresh high, and the S&P 500 is getting close. But that doesn't mean there aren't bargains in the market for patient investors. In this video, Matt Frankel, CFP®, explains why Dream Finders Homes (NYSE: DFH) still looks cheap despite having tripled in 2023, while Fool.com contributor Tyler Crowe has his eye on Ternium (NYSE: TX).
*Stock prices used were the afternoon prices of Dec. 14, 2023. The video was published on Dec. 15, 2023.
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Matthew Frankel, CFP® has positions in Dream Finders Homes. Tyler Crowe has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Dream Finders Homes. The Motley Fool has a disclosure policy. Matthew Frankel is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The Dow Jones Industrial Average recently hit a fresh high, and the S&P 500 is getting close. The 10 stocks that made the cut could produce monster returns in the coming years. If you choose to subscribe through their link they will earn some extra money that supports their channel. | In this video, Matt Frankel, CFP®, explains why Dream Finders Homes (NYSE: DFH) still looks cheap despite having tripled in 2023, while Fool.com contributor Tyler Crowe has his eye on Ternium (NYSE: TX). Before you buy stock in Dream Finders Homes, 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 Dream Finders Homes wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Matthew Frankel, CFP® has positions in Dream Finders Homes. | In this video, Matt Frankel, CFP®, explains why Dream Finders Homes (NYSE: DFH) still looks cheap despite having tripled in 2023, while Fool.com contributor Tyler Crowe has his eye on Ternium (NYSE: TX). Before you buy stock in Dream Finders Homes, 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 Dream Finders Homes wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Matthew Frankel, CFP® has positions in Dream Finders Homes. | In this video, Matt Frankel, CFP®, explains why Dream Finders Homes (NYSE: DFH) still looks cheap despite having tripled in 2023, while Fool.com contributor Tyler Crowe has his eye on Ternium (NYSE: TX). Before you buy stock in Dream Finders Homes, 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 Dream Finders Homes wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Matthew Frankel, CFP® has positions in Dream Finders Homes. | 83e146e3-e84e-4585-b74c-b1d77c3a10cb |
710508.0 | 2023-12-16 18:00:00 UTC | 2 No-Brainer Growth Stocks to Buy Now With $20 and Hold Long-Term | DCOMP | https://www.nasdaq.com/articles/2-no-brainer-growth-stocks-to-buy-now-with-%2420-and-hold-long-term | nan | nan | Research shows that 70% of millennials are not invested in the stock market, despite its proven ability to create wealth over long periods of time. One of the most common reasons millennials sit on the sidelines is the misconception that they need more money to get started.
That logic fails to consider the profound impact of compounding. Money invested today can start growing, and it can build on itself as time passes. So the most prudent course of action is to start putting money into the stock market as soon as possible, no matter how small the sum.
With that in mind, Palantir Technologies (NYSE: PLTR) and Adyen (OTC: ADYE.Y) have compelling growth prospects that make current valuations appear reasonable, and both stocks are widely accessible at less than $20 per share.
Read on to learn more about Palantir and Adyen.
1. Palantir Technologies
Palantir is a data science company with a unique history. Its first platform was built to assist customers in the defense and intelligence community with counterterrorism operations. Palantir has since expanded into the commercial sector, but its products are still designed for complex, high-value use cases, according to Forrester Research.
Palantir provides software that integrates information and machine learning (ML) models to form an ontology, a map that links related data points.
For instance, flight numbers could be linked to airplanes, airports, and destinations. Users can surface ontology data with various analytics tools and artificial intelligence (AI) applications. In this example, flight numbers could be organized into schedules to optimize arrivals and departures.
Palantir helps businesses use AI in a way that creates real value, and it does so to great effect. Forrester Research has recognized the company as a leader in AI/ML platforms, and Dresner Advisory Services has recognized its leadership in model operations, a discipline that deals with model lifecycle management across development, evaluation, and optimization.
Palantir reported encouraging results in the third quarter. Its customer count rose 34% to 453, revenue increased 17% to $558 million, and GAAP net income was $72 million, marking its fourth consecutive quarter of GAAP profitability. Sales growth was especially strong among commercial clients, something management attributed to its AIP (Artificial Intelligence Platform).
AIP launched earlier this year, bringing support for large language models and generative AI applications to existing Palantir platforms. Management sees the product as a game changer. To quote Chief Revenue Officer Ryan Taylor, "The potential market for AIP and the trajectory of possible AIP growth for our business is massive."
Going forward, Morgan Stanley believes Palantir could grow revenue at 30% annually through 2029, and Dan Ives of Wedbush Securities sees the company as the "gold standard in AI." In that context, its current valuation of 19 times sales appears tolerable, though it is a slight premium to the three-year average of 18.8 times sales.
Patient investors that can handle volatility should feel comfortable buying a few shares of this growth stock today.
2. Adyen
European fintech Adyen simplifies electronic payments for businesses. Its full-stack platform integrates gateway, processing, and acquiring services across online and offline channels. That means Adyen handles various tasks from transaction authentication and authorization to the settlement and deposition of funds in merchant accounts.
The company also provides embedded financial services for marketplaces, such as the ability to create accounts, issue payment cards, and send payouts.
By unifying those capabilities on one platform, Adyen creates value for businesses in two ways.
First, it eliminates complex integrations and fees charged by the unnecessary intermediaries (often north of 10) involved in payment processing. Second, Adyen can optimize authorization rates, prevent fraud, and surface insights for merchants by applying machine learning to the robust data it captures from across the payments value chain.
That value proposition is resonating with the market, as evidenced by the major brands that partnered with Adyen. It clients include marketplaces like Etsy and eBay, digital businesses like Spotify and Uber, food and beverage brands like Domino's Pizza and McDonald's, and retailers like Gap and Levi Strauss.
Adyen stock dropped 40% following the release of its first-half financial report. Net revenue rose 21% to 739 million euros, a steep shortfall to the 40% growth forecasted by analysts. Worse yet, IFRS net income remained flat at 282 million euros due to aggressive headcount expansion.
However, those weak results are due to difficult economic conditions, not Adyen falling out of favor with merchants. I say that because volume churn was below 1% through the first half of the year, meaning customers are sticking around. Assuming that continues, Adyen has a good shot at reaccelerating growth when economic conditions improve.
Indeed, management expects net revenue to grow in the low-20% to high-20% range through 2026. Similarly, Morningstar analysts think Adyen can grow net revenue at 22% annually over the next five years, and 16% annually over the next decade.
That forecast makes its current valuation of 6.7 times sales look quite attractive, especially when the three-year average is 9.8 times sales. Investors should start with a small position in this growth stock.
Should you invest $1,000 in Palantir Technologies right now?
Before you buy stock in Palantir Technologies, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Palantir Technologies wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
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Trevor Jennewine has positions in Etsy and Palantir Technologies. The Motley Fool has positions in and recommends Adyen, Domino's Pizza, Etsy, Palantir Technologies, Spotify Technology, and Uber Technologies. The Motley Fool recommends eBay and recommends the following options: short January 2024 $45 calls on eBay. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | With that in mind, Palantir Technologies (NYSE: PLTR) and Adyen (OTC: ADYE.Y) have compelling growth prospects that make current valuations appear reasonable, and both stocks are widely accessible at less than $20 per share. Going forward, Morgan Stanley believes Palantir could grow revenue at 30% annually through 2029, and Dan Ives of Wedbush Securities sees the company as the "gold standard in AI." It clients include marketplaces like Etsy and eBay, digital businesses like Spotify and Uber, food and beverage brands like Domino's Pizza and McDonald's, and retailers like Gap and Levi Strauss. | It clients include marketplaces like Etsy and eBay, digital businesses like Spotify and Uber, food and beverage brands like Domino's Pizza and McDonald's, and retailers like Gap and Levi Strauss. Before you buy stock in Palantir Technologies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Palantir Technologies wasn't one of them. The Motley Fool has positions in and recommends Adyen, Domino's Pizza, Etsy, Palantir Technologies, Spotify Technology, and Uber Technologies. | With that in mind, Palantir Technologies (NYSE: PLTR) and Adyen (OTC: ADYE.Y) have compelling growth prospects that make current valuations appear reasonable, and both stocks are widely accessible at less than $20 per share. Before you buy stock in Palantir Technologies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Palantir Technologies wasn't one of them. The Motley Fool has positions in and recommends Adyen, Domino's Pizza, Etsy, Palantir Technologies, Spotify Technology, and Uber Technologies. | Money invested today can start growing, and it can build on itself as time passes. Sales growth was especially strong among commercial clients, something management attributed to its AIP (Artificial Intelligence Platform). The Motley Fool has positions in and recommends Adyen, Domino's Pizza, Etsy, Palantir Technologies, Spotify Technology, and Uber Technologies. | fe4dc60a-3c54-4ded-96f7-d4bfdbcc7bf0 |
710509.0 | 2023-12-16 18:00:00 UTC | Buying This Magnificent Stock at $35 Could be Like Buying Amazon in 2013 | DCOMP | https://www.nasdaq.com/articles/buying-this-magnificent-stock-at-%2435-could-be-like-buying-amazon-in-2013 | nan | nan | Amazon (NASDAQ: AMZN) is one of the most diverse technology organizations in the world. It started out as an e-commerce company in 1994, and it dominates that industry today. But it has since expanded into other businesses like cloud computing, streaming, and digital advertising.
E-commerce remains Amazon's largest source of revenue, but the company's diverse exposure to so many different industries has driven remarkable gains for investors. In fact, Amazon stock has soared tenfold since 2013 alone.
But there's another technology stock with the potential for tenfold gains in the future. Like Amazon, Sea Limited's (NYSE: SE) core business is e-commerce, but it also has a large digital entertainment (gaming) segment, and a growing digital financial services platform.
Sea Limited is valued at just $21.8 billion today, so even with a tenfold increase in its stock price, it would still be worth a fraction of Amazon's $1.5 trillion market capitalization. Here's why investors might want to load up on the stock today.
Image source: Getty Images.
A triple threat in the digital economy
The average person spends about 6 hours and 41 minutes online each day. Assuming they sleep for eight hours, that means they are in front of screens for almost 30% of their waking hours. Understandably, companies like Sea Limited want to meet people where they enjoy spending their time, so they are investing heavily in digital services.
Sea Limited's largest source of revenue is the Shopee hybrid consumer-to-consumer and business-to-consumer e-commerce marketplace. Since the company is based in Singapore, Shopee has a strong presence in Asian nations like Indonesia, Malaysia, Vietnam, and Taiwan (among others). In fact, it has received over 342 million monthly visits throughout 2023 according to Statista, making it the most frequented online marketplace in Southeast Asia.
Sea Limited's second-largest source of revenue is digital entertainment, which is driven predominantly by its Garena game development studio. It's responsible for blockbuster mobile titles like Free Fire (which has been downloaded over 1 billion times), and Call of Duty: Mobile. Garena serves 544 million users each quarter, but that's down from a peak of 729 million during the pandemic in 2021. Free Fire also lost around 40 million monthly users to a ban in India due to privacy concerns in 2022, though it is being reintroduced as we speak.
The drop in users has been a drag on Sea Limited's overall revenue, as it means fewer gamers are spending money on Garena's titles. But I'll touch on the financial hit later.
Finally, Sea Money is the driving force behind Sea Limited's digital financial services segment. It serves customers as a banking and payments platform, and it also offers financing. It provides people with cash loans and a buy now, pay later service, and it even finances merchants on Shopee to help them grow. The digital financial services segment only contributes 13% of Sea Limited's total revenue right now, so it's still quite small.
Sea Limited's revenue growth is moderating, but that's by design
When Sea Limited stock came public in 2017, management was heavily focused on driving customer acquisition and sales growth. That strategy continued until 2022, when the broader economic climate was hit by soaring inflation and interest rates. Consumers around the world have been tightening their belts ever since, so Sea Limited had to adjust its priorities.
Now, the company is focusing on generating profits by spending significantly less money, which has come at the expense of revenue growth. In fact, with 2023 winding down, Wall Street expects Sea Limited's revenue to come in at $12.9 billion for the full year, representing just 4% growth compared to 2022. Here's how that stacks up to prior years:
YEAR
REVENUE (BILLIONS)
GROWTH (YOY)
2017
$0.55
58%
2018
$1.05
89%
2019
$2.9
178%
2020
$4.4
101%
2021
$10.0
127%
2021
$12.4
25%
2023 (Estimate)
$12.9
4%
Data source: Sea Limited. YoY = Year over Year.
Sea Limited's revenue grew at a compound annual rate of 86% between 2017 and 2022, so the projected 2023 result is incredibly sluggish. Gaming has been the main drag, with revenue in the digital entertainment segment sinking 43% through the first nine months of 2023. E-commerce, on the other hand, remained strong with growth of 33%.
But there's another reason for the recent weakness in Sea Limited's overall results. The company slashed its operating costs by 24% in the first nine months of this year, with sales and marketing expenses (its largest cost) down 35%. It's difficult to attract new customers and create opportunities to generate revenue when Sea Limited pares its spending so heavily.
But here's the big positive. Through the first nine months of 2023, those moves resulted in a net income (profit) of $274 million, which is a huge swing from the $2.1 billion net loss in the same period of 2022.
Why Sea Limited stock is capable of a tenfold gain over the long term
As I mentioned, Sea Limited is valued at $21.8 billion as of this writing. But the company has $6 billion in cash and short-term investments on its balance sheet with almost no debt. After stripping that out, investors are valuing its actual business at closer to $16 billion.
That's important because -- as I talked about earlier -- Sea Limited's revenue is projected to come in at $12.9 billion for 2023. That places its stock at a price-to-sales (P/S) ratio of just 1.7, or 1.2 after stripping out cash!
Sea Limited stock was trading at a P/S ratio of 20 just two years ago. That was extremely rich, and I don't expect it will return to that lofty level. But even Amazon stock trades at a P/S ratio of 2.8 right now, which makes Sea Limited appear incredibly undervalued.
It's very unlikely that Sea Limited's revenue will return to a compound annual increase of 86%. But improving economic conditions in the future could allow the company to ramp up its spending on line items like marketing once again, to fuel growth. With that said, even if revenue growth averaged a more modest 20% on average, it could still top $79.8 billion annually in a decade's time.
If investors attribute a P/S ratio of 2.8 to Sea Limited stock (to match Amazon), that will place the company at a valuation of $223 billion -- 10 times where it trades today.
Therefore, if you missed the massive run in Amazon stock since 2013, buying Sea Limited stock at the current price of $35 might give you another chance at a tenfold return.
Should you invest $1,000 in Sea Limited right now?
Before you buy stock in Sea Limited, 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 Sea Limited wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of the S&P 500 since 2002*.
See the 10 stocks
*Stock Advisor returns as of December 18, 2023
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon and Sea Limited. 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. | Sea Limited is valued at just $21.8 billion today, so even with a tenfold increase in its stock price, it would still be worth a fraction of Amazon's $1.5 trillion market capitalization. In fact, with 2023 winding down, Wall Street expects Sea Limited's revenue to come in at $12.9 billion for the full year, representing just 4% growth compared to 2022. If investors attribute a P/S ratio of 2.8 to Sea Limited stock (to match Amazon), that will place the company at a valuation of $223 billion -- 10 times where it trades today. | Like Amazon, Sea Limited's (NYSE: SE) core business is e-commerce, but it also has a large digital entertainment (gaming) segment, and a growing digital financial services platform. Finally, Sea Money is the driving force behind Sea Limited's digital financial services segment. Before you buy stock in Sea Limited, 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 Sea Limited wasn't one of them. | Sea Limited's revenue growth is moderating, but that's by design When Sea Limited stock came public in 2017, management was heavily focused on driving customer acquisition and sales growth. Why Sea Limited stock is capable of a tenfold gain over the long term As I mentioned, Sea Limited is valued at $21.8 billion as of this writing. Before you buy stock in Sea Limited, 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 Sea Limited wasn't one of them. | Understandably, companies like Sea Limited want to meet people where they enjoy spending their time, so they are investing heavily in digital services. Before you buy stock in Sea Limited, 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 Sea Limited wasn't one of them. The Stock Advisor service has more than tripled the return of the S&P 500 since 2002*. | c3593846-810a-439f-a1d8-d4a55eeef607 |
710510.0 | 2023-12-16 18:00:00 UTC | Is Annaly Capital Management the Best Dividend Stock for You? | DCOMP | https://www.nasdaq.com/articles/is-annaly-capital-management-the-best-dividend-stock-for-you-0 | nan | nan | The big number at real estate investment trust (REIT) Annaly Capital Management (NYSE: NLY) is its dividend yield, which at 13% is many times more than the 1.5% you would get from an S&P 500 index fund. It is also materially higher than the 4.4% you can get from the average REIT, using Vanguard Real Estate ETF as a proxy. These yield differences should get you wondering about what's going on with Annaly.
Not your average REIT
When most investors picture a real estate investment trust they probably think of a company that owns physical properties, leasing them to tenants to generate rental income. That's not particularly complex and is exactly what you would do if you owned a rental property. The only real difference is that REITs own large portfolios of institutional and commercial properties. Buying a REIT allows you to participate in a property arena that would probably be out of reach to you. Property-owning REITs are fairly attractive and, when operated conservatively, very reliable income stocks.
Image source: Getty Images.
Annaly is not this kind of REIT. Annaly is what is known as a mortgage REIT. As that suggests, Annaly invests in mortgages. In this case, it generally owns mortgages that have been pooled together to trade like a bond, often called something like a collateralized mortgage obligation (CMO). Mortgage REITs generally use leverage in an effort to enhance returns, hoping to earn more from the interest payments they collect than what they pay in interest on the loans they take out to buy the mortgage securities.
There are a lot of factors that affect a mortgage REIT's performance. For example, CMOs trade regularly and their values can fluctuate wildly at times. Interest rates, the housing market, and mortgage payment trends, among other things, can have a notable impact on the financial results of a mortgage REIT. And that, in turn, can materially impact a mortgage REIT's ability to pay dividends.
Annaly's dividend has gone down, down, and down some more
This is where the rubber hits the road for Annaly. During the past decade the mortgage REIT's dividend has headed steadily lower, falling by roughly 40% over that span. If you were looking for a reliable dividend stock, history suggests that you will be disappointed here.
But there's another wrinkle. The dividend yield has remained lofty, usually higher than 10%, over the past decade. How is that possible if the dividend has fallen by 40%? The answer is that the stock has declined by an even larger 50%! That's just basic math, since yield is simply the annual dividend divided by the stock price. If the dividend goes down the only way to keep the yield high is for the stock price to fall.
Data source: YCharts
If you are an income investor trying to live off of the dividends your portfolio generates, owning Annaly over the past decade would have been a disaster for your portfolio. You would have ended up with less dividend income and a huge capital loss. Essentially, the worst possible outcome. Notably, Annaly paid a dividend of $0.65 per share in the third quarter of 2023 while generating earnings available for distribution of $0.66. That doesn't leave much of a cushion for the dividend, which is probably why the yield is so high right now -- investors are worried that another dividend cut could be around the corner.
A unique REIT that most should avoid
The truth is that Annaly isn't really meant for average investors. It is most appropriate for large institutional investors, like pension funds, that look at total return (which assumes dividend reinvestment) and that emphasize portfolio diversification. At the end of the day, most average investors will be better off sticking to conservatively run property-owning REITs. Annaly's dividend history proves that the payout isn't reliable enough to include in an income-generating retirement portfolio.
Should you invest $1,000 in Annaly Capital Management right now?
Before you buy stock in Annaly Capital Management, 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 Annaly Capital Management wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
See the 10 stocks
*Stock Advisor returns as of December 18, 2023
Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Vanguard Specialized Funds-Vanguard Real Estate ETF. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The big number at real estate investment trust (REIT) Annaly Capital Management (NYSE: NLY) is its dividend yield, which at 13% is many times more than the 1.5% you would get from an S&P 500 index fund. Not your average REIT When most investors picture a real estate investment trust they probably think of a company that owns physical properties, leasing them to tenants to generate rental income. It is most appropriate for large institutional investors, like pension funds, that look at total return (which assumes dividend reinvestment) and that emphasize portfolio diversification. | The big number at real estate investment trust (REIT) Annaly Capital Management (NYSE: NLY) is its dividend yield, which at 13% is many times more than the 1.5% you would get from an S&P 500 index fund. It is also materially higher than the 4.4% you can get from the average REIT, using Vanguard Real Estate ETF as a proxy. Before you buy stock in Annaly Capital Management, 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 Annaly Capital Management wasn't one of them. | The big number at real estate investment trust (REIT) Annaly Capital Management (NYSE: NLY) is its dividend yield, which at 13% is many times more than the 1.5% you would get from an S&P 500 index fund. Data source: YCharts If you are an income investor trying to live off of the dividends your portfolio generates, owning Annaly over the past decade would have been a disaster for your portfolio. Before you buy stock in Annaly Capital Management, 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 Annaly Capital Management wasn't one of them. | Annaly is what is known as a mortgage REIT. Data source: YCharts If you are an income investor trying to live off of the dividends your portfolio generates, owning Annaly over the past decade would have been a disaster for your portfolio. Before you buy stock in Annaly Capital Management, 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 Annaly Capital Management wasn't one of them. | 4d0233bc-c17c-412a-a334-e24fc3fcc53d |
710511.0 | 2023-12-16 18:00:00 UTC | Insiders Pour Millions Into These 3 Buy-Rated Stocks — Here’s Why You Might Want to Ride Their Coattails | DCOMP | https://www.nasdaq.com/articles/insiders-pour-millions-into-these-3-buy-rated-stocks-heres-why-you-might-want-to-ride | nan | nan | With New Year’s right around the corner, it’s a convenient time for investors to start rearranging their stock portfolios. There’s no trick to this, just the steady work of reading the market signals and adjusting holdings accordingly, to try to set up a profitable investment package that will work in next year’s market conditions.
One of the clearest signals out there comes from the corporate insiders. These are the company officers – the C-suite residents and Board members whose positions give them both detailed knowledge of their companies’ prospects and accountability to shareholders for bringing in positive results. This combination makes their own stock trades highly informative for the retail investor; the insiders may sell shares for many reasons, but they’ll only buy for one: they believe those shares are going to go up.
And when insiders start pouring their own millions into their stocks, investors should pay close attention – and maybe even hop on their coattails to ride along.
We can use the data tools at TipRanks, particularly the Insiders’ Hot Stocks tool, to follow these trades. A brief look at the data shows that Wall Street gives 3 of these stocks Buy-ratings with considerable upside potential. Now, let’s take a deeper dive into these insider favorites.
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Cibus (CBUS)
We’ll start in the agricultural world, where millions can ride on finding the right seed, or producing the right fruit – and then being able to replicate it again, and again, and again, reliably, to meet the food needs of the world’s population. If that sounds a bit dramatic, what it comes down to is the collective wisdom of the world’s farmers, backed up by cutting-edge agricultural technologies, planting and cultivating to find the perfect crops.
This is where Cibus fits, right into the category of cutting-edge agricultural technologies. The company works on the science side of agriculture, using gene editing technology to create the perfect plant traits – traits that can then be spliced into seeds and put into cultivation. Cibus is not a seed company; rather, it’s a genetics company, that works with the seed producers to develop precisely the right plant traits, in a predictable way, at greater speed and efficiency than traditional plant breeding methods.
Operating as a technology company, Cibus develops new genes and then licenses those genetic traits to seed companies, who pay royalties on the final seed sales. Cibus targets productivity traits that are designed to increase crop yields while lowering the input costs of chemicals and fertilizers – with the end goal of making large-scale farming both more sustainable and more profitable for everyone involved, while continuing to generate the crop volumes that the world depends on. Among the traits that Cibus is working to promote are seed pod shatter resistance, disease resistance, and efficiency in nutrient use.
In its last quarterly update, from 3Q23, Cibus gave updates on its continued efforts at trait development for several crops in various regions. These included field trials for the PSR trait in canola, a vital oil seed crop, and for the HT1 and HT3 traits in rice. The company also started field trials for its PSR trait in winter oilseed rape (WOSR) in the UK, and reported continued progress in its soybean single cell operating system, which is expected to come online in 2024.
Cibus has been transitioning from an R&D company to a commercial company, and on the insider trading front, it’s clear CEO Rory Riggs is confident in its success. He recently bought 517,107 CBUS shares, with the purchase now worth almost $8.69 million.
Canaccord Genuity analyst Bobby Burleson also takes an upbeat stance on the company, believing it is making the right moves in anticipation of lift off. Burleson writes, “We continue to see CBUS well positioned in the gene-edited crop trait market given the company’s traction with leading germplasm partners and substantial progress already made by CBUS on several traits across multiple crops including canola, rice, and soybean, among others, with the caveat that the cash runway needs to be addressed to execute its plan for 2024 and beyond. CBUS recently announced headcount reductions and a realignment in part to extend this runway.”
Burleson complemented his stance with a Buy rating on the shares, and a $25 price target that implies a one-year upside of 49%. (To watch Burleson’s track record, click here)
Overall, Cibus’ Moderate Buy consensus rating is based on just 2 recent analyst reviews – but they are both positive. The stock is trading for $16.80, and its average price target matches the Canaccord view. (See Cibus stock forecast)
RumbleON (RMBL)
Next up is RumbleON, an automotive-related company operating in the sales niche. Specifically, RumbleON connects buyers and dealers in the world of recreational sporting vehicles. The company has a particular focus on motorcycles – hence its name – but it will facilitate transactions in all sorts of pre-owned powersports vehicles.
RumbleON boasts that it is the largest retailer of new and used powersports vehicles in the North American market. The company deals in most of the brands out there – customers can find Harley Davidson and Indian motorcycles, as well as Polaris vehicles. For fans of international motorsports, relevant labels include Ducati, Triumph, BMW, Honda, and Yamaha.
RumbleON offers a seamless online process for both buyers and sellers, and guarantees that customers will find the ride they are looking for. The company’s $575.4 million acquisition of RideNow, completed two years ago as the country as a whole was emerging from the COVID lockdown era, brought RumbleON a network of 50+ locations around the country, where customers can shop for new vehicles, or pick up vehicles bought online.
A look at the insider trades on RMBL brings us to William Coulter, a member of the Board of Directors and a 10% owner of the company. This month, Coulter made a bulk purchase of 860,882 shares of the stock, now worth over $7.34 million. Coulter now holds over $50 million worth of RumbleON stock.
Getting to the company’s recent financial figures, we find that RumbleON saw a total of $338.1 million in revenue for 3Q23. This was down 11.7% from Q2, a decline management described as ‘driven by seasonal trends.’ The Q3 revenue missed the forecast by $16.85 million.
At the company’s bottom line, earnings came out to a net loss of 71 cents per diluted share, in non-GAAP terms. This figure was based on a total adjusted net loss of $11.9 million; the EPS missed expectations by 35 cents per share.
Nevertheless, despite its earnings miss, B. Riley analyst Eric Wold takes the view that with a $100 million equity rights offering now completed, the company’s potential growth drivers are not being fully appreciated. He writes, “With our view that underlying demand trends and powersports vehicle GPUs have stabilized recently and the reduction in debt from this offering and non-core asset sales will boost FCF generation through lower interest expense, we believe the impressive subscription level demonstrates that the current valuation may not accurately reflect those growth drivers—especially within an externally-acquisitive environment.”
Looking ahead, Wold adds his view of the stock’s likely path forward: “We are adjusting our model for the equity rights offering and remain optimistic that management will be able to utilize nearly half of the proceeds to fuel accretive dealership acquisitions in the quarters ahead. We previously noted our belief that RMBL shares were artificially trading at this level due to the overhang from the equity rights offering and would not be surprised if they moved higher toward a more appropriate valuation.”
Together, these comments back up Wold’s Buy rating on the shares, and his $11 price target shows his confidence in a 29% potential upside in the next 12 months. (To watch Wold’s track record, click here)
RumbleON has earned a unanimously positive Strong Buy consensus rating from the Street, based on 3 recent analyst reviews. The stock is trading for $8.53 and its $10.50 average price target implies a potential gain of 23% by this time next year. (See RumbleON stock forecast)
Ford Motor (F)
Last up is a storied name in the automotive industry, Ford Motor. Long synonymous with Detroit’s ‘Motor City’ image, Ford is actually based in nearby Dearborn. Founder Henry Ford introduced the first automotive assembly lines in 1913, at his Highland Park factory – streamlining production of his famous Model T and changing forever the way that heavy industry operates. Today, Ford is best known for its popular and famous F-series of light- and heavy-duty pickup trucks, which have consistently been the best-selling trucks in the US for over 40 years.
Ford continues to innovate, working to improve existing vehicles, introduce new features, and create new driving systems. The company has made a solid commitment to putting more electric vehicles on the road, and is developing new driver assistance and connected vehicle systems that promise to change the way we control and operate our vehicles.
However, when we look at Ford’s last quarterly earnings results, we find the auto giant missed expectations on both the top-and bottom-line. The company generated $41.18 billion in revenue, up 10% y/y, but falling shy of the forecast by $1.33 billion. The company’s bottom-line adj. earnings reached 39 cents per share, coming in 7 cents worse than had been anticipated.
Meanwhile, the most recent insider trade on Ford stock came from the company’s Chief EV, Digital & Design officer, Doug Field. Field recently spent just over $2 million to buy 182,000 shares and his full stake in the company is currently worth ~$8.60 million.
For Bank of America’s 5-star analyst John Murphy, the company’s long-term plans are net positives, and he writes of the automaker, “Ford is aggressively repositioning its business model by leveraging the combined strength of its Ford Blue and Ford Pro businesses to fund its growing Model e business along with vital connected technology. We believe the company has a long way to go, but combined with a strong near-term product cadence (especially Super Duty) we expect management will likely make great strides.”
Murphy goes on to rate F as a Buy, and his $19 price target suggests a strong 58% gain lying ahead for the stock next year. (To watch Murphy’s track record, click here)
Zooming out, we see that Ford Motor has picked up 14 recent analyst reviews, with a breakdown of 6 Buys and Holds, each, and 2 Sells giving the stock its Moderate Buy consensus rating. Shares are currently trading for $12.02 and the stock’s $13.15 average target price points toward a 9.5% upside on the one-year horizon. (See Ford stock forecast)
To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a tool that unites all of TipRanks’ equity insights.
Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
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 also started field trials for its PSR trait in winter oilseed rape (WOSR) in the UK, and reported continued progress in its soybean single cell operating system, which is expected to come online in 2024. He writes, “With our view that underlying demand trends and powersports vehicle GPUs have stabilized recently and the reduction in debt from this offering and non-core asset sales will boost FCF generation through lower interest expense, we believe the impressive subscription level demonstrates that the current valuation may not accurately reflect those growth drivers—especially within an externally-acquisitive environment.” Looking ahead, Wold adds his view of the stock’s likely path forward: “We are adjusting our model for the equity rights offering and remain optimistic that management will be able to utilize nearly half of the proceeds to fuel accretive dealership acquisitions in the quarters ahead. Founder Henry Ford introduced the first automotive assembly lines in 1913, at his Highland Park factory – streamlining production of his famous Model T and changing forever the way that heavy industry operates. | Don’t miss ‘We Are Bullish on Cybersecurity’: Susquehanna Recommends 3 Stocks to Consider Jefferies Says Solar Stocks Offer a Positive Risk-Reward — Here Are 2 Names to Take Advantage Bank of America Pounds the Table on These 3 Buy-Rated Stocks Cibus (CBUS) We’ll start in the agricultural world, where millions can ride on finding the right seed, or producing the right fruit – and then being able to replicate it again, and again, and again, reliably, to meet the food needs of the world’s population. (To watch Burleson’s track record, click here) Overall, Cibus’ Moderate Buy consensus rating is based on just 2 recent analyst reviews – but they are both positive. (To watch Wold’s track record, click here) RumbleON has earned a unanimously positive Strong Buy consensus rating from the Street, based on 3 recent analyst reviews. | Don’t miss ‘We Are Bullish on Cybersecurity’: Susquehanna Recommends 3 Stocks to Consider Jefferies Says Solar Stocks Offer a Positive Risk-Reward — Here Are 2 Names to Take Advantage Bank of America Pounds the Table on These 3 Buy-Rated Stocks Cibus (CBUS) We’ll start in the agricultural world, where millions can ride on finding the right seed, or producing the right fruit – and then being able to replicate it again, and again, and again, reliably, to meet the food needs of the world’s population. For Bank of America’s 5-star analyst John Murphy, the company’s long-term plans are net positives, and he writes of the automaker, “Ford is aggressively repositioning its business model by leveraging the combined strength of its Ford Blue and Ford Pro businesses to fund its growing Model e business along with vital connected technology. (See Ford stock forecast) To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a tool that unites all of TipRanks’ equity insights. | This combination makes their own stock trades highly informative for the retail investor; the insiders may sell shares for many reasons, but they’ll only buy for one: they believe those shares are going to go up. These included field trials for the PSR trait in canola, a vital oil seed crop, and for the HT1 and HT3 traits in rice. (See RumbleON stock forecast) Ford Motor (F) Last up is a storied name in the automotive industry, Ford Motor. | b09b4417-fbf6-4627-8a60-1e69ef20b58a |
710512.0 | 2023-12-16 18:00:00 UTC | BlackBerry Q3 24 Earnings Conference Call At 5:30 PM ET | DCOMP | https://www.nasdaq.com/articles/blackberry-q3-24-earnings-conference-call-at-5%3A30-pm-et | nan | nan | (RTTNews) - BlackBerry (BB) will host a conference call at 5:30 PM ET on Dec. 20, 2023, to discuss Q3 24 earnings results.
To access the live webcast, log on to https://www.blackberry.com/us/en/company/investors
To listen to the call, dial +1 (877) 883-0383, Elite Entry Number 7908097.
For a replay call, dial +1 (855) 669-9658 or +1 (877) 344-7529, Access Code 1117356.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - BlackBerry (BB) will host a conference call at 5:30 PM ET on Dec. 20, 2023, to discuss Q3 24 earnings results. To access the live webcast, log on to https://www.blackberry.com/us/en/company/investors To listen to the call, dial +1 (877) 883-0383, Elite Entry Number 7908097. For a replay call, dial +1 (855) 669-9658 or +1 (877) 344-7529, Access Code 1117356. | To access the live webcast, log on to https://www.blackberry.com/us/en/company/investors To listen to the call, dial +1 (877) 883-0383, Elite Entry Number 7908097. For a replay call, dial +1 (855) 669-9658 or +1 (877) 344-7529, Access Code 1117356. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - BlackBerry (BB) will host a conference call at 5:30 PM ET on Dec. 20, 2023, to discuss Q3 24 earnings results. To access the live webcast, log on to https://www.blackberry.com/us/en/company/investors To listen to the call, dial +1 (877) 883-0383, Elite Entry Number 7908097. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - BlackBerry (BB) will host a conference call at 5:30 PM ET on Dec. 20, 2023, to discuss Q3 24 earnings results. To access the live webcast, log on to https://www.blackberry.com/us/en/company/investors To listen to the call, dial +1 (877) 883-0383, Elite Entry Number 7908097. For a replay call, dial +1 (855) 669-9658 or +1 (877) 344-7529, Access Code 1117356. | f7244703-16ab-4baa-92e9-81147be6ad9c |
710513.0 | 2023-12-16 18:00:00 UTC | The Zacks Analyst Blog Highlights Enanta, OneConnect Financial, KNOT Offshore, Hippo Holdings and H World | DCOMP | https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights-enanta-oneconnect-financial-knot-offshore-hippo-holdings | nan | nan | For Immediate Release
Chicago, IL – December 20, 2023 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Enanta Pharmaceuticals, Inc. ENTA, OneConnect Financial Technology Co. OCFT, KNOT Offshore Partners LP KNOP, Hippo Holdings Inc. HIPO and H World Group Ltd. HTHT.
Here are highlights from Tuesday’s Analyst Blog:
5 Secret Santa Stocks to Pop Surprise Returns
Wall Street has been sizzling hot this holiday season, with the three major U.S. bourses extending the seven-week solid momentum. Speculation that the Fed is done with interest rate hikes is the major catalyst. The solid trend is likely to continue, given that the Santa Claus rally is on the way.
Santa Claus rally refers to the increase in stock prices in the final week of the calendar year (i.e., between Christmas and New Year’s Day) that extends into the first two days of the New Year. This looks more real this year, given that the Fed has boosted optimism in the stock market by indicating deeper rate cuts than expected for the next year.
Against such a backdrop, there are some hidden gems, or Secret Santa as we call them, that could surprise investors with big returns this Christmas. We have chosen five stocks that have underperformed this year but have a Zacks Rank #1 (Strong Buy) or 2 (Buy) with a Momentum Score of B or higher. Some of these are Enanta Pharmaceuticals, Inc., OneConnect Financial Technology Co., KNOT Offshore Partners LP, Hippo Holdings Inc. and H World Group Ltd. from different segments of the market. You can see the complete list of today’s Zacks #1 Rank stocks here.
Good Tidings Flow
With inflation easing and the economy holding up better, the Fed has shifted to a dovish view. The central bank expects the federal funds rate to fall to a range of 4.4-4.9% in 2024, down from the current 5.25% to 5.50%. Markets have been pricing in a nearly 60% chance that the Fed will begin to cut rates at its March meeting, up from 40% the day prior, per the data from CME Group.
Americans are feeling more confident about the economy than they did over the past few months, heading into Christmas. Consumer sentiment rebounded sharply in early December as worries about inflation receded. Retail sales also posted surprise growth in November after declining in the prior month. The data points to resilient consumers and a strong start to the holiday season, indicating that Santa is on the way.
Though good tidings have already started flowing in, thanks to the Fed, year-end seasonal factors such as holiday optimism, tax-related affairs, investment of Christmas bonuses, mutual fund manager window dressing, and the “January effect” will continue to push stocks higher.
Since 1950, the S&P 500 has risen 1.3% on average over the final five trading days of December and the first two days of January, according to the Stock Trader’s Almanac. The Santa Claus rally has occurred in 59 years since 1950, including 2022-23, when the S&P 500 rose 0.8% over the seven trading days.
Here Comes Secret Santa!
Enanta Pharmaceuticals is a biotechnology company that is engaged in the research and development of molecule drugs for the treatment of infectious diseases such as hepatitis C virus, respiratory tract infections, and intravenous and oral treatments.
Enanta Pharmaceuticals has plunged about 80% this year and carries a Zacks Rank #2. It belongs to a top-ranked industry (in the top 30%) and has a Momentum Score of B.
OneConnect Financial is engaged in providing cloud-native technology solutions to financial institutions, primarily in China. With a market cap of $112.3 million, the stock belongs to a top-ranked industry (in the top 30%).
OneConnect Financial carries a Zacks Rank #2 and has a Momentum Score of A. The stock is down about 56% this year.
KNOT Offshore is engaged in owning, acquiring and operating shuttle tankers designed to transport crude oil and condensates from offshore oil field installations to onshore terminals and refineries. It has a market cap of $197.1 million.
KNOT Offshore has lost 38.5% this month. It belongs to an industry that is ranked in the top 21%. It has a Zacks Rank #1 and a Momentum Score of B.
Hippo Holdings offers a different kind of home insurance, built from the ground up to provide a new standard of care and protection for homeowners. It has a market cap of $2.9 billion.
Hippo Holdings has plunged 40.5% so far this year and carries a Zacks Rank #2. It belongs to a top-ranked industry (in the top 12%) and has a Momentum Score of B.
H World Group is involved in the hotel industry. Its brands include Hi Inn, Elan Hotel, HanTing Hotel, JI Hotel, Starway Hotel, Orange Hotel, Crystal Orange Hotel, Manxin Hotel, Madison Hotel, Joya Hotel, Blossom House, Ni Hao Hotel, CitiGO Hotel, Steigenberger Hotels & Resorts, MAXX, Jaz in the City, IntercityHotel, Zleep Hotels, Steigenberger Icon and Song Hotels. The stock has declined 19% this year.
With a market cap of $1.7 billion, H World Group Limited has a solid Zacks Industry rank in the top 37%. HTHT has a Zacks Rank #1 and a Momentum Score of A.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Zacks 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
H World Group Limited Sponsored ADR (HTHT) : Free Stock Analysis Report
Enanta Pharmaceuticals, Inc. (ENTA) : Free Stock Analysis Report
KNOT Offshore Partners LP (KNOP) : Free Stock Analysis Report
OneConnect Financial Technology Co., Ltd. Sponsored ADR (OCFT) : Free Stock Analysis Report
Hippo Holdings Inc. (HIPO) : 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. | Stocks recently featured in the blog include: Enanta Pharmaceuticals, Inc. ENTA, OneConnect Financial Technology Co. OCFT, KNOT Offshore Partners LP KNOP, Hippo Holdings Inc. HIPO and H World Group Ltd. HTHT. Here are highlights from Tuesday’s Analyst Blog: 5 Secret Santa Stocks to Pop Surprise Returns Wall Street has been sizzling hot this holiday season, with the three major U.S. bourses extending the seven-week solid momentum. Though good tidings have already started flowing in, thanks to the Fed, year-end seasonal factors such as holiday optimism, tax-related affairs, investment of Christmas bonuses, mutual fund manager window dressing, and the “January effect” will continue to push stocks higher. | Stocks recently featured in the blog include: Enanta Pharmaceuticals, Inc. ENTA, OneConnect Financial Technology Co. OCFT, KNOT Offshore Partners LP KNOP, Hippo Holdings Inc. HIPO and H World Group Ltd. HTHT. Click to get this free report H World Group Limited Sponsored ADR (HTHT) : Free Stock Analysis Report Enanta Pharmaceuticals, Inc. (ENTA) : Free Stock Analysis Report KNOT Offshore Partners LP (KNOP) : Free Stock Analysis Report OneConnect Financial Technology Co., Ltd. Sponsored ADR (OCFT) : Free Stock Analysis Report Hippo Holdings Inc. (HIPO) : Free Stock Analysis Report To read this article on Zacks.com click here. | Santa Claus rally refers to the increase in stock prices in the final week of the calendar year (i.e., between Christmas and New Year’s Day) that extends into the first two days of the New Year. We have chosen five stocks that have underperformed this year but have a Zacks Rank #1 (Strong Buy) or 2 (Buy) with a Momentum Score of B or higher. Click to get this free report H World Group Limited Sponsored ADR (HTHT) : Free Stock Analysis Report Enanta Pharmaceuticals, Inc. (ENTA) : Free Stock Analysis Report KNOT Offshore Partners LP (KNOP) : Free Stock Analysis Report OneConnect Financial Technology Co., Ltd. | With a market cap of $1.7 billion, H World Group Limited has a solid Zacks Industry rank in the top 37%. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. Be First to New Top 10 Stocks >> Want the latest recommendations from Zacks Investment Research? | 525aaca3-cb4c-4869-ba68-92697f7f4551 |
710514.0 | 2023-12-16 18:00:00 UTC | Will Lumen Technologies Stock Beat the Market in 2024? | DCOMP | https://www.nasdaq.com/articles/will-lumen-technologies-stock-beat-the-market-in-2024 | nan | nan | Buying a growth stock at a beaten-down valuation can be a way for investors to potentially earn a great return. The problem is that some stocks that are down big won't end up recovering. The temptation to buy a troubled stock because its valuation is low can get investors into a situation where they end up becoming bagholders of a company they weren't all that fond of.
Lumen Technologies (NYSE: LUMN) is an example of a growth stock that has taken a beating in recent years. Since 2022, its share price has plummeted a whopping 86%. Its valuation fell as investors grew concerned about the company's high debt load and abysmal financials. The CEO hopes to turn the business around and lead it back to generating stronger results -- but that's still in its early stages.
Is Lumen an underrated stock worth investing in today? Does it have the potential to be a market-beating stock next year?
Why Lumen could beat the market
At a market cap of just $1.8 billion, one of the most appealing aspects of Lumen Technologies' stock right now is undoubtedly its low valuation. Trading down 65% this year, investors are paying just 0.8 times the book value for the stock and just 0.1 times the revenue. Those are dirt-cheap multiples for the telecom provider (formerly known as CenturyLink).
The company suspended its dividend payments last year, opting instead to repurchase shares and focus on investing in growth opportunities, which led to a steep sell-off. But by focusing on growth, it can potentially make its business stronger. Lumen has also been working on reducing its obligations, with long-term debt totaling $19.7 billion as of the end of last quarter (which ended in September) down from $20.4 billion at the start of 2023.
Lumen expects to rely on investments in its Quantum Fiber business to help lead to long-term growth. The business has high barriers to entry, and it could pave the way to better results in the future. Lumen projects that by 2027 it could be generating free cash flow between $300 million and $500 million (the company generated a modest $38 million in free cash last quarter, and in previous periods it has been negative).
If Lumen can prove to investors that it is able to make strides next year in reducing its debt and improving free cash flow, it may be able to generate some much-needed bullishness behind its stock.
Why Lumen stock may struggle in 2024
The big risk for investors is that Lumen simply may not reach its planned turnaround. As of the end of last quarter, the company had just $311 million in cash and cash equivalents on its books -- down from close to $1.3 billion at the start of the year. With a mountain of debt to worry about, there is ample risk that Lumen simply may not be able to survive.
And there also isn't much in the way of growth to get excited about. Last quarter the company reported declines in revenue across all of its sales channels. Even in its "grow" business segment, which focuses on products and services it expects will generate growth (including edge cloud services and managed security), sales were up just 1% year over year.
Without much growth to show, and the company having limited cash at its disposal, a drastic turnaround in Lumen's business may not come easily. And that could be a recipe for further disaster for the stock in 2024.
Investors shouldn't take a chance on Lumen
Unless you have an extremely high risk tolerance, Lumen Technologies isn't a stock worth investing in today. The stock trades at a discount, but for good reason -- it's an incredibly risky buy. Investors are discounting it due to the risk that comes along with this investment. And with no certainty that things will be any better next year, it's hard to make a case that the stock won't be down big again in 2024, let alone that it will beat the market.
Investors are better off going with real growth stocks that have the potential to do well next year.
Should you invest $1,000 in Lumen Technologies right now?
Before you buy stock in Lumen Technologies, consider this:
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David Jagielski has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The temptation to buy a troubled stock because its valuation is low can get investors into a situation where they end up becoming bagholders of a company they weren't all that fond of. The company suspended its dividend payments last year, opting instead to repurchase shares and focus on investing in growth opportunities, which led to a steep sell-off. If Lumen can prove to investors that it is able to make strides next year in reducing its debt and improving free cash flow, it may be able to generate some much-needed bullishness behind its stock. | Lumen projects that by 2027 it could be generating free cash flow between $300 million and $500 million (the company generated a modest $38 million in free cash last quarter, and in previous periods it has been negative). Investors shouldn't take a chance on Lumen Unless you have an extremely high risk tolerance, Lumen Technologies isn't a stock worth investing in today. Before you buy stock in Lumen Technologies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Lumen Technologies wasn't one of them. | Investors shouldn't take a chance on Lumen Unless you have an extremely high risk tolerance, Lumen Technologies isn't a stock worth investing in today. Before you buy stock in Lumen Technologies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Lumen Technologies 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. | But by focusing on growth, it can potentially make its business stronger. Investors shouldn't take a chance on Lumen Unless you have an extremely high risk tolerance, Lumen Technologies isn't a stock worth investing in today. Before you buy stock in Lumen Technologies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Lumen Technologies wasn't one of them. | 79d84d9e-3925-4343-83a6-2a504cf9f006 |
710515.0 | 2023-12-16 18:00:00 UTC | Bull of the Day: Beacon Roofing Supply (BECN) | DCOMP | https://www.nasdaq.com/articles/bull-of-the-day%3A-beacon-roofing-supply-becn | nan | nan | Beacon Roofing Supply BECN, 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.
Image Source: Zacks Investment Research
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.
Image Source: StockCharts
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.
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. | The company offers a variety of solutions such as pitched and low-slope roofing, gutters and siding, HVAC, and commercial insulation products. Bottom Line Beacon Roofing Supply is ranked favorably by our Zacks Style Scores with top marks across our Growth, Value, and Momentum categories. 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%. | Beacon Roofing Supply BECN, a Zacks Rank #1 (Strong Buy), is engaged in the distribution of roofing materials in the United States and Canada. With positive fundamental and technical indicators, BECN stock is poised to continue its outperformance. Click to get this free report Beacon Roofing Supply, Inc. (BECN) : Free Stock Analysis Report To read this article on Zacks.com click here. | Beacon Roofing Supply BECN, a Zacks Rank #1 (Strong Buy), is engaged in the distribution of roofing materials in the United States and Canada. 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. 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. | 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. Company Description Beacon Roofing Supply provides residential and non-residential roofing materials and building products to contractors, homebuilders, building owners, lumberyards, and retailers. 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. | d1ee069c-7733-4c17-9f99-dd83ebbad79f |
710516.0 | 2023-12-16 18:00:00 UTC | Zacks Industry Outlook Highlights EMCOR, Granite Construction and Orion Group | DCOMP | https://www.nasdaq.com/articles/zacks-industry-outlook-highlights-emcor-granite-construction-and-orion-group | nan | nan | For Immediate Release
Chicago, IL – December 20, 2023 – Today, Zacks Equity Research discusses EMCOR Group Inc. EME, Granite Construction Inc. GVA and Orion Group Holdings, Inc. ORN.
Industry: Construction
Link: https://www.zacks.com/commentary/2199853/3-stocks-to-watch-from-a-prosperous-heavy-construction-industry
The Zacks Building Products - Heavy Construction sector is anticipated to maintain momentum, driven by a substantial infrastructure initiative spearheaded by the U.S. government. The objective of this initiative is to enhance the country's roads, bridges, and broadband connectivity.
Companies within the industry are leveraging the heightened demand observed across multiple sectors, such as communications, transmission, power, and other infrastructure projects. Despite facing challenges such as project delays, a competitive labor market, and rising costs, certain companies like EMCOR Group Inc., Granite Construction Inc. and Orion Group Holdings, Inc. have effectively navigated these obstacles and are well-positioned to capitalize on strong market prospects. While macroeconomic hurdles may affect some customer plans, these companies are poised for growth in this dynamic sector.
Industry Description
The Zacks Building Products - Heavy Construction industry consists of mechanical and electrical construction, industrial and energy infrastructure as well as building service providers. This industry comprises heavy civil construction companies that specialize in the building and reconstruction of transportation projects, including highways, roads, bridges, airfields, ports and light rail. The companies serve commercial, industrial, utility and institutional clients.
The industry players are engaged in the engineering, construction and maintenance of communications infrastructure, oil and natural gas pipelines as well as processing facilities for energy and utility industries. These firms are also engaged in mining and dredging services in the United States and internationally.
4 Trends Shaping the Future of the Heavy Construction Industry
U.S. Administration’s Infrastructural Endeavor: The announcement of President Joe Biden’s massive infrastructure plan to build modern sustainable infrastructure and a clean future will have major implications for the U.S. economy and the construction industry over the next five years. Biden’s plan for accelerated investments in far-reaching areas, from roads and bridges to green spaces, water systems, electricity grids, as well as universal broadband, laid a new foundation for sustainable growth, withstanding the impacts of climate change and improving public health, including access to clean air and clean water. The aforesaid infrastructural expansion plan should be a boon for construction-related companies.
Strong Prospects in Telecommunication: The ramp-up of projects related to 5G has been a silver lining for the industry players. The increased demand from telecom customers for wireline networks, wireless/wireline converged networks and wireless networks using 5G technologies has been benefiting industry players. Construction work for communications is expected to pick up on huge investments in network expansion. Also, the industry is poised to gain from a significant number of project awards across multiple segments, including communications, health care, transmission and power, along with infrastructural projects in domestic and international markets.
Solid Inorganic Moves & Renewable Business Prospects: Acquisitions have been companies’ preferred mode of solidifying product portfolios and leveraging new business opportunities. Again, due to increased renewable project activity and the expansion of services in biomass and other smaller production facilities, the power generation and industrial construction market is poised to see sizable growth.
The companies are well-positioned to gain from the renewable energy drive of the pro-environmental Biden administration. The development and deployment of technology solutions across the full spectrum of decarbonization efforts, comprising all facets of infrastructure for providing carbon-free energy solutions, should benefit the companies going forward.
Macroeconomic Challenges: The biggest headwinds for the industry players are currently centered around macroeconomic challenges, labor availability and supply-chain delays. In addition to a tight labor market, a rise in raw material costs is a concern. Meanwhile, the businesses of the industry players are susceptible to the cyclical nature of the markets in which clients operate and are dependent on the timing and funding of new awards. Hence, volatility in credits and operating risks associated with economic down cycles are pressing concerns. Macroeconomic effects may dampen the near-term execution of some customer plans.
Zacks Industry Rank Indicates Bright Prospects
The Zacks Building Products - Heavy Construction industry is a 10-stock group within the broader Zacks Construction sector. The industry currently carries a Zacks Industry Rank #92, which places it in the top 37% of more than 250 Zacks industries.
The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates solid near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
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 the S&P 500 & Sector
The Zacks Building Products - Heavy Construction industry has lagged the Zacks S&P 500 composite and the broader Zacks Construction sector over the past year.
Stocks in this industry have collectively gained 23.3% versus the broader sector’s 48.2% rally. Meanwhile, the S&P 500 has jumped 24% in the said period.
Industry's Current Valuation
On the basis of the forward 12-month price-to-earnings ratio, which is a commonly used multiple for valuing heavy construction stocks, the industry is currently trading at 16.9X versus the S&P 500’s 19.8X and the sector’s 16.8X.
Over the past five years, the industry has traded as high as 18.2X, as low as 7.5X and at a median of 13.4X.
3 Heavy Construction Stocks to Watch
Here, we have discussed three stocks from the industry that have solid earnings growth potential. The chosen companies currently sport a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
EMCOR Group: Headquartered in Norwalk, CT, this company provides electrical and mechanical construction and facilities services in the United States. EMCOR has been benefiting from solid execution in the U.S. Construction segment — comprising the U.S. Mechanical and Electrical Construction units — as well as disciplined cost control, project execution strategies and acquisition policies.
The company has been gaining from resilient demand for its services, primarily in semiconductors, data centers, manufacturing re-shoring, healthcare and across the EV value chain, which sparked its growth momentum. Also, accretive buyouts have been strengthening its overall results by adding new markets, opportunities and capabilities.
EMCOR, currently sporting a Zacks Rank #1, has surged 47.9% over the past year. Also, 2024 earnings estimates have increased to $12.56 per share from $11.66, over the past 60 days. Earnings for 2024 are expected to grow 1.5%. EME surpassed earnings estimates in all the trailing four quarters, with the average surprise being 25%.
Granite Construction: Based in Watsonville, CA, this company is an infrastructure contractor and a construction materials producer in the United States. Overall, a robust market environment has been driving improved profitability across its businesses. Its sufficient liquidity position has enabled the company to opportunistically invest in its vertically integrated operations through organic investment and bolt-on acquisitions.
GVA, currently flaunting a Zacks Rank #1, has gained 39.8% over the past year. Also, 2024 earnings estimates have increased to $4.29 per share from $4.20, over the past 30 days. Earnings for 2024 are expected to grow 37.5%. It carries an impressive VGM Score of B.
Orion Group: This Houston, TX-based company functions as a specialized construction firm specializing in projects across building, industrial, and infrastructure sectors. Their operations span the United States, Alaska, Canada, and the Caribbean Basin. The backlog, which serves as a crucial metric reflecting the overall health of the business, amounted to $878 million as of Sep 30, 2023, a notable increase from the $549 million recorded in the year-ago period.
Simultaneously, the company is committed to divesting its unprofitable concrete business in central Texas to pave the way for future growth. This strategic move aligns with the company's focus on enhancing margins through the pursuit of higher-quality projects and improved execution.
ORN, currently carrying a Zacks Rank #3, has gained 93% over the past year. Earnings for 2024 are expected to grow 135.9%. It carries an impressive VGM Score of B.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Zacks Naming Top 10 Stocks for 2024
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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 industry comprises heavy civil construction companies that specialize in the building and reconstruction of transportation projects, including highways, roads, bridges, airfields, ports and light rail. Again, due to increased renewable project activity and the expansion of services in biomass and other smaller production facilities, the power generation and industrial construction market is poised to see sizable growth. The company has been gaining from resilient demand for its services, primarily in semiconductors, data centers, manufacturing re-shoring, healthcare and across the EV value chain, which sparked its growth momentum. | For Immediate Release Chicago, IL – December 20, 2023 – Today, Zacks Equity Research discusses EMCOR Group Inc. EME, Granite Construction Inc. GVA and Orion Group Holdings, Inc. ORN. Industry Description The Zacks Building Products - Heavy Construction industry consists of mechanical and electrical construction, industrial and energy infrastructure as well as building service providers. Click to get this free report EMCOR Group, Inc. (EME) : Free Stock Analysis Report Orion Group Holdings, Inc. (ORN) : Free Stock Analysis Report Granite Construction Incorporated (GVA) : Free Stock Analysis Report To read this article on Zacks.com click here. | Industry Description The Zacks Building Products - Heavy Construction industry consists of mechanical and electrical construction, industrial and energy infrastructure as well as building service providers. Zacks Industry Rank Indicates Bright Prospects The Zacks Building Products - Heavy Construction industry is a 10-stock group within the broader Zacks Construction sector. Industry Lags the S&P 500 & Sector The Zacks Building Products - Heavy Construction industry has lagged the Zacks S&P 500 composite and the broader Zacks Construction sector over the past year. | Zacks Industry Rank Indicates Bright Prospects The Zacks Building Products - Heavy Construction industry is a 10-stock group within the broader Zacks Construction sector. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. Be First to New Top 10 Stocks >> Want the latest recommendations from Zacks Investment Research? | df94b22a-f62d-45d5-bd19-b030c1d4fbca |
710517.0 | 2023-12-16 18:00:00 UTC | Have $500? 2 Absurdly Cheap Stocks Long-Term Investors Should Buy Right Now | DCOMP | https://www.nasdaq.com/articles/have-%24500-2-absurdly-cheap-stocks-long-term-investors-should-buy-right-now-13 | nan | nan | Adding $500 to a retirement account annually, or roughly $10 a week, may not sound life changing. However, I like to view it through the eyes of my 8-year-old daughter. Should these measly $10 weekly additions be made in perpetuity throughout the first 65 years of her life, her account would grow to over $2.6 million, assuming historical average market returns of 10%.
While it is doubtful that this account would go untouched, with potential use cases like college or a down payment for a house, it nonetheless highlights the power of a mere $500. And remember, these are just market-matching returns. If you find a potential long-term winner at an absurdly cheap valuation, you could do even better.
Here's what makes PayPal (NASDAQ: PYPL) and The Toro Company (NYSE: TTC) so interesting at today's discounted valuations.
1. PayPal
Down 80% from its all-time highs, digital payment platform PayPal's share price is now at a level it hasn't seen since 2017.
As tumultuous as this drop has been, PayPal's reduced share price leaves it trading at what appears to be a once-in-a-decade valuation in 2023.
PYPL PE Ratio data by YCharts
Is PayPal's meteoric rise ending? Or is the stock ripe for the picking at this discounted price?
Here are three key reasons I believe the latter is becoming the case:
PayPal's booming unbranded operations: Growing sales by 32% in the third quarter, PayPal's "unbranded" operations continue to lead the company's growth charge. This unbranded unit is powered by Braintree, which focuses on customizable payment solutions for large enterprises, and PayPal Complete Payments (PPCP), its small-to-medium-sized business offering. While lower-margin than PayPal's traditional branded business (where you see the company's logo at checkout), these unbranded operations are crucial to the company's long-term success. Pairing roughly 35 million merchant accounts with over 400 million customer accounts, PayPal now has an incredible 5 billion vaulted financial instruments across its two-sided network. This stunning figure accounts for 25% of the world's payment cards (minus China), highlighting its incredible reach in the payments industry.
The people's choice in buy now, pay later (BNPL): Despite only counting roughly a quarter as many BNPL users as industry-leading Klarna's 150 million, PayPal has quickly become consumers' favorite partner, according to a study by J.P. Morgan. Preferred by 43% of users -- compared to 18%, 13%, and 12% for Afterpay, Klarna, and Affirm -- PayPal's BNPL offering boasts an eye-catching Net Promoter Score (NPS) of 82. NPS scores measure how likely a customer is to recommend a product to a friend, rated on a scale of -100 to 100. Typically, a score in the 80s is reserved for life-changing purchases or products that bring joy into a customer's life. Growing from just 3 million users at the end of 2020 to 32 million in the last quarter, BNPL will remain an exciting growth story for PayPal. The cherry on top for investors? PayPal recently struck a deal with KKR, where the latter will continue buying up the company's BNPL loan portfolio, removing a lot of loan performance risk.
Share buybacks at better prices: Generating an average of $4.7 billion in free cash flow annually over the last five years, PayPal is well positioned to continue returning cash to its shareholders through stock buybacks. However, with its stock trading at a deeply discounted price and a valuation well below the S&P 500's average price-to-earnings (P/E) ratio of 25, these buybacks generate even more value. PayPal lowered its share count by 6% in just the past year, and these repurchases could be a powerful catalyst alongside PayPal's unbranded and BNPL growth ambitions.
PayPal's dedication to buying back shares at just 18 times earnings could make the stock attractive enough to many investors in its own right. Pair these better-timed repurchases with a growth story that is still being told, and PayPal looks to be a long-term winner trading at an absurdly low price right now.
2. Toro
Toro has seen its share price dip by 22% in 2023. The company provides a range of landscaping equipment, from mowers for golf courses and sports fields to snow throwers, irrigation, lighting, underground construction, and a suite of residential products. Despite its long history of beating the market -- rising 16% annually since the start of the millennium -- Toro has struggled year to date as sales from its residential unit plummeted 35% in the third quarter.
The company saw a boom in mowers, snow throwers, chain saws, and trimmers during the height of the pandemic, but the stock finally reflected the post-lockdown slump.
However, this leaves Toro trading at a once-in-a-decade valuation.
TTC PS Ratio data by YCharts
Thanks to this combination of a price-to-sales (P/S) ratio well below Toro's 10-year averages and a 1.6% dividend yield at a decade-long high, the company seems absurdly cheap.
Perhaps most importantly to investors, Toro is launching a new partnership with Lowe's to sell equipment in its stores starting in the spring of 2024. While the company already has similar deals with Home Depot and Tractor Supply, these added sales could help Toro's residential segment rebound once they reach the cycle trough.
Furthermore, with Toro's focus on making tuck-in acquisitions over time -- including five in the past five years -- this temporary industry downturn could prove to be an opportunity for the company to strike again. While investors wait, Toro will likely reward its shareholders with its 20th consecutive year of dividend increases, thanks partly to a payout ratio of only 37%.
With time, customers will reach the replacement cycle on their lockdown-spurred purchases, leading to brighter days for Toro's residential business -- not to mention the steady results from its larger professional operations. However, in the meantime, Toro looks like an absurdly cheap investment with a reasonable dividend to add to until the cycle flips.
Should you invest $1,000 in PayPal right now?
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JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Josh Kohn-Lindquist has positions in Home Depot, Lowe's Companies, PayPal, Toro, and Tractor Supply. The Motley Fool has positions in and recommends Home Depot, JPMorgan Chase, KKR, and PayPal. The Motley Fool recommends Lowe's Companies, Toro, and Tractor Supply and recommends the following options: short December 2023 $67.50 puts on PayPal. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The company provides a range of landscaping equipment, from mowers for golf courses and sports fields to snow throwers, irrigation, lighting, underground construction, and a suite of residential products. Despite its long history of beating the market -- rising 16% annually since the start of the millennium -- Toro has struggled year to date as sales from its residential unit plummeted 35% in the third quarter. With time, customers will reach the replacement cycle on their lockdown-spurred purchases, leading to brighter days for Toro's residential business -- not to mention the steady results from its larger professional operations. | Josh Kohn-Lindquist has positions in Home Depot, Lowe's Companies, PayPal, Toro, and Tractor Supply. The Motley Fool has positions in and recommends Home Depot, JPMorgan Chase, KKR, and PayPal. The Motley Fool recommends Lowe's Companies, Toro, and Tractor Supply and recommends the following options: short December 2023 $67.50 puts on PayPal. | Here are three key reasons I believe the latter is becoming the case: PayPal's booming unbranded operations: Growing sales by 32% in the third quarter, PayPal's "unbranded" operations continue to lead the company's growth charge. Share buybacks at better prices: Generating an average of $4.7 billion in free cash flow annually over the last five years, PayPal is well positioned to continue returning cash to its shareholders through stock buybacks. Before you buy stock in PayPal, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and PayPal wasn't one of them. | Growing from just 3 million users at the end of 2020 to 32 million in the last quarter, BNPL will remain an exciting growth story for PayPal. TTC PS Ratio data by YCharts Thanks to this combination of a price-to-sales (P/S) ratio well below Toro's 10-year averages and a 1.6% dividend yield at a decade-long high, the company seems absurdly cheap. Before you buy stock in PayPal, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and PayPal wasn't one of them. | 569769f7-40d5-4009-ada4-845f9172a3fb |
710518.0 | 2023-12-16 18:00:00 UTC | You Won't Believe My Meta Stock Recommendation for 2024 | DCOMP | https://www.nasdaq.com/articles/you-wont-believe-my-meta-stock-recommendation-for-2024 | nan | nan | Fool.com contributor Parkev Tatevosian provides his shocking Meta Platforms (NASDAQ: META) stock prediction for 2024.
*Stock prices used were the afternoon prices of Dec. 17, 2023. The video was published on Dec. 19, 2023.
Should you invest $1,000 in Meta Platforms right now?
Before you buy stock in Meta Platforms, 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 Meta Platforms wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
See the 10 stocks
*Stock Advisor returns as of December 18, 2023
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. Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Meta Platforms. The Motley Fool has a disclosure policy.
Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The 10 stocks that made the cut could produce monster returns in the coming years. See the 10 stocks *Stock Advisor returns as of December 18, 2023 Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. | Fool.com contributor Parkev Tatevosian provides his shocking Meta Platforms (NASDAQ: META) stock prediction for 2024. Before you buy stock in Meta Platforms, 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 Meta Platforms wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 18, 2023 Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. | Fool.com contributor Parkev Tatevosian provides his shocking Meta Platforms (NASDAQ: META) stock prediction for 2024. Before you buy stock in Meta Platforms, 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 Meta Platforms wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 18, 2023 Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. | Before you buy stock in Meta Platforms, 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 Meta Platforms 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 Meta Platforms. | bbbe79dc-9241-401e-8ba3-ae38a7e3515f |
710519.0 | 2023-12-16 18:00:00 UTC | The Zacks Analyst Blog Highlights Meta Platforms, Broadcom, Toyota Motor, IBM and Monster Beverage | DCOMP | https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights-meta-platforms-broadcom-toyota-motor-ibm-and-monster | nan | nan | For Immediate Release
Chicago, IL – December 20, 2023 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Meta Platforms, Inc. META, Broadcom Inc. AVGO, Toyota Motor Corp. TM, IBM Corp. IBM and Monster Beverage Corp. MNST.
Here are highlights from Tuesday’s Analyst Blog:
Top Research Reports for Meta Platforms, Broadcom and Toyota
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Meta Platforms, Inc., Broadcom Inc. and Toyota Motor Corp. These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Shares of Meta Platforms have outperformed the Zacks Internet - Software industry over the past six months (+21.2% vs. +13.4%). The company is benefiting from steady user growth across all regions, particularly Asia Pacific. Increased engagement for its offerings like Instagram, WhatsApp, Messenger and Facebook has been a major growth driver.
Meta Platforms is leveraging AI to recommend Reels content, which is driving traffic on Instagram and Facebook. Its innovative portfolio, which includes Threads, Reels and Llama 2, is likely to aid prospects. Advertising revenues are expected to witness a CAGR of 13% per Zacks model estimate.
However, challenging macroeconomic conditions remain a headwind for Meta’s advertising revenues, along with targeting and measurement headwinds due to Apple’s iOS changes. Slow monetization of Reels, along with mounting operating losses at Reality Labs, are concerns.
(You can read the full research report on Meta Platforms here >>>)
Broadcom’s shares have outperformed the Zacks Electronics - Semiconductors industry over the past six months (+33.6% vs. +20.7%). The company is benefiting from the strong deployment of generative AI. It expects generative AI to contribute more than 25% of semiconductor revenues in fiscal 2024.
Strong demand for Tomahawk 5, Jericho, 10-gigabit PON and DOCSIS 3.1 with embedded Wi-Fi 6 and 6E aids Broadcom’s prospects. Its expanding portfolio with the launch of the second-gen Wi-Fi 7 wireless connectivity chip is a catalyst.
Broadcom expects networking revenues to grow nearly 30% year over year in fiscal 2024. VMware is expected to contribute $12 billion to revenues. Infrastructure software revenues are expected to be $20 billion while semiconductor solutions revenues are expected to increase in the mid to high-single-digit percentage range on a year-over-year basis in fiscal 2024.
(You can read the full research report on Broadcom here >>>)
Shares of Toyota Motor have outperformed the Zacks Automotive - Foreign industry over the past six months (+16.6% vs. +13.7%). The company is one of the world’s leading automakers, with an array of brands, including Toyota, Lexus and Scion, which position it for solid growth.
Continued demand for vehicles and a robust lineup of trucks and sport utility vehicles (SUVs) are set to fuel Toyota’s sales volumes. To capitalize on the accelerated global shift to environment-friendly vehicles, the auto giant is deepening its focus on manufacturing electric and fuel-cell vehicles, which will bolster its product competitiveness.
The Japanese auto giant aims to generate 40% of its global sales from EVs by 2025 and 70% by 2030. It plans to invest 4 trillion yen ($35 billion) for a lineup of 30 BEVs by 2030. TM aims to expand global sales of BEVs to 3.5 million units per year by 2030. Thus, we are bullish on the stock.
(You can read the full research report on Toyota Motor here >>>)
Other noteworthy reports we are featuring today include IBM Corp. and Monster Beverage Corp.
Why Haven’t You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Zacks 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
Toyota Motor Corporation (TM) : Free Stock Analysis Report
International Business Machines Corporation (IBM) : Free Stock Analysis Report
Broadcom Inc. (AVGO) : Free Stock Analysis Report
Monster Beverage Corporation (MNST) : Free Stock Analysis Report
Meta Platforms, Inc. (META) : 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. | Other noteworthy reports we are featuring today include IBM Corp. and Monster Beverage Corp. Why Haven’t You Looked at Zacks' Top Stocks? 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. 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%. | Stocks recently featured in the blog include: Meta Platforms, Inc. META, Broadcom Inc. AVGO, Toyota Motor Corp. TM, IBM Corp. IBM and Monster Beverage Corp. MNST. Today's Research Daily features new research reports on 16 major stocks, including Meta Platforms, Inc., Broadcom Inc. and Toyota Motor Corp. Click to get this free report Toyota Motor Corporation (TM) : Free Stock Analysis Report International Business Machines Corporation (IBM) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report Monster Beverage Corporation (MNST) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. | Here are highlights from Tuesday’s Analyst Blog: Top Research Reports for Meta Platforms, Broadcom and Toyota The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Meta Platforms, Inc., Broadcom Inc. and Toyota Motor Corp. Click to get this free report Toyota Motor Corporation (TM) : Free Stock Analysis Report International Business Machines Corporation (IBM) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report Monster Beverage Corporation (MNST) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. | Today's Research Daily features new research reports on 16 major stocks, including Meta Platforms, Inc., Broadcom Inc. and Toyota Motor Corp. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release. Be First to New Top 10 Stocks >> Want the latest recommendations from Zacks Investment Research? | b07780d0-072d-47cd-947e-f4d4de5e079e |
710520.0 | 2023-12-16 18:00:00 UTC | US 'buy now, pay later' splurges raise holiday debt hangover risk | DCOMP | https://www.nasdaq.com/articles/us-buy-now-pay-later-splurges-raise-holiday-debt-hangover-risk | nan | nan | By Lisa Baertlein and Arriana McLymore
LOS ANGELES/NEW YORK, Dec 20 (Reuters) - Roxanne Ross of Florida is one of a growing number of Americans dodging higher interest rates on credit cards by instead turning to "buy now, pay later" services as they shop for holiday merchandise.
Ross has her eyes on the latest Apple AAPL.O AirPods for $249. As of Monday, she was considering using Klarna, a buy now, pay later service, to spread the cost across four installments that stretch into next year.
With U.S. credit card balances at record levels and defaults rising, more shoppers than ever are tapping buy now, pay later services on key shopping days to stretch their budgets.
While they can be a tool for shoppers like Ross, who plans to continue taking out weeks-long, interest-free loans she has used for everything from plane tickets to hair extensions - consumer advocates are raising red flags about cash-strapped shoppers who are adding months-long loans with rates that can top out at 36% - the maximum lenders can charge in many states.
Demand for debt counseling services is up significantly from last year, defying the seasonal slowdown experienced during the holidays, said Bruce McClary, spokesman for the National Foundation for Credit Counseling.
The increased use of buy now, pay later loans from providers like Klarna, Affirm AFRM.O, PayPal PYPL.O and Afterpay SQ.N "signal an increase of short-term debt on top of the more than $1 trillion in outstanding credit card balances," McClary said.
Shoppers can purchase anything from a $3,253 Jil Sander leather tote bag marked 30% off from luxury retailer Farfetch FTCH.N, to groceries from Walmart WMT.N and Burger King gift cards valued at up to $500 — getting the merchandise before it's fully paid for.
Walmart in 2021 scrapped its layaway program, which allowed people to take home merchandise after completing a series of financed payments. The world's biggest retailer, Walmart replaced that with buy now, pay later options through Affirm, setting the stage for the industry's capture of 5% of total e-commerce worldwide.
Retailers pay fees of anywhere from 2% to 8% of the purchase price to buy now, pay later firms. In comparison, credit card processing "swipe" fees run 2% to 4%.
Klarna's holiday "hot deals" include 51% off the last generation iPhone 14 Pro through Walmart, with a price tag of $699.
Consumer advocates warn that the loans could nudge some shoppers to splurge on jewelry, trendy clothing, video game consoles or appliances they otherwise could not afford. Providers told Reuters they are giving shoppers alternatives to the average credit card now charging over 20% interest, and are only extending loans to people they believe are willing and able to repay.
"It feels like the holiday debt hangover could be particularly nasty this year," Bankrate analyst Ted Rossman said.
CHARGING 36% INTEREST
The services do check shoppers' credit ratings to determine whether and what rate of interest to charge. Most heavily advertise 0% interest, "pay in four" biweekly installment loans. But at Affirm, for example, interest-free loans accounted for 26% of its products in its latest quarter, while interest-bearing loans stretching as long as five years accounted for 74%, according to a company presentation.
Affirm said consumers see the total cost of the loan, including interest, up front. Unlike some other providers, it said it has no hidden interest charges.
While cash-flush consumers are users, data shows that the typical BNPL borrower "already has more debt, is already more financially vulnerable and under stress," said Jennifer Chien, senior policy counsel for Financial Fairness at Consumer Reports.
Financially vulnerable households that use the loans to buy food and other essentials can see their debt snowball, which puts them in an even deeper hole. And for those shoppers, the loans may not offer a lower interest alternative to the 30% interest rates on the most expensive store credit cards.
But even users who aren't delinquent in their payments can quickly become overextended, raising the risk of spiraling costs, credit analysts warned.
Seattle-area construction foreman Robert Boyer learned the hard way. He has a balance of more than $4,000 from 18 different Affirm buy now, pay later loans on Amazon.com AMZN.O merchandise, including a $700 drone, a hard hat, work boots and tools.
Boyer, 51, has a previous bankruptcy years ago, and is careful not to run up credit card debt. A recovering addict, he says he got hooked on the instant gratification of buying with small monthly payments of $18 to $40.
"I just wanted the stuff," said Boyer, who admits he didn't read the fine print. In a recent review of the debt, he found that the interest rates on his loans range from about 30% to 36%.
"It's a trap. I was absolutely caught in it," said Boyer, who shared a screenshot showing that one $572 loan at the highest interest rate will ultimately cost him $747.
He intends to repay everything in full, and doesn't plan on taking on any more debt - even though the Affirm app shows he still has $1,630 of purchasing power at Walmart WMT.N and the same amount at jeweler Zales.
GRAPHIC-US credit card lending has surpassed its pre-Covid trend https://tmsnrt.rs/3tbJynQ
GRAPHIC-US auto and credit card delinquencies surge https://tmsnrt.rs/47qNwrr
US credit card lending has surpassed its pre-Covid trend https://tmsnrt.rs/3RpHvGi
US auto and credit card delinquencies surge https://tmsnrt.rs/45Ydhy8
Buy now, pay later company Affirm pushes further into retail gift cards
US banking regulator warns on risks of 'buy now, pay later'
US Thanksgiving weekend sales hit record on big discounts, online boost
More US shoppers tack on buy now, pay later debt for Cyber Monday
Deal-hunters on track to spend $12 billion in US Cyber Monday shopping spree
US economy still resilient as retail sales beat expectations, layoffs stay low
Affirm extends rally on Cyber Monday boost as BNPL lending surges
(Reporting by Lisa Baertlein in Los Angeles and Arriana McLymore in New York; Editing by Nick Zieminski and Andrea RIcci)
((lisa.baertlein@thomsonreuters.com; +1 310-491-7241; Reuters Messaging: lisa.baertlein.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Lisa Baertlein and Arriana McLymore LOS ANGELES/NEW YORK, Dec 20 (Reuters) - Roxanne Ross of Florida is one of a growing number of Americans dodging higher interest rates on credit cards by instead turning to "buy now, pay later" services as they shop for holiday merchandise. With U.S. credit card balances at record levels and defaults rising, more shoppers than ever are tapping buy now, pay later services on key shopping days to stretch their budgets. Shoppers can purchase anything from a $3,253 Jil Sander leather tote bag marked 30% off from luxury retailer Farfetch FTCH.N, to groceries from Walmart WMT.N and Burger King gift cards valued at up to $500 — getting the merchandise before it's fully paid for. | By Lisa Baertlein and Arriana McLymore LOS ANGELES/NEW YORK, Dec 20 (Reuters) - Roxanne Ross of Florida is one of a growing number of Americans dodging higher interest rates on credit cards by instead turning to "buy now, pay later" services as they shop for holiday merchandise. Providers told Reuters they are giving shoppers alternatives to the average credit card now charging over 20% interest, and are only extending loans to people they believe are willing and able to repay. GRAPHIC-US credit card lending has surpassed its pre-Covid trend https://tmsnrt.rs/3tbJynQ GRAPHIC-US auto and credit card delinquencies surge https://tmsnrt.rs/47qNwrr US credit card lending has surpassed its pre-Covid trend https://tmsnrt.rs/3RpHvGi US auto and credit card delinquencies surge https://tmsnrt.rs/45Ydhy8 Buy now, pay later company Affirm pushes further into retail gift cards US banking regulator warns on risks of 'buy now, pay later' US Thanksgiving weekend sales hit record on big discounts, online boost More US shoppers tack on buy now, pay later debt for Cyber Monday Deal-hunters on track to spend $12 billion in US Cyber Monday shopping spree US economy still resilient as retail sales beat expectations, layoffs stay low Affirm extends rally on Cyber Monday boost as BNPL lending surges (Reporting by Lisa Baertlein in Los Angeles and Arriana McLymore in New York; Editing by Nick Zieminski and Andrea RIcci) ((lisa.baertlein@thomsonreuters.com; +1 310-491-7241; Reuters Messaging: lisa.baertlein.thomsonreuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Lisa Baertlein and Arriana McLymore LOS ANGELES/NEW YORK, Dec 20 (Reuters) - Roxanne Ross of Florida is one of a growing number of Americans dodging higher interest rates on credit cards by instead turning to "buy now, pay later" services as they shop for holiday merchandise. The increased use of buy now, pay later loans from providers like Klarna, Affirm AFRM.O, PayPal PYPL.O and Afterpay SQ.N "signal an increase of short-term debt on top of the more than $1 trillion in outstanding credit card balances," McClary said. GRAPHIC-US credit card lending has surpassed its pre-Covid trend https://tmsnrt.rs/3tbJynQ GRAPHIC-US auto and credit card delinquencies surge https://tmsnrt.rs/47qNwrr US credit card lending has surpassed its pre-Covid trend https://tmsnrt.rs/3RpHvGi US auto and credit card delinquencies surge https://tmsnrt.rs/45Ydhy8 Buy now, pay later company Affirm pushes further into retail gift cards US banking regulator warns on risks of 'buy now, pay later' US Thanksgiving weekend sales hit record on big discounts, online boost More US shoppers tack on buy now, pay later debt for Cyber Monday Deal-hunters on track to spend $12 billion in US Cyber Monday shopping spree US economy still resilient as retail sales beat expectations, layoffs stay low Affirm extends rally on Cyber Monday boost as BNPL lending surges (Reporting by Lisa Baertlein in Los Angeles and Arriana McLymore in New York; Editing by Nick Zieminski and Andrea RIcci) ((lisa.baertlein@thomsonreuters.com; +1 310-491-7241; Reuters Messaging: lisa.baertlein.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. | As of Monday, she was considering using Klarna, a buy now, pay later service, to spread the cost across four installments that stretch into next year. Retailers pay fees of anywhere from 2% to 8% of the purchase price to buy now, pay later firms. The services do check shoppers' credit ratings to determine whether and what rate of interest to charge. | 7cac02f9-15f8-47eb-aafa-38737fc9bccd |
710521.0 | 2023-12-16 18:00:00 UTC | Where Will Dutch Bros Stock Be in 10 Years? | DCOMP | https://www.nasdaq.com/articles/where-will-dutch-bros-stock-be-in-10-years | nan | nan | Management for drive-thru coffee chain Dutch Bros (NYSE: BROS) is quite open about its long-term vision for the company. It intends to have 4,000 locations someday, up substantially from its 794 locations as of the third quarter of 2023.
Using this long-term goal as a guide and looking at current business trends, investors can try to approximate where Dutch Bros stock will be in 10 years. And this will help determine whether it's a good stock to buy today.
What the next decade could look like
In 2022, Dutch Bros opened 133 new locations. And in 2023, it's on pace to open at least 150 new locations. This was good for 25% and 22% respective annual growth.
For restaurants growing by opening new locations, maintaining over 20% annual growth is really hard, if not impossible. It's probably better to assume closer to a 10% annual increase in its store count over a decade.
At 10% annual growth, Dutch Bros would have just over 2,000 locations in 10 years -- around halfway to its long-term goal. This seems like a possible outcome if things go well.
While investors don't know the exact pace of new store openings, Dutch Bros has said that most of its new stores will be company-owned, not franchised. For perspective, roughly 90% of new locations in 2022 and 2023 are owned by the company. This will boost the top line considerably.
On its current path, Dutch Bros' growth is unlikely to be limited by its finances. Through the first three quarters of 2023, the company reported operating income of $44 million -- strong profitability while it's simultaneously expanding. Given that these are drive-thru shops, the cost to open a new location is low, relative to larger sit-down chains. Moreover, Dutch Bros is recently debt-free and has roughly $150 million in cash and equivalents.
In short, it doesn't cost Dutch Bros much to grow, which allows it to go fast. It has ample resources to fund growth. And it's profitable, meaning it's getting financially stronger. This is all good.
To guess a future valuation, consider that Dutch Bros averages about $2 million in sales per location right now. Conservatively assuming this stays the same, the company could have annual revenue of $4 billion if it has 2,000 mostly company-owned locations 10 years from now.
More mature competitor Starbucks trades at 3x trailing sales, as of this writing. If Dutch Bros stock traded at that valuation, it could have a market capitalization of over $12 billion -- roughly a sixfold jump from its valuation today. That would almost certainly be a market-beating performance.
The challenges Dutch Bros must overcome
I don't believe the next decade will be as easy for Dutch Bros as its previous decade. Other small regional drive-thru coffee chains have growth aspirations, too. Moreover, even big players are developing growth plans of their own.
For example, Starbucks intends to grow from around 16,300 locations in the U.S. to about 20,000 in the coming years. A big part of its plan includes opening drive-thru-only locations, to add convenience for its customers. This is something to watch, considering Starbucks has 75 million loyalty members worldwide.
Additionally, investors can't overlook McDonald's and its new concept CosMc's. This recently launched concept is a beverage-centric chain optimized for drive-thru. If tests are successful, it could expand quickly because McDonald's uses a franchised model and has existing relationships with franchisees. In short order, eager McDonald's franchisees could snap up territories and start building out CosMc's.
Starbucks and McDonald's don't necessarily threaten Dutch Bros' existing business today. But they could make it harder to expand at a fast pace a few years down the road.
It's not an insurmountable challenge. And Dutch Bros has fans and strengths of its own. Investors just can't take its future success for granted.
The verdict on Dutch Bros
Dutch Bros stock trades at almost its lowest valuation since going public, which has lowered its risk profile. The company is in a strong financial position and has big growth plans, which should boost the stock price over time.
I'm not convinced Dutch Bros is necessarily a market-beating investment idea over the long haul -- competition may make it harder to earn the level of profitability it's hoping for. But the stock price should be higher in 10 years, and the downside risk could be limited.
That's not a terrible proposition for those who have been intently watching Dutch Bros stock from the sidelines. Now could be a chance to take a smaller position, understanding the competitive risks ahead. And investors could add to their positions as the stock either gets cheaper or better demonstrates its ability to outcompete its deeper-pocketed rivals in coming years.
Should you invest $1,000 in Dutch Bros right now?
Before you buy stock in Dutch Bros, 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 Dutch Bros wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
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*Stock Advisor returns as of December 11, 2023
Jon Quast has positions in Starbucks. The Motley Fool has positions in and recommends Starbucks. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Using this long-term goal as a guide and looking at current business trends, investors can try to approximate where Dutch Bros stock will be in 10 years. I'm not convinced Dutch Bros is necessarily a market-beating investment idea over the long haul -- competition may make it harder to earn the level of profitability it's hoping for. And investors could add to their positions as the stock either gets cheaper or better demonstrates its ability to outcompete its deeper-pocketed rivals in coming years. | Starbucks and McDonald's don't necessarily threaten Dutch Bros' existing business today. The verdict on Dutch Bros Dutch Bros stock trades at almost its lowest valuation since going public, which has lowered its risk profile. Before you buy stock in Dutch Bros, 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 Dutch Bros wasn't one of them. | The challenges Dutch Bros must overcome I don't believe the next decade will be as easy for Dutch Bros as its previous decade. The verdict on Dutch Bros Dutch Bros stock trades at almost its lowest valuation since going public, which has lowered its risk profile. Before you buy stock in Dutch Bros, 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 Dutch Bros wasn't one of them. | What the next decade could look like In 2022, Dutch Bros opened 133 new locations. The company is in a strong financial position and has big growth plans, which should boost the stock price over time. Before you buy stock in Dutch Bros, 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 Dutch Bros wasn't one of them. | 3ff91781-2448-47aa-baf9-28ce7151a708 |
710522.0 | 2023-12-16 18:00:00 UTC | FedEx dives after quarterly profit miss, annual revenue forecast cut | DCOMP | https://www.nasdaq.com/articles/fedex-dives-after-quarterly-profit-miss-annual-revenue-forecast-cut | nan | nan | Dec 20 (Reuters) - Shares of FedEx FDX.N fell about 10% in trading before the bell on Wednesday, a day after the parcel delivery firm missed expectations for quarterly profit and trimmed its revenue forecast for the fiscal year.
Volatile macroeconomic conditions and lower demand from the U.S. Postal Service, which has been shifting more packages from higher-margin air services to more economical ground services, dealt a blow to the company's largest Express business.
Operating income for its air-based Express unit dropped 60% during the quarter as a result.
"Although, FedEx maintains a strong service commitment to the USPS, they are losing money in the business. We expect them to walk away from the business next year when the contract expires," TD Cowen analyst Helane Becker said in a research note.
However, FedEx is currently negotiating a renewal of the post office contract with the goal of improving profitability from the business, the company said in an earnings conference call.
The global parcel giant's adjusted earnings for the quarter that ended Nov. 30 jumped 23%, to $1.01 billion, or $3.99 per diluted share. But the result fell 19 cents per share short of analysts' average estimate, according to LSEG data.
The company also expects a low-single-digit percentage decline in its annual revenue from last year, compared with its prior forecast of roughly flat results.
"We believe new investor interest in the parcel group will remain muted, especially if recent volume weakness persists and rekindles concerns of price competition," J.P.Morgan analyst Brian Ossenbeck said in a research note.
"We expect FDX will give back the majority of its (share)gains it racked up this month," Ossenbeck said. As of Tuesday's close, FedEx shares had risen 6% in December.
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. | Dec 20 (Reuters) - Shares of FedEx FDX.N fell about 10% in trading before the bell on Wednesday, a day after the parcel delivery firm missed expectations for quarterly profit and trimmed its revenue forecast for the fiscal year. However, FedEx is currently negotiating a renewal of the post office contract with the goal of improving profitability from the business, the company said in an earnings conference call. "We believe new investor interest in the parcel group will remain muted, especially if recent volume weakness persists and rekindles concerns of price competition," J.P.Morgan analyst Brian Ossenbeck said in a research note. | Dec 20 (Reuters) - Shares of FedEx FDX.N fell about 10% in trading before the bell on Wednesday, a day after the parcel delivery firm missed expectations for quarterly profit and trimmed its revenue forecast for the fiscal year. But the result fell 19 cents per share short of analysts' average estimate, according to LSEG data. Shares of FedEx trade about 14 times forward profit estimates, below rival UPS's UPS.N 16.7 multiple. | Dec 20 (Reuters) - Shares of FedEx FDX.N fell about 10% in trading before the bell on Wednesday, a day after the parcel delivery firm missed expectations for quarterly profit and trimmed its revenue forecast for the fiscal year. Postal Service, which has been shifting more packages from higher-margin air services to more economical ground services, dealt a blow to the company's largest Express business. 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. | Dec 20 (Reuters) - Shares of FedEx FDX.N fell about 10% in trading before the bell on Wednesday, a day after the parcel delivery firm missed expectations for quarterly profit and trimmed its revenue forecast for the fiscal year. Volatile macroeconomic conditions and lower demand from the U.S. Shares of FedEx trade about 14 times forward profit estimates, below rival UPS's UPS.N 16.7 multiple. | b489bdea-35ef-47b8-8611-1dcde5d9e719 |
710523.0 | 2023-12-16 18:00:00 UTC | With a Major Headwind Shifting Directions, These 2 Dividend Stocks Could Soar in 2024 | DCOMP | https://www.nasdaq.com/articles/with-a-major-headwind-shifting-directions-these-2-dividend-stocks-could-soar-in-2024 | nan | nan | Soaring interest rates have been a major headwind for NextEra Energy (NYSE: NEE) and affiliate NextEra Energy Partners (NYSE: NEP). Higher rates have made it more expensive for companies to borrow money. In addition, rising rates weighed on the valuations of dividend stocks to drive up their yields and compensate investors for their higher risk profiles compared to alternatives like bonds.
Shares of NextEra have plunged more than 27%, while units of the partnership have cratered by nearly 60%. Those declines have driven up their dividend yields. (NextEra yields more than 3%, while the partnership's payout is over 11.5%.)
However, interest rates could go from a headwind to a tailwind next year if the Federal Reserve cuts them, as many anticipate. That could lift the weight on their shares, causing them to soar in 2024.
Adjusting to the situation
This past year has been a challenging one for NextEra Energy and its partnership. The utility had used that entity as a funding vehicle. It would sell operating renewable energy assets to the partnership, giving it cash to recycle into its massive backlog of development projects. Meanwhile, those deals provided NextEra Energy Partners with the recurring cash flow to grow its dividend.
However, surging interest rates and the declining value of the partnership's unit price drove up its cost of capital, making it difficult to finance acquisitions. They also made it more expensive for the company to roll over maturing debt. For example, NextEra Energy Partners recently priced $750 million of 7.25% notes due in 2029 to refinance notes that mature next year. The interest rate on those maturing notes is 4.25%. That's a meaningful interest expense increase.
NextEra Energy Partners' surging capital costs forced it to slam the brakes on its growth plan. The company cut its dividend growth outlook from 12%-15% annually through 2026 to 5%-8%, with a target of 6%. The company also shifted its growth strategy from acquiring assets from NextEra Energy in drop-down transactions to internally funding organic expansion projects, like repowering existing wind farms.
The issues facing its affiliate also forced NextEra Energy to shift gears. It has pivoted its capital recycling strategy to external sales. In September, the company agreed to sell Florida City Gas to Chesapeake Utilities for $923 million in cash. It will likely need to look externally to recycle more capital next year, since NextEra Energy Partners doesn't expect to need to make an acquisition to achieve 6% dividend growth in 2024.
From a headwind to a tailwind
While rising interest rates impacted NextEra's strategy over the past year, that headwind should start to fade in 2024. The Federal Reserve has paused increasing the federal funds rate after hiking it 11 times over the past two years to its current target range of 5.25%-5.5%, the highest level in over two decades.
While the Fed had hinted in the past that it could push rates even higher, it changed its tune at the last meeting, instead indicating that it will likely cut rates three times next year, by 0.25% each time. Further, the Fed's most recent forecast suggests it would cut rates four more times in 2025 and three more times in 2026, eventually getting rates down closer to 2%.
Falling interest rates will be a major catalyst for NextEra Energy and its partnership. It will reduce the interest rate on their floating rate debt while making it less costly for them to roll over maturing debt. In addition, falling rates will push up the values of income-producing investments as yields adjust to the current rate environment.
We've already seen that in the stock prices of NextEra Energy and NextEra Energy Partners, which have rallied off their bottoms. NextEra is up 6% in the past month, while the partnership has surged almost 28%.
Those rate-powered rallies could continue in 2024. In addition, their stocks should get a lift as investors grow more confident that the companies can achieve their long-term growth plans.
The potential to produce powerful total returns in 2024
NextEra Energy and NextEra Energy Partners tumbled this year as rising rates weighed on their values. However, that headwind should fade next year as rates appear poised to start falling. That should lift the weight on their stock prices, which could soar.
Add in their higher-yielding dividends, and they could produce powerful total returns in the coming year. That makes them look like compelling bounce-back candidates to buy now.
Should you invest $1,000 in NextEra Energy right now?
Before you buy stock in NextEra Energy, 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 NextEra Energy wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
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*Stock Advisor returns as of December 18, 2023
Matthew DiLallo has positions in NextEra Energy and NextEra Energy Partners. The Motley Fool has positions in and recommends NextEra Energy. 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 addition, rising rates weighed on the valuations of dividend stocks to drive up their yields and compensate investors for their higher risk profiles compared to alternatives like bonds. However, surging interest rates and the declining value of the partnership's unit price drove up its cost of capital, making it difficult to finance acquisitions. The company also shifted its growth strategy from acquiring assets from NextEra Energy in drop-down transactions to internally funding organic expansion projects, like repowering existing wind farms. | Soaring interest rates have been a major headwind for NextEra Energy (NYSE: NEE) and affiliate NextEra Energy Partners (NYSE: NEP). NextEra Energy Partners' surging capital costs forced it to slam the brakes on its growth plan. The potential to produce powerful total returns in 2024 NextEra Energy and NextEra Energy Partners tumbled this year as rising rates weighed on their values. | Soaring interest rates have been a major headwind for NextEra Energy (NYSE: NEE) and affiliate NextEra Energy Partners (NYSE: NEP). The potential to produce powerful total returns in 2024 NextEra Energy and NextEra Energy Partners tumbled this year as rising rates weighed on their values. Before you buy stock in NextEra Energy, 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 NextEra Energy wasn't one of them. | Falling interest rates will be a major catalyst for NextEra Energy and its partnership. We've already seen that in the stock prices of NextEra Energy and NextEra Energy Partners, which have rallied off their bottoms. Before you buy stock in NextEra Energy, 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 NextEra Energy wasn't one of them. | 1bd11c4f-55ed-4d9e-9828-cc4a7256e4f1 |
710524.0 | 2023-12-16 18:00:00 UTC | Meet the Stock That Just Paid Warren Buffett $184 Million in Quarterly Dividends, and Another That's About to Pay Him $248 Million | DCOMP | https://www.nasdaq.com/articles/meet-the-stock-that-just-paid-warren-buffett-%24184-million-in-quarterly-dividends-and | nan | nan | Warren Buffett makes money without even trying. How? His Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) portfolio is loaded with dividend stocks.
Some of Berkshire's holdings don't generate an enormous amount of dividend income, but a few definitely do. Meet the stock that just paid Warren Buffett $184 million in quarterly dividends, and another that's about to pay him nearly $248 million.
Have a Coke and a smile
Buffett has been a big fan of Coca-Cola (NYSE: KO) for a long time. He first led Berkshire to initiate a position in the food and beverage giant in 1988. The Oracle of Omaha revealed in the past that he drinks five cans of either Diet Coke or Cherry Coke each day. He told CNBC's Becky Quick earlier this year, "I'm happier when I'm eating hot fudge sundaes or drinking Coke."
The legendary investor has another reason to be happy with Coke, though: Berkshire Hathaway just received a huge payment from the company.
Coca-Cola paid its fourth-quarter dividend of $0.46 per share on Dec. 15. Since Berkshire owns 400 million shares, it made a hefty $184 million. That amounts to $736 million on an annualized basis.
Buffett can probably look forward to making even more money from Coca-Cola next year. The company has increased its dividend for 61 consecutive years, making it a solid member of the elite group of stocks known as Dividend Kings.
Buffett can bank on it
Bank stocks have been a longtime favorite for Buffett as well. His top bank stock these days is Bank of America (NYSE: BAC), which ranks as the second-largest position in Berkshire Hathaway's portfolio.
If you think that Berkshire is hauling in a lot of money from its Coca-Cola dividends, you'll probably be blown away by how much it will soon make from Bank of America. The big bank is scheduled to pay its fourth-quarter dividend on Dec. 29, to all shareholders of record as of Dec. 1.
BofA's dividend payment will be $0.24 per share. Multiplying this amount times Berkshire's 1,032,852,006 shares owned at the end of the third quarter of 2023 comes to a lofty total of nearly $248 million. On an annualized basis, that translates to over $991 million.
Buffett can probably count on increased dividend payouts from Bank of America next year as well. Although the company's track record isn't as impressive as Coca-Cola's, it has increased the dividend for 10 consecutive years.
More than just dividends
Granted, neither Coke nor BofA have been big winners this year. The shift in investors' focus to growth stocks didn't work in Coca-Cola's favor. Bank of America was negatively impacted by the banking crisis earlier in 2023. However, I think that both stocks could perform well in the new year.
The so-called "Magnificent Seven" stocks have largely powered the stock market's gains this year. But if a new bull market for the S&P 500 becomes more broad based, the rising tide should lift if not all boats, most of them. I suspect that Coca-Cola and Bank of America will be among the beneficiaries.
I'm especially bullish about Bank of America over the next few years. The stock is a bargain, with shares trading at a little over 10x expected earnings. BofA continues to innovate and should successfully navigate the technology changes in the banking industry.
Berkshire Hathaway (and by extension Buffett) will almost certainly continue to receive attractive dividends from Coca-Cola and Bank of America for a long time to come. These stocks could provide more than just dividends, too.
Should you invest $1,000 in Bank of America right now?
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Bank of America is an advertising partner of The Ascent, a Motley Fool company. Keith Speights has positions in Bank of America and Berkshire Hathaway. The Motley Fool has positions in and recommends Bank of America and Berkshire Hathaway. The Motley Fool recommends the following options: long January 2024 $47.50 calls on Coca-Cola. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | He told CNBC's Becky Quick earlier this year, "I'm happier when I'm eating hot fudge sundaes or drinking Coke." Multiplying this amount times Berkshire's 1,032,852,006 shares owned at the end of the third quarter of 2023 comes to a lofty total of nearly $248 million. Berkshire Hathaway (and by extension Buffett) will almost certainly continue to receive attractive dividends from Coca-Cola and Bank of America for a long time to come. | Multiplying this amount times Berkshire's 1,032,852,006 shares owned at the end of the third quarter of 2023 comes to a lofty total of nearly $248 million. Berkshire Hathaway (and by extension Buffett) will almost certainly continue to receive attractive dividends from Coca-Cola and Bank of America for a long time to come. Before you buy stock in Bank of America, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Bank of America wasn't one of them. | His top bank stock these days is Bank of America (NYSE: BAC), which ranks as the second-largest position in Berkshire Hathaway's portfolio. Before you buy stock in Bank of America, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Bank of America wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 18, 2023 Bank of America is an advertising partner of The Ascent, a Motley Fool company. | Berkshire Hathaway (and by extension Buffett) will almost certainly continue to receive attractive dividends from Coca-Cola and Bank of America for a long time to come. Before you buy stock in Bank of America, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Bank of America wasn't one of them. The Motley Fool has positions in and recommends Bank of America and Berkshire Hathaway. | 6d59e1f6-ead0-4ccd-a5aa-948fa50ed3b9 |
710525.0 | 2023-12-16 18:00:00 UTC | 2 Growth Stocks Down 67% and 91% That are Excellent Buys for December | DCOMP | https://www.nasdaq.com/articles/2-growth-stocks-down-67-and-91-that-are-excellent-buys-for-december | nan | nan | Spurred by market-moving trends, including the rise of artificial intelligence (AI), 2023 has been a great year for growth stocks. Explosive gains for companies including Nvidia, Microsoft, and Apple helped to push the S&P 500 index up roughly 24% across this year's trading. Meanwhile, the even more growth-oriented Nasdaq Composite index has surged 43% across the stretch.
Of course, the explosive gains for growth stocks this year also have to be viewed in the context of big sell-offs that took place in 2022. And while some large tech companies have come roaring back to reach new valuation highs this year, the market-shaping recovery has been unevenly distributed. Some fantastic companies with explosive potential still trade at big discounts compared to previous highs, and investors still have plenty of opportunities to capitalize.
If you're looking for top growth stocks still trading at levels that leave room for explosive returns, read on to see why two Motley Fool contributors believe you should buy these stocks before 2023 falls off the calendar.
This beaten-down growth stock could soar
Keith Noonan: Roblox (NYSE: RBLX) is a leading online social entertainment platform. While the company's service is often thought of as a video game platform, it actually hosts an incredible breadth of games and social experiences. In modern terms, Roblox is better described as a metaverse -- and it's one of the most successful takes on creating a thriving online virtual world so far.
But while Roblox's long-term growth trajectory and recent business performance have been quite impressive, the company's stock performance is best described as volatile. When the company went public in March 2021, it was still seeing elevated engagement levels related to social-distancing policies stemming from the coronavirus pandemic. The Federal Reserve had also yet to kick off its accelerated program of interest rate hikes to combat inflation, and the market's appetite for growth stocks was still relatively high.
Business and market conditions changed quickly in 2022, and Roblox got crushed. The company went through a period in which engagement and sales growth were hampered by the easing of pandemic-related conditions, and investors quickly fell out of love with the stock.
But even though the business has returned to setting new engagement records and posting strong sales and bookings growth, the market remained lukewarm on Roblox. With the company's share price still down 67% from its high, I think that investors can score wins by capitalizing on the disparity between the metaverse leader's stock moves and its recent business performance and long-term growth potential.
With revenue surging 38% year over year to reach $713.2 million in the third quarter, concerns about Roblox being a flash in the pan can be safely set aside. Even better, the company is still in the early stages of rolling out its digital advertising and generative artificial intelligence (AI) initiatives.
Roblox still has massive growth opportunities ahead, and investors could score wins by building a position in the stock while it's still down big from its previous peak.
Fearing artificial intelligence, Fiverr is selling cheaply.
Parkev Tatevosian: Fiverr International's (NYSE: FVRR) stock price is down a whopping 91% off its high water mark reached in 2021. While the company faces some challenges, notably the impact of AI on its business, I think the sell-off is overdone. Meanwhile, Fiverr continues to demonstrate excellent revenue growth and it's making progress on profitability.
Indeed, from 2017 to 2022, Fiverr's revenue expanded from $52 million to $337 million. The company operates a platform that brings together buyers and sellers of services. For instance, someone who wants to hire an individual to make YouTube thumbnails can find plenty of choices on the Fiverr platform.
For its services, Fiverr takes a fee from each transaction occurring on its platform. That has proven to be a scalable business model, as Fiverr's operating income has improved from negative $8 million to negative $2 million from the June-ended quarter in 2021 to the September-ended quarter in 2023.
The business model is built to scale efficiently, as Fiverr does not need major capital investments to grow the business. The primary factor for growth will continue to be Fiverr to build its ecosystem, attracting more buyers and sellers to sign up.
FVRR P/E Ratio (Forward 1y) data by YCharts.
Fiverr stock trades at a forward price-to-earnings ratio of 12, a relatively cheap valuation for a company with its growth characteristics. Of course, there is reason for the discount.
AI threatens to replace some of the services offered on the Fiverr platform. Rather than hiring someone on Fiverr to complete a service, businesses can use AI to complete the task. That might be true to some level, but I think there is an overreaction to the risk, and Fiverr stock could be an excellent growth stock to buy for long-term investors.
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Keith Noonan has positions in Fiverr International. Parkev Tatevosian, CFA has positions in Apple. The Motley Fool has positions in and recommends Apple, Fiverr International, Microsoft, Nvidia, and Roblox. 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 Federal Reserve had also yet to kick off its accelerated program of interest rate hikes to combat inflation, and the market's appetite for growth stocks was still relatively high. The company went through a period in which engagement and sales growth were hampered by the easing of pandemic-related conditions, and investors quickly fell out of love with the stock. With the company's share price still down 67% from its high, I think that investors can score wins by capitalizing on the disparity between the metaverse leader's stock moves and its recent business performance and long-term growth potential. | Some fantastic companies with explosive potential still trade at big discounts compared to previous highs, and investors still have plenty of opportunities to capitalize. Parkev Tatevosian: Fiverr International's (NYSE: FVRR) stock price is down a whopping 91% off its high water mark reached in 2021. See the 10 stocks *Stock Advisor returns as of December 18, 2023 Keith Noonan has positions in Fiverr International. | With the company's share price still down 67% from its high, I think that investors can score wins by capitalizing on the disparity between the metaverse leader's stock moves and its recent business performance and long-term growth potential. Fiverr stock trades at a forward price-to-earnings ratio of 12, a relatively cheap valuation for a company with its growth characteristics. That might be true to some level, but I think there is an overreaction to the risk, and Fiverr stock could be an excellent growth stock to buy for long-term investors. | Of course, the explosive gains for growth stocks this year also have to be viewed in the context of big sell-offs that took place in 2022. With revenue surging 38% year over year to reach $713.2 million in the third quarter, concerns about Roblox being a flash in the pan can be safely set aside. The Motley Fool has positions in and recommends Apple, Fiverr International, Microsoft, Nvidia, and Roblox. | 699369ab-007c-4faf-a875-3338a7b3d497 |
710526.0 | 2023-12-16 18:00:00 UTC | EU targets Pornhub, XVideos under new content rules | DCOMP | https://www.nasdaq.com/articles/eu-targets-pornhub-xvideos-under-new-content-rules | nan | nan | Adds details, comment from Pornhub, Commission official; paragraphs 3-9
STOCKHOLM, Dec 20 (Reuters) - The European Union added three adult content companies - Pornhub, Stripchat and XVideos - to its list of firms subject to stringent regulations under new online content rules, the bloc's industry chief Thierry Breton said on Wednesday.
The new rules, known as the Digital Services Act (DSA), require companies to conduct risk management, undergo external and independent auditing, and share data with authorities and researchers.
In April the EU designated five Alphabet GOOGL.O subsidiaries, two Meta Platforms META.O units, two Microsoft MSFT.O businesses, X and Alibaba's 9988.HK AliExpress among 19 companies under the rules.
Such designated companies will have to do more to tackle disinformation, give more protection and choice to users and ensure stronger protection for children or risk fines of as much as 6% of their global turnover.
"Pornhub, Stripchat and XVideos meet the user thresholds to fall under stricter #DSA obligations," Breton said. "Creating a safer online environment for our children is an enforcement priority under the DSA."
In a statement, Canada-based Pornhub said it had 33 million average monthly recipients of the service in the European Union by July 31, calculated over the past six months.
DSA covers companies with more than 45 million users as very large online platforms.
The designation can be based not only on the user numbers reported by the company, but also on information from third parties or alternative sources, a senior Commission official said.
The Commission can make the designation if it has reasonable certainty that such companies meet the threshold, added the official, who spoke on condition of anonymity.
(Reporting by Supantha Mukherjee in Stockholm; Editing by Andrew Heavens and Clarence Fernandez)
((supantha.mukherjee@thomsonreuters.com; +46 70 721 1004; Reuters Messaging: supantha.mukherjee.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 details, comment from Pornhub, Commission official; paragraphs 3-9 STOCKHOLM, Dec 20 (Reuters) - The European Union added three adult content companies - Pornhub, Stripchat and XVideos - to its list of firms subject to stringent regulations under new online content rules, the bloc's industry chief Thierry Breton said on Wednesday. The new rules, known as the Digital Services Act (DSA), require companies to conduct risk management, undergo external and independent auditing, and share data with authorities and researchers. In April the EU designated five Alphabet GOOGL.O subsidiaries, two Meta Platforms META.O units, two Microsoft MSFT.O businesses, X and Alibaba's 9988.HK AliExpress among 19 companies under the rules. | Adds details, comment from Pornhub, Commission official; paragraphs 3-9 STOCKHOLM, Dec 20 (Reuters) - The European Union added three adult content companies - Pornhub, Stripchat and XVideos - to its list of firms subject to stringent regulations under new online content rules, the bloc's industry chief Thierry Breton said on Wednesday. "Pornhub, Stripchat and XVideos meet the user thresholds to fall under stricter #DSA obligations," Breton said. The Commission can make the designation if it has reasonable certainty that such companies meet the threshold, added the official, who spoke on condition of anonymity. | Adds details, comment from Pornhub, Commission official; paragraphs 3-9 STOCKHOLM, Dec 20 (Reuters) - The European Union added three adult content companies - Pornhub, Stripchat and XVideos - to its list of firms subject to stringent regulations under new online content rules, the bloc's industry chief Thierry Breton said on Wednesday. The new rules, known as the Digital Services Act (DSA), require companies to conduct risk management, undergo external and independent auditing, and share data with authorities and researchers. Such designated companies will have to do more to tackle disinformation, give more protection and choice to users and ensure stronger protection for children or risk fines of as much as 6% of their global turnover. | The new rules, known as the Digital Services Act (DSA), require companies to conduct risk management, undergo external and independent auditing, and share data with authorities and researchers. "Pornhub, Stripchat and XVideos meet the user thresholds to fall under stricter #DSA obligations," Breton said. The Commission can make the designation if it has reasonable certainty that such companies meet the threshold, added the official, who spoke on condition of anonymity. | 5ab84796-2260-4421-a479-6828bcb16b17 |
710527.0 | 2023-12-16 18:00:00 UTC | The Zacks Analyst Blog Highlights NVIDIA, Coinbase Global, Block, Interactive Brokers Group and PayPal Holdings | DCOMP | https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights-nvidia-coinbase-global-block-interactive-brokers-group | nan | nan | For Immediate Release
Chicago, IL – December 20, 2023 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: NVIDIA Corp. NVDA, Coinbase Global, Inc. COIN, Block Inc. SQ, Interactive Brokers Group, Inc. IBKR and PayPal Holdings, Inc. PYPL.
Here are highlights from Tuesday’s Analyst Blog:
Bitcoin to Shine in 2024: Are These 5 Stocks on Your Radar?
The cryptocurrency market has had an impressive 2023 after rebounding from last year’s lows. The recent rally amid renewed optimism hints at a promising 2024 for the space. Bitcoin (BTC), the world’s most prominent and popular cryptocurrency, has particularly put up a great show this year.
Earlier this month, Bitcoin briefly rallied above $44,000 and has been hovering around $41,500 since last week. Other major cryptocurrencies like Ethereum (ETH), Cardano (ADA), Dogecoin (DOGE) and BNB (BNB) have also seen an upward trend.
Year to date, Bitcoin, Ethereum, Cardano and Dogecoin have rallied 150.2%, 80.4%, 130.8% and 27.1%, respectively.
Last year, the cryptocurrency market suffered a series of setbacks, largely attributed to a couple of unfortunate incidents, notably the FTX bankruptcy resulting from a major fraud and the crash of Tera Luna.
This year’s rally has been driven by multiple positive news despite the Federal Reserve’s aggressive monetary policy. The recent rally has been sparked by renewed optimism as the Federal Reserve gears up to end its monetary tightening policy.
An increase in interest rates usually has a detrimental effect on growth-oriented sectors, which include technology, consumer discretionary industries and cryptocurrencies.
Also, market participants are confident about an imminent approval from the Securities and Exchange Commission (SEC) for a Bitcoin exchange-traded fund (ETF). This potential approval is expected to have a significant impact on boosting the cryptocurrency market.
Moreover, the Federal Reserve refrained from hiking interest rates for the third straight time in its December FOMC meeting. The Fed left its benchmark policy rates unchanged in the current range of 5.25-5.50% after hiking interest rates by 525 points since March 2022.
The Federal Reserve also said that it will closely monitor inflation data and try not to keep interest rates higher for a longer period. The central bank is now expected to start cutting rates in 2024, with officials expecting at least three 25-basis point rate cuts next year.
A rise in interest rates typically has an adverse impact on growth-oriented sectors, encompassing technology, consumer discretionary industries and cryptocurrencies. Hence, rate cuts in the near term bode well for the cryptocurrency market.
Stocks to Watch
NVIDIA Corp. is a major player in the semiconductor industry and has been one of the standout success stories of 2023. As a leading designer of graphic processing units (GPUs), the value of the NVDA stock tends to surge in a thriving crypto market. This is primarily due to the crucial role that GPUs play in data centers, artificial intelligence, and the mining or production of cryptocurrencies.
NVIDIA’s expected earnings growth rate for next year is 61.5%. The Zacks Consensus Estimate for current-year earnings has improved 14.4% over the last 60 days. Currently, NVIDIA has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
Coinbase Global, Inc. offers financial infrastructure and technology to support the global cryptocurrency economy. COIN provides a main financial account for consumers in the crypto space, a marketplace with liquidity for institutional crypto asset transactions, and technology and services for developers to build crypto-based applications and accept cryptocurrencies securely as payment.
Coinbase Global’s expected earnings growth rate for next year is 30.5%. The Zacks Consensus Estimate for current-year earnings has improved 45.7% over the last 60 days. Coinbase currently carries a Zacks Rank #2.
Block Inc. is an online digital and mobile payment platform for consumers and merchants and is the parent company of Square and Cash App. The users of Cash App can buy, sell, send and receive Bitcoin. In addition, SQ’s decentralized tbd platform allows developers to build decentralized finance applications to run on programmable blockchains. SQ is also one of the largest Bitcoin investors.
Block has an expected earnings growth rate of 53.4% for next year. The Zacks Consensus Estimate for current-year earnings has improved 17.2% over the last 60 days. SQ currently carries a Zacks Rank #2
Interactive Brokers Group, Inc. is a global automated electronic broker. IBKR executes, processes and trades in cryptocurrencies. IBKR’s commodities futures trading desk also offers customers a chance to trade cryptocurrency futures.
Interactive Brokers Group has an expected earnings growth rate of 41.7% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 1.1% over the last 60 days. IBKR currently has a Zacks Rank #3 (Hold).
PayPal Holdings, Inc. provides digital wallet services that enable users to purchase, transfer, and sell various cryptocurrencies, such as Bitcoin, Ethereum, Bitcoin Cash and Litecoin. Through PYPL, users can use cryptocurrencies to pay for goods and services from online merchants. Additionally, PayPal’s mobile wallet platform, Venmo, also allows users to engage in cryptocurrency buying and selling activities.
PayPal Holdings’ expected earnings growth rate for the current year is 11.5%. The Zacks Consensus Estimate for current-year earnings has improved 0.6% over the last 60 days. PYPL currently has a Zacks Rank #3.
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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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Last year, the cryptocurrency market suffered a series of setbacks, largely attributed to a couple of unfortunate incidents, notably the FTX bankruptcy resulting from a major fraud and the crash of Tera Luna. A rise in interest rates typically has an adverse impact on growth-oriented sectors, encompassing technology, consumer discretionary industries and cryptocurrencies. 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. | COIN, Block Inc. SQ, Interactive Brokers Group, Inc. IBKR and PayPal Holdings, Inc. PYPL. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here Coinbase Global, Inc. offers financial infrastructure and technology to support the global cryptocurrency economy. Click to get this free report Interactive Brokers Group, Inc. (IBKR) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report Block, Inc. (SQ) : Free Stock Analysis Report Coinbase Global, Inc. (COIN) : Free Stock Analysis Report To read this article on Zacks.com click here. | You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here Coinbase Global, Inc. offers financial infrastructure and technology to support the global cryptocurrency economy. Be First to New Top 10 Stocks >> Want the latest recommendations from Zacks Investment Research? Click to get this free report Interactive Brokers Group, Inc. (IBKR) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report Block, Inc. (SQ) : Free Stock Analysis Report Coinbase Global, Inc. (COIN) : Free Stock Analysis Report To read this article on Zacks.com click here. | Stocks recently featured in the blog include: NVIDIA Corp. NVDA, Coinbase Global, Inc. Year to date, Bitcoin, Ethereum, Cardano and Dogecoin have rallied 150.2%, 80.4%, 130.8% and 27.1%, respectively. 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%. | 2fad1a6b-e7cf-41c5-a2b4-2fb629f6410b |
710528.0 | 2023-12-16 18:00:00 UTC | The Nasdaq Is About to Do Something It Has Only Done 4 Times Since 1986. History Says the Stock Market Will Do This Next. | DCOMP | https://www.nasdaq.com/articles/the-nasdaq-is-about-to-do-something-it-has-only-done-4-times-since-1986.-history-says-the | nan | nan | The Nasdaq-100 is having an incredible year. It has delivered a gain of 51.9% so far, marking a sharp reversal from 2022 when it plunged into bear territory.
But a gain of more than 50% in a single year is incredibly rare. In fact, it has only happened four times since the Nasdaq-100 was established in 1986:
In 1991, the index rose 64.9%
In 1998, it jumped 85.3%
In 1999, it soared 101.9%
In 2009, it gained 53.5%
The back-to-back monster gains in 1998 and 1999 preceded the dotcom tech crash, which led to three straight years of stock market declines from 2000 to 2002. That era was littered with internet companies that had very little financial success supporting their sky-high valuations, which is very different from the environment we are in today.
I would argue 2023 is more similar to 1991 and 2009; on all three occasions, the market logged a powerful gain after suffering a steep loss the year before. Assuming the Nasdaq-100 holds its gains for the rest of the year, historical data suggests an incredible chapter might be ahead for the stock market.
Image source: Getty Images.
Economic trends are setting the stage for more stock market gains
The Nasdaq-100 fell 33% in 2022, mainly due to macroeconomic headwinds. Inflation was soaring that year and, to fight it the U.S. Federal Reserve embarked on an incredibly aggressive campaign to hike interest rates. Within the span of 18 months, the Federal Funds Rate soared from 0.25% to 5.50%.
Consumers faced a double-whammy of higher prices at the mall, the grocery store, and the gas station, combined with surging mortgage payments. Those pressures forced investors to temper their growth forecasts for the stock market, which had a particularly negative impact on the technology sector because it tends to trade at a premium valuation.
Slowing down consumer spending was the Fed's goal, and it has managed to cool inflation dramatically so far. In fact, experts are forecasting six interest rate cuts in 2024 because there has been so much progress. That's part of the reason the stock market has rebounded with a vengeance this year.
The Nasdaq-100 might be setting up for a multi-year winning streak
Let's circle back to the data from 1991 and 2009. The Nasdaq-100 logged a gain of more than 50% in each of those years, and on both occasions, it sparked the beginning of a nine-year winning streak!
That's right, the periods from 1991 to 1999 and 2009 to 2017 are tied for the longest winning streak in the history of the Nasdaq-100. But that isn't the only indicator pointing to several years' worth of gains from here.
Years when the Nasdaq-100 bounced back from a singular annual loss (like it has in 2023) marked the beginning of a bull market that has lasted more than six years on average.
This tech trend could fuel the next bull market
The data I've shared above indicates a likelihood of more stock market gains. But historical data alone isn't enough to confirm the market's next move -- that would be too easy. Investors should always expect the unexpected.
With that said, one clear trend is emerging in the technology sector, and investors should consider buying a slice of it no matter what the broader market does.
That trend is artificial intelligence (AI). Chatbots like OpenAI's ChatGPT captured investors' attention this year with their ability to rapidly craft text, images, videos, and even computer code. Companies are already monetizing the technology, and Cathie Wood's Ark Investment Management predicts it could add a whopping $200 trillion to the global economy by 2030.
Nvidia (NASDAQ: NVDA) was one of the best AI plays in 2023; its data center chips are critical to developing, training, and deploying AI models, and it will likely carry its momentum into the years ahead. Microsoft (NASDAQ: MSFT) is another great AI pick going forward. It owns a sizable stake in ChatGPT developer OpenAI, and it has integrated the chatbot across its product portfolio to create new revenue streams.
Some of the world's most prominent investors are scooping up AI stocks, and a multi-year bull market could be the perfect breeding ground for powerful gains.
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Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Microsoft and Nvidia. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Consumers faced a double-whammy of higher prices at the mall, the grocery store, and the gas station, combined with surging mortgage payments. Those pressures forced investors to temper their growth forecasts for the stock market, which had a particularly negative impact on the technology sector because it tends to trade at a premium valuation. Chatbots like OpenAI's ChatGPT captured investors' attention this year with their ability to rapidly craft text, images, videos, and even computer code. | I would argue 2023 is more similar to 1991 and 2009; on all three occasions, the market logged a powerful gain after suffering a steep loss the year before. Assuming the Nasdaq-100 holds its gains for the rest of the year, historical data suggests an incredible chapter might be ahead for the stock market. Some of the world's most prominent investors are scooping up AI stocks, and a multi-year bull market could be the perfect breeding ground for powerful gains. | In fact, it has only happened four times since the Nasdaq-100 was established in 1986: In 1991, the index rose 64.9% In 1998, it jumped 85.3% In 1999, it soared 101.9% In 2009, it gained 53.5% The back-to-back monster gains in 1998 and 1999 preceded the dotcom tech crash, which led to three straight years of stock market declines from 2000 to 2002. Assuming the Nasdaq-100 holds its gains for the rest of the year, historical data suggests an incredible chapter might be ahead for the stock market. This tech trend could fuel the next bull market The data I've shared above indicates a likelihood of more stock market gains. | The Nasdaq-100 might be setting up for a multi-year winning streak Let's circle back to the data from 1991 and 2009. This tech trend could fuel the next bull market The data I've shared above indicates a likelihood of more stock market gains. * They just revealed what they believe are the ten best stocks for investors to buy right now… and Walmart wasn't one of them! | fd60fd6d-7d7f-4808-a072-dc2ec3488f5b |
710529.0 | 2023-12-16 18:00:00 UTC | New Strong Sell Stocks for December 20th | DCOMP | https://www.nasdaq.com/articles/new-strong-sell-stocks-for-december-20th-1 | nan | nan | Here are three stocks added to the Zacks Rank #5 (Strong Sell) List today:
CTS Corporation CTS is a sensor and connectivity manufacturer. The Zacks Consensus Estimate for its current year earnings has been revised 6.4% downward over the last 60 days.
China Mengniu Dairy Company Limited CIADY is an investment holding company. The Zacks Consensus Estimate for its current year earnings has been revised 7% downward over the last 60 days.
Hormel Foods Corporation HRL is a food processing and distribution company. The Zacks Consensus Estimate for its current year earnings has been revised 5.9% downward over the last 60 days.
View the entire Zacks Rank #5 List.
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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CTS Corporation (CTS) : Free Stock Analysis Report
Hormel Foods Corporation (HRL) : Free Stock Analysis Report
China Mengniu Dairy (CIADY) : 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 Zacks Consensus Estimate for its current year earnings has been revised 7% downward over the last 60 days. The Zacks Consensus Estimate for its current year earnings has been revised 5.9% downward over the last 60 days. 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 Consensus Estimate for its current year earnings has been revised 6.4% downward over the last 60 days. China Mengniu Dairy Company Limited CIADY is an investment holding company. Click to get this free report CTS Corporation (CTS) : Free Stock Analysis Report Hormel Foods Corporation (HRL) : Free Stock Analysis Report China Mengniu Dairy (CIADY) : Free Stock Analysis Report To read this article on Zacks.com click here. | Here are three stocks added to the Zacks Rank #5 (Strong Sell) List today: CTS Corporation CTS is a sensor and connectivity manufacturer. The Zacks Consensus Estimate for its current year earnings has been revised 6.4% downward over the last 60 days. Click to get this free report CTS Corporation (CTS) : Free Stock Analysis Report Hormel Foods Corporation (HRL) : Free Stock Analysis Report China Mengniu Dairy (CIADY) : Free Stock Analysis Report To read this article on Zacks.com click here. | China Mengniu Dairy Company Limited CIADY is an investment holding company. 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. | 30bbc9d2-4c1c-4376-b930-1aae21bc81e8 |
710530.0 | 2023-12-16 18:00:00 UTC | Validea Motley Fool Strategy Daily Upgrade Report - 12/20/2023 | DCOMP | https://www.nasdaq.com/articles/validea-motley-fool-strategy-daily-upgrade-report-12-20-2023 | nan | nan | The following are today's upgrades for Validea's Small-Cap Growth Investor model based on the published strategy of Motley Fool. This strategy looks for small cap growth stocks with solid fundamentals and strong price performance.
SUMMIT FINANCIAL GROUP INC (SMMF) is a small-cap value stock in the Money Center Banks industry. The rating according to our strategy based on Motley Fool changed from 53% to 80% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Summit Financial Group, Inc. is a financial holding company. It provides community banking services primarily in the Eastern Panhandle, Southern and North Central regions of West Virginia, the Northern, Shenandoah Valley and Southwestern regions of Virginia and the Central region of Kentucky. It provides its services through its community bank subsidiary, Summit Community Bank (Bank). It provides a range of community banking services, including demand, savings, and time deposits; commercial, real estate and consumer loans; trust and wealth management services, and cash management services. Its loan portfolio in lending categories includes commercial, commercial real estate, construction and land development, residential real estate, consumer and mortgage warehouse lines of credit. It offers a range of financial products and services to small and medium-sized businesses. It also provides automobile loans and recreational vehicle loans. It has over 44 full-service branch locations.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
PROFIT MARGIN: PASS
RELATIVE STRENGTH: FAIL
COMPARE SALES AND EPS GROWTH TO THE SAME PERIOD LAST YEAR: FAIL
INSIDER HOLDINGS: PASS
CASH FLOW FROM OPERATIONS: PASS
PROFIT MARGIN CONSISTENCY: PASS
R&D AS A PERCENTAGE OF SALES: NEUTRAL
CASH AND CASH EQUIVALENTS: FAIL
"THE FOOL RATIO" (P/E TO GROWTH): PASS
AVERAGE SHARES OUTSTANDING: PASS
SALES: PASS
DAILY DOLLAR VOLUME: PASS
PRICE: PASS
INCOME TAX PERCENTAGE: PASS
Detailed Analysis of SUMMIT FINANCIAL GROUP INC
SMMF Guru Analysis
SMMF Fundamental Analysis
ODDITY TECH LTD (ODD) is a mid-cap growth stock in the Personal & Household Prods. industry. The rating according to our strategy based on Motley Fool changed from 73% to 80% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Oddity Tech Ltd is an Israel-based company engaged in the beauty and wellness sector on the molecular level. The Company is operating a tech platform under its own brand on the Internet, whose purpose is to support a portfolio of brands and services connected to the beauty and wellness market and to develop products customized to the wishes of the Company's clients. The Company is using algorithms and machine learning models to match a corresponding physical product. Advanced biological models and machine learning-based tools are used to find new molecules for beauty and wellness purposes. The Company is active in research and development in areas such as data science, machine learning, and computer vision to enhance its products.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
PROFIT MARGIN: PASS
RELATIVE STRENGTH: PASS
COMPARE SALES AND EPS GROWTH TO THE SAME PERIOD LAST YEAR: PASS
INSIDER HOLDINGS: PASS
CASH FLOW FROM OPERATIONS: PASS
PROFIT MARGIN CONSISTENCY: FAIL
R&D AS A PERCENTAGE OF SALES: NEUTRAL
CASH AND CASH EQUIVALENTS: FAIL
INVENTORY TO SALES: PASS
ACCOUNTS RECEIVABLE TO SALES: PASS
LONG TERM DEBT/EQUITY RATIO: PASS
"THE FOOL RATIO" (P/E TO GROWTH): FAIL
AVERAGE SHARES OUTSTANDING: PASS
SALES: PASS
DAILY DOLLAR VOLUME: PASS
PRICE: PASS
INCOME TAX PERCENTAGE: PASS
Detailed Analysis of ODDITY TECH LTD
ODD Guru Analysis
ODD Fundamental Analysis
PLUMAS BANCORP (PLBC) is a small-cap value stock in the Money Center Banks industry. The rating according to our strategy based on Motley Fool changed from 56% to 83% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Plumas Bancorp is a bank holding company, which operates through, Plumas Bank (the Bank). The Bank is a state-chartered bank, which primary service in the Northeastern portion of California, with Lake Tahoe to the south and the Oregon border to the north, and the Northwestern portion of Nevada. The Bank primarily is engaged in providing loans and investment securities. The Banks principal commercial lending services include term real estate, commercial and industrial term loans. In addition, the Bank provides agricultural loans, as well as credit lines. The Banks principal retail lending services include consumer, automobile and home equity loans. The Bank provides land development and construction loans on a limited basis. The Bank has 14 branch networks and 18 automated teller machines. In addition to its branch network, the Bank operates a lending office in Auburn, California and commercial/agricultural lending offices located in Chico, California and Klamath Falls, Oregon.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
PROFIT MARGIN: PASS
RELATIVE STRENGTH: FAIL
COMPARE SALES AND EPS GROWTH TO THE SAME PERIOD LAST YEAR: FAIL
INSIDER HOLDINGS: PASS
CASH FLOW FROM OPERATIONS: PASS
PROFIT MARGIN CONSISTENCY: PASS
R&D AS A PERCENTAGE OF SALES: NEUTRAL
CASH AND CASH EQUIVALENTS: PASS
"THE FOOL RATIO" (P/E TO GROWTH): PASS
AVERAGE SHARES OUTSTANDING: PASS
SALES: PASS
DAILY DOLLAR VOLUME: FAIL
PRICE: PASS
INCOME TAX PERCENTAGE: PASS
Detailed Analysis of PLUMAS BANCORP
PLBC Guru Analysis
PLBC Fundamental Analysis
COSTAMARE INC (CMRE) is a small-cap value stock in the Water Transportation industry. The rating according to our strategy based on Motley Fool changed from 45% to 72% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Costamare Inc is a Monaco-based company that provides containerships and dry bulk vessels for charter. The Company is an international shipping industry that offers a fleet of 73 containerships, with a total capacity of approximately 537,000 TEU (including two vessels that have agreed to sell) and 45 dry bulk vessels with a total capacity of approximately 2,436,000 DWT. Its offers containerships of various sizes (including feeder, panamax and post-panamax containerships) serve short, medium, and long-haul routes on a variety of geographical trades. Its dry bulk vessels transport a broad range of bulks such as iron ore, coal, and grains as well as minor bulks such as bauxite, phosphate fertilizers and steel products. The Company serve its customer's needs worldwide and ensure the safety, reliability, and environmental responsibility of services.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
PROFIT MARGIN: PASS
RELATIVE STRENGTH: FAIL
COMPARE SALES AND EPS GROWTH TO THE SAME PERIOD LAST YEAR: FAIL
INSIDER HOLDINGS: PASS
CASH FLOW FROM OPERATIONS: PASS
PROFIT MARGIN CONSISTENCY: PASS
R&D AS A PERCENTAGE OF SALES: NEUTRAL
CASH AND CASH EQUIVALENTS: PASS
INVENTORY TO SALES: PASS
ACCOUNTS RECEIVABLE TO SALES: PASS
LONG TERM DEBT/EQUITY RATIO: FAIL
"THE FOOL RATIO" (P/E TO GROWTH): PASS
AVERAGE SHARES OUTSTANDING: PASS
SALES: FAIL
DAILY DOLLAR VOLUME: PASS
PRICE: PASS
INCOME TAX PERCENTAGE: FAIL
Detailed Analysis of COSTAMARE INC
CMRE Guru Analysis
CMRE Fundamental Analysis
Motley Fool Portfolio
About Motley Fool: Brothers David and Tom Gardner often wear funny hats in public appearances, but they're hardly fools -- at least not the kind whose advice you should readily dismiss. The Gardners are the founders of the popular Motley Fool web site, which offers frank and often irreverent commentary on investing, the stock market, and personal finance. The Gardners' "Fool" really is a multi-media endeavor, offering not only its web content but also several books written by the brothers, a weekly syndicated newspaper column, and subscription newsletter services.
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The Gardners are the founders of the popular Motley Fool web site, which offers frank and often irreverent commentary on investing, the stock market, and personal finance. The Gardners' "Fool" really is a multi-media endeavor, offering not only its web content but also several books written by the brothers, a weekly syndicated newspaper column, and subscription newsletter services. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. | Detailed Analysis of ODDITY TECH LTD ODD Guru Analysis ODD Fundamental Analysis PLUMAS BANCORP (PLBC) is a small-cap value stock in the Money Center Banks industry. The Banks principal commercial lending services include term real estate, commercial and industrial term loans. Detailed Analysis of COSTAMARE INC CMRE Guru Analysis CMRE Fundamental Analysis Motley Fool Portfolio About Motley Fool: Brothers David and Tom Gardner often wear funny hats in public appearances, but they're hardly fools -- at least not the kind whose advice you should readily dismiss. | It provides a range of community banking services, including demand, savings, and time deposits; commercial, real estate and consumer loans; trust and wealth management services, and cash management services. Detailed Analysis of ODDITY TECH LTD ODD Guru Analysis ODD Fundamental Analysis PLUMAS BANCORP (PLBC) is a small-cap value stock in the Money Center Banks industry. Company Description: Plumas Bancorp is a bank holding company, which operates through, Plumas Bank (the Bank). | It provides its services through its community bank subsidiary, Summit Community Bank (Bank). The Company is operating a tech platform under its own brand on the Internet, whose purpose is to support a portfolio of brands and services connected to the beauty and wellness market and to develop products customized to the wishes of the Company's clients. Detailed Analysis of COSTAMARE INC CMRE Guru Analysis CMRE Fundamental Analysis Motley Fool Portfolio About Motley Fool: Brothers David and Tom Gardner often wear funny hats in public appearances, but they're hardly fools -- at least not the kind whose advice you should readily dismiss. | b71b1033-f9ab-4bb2-9f85-877f9e87dad0 |
710531.0 | 2023-12-16 18:00:00 UTC | The Zacks Analyst Blog Highlights UnitedHealth, Humana, Centene and Molina Healthcare | DCOMP | https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights-unitedhealth-humana-centene-and-molina-healthcare | nan | nan | For Immediate Release
Chicago, IL – December 20, 2023 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: UnitedHealth Group UNH, Humana Inc. HUM, Centene Corp. CNC and Molina Healthcare MOH.
Here are highlights from Tuesday’s Analyst Blog:
4 Health Insurers Likely to Maintain Winning Streak in 2024
The U.S. health insurance industry, referred to as Health Maintenance Organization (HMO), benefited from contract wins, an expanding membership base and an aging U.S. population this year. However, Medicaid eligibility redeterminations, continued staffing shortage and inflationary headwinds put pressure on the performance of the industry players.
The Zacks Medical-HMO industry has gained 14.2% in the past six months compared with the S&P 500’s rally of 6.3%. The Medical sector has declined 4.6% in the same time frame.
The HMO industry participants are direct beneficiaries of growing health insurance premiums. Apart from affordability, health insurers infuse attractive features within their plans to expand their reach across U.S. communities. The lucrativeness of the plans often fetches federal or state contracts for industry players, thereby boosting membership growth.
The industry participants resorted to mergers and acquisitions (M&As) in 2023 to upgrade their capabilities and achieve diversification benefits, which are necessary to gain a competitive edge over industry peers. They also welcomed digitization with open arms and made investments in technology to include telehealth services.
However, the announcement made by a UnitedHealth Group official this June about the resumption of elective procedures acted as a headwind to the price performance of health insurers in the first half of 2023. Soon after the announcement, shares of major health insurers like UNH, Humana Inc., Centene Corp. and Molina Healthcare witnessed a decline.
Though the industry challenges persist, stocks such as UNH, HUM, CNC and MOH seem to have recovered in the second half of 2023.
Outline for 2024
A growing customer base, attributable to lucrative plan features, is expected to drive premiums in 2024, the most significant contributor to a health insurer’s top line. An aging U.S. population is likely to sustain the solid demand for Medicare plans (meant for 65 years and above) in the days ahead.
Owing to the convenience and affordability that telehealth services provide, the related platforms are expected to fetch a steady flow of revenues next year.
An increase in elective surgeries, which had been delayed due to the pandemic, will increase medical costs for health insurers in 2024. Additionally, the HMO industry has been suffering from an acute shortage of nurses and other medical personnel for quite some time. This can dampen a hospital’s ability to deliver quality care services to health insurers’ plan members and adversely impact their customer base in the days ahead.
The commencement of the Medicaid redetermination process from Apr 1, 2023 has been putting pressure on commercial enrollment growth and the trend is likely to continue in 2024 as well. Molina Healthcare expects to lose around 60% of the 800,000 Medicaid members it gained since the beginning of the pandemic. Nevertheless, a well-diversified portfolio should enable health insurers to cope with the loss of membership.
4 Stocks to Watch
Here, we have picked four HMO stocks that carry either a Zacks Rank #2 (Buy) or a Zacks Rank #3 (Hold) and have the potential to retain their purple patch going forward. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
UnitedHealth Group: Headquartered in Minnesota, this health insurer is likely to benefit from solid contributions from its UnitedHealthcare and Optum businesses in 2024. The UnitedHealthcare unit devises lucrative Medicare and Medicaid plans and upgrades them from time to time. Management estimates overall revenues to be within $400-$403 billion in 2024. A strong financial position provides a cushion for UNH to pursue an active M&A strategy.
UnitedHealth Group’s earnings surpassed estimates in each of the last four quarters, the average surprise being 2.74%. The Zacks Consensus Estimate for UNH’s 2024 earnings is pegged at $27.88 per share, which indicates an improvement of 11.8% from the 2023 estimate. UNH currently carries a Zacks Rank #3. Its shares have gained 12.2% in the past six months.
Humana: Based in Kentucky, Humana gains on the back of an expanding customer base and the resultant benefit of higher premiums. An aging U.S. population is likely to sustain the solid demand for Humana's Medicare plans. In 2024, Humana aims to introduce its Medicare Advantage plans across 39 U.S. counties. In order to cater to the aging population effectively, HUM has the CenterWell brand in place.
The Zacks Consensus Estimate for Humana’s 2024 earnings is pegged at $31.42 per share, indicating a 11.1% improvement from the 2023 estimate. HUM’s earnings surpassed estimates in each of the last four quarters, the average being 5.47%. HUM currently carries a Zacks Rank #3. Its shares have gained 3% in the past six months.
Centene: Based in Missouri, Centene is aided by strength in its Medicaid and Medicare businesses that may fetch contract wins and lead to membership growth in the year ahead. U.S. states like Louisiana, Indiana and Missouri, among others, awarded Centene Medicaid contracts in 2023. CNC follows an inorganic growth route in the form of acquisitions and provider collaborations, which, in turn, bolster its capabilities, diversify its portfolio and solidify its nationwide presence.
The Zacks Consensus Estimate for Centene’s 2024 earnings is pegged at $6.70 per share, which suggests a 0.6% rise from the 2023 estimate. CNC’s earnings outpaced estimates in two of the last four quarters and missed the mark twice, the average being 5.62%. CNC currently carries a Zacks Rank #2. Its shares have gained 13.4% in the past six months.
Molina Healthcare: This California-based health insurer gains from an expanding customer base and higher premium revenues, which it earns through distributing Medicare and Medicaid plans across different U.S. communities. These plans fetch numerous contract wins and are likely to contribute to premium growth. A series of acquisitions undertaken over the years has upgraded its capabilities and diversified revenue streams.
Molina Healthcare’s earnings surpassed estimates in each of the last four quarters, the average surprise being 7.46%. The Zacks Consensus Estimate for MOH’s 2024 earnings is pegged at $23.76 per share, which indicates an improvement of 14.1% from the 2023 estimate. MOH currently carries a Zacks Rank #3. Its shares have gained 31.3% in the past six months.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Zacks 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
UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report
Humana Inc. (HUM) : Free Stock Analysis Report
Molina Healthcare, Inc (MOH) : Free Stock Analysis Report
Centene Corporation (CNC) : 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. | Outline for 2024 A growing customer base, attributable to lucrative plan features, is expected to drive premiums in 2024, the most significant contributor to a health insurer’s top line. This can dampen a hospital’s ability to deliver quality care services to health insurers’ plan members and adversely impact their customer base in the days ahead. Molina Healthcare: This California-based health insurer gains from an expanding customer base and higher premium revenues, which it earns through distributing Medicare and Medicaid plans across different U.S. communities. | Stocks recently featured in the blog include: UnitedHealth Group UNH, Humana Inc. HUM, Centene Corp. CNC and Molina Healthcare MOH. Here are highlights from Tuesday’s Analyst Blog: 4 Health Insurers Likely to Maintain Winning Streak in 2024 The U.S. health insurance industry, referred to as Health Maintenance Organization (HMO), benefited from contract wins, an expanding membership base and an aging U.S. population this year. Click to get this free report UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report Humana Inc. (HUM) : Free Stock Analysis Report Molina Healthcare, Inc (MOH) : Free Stock Analysis Report Centene Corporation (CNC) : Free Stock Analysis Report To read this article on Zacks.com click here. | Here are highlights from Tuesday’s Analyst Blog: 4 Health Insurers Likely to Maintain Winning Streak in 2024 The U.S. health insurance industry, referred to as Health Maintenance Organization (HMO), benefited from contract wins, an expanding membership base and an aging U.S. population this year. 4 Stocks to Watch Here, we have picked four HMO stocks that carry either a Zacks Rank #2 (Buy) or a Zacks Rank #3 (Hold) and have the potential to retain their purple patch going forward. Click to get this free report UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report Humana Inc. (HUM) : Free Stock Analysis Report Molina Healthcare, Inc (MOH) : Free Stock Analysis Report Centene Corporation (CNC) : Free Stock Analysis Report To read this article on Zacks.com click here. | Here are highlights from Tuesday’s Analyst Blog: 4 Health Insurers Likely to Maintain Winning Streak in 2024 The U.S. health insurance industry, referred to as Health Maintenance Organization (HMO), benefited from contract wins, an expanding membership base and an aging U.S. population this year. Molina Healthcare: This California-based health insurer gains from an expanding customer base and higher premium revenues, which it earns through distributing Medicare and Medicaid plans across different U.S. communities. Be First to New Top 10 Stocks >> Want the latest recommendations from Zacks Investment Research? | 915a2a91-d715-4448-bce7-d006a4c1a16a |
710532.0 | 2023-12-16 18:00:00 UTC | Britain proposes easing of company listing rules in wake of Brexit | DCOMP | https://www.nasdaq.com/articles/britain-proposes-easing-of-company-listing-rules-in-wake-of-brexit | nan | nan | By Huw Jones
LONDON, Dec 19 (Reuters) - Britain's markets watchdog has proposed a single entry point to simplify and speed up company listings, in the biggest shake up of its kind in three decades to help London compete better with New York as well as EU centres in the wake of Brexit.
Britain accounted for only 5% of IPOs globally between 2015 and 2020, with the number of listings down by about 40% from a peak in 2008. The government failed to persuade UK chip designer Arm to list in London rather than New York.
As expected, the Financial Conduct Authority (FCA) said it proposes merging the "premium" listing on the London Stock Exchange - which has tougher rules - with the less onerous standard listing to meet one set of criteria under the banner of a "commercial" company listing.
It largely mirrors a discussion paper from last year that triggered some concern about a return to light-touch regulation.
"We are working to strengthen the attractiveness of UK capital markets and supporting UK competitiveness and growth," Sarah Pritchard, FCA executive director for markets and international, said in a statement.
It was important that others consider what they in turn can do to make sure the UK remains an attractive place for companies to raise capital given listing rules were not the primary reason for choosing a location, the FCA said.
It has proposed relying more on disclosures by companies, rather than specific rules, thereby transferring more of the risk from an IPO to investors.
Companies would disclose any proposed significant corporate transaction, rather than the current mandatory vote of shareholders, which can be time-consuming in a fast-moving competitive bid.
"There is little sign that the widely held and clearly communicated investor concerns about weakening corporate governance standards have been taken into account," said Railpen, a pensions company and major investor.
However, shareholder approval of a reverse takeover or a de-listing would remain, and there would need to be written relationship agreements with controlling shareholders.
London Stock Exchange CEO Julia Hoggett said listing rules were a critical component of a healthy and competitive capital market, and essential to "levelling the playing field for UK listed company when they compete with international peers".
MORE FAILURES POSSIBLE
Britain is keen to shake up listings and other financial rules to boost growth at a time when private money is needed to help the country invest to meet net-zero targets.
"The UK is Europe's leading hub for investment but it's a competitive world and we are by no means complacent," Britain's financial services minister Bim Afolami said.
The EU is already approving a law to help attract more listings on the bloc's stock markets.
The FCA has cautioned that easing rules must be accompanied by a change in investor understanding and attitude towards risk.
"The proposals could entail an increased possibility of failures, but the changes set out would better reflect the risk appetite the economy needs to achieve growth," the FCA said.
UK Finance, a banking industry body, said the proposals strike the right balance between managing risk and encouraging growth that will help significantly in attracting more listings.
The 400-pages of detailed proposals are being put out to public consultation until March, with final rules coming into effect in the second half of 2024.
The FCA also confirmed new rules for a bond market "consolidated tape" or real-time feed of transaction prices to help investors spot the best deals.
"The proposals will help investors hold their brokers accountable which will improve the competition for their services and enable market participants to manage risk and maintain market stability," the FCA said, adding it would outline its next steps for a stock price tape next year.
The EU has approved a law to regulate stock, bond and derivatives tapes.
(Reporting by Huw Jones; Editing by Hugh Lawson and Bernadette Baum)
((huw.jones@thomsonreuters.com; +44 207 542 3326; Reuters Messaging: huw.jones.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. | It was important that others consider what they in turn can do to make sure the UK remains an attractive place for companies to raise capital given listing rules were not the primary reason for choosing a location, the FCA said. Britain is keen to shake up listings and other financial rules to boost growth at a time when private money is needed to help the country invest to meet net-zero targets. "The UK is Europe's leading hub for investment but it's a competitive world and we are by no means complacent," Britain's financial services minister Bim Afolami said. | By Huw Jones LONDON, Dec 19 (Reuters) - Britain's markets watchdog has proposed a single entry point to simplify and speed up company listings, in the biggest shake up of its kind in three decades to help London compete better with New York as well as EU centres in the wake of Brexit. "We are working to strengthen the attractiveness of UK capital markets and supporting UK competitiveness and growth," Sarah Pritchard, FCA executive director for markets and international, said in a statement. The EU has approved a law to regulate stock, bond and derivatives tapes. | As expected, the Financial Conduct Authority (FCA) said it proposes merging the "premium" listing on the London Stock Exchange - which has tougher rules - with the less onerous standard listing to meet one set of criteria under the banner of a "commercial" company listing. London Stock Exchange CEO Julia Hoggett said listing rules were a critical component of a healthy and competitive capital market, and essential to "levelling the playing field for UK listed company when they compete with international peers". "The proposals will help investors hold their brokers accountable which will improve the competition for their services and enable market participants to manage risk and maintain market stability," the FCA said, adding it would outline its next steps for a stock price tape next year. | "We are working to strengthen the attractiveness of UK capital markets and supporting UK competitiveness and growth," Sarah Pritchard, FCA executive director for markets and international, said in a statement. It has proposed relying more on disclosures by companies, rather than specific rules, thereby transferring more of the risk from an IPO to investors. The EU has approved a law to regulate stock, bond and derivatives tapes. | e0437166-9173-4f6d-8f1b-7205d1b86214 |
710533.0 | 2023-12-16 18:00:00 UTC | 3 Stocks Near Multiyear Lows That Could Bounce Back in 2024 | DCOMP | https://www.nasdaq.com/articles/3-stocks-near-multiyear-lows-that-could-bounce-back-in-2024 | nan | nan | When a company underperforms, the markets sometimes have a tendency to overreact. An earnings miss or a guidance cut can at times be enough to lead to a significant sell-off, even if the underlying business remains a sound investment.
Heading into 2024, there are three struggling stocks that are in negative territory this year but have the potential to bounce back. Dollar Tree (NASDAQ: DLTR), Dollar General (NYSE: DG), and Pfizer (NYSE: PFE) are all trading near multiyear lows, and could have much better performances next year.
1. Dollar Tree
In recent months, Dollar Tree stock has been rallying. But the retail stock is still down 8% year to date and trading around the levels it was at two years ago. The good news for investors, however, is that the rally has the potential to continue into 2024; the stock may still have a lot more room to rise.
Dollar Tree hasn't made for a terribly exciting investment to own in 2023, as the company has been struggling with lower margins due to lost inventory. But with supply chain issues abating and some relief in freight costs anticipated over the next few years, profitability could improve.
Last quarter, which ended on Oct. 28, the company's net income totaled $212 million and was down more than 21% from the prior-year period. The positive is that same-store sales are promising, rising by 5.4% under the Dollar Tree banner and 2% at Family Dollar stores.
Another catalyst which could improve profitability for Dollar Tree is its continued rollout of higher-priced items, which could lead to a greater variety of products and better margins. This past quarter, the company says it has introduced multiple-price Plus offerings to 870 more Dollar Tree locations. As consumers look for ways to trim their budgets with a possible recession looming next year, Dollar Tree's stores could benefit from an uptick in traffic.
2. Dollar General
Another discount retailer that may be due for a bounce back in 2024 is Dollar General. The retailer has lost close to half of its value this year as it has missed estimates and cut its forecast. The situation became so concerning that the company even brought back its old CEO, Todd Vasos.
Due to challenging economic conditions, the company is scaling back expansion. It previously expected to open 1,050 new stores for fiscal 2023 (which ends in January), but now it's aiming for 990. Trimming expansion is a good move for the business as it can help improve the bottom line.
In Dollar General's most recent earnings report, for the quarter which ended on Nov. 3, net income totaled just $276 million and was down 47% year over year. Same-store sales were also down 1.3%.
A turnaround may take some time, but since the company is focusing on being more modest about growth and looking to improve its operations, this could be a good contrarian stock to hold. Although they've been rising in recent weeks, Dollar General shares are still trading at around 2019 levels.
3. Pfizer
Shares of Pfizer have plummeted 47% this year. The company is dealing with the loss of patent protection on some of its top drugs later this decade, while its revenue from preventing and treating COVID-19 (via the vaccine Comirnaty and medicine Paxlovid) is also diminishing. Overall, this doesn't paint a great picture for investors.
The stock has been in a free fall, and it's getting close to a 10-year low. The company projects that next year its revenue will be fairly similar to what it generates this year -- between $58 billion and $62 billion. While zero growth isn't impressive, it's happening while the company faces significant declines in COVID-19-related revenue. Over the first nine months of 2023, sales from Comirnaty were down 77% from the same period last year.
The healthcare company has been loading up on acquisitions to bolster its prospects, and that should pay off in the long run. Recently, it closed on its acquisition of Seagen, which will help expand its oncology business.
Pfizer is in a transition, but as the stock trading is trading at a low 9 times estimated future profits, it's a cheap buy heading into next year. This is still a strong and diverse business to invest in; with so much negativity and bearishness already factored into its current valuation, the stock has the potential to outperform in 2024.
Should you invest $1,000 in Dollar Tree right now?
Before you buy stock in Dollar Tree, 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 Tree wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
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David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Pfizer. 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. | Dollar Tree hasn't made for a terribly exciting investment to own in 2023, as the company has been struggling with lower margins due to lost inventory. Another catalyst which could improve profitability for Dollar Tree is its continued rollout of higher-priced items, which could lead to a greater variety of products and better margins. The company is dealing with the loss of patent protection on some of its top drugs later this decade, while its revenue from preventing and treating COVID-19 (via the vaccine Comirnaty and medicine Paxlovid) is also diminishing. | Dollar Tree In recent months, Dollar Tree stock has been rallying. In Dollar General's most recent earnings report, for the quarter which ended on Nov. 3, net income totaled just $276 million and was down 47% year over year. Before you buy stock in Dollar Tree, 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 Tree wasn't one of them. | Dollar Tree (NASDAQ: DLTR), Dollar General (NYSE: DG), and Pfizer (NYSE: PFE) are all trading near multiyear lows, and could have much better performances next year. Dollar Tree In recent months, Dollar Tree stock has been rallying. Before you buy stock in Dollar Tree, 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 Tree wasn't one of them. | Dollar Tree In recent months, Dollar Tree stock has been rallying. Should you invest $1,000 in Dollar Tree right now? Before you buy stock in Dollar Tree, 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 Tree wasn't one of them. | 46275752-5d8a-4ed8-97a1-f9243d8c9c9a |
710534.0 | 2023-12-16 18:00:00 UTC | 2 Monster Growth Stocks Shaping the Future of Artificial Intelligence (AI) to Buy Now and Hold Forever | DCOMP | https://www.nasdaq.com/articles/2-monster-growth-stocks-shaping-the-future-of-artificial-intelligence-ai-to-buy-now-and | nan | nan | Fortune recently published its Future 50 List for 2023, an annual ranking of the world's largest companies based on long-term growth prospects. Software vendors shaping the future of artificial intelligence (AI) were a common motif. Datadog (NASDAQ: DDOG) and CrowdStrike (NASDAQ: CRWD) made the list on that merit, ranking No. 2 and No. 3, respectively.
That recognition should carry weight for investors. Past Fortune Future 50 cohorts have grown revenue more quickly than the S&P 500 and the S&P 500 Growth indexes, and the first three cohorts (2017 to 2019) are beating both indexes in shareholder returns. Here's why Datadog and CrowdStrike are worth buying today.
1. Datadog
Datadog specializes in observability software. Its platform integrates over two dozen modules that monitor various aspects of the corporate technology stack, enabling businesses to identify and resolve performance issues. Datadog's platform strategy positions the company as a product consolidator, meaning it can replace multiple-point solutions with a cohesive software suite. And that selling point is resonating with the market.
Research company Gartner has recognized Datadog as a leader in application performance monitoring, and Forrester Research has recognized its leadership in artificial intelligence (AI) for IT operations. The company is also a top contender in data center server monitoring, log monitoring, and cloud infrastructure monitoring, among other end markets.
In keeping with its track record for rapid innovation, Datadog has quickly pivoted to meet the growing demand for AI with two new products. The first is LLM Observability, software that extends performance monitoring to the large language models (LLMs) that power generative AI applications. The second is Bits AI, a natural language interface that can automate parts of the incident investigation and response process.
Datadog reported solid financial results in the third quarter. Revenue increased 25% year over year to $548 million, marking a stabilization after five consecutive quarters of slowing growth, and non-GAAP (generally accepted accounting principles) net income soared 96% to $158 million. But Datadog has only scratched the surface of its $45 billion addressable market, giving the company a good shot at accelerating growth as the economic environment improves.
Indeed, Malik Ahmed Khan of Morningstar thinks Datadog could grow revenue at 31% annually over the next five years, and Alex Zukin of Wolfe Research believes the rise of generative AI could make Datadog "the fastest growing software company." In that context, its current valuation of 20 times sales looks reasonable. Patient investors willing to hold this growth stock for at least five years should feel comfortable buying a small position today.
2. CrowdStrike Holdings
CrowdStrike specializes in cybersecurity software. Like Datadog, the company has a platform strategy that integrates products aimed at several end markets, and it has a strong position in many of them. Consultancy Frost & Sullivan recently ranked CrowdStrike a leader in cloud security, and Forrester Research recognized its dominance in endpoint security and threat intelligence services.
CrowdStrike has undoubtedly benefited from its ability to support product consolidation, but its success also comes from sophisticated machine learning capabilities built on a foundation of vast threat intelligence. Frost & Sullivan says, "CrowdStrike leads the industry with regards to the application of artificial intelligence/machine learning to endpoint security," and the upshot of that advantage is superior threat prevention for clients.
CrowdStrike reported strong financial results in the third quarter. Revenue increased 35% to $786 million, driving annual recurring revenue above $3 billion. No pure-play cybersecurity software vendor has ever reached that mark before CrowdStrike. Additionally, non-GAAP net income more than doubled to reach a record $199 million. Investors can expect similar momentum in the future as businesses modernize security systems, consolidate vendors, and seek productivity through automation.
On that last point, CrowdStrike recently introduced Charlotte AI, a generative AI assistant that automates security workflows related to risk assessment, investigation, and response. Charlotte AI is still in beta but could have a material impact down the road.
Morgan Stanley recently selected CrowdStrike as one of 11 software companies best positioned to benefit from generative AI. Datadog also made that list.
With that in mind, Malik Ahmed Khan of Morningstar expects CrowdStrike to grow revenue at 31% annually over the next five years. That forecast makes its current valuation of 21.9 times sales look tolerable, though nowhere near cheap. Patient investors who plan to hold the stock for at least five years should start with a small position today.
Should you invest $1,000 in Datadog right now?
Before you buy stock in Datadog, 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 Datadog wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
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Trevor Jennewine has positions in CrowdStrike. The Motley Fool has positions in and recommends CrowdStrike and Datadog. 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. | But Datadog has only scratched the surface of its $45 billion addressable market, giving the company a good shot at accelerating growth as the economic environment improves. CrowdStrike has undoubtedly benefited from its ability to support product consolidation, but its success also comes from sophisticated machine learning capabilities built on a foundation of vast threat intelligence. Frost & Sullivan says, "CrowdStrike leads the industry with regards to the application of artificial intelligence/machine learning to endpoint security," and the upshot of that advantage is superior threat prevention for clients. | Research company Gartner has recognized Datadog as a leader in application performance monitoring, and Forrester Research has recognized its leadership in artificial intelligence (AI) for IT operations. Consultancy Frost & Sullivan recently ranked CrowdStrike a leader in cloud security, and Forrester Research recognized its dominance in endpoint security and threat intelligence services. With that in mind, Malik Ahmed Khan of Morningstar expects CrowdStrike to grow revenue at 31% annually over the next five years. | Research company Gartner has recognized Datadog as a leader in application performance monitoring, and Forrester Research has recognized its leadership in artificial intelligence (AI) for IT operations. Indeed, Malik Ahmed Khan of Morningstar thinks Datadog could grow revenue at 31% annually over the next five years, and Alex Zukin of Wolfe Research believes the rise of generative AI could make Datadog "the fastest growing software company." Before you buy stock in Datadog, 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 Datadog wasn't one of them. | Like Datadog, the company has a platform strategy that integrates products aimed at several end markets, and it has a strong position in many of them. On that last point, CrowdStrike recently introduced Charlotte AI, a generative AI assistant that automates security workflows related to risk assessment, investigation, and response. Before you buy stock in Datadog, 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 Datadog wasn't one of them. | c60c7057-5153-4636-8856-12384fd9d085 |
710535.0 | 2023-12-16 18:00:00 UTC | Up 218% in 2023, Is DraftKings Stock a Buy for 2024? | DCOMP | https://www.nasdaq.com/articles/up-218-in-2023-is-draftkings-stock-a-buy-for-2024 | nan | nan | Fool.com contributor Parkev Tatevosian highlights the excellent prospects DraftKings (NASDAQ: DKNG) has in 2024 and answers if that's enough to make the stock a buy for long-term investors.
*Stock prices used were the afternoon prices of Dec. 17, 2023. The video was published on Dec. 19, 2023.
Should you invest $1,000 in DraftKings right now?
Before you buy stock in DraftKings, 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 DraftKings wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
See the 10 stocks
*Stock Advisor returns as of December 18, 2023
Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Fool.com contributor Parkev Tatevosian highlights the excellent prospects DraftKings (NASDAQ: DKNG) has in 2024 and answers if that's enough to make the stock a buy for long-term investors. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. | Before you buy stock in DraftKings, 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 DraftKings wasn't one of them. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*. See the 10 stocks *Stock Advisor returns as of December 18, 2023 Parkev Tatevosian, CFA has no position in any of the stocks mentioned. | Before you buy stock in DraftKings, 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 DraftKings wasn't one of them. Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. See the 10 stocks *Stock Advisor returns as of December 18, 2023 Parkev Tatevosian, CFA has no position in any of the stocks mentioned. | Before you buy stock in DraftKings, 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 DraftKings wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 18, 2023 Parkev Tatevosian, CFA has no position in any of the stocks mentioned. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. | fd74264b-f0e9-4e75-a6af-69b915169b43 |
710536.0 | 2023-12-16 18:00:00 UTC | 1 Growth Stock Down 26% to Buy Right Now | DCOMP | https://www.nasdaq.com/articles/1-growth-stock-down-26-to-buy-right-now-1 | nan | nan | Energy drink company Celsius Holdings (NASDAQ: CELH) has stormed onto Wall Street. Shares are up more than 4,370% over the past five years. The company disrupted a competitive beverage industry and then linked up with PepsiCo on a distribution deal that took its growth to the next level.
However, the stock price is down nearly 25% from its high set in September. Investors are left wondering whether Celsius has gone flat, or if this is just a buy-the-dip opportunity before a new run higher.
Sometimes the line is thin between conviction and overconfidence. But Celsius is the real deal, and investors should consider scooping up this stock while it's on sale.
Here is what you need to know.
Celsius is chugging market share
Celsius became something of a sensation during the COVID-19 pandemic. The company advertised itself to active individuals, branding itself with the slogan "Live Fit." Celsius drinks also don't use some of the artificial/unhealthy ingredients found elsewhere, like aspartame and high-fructose corn syrup. It markets health-focused benefits on its can, such as boosting energy and aiding in fat burning.
You can see below that sales for the brand grew from just over $50 million in 2019 to $1.1 billion over the past year, an astounding 23-fold increase over just a few years. The rapid growth attracted PepsiCo, which invested in Celsius and integrated it into its massive distribution footprint in the summer of 2022.
CELH Revenue (TTM) data by YCharts
Such fast growth means that it's taking market share from competitors. Celsius cites Circana for market share data, estimating its market share in energy drinks grew to 10.5% in the United States as of Q3, up from 4.4% a year ago.
Celsius' market share might go even higher in the future. It sells online on Amazon, where it's 21% of the platform's energy drink sales. Its success on Amazon shows where overall market share may eventually go. Retail sales are growing faster than online, possibly because Celsius is still increasing its footprint in physical stores.
In other words, that 21% on Amazon, which reaches virtually every household in America, is what Celsius' share might be if it were in every store in the country. In that case, sales could still grow a long way moving forward. And remember, that's in the United States. There is an entire international opportunity ahead as well.
Earnings growth is charging up
Celsius' growth spurt over the past several years helped turn the business profitable. Below is the beginning of a hockey stick pattern, where a number is flat or growing slowly for a time, and then it exponentially takes off. The massive dip from mid-2022 to mid-2023 reflects one-time fees involved in the PepsiCo deal, so you can look past it.
CELH Normalized Diluted EPS (TTM) data by YCharts
What's important is looking ahead. The company's revenue is increasing faster than its expenses, pushing earnings far higher as it grows. Analysts believe Celsius will earn roughly $0.75 per share for the entire year, pricing the stock at a price-to-earnings ratio (P/E) of 66.
Revenue is growing at a triple-digit rate, up 104% year-over-year in Q3. That will slow down, but it's hard to see such solid operating momentum falling completely off. There's a good chance Celsius will continue growing sales at a high double-digit rate, which should translate into compounding profits (and investment returns).
Why buy Celsius today?
Suppose Celsius grows its earnings-per-share (EPS) by an average of 40% to 50% over the next four to five years thanks to ongoing revenue growth and improving profitability. The stock would be an excellent investment had you bought it today because it shouldn't take long to grow into and beyond its current valuation at 66x earnings.
High-flying growth stocks are often expensive because the market is pricing in future success. If the price gets too high, investors run the risk of the company underdelivering and getting punished when the stock reacts accordingly. There's no question that Celsius commands a hefty price tag. But thanks to its recent drop, it's not pricing in so much success that investors need perfection.
Welcome the price drop, and hold Celsius for the long term.
Should you invest $1,000 in Celsius right now?
Before you buy stock in Celsius, 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 Celsius wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
See the 10 stocks
*Stock Advisor returns as of December 18, 2023
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Justin Pope has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon and Celsius. 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. | CELH Revenue (TTM) data by YCharts Such fast growth means that it's taking market share from competitors. There's a good chance Celsius will continue growing sales at a high double-digit rate, which should translate into compounding profits (and investment returns). Suppose Celsius grows its earnings-per-share (EPS) by an average of 40% to 50% over the next four to five years thanks to ongoing revenue growth and improving profitability. | Energy drink company Celsius Holdings (NASDAQ: CELH) has stormed onto Wall Street. CELH Revenue (TTM) data by YCharts Such fast growth means that it's taking market share from competitors. Celsius cites Circana for market share data, estimating its market share in energy drinks grew to 10.5% in the United States as of Q3, up from 4.4% a year ago. | Celsius cites Circana for market share data, estimating its market share in energy drinks grew to 10.5% in the United States as of Q3, up from 4.4% a year ago. Analysts believe Celsius will earn roughly $0.75 per share for the entire year, pricing the stock at a price-to-earnings ratio (P/E) of 66. Before you buy stock in Celsius, 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 Celsius wasn't one of them. | Celsius cites Circana for market share data, estimating its market share in energy drinks grew to 10.5% in the United States as of Q3, up from 4.4% a year ago. Its success on Amazon shows where overall market share may eventually go. Before you buy stock in Celsius, 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 Celsius wasn't one of them. | b9181e17-52a0-4fe2-abd4-f54184f0af18 |
710537.0 | 2023-12-16 18:00:00 UTC | 3 No-Brainer Stocks to Buy With $500 Right Now | DCOMP | https://www.nasdaq.com/articles/3-no-brainer-stocks-to-buy-with-%24500-right-now-5 | nan | nan | Investing on Wall Street can sometimes be a roller coaster of emotions. The COVID-19 crash in February-March 2020 was the quickest bear market decline in history. Meanwhile, the rallies growth-stock investors have enjoyed in 2021 and 2023 have been jaw-dropping.
Despite these notable gains, some of Wall Street's most followed indexes (e.g., the Nasdaq Composite) remain below their all-time closing highs. Put another way, high-quality stocks can still be purchased at a discount if you're willing to put in the work and look for bargains.
Image source: Getty Images.
What's particularly noteworthy about putting your money to work on Wall Street is that prior barriers to investment have been all but torn down. Most online brokerages have completely done away with minimum-deposit requirements and commission fees for common stock trades executed on major U.S. exchanges. In other words, any amount of money -- even $500 -- can be the ideal amount to put to work.
If you have $500 that's ready to invest, and this isn't cash that'll be needed to pay bills or cover an emergency, the following three stocks stand out as no-brainer buys right now.
Visa
The first genius stock you can confidently add to your portfolio with $500 is world-leading payment processor Visa (NYSE: V). Even though Visa shares are near an all-time high, the company sports a laundry list of competitive advantages that should continue to lift its valuation for years, if not decades, to come.
The interesting thing about Visa is that its biggest headwind is also its greatest opportunity. Like most financial stocks, Visa is cyclical. This is to say that its operating performance tends to ebb and flow with the health of the U.S. and global economy. If a recession takes place, consumer and enterprise spending would be expected to decline, leading to weaker fee collection for Visa.
However, the "ebbs" don't last nearly as long as the "flows." Only three of the 12 U.S. recessions since World War II have lasted at least one year. By comparison, most periods of expansion last multiple years, with two expansions lasting a full decade. Visa is perfectly positioned to take advantage of these extended periods of growth.
To add to the above point, Visa's growth runway during these long-winded expansions is enormous. As of 2021, it held a nearly 53% share of credit card network-purchase volume in the United States. Meanwhile, faster-growing emerging-market regions, including the Middle East, Africa, and Southeastern Asia, remain largely underbanked and therefore ripe for disruption by financial-services providers like Visa.
Something else that's been critical to Visa's long-term success is its avoidance of lending. Visa is a well-known and trusted brand, and it would likely succeed as a lender. But doing so would also expose the company to credit delinquencies and loan losses during inevitable economic slowdowns. Completely avoiding the lending arena means not having to set aside capital for potential losses. It's one of the key reasons Visa bounces back from recessions so quickly.
Lastly, Visa is a cash cow with a profit margin north of 50%. Although its forward price-to-earnings (P/E) ratio of 23 is higher than the benchmark S&P 500, Visa's expected annualized earnings-growth rate of 14% over the next five years makes its stock a bargain.
Jazz Pharmaceuticals
A second no-brainer stock with an exceptionally favorable risk-versus-reward profile for patient investors is specialty healthcare company Jazz Pharmaceuticals (NASDAQ: JAZZ).
The enemy of pretty much every drug developer is time. Novel therapies have finite periods of sales exclusivity. Once those periods of exclusivity end, it's not uncommon for generic drugs and/or biosimilar competition to enter the space and either siphon away sales or reduce the average selling price for a product. Jazz generates about half of its revenue from its oxybate franchise (Xywav and Xyrem), which help patients with various sleep disorders. A high concentration of sales in one franchise/area of focus can be worrisome.
However, Jazz Pharmaceuticals has its bases covered. The company developed a next-generation version of its narcolepsy blockbuster Xyrem. This new version, known as Xywav, contains 92% less sodium than its predecessor. Not only does this make Jazz's drug safer to take for patients with higher cardiovascular risk factors, but it'll help preserve the company's cash flow and sales exclusivity for many years to come.
Jazz's oncology portfolio is also gaining momentum. Cancer-drug sales look to be on track to reach $1 billion in 2023, with acute lymphoblastic leukemia therapy Rylaze doing a lot of the heavy lifting with sales up 46% year to date to $292.5 million.
Cannabidiol-based drug Epidiolex is holding its own as well. Since Jazz acquired GW Pharmaceuticals in May 2021 to get its hands on Epidiolex, sales have continued to grow. Additional worldwide approvals, along with label-expansion opportunities, have the ability to eventually push Epidiolex's annual sales past $1 billion.
Don't overlook Jazz's pipeline, either. The company anticipates as many as five late-stage trial readouts before the end of 2024, with many of these advanced studies focused on experimental cancer drugs.
While Jazz Pharmaceuticals is no longer the growth juggernaut it once was, a forward P/E ratio of 6 doesn't do justice to this highly profitable biotech stock.
Berkshire Hathaway CEO Warren Buffett. Image source: The Motley Fool.
Berkshire Hathaway
The third no-brainer stock to buy with $500 right now, conglomerate Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B), may not be a household name, but its billionaire CEO, Warren Buffett, certainly is. Take note, I'm specifically talking about Berkshire's Class B shares (BRK.B), since a single Class A share will set an investor back more than $544,000!
Since the Oracle of Omaha became CEO in 1965, he's overseen a 19.8% annualized return in his company's Class A shares (BRK.A). The Class B shares weren't issued until 1996, which is why I'm referring to returns of the Class A shares in this instance. Even if Berkshire fails to return close to 20% on an annualized basis moving forward, Buffett and his team have clearly demonstrated their ability to outpace the broader market over long periods.
One of the factors that makes Berkshire Hathaway such a special investment, other than Warren Buffett, is its focus on cyclical businesses.
Buffett and the late Charlie Munger, who served as Berkshire's vice chairman for 45 years, realized a long time ago that betting on the U.S. economy to grow over time is a smart idea. Instead of trying to guess when recessions would occur, Buffett and Munger packed Berkshire's investment portfolio and owned assets with time-tested, profitable, cyclical businesses. Thanks to extended periods of economic expansion, these long-term holdings have delivered big gains for Berkshire and its shareholders.
Another unsung hero for Berkshire Hathaway is the myriad of dividend stocks that sit in its investment portfolio. Over the course of the next year, Buffett and his investing aides will oversee the collection of around $6 billion in dividend income. On top of being recurringly profitable, dividend stocks have historically run circles around publicly traded companies that don't offer a payout.
Furthermore, the culture that Charlie Munger instilled at Berkshire Hathaway is going to live on for decades to come. While every investor would love to see Warren Buffett live to be 120, the truth is that he and Munger built Berkshire Hathaway to succeed long after they're gone. If the American economy is growing over time, there's a good chance Berkshire's wholly owned subsidiaries, which include insurer GEICO and railroad BNSF, as well as the company's $374 billion investment portfolio, are going to benefit.
Should you invest $1,000 in Visa right now?
Before you buy stock in Visa, 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 Visa wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
See the 10 stocks
*Stock Advisor returns as of December 11, 2023
Sean Williams has positions in Visa. The Motley Fool has positions in and recommends Berkshire Hathaway and Visa. 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. | Not only does this make Jazz's drug safer to take for patients with higher cardiovascular risk factors, but it'll help preserve the company's cash flow and sales exclusivity for many years to come. Even if Berkshire fails to return close to 20% on an annualized basis moving forward, Buffett and his team have clearly demonstrated their ability to outpace the broader market over long periods. If the American economy is growing over time, there's a good chance Berkshire's wholly owned subsidiaries, which include insurer GEICO and railroad BNSF, as well as the company's $374 billion investment portfolio, are going to benefit. | One of the factors that makes Berkshire Hathaway such a special investment, other than Warren Buffett, is its focus on cyclical businesses. Instead of trying to guess when recessions would occur, Buffett and Munger packed Berkshire's investment portfolio and owned assets with time-tested, profitable, cyclical businesses. Before you buy stock in Visa, 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 Visa wasn't one of them. | Jazz Pharmaceuticals A second no-brainer stock with an exceptionally favorable risk-versus-reward profile for patient investors is specialty healthcare company Jazz Pharmaceuticals (NASDAQ: JAZZ). Berkshire Hathaway The third no-brainer stock to buy with $500 right now, conglomerate Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B), may not be a household name, but its billionaire CEO, Warren Buffett, certainly is. Before you buy stock in Visa, 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 Visa wasn't one of them. | One of the factors that makes Berkshire Hathaway such a special investment, other than Warren Buffett, is its focus on cyclical businesses. Should you invest $1,000 in Visa right now? Before you buy stock in Visa, 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 Visa wasn't one of them. | adc46bc2-8485-417f-93df-99e90d6a3db8 |
710538.0 | 2023-12-16 18:00:00 UTC | Got $500 to Invest in Stocks? Put It in This Index Fund. | DCOMP | https://www.nasdaq.com/articles/got-%24500-to-invest-in-stocks-put-it-in-this-index-fund. | nan | nan | With investing, you have to get started somewhere, and $500 is a great place to begin. The key, however, is to build a foundation for the future with that cash.
Yes, you could buy a stock, but a better option will probably be an index-based pooled investment product, otherwise known as a fund. This is why you'll probably be best off with Vanguard Total Stock Market ETF (NYSEMKT: VTI).
Saving is the key to your financial future
It isn't all that exciting, but the truth of the matter is that the first step toward a bright financial future is to live below your means. That's the only way that you will ever be able to save money to invest. Of course, before investing, you should probably create an emergency fund (in a bank account, CD, or other easily accessible but super safe account) with three to six months of living expenses in it. But once that's done, you'll be ready to start exploring Wall Street-related options.
Image source: Getty Images.
The thing with investing is that you can only buy so many shares of a stock with $500. Some stocks, like the Class A shares of Berkshire Hathaway (NYSE: BRK.A), are worth so much that you might not even be able to buy a single share. Companies in which you could buy a lot of shares, meanwhile, would likely be higher-risk penny stocks, which is not a space where most investors should be treading. To start, you want something conservative, and you want diversification.
The go-to for that combination is a fund, which is where a lot of investors pool their money together and give it to a financial professional to invest. Probably the best-known option here is a mutual fund, but most mutual funds require more than $500 to get in the door. Luckily, there's another option: exchange-traded funds (ETFs).
You will need a brokerage account
A brokerage account will be required to buy an ETF, but that's not a difficult thing to open up, and many brokers are happy to let you start with $500 (or less). The list is long, from E*Trade to Robinhood Markets. You'll have to fill out some forms and then send the broker your money.
After that's done, you should probably put your $500 into Vanguard Total Stock Market ETF. There are several reasons for this.
First, as noted, you will want to maximize the diversification you get with your $500. As Vanguard Total Stock Market ETF's name implies, it effectively owns a piece of the entire stock market.
There are over 3,700 stocks in the fund. It covers every market sector, with the largest exposure to technology, at roughly 31% of the portfolio. The smallest sector is basic materials, at just under 2%. There is a lot in between, like financials (10%), healthcare (12%), industrials (12%), and consumer discretionary (14%). You get the idea -- there's a broad mix of sectors and a lot of stocks in the ETF, providing you with a huge amount of diversification for a very small investment.
Vanguard Total Stock Market ETF is also extremely cheap to own. When you hire someone else to invest your money, which is what you are doing here, you have to pay them. The fee for that is called an expense ratio when you are talking about ETFs or mutual funds. This particular ETF has an ultra-low expense ratio of just 0.03%, compared to 1% or more for some mutual funds. You will be hard-pressed to find anything that would cost less to own than Vanguard Total Stock Market ETF.
You'll be able to build for the future
Putting your $500 into Vanguard Total Stock Market ETF will give you a foundation from which you can learn and grow, money-wise and knowledge-wise. There are some potential downsides, though.
You will never outperform the market, because what you own is the market. And, depending on the broker you choose, you will have to pay commissions (a trading fee) every time you buy or sell shares of the ETF (some brokers offer free trades, so you might want to make sure you work with one of them).
Neither of these issues are insurmountable headwinds and, frankly, most investors would be better off if they just did as well as the market and focused more of their time and energy on saving money as hard and fast as they can. But, to do that and invest, you still need a solid investment foundation, and that's exactly what Vanguard Total Stock Market ETF can provide even for as little as $500.
Should you invest $1,000 in Vanguard Index Funds-Vanguard Total Stock Market ETF right now?
Before you buy stock in Vanguard Index Funds-Vanguard Total Stock Market ETF, 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 Vanguard Index Funds-Vanguard Total Stock Market ETF wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
See the 10 stocks
*Stock Advisor returns as of December 18, 2023
Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway and Vanguard Index Funds - Vanguard Total Stock Market ETF. 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. | You get the idea -- there's a broad mix of sectors and a lot of stocks in the ETF, providing you with a huge amount of diversification for a very small investment. You'll be able to build for the future Putting your $500 into Vanguard Total Stock Market ETF will give you a foundation from which you can learn and grow, money-wise and knowledge-wise. Neither of these issues are insurmountable headwinds and, frankly, most investors would be better off if they just did as well as the market and focused more of their time and energy on saving money as hard and fast as they can. | Should you invest $1,000 in Vanguard Index Funds-Vanguard Total Stock Market ETF right now? Before you buy stock in Vanguard Index Funds-Vanguard Total Stock Market ETF, 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 Vanguard Index Funds-Vanguard Total Stock Market ETF wasn't one of them. The Motley Fool has positions in and recommends Berkshire Hathaway and Vanguard Index Funds - Vanguard Total Stock Market ETF. | As Vanguard Total Stock Market ETF's name implies, it effectively owns a piece of the entire stock market. But, to do that and invest, you still need a solid investment foundation, and that's exactly what Vanguard Total Stock Market ETF can provide even for as little as $500. Before you buy stock in Vanguard Index Funds-Vanguard Total Stock Market ETF, 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 Vanguard Index Funds-Vanguard Total Stock Market ETF wasn't one of them. | The go-to for that combination is a fund, which is where a lot of investors pool their money together and give it to a financial professional to invest. But, to do that and invest, you still need a solid investment foundation, and that's exactly what Vanguard Total Stock Market ETF can provide even for as little as $500. Before you buy stock in Vanguard Index Funds-Vanguard Total Stock Market ETF, 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 Vanguard Index Funds-Vanguard Total Stock Market ETF wasn't one of them. | f451e795-9b19-479d-bcd5-acb3c19f82bf |
710539.0 | 2023-12-16 18:00:00 UTC | Where Will Nvidia Stock Be in 5 Years? | DCOMP | https://www.nasdaq.com/articles/where-will-nvidia-stock-be-in-5-years-0 | nan | nan | An investment of just $100 made in shares of Nvidia (NASDAQ: NVDA) five years ago is now worth about $1,339, which is not surprising as the market has rewarded the chipmaker's impressive growth in revenue and earnings handsomely.
A big chunk of those gains came in 2023, driven by a significant acceleration in Nvidia's growth thanks to the company's dominant position in the market for artificial intelligence (AI) chips and the recent recovery in the personal computer (PC) market, which kick-started the growth of its gaming business.
Even better is that analysts forecast Nvidia will grow at a much faster pace in the next five years compared to the growth it has clocked in the previous half-decade. More specifically, consensus estimates forecast Nvidia's earnings to increase at a compound annual growth rate (CAGR) of 103% over the next five years. That would be more than double the 48% CAGR Nvidia's bottom line has clocked in the past five years.
A closer look at Nvidia's key growth drivers will tell us exactly why its bottom-line growth is expected to step on the gas over the next five years.
Nvidia's huge catalysts point toward red-hot growth
Nvidia was a much smaller company five years ago. It generated just under $12 billion in revenue in fiscal 2019 (which ended in January 2019 and coincided with 11 months of calendar year 2018). Gaming was Nvidia's biggest business segment at that time, accounting for 53% of its top line, while the data center business produced a quarter of its total revenue five years ago.
The situation has changed dramatically since then. The company now gets 80% of its revenue from selling graphics processing units (GPU) for the data center market. Gaming is now a smaller component, with just under 16% of Nvidia's fiscal 2024 third-quarter revenue. Still, Nvidia is the leader in both of these markets.
According to third-party estimates, Nvidia controls more than 80% of the AI chip market, and it has a similar position in the market for discrete graphics cards that are deployed in PCs. The good news is that both of these markets are built for solid growth over the next five years. According to Nvidia's peer Advanced Micro Devices, the AI chip market could generate annual revenue of $400 billion in 2027, up nearly 10x from this year's $45 billion.
On the other hand, the gaming GPU market is forecast to grow at an annual pace of almost 34% through the end of 2028, according to Mordor Intelligence. The cloud gaming market, which is forecast to clock annual growth of 39% through 2028 and generate annual revenue of $23 billion at the end of the forecast period, could be another catalyst for Nvidia given the company's dominant position in this space.
More importantly, Nvidia has been taking steps to ensure that it remains the leading player in these markets by way of its product development moves. The company has already accelerated its product roadmap in AI chips, and it is reportedly going to make its next-generation gaming cards on a more advanced 3-nanometer (nm) process as compared to the current RTX 40-series processors that are made on a 5nm process.
A smaller manufacturing node should ideally allow Nvidia's new gaming chips to pack more computing power and consume less electricity at the same time. This explains why Taiwan Semiconductor Manufacturing, from whom Nvidia sources its chips, claims that the 3nm chips could boost performance by 15% and lower power consumption by 30% as compared to the 5nm chips.
All this indicates that Nvidia is setting itself up to make the most of the impressive growth in the key end markets that contribute significantly to its business. That's why it won't be surprising to see the company's earnings indeed growing at a much faster pace over the next five years as compared to the past five.
How much upside can investors expect over the next five years?
Nvidia is on track to finish fiscal 2024 with revenue of $59 billion. That translates into a five-year revenue CAGR of 38% using the company's fiscal 2019 revenue of $11.7 billion as the base. For comparison, Nvidia's revenue growth is expected to be much faster over the next couple of years, as the following chart indicates.
NVDA Revenue Estimates for Current Fiscal Year data by YCharts.
The company is expected to generate almost $108 billion in revenue in fiscal 2026. That points toward a three-year revenue CAGR of 58% using the fiscal 2023 revenue of $27 billion as the base. If we assume that Nvidia's annual growth slows down to even 30% in the three fiscal years following fiscal 2026, its top line could hit $237 billion in fiscal 2029.
Nvidia has a five-year price-to-sales ratio of 20. Multiplying that with the company's projected revenue in fiscal 2029 would translate to a market cap of $4.75 trillion. That's nearly 4x of Nvidia's current market cap, indicating that a $100 investment in this hot tech stock could multiply once again in the next five years and make investors richer.
Should you invest $1,000 in Nvidia right now?
Before you buy stock in Nvidia, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Nvidia wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
See the 10 stocks
*Stock Advisor returns as of December 11, 2023
Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Nvidia, and Taiwan Semiconductor Manufacturing. 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. | An investment of just $100 made in shares of Nvidia (NASDAQ: NVDA) five years ago is now worth about $1,339, which is not surprising as the market has rewarded the chipmaker's impressive growth in revenue and earnings handsomely. A smaller manufacturing node should ideally allow Nvidia's new gaming chips to pack more computing power and consume less electricity at the same time. That's nearly 4x of Nvidia's current market cap, indicating that a $100 investment in this hot tech stock could multiply once again in the next five years and make investors richer. | A big chunk of those gains came in 2023, driven by a significant acceleration in Nvidia's growth thanks to the company's dominant position in the market for artificial intelligence (AI) chips and the recent recovery in the personal computer (PC) market, which kick-started the growth of its gaming business. According to Nvidia's peer Advanced Micro Devices, the AI chip market could generate annual revenue of $400 billion in 2027, up nearly 10x from this year's $45 billion. The Motley Fool has positions in and recommends Advanced Micro Devices, Nvidia, and Taiwan Semiconductor Manufacturing. | According to Nvidia's peer Advanced Micro Devices, the AI chip market could generate annual revenue of $400 billion in 2027, up nearly 10x from this year's $45 billion. The cloud gaming market, which is forecast to clock annual growth of 39% through 2028 and generate annual revenue of $23 billion at the end of the forecast period, could be another catalyst for Nvidia given the company's dominant position in this space. 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. | That translates into a five-year revenue CAGR of 38% using the company's fiscal 2019 revenue of $11.7 billion as the base. The company is expected to generate almost $108 billion in revenue in fiscal 2026. That's nearly 4x of Nvidia's current market cap, indicating that a $100 investment in this hot tech stock could multiply once again in the next five years and make investors richer. | 44126543-d27d-418e-8842-249faed2a76b |
710540.0 | 2023-12-16 18:00:00 UTC | Where Will Dutch Bros Stock Be in 3 Years? | DCOMP | https://www.nasdaq.com/articles/where-will-dutch-bros-stock-be-in-3-years-0 | nan | nan | Dutch Bros (NYSE: BROS) is effectively trying to take on industry giants like Dunkin and Starbucks (NASDAQ: SBUX). Although that's a "grande" order, so far the upstart seems to be doing fairly well in its expansion efforts. But the real benefit from new stores doesn't show up for a little while.
Here's why Dutch Bros' business, and likely its stock, could be in a better place in three years.
It costs a lot to open a new Dutch Bros location
In the third quarter of 2023, Dutch Bros had 794 locations. That's up from 641 in the same quarter of 2022. Do the math on that, and the company opened a whopping 153 stores in a year, growing its store count by nearly 24%. That's incredibly rapid growth, even noting that the coffee chain is coming off a relatively small base. For reference, Starbucks operates well over 16,300 locations in the United States.
Image source: Getty Images.
There's two pieces of good news here. First, given the size of Starbucks, Dutch Bros likely has a material amount of growth ahead of it. Second, the company is executing well on its growth plans.
That's worthwhile, given that finding a place to put a new store, building it out, staffing it, and then running it is not an easy task. There is a huge amount of execution risk, especially given how important store count growth is to the company's future. Still, the near-term problem here is that opening stores isn't cheap.
To the company's credit, it turned a profit of $0.07 per share in the third quarter. But the profit over the first nine months of 2023 was just $0.05 per share, so black ink appears to be a bit touch-and-go right now. That's not shocking, given the growth phase the company is in. But there's a subtle trend that investors need to get a handle on when thinking about the future.
Dutch Bros gets terrible numbers up front
When Dutch Bros first opens a new company-owned location, it tends to have a gross profit margin of negative 29%. That's an ugly figure, but it makes complete sense, given the start-up costs involved in opening new coffee shops.
Here's the issue: The more new stores it opens, the bigger the drag on the company's overall performance. That's true even though opening new stores is fueling the company's long-term growth opportunity.
But from that initial negative, new stores start to improve dramatically over the next 12 months. After two quarters of operations, gross margin improves to 18%. After four quarters, a full year of operation, the gross margin is 26%. In the third quarter, the company's overall gross margin for owned locations was just under 22%. That gives you an idea of the drag that new stores can cause.
But once the base of stores grows, the impact of each new store on the total will be reduced. That's simple math, because more stores open for at least a year will be operating with margins in the 26% range.
So, in three years, the company's profitability is likely to trend reliably higher. As it proves that it can turn a profit while still opening new stores, investors are likely to take a more positive view of the future. And Dutch Bros will be a bigger company, too.
Plenty of room to run for Dutch Bros
Is Dutch Bros going to be the next Starbucks? It's way too soon to tell. But it appears to be doing reasonably well at expanding its footprint, even though its modest size currently means new store costs eat into the restaurant chain's profitability. This dynamic, however, should become less of an issue over the next three years as more and more new stores become "old" stores. That suggests a brighter future for the business and, likely, the stock, as well.
Should you invest $1,000 in Dutch Bros right now?
Before you buy stock in Dutch Bros, 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 Dutch Bros wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
See the 10 stocks
*Stock Advisor returns as of December 18, 2023
Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Starbucks. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | That's worthwhile, given that finding a place to put a new store, building it out, staffing it, and then running it is not an easy task. That's an ugly figure, but it makes complete sense, given the start-up costs involved in opening new coffee shops. But it appears to be doing reasonably well at expanding its footprint, even though its modest size currently means new store costs eat into the restaurant chain's profitability. | It costs a lot to open a new Dutch Bros location In the third quarter of 2023, Dutch Bros had 794 locations. After two quarters of operations, gross margin improves to 18%. Before you buy stock in Dutch Bros, 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 Dutch Bros wasn't one of them. | It costs a lot to open a new Dutch Bros location In the third quarter of 2023, Dutch Bros had 794 locations. Dutch Bros gets terrible numbers up front When Dutch Bros first opens a new company-owned location, it tends to have a gross profit margin of negative 29%. Before you buy stock in Dutch Bros, 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 Dutch Bros wasn't one of them. | Here's why Dutch Bros' business, and likely its stock, could be in a better place in three years. Do the math on that, and the company opened a whopping 153 stores in a year, growing its store count by nearly 24%. Before you buy stock in Dutch Bros, 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 Dutch Bros wasn't one of them. | 345078ef-9d20-4a80-8864-6987f8adb5ee |
710541.0 | 2023-12-16 17:00:00 UTC | 3 Reasons to Buy CRISPR Therapeutics Stock Like There's No Tomorrow | DCOMP | https://www.nasdaq.com/articles/3-reasons-to-buy-crispr-therapeutics-stock-like-theres-no-tomorrow | nan | nan | CRISPR Therapeutics (NASDAQ: CRSP) has climbed more than 60% this year -- and for good reason. The company and partner Vertex Pharmaceuticals delivered positive results from clinical trials of their blood disorders candidate, exa-cel, and investors bet on potential regulatory approvals to follow.
In recent weeks, investors won that bet. Regulators in the U.K. authorized exa-cel -- to be commercialized as Casgevy -- for sickle cell disease and beta thalassemia. U.S. regulators approved the gene-editing treatment for sickle cell and aim to issue a decision on the second blood disorder early next year.
All of this marks just the beginning of a great opportunity for long-term investors. Let's check out three reasons to buy CRISPR Therapeutics like there's no tomorrow.
Image source: Getty Images.
1. The regulatory vote of confidence
The recent regulatory nods for Casgevy represent more than just an OK to go ahead and sell the product. These decisions also may be seen as a vote of confidence in a new technology. The U.K. decision was the world's first authorization of a treatment based on CRISPR gene editing.
Regulators often consider new technologies with an extra layer of caution, so the fact that they have given Casgevy a thumbs up means CRISPR Therapeutics has made it over a particularly difficult hurdle. And as real-world data from Casgevy accrues, we could imagine regulators gaining confidence about the technology.
This is great news for CRISPR Therapeutics because the company's pipeline is based on CRISPR gene editing -- and now we know regulators are willing to let these types of products enter the commercial market.
2. A new focus on next-generation candidates
CRISPR Therapeutics recently said it's shifting its focus to its next-generation immuno-oncology candidates and dropping its initial ones -- including a candidate that was in late-stage development.
The bad news is shelving the late-stage candidate may slow the time to market, but the good news more than compensates. Data from trials of all the candidates show the later-stage ones offer potential for greater efficacy and therefore better patient outcomes. Stronger candidates are more likely to win regulatory approval, as well as stand out in the highly competitive oncology drug market.
At the same time, CRISPR Therapeutics sees potential for these candidates to treat autoimmune diseases too, so it is expanding into that area. The biotech aims to launch a trial in systemic lupus erythematosus in the first half of next year.
So, this new focus brings CRISPR Therapeutics the possibility of more indications for a potential product and a greater chance of success in oncology.
3. Upcoming product sales
Finally, it's important to note that new product Casgevy is just getting started when it comes to powering share price gains. Sure, investors piled into the shares earlier this year in anticipation of an approval. Now, though, investors could open a position in or add to positions in CRISPR Therapeutics as the company reports product sales growth.
Casgevy is the company's first commercialized product, and it holds blockbuster potential. CRISPR Therapeutics and Vertex say right now, thanks to the sickle cell approval, about 16,000 people may be eligible for the treatment. It might take time to roll out the therapy, as it requires several treatment steps over a few months, and the companies still are negotiating with payers regarding coverage.
But Casgevy, thanks to its one-time curative profile, is likely to at least spark the interest of many doctors and patients -- especially considering treatment options are limited for sickle cell and beta thalassemia today.
So, even if sales don't soar overnight, there's reason to believe they will progressively grow -- and this could drive shares of this innovative company higher over the long term. That's why you'll want to stock up on this leading gene-editing company today, early in its growth story.
Should you invest $1,000 in CRISPR Therapeutics right now?
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Adria Cimino has positions in Vertex Pharmaceuticals. The Motley Fool has positions in and recommends CRISPR Therapeutics and Vertex Pharmaceuticals. 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 company and partner Vertex Pharmaceuticals delivered positive results from clinical trials of their blood disorders candidate, exa-cel, and investors bet on potential regulatory approvals to follow. Regulators often consider new technologies with an extra layer of caution, so the fact that they have given Casgevy a thumbs up means CRISPR Therapeutics has made it over a particularly difficult hurdle. But Casgevy, thanks to its one-time curative profile, is likely to at least spark the interest of many doctors and patients -- especially considering treatment options are limited for sickle cell and beta thalassemia today. | The company and partner Vertex Pharmaceuticals delivered positive results from clinical trials of their blood disorders candidate, exa-cel, and investors bet on potential regulatory approvals to follow. U.S. regulators approved the gene-editing treatment for sickle cell and aim to issue a decision on the second blood disorder early next year. Before you buy stock in CRISPR Therapeutics, 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 CRISPR Therapeutics wasn't one of them. | This is great news for CRISPR Therapeutics because the company's pipeline is based on CRISPR gene editing -- and now we know regulators are willing to let these types of products enter the commercial market. Now, though, investors could open a position in or add to positions in CRISPR Therapeutics as the company reports product sales growth. Before you buy stock in CRISPR Therapeutics, 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 CRISPR Therapeutics wasn't one of them. | The company and partner Vertex Pharmaceuticals delivered positive results from clinical trials of their blood disorders candidate, exa-cel, and investors bet on potential regulatory approvals to follow. U.S. regulators approved the gene-editing treatment for sickle cell and aim to issue a decision on the second blood disorder early next year. Before you buy stock in CRISPR Therapeutics, 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 CRISPR Therapeutics wasn't one of them. | f91015b1-d016-410d-8b79-0c42ba685d7a |
710542.0 | 2023-12-16 17:00:00 UTC | Is AMD Stock a Buy Now? | DCOMP | https://www.nasdaq.com/articles/is-amd-stock-a-buy-now-11 | nan | nan | It's hard not to be bullish about Advanced Micro Devices (NASDAQ: AMD). The company's stock has more than doubled in 2023, up some 115% since Jan. 1. Meanwhile, it appears to be making promising headway in the budding artificial intelligence (AI) market.
The company's biggest competitor, Nvidia, has enjoyed soaring earnings this year thanks to a spike in demand for AI chips. Nvidia's performance over the last 12 months could mean big things for AMD in 2024 as AMD plans to launch a powerful new graphics processing unit (GPU). If AMD can replicate even a portion of Nvidia's success in the industry, the company could expect major gains next year.
As a result, now is the perfect time to learn more about this tech giant and determine whether it's worth adding to your portfolio. So, is AMD's stock a buy now? Let's take a look.
AMD likely has a bright future in AI over the long term
Many companies across tech have restructured their businesses to focus on AI in 2023, with several venturing into the hardware side of the industry. Tech firms like Intel, Amazon, and Microsoft all have plans to eventually challenge Nvidia's dominance in AI chips and take a slice of the lucrative market.
However, AMD likely has the best chance to thrive in the arena thanks to its years of being the second-biggest name in GPUs (second only to Nvidia). AMD has the brand recognition and infrastructure in place to catch up to its primary rival far quicker than other competitors.
AMD launched its MI300X AI GPU on Dec. 6. The new chip is reportedly faster than Nvidia's H100 GPU, offering up to 60% increased performance. If it can deliver competitive price-to-performance, AMD could see significant revenue gains over the next year.
Microsoft's Azure has already signed on to become the first cloud platform to use the chip. Meanwhile, Meta, Broadcom, and Cisco have partnered with AMD to build advanced AI systems.
The AI market exploded in 2023 and has shown no signs of slowing. Nvidia may have gotten a head start, but AMD looks likely to make a big splash next year, and you might not want to miss out on its growth potential.
Poor valuation makes other stocks more attractive for now
AMD's stock has skyrocketed this year, but its earnings still have yet to see a return on the chipmaker's heavy investment in AI. The chart below reflects this, with the company's free cash flow plunging nearly 60% year to date while Nvidia's more than tripled.
Data by YCharts
In the third quarter of 2023, AMD's revenue rose 4% year over year, beating Wall Street estimates by $110 million. The growth was mainly owed to a 42% increase in AMD's client segment, which benefited from improvements in the personal computer market.
However, AMD's data center sales crucially fell about 1% as Nvidia cornered the market on chips. For reference, Nvidia's data center segment posted a 206% increase in revenue for the same quarter. The newly released MI300X could trigger a spike in AMD's data center revenue next year. However, until then, its stock might be too expensive to justify.
Data by YCharts
The tables above compare AMD's price-to-earnings ratio and price-to-free cash flow against the same metrics for some of the biggest names in AI right now. AMD has the highest figures on both fronts by a significant margin, meaning its stock offers the least value out of all these companies.
AMD is on a promising growth trajectory and will likely flourish over the long term. However, its high valuation is hard to justify with options like Alphabet and Microsoft as alternative ways to invest in AI. Even Nvidia's high stock price is more attractive, with better valuation metrics and a more established position in the industry.
It's wise to keep AMD on your radar to strike when the time is right, but cheaper options are too good to pass up for now.
Should you invest $1,000 in Advanced Micro Devices right now?
Before you buy stock in Advanced Micro Devices, 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 Advanced Micro Devices wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon, Cisco Systems, Meta Platforms, Microsoft, and Nvidia. The Motley Fool recommends Broadcom and 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. 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. | Tech firms like Intel, Amazon, and Microsoft all have plans to eventually challenge Nvidia's dominance in AI chips and take a slice of the lucrative market. Data by YCharts The tables above compare AMD's price-to-earnings ratio and price-to-free cash flow against the same metrics for some of the biggest names in AI right now. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon, Cisco Systems, Meta Platforms, Microsoft, and Nvidia. | Before you buy stock in Advanced Micro Devices, 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 Advanced Micro Devices wasn't one of them. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon, Cisco Systems, Meta Platforms, Microsoft, and Nvidia. The Motley Fool recommends Broadcom and 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. | Poor valuation makes other stocks more attractive for now AMD's stock has skyrocketed this year, but its earnings still have yet to see a return on the chipmaker's heavy investment in AI. Before you buy stock in Advanced Micro Devices, 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 Advanced Micro Devices wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. | Poor valuation makes other stocks more attractive for now AMD's stock has skyrocketed this year, but its earnings still have yet to see a return on the chipmaker's heavy investment in AI. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon, Cisco Systems, Meta Platforms, Microsoft, and Nvidia. | 302cd65c-c1c4-452b-a39d-d8185a08c757 |
710543.0 | 2023-12-16 17:00:00 UTC | 3 Top Dividend Stocks That Recently Hiked Their Payouts | DCOMP | https://www.nasdaq.com/articles/3-top-dividend-stocks-that-recently-hiked-their-payouts | nan | nan | Dividend stocks can be excellent sources of recurring income for your portfolio. Stocks that increase their payouts over time can be even more valuable for long-term investors, as this income could rise in the years ahead.
Three stocks that recently boosted their dividend payments are Eli Lilly (NYSE: LLY), Mastercard (NYSE: MA), and Enbridge (NYSE: ENB). Here's a closer look at why these three can be excellent dividend stocks to buy and hold for the long haul.
1. Eli Lilly
Eli Lilly is known for being a solid growth stock, but investors shouldn't discount its potential to be a solid income-generating investment as well. Earlier this month, the company announced an impressive 15% increase in its dividend.
Large dividend hikes haven't been unusual for Eli Lilly. It announced a 15% increase last year as well as the year before that.
The new quarterly per-share payment of $1.30 is now double the $0.645 that the company was paying its shareholders back in 2019. That averages out to a compounded annual growth rate of 15%.
Eli Lilly has been generous with dividend increases as the business has been doing well. The company is still likely to experience strong growth in the years ahead. Its weight-loss treatment Zepbound, which could generate more than $50 billion in annual revenue at its peak, recently obtained approval from the Food and Drug Administration. I wouldn't be surprised to see more double-digit increases for the dividend in the future.
The company's payout ratio hovers around 80%, which is a tad high. But with more growth on the horizon, that percentage should come down. The stock yields a fairly modest 0.9% (the S&P 500 average is 1.5%). However, between the growth opportunities the stock possesses and the potential for the payout to get higher in the future, this can still make for an excellent long-term investment.
2. Mastercard
The credit card giant announced an even larger increase to its dividend this month. Its new quarterly per-share dividend of $0.66 is 16% higher than the $0.57 it was previously paying.
It has also doubled its payouts over the past five years. In 2019, Mastercard was paying investors $0.33 every quarter, but with the increase, the company's dividend yield is around 0.6%. With a payout ratio of less than 20%, there's ample room for more dividend hikes in the future.
The company has been growing at a strong rate this year. Sales through the first nine months of 2023 totaled $18.6 billion and increased 13% year over year. Net income of $8.4 billion has also increased by a similar percentage.
The stock looks like a good buy, even in the event of a potential downturn because as budgets tighten up, consumers may rely more on their credit cards.
3. Enbridge
The only stock that pays an above-average yield on this list is Canadian pipeline company Enbridge. Last month, the company announced a relatively modest 3% rate increase to its dividend. It's the 29th straight year that the oil and gas company has increased its dividend.
The company also announced that it expects its distributable cash flow (DCF), which is a key metric when assessing the safety of its payout, will increase by a similar percentage next year.
With a yield of 7.6%, Enbridge is far and away the highest-yielding stock on this list. High yields can signal a dividend cut, depending on how various other metrics shape up. Even more concerning is the company's payout ratio at the moment. It currently exceeds 200%, which is unsustainable for most companies.
However, because of the nature of the business model Enbridge operates under, a better metric for determining the sustainability of the payout is to look at its payout ratio in comparison to its discounted cash flow (DCF), which excludes non-cash expenses such as depreciation and amortization. Based on DCF, Enbridge expects its payout ratio to be a more sustainable 60% to 70%.
The company announced a $14 billion acquisition earlier this year. It will acquire assets from Dominion Energy that will expand its gas distribution business, making it the largest gas utility company in North America (based on volume). While there are concerns that it will add debt to the business, in the long run, it could make the business more diverse and a better investment overall.
Enbridge can make for a top stock to own for investors who want exposure to oil and gas and want a great dividend.
Should you invest $1,000 in Eli Lilly right now?
Before you buy stock in Eli Lilly, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Eli Lilly wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
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*Stock Advisor returns as of December 18, 2023
David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Enbridge and Mastercard. The Motley Fool recommends Dominion Energy and recommends the following options: long January 2025 $370 calls on Mastercard and short January 2025 $380 calls on Mastercard. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Its weight-loss treatment Zepbound, which could generate more than $50 billion in annual revenue at its peak, recently obtained approval from the Food and Drug Administration. The stock looks like a good buy, even in the event of a potential downturn because as budgets tighten up, consumers may rely more on their credit cards. The company also announced that it expects its distributable cash flow (DCF), which is a key metric when assessing the safety of its payout, will increase by a similar percentage next year. | Three stocks that recently boosted their dividend payments are Eli Lilly (NYSE: LLY), Mastercard (NYSE: MA), and Enbridge (NYSE: ENB). Before you buy stock in Eli Lilly, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Eli Lilly wasn't one of them. The Motley Fool recommends Dominion Energy and recommends the following options: long January 2025 $370 calls on Mastercard and short January 2025 $380 calls on Mastercard. | Three stocks that recently boosted their dividend payments are Eli Lilly (NYSE: LLY), Mastercard (NYSE: MA), and Enbridge (NYSE: ENB). Eli Lilly Eli Lilly is known for being a solid growth stock, but investors shouldn't discount its potential to be a solid income-generating investment as well. Before you buy stock in Eli Lilly, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Eli Lilly wasn't one of them. | However, between the growth opportunities the stock possesses and the potential for the payout to get higher in the future, this can still make for an excellent long-term investment. In 2019, Mastercard was paying investors $0.33 every quarter, but with the increase, the company's dividend yield is around 0.6%. Before you buy stock in Eli Lilly, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Eli Lilly wasn't one of them. | 1cd05220-10de-43ec-a032-b6125d7e5a89 |
710544.0 | 2023-12-16 17:00:00 UTC | Here's My Top Growth Stock to Buy Right Now | DCOMP | https://www.nasdaq.com/articles/heres-my-top-growth-stock-to-buy-right-now-11 | nan | nan | Innovation creates new businesses that stock investors can capitalize on for gains. While credit for such opportunities often goes to the technology industry, investors may overlook the consumer sector.
However, they can benefit from the best of both worlds by fulfilling customer desires with technology. That potential market influence has made Shopify (NYSE: SHOP) my favorite growth stock, and it is likely not too late for new investors to capitalize on this opportunity.
Why Shopify?
On the surface, choosing a development platform for e-commerce websites may not sound like a game-changing opportunity. Amazon emerged as a pioneer in e-commerce decades ago. And even outside of the developed world, companies like Alibaba, MercadoLibre, and Sea Limited exhibit similar market leadership in their respective regions.
However, Statista forecasts a compound annual growth rate of 11% for global e-commerce through 2027. This constitutes enough growth for more businesses to capture.
Image source: Statista Digital Market Insights.
To this end, platforms like Shopify could function as an alternative to the Amazons of the world. Shopify enables small and medium-sized businesses to sell online without having to share profits with a seemingly dominant selling entity.
Moreover, the extent of Shopify's ecosystem gives it a competitive advantage over the numerous software companies with e-commerce platforms. Its ease of use means entrepreneurs without technical skills can set up and operate Shopify sales sites. It also gives these clients extensive tools for customization that most peers do not match.
Shopify's ecosystem also extends well beyond presenting sales items and processing orders. Shopify Payments can process financial transactions more efficiently, and Shopify Capital can help small businesses obtain funding. The company also helps with promoting sites via email and social media.
The company further expanded its functionality by developing a platform for larger and fast-growing retailers called Shopify Plus. This software facilitates a faster onboarding process and a wholesale channel service. Additionally, its inventory management capabilities extend to online and offline sales, offloading much of the technical difficulties of developing comparable in-house platforms.
Shopify by the numbers
However, Shopify pulled back from one potential competitive advantage earlier this year by selling its logistics business. Building that business proved costly, and by selling it, Shopify has drastically improved its financials.
In the first nine months of 2023, Shopify reported revenue of $4.9 billion, an improvement of 27% versus the same period in 2022.
Net losses came in at $515 million for the first three quarters of 2023, well under the $2.9 billion for the same timeframe in 2022. Additionally, Shopify reported $708 million in net income in the third quarter. If not for the $1.3 billion impairment charge from the sale of the logistics business, Shopify would have been profitable so far this year.
Investors have taken notice of this recovery, and the stock is up more than 110% over the last 12 months.
Admittedly, the likely return to profitability takes the forward price-to-earnings (P/E) ratio above 110. However, a high probability of rapid earnings growth could make that a misleading valuation measure. Furthermore, its price-to-sales (P/S) ratio comes in at about 15. While that makes Shopify a pricey stock, it has traded well above that level for most of its history, indicating that the sales multiple is more likely to rise than fall.
Consider Shopify stock
Ultimately, Shopify is my favorite growth stock because it leads the way in helping e-commerce businesses function without the Amazons of the world taking a cut.
Moreover, the company derives massive growth from a growing industry as customers turn to it for its ease of use and extensive ecosystem. As more businesses adopt e-commerce functionality, more of them will likely turn to Shopify. And the stock holds massive potential for driving outsized returns for investors, now that Shopify is free of the profit-killing logistics business.
Where to invest $1,000 right now
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for two decades, Motley Fool Stock Advisor, has more than tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Shopify made the list -- but there are 9 other stocks you may be overlooking.
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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. Will Healy has positions in MercadoLibre, Sea Limited, and Shopify. The Motley Fool has positions in and recommends Amazon, MercadoLibre, Sea Limited, and Shopify. The Motley Fool recommends Alibaba Group. 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 potential market influence has made Shopify (NYSE: SHOP) my favorite growth stock, and it is likely not too late for new investors to capitalize on this opportunity. Additionally, its inventory management capabilities extend to online and offline sales, offloading much of the technical difficulties of developing comparable in-house platforms. And the stock holds massive potential for driving outsized returns for investors, now that Shopify is free of the profit-killing logistics business. | And even outside of the developed world, companies like Alibaba, MercadoLibre, and Sea Limited exhibit similar market leadership in their respective regions. After all, the newsletter they have run for two decades, Motley Fool Stock Advisor, has more than tripled the market. The Motley Fool has positions in and recommends Amazon, MercadoLibre, Sea Limited, and Shopify. | Shopify Payments can process financial transactions more efficiently, and Shopify Capital can help small businesses obtain funding. Shopify by the numbers However, Shopify pulled back from one potential competitive advantage earlier this year by selling its logistics business. Consider Shopify stock Ultimately, Shopify is my favorite growth stock because it leads the way in helping e-commerce businesses function without the Amazons of the world taking a cut. | Why Shopify? Moreover, the extent of Shopify's ecosystem gives it a competitive advantage over the numerous software companies with e-commerce platforms. Consider Shopify stock Ultimately, Shopify is my favorite growth stock because it leads the way in helping e-commerce businesses function without the Amazons of the world taking a cut. | cca2c027-e0ce-43fb-86bf-1687ead9ef85 |
710545.0 | 2023-12-16 17:00:00 UTC | 3 Best Stocks to Buy Now, 12/20/2023, According to Top Analysts | DCOMP | https://www.nasdaq.com/articles/3-best-stocks-to-buy-now-12-20-2023-according-to-top-analysts | nan | nan | Which stocks are best to buy now? According to Top Wall Street Analysts, the three stocks listed below are Strong Buys. Each stock received a new Buy rating recently and has a significant upside as well.
To find more stocks like these, take a look at TipRanks’ Analyst Top Stocks tool. It shows you a real-time list of all stocks that have been recently rated by Top-ranking Analysts.
Here are today’s top stock picks, according to analysts. Click on any ticker to thoroughly research the stock before you decide whether to add it to your portfolio.
Akero Therapeutics (NASDAQ:AKRO) – This is a clinical-stage company that develops treatments for patients facing severe metabolic diseases. Yesterday, H.C. Wainwright Analyst Ed Arce reiterated a Buy rating on the stock with a price target of $40. Interestingly, all five Top Analysts who rated the stock gave it a Buy. Collectively, their 12-month price targets imply an upside of nearly 108%.
Crinetics Pharmaceuticals (NASDAQ:CRNX) – This pharmaceutical company focuses on the development of essential therapies for individuals suffering from endocrine diseases. Yesterday, JMP Securities Analyst Jonathan Wolleben reiterated a Buy rating on the stock with a price target of $50. In the last three months, all six Top Analysts covering the stock have rated it a Buy. Taken together, their 12-month price targets imply an upside of about 35%.
Arvinas Holding Company (NASDAQ:ARVN) – This is a clinical-stage biotechnology company that develops novel therapeutics through targeted protein degradation. Yesterday, Wells Fargo Analyst Derek Archila upgraded the rating on the stock to Buy and maintained a price target of $63. Interestingly, 10 out of the 11 Top Analysts who recently rated the stock gave it a Buy. Taken together, their 12-month price targets imply an upside of about 34%.
Who are the Top Analysts?
TipRanks ranks financial analysts according to the success rates of their ratings and the average return on each of their ratings. The Top Analysts have each earned a five-star ranking, thanks to the accuracy and profitability of their ratings over time.
See real-time analyst rankings and learn more about the performance of Top Analysts on TipRanks’ Top Wall Street Analysts page.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Akero Therapeutics (NASDAQ:AKRO) – This is a clinical-stage company that develops treatments for patients facing severe metabolic diseases. Yesterday, JMP Securities Analyst Jonathan Wolleben reiterated a Buy rating on the stock with a price target of $50. Yesterday, Wells Fargo Analyst Derek Archila upgraded the rating on the stock to Buy and maintained a price target of $63. | According to Top Wall Street Analysts, the three stocks listed below are Strong Buys. Interestingly, 10 out of the 11 Top Analysts who recently rated the stock gave it a Buy. See real-time analyst rankings and learn more about the performance of Top Analysts on TipRanks’ Top Wall Street Analysts page. | Yesterday, H.C. Wainwright Analyst Ed Arce reiterated a Buy rating on the stock with a price target of $40. Yesterday, JMP Securities Analyst Jonathan Wolleben reiterated a Buy rating on the stock with a price target of $50. See real-time analyst rankings and learn more about the performance of Top Analysts on TipRanks’ Top Wall Street Analysts page. | Which stocks are best to buy now? Interestingly, all five Top Analysts who rated the stock gave it a Buy. Who are the Top Analysts? | f8a30249-92a9-40eb-aee1-f74350b9f8ba |
710546.0 | 2023-12-16 17:00:00 UTC | 3 FAANG Stocks With 30% to 53% Upside in 2024, According to a Trio of Wall Street Analysts | DCOMP | https://www.nasdaq.com/articles/3-faang-stocks-with-30-to-53-upside-in-2024-according-to-a-trio-of-wall-street-analysts | nan | nan | Though volatility is inherent on Wall Street, things have been especially erratic over the past four years. The COVID-19 crash, 2022 bear market, and investment euphoria of 2021 all whipsawed equities.
When uncertainty becomes the norm, both professional and everyday investors tend to seek out the safety of companies that offer a history of outperformance. For the past decade, it's the FAANG stocks that have fit the bill.
Image source: Getty Images.
When I say "FAANG," I'm referring to:
Facebook, which is now a subsidiary of Meta Platforms (NASDAQ: META)
Apple (NASDAQ: AAPL)
Amazon (NASDAQ: AMZN)
Netflix (NASDAQ: NFLX)
Google, which is now a subsidiary of Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG)
On top of running circles around the benchmark S&P 500 over the trailing decade, the FAANG stocks bring clearly identifiable, and often sustainable, competitive advantages to the table. For example:
Meta Platforms is the world's leading social media platform and is responsible for drawing in nearly 4 billion unique users each month.
Apple is the dominant force in the U.S. smartphone arena. It also has the top capital-return program among publicly traded companies -- more than $600 billion in common-stock purchases since the start of 2013.
Amazon is the world's premier online marketplace and accounts for roughly $0.40 of every $1 spent in online retail sales in the United States.
Netflix is the domestic and international share leader in streaming services. No streaming company comes remotely close to the sheer amount of original programming Netflix has produced.
Alphabet's internet search engine Google is a virtual monopoly. It was responsible for almost 92% of global search share in November.
The fact that these are industry-leading businesses with potentially sustainable advantages isn't lost on Wall Street or its analysts. As we prepare to open the curtain on 2024, three of these FAANG stocks offer between 30% and 53% upside, according to a trio of Wall Street analysts.
Alphabet: Implied upside of 36%
The first FAANG stock that could be putting a smile on the faces of its shareholders in 2024 is Alphabet, the parent company of Google, autonomous vehicle company Waymo, and streaming platform YouTube.
According to analyst Ross Sandler of Barclays, shares of this trillion-dollar behemoth can reach $180 in the new year. This would represent upside of 36%, relative to where Alphabet's Class A shares (GOOGL) closed on Dec. 15.
As noted, Alphabet's most front-and-center advantage is its leading search engine. Based on data from GlobalStats, it's been more than eight years since Google accounted for less than a 90% share of worldwide internet search. This makes it the unquestioned go-to for advertisers looking to target consumers.
But what investors may be overlooking is Alphabet's substantially higher margin ancillary segments, which are positioned to drive its future growth. For instance, YouTube is the second most-visited social site behind Facebook. Daily views of short-form videos, known as Shorts, have soared from 6.5 billion in 2021 to more than 50 billion this year. YouTube should have no trouble commanding significant ad-pricing power.
Perhaps even more exciting is what's happened with Google Cloud. Estimates from tech analysis company Canalys show that Google Cloud comprised 10% of worldwide cloud infrastructure service spend during the third quarter. Following years of losses, Google Cloud has delivered three consecutive quarters of operating profit. Since cloud margins are substantially higher than advertising margins, the expectation is that Google Cloud will lead Alphabet's cash flow meaningfully higher as the decade wears on.
There's also an enticing value proposition with Alphabet. Shares can currently be purchased for 13.7 times forward-year cash flow, a clear discount to its average multiple of closer to 18 times cash flow over the previous five-year period.
Meta Platforms: Implied upside of 30%
A second FAANG stock that offers significant upside in the new year is Meta Platforms, the parent of Facebook, Instagram, WhatsApp, and Threads, among other social-themed sites.
The bull among all other optimists on Wall Street is analyst Ivan Feinseth of Tigress Financial. Feinseth believes Meta's shares can reach $435 in 2024. After more than tripling from their 2022 bear market low, Meta's shares could propel another 30% higher if Feinseth is correct.
Since Meta generates more than 98% of its revenue from advertising, there had been some fear that ad spending would weaken due to recessionary concerns. Thankfully, history is working in the company's favor.
Recessions tend to be short-lived, with none of the 12 downturns in the U.S. economy since World War II lasting longer than 18 months. By comparison, most periods of expansion are measured in multiple years, with some even lasting a decade. Ad-driven businesses like Meta Platforms are geared for long-term success.
It also doesn't hurt that Meta Platforms' family of apps attracted 3.96 billion monthly active users in the September-ended quarter. Advertisers are well aware that no other social media company gives them access to more eyeballs than Meta. That's good news for the company's ad-pricing power.
Meta's cash flow and balance sheet represent additional reasons the company could feasibly reach Feinseth's lofty price target. It ended the third quarter with $61.1 billion in cash, cash equivalents, and marketable securities, as well as generated $51.7 billion in net cash from operations through the first nine months of 2023. A cash-rich balance sheet gives Meta and CEO Mark Zuckerberg the luxury of taking risks, which includes spending billions of dollars each quarter on metaverse and augmented/virtual reality innovations.
Image source: Amazon.
Amazon: Implied upside of 53%
The third FAANG stock that offers abundant upside in 2024, at least according to one Wall Street analyst, is e-commerce leader Amazon. Redburn Atlantic's Alex Haissl foresees shares of Amazon climbing to $230 in the new year, which would be 53% above where the company's stock closed on Dec. 15.
Similar to Meta, shares of Amazon have been held back by the expectation of a U.S. recession taking place. Amazon's top revenue segment is its online marketplace. When downturns occur in the U.S. economy, it's perfectly normal for consumers and businesses to spend less.
But there's a very big difference between where Amazon collects its revenue and where it generates most of its operating income and cash flow. Although its e-commerce marketplace is the face of the company, it's ultimately a low-margin operating segment. Amazon brings in the lion's share of its cash flow from a couple of its ancillary operating divisions.
Nothing is more important than Amazon Web Services (AWS), which accounted for an astonishing 31% of worldwide cloud infrastructure service spending during the third quarter, per Canalys. Enterprise cloud spending is still ramping up, which means a sustained double-digit growth opportunity likely awaits AWS. Despite accounting for just a sixth of Amazon's net sales, AWS regularly contributes 50% to 100% of Amazon's operating income.
Don't overlook Amazon's subscription services, either. The company surpassed 200 million global Prime subscribers in April 2021 and has almost certainly added to this figure since. The e-commerce marketplace continues to grow in popularity, and Amazon is now the exclusive home of Thursday Night Football.
To somewhat keep with this theme, Amazon is relatively inexpensive. Throughout the 2010s, it closed out each year at a multiple of 23 to 37 times its operating cash flow. Investors can purchase shares of Amazon right now for roughly 13 times forward-year cash flow. That's the cheapest this online juggernaut has ever traded, relative to its future cash flow.
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Sean Williams has positions in Alphabet, Amazon, and Meta Platforms. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, and Netflix. The Motley Fool recommends Barclays Plc. 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. | It also doesn't hurt that Meta Platforms' family of apps attracted 3.96 billion monthly active users in the September-ended quarter. Meta's cash flow and balance sheet represent additional reasons the company could feasibly reach Feinseth's lofty price target. A cash-rich balance sheet gives Meta and CEO Mark Zuckerberg the luxury of taking risks, which includes spending billions of dollars each quarter on metaverse and augmented/virtual reality innovations. | When I say "FAANG," I'm referring to: Facebook, which is now a subsidiary of Meta Platforms (NASDAQ: META) Apple (NASDAQ: AAPL) Amazon (NASDAQ: AMZN) Netflix (NASDAQ: NFLX) Google, which is now a subsidiary of Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) On top of running circles around the benchmark S&P 500 over the trailing decade, the FAANG stocks bring clearly identifiable, and often sustainable, competitive advantages to the table. Since cloud margins are substantially higher than advertising margins, the expectation is that Google Cloud will lead Alphabet's cash flow meaningfully higher as the decade wears on. Meta Platforms: Implied upside of 30% A second FAANG stock that offers significant upside in the new year is Meta Platforms, the parent of Facebook, Instagram, WhatsApp, and Threads, among other social-themed sites. | When I say "FAANG," I'm referring to: Facebook, which is now a subsidiary of Meta Platforms (NASDAQ: META) Apple (NASDAQ: AAPL) Amazon (NASDAQ: AMZN) Netflix (NASDAQ: NFLX) Google, which is now a subsidiary of Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) On top of running circles around the benchmark S&P 500 over the trailing decade, the FAANG stocks bring clearly identifiable, and often sustainable, competitive advantages to the table. Alphabet: Implied upside of 36% The first FAANG stock that could be putting a smile on the faces of its shareholders in 2024 is Alphabet, the parent company of Google, autonomous vehicle company Waymo, and streaming platform YouTube. 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. | For example: Meta Platforms is the world's leading social media platform and is responsible for drawing in nearly 4 billion unique users each month. It ended the third quarter with $61.1 billion in cash, cash equivalents, and marketable securities, as well as generated $51.7 billion in net cash from operations through the first nine months of 2023. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, and Netflix. | 0c9e026d-91b5-4aac-aff5-a8a08dd41e2e |
710547.0 | 2023-12-16 17:00:00 UTC | Best Income Stocks to Buy for December 20th | DCOMP | https://www.nasdaq.com/articles/best-income-stocks-to-buy-for-december-20th-1 | nan | nan | Here are three stocks with buy rank and strong income characteristics for investors to consider today, December 20:
Stewart Information Services Corporation STC: This company which provides title insurance and real estate transaction related services has witnessed the Zacks Consensus Estimate for its current year earnings increasing 29% the last 60 days.
Stewart Information Services Corporation Price and Consensus
Stewart Information Services Corporation price-consensus-chart | Stewart Information Services Corporation Quote
This Zacks Rank #1 company has a dividend yield of 3.4%, compared with the industry average of 0.3%.
Stewart Information Services Corporation Dividend Yield (TTM)
Stewart Information Services Corporation dividend-yield-ttm | Stewart Information Services Corporation Quote
MINISO Group Holding Limited MNSO: This investment holding company has witnessed the Zacks Consensus Estimate for its current year earnings increasing 9.8% the last 60 days.
MINISO Group Holding Limited Unsponsored ADR Price and Consensus
MINISO Group Holding Limited Unsponsored ADR price-consensus-chart | MINISO Group Holding Limited Unsponsored ADR Quote
This Zacks Rank #1 company has a dividend yield of 2.0%, compared with the industry average of 0.0%.
MINISO Group Holding Limited Unsponsored ADR Dividend Yield (TTM)
MINISO Group Holding Limited Unsponsored ADR dividend-yield-ttm | MINISO Group Holding Limited Unsponsored ADR Quote
Clear Secure, Inc. YOU: This identity platform provider has witnessed the Zacks Consensus Estimate for its current year earnings increasing 26.2% the last 60 days.
CLEAR Secure, Inc. Price and Consensus
CLEAR Secure, Inc. price-consensus-chart | CLEAR Secure, Inc. Quote
This Zacks Rank #1 company has a dividend yield of 1.6%, compared with the industry average of 0.0%.
CLEAR Secure, Inc. Dividend Yield (TTM)
CLEAR Secure, Inc. dividend-yield-ttm | CLEAR Secure, Inc. Quote
See the full list of top ranked stocks here.
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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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Stewart Information Services Corporation (STC) : Free Stock Analysis Report
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CLEAR Secure, Inc. (YOU) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Here are three stocks with buy rank and strong income characteristics for investors to consider today, December 20: Stewart Information Services Corporation STC: This company which provides title insurance and real estate transaction related services has witnessed the Zacks Consensus Estimate for its current year earnings increasing 29% the last 60 days. MINISO Group Holding Limited Unsponsored ADR Dividend Yield (TTM) MINISO Group Holding Limited Unsponsored ADR dividend-yield-ttm | MINISO Group Holding Limited Unsponsored ADR Quote Clear Secure, Inc. YOU: This identity platform provider has witnessed the Zacks Consensus Estimate for its current year earnings increasing 26.2% the last 60 days. 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%. | Stewart Information Services Corporation Dividend Yield (TTM) Stewart Information Services Corporation dividend-yield-ttm | Stewart Information Services Corporation Quote MINISO Group Holding Limited MNSO: This investment holding company has witnessed the Zacks Consensus Estimate for its current year earnings increasing 9.8% the last 60 days. MINISO Group Holding Limited Unsponsored ADR Dividend Yield (TTM) MINISO Group Holding Limited Unsponsored ADR dividend-yield-ttm | MINISO Group Holding Limited Unsponsored ADR Quote Clear Secure, Inc. YOU: This identity platform provider has witnessed the Zacks Consensus Estimate for its current year earnings increasing 26.2% the last 60 days. Click to get this free report Stewart Information Services Corporation (STC) : Free Stock Analysis Report MINISO Group Holding Limited Unsponsored ADR (MNSO) : Free Stock Analysis Report CLEAR Secure, Inc. (YOU) : Free Stock Analysis Report To read this article on Zacks.com click here. | Stewart Information Services Corporation Dividend Yield (TTM) Stewart Information Services Corporation dividend-yield-ttm | Stewart Information Services Corporation Quote MINISO Group Holding Limited MNSO: This investment holding company has witnessed the Zacks Consensus Estimate for its current year earnings increasing 9.8% the last 60 days. MINISO Group Holding Limited Unsponsored ADR Dividend Yield (TTM) MINISO Group Holding Limited Unsponsored ADR dividend-yield-ttm | MINISO Group Holding Limited Unsponsored ADR Quote Clear Secure, Inc. YOU: This identity platform provider has witnessed the Zacks Consensus Estimate for its current year earnings increasing 26.2% the last 60 days. Click to get this free report Stewart Information Services Corporation (STC) : Free Stock Analysis Report MINISO Group Holding Limited Unsponsored ADR (MNSO) : Free Stock Analysis Report CLEAR Secure, Inc. (YOU) : Free Stock Analysis Report To read this article on Zacks.com click here. | Stewart Information Services Corporation Dividend Yield (TTM) Stewart Information Services Corporation dividend-yield-ttm | Stewart Information Services Corporation Quote MINISO Group Holding Limited MNSO: This investment holding company has witnessed the Zacks Consensus Estimate for its current year earnings increasing 9.8% the last 60 days. MINISO Group Holding Limited Unsponsored ADR Dividend Yield (TTM) MINISO Group Holding Limited Unsponsored ADR dividend-yield-ttm | MINISO Group Holding Limited Unsponsored ADR Quote Clear Secure, Inc. YOU: This identity platform provider has witnessed the Zacks Consensus Estimate for its current year earnings increasing 26.2% the last 60 days. Be First to New Top 10 Stocks >> Want the latest recommendations from Zacks Investment Research? | 75007639-df6d-41e9-8315-030a766050b0 |
710548.0 | 2023-12-16 17:00:00 UTC | Best Value Stocks to Buy for December 20th | DCOMP | https://www.nasdaq.com/articles/best-value-stocks-to-buy-for-december-20th-1 | nan | nan | Here are three stocks with buy rank and strong value characteristics for investors to consider today, December 20:
Runway Growth Finance Corp. RWAY: This business development company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 5.3% over the last 60 days.
Runway Growth Finance Corp. Price and Consensus
Runway Growth Finance Corp. price-consensus-chart | Runway Growth Finance Corp. Quote
Runway has a price-to-earnings ratio (P/E) of 6.43, compared with 8.00 for the industry. The company possesses a Value Score of B.
Runway Growth Finance Corp. PE Ratio (TTM)
Runway Growth Finance Corp. pe-ratio-ttm | Runway Growth Finance Corp. Quote
KT Corporation KT: This telecom solutions provider carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its next year earnings increasing 1.6% over the last 60 days.
KT Corporation Price and Consensus
KT Corporation price-consensus-chart | KT Corporation Quote
KT has a price-to-earnings ratio (P/E) of 7.19 compared with 14.80 for the industry. The company possesses a Value Score of A.
KT Corporation PE Ratio (TTM)
KT Corporation pe-ratio-ttm | KT Corporation Quote
Orrstown Financial Services, Inc. ORRF: This holding company for Orrstown Bank carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its next year earnings increasing 2.9% over the last 60 days.
Orrstown Financial Services Inc Price and Consensus
Orrstown Financial Services Inc price-consensus-chart | Orrstown Financial Services Inc Quote
Orrstown Financial Services has a price-to-earnings ratio (P/E) of 8.25 compared with 11.20 for the industry. The company possesses a Value Score of B.
Orrstown Financial Services Inc PE Ratio (TTM)
Orrstown Financial Services Inc pe-ratio-ttm | Orrstown Financial Services Inc Quote
See the full list of top ranked stocks here.
Learn more about the Value score and how it is calculated here.
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
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
KT Corporation (KT) : Free Stock Analysis Report
Orrstown Financial Services Inc (ORRF) : Free Stock Analysis Report
Runway Growth Finance Corp. (RWAY) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Here are three stocks with buy rank and strong value characteristics for investors to consider today, December 20: Runway Growth Finance Corp. RWAY: This business development company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 5.3% over the last 60 days. The company possesses a Value Score of B. Runway Growth Finance Corp. PE Ratio (TTM) Runway Growth Finance Corp. pe-ratio-ttm | Runway Growth Finance Corp. Quote KT Corporation KT: This telecom solutions provider carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its next year earnings increasing 1.6% over the last 60 days. 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 possesses a Value Score of B. Runway Growth Finance Corp. PE Ratio (TTM) Runway Growth Finance Corp. pe-ratio-ttm | Runway Growth Finance Corp. Quote KT Corporation KT: This telecom solutions provider carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its next year earnings increasing 1.6% over the last 60 days. The company possesses a Value Score of A. KT Corporation PE Ratio (TTM) KT Corporation pe-ratio-ttm | KT Corporation Quote Orrstown Financial Services, Inc. ORRF: This holding company for Orrstown Bank carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its next year earnings increasing 2.9% over the last 60 days. Click to get this free report KT Corporation (KT) : Free Stock Analysis Report Orrstown Financial Services Inc (ORRF) : Free Stock Analysis Report Runway Growth Finance Corp. (RWAY) : Free Stock Analysis Report To read this article on Zacks.com click here. | The company possesses a Value Score of B. Runway Growth Finance Corp. PE Ratio (TTM) Runway Growth Finance Corp. pe-ratio-ttm | Runway Growth Finance Corp. Quote KT Corporation KT: This telecom solutions provider carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its next year earnings increasing 1.6% over the last 60 days. The company possesses a Value Score of A. KT Corporation PE Ratio (TTM) KT Corporation pe-ratio-ttm | KT Corporation Quote Orrstown Financial Services, Inc. ORRF: This holding company for Orrstown Bank carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its next year earnings increasing 2.9% over the last 60 days. Click to get this free report KT Corporation (KT) : Free Stock Analysis Report Orrstown Financial Services Inc (ORRF) : Free Stock Analysis Report Runway Growth Finance Corp. (RWAY) : Free Stock Analysis Report To read this article on Zacks.com click here. | Here are three stocks with buy rank and strong value characteristics for investors to consider today, December 20: Runway Growth Finance Corp. RWAY: This business development company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 5.3% over the last 60 days. The company possesses a Value Score of A. KT Corporation PE Ratio (TTM) KT Corporation pe-ratio-ttm | KT Corporation Quote Orrstown Financial Services, Inc. ORRF: This holding company for Orrstown Bank carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its next year earnings increasing 2.9% over the last 60 days. Be First to New Top 10 Stocks >> Want the latest recommendations from Zacks Investment Research? | b4f7dd75-e8d7-4053-88df-c7b07a29cad6 |
710549.0 | 2023-12-16 17:00:00 UTC | Norwegian November gas output beats forecasts while oil lags | DCOMP | https://www.nasdaq.com/articles/norwegian-november-gas-output-beats-forecasts-while-oil-lags | nan | nan | Adds graphic
OSLO, Dec 20 (Reuters) - Norway's natural gas output rose in November, beating an official forecast, while crude oil production lagged expectations, the Norwegian Petroleum Directorate (NPD) said on Wednesday.
Natural gas production in November rose to 362.8 million cubic metres (mcm) per day from 328.7 mcm a month ago, and exceeded a forecast of 356.1 mcm by 1.9%, the regulator said on its website.
Crude oil output rose to 1.78 million barrels per day (bpd) in November from 1.77 million bpd in October, and below a forecast of 1.84 million bpd, NPD's preliminary data showed.
Norway gas production https://tmsnrt.rs/3NzFbKz
(Reporting by Nora Buli and Terje Solsvik, editing by Nerijus Adomaitis)
((Nora.Buli@thomsonreuters.com; (+47) 21 04 05 56; Reuters Messaging: nora.buli.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 graphic OSLO, Dec 20 (Reuters) - Norway's natural gas output rose in November, beating an official forecast, while crude oil production lagged expectations, the Norwegian Petroleum Directorate (NPD) said on Wednesday. Crude oil output rose to 1.78 million barrels per day (bpd) in November from 1.77 million bpd in October, and below a forecast of 1.84 million bpd, NPD's preliminary data showed. Norway gas production https://tmsnrt.rs/3NzFbKz (Reporting by Nora Buli and Terje Solsvik, editing by Nerijus Adomaitis) ((Nora.Buli@thomsonreuters.com; (+47) 21 04 05 56; Reuters Messaging: nora.buli.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 graphic OSLO, Dec 20 (Reuters) - Norway's natural gas output rose in November, beating an official forecast, while crude oil production lagged expectations, the Norwegian Petroleum Directorate (NPD) said on Wednesday. Natural gas production in November rose to 362.8 million cubic metres (mcm) per day from 328.7 mcm a month ago, and exceeded a forecast of 356.1 mcm by 1.9%, the regulator said on its website. Crude oil output rose to 1.78 million barrels per day (bpd) in November from 1.77 million bpd in October, and below a forecast of 1.84 million bpd, NPD's preliminary data showed. | Adds graphic OSLO, Dec 20 (Reuters) - Norway's natural gas output rose in November, beating an official forecast, while crude oil production lagged expectations, the Norwegian Petroleum Directorate (NPD) said on Wednesday. Natural gas production in November rose to 362.8 million cubic metres (mcm) per day from 328.7 mcm a month ago, and exceeded a forecast of 356.1 mcm by 1.9%, the regulator said on its website. Crude oil output rose to 1.78 million barrels per day (bpd) in November from 1.77 million bpd in October, and below a forecast of 1.84 million bpd, NPD's preliminary data showed. | Adds graphic OSLO, Dec 20 (Reuters) - Norway's natural gas output rose in November, beating an official forecast, while crude oil production lagged expectations, the Norwegian Petroleum Directorate (NPD) said on Wednesday. Natural gas production in November rose to 362.8 million cubic metres (mcm) per day from 328.7 mcm a month ago, and exceeded a forecast of 356.1 mcm by 1.9%, the regulator said on its website. Crude oil output rose to 1.78 million barrels per day (bpd) in November from 1.77 million bpd in October, and below a forecast of 1.84 million bpd, NPD's preliminary data showed. | 42f27e6d-2d33-4989-802a-bd631b54f77e |
710550.0 | 2023-12-16 16:00:00 UTC | European shares rise as UK, German inflation data bolster rate cut bets | DCOMP | https://www.nasdaq.com/articles/european-shares-rise-as-uk-german-inflation-data-bolster-rate-cut-bets | nan | nan | For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window
Dec 20 (Reuters) - European shares gained on Wednesday on rising bets of interest rate cuts following softer inflation data from the UK and Germany, while a rise in commodity prices lifted resource stocks.
The pan-European STOXX 600 .STOXX was up 0.3% by 0818 GMT, with energy and telecom sectors leading gains.
Data showed German producer prices fell more than expected in November, while British inflation dropped way more than expected last month, with the headline rate falling to its September 2021 lows, strengthening the case for rate cuts.
The German DAX .GDAXI was up 0.2%, while the UK's FTSE 100 .FTSE jumped 1.3%.
Energy .SXEP shares rose 1.1%, while basic resources .SXPP stocks gained 0.4% on higher prices of most commodities.
TelefonicaTEF.MC jumped 6.3% as the Spanish government is set to acquire around 10% stake in the telecoms giant. The broader sector .SXKP was up 1%.
Deutsche Post DHLn.DE lost 1.3% after U.S. peer FedExFDX.N cut its full-year revenue forecast and reported lower-than-expected quarterly profit.
(Reporting by Khushi Singh; Editing by Eileen Soreng)
((Khushi.Singh@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. | For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Dec 20 (Reuters) - European shares gained on Wednesday on rising bets of interest rate cuts following softer inflation data from the UK and Germany, while a rise in commodity prices lifted resource stocks. Energy .SXEP shares rose 1.1%, while basic resources .SXPP stocks gained 0.4% on higher prices of most commodities. Deutsche Post DHLn.DE lost 1.3% after U.S. peer FedExFDX.N cut its full-year revenue forecast and reported lower-than-expected quarterly profit. | For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Dec 20 (Reuters) - European shares gained on Wednesday on rising bets of interest rate cuts following softer inflation data from the UK and Germany, while a rise in commodity prices lifted resource stocks. The pan-European STOXX 600 .STOXX was up 0.3% by 0818 GMT, with energy and telecom sectors leading gains. Energy .SXEP shares rose 1.1%, while basic resources .SXPP stocks gained 0.4% on higher prices of most commodities. | For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Dec 20 (Reuters) - European shares gained on Wednesday on rising bets of interest rate cuts following softer inflation data from the UK and Germany, while a rise in commodity prices lifted resource stocks. Data showed German producer prices fell more than expected in November, while British inflation dropped way more than expected last month, with the headline rate falling to its September 2021 lows, strengthening the case for rate cuts. (Reporting by Khushi Singh; Editing by Eileen Soreng) ((Khushi.Singh@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. | For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Dec 20 (Reuters) - European shares gained on Wednesday on rising bets of interest rate cuts following softer inflation data from the UK and Germany, while a rise in commodity prices lifted resource stocks. The pan-European STOXX 600 .STOXX was up 0.3% by 0818 GMT, with energy and telecom sectors leading gains. The German DAX .GDAXI was up 0.2%, while the UK's FTSE 100 .FTSE jumped 1.3%. | 4c47e99b-6551-493b-a3e3-e2594f7ba9a1 |
710551.0 | 2023-12-16 16:00:00 UTC | Telefonica's shares soar after Spanish government unveils plan to buy stake | DCOMP | https://www.nasdaq.com/articles/telefonicas-shares-soar-after-spanish-government-unveils-plan-to-buy-stake | nan | nan | Adds detail, comments from economy minister, updates share price
MADRID, Dec 20 (Reuters) - Telefonica's TEF.MC shares soared on Wednesday morning after the Spanish government said on Tuesday it would buy a stake of up to 10% in the company in a counterbalance to a similar acquisition by Saudi Arabia's STC 7010.SE.
Telefonica shares were up 5.5% at 3.763 euros in early trading, on track for their best day since Nov. 22, 2021 and the top gainer in the STOXX 600 index .STOXX.
State holding company SEPI said on Tuesday it would buy the shares in a way that would minimise the impact on market price though it did not give a timeframe. A source close to the matter told Reuters it would buy small quantities of shares over a two-month period.
A 10% stake had a market value of around 2 billion euros ($2.19 billion) as of Tuesday evening.
The move is a response to the STC announcing it had built a 9.9% stake in Telefonica in September.
As Telefonica is considered a defence service provider, the Defence Ministry has a say in acquisitions and holdings between 5% and 10% unless the buyer commits to not requesting a seat on the board.
In October, SEPI said it was considering buying a stake in Telefonica, which was seen as a government attempt to balance the potential STC influence in the company.
Economy Minister Nadia Calvino said on Tuesday SEPI's presence in Telefonica -- it will become its largest shareholder -- would "reinforce the company's ownership stability".
The government said its acquisition in Telefonica would be in line with the stakes which its large neighbours, such as Germany, France and Italy, hold in their respective large telecom companies.
($1 = 0.9118 euros)
(Reporting by Jakub Olesiuk, Belen Carreno and Jesus Aguado; editing by Inti Landauro and Jason Neely)
((jakub.olesiuk@thomsonreuters.com; +48 58 769 66 00;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | State holding company SEPI said on Tuesday it would buy the shares in a way that would minimise the impact on market price though it did not give a timeframe. In October, SEPI said it was considering buying a stake in Telefonica, which was seen as a government attempt to balance the potential STC influence in the company. Economy Minister Nadia Calvino said on Tuesday SEPI's presence in Telefonica -- it will become its largest shareholder -- would "reinforce the company's ownership stability". | Adds detail, comments from economy minister, updates share price MADRID, Dec 20 (Reuters) - Telefonica's TEF.MC shares soared on Wednesday morning after the Spanish government said on Tuesday it would buy a stake of up to 10% in the company in a counterbalance to a similar acquisition by Saudi Arabia's STC 7010.SE. State holding company SEPI said on Tuesday it would buy the shares in a way that would minimise the impact on market price though it did not give a timeframe. A 10% stake had a market value of around 2 billion euros ($2.19 billion) as of Tuesday evening. | Adds detail, comments from economy minister, updates share price MADRID, Dec 20 (Reuters) - Telefonica's TEF.MC shares soared on Wednesday morning after the Spanish government said on Tuesday it would buy a stake of up to 10% in the company in a counterbalance to a similar acquisition by Saudi Arabia's STC 7010.SE. In October, SEPI said it was considering buying a stake in Telefonica, which was seen as a government attempt to balance the potential STC influence in the company. The government said its acquisition in Telefonica would be in line with the stakes which its large neighbours, such as Germany, France and Italy, hold in their respective large telecom companies. | Adds detail, comments from economy minister, updates share price MADRID, Dec 20 (Reuters) - Telefonica's TEF.MC shares soared on Wednesday morning after the Spanish government said on Tuesday it would buy a stake of up to 10% in the company in a counterbalance to a similar acquisition by Saudi Arabia's STC 7010.SE. Telefonica shares were up 5.5% at 3.763 euros in early trading, on track for their best day since Nov. 22, 2021 and the top gainer in the STOXX 600 index .STOXX. State holding company SEPI said on Tuesday it would buy the shares in a way that would minimise the impact on market price though it did not give a timeframe. | e48335db-f922-44fe-b8f2-abae33ab78b6 |
710552.0 | 2023-12-16 16:00:00 UTC | The Zacks Analyst Blog Highlights Alamos Gold, Galiano Gold and New Gold | DCOMP | https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights-alamos-gold-galiano-gold-and-new-gold | nan | nan | For Immediate Release
Chicago, IL – December 20, 2023 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Alamos Gold AGI, Galiano Gold GAU and New Gold NGD.
Here are highlights from Tuesday’s Analyst Blog:
3 Gold Mining Stocks to Buy as Rally Expected to Stretch into Next Year
Gold seems poised to wrap up 2023 on a solid note, with the current trading price around $2,023 an ounce. The yellow metal has exhibited resilience, registering an 11.5% increase since the beginning of the year, outpacing commodities, bonds and the majority of stock markets.
Despite being pitted against record-high interest rates, gold has thrived this year on safe-haven demand triggered by the banking crisis earlier in the year and the ongoing geopolitical instability. After experiencing declines in the preceding two years, 2023 marks a turnaround for gold, highlighting its appeal as a sought-after asset amid geopolitical and economic uncertainties.
Analysts anticipate the positive momentum to carry into 2024, with gold prices poised to reach new highs and potentially sustain levels above $2,000 per ounce. This optimistic outlook is attributed to heightened geopolitical uncertainty, a potentially weaker U.S. dollar and prospects of interest rate cuts. Central bank buying is also expected to provide additional support to gold.
For those considering investment opportunities, we recommend exploring stocks such as Alamos Gold, Galiano Gold and New Gold.
Gold’s Run This Year
Gold's performance in 2023 has been marked by several notable fluctuations. Starting the year around $1,839 an ounce, gold experienced an upward trend, supported by a weak U.S. dollar and a drop in the U.S 10-year Treasury yield. However, the announcement of the first rate hike by the Federal Reserve on Feb 1 resulted in gold prices dropping to a low of $1,809 an ounce as the dollar and Treasury yields strengthened.
In March, amid the banking crisis triggered by the collapse of Silicon Valley Bank and Signature Bank in the United States, gold regained prominence, surpassing the $2,000-an-ounce mark.
As confidence gradually returned to the banking sector and further rate hikes occurred in May and July, the gains in gold prices moderated. By the end of the third quarter, following the Fed's decision on Sepr 20 to maintain interest rates between 5.25% and 5.5%, gold prices settled around $1,866 an ounce.
The fourth quarter saw a breakthrough for gold, spurred by the Oct 7 attacks by Hamas on Israel. The metal gained momentum due to the Israel-Hamas conflict, surpassing the $1,900 mark.
Gold peaked at an all-time record of $2,152 an ounce on Dec 4, supported by expectations of interest rate cuts. The metal has gained as the Federal Reserve held rates steady and signaled three rate cuts coming in 2024 and beyond.
To sum up, so far, gold prices have ranged from a low of $1,808 an ounce to a high of $2,152, averaging at $1,950.
Expectations for 2024
Analysts expect gold prices to be supported above the $2,000-per-ounce level in 2024, driven by expectations of a more accommodative monetary policy from the Federal Reserve. This sentiment has been amplified by slowdowns in inflation and a cooling job market. Lower interest rates could lead to a weaker U.S. dollar, making gold more attractive as an investment,
The analysts also foresee substantial support for gold prices in the coming year from robust central bank purchases. In the third quarter alone, central banks acquired 337 tons of gold, marking the third-highest quarterly total on record. The World Gold Council's 2023 survey indicates that 24% of central banks plan to increase their gold reserves over the next 12 months. The survey reveals a shift in central banks' sentiments, with a more optimistic view toward gold than the previous surveys, as 62% believe that gold will have a greater share of total reserves than 46% last year.
Against a backdrop of ongoing geopolitical instability and major global elections, including those in the United States, EU, India and Taiwan, analysts perceive that investors’ need for portfolio hedges will likely be higher than normal.
Additionally, the demand for gold in 2024 is expected to be underpinned by growing interest in jewelry and technology. Demand for physical gold is seasonally higher starting in the later part of the year, aided by the festival and wedding season in India, followed by the Chinese Lunar Year and Valentine's Day. Demand in India has been strong on improving economic momentum and consumer confidence.
India and China, which roughly account for 50% of consumer gold demand, will continue to sustain the demand. The use of gold across energy, healthcare and technology is on the rise. Therefore, there will be an eventual demand-supply imbalance that is likely to drive gold prices, in turn, aiding the industry.
3 Gold Stocks to Buy
We have handpicked three gold-mining stocks, which currently have a Zacks Rank #2 (Buy) and a solid growth potential. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Alamos Gold: The company produced 399,800 ounces of gold in the nine months ended Sep 30, 2023, which puts it on track to deliver record production numbers in 2023. AGI’s efforts to lower costs will help in providing improved margins over the next several years, thereby supporting a strong free cash flow. The company continues to advance on its growth initiatives, including the Phase 3+ Expansion at Island Gold and the Lynn Lake and PDA projects.
In August, it reported the results of an updated Feasibility Study for the Lynn Lake project, which suggests higher average annual gold production of 207,000 ounces over the first five years and 176,000 ounces over the initial ten years — a 23% increase from the 2017 study. In May 2023, the company completed the previously announced acquisition of Manitou Gold Inc. Through this deal, AGI more than tripled its land package around the Island Gold Mine and added significant exploration potential in a relatively underexplored segment of the Michipicoten Greenstone Belt.
The Zacks Consensus Estimate for the Toronto, Canada-based company’s 2023 earnings has moved up 2% over the past 60 days. Earnings estimates indicate an 89% year-over-year increase. AGI has a long-term earnings growth rate of 21.8%. It has a trailing four-quarter earnings surprise of 25.6%, on average.
New Gold: The company delivered third-quarter 2023 consolidated gold-equivalent production of 111,204 ounces — the highest quarterly production since 2021. The company is currently tracking to meet the top end of consolidated production guidance for production and all-in-sustaining costs are tracking to the low end of the guided range. The Rainy River mine continues to deliver per plan, with a continued focus on operational discipline, and cost-control and cost-saving initiatives. The New Afton mine has delivered ahead of plans, as mining from B3 continues to perform above expectations.
NGD has been advancing with development plans for both assets. Rainy River continues to advance the connection ramp to the underground Main Zone from Intrepid. The company is currently evaluating the opportunity to extend C-Zone with minimal capital investment, which would extend New Afton's mine life, and C-Zone's profile of low operating costs and strong cash flow. The company also reported encouraging drill results and exploration plans for the K-Zone and AI-Southeast gold-copper zones. Continued focus on operational discipline and investment in growth projects will aid growth.
The Zacks Consensus Estimate for the Toronto, Canada-based company’s 2024 earnings has been unchanged over the past 60 days. The consensus mark of 6 cents per share indicates a turnaround performance from the loss of 4 cents reported in 2022. The company has a trailing four-quarter earnings surprise of 66.7%, on average.
Galiano Gold: The company’s year-to-date gold production is at 102,130 ounces. It expects full-year gold production to come in at the top end of 120,000-130,000 ounces. The Asanko Gold Mine continues to generate significant cash flows through stockpile processing, which has further strengthened its balance sheet. The Abore pit is on track to deliver higher-grade ore to the processing plant by the second quarter of 2024.
The company has initiated drilling programs at Abore to convert inferred mineral resources to the indicated mineral resource category. It has completed the first phase of infill drilling of inferred mineral resources at Midras South, with the deposit advancing towards a maiden mineral reserve estimate.
At Nkran, GAU has completed a phase 1 mineral resource upgrade and mineral reserve conversion drilling. The company intends to pursue accretive opportunities for growth. It plans to make the Asanko Gold Mine significant in Ghana, and double its annual gold production to 250,000 ounces in 2025.
Headquartered in Vancouver, Canada, Galiano Gold has an expected earnings growth of 500% for the current year. The Zacks Consensus Estimate for the company’s fiscal 2023 earnings has moved up 12.5% over the past 60 days.
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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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New Gold Inc. (NGD) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | However, the announcement of the first rate hike by the Federal Reserve on Feb 1 resulted in gold prices dropping to a low of $1,809 an ounce as the dollar and Treasury yields strengthened. Against a backdrop of ongoing geopolitical instability and major global elections, including those in the United States, EU, India and Taiwan, analysts perceive that investors’ need for portfolio hedges will likely be higher than normal. Through this deal, AGI more than tripled its land package around the Island Gold Mine and added significant exploration potential in a relatively underexplored segment of the Michipicoten Greenstone Belt. | Stocks recently featured in the blog include: Alamos Gold AGI, Galiano Gold GAU and New Gold NGD. The company is currently evaluating the opportunity to extend C-Zone with minimal capital investment, which would extend New Afton's mine life, and C-Zone's profile of low operating costs and strong cash flow. Click to get this free report New Gold Inc. (NGD) : Free Stock Analysis Report Alamos Gold Inc. (AGI) : Free Stock Analysis Report Galiano Gold Inc. (GAU) : Free Stock Analysis Report To read this article on Zacks.com click here. | Stocks recently featured in the blog include: Alamos Gold AGI, Galiano Gold GAU and New Gold NGD. For those considering investment opportunities, we recommend exploring stocks such as Alamos Gold, Galiano Gold and New Gold. Click to get this free report New Gold Inc. (NGD) : Free Stock Analysis Report Alamos Gold Inc. (AGI) : Free Stock Analysis Report Galiano Gold Inc. (GAU) : Free Stock Analysis Report To read this article on Zacks.com click here. | Central bank buying is also expected to provide additional support to gold. For those considering investment opportunities, we recommend exploring stocks such as Alamos Gold, Galiano Gold and New Gold. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. | 1bca2f90-f5ad-4d4e-80ae-f2a0ed9d9e8b |
710553.0 | 2023-12-16 16:00:00 UTC | The Zacks Analyst Blog Highlights Microsoft, Amazon, Alphabet, Adobe and Meta Platforms | DCOMP | https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights-microsoft-amazon-alphabet-adobe-and-meta-platforms | nan | nan | For Immediate Release
Chicago, IL – December 20, 2023 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Microsoft MSFT, Amazon AMZN, Alphabet GOOGL, Adobe ADBE and Meta Platforms META.
Here are highlights from Tuesday’s Analyst Blog:
5 Generative A.I. Stocks Worth Watching in 2024
The generative AI space is heating up with the major players taking more and more interest in it. Moreover, the influx of generative AI-powered chatbots, especially ChatGPT by Microsoft backed startup OpenAI, which took the world by storm in 2023, is expected to continue aiding the generative AI boom in the days ahead.
The ability to interact with humans, respond to questions asked in various languages, generate content, classify data and perform coding on the back of large language models (LLM) remains the main reason behind the solid adoption of these chatbots.
Apart from chatbots, the growing proliferation of generative AI infrastructure as a service that is used for training LLMs and specialized generative AI assistant software, on the back of which, generative AI is set to unleash the next wave of productivity, remains a major positive.
Additionally, the rising demand for generative AI-based cloud solutions, which are designed to make business operations and workflow more efficient, is a plus. Moreover, hyperscalers and large cloud software companies are embracing these solutions to strengthen product portfolios and monetize incrementally.
Strengthening Growth Prospects
Given the aforementioned facts, the underlined technology is set to become essential for various industries like IT services, semiconductor, advertisement, hardware and cloud.
This gives us an idea that the generative AI market is set to experience an explosion of growth in the coming years.
A Fortune Business Insights report shows that the global generative AI market size is expected to reach $667.96 billion by 2030, seeing a CAGR of 47.5% between 2023 and 2030.
Per a report from Bloomberg Intelligence, this particular market is set to hit $1.3 trillion by 2032, by witnessing a CAGR of 42% between 2022 to 2032.
Coming to worldwide spending, an IDC report indicates that enterprise spending on generative AI solutions is set to hit $16 billion in 2023 and reach $143 billion by 2027, registering a CAGR of 73.3% over the 2023-2027 period.
Here, we have focused on tech stocks like Microsoft, Amazon, Alphabet, Adobe and Meta Platforms, which are poised to gain well in 2024 from their heavy investments in generative AI.
Microsoft, which has gained 56.8% on a year-to-date basis, is being propelled by the success of ChatGPT. It is continuously making significant strides by integrating OpenAI's latest LLM, GPT-4, into its Bing search engine and Edge browser. Additionally, Microsoft Azure provides the Azure OpenAI Service, facilitating the seamless application of LLMs and generative AI techniques across various applications.
Further, this Zacks Rank #3 (Hold) company recently announced OpenAI's DALL-E 3 AI image-synthesis model, fully integrated with ChatGPT, which challenges previous models by rendering images with complex descriptions and handling in-image text generation.
Additionally, the launch of enterprise capabilities of Azure OpenAI and Copilots across Microsoft 365, Dynamics 365 and Power Platform is expected to be a game changer.
The Zacks Consensus Estimate for fiscal 2024 revenues is pegged at $242.31 billion, indicating 14.3% growth from fiscal 2023. The consensus estimate for fiscal 2024 earnings stands at $11.13 per share, up 13.5% from the year-ago actual figure.
Amazon, which currently sports a Zacks Rank #1 (Strong Buy), is leaving no stone unturned to bolster its generative AI capabilities. It recently announced the general availability of its fully managed service called Amazon Bedrock, which provides seamless access to high-performing foundation models (“FM”) from AI companies through an API.
The company also made the Amazon Titan Embeddings model generally available. It added Meta’s Llama 2 to Amazon Bedrock as a new model, which will be available through API. You can see the complete list of today’s Zacks #1 Rank stocks here.
The e-commerce giant’s investment plans in Anthropic remain noteworthy. Amazon will invest $4 billion to acquire a minority stake in Anthropic. This investment will allow AWS to provide access to Anthropic’s future FMs to its customers. These FMs will be available through Amazon Bedrock.
Further, it recently extended its partnership with NVIDIA to offer NVIDIA GH200 Grace Hopper Superchips, and host NVIDIA DGX Cloud on Amazon Web Services (AWS) for accelerating the training of generative AI and large language models.
Notably, AMZN has gained 83.5% year to date. The Zacks Consensus Estimate for 2024 revenues is pegged at $637.05 billion, indicating 11.6% growth from 2023. The consensus estimate for 2024 earnings stands at $3.55 per share, up 32.7% from the year-ago actual figure.
Alphabet’s Google is constantly making efforts to boost its generative AI offerings. It recently introduced its new, advanced and powerful large language model, namely Gemini, which is available in three different sizes: Gemini Ultra, the largest and most capable one; Gemini Pro, designed to offer scalability across various applications; and Gemini Nano, which is designed for specific tasks and mobile devices.
Further, Google Cloud announced the general availability of its suite of AI-powered assistance tools for code completion and generation called Duet AI for Developers, which provides developers with real-time code suggestions, chat assistance and enterprise-focused customization.
The company is also witnessing strong momentum with Bard, which responds to complicated or open-ended questions in the form of chats and can handle follow-up questions in a conversational manner.
Notably, Alphabet carries a Zacks Rank #3 at present. It has gained 53.9% year to date. The Zacks Consensus Estimate for 2024 revenues is pegged at $283.25 billion, indicating 11.2% growth from 2023. The consensus estimate for 2024 earnings stands at $6.66 per share, up 15.8% from the year-ago actual figure.
Adobe, which has returned 78% year to date, is also gaining well on its growing generative AI efforts. This Zacks Rank #3 company recently announced the commercial release of its family of creative, generative AI models, Firefly.
Adobe Firefly supports text prompts in over 100 languages, helps creators make several changes to their content, creates endless variations seamlessly and bolsters image generation capabilities.
Further, it enables content creators to use their words, images, audio, vectors, videos and 3D. Also, Firefly allows creators to use their creative ingredients like brushes, color gradients and video transformations.
The company is gaining strong momentum among content creators with Firefly. The Zacks Consensus Estimate for fiscal 2024 revenues is pegged at $21.41 billion, indicating 10.3% growth from fiscal 2023. The consensus estimate for fiscal 2024 earnings stands at $18.03 per share, up 12.2% from the year-ago actual figure.
Meta Platforms has gained 186.4% on a year-to-date basis. This Zacks Rank #3 company forayed into the space of LLMs with its state-of-the-art foundational language model known as Large Language Model Meta AI (“Llama”).
In collaboration with Microsoft, Meta unveiled the next generation of Llama, called Llama 2. The social media giant also released Code Llama, an LLM that can use text prompts to generate and discuss code.
The Zacks Consensus Estimate for 2024 revenues is pegged at $151.33 billion, indicating 13.4% growth from 2023. The consensus estimate for 2024 earnings stands at $17.57 per share, up 22.7% from the year-ago actual figure.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Zacks 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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Amazon.com, Inc. (AMZN) : 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. | Strengthening Growth Prospects Given the aforementioned facts, the underlined technology is set to become essential for various industries like IT services, semiconductor, advertisement, hardware and cloud. It recently announced the general availability of its fully managed service called Amazon Bedrock, which provides seamless access to high-performing foundation models (“FM”) from AI companies through an API. Adobe Firefly supports text prompts in over 100 languages, helps creators make several changes to their content, creates endless variations seamlessly and bolsters image generation capabilities. | Stocks recently featured in the blog include: Microsoft MSFT, Amazon AMZN, Alphabet GOOGL, Adobe ADBE and Meta Platforms META. It recently announced the general availability of its fully managed service called Amazon Bedrock, which provides seamless access to high-performing foundation models (“FM”) from AI companies through an API. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Adobe Inc. (ADBE) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. | Apart from chatbots, the growing proliferation of generative AI infrastructure as a service that is used for training LLMs and specialized generative AI assistant software, on the back of which, generative AI is set to unleash the next wave of productivity, remains a major positive. Here, we have focused on tech stocks like Microsoft, Amazon, Alphabet, Adobe and Meta Platforms, which are poised to gain well in 2024 from their heavy investments in generative AI. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Adobe Inc. (ADBE) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. | Apart from chatbots, the growing proliferation of generative AI infrastructure as a service that is used for training LLMs and specialized generative AI assistant software, on the back of which, generative AI is set to unleash the next wave of productivity, remains a major positive. This Zacks Rank #3 company forayed into the space of LLMs with its state-of-the-art foundational language model known as Large Language Model Meta AI (“Llama”). Be First to New Top 10 Stocks >> Want the latest recommendations from Zacks Investment Research? | f50218a2-555f-418c-b4d2-c7fcdde378b5 |
710554.0 | 2023-12-16 16:00:00 UTC | The Zacks Analyst Blog Highlights Brinker International, Granite Construction, Royal Caribbean Cruises, Eaton and AZZ | DCOMP | https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights-brinker-international-granite-construction-royal | nan | nan | For Immediate Release
Chicago, IL – December 20, 2023 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Brinker International EAT, Granite Construction GVA, Royal Caribbean Cruises RCL, Eaton ETN and AZZ AZZ.
Here are highlights from Tuesday’s Analyst Blog:
5 Top Growth Stocks for the Presidential Election Year 2024
Despite many bottlenecks, 2023 has been impressive for the stock market. While the broader S&P 500 has soared 20.8% this year, the tech-laden Nasdaq has shot up 37%. Surprisingly, solid consumer outlays amid elevated inflation and interest rate hikes helped the economy expand, while the AI boom propelled tech stocks northward. The labor market remained resilient and squashed any expectations of an imminent recession.
Heading into 2024, stretched valuations, geopolitical surprises, and most importantly, the outcome of the presidential election may likely create gyrations in the stock market. After all, senior citizens, in particular, may be concerned about the outcome of the election and its impact on the stock market vis-a-vis their retirement savings.
However, traditionally, presidential election years have always been good for the stock market. From 1937 to 2022, the S&P 500 in non-election years may have given an average annual return of 12.5%. Still, in election years, the return has also been encouraging 9.9%, according to research by Janus Henderson Investors. Thus, the stock market has successfully weathered political changeovers and provided handsome returns.
Record highs for major bourses are also in the cards for 2024, banking on the prospects of multiple interest rate cuts. The Federal Reserve has kept interest rates unchanged in its latest policy meeting and hinted at three rate cuts next year. The Fed acknowledged that inflationary pressures have started to show signs of cooling down amid sturdy economic growth.
The Fed officials are now projecting 0.75% points worth of rate cuts in 2024, which is a quarter point more than they predicted in September. Moreover, Fed officials expect another full percentage point rate cut in 2025. Now, lower borrowing costs will certainly help businesses to expand, increase consumer spending, boost economic growth, and help the stock market scale upward.
With things looking up for Wall Street in 2024 amid the Fed’s dovish stance and positive seasonal trends, placing bets on sound growth stocks like Brinker International, Granite Construction, Royal Caribbean Cruises, Eaton and AZZ seems judicious.
These stocks carry a Zacks Rank #1 (Strong Buy) or 2 (Buy) and a Growth Score of A or B, a combination that offers the best opportunities in the growth investing space. You can see the complete list of today’s Zacks Rank #1 stocks here.
Brinker International primarily owns, operates, develops and franchises various restaurants. Brinker International currently has a Zacks Rank #1 and a Growth Score of A.
The Zacks Consensus Estimate for its current-year earnings has moved up 7.9% over the past 60 days. EAT’s expected earnings growth rate for the current and next year are 26.2% and 9.5%, respectively.
Granite Construction is one of the nation’s largest infrastructure contractors and construction materials producers. Granite Construction currently has a Zacks Rank #1 and a Growth Score of B.
The Zacks Consensus Estimate for its current-year earnings has moved up 9.9% over the past 60 days. GVA’s expected earnings growth rate for the current and next year are 35.1% and 37.5%, respectively.
Royal Caribbean Cruises is a cruise company. Royal Caribbean Cruises currently has a Zacks Rank #1 and a Growth Score of B.
The Zacks Consensus Estimate for its current-year earnings has moved up 7.9% over the past 60 days. RCL’s expected earnings growth rate for the current and next year are 187.9% and 38.1%, respectively.
Eaton is a diversified power management company. Eaton currently has a Zacks Rank #2 and a Growth Score of B.
The Zacks Consensus Estimate for its current-year earnings has moved up 2.4% over the past 60 days. ETN’s expected earnings growth rate for the current and next year are 19.2% and 10.5%, respectively.
AZZis a leading provider of metal finishing solutions for corrosion protection. AZZ currently has a Zacks Rank #2 and a Growth Score of B.
The Zacks Consensus Estimate for its current-year earnings has moved up 0.5% over the past 60 days. AZZ’s expected earnings growth rate for the current and next year are 17.8% and 8.1%, respectively.
Why Haven’t You Looked at Zacks' Top Stocks?
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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.
Be First to New Top 10 Stocks >>
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Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report
Eaton Corporation, PLC (ETN) : Free Stock Analysis Report
Brinker International, Inc. (EAT) : Free Stock Analysis Report
AZZ Inc. (AZZ) : Free Stock Analysis Report
Granite Construction Incorporated (GVA) : 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. | Surprisingly, solid consumer outlays amid elevated inflation and interest rate hikes helped the economy expand, while the AI boom propelled tech stocks northward. With things looking up for Wall Street in 2024 amid the Fed’s dovish stance and positive seasonal trends, placing bets on sound growth stocks like Brinker International, Granite Construction, Royal Caribbean Cruises, Eaton and AZZ seems judicious. 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. | Stocks recently featured in the blog include: Brinker International EAT, Granite Construction GVA, Royal Caribbean Cruises RCL, Eaton ETN and AZZ AZZ. With things looking up for Wall Street in 2024 amid the Fed’s dovish stance and positive seasonal trends, placing bets on sound growth stocks like Brinker International, Granite Construction, Royal Caribbean Cruises, Eaton and AZZ seems judicious. Click to get this free report Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report Eaton Corporation, PLC (ETN) : Free Stock Analysis Report Brinker International, Inc. (EAT) : Free Stock Analysis Report AZZ Inc. (AZZ) : Free Stock Analysis Report Granite Construction Incorporated (GVA) : Free Stock Analysis Report To read this article on Zacks.com click here. | Here are highlights from Tuesday’s Analyst Blog: 5 Top Growth Stocks for the Presidential Election Year 2024 Despite many bottlenecks, 2023 has been impressive for the stock market. These stocks carry a Zacks Rank #1 (Strong Buy) or 2 (Buy) and a Growth Score of A or B, a combination that offers the best opportunities in the growth investing space. Click to get this free report Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report Eaton Corporation, PLC (ETN) : Free Stock Analysis Report Brinker International, Inc. (EAT) : Free Stock Analysis Report AZZ Inc. (AZZ) : Free Stock Analysis Report Granite Construction Incorporated (GVA) : Free Stock Analysis Report To read this article on Zacks.com click here. | Stocks recently featured in the blog include: Brinker International EAT, Granite Construction GVA, Royal Caribbean Cruises RCL, Eaton ETN and AZZ AZZ. With things looking up for Wall Street in 2024 amid the Fed’s dovish stance and positive seasonal trends, placing bets on sound growth stocks like Brinker International, Granite Construction, Royal Caribbean Cruises, Eaton and AZZ seems judicious. Be First to New Top 10 Stocks >> Want the latest recommendations from Zacks Investment Research? | e614d083-5a1b-4268-baa6-5016cc4738cd |
710555.0 | 2023-12-16 15:00:00 UTC | TipRanks’ All-Star Analyst – Who is the Best on PLTR Stock? | DCOMP | https://www.nasdaq.com/articles/tipranks-all-star-analyst-who-is-the-best-on-pltr-stock-0 | nan | nan | The TipRanks All-star Analyst of the Day title goes to Brian Gesuale of research firm Raymond James. Remarkably, Gesuale ranks #129 out of the 8,656 Wall Street analysts tracked by TipRanks. One of the key stocks in his coverage is a software company Palantir Technologies (NYSE:PLTR), for which he is both the Most Accurate and Most Profitable analyst.
Most Profitable and Accurate Analyst on PLTR Stock
When we look at Gesuale’s recommendation for PLTR stock, a data analytics company, we see that over the past year, Gesuale has had a 100% success rate on the stock. Plus, he has earned average returns of 69.2% in the said period.
On an overall basis, copying Gesuale’s trades and holding them for a year would give you an average return of 17.1%, with 68% of your trades generating a profit.
Not Just PLTR
Gesuale primarily focuses on covering the technology sector in the U.S. market. Importantly, his most profitable rating to date was a Buy on Cerence (NASDAQ:CRNC). This is a multinational software company that develops artificial intelligence assistant technology primarily designed for use in automobiles. The analyst earned a massive 465% return on the call between March 25, 2020, and March 25, 2021.
Following phenomenally successful analysts’ ratings can add profit to your portfolio. Find the best analyst to follow for any stock by scrolling down to the “Best Analyst Covering” feature on its Analyst Forecast page.
To follow the best Wall Street analysts, take a look at the list of Top Analysts on TipRanks.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The TipRanks All-star Analyst of the Day title goes to Brian Gesuale of research firm Raymond James. One of the key stocks in his coverage is a software company Palantir Technologies (NYSE:PLTR), for which he is both the Most Accurate and Most Profitable analyst. This is a multinational software company that develops artificial intelligence assistant technology primarily designed for use in automobiles. | Most Profitable and Accurate Analyst on PLTR Stock When we look at Gesuale’s recommendation for PLTR stock, a data analytics company, we see that over the past year, Gesuale has had a 100% success rate on the stock. Not Just PLTR Gesuale primarily focuses on covering the technology sector in the U.S. market. Following phenomenally successful analysts’ ratings can add profit to your portfolio. | One of the key stocks in his coverage is a software company Palantir Technologies (NYSE:PLTR), for which he is both the Most Accurate and Most Profitable analyst. Most Profitable and Accurate Analyst on PLTR Stock When we look at Gesuale’s recommendation for PLTR stock, a data analytics company, we see that over the past year, Gesuale has had a 100% success rate on the stock. Find the best analyst to follow for any stock by scrolling down to the “Best Analyst Covering” feature on its Analyst Forecast page. | Most Profitable and Accurate Analyst on PLTR Stock When we look at Gesuale’s recommendation for PLTR stock, a data analytics company, we see that over the past year, Gesuale has had a 100% success rate on the stock. Plus, he has earned average returns of 69.2% in the said period. Not Just PLTR Gesuale primarily focuses on covering the technology sector in the U.S. market. | 64c6c027-bca2-4649-a9d8-b118c844ff67 |
710556.0 | 2023-12-16 15:00:00 UTC | Best Growth Stocks to Buy for December 20th | DCOMP | https://www.nasdaq.com/articles/best-growth-stocks-to-buy-for-december-20th-1 | nan | nan | Here are three stocks with buy ranks and strong growth characteristics for investors to consider today, December 20:
M-tron Industries, Inc. MPTI: This frequency control solutions provider carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 47% over the last 60 days.
M-tron Industries, Inc. Price and Consensus
M-tron Industries, Inc. price-consensus-chart | M-tron Industries, Inc. Quote
M-tron Industries has a PEG ratio of 0.58 comparedwith 1.45 for the industry. The company possesses a Growth Score of B.
M-tron Industries, Inc. PEG Ratio (TTM)
M-tron Industries, Inc. peg-ratio-ttm | M-tron Industries, Inc. Quote
LegalZoom.com, Inc. LZ: This company which provides legal services carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 8.1% over the last 60 days.
LegalZoom.com, Inc. Price and Consensus
LegalZoom.com, Inc. price-consensus-chart | LegalZoom.com, Inc. Quote
LegalZoom.com has a PEG ratio of 0.50 compared with 0.79 for the industry. The company possesses a Growth Score of A.
LegalZoom.com, Inc. PEG Ratio (TTM)
LegalZoom.com, Inc. peg-ratio-ttm | LegalZoom.com, Inc. Quote
DaVita Inc. DVA: This company which provides kidney dialysis services carries a Zacks Rank #1 (Strong Buy), and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 8.4% over the last 60 days.
DaVita Inc. Price and Consensus
DaVita Inc. price-consensus-chart | DaVita Inc. Quote
DaVita has a PEG ratio of 0.79 comparedwith 1.38 for the industry. The company possesses a Growth Score of A.
DaVita Inc. PEG Ratio (TTM)
DaVita Inc. peg-ratio-ttm | DaVita Inc. Quote
See the full list of top ranked stocks here.
Learn more about the Growth score and how it is calculated here.
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
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
LegalZoom.com, Inc. (LZ) : Free Stock Analysis Report
DaVita Inc. (DVA) : Free Stock Analysis Report
M-tron Industries, Inc. (MPTI) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Here are three stocks with buy ranks and strong growth characteristics for investors to consider today, December 20: M-tron Industries, Inc. MPTI: This frequency control solutions provider carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 47% over the last 60 days. The company possesses a Growth Score of A. LegalZoom.com, Inc. PEG Ratio (TTM) LegalZoom.com, Inc. peg-ratio-ttm | LegalZoom.com, Inc. Quote DaVita Inc. DVA: This company which provides kidney dialysis services carries a Zacks Rank #1 (Strong Buy), and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 8.4% over the last 60 days. 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%. | M-tron Industries, Inc. Price and Consensus M-tron Industries, Inc. price-consensus-chart | M-tron Industries, Inc. Quote M-tron Industries has a PEG ratio of 0.58 comparedwith 1.45 for the industry. The company possesses a Growth Score of B. M-tron Industries, Inc. PEG Ratio (TTM) M-tron Industries, Inc. peg-ratio-ttm | M-tron Industries, Inc. Quote LegalZoom.com, Inc. LZ: This company which provides legal services carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 8.1% over the last 60 days. Click to get this free report LegalZoom.com, Inc. (LZ) : Free Stock Analysis Report DaVita Inc. (DVA) : Free Stock Analysis Report M-tron Industries, Inc. (MPTI) : Free Stock Analysis Report To read this article on Zacks.com click here. | M-tron Industries, Inc. Price and Consensus M-tron Industries, Inc. price-consensus-chart | M-tron Industries, Inc. Quote M-tron Industries has a PEG ratio of 0.58 comparedwith 1.45 for the industry. The company possesses a Growth Score of B. M-tron Industries, Inc. PEG Ratio (TTM) M-tron Industries, Inc. peg-ratio-ttm | M-tron Industries, Inc. Quote LegalZoom.com, Inc. LZ: This company which provides legal services carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 8.1% over the last 60 days. The company possesses a Growth Score of A. LegalZoom.com, Inc. PEG Ratio (TTM) LegalZoom.com, Inc. peg-ratio-ttm | LegalZoom.com, Inc. Quote DaVita Inc. DVA: This company which provides kidney dialysis services carries a Zacks Rank #1 (Strong Buy), and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 8.4% over the last 60 days. | The company possesses a Growth Score of A. LegalZoom.com, Inc. PEG Ratio (TTM) LegalZoom.com, Inc. peg-ratio-ttm | LegalZoom.com, Inc. Quote DaVita Inc. DVA: This company which provides kidney dialysis services carries a Zacks Rank #1 (Strong Buy), and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 8.4% over the last 60 days. The company possesses a Growth Score of A. DaVita Inc. PEG Ratio (TTM) DaVita Inc. peg-ratio-ttm | DaVita Inc. Quote See the full list of top ranked stocks here. Be First to New Top 10 Stocks >> Want the latest recommendations from Zacks Investment Research? | a36dcfea-84aa-4c9d-966d-dc603a7923f0 |
710557.0 | 2023-12-16 14:00:00 UTC | Japan's JFE Steel eyes possible US expansion after Nippon Steel deal | DCOMP | https://www.nasdaq.com/articles/japans-jfe-steel-eyes-possible-us-expansion-after-nippon-steel-deal | nan | nan | TOKYO, Dec 20 (Reuters) - Japan's No. 2 steelmaker JFE Steel is interested in expanding operations in the U.S., its president said on Wednesday, noting ties between the countries' steel industries would deepen in the wake of rival Nippon Steel's acquisition of U.S. Steel.
Nippon Steel 5401.T, Japan's top steelmaker, clinched a deal on Monday to buy Pittsburgh-based U.S. Steel X.N for $14.9 billion in cash, prevailing in an auction for the 122-year-old iconic steelmaker over rivals such as Cleveland-Cliffs CLF.N, ArcelorMittal MT.LU and Nucor NUE.N.
For JFE, the flagship unit of JFE Holding Inc 5411.T, the U.S. steel market looks also attractive as demand is expected to steadily grow, JFE Steel President Yoshihisa Kitano said at a news conference.
"The U.S. steel business is expected to grow... with solid demand growth anticipated from automobile sector," Kitano said.
He also said there were several parts of the U.S. market where steelmakers could generate solid earnings from the perspective of economic security.
"If there is an opportunity, we would like to consider (expanding) while assessing what kind of business areas present opportunities," Kitano said.
But he added there was no concrete plan to boost investment in the U.S. at the moment.
Kitano, who is also the chairman of the Japan Iron and Steel Federation, declined to comment on the deal in his capacity as the head of the industry group.
But he said, as a personal opinion, the successful acquisition by Nippon Steel was expected to deepen collaborative efforts between the U.S. and Japanese steel industries, including initiatives toward carbon neutrality.
(Reporting by Yuka Obayashi; Editing by Jamie Freed)
((Yuka.Obayashi@thomsonreuters.com; +813-4563-2761; Reuters Messaging: yuka.obayashi.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. | "The U.S. steel business is expected to grow... with solid demand growth anticipated from automobile sector," Kitano said. He also said there were several parts of the U.S. market where steelmakers could generate solid earnings from the perspective of economic security. Kitano, who is also the chairman of the Japan Iron and Steel Federation, declined to comment on the deal in his capacity as the head of the industry group. | 2 steelmaker JFE Steel is interested in expanding operations in the U.S., its president said on Wednesday, noting ties between the countries' steel industries would deepen in the wake of rival Nippon Steel's acquisition of U.S. Steel. For JFE, the flagship unit of JFE Holding Inc 5411.T, the U.S. steel market looks also attractive as demand is expected to steadily grow, JFE Steel President Yoshihisa Kitano said at a news conference. "The U.S. steel business is expected to grow... with solid demand growth anticipated from automobile sector," Kitano said. | 2 steelmaker JFE Steel is interested in expanding operations in the U.S., its president said on Wednesday, noting ties between the countries' steel industries would deepen in the wake of rival Nippon Steel's acquisition of U.S. Steel. Nippon Steel 5401.T, Japan's top steelmaker, clinched a deal on Monday to buy Pittsburgh-based U.S. Steel X.N for $14.9 billion in cash, prevailing in an auction for the 122-year-old iconic steelmaker over rivals such as Cleveland-Cliffs CLF.N, ArcelorMittal MT.LU and Nucor NUE.N. For JFE, the flagship unit of JFE Holding Inc 5411.T, the U.S. steel market looks also attractive as demand is expected to steadily grow, JFE Steel President Yoshihisa Kitano said at a news conference. | TOKYO, Dec 20 (Reuters) - Japan's No. 2 steelmaker JFE Steel is interested in expanding operations in the U.S., its president said on Wednesday, noting ties between the countries' steel industries would deepen in the wake of rival Nippon Steel's acquisition of U.S. Steel. For JFE, the flagship unit of JFE Holding Inc 5411.T, the U.S. steel market looks also attractive as demand is expected to steadily grow, JFE Steel President Yoshihisa Kitano said at a news conference. | e501ab57-0200-4cfc-82dd-c2fc14821494 |
710558.0 | 2023-12-16 13:00:00 UTC | As golden age for private capital ends, 2024 heralds more consolidation | DCOMP | https://www.nasdaq.com/articles/as-golden-age-for-private-capital-ends-2024-heralds-more-consolidation | nan | nan | By Andres Gonzalez and Pablo Mayo Cerqueiro
LONDON, Dec 20 (Reuters) - The last 12 months have been some of the most challenging in the buyout industry's recent history, as private capital fundraising fell to five-year lows and investors became more selective with their money, sector executives and advisers told Reuters.
Those pressures are expected to continue in the new year, forcing private capital groups to sell assets so that they can return cash to investors, known as limited partners (LPs), and in some cases make them takeover target for larger rivals.
"That will drive some consolidation in the industry and we will also probably see some more exits from portfolio companies, more deal activity in 2024 to show good returns to the LPs," said Anthony Diamandakis, who runs Citi's global asset manager advisory business.
Among asset classes, the fundraising slump hit infrastructure the hardest while private debt continues to be among the most popular strategies, accounting for 16% of all capital raised.
In terms of deal volumes, this year is on track to be the leanest for the sector since 2013, with $299 billion worth of private equity exits globally so far, according to Dealogic data.
Dealmakers expect 2024 to be busier, with interest rates beginning to ease, but the challenges are likely to stay, with borrowing costs still high and the gap between sellers' and buyers' price expectations, though narrowing, persisting.
"You will probably see more deployments and exits, but I don't think 2024 will be dramatically different from 2023," said Silvia Oteri, partner at private equity firm Permira.
Still, Oteri, who heads up Permira's healthcare team, is more bullish about dealmaking prospects in that sector.
Last month, the company joined Blackstone in a $15 billion offer for online classifieds group Adevinta, Europe's largest leveraged buyout this year.
NEW WAVE OF CONSOLIDATION
During a long spell of rock-bottom borrowing rates, capital raised by private capital funds nearly tripled between 2013 and 2021, when it peaked at almost $1.7 trillion, according to data provider Preqin.
Since then, it has slumped by a third to the $1.1 trillion raised by funds globally by early December 2023.
Attracting new funds remains a challenge, which along with the need by some to diversify their investment strategies, could bring more consolidation, advisers said.
The number of funds closed in the 12 months to early December was the lowest since 2014, although the capital raised was in line with the $1.1 trillion annual average of the last decade, according to Preqin, suggesting greater concentration.
"I would say the alternative asset managers space will absolutely consolidate," said Henrik Johnsson, Co-Head of Capital Markets and European Investment Banking at Deutsche Bank.
Alternative asset managers offer higher-yielding but less liquid investments, and with less money flowing into private equity, fewer are expected to survive.
The reason for the fundraising slump is two-fold.
First, as stocks and bonds fell in value due to rising interest rates, private equity and infrastructure became overrepresented in pension fund portfolios, forcing them to reduce their allocation. Secondly, the slowdown in private equity exits made limited partners more reluctant to invest more money.
"This market stress has created the recent bifurcation between those consistently strong performers that can command capital, and the rest," said Matthew Keogh, Investment Funds Partner at Linklaters.
Among those larger groups that faced challenges in their fundraising recently are Carlyle and Cinven, who were forced to prolong their fundraising or drop their targets this year because of tough market conditions.
Last month, U.S investment giant Carlyle Group CG.Olowered the target for its latest pan-Asia private equity fund by at least 30% from its original $8.5 billion, people with knowledge of the matter have told Reuters.
Cinven has exceeded its fundraising target for its eighth buyout fund only after asking investors for extra time earlier in the year, a person familiar with the plans said.
Some have still fared better. CVC, for example, recently closed a record $26 billion buyout fund.
Investors in private equity funds are choosing to concentrate their investments with fewer, larger managers, Keogh said. That is leading funds to expand into new areas, such as infrastructure and private credit, in order to draw investors.
In September, CVC announced a deal to acquire infrastructure manager DIF Capital Partners.
On Monday, French asset manager Tikehau Capital and Japanesse competitor Nikko Asset Management said they were in talks to form a strategic partnership in Asia that will include Nikko taking an equity stake in Tikehau TKOO.PA.
"This trend of consolidation may persist in the foreseeable future, providing opportunities for existing fund managers to strengthen their positions," said Sandra Krusch, Private Equity Lead, Europe West at EY. As the industry matures, alliances help boost efficiency, reach new customer segments or expand into new asset classes, Krusch said.
Not all private equity firms feel the same pressure.
"It's more for those that are publicly listed because (they) are valued based on their assets under management," said Nikos Stathopoulos, chairman, Europe at buyout group BC Partners, which oversees around 40 billion euros in investments.
Private capital golden era coming to an end https://tmsnrt.rs/4814rkU
Private capital golden era coming to an end https://tmsnrt.rs/3the5Rx
(Reporting by Andres Gonzalez and Pablo Mayo Cerqueiro; additional reporting by Emma Victoria Farr. Editing by Anousha Sakoui and Tomasz Janowski)
((andres.gonzalez@thomsonreuters.com; +44 (0) 7551 790019; Reuters Messaging: andres.gonzalez.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. | Those pressures are expected to continue in the new year, forcing private capital groups to sell assets so that they can return cash to investors, known as limited partners (LPs), and in some cases make them takeover target for larger rivals. "That will drive some consolidation in the industry and we will also probably see some more exits from portfolio companies, more deal activity in 2024 to show good returns to the LPs," said Anthony Diamandakis, who runs Citi's global asset manager advisory business. "This trend of consolidation may persist in the foreseeable future, providing opportunities for existing fund managers to strengthen their positions," said Sandra Krusch, Private Equity Lead, Europe West at EY. | During a long spell of rock-bottom borrowing rates, capital raised by private capital funds nearly tripled between 2013 and 2021, when it peaked at almost $1.7 trillion, according to data provider Preqin. Investors in private equity funds are choosing to concentrate their investments with fewer, larger managers, Keogh said. Private capital golden era coming to an end https://tmsnrt.rs/4814rkU Private capital golden era coming to an end https://tmsnrt.rs/3the5Rx (Reporting by Andres Gonzalez and Pablo Mayo Cerqueiro; additional reporting by Emma Victoria Farr. | By Andres Gonzalez and Pablo Mayo Cerqueiro LONDON, Dec 20 (Reuters) - The last 12 months have been some of the most challenging in the buyout industry's recent history, as private capital fundraising fell to five-year lows and investors became more selective with their money, sector executives and advisers told Reuters. Those pressures are expected to continue in the new year, forcing private capital groups to sell assets so that they can return cash to investors, known as limited partners (LPs), and in some cases make them takeover target for larger rivals. Private capital golden era coming to an end https://tmsnrt.rs/4814rkU Private capital golden era coming to an end https://tmsnrt.rs/3the5Rx (Reporting by Andres Gonzalez and Pablo Mayo Cerqueiro; additional reporting by Emma Victoria Farr. | By Andres Gonzalez and Pablo Mayo Cerqueiro LONDON, Dec 20 (Reuters) - The last 12 months have been some of the most challenging in the buyout industry's recent history, as private capital fundraising fell to five-year lows and investors became more selective with their money, sector executives and advisers told Reuters. Those pressures are expected to continue in the new year, forcing private capital groups to sell assets so that they can return cash to investors, known as limited partners (LPs), and in some cases make them takeover target for larger rivals. Among those larger groups that faced challenges in their fundraising recently are Carlyle and Cinven, who were forced to prolong their fundraising or drop their targets this year because of tough market conditions. | 73f513e4-ebda-4a48-b092-5abfec83b83e |
710559.0 | 2023-12-16 13:00:00 UTC | Australian shares hit 10-month closing high on 2024 rate-cut bets | DCOMP | https://www.nasdaq.com/articles/australian-shares-hit-10-month-closing-high-on-2024-rate-cut-bets | nan | nan | By Roshan Thomas
Dec 20 (Reuters) - Australian shares rose to a 10-month closing high on Wednesday, tracking Wall Street's gains overnight as prospects of interest rate cuts in 2024 boosted risk sentiment.
The benchmark S&P/ASX 200 index .AXJO climbed 0.7% to 7,537.9 in broad-based buying, marking its highest close since Feb. 7.
Wall Street extended its rally on Tuesday, as last week's dovish policy pivot from the Federal Reserve continued to reverberate and investors looked ahead to the November core personal consumption expenditure index report due on Dec. 22.
In Sydney, financials .AXFJ advanced 0.6%, with the "Big Four" banks ending between 0.3% and 1% higher.
"The fact that interest rates have now seemed to have peaked is very positive for market. I see the ASX rally continuing into the first quarter of 2024," said Brad Smoling, managing director at Smoling Stockbroking.
Energy stocks .AXEJ rose 0.4% on the back of gains in oil prices amid jitters over global trade disruption and tensions in the Middle East following Houthi attacks on ships in the Red Sea. Sector heavyweight Woodside WDS.AX was up 0.6%. O/R
Gold stocks .AXGD climbed 1.9% to hit their highest close since Dec. 5, as bullion prices held steady on prospects of interest rate cuts. GOL/
Northern Star Resources NST.AX and Evolution Mining EVN.AX gained 1.6% and 2.1%, respectively.
Smoling said he expects the gold rally to continue into 2024 and that is very positive for Australian gold stocks.
Heavyweight miners .AXMM gained 0.5% on the back of strong copper prices. BHP Group BHP.AX, Rio Tinto RIO.AX advanced 0.4% and 0.1%, respectively.
Among other sectors, real estate stocks .AXRE gained 0.9%.
The New Zealand benchmark S&P/NZX 50 index .NZ50 fell 0.3% to 11,579.8.
(Reporting by Roshan Thomas in Bengaluru; Editing by Subhranshu Sahu)
((Roshan.Thomas@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 Roshan Thomas Dec 20 (Reuters) - Australian shares rose to a 10-month closing high on Wednesday, tracking Wall Street's gains overnight as prospects of interest rate cuts in 2024 boosted risk sentiment. Wall Street extended its rally on Tuesday, as last week's dovish policy pivot from the Federal Reserve continued to reverberate and investors looked ahead to the November core personal consumption expenditure index report due on Dec. 22. Energy stocks .AXEJ rose 0.4% on the back of gains in oil prices amid jitters over global trade disruption and tensions in the Middle East following Houthi attacks on ships in the Red Sea. | By Roshan Thomas Dec 20 (Reuters) - Australian shares rose to a 10-month closing high on Wednesday, tracking Wall Street's gains overnight as prospects of interest rate cuts in 2024 boosted risk sentiment. O/R Gold stocks .AXGD climbed 1.9% to hit their highest close since Dec. 5, as bullion prices held steady on prospects of interest rate cuts. Smoling said he expects the gold rally to continue into 2024 and that is very positive for Australian gold stocks. | By Roshan Thomas Dec 20 (Reuters) - Australian shares rose to a 10-month closing high on Wednesday, tracking Wall Street's gains overnight as prospects of interest rate cuts in 2024 boosted risk sentiment. Energy stocks .AXEJ rose 0.4% on the back of gains in oil prices amid jitters over global trade disruption and tensions in the Middle East following Houthi attacks on ships in the Red Sea. O/R Gold stocks .AXGD climbed 1.9% to hit their highest close since Dec. 5, as bullion prices held steady on prospects of interest rate cuts. | Sector heavyweight Woodside WDS.AX was up 0.6%. O/R Gold stocks .AXGD climbed 1.9% to hit their highest close since Dec. 5, as bullion prices held steady on prospects of interest rate cuts. Smoling said he expects the gold rally to continue into 2024 and that is very positive for Australian gold stocks. | 543d150f-d230-48c3-89d7-ebe47f13ecd5 |
710560.0 | 2023-12-16 13:00:00 UTC | AAPL, AMD, or AMZN: Which “Strong Buy” Tech Stock Could Offer the Highest Upside? | DCOMP | https://www.nasdaq.com/articles/aapl-amd-or-amzn%3A-which-strong-buy-tech-stock-could-offer-the-highest-upside | nan | nan | Despite the ongoing macro uncertainty, several tech stocks had a strong run this year due to generative artificial intelligence (AI)-related tailwinds, expectations of interest rate cuts, and company-specific strengths. However, many investors wonder if there is more room to run. Using TipRanks’ Stock Comparison Tool, we placed Apple (NASDAQ:AAPL), Advanced Micro Devices (NASDAQ:AMD), and Amazon (NASDAQ:AMZN) against each other to pick the most attractive tech stock as per Wall Street analysts.
Apple Stock (NASDAQ:AAPL)
Apple reported better-than-expected earnings for the fiscal fourth quarter (September quarter) last month despite its overall revenue declining for the fourth consecutive quarter. Consumer spending on big-ticket discretionary items, like Apple’s products, has been hit by macro pressures. In the September quarter, the company’s overall revenue declined 1% to $89.5 billion, as higher iPhone sales and Services revenue were offset by a decline in Mac and iPad sales.
Aside from macro pressures, there are also concerns about the impact of China’s iPhone ban across government agencies and the loss of a patent infringement suit related to Apple Watch. Nonetheless, most Wall Street analysts have a bullish long-term sentiment about Apple.
Is Apple Stock a Good Buy Now?
On December 14, Citigroup analyst Atif Malik reiterated a Buy rating on AAPL stock with a price target of $230. The analyst expects earnings growth of 14% and free cash flow growth of 11% in 2014, fueled by continued gross margin expansion.
Malik contends that bears on the stock are missing Apple’s structural gross margin improvement, which is driven by iPhone premiumization, acceleration in Services revenue, and the favorable impact of silicon insourcing. The analyst expects these trends to continue in 2024 and sees AI phones and Vision Pro adoption as potential upside catalysts.
Overall, Wall Street has a Strong Buy consensus rating on AAPL stock based on 24 Buys and eight Holds. The AAPL average price target of $202.40 implies 2.8% upside potential. Shares have advanced over 51% year-to-date.
Advanced Micro Devices Stock (NASDAQ:AMD)
While Nvidia (NASDAQ:NVDA) has grabbed the limelight this year due to the tremendous demand for its graphics processing units (GPUs) in building and training generative AI models, AMD is gearing up to catch up.
The company expects its recently launched MI300 series to compete with Nvidia’s AI processors. AMD estimates its GPU revenue to surpass $2 billion in 2024. The company’s 2024 revenue is also expected to gain from a recovery in the demand for its products catering to the PC market.
What is the Price Target of AMD?
Last week, Bank of America analyst Vivek Arya upgraded AMD stock from Hold to Buy and increased the price target to $165 from $135. The analyst explained that his previous concerns about Embedded (FPGA) and Gaming (consoles) corrections have now “generally materialized,” with rapidly growing opportunities in data center GPUs/accelerators indicating upside to medium-term sales outlook.
While the analyst continues to view Nvidia as his top compute and AI pick, he believes that AI or generative AI is a multi-year phenomenon and presents opportunities for many chip companies. He thinks that AMD is well-positioned to gain an incremental share of the hugely profitable $100 billion-plus accelerator market while continuing to advance in the server CPU market.
With 26 Buys and eight Holds, Advanced Micro Devices stock earns Wall Street’s Strong Buy consensus rating. Shares have rallied more than 116% year-to-date. At $132.41, the AMD average price target implies a possible downside of 5.5% from current levels.
Amazon Stock (NASDAQ:AMZN)
Amazon shares have jumped 83% so far this year, reflecting the e-commerce and cloud computing giant’s strong execution and improved profitability due to cost reduction measures. In particular, the company’s third-quarter revenue grew 13%, driven by strength in the retail segment and Amazon Web Services (AWS) cloud computing business.
The momentum in Amazon’s retail business is expected to continue in the crucial holiday quarter. Also, the company’s AWS segment is well-positioned to gain from its investments in generative AI. Further, Amazon’s advertising business, which grew 25% in Q3 2023, is being considered as one of the key growth drivers for the company.
Is Amazon a Buy, Hold, or Sell?
On Monday, Roth MKM analyst Rohit Kulkarni reiterated a Buy rating on the stock and raised his price target from $165 to $180. The analyst called AMZN his mega-cap pick for 2024, followed by social media behemoth Meta Platforms (NASDAQ:META) and search engine giant Google’s parent Alphabet (NASDAQ:GOOGL).
Kulkarni stated that Amazon is the only mega-cap stock for which he expects an accelerating top line and expanding operating margin in 2024. He believes that the Street’s consensus estimate continues to underestimate the potential acceleration in Amazon’s 2024 and 2025 free cash flow. He expects the company’s FCF to benefit from improving fundamentals and declining capital expenditure.
Amazon scores Wall Street’s Strong Buy consensus rating based on 42 unanimous Buys. The average price target of $178.66 implies about 15.6% upside potential.
Conclusion
Analysts are bullish on all three tech stocks discussed here based on their solid fundamentals, strong execution, and attractive long-term growth potential. That said, they see a higher upside in Amazon than the other two stocks, supported by the strength in its e-commerce and cloud computing businesses and the rapidly growing ad revenues.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Despite the ongoing macro uncertainty, several tech stocks had a strong run this year due to generative artificial intelligence (AI)-related tailwinds, expectations of interest rate cuts, and company-specific strengths. Malik contends that bears on the stock are missing Apple’s structural gross margin improvement, which is driven by iPhone premiumization, acceleration in Services revenue, and the favorable impact of silicon insourcing. The analyst explained that his previous concerns about Embedded (FPGA) and Gaming (consoles) corrections have now “generally materialized,” with rapidly growing opportunities in data center GPUs/accelerators indicating upside to medium-term sales outlook. | Using TipRanks’ Stock Comparison Tool, we placed Apple (NASDAQ:AAPL), Advanced Micro Devices (NASDAQ:AMD), and Amazon (NASDAQ:AMZN) against each other to pick the most attractive tech stock as per Wall Street analysts. With 26 Buys and eight Holds, Advanced Micro Devices stock earns Wall Street’s Strong Buy consensus rating. In particular, the company’s third-quarter revenue grew 13%, driven by strength in the retail segment and Amazon Web Services (AWS) cloud computing business. | Using TipRanks’ Stock Comparison Tool, we placed Apple (NASDAQ:AAPL), Advanced Micro Devices (NASDAQ:AMD), and Amazon (NASDAQ:AMZN) against each other to pick the most attractive tech stock as per Wall Street analysts. Advanced Micro Devices Stock (NASDAQ:AMD) While Nvidia (NASDAQ:NVDA) has grabbed the limelight this year due to the tremendous demand for its graphics processing units (GPUs) in building and training generative AI models, AMD is gearing up to catch up. Amazon Stock (NASDAQ:AMZN) Amazon shares have jumped 83% so far this year, reflecting the e-commerce and cloud computing giant’s strong execution and improved profitability due to cost reduction measures. | In the September quarter, the company’s overall revenue declined 1% to $89.5 billion, as higher iPhone sales and Services revenue were offset by a decline in Mac and iPad sales. Overall, Wall Street has a Strong Buy consensus rating on AAPL stock based on 24 Buys and eight Holds. While the analyst continues to view Nvidia as his top compute and AI pick, he believes that AI or generative AI is a multi-year phenomenon and presents opportunities for many chip companies. | 4cbbe2fe-e763-49b3-874c-e5d5b721f66e |
710561.0 | 2023-12-16 12:00:00 UTC | India's Varun Beverages hits record high on S.Africa foray | DCOMP | https://www.nasdaq.com/articles/indias-varun-beverages-hits-record-high-on-s.africa-foray | nan | nan | Adds analyst comments in paragraph 5 and 6, details throughout
BENGALURU, Dec 20 (Reuters) - Shares in Pepsi India bottler Varun Beverages VARB.NS soared as much as 17.8% to a record high on Wednesday, a day after the company said it would buy South Africa's The Beverage Company in a deal valued at 13.2 billion rupees ($158.73 million).
Varun Beverages, one of PepsiCo's PEP.O largest franchisees outside the United States, is the top gainer on Nifty FMCG Index .NIFTYFMCG and was last trading up 11.8% at 1,310 rupees.
The Nifty FMCG Index rose 1.3%.
The Beverage Company makes and distributes PepsiCo-branded and own-branded non-alcoholic beverages in South Africa.
"We see significant value creation opportunity given PepsiCo's low single-digit share in South Africa," said analysts at Kotak Institutional Equities in a note.
The analysts added that they expect the Gurugram-based company to focus on PepsiCo's portfolio and gain share from Coca-Cola and local South African brands.
The deal is expected to be completed on or before July 31, 2024, the company said in a statement on Tuesday.
The stock on Wednesday posted its biggest intra-day jump since June 10, 2021 and is on track for an eighth consecutive quarterly rise, if trend holds.
Including the session's gains, stock has surged more than 88% this year so far, compared to a 25% gain in the Nifty FMCG Index.
Separately, Varun Beverages also inked a memorandum of understanding with the Jharkhand government on Tuesday to set up a manufacturing plant in the state, with a capital expenditure of 4.5 billion rupees.
($1 = 83.1625 Indian rupees)
(Reporting by Ashna Teresa Britto; Editing by Rashmi Aich)
((AshnaTeresa.Britto@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. | "We see significant value creation opportunity given PepsiCo's low single-digit share in South Africa," said analysts at Kotak Institutional Equities in a note. The analysts added that they expect the Gurugram-based company to focus on PepsiCo's portfolio and gain share from Coca-Cola and local South African brands. Separately, Varun Beverages also inked a memorandum of understanding with the Jharkhand government on Tuesday to set up a manufacturing plant in the state, with a capital expenditure of 4.5 billion rupees. | Adds analyst comments in paragraph 5 and 6, details throughout BENGALURU, Dec 20 (Reuters) - Shares in Pepsi India bottler Varun Beverages VARB.NS soared as much as 17.8% to a record high on Wednesday, a day after the company said it would buy South Africa's The Beverage Company in a deal valued at 13.2 billion rupees ($158.73 million). Varun Beverages, one of PepsiCo's PEP.O largest franchisees outside the United States, is the top gainer on Nifty FMCG Index .NIFTYFMCG and was last trading up 11.8% at 1,310 rupees. The Nifty FMCG Index rose 1.3%. | Adds analyst comments in paragraph 5 and 6, details throughout BENGALURU, Dec 20 (Reuters) - Shares in Pepsi India bottler Varun Beverages VARB.NS soared as much as 17.8% to a record high on Wednesday, a day after the company said it would buy South Africa's The Beverage Company in a deal valued at 13.2 billion rupees ($158.73 million). Varun Beverages, one of PepsiCo's PEP.O largest franchisees outside the United States, is the top gainer on Nifty FMCG Index .NIFTYFMCG and was last trading up 11.8% at 1,310 rupees. The analysts added that they expect the Gurugram-based company to focus on PepsiCo's portfolio and gain share from Coca-Cola and local South African brands. | Varun Beverages, one of PepsiCo's PEP.O largest franchisees outside the United States, is the top gainer on Nifty FMCG Index .NIFTYFMCG and was last trading up 11.8% at 1,310 rupees. The analysts added that they expect the Gurugram-based company to focus on PepsiCo's portfolio and gain share from Coca-Cola and local South African brands. Including the session's gains, stock has surged more than 88% this year so far, compared to a 25% gain in the Nifty FMCG Index. | 35a7cf17-0a4b-49c7-ac1e-d638067105f1 |
710562.0 | 2023-12-16 12:00:00 UTC | Cruise Layoffs to Recenter General Motors’ (NYSE:GM) Key Business | DCOMP | https://www.nasdaq.com/articles/cruise-layoffs-to-recenter-general-motors-nyse%3Agm-key-business | nan | nan | If any auto manufacturer is looking forward to brighter days ahead, it’s General Motors (NYSE:GM). Amid negotiations with the United Auto Workers (UAW), the legacy automaker had to deal with the fallout stemming from its autonomous taxi service Cruise. Involved in a number of accidents, GM made the difficult decision of suspending operations and laying off personnel. However, I am bullish on GM stock because the controversy allows management to focus on its core business.
Putting the Crisis in Perspective for GM Stock
To recap, in early October, CNN reported that a pedestrian was found critically injured and trapped underneath a Cruise-operated car. Moreover, as TipRanks mentioned last month, “Cruise’s operations dipped into troubled waters following several reports of its driverless vehicles colliding with pedestrians in San Francisco. As the complaints increased, the company took the decisive action of recalling its 960 robotaxis and halting operations.”
On the surface, the situation appears awful for Cruise and, by logical deduction, GM stock. After all, the automaker invested heavily in autonomous driving technology, in part to keep pace with established leaders like Tesla (NASDAQ:TSLA). However, if driverless innovations continue to hit people, that raises public safety concerns along with heavy litigation risks. Such incidents also impugn the broader autonomous subsector.
That said, context matters. Cruise and rival Waymo under Alphabet (NASDAQ:GOOGL) have logged millions of driverless miles. When accounting for the countless miles traversed without incident, some real evidence exists that autonomous driving tech as it stands now is on par with, if not superior to human driving capabilities.
Also, it‘s fair to point out that not every incident involving Cruise’s cars suggests that the driverless platform was at fault. For example, in the October incident mentioned earlier, CNN reported that the pedestrian crossed the intersection when cars had the right of way. Also, the Cruise-operated car was the second vehicle to strike the victim.
Nevertheless, perception has a way of becoming reality. With the public’s rush to judgment, General Motors arguably had little choice but to respond in a firm manner. Therefore, the subsidiary recently cut about 25% of its workforce.
Across the board, this tragic incident casts a dark cloud. Still, for GM stock, it’s an opportunity to focus on what works and less on what doesn’t.
A Possible Blessing in Disguise?
To be 100% clear, public safety is paramount, and no one should dismiss the occasional problems that stem from autonomous technologies. In the same vein, we can’t lose sight of the pain and hardships that layoffs cause. Nevertheless, for GM stock, the driverless tech fallout could be a blessing in disguise.
For one thing, truly autonomous vehicles could be decades away. Plus, the innovation might never materialize. That’s according to a 2021 op-ed by The Wall Street Journal. For years prior to the date of publication, several executives from various automotive-related enterprises opined that self-driving cars would effectively upend the paradigm of human-operated mobility.
However, in more recent years, that bravado has died down conspicuously. Basically, for self-driving platforms to truly work as advertised, artificial intelligence will need to improve dramatically. Unfortunately, we’re just not there yet. To put it another way, little point exists for good money to chase after bad.
In addition, consumers may be leery about putting their lives in the hands of a robot taxi driver. Plus, it’s General Motors’ controversy that may have contributed to public skepticism of autonomous mobility. Regardless, the public relations black eye will now allow General Motors to concentrate on truly viable endeavors. Over the intermediate to long term, that should be positive for GM stock.
After all, the legacy automaker has a clear opportunity to establish a foothold in the EV market. Primarily, consumers trust General Motors, which should be huge in terms of sector adoption. Moreover, the company can electrify its popular combustion-powered brands. It’s already doing this with the Hummer and the Corvette.
The only difference is that now, management can focus on its money-making initiatives rather than chasing a highly risky initiative. Again, this should be bullish for GM stock.
Valuation May Entice Fence Sitters
Finally, what could help swing the needle in favor of GM stock centers on its valuation. Right now, shares trade at a lowly trailing-year earnings multiple of about 5.0x. In contrast, the average price/earnings ratio of the auto parts and auto and truck dealership sectors clock in at 17.7x and 10.5x, respectively. No matter how you cut it, GM appears undervalued.
Now, with the troubles that the automaker incurred – such as the labor union strike and the autonomy fallout – one could argue that GM stock may be a value trap. It’s vital not to casually ignore the risks of the industry as a whole, particularly under challenging economic conditions.
Still, GM is technically more streamlined following the Cruise job cuts. As well, the company has a rich automotive portfolio that’s begging for an electric spin. For speculators, GM stock is at least worth consideration.
Is GM Stock a Buy, According to Analysts?
Turning to Wall Street, GM stock has a Moderate Buy consensus rating based on 14 Buys, four Holds, and one Sell rating. The average GM stock price target is $45.91, implying 28.5% upside potential.
The Takeaway: GM Stock Can Focus on What Matters
Despite Cruise's autonomous taxi woes, GM stock could rise thanks to a refocus on its core business. Layoffs streamline operations and free resources for the booming EV market, where GM's established brands and consumer trust give it an edge. A low valuation further sweetens the deal, making GM a potentially undervalued play despite economic headwinds.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Putting the Crisis in Perspective for GM Stock To recap, in early October, CNN reported that a pedestrian was found critically injured and trapped underneath a Cruise-operated car. Moreover, as TipRanks mentioned last month, “Cruise’s operations dipped into troubled waters following several reports of its driverless vehicles colliding with pedestrians in San Francisco. As the complaints increased, the company took the decisive action of recalling its 960 robotaxis and halting operations.” On the surface, the situation appears awful for Cruise and, by logical deduction, GM stock. | However, I am bullish on GM stock because the controversy allows management to focus on its core business. The Takeaway: GM Stock Can Focus on What Matters Despite Cruise's autonomous taxi woes, GM stock could rise thanks to a refocus on its core business. Layoffs streamline operations and free resources for the booming EV market, where GM's established brands and consumer trust give it an edge. | Putting the Crisis in Perspective for GM Stock To recap, in early October, CNN reported that a pedestrian was found critically injured and trapped underneath a Cruise-operated car. Nevertheless, for GM stock, the driverless tech fallout could be a blessing in disguise. The Takeaway: GM Stock Can Focus on What Matters Despite Cruise's autonomous taxi woes, GM stock could rise thanks to a refocus on its core business. | Also, it‘s fair to point out that not every incident involving Cruise’s cars suggests that the driverless platform was at fault. Again, this should be bullish for GM stock. No matter how you cut it, GM appears undervalued. | 3614fd06-7d8a-4000-ad1d-cb21ea444757 |
710563.0 | 2023-12-16 11:00:00 UTC | Gaining 40% This Year, Will Revival In Cloud Demand And Generative AI Drive Snowflake Stock Higher? | DCOMP | https://www.nasdaq.com/articles/gaining-40-this-year-will-revival-in-cloud-demand-and-generative-ai-drive-snowflake-stock | nan | nan | Snowflake (NYSE:SNOW) stock has gained about 40% year-to-date, amid increasing optimism of a revival in cloud spending by large businesses, although it has marginally underperformed the Nasdaq-100, which remains up by over 50% over the same period. Over Q3 FY’24 the company posted a better-than-expected set of results with product revenues jumping almost 34% year-over-year to $698.5 million. Snowflake also raised its full-year product revenue guidance, now projecting sales of $2.65 billion, up from a previous estimate of $2.6 billion. The company also boosted its full-year adjusted operating margin to 7%, up from a previous expectation of 5%. Key metrics have also remained strong. Snowflake’s core revenue retention rate stood at a healthy 135%, indicating that the company continues to expand business with its existing customers.
Investors also appear to like the steps Snowflake is taking in the artificial intelligence space. Snowflake’s core products help businesses store, organize, and analyze data across multiple cloud providers such as Amazon Web Services and Azure, and this positions the company well in building generative AI into its tools. For instance, the company launched Snowflake Cortex – a product that helps software developers build and run AI queries – last month. Earlier this year, the company introduced Snowpark Container Services which enables companies to deploy and run generative AI and full-stack apps on its platform. Snowflake also acquired Neeva, a startup that uses generative AI, to bring enhanced search capabilities to its products. Additionally, Nvidia – which is the go-to player for AI chips – said it was partnering with Snowflake to offer generative AI technology, specifically its artificial intelligence software, and chips, to Snowflake’s cloud-based data warehousing customers earlier this year.
Now looking over a longer window, SNOW stock has faced a notable decline of 30% from levels of $280 in early January 2021 to around $200 now, vs. an increase of about 25% for the S&P 500 over this roughly 3-year period. However, the decrease in SNOW stock has been far from consistent. Returns for the stock were 20% in 2021, -58% in 2022, and 39% in 2023 (YTD). In comparison, returns for the S&P 500 have been 27% in 2021, -19% in 2022, and 23% in 2023 (YTD) – indicating that SNOW underperformed the S&P in 2021 and 2022. In fact, consistently beating the S&P 500 – in good times and bad – has been difficult over recent years for individual stocks; for heavyweights in the Information Technology sector including AAPL, MSFT, and NVDA, and even for the megacap stars GOOG, TSLA, and AMZN. In contrast, the Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has outperformed the S&P 500 each year over the same period. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride as evident in HQ Portfolio performance metrics. Given the current uncertain macroeconomic environment with high oil prices and elevated interest rates, could SNOW face a similar situation as it did in 2021 and 2022 and underperform the S&P over the next 12 months – or will it see a recovery?
Snowflake trades at about 18x projected FY’24 revenue presently, which is below the 50x plus multiples the stock traded at the back at its peak in 2021. Snowflake is likely to be a big beneficiary of the continued pivot from on-premise databases to cloud-based warehousing solutions, with revenue growth projected at over 30% for next year as well, per consensus estimates. That said, Snowflake’s growth is slowing down and the company’s rising share count is also a concern. Weighted average shares outstanding is projected at 361 million shares for the end of fiscal 2024 compared to an average of less than 319 million in fiscal 2023, due to the company’s heavy use of stock-based compensation. We value Snowflake stock at about $190 per share, which is slightly below the current market price. See our analysis Snowflake Valuation: Is SNOW Stock Expensive Or Cheap? for more details. See our analysis of Snowflake Revenue for more details on Snowflake’s business model and how its revenues are expected to trend.
Returns Dec 2023
MTD [1] 2023
YTD [1] 2017-23
Total [2]
SNOW Return 6% 39% -29%
S&P 500 Return 3% 23% 111%
Trefis Reinforced Value Portfolio 6% 36% 600%
[1] Month-to-date and year-to-date as of 12/18/2023
[2] Cumulative total returns since the end of 2016
Invest with Trefis Market-Beating Portfolios
See all Trefis Price Estimates
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Snowflake (NYSE:SNOW) stock has gained about 40% year-to-date, amid increasing optimism of a revival in cloud spending by large businesses, although it has marginally underperformed the Nasdaq-100, which remains up by over 50% over the same period. Snowflake’s core products help businesses store, organize, and analyze data across multiple cloud providers such as Amazon Web Services and Azure, and this positions the company well in building generative AI into its tools. In fact, consistently beating the S&P 500 – in good times and bad – has been difficult over recent years for individual stocks; for heavyweights in the Information Technology sector including AAPL, MSFT, and NVDA, and even for the megacap stars GOOG, TSLA, and AMZN. | Additionally, Nvidia – which is the go-to player for AI chips – said it was partnering with Snowflake to offer generative AI technology, specifically its artificial intelligence software, and chips, to Snowflake’s cloud-based data warehousing customers earlier this year. Weighted average shares outstanding is projected at 361 million shares for the end of fiscal 2024 compared to an average of less than 319 million in fiscal 2023, due to the company’s heavy use of stock-based compensation. Total [2] SNOW Return 6% 39% -29% S&P 500 Return 3% 23% 111% Trefis Reinforced Value Portfolio 6% 36% 600% [1] Month-to-date and year-to-date as of 12/18/2023 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market-Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Additionally, Nvidia – which is the go-to player for AI chips – said it was partnering with Snowflake to offer generative AI technology, specifically its artificial intelligence software, and chips, to Snowflake’s cloud-based data warehousing customers earlier this year. See our analysis of Snowflake Revenue for more details on Snowflake’s business model and how its revenues are expected to trend. Total [2] SNOW Return 6% 39% -29% S&P 500 Return 3% 23% 111% Trefis Reinforced Value Portfolio 6% 36% 600% [1] Month-to-date and year-to-date as of 12/18/2023 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market-Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Additionally, Nvidia – which is the go-to player for AI chips – said it was partnering with Snowflake to offer generative AI technology, specifically its artificial intelligence software, and chips, to Snowflake’s cloud-based data warehousing customers earlier this year. In comparison, returns for the S&P 500 have been 27% in 2021, -19% in 2022, and 23% in 2023 (YTD) – indicating that SNOW underperformed the S&P in 2021 and 2022. See our analysis of Snowflake Revenue for more details on Snowflake’s business model and how its revenues are expected to trend. | 1000c8d6-4bb1-4fff-9c2d-3184b5402f29 |
710564.0 | 2023-12-16 11:00:00 UTC | Visa Stock (NYSE:V): Healthy Fundamentals Signals More Growth | DCOMP | https://www.nasdaq.com/articles/visa-stock-nyse%3Av%3A-healthy-fundamentals-signals-more-growth | nan | nan | Global digital payment processing company Visa's (NYSE:V) shares have soared 25.6% year-to-date, roughly in line with the S&P 500’s (SPX) surge of 25.4%. Rising travel demand boosted its Fiscal Q4 2023 earnings and revenue, which exceeded expectations. With the constant shift toward seamless cashless transactions and its ability to innovate and expand, Visa appears to be on track for solid growth, which has me bullish on the stock.
Visa Ended Fiscal 2023 on a Strong Note
The origin of Visa marked a significant shift from traditional cash-based transactions to a more convenient and efficient payment system.
In its fourth quarter of Fiscal 2023, adjusted earnings per share (EPS) of $2.33 outperformed consensus estimates of $2.25 per share. EPS also came in higher than the $1.93 achieved in the year-ago quarter. Additionally, Visa’s net revenue jumped 11% year-over-year to $8.61 billion, beating analysts’ estimates of $8.56 billion.
For the full year of Fiscal 2023, net revenue jumped 11% year-over-year to $32.7 billion, while adjusted EPS came in 17% higher at $8.77. Management attributed the exceptional performance to the recovery in cross-border travel transactions post-COVID and growth from its value-added services.
Despite a challenging global macroeconomic landscape, with rising interest rates affecting consumer spending and geopolitical tensions, Visa's business model has demonstrated resilience.
This resilience was reflected in its payments volume, which increased by 9% both in the fourth quarter and the full Fiscal year. Plus, cross-border volume grew by 16% year-over-year in the fourth quarter and 20% for the full year, thanks to the flourishing global travel industry that is boosting cross-border transactions.
Furthermore, according to a study conducted by Visa, despite rising inflation, “revenge travel” after the global pandemic is showing no signs of slowing down.
That means more cross-border transactions will drive revenue growth in the coming quarters. This surge in post-pandemic travel also explains why Visa's revenue has increased from $21.85 billion in Fiscal 2020 to $32.65 billion over the trailing 12 months. EPS has also increased from $4.89 to $8.77 over the same period.
Visa’s Commitment to Return Capital to Shareholders
Another advantage of investing in Visa stock is that it pays a dividend. Its dividend yield is 0.72%, which is significantly lower than the sector average of 2.1%. However, its dividend payout ratio of 21.3% suggests that there is room for dividend increases as the company grows.
Along with its quarterly results, Visa also announced a 16% dividend hike to $0.52 per share. Additionally, the company also authorized a $25 billion multi-year share buyback program, demonstrating its commitment to returning capital to shareholders.
Continuous Innovation and Growth
Despite its remarkable success, Visa is confronted with new challenges in an ever-changing financial landscape. Concerns about data security and privacy remain pertinent in the digital age, necessitating continuous innovation in safeguarding sensitive information.
Looking ahead, Visa's focus remains on technological innovation and strategic partnerships. On October 2, Visa announced a $100 million initiative to invest in next-generation start-ups ready to develop “generative AI technologies and applications that will impact the future of commerce and payments.”
On December 15, Visa also announced entering into a definitive agreement to acquire a majority stake in Mexico-based payment company Prosa. Under the terms of the agreement, Prosa will go on to operate independently. Visa intends to improve Prosa's product offerings with new digital solutions in the meantime. Visa did not disclose the financial terms of the agreement.
CEO Ryan McInerney stated, “As we enter a new fiscal year, I am confident in our ability to deliver against a backdrop of geopolitical and economic uncertainty. There is tremendous opportunity ahead, and I am as optimistic as ever about Visa’s role in the future of payments." Management anticipates constant-dollar net revenue growth in the low double digits for Fiscal 2024.
For Q1 Fiscal 2024, analysts predict EPS of $2.34 on revenue of $8.55 billion. For full-year Fiscal 2024, analysts estimate Visa’s revenue to increase by 7.0% year-over-year to $47.9 billion. On top of that, Visa has an impressive track record of exceeding analysts' revenue and earnings estimates in the last few quarters.
Is V Stock a Buy, According to Analysts?
Following a strong end to Fiscal 2023, many analysts reiterated their Buy ratings for Visa. Citi analyst Ashwin Shirvaikar reiterated his Buy rating on the stock with a price target of $270. The analyst is impressed by the company's revenue growth and its consistent ability to return capital to shareholders through dividend increases and share repurchases.
More recently, UBS analyst Tim Chiodo increased the price target for the stock to $305 from $295 with a Buy rating. Overall, analysts remain bullish on the stock, with a Strong Buy rating on TipRanks. Out of the 21 analysts covering the stock, 18 rate it a Buy, and three rate it a Hold. The average V stock price for Visa stock is $281.74, which is 8.4% above its current levels.
The Bottom Line on Visa Stock
Visa's journey from a simple credit card program to a global powerhouse of electronic payments showcases its evolution. Furthermore, its ability to adapt to technological advances while maintaining a strong and secure financial infrastructure bodes well for the future.
While travel demand continues to rise and macroeconomic headwinds fade, Visa's revenue and earnings may rise further in the coming years as the digital payment market expands. I believe Visa will reach its high price target of $305, representing 17.3% upside potential over the next 12 months.
Moreover, TipRanks has assigned a Smart Score of 9 out of 10 to Visa stock, indicating a high probability of the stock beating the broader market.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Global digital payment processing company Visa's (NYSE:V) shares have soared 25.6% year-to-date, roughly in line with the S&P 500’s (SPX) surge of 25.4%. With the constant shift toward seamless cashless transactions and its ability to innovate and expand, Visa appears to be on track for solid growth, which has me bullish on the stock. Despite a challenging global macroeconomic landscape, with rising interest rates affecting consumer spending and geopolitical tensions, Visa's business model has demonstrated resilience. | Additionally, Visa’s net revenue jumped 11% year-over-year to $8.61 billion, beating analysts’ estimates of $8.56 billion. For the full year of Fiscal 2023, net revenue jumped 11% year-over-year to $32.7 billion, while adjusted EPS came in 17% higher at $8.77. While travel demand continues to rise and macroeconomic headwinds fade, Visa's revenue and earnings may rise further in the coming years as the digital payment market expands. | Visa Ended Fiscal 2023 on a Strong Note The origin of Visa marked a significant shift from traditional cash-based transactions to a more convenient and efficient payment system. Visa’s Commitment to Return Capital to Shareholders Another advantage of investing in Visa stock is that it pays a dividend. For full-year Fiscal 2024, analysts estimate Visa’s revenue to increase by 7.0% year-over-year to $47.9 billion. | In its fourth quarter of Fiscal 2023, adjusted earnings per share (EPS) of $2.33 outperformed consensus estimates of $2.25 per share. The analyst is impressed by the company's revenue growth and its consistent ability to return capital to shareholders through dividend increases and share repurchases. The average V stock price for Visa stock is $281.74, which is 8.4% above its current levels. | 61b853fe-c379-4eeb-86a3-a7471398f83e |
710565.0 | 2023-12-16 11:00:00 UTC | Can Hydrogen Players Outperform As The Interest Rate Environment Softens? | DCOMP | https://www.nasdaq.com/articles/can-hydrogen-players-outperform-as-the-interest-rate-environment-softens | nan | nan | Our theme of Hydrogen Economy Stocks, which includes the stocks of U.S. listed companies that sell hydrogen fuel cells such as Bloom Energy (NYSE:BE), related renewable energy equipment players such as SunPower (NASDAQ:SPWR), and companies that supply hydrogen gas, has had a tough year, declining by about 28% year-to-date. This compares to the S&P 500 which has gained 23% over the same period. While the hydrogen theme outperformed over 2022, driven by the passage of the Inflation Reduction Act in the U.S., and an increasing urgency to reduce the dependency on fossil fuels following Russia’s invasion of Ukraine, the theme has been held back this year by a couple of factors, including high interest rates and supply challenges. Separately, some solar energy companies with exposure to the residential solar space, which is also part of the theme, have been weighed down by regulatory changes in California, the largest solar market in the U.S.
BE stock has suffered a sharp decline of 50% from levels of $30 in early January 2021 to around $15 now, vs. an increase of about 25% for the S&P 500 over this roughly 3-year period. BE has had a poor run, with the stock losing value in each of the last 3 years. Returns for the stock were -23% in 2021, -13% in 2022, and -26% in 2023 (YTD). In comparison, returns for the S&P 500 have been 27% in 2021, -19% in 2022, and 23% in 2023 (YTD) – indicating that BE underperformed the S&P in 2021 and 2023. In fact, consistently beating the S&P 500 – in good times and bad – has been difficult over recent years for individual stocks; for heavyweights in the industrial sector including BA, UNP, and CAT, and even for the megacap stars GOOG, TSLA, and MSFT. In contrast, the Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has outperformed the S&P 500 each year over the same period. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride as evident in HQ Portfolio performance metrics. Given the current uncertain macroeconomic environment with high oil prices and elevated interest rates, could BE face a similar situation as it did in 2021 and 2023 and underperform the S&P over the next 12 months – or will it see a recovery?
Things could get better for the theme in the near to medium term. U.S. inflation has eased considerably in recent months and the Fed has held interest rates steady during its recent December meeting. The central bank has also signaled that there could be three rate cuts in 2024 and this could shore up optimism for sectors such as renewable energy. Recent earnings from the hydrogen sector have been positive. For example, Bloom Energy reported a surprise profit for Q3, on an adjusted basis, with revenue rising by 37% year-over-year to $400 million, topping consensus estimates. FuelCell Energy also beat revenue estimates for its most recent quarterly report.
While mostly external factors have been driving the theme of late, investors will need to watch for underlying improvements in hydrogen technology, which is not exactly cost-effective at the moment, implying that deployments at the moment are relatively small, making it noncompetitive versus fossil fuels. That said, the U.S. government is significantly incentivizing green hydrogen production as it looks to a potential alternative to oil and gas in heavy industries and trucking where renewable electricity and battery storage are not viable. For example, the government is considering awarding tax credits to the tune of $3 per kilogram of green hydrogen (produced via renewable energy methods or nuclear power), with the credit scaling down for projects that emit carbon while producing hydrogen.
Returns Dec 2023
MTD [1] 2023
YTD [1] 2017-23
Total [2]
BE Return -2% -26% 42%
S&P 500 Return 3% 23% 111%
Trefis Reinforced Value Portfolio 6% 36% 600%
[1] Month-to-date and year-to-date as of 12/18/2023
[2] Cumulative total returns since the end of 2016
Invest with Trefis Market-Beating Portfolios
See all Trefis Price Estimates
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In fact, consistently beating the S&P 500 – in good times and bad – has been difficult over recent years for individual stocks; for heavyweights in the industrial sector including BA, UNP, and CAT, and even for the megacap stars GOOG, TSLA, and MSFT. Given the current uncertain macroeconomic environment with high oil prices and elevated interest rates, could BE face a similar situation as it did in 2021 and 2023 and underperform the S&P over the next 12 months – or will it see a recovery? That said, the U.S. government is significantly incentivizing green hydrogen production as it looks to a potential alternative to oil and gas in heavy industries and trucking where renewable electricity and battery storage are not viable. | Our theme of Hydrogen Economy Stocks, which includes the stocks of U.S. listed companies that sell hydrogen fuel cells such as Bloom Energy (NYSE:BE), related renewable energy equipment players such as SunPower (NASDAQ:SPWR), and companies that supply hydrogen gas, has had a tough year, declining by about 28% year-to-date. While the hydrogen theme outperformed over 2022, driven by the passage of the Inflation Reduction Act in the U.S., and an increasing urgency to reduce the dependency on fossil fuels following Russia’s invasion of Ukraine, the theme has been held back this year by a couple of factors, including high interest rates and supply challenges. For example, the government is considering awarding tax credits to the tune of $3 per kilogram of green hydrogen (produced via renewable energy methods or nuclear power), with the credit scaling down for projects that emit carbon while producing hydrogen. | Our theme of Hydrogen Economy Stocks, which includes the stocks of U.S. listed companies that sell hydrogen fuel cells such as Bloom Energy (NYSE:BE), related renewable energy equipment players such as SunPower (NASDAQ:SPWR), and companies that supply hydrogen gas, has had a tough year, declining by about 28% year-to-date. While the hydrogen theme outperformed over 2022, driven by the passage of the Inflation Reduction Act in the U.S., and an increasing urgency to reduce the dependency on fossil fuels following Russia’s invasion of Ukraine, the theme has been held back this year by a couple of factors, including high interest rates and supply challenges. Total [2] BE Return -2% -26% 42% S&P 500 Return 3% 23% 111% Trefis Reinforced Value Portfolio 6% 36% 600% [1] Month-to-date and year-to-date as of 12/18/2023 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market-Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | While the hydrogen theme outperformed over 2022, driven by the passage of the Inflation Reduction Act in the U.S., and an increasing urgency to reduce the dependency on fossil fuels following Russia’s invasion of Ukraine, the theme has been held back this year by a couple of factors, including high interest rates and supply challenges. In contrast, the Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has outperformed the S&P 500 each year over the same period. U.S. inflation has eased considerably in recent months and the Fed has held interest rates steady during its recent December meeting. | 333899c4-35da-4b07-8e85-0001980df9b7 |
710566.0 | 2023-12-16 11:00:00 UTC | Automakers oppose US bid to force recall of 52 million air bag inflators | DCOMP | https://www.nasdaq.com/articles/automakers-oppose-us-bid-to-force-recall-of-52-million-air-bag-inflators | nan | nan | By David Shepardson
WASHINGTON, Dec 19 (Reuters) - Major automakers including General Motors GM.N, Toyota Motor 7203.T and Volkswagen VOWG_p.DE and two air bag makers said on Tuesday they oppose the U.S. auto safety regulator's bid to require the recall of 52 million air bag inflators.
Officials with the U.S. National Highway Traffic Safety Administration (NHTSA) argued at a hearing in October that inflators produced by the two air bag manufacturers, ARC Automotive and Delphi Automotive, should be recalled because they may rupture and send metal fragments flying.
The issue is linked to one U.S fatality and seven injuries, NHTSA said, following an eight-year government investigation. If the recall proceeds, it would be the second-largest in U.S. history.
Automakers and manufacturers said the risks from the issue were exceedingly small and questioned the agency's analysis and rationale for seeking a recall.
ARC said under NHTSA's estimated failure rate there would be less than one new rupture over the next 33 years.
The inflators in question had been used in vehicles produced from 2000 through early 2018 by 12 automakers. Ford F.N, Mercedes-Benz MBGn.DE, BMW BMWG.DE, Hyundai 005380.KS, Kia 000270.KS and Porsche also filed statements of opposition under the regulator's formal comment process.
NHTSA did not respond to a request for comment.
NHTSA first called for a voluntary recall in May, but ARC rejected it. NHTSA issued an initial decision in September that the inflators should be recalled, the first formal step before it can seek to force a recall.
GM, which in May recalled 1 million ARC inflators after a rupture in March resulted in facial injuries to a driver, said NHTSA failed to demonstrate the need for "a massive and unprecedented expansion of the existing ARC inflator recalls."
GM added the recall would affect "as much as 15% of the over 300 million registered motor vehicles in the United States."
GM and Stellantis both called NHTSA's decision "arbitrary, capricious, and contrary to law."
Reuters reported in October that at least 20 million GM vehicles could be affected, while Stellantis has more than 4.9 million vehicles with inflators at issue and has reported just one rupture, in 2009, the automaker said.
VW said "there is no reasoned basis to recall the hundreds of thousands of VW and Audi vehicles" in NHTSA's initial decision.
Delphi Automotive, part of Autoliv ALV.N, manufactured approximately 11 million of the inflators through 2004 under a licensing agreement with ARC, which manufactured the remaining 41 million.
Autoliv said it opposed a recall, arguing that NHTSA has not shown they are defective.
ARC reiterated its opposition, saying: "(NHTSA's) record is devoid of any evidence, let alone credible evidence, that a systemic defect exists."
NHTSA enforcement official Cem Hatipoglu said at the October hearing that, while the odds for a rupture may not be high, the consequences are "severe and potentially deadly."
(Reporting by David Shepardson; Editing by Sandra Maler and Edmund Klamann)
((David.Shepardson@thomsonreuters.com; 2028988324;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Automakers and manufacturers said the risks from the issue were exceedingly small and questioned the agency's analysis and rationale for seeking a recall. Ford F.N, Mercedes-Benz MBGn.DE, BMW BMWG.DE, Hyundai 005380.KS, Kia 000270.KS and Porsche also filed statements of opposition under the regulator's formal comment process. NHTSA enforcement official Cem Hatipoglu said at the October hearing that, while the odds for a rupture may not be high, the consequences are "severe and potentially deadly." | By David Shepardson WASHINGTON, Dec 19 (Reuters) - Major automakers including General Motors GM.N, Toyota Motor 7203.T and Volkswagen VOWG_p.DE and two air bag makers said on Tuesday they oppose the U.S. auto safety regulator's bid to require the recall of 52 million air bag inflators. Officials with the U.S. National Highway Traffic Safety Administration (NHTSA) argued at a hearing in October that inflators produced by the two air bag manufacturers, ARC Automotive and Delphi Automotive, should be recalled because they may rupture and send metal fragments flying. Reuters reported in October that at least 20 million GM vehicles could be affected, while Stellantis has more than 4.9 million vehicles with inflators at issue and has reported just one rupture, in 2009, the automaker said. | Officials with the U.S. National Highway Traffic Safety Administration (NHTSA) argued at a hearing in October that inflators produced by the two air bag manufacturers, ARC Automotive and Delphi Automotive, should be recalled because they may rupture and send metal fragments flying. NHTSA issued an initial decision in September that the inflators should be recalled, the first formal step before it can seek to force a recall. GM, which in May recalled 1 million ARC inflators after a rupture in March resulted in facial injuries to a driver, said NHTSA failed to demonstrate the need for "a massive and unprecedented expansion of the existing ARC inflator recalls." | Officials with the U.S. National Highway Traffic Safety Administration (NHTSA) argued at a hearing in October that inflators produced by the two air bag manufacturers, ARC Automotive and Delphi Automotive, should be recalled because they may rupture and send metal fragments flying. Reuters reported in October that at least 20 million GM vehicles could be affected, while Stellantis has more than 4.9 million vehicles with inflators at issue and has reported just one rupture, in 2009, the automaker said. Delphi Automotive, part of Autoliv ALV.N, manufactured approximately 11 million of the inflators through 2004 under a licensing agreement with ARC, which manufactured the remaining 41 million. | a0036177-a19f-4d47-959e-e5a876791eb4 |
710567.0 | 2023-12-16 11:00:00 UTC | After A 13% Fall This Year How Does Ciena Compare With F5 Stock? | DCOMP | https://www.nasdaq.com/articles/after-a-13-fall-this-year-how-does-ciena-compare-with-f5-stock | nan | nan | Given its better prospects, we believe Ciena stock (NYSE: CIEN), a network hardware, software, and services provider, is a better pick than its sector peer, F5 Networks stock (NASDAQ: FFIV), an application security and cloud networking company. Investors have assigned a higher valuation multiple of 3.7x revenues for FFIV compared to 1.5x revenues for CIEN due to F5’s superior revenue growth and profitability. The decision to invest often comes down to finding the best stocks within the parameters of certain characteristics that suit an investment style. The size of profits can matter, as larger profits can imply greater market power. In the sections below, we discuss why we believe that CIEN will offer better returns than FFIV in the next three years. We compare a slew of factors, such as historical revenue growth, stock returns, and valuation, in an interactive dashboard analysis of F5 vs. Ciena: Which Stock Is A Better Bet? Parts of the analysis are summarized below.
FFIV stock has seen little change, moving slightly from levels of $175 in early January 2021 to around $175 now, while CIEN stock has seen a decline of 20% from levels of $55 to around $45 over the same period. In comparison, the S&P500 index saw an increase of about 25% over this roughly three-year period.
Overall, the performance of FFIV stock with respect to the index has been lackluster. Returns for the stock were 39% in 2021, -41% in 2022, and 21% in 2023 (YTD). Similarly, however, the decrease in CIEN stock has been far from consistent. Returns for the stock were 46% in 2021, -34% in 2022, and -13% in 2023 (YTD). In comparison, returns for the S&P 500 have been 27% in 2021, -19% in 2022, and 23% in 2023 (YTD) – indicating that FFIV and CIEN underperformed the S&P in 2022 and 2023.
In fact, consistently beating the S&P 500 – in good times and bad – has been difficult over recent years for individual stocks; for heavyweights in the Information Technology sector, including AAPL, MSFT, and NVDA, and even for the megacap stars GOOG, TSLA, and AMZN. In contrast, the Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has outperformed the S&P 500 each year over the same period. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index, less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.
Given the current uncertain macroeconomic environment with high oil prices and elevated interest rates, could FFIV and CIEN face a similar situation as they did in 2022 and 2023 and underperform the S&P over the next 12 months – or will they see a strong jump? While we expect both stocks to move higher in the next three years, we think CIEN will fare better.
1. F5’s Revenue Growth Is Better
F5’s revenue growth has been better, with a 6.2% average annual growth rate in the last three years, compared to 0.6% for Ciena.
FFIV revenues rose from $2.4 billion in fiscal 2020 (fiscal ends in September) to $2.8 billion in 2023, led by services and product revenue growth due to increasing demand and entry into new markets.
For Ciena, revenue increased from $3.5 billion in fiscal 2020 (fiscal ends in October) to $4.4 billion in 2023, led by continued growth in Global Services Platform Software and Services, while the Networking Platforms business also saw a rebound in fiscal 2023.
Supply chain issues weighed on the company’s overall performance in the recent past, and it still remains a concern.
Ciena expects its routing and switching business to grow faster in the coming years and drive the overall top-line growth.
If we look at the last twelve-month period revenues, Ciena fares better with sales growth of 14% vs. 5% for F5.
Our F5 Revenue Comparison and Ciena Revenue Comparison dashboards provide more insight into the companies’ sales.
Looking forward, we expect Ciena to see better sales growth than F5. We forecast F5’s top-line to expand at a CAGR of 3.4% to $3.1 billion in three years, while Ciena will likely see its sales rise in a mid-single-digit average annual growth rate to $5.3 billion over this period, based on Trefis Machine Learning analysis.
2. F5 Is More Profitable
F5’s operating margin declined from 23.1% in 2019 to 15.0% in 2022, while Ciena’s operating margin contracted from 14.5% in fiscal 2020 to 8.8% in 2023.
Looking at the last twelve-month period, F5’s operating margin of 14.6% fares better than 8.8% for Ciena.
F5’s margin metric has been weighed down due to a rise in component costs.
Our F5 Operating Income Comparison and Ciena’s Operating Income Comparison dashboards have more details.
Looking at financial risk, F5 fares better. F5 is a debt-free company, while Ciena’s debt as a percentage of equity is around 24%. However, Ciena’s 22% cash as a percentage of assets is higher than 13% for F5, implying that F5 has a better debt position and Ciena has more cash cushion.
3. The Net of It All
We see that F5 has seen better revenue growth and is more profitable.
Now, looking at prospects using P/S as a base, due to high fluctuations in P/E and P/EBIT, we believe Ciena will offer higher returns in the next three years.
Also, if we compare the current valuation multiples to the historical averages, CIEN fares better. F5 stock is trading at 3.7x revenues compared to its last five-year average of 4.3x. In comparison, Ciena stock trades at 1.7x revenues vs. the last five-year average of 2.2x.
Our F5 (FFIV) Valuation Ratios Comparison and Ciena (CIE) Valuation Ratios Comparison have more details.
The table below summarizes our revenue and return expectations for both companies over the next three years and points to an expected return of -12% for FFIV over this period vs. a 31% expected return for CIEN, based on Trefis Machine Learning analysis – F5 vs. Ciena – which also provides more details on how we arrive at these numbers.
While CIEN stock may outperform FFIV, it is helpful to see how F5’s peers fare on metrics that matter. You will find other valuable comparisons for companies across industries at Peer Comparisons.
Returns Dec 2023
MTD [1] 2023
YTD [1] 2017-23
Total [2]
FFIV Return 2% 21% 20%
CIEN Return -3% -13% 82%
S&P 500 Return 3% 23% 110%
Trefis Reinforced Value Portfolio 4% 33% 584%
[1] Month-to-date and year-to-date as of 12/14/2023
[2] Cumulative total returns since the end of 2016
Invest with Trefis Market-Beating Portfolios
See all Trefis Price Estimates
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In fact, consistently beating the S&P 500 – in good times and bad – has been difficult over recent years for individual stocks; for heavyweights in the Information Technology sector, including AAPL, MSFT, and NVDA, and even for the megacap stars GOOG, TSLA, and AMZN. Given the current uncertain macroeconomic environment with high oil prices and elevated interest rates, could FFIV and CIEN face a similar situation as they did in 2022 and 2023 and underperform the S&P over the next 12 months – or will they see a strong jump? Ciena expects its routing and switching business to grow faster in the coming years and drive the overall top-line growth. | For Ciena, revenue increased from $3.5 billion in fiscal 2020 (fiscal ends in October) to $4.4 billion in 2023, led by continued growth in Global Services Platform Software and Services, while the Networking Platforms business also saw a rebound in fiscal 2023. We forecast F5’s top-line to expand at a CAGR of 3.4% to $3.1 billion in three years, while Ciena will likely see its sales rise in a mid-single-digit average annual growth rate to $5.3 billion over this period, based on Trefis Machine Learning analysis. The table below summarizes our revenue and return expectations for both companies over the next three years and points to an expected return of -12% for FFIV over this period vs. a 31% expected return for CIEN, based on Trefis Machine Learning analysis – F5 vs. Ciena – which also provides more details on how we arrive at these numbers. | We compare a slew of factors, such as historical revenue growth, stock returns, and valuation, in an interactive dashboard analysis of F5 vs. Ciena: Which Stock Is A Better Bet? The table below summarizes our revenue and return expectations for both companies over the next three years and points to an expected return of -12% for FFIV over this period vs. a 31% expected return for CIEN, based on Trefis Machine Learning analysis – F5 vs. Ciena – which also provides more details on how we arrive at these numbers. Total [2] FFIV Return 2% 21% 20% CIEN Return -3% -13% 82% S&P 500 Return 3% 23% 110% Trefis Reinforced Value Portfolio 4% 33% 584% [1] Month-to-date and year-to-date as of 12/14/2023 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market-Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | While we expect both stocks to move higher in the next three years, we think CIEN will fare better. Our F5 Revenue Comparison and Ciena Revenue Comparison dashboards provide more insight into the companies’ sales. The table below summarizes our revenue and return expectations for both companies over the next three years and points to an expected return of -12% for FFIV over this period vs. a 31% expected return for CIEN, based on Trefis Machine Learning analysis – F5 vs. Ciena – which also provides more details on how we arrive at these numbers. | 36e7a674-a0ad-4d01-9b5c-5ba7498eab37 |
710568.0 | 2023-12-16 10:00:00 UTC | FedEx (FDX) Q2 2024 Earnings Call Transcript | DCOMP | https://www.nasdaq.com/articles/fedex-fdx-q2-2024-earnings-call-transcript | nan | nan | Image source: The Motley Fool.
FedEx (NYSE: FDX)
Q2 2024 Earnings Call
Dec 19, 2023, 5:30 p.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Good day, and welcome to the FedEx fiscal year 2024 second-quarterearnings call All participants are in a listen-only mode. [Operator instructions] After today's presentation, there will be an opportunity to ask questions. [Operator instructions] Please note, this event is being recorded.
I would now like to turn the conference over to Mr. Stephen Hughes, director of investor relations. Please go ahead, sir.
Stephen Hughes -- Director of Investor Relations
Good afternoon and welcome to FedEx Corporation's second-quarterearnings conference call The second-quarter earnings release, Form 10-Q, and stat book are on our website at investors.fedex.com. This call and the accompanying slides are being streamed from our website where the replay and slides will be available for about one year. Joining us on the call today are members of the media.
During our Q&A session, callers will be limited to one question in order to allow us to accommodate all those who would like to participate. Certain statements in this conference call such as projections regarding future performance may be considered forward-looking statements. Such forward-looking statements are subject to risks, uncertainties, and other factors which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. For additional information on these factors, please refer to our press releases and filings with the SEC.
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Please refer to the Investor Relations portion of our website at fedex.com for a reconciliation of the non-GAAP financial measures discussed on this call to the most directly comparable GAAP measures. Joining us on the call today are Raj Subramaniam, president and CEO; Brie Carere, executive vice president, chief customer officer; and John Dietrich, executive vice president and CFO. I now turn it over to Raj who will share his views on the quarter.
Raj Subramaniam -- President and Chief Executive Officer
Thank you, Steve, and good afternoon, everyone. Let me begin by thanking the FedEx team for their commitment to delivering yet another strong holiday season. To speak, FedEx has the best service offerings in the industry. This includes the most expansive global network and the fastest U.S.
ground service with the broadest weekend residential coverage. Strong service and speed are also coming with a more aggressive peak transit compared to this time last year with a ground time in transit in the U.S. at 1.94 days. I'm incredibly proud of the team's ability to sustain superior service levels while we continue to transform our global network. Our second-quarter performance reflects clear signs of progress in our transformation in what remains a difficult demand environment. We are moving at speed and agility to deliver on DRIVE, which is supporting improved profitability and enabling us to maintain our earnings outlook for the year even as our revenue expectations have moderated further.
As you can see in our results, in Slide 6, our transmission is driving improved profitability. At the enterprise level, we delivered a 17% improvement in adjusted operating income and adjusted margin improvement of 110 basis points compared to the prior year, even as the total revenue declined 3%. These results reflect benefits from DRIVE, a continued focus on revenue quality, and meaningful differentiation across our products and services as we build the world's smartest logistics network. Our focused execution enabled us to retain a majority of the high-quality volume we won over the summer from UPS, and as a result of the Yellow shutdown. At the segment level, Ground continued to deliver outstanding results with adjusted operating income up 57% and adjusted margin expansion of 370 basis points. This was driven in part by revenue growth due to higher yield and volume combined with solid operational performance. Freight delivered strong performance as well, driving double-digit profit improvement and margin expansion of over 270 basis points compared to the prior year.
Express total revenue decline due to both volume and yield pressures. These headwinds more than offset continued benefits from DRIVE and led to a margin decline compared to the prior year. There's more work to do at Express where we are structurally redesigning our network for speed and density. We continue to make progress at Express to unlock the value that exists across this business. Turning to Slide 7. DRIVE continues to fundamentally change the way we work.
The impact of DRIVE is clear as our lower-cost structure enables improved profitability. Just look at the powerful chart on the left-hand side of the slide. If you look across market cycles over the last 15 years, we have now delivered two consecutive quarters of operating income growth against declining revenues. When you step back and review how our business is performed in environments with suppressed demand, we are delivering much better profitability today than we have historically. In the quarter, we reduced costs by approximately $200 million in our surface network, including our U.S.
Express operations. This was driven by shifting to a single daily courier dispatch, applying doc productivity initiatives, consolidating underutilized swords, and maximizing the use of rail. Across our air network and international operations, our DRIVE initiatives are helping offset pressures with about $115 million in total cost reductions in Q2, primarily driven by structural flight takedowns. And in G&A, we're making significant changes to how we approach procurement and functional excellence. In the second quarter, we realized over $100 million in savings driven by reducing the use of temporary labor, leveraging the scale of the enterprise to negotiate favorable surface transportation rates, optimizing certain benefit programs, and lowering headcount. Given our progress, we are highly confident that we will deliver on our goal of $1.8 billion in cost reduction benefits from DRIVE this fiscal year. Turning to Slide 8.
Despite progress on DRIVE, profitability at FedEx Express was pressured by an ongoing volume mix shifts and related yield headwinds. Our ability to drive margin improvement in the near term has been constrained by transitory factors, including the year-over-year decline in the U.S. Postal Service volume combined with minimum required service obligations associated with our current USPS contract, and also, the timing of the structural redesign of our air network. Historically, our unmatched global air network was primary -- primarily built on a hub and spoke system to support speed and global connectivity.
With the rapid growth of e-commerce and as volume mix continues to shift to deferred, we recognize the need to reconfigure our network to focus on both speed and density. This fundamental network redesign, which we call Tricolor design, is momentous in our history and includes several key elements. First, we will deploy what we call our purple tail fleet, which is our FedEx-owned assets' time for delivering high-priority, high-margin volumes using the existing hub and spoke model. This is our purple network, which will be the backbone of our international priority parcel business. Second, we will retime a portion of our purple tail flights for what we call our orange network, which will operate off-cycle. This change will give us time to build density, decongest our hubs during the precious night sword, and feed into our surface networks, including our international road network, as well as FedEx Ground and FedEx Freight in the U.S.
This provides us a differentiated capability to drive profitable, less capital-intensive growth in the sizable global deferred parcel and airfreight markets. And third, we will continue to leverage our global partner network as an adaptive capacity layer, particularly on imbalanced trade lanes. This is our white network. These changes will improve utilization of our assets, increase margins, and enhance ROIC. The air network redesign is a critical piece of our DRIVE execution at Express and will support the realization of our targeted $4 billion of total DRIVE savings in fiscal year 2025.
We are approaching this network transformation in a deliberately measured manner to ensure we continue to provide our customers with the best service levels in the industry. Simultaneously, as you know, we are executing Network 2.0. Taken together, these efforts will improve our ability to protect profitability and returns through various market environments. Big picture, we're making clear progress on our transformation, and DRIVE is having a real impact. Additionally, our team is advancing efforts to combine the strength of our physical transportation network with our digital and data-driven solutions. We are leveraging our world-class engineering skill base to deliver cost-effective, cutting-edge capabilities globally.
Early this month, we opened our first Advanced Capability Community, or ACC, in Hyderabad, India, which will serve as a hub for our technological and digital innovation. I'm truly excited about the opening of the ACC and the vast opportunity to use digital to run our business better, enhance our customer experience, and generate new, profitable revenue streams. Overall, I'm confident we have the right strategy and the right team in place to create significant stockholder value. In these last few months and weeks, our team's dedication to the purple promise has been tremendous, and I would like to express my sincere thanks to our colleagues. This performance has put FedEx in good position as we enter the final stretch of peak and deliver the best service offerings in the industry.
With that, let me turn the call over to Brie.
Brie Carere -- Executive Vice President, Chief Customer Officer
Thank you, Raj, and good afternoon, everyone. Revenue quality and industry-leading service remained top priorities for us in the quarter. Our ability to retain the majority of the business we won from both UPS and Yellow is a testament to the team's hard work and our value proposition, which is the best service offering in the industry. And as a result, we are gaining parcel share here in the United States and around the world. Looking at the U.S., market conditions remained soft with Q2 demand lower than we anticipated.
The industry has now experienced 10 consecutive quarters of decline in U.S. domestic average daily volume. Additionally, international market pressure continued. Despite this pressure, our Europe and EMEA teams did a great job of growing parcel volume. Let's now look at each segment.
At FedEx Ground, second-quarter revenue was up 3% year over year, driven by higher yield and volume. We remained focused on growing our business with the right customer and service mix to improve profitability and maintain our position as the price leader in every domestic market segment. At FedEx Freight, new customers that came over as a result of the Yellow shutdown are enjoying a better value proposition, and we have retained a majority of this volume. Freight results showcase our disciplined focus on revenue quality as we gain share amid the industry disruptions. The market was down, and revenue declined 4% as lower shipments offset an increase in yield. But on a sequential basis, our revenue declined moderated significantly as volume pressure lessened and revenue per shipment inflected positively.
Revenue at FedEx Express was down 6% year over year, driven by market contraction and lower fuel and demand surcharges. Global freight pounds were down 18% year over year, driven by lower postal service volume, as well as the weakness in industrial production. Despite these headwinds, we are encouraged by the progress in areas that we can control. For example, the improvement in European service levels enabled profitable share gains. With less than one week to Christmas, our focus remains on delivering outstanding service.
Our networks are running extremely well, and we are receiving very positive customer feedback this peak. We are delivering this excellent service while creating new value for customers and driving customer acquisition. This holiday season, we estimate over 365 million packages will be delivered with a picture showing proof of delivery, PPOD as we call it. It's a great new feature that has helped us win new customers. PPOD and other digital tools such as estimated delivery time window and FedEx Delivery Manager provide customers with peace of mind when it comes to holiday shipments.
Overall, this year's peak season has been relatively similar to last year, and it's in line with our expectations. But looking ahead, we're ready to support our customers for post-holiday returns. Our robust returns portfolio is well positioned to handle the returns that inevitably follow peak. Our portfolio includes both a pre-labeled and a no-label, no-box solution that creates convenient, seamless experiences for retailers and for consumers.
Now, taking a step back to look at monthly volumes during the quarter. Importantly, as I mentioned earlier, we gained parcel share in both the United States and in international markets. This is a clear indication of our winning value proposition in a contracting market. Volumes have continued to improve sequentially with Ground and International export volumes maintaining last quarter's trend of growth on a year-over-year basis. Turning to slide 14. Overall, the market is competitive but rational, and we are committed to delivering on our revenue quality strategy.
During the quarter, yield trends improved slightly, but the dynamics were mixed across the segments. At FedEx Ground, yield increased 1% driven by home delivery and commercial ground, offset by ground economy. Higher weight per package and favorable customer segment mix offset a lower fuel surcharge relative to the prior year. At FedEx Freight, revenue per shipment increased 1% with base rates strong despite lower fuel surcharges and weights. At FedEx Express, yield was pressured due to lower fuel and demand surcharges.
Shifts toward e-commerce and the reopening of our international economy service in EMEA also pressure yield. We continue to focus on our revenue quality strategy. Earlier this month, we raised U.S. Express and Ground fuel surcharges by 1% and International Express fuel surcharges by 1.5%. Looking ahead, we expect a high capture rate from our 5.9 general rate increase.
We will reset our delivery area surcharges consistent with our usual practice. As we've shared previously, we are also resetting our approach to dimensional pricing for international shipments. This is moving from a shipment to a per-piece dimensional pricing, which is theglobal marketpractice. We are confident in our strategy, and we are balancing both volume and yield growth. Moving now to Slide 15.
Raj mentioned our focus on digital and efforts to identify new revenue streams. I am particularly excited about our new tracking API that we will launch in early 2024. Our tracking API is for both e-commerce shippers and platforms, providing them with best-in-class visibility for their customers including a picture proof of delivery. This new for free offering is a significant enhancement for our retail customers as well as for those third-party e-commerce platforms that rely on our data as an integral part of their value proposition. This is just one example of how we're thinking about our digital capabilities to better serve our customers and generate profitable incremental revenue for FedEx. In closing, I want to thank our entire global team for how they are executing around the world to deliver an absolutely positively outstanding peak season.
And with that, I'll turn it over to John to discuss the financials.
John Dietrich -- Executive Vice President and Chief Financial Officer
Thanks, Brie. I'll start on Slide 17. Despite a revenue decline, the FedEx team delivered improved profitability with strong adjusted operating margin growth, driven by a continued focus on revenue quality and execution of the company's DRIVE initiatives. Taking a closer look at our segment performance in the quarter, starting with Ground, the team continues to deliver strong results.
Adjusted operating income increased 57% due to yield improvement, cost reductions, and higher volumes. Cost per package declined 2% driven by lower line haul expense and improved first and last-mile productivity. At Freight, operating income increased 11% during the quarter driven by higher yields and increased efficiency, partially offset by lower shipments. The team continues to focus on improving profitability while navigating this lower-demand environment.
And at Express, profitability was pressured as impacts of softening demand on revenue were only partially offset by structural and volume-related cost improvements. Adjusted operating income at Express declined 49% during the quarter on a 6% decline in revenue. As Raj mentioned, we have more work to do at Express. and I'm confident that the structural redesign of our network and other DRIVE initiatives, once complete, will make us more resilient in future periods of demand weakness.
Now, turning to our fiscal year outlook. Based on our performance year to date and our current view of the rest of the year, we are reaffirming our outlook for adjusted EPS in the range of $17 to $18.50. At this midpoint of the range, we're now assuming a low single-digit percentage decline in revenue. This is lower than our previous assumption of flat revenue growth.
The reaffirmation of our earnings outlook despite the weaker demand environment reflects the continued benefits of our transformation. We'll continue to closely monitor the global demand environment and other key factors including inventory restocking, inflation, and e-commerce trends, which informs our view of overall expected performance. With regard to our third-quarter expectations, as we've shared previously, we anticipate our typical seasonality, which implies a lighter quarter sequentially for earnings. We're also facing a higher comp at Ground given our exceptionally strong operating income performance during the third quarter of last year.
At the enterprise level, we continue to expect year-over-year adjusted margin expansion in FY '24. At the segment level, we continue to expect adjusted margin improvement in FY '24 at Ground. We also continue to expect Freight margin to remain strong in FY '24 but lower than FY '23 given volume reductions and yield pressure. We now anticipate a modest year-over-year adjusted margin contraction at Express.
Turning to Slide 19 and consistent with previous quarters, we're providing a bridge to share how we're thinking about operating profit considerations embedded in our full-year outlook. For illustrative purposes, we continue to use adjusted operating profit of $6.3 billion, equivalent to the adjusted EPS midpoint of $17.75. As a reminder, and while our revenue performance will vary based on market trends, we are committed to delivering the $1.8 billion in structural cost savings from our DRIVE initiatives. Importantly, while this bridge remains the same as what we showed you in the first quarter, the composition of the second bar showing revenue net of cost increases has changed significantly.
We now forecast materially lower revenue but expect to achieve the same net profit impact of $500 million at the midpoint as we proactively manage volume-related expenses and revenue quality in this difficult demand environment. Now, moving to Slide 20. We remain focused on maintaining a strong balance sheet, prudent capital allocation, improved return on invested capital, all while providing increased shareholder returns. Our liquidity position remains strong, ending the quarter with $6.7 billion in cash.
Capital expenditures for the quarter were $1.3 billion, bringing year-to-date capex to $2.6 billion, and we continue to expect to achieve our target of less than 6.5% capex to revenue for the year. As we previously stated, our capital expenditures will decline as we continue to reduce capital intensity by reducing facility and other capacity investment and continue to plan for lower annual aircraft capex. We still anticipate aircraft-related capex to decline to approximately $1 billion in fiscal year '26. Consistent with our capital return priority, we completed another $500 million accelerated share repurchase transaction in the quarter.
This brings our total share repurchases for the first six months of the fiscal year to $1 billion and $2.5 billion over the last 18 months. Looking ahead, we expect to repurchase an additional $1 billion in common stock this fiscal year while also paying our dividend in line with our previously stated capital return plan. Before we turn to Q&A, I just wanted to comment that now that I'm nearly five months into my new role as CFO, I'm even more excited about our strategy, relentless focus on execution, and the opportunity ahead to create long-term value for all our stakeholders. I want to thank all our team members for their continued efforts and focus on our common goals.
With that, let's open it up for questions.
Questions & Answers:
Operator
Thank you. We will now begin the question-and-answer session. [Operator instructions] And the first question will come from Ken Hoexter with Bank of America. Please go ahead.
Ken Hoexter -- Bank of America Merrill Lynch -- Analyst
Great. Good afternoon. So, I guess, John, Raj, maybe just sticking with Express to start, you know, margins were down year on year. I get volumes are down and you have negative leverage, but just to be at 1.7%, you know, we're seeing higher purchase trends, higher employee expense, I guess what does it really take -- maybe just walk us through, one, why margins are stubbornly so low. And then, two, you're talking about a new plan in terms of the orange, purple, and white plan.
Are we talking about structurally changing Express and pulling additional costs out, parking more planes, pulling employees out? And what does it take to get this structural margin out of this -- this low bar? And I get -- you're still in the middle of your range, so I get the earnings outlook. I'm just trying to understand just the constraint on Express and the ability to get the margins up there over time.
Raj Subramaniam -- President and Chief Executive Officer
Yeah, thank you, Ken. Let me start and I'll -- you know, John can add as -- as he wishes, here. So, this has been a particularly difficult year for Express. Several headwinds this year and -- and many of them are transitory but we're dealing with as we speak.
So, firstly, the demand surcharges sort of Asia are significantly lower year over year. We've also seen the product mix shift from -- shift from priority to economy traffic. And then, our fuel surcharges also have been lower. Finally, as part of the strategy from USPS, they have shifted more volume from air to ground. And so, that's been also a headwind for FedEx this year.
On top of all this, we have seen now the market demand weaken primarily because of slowdown of industrial production across the world, which you know, has impacted our International Express Freight business as well. So, this is -- this is the background we're dealing with. I would say that despite this, the team has done a really good job on execution and DRIVE and flexing down variable costs to the tune of $1.5 billion in year-over-year expense reduction year to date. Clearly, Express is an opportunity for us as we look ahead. The redesign that I just talked about is -- you know, is very profound and what we call Tricolor because it's recognizing the fact that we now have a significant mixture of, you know, freight traffic as well as deferred traffic to change a portion of the existing flight schedule, you know, to a different clock, so to speak, allowing ability to drive more ability to fill up the traffic and improve density, and again, most importantly, allowing us to feed into not only our international road network, but also into our FedEx Ground and FedEx Freight network for the first time. And so, this is a significant change, probably one of the biggest changes that we've seen in decades.
I think that's a -- got the opportunity here to improve our asset utilization, improve density, improve return on invested capital in a significant manner. So, I just want to also just use this opportunity to say, at the enterprise level, you know, we are -- you know, we have improved our operating profit 17% and 110 basis points in operating margins despite a 3% revenue decline. Let me turn it over to John to see what he wants to add.
John Dietrich -- Executive Vice President and Chief Financial Officer
Yeah, thanks, Raj. I echo everything you said. I think the only thing I would add is that, you know, our cost structure, Ken, anticipated a little higher demand than that what we saw. So, we'll be laser-focused on bringing out as much of that cost as possible as we go forward.
Operator
The next question will come from Chris Wetherbee with Citigroup. Please go ahead.
Chris Wetherbee -- Citi -- Analyst
Yeah, thanks. Good afternoon. You know, maybe sticking on the back of that answer, John, I guess, as you think about the sequential performance in Express from 1Q to 2Q, I don't think we've seen, you know, really since maybe fiscal '11, a deterioration in operating profit. You know, revenue was up sequentially. So, I guess, was it just a mix that was moving around or maybe misjudging what you thought the demand environment was going to look like? And then, as we think about the back half of the year in Express, you're facing particularly easier comps both on a revenue and a profit basis.
So, I know margins down for the full year, but you can get margin and profit up in the back half of the fiscal year in Express?
John Dietrich -- Executive Vice President and Chief Financial Officer
So, as -- as you pointed out, you know, there's a whole host of factors that that went into the Express performance. And as Raj mentioned, you know, we see that there will be continuing opportunities at Express. The cost, in terms of the relationship with the demand, will definitely be a primary focus of mine. And as we go forward, I know Brie and the team are really focused on revenue quality, and we're confident we're going to be able to manage that -- that outcome and look forward to keeping you posted as we go forward.
Operator
The next question will come from Helane Becker with TD Cowen. Please go ahead.
Helane Becker -- TD Cowen -- Analyst
Oh, thanks very much, operator. Hi, everybody. I appreciate the time. you know, one of the things that you talked about more on the last call than you did on this, although you did mention that you saw a shift in postal service business to ground from air.
And I know that contract is up in -- at the end of the current government's fiscal year. So -- so, how are you thinking about incorporating the rest of the business into the network versus renewing the contract, or maybe it doesn't make sense to renew the contract going forward?
Brie Carere -- Executive Vice President, Chief Customer Officer
Good afternoon. Great question. So, from a USPS perspective, yes, this was a significant headwind this quarter as it was last quarter. From a negotiations perspective, we are having very collaborative negotiations with the post office.
But I think we've also been very clear that it will take quite a significant change in contractual terms and agreement to renew that contract. We continue to value the partnership. We're both at the table, and of course, we are honoring our service commitments and with the current volume levels that is a headwind this fiscal year. So, we're still negotiating. As soon as we have a renewed contract or a decision, we'll let all of you know.
I am optimistic, one way or the other, ee will improve the profit situation at Express regardless of our relationship with the post office.
Operator
The next question will come from Scott Group with Wolfe Research. Please go ahead.
Scott Group -- Wolfe Research -- Analyst
Hey, thanks. So, if I look, Ground yields were up about 1% in -- in the quarter. Ground volumes in November now flat. So, going forward, is -- is this still an environment where Ground margin should be improving year over year? I get the comps are harder, so less improvement.
But you think you still see improvement in the back half of the year and Ground margin improvement? And then, John, you talked about just seasonality, lower in Q3. Maybe just some directional color on -- on how much lower and then what that means for Q4 and all that. Thank you.
John Dietrich -- Executive Vice President and Chief Financial Officer
Sure, Scott, thank you. Yeah, looking at Ground, we're -- we're really excited about the results we're seeing at Ground and, you know, through DRIVE and all our other initiatives. We're focused on maintaining those -- those margins. I think we have tremendous flexibility to continue to leverage the surface modes including rail. And Raj touched on some of those other things.
In talking with the team, we also have some additional opportunities to leverage our LTL network as well. So, you know, we -- we certainly are looking favorably on -- on -- on the Ground margins going forward. With respect to Q3 and while I'm not going to give quarterly guidance, historically, it has been, you know, our lowest profitable quarter. And we expect seasonal trends to continue but a lighter third quarter and more moderate margin improvement in Q3.
Operator
The next question will come from Brandon Oglenski with Barclays. Please go ahead.
Brandon Oglenski -- Barclays -- Analyst
Hey, good afternoon, everyone, and thanks for taking my question. So, Raj, or John, you know, maybe can you guys comment on your nonfuel expenses at Express because I see them at about 8.9 billion now for the last three quarters? And I think what has gotten investors really excited around DRIVE is the idea that structural cost reductions are coming. So, can you talk about that 1.8 billion that you wanted to achieve this year, how much you've already seen at Express, and is there more to come sequentially on that cost structure? And for that Tricolor fleet initiative that you talked about, Raj, is that a signal that you're just reallocating capacity, or should we be thinking that's a structural reduction in air capacity going forward?
Raj Subramaniam -- President and Chief Executive Officer
Let me -- let me start on the latter question, and I'll have John hit the former. You know, we'll size the overall capacity to what the demand looks like, and we're very -- you know, we are very prudent in that. In fact, we've taken a lot of flight hours in the last 12 months accordingly. So -- so, the one part of it is sizing, the -- sizing the capacity to demand. But within that capacity now, there's a fundamental restructuring that allows us to really improve our service on our core IP business, improve density across all our networks, and then, you know, essentially bring -- bring to a lower cost point and -- and access some of our ground networks that are, you know -- that are really unparalleled. So, that's the idea with Tricolor.
And so, let me turn it over to John for the other part.
John Dietrich -- Executive Vice President and Chief Financial Officer
Sure. Thanks, Raj. So, the majority of our adjusted operating expense decline in the first half was the result of lower volume-related expenses as we've continued to align our costs across the enterprise with reduced volumes. In addition, you know, as you pointed out, we're making strong progress on our DRIVE, and we are on track to achieve the $1.8 billion in structural savings in fiscal year '24 that we talked about. It's fairly evenly spread throughout the year with a -- slightly more heavily weighted in the second half as some of these initiatives take hold.
In Q2, Raj touched on some of the -- the points in his presentation. The structural cost reductions included approximately $115 million in the air and international permanent savings category, 200 million in surface savings, and over 100 million in G&A. So, we're on track for that 1.8 as well.
Operator
The next question will come from Jack Atkins with Stephens. Please go ahead.
Jack Atkins -- Stephens -- Analyst
OK, great. Thank you for taking my question. I just wanted to go back to the air network redesign commentary for a moment. Just to be clear, was that contemplated within your initial, you know, DRIVE program? And then, I guess, were there costs associated with that in the second quarter? And if so, could you break that out? And then, finally, as you sort of think about, you know, when you're going to start seeing a benefit from this network redesign, is that something we could see show up in the second half of this fiscal year, or is that more of an FY '25 event? Thank you.
John Dietrich -- Executive Vice President and Chief Financial Officer
Thanks, Jack. It's John. So, yeah, Tricolor was factored into our outlook. It's something we've been looking at for quite a while.
It's very well developed. We're looking forward to implementation, and it is factored into our full-year outlook. From a cost standpoint, we're leveraging, as Raj said, the assets that we have. There may be some incidental facilities costs that we incur but nothing that I would describe in the material category.
Operator
The next question will come from Tom Wadewitz with UBS. Please go ahead.
Tom Wadewitz -- UBS -- Analyst
Yeah, good afternoon. I wanted to see if you could offer some -- a little bit of help on the -- what the yields look like, ex-fuel. So perhaps, you know, Ground and Domestic Express, what did those revenue per piece numbers look like ex-fuel? And then, some thoughts on what the pricing environment is doing. I mean, I think there's certainly been some kind of evidence out there that -- that UPS is competing to get business back, and you're competing as well.
And so, I'm just wondering if, you know, you are seeing some of that and that's a point of pressure as well, just in terms of, you know, getting a bit less price than you had expected.
Brie Carere -- Executive Vice President, Chief Customer Officer
Hi, Tom, thank you for the question. It's Brie. I think the most important thing is that the market is quite rational. Yes, the yields have reset since the -- you know, the height of the pandemic, but I think everybody in this room fully anticipated that.
As we mentioned, we continue to get a higher yield per package per segment in the U.S. domestic market than our primary competitor, and we're very proud of that. We've been able to maintain that yield leadership and take market share. So, yeah, it's a competitive market, but it's, overall, very rational and we feel really good about the team's performance.
From an overall demand or performance in the quarter, we're actually quite pleased where yield was in totality. You know, as Raj talked about, we do have some pressures from a mix perspective, but that was more of an Express story. We feel really good about Ground. And actually, when you double-click and we look at the -- the market share we gained, we actually took more share in the B2B segment. So, from a mix perspective, that's helping.
Operator
The next question will come from David Vernon with Bernstein. Please go ahead.
Dave Vernon -- Bernstein -- Analyst
Hey, good afternoon. So -- so, Raj, I want to kind of come back to the -- to the -- to the -- to the struggles that the Express segment here. Obviously, bopping around between sort of 2% and 4% on the margin side. You know, if you think about this in a -- in a three-year view, obviously, we have a lot of plans that are in place to pull cost out, and we've got a lot of initiatives to -- to -- to -- to -- to work on this.
You know, at what point do you say, like, we haven't gotten to where we want to go and we need to think about something else deeper or more structural around the business? I'm just trying to, like, address some investor concerns that I've certainly been hearing about, you know. Is the margin profile here fixable? And if it's not, then what's going to happen next?
Raj Subramaniam -- President and Chief Executive Officer
So, we're very confident in the future potential for Express. I think if you look at the -- I mean you got to take a step back and look at the vagaries of the global supply chain over the last few years. And you know, we have -- you know, the pandemic was one of those biggest supply chain bullwhip effects we've seen in the last 30 or 40 years, and we are in the aftermath of that. We have seen now multiple quarters of the market being down.
So, here we are in a situation where we are growing faster in the market, and yet the, you know, overall demand environment is weak for our sector. So, you know, the structural changes that we are putting in the Express network are real, and they are actually designed to improve our profitability and return on invested capital. I'm very confident that -- that the -- that the margins in Express will return, and the structural cost takeout that's continuing to take place, it will serve us very well. And especially, as the demand profile returns, is going to be a -- it's going to be a -- it's going to be a very good opportunity for FedEx in the future.
Operator
The next question will come from Conor Cunningham with Melius Research.
Conor Cunningham -- Melius Research -- Analyst
Hi, everyone. Thank you. Just quickly, does the -- does the pilot contract --or the lack of pilot contract limit what you can do in just in terms of pulling out, you know, Express costs? And then, on Network 2.0, I think in the past, you've talked about how you're testing that in certain markets. Just curious on how those markets have performed relative to expectations. Thank you.
John Dietrich -- Executive Vice President and Chief Financial Officer
So, I'll touch on the pilot piece. If I understood your question, look, part -- most of what we're doing here is to increase the utilization of our assets and leverage the purple network. So, the pilot contract, you know, allows for flex up and flex down, but you know, where we are now is looking to take full advantage of the assets that we have. So, you know, there -- we'll work within the -- the agreement constraints, but we have a fair amount of flexibility to execute on Tricolor and our other initiatives here. I'm sorry, I'm not sure I caught the full part of the second part of your question.
Network 2.0, if that's -- if that's your question, you know, I think this fits in quite well. There's no constraints we're talking about on the pilot side on Network 2.0. In fact, it's complementary, from my perspective.
Operator
The next question will come from Allison Poliniak with Wells Fargo. Please go ahead.
Allison Poliniak -- Wells Fargo Securities -- Analyst
Looking at purple today, just how much of that volume that's going on a purple tail today that could go on white as an example? And if there's any context that you can provide in terms of the relative cost savings there. Thanks.
Raj Subramaniam -- President and Chief Executive Officer
Hey, Allison, we didn't hear the first part of your questions. Could you please repeat it?
Allison Poliniak -- Wells Fargo Securities -- Analyst
So, we're just trying to understand, in terms of the volume impact from Tricolor, how much that's going on, say, a purple tail today that could eventually go on white, and sort of what the cost impact would be to FedEx by doing that.
Raj Subramaniam -- President and Chief Executive Officer
So -- and just the answer to that question, I think one of the things that you remember is that, you know, a lot of the growth that's happening in the international space is in -- is, you know, happening in the deferred space, in the airfreight space, and also e-commerce. So, you know, whether -- as the future market evolves, this is the right design for us to be able to -- to serve each part of the market with the -- with the right network in place. Now, how much -- where it's going to fit in, that's -- that's yet to be determined as the market evolves. But again, what we're designing for is the right network for the right kind of traffic so we have an opportunity to be able to grow profitably in the international space.
Operator
The next question will come from Amit Mehrotra with Deutsche Bank. Please go ahead.
Amit Mehrotra -- Deutsche Bank -- Analyst
Thanks, operator. Hi, everybody. I guess I just want to come back to, I think, Chris Wetherbee's question and talk about -- I mean, typically, John, we see Express profits go down, I don't know, about 50% sequentially from 2Q to 3Q. Obviously, 2Q is not what we wanted it to be, but any sense of, you know, seasonality -- normal seasonality, or are we -- is it that type of magnitude relative to where we are in the second quarter? And then, just related to that, I'm having a little bit of a hard time -- or maybe a lot of hard time understanding, sequentially, revenue was up in Express.
Packages were up, composite yield was up, DRIVE savings were up, but then profits were down. So, maybe you can dumb it down for me, but I really don't understand why profits would be down sequentially when all those pieces of mix and revenue are up sequentially. Thank you.
John Dietrich -- Executive Vice President and Chief Financial Officer
So, I'll start with the discussion on Q3 and not going to be giving Q3 guidance. But as I said, I think it's reasonable to expect that, you know, typical seasonality will apply. I will say, you know, for -- for Q3 in particular, due to FedEx Ground's very strong performance in last year's third quarter, with Ground, you know, operating margin inflecting positive by 240 basis points versus the prior year, we'll have a more difficult comparison. But I think it's fair to say, you know, seasonality will -- will play a role.
Now, with regard to the Express, you know, margins and the profits, we're going to continue to be laser-focused on that. As I said, our cost structure did not anticipate the higher demand. You cannot underestimate the impacts of all the things that Raj and Brie talked about. You know, if you -- if you look to the year-over-year decline in the U.S.
Postal Service volume, combined with, you know, some of the minimum service requirements that are required, that really has a drag on your cost. And what I will say, too, is we're really well positioned when volumes return in light of all the initiatives we're taking right now.
Operator
The next question will come from Jon Chappell with Evercore ISI. Please go ahead.
Jon Chappell -- Evercore ISI -- Analyst
Thank you. Good afternoon. John, just keeping with that, you mentioned a few times now that the costs were kind of above and beyond what you'd -- what you would have normally had for this type of demand environment and you're laser-focused on it. Are those costs that, I would imagine, are variable that you would look to pull out pretty quickly over the course of the next couple of months, especially with the seasonal slowdown in Express? Or do you have to kind of manage, you know, keeping some of those costs on, as you noted, for when volumes come back? Just trying to think again about the pace of the -- of the margin improvement potential at Express.
Can it happen very quickly, or do you kind of have to keep a little bit more cost on, just in case the demand comes back sooner than expected?
John Dietrich -- Executive Vice President and Chief Financial Officer
Great. Thank you. That's really a great question. And I think the answer is yes to all of that, right.? And what I would throw in as well is maintaining our high standards of service that Brie talked about.
We're factoring in all those factors: the ability to take on additional volumes when it returns, coupled with maintaining the highest-quality service that Brie talked about, but also with a sense of urgency to -- to be focused on that which we can take out as quickly as possible without prejudicing those two very important factors.
Operator
The next question will come from Bascome Majors with Susquehanna. Please go ahead.
Bascome Majors -- Susquehanna International Group -- Analyst
Thanks for taking our questions. It sounds like the deferred day network, you know, underutilization there with your core customer has been a bigger problem than many of us realize the bottom line of Express. Can you talk a little bit about if we get to a point where you do end up walking away or significantly downsizing that customer into next year, what are your options for consolidating that network either with, you know, some of your Ground opportunities or the night network, you know? Are there options for the day network going away sizably and an addition to that subtraction trend into next year and the year beyond? Thank you.
Brie Carere -- Executive Vice President, Chief Customer Officer
Yeah, it's a fair question. One of the things that we have been pretty candid about is that we are planning actively for both scenarios, that we are working in completely good faith to maintain this relationship and improve the profitability and deliver the service that USPS would like. And we think, quite frankly, that FedEx is uniquely positioned to deliver in parallel through our DRIVE initiatives. We already are working our plan if that is not the case so that we can continue to go grow Express margin and deliver on our DRIVE commitments as we've previously stated.
Operator
The next question will come from Brian Ossenbeck with J.P. Morgan. Please go ahead.
Brian Ossenbeck -- J.P. Morgan -- Analyst
Thanks. Good afternoon. So, as mentioned a few times, that fuel was a headwind for yields as surcharges were coming down. Maybe some context around that.
And did that have the timing effect? Did they have any negative impact on operating income, and sort of what do you think for the rest of this year? And then, maybe you can talk a little bit about in freight with the auction that went on a couple weeks ago. There's another one going on right now. You've closed a few facilities. Do you still think that market stays disciplined now that some of the capacity has -- has changed hands? Thank you.
Brie Carere -- Executive Vice President, Chief Customer Officer
Yeah, great question, and we'll start with the second one first. We are seeing, yes, a very disciplined freight market, and I will say I think we're leading the discipline freight. If you look at the volume that we took during the summer, we really like what we got. We actually were quite surprised that we found some really high-yielding customers. And those customers have been very vocal about the great service that FedEx Freight is delivering.
And so, market is rational. We're delivering a great service. Lance and the team have just done an outstanding job. And so, we -- we're continuing to be very optimistic about the margin profile and the future at FedEx for freight. I have to admit I forgot the first half of the question.
Fuel. Thank you. So, yes, fuel was, you know, a headwind, obviously, at the top line and the bottom line in the quarter. Moving forward, we do anticipate that fuel overall will be a headwind for the year.
Operator
The next question will come from Jordan Alliger with Goldman Sachs. Please go ahead.
Jordan Alliger -- Goldman Sachs -- Analyst
Yeah, hi. Just a question more on the macro. Is it your expectation that there's not going to be any macro improvement for the balance of this fiscal year or maybe even for all of calendar 2024? I mean, there has been a lot of destocking. Online sales weren't too bad, and some would say consumer spend might be pretty good next year. So, just sort of curious, your -- your thoughts or color on the macro expectations that you've thought through in terms of your numbers. Thanks.
Raj Subramaniam -- President and Chief Executive Officer
Yeah, no, thank you, Jordan. I think, on the macro, we have been pretty consistent over the last few quarters about sort of two or three things. One is that the industrial production around the world continues to be weak. And again, that's reflected in our Express Freight numbers and even our Domestic Express numbers.
Even though we are growing faster than the market, you know -- we -- you know, these are, you know, headwinds, to the -- for the industry volume. On consumer spending, I think the mix between goods and services, I think, now, that's nearly back to the pre-pandemic levels. As far as inventory is concerned, we believe that the inventory destocking phase is over, and -- but the restocking phase is yet to begin in earnest. So, you know, we -- for the rest of the fiscal year, we are -- we're not assuming any kind of improvement in these trends.
Obviously, if that changes, that'll be a positive. And we are definitely -- and we have said this over and over again over the last few quarters, we're focused on the things that we can control. And that's why we are so focused on the execution of DRIVE. And again, I'm just reiterate that I'm so proud of the team for delivering, you know, meaningful bottom-line improvement despite the -- despite the challenges in the top line.
Operator
The next question will come from Scott Schneeberger with Oppenheimer. Please go ahead.
Scott Schneeberger -- Oppenheimer and Company -- Analyst
Thanks very much for taking the question. Brie, probably for you. Could you address, as you took a good amount of share over the summer from -- from UPS in this situation, what are you seeing competitively out there now that we're in peak season as far as -- it was asked a little earlier, on -- on -- on -- on pricing? But how are you holding up as far as maintaining your customers? If you could address this on large and on a small and mid-sized and -- and to go-forward question as well, going into the next year, and -- and -- and -- and -- and how you think you'll hold up there. Thanks.
Brie Carere -- Executive Vice President, Chief Customer Officer
OK, Scott, let me -- let me try to unpack that. I think, first of all, from a peak perspective, our peak volumes are very much in line with what we anticipated for the month of December. And from a structural pricing perspective in peak, as you know, peak surcharges are a significant contribution to the month of December. And we are very pleased they continue to be something that we are enforcing, and customers really understand that they are there to cover the incremental costs from our largest peaking customers. So, from a peak perspective, we -- we feel really good.
As I mentioned, there is no question I get asked more around here is -- are we holding on to all of the share that we took from UPS. And the answer I can give you is, confidently, yes. We gave you, last quarter, the 400,000 average daily packages. That's a slightly conservative number.
We are tracking all accounts that won -- we won specifically because of their concerns on the labor negotiations. The vast majority of those had an early termination clause, and to my knowledge, we have not lost a single one of those accounts. Now, of course, we do trade accounts with UPS, and we have accounted for the trades between the two of us over the last quarter. And we're still up more than 400 average daily packages in the United States. In addition, we looked at their Q3 numbers, we've gained share. And also, I think it's important to note, we gained share here in the United States, but globally, we outperformed the market.
So, it's a confident yes, and we have the better value proposition. I believe we have the better commercial team. I'm confident we'll hold on.
Operator
The next question will come from Stephanie Moore with Jefferies. Please go ahead.
Stephanie Moore -- Jefferies -- Analyst
Hi. Thank you. I appreciate the question. Maybe touching on the prior one talking about the demand environment, you know -- you know, first, I'm kind of curious what you're seeing on the international side of your -- of your -- of your business.
And, you know, just the reports of tighter air cargo markets from kind of the lower cost e-commerce exports out of Asia, if that's had any impact, as of late, on your business. And then, more of a broader view, you know, what's your view when you think this volume environment might finally turn the corner here, just based on -- on what you're seeing today? Thanks.
Brie Carere -- Executive Vice President, Chief Customer Officer
Sure. A great question. You know, I think, as Raj mentioned, you know, of course, we're tracking all of the same economic indicators that all of you are tracking. And, you know, when you look at some of those indicators, you do start to see some optimism.
What we're doing is we're planning conservatively right now. We believe that we will see FedEx sequential improvement throughout the back half, but the overall market demand will not change within our fiscal year. When we've seen the momentum, you know, I talked about a couple of places where we've got momentum, specifically on parcel. That -- the vast majority of that is two things, it's e-commerce and it's market share gains. When we look at the -- the largest indicator of industrial production and what we're seeing, we're not seeing a lot of restocking in our numbers yet. It doesn't mean that it won't come, but we're not seeing it yet.
You know, one of the greatest indicators of that is actually if you look at our freight business outside of the United States, weights are not where they need to be. Shipment volume was decent, but it's really the weight that we're looking at. And weight per shipment is still down dramatically as you can see in the numbers. So, we're planning conservatively.
We're focused very much on what we can -- can control. And of course, we'll keep you updated as things move on.
Operator
The next question will come from Bruce Chan with Stifel. Please go ahead.
Bruce Chan -- Stifel Financial Corp. -- Analyst
Great. Thanks for the time. Just maybe want to get a follow-up on Network 2.0. You know, if you could give us an update on where you are with the market network integration.
I imagine it was a little bit slower during peak season, but you know, what's been completed at this point, and what markets are next? And then, you know, maybe just a follow-up for John here. In terms of the model, where should we think about, you know, where the impact of those changes occur with regard to the op cos?
Raj Subramaniam -- President and Chief Executive Officer
OK, Bruce, let me take the first part, and I'll turn it over to John. You know, as we have -- we are on track to -- on Network 2.0 for -- in implementation, as we've told you, by fiscal year '27. We have announced and/or implemented optimization changes in Alaska, Hawaii, Canada, as well as several locations in the -- in the Lower 48. And we have learned a lot in this process. And, you know, in January, we'll announce the next wave of rollout once we get past the busy peak season.
So, overall, we are on track. We're learning a lot in this process here. We're building the right technology solutions and the facilities required to move forward. And I'm quite pleased with the progress.
John Dietrich -- Executive Vice President and Chief Financial Officer
Yeah, and Raj, what I would just add to that is that our expectations, as a result of all that planning, is factored into our -- our guidance.
Operator
This concludes our question-and-answer session. I would like to turn the conference back over to Mr. Raj Subramaniam for any closing remarks. Please go ahead, sir.
Raj Subramaniam -- President and Chief Executive Officer
So, thank you very much. And in closing, we are showing clear progress on our transformation, delivering an unprecedented two consecutive quarters of operating income growth and margin expansion even with lower revenue. At the same time, we are providing our customers with outstanding service and speed through the peak and beyond. I'm very confident in our path ahead as we become a more flexible, efficient, and intelligent company. Let me take this opportunity to once again thank the FedEx team members who are delivering just simply an outstanding peak.
It is the best peak season I can remember in some time to come. And we also take this opportunity to wish everyone on this call and all our FedEx team members a very very happy holiday season. Thank you very much.
Operator
[Operator signoff]
Duration: 0 minutes
Call participants:
Stephen Hughes -- Director of Investor Relations
Raj Subramaniam -- President and Chief Executive Officer
Brie Carere -- Executive Vice President, Chief Customer Officer
John Dietrich -- Executive Vice President and Chief Financial Officer
Ken Hoexter -- Bank of America Merrill Lynch -- Analyst
Chris Wetherbee -- Citi -- Analyst
Helane Becker -- TD Cowen -- Analyst
Scott Group -- Wolfe Research -- Analyst
Brandon Oglenski -- Barclays -- Analyst
Jack Atkins -- Stephens -- Analyst
Tom Wadewitz -- UBS -- Analyst
Dave Vernon -- Bernstein -- Analyst
Conor Cunningham -- Melius Research -- Analyst
Allison Poliniak -- Wells Fargo Securities -- Analyst
Amit Mehrotra -- Deutsche Bank -- Analyst
Jon Chappell -- Evercore ISI -- Analyst
Bascome Majors -- Susquehanna International Group -- Analyst
Brian Ossenbeck -- J.P. Morgan -- Analyst
Jordan Alliger -- Goldman Sachs -- Analyst
Scott Schneeberger -- Oppenheimer and Company -- Analyst
Stephanie Moore -- Jefferies -- Analyst
Bruce Chan -- Stifel Financial Corp. -- Analyst
More FDX analysis
All earnings call transcripts
This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability.
The Motley Fool has positions in and recommends FedEx. 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. | Stephen Hughes -- Director of Investor Relations Good afternoon and welcome to FedEx Corporation's second-quarterearnings conference call The second-quarter earnings release, Form 10-Q, and stat book are on our website at investors.fedex.com. In the second quarter, we realized over $100 million in savings driven by reducing the use of temporary labor, leveraging the scale of the enterprise to negotiate favorable surface transportation rates, optimizing certain benefit programs, and lowering headcount. We'll continue to closely monitor the global demand environment and other key factors including inventory restocking, inflation, and e-commerce trends, which informs our view of overall expected performance. | Joining us on the call today are Raj Subramaniam, president and CEO; Brie Carere, executive vice president, chief customer officer; and John Dietrich, executive vice president and CFO. Despite a revenue decline, the FedEx team delivered improved profitability with strong adjusted operating margin growth, driven by a continued focus on revenue quality and execution of the company's DRIVE initiatives. Operator [Operator signoff] Duration: 0 minutes Call participants: Stephen Hughes -- Director of Investor Relations Raj Subramaniam -- President and Chief Executive Officer Brie Carere -- Executive Vice President, Chief Customer Officer John Dietrich -- Executive Vice President and Chief Financial Officer Ken Hoexter -- Bank of America Merrill Lynch -- Analyst Chris Wetherbee -- Citi -- Analyst Helane Becker -- TD Cowen -- Analyst Scott Group -- Wolfe Research -- Analyst Brandon Oglenski -- Barclays -- Analyst Jack Atkins -- Stephens -- Analyst Tom Wadewitz -- UBS -- Analyst Dave Vernon -- Bernstein -- Analyst Conor Cunningham -- Melius Research -- Analyst Allison Poliniak -- Wells Fargo Securities -- Analyst Amit Mehrotra -- Deutsche Bank -- Analyst Jon Chappell -- Evercore ISI -- Analyst Bascome Majors -- Susquehanna International Group -- Analyst Brian Ossenbeck -- J.P. Morgan -- Analyst Jordan Alliger -- Goldman Sachs -- Analyst Scott Schneeberger -- Oppenheimer and Company -- Analyst Stephanie Moore -- Jefferies -- Analyst Bruce Chan -- Stifel Financial Corp. -- Analyst More FDX analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. | Despite a revenue decline, the FedEx team delivered improved profitability with strong adjusted operating margin growth, driven by a continued focus on revenue quality and execution of the company's DRIVE initiatives. The redesign that I just talked about is -- you know, is very profound and what we call Tricolor because it's recognizing the fact that we now have a significant mixture of, you know, freight traffic as well as deferred traffic to change a portion of the existing flight schedule, you know, to a different clock, so to speak, allowing ability to drive more ability to fill up the traffic and improve density, and again, most importantly, allowing us to feed into not only our international road network, but also into our FedEx Ground and FedEx Freight network for the first time. Operator [Operator signoff] Duration: 0 minutes Call participants: Stephen Hughes -- Director of Investor Relations Raj Subramaniam -- President and Chief Executive Officer Brie Carere -- Executive Vice President, Chief Customer Officer John Dietrich -- Executive Vice President and Chief Financial Officer Ken Hoexter -- Bank of America Merrill Lynch -- Analyst Chris Wetherbee -- Citi -- Analyst Helane Becker -- TD Cowen -- Analyst Scott Group -- Wolfe Research -- Analyst Brandon Oglenski -- Barclays -- Analyst Jack Atkins -- Stephens -- Analyst Tom Wadewitz -- UBS -- Analyst Dave Vernon -- Bernstein -- Analyst Conor Cunningham -- Melius Research -- Analyst Allison Poliniak -- Wells Fargo Securities -- Analyst Amit Mehrotra -- Deutsche Bank -- Analyst Jon Chappell -- Evercore ISI -- Analyst Bascome Majors -- Susquehanna International Group -- Analyst Brian Ossenbeck -- J.P. Morgan -- Analyst Jordan Alliger -- Goldman Sachs -- Analyst Scott Schneeberger -- Oppenheimer and Company -- Analyst Stephanie Moore -- Jefferies -- Analyst Bruce Chan -- Stifel Financial Corp. -- Analyst More FDX analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. | Despite a revenue decline, the FedEx team delivered improved profitability with strong adjusted operating margin growth, driven by a continued focus on revenue quality and execution of the company's DRIVE initiatives. And then, John, you talked about just seasonality, lower in Q3. Operator [Operator signoff] Duration: 0 minutes Call participants: Stephen Hughes -- Director of Investor Relations Raj Subramaniam -- President and Chief Executive Officer Brie Carere -- Executive Vice President, Chief Customer Officer John Dietrich -- Executive Vice President and Chief Financial Officer Ken Hoexter -- Bank of America Merrill Lynch -- Analyst Chris Wetherbee -- Citi -- Analyst Helane Becker -- TD Cowen -- Analyst Scott Group -- Wolfe Research -- Analyst Brandon Oglenski -- Barclays -- Analyst Jack Atkins -- Stephens -- Analyst Tom Wadewitz -- UBS -- Analyst Dave Vernon -- Bernstein -- Analyst Conor Cunningham -- Melius Research -- Analyst Allison Poliniak -- Wells Fargo Securities -- Analyst Amit Mehrotra -- Deutsche Bank -- Analyst Jon Chappell -- Evercore ISI -- Analyst Bascome Majors -- Susquehanna International Group -- Analyst Brian Ossenbeck -- J.P. Morgan -- Analyst Jordan Alliger -- Goldman Sachs -- Analyst Scott Schneeberger -- Oppenheimer and Company -- Analyst Stephanie Moore -- Jefferies -- Analyst Bruce Chan -- Stifel Financial Corp. -- Analyst More FDX analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. | e34eec91-4f00-429a-9295-884337ef5f90 |
710569.0 | 2023-12-16 10:00:00 UTC | Japan startup Preferred Networks designs own AI chips to beat bottleneck | DCOMP | https://www.nasdaq.com/articles/japan-startup-preferred-networks-designs-own-ai-chips-to-beat-bottleneck | nan | nan | By Sam Nussey and Miho Uranaka
TOKYO, Dec 20 (Reuters) - Japanese startup Preferred Networks is ramping up investment in customised artificial intelligence chips, seeking to ensure access to critical hardware as advances in generative AI spark a global investment boom.
The company, whose investors include automaker Toyota 7203.T and robot maker Fanuc 6954.T, began developing its first generation AI chip in 2016 to power its supercomputers.
"We knew we needed to optimise energy consumption and minimise procurement risk, which could make it difficult to sustain our business," Preferred Networks co-founder and CEO Toru Nishikawa said in an interview.
Companies around the world are scrambling to secure AI chips amid excitement over the potential of the technology with Amazon AMZN.O and Microsoft MSFT.O among firms designing chips in-house.
Preferred Networks has completed the design of its second generation AI chip, which is being manufactured by TSMC 2330.TW and will power its new supercomputer.
The startup said its chips have been optimised for AI tasks, with lower power consumption and improved computing power, in part by transferring functions usually performed by hardware to software.
Preferred Networks plans to offer its latest technology for creation of large language models and drug discovery next year and pure computing power to customers by 2027.
(Reporting by Sam Nussey; Editing by Christopher Cushing)
((sam.nussey@tr.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The company, whose investors include automaker Toyota 7203.T and robot maker Fanuc 6954.T, began developing its first generation AI chip in 2016 to power its supercomputers. "We knew we needed to optimise energy consumption and minimise procurement risk, which could make it difficult to sustain our business," Preferred Networks co-founder and CEO Toru Nishikawa said in an interview. Preferred Networks plans to offer its latest technology for creation of large language models and drug discovery next year and pure computing power to customers by 2027. | The company, whose investors include automaker Toyota 7203.T and robot maker Fanuc 6954.T, began developing its first generation AI chip in 2016 to power its supercomputers. Preferred Networks has completed the design of its second generation AI chip, which is being manufactured by TSMC 2330.TW and will power its new supercomputer. The startup said its chips have been optimised for AI tasks, with lower power consumption and improved computing power, in part by transferring functions usually performed by hardware to software. | By Sam Nussey and Miho Uranaka TOKYO, Dec 20 (Reuters) - Japanese startup Preferred Networks is ramping up investment in customised artificial intelligence chips, seeking to ensure access to critical hardware as advances in generative AI spark a global investment boom. Preferred Networks has completed the design of its second generation AI chip, which is being manufactured by TSMC 2330.TW and will power its new supercomputer. The startup said its chips have been optimised for AI tasks, with lower power consumption and improved computing power, in part by transferring functions usually performed by hardware to software. | By Sam Nussey and Miho Uranaka TOKYO, Dec 20 (Reuters) - Japanese startup Preferred Networks is ramping up investment in customised artificial intelligence chips, seeking to ensure access to critical hardware as advances in generative AI spark a global investment boom. The company, whose investors include automaker Toyota 7203.T and robot maker Fanuc 6954.T, began developing its first generation AI chip in 2016 to power its supercomputers. "We knew we needed to optimise energy consumption and minimise procurement risk, which could make it difficult to sustain our business," Preferred Networks co-founder and CEO Toru Nishikawa said in an interview. | cf58cedb-ff4c-46ef-a0dd-8d32c6dfa17d |
710570.0 | 2023-12-16 09:00:00 UTC | ARKK vs. FBCG: Which is the Better Growth ETF? | DCOMP | https://www.nasdaq.com/articles/arkk-vs.-fbcg%3A-which-is-the-better-growth-etf | nan | nan | According to Morningstar Direct and Investors Business Daily, the ARK Innovation ETF (NYSEARCA:ARKK) and the Fidelity Blue Chip Growth ETF (BATS:FBCG) are the two best-performing diversified ETFs of 2023. In this case, diversified means they are not focused on a singular theme such as a country-specific ETF or a specific commodity or sector, for example.
Interestingly, both ETFs are actively managed, perhaps lending some credence to the idea that we are in a “stock picker’s market” again.
ARKK is up 67.7% year-to-date, while FBCG is up 57.3%. Both have handily outperformed the broader market. The S&P 500 (SPX) is up 23.4% year-to-date, while the Nasdaq (NDX) is up 42.6%. Which of 2023’s big winners is better for investors, going forward? Let’s compare these two hot funds.
What is the ARKK ETF’s Strategy?
Launched in 2014, ARKK is ARK Invest’s flagship fund, with $9.2 billion in assets under management. ARKK invests in companies that are driving “disruptive innovation.” ARKK describes disruptive innovation as “the introduction of a technologically enabled new product or service that potentially changes the way the world works.” ARK says that these investments can include anything from companies involved in DNA technologies and “the genomic revolution” to artificial intelligence, automation, and robotics.
Like many of ARK Invest's ETFs, including its fintech ETF, the ARK Fintech Innovation ETF (NYSEARCA:ARKF), and its Internet ETF, the ARK Next Generation Internet ETF (NYSEARCA:ARKW), ARKK has recovered from a difficult 2022 with a massive comeback in 2023 as technology stocks soar.
What is the FBCG ETF’s Strategy?
Investment giant Fidelity describes FBCG as “a diversified domestic equity growth strategy with a large-cap bias.”
The fund’s managers state, "Our investment approach focuses on companies we believe have above-average earnings growth potential with sustainable business models, for which the market has mispriced the rate and/or durability of growth.”
Furthermore, FBCG’s portfolio managers “look for events that might provide a business catalyst -- such as product cycles, a change in management, and turnaround cycles -- that could add to a stock’s true value.”
FBCG is much smaller than ARKK, with $964.6 million in assets under management. FBCG is also newer than ARKK, having launched in 2020.
Portfolio Comparison
Now that we understand the investment processes for these two actively-managed ETFs, let’s look at their respective portfolios.
ARKK owns 34 stocks; its top 10 holdings comprise 62.31% of the fund’s assets. Below is an overview of ARKK’s top 10 holdings using TipRanks’ holdings tool.
Meanwhile, FBCG owns 155 stocks, and its top 10 holdings comprise 61.5% of the fund.
Below is an overview of FBCG’s top 10 holdings using TipRanks’ holdings tool.
Interestingly, while these two actively-managed ETFs have been this year’s big winners, they do not share any top holdings.
ARKK generally skews more heavily towards more divisive, “disruptive” growth stocks like Coinbase Global (NASDAQ:COIN), Tesla (NASDAQ:TSLA), and UiPath (NYSE:PATH) (which have performed quite well this year).
Conversely, FBCG is more focused on the “blue chip” mega-cap growth stocks that more traditional tech and growth investors favor, such as Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL), and Nvidia (NASDAQ:NVDA). In this way, both of these ETFs live up to their names.
Interestingly, TipRanks’ Smart Score system seems to have a more favorable view of FBCG’s portfolio than ARKK’s portfolio. The Smart Score is a proprietary quantitative stock scoring system created by TipRanks. It gives stocks a score from 1 to 10 based on eight market key factors. A score of 8 or above is equivalent to an Outperform rating.
The score is data-driven and does not involve any human intervention. It gives an impressive nine of FBCG’s top 10 holdings Outperform-equivalent Smart Scores, but just three of ARKK’s top 10 holdings earn this distinction, giving a clear edge to FBCG in this area.
The Smart Score also gives FBCG an Outperform-equivalent ETF Smart Score of 8 while assigning ARKK a Neutral-equivalent ETF Smart Score of 6.
Comparison of Fees
These are both relatively expensive funds, but they are actively managed, and with their market-topping performance this year, their holders likely aren’t complaining.
Still, FBCG is a bit cheaper than ARKK, with an expense ratio of 0.59% versus ARKK’s expense ratio of 0.75%. This means that an investor putting $10,000 into ARKK will pay $75 in fees over the course of one year, while an investor putting the same amount into FBCG will pay $59.
This may not sound like much of a difference, but the fee disparity can make a big difference over time. Assuming each ETF returns 5% per year going forward and maintains its current expense ratio, the FBCG investor would pay $738 in total fees, while the ARKK investor would pay $931.
Is ARKK Stock a Buy, According to Analysts?
Turning to Wall Street, ARKK earns a Moderate Buy consensus rating based on 24 Buys, nine Holds, and zero Sell ratings assigned in the past three months. The average ARKK stock price target of $55.26 implies 3.9% upside potential.
Is FBCG Stock a Buy, According to Analysts?
Meanwhile, FBCG earns a Moderate Buy consensus rating based on 141 Buys, 13 Holds, and one Sell rating assigned in the past three months. The average FBCG stock price target of $37.03 implies 11.1% upside potential.
Head-to-Head Performance
FBCG only launched in 2020, so we can’t compare the performance of these two ETFs over a very long time frame. That said, we can compare how they’ve done over the past three years, and there is a clear winner here. FBCG has generated an annualized return of 5.2% over the past three years, while ARKK has lost 25.1% annually.
And the Winner Is…
Both of these funds have delivered spectacular results to their investors in 2023. Going forward, FBCG looks like the better choice for investors based on the strength of its portfolio, which TipRanks’ Smart Score system views more favorably than ARKK’s, its superior performance over the past three years, and its lower expense ratio.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | ARKK invests in companies that are driving “disruptive innovation.” ARKK describes disruptive innovation as “the introduction of a technologically enabled new product or service that potentially changes the way the world works.” ARK says that these investments can include anything from companies involved in DNA technologies and “the genomic revolution” to artificial intelligence, automation, and robotics. Comparison of Fees These are both relatively expensive funds, but they are actively managed, and with their market-topping performance this year, their holders likely aren’t complaining. Going forward, FBCG looks like the better choice for investors based on the strength of its portfolio, which TipRanks’ Smart Score system views more favorably than ARKK’s, its superior performance over the past three years, and its lower expense ratio. | According to Morningstar Direct and Investors Business Daily, the ARK Innovation ETF (NYSEARCA:ARKK) and the Fidelity Blue Chip Growth ETF (BATS:FBCG) are the two best-performing diversified ETFs of 2023. Like many of ARK Invest's ETFs, including its fintech ETF, the ARK Fintech Innovation ETF (NYSEARCA:ARKF), and its Internet ETF, the ARK Next Generation Internet ETF (NYSEARCA:ARKW), ARKK has recovered from a difficult 2022 with a massive comeback in 2023 as technology stocks soar. Meanwhile, FBCG earns a Moderate Buy consensus rating based on 141 Buys, 13 Holds, and one Sell rating assigned in the past three months. | Like many of ARK Invest's ETFs, including its fintech ETF, the ARK Fintech Innovation ETF (NYSEARCA:ARKF), and its Internet ETF, the ARK Next Generation Internet ETF (NYSEARCA:ARKW), ARKK has recovered from a difficult 2022 with a massive comeback in 2023 as technology stocks soar. Investment giant Fidelity describes FBCG as “a diversified domestic equity growth strategy with a large-cap bias.” The fund’s managers state, "Our investment approach focuses on companies we believe have above-average earnings growth potential with sustainable business models, for which the market has mispriced the rate and/or durability of growth.” Furthermore, FBCG’s portfolio managers “look for events that might provide a business catalyst -- such as product cycles, a change in management, and turnaround cycles -- that could add to a stock’s true value.” FBCG is much smaller than ARKK, with $964.6 million in assets under management. The Smart Score also gives FBCG an Outperform-equivalent ETF Smart Score of 8 while assigning ARKK a Neutral-equivalent ETF Smart Score of 6. | Interestingly, while these two actively-managed ETFs have been this year’s big winners, they do not share any top holdings. The Smart Score also gives FBCG an Outperform-equivalent ETF Smart Score of 8 while assigning ARKK a Neutral-equivalent ETF Smart Score of 6. Going forward, FBCG looks like the better choice for investors based on the strength of its portfolio, which TipRanks’ Smart Score system views more favorably than ARKK’s, its superior performance over the past three years, and its lower expense ratio. | 873241ea-3597-40ba-8a29-7a18ddaeef6e |
710571.0 | 2023-12-16 07:00:00 UTC | Mobileye Global (MBLY) Outperforms Broader Market: What You Need to Know | DCOMP | https://www.nasdaq.com/articles/mobileye-global-mbly-outperforms-broader-market%3A-what-you-need-to-know | nan | nan | The most recent trading session ended with Mobileye Global (MBLY) standing at $42.22, reflecting a +1.76% shift from the previouse trading day's closing. The stock's performance was ahead of the S&P 500's daily gain of 0.59%. Meanwhile, the Dow experienced a rise of 0.68%, and the technology-dominated Nasdaq saw an increase of 0.66%.
The maker of driver-assistance systems and autonomous driving technologies's shares have seen a decrease of 0.77% over the last month, not keeping up with the Auto-Tires-Trucks sector's gain of 3.54% and the S&P 500's gain of 5.16%.
The investment community will be closely monitoring the performance of Mobileye Global in its forthcoming earnings report. On that day, Mobileye Global is projected to report earnings of $0.23 per share, which would represent a year-over-year decline of 14.81%. Simultaneously, our latest consensus estimate expects the revenue to be $633.88 million, showing a 12.19% escalation compared to the year-ago quarter.
MBLY's full-year Zacks Consensus Estimates are calling for earnings of $0.77 per share and revenue of $2.08 billion. These results would represent year-over-year changes of -2.53% and +11.07%, respectively.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Mobileye Global. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Currently, Mobileye Global is carrying a Zacks Rank of #2 (Buy).
From a valuation perspective, Mobileye Global is currently exchanging hands at a Forward P/E ratio of 54.12. This expresses a premium compared to the average Forward P/E of 13.59 of its industry.
It is also worth noting that MBLY currently has a PEG ratio of 3.08. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Automotive - Original Equipment was holding an average PEG ratio of 0.65 at yesterday's closing price.
The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. With its current Zacks Industry Rank of 147, this industry ranks in the bottom 42% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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Mobileye Global Inc. (MBLY) : 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. | Simultaneously, our latest consensus estimate expects the revenue to be $633.88 million, showing a 12.19% escalation compared to the year-ago quarter. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. | The most recent trading session ended with Mobileye Global (MBLY) standing at $42.22, reflecting a +1.76% shift from the previouse trading day's closing. Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Mobileye Global. Click to get this free report Mobileye Global Inc. (MBLY) : Free Stock Analysis Report To read this article on Zacks.com click here. | On that day, Mobileye Global is projected to report earnings of $0.23 per share, which would represent a year-over-year decline of 14.81%. With its current Zacks Industry Rank of 147, this industry ranks in the bottom 42% of all industries, numbering over 250. The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. | On that day, Mobileye Global is projected to report earnings of $0.23 per share, which would represent a year-over-year decline of 14.81%. Currently, Mobileye Global is carrying a Zacks Rank of #2 (Buy). With its current Zacks Industry Rank of 147, this industry ranks in the bottom 42% of all industries, numbering over 250. | a182f6fe-4e59-4060-aba9-37a87bdee4b9 |
710572.0 | 2023-12-16 07:00:00 UTC | Elevance Health (ELV) Stock Falls Amid Market Uptick: What Investors Need to Know | DCOMP | https://www.nasdaq.com/articles/elevance-health-elv-stock-falls-amid-market-uptick%3A-what-investors-need-to-know | nan | nan | The most recent trading session ended with Elevance Health (ELV) standing at $465.78, reflecting a -0.76% shift from the previouse trading day's closing. This change lagged the S&P 500's 0.59% gain on the day. Elsewhere, the Dow gained 0.68%, while the tech-heavy Nasdaq added 0.66%.
The health insurer's shares have seen an increase of 0.86% over the last month, not keeping up with the Medical sector's gain of 5.08% and the S&P 500's gain of 5.16%.
Analysts and investors alike will be keeping a close eye on the performance of Elevance Health in its upcoming earnings disclosure. The company is predicted to post an EPS of $5.54, indicating a 5.93% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $41.97 billion, up 5.8% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $33.06 per share and revenue of $169.83 billion, indicating changes of +13.73% and +9.1%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Elevance Health. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Elevance Health is currently sporting a Zacks Rank of #3 (Hold).
In the context of valuation, Elevance Health is at present trading with a Forward P/E ratio of 14.2. For comparison, its industry has an average Forward P/E of 22.12, which means Elevance Health is trading at a discount to the group.
We can also see that ELV currently has a PEG ratio of 1.18. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Medical Services industry had an average PEG ratio of 1.69 as trading concluded yesterday.
The Medical Services industry is part of the Medical sector. This group has a Zacks Industry Rank of 69, putting it in the top 28% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Elevance Health, Inc. (ELV) : 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. | Analysts and investors alike will be keeping a close eye on the performance of Elevance Health in its upcoming earnings disclosure. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. | Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $33.06 per share and revenue of $169.83 billion, indicating changes of +13.73% and +9.1%, respectively, compared to the previous year. Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Elevance Health. Click to get this free report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. | Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $33.06 per share and revenue of $169.83 billion, indicating changes of +13.73% and +9.1%, respectively, compared to the previous year. The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year. | The most recent trading session ended with Elevance Health (ELV) standing at $465.78, reflecting a -0.76% shift from the previouse trading day's closing. Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $33.06 per share and revenue of $169.83 billion, indicating changes of +13.73% and +9.1%, respectively, compared to the previous year. Free: See Our Top Stock and 4 Runners Up >> Want the latest recommendations from Zacks Investment Research? | 2e64360b-00a3-4901-b898-7805b16590b8 |
710573.0 | 2023-12-16 07:00:00 UTC | Shell greenlights 15th US Gulf of Mexico oil platform | DCOMP | https://www.nasdaq.com/articles/shell-greenlights-15th-us-gulf-of-mexico-oil-platform | nan | nan | By Sabrina Valle
HOUSTON, Dec 19 (Reuters) - Shell PLC SHEL.L and Equinor ASA EQNR.OL on Tuesday greenlit a 90,000 barrels per day (bpd) oil and gas platform in the U.S. Gulf of Mexico and said it will aggressively invest in exploration to continue production through 2050.
Called Sparta, it is the first Gulf of Mexico project launched under Shell Chief Executive Wael Sawan, who earlier this year pulled back on the company's energy transition plans to boost profits from oil. Production is set to start in 2028.
"You will see us continuing to explore quite aggressively in the Gulf of Mexico and then develop those resources as well," Rich Howe, executive-vice president of Shell’s Global Deep Water business, told Reuters.
The investment cost was not disclosed.
Shell this year scrapped a plan to reduce oil output by 1% to 2% per year and said it would keep liquids production flat for 2030. It has not disclosed plans per basin, but it has been investing in the U.S. Gulf after reducing production elsewhere.
"We will target to do better than hold (production) flat" in the U.S. Gulf, Howe said, adding that a 10% natural decline meant the company would need new output of 40,000 bpd every year to keep production steady.
Shell holds a 51% stake in Sparta and will operate the platform, with Equinor holding the remaining share. The project originally was called North Platte and operated by TotalEnergies, which left the project in 2022.
In a prior role as director of Shell's upstream business, Sawan oversaw the U.S. Gulf 100,000 bpd Whale project, which is set to start production next year with partner Chevron Corp CVX.N.
Before rising to CEO, Sawan oversaw Shell's divestment in the U.S. shale basin, which helped the company largely achieve a previous goal to cut oil output by 20% by 2030.
This year, Shell and Equinor started production at the 100,000 bpd Vito oil platform, the model for both the subsequent Whale and Sparta projects. Sparta will be Shell’s 15th project in the Gulf of Mexico and could reach up to 100,000 bpd.
Shell will still be producing from the basin in 2050 as it offers lower costs and reduced emissions during the production process relative to other oil assets, Howe said.
(Reporting by Sabrina Valle; Editing by Sonali Paul)
((sabrina.valle@tr.com; Twitter: @sabrinavalle))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Sabrina Valle HOUSTON, Dec 19 (Reuters) - Shell PLC SHEL.L and Equinor ASA EQNR.OL on Tuesday greenlit a 90,000 barrels per day (bpd) oil and gas platform in the U.S. Gulf of Mexico and said it will aggressively invest in exploration to continue production through 2050. Called Sparta, it is the first Gulf of Mexico project launched under Shell Chief Executive Wael Sawan, who earlier this year pulled back on the company's energy transition plans to boost profits from oil. In a prior role as director of Shell's upstream business, Sawan oversaw the U.S. Gulf 100,000 bpd Whale project, which is set to start production next year with partner Chevron Corp CVX.N. | By Sabrina Valle HOUSTON, Dec 19 (Reuters) - Shell PLC SHEL.L and Equinor ASA EQNR.OL on Tuesday greenlit a 90,000 barrels per day (bpd) oil and gas platform in the U.S. Gulf of Mexico and said it will aggressively invest in exploration to continue production through 2050. In a prior role as director of Shell's upstream business, Sawan oversaw the U.S. Gulf 100,000 bpd Whale project, which is set to start production next year with partner Chevron Corp CVX.N. This year, Shell and Equinor started production at the 100,000 bpd Vito oil platform, the model for both the subsequent Whale and Sparta projects. | By Sabrina Valle HOUSTON, Dec 19 (Reuters) - Shell PLC SHEL.L and Equinor ASA EQNR.OL on Tuesday greenlit a 90,000 barrels per day (bpd) oil and gas platform in the U.S. Gulf of Mexico and said it will aggressively invest in exploration to continue production through 2050. In a prior role as director of Shell's upstream business, Sawan oversaw the U.S. Gulf 100,000 bpd Whale project, which is set to start production next year with partner Chevron Corp CVX.N. This year, Shell and Equinor started production at the 100,000 bpd Vito oil platform, the model for both the subsequent Whale and Sparta projects. | Shell this year scrapped a plan to reduce oil output by 1% to 2% per year and said it would keep liquids production flat for 2030. This year, Shell and Equinor started production at the 100,000 bpd Vito oil platform, the model for both the subsequent Whale and Sparta projects. Sparta will be Shell’s 15th project in the Gulf of Mexico and could reach up to 100,000 bpd. | 3661517a-686f-4c90-8ce1-7791c0908635 |
710574.0 | 2023-12-16 07:00:00 UTC | Australian shares rise in broad-based buying, gold stocks lead gains | DCOMP | https://www.nasdaq.com/articles/australian-shares-rise-in-broad-based-buying-gold-stocks-lead-gains | nan | nan | Dec 20 (Reuters) - Australian shares extended gains on Wednesday, led by gold and energy stocks in broad-based buying after the country's central bank flagged signs of progress on inflation in its year-end policy meeting.
The S&P/ASX 200 index .AXJO rose 0.6% to 7,530.50 by 2315 GMT. The benchmark climbed 0.8% on Tuesday.
Minutes of the Reserve Bank of Australia's December policy meeting showed that the central bank debated raising interest rates for a second straight month but ultimately chose to hold off until further data was available.
Globally, investors awaited the U.S. November core personal consumption expenditure index report, due out on Dec. 22, for further clarity on the Federal Reserve's future policy decisions.
In Sydney, gold stocks .AXGD jumped 2%, hitting their highest level since Dec. 5, after bullion prices rose overnight against a falling U.S. dollar and Treasury yields. GOL/
Northern Star Resources NST.AX advanced 2.5%, while Evolution Mining EVN.AX traded 3.6% higher.
Energy stocks .AXEJ rose 0.7%, in line with gains in oil prices as attacks on ships in the Red Sea disrupted maritime trade and forced more companies to reroute vessels. O/R
Top energy firms Woodside Energy WDS.AX and Santos STO.AX were up 1.5% and 1.3%, respectively.
Rate-sensitive financials .AXFJ jumped 0.6%, with the "Big Four" banks gaining between 0.2% and 0.9%. Mining stocks .AXMM rose 0.6%, with BHP Group BHP.AX up 0.7%.
Technology stocks .AXIJ climbed 0.3%, tracking overnight gains in their Wall Street peers. Xero XRO.AX rose 0.9%. .N
Healthcare stocks .AXHJ advanced 0.6% and were on track for a ninth consecutive session of gains. Sector major CSL Ltd CSL.AX rose 0.4%.
New Zealand's benchmark S&P/NZX 50 index .NZ50 inched 0.02% higher to 11,619.84.
(Reporting by Adwitiya Srivastava in Bengaluru; Editing by Subhranshu Sahu)
((Adwitiya.Srivastava@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. | Dec 20 (Reuters) - Australian shares extended gains on Wednesday, led by gold and energy stocks in broad-based buying after the country's central bank flagged signs of progress on inflation in its year-end policy meeting. Globally, investors awaited the U.S. November core personal consumption expenditure index report, due out on Dec. 22, for further clarity on the Federal Reserve's future policy decisions. Energy stocks .AXEJ rose 0.7%, in line with gains in oil prices as attacks on ships in the Red Sea disrupted maritime trade and forced more companies to reroute vessels. | Minutes of the Reserve Bank of Australia's December policy meeting showed that the central bank debated raising interest rates for a second straight month but ultimately chose to hold off until further data was available. In Sydney, gold stocks .AXGD jumped 2%, hitting their highest level since Dec. 5, after bullion prices rose overnight against a falling U.S. dollar and Treasury yields. Technology stocks .AXIJ climbed 0.3%, tracking overnight gains in their Wall Street peers. | Dec 20 (Reuters) - Australian shares extended gains on Wednesday, led by gold and energy stocks in broad-based buying after the country's central bank flagged signs of progress on inflation in its year-end policy meeting. In Sydney, gold stocks .AXGD jumped 2%, hitting their highest level since Dec. 5, after bullion prices rose overnight against a falling U.S. dollar and Treasury yields. Energy stocks .AXEJ rose 0.7%, in line with gains in oil prices as attacks on ships in the Red Sea disrupted maritime trade and forced more companies to reroute vessels. | Minutes of the Reserve Bank of Australia's December policy meeting showed that the central bank debated raising interest rates for a second straight month but ultimately chose to hold off until further data was available. GOL/ Northern Star Resources NST.AX advanced 2.5%, while Evolution Mining EVN.AX traded 3.6% higher. New Zealand's benchmark S&P/NZX 50 index .NZ50 inched 0.02% higher to 11,619.84. | de1cddfb-0b82-4806-970b-7c75fb4838bb |
710575.0 | 2023-12-16 07:00:00 UTC | COLUMN-Funds less negative on copper as supply landscape shifts: Andy Home | DCOMP | https://www.nasdaq.com/articles/column-funds-less-negative-on-copper-as-supply-landscape-shifts%3A-andy-home | nan | nan | By Andy Home
LONDON, Dec 19 (Reuters) - Funds have been reducing their bets on lower copper prices as macroeconomic headwinds abate and the market collectively reassesses copper's supply dynamics.
Money managers are now marginally net long of copper on both the London Metal Exchange (LME) and CME contracts.
The shift in positioning has been playing out since the end of October, when LME three-month copper CMCU3 was threatening to break down through key technical support at May lows between $7,867 and $7,871 per metric ton.
The anticipated collapse never happened and London copper has since recovered to $8,530.
The price rebound has triggered a change of stance among short-term momentum funds. But the effect has been amplified by expectations that the U.S. rate tightening cycle has passed its peak and by signs that copper supply is not as robust as previously thought.
BEARS BEAT A RETREAT
Fund managers were collectively net short of CME copper to the tune of 21,553 contracts at the end of October, when the price looked likely to break out of its 2023 range on the downside.
They have since shifted to a collective net long of 6,866 contracts, according to the most recent Commitments of Traders Report.
The turnaround reflects a sharp reduction in outright short positions from 76,717 contracts to 46,558 contracts while outright long positions are little changed.
Investor positioning in London has closely mirrored that on the other side of the Atlantic.
Investment funds have collectively flipped from a net LME short position of 15,116 contracts in October to a net long position of 15,046 contracts, with bear bets falling from 47,714 contracts to 25,674.
As with the CME copper contract, there is little enthusiasm for going outright long, particularly among the heavier-weight investment players captured in the LME's "other financial" category, but the collective short play is over for now.
RETHINKING SUPPLY
Federal Reserve Chair Jerome Powell last week said that the US central bank was likely to be done with raising interest rates, which has lifted some of the pressure weighing on copper in recent months.
That change in macro mood music has coincided with a string of bullish developments within copper's micro dynamics.
Copper supply, once again, is turning out to be a lot less resilient than expected.
Although most analysts are almost universally bullish on copper's medium-term prospects thanks to the metal's core role in the energy transition story, the shorter-term outlook was significantly different owing to an expected surge in mine supply this year and next.
However, the prospect of near-term surplus is fading fast.
The first warning sign was the low treatment charges negotiated between Chinese smelters and miners for next year's deliveries.
Chinese smelters were hoping at the very least to roll over this year's terms of $88 a ton and 8.8 cents per pound for converting concentrates to refined metal, but they have accepted a reduction to $80 and 8.0 cents respectively for 2024.
The first such drop in three years signalled a mutual admission that the raw materials market wasn't going to be as well supplied as expected.
CLOSURE AND DOWNGRADES
It seems to have been a good call. Within days of the benchmark smelter terms being agreed, one major mine has been forced to close while two big producers have downgraded their production guidance.
The Panama government ordered the closure of First Quantum's FM.TO Cobre Panama mine this month after the country's top court ruled that the company's mining licence was unconstitutional.
The mine entered production in 2019 and generated 350,000 tons of contained copper last year, meaning its loss is a big hit to global supply.
Both Anglo American AAL.L and Brazil's Vale VALE3.SA, meanwhile, have lowered production guidance for 2024 and 2025.
Anglo has reduced its guidance by 180,000-210,000 tons next year and by 150,000-180,000 tons in 2025, citing geological problems at its Quellaveco mine in Peru and a planned temporary closure of a processing plant at Los Bronces in Chile.
Vale's updated guidance was less dramatic but sufficient for analysts at Macquarie Bank to take a cumulative 100,000 tons off their mine supply forecasts through 2026.
They are not alone in going back to their supply calculations.
A pretty hard consensus that copper was heading for a period of supply-demand surplus both in 2024 and in 2025 is rapidly unravelling.
The newly emerging consensus is that the concentrates market will at best be balanced and possibly in deficit next year with flow-through implications for the refined market.
Investors are not yet persuaded to go long on copper. LME spreads, currently in wide contango, suggest there is no immediate shortage of copper.
But copper's shifting statistical landscape has persuaded many financial players there's little point in expecting copper to break lower any time soon.
The opinions expressed here are those of the author, a columnist for Reuters.
Funds cut short positions on CME copper https://tmsnrt.rs/3GQGDo8
Investment turns flip to net long on copper https://tmsnrt.rs/3RM1dMz
(Editing by David Goodman)
((andy.home@thomsonreuters.com, 44-207-542-4412 and on Twitter https://twitter.com/AndyHomeMetals))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Fund managers were collectively net short of CME copper to the tune of 21,553 contracts at the end of October, when the price looked likely to break out of its 2023 range on the downside. Federal Reserve Chair Jerome Powell last week said that the US central bank was likely to be done with raising interest rates, which has lifted some of the pressure weighing on copper in recent months. Although most analysts are almost universally bullish on copper's medium-term prospects thanks to the metal's core role in the energy transition story, the shorter-term outlook was significantly different owing to an expected surge in mine supply this year and next. | The turnaround reflects a sharp reduction in outright short positions from 76,717 contracts to 46,558 contracts while outright long positions are little changed. Investment funds have collectively flipped from a net LME short position of 15,116 contracts in October to a net long position of 15,046 contracts, with bear bets falling from 47,714 contracts to 25,674. Funds cut short positions on CME copper https://tmsnrt.rs/3GQGDo8 Investment turns flip to net long on copper https://tmsnrt.rs/3RM1dMz (Editing by David Goodman) ((andy.home@thomsonreuters.com, 44-207-542-4412 and on Twitter https://twitter.com/AndyHomeMetals)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Andy Home LONDON, Dec 19 (Reuters) - Funds have been reducing their bets on lower copper prices as macroeconomic headwinds abate and the market collectively reassesses copper's supply dynamics. Investment funds have collectively flipped from a net LME short position of 15,116 contracts in October to a net long position of 15,046 contracts, with bear bets falling from 47,714 contracts to 25,674. Funds cut short positions on CME copper https://tmsnrt.rs/3GQGDo8 Investment turns flip to net long on copper https://tmsnrt.rs/3RM1dMz (Editing by David Goodman) ((andy.home@thomsonreuters.com, 44-207-542-4412 and on Twitter https://twitter.com/AndyHomeMetals)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Fund managers were collectively net short of CME copper to the tune of 21,553 contracts at the end of October, when the price looked likely to break out of its 2023 range on the downside. Investment funds have collectively flipped from a net LME short position of 15,116 contracts in October to a net long position of 15,046 contracts, with bear bets falling from 47,714 contracts to 25,674. As with the CME copper contract, there is little enthusiasm for going outright long, particularly among the heavier-weight investment players captured in the LME's "other financial" category, but the collective short play is over for now. | 0d5981ac-40b9-4739-a6d3-4543b561acec |
710576.0 | 2023-12-16 07:00:00 UTC | Why Marathon Digital and Other Crypto Mining Stocks Surged Today | DCOMP | https://www.nasdaq.com/articles/why-marathon-digital-and-other-crypto-mining-stocks-surged-today | nan | nan | The crypto mining industry consolidated a bit on Tuesday, and in reaction, investors bid up not only Marathon Digital Holdings (NASDAQ: MARA) -- the company doing the consolidating -- but other notable stocks in the business.
Marathon itself saw its stock price rise by almost 11%, while the smaller Cipher Mining (NASDAQ: CIFR) saw a more than 14% gain. TerraWulf (NASDAQ: WULF) and SOS Limited (NYSE: SOS) were also winners on the day, advancing a respective 9% and 10%. For perspective, the broad S&P 500 index inched up only 0.6%.
Marathon makes a nearly $180 million deal
Before market open, Marathon shook up the crypto miner scene by announcing that it had agreed to acquire a pair of Bitcoin (CRYPTO: BTC) mining sites. It bought the pair from subsidiaries of finance company Generate Capital at a price of $178.6 million. This purchase price is to be paid entirely in cash.
Together, the two sites -- one located in Texas, the other in Nebraska -- boast a total of 390 megawatts of capacity. That boils down to $458,000 per megawatt for the deal.
It's a historic buy for Marathon, as the pair will become its first fully owned sites. After the deal closes, the company's capacity will amount to 910 megawatts. Of this, 45% will consist of fully owned facilities, with the remainder held by third-party business partners.
In its press release on the acquisition, Marathon said that it expects to reduce the cost per coin of its Bitcoin mining operations at the new sites by 30%.
It also quoted CEO Fred Thiel as saying the deal is going to be transformative, morphing the company into "a more sophisticated and mature organization with a diversified portfolio of Bitcoin mining technologies and assets."
Investors were clearly buying that argument, judging by how eagerly they pounced on Marathon stock post-announcement. The deal also led to speculation about other buyouts (and of the generally solid demand for Bitcoin mining facilities), hence the price appreciation of fellow miners like TerraWulf and SOS.
Going bananas for Bitcoin
Sentiment on Bitcoin miners, of course, generally depends on how the market feels about Bitcoin. While the price of the leading crypto has eased over the past few days, it's still very high on a historic basis. In fact, it's only topped the current $42,000-plus level during two bull runs earlier this decade. And if Bitcoin is a hot item, you can bet that any miner making a consolidation move is going to be rewarded accordingly.
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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 its press release on the acquisition, Marathon said that it expects to reduce the cost per coin of its Bitcoin mining operations at the new sites by 30%. It also quoted CEO Fred Thiel as saying the deal is going to be transformative, morphing the company into "a more sophisticated and mature organization with a diversified portfolio of Bitcoin mining technologies and assets." The deal also led to speculation about other buyouts (and of the generally solid demand for Bitcoin mining facilities), hence the price appreciation of fellow miners like TerraWulf and SOS. | Marathon makes a nearly $180 million deal Before market open, Marathon shook up the crypto miner scene by announcing that it had agreed to acquire a pair of Bitcoin (CRYPTO: BTC) mining sites. Before you buy stock in Marathon Digital, 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 Marathon Digital wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 18, 2023 Eric Volkman has positions in Bitcoin. | The crypto mining industry consolidated a bit on Tuesday, and in reaction, investors bid up not only Marathon Digital Holdings (NASDAQ: MARA) -- the company doing the consolidating -- but other notable stocks in the business. Marathon makes a nearly $180 million deal Before market open, Marathon shook up the crypto miner scene by announcing that it had agreed to acquire a pair of Bitcoin (CRYPTO: BTC) mining sites. Before you buy stock in Marathon Digital, 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 Marathon Digital wasn't one of them. | Marathon makes a nearly $180 million deal Before market open, Marathon shook up the crypto miner scene by announcing that it had agreed to acquire a pair of Bitcoin (CRYPTO: BTC) mining sites. It's a historic buy for Marathon, as the pair will become its first fully owned sites. Before you buy stock in Marathon Digital, 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 Marathon Digital wasn't one of them. | dc4499e1-57af-40f8-807f-a5128fb01317 |
710577.0 | 2023-12-16 07:00:00 UTC | Tenet Healthcare (THC) Outperforms Broader Market: What You Need to Know | DCOMP | https://www.nasdaq.com/articles/tenet-healthcare-thc-outperforms-broader-market%3A-what-you-need-to-know | nan | nan | Tenet Healthcare (THC) closed at $75.56 in the latest trading session, marking a +0.77% move from the prior day. This move outpaced the S&P 500's daily gain of 0.59%. At the same time, the Dow added 0.68%, and the tech-heavy Nasdaq gained 0.66%.
Prior to today's trading, shares of the hospital operator had gained 15.44% over the past month. This has outpaced the Medical sector's gain of 5.08% and the S&P 500's gain of 5.16% in that time.
The investment community will be closely monitoring the performance of Tenet Healthcare in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $1.54, reflecting a 21.43% decrease from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $5.23 billion, up 4.85% from the year-ago period.
THC's full-year Zacks Consensus Estimates are calling for earnings of $5.86 per share and revenue of $20.4 billion. These results would represent year-over-year changes of -13.82% and +6.4%, respectively.
Investors should also take note of any recent adjustments to analyst estimates for Tenet Healthcare. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.31% higher. Tenet Healthcare currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Tenet Healthcare is currently trading at a Forward P/E ratio of 12.8. This indicates a discount in contrast to its industry's Forward P/E of 14.61.
We can also see that THC currently has a PEG ratio of 4.21. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Medical - Hospital industry had an average PEG ratio of 1.77.
The Medical - Hospital industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 171, placing it within the bottom 33% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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Tenet Healthcare Corporation (THC) : 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. | Tenet Healthcare (THC) closed at $75.56 in the latest trading session, marking a +0.77% move from the prior day. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. | Tenet Healthcare (THC) closed at $75.56 in the latest trading session, marking a +0.77% move from the prior day. The investment community will be closely monitoring the performance of Tenet Healthcare in its forthcoming earnings report. Click to get this free report Tenet Healthcare Corporation (THC) : Free Stock Analysis Report To read this article on Zacks.com click here. | At present, this industry carries a Zacks Industry Rank of 171, placing it within the bottom 33% of over 250 industries. The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year. | Tenet Healthcare (THC) closed at $75.56 in the latest trading session, marking a +0.77% move from the prior day. By the end of yesterday's trading, the Medical - Hospital industry had an average PEG ratio of 1.77. At present, this industry carries a Zacks Industry Rank of 171, placing it within the bottom 33% of over 250 industries. | 0f24aa03-4bd0-4103-9268-cea95ab1c39f |
710578.0 | 2023-12-16 07:00:00 UTC | Atlassian (TEAM) Laps the Stock Market: Here's Why | DCOMP | https://www.nasdaq.com/articles/atlassian-team-laps-the-stock-market%3A-heres-why-0 | nan | nan | In the latest trading session, Atlassian (TEAM) closed at $233.07, marking a +1.97% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.59%. Elsewhere, the Dow saw an upswing of 0.68%, while the tech-heavy Nasdaq appreciated by 0.66%.
Shares of the company witnessed a gain of 22.82% over the previous month, beating the performance of the Computer and Technology sector with its gain of 4.11% and the S&P 500's gain of 5.16%.
Investors will be eagerly watching for the performance of Atlassian in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.61, signifying a 35.56% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $1.02 billion, indicating a 16.81% growth compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.39 per share and a revenue of $4.13 billion, indicating changes of +24.48% and +16.85%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for Atlassian. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.97% lower. Atlassian is currently a Zacks Rank #3 (Hold).
From a valuation perspective, Atlassian is currently exchanging hands at a Forward P/E ratio of 95.47. This represents a premium compared to its industry's average Forward P/E of 39.68.
We can additionally observe that TEAM currently boasts a PEG ratio of 4.77. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Internet - Software industry had an average PEG ratio of 1.8 as trading concluded yesterday.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 28, positioning it in the top 12% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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Atlassian Corporation PLC (TEAM) : 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. | In the meantime, our current consensus estimate forecasts the revenue to be $1.02 billion, indicating a 16.81% growth compared to the corresponding quarter of the prior year. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. | In the latest trading session, Atlassian (TEAM) closed at $233.07, marking a +1.97% move from the previous day. In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.39 per share and a revenue of $4.13 billion, indicating changes of +24.48% and +16.85%, respectively, from the former year. Click to get this free report Atlassian Corporation PLC (TEAM) : Free Stock Analysis Report To read this article on Zacks.com click here. | Currently, this industry holds a Zacks Industry Rank of 28, positioning it in the top 12% of all 250+ industries. The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year. | Currently, this industry holds a Zacks Industry Rank of 28, positioning it in the top 12% of all 250+ industries. The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Free: See Our Top Stock and 4 Runners Up >> Want the latest recommendations from Zacks Investment Research? | de86af8d-3cd8-40f7-8e14-c920418a1b2b |
710579.0 | 2023-12-16 07:00:00 UTC | Here's Why NXP Semiconductors (NXPI) Gained But Lagged the Market Today | DCOMP | https://www.nasdaq.com/articles/heres-why-nxp-semiconductors-nxpi-gained-but-lagged-the-market-today | nan | nan | In the latest trading session, NXP Semiconductors (NXPI) closed at $229.38, marking a +0.02% move from the previous day. The stock's change was less than the S&P 500's daily gain of 0.59%. On the other hand, the Dow registered a gain of 0.68%, and the technology-centric Nasdaq increased by 0.66%.
Coming into today, shares of the chipmaker had gained 12.78% in the past month. In that same time, the Computer and Technology sector gained 4.11%, while the S&P 500 gained 5.16%.
Investors will be eagerly watching for the performance of NXP Semiconductors in its upcoming earnings disclosure. The company is forecasted to report an EPS of $3.64, showcasing a 2.41% downward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $3.4 billion, indicating a 2.52% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $13.95 per share and revenue of $13.25 billion. These totals would mark changes of -11.26% and +0.34%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for NXP Semiconductors. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.4% higher. NXP Semiconductors is currently a Zacks Rank #3 (Hold).
Digging into valuation, NXP Semiconductors currently has a Forward P/E ratio of 16.44. This expresses a discount compared to the average Forward P/E of 27.91 of its industry.
We can additionally observe that NXPI currently boasts a PEG ratio of 0.99. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. NXPI's industry had an average PEG ratio of 3.89 as of yesterday's close.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 206, this industry ranks in the bottom 19% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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NXP Semiconductors N.V. (NXPI) : 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. | In the meantime, our current consensus estimate forecasts the revenue to be $3.4 billion, indicating a 2.52% growth compared to the corresponding quarter of the prior year. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system. | In the latest trading session, NXP Semiconductors (NXPI) closed at $229.38, marking a +0.02% move from the previous day. Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $13.95 per share and revenue of $13.25 billion. Click to get this free report NXP Semiconductors N.V. (NXPI) : Free Stock Analysis Report To read this article on Zacks.com click here. | With its current Zacks Industry Rank of 206, this industry ranks in the bottom 19% of all industries, numbering over 250. The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year. | In the latest trading session, NXP Semiconductors (NXPI) closed at $229.38, marking a +0.02% move from the previous day. In that same time, the Computer and Technology sector gained 4.11%, while the S&P 500 gained 5.16%. With its current Zacks Industry Rank of 206, this industry ranks in the bottom 19% of all industries, numbering over 250. | 63e7ef9c-9611-4c72-ba87-52aa5d742a2d |
710580.0 | 2023-12-16 07:00:00 UTC | Fidelity National Information Services (FIS) Stock Declines While Market Improves: Some Information for Investors | DCOMP | https://www.nasdaq.com/articles/fidelity-national-information-services-fis-stock-declines-while-market-improves%3A-some | nan | nan | The most recent trading session ended with Fidelity National Information Services (FIS) standing at $59.92, reflecting a -0.2% shift from the previouse trading day's closing. This change lagged the S&P 500's 0.59% gain on the day. At the same time, the Dow added 0.68%, and the tech-heavy Nasdaq gained 0.66%.
Coming into today, shares of the banking and payment technologies company had gained 9.56% in the past month. In that same time, the Business Services sector gained 7.2%, while the S&P 500 gained 5.16%.
Market participants will be closely following the financial results of Fidelity National Information Services in its upcoming release. The company is forecasted to report an EPS of $0.95, showcasing a 44.44% downward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $2.52 billion, indicating a 32.18% downward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $3.52 per share and revenue of $10.37 billion, which would represent changes of -47.07% and -28.63%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Fidelity National Information Services. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.35% lower. Fidelity National Information Services is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Fidelity National Information Services is presently being traded at a Forward P/E ratio of 17.04. This expresses a premium compared to the average Forward P/E of 14.77 of its industry.
It is also worth noting that FIS currently has a PEG ratio of 1.65. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Financial Transaction Services stocks are, on average, holding a PEG ratio of 1.23 based on yesterday's closing prices.
The Financial Transaction Services industry is part of the Business Services sector. At present, this industry carries a Zacks Industry Rank of 142, placing it within the bottom 44% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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Fidelity National Information Services, Inc. (FIS) : 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. | Market participants will be closely following the financial results of Fidelity National Information Services in its upcoming release. Financial Transaction Services stocks are, on average, holding a PEG ratio of 1.23 based on yesterday's closing prices. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. | The most recent trading session ended with Fidelity National Information Services (FIS) standing at $59.92, reflecting a -0.2% shift from the previouse trading day's closing. Financial Transaction Services stocks are, on average, holding a PEG ratio of 1.23 based on yesterday's closing prices. Click to get this free report Fidelity National Information Services, Inc. (FIS) : Free Stock Analysis Report To read this article on Zacks.com click here. | The most recent trading session ended with Fidelity National Information Services (FIS) standing at $59.92, reflecting a -0.2% shift from the previouse trading day's closing. The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year. | Investors should also take note of any recent adjustments to analyst estimates for Fidelity National Information Services. In terms of valuation, Fidelity National Information Services is presently being traded at a Forward P/E ratio of 17.04. Financial Transaction Services stocks are, on average, holding a PEG ratio of 1.23 based on yesterday's closing prices. | 60433238-142b-476f-9d23-7cd444c60971 |
710581.0 | 2023-12-16 07:00:00 UTC | Skyworks Solutions (SWKS) Ascends But Remains Behind Market: Some Facts to Note | DCOMP | https://www.nasdaq.com/articles/skyworks-solutions-swks-ascends-but-remains-behind-market%3A-some-facts-to-note | nan | nan | The latest trading session saw Skyworks Solutions (SWKS) ending at $111.61, denoting a +0.31% adjustment from its last day's close. The stock trailed the S&P 500, which registered a daily gain of 0.59%. Meanwhile, the Dow gained 0.68%, and the Nasdaq, a tech-heavy index, added 0.66%.
The chipmaker's shares have seen an increase of 17.45% over the last month, surpassing the Computer and Technology sector's gain of 4.11% and the S&P 500's gain of 5.16%.
The investment community will be closely monitoring the performance of Skyworks Solutions in its forthcoming earnings report. In that report, analysts expect Skyworks Solutions to post earnings of $1.95 per share. This would mark a year-over-year decline of 24.71%. Meanwhile, our latest consensus estimate is calling for revenue of $1.2 billion, down 9.44% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $7.02 per share and revenue of $4.46 billion, which would represent changes of -17.61% and -6.61%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Skyworks Solutions. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.39% lower within the past month. Currently, Skyworks Solutions is carrying a Zacks Rank of #5 (Strong Sell).
Looking at its valuation, Skyworks Solutions is holding a Forward P/E ratio of 15.84. This represents no noticeable deviation compared to its industry's average Forward P/E of 15.84.
It's also important to note that SWKS currently trades at a PEG ratio of 1.06. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As of the close of trade yesterday, the Semiconductors - Radio Frequency industry held an average PEG ratio of 1.22.
The Semiconductors - Radio Frequency industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 222, which puts it in the bottom 12% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow SWKS in the coming trading sessions, be sure to utilize Zacks.com.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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Skyworks Solutions, Inc. (SWKS) : 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. | Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. | The latest trading session saw Skyworks Solutions (SWKS) ending at $111.61, denoting a +0.31% adjustment from its last day's close. As of the close of trade yesterday, the Semiconductors - Radio Frequency industry held an average PEG ratio of 1.22. Click to get this free report Skyworks Solutions, Inc. (SWKS) : Free Stock Analysis Report To read this article on Zacks.com click here. | For the full year, the Zacks Consensus Estimates are projecting earnings of $7.02 per share and revenue of $4.46 billion, which would represent changes of -17.61% and -6.61%, respectively, from the prior year. This industry currently has a Zacks Industry Rank of 222, which puts it in the bottom 12% of all 250+ industries. The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. | The latest trading session saw Skyworks Solutions (SWKS) ending at $111.61, denoting a +0.31% adjustment from its last day's close. For the full year, the Zacks Consensus Estimates are projecting earnings of $7.02 per share and revenue of $4.46 billion, which would represent changes of -17.61% and -6.61%, respectively, from the prior year. Investors might also notice recent changes to analyst estimates for Skyworks Solutions. | 73f09936-71fc-44ab-86d5-a724b6303f17 |
710582.0 | 2023-12-16 07:00:00 UTC | Fastenal (FAST) Rises Yet Lags Behind Market: Some Facts Worth Knowing | DCOMP | https://www.nasdaq.com/articles/fastenal-fast-rises-yet-lags-behind-market%3A-some-facts-worth-knowing-0 | nan | nan | In the latest trading session, Fastenal (FAST) closed at $64.69, marking a +0.09% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 0.59% for the day. On the other hand, the Dow registered a gain of 0.68%, and the technology-centric Nasdaq increased by 0.66%.
Shares of the maker of industrial and construction fasteners have appreciated by 6.09% over the course of the past month, outperforming the Retail-Wholesale sector's gain of 4.97% and the S&P 500's gain of 5.16%.
Investors will be eagerly watching for the performance of Fastenal in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on January 18, 2024. The company's upcoming EPS is projected at $0.45, signifying a 4.65% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $1.75 billion, indicating a 3.12% upward movement from the same quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2 per share and revenue of $7.34 billion. These totals would mark changes of +5.82% and +5.1%, respectively, from last year.
Any recent changes to analyst estimates for Fastenal should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. At present, Fastenal boasts a Zacks Rank of #3 (Hold).
Looking at its valuation, Fastenal is holding a Forward P/E ratio of 32.24. This signifies a premium in comparison to the average Forward P/E of 11.59 for its industry.
One should further note that FAST currently holds a PEG ratio of 3.58. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Building Products - Retail industry held an average PEG ratio of 2.1.
The Building Products - Retail industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 92, which puts it in the top 37% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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Fastenal Company (FAST) : 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. | Alongside, our most recent consensus estimate is anticipating revenue of $1.75 billion, indicating a 3.12% upward movement from the same quarter last year. Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2 per share and revenue of $7.34 billion. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system. | In the latest trading session, Fastenal (FAST) closed at $64.69, marking a +0.09% move from the previous day. As of the close of trade yesterday, the Building Products - Retail industry held an average PEG ratio of 2.1. Click to get this free report Fastenal Company (FAST) : Free Stock Analysis Report To read this article on Zacks.com click here. | This industry currently has a Zacks Industry Rank of 92, which puts it in the top 37% of all 250+ industries. The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year. | In the latest trading session, Fastenal (FAST) closed at $64.69, marking a +0.09% move from the previous day. Any recent changes to analyst estimates for Fastenal should also be noted by investors. Free: See Our Top Stock and 4 Runners Up >> Want the latest recommendations from Zacks Investment Research? | d31019e8-4c18-46fa-8714-8322519ea43f |
710583.0 | 2023-12-16 07:00:00 UTC | Northrop Grumman (NOC) Stock Slides as Market Rises: Facts to Know Before You Trade | DCOMP | https://www.nasdaq.com/articles/northrop-grumman-noc-stock-slides-as-market-rises%3A-facts-to-know-before-you-trade | nan | nan | In the latest trading session, Northrop Grumman (NOC) closed at $464.16, marking a -0.27% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 0.59% for the day. On the other hand, the Dow registered a gain of 0.68%, and the technology-centric Nasdaq increased by 0.66%.
Shares of the defense contractor have depreciated by 0.09% over the course of the past month, underperforming the Aerospace sector's gain of 6.68% and the S&P 500's gain of 5.16%.
Investors will be eagerly watching for the performance of Northrop Grumman in its upcoming earnings disclosure. The company's upcoming EPS is projected at $5.77, signifying a 23.07% drop compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $10.4 billion, indicating a 3.7% upward movement from the same quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $22.73 per share and revenue of $39.02 billion. These totals would mark changes of -11% and +6.61%, respectively, from last year.
Any recent changes to analyst estimates for Northrop Grumman should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. At present, Northrop Grumman boasts a Zacks Rank of #3 (Hold).
Looking at its valuation, Northrop Grumman is holding a Forward P/E ratio of 20.48. This signifies a premium in comparison to the average Forward P/E of 17.68 for its industry.
One should further note that NOC currently holds a PEG ratio of 8.46. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Aerospace - Defense industry held an average PEG ratio of 1.9.
The Aerospace - Defense industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 72, which puts it in the top 29% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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Northrop Grumman Corporation (NOC) : 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. | Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $22.73 per share and revenue of $39.02 billion. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. | In the latest trading session, Northrop Grumman (NOC) closed at $464.16, marking a -0.27% move from the previous day. As of the close of trade yesterday, the Aerospace - Defense industry held an average PEG ratio of 1.9. Click to get this free report Northrop Grumman Corporation (NOC) : Free Stock Analysis Report To read this article on Zacks.com click here. | This industry currently has a Zacks Industry Rank of 72, which puts it in the top 29% of all 250+ industries. The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year. | In the latest trading session, Northrop Grumman (NOC) closed at $464.16, marking a -0.27% move from the previous day. Any recent changes to analyst estimates for Northrop Grumman should also be noted by investors. Free: See Our Top Stock and 4 Runners Up >> Want the latest recommendations from Zacks Investment Research? | 9610d814-d156-482a-b1c8-33d7f763a77f |
710584.0 | 2023-12-16 07:00:00 UTC | James Hardie (JHX) Outperforms Broader Market: What You Need to Know | DCOMP | https://www.nasdaq.com/articles/james-hardie-jhx-outperforms-broader-market%3A-what-you-need-to-know | nan | nan | In the latest market close, James Hardie (JHX) reached $35.64, with a +1.92% movement compared to the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.59%. Meanwhile, the Dow gained 0.68%, and the Nasdaq, a tech-heavy index, added 0.66%.
The fiber cement maker's stock has climbed by 8.37% in the past month, falling short of the Construction sector's gain of 13.44% and outpacing the S&P 500's gain of 5.16%.
The investment community will be paying close attention to the earnings performance of James Hardie in its upcoming release.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.58 per share and a revenue of $3.94 billion, representing changes of +16.18% and +4.37%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for James Hardie. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.64% higher. At present, James Hardie boasts a Zacks Rank of #1 (Strong Buy).
In terms of valuation, James Hardie is currently trading at a Forward P/E ratio of 22.13. This expresses a premium compared to the average Forward P/E of 18.32 of its industry.
It is also worth noting that JHX currently has a PEG ratio of 2.04. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Building Products - Miscellaneous was holding an average PEG ratio of 1.88 at yesterday's closing price.
The Building Products - Miscellaneous industry is part of the Construction sector. With its current Zacks Industry Rank of 36, this industry ranks in the top 15% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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James Hardie Industries PLC. (JHX) : 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. | In the latest market close, James Hardie (JHX) reached $35.64, with a +1.92% movement compared to the previous day. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. | The investment community will be paying close attention to the earnings performance of James Hardie in its upcoming release. The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Building Products - Miscellaneous was holding an average PEG ratio of 1.88 at yesterday's closing price. | The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. With its current Zacks Industry Rank of 36, this industry ranks in the top 15% of all industries, numbering over 250. The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. | In the latest market close, James Hardie (JHX) reached $35.64, with a +1.92% movement compared to the previous day. In terms of valuation, James Hardie is currently trading at a Forward P/E ratio of 22.13. With its current Zacks Industry Rank of 36, this industry ranks in the top 15% of all industries, numbering over 250. | 4cc63f72-0e2c-4902-8e8a-5dab9ee3dc94 |
710585.0 | 2023-12-16 07:00:00 UTC | Baker Hughes (BKR) Flat As Market Gains: What You Should Know | DCOMP | https://www.nasdaq.com/articles/baker-hughes-bkr-flat-as-market-gains%3A-what-you-should-know | nan | nan | In the latest trading session, Baker Hughes (BKR) closed at $34.07, marking no change from the previous day. The stock's performance was behind the S&P 500's daily gain of 0.59%. Elsewhere, the Dow gained 0.68%, while the tech-heavy Nasdaq added 0.66%.
Shares of the oilfield services company have appreciated by 0.59% over the course of the past month, outperforming the Oils-Energy sector's loss of 0.43% and lagging the S&P 500's gain of 5.16%.
The investment community will be paying close attention to the earnings performance of Baker Hughes in its upcoming release. The company is slated to reveal its earnings on January 23, 2024. The company's upcoming EPS is projected at $0.47, signifying a 23.68% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $6.92 billion, reflecting a 17.24% rise from the equivalent quarter last year.
BKR's full-year Zacks Consensus Estimates are calling for earnings of $1.57 per share and revenue of $25.59 billion. These results would represent year-over-year changes of +76.4% and +20.98%, respectively.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Baker Hughes. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Baker Hughes presently features a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Baker Hughes has a Forward P/E ratio of 21.75 right now. Its industry sports an average Forward P/E of 17.42, so one might conclude that Baker Hughes is trading at a premium comparatively.
The Oil and Gas - Field Services industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 205, positioning it in the bottom 19% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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Baker Hughes Company (BKR) : 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. | Shares of the oilfield services company have appreciated by 0.59% over the course of the past month, outperforming the Oils-Energy sector's loss of 0.43% and lagging the S&P 500's gain of 5.16%. At the same time, our most recent consensus estimate is projecting a revenue of $6.92 billion, reflecting a 17.24% rise from the equivalent quarter last year. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. | In the latest trading session, Baker Hughes (BKR) closed at $34.07, marking no change from the previous day. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Click to get this free report Baker Hughes Company (BKR) : Free Stock Analysis Report To read this article on Zacks.com click here. | Currently, this industry holds a Zacks Industry Rank of 205, positioning it in the bottom 19% of all 250+ industries. The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year. | In the latest trading session, Baker Hughes (BKR) closed at $34.07, marking no change from the previous day. Baker Hughes presently features a Zacks Rank of #3 (Hold). Currently, this industry holds a Zacks Industry Rank of 205, positioning it in the bottom 19% of all 250+ industries. | 20189070-d150-4ee0-965a-80eeb3ef826f |
710586.0 | 2023-12-16 06:00:00 UTC | Rockwell Automation (ROK) Outpaces Stock Market Gains: What You Should Know | DCOMP | https://www.nasdaq.com/articles/rockwell-automation-rok-outpaces-stock-market-gains%3A-what-you-should-know-2 | nan | nan | In the latest trading session, Rockwell Automation (ROK) closed at $310.48, marking a +1.7% move from the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.59%. Elsewhere, the Dow gained 0.68%, while the tech-heavy Nasdaq added 0.66%.
Shares of the industrial equipment and software maker witnessed a gain of 12.61% over the previous month, beating the performance of the Industrial Products sector with its gain of 7.67% and the S&P 500's gain of 5.16%.
Analysts and investors alike will be keeping a close eye on the performance of Rockwell Automation in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $2.61, reflecting a 6.1% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $2.07 billion, indicating a 4.57% growth compared to the corresponding quarter of the prior year.
ROK's full-year Zacks Consensus Estimates are calling for earnings of $12.82 per share and revenue of $9.26 billion. These results would represent year-over-year changes of +5.78% and +2.28%, respectively.
It is also important to note the recent changes to analyst estimates for Rockwell Automation. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.13% lower. At present, Rockwell Automation boasts a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Rockwell Automation has a Forward P/E ratio of 23.82 right now. Its industry sports an average Forward P/E of 28.89, so one might conclude that Rockwell Automation is trading at a discount comparatively.
We can also see that ROK currently has a PEG ratio of 2.34. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Industrial Automation and Robotics stocks are, on average, holding a PEG ratio of 6.58 based on yesterday's closing prices.
The Industrial Automation and Robotics industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 92, which puts it in the top 37% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow ROK in the coming trading sessions, be sure to utilize Zacks.com.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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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. | Analysts and investors alike will be keeping a close eye on the performance of Rockwell Automation in its upcoming earnings disclosure. In the meantime, our current consensus estimate forecasts the revenue to be $2.07 billion, indicating a 4.57% growth compared to the corresponding quarter of the prior year. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system. | In the latest trading session, Rockwell Automation (ROK) closed at $310.48, marking a +1.7% move from the previous day. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Click to get this free report Rockwell Automation, Inc. (ROK) : Free Stock Analysis Report To read this article on Zacks.com click here. | Shares of the industrial equipment and software maker witnessed a gain of 12.61% over the previous month, beating the performance of the Industrial Products sector with its gain of 7.67% and the S&P 500's gain of 5.16%. This industry currently has a Zacks Industry Rank of 92, which puts it in the top 37% of all 250+ industries. The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. | In the latest trading session, Rockwell Automation (ROK) closed at $310.48, marking a +1.7% move from the previous day. The company's earnings per share (EPS) are projected to be $2.61, reflecting a 6.1% increase from the same quarter last year. Industrial Automation and Robotics stocks are, on average, holding a PEG ratio of 6.58 based on yesterday's closing prices. | 0b46cb33-6f05-44f0-ac96-23cce1bfbe2b |
710587.0 | 2023-12-16 06:00:00 UTC | Monday.com (MNDY) Stock Sinks As Market Gains: Here's Why | DCOMP | https://www.nasdaq.com/articles/monday.com-mndy-stock-sinks-as-market-gains%3A-heres-why-0 | nan | nan | Monday.com (MNDY) closed at $194.36 in the latest trading session, marking a -1.36% move from the prior day. The stock fell short of the S&P 500, which registered a gain of 0.59% for the day. At the same time, the Dow added 0.68%, and the tech-heavy Nasdaq gained 0.66%.
Heading into today, shares of the project management software developer had gained 14.16% over the past month, outpacing the Computer and Technology sector's gain of 4.11% and the S&P 500's gain of 5.16% in that time.
The investment community will be paying close attention to the earnings performance of Monday.com in its upcoming release. In that report, analysts expect Monday.com to post earnings of $0.28 per share. This would mark a year-over-year decline of 36.36%. Simultaneously, our latest consensus estimate expects the revenue to be $197.42 million, showing a 31.68% escalation compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.48 per share and a revenue of $724.56 million, indicating changes of +302.74% and +39.6%, respectively, from the former year.
Any recent changes to analyst estimates for Monday.com should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Currently, Monday.com is carrying a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, Monday.com is holding a Forward P/E ratio of 132.87. This valuation marks a premium compared to its industry's average Forward P/E of 39.68.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 28, this industry ranks in the top 12% of all industries, numbering over 250.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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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. | Simultaneously, our latest consensus estimate expects the revenue to be $197.42 million, showing a 31.68% escalation compared to the year-ago quarter. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. | Heading into today, shares of the project management software developer had gained 14.16% over the past month, outpacing the Computer and Technology sector's gain of 4.11% and the S&P 500's gain of 5.16% in that time. Simultaneously, our latest consensus estimate expects the revenue to be $197.42 million, showing a 31.68% escalation compared to the year-ago quarter. Click to get this free report monday.com Ltd. (MNDY) : Free Stock Analysis Report To read this article on Zacks.com click here. | In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.48 per share and a revenue of $724.56 million, indicating changes of +302.74% and +39.6%, respectively, from the former year. With its current Zacks Industry Rank of 28, this industry ranks in the top 12% of all industries, numbering over 250. The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. | Monday.com (MNDY) closed at $194.36 in the latest trading session, marking a -1.36% move from the prior day. The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Free: See Our Top Stock and 4 Runners Up >> Want the latest recommendations from Zacks Investment Research? | b080c1f8-0ead-4c3d-ad71-138a28211e02 |
710588.0 | 2023-12-16 06:00:00 UTC | Simon Property (SPG) Beats Stock Market Upswing: What Investors Need to Know | DCOMP | https://www.nasdaq.com/articles/simon-property-spg-beats-stock-market-upswing%3A-what-investors-need-to-know | nan | nan | In the latest trading session, Simon Property (SPG) closed at $145.16, marking a +1.07% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.59%. Elsewhere, the Dow gained 0.68%, while the tech-heavy Nasdaq added 0.66%.
Prior to today's trading, shares of the shopping mall real estate investment trust had gained 17% over the past month. This has outpaced the Finance sector's gain of 7.84% and the S&P 500's gain of 5.16% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Simon Property in its upcoming earnings disclosure. The company's upcoming EPS is projected at $3.34, signifying a 6.03% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $1.45 billion, reflecting a 3.61% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $12.14 per share and a revenue of $5.6 billion, demonstrating changes of +2.27% and +5.79%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for Simon Property. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.04% lower. Simon Property is currently sporting a Zacks Rank of #3 (Hold).
With respect to valuation, Simon Property is currently being traded at a Forward P/E ratio of 11.83. For comparison, its industry has an average Forward P/E of 14, which means Simon Property is trading at a discount to the group.
It is also worth noting that SPG currently has a PEG ratio of 6.92. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. REIT and Equity Trust - Retail stocks are, on average, holding a PEG ratio of 3.38 based on yesterday's closing prices.
The REIT and Equity Trust - Retail industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 59, which puts it in the top 24% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow SPG in the coming trading sessions, be sure to utilize Zacks.com.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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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. | Prior to today's trading, shares of the shopping mall real estate investment trust had gained 17% over the past month. Analysts and investors alike will be keeping a close eye on the performance of Simon Property in its upcoming earnings disclosure. REIT and Equity Trust - Retail stocks are, on average, holding a PEG ratio of 3.38 based on yesterday's closing prices. | In the latest trading session, Simon Property (SPG) closed at $145.16, marking a +1.07% move from the previous day. REIT and Equity Trust - Retail stocks are, on average, holding a PEG ratio of 3.38 based on yesterday's closing prices. Click to get this free report Simon Property Group, Inc. (SPG) : Free Stock Analysis Report To read this article on Zacks.com click here. | For the full year, the Zacks Consensus Estimates project earnings of $12.14 per share and a revenue of $5.6 billion, demonstrating changes of +2.27% and +5.79%, respectively, from the preceding year. The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year. | In the latest trading session, Simon Property (SPG) closed at $145.16, marking a +1.07% move from the previous day. Simon Property is currently sporting a Zacks Rank of #3 (Hold). Free: See Our Top Stock and 4 Runners Up >> Want the latest recommendations from Zacks Investment Research? | 526f63c8-b644-45b6-b2e0-0d3d110b7c81 |
710589.0 | 2023-12-16 06:00:00 UTC | BorgWarner (BWA) Laps the Stock Market: Here's Why | DCOMP | https://www.nasdaq.com/articles/borgwarner-bwa-laps-the-stock-market%3A-heres-why | nan | nan | In the latest market close, BorgWarner (BWA) reached $35.36, with a +1.81% movement compared to the previous day. This move outpaced the S&P 500's daily gain of 0.59%. At the same time, the Dow added 0.68%, and the tech-heavy Nasdaq gained 0.66%.
The auto parts supplier's stock has climbed by 0.61% in the past month, falling short of the Auto-Tires-Trucks sector's gain of 3.54% and the S&P 500's gain of 5.16%.
The investment community will be closely monitoring the performance of BorgWarner in its forthcoming earnings report. The company is predicted to post an EPS of $0.88, indicating a 30.16% decline compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.6 billion, down 12.39% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.74 per share and a revenue of $14.59 billion, representing changes of -18.7% and -7.66%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for BorgWarner. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.44% higher within the past month. As of now, BorgWarner holds a Zacks Rank of #3 (Hold).
Looking at its valuation, BorgWarner is holding a Forward P/E ratio of 9.28. This denotes a discount relative to the industry's average Forward P/E of 13.59.
Meanwhile, BWA's PEG ratio is currently 1.17. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As the market closed yesterday, the Automotive - Original Equipment industry was having an average PEG ratio of 0.65.
The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. Currently, this industry holds a Zacks Industry Rank of 147, positioning it in the bottom 42% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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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 the latest market close, BorgWarner (BWA) reached $35.36, with a +1.81% movement compared to the previous day. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. | For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.74 per share and a revenue of $14.59 billion, representing changes of -18.7% and -7.66%, respectively, from the prior year. As the market closed yesterday, the Automotive - Original Equipment industry was having an average PEG ratio of 0.65. Click to get this free report BorgWarner Inc. (BWA) : Free Stock Analysis Report To read this article on Zacks.com click here. | Currently, this industry holds a Zacks Industry Rank of 147, positioning it in the bottom 42% of all 250+ industries. The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year. | The Zacks Consensus EPS estimate has moved 0.44% higher within the past month. As the market closed yesterday, the Automotive - Original Equipment industry was having an average PEG ratio of 0.65. Currently, this industry holds a Zacks Industry Rank of 147, positioning it in the bottom 42% of all 250+ industries. | 4c6d5ba2-0ca2-4d1f-8f07-a94690cb5fa5 |
710590.0 | 2023-12-16 06:00:00 UTC | KeyCorp (KEY) Outpaces Stock Market Gains: What You Should Know | DCOMP | https://www.nasdaq.com/articles/keycorp-key-outpaces-stock-market-gains%3A-what-you-should-know-3 | nan | nan | KeyCorp (KEY) closed the most recent trading day at $14.36, moving +1.77% from the previous trading session. The stock's performance was ahead of the S&P 500's daily gain of 0.59%. Elsewhere, the Dow gained 0.68%, while the tech-heavy Nasdaq added 0.66%.
The the stock of company has risen by 15.18% in the past month, leading the Finance sector's gain of 7.84% and the S&P 500's gain of 5.16%.
The investment community will be closely monitoring the performance of KeyCorp in its forthcoming earnings report. The company is scheduled to release its earnings on January 18, 2024. In that report, analysts expect KeyCorp to post earnings of $0.23 per share. This would mark a year-over-year decline of 39.47%. Meanwhile, the latest consensus estimate predicts the revenue to be $1.54 billion, indicating a 18.56% decrease compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $1.07 per share and a revenue of $6.4 billion, demonstrating changes of -44.27% and -11.71%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for KeyCorp. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 3.84% decrease. KeyCorp presently features a Zacks Rank of #3 (Hold).
Digging into valuation, KeyCorp currently has a Forward P/E ratio of 13.22. This signifies a premium in comparison to the average Forward P/E of 10.21 for its industry.
It is also worth noting that KEY currently has a PEG ratio of 3.07. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Banks - Major Regional industry had an average PEG ratio of 1.47.
The Banks - Major Regional industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 150, placing it within the bottom 41% of over 250 industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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KeyCorp (KEY) : 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. | Meanwhile, the latest consensus estimate predicts the revenue to be $1.54 billion, indicating a 18.56% decrease compared to the same quarter of the previous year. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. | By the end of yesterday's trading, the Banks - Major Regional industry had an average PEG ratio of 1.47. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Click to get this free report KeyCorp (KEY) : Free Stock Analysis Report To read this article on Zacks.com click here. | At present, this industry carries a Zacks Industry Rank of 150, placing it within the bottom 41% of over 250 industries. The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year. | KeyCorp (KEY) closed the most recent trading day at $14.36, moving +1.77% from the previous trading session. The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Free: See Our Top Stock and 4 Runners Up >> Want the latest recommendations from Zacks Investment Research? | 340ff250-9ea3-4a9c-af06-e9034dec900a |
710591.0 | 2023-12-16 06:00:00 UTC | Lam Research (LRCX) Surpasses Market Returns: Some Facts Worth Knowing | DCOMP | https://www.nasdaq.com/articles/lam-research-lrcx-surpasses-market-returns%3A-some-facts-worth-knowing | nan | nan | Lam Research (LRCX) ended the recent trading session at $781.01, demonstrating a +1.44% swing from the preceding day's closing price. This change outpaced the S&P 500's 0.59% gain on the day. Meanwhile, the Dow experienced a rise of 0.68%, and the technology-dominated Nasdaq saw an increase of 0.66%.
Prior to today's trading, shares of the semiconductor equipment maker had gained 7.06% over the past month. This has outpaced the Computer and Technology sector's gain of 4.11% and the S&P 500's gain of 5.16% in that time.
Market participants will be closely following the financial results of Lam Research in its upcoming release. It is anticipated that the company will report an EPS of $7.05, marking a 34.17% fall compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $3.71 billion, indicating a 29.72% downward movement from the same quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $27.56 per share and a revenue of $14.62 billion, signifying shifts of -19.34% and -16.13%, respectively, from the last year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Lam Research. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.33% decrease. As of now, Lam Research holds a Zacks Rank of #3 (Hold).
Looking at its valuation, Lam Research is holding a Forward P/E ratio of 27.93. This represents a premium compared to its industry's average Forward P/E of 25.4.
It's also important to note that LRCX currently trades at a PEG ratio of 4.75. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Semiconductor Equipment - Wafer Fabrication industry had an average PEG ratio of 3.76.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 39, finds itself in the top 16% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
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Lam Research Corporation (LRCX) : 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. | Lam Research (LRCX) ended the recent trading session at $781.01, demonstrating a +1.44% swing from the preceding day's closing price. For the annual period, the Zacks Consensus Estimates anticipate earnings of $27.56 per share and a revenue of $14.62 billion, signifying shifts of -19.34% and -16.13%, respectively, from the last year. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system. | For the annual period, the Zacks Consensus Estimates anticipate earnings of $27.56 per share and a revenue of $14.62 billion, signifying shifts of -19.34% and -16.13%, respectively, from the last year. By the end of yesterday's trading, the Semiconductor Equipment - Wafer Fabrication industry had an average PEG ratio of 3.76. Click to get this free report Lam Research Corporation (LRCX) : Free Stock Analysis Report To read this article on Zacks.com click here. | This industry, currently bearing a Zacks Industry Rank of 39, finds itself in the top 16% echelons of all 250+ industries. The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research? | Lam Research (LRCX) ended the recent trading session at $781.01, demonstrating a +1.44% swing from the preceding day's closing price. This industry, currently bearing a Zacks Industry Rank of 39, finds itself in the top 16% echelons of all 250+ industries. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research? | 9f9825b6-7519-4c58-83ad-e5809691918e |
710592.0 | 2023-12-16 06:00:00 UTC | Prologis (PLD) Outpaces Stock Market Gains: What You Should Know | DCOMP | https://www.nasdaq.com/articles/prologis-pld-outpaces-stock-market-gains%3A-what-you-should-know-5 | nan | nan | Prologis (PLD) closed the most recent trading day at $133.75, moving +0.81% from the previous trading session. The stock's performance was ahead of the S&P 500's daily gain of 0.59%. Elsewhere, the Dow gained 0.68%, while the tech-heavy Nasdaq added 0.66%.
The the stock of industrial real estate developer has risen by 19.53% in the past month, leading the Finance sector's gain of 7.84% and the S&P 500's gain of 5.16%.
The investment community will be closely monitoring the performance of Prologis in its forthcoming earnings report. In that report, analysts expect Prologis to post earnings of $1.26 per share. This would mark year-over-year growth of 1.61%. Meanwhile, the latest consensus estimate predicts the revenue to be $1.78 billion, indicating a 12.19% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $5.60 per share and a revenue of $6.85 billion, demonstrating changes of +8.53% and +39.37%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Prologis. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Prologis presently features a Zacks Rank of #3 (Hold).
Digging into valuation, Prologis currently has a Forward P/E ratio of 23.69. This signifies a premium in comparison to the average Forward P/E of 11.69 for its industry.
It is also worth noting that PLD currently has a PEG ratio of 2.71. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the REIT and Equity Trust - Other industry had an average PEG ratio of 2.52.
The REIT and Equity Trust - Other industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 152, placing it within the bottom 40% of over 250 industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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Prologis, Inc. (PLD) : 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. | Meanwhile, the latest consensus estimate predicts the revenue to be $1.78 billion, indicating a 12.19% increase compared to the same quarter of the previous year. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. | By the end of yesterday's trading, the REIT and Equity Trust - Other industry had an average PEG ratio of 2.52. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Click to get this free report Prologis, Inc. (PLD) : Free Stock Analysis Report To read this article on Zacks.com click here. | At present, this industry carries a Zacks Industry Rank of 152, placing it within the bottom 40% of over 250 industries. The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year. | Prologis (PLD) closed the most recent trading day at $133.75, moving +0.81% from the previous trading session. For the full year, the Zacks Consensus Estimates project earnings of $5.60 per share and a revenue of $6.85 billion, demonstrating changes of +8.53% and +39.37%, respectively, from the preceding year. The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. | b99fe6bb-dae4-4ab3-a22c-de0c9e90b70a |
710593.0 | 2023-12-16 06:00:00 UTC | Cigna (CI) Exceeds Market Returns: Some Facts to Consider | DCOMP | https://www.nasdaq.com/articles/cigna-ci-exceeds-market-returns%3A-some-facts-to-consider | nan | nan | In the latest market close, Cigna (CI) reached $294.32, with a +0.77% movement compared to the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.59%. Meanwhile, the Dow experienced a rise of 0.68%, and the technology-dominated Nasdaq saw an increase of 0.66%.
The the stock of health insurer has risen by 2.73% in the past month, lagging the Medical sector's gain of 5.08% and the S&P 500's gain of 5.16%.
The investment community will be closely monitoring the performance of Cigna in its forthcoming earnings report. The company is expected to report EPS of $6.52, up 31.45% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $48.81 billion, indicating a 6.71% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $24.82 per share and a revenue of $192.8 billion, representing changes of +6.66% and +6.73%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Cigna. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Cigna is holding a Zacks Rank of #3 (Hold) right now.
Looking at valuation, Cigna is presently trading at a Forward P/E ratio of 11.77. Its industry sports an average Forward P/E of 16.26, so one might conclude that Cigna is trading at a discount comparatively.
Investors should also note that CI has a PEG ratio of 1.05 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. CI's industry had an average PEG ratio of 1.13 as of yesterday's close.
The Medical - HMOs industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 62, placing it within the top 25% of over 250 industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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Cigna Group (CI) : 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. | Meanwhile, the latest consensus estimate predicts the revenue to be $48.81 billion, indicating a 6.71% increase compared to the same quarter of the previous year. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system. | Meanwhile, the latest consensus estimate predicts the revenue to be $48.81 billion, indicating a 6.71% increase compared to the same quarter of the previous year. The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Click to get this free report Cigna Group (CI) : Free Stock Analysis Report To read this article on Zacks.com click here. | At present, this industry carries a Zacks Industry Rank of 62, placing it within the top 25% of over 250 industries. The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year. | At present, this industry carries a Zacks Industry Rank of 62, placing it within the top 25% of over 250 industries. The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Free: See Our Top Stock and 4 Runners Up >> Want the latest recommendations from Zacks Investment Research? | ef8bf06c-fc44-409b-bad9-04b7ababf1c7 |
710594.0 | 2023-12-16 06:00:00 UTC | United Rentals (URI) Outpaces Stock Market Gains: What You Should Know | DCOMP | https://www.nasdaq.com/articles/united-rentals-uri-outpaces-stock-market-gains%3A-what-you-should-know-9 | nan | nan | United Rentals (URI) closed the latest trading day at $574.20, indicating a +1.05% change from the previous session's end. The stock's performance was ahead of the S&P 500's daily gain of 0.59%. At the same time, the Dow added 0.68%, and the tech-heavy Nasdaq gained 0.66%.
Heading into today, shares of the equipment rental company had gained 20.44% over the past month, outpacing the Construction sector's gain of 13.44% and the S&P 500's gain of 5.16% in that time.
Investors will be eagerly watching for the performance of United Rentals in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $11.45, marking a 17.56% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $3.64 billion, indicating a 10.3% upward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $41.07 per share and revenue of $14.22 billion, indicating changes of +26.37% and +22.18%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments to analyst estimates for United Rentals. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.4% increase. At present, United Rentals boasts a Zacks Rank of #3 (Hold).
In terms of valuation, United Rentals is currently trading at a Forward P/E ratio of 13.84. This indicates a discount in contrast to its industry's Forward P/E of 18.32.
Meanwhile, URI's PEG ratio is currently 0.93. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As the market closed yesterday, the Building Products - Miscellaneous industry was having an average PEG ratio of 1.88.
The Building Products - Miscellaneous industry is part of the Construction sector. This group has a Zacks Industry Rank of 36, putting it in the top 15% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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United Rentals, Inc. (URI) : 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. | United Rentals (URI) closed the latest trading day at $574.20, indicating a +1.05% change from the previous session's end. Alongside, our most recent consensus estimate is anticipating revenue of $3.64 billion, indicating a 10.3% upward movement from the same quarter last year. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. | United Rentals (URI) closed the latest trading day at $574.20, indicating a +1.05% change from the previous session's end. Alongside, our most recent consensus estimate is anticipating revenue of $3.64 billion, indicating a 10.3% upward movement from the same quarter last year. Click to get this free report United Rentals, Inc. (URI) : Free Stock Analysis Report To read this article on Zacks.com click here. | Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $41.07 per share and revenue of $14.22 billion, indicating changes of +26.37% and +22.18%, respectively, compared to the previous year. The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year. | United Rentals (URI) closed the latest trading day at $574.20, indicating a +1.05% change from the previous session's end. In terms of valuation, United Rentals is currently trading at a Forward P/E ratio of 13.84. This group has a Zacks Industry Rank of 36, putting it in the top 15% of all 250+ industries. | 03881d0f-f881-4bae-8ccb-adcd2710168f |
710595.0 | 2023-12-16 06:00:00 UTC | STMicroelectronics (STM) Surpasses Market Returns: Some Facts Worth Knowing | DCOMP | https://www.nasdaq.com/articles/stmicroelectronics-stm-surpasses-market-returns%3A-some-facts-worth-knowing-0 | nan | nan | In the latest trading session, STMicroelectronics (STM) closed at $50.43, marking a +1.04% move from the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.59%. Meanwhile, the Dow experienced a rise of 0.68%, and the technology-dominated Nasdaq saw an increase of 0.66%.
Prior to today's trading, shares of the chip company had gained 7.82% over the past month. This has outpaced the Computer and Technology sector's gain of 4.11% and the S&P 500's gain of 5.16% in that time.
The upcoming earnings release of STMicroelectronics will be of great interest to investors. The company's earnings per share (EPS) are projected to be $0.98, reflecting a 25.76% decrease from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $4.3 billion, reflecting a 2.76% fall from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $4.29 per share and a revenue of $17.34 billion, demonstrating changes of +2.39% and +7.52%, respectively, from the preceding year.
Any recent changes to analyst estimates for STMicroelectronics should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Currently, STMicroelectronics is carrying a Zacks Rank of #3 (Hold).
From a valuation perspective, STMicroelectronics is currently exchanging hands at a Forward P/E ratio of 11.65. This expresses a discount compared to the average Forward P/E of 20.66 of its industry.
Meanwhile, STM's PEG ratio is currently 2.33. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. STM's industry had an average PEG ratio of 2.83 as of yesterday's close.
The Semiconductor - General industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 184, this industry ranks in the bottom 27% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow STM in the coming trading sessions, be sure to utilize Zacks.com.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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STMicroelectronics N.V. (STM) : 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. | At the same time, our most recent consensus estimate is projecting a revenue of $4.3 billion, reflecting a 2.76% fall from the equivalent quarter last year. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. | In the latest trading session, STMicroelectronics (STM) closed at $50.43, marking a +1.04% move from the previous day. For the full year, the Zacks Consensus Estimates project earnings of $4.29 per share and a revenue of $17.34 billion, demonstrating changes of +2.39% and +7.52%, respectively, from the preceding year. Click to get this free report STMicroelectronics N.V. (STM) : Free Stock Analysis Report To read this article on Zacks.com click here. | With its current Zacks Industry Rank of 184, this industry ranks in the bottom 27% of all industries, numbering over 250. The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year. | Prior to today's trading, shares of the chip company had gained 7.82% over the past month. With its current Zacks Industry Rank of 184, this industry ranks in the bottom 27% of all industries, numbering over 250. Free: See Our Top Stock and 4 Runners Up >> Want the latest recommendations from Zacks Investment Research? | 3ad12e07-f192-42c4-9996-84c9d9775fbb |
710596.0 | 2023-12-16 06:00:00 UTC | Aehr Test Systems (AEHR) Surpasses Market Returns: Some Facts Worth Knowing | DCOMP | https://www.nasdaq.com/articles/aehr-test-systems-aehr-surpasses-market-returns%3A-some-facts-worth-knowing-0 | nan | nan | In the latest trading session, Aehr Test Systems (AEHR) closed at $28.33, marking a +1.43% move from the previous day. This move outpaced the S&P 500's daily gain of 0.59%. Meanwhile, the Dow gained 0.68%, and the Nasdaq, a tech-heavy index, added 0.66%.
The the stock of company has risen by 7.51% in the past month, leading the Computer and Technology sector's gain of 4.11% and the S&P 500's gain of 5.16%.
The investment community will be paying close attention to the earnings performance of Aehr Test Systems in its upcoming release. In that report, analysts expect Aehr Test Systems to post earnings of $0.18 per share. This would mark year-over-year growth of 12.5%. In the meantime, our current consensus estimate forecasts the revenue to be $20.1 million, indicating a 35.63% growth compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.05 per share and revenue of $105.3 million, indicating changes of +77.97% and +62.1%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Aehr Test Systems. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Aehr Test Systems currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Aehr Test Systems is currently trading at a Forward P/E ratio of 26.6. This signifies no noticeable deviation in comparison to the average Forward P/E of 26.6 for its industry.
The Electronics - Measuring Instruments industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 171, putting it in the bottom 33% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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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 investment community will be paying close attention to the earnings performance of Aehr Test Systems in its upcoming release. In the meantime, our current consensus estimate forecasts the revenue to be $20.1 million, indicating a 35.63% growth compared to the corresponding quarter of the prior year. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits. | In the latest trading session, Aehr Test Systems (AEHR) closed at $28.33, marking a +1.43% move from the previous day. Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.05 per share and revenue of $105.3 million, indicating changes of +77.97% and +62.1%, respectively, compared to the previous year. Click to get this free report Aehr Test Systems (AEHR) : Free Stock Analysis Report To read this article on Zacks.com click here. | In the latest trading session, Aehr Test Systems (AEHR) closed at $28.33, marking a +1.43% move from the previous day. The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Click to get this free report Aehr Test Systems (AEHR) : Free Stock Analysis Report To read this article on Zacks.com click here. | In the latest trading session, Aehr Test Systems (AEHR) closed at $28.33, marking a +1.43% move from the previous day. The the stock of company has risen by 7.51% in the past month, leading the Computer and Technology sector's gain of 4.11% and the S&P 500's gain of 5.16%. Aehr Test Systems currently has a Zacks Rank of #3 (Hold). | 4e71e417-5fef-4d91-9420-9fde9625e6d7 |
710597.0 | 2023-12-16 06:00:00 UTC | BlackRock (BLK) Outpaces Stock Market Gains: What You Should Know | DCOMP | https://www.nasdaq.com/articles/blackrock-blk-outpaces-stock-market-gains%3A-what-you-should-know-18 | nan | nan | In the latest trading session, BlackRock (BLK) closed at $801.38, marking a +0.62% move from the previous day. The stock's change was more than the S&P 500's daily gain of 0.59%. Elsewhere, the Dow saw an upswing of 0.68%, while the tech-heavy Nasdaq appreciated by 0.66%.
Coming into today, shares of the investment firm had gained 10.48% in the past month. In that same time, the Finance sector gained 7.84%, while the S&P 500 gained 5.16%.
Analysts and investors alike will be keeping a close eye on the performance of BlackRock in its upcoming earnings disclosure. The company is predicted to post an EPS of $8.73, indicating a 2.24% decline compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.57 billion, up 5.43% from the year-ago period.
BLK's full-year Zacks Consensus Estimates are calling for earnings of $36.85 per share and revenue of $17.8 billion. These results would represent year-over-year changes of +4.21% and -0.41%, respectively.
It is also important to note the recent changes to analyst estimates for BlackRock. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. BlackRock is currently a Zacks Rank #3 (Hold).
In the context of valuation, BlackRock is at present trading with a Forward P/E ratio of 21.61. This signifies a premium in comparison to the average Forward P/E of 12.44 for its industry.
It's also important to note that BLK currently trades at a PEG ratio of 2.47. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The average PEG ratio for the Financial - Investment Management industry stood at 1.35 at the close of the market yesterday.
The Financial - Investment Management industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 158, positioning it in the bottom 38% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow BLK in the coming trading sessions, be sure to utilize Zacks.com.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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BlackRock, Inc. (BLK) : 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. | Analysts and investors alike will be keeping a close eye on the performance of BlackRock in its upcoming earnings disclosure. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. | In the latest trading session, BlackRock (BLK) closed at $801.38, marking a +0.62% move from the previous day. The average PEG ratio for the Financial - Investment Management industry stood at 1.35 at the close of the market yesterday. Click to get this free report BlackRock, Inc. (BLK) : Free Stock Analysis Report To read this article on Zacks.com click here. | Currently, this industry holds a Zacks Industry Rank of 158, positioning it in the bottom 38% of all 250+ industries. The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year. | In the latest trading session, BlackRock (BLK) closed at $801.38, marking a +0.62% move from the previous day. Currently, this industry holds a Zacks Industry Rank of 158, positioning it in the bottom 38% of all 250+ industries. Free: See Our Top Stock and 4 Runners Up >> Want the latest recommendations from Zacks Investment Research? | 1e2bb543-3395-4ac2-86f6-e655ffde2fcc |
710598.0 | 2023-12-16 06:00:00 UTC | Eagle Materials (EXP) Ascends But Remains Behind Market: Some Facts to Note | DCOMP | https://www.nasdaq.com/articles/eagle-materials-exp-ascends-but-remains-behind-market%3A-some-facts-to-note | nan | nan | Eagle Materials (EXP) closed at $204.26 in the latest trading session, marking a +0.47% move from the prior day. The stock trailed the S&P 500, which registered a daily gain of 0.59%. At the same time, the Dow added 0.68%, and the tech-heavy Nasdaq gained 0.66%.
Prior to today's trading, shares of the maker of gypsum wallboard and cement had gained 15.64% over the past month. This has outpaced the Construction sector's gain of 13.44% and the S&P 500's gain of 5.16% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Eagle Materials in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $3.56, marking a 11.25% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $537.23 million, indicating a 5.03% upward movement from the same quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $14.16 per share and a revenue of $2.24 billion, indicating changes of +13.01% and +4.37%, respectively, from the former year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Eagle Materials. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.14% higher. Right now, Eagle Materials possesses a Zacks Rank of #3 (Hold).
Investors should also note Eagle Materials's current valuation metrics, including its Forward P/E ratio of 14.36. This represents a premium compared to its industry's average Forward P/E of 12.83.
The Building Products - Concrete and Aggregates industry is part of the Construction sector. With its current Zacks Industry Rank of 76, this industry ranks in the top 31% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Eagle Materials Inc (EXP) : 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. | Analysts and investors alike will be keeping a close eye on the performance of Eagle Materials in its upcoming earnings disclosure. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. | Eagle Materials (EXP) closed at $204.26 in the latest trading session, marking a +0.47% move from the prior day. Over the past month, the Zacks Consensus EPS estimate has moved 0.14% higher. Click to get this free report Eagle Materials Inc (EXP) : Free Stock Analysis Report To read this article on Zacks.com click here. | With its current Zacks Industry Rank of 76, this industry ranks in the top 31% of all industries, numbering over 250. The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year. | Eagle Materials (EXP) closed at $204.26 in the latest trading session, marking a +0.47% move from the prior day. With its current Zacks Industry Rank of 76, this industry ranks in the top 31% of all industries, numbering over 250. Free: See Our Top Stock and 4 Runners Up >> Want the latest recommendations from Zacks Investment Research? | 7fd0e0aa-339f-4c76-8953-48a2cc6d110d |
710599.0 | 2023-12-16 06:00:00 UTC | Southwest Airlines (LUV) Surpasses Market Returns: Some Facts Worth Knowing | DCOMP | https://www.nasdaq.com/articles/southwest-airlines-luv-surpasses-market-returns%3A-some-facts-worth-knowing | nan | nan | In the latest trading session, Southwest Airlines (LUV) closed at $29.52, marking a +1.9% move from the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.59%. Meanwhile, the Dow experienced a rise of 0.68%, and the technology-dominated Nasdaq saw an increase of 0.66%.
Prior to today's trading, shares of the airline had gained 15.28% over the past month. This has outpaced the Transportation sector's gain of 8.79% and the S&P 500's gain of 5.16% in that time.
The upcoming earnings release of Southwest Airlines will be of great interest to investors. The company's earnings per share (EPS) are projected to be $0.14, reflecting a 136.84% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $6.75 billion, reflecting a 9.33% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $1.39 per share and a revenue of $25.99 billion, demonstrating changes of +19.83% and +9.13%, respectively, from the preceding year.
Any recent changes to analyst estimates for Southwest Airlines should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.85% rise in the Zacks Consensus EPS estimate. Currently, Southwest Airlines is carrying a Zacks Rank of #3 (Hold).
From a valuation perspective, Southwest Airlines is currently exchanging hands at a Forward P/E ratio of 20.89. This expresses a premium compared to the average Forward P/E of 7.58 of its industry.
Meanwhile, LUV's PEG ratio is currently 1.27. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. LUV's industry had an average PEG ratio of 0.31 as of yesterday's close.
The Transportation - Airline industry is part of the Transportation sector. With its current Zacks Industry Rank of 189, this industry ranks in the bottom 25% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow LUV in the coming trading sessions, be sure to utilize Zacks.com.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Southwest Airlines Co. (LUV) : 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. | At the same time, our most recent consensus estimate is projecting a revenue of $6.75 billion, reflecting a 9.33% rise from the equivalent quarter last year. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. | In the latest trading session, Southwest Airlines (LUV) closed at $29.52, marking a +1.9% move from the previous day. At the same time, our most recent consensus estimate is projecting a revenue of $6.75 billion, reflecting a 9.33% rise from the equivalent quarter last year. Click to get this free report Southwest Airlines Co. (LUV) : Free Stock Analysis Report To read this article on Zacks.com click here. | With its current Zacks Industry Rank of 189, this industry ranks in the bottom 25% of all industries, numbering over 250. The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year. | In the latest trading session, Southwest Airlines (LUV) closed at $29.52, marking a +1.9% move from the previous day. The company's earnings per share (EPS) are projected to be $0.14, reflecting a 136.84% increase from the same quarter last year. With its current Zacks Industry Rank of 189, this industry ranks in the bottom 25% of all industries, numbering over 250. | 366bf1af-47c9-4e15-9eb0-74dcd3f443b0 |
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