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710900.0
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2023-12-16 00:00:00 UTC
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Gibraltar Industries (ROCK) Is a Great Choice for 'Trend' Investors, Here's Why
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DCOMP
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https://www.nasdaq.com/articles/gibraltar-industries-rock-is-a-great-choice-for-trend-investors-heres-why
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nan
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nan
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Most of us have heard the dictum "the trend is your friend." And this is undeniably the key to success when it comes to short-term investing or trading. But it isn't easy to ensure the sustainability of a trend and profit from it.
The trend often reverses before exiting the trade, leading to a short-term capital loss for investors. So, for a profitable trade, one should confirm factors such as sound fundamentals, positive earnings estimate revisions, etc. that could keep the momentum in the stock alive.
Investors looking to make a profit from stocks that are currently on the move may find our "Recent Price Strength" screen pretty useful. This predefined screen comes handy in spotting stocks that are on an uptrend backed by strength in their fundamentals, and trading in the upper portion of their 52-week high-low range, which is usually an indicator of bullishness.
Gibraltar Industries (ROCK) is one of the several suitable candidates that passed through the screen. Here are the key reasons why it could be a profitable bet for "trend" investors.
A solid price increase over a period of 12 weeks reflects investors' continued willingness to pay more for the potential upside in a stock. ROCK is quite a good fit in this regard, gaining 15.2% over this period.
However, it's not enough to look at the price change for around three months, as it doesn't reflect any trend reversal that might have happened in a shorter time frame. It's important for a potential winner to maintain the price trend. A price increase of 14% over the past four weeks ensures that the trend is still in place for the stock of this building-products company.
Moreover, ROCK is currently trading at 98.7% of its 52-week High-Low Range, hinting that it can be on the verge of a breakout.
Looking at the fundamentals, the stock currently carries a Zacks Rank #2 (Buy), which means it is in the top 20% of more than the 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises -- the key factors that impact a stock's near-term price movements.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Another factor that confirms the company's fundamental strength is its Average Broker Recommendation of #1 (Strong Buy). This indicates that the brokerage community is highly optimistic about the stock's near-term price performance.
So, the price trend in ROCK may not reverse anytime soon.
In addition to ROCK, there are several other stocks that currently pass through our "Recent Price Strength" screen. You may consider investing in them and start looking for the newest stocks that fit these criteria.
This is not the only screen that could help you find your next winning stock pick. Based on your personal investing style, you may choose from over 45 Zacks Premium Screens that are strategically created to beat the market.
However, keep in mind that the key to a successful stock-picking strategy is to ensure that it produced profitable results in the past. You could easily do that with the help of the Zacks Research Wizard. In addition to allowing you to backtest the effectiveness of your strategy, the program comes loaded with some of our most successful stock-picking strategies.
Click here to sign up for a free trial to the Research Wizard today.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Gibraltar Industries, Inc. (ROCK) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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This predefined screen comes handy in spotting stocks that are on an uptrend backed by strength in their fundamentals, and trading in the upper portion of their 52-week high-low range, which is usually an indicator of bullishness. A solid price increase over a period of 12 weeks reflects investors' continued willingness to pay more for the potential upside in a stock. Based on your personal investing style, you may choose from over 45 Zacks Premium Screens that are strategically created to beat the market.
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The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Another factor that confirms the company's fundamental strength is its Average Broker Recommendation of #1 (Strong Buy). Click to get this free report Gibraltar Industries, Inc. (ROCK) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Looking at the fundamentals, the stock currently carries a Zacks Rank #2 (Buy), which means it is in the top 20% of more than the 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises -- the key factors that impact a stock's near-term price movements. The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Another factor that confirms the company's fundamental strength is its Average Broker Recommendation of #1 (Strong Buy).
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You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Another factor that confirms the company's fundamental strength is its Average Broker Recommendation of #1 (Strong Buy). In addition to ROCK, there are several other stocks that currently pass through our "Recent Price Strength" screen. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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166c9daf-7656-404e-9bea-4d1f3d3a22ff
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710901.0
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2023-12-16 00:00:00 UTC
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KBR Enters Into Partnership With HJF for the SPARC Contract
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DCOMP
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https://www.nasdaq.com/articles/kbr-enters-into-partnership-with-hjf-for-the-sparc-contract
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nan
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nan
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KBR, Inc. KBR has announced teaming up with the Henry M. Jackson Foundation for the Advancement of Military Medicine (HJF) for the Service Personnel Advancing Research in Chronic Traumatic Encephalopathy (SPARC) contract for supporting neuroscience research for service members.
Per the SPARC contract, KBR will offer services for outreach, education and data analytics, supporting critical neuroscience research. In collaboration with the Uniformed Services University and the University of California San Francisco, this research will be conducted to prevent and treat military members with chronic traumatic encephalopathy (CTE). Also, this cost-plus-fixed-fee contract will additionally assist in the development of therapeutics for treating CTE and is expected to have a term of 52 months.
KBR is optimistic about the SPARC contract as it believes this will lead to the development of its human health and technology portfolio to facilitate this important work.
Post the announcement of this accretive collaboration, shares of KBR gained 1.3% during the trading hours and 1.6% in the after-hours trading session on Dec 18.
Ongoing Contract Wins Spur Growth
KBR’s focus on a resilient business model and efficiency-boosting initiatives has sparked its project-winning momentum. Also, the rising global importance of national security, energy security, energy transition and climate change has been acting as a major tailwind.
During the third quarter of 2023, KBR received $3.5 billion in bookings and options in highly strategic areas, thus taking its backlog and option level to $21.8 billion. This uptrend was backed by increased new contracts and on-contract growth within all Government Solutions (GS) business units. Also, growing demand for Sustainable Technology Solutions (STS), mainly from engineering and professional services and technology licensing, adds to growth.
Since the third quarter of 2023 end, the company announced 11 contract wins. Recently, on Nov 29, its Purifier ammonia technology was selected by PT Pupuk Sriwidjaja Palembang for the planned 3B Ammonia Plant to be built in South Sumatera Province, Indonesia, thus marking KBR’s 12th ammonia plant licensed to PT Pupuk Indonesia. On Nov 16, KBR unveiled that it has increased support for new energy technologies, systems and processes for the UK's £1 billion Net Zero Innovation portfolio.
Image Source: Zacks Investment Research
Shares of this global engineering, construction and services firm have gained 5.5% in the past year compared with the Zacks Engineering - R and D Services industry’s 31.6% growth. Nonetheless, going forward, KBR expects broad-based growth across both GS and STS segments. Primary growth drivers include high-end and differentiated government business work, strong margin performance, and technology and consulting business.
Zacks Rank & Key Picks
KBR currently carries a Zacks Rank #3 (Hold).
Here are some better-ranked stocks from the Construction sector.
EMCOR Group, Inc. EME presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
It has a trailing four-quarter earnings surprise of 25%, on average. Shares of EME have increased 47.9% in the past year. The Zacks Consensus Estimate for EME’s 2023 sales and earnings per share (EPS) indicates an improvement of 12% and 52.8%, respectively, from the year-ago levels.
M-tron Industries, Inc. MPTI currently sports a Zacks Rank of 1. MPTI delivered a trailing four-quarter earnings surprise of 35.6%, on average. It has surged 252.2% in the past year.
The Zacks Consensus Estimate for MPTI’s 2023 sales and EPS indicates growth of 30.6% and 156.7%, respectively, from the previous year.
Willdan Group, Inc. WLDN currently sports a Zacks Rank of 1. WLDN delivered a trailing four-quarter earnings surprise of a whopping 850.6%, on average. The stock has gained 11.7% in the past year.
The Zacks Consensus Estimate for WLDN’s 2023 sales and EPS indicates growth of 14.1% and 47.7%, respectively, from a year ago.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
KBR, Inc. (KBR) : Free Stock Analysis Report
EMCOR Group, Inc. (EME) : Free Stock Analysis Report
Willdan Group, Inc. (WLDN) : 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.
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KBR is optimistic about the SPARC contract as it believes this will lead to the development of its human health and technology portfolio to facilitate this important work. Ongoing Contract Wins Spur Growth KBR’s focus on a resilient business model and efficiency-boosting initiatives has sparked its project-winning momentum. On Nov 16, KBR unveiled that it has increased support for new energy technologies, systems and processes for the UK's £1 billion Net Zero Innovation portfolio.
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KBR, Inc. KBR has announced teaming up with the Henry M. Jackson Foundation for the Advancement of Military Medicine (HJF) for the Service Personnel Advancing Research in Chronic Traumatic Encephalopathy (SPARC) contract for supporting neuroscience research for service members. Image Source: Zacks Investment Research Shares of this global engineering, construction and services firm have gained 5.5% in the past year compared with the Zacks Engineering - R and D Services industry’s 31.6% growth. Click to get this free report KBR, Inc. (KBR) : Free Stock Analysis Report EMCOR Group, Inc. (EME) : Free Stock Analysis Report Willdan Group, Inc. (WLDN) : Free Stock Analysis Report M-tron Industries, Inc. (MPTI) : Free Stock Analysis Report To read this article on Zacks.com click here.
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KBR, Inc. KBR has announced teaming up with the Henry M. Jackson Foundation for the Advancement of Military Medicine (HJF) for the Service Personnel Advancing Research in Chronic Traumatic Encephalopathy (SPARC) contract for supporting neuroscience research for service members. Image Source: Zacks Investment Research Shares of this global engineering, construction and services firm have gained 5.5% in the past year compared with the Zacks Engineering - R and D Services industry’s 31.6% growth. Click to get this free report KBR, Inc. (KBR) : Free Stock Analysis Report EMCOR Group, Inc. (EME) : Free Stock Analysis Report Willdan Group, Inc. (WLDN) : Free Stock Analysis Report M-tron Industries, Inc. (MPTI) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Image Source: Zacks Investment Research Shares of this global engineering, construction and services firm have gained 5.5% in the past year compared with the Zacks Engineering - R and D Services industry’s 31.6% growth. M-tron Industries, Inc. MPTI currently sports a Zacks Rank of 1. The stock has gained 11.7% in the past year.
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8818ce35-1578-4973-bbb6-f09634076f2e
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710902.0
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2023-12-16 00:00:00 UTC
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Can Block Stock Reach $100 in 2024?
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DCOMP
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https://www.nasdaq.com/articles/can-block-stock-reach-%24100-in-2024
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nan
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nan
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Ever since reporting its latest financial results, Block (NYSE: SQ) shares have been on an absolute tear. As of Dec. 15, they are up an incredible 69% from Nov. 2, the date of the announcement.
This is what shareholders want to see from a stock that is still well below its peak price. Perhaps next year will bring a continuation of this robust performance.
Can this leading fintech enterprise see its shares rise to $100 by the end of 2024, which translates to about a 30% gain? I don't think it's out of the question at all.
Here's what investors need to know.
Dorsey's refreshed focus
This business is growing at a healthy clip. Overall gross profit increased 21% to $1.9 billion in the third quarter. And both Square and Cash App posted double-digit gains.
But investors were probably most excited about the company's upgraded projection for adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) and adjusted operating income for the current year. Seeing a perennial money loser start turning out profits is encouraging.
In the Q3 2023 shareholder letter, co-founder and Chief Executive Officer Jack Dorsey talked about how one of his main focal points is to figure out ways to better integrate the two ecosystems. Cash App Pay and the integration of buy now, pay later specialist Afterpay are two examples, both of which can increase engagement and lead to more revenue potential for Block.
Waiting on a stronger economy
You wouldn't really think this is the case, especially by looking at the cooling inflation data or low unemployment rate, but the U.S. economy isn't necessarily in the best position right now. Consumer confidence is still well below pre-pandemic levels, credit card debt is at an all-time high, and high interest rates are making homes and cars, the two biggest purchases people make, less affordable.
What's more alarming is the Treasury yield curve, which has been inverted for about 18 months now -- meaning short-term yields are higher than long-term yields. This typically precedes a recession. All of this is to say that things might get worse before we see a recovery.
I'm sure every business out there wants to see a stronger economy sooner rather than later. This could happen if the Fed ends up cutting rates multiple times in 2024 as some forecasters anticipate. And Block would be in a good spot to gain.
When consumers are willing to spend more, it means greater capital inflows into Cash App and higher transaction volumes. This translates to more revenue potential.
On the Square side, it's a similar story. If merchants see a pickup in business, then Square benefits from higher service revenue and more payment volume. Plus, it could be easier to bring on more customers.
Should growth accelerate in 2024, there's no doubt that Block shares are in a wonderful position to see a boost. Strong fundamental performance can be a boon for the stock price.
The valuation is a key factor
In the short term, though, which is how I view the next 12 months, changes in investor sentiment have a greater impact on the stock price than fundamentals do. But because Block shares are so beaten down, now about 74% off their peak, this could add upside.
The current price-to-sales (P/S) multiple of under 2.2 is significantly lower than the historical average of 6. This indicates that investors have written off the stock. All else equal, paying a lower valuation is better. And should Block's P/S ratio start to approach its past average, it'll be exciting times for shareholders.
While it's almost impossible to predict what a particular stock will do in the next 12 months, I wouldn't be surprised at all if, a year from now, Block shares have eclipsed the $100 price target.
Should you invest $1,000 in Block right now?
Before you buy stock in Block, 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 Block 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
Neil Patel and his clients have no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Block. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In the Q3 2023 shareholder letter, co-founder and Chief Executive Officer Jack Dorsey talked about how one of his main focal points is to figure out ways to better integrate the two ecosystems. The valuation is a key factor In the short term, though, which is how I view the next 12 months, changes in investor sentiment have a greater impact on the stock price than fundamentals do. While it's almost impossible to predict what a particular stock will do in the next 12 months, I wouldn't be surprised at all if, a year from now, Block shares have eclipsed the $100 price target.
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This could happen if the Fed ends up cutting rates multiple times in 2024 as some forecasters anticipate. Before you buy stock in Block, 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 Block wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Neil Patel and his clients have no position in any of the stocks mentioned.
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While it's almost impossible to predict what a particular stock will do in the next 12 months, I wouldn't be surprised at all if, a year from now, Block shares have eclipsed the $100 price target. Before you buy stock in Block, 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 Block wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Neil Patel and his clients have no position in any of the stocks mentioned.
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This is what shareholders want to see from a stock that is still well below its peak price. The valuation is a key factor In the short term, though, which is how I view the next 12 months, changes in investor sentiment have a greater impact on the stock price than fundamentals do. Before you buy stock in Block, 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 Block wasn't one of them.
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099d6782-063e-4270-9030-c26cfe44ea32
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710903.0
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2023-12-16 00:00:00 UTC
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Steel Dynamics (STLD) Sees Lower Q4 Earnings in Steel Operations
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DCOMP
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https://www.nasdaq.com/articles/steel-dynamics-stld-sees-lower-q4-earnings-in-steel-operations
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nan
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nan
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Steel Dynamics, Inc. STLD recently issued its earnings guidance for the fourth quarter of 2023, projecting earnings to range between $2.60 per share and $2.64 per share. This represents a decline from the third quarter of 2023 earnings, which were $3.47 per share, and the prior year's fourth-quarter earnings, which were $3.61 per share.
The expected decrease in profitability for the fourth quarter in the company's steel operations is attributed to lower realized flat rolled steel pricing, outweighing the benefits of reduced scrap costs. Steel order activity, however, remains robust, indicated by extended order lead times and recent pricing increases anticipated for the first quarter of 2024.
In terms of the company's metals recycling operations, fourth-quarter earnings are projected to be comparable with the preceding quarter, with pricing-related metal spread expansion compensating for lower volume. This is attributed to reduced demand from domestic steel mills due to maintenance outages.
For the steel fabrication operations, fourth-quarter earnings are anticipated to be lower than the sequential third-quarter results. This is attributed to decreased shipments and metal spread compression, influenced by declining realized selling values and increased steel input costs during the quarter. Despite this, steel joist and deck order activity have shown improvement compared with the third quarter, and pricing has stabilized.
In the year leading up to Dec 13, 2023, the company has repurchased $1.4 billion, equivalent to almost 8%, of its common stock. Additionally, cash dividends totaling $271 million have been distributed to shareholders during the year.
Steel Dynamics’ shares have gained 18.3% in the past year compared with the industry's 29.4% rise in the same period.
Image Source: Zacks Investment Research
In the third quarter of 2023, Steel Dynamics reported earnings of $3.47 per share, down from earnings of $5.03 per share year over year. The figure is slightly below the Zacks Consensus Estimate of earnings of $3.49 per share. Despite challenges like lower steel prices, the company saw resilient steel demand and steady customer orders. Net sales for the quarter were $4,587.1 million, surpassing expectations despite a 19% year-over-year decline from $4,553.8 million, thus reflecting a mixed performance.
Steel Dynamics, Inc. Price and Consensus
Steel Dynamics, Inc. price-consensus-chart | Steel Dynamics, Inc. Quote
Zacks Rank & Key Picks
Steel Dynamics currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Basic Materials space are Axalta Coating Systems Ltd. AXTA, sporting a Zacks Rank #1 (Strong Buy), and Hawkins, Inc HWKN and Alamos Gold Inc. AGI, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for AXTA’s current-year earnings is pegged at $1.58 per share, indicating year-over-year growth of 6.8%. AXTA beat the Zacks Consensus Estimate in three of the last four quarters and missed one, with the average earnings surprise being 6.7%. The company’s shares have increased 34.6% in the past year.
The Zacks Consensus Estimate for HWKN’s current-year earnings has been revised upward by 1.8% in the past 60 days. HWKN beat the Zacks Consensus Estimate in each of the last four quarters. It delivered a trailing four-quarter earnings surprise of 27.5%, on average. The stock has rallied around 80.8% in a year.
The consensus estimate for Alamos’ current fiscal year earnings is pegged at 53 cents per share, indicating a year-over-year surge of 89.3%. AGI beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 25.6%. The company’s shares have surged 43.5% in the past year.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Steel Dynamics, Inc. (STLD) : Free Stock Analysis Report
Alamos Gold Inc. (AGI) : Free Stock Analysis Report
Axalta Coating Systems Ltd. (AXTA) : Free Stock Analysis Report
Hawkins, Inc. (HWKN) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
This is attributed to decreased shipments and metal spread compression, influenced by declining realized selling values and increased steel input costs during the quarter. The consensus estimate for Alamos’ current fiscal year earnings is pegged at 53 cents per share, indicating a year-over-year surge of 89.3%. As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys."
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Steel Dynamics, Inc. Price and Consensus Steel Dynamics, Inc. price-consensus-chart | Steel Dynamics, Inc. Quote Zacks Rank & Key Picks Steel Dynamics currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the Basic Materials space are Axalta Coating Systems Ltd. AXTA, sporting a Zacks Rank #1 (Strong Buy), and Hawkins, Inc HWKN and Alamos Gold Inc. AGI, each carrying a Zacks Rank #2 (Buy). Click to get this free report Steel Dynamics, Inc. (STLD) : Free Stock Analysis Report Alamos Gold Inc. (AGI) : Free Stock Analysis Report Axalta Coating Systems Ltd. (AXTA) : Free Stock Analysis Report Hawkins, Inc. (HWKN) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Image Source: Zacks Investment Research In the third quarter of 2023, Steel Dynamics reported earnings of $3.47 per share, down from earnings of $5.03 per share year over year. Steel Dynamics, Inc. Price and Consensus Steel Dynamics, Inc. price-consensus-chart | Steel Dynamics, Inc. Quote Zacks Rank & Key Picks Steel Dynamics currently carries a Zacks Rank #3 (Hold). Click to get this free report Steel Dynamics, Inc. (STLD) : Free Stock Analysis Report Alamos Gold Inc. (AGI) : Free Stock Analysis Report Axalta Coating Systems Ltd. (AXTA) : Free Stock Analysis Report Hawkins, Inc. (HWKN) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Image Source: Zacks Investment Research In the third quarter of 2023, Steel Dynamics reported earnings of $3.47 per share, down from earnings of $5.03 per share year over year. The company’s shares have increased 34.6% in the past year. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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702cbd53-2b3d-4736-8242-5b29ecccc80d
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710904.0
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2023-12-16 00:00:00 UTC
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Implied Volatility Surging for On CarGurus (CARG) Stock Options
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DCOMP
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https://www.nasdaq.com/articles/implied-volatility-surging-for-on-cargurus-carg-stock-options
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nan
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nan
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Investors in CarGurus, Inc. CARG need to pay close attention to the stock based on moves in the options market lately. That is because the Jan 19, 2024 $42.00 Call had some of the highest implied volatility of all equity options today.
What is Implied Volatility?
Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
What do the Analysts Think?
Clearly, options traders are pricing in a big move for CarGurus shares, but what is the fundamental picture for the company? Currently, CarGurus is a Zacks Rank #2 (Buy) in the Automotive - Replacement Parts industry that ranks in the Bottom 16% of our Zacks Industry Rank. Over the last 60 days, six analysts have increased the earnings estimates for the current quarter, while none have revised the estimates downward. The net effect has taken our Zacks Consensus Estimate for the current quarter from of 29 cents per share to 35 cents in that period.
Given the way analysts feel CarGurus right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.
Looking to Trade Options?
Check out the simple yet high-powered approach that Zacks Executive VP Kevin Matras has used to close recent double and triple-digit winners. In addition to impressive profit potential, these trades can actually reduce your risk.
Click to see the trades now >>
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
CarGurus, Inc. (CARG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. Check out the simple yet high-powered approach that Zacks Executive VP Kevin Matras has used to close recent double and triple-digit winners. Click to see the trades now >> Zacks Reveals ChatGPT "Sleeper" Stock One little-known company is at the heart of an especially brilliant Artificial Intelligence sector.
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Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research? Click to get this free report CarGurus, Inc. (CARG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. Currently, CarGurus is a Zacks Rank #2 (Buy) in the Automotive - Replacement Parts industry that ranks in the Bottom 16% of our Zacks Industry Rank. Oftentimes, options traders look for options with high levels of implied volatility to sell premium.
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Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. Looking to Trade Options? Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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0a98f94b-1e07-47c9-aeba-e17bfa777497
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710905.0
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2023-12-16 00:00:00 UTC
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Implied Volatility Surging for Brinker International (EAT) Stock Options
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DCOMP
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https://www.nasdaq.com/articles/implied-volatility-surging-for-brinker-international-eat-stock-options
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nan
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nan
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Investors in Brinker International, Inc. EAT need to pay close attention to the stock based on moves in the options market lately. That is because the Jan 19, 2024 $20 Call had some of the highest implied volatility of all equity options today.
What is Implied Volatility?
Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
What do the Analysts Think?
Clearly, options traders are pricing in a big move for Brinker International shares, but what is the fundamental picture for the company? Currently, Brinker International is a Zacks Rank #2 (Buy) in the Retail - Restaurants industry that ranks in the Top 33% of our Zacks Industry Rank. Over the last 30 days, four analysts have increased their earnings estimates for the current quarter, while two analysts have revised their estimates downward. The net effect has taken our Zacks Consensus Estimate for the current quarter from 89 cents per share to 92 cents in that period.
Given the way analysts feel about Brinker International right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.
Looking to Trade Options?
Check out the simple yet high-powered approach that Zacks Executive VP Kevin Matras has used to close recent double and triple-digit winners. In addition to impressive profit potential, these trades can actually reduce your risk.
Click to see the trades now >>
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Brinker International, Inc. (EAT) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. Check out the simple yet high-powered approach that Zacks Executive VP Kevin Matras has used to close recent double and triple-digit winners. Click to see the trades now >> Zacks Reveals ChatGPT "Sleeper" Stock One little-known company is at the heart of an especially brilliant Artificial Intelligence sector.
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Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research? Click to get this free report Brinker International, Inc. (EAT) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. Currently, Brinker International is a Zacks Rank #2 (Buy) in the Retail - Restaurants industry that ranks in the Top 33% of our Zacks Industry Rank. Given the way analysts feel about Brinker International right now, this huge implied volatility could mean there’s a trade developing.
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Given the way analysts feel about Brinker International right now, this huge implied volatility could mean there’s a trade developing. Looking to Trade Options? Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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e3e19f60-36c8-4550-aae8-cb3600ef369d
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710906.0
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2023-12-16 00:00:00 UTC
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4 ETF Areas & Stocks to Win on Upbeat November Retail Sales
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DCOMP
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https://www.nasdaq.com/articles/4-etf-areas-stocks-to-win-on-upbeat-november-retail-sales
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nan
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nan
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Retail Sales in the United States increased 4.1% year-on-year in November 2023, marking the strongest annual growth since February, following a downwardly revised 2.2% gain in October. Sales rose 0.3% sequentially in November, stronger than the 0.2% decline in October and better than the Dow Jones estimate for a decrease of 0.1%, as quoted on CNBC.
Sales remained solid despite a 2.9% slide in receipts at gas stations, as energy prices broadly slumped during the month. Barring autos, sales rose 0.2%, again better than the forecast for no change. Stripping out autos and gas, sales rose 0.6%.
Below we highlight a few areas and the related ETFs that may benefit handsomely.
Winning Areas
Motor Vehicle & Parts Dealers
Sales of this category gained 0.5% sequentially in June and up 6.1% year over year.
First Trust S-Network Future Vehicles & Technology ETF CARZ follows the S-Network Electric & Future Vehicle Ecosystem Index constituents are chosen by selecting the eligible Pure-Play companies in descending order of float-adjusted market capitalization until 100 constituents have been selected.
Group 1 Automotive Inc. GPI is one of the leading automotive retailers in the world, with operations primarily located in the United States and the UK. The stock has a Zacks Rank #3 (Hold).
Food and Drink Places
Sales at restaurants and bars increased 11.3% year over year and 1.6% sequentially.
AdvisorShares Restaurant ETF EATZ – The AdvisorShares Restaurant ETF is an actively managed exchange-traded fund that seeks to achieve its investment objective by investing at least 80% of its net assets in securities of companies that derive at least 50% of their net revenue from the restaurant business. The fund charges 99 bps in fees.
Wingstop WING – Wingstop Inc. franchises and operates restaurants. The Company's operating segment consists of Franchise segment and Company segment. The fund has a Zacks Rank #1.
Non-Store Retailers
Sales at non-store retailers rose 10.6% year over year in June. Sequentially, sales are up 1.0%.
ProShares Online Retail ETF ONLN tracks the ProShares Online Retail Index is a specialized retail index that tracks retailers that principally sell online or through other non-store channels.
The Zacks Rank #1 Amazon.com AMZN is one of the largest e-commerce providers, with sprawling operations in North America, now spreading across the globe.
Health & Personal Care Stores
Sales gained 0.9% sequentially in November and 10.9% year over year.
Global X Funds Global X Health BFIT – The uderlying Indxx Global Health & Wellness Thematic Index tracks the performance of companies listed in developed markets that provide products and services aimed at promoting physical wellness through active and healthy lifestyles, including but not limited to fitness equipment and technology, athletic apparel, nutritional supplements, and organic/ natural food offerings.
Procter & Gamble PG – As far as stocks are concerned, investors can take a look at PG. Procter & Gamble or P&G, is a branded consumer products company which markets its products in more than 180 countries primarily through mass merchandisers, grocery stores, membership club stores, drug stores, department stores, distributors, baby stores, specialty beauty stores, e-commerce, high-frequency stores, pharmacies, electronics stores and professional channels. The fund has a Zacks Rank #3.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Procter & Gamble Company (The) (PG) : Free Stock Analysis Report
Group 1 Automotive, Inc. (GPI) : Free Stock Analysis Report
Wingstop Inc. (WING) : Free Stock Analysis Report
First Trust S-Network Future Vehicles & Technology ETF (CARZ): ETF Research Reports
Global X Funds Global X Health (BFIT): ETF Research Reports
ProShares Online Retail ETF (ONLN): ETF Research Reports
AdvisorShares Restaurant ETF (EATZ): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Retail Sales in the United States increased 4.1% year-on-year in November 2023, marking the strongest annual growth since February, following a downwardly revised 2.2% gain in October. Sales rose 0.3% sequentially in November, stronger than the 0.2% decline in October and better than the Dow Jones estimate for a decrease of 0.1%, as quoted on CNBC. Sales remained solid despite a 2.9% slide in receipts at gas stations, as energy prices broadly slumped during the month.
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First Trust S-Network Future Vehicles & Technology ETF CARZ follows the S-Network Electric & Future Vehicle Ecosystem Index constituents are chosen by selecting the eligible Pure-Play companies in descending order of float-adjusted market capitalization until 100 constituents have been selected. ProShares Online Retail ETF ONLN tracks the ProShares Online Retail Index is a specialized retail index that tracks retailers that principally sell online or through other non-store channels. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Procter & Gamble Company (The) (PG) : Free Stock Analysis Report Group 1 Automotive, Inc. (GPI) : Free Stock Analysis Report Wingstop Inc. (WING) : Free Stock Analysis Report First Trust S-Network Future Vehicles & Technology ETF (CARZ): ETF Research Reports Global X Funds Global X Health (BFIT): ETF Research Reports ProShares Online Retail ETF (ONLN): ETF Research Reports AdvisorShares Restaurant ETF (EATZ): ETF Research Reports To read this article on Zacks.com click here.
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AdvisorShares Restaurant ETF EATZ – The AdvisorShares Restaurant ETF is an actively managed exchange-traded fund that seeks to achieve its investment objective by investing at least 80% of its net assets in securities of companies that derive at least 50% of their net revenue from the restaurant business. Procter & Gamble or P&G, is a branded consumer products company which markets its products in more than 180 countries primarily through mass merchandisers, grocery stores, membership club stores, drug stores, department stores, distributors, baby stores, specialty beauty stores, e-commerce, high-frequency stores, pharmacies, electronics stores and professional channels. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Procter & Gamble Company (The) (PG) : Free Stock Analysis Report Group 1 Automotive, Inc. (GPI) : Free Stock Analysis Report Wingstop Inc. (WING) : Free Stock Analysis Report First Trust S-Network Future Vehicles & Technology ETF (CARZ): ETF Research Reports Global X Funds Global X Health (BFIT): ETF Research Reports ProShares Online Retail ETF (ONLN): ETF Research Reports AdvisorShares Restaurant ETF (EATZ): ETF Research Reports To read this article on Zacks.com click here.
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The stock has a Zacks Rank #3 (Hold). Health & Personal Care Stores Sales gained 0.9% sequentially in November and 10.9% year over year. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Procter & Gamble Company (The) (PG) : Free Stock Analysis Report Group 1 Automotive, Inc. (GPI) : Free Stock Analysis Report Wingstop Inc. (WING) : Free Stock Analysis Report First Trust S-Network Future Vehicles & Technology ETF (CARZ): ETF Research Reports Global X Funds Global X Health (BFIT): ETF Research Reports ProShares Online Retail ETF (ONLN): ETF Research Reports AdvisorShares Restaurant ETF (EATZ): ETF Research Reports To read this article on Zacks.com click here.
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4e887d62-4738-47cc-a252-7f03fa37697a
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710907.0
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2023-12-16 00:00:00 UTC
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BlackRock (BLK) Sued for Allegedly Misleading ESG Strategy
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DCOMP
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https://www.nasdaq.com/articles/blackrock-blk-sued-for-allegedly-misleading-esg-strategy
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nan
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BlackRock, Inc. BLK has been sued by the U.S. state of Tennessee for allegedly breaching consumer protection laws by misusing environmental, social and governance (“ESG”) factors in its investment strategy.
A lawsuit was filed in state court yesterday by Tennessee attorney-general Jonathan Skrmetti, who claimed that the asset manager was inconsistent in stating whether it focused exclusively on investment returns or preferred ESG considerations.
Per the lawsuit, “For years . . . BlackRock has misled consumers about the scope and effects of its widespread ESG activity. BlackRock has downplayed the extent to which ESG considerations drive its investment strategies across all holdings, even in non-ESG funds and overstated the extent to which ESG considerations can affect companies’ financial performance and outlook.”
However, BLK has been rejecting Tennessee’s claims.
BlackRock said that it “fully and accurately” discloses its investment practices and approach to proxy voting. Hence, the firm plans to contest the accusations.
Earlier in 2023, as part of an investigation into potential violations of consumer law, Skrmetti ordered ten major asset managers to give information on how they would tackle climate change.
In March, Skrmetti and a few other state AGs wrote to money managers, suggesting they were breaching fiduciary duty in handling environmental or social issues.
Factors like climate change and workforce diversity have been increasingly considered by companies and investors because these can impact performance and reputation.
Over the past six months, shares of BLK have gained 15.3% compared with the industry’s growth of 18.3%.
Image Source: Zacks Investment Research
Currently, BlackRock carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Legal Issues of Other Finance Companies
Last month, Morgan Stanley MS agreed on a $6.5 million settlement with six state AGs, led by New York AG Letitia James. The firm’s U.S. wealth management business, earlier known as Morgan Stanley Smith Barney LLC, was charged with failing to protect customers’ personal information while shutting down two data centers in 2016.
MS was accused of negligence in properly decommissioning computers that contained unencrypted customer data.
According to the agreement released by AG James, “Morgan Stanley failed to decommission its computers and erase unencrypted data in certain computer devices that were later auctioned while still containing consumers’ personal information, including data belonging to 1.1 million New Yorkers.”
A few months ago, Goldman Sachs GS agreed to pay $6 million to the Securities and Exchange Commission (“SEC”) for not providing complete and accurate information in the blue sheets. It contained data regarding securities trading and transactions that were supplied to various regulatory authorities.
Per SEC’s findings, GS made more than 22,000 inadequate blue sheet submissions between 2012 and 2022, comprising 43 different types of errors that affected more than 163 million transactions.
SEC stated that GS did not have adequate processes to verify the accuracy of its electronic blue sheet submissions. Moreover, per the SEC, Goldman knowingly violated the recordkeeping and reporting provisions of the federal securities laws.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The Goldman Sachs Group, Inc. (GS) : Free Stock Analysis Report
Morgan Stanley (MS) : Free Stock Analysis Report
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.
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BlackRock, Inc. BLK has been sued by the U.S. state of Tennessee for allegedly breaching consumer protection laws by misusing environmental, social and governance (“ESG”) factors in its investment strategy. Earlier in 2023, as part of an investigation into potential violations of consumer law, Skrmetti ordered ten major asset managers to give information on how they would tackle climate change. The firm’s U.S. wealth management business, earlier known as Morgan Stanley Smith Barney LLC, was charged with failing to protect customers’ personal information while shutting down two data centers in 2016.
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BlackRock, Inc. BLK has been sued by the U.S. state of Tennessee for allegedly breaching consumer protection laws by misusing environmental, social and governance (“ESG”) factors in its investment strategy. A few months ago, Goldman Sachs GS agreed to pay $6 million to the Securities and Exchange Commission (“SEC”) for not providing complete and accurate information in the blue sheets. Click to get this free report The Goldman Sachs Group, Inc. (GS) : Free Stock Analysis Report Morgan Stanley (MS) : Free Stock Analysis Report BlackRock, Inc. (BLK) : Free Stock Analysis Report To read this article on Zacks.com click here.
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BlackRock, Inc. BLK has been sued by the U.S. state of Tennessee for allegedly breaching consumer protection laws by misusing environmental, social and governance (“ESG”) factors in its investment strategy. A lawsuit was filed in state court yesterday by Tennessee attorney-general Jonathan Skrmetti, who claimed that the asset manager was inconsistent in stating whether it focused exclusively on investment returns or preferred ESG considerations. Click to get this free report The Goldman Sachs Group, Inc. (GS) : Free Stock Analysis Report Morgan Stanley (MS) : Free Stock Analysis Report BlackRock, Inc. (BLK) : Free Stock Analysis Report To read this article on Zacks.com click here.
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A lawsuit was filed in state court yesterday by Tennessee attorney-general Jonathan Skrmetti, who claimed that the asset manager was inconsistent in stating whether it focused exclusively on investment returns or preferred ESG considerations. MS was accused of negligence in properly decommissioning computers that contained unencrypted customer data. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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1b72371b-08e7-4490-99a2-dfba7ea2fe49
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710908.0
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2023-12-16 00:00:00 UTC
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Ralph Lauren (RL) Rises More Than 41% in a Year: Here's Why
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DCOMP
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https://www.nasdaq.com/articles/ralph-lauren-rl-rises-more-than-41-in-a-year%3A-heres-why
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nan
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nan
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Ralph Lauren Corporation RL seems to be doing well on the bourses, thanks to its digital endeavors and other robust strategies. Its strategic efforts, including the Next Great Chapter plan, appear encouraging. Undoubtedly, management is focused on enhancing digital capabilities, deepening relations with customers via marketing, expanding international markets and efficiently controlling expenses.
Buoyed by such strengths, shares of this apparel and accessories designer have surged 41.3% compared with the industry’s 24.3% growth in a year. A Value Score of B adds strength to this current Zacks Rank #3 (Hold) company.
Let’s Delve Deeper
Ralph Lauren is on track to exceed its top and bottom-line targets under the “Next Great Chapter” plan that was announced in June 2018. Later, it announced measures to accelerate its “Next Great Chapter plan,” which includes creating a simplified global organizational structure and rolling out improved technological capabilities.
As part of the plan, it completed the transition of Chaps to a licensed business, thus concluding its portfolio realignment announced last year. The move will likely enable it to focus on core brands, as part of the Next Great Chapter elevation strategy. In addition, the company’s strategy of product elevation, personalized and targeted promotion, disciplined inventory management and favorable channel and geographic mix bodes well.
Image Source: Zacks Investment Research
Ralph Lauren is making significant progress in expanding digital and omnichannel capabilities through investments in mobile, omnichannel and fulfillment. The company remains focused on further digital investments to continue the creation of content for all platforms, thus expanding digital capabilities to improve the user experience, and continuing to leverage AI and data to serve consumers more efficiently.
Ralph Lauren continues to scale and expand its connected retail capabilities, including virtual selling appointments, “buy online, pick up in store,” endless aisle product availability and more. The company launched its first-ever full catalog Ralph Lauren mobile app, thus efficiently leveraging its connected retail capabilities to deliver the most personalized and content-rich platform.
During the second quarter of fiscal 2024, the company’s digital business, including its directly-operated sites, departmentstore.com, pure players and social commerce, was impressive. Strength in its international markets more than offset weakness in North America. Region-wise, digital sales were up 14% in Europe and 19% in Asia.
The company added 1.3 million new consumers to its direct-to-consumer (DTC) businesses in the fiscal third quarter. It reached a milestone of 55.9 million social media followers globally, which reflects a year-over-year low-double-digit increase. This was mainly driven by popularity in Instagram, Line, TikTok and other key platforms. The company continues to witness online search trends outpacing its peers globally, driven by spring icons and accessories.
What’s More?
For fiscal 2024, management projects constant-currency revenues to rise in low single digits, in the range of 1-2%, versus our estimate of 1.4% growth year over year. The company expects top-line growth to be driven by Asia, followed by a low single-digit increase in Europe. It expects a gross margin increase in the band of 120-170 basis points (bps) in constant currency, up from 100 bps expected earlier, gaining from favorable freight costs and mix shifts toward the international and DTC, more than offsetting cotton inflation.
Ralph Lauren anticipates an operating margin expansion of about 30-50 bps in constant currency to 12.3-12.5%. For the fiscal third quarter, the company anticipated revenue growth of 1-2% on a constant-currency basis, on gains from Asia. The gross margin is expected to expand 100-150 bps, which will more than offset higher operating expenses. The operating margin is predicted to be flat on a constant-currency basis, including a 10-bps positive impact of foreign currency.
Analysts seem quite optimistic about the company. The Zacks Consensus Estimate for fiscal 2024 sales and earnings per share (EPS) is currently pegged at $6.5 billion and $9.43, respectively. These estimates show corresponding growth of 1.4% and 13.1% year over year. Hence, this company seems to be a decent investment pick given all the aforementioned positives.
Eye These Solid Picks
Some better-ranked companies are Royal Caribbean RCL, GIII Apparel GIII and lululemon athletica LULU.
Royal Caribbean sports a Zacks Rank #1 (Strong Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
RCL has a trailing four-quarter earnings surprise of 28.3%, on average. The Zacks Consensus Estimate for RCL’s 2023 sales and EPS indicates increases of 57.7% and 187.9%, respectively, from the year-ago period’s reported levels.
GIII Apparel, an accessories dealer, sports a Zacks Rank of 1 at present. GIII has a trailing four-quarter earnings surprise of 541.8%, on average.
The Zacks Consensus Estimate for GIII Apparel’s current financial-year EPS suggests growth of 33%, respectively, from the year-ago corresponding figure.
lululemon athletica is a yoga-inspired athletic apparel company. LULU carries a Zacks Rank #2 (Buy), at present.
The Zacks Consensus Estimate for lululemon athletica’s current financial-year sales and EPS suggests growth of 18.2% and 20.5%, respectively, from the year-ago corresponding figures. LULU has a trailing four-quarter earnings surprise of 6.8%, on average.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report
Ralph Lauren Corporation (RL) : Free Stock Analysis Report
lululemon athletica inc. (LULU) : Free Stock Analysis Report
G-III Apparel Group, LTD. (GIII) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Later, it announced measures to accelerate its “Next Great Chapter plan,” which includes creating a simplified global organizational structure and rolling out improved technological capabilities. Ralph Lauren continues to scale and expand its connected retail capabilities, including virtual selling appointments, “buy online, pick up in store,” endless aisle product availability and more. The company launched its first-ever full catalog Ralph Lauren mobile app, thus efficiently leveraging its connected retail capabilities to deliver the most personalized and content-rich platform.
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The Zacks Consensus Estimate for GIII Apparel’s current financial-year EPS suggests growth of 33%, respectively, from the year-ago corresponding figure. The Zacks Consensus Estimate for lululemon athletica’s current financial-year sales and EPS suggests growth of 18.2% and 20.5%, respectively, from the year-ago corresponding figures. Click to get this free report Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report Ralph Lauren Corporation (RL) : Free Stock Analysis Report lululemon athletica inc. (LULU) : Free Stock Analysis Report G-III Apparel Group, LTD. (GIII) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Image Source: Zacks Investment Research Ralph Lauren is making significant progress in expanding digital and omnichannel capabilities through investments in mobile, omnichannel and fulfillment. The company remains focused on further digital investments to continue the creation of content for all platforms, thus expanding digital capabilities to improve the user experience, and continuing to leverage AI and data to serve consumers more efficiently. Click to get this free report Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report Ralph Lauren Corporation (RL) : Free Stock Analysis Report lululemon athletica inc. (LULU) : Free Stock Analysis Report G-III Apparel Group, LTD. (GIII) : Free Stock Analysis Report To read this article on Zacks.com click here.
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For the fiscal third quarter, the company anticipated revenue growth of 1-2% on a constant-currency basis, on gains from Asia. The Zacks Consensus Estimate for fiscal 2024 sales and earnings per share (EPS) is currently pegged at $6.5 billion and $9.43, respectively. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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0ddf895b-3088-4024-82ef-c5bcc599bc2f
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710909.0
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2023-12-16 00:00:00 UTC
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Do Options Traders Know Something About Darling Ingredients (DAR) Stock We Don't?
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DCOMP
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https://www.nasdaq.com/articles/do-options-traders-know-something-about-darling-ingredients-dar-stock-we-dont
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nan
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nan
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Investors in Darling Ingredients Inc. DAR need to pay close attention to the stock based on moves in the options market lately. That is because the Jan 19, 2024 $30.00 Call had some of the highest implied volatility of all equity options today.
What is Implied Volatility?
Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
What do the Analysts Think?
Clearly, options traders are pricing in a big move for Darling Ingredients shares, but what is the fundamental picture for the company? Currently, Darling Ingredients is a Zacks Rank #4 (Sell) in the Food - Miscellaneous industry that ranks in the Top 37% of our Zacks Industry Rank. Over the last 60 days, no analysts have increased their earnings estimates for the current quarter, while four analysts have revised their estimates downward. The net effect has taken our Zacks Consensus Estimate for the current quarter from $1.38 per share to 98 cents in that period.
Given the way analysts feel about Darling Ingredients right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.
Looking to Trade Options?
Check out the simple yet high-powered approach that Zacks Executive VP Kevin Matras has used to close recent double and triple-digit winners. In addition to impressive profit potential, these trades can actually reduce your risk.
Click to see the trades now >>
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Darling Ingredients Inc. (DAR) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. Check out the simple yet high-powered approach that Zacks Executive VP Kevin Matras has used to close recent double and triple-digit winners. Click to see the trades now >> Zacks Reveals ChatGPT "Sleeper" Stock One little-known company is at the heart of an especially brilliant Artificial Intelligence sector.
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Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research? Click to get this free report Darling Ingredients Inc. (DAR) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. Currently, Darling Ingredients is a Zacks Rank #4 (Sell) in the Food - Miscellaneous industry that ranks in the Top 37% of our Zacks Industry Rank. Oftentimes, options traders look for options with high levels of implied volatility to sell premium.
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Given the way analysts feel about Darling Ingredients right now, this huge implied volatility could mean there’s a trade developing. Looking to Trade Options? Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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ed52a0e7-4728-465f-bf3d-e451f9d53bb6
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710910.0
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2023-12-16 00:00:00 UTC
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Implied Volatility Surging for Alaska Air (ALK) Stock Options
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https://www.nasdaq.com/articles/implied-volatility-surging-for-alaska-air-alk-stock-options
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Investors in Alaska Air Group, Inc. ALK need to pay close attention to the stock based on moves in the options market lately. That is because the Jan 17, 2025 $22.50 Call had some of the highest implied volatility of all equity options today.
What is Implied Volatility?
Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
What do the Analysts Think?
Clearly, options traders are pricing in a big move for Alaska Air shares, but what is the fundamental picture for the company? Currently, Alaska Air is a Zacks Rank #3 (Hold) in the Transportation - Airline industry that ranks in the Bottom 25% of our Zacks Industry Rank. Over the last 60 days, no analysts have increased their earnings estimates for the current quarter, while six have dropped their estimates. The net effect has taken our Zacks Consensus Estimate for the current quarter from $1.07 per share to 21 cents in that period.
Given the way analysts feel about Alaska Air right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.
Looking to Trade Options?
Check out the simple yet high-powered approach that Zacks Executive VP Kevin Matras has used to close recent double and triple-digit winners. In addition to impressive profit potential, these trades can actually reduce your risk.
Click to see the trades now >>
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. Check out the simple yet high-powered approach that Zacks Executive VP Kevin Matras has used to close recent double and triple-digit winners. Click to see the trades now >> Zacks Reveals ChatGPT "Sleeper" Stock One little-known company is at the heart of an especially brilliant Artificial Intelligence sector.
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Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research? Click to get this free report Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. Currently, Alaska Air is a Zacks Rank #3 (Hold) in the Transportation - Airline industry that ranks in the Bottom 25% of our Zacks Industry Rank. Oftentimes, options traders look for options with high levels of implied volatility to sell premium.
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Given the way analysts feel about Alaska Air right now, this huge implied volatility could mean there’s a trade developing. Looking to Trade Options? Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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2044496d-b2d4-4e3b-89c7-44ed559fd9a0
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710911.0
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2023-12-16 00:00:00 UTC
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UBS Shares Surge On Reports Of Cevian Capital's Stake
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https://www.nasdaq.com/articles/ubs-shares-surge-on-reports-of-cevian-capitals-stake
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(RTTNews) - As per Financial Times, International investment firm Cevian Capital has taken a 1.3% stake in UBS worth approximately 1.2 billion euros. The investment firm sees significant value potential in UBS following the merger with Credit Suisse.
Following the merger of the holding companies UBS Group AG and CS Group AG on 12 June 2023, the Board of UBS Group AG recently approved the execution of a merger of UBS AG and Credit Suisse AG. The completion is subject to regulatory approvals and is anticipated to happen in 2024.
Cevian Capital acquires significant minority ownership positions in European public companies and works to advance long-term and sustainable value creation.
Shares of UBS are up 3% in pre-market trade on Tuesday.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - As per Financial Times, International investment firm Cevian Capital has taken a 1.3% stake in UBS worth approximately 1.2 billion euros. The investment firm sees significant value potential in UBS following the merger with Credit Suisse. Cevian Capital acquires significant minority ownership positions in European public companies and works to advance long-term and sustainable value creation.
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(RTTNews) - As per Financial Times, International investment firm Cevian Capital has taken a 1.3% stake in UBS worth approximately 1.2 billion euros. The investment firm sees significant value potential in UBS following the merger with Credit Suisse. Following the merger of the holding companies UBS Group AG and CS Group AG on 12 June 2023, the Board of UBS Group AG recently approved the execution of a merger of UBS AG and Credit Suisse AG.
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(RTTNews) - As per Financial Times, International investment firm Cevian Capital has taken a 1.3% stake in UBS worth approximately 1.2 billion euros. Following the merger of the holding companies UBS Group AG and CS Group AG on 12 June 2023, the Board of UBS Group AG recently approved the execution of a merger of UBS AG and Credit Suisse AG. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The investment firm sees significant value potential in UBS following the merger with Credit Suisse. The completion is subject to regulatory approvals and is anticipated to happen in 2024. Cevian Capital acquires significant minority ownership positions in European public companies and works to advance long-term and sustainable value creation.
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267f24b8-807e-4c4e-b886-da48bfef9e93
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710912.0
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2023-12-16 00:00:00 UTC
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NVIDIA (NVDA) Up 243% YTD: Will It Carry Momentum in 2024?
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DCOMP
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https://www.nasdaq.com/articles/nvidia-nvda-up-243-ytd%3A-will-it-carry-momentum-in-2024
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NVIDIA Corporation NVDA has witnessed a remarkable run, showcasing a staggering 243% year-to-date surge in its stock price, pushing the company to the forefront of technology and innovation. NVIDIA also achieved a massive milestone in May 2023 by joining the exclusive club of companies with a $1 trillion market capitalization.
The surge reflects investors' confidence in NVIDIA's strategic positioning, robust financial performance and pivotal role in shaping transformative technologies like artificial intelligence (AI), gaming and data center solutions.
However, the looming question remains — Can NVIDIA sustain this momentum through 2024?
NVIDIA Corporation Price and Consensus
NVIDIA Corporation price-consensus-chart | NVIDIA Corporation Quote
Will GenAI Investments Aid NVDA’s Surge?
NVIDIA’s robust stock price performance has been primarily driven by hopes that the company will be a prime beneficiary of growing investments in generative AI. Given generative AI’s inherited opportunities and the company’s leadership in the space, we believe the NVDA stock is poised to carry the momentum in 2024.
NVIDIA dominates the market for AI chips. The meteoric rise of OpenAI’s ChatGPT and its adoption among enterprises have already proven generative AI technology’s usefulness across multiple industries, including marketing, advertising, customer service, education, content creation, healthcare, automotive, energy & utilities and video game development.
The growing demand to modernize the workflow across industries is expected to drive the demand for generative AI applications. The global generative AI market size is anticipated to reach $109.37 billion by 2030, according to a new report by Grand View Research. The market is expected to expand at a CAGR of 35.6% from 2023 to 2030.
However, generative AI requires vast knowledge to create content and needs huge computational power. As a result, enterprises looking to create generative AI-based applications will be required to upgrade their existing network infrastructure.
NVIDIA’s next-generation chips with high computing power can be the top choice for enterprises. The company’s GPUs are already being applied in AI models. This is expanding NVDA’s footprint in untapped markets like automotive, healthcare and manufacturing.
The generative AI revolution is likely to create huge demand for its next-generation high computing powerful chips. Considering surging AI investments across the data center end market, NVDA expects its fourth-quarter fiscal 2024 revenues to reach $20 billion from $6.05 billion in the year-ago quarter.
Additionally, NVIDIA currently carries a Zacks Rank #2 (Buy) and has a Growth Score of A. Our research shows that stocks with a Growth Score of A or B when combined with a Zacks Rank #1 (Strong Buy) or #2 offer the best investment opportunities for investors. Thus, the company appears to be a compelling investment proposition at the moment.
Other Stocks in the $1T Club
Apart from NVIDIA, only four companies — Apple Inc. AAPL, Microsoft Corporation MSFT, Alphabet Inc. GOOGL and Amazon.com, Inc. AMZN — have a market cap of more than $1 trillion at present. AAPL has the highest market cap of $3.05 trillion, followed by MSFT’s $2.77 trillion, GOOGL’s $1.71 trillion and AMZN’s $1.59 trillion. At yesterday’s closing price of $500.77, NVDA has a market capitalization of $1.23 trillion, positioning it in the fifth spot.
Shares of Apple, Microsoft, Alphabet and Amazon have rallied 50.7%, 55.4%, 53.9% and 83.2%, respectively, year to date. Currently, AMZN sports a Zacks Rank #1, while AAPL, MSFT and GOOGL each carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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NVIDIA Corporation NVDA has witnessed a remarkable run, showcasing a staggering 243% year-to-date surge in its stock price, pushing the company to the forefront of technology and innovation. The surge reflects investors' confidence in NVIDIA's strategic positioning, robust financial performance and pivotal role in shaping transformative technologies like artificial intelligence (AI), gaming and data center solutions. The meteoric rise of OpenAI’s ChatGPT and its adoption among enterprises have already proven generative AI technology’s usefulness across multiple industries, including marketing, advertising, customer service, education, content creation, healthcare, automotive, energy & utilities and video game development.
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The generative AI revolution is likely to create huge demand for its next-generation high computing powerful chips. Other Stocks in the $1T Club Apart from NVIDIA, only four companies — Apple Inc. AAPL, Microsoft Corporation MSFT, Alphabet Inc. GOOGL and Amazon.com, Inc. AMZN — have a market cap of more than $1 trillion at present. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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NVIDIA Corporation Price and Consensus NVIDIA Corporation price-consensus-chart | NVIDIA Corporation Quote Will GenAI Investments Aid NVDA’s Surge? Other Stocks in the $1T Club Apart from NVIDIA, only four companies — Apple Inc. AAPL, Microsoft Corporation MSFT, Alphabet Inc. GOOGL and Amazon.com, Inc. AMZN — have a market cap of more than $1 trillion at present. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Other Stocks in the $1T Club Apart from NVIDIA, only four companies — Apple Inc. AAPL, Microsoft Corporation MSFT, Alphabet Inc. GOOGL and Amazon.com, Inc. AMZN — have a market cap of more than $1 trillion at present. AAPL has the highest market cap of $3.05 trillion, followed by MSFT’s $2.77 trillion, GOOGL’s $1.71 trillion and AMZN’s $1.59 trillion. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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118fc94e-7cd8-4461-ac63-9f41640ed181
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710913.0
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2023-12-16 00:00:00 UTC
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If You Invested $1000 in Abercrombie & Fitch a Decade Ago, This is How Much It'd Be Worth Now
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https://www.nasdaq.com/articles/if-you-invested-%241000-in-abercrombie-fitch-a-decade-ago-this-is-how-much-itd-be-worth-now
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How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.
What if you'd invested in Abercrombie & Fitch (ANF) ten years ago? It may not have been easy to hold on to ANF for all that time, but if you did, how much would your investment be worth today?
Abercrombie & Fitch's Business In-Depth
With that in mind, let's take a look at Abercrombie & Fitch's main business drivers.
Abercrombie & Fitch Co. operates as a specialty retailer of premium, high-quality casual apparel for men, women, and kids through a network of approximately 759 stores across North America, Europe, Asia and the Middle East, as well as the e-commerce sites www.abercrombie.com, www.abercrombiekids.com, www.hollisterco.com, www.gillyhicks.com and www.socialtourist.com.
Abercrombie's product portfolio includes knit and woven shirts, graphic T-shirts, fleece, jeans and woven pants, shorts, sweaters, outerwear, personal care products and accessories for men, women and kids, under the Abercrombie & Fitch, abercrombie kids and Hollister brands.
Additionally, the company sells inner wear, personal care products, sleepwear and at-home products for girls through direct-to-consumer operations and Hollister stores under the Gilly Hicks brand. It also sells products through its e-commerce platform.
In the fiscal second quarter, the company reorganized its structure. It will now report under three geographical segments, namely Americas; Europe, the Middle East and Africa (EMEA), and Asia-Pacific (APAC). All prior periods presented have been altered to conform to this reclassification. Brand-wise, Abercrombie reports in two segments - Abercrombie and Hollister.
Abercrombie (49.5% of the net sales in the third quarter) includes the Abercrombie & Fitch and abercrombie kids brands. Abercrombie & Fitch, targeted at the college-going crowd, is positioned as a luxury lifestyle concept that uses the finest materials to create high-quality casual wear. abercrombie kids, themed as "classic cool", is aimed at pre-teens and is the children's version of Abercrombie & Fitch.
Hollister (50.5%) is based on a South California theme, and targets youth in their late teens. Stores under this brand also offer intimate products of the Gilly Hicks brand.
Bottom Line
While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in Abercrombie & Fitch ten years ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in December 2013 would be worth $2,723.76, or a gain of 172.38%, as of December 19, 2023, and this return excludes dividends but includes price increases.
In comparison, the S&P 500 gained 161.82% and the price of gold went up 63.60% over the same time frame.
Looking ahead, analysts are expecting more upside for ANF.
Abercrombie’s shares outperformed the industry in the past three months. The stock's bullish run on the bourses can be attributable to continued momentum in the Abercrombie brand and sequential improvement in the Hollister brand. This led to the third consecutive quarter of earnings beat in third-quarter fiscal 2023. Lower freight costs and robust AUR growth aided margins. As a result, ANF expects year-over-year sales growth of 12-14% for fiscal 2023 versus our estimate of 12.7% growth. The company noted that its efforts to improve the brand positioning of the Hollister brand have been paying off. Also, store optimization and the Always Forward plan bode well. However, Abercrombie has been witnessing elevated operating costs from higher technology expenses and incentive-based compensation. Also, inflationary pressures are concerning.
The stock is up 19.89% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 6 higher, for fiscal 2024. The consensus estimate has moved up as well.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Abercrombie & Fitch Company (ANF) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Abercrombie & Fitch Co. operates as a specialty retailer of premium, high-quality casual apparel for men, women, and kids through a network of approximately 759 stores across North America, Europe, Asia and the Middle East, as well as the e-commerce sites www.abercrombie.com, www.abercrombiekids.com, www.hollisterco.com, www.gillyhicks.com and www.socialtourist.com. Abercrombie & Fitch, targeted at the college-going crowd, is positioned as a luxury lifestyle concept that uses the finest materials to create high-quality casual wear. Zacks Reveals ChatGPT "Sleeper" Stock One little-known company is at the heart of an especially brilliant Artificial Intelligence sector.
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What if you'd invested in Abercrombie & Fitch (ANF) ten years ago? Abercrombie's product portfolio includes knit and woven shirts, graphic T-shirts, fleece, jeans and woven pants, shorts, sweaters, outerwear, personal care products and accessories for men, women and kids, under the Abercrombie & Fitch, abercrombie kids and Hollister brands. Click to get this free report Abercrombie & Fitch Company (ANF) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Abercrombie's product portfolio includes knit and woven shirts, graphic T-shirts, fleece, jeans and woven pants, shorts, sweaters, outerwear, personal care products and accessories for men, women and kids, under the Abercrombie & Fitch, abercrombie kids and Hollister brands. Abercrombie (49.5% of the net sales in the third quarter) includes the Abercrombie & Fitch and abercrombie kids brands. Click to get this free report Abercrombie & Fitch Company (ANF) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Abercrombie (49.5% of the net sales in the third quarter) includes the Abercrombie & Fitch and abercrombie kids brands. As a result, ANF expects year-over-year sales growth of 12-14% for fiscal 2023 versus our estimate of 12.7% growth. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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26303614-2213-4529-b2a8-c8f90995415a
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710914.0
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2023-12-16 00:00:00 UTC
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Huge News: Coinbase's $300 Trillion Opportunity
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https://www.nasdaq.com/articles/huge-news%3A-coinbases-%24300-trillion-opportunity
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Coinbase (NASDAQ: COIN) has been talking about disrupting traditional finance markets for years, but it may finally be turning that potential into reality in the $300 trillion global debt market. A test debt product was produced and matured, showing the blockchain's capability to provide transparency and fast settlement for investors.
In this video, Travis Hoium covers Coinbase's new financial product and tells how it could disrupt a massive amount of financial transactions in the future.
*Stock prices used were end-of-day prices of Dec. 15, 2023. The video was published on Dec. 17, 2023.
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 11, 2023
Travis Hoium has positions in Coinbase Global, Ethereum, and Solana. The Motley Fool has positions in and recommends Avalanche, Bitcoin, Coinbase Global, Ethereum, and Solana. The Motley Fool has a disclosure policy. Travis Hoium is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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A test debt product was produced and matured, showing the blockchain's capability to provide transparency and fast settlement for investors. The 10 stocks that made the cut could produce monster returns in the coming years. The Motley Fool has positions in and recommends Avalanche, Bitcoin, Coinbase Global, Ethereum, and Solana.
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In this video, Travis Hoium covers Coinbase's new financial product and tells how it could disrupt a massive amount of financial transactions in the future. 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 11, 2023 Travis Hoium has positions in Coinbase Global, Ethereum, and Solana.
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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. 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 11, 2023 Travis Hoium has positions in Coinbase Global, Ethereum, and Solana.
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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 Travis Hoium has positions in Coinbase Global, Ethereum, and Solana. Their opinions remain their own and are unaffected by The Motley Fool.
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c1e85965-276e-4bd6-bf61-2f6f98103ccf
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710915.0
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2023-12-16 00:00:00 UTC
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Carrier's (CARR) Viessmann Buyout Receives Approval in Europe
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https://www.nasdaq.com/articles/carriers-carr-viessmann-buyout-receives-approval-in-europe
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Carrier Global CARR recently announced that it has received the European Commission’s approval to acquire Viessmann Climate Solutions.
The transaction, announced in April of 2023, is now expected to be completed on Jan 2, 2024.
The acquisition will boost Carrier Global’s portfolio of sustainable energy and climate solutions.
Viessman broadens Carrier's European footprint by offering solutions for all energy classes, including heat pumps, gas boilers and hydrogen boilers.
Carrier Global Corporation Price and Consensus
Carrier Global Corporation price-consensus-chart | Carrier Global Corporation Quote
Carrier's Strong Portfolio Aids Prospects
Carrier is benefiting from an expanding clientele and strong partner base, driven by strong demand for its sustainable energy and climate solutions.
In the past six months, Carrier’s shares have risen 19.2%, outperforming the Zacks Computer and Technology Sector’s rise of 8.8%. The growth is attributed to its strong product portfolio, which is helping it to win market share in the sustainable environmental solution domain.
Carrier recently launched a full new line of high and extremely high-temperature heat pumps for use in industrial, commercial and healthcare facilities, as well as district heating.
Carrier has also launched Lynx Logix, a new software-as-a-service application within its Lynx digital platform, to assist in detecting and solving supply chain disruption by automatically analyzing trends, patterns and errors in distribution networks and transportation lines.
Recently, Carrier Transicold created a new optimal line refrigerated container unit that is 15% more fuel efficient than the previously launched units. Carrier Transicold intends to improve customer service and environmental sustainability by relocating Arras Froid Services to a new 1,300-square-meter building equipped with solar panels, rainwater collection and future electric vehicle charging stations.
Divestitures Aid Core Business Focus
Carrier is expected to benefit from portfolio strength and the divestiture of non-core assets.
Carrier recently announced the sale of both its commercial refrigeration business to Haier for an enterprise value of $775 million.
The company also announced the divestiture of its security business, Global Access Solutions, to Honeywell International.
These divestitures will help Carrier focus on growing its intelligent climate and energy solutions business. The company continues to introduce market-leading products that help its customers meet their sustainability goals while decarbonizing the planet for future generations.
Guidance Strong
The Zacks Consensus Estimate for Carrier’s revenues for the fourth quarter of 2023 is pegged at $5.25 billion, indicating 2.8% growth year over year. The consensus mark for Carrier’s earnings for the fourth quarter of 2023 is pegged at 51 cents per share, indicating growth of 27.5% year over year.
For full year 2023, Carrier expects revenues between $22.1 billion and $22.2 billion. The consensus mark for fiscal 2023 revenues is pegged at $22.25 billion, indicating 8.9% growth year over year.
For 2023, Carrier expects earnings of $2.80 per share. The consensus estimate for fiscal 2023 earnings is pegged at $2.72, indicating 16.2% growth year over year.
Zacks Rank & Stocks to Consider
Currently, Carrier carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology sector are Flex FLEX, Badger Meter BMI, and NetEase NTES, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Flex shares have gained 33.7% in the year-to-date period. Flex’s long-term earnings growth rate is currently projected at 12.9%.
Badger Meter’s shares have gained 39.9% in the year-to-date period. Badger Meter’s long-term earnings growth rate is currently projected at 20.4%.
NetEase shares have gained 41.7% in the year-to-date period. NetEase's long-term earnings growth rate is currently projected at 15.9%.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Badger Meter, Inc. (BMI) : Free Stock Analysis Report
Flex Ltd. (FLEX) : Free Stock Analysis Report
NetEase, Inc. (NTES) : Free Stock Analysis Report
Carrier Global Corporation (CARR) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Carrier Global CARR recently announced that it has received the European Commission’s approval to acquire Viessmann Climate Solutions. The growth is attributed to its strong product portfolio, which is helping it to win market share in the sustainable environmental solution domain. The company continues to introduce market-leading products that help its customers meet their sustainability goals while decarbonizing the planet for future generations.
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Carrier Global Corporation Price and Consensus Carrier Global Corporation price-consensus-chart | Carrier Global Corporation Quote Carrier's Strong Portfolio Aids Prospects Carrier is benefiting from an expanding clientele and strong partner base, driven by strong demand for its sustainable energy and climate solutions. Some better-ranked stocks in the broader technology sector are Flex FLEX, Badger Meter BMI, and NetEase NTES, each sporting a Zacks Rank #1 (Strong Buy). Click to get this free report Badger Meter, Inc. (BMI) : Free Stock Analysis Report Flex Ltd. (FLEX) : Free Stock Analysis Report NetEase, Inc. (NTES) : Free Stock Analysis Report Carrier Global Corporation (CARR) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Carrier Global Corporation Price and Consensus Carrier Global Corporation price-consensus-chart | Carrier Global Corporation Quote Carrier's Strong Portfolio Aids Prospects Carrier is benefiting from an expanding clientele and strong partner base, driven by strong demand for its sustainable energy and climate solutions. Guidance Strong The Zacks Consensus Estimate for Carrier’s revenues for the fourth quarter of 2023 is pegged at $5.25 billion, indicating 2.8% growth year over year. Click to get this free report Badger Meter, Inc. (BMI) : Free Stock Analysis Report Flex Ltd. (FLEX) : Free Stock Analysis Report NetEase, Inc. (NTES) : Free Stock Analysis Report Carrier Global Corporation (CARR) : Free Stock Analysis Report To read this article on Zacks.com click here.
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For 2023, Carrier expects earnings of $2.80 per share. Some better-ranked stocks in the broader technology sector are Flex FLEX, Badger Meter BMI, and NetEase NTES, each sporting a Zacks Rank #1 (Strong Buy). Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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fb147c87-4bcb-4b2a-90a7-5b8f319f3b71
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710916.0
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2023-12-16 00:00:00 UTC
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CVS Health (CVS) New Opportunities Drive Growth, Macro Woes Stay
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DCOMP
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https://www.nasdaq.com/articles/cvs-health-cvs-new-opportunities-drive-growth-macro-woes-stay
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nan
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nan
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CVS Health’s CVS restructuring plan, intended to streamline and simplify the organization, looks impressive. Strategic buyouts should drive growth. However, rising pressure to reduce reimbursement rates for generic drugs and a highly competitive market provide stiff challenges to CVS Health. The stock carries a Zacks Rank #3 (Hold).
CVS Health is committed to increasing investments in fast-growing spaces like enterprise data platforms, cloud capabilities and digital products to offer innovative solutions through mobile and web channels. The company is investing in emerging technology capabilities such as voice, artificial intelligence and robotics to automate, reduce cost, and improve the experience for its constituents.
The company has been removing barriers to digital adoption and making it easier for customers to access the services they seek, such as pharmacy refills and advanced scheduling for immunizations online. The company’s solid digital engagement and enhanced capabilities will strengthen its ability to drive seasonal flu and RFD immunization awareness and connect patients to CVS locations for these important health services. The company focuses on innovating and delivering experiences that matter most to customers, which is driving digital growth. Per the latest update, year to date, the company exceeded 55 million unique digital customers, up nearly 20% from last year’s levels.
Following the colossal acquisition of health insurance giant Aetna, CVS Health introduced its Health Care Benefits business arm. This segment manages drug cost trends and brings innovative clinical solutions to the market.
CVS Health Corporation Price
CVS Health Corporation price | CVS Health Corporation Quote
Medical membership continues to increase, reflecting broad-based growth, including individual exchange, Medicare and commercial membership. Within the healthcare benefits segment, revenues increased nearly 17%.
Medical membership in the third quarter of 2023 grew to 25.7 million, an increase of 1.4 million members versus the prior year, reflecting growth across multiple product lines, including individual exchange, Medicare, and commercial. The restoration of Medicare Star ratings is partly responsible for the strong results.
On the third-quarterearnings call the company stated that Aetna continues to be a leader in zero-dollar premium products and approximately 84% of Medicare eligibles will have access to Aetna plans in this category in 2024. The company is also expanding the breadth of its D-SNP footprint (which focuses on offering the coordinated medical management these members need to live a healthier life, including introducing them to care delivery options such as Oak Street Health, where appropriate) and now covers more than two-thirds of Medicare eligibles, up 6% from last year. CVS Health’s ability to offer access to convenient sites of care and the integrated benefits that seniors value most will position it to grow at or above the market in 2024.
On the flip side, a significant portion of CVS Health’s net revenues is derived directly from Medicare, Medicaid and other government-sponsored healthcare programs. The company is, therefore, subject to federal and state reimbursement laws and regulatory requirements, anti-remuneration laws, the Stark Law and/or federal and state false claims laws.
CVS Health’s retail pharmacy, specialty pharmacy and LTC pharmacy operations have been affected by reimbursement pressure caused by competition, including client demand for lower prices, generic drug pricing, earlier-than-expected generic drug introductions and network reimbursement pressure. If a company is unable to increase its prices to reflect or otherwise mitigate the impact of increasing costs, its profitability will be affected. If the company is unable to limit its price increases, it may lose customers to competitors with more favorable pricing.
In the third quarter, the reimbursement pressure within the pharmacy business continued despite some stabilization. The company is making continued efforts to combat this reimbursement pressure by increasing volume and reducing costs.
Adverse economic conditions in the United States and abroad are adversely impacting CVS Health’s businesses, operating results and financial condition. The businesses are currently affected by the U.S. economy and consumer confidence in general. Outside the United States, economic factors like inflation and changes in consumer purchasing power, preferences or spending patterns are concerns.
The company does not expect these conditions to improve in the near future. Further, an unfavorable economic environment could cause a decline in drug utilization, and dampen demand for PBM services as well as consumer demand for products sold in CVS Health’s retail stores.
The challenging macroeconomic conditions are resulting in a significant escalation in the company’s costs and expenses. During the third quarter, the company’s total cost (including Benefit Costs) rose 8.6%.
Key Picks
Some better-ranked stocks in the broader medical space are Insulet PODD, Haemonetics HAE and DexCom DXCM. While Insulet presently sports a Zacks Rank #1 (Strong Buy), Haemonetics and DexCom carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Estimates for Insulet’s 2023 earnings per share have increased from $1.61 to $1.90 in the past 30 days. Shares of the company have plunged 40.9% in the past year compared with the industry’s decline of 7%.
PODD’s earnings surpassed estimates in the trailing four quarters, the average surprise being 105.1%. In the last reported quarter, it delivered an average earnings surprise of 77.4%.
Haemonetics’ stock has risen 11.6% in the past year. Earnings estimates for Haemonetics have increased from $3.82 to $3.86 for 2023 and from $4.07 to $4.11 for 2024 in the past 30 days.
HAE’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 16.1%. In the last reported quarter, it posted an earnings surprise of 5.3%.
Estimates for DexCom’s 2023 earnings per share have increased from $1.23 to $1.41 in the past 30 days. Shares of the company have fallen 7.8% in the past year compared with the industry’s decline of 7.1%.
DXCM’s earnings surpassed estimates in the trailing four quarters, the average surprise being 36.4%. In the last reported quarter, it delivered an average earnings surprise of 47.1%.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Haemonetics Corporation (HAE) : Free Stock Analysis Report
CVS Health Corporation (CVS) : Free Stock Analysis Report
DexCom, Inc. (DXCM) : Free Stock Analysis Report
Insulet Corporation (PODD) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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CVS Health is committed to increasing investments in fast-growing spaces like enterprise data platforms, cloud capabilities and digital products to offer innovative solutions through mobile and web channels. The company’s solid digital engagement and enhanced capabilities will strengthen its ability to drive seasonal flu and RFD immunization awareness and connect patients to CVS locations for these important health services. The company is also expanding the breadth of its D-SNP footprint (which focuses on offering the coordinated medical management these members need to live a healthier life, including introducing them to care delivery options such as Oak Street Health, where appropriate) and now covers more than two-thirds of Medicare eligibles, up 6% from last year.
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CVS Health Corporation Price CVS Health Corporation price | CVS Health Corporation Quote Medical membership continues to increase, reflecting broad-based growth, including individual exchange, Medicare and commercial membership. CVS Health’s retail pharmacy, specialty pharmacy and LTC pharmacy operations have been affected by reimbursement pressure caused by competition, including client demand for lower prices, generic drug pricing, earlier-than-expected generic drug introductions and network reimbursement pressure. Click to get this free report Haemonetics Corporation (HAE) : Free Stock Analysis Report CVS Health Corporation (CVS) : Free Stock Analysis Report DexCom, Inc. (DXCM) : Free Stock Analysis Report Insulet Corporation (PODD) : Free Stock Analysis Report To read this article on Zacks.com click here.
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CVS Health Corporation Price CVS Health Corporation price | CVS Health Corporation Quote Medical membership continues to increase, reflecting broad-based growth, including individual exchange, Medicare and commercial membership. CVS Health’s retail pharmacy, specialty pharmacy and LTC pharmacy operations have been affected by reimbursement pressure caused by competition, including client demand for lower prices, generic drug pricing, earlier-than-expected generic drug introductions and network reimbursement pressure. Click to get this free report Haemonetics Corporation (HAE) : Free Stock Analysis Report CVS Health Corporation (CVS) : Free Stock Analysis Report DexCom, Inc. (DXCM) : Free Stock Analysis Report Insulet Corporation (PODD) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The company focuses on innovating and delivering experiences that matter most to customers, which is driving digital growth. Following the colossal acquisition of health insurance giant Aetna, CVS Health introduced its Health Care Benefits business arm. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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9db78165-884d-4518-8903-9d2c5f62e517
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710917.0
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2023-12-16 00:00:00 UTC
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If I Could Buy Only 1 Stock Right Now, This Would Be It
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DCOMP
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https://www.nasdaq.com/articles/if-i-could-buy-only-1-stock-right-now-this-would-be-it
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nan
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nan
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Bill.com (NYSE: BILL) didn't receive much coverage in the financial press for most of this year as the market obsessed over the much-touted "Magnificent Seven." When it did get the spotlight, it was due to a gut-wrenching share-price plunge.
For the past couple of years, the provider of cloud-based billing software and owner of the website that bears its name has been a pariah on Wall Street. This got my contrarian instincts tingling, and already there are signs that Bill.com stock could turn out to be the comeback story of the year -- not in time for 2023, but 2024's tale hasn't been written yet.
A one-two punch to the Bill.com bulls
Early November was memorable for Bill.com's shareholders, but not in a positive way. It was absolute carnage as Bill.com stock plunged from nearly $90 to $56 in a matter of days.
The catalyst, it seems, was a double shot of adverse events. First, stock traders reacted negatively when Bill.com denied reports that it planned to acquire Melio Payments. This buyout might have set Bill.com back $1.95 billion, so it's not necessarily a bad thing that the deal wasn't real, but evidently the market didn't see it that way at the time.
Then Bill.com released its results for the first quarter of fiscal 2024 ended Sept. 30. The bottom fell out of Bill.com stock, most likely because the company forecast current-quarter revenue of $293 million to $303 million; Wall Street, meanwhile, called for $318.6 million.
Since then, Bill.com stock has been on what appears to be a slow but steady path to recovery since early November. Undoubtedly, a contributing factor has been the market's optimism that the Federal Reserve will cut interest rates multiple times next year. This consensus belief has put the market in a generally good mood, and the rising tide is apparently lifting Bill.com's boat.
Job cuts and the half-full glass
In a sign that Bill.com stock's recovery might stick, the market didn't panic-sell the shares when Bill.com recently disclosed a workforce reduction of roughly 15%. This could be a signal that investors are willing to let Bill.com out of the doghouse -- and besides, a slimmed-down Bill.com has the potential to be more profitable in 2024.
Speaking of profitability, a second look at Bill.com's Q1 FY2024 results suggest that the company's bottom-line results were actually pretty decent. The company reported non-GAAP (adjusted) net income of $0.54 per diluted share, a huge improvement over the $0.14 per share in the year-earlier quarter and above the $0.50 per share that analysts had expected. With that result, Bill.com maintained its 2023 track record of consistent non-GAAP profitability and quarterly earnings beats.
Turning to the top line, Bill.com raked in quarterly revenue of $305 million, up 33% year over year and above Wall Street's estimate of $298.8 million. In other words, perhaps it's time for critical investors to revisit Bill.com's quarterly report with a glass-half-full perspective, or at least not a glass-completely-empty one.
Sure, Bill.com's current-quarter outlook disappointed the company's shareholders, but the steep stock-price plunge suggests that the market has already expressed its consternation. Now shock and horror can give way to forgiveness, especially since Bill.com's apparent fiscal sins weren't unforgivable in the first place.
Bill.com's shareholders may have been overbilled and be due a hefty refund in 2024. If the company's current-quarter financials aren't terrible and central-bank policy is as accommodative as the market thinks it will be, Bill.com stock's bull run could be nothing short of spectacular.
Should you invest $1,000 in Bill Holdings right now?
Before you buy stock in Bill Holdings, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Bill Holdings wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
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See the 10 stocks
*Stock Advisor returns as of December 11, 2023
David Moadel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bill Holdings. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For the past couple of years, the provider of cloud-based billing software and owner of the website that bears its name has been a pariah on Wall Street. Job cuts and the half-full glass In a sign that Bill.com stock's recovery might stick, the market didn't panic-sell the shares when Bill.com recently disclosed a workforce reduction of roughly 15%. If the company's current-quarter financials aren't terrible and central-bank policy is as accommodative as the market thinks it will be, Bill.com stock's bull run could be nothing short of spectacular.
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The bottom fell out of Bill.com stock, most likely because the company forecast current-quarter revenue of $293 million to $303 million; Wall Street, meanwhile, called for $318.6 million. Turning to the top line, Bill.com raked in quarterly revenue of $305 million, up 33% year over year and above Wall Street's estimate of $298.8 million. Before you buy stock in Bill Holdings, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Bill Holdings wasn't one of them.
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If the company's current-quarter financials aren't terrible and central-bank policy is as accommodative as the market thinks it will be, Bill.com stock's bull run could be nothing short of spectacular. Before you buy stock in Bill Holdings, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Bill Holdings wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 11, 2023 David Moadel has no position in any of the stocks mentioned.
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Then Bill.com released its results for the first quarter of fiscal 2024 ended Sept. 30. Turning to the top line, Bill.com raked in quarterly revenue of $305 million, up 33% year over year and above Wall Street's estimate of $298.8 million. Before you buy stock in Bill Holdings, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Bill Holdings wasn't one of them.
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8bc0d557-33bc-4253-a602-e86746488883
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710918.0
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2023-12-16 00:00:00 UTC
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Motorola (MSI) Boosts Security Portfolio With IPVideo Buyout
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DCOMP
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https://www.nasdaq.com/articles/motorola-msi-boosts-security-portfolio-with-ipvideo-buyout
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nan
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nan
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Motorola Solutions Inc. MSI recently inked an agreement to acquire IPVideo for an undisclosed amount to augment its security offering portfolio. The acquisition has strengthened Motorola’s position in the market as one of the leading providers of security solutions for safer schools, hospitals, hotels and businesses.
Based in Bay Shore, NY, IPVideo has created a niche with its innovative HALO Smart Sensor, a multifunctional safety and security device with built-in vape detection and air quality monitoring, gunshot detection, abnormal noise and motion detection and emergency keyword detection. It helps to improve situational awareness and extend the perimeter of security while protecting privacy in areas where cameras and video security solutions are not suitable for use, such as restrooms, classrooms, hospital rooms and hotel rooms.
The buyout extends Motorola’s end-to-end physical security offering by integrating a non-video threat detection product into its safety and security ecosystem. The introduction of additional detection solutions is likely to help its customers better protect people, property and places from external threats and mitigate security risks.
As a leading provider of mission-critical communication products and services worldwide, Motorola has ensured a steady revenue stream from this niche market. The communications equipment maker intends to boost its position in the public safety domain by entering into strategic alliances with other players in the ecosystem.
Motorola expects to record strong demand across video security and services, land mobile radio products and related software while benefiting from a solid foundation. These systems drive the demand for additional device sales and promote software upgrades and infrastructure expansion. The comprehensive suite of services ensures continuity and reduces risks related to critical communications operations.
It remains poised to benefit from organic growth and acquisition initiatives, disciplined capital deployment and a favorable global macroeconomic environment. Its competitive position and an attractive portfolio for a large addressable market augur well for long-term growth.
The stock has gained 23.1% over the past year compared with the industry’s rise of 10.2%.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Motorola currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Arista Networks, Inc. ANET, carrying a Zacks Rank #2 (Buy), is likely to benefit from strong momentum and diversification across its top verticals and product lines. The company has a software-driven, data-centric approach to help customers build their cloud architecture and enhance their cloud experience. Arista has a long-term earnings growth expectation of 20.4% and delivered an earnings surprise of 12%, on average, in the trailing four quarters.
It holds a leadership position in 100-gigabit Ethernet switching share in port for the high-speed datacenter segment. Arista is increasingly gaining market traction in 200- and 400-gig high-performance switching products and remains well-positioned for healthy growth in data-driven cloud networking business with proactive platforms and predictive operations.
United States Cellular Corporation USM, sporting a Zacks Rank #1, is the fourth largest full-service wireless carrier in the United States. The company provides a range of wireless products and services, and a high-quality network to increase the competitiveness of local businesses and improve efficiency of government operations.
U.S. Cellular has taken concrete steps to accelerate subscriber additions and improve churn management. The company aims to offer the best wireless experience to customers by providing superior quality network and national coverage. It is well-positioned to support the investment required for network enhancements, including the deployment of 5G technology. The company is well-positioned for continued demand for broadband.
Aviat Networks, Inc. AVNW, presently carrying a Zacks Rank #2, is a solid pick. Headquartered in Austin, TX, Aviat has been a global provider of microwave networking solutions. It offers public and private operators communications networks to cater to the accretive demand for IP-centric, multi-gigabit data services.
Backed by avant-garde technology, Aviat simplifies the entire lifecycle of designing, deploying and maintaining wireless transport networks with greater performance and reliability. The company is well-positioned to benefit from robust market dynamics, cost-reduction efforts, favorable customer mix and higher investments in innovative software solutions. A solid liquidity position and healthy balance sheet are likely to aid the company in executing key long-term strategic objectives.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
United States Cellular Corporation (USM) : Free Stock Analysis Report
Motorola Solutions, Inc. (MSI) : Free Stock Analysis Report
Aviat Networks, Inc. (AVNW) : Free Stock Analysis Report
Arista Networks, Inc. (ANET) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Motorola expects to record strong demand across video security and services, land mobile radio products and related software while benefiting from a solid foundation. Arista is increasingly gaining market traction in 200- and 400-gig high-performance switching products and remains well-positioned for healthy growth in data-driven cloud networking business with proactive platforms and predictive operations. The company is well-positioned to benefit from robust market dynamics, cost-reduction efforts, favorable customer mix and higher investments in innovative software solutions.
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Motorola expects to record strong demand across video security and services, land mobile radio products and related software while benefiting from a solid foundation. Image Source: Zacks Investment Research Zacks Rank & Key Picks Motorola currently carries a Zacks Rank #3 (Hold). Click to get this free report United States Cellular Corporation (USM) : Free Stock Analysis Report Motorola Solutions, Inc. (MSI) : Free Stock Analysis Report Aviat Networks, Inc. (AVNW) : Free Stock Analysis Report Arista Networks, Inc. (ANET) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Image Source: Zacks Investment Research Zacks Rank & Key Picks Motorola currently carries a Zacks Rank #3 (Hold). Arista is increasingly gaining market traction in 200- and 400-gig high-performance switching products and remains well-positioned for healthy growth in data-driven cloud networking business with proactive platforms and predictive operations. Click to get this free report United States Cellular Corporation (USM) : Free Stock Analysis Report Motorola Solutions, Inc. (MSI) : Free Stock Analysis Report Aviat Networks, Inc. (AVNW) : Free Stock Analysis Report Arista Networks, Inc. (ANET) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The buyout extends Motorola’s end-to-end physical security offering by integrating a non-video threat detection product into its safety and security ecosystem. Image Source: Zacks Investment Research Zacks Rank & Key Picks Motorola currently carries a Zacks Rank #3 (Hold). Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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8419c8eb-26dc-4082-88a6-698de44078e7
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710919.0
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2023-12-16 00:00:00 UTC
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SenesTech (SNES) Likely to Expand Into China With New Deal
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DCOMP
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https://www.nasdaq.com/articles/senestech-snes-likely-to-expand-into-china-with-new-deal
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nan
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nan
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SenesTech SNES has inked a distribution agreement with Fruit Tree Limited. This strategic partnership with Fruit Tree, a pest control service provider headquartered in Hong Kong, marks a crucial step for SenesTech in penetrating the lucrative markets of Hong Kong, Macau and potentially Mainland China.
However, the financial terms of the deal have been kept under wraps.
More on the News
Per SenesTech, Fruit Tree is an ideal partner due to its position as a leading player in the pest control industry with a strong focus on quality, innovation and sustainability. Fruit Tree's extensive reach, both directly and through its subsidiaries, aligns well with SenesTech's mission to advance in pest management through fertility control. These make Fruit Tree the perfect distributor for SenesTech's innovative product, Evolve, in this niche market.
The Distribution Agreement encompasses a substantial initial stocking order and annual minimums. For SenesTech, this partnership opens doors to Hong Kong and Macau and holds the potential for expansion into the vast pest control market of Mainland China.
Environmental Focus and Regulatory Approval
Management at Fruit Tree emphasized its commitment to safety and sustainability in pest management. Fruit Tree has already engaged with regulatory officials to secure approval for testing Evolve in government venues, particularly those facing significant infestations like the wet markets of Mainland China.
According to SenesTech, this partnership will provide it with a gateway into one of the largest pest control markets globally, with the support and expertise of Fruit Tree. It is expected to position SenesTech for substantial growth in the region, which is witnessing growing demand for innovative and environmentally conscious solutions in the field of pest control.
Image Source: Zacks Investment Research
Market Prospects
Going by a Custom Market Insights report, the global pest control market, worth $22.5 billion in 2022, is expected to reach $33.55 billion in 2032, at a CAGR of 6.5%. Major growth drivers include growing awareness about the health risks associated with pests, such as rodents and insects.
Pest control is widely adopted in the agriculture sector to safeguard crop yield and improve crop quality through the use of pesticides, chemical fertilizers, and other methods. Technological advancements have significantly boosted agricultural productivity worldwide over the last four decades. Further, rapid urbanization and population growth are resulting in denser living conditions, providing more conducive environments for pests to thrive.
Share Price Performance
Over the past year, shares of SNES have plunged 97.9% compared with the industry’s 1.3% drop.
Zacks Rank and Key Picks
SenesTech currently carries a Zacks Rack #3 (Hold).
Some better-ranked stocks in the broader medical space are Insulet PODD, Haemonetics HAE and DexCom DXCM. While Insulet presently sports a Zacks Rank #1 (Strong Buy), Haemonetics and DexCom carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Estimates for Insulet’s 2023 earnings per share have increased from $1.61 to $1.90 in the past 30 days. Shares of the company have plunged 40.9% in the past year compared with the industry’s decline of 7%.
PODD’s earnings surpassed estimates in the trailing four quarters, the average surprise being 105.1%. In the last reported quarter, it delivered an average earnings surprise of 77.4%.
Haemonetics’ stock has risen 11.6% in the past year. Earnings estimates for Haemonetics have increased from $3.82 to $3.86 for 2023 and from $4.07 to $4.11 for 2024 in the past 30 days.
HAE’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 16.1%. In the last reported quarter, it posted an earnings surprise of 5.3%.
Estimates for DexCom’s 2023 earnings per share have increased from $1.23 to $1.41 in the past 30 days. Shares of the company have fallen 7.8% in the past year compared with the industry’s decline of 7.1%.
DXCM’s earnings surpassed estimates in the trailing four quarters, the average surprise being 36.4%. In the last reported quarter, it delivered an average earnings surprise of 47.1%.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Haemonetics Corporation (HAE) : Free Stock Analysis Report
DexCom, Inc. (DXCM) : Free Stock Analysis Report
Insulet Corporation (PODD) : Free Stock Analysis Report
Senestech, Inc. (SNES) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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More on the News Per SenesTech, Fruit Tree is an ideal partner due to its position as a leading player in the pest control industry with a strong focus on quality, innovation and sustainability. For SenesTech, this partnership opens doors to Hong Kong and Macau and holds the potential for expansion into the vast pest control market of Mainland China. Fruit Tree has already engaged with regulatory officials to secure approval for testing Evolve in government venues, particularly those facing significant infestations like the wet markets of Mainland China.
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Image Source: Zacks Investment Research Market Prospects Going by a Custom Market Insights report, the global pest control market, worth $22.5 billion in 2022, is expected to reach $33.55 billion in 2032, at a CAGR of 6.5%. While Insulet presently sports a Zacks Rank #1 (Strong Buy), Haemonetics and DexCom carry a Zacks Rank #2 (Buy) each. Click to get this free report Haemonetics Corporation (HAE) : Free Stock Analysis Report DexCom, Inc. (DXCM) : Free Stock Analysis Report Insulet Corporation (PODD) : Free Stock Analysis Report Senestech, Inc. (SNES) : Free Stock Analysis Report To read this article on Zacks.com click here.
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This strategic partnership with Fruit Tree, a pest control service provider headquartered in Hong Kong, marks a crucial step for SenesTech in penetrating the lucrative markets of Hong Kong, Macau and potentially Mainland China. Image Source: Zacks Investment Research Market Prospects Going by a Custom Market Insights report, the global pest control market, worth $22.5 billion in 2022, is expected to reach $33.55 billion in 2032, at a CAGR of 6.5%. Click to get this free report Haemonetics Corporation (HAE) : Free Stock Analysis Report DexCom, Inc. (DXCM) : Free Stock Analysis Report Insulet Corporation (PODD) : Free Stock Analysis Report Senestech, Inc. (SNES) : Free Stock Analysis Report To read this article on Zacks.com click here.
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According to SenesTech, this partnership will provide it with a gateway into one of the largest pest control markets globally, with the support and expertise of Fruit Tree. Estimates for Insulet’s 2023 earnings per share have increased from $1.61 to $1.90 in the past 30 days. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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3559c96f-1a94-47bb-b8b7-5511b761dac6
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710920.0
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2023-12-16 00:00:00 UTC
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ExxonMobil (XOM) Plans to Pilot CCS With CFC Technology
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https://www.nasdaq.com/articles/exxonmobil-xom-plans-to-pilot-ccs-with-cfc-technology
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Exxon Mobil Corporation XOM is planning to construct a pilot facility to test a carbon capture and storage (CCS) technology developed by FuelCell Energy Inc.
The companies claim that the technology has the potential to substantially decrease CO2 emissions from crucial industries.
FuelCell’s technology can not only reduce CO2 emissions but also help in generating heat and electricity. The plant represents the first implementation of carbonate fuel cell (“CFC”) technology for carbon capture within an industrial environment.
ExxonMobil intends to construct the pilot plant at its Rotterdam Manufacturing Complex, an integrated refining and petrochemical site. The purpose of the facility is to gather data on the performance and operability of CFC technology.
The pilot project also seeks to gain deeper insight into the expenses associated with the installation and operation of a CFC plant for carbon capture. It aims to address potential technical challenges that may arise in a commercial environment.
Oil and gas firms actively engage in carbon capture and storage projects, providing a swift and efficient pathway to reduce CO2 emissions beyond alternatives like electrification and renewable fuels. This presents a valuable opportunity for reducing industrial emissions.
There is a growing recognition of the effectiveness of carbon-capture systems that store emissions underground in mitigating climate change. However, cost barriers persist. ExxonMobil plans to leverage the power generated by the FuelCell system to lower operational expenses.
CFC technology has the potential to provide cost-effective decarbonization solutions for customers across diverse industries after it is prepared for widespread deployment. Per FuelCell Energy, the technology can be applied to individual projects, with each having the capacity to capture 100,000 tons of CO2 annually.
As a prominent figure in the oil and gas sector, ExxonMobil’s engagement in CCS technology signals a strategic move toward sustainable practices. Through its investment in CCS, ExxonMobil recognizes the significance of curtailing greenhouse gas emissions and acknowledges the potential impact of this technology on its business operations.
Zacks Rank & Stocks to Consider
ExxonMobil currently carries a Zack Rank #3 (Hold).
Investors interested in the energy sector might look at the following companies that presently sport a Zacks Rank #1 (Strong Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Murphy USA’s MUSA unique high-volume, low-cost business model helps it retain high profitability, even in the fiercely competitive retail environment.
MUSA remains committed to returning excess cash to its shareholders through continued share buyback programs. As part of this initiative, the fuel retailer recently approved a repurchase authorization of up to $1.5 billion following the completion of the existing $1-billion mandate. The move underscores MUSA’s sound financial position and commitment to rewarding its shareholders.
The Williams Companies WMB is a premier energy infrastructure provider in North America. WMB has a thriving deepwater transportation business. The company's deepwater portfolio includes a 3,500-mile natural gas and oil gathering and transmission pipeline and is important for future cash flows.
Williams Companies’ debt maturity profile is in good shape, with its $4.5-billion revolver maturing in 2023. It is also paying its shareholders an attractive dividend yielding around 5%. Besides this, the company has a share repurchase program worth $1.5 billion, thus highlighting its commitment to shareholders.
Ecopetrol S.A. EC operates across various segments of the oil and gas industry, including exploration, development and production of oil and gas, refining, transportation and sale of petroleum products.
Ecopetrol has witnessed upward earnings estimate revisions for 2023 and 2024 in the past 30 days. The Zacks Consensus Estimate for earnings for EC’s 2023 and 2024 earnings is pegged at $2.32 per share and $2.41 per share, respectively.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Williams Companies, Inc. (The) (WMB) : Free Stock Analysis Report
Exxon Mobil Corporation (XOM) : Free Stock Analysis Report
Ecopetrol S.A. (EC) : Free Stock Analysis Report
Murphy USA Inc. (MUSA) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Exxon Mobil Corporation XOM is planning to construct a pilot facility to test a carbon capture and storage (CCS) technology developed by FuelCell Energy Inc. Oil and gas firms actively engage in carbon capture and storage projects, providing a swift and efficient pathway to reduce CO2 emissions beyond alternatives like electrification and renewable fuels. Murphy USA’s MUSA unique high-volume, low-cost business model helps it retain high profitability, even in the fiercely competitive retail environment.
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Exxon Mobil Corporation XOM is planning to construct a pilot facility to test a carbon capture and storage (CCS) technology developed by FuelCell Energy Inc. Ecopetrol S.A. EC operates across various segments of the oil and gas industry, including exploration, development and production of oil and gas, refining, transportation and sale of petroleum products. Click to get this free report Williams Companies, Inc. (The) (WMB) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Ecopetrol S.A. (EC) : Free Stock Analysis Report Murphy USA Inc. (MUSA) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Through its investment in CCS, ExxonMobil recognizes the significance of curtailing greenhouse gas emissions and acknowledges the potential impact of this technology on its business operations. Ecopetrol S.A. EC operates across various segments of the oil and gas industry, including exploration, development and production of oil and gas, refining, transportation and sale of petroleum products. Click to get this free report Williams Companies, Inc. (The) (WMB) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Ecopetrol S.A. (EC) : Free Stock Analysis Report Murphy USA Inc. (MUSA) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Exxon Mobil Corporation XOM is planning to construct a pilot facility to test a carbon capture and storage (CCS) technology developed by FuelCell Energy Inc. The pilot project also seeks to gain deeper insight into the expenses associated with the installation and operation of a CFC plant for carbon capture. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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b0ba00bf-3f75-47a1-be77-645484feb0e2
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710921.0
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2023-12-16 00:00:00 UTC
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W.P. Carey: Buy, Sell, or Hold?
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https://www.nasdaq.com/articles/w.p.-carey%3A-buy-sell-or-hold
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It's been a tough couple of years for companies owning and operating commercial real estate properties. Rising interest rates have led to growing refinancing costs for those in the industry, with specific property types under intense pressure.
One commercial real estate investment trust (REIT) navigating these challenging times is W.P. Carey (NYSE: WPC). W.P. Carey is one of the largest REITs in the U.S. and is known for its long history of growing its dividend payout. However, that 26-year streak recently ended as the company strategically decided to shore up its balance sheet and look toward a better future.
While investors don't like to see a dividend payment cut, in W.P. Carey's case, the move could be the best for its long-term growth prospects. Here's what you need to know.
W.P. Carey has a wide range of properties and is exiting this higher-risk property type
W.P. Carey owns properties across the United States and Europe with a simple objective: To lease properties on long-term contracts with built-in rent escalators to produce steady cash flows. As of the third quarter, its portfolio had 1,472 properties across 26 countries with a 98.9% occupancy rate.
The company's portfolio is well-diversified, with no property type making up more than one-third of it. Industrial properties make up 30% of its holdings, while warehouses (24%), retail (17%), and office (15%) round out its top holdings.
Although W.P. Carey is quite diversified, earlier this year, management decided to eliminate its office properties entirely. The move is likely intelligent, given the challenges office property owners face.
Office properties have come under increasing pressure due to work-from-home or hybrid work arrangements that first emerged during the pandemic shutdowns. Not only that, but companies have been cutting jobs through significant layoffs, reducing the amount of office space companies need. According to the National Association of Realtors, office vacancy rates are a record-high 13.3%. Banks are growing hesitant to lend to the sector because of the increased risk to these property types.
Image source: Getty Images.
W.P. Carey's recent plan accelerates its exit from office properties
The process of W.P. Carey reducing its office property exposure has been ongoing over the past several years. Eight years ago, office properties accounted for 30% of its annualized base rent (ABR). Most recently, these properties account for just 15% of ABR. The company was taking a patient approach to eliminating its office holdings, but the recent uncertainty in the space had CEO Jason Fox pushing a plan that "vastly accelerates" W.P. Carey's exit from office.
On Nov. 1, the company completed a spinoff of 59 of its higher-quality holdings into a company called Net Lease Office Properties. W.P. Carey shareholders earned one share of Net Lease Office Properties for every 15 shares of W.P. Carey stock held, with cash paid in place of any fractional shares. The company will sell the remainder of its 87 office assets, which it hopes to complete by January 2024.
Why W.P. Carey's exit from office could set it up for long-term success
This strategic move to exit office properties was painful in the short term but could prove to be an intelligent decision over the long haul. By eliminating its office assets, W.P. Carey could improve the quality of its portfolio by eliminating high-risk properties and reinvesting those proceeds into higher-quality properties, such as industrial or warehouse assets.
The move should help W.P. Carey enhance the quality and stability of its earnings while also improving the credit quality of its portfolio. Industrial properties include warehouses, distribution centers, factories, and manufacturing facilities. These properties are well-positioned because of the ongoing consumer demand for e-commerce, which increases demand for warehouses and distribution centers.
According to a report by Mordor Intelligence, the global e-commerce market is projected to grow at around 15.8% annually through 2028, and more industrial properties will be needed to accommodate this growth.
Here's how W.P. Carey's dividend payout changed
As part of W.P. Carey's exit from office properties, the company also announced that it would reset its dividend policy to a more sustainable long-term level. According to CFO Toni Sanzone, the reset will allow it to retain more cash flow to put into other income-producing properties, which should support further dividend growth following the reset. The company will target a pro forma adjusted funds from operations (AFFO) payout ratio of 70% to 75%. This year, its payout ratio hovered around 80%.
The company recently announced a quarterly dividend payment of $0.86 per share, representing a 20% decrease from its previous payment of $1.071 per share. The move also ends the company's 26-year streak of growing dividend payments.
WPC Dividend data by YCharts
Is W.P. Carey a buy?
W.P. Carey is shoring up its balance sheet, focusing on quality, and looking to grow its portfolio. Aside from selling office properties, the company expects U-Haul to buy back self-storage properties it currently leases, which could generate another $470 million in proceeds.
Additionally, it stands to benefit from the potential IPO of Lineage Logistics. W.P. Carey holds a sizable investment in Lineage Logistics, valued at around $400 million. If Lineage Logistics has a successful IPO, W.P. Carey could cash in on its stake and have even more capital to reinvest in income-producing properties.
W.P. Carey made the difficult but necessary move of exiting its office assets and resetting its dividend payment to a more sustainable level. However, the company is well-positioned and should have plenty of capital to put to work on higher-quality properties, which is why I think the REIT is a solid dividend stock for investors to buy and hold.
Should you invest $1,000 in W.P. Carey right now?
Before you buy stock in W.P. Carey, 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 W.P. Carey 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 11, 2023
Courtney Carlsen has no position in any of the stocks mentioned. The Motley Fool recommends W.P. Carey. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The company was taking a patient approach to eliminating its office holdings, but the recent uncertainty in the space had CEO Jason Fox pushing a plan that "vastly accelerates" W.P. According to a report by Mordor Intelligence, the global e-commerce market is projected to grow at around 15.8% annually through 2028, and more industrial properties will be needed to accommodate this growth. However, the company is well-positioned and should have plenty of capital to put to work on higher-quality properties, which is why I think the REIT is a solid dividend stock for investors to buy and hold.
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It's been a tough couple of years for companies owning and operating commercial real estate properties. Carey could improve the quality of its portfolio by eliminating high-risk properties and reinvesting those proceeds into higher-quality properties, such as industrial or warehouse assets. Carey's exit from office properties, the company also announced that it would reset its dividend policy to a more sustainable long-term level.
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Carey's exit from office could set it up for long-term success This strategic move to exit office properties was painful in the short term but could prove to be an intelligent decision over the long haul. Carey could improve the quality of its portfolio by eliminating high-risk properties and reinvesting those proceeds into higher-quality properties, such as industrial or warehouse assets. Carey's exit from office properties, the company also announced that it would reset its dividend policy to a more sustainable long-term level.
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Carey made the difficult but necessary move of exiting its office assets and resetting its dividend payment to a more sustainable level. Carey right now? Carey.
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710922.0
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2023-12-16 00:00:00 UTC
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Up More Than 150% for the Year, These 3 Cryptos Have the Potential to Outperform Bitcoin in 2024
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https://www.nasdaq.com/articles/up-more-than-150-for-the-year-these-3-cryptos-have-the-potential-to-outperform-bitcoin-in
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Without a doubt, Bitcoin (CRYPTO: BTC) has been the standout crypto performer of 2023. Up more than 150% for the year, Bitcoin has completely reenergized the crypto market. With Bitcoin currently trading around $42,000, some investors are even speculating that Bitcoin could soar past the $100,000 mark next year.
But with all the excitement around Bitcoin, investors might be overlooking cryptocurrencies with the potential to outperform Bitcoin next year. Three potential standouts include Solana (CRYPTO: SOL), Avalanche (CRYPTO: AVAX), and Chainlink (CRYPTO: LINK). Let's take a closer look at why you might want to put these cryptos on your investment radar right now.
Solana and Avalanche
Both Solana and Avalanche are direct competitors to Ethereum (CRYPTO: ETH), the second-most valuable cryptocurrency. In crypto terminology, all three are Layer-1 blockchain networks. This simply means that they are the core base layer on which everything else is built in the blockchain world. That includes non-fungible tokens (NFTs), blockchain gaming, and Web3 apps.
If you compare the market caps of Solana and Avalanche to that of Ethereum, there's still a huge chasm. Ethereum is 8 times the size of Solana and 18 times the size of Avalanche. From my perspective, this gap should be much smaller.
And many other investors seem to agree. Avalanche is up a sizzling 270% this year and Solana is up a blistering 630%. With that kind of performance, they are starting to gain the attention of some high-profile institutional investors. For example, Cathie Wood of Ark Invest recently appeared on CNBC, making the case that Solana is a faster and more cost-effective version of Ethereum. The implication, of course, was that Solana might one day overtake Ethereum.
Image source: Getty Images.
The big question is whether the first-mover advantage of Ethereum is simply too insurmountable. Ethereum has seemingly been first to market with nearly every major blockchain innovation of the past five years, and that means Ethereum has a dominant position in just about every niche of the blockchain world. So keep your growth expectations for Solana and Avalanche in check.
Chainlink
Chainlink is the premier decentralized blockchain oracle in the world right now, and it's not even close. While Chainlink currently has a market cap of $8 billion, its nearest competitors have market caps measured in the hundreds of millions. For the year, Chainlink is up about 160%, and is now the 13th-most valuable cryptocurrency in the world.
As a blockchain oracle, Chainlink provides data to smart contracts, which are small pieces of self-executable computer code. These smart contracts form the basis of decentralized finance (DeFi), which is why the data provided by Chainlink is so valuable. When smart contracts can't find the data they need on the blockchain, they turn to Chainlink for "off-chain" data.
If you buy into the concept that data is the oil of the digital economy, then you can see why Chainlink is so valuable. What has me especially excited about Chainlink is the potential for an integration of artificial intelligence (AI) and blockchain technology. In May, Chainlink outlined some of the potential use cases. And then, at this year's Chainlink conference in October, former Google Chief Executive Officer Eric Schmidt (a strategic advisor to Chainlink) hosted a fireside chat with Chainlink founder Sergey Nazarov discussing the intersection of blockchain and AI.
The big caveat here, of course, is that Chainlink is not an AI company and it's unclear when (or if) there will ever be a formal integration of Chainlink with ChatGPT. So, as an investor, just be aware that you're not getting direct exposure to the AI market by investing in Chainlink.
Just how risky are these cryptos?
While all three of these cryptos have the potential to outperform Bitcoin next year, Bitcoin should probably continue to represent at least one-half of your total crypto portfolio. Given that Bitcoin currently represents one-half of the current value of the $1.6 trillion crypto market, this seems like a reasonable rule of thumb.
Moreover, keep in mind that the crypto market is still a volatile place to invest your money. All three of these cryptos are riskier than Bitcoin, and that means you should handle them with extreme care. That said, if you're willing to take on the extra risk, all three of these cryptos could outpace Bitcoin next year.
Should you invest $1,000 in Solana right now?
Before you buy stock in Solana, 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 Solana 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
Dominic Basulto has positions in Bitcoin and Ethereum. The Motley Fool has positions in and recommends Avalanche, Bitcoin, Chainlink, Ethereum, and Solana. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For example, Cathie Wood of Ark Invest recently appeared on CNBC, making the case that Solana is a faster and more cost-effective version of Ethereum. As a blockchain oracle, Chainlink provides data to smart contracts, which are small pieces of self-executable computer code. These smart contracts form the basis of decentralized finance (DeFi), which is why the data provided by Chainlink is so valuable.
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Three potential standouts include Solana (CRYPTO: SOL), Avalanche (CRYPTO: AVAX), and Chainlink (CRYPTO: LINK). Solana and Avalanche Both Solana and Avalanche are direct competitors to Ethereum (CRYPTO: ETH), the second-most valuable cryptocurrency. Before you buy stock in Solana, 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 Solana wasn’t one of them.
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Three potential standouts include Solana (CRYPTO: SOL), Avalanche (CRYPTO: AVAX), and Chainlink (CRYPTO: LINK). Solana and Avalanche Both Solana and Avalanche are direct competitors to Ethereum (CRYPTO: ETH), the second-most valuable cryptocurrency. Before you buy stock in Solana, 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 Solana wasn’t one of them.
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Up more than 150% for the year, Bitcoin has completely reenergized the crypto market. Should you invest $1,000 in Solana right now? The Motley Fool has positions in and recommends Avalanche, Bitcoin, Chainlink, Ethereum, and Solana.
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710923.0
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2023-12-16 00:00:00 UTC
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O'Reilly (ORLY) to Enter Canada With Groupe Del Vasto Buyout
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https://www.nasdaq.com/articles/oreilly-orly-to-enter-canada-with-groupe-del-vasto-buyout
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O'Reilly Automotive, Inc. ORLY, a leading player in the automotive aftermarket industry, is set to foray into the Canadian market with the buyout of Groupe Del Vasto, a prominent family-owned auto parts supplier based in Montreal, Quebec. This acquisition, expected to close in January 2024, subject to regulatory approvals, will further solidify ORLY’s North American presence.
Groupe Del Vasto, operating under the name Vast-Auto Distribution, brings more than 35 years of market experience in the Canadian automotive aftermarket to the table. The acquisition includes all outstanding shares of Groupe Del Vasto and its affiliated entities. Vast-Auto's network comprises two distribution centers, six satellite warehouses, 23 company-owned stores, and numerous independent partners, significantly expanding O'Reilly's service reach.
O'Reilly's decision to acquire Groupe Del Vasto is not just a geographical expansion but a strategic alignment with market trends and customer demands. The company's consistent performance, marked by 30 years of record revenues, showcases its robust business model. O'Reilly's dual-market strategy, serving both DIY and DIFM customers, and its strong distribution network give it a competitive edge in the ever-evolving automotive aftermarket.
The acquisition of Vast-Auto complements O'Reilly's growth trajectory. The integration of Vast-Auto's established Canadian network with O'Reilly's expansive product portfolio and market strategies is expected to bolster the company's sales and earnings.
O'Reilly's expansion strategy doesn't stop at geographical growth. The company has been increasing its store count, even in less populated areas, with a target of opening 180-190 new stores in 2023. Its robust e-commerce initiatives, including curbside pickup for online orders, further enhance its market position.
The company's strong cash flow generation, surpassing industry averages, supports an aggressive share buyback program, reinforcing investor confidence. In the third quarter of 2023 alone, O'Reilly repurchased 0.9 million shares for $800 million, with a substantial amount remaining under its current repurchase authorization.
O'Reilly forecasts total revenues between $15.7-$15.8 billion in 2023, a notable increase from 2022's $14.41 billion. The anticipated EPS range of $37.80 to $38.30, up from the previous estimate, reflects the company's strong financial health and growth potential.
The automotive industry's increasing complexity, with a shift toward technologically advanced auto parts, plays into O'Reilly's strengths. Its wide-ranging product offerings are well-suited to meet evolving market demand, ensuring sustained relevance and growth.
ORLY currently carries a Zacks Rank #3 (Hold).
A few better-ranked players in the auto space include Toyota TM and Stellantis STLA, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for TM’s fiscal 2024 sales and EPS implies year-over-year growth of 11% and 45.4%, respectively. The earnings estimate for fiscal 2024 and 2025 has been revised upward by $2.55 and 50 cents, respectively, in the past 60 days.
The Zacks Consensus Estimate for STLA’s 2023 sales and EPS implies year-over-year growth of 12.3% and 10.5%, respectively. The earnings estimate for 2023 and 2024 has been revised upward by 29 cents and 42 cents, respectively, in the past 60 days.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Toyota Motor Corporation (TM) : Free Stock Analysis Report
O'Reilly Automotive, Inc. (ORLY) : Free Stock Analysis Report
Stellantis N.V. (STLA) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Vast-Auto's network comprises two distribution centers, six satellite warehouses, 23 company-owned stores, and numerous independent partners, significantly expanding O'Reilly's service reach. O'Reilly's dual-market strategy, serving both DIY and DIFM customers, and its strong distribution network give it a competitive edge in the ever-evolving automotive aftermarket. The integration of Vast-Auto's established Canadian network with O'Reilly's expansive product portfolio and market strategies is expected to bolster the company's sales and earnings.
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The integration of Vast-Auto's established Canadian network with O'Reilly's expansive product portfolio and market strategies is expected to bolster the company's sales and earnings. The Zacks Consensus Estimate for TM’s fiscal 2024 sales and EPS implies year-over-year growth of 11% and 45.4%, respectively. Click to get this free report Toyota Motor Corporation (TM) : Free Stock Analysis Report O'Reilly Automotive, Inc. (ORLY) : Free Stock Analysis Report Stellantis N.V. (STLA) : Free Stock Analysis Report To read this article on Zacks.com click here.
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O'Reilly Automotive, Inc. ORLY, a leading player in the automotive aftermarket industry, is set to foray into the Canadian market with the buyout of Groupe Del Vasto, a prominent family-owned auto parts supplier based in Montreal, Quebec. The integration of Vast-Auto's established Canadian network with O'Reilly's expansive product portfolio and market strategies is expected to bolster the company's sales and earnings. Click to get this free report Toyota Motor Corporation (TM) : Free Stock Analysis Report O'Reilly Automotive, Inc. (ORLY) : Free Stock Analysis Report Stellantis N.V. (STLA) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The integration of Vast-Auto's established Canadian network with O'Reilly's expansive product portfolio and market strategies is expected to bolster the company's sales and earnings. A few better-ranked players in the auto space include Toyota TM and Stellantis STLA, each sporting a Zacks Rank #1 (Strong Buy). Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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efdfa18f-c7cb-42ac-8afa-bc6a38519f8a
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710924.0
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2023-12-16 00:00:00 UTC
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Is JPMorgan (JPM) Stock Likely to Have Impressive 2024 Too?
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https://www.nasdaq.com/articles/is-jpmorgan-jpm-stock-likely-to-have-impressive-2024-too
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JPMorgan’s JPM shares have rallied 24% this year, significantly outperforming the industry’s rise of 10.2% and the Zacks Finance sector growth of 14.1%. This also marks a turnaround from dismal 2022 performance, wherein the stock lost 15.3%.
So, what led to the reversal?
This year started on a positive note on the back of the Federal Reserve’s monetary tightening to control ‘sticky’ inflation. Nonetheless, the early March regional banking crisis that led to the fall of three large banks because of deposit flight to higher-yielding investment options was a wake-up call for banks and regulators alike.
The ultra-aggressive pace of rate hikes turned counterproductive for banks that generally perform well in the higher interest rate regime. Though big banks weathered this turmoil better than their smaller regional peers, they, too, faced pressure from rising deposit and funding costs. This, thus, adversely impacted net interest income (NII) and margins.
The bright spot from the crisis for JPMorgan was it acquired First Republic Bank, the third large bank to collapse in 2023, for $10.6 billion. It must be noted that JPM is not permitted to buy another bank because of its size and scale. But this time, these factors helped the company secure the deal.
Following the transaction, JPMorgan’s balance sheet has swelled to almost $3.9 trillion. The deal resulted in increased penetration within the high-net-worth clients and added prime locations in wealthy markets. Recently, at an investor conference call, top management noted that they were able to retain 90% of FRC clients and the integration process is on track.
Year-to-Date Price Performance
Image Source: Zacks Investment Research
While the current higher rate environment is hurting other big banks like Bank of America BAC and Citigroup C, JPMorgan (driven by the FRC deal) witnessed robust improvement in NII. In the nine months ended Sep 30, 2023, the company’s NII jumped 40% to $65.2 billion. BAC recorded a 14% rise in NII and the metric for C grew 16% in the same time frame.
Additionally, JPMorgan kept on raising its 2023 NII guidance. Now, the company expects NII to be roughly $88.5 billion, driven by higher rates and slower-than-expected deposit repricing across both consumers and wholesale. Earlier, the company had guided NII to be $87 billion for this year.
Nevertheless, this Zacks Rank #3 (Hold) company believes that the current NII run rate is not sustained as competition for deposits and annual NII is estimated to be near $80 billion over the medium term. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Though the latest Summary of Economic Projections doesn’t indicate a recession for the U.S. economy, the growth rate will slow down to 1.4% in 2024. For 2023, the U.S. economy is anticipated to grow 2.6%. Thus, the demand for loans is expected to remain moderate over the next year. This, along with the central bank signaling 75 basis points cut in interest rates in 2024, the company’s NII is not expected to improve much.
JPMorgan is heavily investing in technology, spending more than $12 billion annually. Thus, its expenses keep on mounting. The company’s non-interest expenses witnessed a five-year (ended 2022) compound annual growth rate (CAGR) of 5.3%. Further, the First Republic acquisition is expected to result in $2 billion of post-tax restructuring charges to be incurred this year and in 2024. For 2023, management anticipates adjusted expenses to be approximately $84 billion (including integration-related charges) amid inflationary pressure.
Though some green shoots are visible in the investment banking (IB) business, IB fees are less likely to improve soon. This, along with the volatile nature of the capital markets business and high mortgage rates, will likely hamper JPMorgan’s fee income growth. In the first three quarters of 2023, the metric grew just 14%.
Thus, slowing NII growth, challenging fee income growth and elevated expenses are worrisome.
Yet, one should keep this banking behemoth on the radar due to its scale and leverage in terms of its huge branch network and presence in 48 of 50 states in the United States over other big banks like Bank of America and Citigroup.
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
Bank of America Corporation (BAC) : Free Stock Analysis Report
JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report
Citigroup Inc. (C) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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JPMorgan’s JPM shares have rallied 24% this year, significantly outperforming the industry’s rise of 10.2% and the Zacks Finance sector growth of 14.1%. This, along with the volatile nature of the capital markets business and high mortgage rates, will likely hamper JPMorgan’s fee income growth. From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%.
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Image Source: Zacks Investment Research While the current higher rate environment is hurting other big banks like Bank of America BAC and Citigroup C, JPMorgan (driven by the FRC deal) witnessed robust improvement in NII. Though some green shoots are visible in the investment banking (IB) business, IB fees are less likely to improve soon. Click to get this free report Bank of America Corporation (BAC) : Free Stock Analysis Report JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report Citigroup Inc. (C) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Image Source: Zacks Investment Research While the current higher rate environment is hurting other big banks like Bank of America BAC and Citigroup C, JPMorgan (driven by the FRC deal) witnessed robust improvement in NII. Nevertheless, this Zacks Rank #3 (Hold) company believes that the current NII run rate is not sustained as competition for deposits and annual NII is estimated to be near $80 billion over the medium term. Click to get this free report Bank of America Corporation (BAC) : Free Stock Analysis Report JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report Citigroup Inc. (C) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Nonetheless, the early March regional banking crisis that led to the fall of three large banks because of deposit flight to higher-yielding investment options was a wake-up call for banks and regulators alike. Image Source: Zacks Investment Research While the current higher rate environment is hurting other big banks like Bank of America BAC and Citigroup C, JPMorgan (driven by the FRC deal) witnessed robust improvement in NII. Thus, slowing NII growth, challenging fee income growth and elevated expenses are worrisome.
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2023-12-16 00:00:00 UTC
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Logitech (LOGI) AI Camera Certified for Teams and Zoom Rooms
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https://www.nasdaq.com/articles/logitech-logi-ai-camera-certified-for-teams-and-zoom-rooms
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Logitech International LOGI unveiled that its AI-driven tabletop camera, Logitech Sight, is the inaugural intelligent camera certified by Microsoft MSFT Teams for center-of-table use alongside front-of-room video bars. Additionally, this cutting-edge innovation is the premier Panoramic Camera certified for compatibility with Zoom ZM Rooms, thus marking a significant leap in meeting technology.
Recent advancements in the industry involve the integration of tabletop cameras with front-of-room counterparts. Logitech Sight simplifies the utilization of hybrid-friendly meeting layouts, including Microsoft Teams dynamic view and, in upcoming developments, Zoom Smart Gallery. Its compatibility with widely adopted platforms assures IT teams that the smart room technology will effectively address the changing demands of a hybrid workforce.
Logitech International S.A. Price and Consensus
Logitech International S.A. price-consensus-chart | Logitech International S.A. Quote
Logitech's dedication to cross-platform functionality aligns with its tradition of flexible and seamless experiences, benefiting both IT professionals and end-users. The device's effortless management is facilitated through Logitech Sync, a complimentary software enabling device monitoring, updates and issue resolution via a user-friendly cloud-based interface.
Logitech Sight harmoniously integrates with Rally Bar and Rally Bar Mini, ensuring the smooth incorporation of this innovative technology into existing video bar setups. Logitech's commitment to advancing meeting technology underscores its vision for enhanced hybrid collaboration, offering a compelling solution tailored to the needs of modern workplaces.
Shares of Logitech have outperformed the Zacks Computer – Peripheral Equipment industry in the year-to-date (YTD) period. Shares of LOGI have gained 50.1% YTD compared with the Computer – Peripheral Equipment industry’s 23.7% rise.
Logitech is Looking to Expand Product Portfolio
Logitech intends to tap the high-potential market for accessories by pursuing innovation and expanding its product lines. The company has manufactured innovative offerings like flexible show-and-tell, audio mixing software and wave keys.
The Logitech Reach, launched in September 2023, is a flexible and adjustable camera solution that enables users to seamlessly share non-digital content during in-person presentations, classes, conference calls and streams. It is suitable for creators, educators, gamers, streamers, designers and for business purposes. The Logitech Reach is designed to cater to the users’ diversifying needs and enhance their camera experience.
Its Logitech G brand introduced MIXLINE in October this year to provide a seamless audio mixing experience, making it enjoyable and straightforward for game streamers of all skill levels to route and mix audio for both live and recorded content creation. For game streamers and content creators who often handle multiple audio inputs, such as game audio, music and chat services, MIXLINE offers an intuitive way to route these inputs to the desired locations. This eliminates the complexities and challenges associated with audio mixing.
Launched last month, Logitech Wave Keys and Wave Keys for Business blend comfort and well-being, thus offering an approachable ergonomic design. The wave design of Wave Keys provides instantly familiar and more comfortable typing, addressing the growing importance of ergonomics as people spend extended periods in front of their computers.
LOGI’s sustained focus on introducing new and innovative products might boost sales and somewhat offset the negative impact of the weakened demand for PC peripheral products. In 2020 and 2021, Logitech benefited from the elevated demand for its Video Collaboration, PC Webcams, Keyboards & Combos and Pointing Device tools, mainly driven by the heightening of work-from-home and learn-from-home trends.
Nevertheless, the global economic downturn, exacerbated by ongoing macroeconomic and geopolitical challenges, has heightened worries about a worldwide recession. In response to these concerns, businesses are delaying their significant IT spending initiatives. Additionally, the persisting economic uncertainties have led to industry-wide layoffs, further dampening the demand for PC peripheral products among organizations.
The aforementioned factors are hurting Logitech’s financial performance. In second-quarter fiscal 2024, the company’s revenues declined 8% on a year-over-year basis.
Zacks Rank and Other Stock to Consider
Logitech carries a Zacks Rank #2 (Buy), at present. MSFT currently carries a Zack Rank#3 (Hold) while ZM sports a Zack Rank#1 (Strong Buy).
Another top-ranked stock from the broader technology sector is NVIDIA NVDA, carrying a Zacks Rank of 2, at present. You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for NVIDIA's fourth-quarter fiscal 2024 earnings has been revised upward by 75 cents to $4.48 per share in the past 30 days. For fiscal 2024, earnings estimates have increased by $1.43 to $12.29 per share in the past 30 days.
NVIDIA’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 18.99%. Shares of NVDA have rallied 242.7% year to date.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Logitech International S.A. (LOGI) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Zoom Video Communications, Inc. (ZM) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Logitech Sight simplifies the utilization of hybrid-friendly meeting layouts, including Microsoft Teams dynamic view and, in upcoming developments, Zoom Smart Gallery. The Logitech Reach, launched in September 2023, is a flexible and adjustable camera solution that enables users to seamlessly share non-digital content during in-person presentations, classes, conference calls and streams. In 2020 and 2021, Logitech benefited from the elevated demand for its Video Collaboration, PC Webcams, Keyboards & Combos and Pointing Device tools, mainly driven by the heightening of work-from-home and learn-from-home trends.
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Logitech International LOGI unveiled that its AI-driven tabletop camera, Logitech Sight, is the inaugural intelligent camera certified by Microsoft MSFT Teams for center-of-table use alongside front-of-room video bars. The company has manufactured innovative offerings like flexible show-and-tell, audio mixing software and wave keys. Click to get this free report Microsoft Corporation (MSFT) : Free Stock Analysis Report Logitech International S.A. (LOGI) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Zoom Video Communications, Inc. (ZM) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Logitech International S.A. Price and Consensus Logitech International S.A. price-consensus-chart | Logitech International S.A. Quote Logitech's dedication to cross-platform functionality aligns with its tradition of flexible and seamless experiences, benefiting both IT professionals and end-users. Zacks Rank and Other Stock to Consider Logitech carries a Zacks Rank #2 (Buy), at present. Click to get this free report Microsoft Corporation (MSFT) : Free Stock Analysis Report Logitech International S.A. (LOGI) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Zoom Video Communications, Inc. (ZM) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Logitech International LOGI unveiled that its AI-driven tabletop camera, Logitech Sight, is the inaugural intelligent camera certified by Microsoft MSFT Teams for center-of-table use alongside front-of-room video bars. Another top-ranked stock from the broader technology sector is NVIDIA NVDA, carrying a Zacks Rank of 2, at present. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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2023-12-16 00:00:00 UTC
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Bitcoin to Shine in 2024: Are These 5 Stocks on Your Radar?
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https://www.nasdaq.com/articles/bitcoin-to-shine-in-2024%3A-are-these-5-stocks-on-your-radar
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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 Corporation NVDA 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. COIN 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. SQ 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. IBKR 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. PYPL 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.
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
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.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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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. Block Inc. SQ is an online digital and mobile payment platform for consumers and merchants and is the parent company of Square and Cash App.
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SQ currently carries a Zacks Rank #2 Interactive Brokers Group, Inc. IBKR is a global automated electronic broker. PayPal Holdings’ expected earnings growth rate for the current year is 11.5%. 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.
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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. PayPal Holdings, Inc. PYPL provides digital wallet services that enable users to purchase, transfer, and sell various cryptocurrencies, such as Bitcoin, Ethereum, Bitcoin Cash and Litecoin. 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.
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Year to date, Bitcoin, Ethereum, Cardano and Dogecoin have rallied 150.2%, 80.4%, 130.8% and 27.1%, respectively. This potential approval is expected to have a significant impact on boosting the cryptocurrency market. NVIDIA’s expected earnings growth rate for next year is 61.5%.
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2023-12-16 00:00:00 UTC
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3 Artificial Intelligence (AI) Stocks for 2024 (and Beyond)
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https://www.nasdaq.com/articles/3-artificial-intelligence-ai-stocks-for-2024-and-beyond
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What was the top financial story of 2023? It has to be Artificial Intelligence (AI), right?
No other subject dominated the headlines quite like AI. Whether it was ChatGPT, viral AI-generated images, or the failed ouster of Sam Altman at OpenAI, it seems AI keeps pumping out big stories, one after the other.
So, with 2024 right around the corner, here are three AI stocks worth owning in 2024 -- and beyond.
Image source: Getty Images.
AI analysis can help companies optimize their operations
Jake Lerch (Palantir Technologies): With the stock up 178% year to date, 2023 has been an incredible year for Palantir Technologies (NYSE: PLTR) and its shareholders. There are, however, signs that 2024 (and beyond) could be even better.
Palantir operates AI-based analytics systems for governmental and commercial uses and is on the leading edge of translating AI innovation into shareholder returns. Consider Palantir's recent announcement that it is extending its long-standing partnership with UniCredit S.p.A., a major European bank.
In its press release , Palantir noted that its signature Foundry operating system delivered material results for UniCredit. For example, in 2023, "advanced analytics and propensity models in Foundry helped [UniCredit] generate a four-fold increase in customer redemption of protection products through better targeting."
Indeed, UniCredit is just one of many customers that is desperate to ramp up its use of AI to streamline its operations. In a Dec. 7, 2023 interview with Fox Business, Palantir co-founder and CEO Alex Karp said, "We just can't keep up with our product demand...We are just breaking at the seams in the U.S."
The numbers certainly back that statement up. In its most recent quarter (the three months ending on Sept. 30, 2023), Palantir grew revenue by 17% year over year. Trailing-12-month revenue hit $2.1 billion, gross profit swelled to $1.7 billion, and free cash flow increased to $474 million.
PLTR Revenue (TTM) data by YCharts
Nevertheless, Palantir stock isn't for everyone. Since the company is still early in its lifecycle, its stock will be volatile. Indeed, shares plummeted more than 84% from their all-time high between January 2021 and January 2023.
Still, for long-term, growth-oriented investors, Palantir is a name worth considering, given the soaring demand for its products and its improving fundamentals.
AI isn't just about what you see; it's about what you say and hear
Justin Pope (SoundHound AI): Much of the hype around AI has focused on large language models like ChatGPT, but there are other ways to use AI that investors may not be fully aware of. SoundHound AI (NASDAQ: SOUN) develops conversational AI, taking an audio input, such as someone voicing a question and responding with dialogue or action.
Conversational AI has a lot of existing and potential use cases. SoundHound AI is used in restaurant and hospitality industries to take orders or make reservations. It's in vehicles, smart devices, and appliances for voice assistance. In the future, the technology could find its way into healthcare, customer service, and more. SoundHound AI estimates a long-term potential addressable market of $160 billion.
As a company, SoundHound AI is just getting started. It's only done $38 million in revenue over the past 12 months, but analysts believe it will grow significantly. Estimates call for 50% revenue growth over the next two years. The company also recently announced an acquisition of SYNQ3 Restaurant Solutions, giving SoundHound access to a potential restaurant pipeline of 100,000 locations.
SoundHound AI is a risky stock because the business is so nascent. It's burning cash every quarter, and there is only a year or so of cash on the balance sheet at this rate. Investors shouldn't be shocked if the company issues new stock to raise funds. Conversely, the stock's market cap is just $480 million. Investors could eventually be handsomely rewarded if SoundHound AI can become a leader in this massive (but underrated) niche within AI.
It's way too early to count out this "AI-first" company
Will Healy (Alphabet): The narrative in the AI space seems to have turned away from Google parent Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG).
Indeed, the rise of OpenAI's ChatGPT seemed to catch Alphabet off guard, particularly as rival Microsoft (NASDAQ: MSFT) forged an alliance with the research and development company. This gave users a reason to start using Microsoft's search engine, Bing, and some began questioning the dominance of the Google search engine for the first time in several years.
However, Alphabet has responded with its own generative AI tool called Bard. While the tools offer similar results, Bard was first in producing more up-to-date results as it leverages Google's search engine.
Moreover, the company has a long history with AI. Alphabet first used AI to correct spelling as early as 2001. The tools advanced from that point, so much so that Alphabet declared itself an "AI first" company in 2016.
Furthermore, investors should remember that Alphabet owns numerous companies, some of which could drive AI innovation. Earlier this year, it combined two of its AI companies into Google DeepMind. This subsidiary is a group of scientists, engineers, and others researching AI.
Also, with the funding backing Google DeepMind, the company has a high probability of driving innovation. Alphabet claims almost $120 billion in liquidity, and it generated nearly $32 billion in free cash flow in the first nine months of 2023. This gives the company tremendous resources to develop AI-related products and the ability to purchase the innovation it cannot create.
Such optionality gives investors fewer reasons to doubt Alphabet, and one has to wonder whether the sentiment against the Google parent was overblown. Despite the concerns of some, the stock has risen by more than 40% over the last 12 months.
GOOGL PE Ratio data by YCharts
Additionally, the increase has taken its P/E ratio to 26. While not inexpensive, its P/E is lower than those of Amazon (NASDAQ: AMZN), Apple (NASDAQ: AAPL), and Microsoft. That lower valuation could be an opportunity to buy this stock as it uses its AI knowledge base and vast resources to remain a force in the artificial intelligence industry.
Should you invest $1,000 in Alphabet right now?
Before you buy stock in Alphabet, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Alphabet wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
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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. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Jake Lerch has positions in Alphabet and Amazon. Justin Pope has no position in any of the stocks mentioned. Will Healy has positions in Palantir Technologies. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Microsoft, and Palantir Technologies. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For example, in 2023, "advanced analytics and propensity models in Foundry helped [UniCredit] generate a four-fold increase in customer redemption of protection products through better targeting." In a Dec. 7, 2023 interview with Fox Business, Palantir co-founder and CEO Alex Karp said, "We just can't keep up with our product demand...We are just breaking at the seams in the U.S." The numbers certainly back that statement up. That lower valuation could be an opportunity to buy this stock as it uses its AI knowledge base and vast resources to remain a force in the artificial intelligence industry.
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It's way too early to count out this "AI-first" company Will Healy (Alphabet): The narrative in the AI space seems to have turned away from Google parent Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG). However, Alphabet has responded with its own generative AI tool called Bard. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Microsoft, and Palantir Technologies.
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AI analysis can help companies optimize their operations Jake Lerch (Palantir Technologies): With the stock up 178% year to date, 2023 has been an incredible year for Palantir Technologies (NYSE: PLTR) and its shareholders. AI isn't just about what you see; it's about what you say and hear Justin Pope (SoundHound AI): Much of the hype around AI has focused on large language models like ChatGPT, but there are other ways to use AI that investors may not be fully aware of. 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.
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As a company, SoundHound AI is just getting started. It's way too early to count out this "AI-first" company Will Healy (Alphabet): The narrative in the AI space seems to have turned away from Google parent Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG). 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.
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2023-12-16 00:00:00 UTC
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5 Top Growth Stocks for the Presidential Election Year 2024
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https://www.nasdaq.com/articles/5-top-growth-stocks-for-the-presidential-election-year-2024
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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 EAT, Granite Construction GVA, Royal Caribbean Cruises RCL, Eaton ETN and AZZ 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.
AZZ is 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.
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
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.
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Surprisingly, solid consumer outlays amid elevated inflation and interest rate hikes helped the economy expand, while the AI boom propelled tech stocks northward. Heading into 2024, stretched valuations, geopolitical surprises, and most importantly, the outcome of the presidential election may likely create gyrations in the stock market. From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%.
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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 EAT, Granite Construction GVA, Royal Caribbean Cruises RCL, Eaton ETN and AZZ AZZ seems judicious. Royal Caribbean Cruises currently has a Zacks Rank #1 and a Growth Score of B. 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.
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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 EAT, Granite Construction GVA, Royal Caribbean Cruises RCL, Eaton ETN and AZZ 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. 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.
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Moreover, Fed officials expect another full percentage point rate cut in 2025. 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 EAT, Granite Construction GVA, Royal Caribbean Cruises RCL, Eaton ETN and AZZ AZZ seems judicious. Be First to New Top 10 Stocks >> Want the latest recommendations from Zacks Investment Research?
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710929.0
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2023-12-16 00:00:00 UTC
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5 Nasdaq Composite Laggards Likely to Gather Pace in 2024
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https://www.nasdaq.com/articles/5-nasdaq-composite-laggards-likely-to-gather-pace-in-2024
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The Nasdaq Composite has been witnessing an astonishing rally in 2023 after a highly disappointing 2022. Year to date, the tech-heavy index has surged 42.4%. With just eight days of trading left to conclude 2023, the index is set to be the clear winner of this year.
Momentum Likely to Continue
U.S. stock markets have soared amid a clear indication from the central bank that the current interest rate hike cycle, which elevated the Fed fund rate to a 22-year high of 5.25-5.50% from 0-0.25% in March 2022, has finally ended.
Moreover, the December FOMC meeting dot plot has shown that on average, Fed officials are expecting at least three rate cuts of 25 basis points each in 2024, followed by four more rate cuts of a full one percentage point in 2025.
The dot plot has also indicated three more rate cuts in 2026, which would take down the benchmark lending rate to the range of 2-2.25%. Following the Fed’s decision, the yield on the benchmark 10-Year U.S. Treasury Note fell less than 4% for the first time since March 2023. The yield topped more than 5% in October.
Fed officials currently expect core inflation to fall 3.2% in 2023, 2.4% in 2024, and then to 2.2% in 2025. Finally, it should decline to the 2% target in 2026. Despite rigorous interest rate hikes, the fundamentals of the U.S. economy remain strong.
On Dec 14, the Atlanta Fed forecast U.S. GDP to grow by 2.6% in fourth-quarter 2023, a notable improvement from the 1.2% estimated on Dec 7. This eliminates the fear of a recession in 2024 thereby boosting investors’ confidence in a possible soft landing for the U.S. economy.
A Few Nasdaq Composite Laggers
Despite a dream run of the tech-laden index, a few large-cap stocks have provided negative returns year to date. A handful of those stocks currently carry a favorable Zacks Rank. These stocks are likely to regain momentum in 2024 as steadily dwindling inflation coupled with a low interest rate regime are expected to help reviving their businesses.
Our Top Picks
We have narrowed our search to five Nasdaq Composite listed laggards of 2023 with strong potential for 2024. These stocks have seen positive earnings estimate revisions in the last 60 days. Each of our picks carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The chart below shows the price performance of our five picks year to date.
Image Source: Zacks Investment Research
PepsiCo Inc. PEP reported robust second-quarter 2023 earnings results. The results reflect strength and resilience in its diversified portfolio, modernized supply chain, improved digital capabilities, flexible go-to-market distribution systems and robust consumer demand trends. Resilience and strength in the global beverage and food businesses also aided results.
PEP expects organic revenue growth of 10% for 2023 compared with the 8% rise estimated earlier. PEP expects core earnings per share of $7.47 for 2023 compared with the $7.27 forecast earlier.
Zacks Rank #2 PepsiCo has an expected revenue and earnings growth rate of 4.5% and 7.5%, respectively, for next year. The Zacks Consensus Estimate for next-year earnings has improved 0.1% over the last 60 days.
Warner Music Group Corp. WMG is a music-based content company. WMG’s operating segments consist of Recorded Music and Music Publishing. The Recorded Music segment is involved in the discovery and development of recording artists. The Music Publishing segment owns and acquires rights. WMG operates principally in the United States, the United Kingdom and internationally.
Zacks Rank #2 Warner Music Group has an expected revenue and earnings growth rate of 6% and 23.8%, respectively, for the current year (ending September 2024). The Zacks Consensus Estimate for current-year earnings has improved 6.6% over the last 30 days.
The Kraft Heinz Co. KHC is gaining on solid pricing initiatives. This was seen in second-quarter 2023, wherein the top and the bottom lines rose year over year. KHC’s sales grew in the North America and International regions and results continued to gain from strength in the foodservice, emerging markets and U.S. Retail Grow platforms. KHC is on track with AGILE@SCALE to enhance shareholders' value. We expect net sales growth of 2%, with an organic sales increase of 4% in 2023.
Zacks Rank #2 Kraft Heinz has an expected revenue and earnings growth rate of 0.8% and 1.7%, respectively, for next year. The Zacks Consensus Estimate for next-year earnings has improved 1.7% over the last 60 days.
BeiGene Ltd. BGNE develops and commercializes oncology medicines worldwide. BGNE’s clinical-stage drug candidates include BGB-3111, BGB-283, BGB-290, and BGB-A317. BGNE has collaborations with several large biotech companies.
Zacks Rank #1 BeiGene has an expected revenue and earnings growth rate of 21.7% and 15.5%, respectively, for next year. The Zacks Consensus Estimate for next-year earnings has improved 27.2% over the last 60 days.
Insulet Corp. PODD has been progressing well on its four-pillar strategy with target-focused market expansion and innovation. PODD has been making significant progress with respect to its development roadmap of the Omnipod 5 system. The international rollout of the device continues successfully.
PODD commercially launched Omnipod 5 in the United Kingdom in June and in August, this device reached Germany commercially. Further, Insulet registered continued strong adoption of Omnipod DASH in its international markets.
Zacks Rank #1 Insulet has an expected revenue and earnings growth rate of 19.8% and 30.2%, respectively, for next year. The Zacks Consensus Estimate for next-year earnings has improved 11.2% over the last 60 days.
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
Be First to New Top 10 Stocks >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
PepsiCo, Inc. (PEP) : Free Stock Analysis Report
Insulet Corporation (PODD) : Free Stock Analysis Report
Kraft Heinz Company (KHC) : Free Stock Analysis Report
BeiGene, Ltd. (BGNE) : Free Stock Analysis Report
Warner Music Group Corp. (WMG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The results reflect strength and resilience in its diversified portfolio, modernized supply chain, improved digital capabilities, flexible go-to-market distribution systems and robust consumer demand trends. Zacks Rank #2 Warner Music Group has an expected revenue and earnings growth rate of 6% and 23.8%, respectively, for the current year (ending September 2024). KHC’s sales grew in the North America and International regions and results continued to gain from strength in the foodservice, emerging markets and U.S. Retail Grow platforms.
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Zacks Rank #2 Warner Music Group has an expected revenue and earnings growth rate of 6% and 23.8%, respectively, for the current year (ending September 2024). Zacks Rank #2 Kraft Heinz has an expected revenue and earnings growth rate of 0.8% and 1.7%, respectively, for next year. Click to get this free report PepsiCo, Inc. (PEP) : Free Stock Analysis Report Insulet Corporation (PODD) : Free Stock Analysis Report Kraft Heinz Company (KHC) : Free Stock Analysis Report BeiGene, Ltd. (BGNE) : Free Stock Analysis Report Warner Music Group Corp. (WMG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Zacks Rank #2 Warner Music Group has an expected revenue and earnings growth rate of 6% and 23.8%, respectively, for the current year (ending September 2024). Zacks Rank #1 Insulet has an expected revenue and earnings growth rate of 19.8% and 30.2%, respectively, for next year. Click to get this free report PepsiCo, Inc. (PEP) : Free Stock Analysis Report Insulet Corporation (PODD) : Free Stock Analysis Report Kraft Heinz Company (KHC) : Free Stock Analysis Report BeiGene, Ltd. (BGNE) : Free Stock Analysis Report Warner Music Group Corp. (WMG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Zacks Rank #2 PepsiCo has an expected revenue and earnings growth rate of 4.5% and 7.5%, respectively, for next year. Zacks Rank #1 BeiGene has an expected revenue and earnings growth rate of 21.7% and 15.5%, respectively, for next year. Zacks Rank #1 Insulet has an expected revenue and earnings growth rate of 19.8% and 30.2%, respectively, for next year.
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710930.0
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2023-12-16 00:00:00 UTC
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PPG Industries (PPG) Stock Up 14% in 3 Months: Here's Why
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https://www.nasdaq.com/articles/ppg-industries-ppg-stock-up-14-in-3-months%3A-heres-why
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PPG Industries Inc.’s PPG shares have popped 13.7% over the past three months. The company has also outperformed its industry’s rise of 10.1% over the same time frame. It has also topped the S&P 500’s roughly 6% rise over the same period.
Let’s take a look into the factors behind the stock’s price appreciation.
Image Source: Zacks Investment Research
Pricing & Cost Actions, Acquisitions Drive PPG
PPG Industries, a Zacks Rank #3 (Hold) stock, is benefiting from higher pricing across its segments, manufacturing efficiencies, cost discipline and efforts to grow its business through acquisitions amid headwinds from soft demand in Europe and China.
The company is implementing a cost-cutting and restructuring strategy, as well as optimizing its working capital requirements. The cost savings generated by these restructuring initiatives will act as a tailwind for the company. PPG Industries has undertaken extensive restructuring efforts to reduce its cost structure, primarily focusing on regions and end markets with weak business conditions. The company achieved $15 million in incremental cost reductions through restructuring programs and acquisition synergies in the third quarter of 2023 and expects incremental savings of around $15 million in the fourth quarter.
PPG Industries is also undertaking measures to grow business inorganically through value-creating acquisitions. Contributions from the acquisitions are expected to get reflected in its performance. Acquisitions, including Tikkurila, Worwag and Cetelon, are likely to contribute to its top line.
Moreover, the company is raising selling prices across its business segments to offset the impact of raw material and other cost inflation and drive profitability. Significant progress has been made in increasing consolidated segment margins, which were about 15% in the third quarter of 2023, an increase of 260 basis points compared to the same quarter in 2022, aided by strong selling price realization. Pricing measures are likely to continue to support its margins in the fourth quarter.
PPG Industries also remains committed to boost shareholder returns with cash deployment. It has an impressive record of returning cash to shareholders through dividends and share buybacks. The company, in July 2023, raised its quarterly dividend by around 5% to 65 cents per share. PPG paid dividends worth $153 million in the third quarter and $445 million during the first nine months of 2023.
Estimates Going Up
Over the past two months, the Zacks Consensus Estimate for PPG for third-quarter 2023 has increased around 2.1%. The consensus estimate for 2023 has also been revised 2% upward over the same time frame. The favorable estimate revisions instill investor confidence in the stock.
PPG Industries, Inc. Price and Consensus
PPG Industries, Inc. price-consensus-chart | PPG Industries, Inc. Quote
Stocks to Consider
Better-ranked stocks worth a look in the basic materials space include Denison Mines Corp. DNN, Axalta Coating Systems Ltd. AXTA and Hawkins, Inc. HWKN.
Denison Mines has a projected earnings growth rate of 100% for the current year. DNN has a trailing four-quarter earnings surprise of roughly 225%, on average. The stock is up around 61% in a year. It currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, the Zacks Consensus Estimate for Axalta Coating Systems’ current-year earnings has been revised upward by 8.2%. AXTA, carrying a Zacks Rank #1, beat the Zacks Consensus Estimate in three of the last four quarters while missing in one quarter, with the average earnings surprise being 6.7%. The company’s shares have gained around 33% in the past year.
Hawkins has a projected earnings growth rate of 21% for the current year. It currently carries a Zacks Rank #2 (Buy). Hawkins has a trailing four-quarter earnings surprise of roughly 27.5%, on average. HWKN shares have rallied around 82% in a year.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
PPG Industries, Inc. (PPG) : Free Stock Analysis Report
Denison Mine Corp (DNN) : Free Stock Analysis Report
Axalta Coating Systems Ltd. (AXTA) : Free Stock Analysis Report
Hawkins, Inc. (HWKN) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Image Source: Zacks Investment Research Pricing & Cost Actions, Acquisitions Drive PPG PPG Industries, a Zacks Rank #3 (Hold) stock, is benefiting from higher pricing across its segments, manufacturing efficiencies, cost discipline and efforts to grow its business through acquisitions amid headwinds from soft demand in Europe and China. PPG Industries has undertaken extensive restructuring efforts to reduce its cost structure, primarily focusing on regions and end markets with weak business conditions. Moreover, the company is raising selling prices across its business segments to offset the impact of raw material and other cost inflation and drive profitability.
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Image Source: Zacks Investment Research Pricing & Cost Actions, Acquisitions Drive PPG PPG Industries, a Zacks Rank #3 (Hold) stock, is benefiting from higher pricing across its segments, manufacturing efficiencies, cost discipline and efforts to grow its business through acquisitions amid headwinds from soft demand in Europe and China. PPG Industries, Inc. Price and Consensus PPG Industries, Inc. price-consensus-chart | PPG Industries, Inc. Quote Stocks to Consider Better-ranked stocks worth a look in the basic materials space include Denison Mines Corp. DNN, Axalta Coating Systems Ltd. AXTA and Hawkins, Inc. HWKN. Click to get this free report PPG Industries, Inc. (PPG) : Free Stock Analysis Report Denison Mine Corp (DNN) : Free Stock Analysis Report Axalta Coating Systems Ltd. (AXTA) : Free Stock Analysis Report Hawkins, Inc. (HWKN) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Image Source: Zacks Investment Research Pricing & Cost Actions, Acquisitions Drive PPG PPG Industries, a Zacks Rank #3 (Hold) stock, is benefiting from higher pricing across its segments, manufacturing efficiencies, cost discipline and efforts to grow its business through acquisitions amid headwinds from soft demand in Europe and China. PPG Industries, Inc. Price and Consensus PPG Industries, Inc. price-consensus-chart | PPG Industries, Inc. Quote Stocks to Consider Better-ranked stocks worth a look in the basic materials space include Denison Mines Corp. DNN, Axalta Coating Systems Ltd. AXTA and Hawkins, Inc. HWKN. Click to get this free report PPG Industries, Inc. (PPG) : Free Stock Analysis Report Denison Mine Corp (DNN) : Free Stock Analysis Report Axalta Coating Systems Ltd. (AXTA) : Free Stock Analysis Report Hawkins, Inc. (HWKN) : Free Stock Analysis Report To read this article on Zacks.com click here.
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PPG Industries, Inc. Price and Consensus PPG Industries, Inc. price-consensus-chart | PPG Industries, Inc. Quote Stocks to Consider Better-ranked stocks worth a look in the basic materials space include Denison Mines Corp. DNN, Axalta Coating Systems Ltd. AXTA and Hawkins, Inc. HWKN. AXTA, carrying a Zacks Rank #1, beat the Zacks Consensus Estimate in three of the last four quarters while missing in one quarter, with the average earnings surprise being 6.7%. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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710931.0
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2023-12-16 00:00:00 UTC
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Charles River's (CRL) Memphis Site Achieves Crucial Approval
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https://www.nasdaq.com/articles/charles-rivers-crl-memphis-site-achieves-crucial-approval
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Charles River Laboratories International, Inc. CRL recently achieved an important milestone in its strategic collaboration with Vertex Pharmaceuticals to manufacture CASGEVY (exagamglogene autotemcel [exa-cel]). The company’s Memphis facility has been approved to manufacture Vertex’s CASGEVY — the first-ever gene-edited therapy in the world that targets severe sickle cell disease (SCD).
As a cell therapy CDMO (contract development and manufacturing organization), the recent development will boost Charles River’s Cell Therapy Manufacturing Services. The company offers cell and gene-modified cell therapy developers a robust and scalable process to swiftly transition autologous and allogeneic programs to clinic and commercialization with one production partner.
Significance of the CASGEVY
Vertex Pharmaceuticals collaborated with CRISPR Therapeutics to leverage the use of a gene-editing technology known as CRISPR/Cas9 to discover and develop CASGEVY. Earlier this month, it became the first CRISPR-based gene-editing therapy to be approved in the United States for the treatment of SCD. Approximately 16,000 patients aged 12 and above with severe SCD may now qualify for this one-time treatment that potentially offers a functional cure for their disease by eliminating severe VOCs (vaso-occlusive crises) and hospitalizations caused by severe VOCs.
Image Source: Zacks Investment Research
SCD is an inherited blood disease impacting millions of people worldwide. SCD affects hemoglobin, a part of the blood that carries oxygen around the body. People who suffer from this condition require lifelong treatment and significant use of healthcare resources, ultimately resulting in reduced life expectancy.
More on the News
Charles River’s Memphis team expressed delight in securing the regulatory approval to manufacture CASGEVY. The Memphis facility was the first CDMO in North America to be approved by the EMA (European Medicines Agency) to commercially manufacture an allogeneic cell therapy drug product. The Memphis center of excellence passed back-to-back audits from the FDA and the Health Products Regulatory Authority on behalf of the EMA.
Together with Vertex Pharmaceuticals, the company is pleased to achieve this milestone of manufacturing the world’s first gene-edited therapy. Given the tremendous need for this treatment, the collaboration looks forward to helping bring CASGAVY to patients.
Industry Prospects
Per a Research report, the global gene-editing market was valued at $6.9 billion in 2022 and is expected to witness a CAGR of 15.7% by 2032.
Progress in Cell and Gene Therapy
In recent years, Charles River has significantly broadened its cell and gene therapy portfolio. This includes a substantial good manufacturing practice (GMP)-compliant commercial-ready capacity expansion and the integration of several strategic acquisitions to simplify complex supply chains and meet the growing demand for plasmid DNA, viral vector and cell therapy.
Last month, the company announced a gene therapy manufacturing collaboration with the Australian non-profit foundation, Genetic Cures for Kids Inc. Under the partnership, the company will perform plasmid DNA production in support of early-phase trials for Hereditary Spastic Paraplegia Type 56 (SPG56) — a progressive neurological disease characterized by varying degrees of spasticity and muscle weakness without any available cure.
Charles River also introduced an expanded CliniPrime suite of GMP-compliant offerings with the launch of CliniPrime Cryopreserved Leukopaks for cell therapy development and manufacturing. The new CliniPrime Cryopreserved Leukopak offering provides a solution to a growing industry’s need for reliable and consistent sources of cellular starting material.
Price Performance
Over the past six months, Charles River shares have risen 8.5% against the industry’s decline of 2.3%.
Zacks Rank and Key Picks
Charles River currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space are Haemonetics HAE, Insulet PODD and DexCom DXCM. Haemonetics and DexCom each presently carry a Zacks Rank #2 (Buy), and Insulet sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Haemonetics’ stock has risen 12.6% in the past year. Earnings estimates for Haemonetics have increased from $3.86 to $3.89 in 2023 and $4.11 to $4.15 in 2024 in the past 30 days.
HAE’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 16.1%. In the last reported quarter, it posted an earnings surprise of 5.3%.
Estimates for Insulet’s 2023 earnings per share have moved up from $1.90 to $1.91 in the past 30 days. Shares of the company have dropped 29.8% in the past year compared with the industry’s decline of 1.3%.
PODD’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 105.1%. In the last reported quarter, it delivered an average earnings surprise of 77.4%.
Estimates for DexCom’s 2023 earnings per share have increased from $1.43 to $1.44 in the past 30 days. Shares of the company have increased 9% in the past year compared with the industry’s rise of 3.9%.
DXCM’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 36.4%. In the last reported quarter, it delivered an average earnings surprise of 47.1%.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Haemonetics Corporation (HAE) : Free Stock Analysis Report
DexCom, Inc. (DXCM) : Free Stock Analysis Report
Charles River Laboratories International, Inc. (CRL) : Free Stock Analysis Report
Insulet Corporation (PODD) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Charles River Laboratories International, Inc. CRL recently achieved an important milestone in its strategic collaboration with Vertex Pharmaceuticals to manufacture CASGEVY (exagamglogene autotemcel [exa-cel]). The Memphis facility was the first CDMO in North America to be approved by the EMA (European Medicines Agency) to commercially manufacture an allogeneic cell therapy drug product. This includes a substantial good manufacturing practice (GMP)-compliant commercial-ready capacity expansion and the integration of several strategic acquisitions to simplify complex supply chains and meet the growing demand for plasmid DNA, viral vector and cell therapy.
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Charles River Laboratories International, Inc. CRL recently achieved an important milestone in its strategic collaboration with Vertex Pharmaceuticals to manufacture CASGEVY (exagamglogene autotemcel [exa-cel]). As a cell therapy CDMO (contract development and manufacturing organization), the recent development will boost Charles River’s Cell Therapy Manufacturing Services. Click to get this free report Haemonetics Corporation (HAE) : Free Stock Analysis Report DexCom, Inc. (DXCM) : Free Stock Analysis Report Charles River Laboratories International, Inc. (CRL) : Free Stock Analysis Report Insulet Corporation (PODD) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The company’s Memphis facility has been approved to manufacture Vertex’s CASGEVY — the first-ever gene-edited therapy in the world that targets severe sickle cell disease (SCD). As a cell therapy CDMO (contract development and manufacturing organization), the recent development will boost Charles River’s Cell Therapy Manufacturing Services. Click to get this free report Haemonetics Corporation (HAE) : Free Stock Analysis Report DexCom, Inc. (DXCM) : Free Stock Analysis Report Charles River Laboratories International, Inc. (CRL) : Free Stock Analysis Report Insulet Corporation (PODD) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The company’s Memphis facility has been approved to manufacture Vertex’s CASGEVY — the first-ever gene-edited therapy in the world that targets severe sickle cell disease (SCD). As a cell therapy CDMO (contract development and manufacturing organization), the recent development will boost Charles River’s Cell Therapy Manufacturing Services. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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710932.0
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2023-12-16 00:00:00 UTC
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These 4 Retail Stocks Have Outshone the S&P 500 in 2023
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https://www.nasdaq.com/articles/these-4-retail-stocks-have-outshone-the-sp-500-in-2023
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In a notable turnaround from the challenges of 2022, the stock market experienced a robust resurgence in 2023, witnessing impressive gains of more than 20% for the S&P 500.
The remarkable rally can be attributed to a trifecta of factors — a resilient economy, moderating inflation and growing optimism surrounding a potential peak in interest rates. These elements played a pivotal role in dispelling concerns of an impending recession and enticing investors back into the equities market. Additionally, the recent prospects of interest-rate cuts in 2024 have further fueled the market's momentum.
As investors navigated the twists and turns of this market resurgence, attention turned toward sectors that not only weathered the storms but outshone the benchmark S&P 500. Among these, the retail sector has showcased strength, adaptability and innovation in the face of economic fluctuations. The sector, which occupies the top 50% position in the list of Zacks sectors (eight out of 16), has ascended roughly 24.7% in the past year.
The Retail Industry's Triumph
The retail industry's impressive performance underscores its ability to adapt and thrive in the dynamic market conditions of 2023. Consumer confidence has been a driving force behind the sector's success.
A robust job market has been a key factor in bolstering consumer confidence and spending power. November saw the addition of an impressive 199,000 jobs to the U.S. economy, contributing to a low unemployment rate of 3.7%. The concurrent uptick in wage growth further solidified the link between a strong job market and increased consumer spending. The easing of inflationary pressures has further empowered consumers.
Within this flourishing sector, quite a few individual retail stocks have emerged as standouts, surpassing the S&P 500 and redefining expectations. These stocks, buoyed by a combination of strategic vision, technological innovation and an acute understanding of consumer trends, have proven resilient.
Past-Year Price Performance
Image Source: Zacks Investment Research
4 Prominent Picks
Amazon.com, Inc. AMZN is worth considering. The company’s robust e-commerce platform, renowned for its vast product selection and efficient delivery services, continues to be a primary driver of revenue growth. Prime membership, a cornerstone of Amazon's success, not only fosters customer loyalty but also drives recurring revenues through subscription fees, offering members exclusive access to a myriad of services, such as expedited shipping.
The Zacks Consensus Estimate for Amazon’s current financial-year sales and EPS suggests growth of 11% and 276.1%, respectively, from the year-ago reported figure. AMZN, which sports a Zacks Rank #1 (Strong Buy), has a trailing four-quarter earnings surprise of 54.9%, on average. The sock has advanced 80.6% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
Abercrombie & Fitch Co. ANF is another potential pick. The company's ability to adapt, innovate and connect with customers positions it for a prosperous future. Abercrombie & Fitch’s regional operating model, with a focus on the Americas, the EMEA and the APAC, provides a solid foundation for global expansion. Its strong brand portfolio, operational efficiency and regional strategy make it an attractive investment opportunity as it continues to navigate and thrive in the evolving retail landscape.
This leading, global, omnichannel specialty retailer of apparel and accessories for men, women and kids delivered a trailing four-quarter earnings surprise of 713%, on average. The Zacks Consensus Estimate for Abercrombie & Fitch’s current financial-year sales suggests growth of 13.3% from the year-ago period. The stock, which sports a Zacks Rank #1, has surged 301.3% in the past year.
The Gap, Inc. GPS demonstrates resilience and positive momentum in its financial performance. The company's strategic efforts, including significant cost savings, have strengthened its financial position. Market share gains in key brands like Old Navy and Gap highlight successful product strategies. With disciplined expense control, strong cash generation and a focus on brand revitalization, Gap stands out as a promising player.
This specialty apparel company delivered a trailing four-quarter earnings surprise of 137.9%, on average. The Zacks Consensus Estimate for Gap’s current financial-year earnings suggests growth of 387.5% from the year-ago period. Shares of this Zacks Rank #1 company have surged 72.3% in the past year.
Deckers Outdoor Corporation DECK has been targeting profitable and underpenetrated markets, emphasizing product innovations, store expansion and the strengthening of e-commerce capabilities. The company’s focus on expanding brand assortments, bringing more innovative lines of products, targeting consumers digitally and optimizing omni-channel distribution positions it for continued success.
Impressively, the Zacks Consensus Estimate for Deckers’ current-fiscal sales and EPS calls for growth of 11.7% and 21.3%, respectively, from the year-ago reported figure. DECK has a trailing four-quarter earnings surprise of 26.3%, on average. We note that shares of this Zacks Rank #1 company have increased 94.7% in the past year.
Zacks Naming Top 10 Stocks for 2024
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Be First to New Top 10 Stocks >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Abercrombie & Fitch Company (ANF) : Free Stock Analysis Report
Deckers Outdoor Corporation (DECK) : Free Stock Analysis Report
The Gap, Inc. (GPS) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Prime membership, a cornerstone of Amazon's success, not only fosters customer loyalty but also drives recurring revenues through subscription fees, offering members exclusive access to a myriad of services, such as expedited shipping. Its strong brand portfolio, operational efficiency and regional strategy make it an attractive investment opportunity as it continues to navigate and thrive in the evolving retail landscape. The company’s focus on expanding brand assortments, bringing more innovative lines of products, targeting consumers digitally and optimizing omni-channel distribution positions it for continued success.
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The Zacks Consensus Estimate for Amazon’s current financial-year sales and EPS suggests growth of 11% and 276.1%, respectively, from the year-ago reported figure. The Zacks Consensus Estimate for Abercrombie & Fitch’s current financial-year sales suggests growth of 13.3% from the year-ago period. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Abercrombie & Fitch Company (ANF) : Free Stock Analysis Report Deckers Outdoor Corporation (DECK) : Free Stock Analysis Report The Gap, Inc. (GPS) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The sector, which occupies the top 50% position in the list of Zacks sectors (eight out of 16), has ascended roughly 24.7% in the past year. The company’s focus on expanding brand assortments, bringing more innovative lines of products, targeting consumers digitally and optimizing omni-channel distribution positions it for continued success. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Abercrombie & Fitch Company (ANF) : Free Stock Analysis Report Deckers Outdoor Corporation (DECK) : Free Stock Analysis Report The Gap, Inc. (GPS) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The sector, which occupies the top 50% position in the list of Zacks sectors (eight out of 16), has ascended roughly 24.7% in the past year. AMZN, which sports a Zacks Rank #1 (Strong Buy), has a trailing four-quarter earnings surprise of 54.9%, on average. Market share gains in key brands like Old Navy and Gap highlight successful product strategies.
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2023-12-16 00:00:00 UTC
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Top 4 Energy Infrastructure Research Themes in 2023
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https://www.nasdaq.com/articles/top-4-energy-infrastructure-research-themes-in-2023
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The most-read energy infrastructure research from 2023 tended to include both timely developments and topics with perennial attraction like natural gas. Today’s note discusses the topics and pieces from 2023 that were of the greatest interest to our investor audience.
M&A: A Key Theme in Midstream and Energy
Our most-read piece in 2023 by a significant margin was our note on ONEOK’s (OKE) acquisition of Magellan from May, OKE Acquiring MMP: Valuation Nice, Taxes Add Wrinkle. This was a blockbuster transaction for the midstream/MLP space and garnered significant investor interest through the deal’s close in September.
More broadly, consolidation was a key theme across energy this year. Our August note, Better Together: Energy Consolidation Continues, recapped energy sector tie-ups and saw strong interest. Notably, the note preceded the announcements of Exxon (XOM) acquiring Pioneer (PXD) and Chevron (CVX) acquiring Hess (HES).
Natural Gas: Always a Crowd Pleaser
Year after year, natural gas research tends to be a top performer. Our most recent coverage, US Natural Gas Prices: Winter Weather, Prices, and Production, discussed the outlook for natural gas into 2024 and 2025 following a lackluster price environment in 2023. For a longer-term perspective, Williams (WMB) and the Golden Age of Natural Gas highlighted structural drivers for growing natural gas demand in the U.S. and overseas as discussed in a fireside chat with WMB’s CFO John Porter.
Global liquefied natural gas (LNG) demand is expected to grow by upward of 60% through 2040 as discussed in Global LNG Market Poised for Long-Term Growth. Of course, the U.S. will play a major role in meeting growing this demand. U.S. LNG Projects Advance Even as Global Prices Slump provided an overview of the incremental LNG export capacity currently being developed in the U.S. Coastal British Columbia is home to a handful of LNG export projects, as discussed in Canadian LNG Projects Advance to Meet Asian Demand. Growing LNG exports from the U.S. and Canada have created growth opportunities for midstream companies.
Natural Gas Liquids: Less Familiar Hydrocarbons Attract Interest
Natural gas liquids (NGLs) tend to be less familiar to investors. But they play an important role in driving growth for midstream. Perhaps that contributed to strong interest in notes on ethane, MLPs and the Fastest-Growing Hydrocarbon You’ve Not Heard Of, and propane, Propane Helps Fuel Midstream/MLP Growth. NGL production has increased alongside growing oil and gas output. And strong international demand for ethane and propane for plastics manufacturing has supported growing exports from the U.S.
Taxes Aren’t Always Boring
An MLP tax primer in April was well-timed for catching the attention of investors. MLPs and MLP ETFs: Not Just Income, but Tax-Deferred Income explained the nuances of taxation for owning an individual MLP vs. an MLP ETF. With the Alerian MLP Infrastructure Index (AMZI) yielding 7.8% as of December 14, investors tend to recognize that MLPs offer generous yields. They are typically less familiar with tax advantages that often come with MLP income, namely the potential for tax deferral.
AMZI is the underlying index for the Alerian MLP ETF (AMLP) and the ETRACS Alerian MLP Infrastructure Index ETN Series B (MLPB).
Top 2023 Research:
OKE Acquiring MMP: Valuation Nice, Taxes Add Wrinkle
Better Together: Energy Consolidation Continues
US Natural Gas Prices: Winter Weather, Prices, and Production
U.S. LNG Projects Advance Even as Global Prices Slump
Global LNG Market Poised for Long-Term Growth
Canadian LNG Projects Advance to Meet Asian Demand
Williams (WMB) and the Golden Age of Natural Gas
MLPs and the Fastest-Growing Hydrocarbon You’ve Not Heard Of
Propane Helps Fuel Midstream/MLP Growth
MLPs and MLP ETFs: Not Just Income, but Tax-Deferred Income
Vettafi.com is owned by VettaFi LLC (“VettaFi”). VettaFi is the index provider for AMLP and MLPB, for which it receives an index licensing fee. However, AMLP and MLPB are not issued, sponsored, endorsed, or sold by VettaFi. VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of AMLP and MLPB.
For more news, information, and strategy, visit the Energy Infrastructure Channel.
Read more on ETFTrends.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The most-read energy infrastructure research from 2023 tended to include both timely developments and topics with perennial attraction like natural gas. Top 2023 Research: OKE Acquiring MMP: Valuation Nice, Taxes Add Wrinkle Better Together: Energy Consolidation Continues US Natural Gas Prices: Winter Weather, Prices, and Production U.S. LNG Projects Advance Even as Global Prices Slump Global LNG Market Poised for Long-Term Growth Canadian LNG Projects Advance to Meet Asian Demand Williams (WMB) and the Golden Age of Natural Gas MLPs and the Fastest-Growing Hydrocarbon You’ve Not Heard Of Propane Helps Fuel Midstream/MLP Growth MLPs and MLP ETFs: Not Just Income, but Tax-Deferred Income Vettafi.com is owned by VettaFi LLC (“VettaFi”). VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of AMLP and MLPB.
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Natural Gas Liquids: Less Familiar Hydrocarbons Attract Interest Natural gas liquids (NGLs) tend to be less familiar to investors. Perhaps that contributed to strong interest in notes on ethane, MLPs and the Fastest-Growing Hydrocarbon You’ve Not Heard Of, and propane, Propane Helps Fuel Midstream/MLP Growth. Top 2023 Research: OKE Acquiring MMP: Valuation Nice, Taxes Add Wrinkle Better Together: Energy Consolidation Continues US Natural Gas Prices: Winter Weather, Prices, and Production U.S. LNG Projects Advance Even as Global Prices Slump Global LNG Market Poised for Long-Term Growth Canadian LNG Projects Advance to Meet Asian Demand Williams (WMB) and the Golden Age of Natural Gas MLPs and the Fastest-Growing Hydrocarbon You’ve Not Heard Of Propane Helps Fuel Midstream/MLP Growth MLPs and MLP ETFs: Not Just Income, but Tax-Deferred Income Vettafi.com is owned by VettaFi LLC (“VettaFi”).
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Global liquefied natural gas (LNG) demand is expected to grow by upward of 60% through 2040 as discussed in Global LNG Market Poised for Long-Term Growth. U.S. LNG Projects Advance Even as Global Prices Slump provided an overview of the incremental LNG export capacity currently being developed in the U.S. Coastal British Columbia is home to a handful of LNG export projects, as discussed in Canadian LNG Projects Advance to Meet Asian Demand. Top 2023 Research: OKE Acquiring MMP: Valuation Nice, Taxes Add Wrinkle Better Together: Energy Consolidation Continues US Natural Gas Prices: Winter Weather, Prices, and Production U.S. LNG Projects Advance Even as Global Prices Slump Global LNG Market Poised for Long-Term Growth Canadian LNG Projects Advance to Meet Asian Demand Williams (WMB) and the Golden Age of Natural Gas MLPs and the Fastest-Growing Hydrocarbon You’ve Not Heard Of Propane Helps Fuel Midstream/MLP Growth MLPs and MLP ETFs: Not Just Income, but Tax-Deferred Income Vettafi.com is owned by VettaFi LLC (“VettaFi”).
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Today’s note discusses the topics and pieces from 2023 that were of the greatest interest to our investor audience. Our most recent coverage, US Natural Gas Prices: Winter Weather, Prices, and Production, discussed the outlook for natural gas into 2024 and 2025 following a lackluster price environment in 2023. Top 2023 Research: OKE Acquiring MMP: Valuation Nice, Taxes Add Wrinkle Better Together: Energy Consolidation Continues US Natural Gas Prices: Winter Weather, Prices, and Production U.S. LNG Projects Advance Even as Global Prices Slump Global LNG Market Poised for Long-Term Growth Canadian LNG Projects Advance to Meet Asian Demand Williams (WMB) and the Golden Age of Natural Gas MLPs and the Fastest-Growing Hydrocarbon You’ve Not Heard Of Propane Helps Fuel Midstream/MLP Growth MLPs and MLP ETFs: Not Just Income, but Tax-Deferred Income Vettafi.com is owned by VettaFi LLC (“VettaFi”).
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710934.0
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2023-12-16 00:00:00 UTC
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Chubb (CB) Stock Rises 14% in 6 Months: More Upside Left?
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https://www.nasdaq.com/articles/chubb-cb-stock-rises-14-in-6-months%3A-more-upside-left
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Chubb Limited’s CB shares have gained 13.9% in the past six months, outperforming the industry’s 5.8% growth. The Finance sector and S&P 500 composite have risen 10.4% and 6.8%, respectively, in the said time frame. With a market capitalization of $89.9 billion, the average volume of shares traded in the last three months was 1.9 million.
A compelling portfolio, strong renewal retention, positive rate increases, strategic initiatives to fuel profitability and solid capital position continue to drive this Zacks Rank #2 (Buy) insurer. Return on equity in the trailing 12 months was 14.3%, better than the industry average of 7.2%.
The insurer has a decent history of delivering an earnings surprise in each of the last three reported quarters of 2023. Earnings of this insurer grew 10.6% in the last five years.
It has a VGM Score of B. This helps to identify stocks with the most attractive value, growth and momentum.
Image Source: Zacks Investment Research
Can CB Retain the Momentum?
The Zacks Consensus Estimate for CB’s 2024 earnings is pegged at $20.61 per share, indicating a 7.4% increase from the year-ago figure on 7.3% higher revenues of $52.7 billion. The expected long-term earnings growth rate is pegged at 10%.
Chubb’s growth strategy encompasses increasing focus on capitalizing on the potential of middle-market businesses (both domestic and international) and enhancing traditional core packages and specialty products.
Chubb is growing through mergers and acquisitions. The addition of Cigna’s life and non-life insurance companies expands its presence and advances long-term growth opportunities in Asia. The company also intends to buy an additional stake in Huatai Group in the fourth quarter to bring its ownership between 83% and 86%. With China being the second largest insurance market after the United States, management expects Huatai to contribute to Chubb’s revenues and earnings significantly.
Acquisitions have improved premium revenues. Premiums should also benefit from commercial P&C rate increases, new business and strong renewal retention.
On the back of a solid investment portfolio and a positive operating cash flow coupled with an improving rate environment, investment income should grow. Management estimates investment income to be between $1.435 billion and $1.45 billion and continued growth thereafter.
CB has increased dividends in the last 30 years. It has a dividend yield of 1.6%, better than the industry average of 0.3%. This makes the stock an attractive pick for yield-seeking investors. It also has $5 billion remaining under its share buyback authorization.
The company has a Value Score of A. This style score helps find the most attractive value stocks. Back-tested results have shown that stocks with a Value Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or #2, offer better returns.
The Zacks Consensus Estimate for 2023 and 2024 earnings has moved 7.8% and 3.3% north, respectively, in the past 30 days, reflecting analysts’ optimism.
Other Stocks to Consider
Some other top-ranked stocks from the same space are CNA Financial Corporation CNA, W.R. Berkley Corporation WRB and Berkshire Hathaway (BRK.B)
CNA Financial delivered a trailing four-quarter average earnings surprise of 9.24%. The stock has gained 2.1% year to date. It sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for CNA’s 2023 and 2024 earnings indicates a year-over-year increase of 14.8% and 7.4%, respectively. The expected long-term earnings growth is 5%. The consensus estimate for 2023 and 2024 earnings has moved up 2.6% and 6.5%, respectively, in the past 60 days.
W.R. Berkley’s earnings surpassed estimates in three of the last four quarters while missing in one, the average being 4.35%. The stock has gained 21.6% in the past six months. It currently sports Zacks Rank #1.
The Zacks Consensus Estimate for WRB’s 2023 and 2024 earnings implies a year-over-year rise of 9.6% and 20.2%, respectively. The expected long-term earnings growth rate is 9%. The consensus estimate for WRB’s 2023 and 2024 earnings has moved up 1 cents and 3 cents respectively, in the past 30 days.
Berkshire delivered a trailing four-quarter average earnings surprise of 0.20%. Year to date, the stock has gained 18.8%. It carries a Zacks Rank #2.
The Zacks Consensus Estimate for BRK.B’s 2023 and 2024 earnings indicates a year-over-year increase of 17.1% and 11.1%, respectively. The expected long-term earnings growth rate is 7%. The consensus estimate for BRK.B’s 2023 and 2024 earnings has moved up 0.8% and 0.9%, respectively, in the past 30 days.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Chubb Limited (CB) : Free Stock Analysis Report
W.R. Berkley Corporation (WRB) : Free Stock Analysis Report
Berkshire Hathaway Inc. (BRK.B) : Free Stock Analysis Report
CNA Financial Corporation (CNA) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Zacks Consensus Estimate for CB’s 2024 earnings is pegged at $20.61 per share, indicating a 7.4% increase from the year-ago figure on 7.3% higher revenues of $52.7 billion. Chubb’s growth strategy encompasses increasing focus on capitalizing on the potential of middle-market businesses (both domestic and international) and enhancing traditional core packages and specialty products. With China being the second largest insurance market after the United States, management expects Huatai to contribute to Chubb’s revenues and earnings significantly.
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Other Stocks to Consider Some other top-ranked stocks from the same space are CNA Financial Corporation CNA, W.R. Berkley Corporation WRB and Berkshire Hathaway (BRK.B) CNA Financial delivered a trailing four-quarter average earnings surprise of 9.24%. Click to get this free report Chubb Limited (CB) : Free Stock Analysis Report W.R. Berkley Corporation (WRB) : Free Stock Analysis Report Berkshire Hathaway Inc. (BRK.B) : Free Stock Analysis Report CNA Financial Corporation (CNA) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The Zacks Consensus Estimate for CB’s 2024 earnings is pegged at $20.61 per share, indicating a 7.4% increase from the year-ago figure on 7.3% higher revenues of $52.7 billion. The Zacks Consensus Estimate for CNA’s 2023 and 2024 earnings indicates a year-over-year increase of 14.8% and 7.4%, respectively. Click to get this free report Chubb Limited (CB) : Free Stock Analysis Report W.R. Berkley Corporation (WRB) : Free Stock Analysis Report Berkshire Hathaway Inc. (BRK.B) : Free Stock Analysis Report CNA Financial Corporation (CNA) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Chubb Limited’s CB shares have gained 13.9% in the past six months, outperforming the industry’s 5.8% growth. The Zacks Consensus Estimate for CB’s 2024 earnings is pegged at $20.61 per share, indicating a 7.4% increase from the year-ago figure on 7.3% higher revenues of $52.7 billion. Back-tested results have shown that stocks with a Value Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or #2, offer better returns.
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710935.0
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2023-12-16 00:00:00 UTC
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Europe revokes marketing authorization for generic versions of Biogen's MS drug
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https://www.nasdaq.com/articles/europe-revokes-marketing-authorization-for-generic-versions-of-biogens-ms-drug
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Adds background in paragraphs 2 to 5
Dec 19 (Reuters) - Biogen Inc BIIB.O said on Tuesday the European Commission has revoked the marketing authorization for generic versions of its multiple sclerosis drug Tecfidera held by the firms Accord, Neuraxpharm, Polpharma and Teva TEVA.TA.
While the patent for Biogen's drug has expired in the United States, it had scored a win in Europe in March after the EU's Court of Justice blocked generic versions of Tecfidera in the region.
Biogen said in May that it believed Tecfidera has market protection in Europe until February 2025.
Tecfidera, the company's top-selling multiple sclerosis, has been under pressure from intense competition in the US.
(Reporting by Khushi Mandowara in Bengaluru; Editing by Shailesh Kuber)
((Khushi.Mandowara@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Adds background in paragraphs 2 to 5 Dec 19 (Reuters) - Biogen Inc BIIB.O said on Tuesday the European Commission has revoked the marketing authorization for generic versions of its multiple sclerosis drug Tecfidera held by the firms Accord, Neuraxpharm, Polpharma and Teva TEVA.TA. While the patent for Biogen's drug has expired in the United States, it had scored a win in Europe in March after the EU's Court of Justice blocked generic versions of Tecfidera in the region. Tecfidera, the company's top-selling multiple sclerosis, has been under pressure from intense competition in the US.
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Adds background in paragraphs 2 to 5 Dec 19 (Reuters) - Biogen Inc BIIB.O said on Tuesday the European Commission has revoked the marketing authorization for generic versions of its multiple sclerosis drug Tecfidera held by the firms Accord, Neuraxpharm, Polpharma and Teva TEVA.TA. While the patent for Biogen's drug has expired in the United States, it had scored a win in Europe in March after the EU's Court of Justice blocked generic versions of Tecfidera in the region. Biogen said in May that it believed Tecfidera has market protection in Europe until February 2025.
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Adds background in paragraphs 2 to 5 Dec 19 (Reuters) - Biogen Inc BIIB.O said on Tuesday the European Commission has revoked the marketing authorization for generic versions of its multiple sclerosis drug Tecfidera held by the firms Accord, Neuraxpharm, Polpharma and Teva TEVA.TA. While the patent for Biogen's drug has expired in the United States, it had scored a win in Europe in March after the EU's Court of Justice blocked generic versions of Tecfidera in the region. (Reporting by Khushi Mandowara in Bengaluru; Editing by Shailesh Kuber) ((Khushi.Mandowara@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Adds background in paragraphs 2 to 5 Dec 19 (Reuters) - Biogen Inc BIIB.O said on Tuesday the European Commission has revoked the marketing authorization for generic versions of its multiple sclerosis drug Tecfidera held by the firms Accord, Neuraxpharm, Polpharma and Teva TEVA.TA. While the patent for Biogen's drug has expired in the United States, it had scored a win in Europe in March after the EU's Court of Justice blocked generic versions of Tecfidera in the region. Biogen said in May that it believed Tecfidera has market protection in Europe until February 2025.
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710936.0
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2023-12-16 00:00:00 UTC
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Boeing Receives Order From Lufthansa Group For Up To 100 737 MAX Jets
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https://www.nasdaq.com/articles/boeing-receives-order-from-lufthansa-group-for-up-to-100-737-max-jets
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(RTTNews) - Aerospace and defense major Boeing Co. (BA) Tuesday announced that they have received an order of up to 100 737 Max Jets from the German airline Deutsche Lufthansa AG (DLAKY.PK, LHA.DE).
The financial details of the order have not been divulged.
The order includes 40 737-8 airplanes with 60 options. The airline retired its last 737 in 2016 as part of its group-wide fleet modernization program.
The 737 MAX is designed to reduce CO2 emissions by 20 percent and has a 50 percent smaller noise footprint compared to older-generation airplanes enabling it to support the sustainability goals of its airline partners.
Previously, Lufthansa launched the Boeing 737 in 1967, taking delivery of the first 146 aircraft until its final delivery of a 737-300 in 1995.
Currently, Lufthansa shares are trading at EUR 8.04, up 0.92 percent in Germany, and in pre-market activity, Boeing shares are trading at $263.33, up 1.12 percent on the New York Stock Exchange.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - Aerospace and defense major Boeing Co. (BA) Tuesday announced that they have received an order of up to 100 737 Max Jets from the German airline Deutsche Lufthansa AG (DLAKY.PK, LHA.DE). The airline retired its last 737 in 2016 as part of its group-wide fleet modernization program. The 737 MAX is designed to reduce CO2 emissions by 20 percent and has a 50 percent smaller noise footprint compared to older-generation airplanes enabling it to support the sustainability goals of its airline partners.
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(RTTNews) - Aerospace and defense major Boeing Co. (BA) Tuesday announced that they have received an order of up to 100 737 Max Jets from the German airline Deutsche Lufthansa AG (DLAKY.PK, LHA.DE). The order includes 40 737-8 airplanes with 60 options. Currently, Lufthansa shares are trading at EUR 8.04, up 0.92 percent in Germany, and in pre-market activity, Boeing shares are trading at $263.33, up 1.12 percent on the New York Stock Exchange.
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(RTTNews) - Aerospace and defense major Boeing Co. (BA) Tuesday announced that they have received an order of up to 100 737 Max Jets from the German airline Deutsche Lufthansa AG (DLAKY.PK, LHA.DE). The 737 MAX is designed to reduce CO2 emissions by 20 percent and has a 50 percent smaller noise footprint compared to older-generation airplanes enabling it to support the sustainability goals of its airline partners. Currently, Lufthansa shares are trading at EUR 8.04, up 0.92 percent in Germany, and in pre-market activity, Boeing shares are trading at $263.33, up 1.12 percent on the New York Stock Exchange.
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(RTTNews) - Aerospace and defense major Boeing Co. (BA) Tuesday announced that they have received an order of up to 100 737 Max Jets from the German airline Deutsche Lufthansa AG (DLAKY.PK, LHA.DE). The financial details of the order have not been divulged. The order includes 40 737-8 airplanes with 60 options.
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7dff222d-36fb-425d-8679-cdc003c2fe19
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710937.0
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2023-12-16 00:00:00 UTC
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Will Winnebago (WGO) Upset Investors This Earnings Season?
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DCOMP
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https://www.nasdaq.com/articles/will-winnebago-wgo-upset-investors-this-earnings-season
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nan
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nan
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Winnebago Industries WGO is scheduled to release first-quarter fiscal 2024 results on Dec 20, before the opening bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share and revenues is pegged at $1.25 and $738.6 million, respectively.
The Zacks Consensus Estimate for Winnebago’s fiscal first-quarter earnings per share has been revised downward by 17 cents in the past 60 days. The bottom-line projection implies a year-over-year decline of 40%. The Zacks Consensus Estimate for revenues also suggests a year-over-year contraction of 22.4%.
One of the leading recreational vehicle (RV) manufacturers in the world, Winnebago, posted better-than-expected earnings for the last reported quarter on higher-than-anticipated EBITDA from Towable RV and Marine segments. The bottom line, however, plunged 47.4% year over year.
The company surpassed the Zacks Consensus Estimate in the trailing four quarters, the average being 24.6%. However, things aren’t looking rosy for the quarter-to-be reported.
Winnebago Industries, Inc. Price and EPS Surprise
Winnebago Industries, Inc. price-eps-surprise | Winnebago Industries, Inc. Quote
Factors at Play
High interest rates are likely to have acted as spoilsport for Winnebago, which belongs to a highly cyclical industry. Customers are being prompted to reduce or put off discretionary expenses, thereby resulting in a decline in backlog orders for Winnebago, which might negatively impact revenues. In the last reported quarter, the company's backlog for the Towable RV, Motorhome RV and Marine segments reflected a year-over-year decline of 64%, 60% and 38%, respectively. As it is, WGO expects the first half of fiscal 2024 to be particularly challenging.
Manufacturing inefficiencies, logistical constraints, a tough labor market and inflationary input cost pressure might have weighed on margins. Also, Winnebago has been witnessing increasing selling, general and distribution expenses as a percent of revenues over the past several quarters. The trend is expected to have continued, thereby limiting the operating profits of the firm.
Discouragingly, our forecast for Motorhome RV, Towable RV and Marine deliveries indicates a decline of 36%, 21% and 16%, respectively. We expect adjusted EBITDA for Motorhome RV, Towable RV and Marine units to be $25.1 million, $29.7 million and $10.2 million, which implies a year-over-year contraction of 50%, 18.3% and 44.9%, respectively.
What Does Our Model Say?
Our proven model does not conclusively predict an earnings beat for Winnebago in the to-be-reported quarter, as it doesn’t have the right combination of the two key ingredients. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That’s not the case here.
Earnings ESP: WGO has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate is on par with the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Winnebago currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank stocks here.
What Did Thor’s Latest Quarterly Report Unveil?
Thor Industries, Inc. THO reported earnings of 99 cents per share for first-quarter fiscal 2024 (ended Oct 31, 2023), which surpassed the Zacks Consensus Estimate of 87 cents. The bottom line tumbled 60.9% from the year-ago quarter’s earnings of $2.53 per share. The company registered revenues of $2,500.8 million for the quarter under review, lagging the Zacks Consensus Estimate of $2,510.4 million. The top line declined 19.5% year over year.
As of Oct 31, 2023, Thor had cash and cash equivalents of $425.8 million and long-term debt of $1,271.9 million. During the first quarter of fiscal 2024, THO repurchased $30 million of common stock at an average price of $91.61. Thor has reaffirmed its full-year guidance for fiscal 2024. It projects its full-year consolidated net sales in the range of $10.5-$11 billion. The consolidated gross profit margin is expected to be in the range of 14.5-15%. Earnings per share are expected to be in the range of $6.25-$7.25.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Thor Industries, Inc. (THO) : Free Stock Analysis Report
Winnebago Industries, Inc. (WGO) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Zacks Consensus Estimate for Winnebago’s fiscal first-quarter earnings per share has been revised downward by 17 cents in the past 60 days. Customers are being prompted to reduce or put off discretionary expenses, thereby resulting in a decline in backlog orders for Winnebago, which might negatively impact revenues. Our proven model does not conclusively predict an earnings beat for Winnebago in the to-be-reported quarter, as it doesn’t have the right combination of the two key ingredients.
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In the last reported quarter, the company's backlog for the Towable RV, Motorhome RV and Marine segments reflected a year-over-year decline of 64%, 60% and 38%, respectively. Thor Industries, Inc. THO reported earnings of 99 cents per share for first-quarter fiscal 2024 (ended Oct 31, 2023), which surpassed the Zacks Consensus Estimate of 87 cents. Click to get this free report Thor Industries, Inc. (THO) : Free Stock Analysis Report Winnebago Industries, Inc. (WGO) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Winnebago Industries, Inc. Price and EPS Surprise Winnebago Industries, Inc. price-eps-surprise | Winnebago Industries, Inc. Quote Factors at Play High interest rates are likely to have acted as spoilsport for Winnebago, which belongs to a highly cyclical industry. Thor Industries, Inc. THO reported earnings of 99 cents per share for first-quarter fiscal 2024 (ended Oct 31, 2023), which surpassed the Zacks Consensus Estimate of 87 cents. Click to get this free report Thor Industries, Inc. (THO) : Free Stock Analysis Report Winnebago Industries, Inc. (WGO) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share and revenues is pegged at $1.25 and $738.6 million, respectively. Thor Industries, Inc. THO reported earnings of 99 cents per share for first-quarter fiscal 2024 (ended Oct 31, 2023), which surpassed the Zacks Consensus Estimate of 87 cents. Earnings per share are expected to be in the range of $6.25-$7.25.
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aada47c0-2e15-4a3b-9e66-48c1be2b26b4
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710938.0
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2023-12-16 00:00:00 UTC
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Here's Why You Should Retain Tandem Diabetes (TNDM) Now
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DCOMP
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https://www.nasdaq.com/articles/heres-why-you-should-retain-tandem-diabetes-tndm-now-3
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nan
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nan
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Tandem Diabetes Care, Inc. TNDM is well-poised for growth in the coming quarters due to its series of innovative product offerings, which continue to generate remarkable enthusiasm. The company’s expansion efforts in the booming diabetes market are highly encouraging. Strong solvency is an added upside.
However, Tandem Diabetes heavily relies on the market acceptance of insulin pumps and related products. The company is also grappling with macroeconomic challenges, which adds to the worry.
In the past year, this Zacks Rank #3 (Hold) stock has declined 32% compared to the 4% growth of the industry and a 23.9% rise of the S&P 500 composite.
The renowned medical device company has a market capitalization of $1.87 billion. Tandem Diabetes projects an estimated earnings growth rate of 25.7% for 2024 compared with the 21.9% of the industry. In the trailing four quarters, TNDM delivered an average earnings surprise of 18.3%.
Let’s delve deeper.
Tailwinds
Expanding Diabetes Market: Tandem Diabetes' strategic focus in the near and long term is to meaningfully expand the adoption of the insulin pump by people with type 1 diabetes across all its markets and produce more evolved products and services to attract people living with type 2 diabetes who use insulin intensive therapy.
TNDM sees a great opportunity in the Type 1 market, wherein more than one million people in the United States are currently devoid of the benefits of insulin pump therapy and an even larger population in internationally served markets. Moreover, the company’s research indicates more than two million people with type 2 diabetes in the United States are already insulin-dependent and do not use a pump.
Image Source: Zacks Investment Research
Advancements in Product Innovation: Tandem Diabetes is currently undergoing a transitional time as it prepares for the next phase of growth through its innovative portfolio. Recently, it marked the launch of Tandem Source — a diabetes management platform for insulin pump users and healthcare providers. The company also introduced the Dexcom G7 Continuous Glucose Monitoring integrated t:slim X2 insulin pump software in the United States.
The company’s new FDA-approved technology, Tandem Mobi, is leading the way in creating a whole new category of devices for insulin therapy. Moreover, the t:slim X2 with Control-IQ technology continues to stand out as the number-one rated automated insulin delivery system, as evidenced by third-party research and the company’s internal customer satisfaction surveys.
Strong Solvency: On the liquidity front, Tandem Diabetes looks well-placed. The company exited the third quarter of 2023 with cash and cash equivalents and short-term investments of $498.2 million, while it did not report any short-term payable debt. The total debt of $285 million at the third quarter-end was also much less than the corresponding cash balance.
Headwinds
Heavy Dependence on Insulin Pumps: Tandem Diabetes generates a substantial portion of revenues from the sale of insulin pumps. Hence, any factors that negatively impact the sale of these products or cause sales growth at a slower pace could adversely affect the company’s business, financial condition and operating results.
Macroeconomic Headwinds Persist: Tandem Diabetes continues to navigate global macroeconomic challenges, such as recessionary concerns, changes in discretionary spending and increased interest rates, which have impacted its customers’ purchasing decisions and the buying patterns of distributors. The resulting effects of these macroeconomic factors, along with high inflation, have led to the disruption of the company’s relationship with suppliers, third-party manufacturers, healthcare providers, distributors and overall customers.
Estimate Trend
The Zacks Consensus Estimate for Tandem Diabetes’ 2023 loss per share has remained constant at $1.83 in the past 30 days.
The Zacks Consensus Estimate for the company’s 2023 revenues is pegged at $761.4 million. This suggests a 4.9% fall from the year-ago reported number.
Key Picks
Some better-ranked stocks in the broader medical space are Haemonetics HAE, Insulet PODD and DexCom DXCM.
Haemonetics has an estimated earnings growth rate of 27.1% for fiscal 2024 compared with the industry’s 17.2%. HAE’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 19.39%. Its shares have rallied 12.6% against the industry’s 1.3% fall in the past year.
HAE carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Insulet, sporting a Zacks Rank #1 at present, has a long-term estimated earnings growth rate of 41.5% compared with the industry’s 12.2%. Shares of the company have decreased 29.8% compared with the industry’s 1.3% decline over the past year.
PODD’s earnings surpassed estimates in all of the trailing four quarters, the average surprise being 126.9%. In the last reported quarter, it delivered an average earnings surprise of 58.3%.
DexCom, carrying a Zacks Rank #2 at present, has an estimated long-term earnings growth rate of 33.6% compared with the industry’s 14.3%. Shares of DXCM have increased 9% compared with the industry’s 3.9% decline over the past year.
DXCM’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 36.4%. In the last reported quarter, it delivered an average earnings surprise of 47.1%.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Haemonetics Corporation (HAE) : Free Stock Analysis Report
DexCom, Inc. (DXCM) : Free Stock Analysis Report
Insulet Corporation (PODD) : Free Stock Analysis Report
Tandem Diabetes Care, Inc. (TNDM) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Tandem Diabetes Care, Inc. TNDM is well-poised for growth in the coming quarters due to its series of innovative product offerings, which continue to generate remarkable enthusiasm. Moreover, the t:slim X2 with Control-IQ technology continues to stand out as the number-one rated automated insulin delivery system, as evidenced by third-party research and the company’s internal customer satisfaction surveys. The resulting effects of these macroeconomic factors, along with high inflation, have led to the disruption of the company’s relationship with suppliers, third-party manufacturers, healthcare providers, distributors and overall customers.
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Image Source: Zacks Investment Research Advancements in Product Innovation: Tandem Diabetes is currently undergoing a transitional time as it prepares for the next phase of growth through its innovative portfolio. DexCom, carrying a Zacks Rank #2 at present, has an estimated long-term earnings growth rate of 33.6% compared with the industry’s 14.3%. Click to get this free report Haemonetics Corporation (HAE) : Free Stock Analysis Report DexCom, Inc. (DXCM) : Free Stock Analysis Report Insulet Corporation (PODD) : Free Stock Analysis Report Tandem Diabetes Care, Inc. (TNDM) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Tandem Diabetes projects an estimated earnings growth rate of 25.7% for 2024 compared with the 21.9% of the industry. Tailwinds Expanding Diabetes Market: Tandem Diabetes' strategic focus in the near and long term is to meaningfully expand the adoption of the insulin pump by people with type 1 diabetes across all its markets and produce more evolved products and services to attract people living with type 2 diabetes who use insulin intensive therapy. Click to get this free report Haemonetics Corporation (HAE) : Free Stock Analysis Report DexCom, Inc. (DXCM) : Free Stock Analysis Report Insulet Corporation (PODD) : Free Stock Analysis Report Tandem Diabetes Care, Inc. (TNDM) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Headwinds Heavy Dependence on Insulin Pumps: Tandem Diabetes generates a substantial portion of revenues from the sale of insulin pumps. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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cf23eea6-b6cb-4eb2-92b6-82e612dbeb2c
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710939.0
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2023-12-16 00:00:00 UTC
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Roblox: Building a Gaming Empire, Brick by Brick
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DCOMP
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https://www.nasdaq.com/articles/roblox%3A-building-a-gaming-empire-brick-by-brick
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nan
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nan
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Roblox (NYSE: RBLX) is an online platform that has seen a meteoric rise in popularity, attracting significant attention from investors. Think back to when you were a child and played with Legos. Now imagine a virtual world made entirely of them, where you can not only play but also create experiences, share them with friends, and even make money. News about Roblox has been in the spotlight lately for its aggressive financial goals and as the defendant in a lawsuit. Let’s take a closer look at Roblox and see what is happening with the online block-building empire.
Building your own playground
Roblox isn't just a game it is a thriving online platform that empowers users to create, play, and connect in a dynamic virtual world. Roblox offers a malleable canvas where anyone, from casual enthusiasts to experienced developers, can unleash their creativity and build interactive experiences spanning genres like obstacle courses, role-playing adventures, social hangouts, and even educational simulations.
This user-generated content (UGC) ecosystem lies at the heart of Roblox's appeal. The intuitive Roblox Studio building tool democratizes development, making it accessible even to novices and fostering diverse experiences for players to explore. Roblox transcends simple entertainment, transforming into a vibrant social hub where friends can collaborate, chat, and express themselves through customizable avatars adorned with virtual accessories.
But Roblox's allure extends beyond its creative and social aspects. It has a robust virtual economy fueled by the in-platform Robux currency. This in-platform currency unlocks monetization opportunities for both players and creators. Robux purchases empower players to enhance their avatars, access exclusive content, and support their favorite developers through virtual tipping. On the other hand, creators can leverage Robux as a revenue stream by charging entry fees for their experiences or selling virtual items within them.
A stock on the rise
After a period of turbulence, Roblox has sparked renewed investor interest with a series of positive developments. Analysts are singing a different tune, issuing upgrades and increasing price targets due to improvements in its financial performance. The company is demonstrating more assertive fiscal discipline by curtailing expenditures, paving the way for potential near-term profitability. Several funds, including the Schwab Charitable Fund are growing their holdings in Roblox.
Management has laid out ambitious growth plans, targeting robust user expansion and margin improvement over the next few years. This clear vision for the platform's future success is resonating with investors. With big investors shifting from net selling to net buying of RBLX shares in recent quarters, there's a palpable increase in institutional confidence in the platform's potential.
Unlike many "metaverse" companies that faded quickly, Roblox isn’t dead. The company stands out in the entertainment sector because of its established platform, dedicated user base, and diverse monetization channels. This focus on tangible strengths attracts investor interest beyond mere trend-chasing.
While challenges remain, including legal matters and a competitive landscape, Roblox's recent developments have undoubtedly piqued investor interest. The platform's evolving financial narrative, clear growth plans, and rising institutional backing suggest a potential turning point for RBLX, warranting close attention from investors looking for promising opportunities in the digital entertainment space.
Building Blocks for the Future
While Roblox has experienced significant growth in recent years, the company faces a number of challenges. One challenge is competition from established gaming giants such as Activision Blizzard (NASDAQ: ATVI) and Electronic Arts (NASDAQ: EA). These companies have a large user base and a deep library of games, which makes it difficult for Roblox to compete with them. New virtual world platforms such as Fortnite and Minecraft are also emerging as competitors, which could further erode Roblox's market share.
Another challenge is the need to optimize the mobile experience. Roblox is primarily a PC-based platform, but mobile gaming is becoming increasingly popular. If Roblox wants to reach a wider audience, it needs to make sure that its mobile experience is top-notch.
Roblox is facing a shareholder lawsuit alleging revenue manipulation. The lawsuit claims that Roblox overstated its revenue by inflating the value of Robux, which is the in-game currency that users can purchase. If the lawsuit is successful, it could damage Roblox's reputation and make it more difficult for the company to raise capital in the future.
Despite these obstacles, Roblox’s solid foundation of strong fundamentals, engaged user base, and strategic focus will allow it to navigate these challenges and achieve future success. The platform’s ability to continuously innovate, maintain its competitive edge, and address user needs while diversifying its offerings will ultimately determine its continued trajectory.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Roblox offers a malleable canvas where anyone, from casual enthusiasts to experienced developers, can unleash their creativity and build interactive experiences spanning genres like obstacle courses, role-playing adventures, social hangouts, and even educational simulations. Roblox transcends simple entertainment, transforming into a vibrant social hub where friends can collaborate, chat, and express themselves through customizable avatars adorned with virtual accessories. The platform's evolving financial narrative, clear growth plans, and rising institutional backing suggest a potential turning point for RBLX, warranting close attention from investors looking for promising opportunities in the digital entertainment space.
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Roblox (NYSE: RBLX) is an online platform that has seen a meteoric rise in popularity, attracting significant attention from investors. The platform's evolving financial narrative, clear growth plans, and rising institutional backing suggest a potential turning point for RBLX, warranting close attention from investors looking for promising opportunities in the digital entertainment space. Building Blocks for the Future While Roblox has experienced significant growth in recent years, the company faces a number of challenges.
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Roblox (NYSE: RBLX) is an online platform that has seen a meteoric rise in popularity, attracting significant attention from investors. Building your own playground Roblox isn't just a game it is a thriving online platform that empowers users to create, play, and connect in a dynamic virtual world. Building Blocks for the Future While Roblox has experienced significant growth in recent years, the company faces a number of challenges.
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Roblox (NYSE: RBLX) is an online platform that has seen a meteoric rise in popularity, attracting significant attention from investors. Now imagine a virtual world made entirely of them, where you can not only play but also create experiences, share them with friends, and even make money. Building Blocks for the Future While Roblox has experienced significant growth in recent years, the company faces a number of challenges.
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8d6a34a4-00e3-450a-bf19-fae1ddc1bb4d
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710940.0
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2023-12-16 00:00:00 UTC
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Who Will Win This $1.5 Trillion Market Opportunity in 2024?
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DCOMP
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https://www.nasdaq.com/articles/who-will-win-this-%241.5-trillion-market-opportunity-in-2024
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nan
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nan
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Considering the largest company in the world by market cap (Apple) has $383 billion in annual sales, a $1.5 trillion market opportunity is massive. So what is this $1.5 trillion opportunity we speak of? It's cloud computing.
Cloud computing is a broad industry, but essentially, it's one company renting computing space and power from another. The current leaders of this large opportunity are Amazon (NASDAQ: AMZN) with its Amazon Web Services (AWS) product, Microsoft (NASDAQ: MSFT) Azure, and Alphabet's (NASDAQ: GOOG) (NASDAQ: GOOGL) Google Cloud.
These are some of the biggest names in tech, and all can put out innovative products. But which will conquer the cloud computing market in 2024?
Amazon is winning the battle
As of Q2 2023, the cloud computing market share looks like this, according to Synergy Research Group:
COMPANY MARKET SHARE
Amazon 32%
Microsoft 22%
Alphabet 11%
Data source: Statista and Synergy Research Group. Table by author.
No other company has more than a 4% market share. Amazon, Microsoft, and Alphabet collectively controls about two-thirds of the cloud infrastructure market in total.
So why is cloud computing so important?
Cloud computing allows customers to scale their computing power easily. When companies set out to collect data or run a website, they may not know how much power they'll need a couple of years from now. This makes purchasing an in-house data center risky, as they may buy too much or not enough power. But, if the workload is offloaded to the cloud, they can scale up or down easily.
Another area where cloud computing is important is artificial intelligence (AI) workloads. Creating an AI model takes a lot of computing power, but many companies don't need a supercomputer once they've created their models. Instead, they can rent the required power from one of these three providers and have a cost-effective way to access extreme computing power.
The cloud computing market opportunity is massive, as many companies are switching away from in-house computing. According to Grand View Research, this will power the $619 billion market opportunity in 2023 to $1.55 trillion by 2030.
And if any of these companies can maintain their market share, the results will be dramatic.
Cloud computing will have a drastic effect on each company's finances
AWS has had $87.9 billion in sales over the past month. If it can capture half of the available market opportunity by 2030 and maintain its 33% market share, that would bring AWS revenue up to $256 billion -- about triple where it is now. Furthermore, this is high-margin revenue, and with AWS's 30% operating margin, that would create $77.4 billion in operating profit for Amazon. For reference, Amazon has produced $26 billion in operating income over the past 12 months.
That's just one example, but it's pretty obvious how much of a boost cloud computing will be for all three in the coming years.
So which stock is expected to gain the most in 2024?
Azure and Google Cloud had a strong 2023, as revenue rose in the mid- to high-20% range every quarter. AWS hasn't seen the same success, as its revenue grew 12% in Q3, which is about the same pace it has grown the entire year.
That's a potential problem for Amazon, as it is conceding market share while the other two are capturing it. However, 2024 should be different.
The decline in growth for AWS was caused by customers optimizing their cloud spending. While the others experienced the same optimization trend, it wasn't near Amazon's level. However, management believes this trend is nearing an end, as they see the optimization activities declining and new workloads coming online.
As a result, I think Amazon Web Services will have a better year, as it will be up against easy comparison versus the other two's difficult ones. Still, I don't think investors are worried about which of these three will win outright, as they all will succeed as long as they are invested in the cloud.
So as long as you own one of these businesses, you'll be well positioned to capitalize on the shift to the cloud.
Should you invest $1,000 in Amazon right now?
Before you buy stock in Amazon, consider this:
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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. Keithen Drury has positions in Alphabet and Amazon. The Motley Fool has positions in and recommends Alphabet, Amazon, and Microsoft. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Cloud computing will have a drastic effect on each company's finances AWS has had $87.9 billion in sales over the past month. However, management believes this trend is nearing an end, as they see the optimization activities declining and new workloads coming online. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors.
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The current leaders of this large opportunity are Amazon (NASDAQ: AMZN) with its Amazon Web Services (AWS) product, Microsoft (NASDAQ: MSFT) Azure, and Alphabet's (NASDAQ: GOOG) (NASDAQ: GOOGL) Google Cloud. Amazon 32% Microsoft 22% Alphabet 11% Data source: Statista and Synergy Research Group. Before you buy stock in Amazon, 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 Amazon wasn't one of them.
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The current leaders of this large opportunity are Amazon (NASDAQ: AMZN) with its Amazon Web Services (AWS) product, Microsoft (NASDAQ: MSFT) Azure, and Alphabet's (NASDAQ: GOOG) (NASDAQ: GOOGL) Google Cloud. The cloud computing market opportunity is massive, as many companies are switching away from in-house computing. Before you buy stock in Amazon, 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 Amazon wasn't one of them.
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Cloud computing allows customers to scale their computing power easily. The cloud computing market opportunity is massive, as many companies are switching away from in-house computing. Before you buy stock in Amazon, 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 Amazon wasn't one of them.
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710941.0
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2023-12-16 00:00:00 UTC
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Campbell Soup (CPB) Shows Strategic Resilience Amid Challenges
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https://www.nasdaq.com/articles/campbell-soup-cpb-shows-strategic-resilience-amid-challenges
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Campbell Soup Company CPB has made significant progress in advancing its strategic plan, demonstrating resilience in the face of a challenging and changing consumer landscape. The company is well-positioned to capitalize on various opportunities within its portfolio to align with evolving consumer trends. CPB’s Snacks business has been performing well for a while now.
The impressive momentum, coupled with the pending acquisition of Sovos Brands, positions Campbell Soup for growth. However, the company projected a decline in volumes for the first half of fiscal 2024 on its first-quarter fiscal 2024earnings call CPB is also battling cost inflation, though it has been moderating from the year-ago period levels.
Factors Adding Flavor to CPB
On its first-quarterearnings call Campbell Soup stated that it has optimized its strategies and plans, focusing on three key areas. These include ensuring product affordability and maintaining competitive pricing within the boundaries of margin goals, sustaining marketing and innovation initiatives and adhering to a disciplined and balanced spending approach, with a focus on high return on investment (ROI) and impactful plans.
Management’s consistent execution has been noteworthy, with robust and sustained performance across the supply chain, successful innovations, effective marketing programs and recent share trend improvements. Management expects these focus areas to aid sequential improvement throughout the year, driving momentum in revenues, volumes, market share and profit margins, especially into the second half of fiscal 2024.
Image Source: Zacks Investment Research
This Zacks Rank #3 (Hold) company expects modest earnings and margin improvements in fiscal 2024, mainly weighted to the second half. This reflects a moderating inflationary landscape, together with ongoing productivity enhancements. For fiscal 2024, adjusted EBIT is forecasted to be up 3-5%. Adjusted EPS is envisioned to increase 3-5% to the $3.09-$3.15 band.
Campbell Soup’s Snacks business has been a driver, which formed 44.2% of total sales in the first quarter of fiscal 2024. Net sales in the division rose 1% on an organic basis, attributed to sales of power brands, which rose 5%.
Sales growth was fueled by a rise in cookies and crackers, specifically Goldfish crackers and Lance sandwich crackers. Favorable net price realization contributed to the upside, which was partially offset by volume/mix declines. Management’s DSD transformation initiative is expected to fuel further growth and margins in the Snacks division.
Cost Headwinds & More
Campbell Soup has been witnessing cost inflation for a while. The company expects core inflation to stay in the low-single-digit range in fiscal 2024 compared with 12% in fiscal 2023. Apart from this, adjusted marketing and selling expenses rose 9% to $220 million in the first quarter due to a 6% increase in advertising and consumer promotion expenses. The persistence of these trends could hurt margins.
Apart from this, the company is navigating a volatile consumer landscape. This affected first-quarter fiscal 2024 results, wherein organic net sales dipped 1% due to the soft volume/mix (down 5%), somewhat offset by net price realization (up 3%). For fiscal 2024, organic sales growth is likely to come between flat and an increase of 2%. Although management expects sequential improvements in fiscal 2024, it expects volumes to decline in the first half.
Wrapping Up
Despite the abovementioned headwinds, Campbell Soup looks well-placed due to its strategic priorities and savings plan. The company’s strategy of concentrating on supply-chain efficiencies, along with curtailing costs and reinvesting part of these savings in areas with high-growth potential, is noteworthy.
Through the first quarter of fiscal 2024, CPB generated $895 million in savings under its multi-year cost-saving program, including Snyder’s-Lance synergies. Management remains on track to deliver savings worth $1 billion by the fiscal 2025-end.
The company’s shares have decreased 2.8% in the past six months compared with the industry’s decline of 7.3%.
3 Appetizing Picks
The Kraft Heinz Company KHC, a food and beverage product company, currently carries a Zacks Rank #2 (Buy). KHC has a trailing four-quarter earnings surprise of 9.9%, on average. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Kraft Heinz’s current financial-year sales and earnings suggests growth of 1.1% and 6.5%, respectively, from the year-ago reported numbers.
Celsius Holdings, Inc. CELH, which develops, processes, markets, distributes and sells functional drinks and liquid supplements, holds a Zacks Rank #2. CELH has a trailing four-quarter earnings surprise of 110.9%, on average.
The Zacks Consensus Estimate for Celsius Holdings’ current financial-year sales and earnings suggests growth of 98.5% and 184.1%, respectively, from the year-ago reported numbers.
Vital Farms Inc. VITL offers a range of produced pasture-raised foods. It currently has a Zacks Rank #2. VITL has a trailing four-quarter earnings surprise of 145%, on average.
The Zacks Consensus Estimate for Vital Farms’ current financial-year sales suggests growth of 29.4% from the year-ago reported figure.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Campbell Soup Company (CPB) : Free Stock Analysis Report
Kraft Heinz Company (KHC) : Free Stock Analysis Report
Celsius Holdings Inc. (CELH) : Free Stock Analysis Report
Vital Farms, Inc. (VITL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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These include ensuring product affordability and maintaining competitive pricing within the boundaries of margin goals, sustaining marketing and innovation initiatives and adhering to a disciplined and balanced spending approach, with a focus on high return on investment (ROI) and impactful plans. Management’s consistent execution has been noteworthy, with robust and sustained performance across the supply chain, successful innovations, effective marketing programs and recent share trend improvements. Management expects these focus areas to aid sequential improvement throughout the year, driving momentum in revenues, volumes, market share and profit margins, especially into the second half of fiscal 2024.
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Image Source: Zacks Investment Research This Zacks Rank #3 (Hold) company expects modest earnings and margin improvements in fiscal 2024, mainly weighted to the second half. The Zacks Consensus Estimate for Celsius Holdings’ current financial-year sales and earnings suggests growth of 98.5% and 184.1%, respectively, from the year-ago reported numbers. Click to get this free report Campbell Soup Company (CPB) : Free Stock Analysis Report Kraft Heinz Company (KHC) : Free Stock Analysis Report Celsius Holdings Inc. (CELH) : Free Stock Analysis Report Vital Farms, Inc. (VITL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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However, the company projected a decline in volumes for the first half of fiscal 2024 on its first-quarter fiscal 2024earnings call CPB is also battling cost inflation, though it has been moderating from the year-ago period levels. Image Source: Zacks Investment Research This Zacks Rank #3 (Hold) company expects modest earnings and margin improvements in fiscal 2024, mainly weighted to the second half. Click to get this free report Campbell Soup Company (CPB) : Free Stock Analysis Report Kraft Heinz Company (KHC) : Free Stock Analysis Report Celsius Holdings Inc. (CELH) : Free Stock Analysis Report Vital Farms, Inc. (VITL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Image Source: Zacks Investment Research This Zacks Rank #3 (Hold) company expects modest earnings and margin improvements in fiscal 2024, mainly weighted to the second half. Management’s DSD transformation initiative is expected to fuel further growth and margins in the Snacks division. Apart from this, adjusted marketing and selling expenses rose 9% to $220 million in the first quarter due to a 6% increase in advertising and consumer promotion expenses.
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710942.0
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2023-12-16 00:00:00 UTC
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CANADA STOCKS-TSX futures rise ahead of inflation data
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https://www.nasdaq.com/articles/canada-stocks-tsx-futures-rise-ahead-of-inflation-data
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Dec 19 (Reuters) - Futures for Canada's main stock index rose on Tuesday as the market stretched recent gains betting that the U.S. Federal Reserve could start cutting interest rates in the early part of next year, while investors awaited domestic inflation data.
March futures on the S&P/TSX index SXFc1 were up 0.4% at 7:13 a.m. ET (1213 GMT), while their U.S. counterparts also edged higher. .N
The focus would be on Canada's consumer prices data, due at 8:30 a.m. ET, which is expected to show headline inflation at 2.9% year-on-year in November against last month's reading of 3.1%.
The Bank of Canada could start cutting interest rates next year as long as core inflation comes down as predicted, BNN Television cited Governor Tiff Macklem as saying in an interview that aired on Monday.
San Francisco Fed President Mary Daly said cuts to the U.S. central bank's benchmark rate are likely to be appropriate in 2024, the Wall Street Journal reported.
The Bank of Japan, on the other hand, maintained ultra-loose policy settings in a widely expected move.
The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE ended higher in the previous session, lifted by energy stocks.
Crude oil prices were largely steady, while prices of most base metals advanced and gold prices were muted. MET/LGOL/O/R
Meanwhile, some Canadian oil and gas producers said they will not rush to accelerate emission cuts until they see if unpopular Prime Minister Justin Trudeau survives long enough to implement his proposed oil and gas emissions cap.
Among individual stocks, refiner Imperial OilIMO.TO forecast 2024 upstream production higher than its 2023 outlook.
Brokerage CIBC downgraded automotive supplier Magna International MG.TO to "neutral" from "outperformer", while it upgraded Boyd Group Services BYD.TO to "outperformer" from "neutral".
COMMODITIES AT 7:13 a.m. ET
Gold futures GCc2: $2,031; flat GOL/
US crude CLc1: $72.4; -0.1% O/R
Brent crude LCOc1: $77.84; -0.1% O/R
($1= C$1.3383)
(Reporting by Shashwat Chauhan in Bengaluru; Editing by Shweta Agarwal)
((Shashwat.Chauhan@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Dec 19 (Reuters) - Futures for Canada's main stock index rose on Tuesday as the market stretched recent gains betting that the U.S. Federal Reserve could start cutting interest rates in the early part of next year, while investors awaited domestic inflation data. The Bank of Canada could start cutting interest rates next year as long as core inflation comes down as predicted, BNN Television cited Governor Tiff Macklem as saying in an interview that aired on Monday. San Francisco Fed President Mary Daly said cuts to the U.S. central bank's benchmark rate are likely to be appropriate in 2024, the Wall Street Journal reported.
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Dec 19 (Reuters) - Futures for Canada's main stock index rose on Tuesday as the market stretched recent gains betting that the U.S. Federal Reserve could start cutting interest rates in the early part of next year, while investors awaited domestic inflation data. The Bank of Canada could start cutting interest rates next year as long as core inflation comes down as predicted, BNN Television cited Governor Tiff Macklem as saying in an interview that aired on Monday. Crude oil prices were largely steady, while prices of most base metals advanced and gold prices were muted.
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Dec 19 (Reuters) - Futures for Canada's main stock index rose on Tuesday as the market stretched recent gains betting that the U.S. Federal Reserve could start cutting interest rates in the early part of next year, while investors awaited domestic inflation data. The Bank of Canada could start cutting interest rates next year as long as core inflation comes down as predicted, BNN Television cited Governor Tiff Macklem as saying in an interview that aired on Monday. Crude oil prices were largely steady, while prices of most base metals advanced and gold prices were muted.
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Dec 19 (Reuters) - Futures for Canada's main stock index rose on Tuesday as the market stretched recent gains betting that the U.S. Federal Reserve could start cutting interest rates in the early part of next year, while investors awaited domestic inflation data. ET (1213 GMT), while their U.S. counterparts also edged higher. ET, which is expected to show headline inflation at 2.9% year-on-year in November against last month's reading of 3.1%.
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710943.0
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2023-12-16 00:00:00 UTC
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Will Taiwan Semiconductor Be a Trillion-Dollar Stock by 2030?
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https://www.nasdaq.com/articles/will-taiwan-semiconductor-be-a-trillion-dollar-stock-by-2030
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Many components are necessary for complicated devices like cellphones and graphics processing units, and none are more vital than the microscopic chips that provide the computing power. Among the chip manufacturers, none is more important than Taiwan Semiconductor (NYSE: TSM), the world's largest contract chip manufacturer.
It's already a monster with a $536 billion market cap. But could it grow enough to reach $1 trillion by 2030? Let's take a look.
Taiwan Semiconductor has some big-name clients
As the name implies, Taiwan Semiconductor (also commonly referred to as TSMC) is based in Taiwan. However, it's made several investments in the U.S., most notably its chip plant in Arizona. While this facility has had multiple problems starting up, it will eventually provide an additional source for these vital chips.
Among the reasons TSMC has been so successful is due to its best-in-class technology. Likewise, Samsung and Intel are among its chief competitors; however, they compete with many of Taiwan Semiconductor's largest clients, like Apple, Nvidia, and AMD. These companies don't want to give their business to competitors, so they'd rather give it to a neutral third party like Taiwan Semiconductor.
When it comes to technology, Samsung and TSMC have left Intel in the dust. Taiwan Semiconductor is ramping up its production of 3 nm (nanometer) chips and is scheduled to start producing 2 nm products in 2025. Additionally, there are rumors of 1.4 nm chips being developed after that. Taiwan Semiconductor has a built-in revenue escalator every couple of years when it launches new products.
Upgraded chips and the demand for technology will push TSMC higher over the next decade. But will it be enough for the company to cross the $1 trillion valuation threshold?
The stock trades at a discount to the market
At its peak in early 2022, Taiwan Semiconductor held a market cap of nearly $730 billion. However, as chip demand subsided in 2022, the stock came tumbling down. This has weighed on TSMC's financials throughout 2023, although management believes the chip supply glut has nearly bottomed.
This sets the stage for a strong rebound in 2024 and beyond, as Wall Street analysts project 20% revenue growth in 2024. They also believe it will produce earnings per share of $6.12.
The downturn Taiwan Semiconductor's stock experienced in 2022 wasn't all due to a shrinking business. Some of it had to do with multiple contraction, which happens when investors aren't willing to pay as high a price for a stock than they normally would.
TSM PE Ratio data by YCharts
With Taiwan Semiconductor settling in around its long-term average, the stock looks fairly priced from a historical perspective. However, I'd argue that this price doesn't fully value the company. The S&P 500 trades at about 26 times earnings right now, which means the stock trades at a 29% discount to the market.
I have a hard time believing that Taiwan Semiconductor is a below-average business in the S&P 500, and if Taiwan Semiconductor can achieve analysts' projections for 2024 and trade at an earnings multiple of 22, it will have a market cap of nearly $700 billion.
If TSMC can grow its earnings at a 12% pace for five years (taking it to the start of 2030), it will be worth $1.23 trillion. Those don't seem like far-fetched estimates, and they make a pretty solid case for Taiwan Semiconductor to be worth at least $1 trillion by the start of 2030.
Furthermore, this would represent a compound annual growth rate of 14.9%, which would demolish the long-term returns of the broader market.
As a result, I think Taiwan Semiconductor will be an excellent investment over the next five to 10 years.
Should you invest $1,000 in Taiwan Semiconductor Manufacturing right now?
Before you buy stock in Taiwan Semiconductor Manufacturing, 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 Taiwan Semiconductor Manufacturing 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
Keithen Drury has positions in Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Intel and recommends the following options: long January 2023 $57.50 calls on Intel, long January 2025 $45 calls on Intel, and short February 2024 $47 calls on Intel. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Many components are necessary for complicated devices like cellphones and graphics processing units, and none are more vital than the microscopic chips that provide the computing power. Likewise, Samsung and Intel are among its chief competitors; however, they compete with many of Taiwan Semiconductor's largest clients, like Apple, Nvidia, and AMD. TSM PE Ratio data by YCharts With Taiwan Semiconductor settling in around its long-term average, the stock looks fairly priced from a historical perspective.
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Before you buy stock in Taiwan Semiconductor Manufacturing, 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 Taiwan Semiconductor Manufacturing wasn't one of them. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Intel and recommends the following options: long January 2023 $57.50 calls on Intel, long January 2025 $45 calls on Intel, and short February 2024 $47 calls on Intel.
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Taiwan Semiconductor has some big-name clients As the name implies, Taiwan Semiconductor (also commonly referred to as TSMC) is based in Taiwan. I have a hard time believing that Taiwan Semiconductor is a below-average business in the S&P 500, and if Taiwan Semiconductor can achieve analysts' projections for 2024 and trade at an earnings multiple of 22, it will have a market cap of nearly $700 billion. Before you buy stock in Taiwan Semiconductor Manufacturing, 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 Taiwan Semiconductor Manufacturing wasn't one of them.
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Some of it had to do with multiple contraction, which happens when investors aren't willing to pay as high a price for a stock than they normally would. I have a hard time believing that Taiwan Semiconductor is a below-average business in the S&P 500, and if Taiwan Semiconductor can achieve analysts' projections for 2024 and trade at an earnings multiple of 22, it will have a market cap of nearly $700 billion. Before you buy stock in Taiwan Semiconductor Manufacturing, 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 Taiwan Semiconductor Manufacturing wasn't one of them.
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83ae383e-53b1-4f30-94ac-b58c39974ffd
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710944.0
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2023-12-16 00:00:00 UTC
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The Best Stocks to Invest $50,000 in Right Now
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https://www.nasdaq.com/articles/the-best-stocks-to-invest-%2450000-in-right-now-20
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If you're planning to invest new money, position-sizing matters. Position-sizing means how much you allocate to each stock you own. Naturally, you'll want to invest more in your highest-confidence holdings while taking smaller positions in riskier stocks.
When investing $50,000 -- a considerable sum of money -- it makes sense to buy stocks with an excellent chance of delivering strong returns on your investment. It helps to find stocks with a track record of doing so and bright prospects. Here are two stocks that answer that call.
Image source: Getty Images.
1. The Trade Desk: Leading the digital advertising revolution
The Trade Desk (NASDAQ: TTD) is the leading independent demand-side platform (DSP), meaning it offers a self-serve, cloud-based platform to help ad agencies and brands manage and optimize their digital ad campaigns. The Trade Desk delivered phenomenal results since its 2016 initial public offering (IPO), with the stock up more than 2,000%. The company has a long history of delivering strong growth and has maintained at least 95% customer retention every quarter for the last nine years.
But it's not just The Trade Desk's track record that's a reason to buy the stock. The company also has a bright future. It launched a new AI platform, Kokai, in June and the major innovations from the new technology are expected to become available to most of its customers next year.
The digital advertising market has been sluggish over the last two years as advertisers scaled back on spending in anticipation of a recession. Nevertheless, The Trade Desk outperformed its peers during that time, delivering revenue growth of more than 20% and continued profit growth.
The stock actually sold off recently on its fourth-quarter guidance, which was weaker than expected due to macroeconomic headwinds. However, investors should take advantage of the sell-off as those headwinds will likely be temporary after the Federal Reserve said it planned to lower interest rates three times next year, which should help boost ad spending.
With its AI platform expected to accelerate growth, 2024 looks promising for The Trade Desk.
2. Old Dominion Freight Line: A longtime trucking leader
Old Dominion Freight Line (NASDAQ: ODFL) may not be a household name, but experienced investors know this stock is a longtime winner for investors. Old Dominion is a leader in less-than-truckload (LTL) transportation. Unlike full truckload, LTL is complicated and allows for high margins for operators able to provide the service efficiently. Old Dominion is regarded as the best-in-class operator in LTL.
In the third quarter, Old Dominion posted an operating margin of nearly 30%, and the company reported 99% on-time service performance and a 0.1% cargo claims ratio, showing why it has a reputation for superior service. That's how the company can charge premium prices and generate wide profits.
As an industrial company, Old Dominion is subject to broader economic demand and has little control over shipping volume, which ultimately drives revenue growth. However, the prospect of lower interest rates should help support a recovery in the industrial economy and shipping volume. Like advertisers, shippers have scaled back in response to weakness in demand for consumer discretionary goods after retailers pulled back on orders to reduce inventory levels after a series of supply chain challenges.
Old Dominion shares are expensive at a price-to-earnings ratio of around 35. However, the company has the ability to pass along price hikes, looks positioned to expand margins, and should benefit from a rebound in the economy. If you're looking for a stock poised to deliver solid returns for the foreseeable future, it's hard to beat Old Dominion Freight Line.
Should you invest $1,000 in Old Dominion Freight Line right now?
Before you buy stock in Old Dominion Freight Line, 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 Old Dominion Freight Line 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
Jeremy Bowman has positions in The Trade Desk. The Motley Fool has positions in and recommends Old Dominion Freight Line and The Trade Desk. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Trade Desk: Leading the digital advertising revolution The Trade Desk (NASDAQ: TTD) is the leading independent demand-side platform (DSP), meaning it offers a self-serve, cloud-based platform to help ad agencies and brands manage and optimize their digital ad campaigns. However, investors should take advantage of the sell-off as those headwinds will likely be temporary after the Federal Reserve said it planned to lower interest rates three times next year, which should help boost ad spending. As an industrial company, Old Dominion is subject to broader economic demand and has little control over shipping volume, which ultimately drives revenue growth.
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The Trade Desk: Leading the digital advertising revolution The Trade Desk (NASDAQ: TTD) is the leading independent demand-side platform (DSP), meaning it offers a self-serve, cloud-based platform to help ad agencies and brands manage and optimize their digital ad campaigns. Old Dominion Freight Line: A longtime trucking leader Old Dominion Freight Line (NASDAQ: ODFL) may not be a household name, but experienced investors know this stock is a longtime winner for investors. Before you buy stock in Old Dominion Freight Line, 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 Old Dominion Freight Line wasn't one of them.
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Old Dominion Freight Line: A longtime trucking leader Old Dominion Freight Line (NASDAQ: ODFL) may not be a household name, but experienced investors know this stock is a longtime winner for investors. Before you buy stock in Old Dominion Freight Line, 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 Old Dominion Freight Line wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Jeremy Bowman has positions in The Trade Desk.
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Before you buy stock in Old Dominion Freight Line, 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 Old Dominion Freight Line wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Jeremy Bowman has positions in The Trade Desk. The Motley Fool has positions in and recommends Old Dominion Freight Line and The Trade Desk.
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710945.0
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2023-12-16 00:00:00 UTC
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BP Halts Red Sea Voyages Amid Rising Geopolitical Tensions
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https://www.nasdaq.com/articles/bp-halts-red-sea-voyages-amid-rising-geopolitical-tensions
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BP plc BP announced the temporary suspension of its shipping operations through the Red Sea. The decision came amid escalating tensions in the region, prompting several major companies to reevaluate their navigation routes.
On Monday, BP stated that it will keep this precautionary pause under ongoing review, subject to evolving circumstances in the region. The safety and security of people and those working on BP’s behalf is its priority.
The Red Sea, a vital maritime route connecting Europe to the Middle East through the Suez Canal, has witnessed increased geopolitical tensions in recent times, prompting companies to reassess the risks associated with navigating through the region.
According to a statement released by Inventor Chemical Tankers, a Norwegian vessel sailing south in the Red Sea was hit by an unidentified object on Monday. The statement assured that there were no injuries to the Indian crew members, and the vessel sustained only limited damage. The ship is currently navigating under its own power, with all systems reported as operational.
The decision to temporarily halt all tanker transits through the Red Sea by BP comes amid a broader context of shifting investment risks as the world enters 2024. After facing challenges such as the COVID-19 pandemic in 2020, supply-chain disruptions in 2021, inflation in 2022 and fluctuating interest rates in 2023, the focus now turns toward the growing geopolitical landscape.
Zacks Rank & Key Picks
BP currently carries a Zack Rank #3 (Hold).
Some better-ranked stocks in the energy sector are The Williams Companies, Inc. WMB, Sunoco LP SUN and Liberty Energy Inc. LBRT. While both The Williams Companies and Sunoco sport a Zacks Rank #1 (Strong Buy), Liberty Energy carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Williams Companies is well-positioned to capitalize on the anticipated substantial long-term growth in U.S. natural gas demand, thanks to its impressive portfolio of large-scale projects that create significant value. The company’s debt maturity profile is in good shape with its $4.5-billion revolver maturing in fiscal 2023.
WMB’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 13.68%.
Sunoco is among the biggest motor fuel distributors in the U.S. wholesale market in terms of volumes. By distributing more than 10 fuel brands via 10,000 convenience stores under long-term distribution contracts, the partnership will continue to generate stable cash flow.
SUN’s earnings beat estimates in two of the trailing four quarters and missed twice, delivering an average surprise of 28.33%.
Liberty Energy is a North American provider of hydraulic fracturing services to upstream energy operators. The company’s multi-basin presence offers an attractive upside opportunity compared with most of its peers. Its strong relationship with high-quality customers provides revenue visibility and business certainty.
LBRT’s earnings beat estimates in three of the trailing four quarters and missed once, delivering an average surprise of 9.88%.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Williams Companies, Inc. (The) (WMB) : Free Stock Analysis Report
BP p.l.c. (BP) : Free Stock Analysis Report
Sunoco LP (SUN) : Free Stock Analysis Report
Liberty Energy Inc. (LBRT) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Red Sea, a vital maritime route connecting Europe to the Middle East through the Suez Canal, has witnessed increased geopolitical tensions in recent times, prompting companies to reassess the risks associated with navigating through the region. The decision to temporarily halt all tanker transits through the Red Sea by BP comes amid a broader context of shifting investment risks as the world enters 2024. The Williams Companies is well-positioned to capitalize on the anticipated substantial long-term growth in U.S. natural gas demand, thanks to its impressive portfolio of large-scale projects that create significant value.
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Some better-ranked stocks in the energy sector are The Williams Companies, Inc. WMB, Sunoco LP SUN and Liberty Energy Inc. LBRT. While both The Williams Companies and Sunoco sport a Zacks Rank #1 (Strong Buy), Liberty Energy carries a Zacks Rank #2 (Buy) at present. (BP) : Free Stock Analysis Report Sunoco LP (SUN) : Free Stock Analysis Report Liberty Energy Inc. (LBRT) : Free Stock Analysis Report To read this article on Zacks.com click here.
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While both The Williams Companies and Sunoco sport a Zacks Rank #1 (Strong Buy), Liberty Energy carries a Zacks Rank #2 (Buy) at present. Click to get this free report Williams Companies, Inc. (The) (WMB) : Free Stock Analysis Report BP p.l.c. (BP) : Free Stock Analysis Report Sunoco LP (SUN) : Free Stock Analysis Report Liberty Energy Inc. (LBRT) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The decision to temporarily halt all tanker transits through the Red Sea by BP comes amid a broader context of shifting investment risks as the world enters 2024. While both The Williams Companies and Sunoco sport a Zacks Rank #1 (Strong Buy), Liberty Energy carries a Zacks Rank #2 (Buy) at present. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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30b99860-76e9-4f37-a492-dfc82881d7a7
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710946.0
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2023-12-16 00:00:00 UTC
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Petrobras (PBR), Elysian Grab 151 Blocks in Oil & Gas Auction
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DCOMP
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https://www.nasdaq.com/articles/petrobras-pbr-elysian-grab-151-blocks-in-oil-gas-auction
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Petrobras PBR and Elysian emerged as the primary winners in a recent oil and gas auction in Brazil, securing a significant number of oil blocks. The auction, organized by Brazil’s energy regulator, the National Agency of Petroleum, Natural Gas, and Biofuels (ANP), saw the acquisition of 151 blocks in total.
Let's delve into the highlights of the auction and the implications for the participating companies.
Petrobras' Strategic Expansion
Brazilian state-owned oil and gas giant Petrobras took center stage by securing 29 blocks in the Pelotas Basin. All 29 blocks were acquired as an operator, showcasing Petrobras' commitment to expanding its exploratory reach. Three of these blocks were gained through a partnership with Shell plc SHEL (30%) and China National Offshore Oil Corporation (20%), while the remaining 26 blocks had Shell as the sole partner.
Petrobras CEO Jean Paul Prates highlighted the importance of exploring new frontiers to meet the growing energy demand. With these acquisitions, PBR not only adds 29 blocks to its existing portfolio but also expands its exploratory area by an impressive 20,000 kilometers. Prates highlighted the significance of replenishing reserves and developing new exploratory frontiers to meet energy demand during the ongoing energy transition.
Elysian's Remarkable Entry
Founded in August 2023, Elysian made a bold statement in the auction by winning 122 blocks. Based in the Brazilian state of Minas Gerais, Elysian entered the scene with a strong presence, securing a substantial portion of the available blocks. The company's success in the auction positions it as a noteworthy contender in Brazil's oil and gas sector.
ANP's Perspective and Climate Activists’ Protests
The ANP head Rodolfo Saboia acknowledged the apparent contradiction of hosting an oil block auction amid global concerns about climate change. However, he emphasized the world's continued reliance on fossil fuels for at least the next five to 10 years. Saboia stated that new oil and gas exploration is imperative to prevent a decline in oil production during the aforementioned period.
While the auction aimed to address energy needs and sustain oil production, it faced protests from climate activists. The clash between environmental concerns and the necessity for continued oil exploration reflects the challenges the industry confronts amid the global push for sustainable energy solutions.
Conclusion
The acquisition of 151 blocks in Brazil's latest auction signifies a pivotal moment for Petrobras, Elysian and other participating companies. As the energy transition explains, these companies play a key role in balancing the demand for fossil fuels with the need to reduce carbon footprints. The auction's outcomes reflect the delicate equilibrium between energy needs and environmental responsibilities in a world striving for a sustainable future.
Zacks Rank and Key Picks
Currently, both PBR and SHEL carry a Zacks Rank #3 (Hold).
Investors interested in the energy sector might look at some better-ranked stocks like The Williams Companies WMB, sporting a Zacks Rank #1 (Strong Buy), and Murphy USA Inc. MUSA, carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Williams Companies is valued at $42.12 billion. The company currently pays a dividend of $1.79 per share, or 5.17%, on an annual basis.
WMB, the U.S.-based energy infrastructure company, operates through Transmission & Gulf of Mexico, Northeast G&P, West and Gas & NGL Marketing Services segments.
MUSA is worth $7.53 billion. In the past year, its shares have risen 26.1%.
MUSA is involved in the marketing of retail motor fuel products and convenience merchandise. It operates retail gasoline stores, principally in the Southeast, Southwest and Midwest United States.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Williams Companies, Inc. (The) (WMB) : Free Stock Analysis Report
Petroleo Brasileiro S.A.- Petrobras (PBR) : Free Stock Analysis Report
Murphy USA Inc. (MUSA) : Free Stock Analysis Report
Shell PLC Unsponsored ADR (SHEL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The auction, organized by Brazil’s energy regulator, the National Agency of Petroleum, Natural Gas, and Biofuels (ANP), saw the acquisition of 151 blocks in total. The clash between environmental concerns and the necessity for continued oil exploration reflects the challenges the industry confronts amid the global push for sustainable energy solutions. WMB, the U.S.-based energy infrastructure company, operates through Transmission & Gulf of Mexico, Northeast G&P, West and Gas & NGL Marketing Services segments.
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ANP's Perspective and Climate Activists’ Protests The ANP head Rodolfo Saboia acknowledged the apparent contradiction of hosting an oil block auction amid global concerns about climate change. Investors interested in the energy sector might look at some better-ranked stocks like The Williams Companies WMB, sporting a Zacks Rank #1 (Strong Buy), and Murphy USA Inc. MUSA, carrying a Zacks Rank #2 (Buy) at present. Click to get this free report Williams Companies, Inc. (The) (WMB) : Free Stock Analysis Report Petroleo Brasileiro S.A.- Petrobras (PBR) : Free Stock Analysis Report Murphy USA Inc. (MUSA) : Free Stock Analysis Report Shell PLC Unsponsored ADR (SHEL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Petrobras PBR and Elysian emerged as the primary winners in a recent oil and gas auction in Brazil, securing a significant number of oil blocks. Investors interested in the energy sector might look at some better-ranked stocks like The Williams Companies WMB, sporting a Zacks Rank #1 (Strong Buy), and Murphy USA Inc. MUSA, carrying a Zacks Rank #2 (Buy) at present. Click to get this free report Williams Companies, Inc. (The) (WMB) : Free Stock Analysis Report Petroleo Brasileiro S.A.- Petrobras (PBR) : Free Stock Analysis Report Murphy USA Inc. (MUSA) : Free Stock Analysis Report Shell PLC Unsponsored ADR (SHEL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Petrobras PBR and Elysian emerged as the primary winners in a recent oil and gas auction in Brazil, securing a significant number of oil blocks. Investors interested in the energy sector might look at some better-ranked stocks like The Williams Companies WMB, sporting a Zacks Rank #1 (Strong Buy), and Murphy USA Inc. MUSA, carrying a Zacks Rank #2 (Buy) at present. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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14e66dd7-6766-427b-910b-137c7cfa72b3
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710947.0
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2023-12-16 00:00:00 UTC
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Shell (SHEL) Resumes FLNG Operations Amid Gas Demand Surge
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DCOMP
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https://www.nasdaq.com/articles/shell-shel-resumes-flng-operations-amid-gas-demand-surge
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nan
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Shell plc SHEL reportedly resumed operations at its Prelude floating liquefied natural gas (FLNG) production platform offshore Australia. Following an extensive maintenance period, the platform is expected to see its first cargo within days, according to industry sources cited by Reuters. The timing coincides with peak winter demand in the northern hemisphere, allowing Shell to potentially capitalize on increased natural gas demand in North Asia.
Background
The Prelude FLNG, known as the world's largest of its kind, has encountered its fair share of challenges since its inaugural LNG cargo shipment in June 2019. Despite these setbacks, Shell has demonstrated its resilience and adaptability, ensuring the platform's return to service aligns with the surge in winter natural gas demand.
Maintenance Strategy
Contrary to the initial plans for a year-long overhaul, Shell strategically opted for a shorter maintenance period, a decision based on the desire to exploit robust gas demand. In September, industry sources revealed that Prelude's maintenance period would be shortened, enabling it to meet the winter gas demand in North Asia.
Production Halts and Setbacks
In May 2023, Shell temporarily halted production at Prelude LNG due to an operational trip. The challenges persisted, with production and exports disrupted between July and September of 2022 due to industrial action prompted by trade unions seeking higher wages.
Fire-Related Shutdown
Following the resolution of the labor dispute, Prelude faced another setback at the end of 2022 when a fire erupted on Dec 21. Although the fire was swiftly contained with no injuries reported, the facility underwent a temporary shutdown. Production at Prelude LNG resumed approximately a month later.
Winter Demand Dynamics
The resurgence of Prelude's operations coincides with a critical moment in the energy landscape. The tepid natural gas demand observed in both Asia and Europe earlier in the heating season, attributed to high inventory levels and milder weather, is expected to shift. The platform's timely return positions Shell to leverage the anticipated surge in winter gas demand in North Asia.
Conclusion
Shell's decisive actions in restarting operations at the Prelude FLNG underscore its commitment to navigating challenges and capitalizing on market opportunities. As the global energy landscape evolves, the significance of flexible and responsive strategies cannot be overstated. The successful resurgence of Prelude not only contributes to meeting the heightened winter gas demand but also highlights Shell's ability to adapt to a dynamic industry.
Zacks Rank and Key Picks
Currently, SHEL carries a Zacks Rank #3 (Hold).
Investors interested in the energy sector might look at some better-ranked stocks like The Williams Companies WMB, sporting a Zacks Rank #1 (Strong Buy), and Murphy USA Inc. MUSA and Liberty Energy Inc. LBRT, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Williams Companies is valued at $42.12 billion. The company currently pays a dividend of $1.79 per share, or 5.17%, on an annual basis.
WMB, the U.S.-based energy infrastructure company, operates through Transmission & Gulf of Mexico, Northeast G&P, West and Gas & NGL Marketing Services segments.
MUSA is worth $7.53 billion. In the past year, its shares have risen 26.1%.
MUSA is involved in the marketing of retail motor fuel products and convenience merchandise. It operates retail gasoline stores, principally in the Southeast, Southwest and Midwest United States.
Liberty Energy is valued at $3.1 billion. LBRT currently pays a dividend of 28 cents per share, or 1.52%, on an annual basis.
LBRT is a leading provider of hydraulic fracturing and other auxiliary services to the North American onshore exploration and production companies.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Williams Companies, Inc. (The) (WMB) : Free Stock Analysis Report
Murphy USA Inc. (MUSA) : Free Stock Analysis Report
Liberty Energy Inc. (LBRT) : Free Stock Analysis Report
Shell PLC Unsponsored ADR (SHEL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shell plc SHEL reportedly resumed operations at its Prelude floating liquefied natural gas (FLNG) production platform offshore Australia. The challenges persisted, with production and exports disrupted between July and September of 2022 due to industrial action prompted by trade unions seeking higher wages. The tepid natural gas demand observed in both Asia and Europe earlier in the heating season, attributed to high inventory levels and milder weather, is expected to shift.
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Shell plc SHEL reportedly resumed operations at its Prelude floating liquefied natural gas (FLNG) production platform offshore Australia. Investors interested in the energy sector might look at some better-ranked stocks like The Williams Companies WMB, sporting a Zacks Rank #1 (Strong Buy), and Murphy USA Inc. MUSA and Liberty Energy Inc. LBRT, each carrying a Zacks Rank #2 (Buy) at present. Click to get this free report Williams Companies, Inc. (The) (WMB) : Free Stock Analysis Report Murphy USA Inc. (MUSA) : Free Stock Analysis Report Liberty Energy Inc. (LBRT) : Free Stock Analysis Report Shell PLC Unsponsored ADR (SHEL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Shell plc SHEL reportedly resumed operations at its Prelude floating liquefied natural gas (FLNG) production platform offshore Australia. Investors interested in the energy sector might look at some better-ranked stocks like The Williams Companies WMB, sporting a Zacks Rank #1 (Strong Buy), and Murphy USA Inc. MUSA and Liberty Energy Inc. LBRT, each carrying a Zacks Rank #2 (Buy) at present. Click to get this free report Williams Companies, Inc. (The) (WMB) : Free Stock Analysis Report Murphy USA Inc. (MUSA) : Free Stock Analysis Report Liberty Energy Inc. (LBRT) : Free Stock Analysis Report Shell PLC Unsponsored ADR (SHEL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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In September, industry sources revealed that Prelude's maintenance period would be shortened, enabling it to meet the winter gas demand in North Asia. Investors interested in the energy sector might look at some better-ranked stocks like The Williams Companies WMB, sporting a Zacks Rank #1 (Strong Buy), and Murphy USA Inc. MUSA and Liberty Energy Inc. LBRT, each carrying a Zacks Rank #2 (Buy) at present. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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93967704-b0f7-4e72-aa70-37c1ab148b78
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710948.0
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2023-12-16 00:00:00 UTC
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3 Beaten-Down IT Services Stocks to Buy for a Turnaround in 2024
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DCOMP
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https://www.nasdaq.com/articles/3-beaten-down-it-services-stocks-to-buy-for-a-turnaround-in-2024
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In 2023, major tech firms saw improved results due to cost reduction, with more favorable comparisons to 2022. The emphasis on artificial intelligence (AI) boosted cloud and ad markets, demanding substantial investments. Softer hardware demand persisted as users retained pandemic-purchased products.
The surge in global digitization is creating prospects in 5G, blockchain and AI, particularly in the United States, where smart tech adoption and security investments drive growth. Companies incorporate AI, ML, blockchain and data science for a competitive edge. Despite data security worries, businesses adopt the cloud for efficiency. These dynamics are poised to positively impact the Technology Services sector.
Per Statista's projections, the IT Services market is anticipated to achieve a value of $1,204 billion in 2023, and the market volume is expected to attain $1,570 billion. This indicates a CAGR of 6.86% from 2023 to 2027.
How Technology Services Are Expected to Unfold in 2024
The ongoing global trend toward digitization is generating opportunities across various sectors, such as 5G, blockchain and AI. The United States, a key player in the IT industry, is poised for expansion due to the widespread adoption of smart technologies and increased investments in security.
Businesses are progressively integrating AI, machine learning (ML), blockchain and data science into their operations to attain a competitive edge. AI and ML are gaining significant traction in the technology sector. According to Statista, the global artificial intelligence market reached a value of $142.3 billion in 2022 and is expected to climb to $207.9 billion in 2023.
The global artificial intelligence market is projected to reach an impressive $1.85 trillion by 2030, indicating a substantial CAGR of 41.75% from 2022 to 2030. ML, as a subset of AI and a crucial element of the AI ecosystem, is poised for substantial growth, forecasted to rise from $140 billion to $2 trillion by 2030.
Per a research report by Grand View Research in 2022, the global cloud computing market reached a valuation of $483.98 billion, and it is anticipated to exhibit a CAGR of 14.1% from 2023 to 2030. This upward trajectory is fueled by various factors, including the capacity of cloud technology to augment business performance, a rising preference for hybrid and Omni-cloud solutions, the prevalence of pay-as-you-go models and its increasing popularity in developing nations. Government initiatives aimed at securing data and the aftermath of the pandemic are additional contributors to this growth.
Despite the positive outlook, concerns regarding data security act as a limiting factor. Nevertheless, significant enterprises are embracing cloud solutions to streamline data management and reduce costs, particularly with the adoption of pay-as-you-go models. The rapid uptake of cloud services by large businesses can be attributed to the on-demand accessibility that these platforms offer.
The swift uptake of technology services has led to certain adverse effects, as evidenced by a 300% increase in cybersecurity cases reported by the FBI. Despite these challenges, the industry is capitalizing on the rising need for solutions addressing data security and privacy protection. The escalating frequency of cyberattacks and related security threats is projected to uphold the industry's expansion. Per Statista, anticipated revenues indicate a robust annual growth rate (CAGR 2023-2028) of 10.48%, culminating in a market volume of $273.60 billion by 2028.
3 Technology Stocks to Add to Your Portfolio
Let’s find out some stocks that uphold a promising future in 2024 and are currently available at an inexpensive price. Using the Zacks Stock Screener, we've identified three stocks, each carrying a Zacks Rank #1 (Strong Buy) or #2 (Buy), with a market capitalization of $500 million or higher. Additionally, these stocks have experienced a year-to-date decline of more than 10%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Jamf Holding Corp. JAMF is a leading enterprise software company specializing in Apple ecosystem management. This provides solutions for IT professionals to manage and secure Apple devices, ensuring streamlined operations and a seamless user experience within organizations.
With a market cap of $2.38 billion and a Zacks Rank #2, Jamf excels with its focus on managing and securing Apple devices, capitalizing on the growing demand in enterprises. Its specialized expertise, cloud-based solutions, strong customer base, global presence and strategic partnerships contribute to its success. Innovation, security emphasis and commitment to user experience further strengthen Jamf's position in the market.
The company’s revenues are expected to grow 16.6% in 2023 and 15.1% in 2024. Earnings are expected to record an 81.3% increase in 2023 and a 25.3% rise in 2024. The Zacks Consensus mark for 2023 earnings has been revised northward 7.4% in the past 60 days. JAMF has declined 11.4% year to date.
Jamf Holding Corp. Price, Consensus and EPS Surprise
Jamf Holding Corp. price-consensus-eps-surprise-chart | Jamf Holding Corp. Quote
Vivid Seats Inc. SEAT, formerly known as Horizon Acquisition Corporation, is a prominent online ticket marketplace connecting buyers and sellers for live event tickets. Offering a wide range of sports, concerts and theater tickets, Vivid Seats provides a user-friendly platform with competitive pricing, ensuring access to diverse entertainment experiences.
Vivid Seats currently holds a Zacks Rank #2 and has a market cap of $1.5 billion and excels with a diverse ticket selection. Transparent fees, reliable transactions and customer reviews enhance trust. Mobile accessibility, dedicated support and promotions contribute to a positive experience. The resale marketplace expands options, making Vivid Seats a top choice for event ticket purchases.
The company’s revenues are expected to grow 16.7% in 2023 and 18% in 2024. Earnings are expected to record a 16.7% increase in 2023 and a 3.1% rise in 2024. The consensus mark for 2023 earnings has been revised northward by 5% in the past 60 days. SEAT has decreased 10.6% year to date.
Vivid Seats Inc. Price, Consensus and EPS Surprise
Vivid Seats Inc. price-consensus-eps-surprise-chart | Vivid Seats Inc. Quote
Full Truck Alliance Co. Ltd. YMM is a Chinese digital freight platform connecting shippers and truckers. Founded in 2017, FTA utilizes technology to optimize freight matching, providing efficient and cost-effective logistics solutions in the rapidly growing trucking industry.
YMM outshines China's digital freight sector with market leadership, advanced tech, a large user base, strategic partnerships and diversified services. Its adaptability, operational efficiency and investor confidence contribute to its prominent position.
YMM currently carries a Zacks Rank #2 and has a market cap of $7.75 billion. The company’s revenues are expected to grow 15.9% in 2023 and 23% in 2024. Earnings are expected to record an 89.5% increase in 2023 and a 23.6% surge in 2024. The Zacks Consensus Estimate for 2023 earnings has been revised northward 16.1% in the past 60 days. YMM has declined 12.4% year to date.
Full Truck Alliance Co. Ltd. Sponsored ADR Price, Consensus and EPS Surprise
Full Truck Alliance Co. Ltd. Sponsored ADR price-consensus-eps-surprise-chart | Full Truck Alliance Co. Ltd. Sponsored ADR Quote
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
Be First to New Top 10 Stocks >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Jamf Holding Corp. (JAMF) : Free Stock Analysis Report
Full Truck Alliance Co. Ltd. Sponsored ADR (YMM) : Free Stock Analysis Report
Vivid Seats Inc. (SEAT) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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This upward trajectory is fueled by various factors, including the capacity of cloud technology to augment business performance, a rising preference for hybrid and Omni-cloud solutions, the prevalence of pay-as-you-go models and its increasing popularity in developing nations. Offering a wide range of sports, concerts and theater tickets, Vivid Seats provides a user-friendly platform with competitive pricing, ensuring access to diverse entertainment experiences. YMM outshines China's digital freight sector with market leadership, advanced tech, a large user base, strategic partnerships and diversified services.
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Jamf Holding Corp. Price, Consensus and EPS Surprise Jamf Holding Corp. price-consensus-eps-surprise-chart | Jamf Holding Corp. Quote Vivid Seats Inc. SEAT, formerly known as Horizon Acquisition Corporation, is a prominent online ticket marketplace connecting buyers and sellers for live event tickets. Vivid Seats Inc. Price, Consensus and EPS Surprise Vivid Seats Inc. price-consensus-eps-surprise-chart | Vivid Seats Inc. Quote Full Truck Alliance Co. Ltd. YMM is a Chinese digital freight platform connecting shippers and truckers. Sponsored ADR (YMM) : Free Stock Analysis Report Vivid Seats Inc. (SEAT) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Jamf Holding Corp. Price, Consensus and EPS Surprise Jamf Holding Corp. price-consensus-eps-surprise-chart | Jamf Holding Corp. Quote Vivid Seats Inc. SEAT, formerly known as Horizon Acquisition Corporation, is a prominent online ticket marketplace connecting buyers and sellers for live event tickets. Vivid Seats Inc. Price, Consensus and EPS Surprise Vivid Seats Inc. price-consensus-eps-surprise-chart | Vivid Seats Inc. Quote Full Truck Alliance Co. Ltd. YMM is a Chinese digital freight platform connecting shippers and truckers. Sponsored ADR (YMM) : Free Stock Analysis Report Vivid Seats Inc. (SEAT) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Despite data security worries, businesses adopt the cloud for efficiency. Per a research report by Grand View Research in 2022, the global cloud computing market reached a valuation of $483.98 billion, and it is anticipated to exhibit a CAGR of 14.1% from 2023 to 2030. With a market cap of $2.38 billion and a Zacks Rank #2, Jamf excels with its focus on managing and securing Apple devices, capitalizing on the growing demand in enterprises.
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710949.0
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2023-12-16 00:00:00 UTC
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Feel Like You Missed the Nvidia Train? Think Again.
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DCOMP
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https://www.nasdaq.com/articles/feel-like-you-missed-the-nvidia-train-think-again.
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nan
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nan
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Artificial intelligence (AI) dominated financial headlines throughout 2023. While myriad companies are participating in the AI marathon, the "Magnificent Seven" stocks are setting the pace. Among this cohort of stocks, perhaps the biggest beneficiary from the AI boom is Nvidia (NASDAQ: NVDA). The company recently reported earnings for its third quarter of fiscal 2024, ended Oct. 29, handily beating its revenue guidance and setting a new record.
But even after its 240% stock return so far this year, there are plenty of reasons to believe the party is just getting started for Nvidia. Let's dig into the tailwinds pushing demand for the company's semiconductor chips and assess if now is a buying opportunity for long-term investors.
Artificial intelligence is fueling demand
Nvidia specializes in the production of graphics processing units (GPUs). GPUs play a critical role in gaming, crypto mining, and AI. When it comes to AI use cases, GPU chips are designed to help power large language models (LLMs). This is important because LLMs are a core component of generative AI applications.
Given the skyrocketing rise of Microsoft's ChatGPT and Alphabet's Bard, it's easy to draw a dotted line connecting Nvidia to a host of other major AI players. To get a sense of just how much demand Nvidia is experiencing, let's take a look at the company's financial picture and how its valuation has shifted.
Image source: Getty Images.
Nvidia's path to a $1 trillion valuation
The table below illustrates some of Nvidia's key financial metrics over the last year.
CATEGORY Q3 FY 23 Q4 FY 23 Q1 FY 24 Q2 FY 24 Q3 FY24
Revenue $5.9 billion $6.1 billion $7.2 billion $13.5 billion $18.1 billion
Gross margin % 53.6% 63.3%
64.6%
70.1% 74%
Diluted earnings per share $0.27 $0.57 $0.82 $2.48 $3.71
Data source: Nvidia Investor Relations.
You can see that Nvidia's revenue has increased by 206% over the last year. But perhaps even better is the company's bottom line. The impressive margin expansion has helped fuel a rise in profits, as diluted earnings per share increased from $0.27 during the third quarter of fiscal 2023 to $3.71 for the most recent quarter -- over 12,000% growth in just one year.
Nvidia's eye-popping growth on both the revenue and earnings lines sheds light not only on the demand for its products, but the pricing power that the company can command given its market-leading position.
NVDA Market Cap data by YCharts
The chart above illustrates Nvidia's market cap over the last year. Since its fiscal third quarter 2022, Nvidia's market cap has grown over 200% to eclipse $1 trillion. Although this valuation might appear steep, a thorough analysis benchmarked against its peers might prove otherwise.
Should you buy Nvidia stock in 2024?
The chart below illustrates Nvidia's forward price-to-earnings (P/E) ratio compared to its "Magnificent Seven" cohorts. Investors can see that Nvidia's forward P/E of roughly 40 is right in the middle of the pack. What is actually surprising to me is that Tesla, which is a known customer of Nvidia, is trading at a forward P/E nearly double that of Nvidia's.
NVDA PE Ratio (Forward) data by YCharts
Perhaps an even more head-scratching dynamic can be seen in the chart below.
NVDA PE Ratio (Forward) data by YCharts
Advanced Micro Devices is Nvidia's top rival. While AMD has been posting some impressive results of its own, the disparity between its forward P/E and Nvidia's is astounding. It may sound convoluted to say that a trillion-dollar company is cheap. But when you measure Nvidia against its megacap peers as well as its No. 1 rival, the case for buying the stock becomes increasingly clear.
As demand for AI applications continues to gain momentum, I see Nvidia continuing to play an integral role. And with the stock trading at discounts to smaller rivals as well as end customers reliant on the company's technology, now looks like a terrific opportunity for long-term investors to scoop up shares.
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.
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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. Adam Spatacco has positions in Alphabet, Microsoft, Nvidia, and Tesla. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Microsoft, Nvidia, and Tesla. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Given the skyrocketing rise of Microsoft's ChatGPT and Alphabet's Bard, it's easy to draw a dotted line connecting Nvidia to a host of other major AI players. Nvidia's eye-popping growth on both the revenue and earnings lines sheds light not only on the demand for its products, but the pricing power that the company can command given its market-leading position. And with the stock trading at discounts to smaller rivals as well as end customers reliant on the company's technology, now looks like a terrific opportunity for long-term investors to scoop up shares.
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Revenue $5.9 billion $6.1 billion $7.2 billion $13.5 billion $18.1 billion Gross margin % 53.6% 63.3% 64.6% 70.1% 74% Diluted earnings per share $0.27 $0.57 $0.82 $2.48 $3.71 Data source: Nvidia Investor Relations. NVDA Market Cap data by YCharts The chart above illustrates Nvidia's market cap over the last year. NVDA PE Ratio (Forward) data by YCharts Advanced Micro Devices is Nvidia's top rival.
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Nvidia's path to a $1 trillion valuation The table below illustrates some of Nvidia's key financial metrics over the last year. What is actually surprising to me is that Tesla, which is a known customer of Nvidia, is trading at a forward P/E nearly double that of Nvidia's. 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.
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Should you buy Nvidia stock in 2024? The chart below illustrates Nvidia's forward price-to-earnings (P/E) ratio compared to its "Magnificent Seven" cohorts. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Microsoft, Nvidia, and Tesla.
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b325c088-a7b5-4723-a460-cd871149aa7c
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710950.0
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2023-12-16 00:00:00 UTC
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PubMatic (PUBM) Extends Adverty Partnership, Boosts Prospects
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DCOMP
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https://www.nasdaq.com/articles/pubmatic-pubm-extends-adverty-partnership-boosts-prospects
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nan
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nan
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PubMatic PUBM is leaving no stone unturned to expand its customer base, supported by its strong partner base.
Its latest extension of the partnership with Adverty holds testimony to the aforesaid fact. This strengthens PubMatic’s footing as a global Private Marketplace partner in the digital advertising space.
In-game advertising presents a significant growth opportunity for PubMatic. Per a Statista report, the in-game advertising market is expected to reach $157.5 billion by 2028, indicating a CAGR of 10.7% between 2023 and 2028.
An imarc report indicates that the global in-game advertising market will reach $13.3 billion by 2028, witnessing a CAGR of 10.6% during the forecast period of 2023-2028.
PubMatic, Inc. Price and Consensus
PubMatic, Inc. price-consensus-chart | PubMatic, Inc. Quote
Growth Prospects Bright for PubMatic
PubMatic’s focus on enhancing its global reach based on ongoing collaborations is noteworthy. This is evident from its recent partnerships with PhonePe, Experian EXPGY and Comcast CMCSA.
PubMatic partnered with PhonePe to integrate PhonePe's premium mobile app inventory and diverse audience with its programmatic buying ecosystem.
By partnering with Experian, a leading global information services company, PubMatic became the first sell-side technology provider of Experian marketing data in the United States and U.K. The collaboration utilizes syndicated audiences and privacy-centric insights to revolutionize data-driven advertisement and digital transformation in commerce media.
The company’s partnership with Comcast Division Freewheel allows PubMatic's Activate to have direct access to premium publisher-connected television ad inventory through FreeWheel, enhancing ad buyers' transactions and providing FreeWheel publishers with unique campaign budgets.
Moreover, PubMatic expands its reach into Asia-Pacific with Activate, partnering with Dentsu APAC, iQIYI, Kinesso India, Madison Digital and Wishmedia to transform traditional transactions into programmatic deals for CTV/OTT and online video.
These collaborations are expected to aid PubMatic’s top-line growth. For the fourth quarter of 2023, PUBM expects revenues between $76 million and $80 million. The Zacks Consensus Estimate for the current quarter is pegged at $78.15 million, indicating an increase of 5.18% year over year.
Zacks Rank & Another Stock to Consider
Currently, PUBM carries Zacks Rank #2 (Buy).
PUBM shares have gained 43.3% in the past three months, outperforming the Zacks Computer & Technology sector’s return of 8.3%.
Another top-ranked stock in the broader technology sector is Badger Meter BMI, which sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Badger Meter have lost 3.3% in the past three months. BMI’s long-term earnings growth rate is 20.39%.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Comcast Corporation (CMCSA) : Free Stock Analysis Report
Badger Meter, Inc. (BMI) : Free Stock Analysis Report
Experian PLC (EXPGY) : Free Stock Analysis Report
PubMatic, Inc. (PUBM) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The collaboration utilizes syndicated audiences and privacy-centric insights to revolutionize data-driven advertisement and digital transformation in commerce media. Moreover, PubMatic expands its reach into Asia-Pacific with Activate, partnering with Dentsu APAC, iQIYI, Kinesso India, Madison Digital and Wishmedia to transform traditional transactions into programmatic deals for CTV/OTT and online video. Another top-ranked stock in the broader technology sector is Badger Meter BMI, which sports a Zacks Rank #1 (Strong Buy) at present.
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Per a Statista report, the in-game advertising market is expected to reach $157.5 billion by 2028, indicating a CAGR of 10.7% between 2023 and 2028. Another top-ranked stock in the broader technology sector is Badger Meter BMI, which sports a Zacks Rank #1 (Strong Buy) at present. Click to get this free report Comcast Corporation (CMCSA) : Free Stock Analysis Report Badger Meter, Inc. (BMI) : Free Stock Analysis Report Experian PLC (EXPGY) : Free Stock Analysis Report PubMatic, Inc. (PUBM) : Free Stock Analysis Report To read this article on Zacks.com click here.
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PubMatic, Inc. Price and Consensus PubMatic, Inc. price-consensus-chart | PubMatic, Inc. Quote Growth Prospects Bright for PubMatic PubMatic’s focus on enhancing its global reach based on ongoing collaborations is noteworthy. Zacks Rank & Another Stock to Consider Currently, PUBM carries Zacks Rank #2 (Buy). Click to get this free report Comcast Corporation (CMCSA) : Free Stock Analysis Report Badger Meter, Inc. (BMI) : Free Stock Analysis Report Experian PLC (EXPGY) : Free Stock Analysis Report PubMatic, Inc. (PUBM) : Free Stock Analysis Report To read this article on Zacks.com click here.
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This strengthens PubMatic’s footing as a global Private Marketplace partner in the digital advertising space. Another top-ranked stock in the broader technology sector is Badger Meter BMI, which sports a Zacks Rank #1 (Strong Buy) at present. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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499b9d78-c7b6-46d4-984d-029e7c3fd288
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710951.0
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2023-12-16 00:00:00 UTC
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Got $1,000? Buy These 3 Magnificent Dividend Stocks to Boost Your Income in 2024.
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DCOMP
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https://www.nasdaq.com/articles/got-%241000-buy-these-3-magnificent-dividend-stocks-to-boost-your-income-in-2024.
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nan
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nan
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Investing in high-quality dividend stocks is a great way to generate passive income. The best ones can turn idle cash into an attractive and steadily rising income stream.
Brookfield Renewable (NYSE: BEPC)(NYSE: BEP), Realty Income (NYSE: O), and Verizon (NYSE: VZ) have been magnificent dividend stocks over the years by steadily increasing their high-yielding payouts. That should continue in 2024 (and beyond), making them ideal income stocks to buy right now.
Lots of power to continue growing its payout
Brookfield Renewable currently offers a 4.7% dividend yield. That's several times above the S&P 500's 1.5% dividend yield. It could turn $1,000 into $47 of annual dividend income at that rate compared to $15 from an S&P 500 index fund.
The renewable energy giant has done an excellent job growing its high-yielding dividend over the years. For the past dozen years, it has increased its payout by at least 5% annually. That upward trend should continue. Brookfield aims to increase its payout by 5% to 9% per year over the long term.
It has plenty of power to achieve that plan. Brookfield's funds from operations (FFO) are on track to rise by more than 10% per share this year. The company is benefiting from strong organic growth drivers (inflation-linked power rate increases and development projects) and needle-moving acquisitions. It has closed three deals over the past few months, which gives it lots of momentum heading into 2024.
The company believes its growth drivers position it to deliver double-digit FFO per share growth through at least 2028. That puts it in a strong position to continue increasing its high-yielding payout in the coming years.
Built-in growth for 2024
Realty Income has been a magnificent dividend stock. The real estate investment trust (REIT) has increased its payment 123 times since its public market listing in 1994, including five times this year. The company's payout currently yields 5.4%, which could turn a $1,000 investment into $54 of annual dividend income.
The REIT is in an excellent position to continue growing its payout in 2024. It got a head start on next year's growth by recently agreeing to acquire fellow REIT Spirit Realty in a $9.3 billion deal that should close in early 2024. The company expects the acquisition to increase its adjusted FFO by more than 2.5% per share next year. That's more than half its targeted annual growth rate of 4% to 5% per share.
Realty Income anticipates that the combined company will generate over $800 million in post-dividend free cash flow. That will give it the funds to acquire even more income-producing real estate. The combination of those reinvested cash flows, its elite balance sheet, and the Spirit Realty deal should be enough to enable the REIT to deliver 4% to 5% adjusted FFO per share growth next year without raising any additional equity.
The REIT should have no shortage of growth opportunities. It has steadily expanded into new areas, enhancing its ability to grow. It has added data centers, consumer-centric medical, gaming, vertical farming, credit investment, Italy, and Ireland to its investment verticals over the past year. That has extended its already long growth runway.
Collecting more cash in 2024
Verizon currently yields 7.1%, which is one of the highest levels among S&P 500 members. The telecom giant recently increased its already sizable payout by another 1.9%, marking its 17th straight year of dividend growth.
The company is in an excellent position to continue growing its dividend. It has invested heavily in building out its faster 5G network, which is helping to accelerate wireless service revenue growth. Meanwhile, it passed the peak for capital spending earlier this year, which will free up $5 billion of annual cash flow. On top of that, the company is working to trim a couple more billion dollars from its cost structure.
These drivers will increase its already massive free cash flow, giving it more money to pay dividends and strengthen its balance sheet. Verizon's falling debt levels will help cut interest expenses, freeing up even more cash to enhance shareholder value.
Start 2024 off right with these income-producing machines
Brookfield Infrastructure, Realty Income, and Verizon offer investors high-yielding payouts that they've steadily increased. They're in excellent positions to continue growing their payouts in 2024 and beyond, and that makes them great dividend stocks to buy to boost your income in the coming year.
Should you invest $1,000 in Brookfield Renewable right now?
Before you buy stock in Brookfield Renewable, 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 Brookfield Renewable 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 Renewable, Brookfield Renewable Partners, Realty Income, and Verizon Communications. The Motley Fool has positions in and recommends Brookfield Renewable and Realty Income. The Motley Fool recommends Brookfield Renewable 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.
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The company is benefiting from strong organic growth drivers (inflation-linked power rate increases and development projects) and needle-moving acquisitions. It got a head start on next year's growth by recently agreeing to acquire fellow REIT Spirit Realty in a $9.3 billion deal that should close in early 2024. The combination of those reinvested cash flows, its elite balance sheet, and the Spirit Realty deal should be enough to enable the REIT to deliver 4% to 5% adjusted FFO per share growth next year without raising any additional equity.
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Brookfield Renewable (NYSE: BEPC)(NYSE: BEP), Realty Income (NYSE: O), and Verizon (NYSE: VZ) have been magnificent dividend stocks over the years by steadily increasing their high-yielding payouts. Start 2024 off right with these income-producing machines Brookfield Infrastructure, Realty Income, and Verizon offer investors high-yielding payouts that they've steadily increased. See the 10 stocks *Stock Advisor returns as of December 18, 2023 Matthew DiLallo has positions in Brookfield Renewable, Brookfield Renewable Partners, Realty Income, and Verizon Communications.
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Brookfield Renewable (NYSE: BEPC)(NYSE: BEP), Realty Income (NYSE: O), and Verizon (NYSE: VZ) have been magnificent dividend stocks over the years by steadily increasing their high-yielding payouts. Before you buy stock in Brookfield Renewable, 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 Brookfield Renewable wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 18, 2023 Matthew DiLallo has positions in Brookfield Renewable, Brookfield Renewable Partners, Realty Income, and Verizon Communications.
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Lots of power to continue growing its payout Brookfield Renewable currently offers a 4.7% dividend yield. The company's payout currently yields 5.4%, which could turn a $1,000 investment into $54 of annual dividend income. Should you invest $1,000 in Brookfield Renewable right now?
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7810b265-7710-4e99-9644-2e411dcbd0d5
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710952.0
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2023-12-16 00:00:00 UTC
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Peek Under The Hood: PID Has 10% Upside
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DCOMP
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https://www.nasdaq.com/articles/peek-under-the-hood%3A-pid-has-10-upside-0
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nan
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nan
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Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the Invesco International Dividend Achievers ETF (Symbol: PID), we found that the implied analyst target price for the ETF based upon its underlying holdings is $19.93 per unit.
With PID trading at a recent price near $18.08 per unit, that means that analysts see 10.21% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of PID's underlying holdings with notable upside to their analyst target prices are Brookfield Corp (Symbol: BN), Imperial Oil Ltd (Symbol: IMO), and Diageo plc (Symbol: DEO). Although BN has traded at a recent price of $38.43/share, the average analyst target is 18.90% higher at $45.70/share. Similarly, IMO has 16.84% upside from the recent share price of $56.59 if the average analyst target price of $66.12/share is reached, and analysts on average are expecting DEO to reach a target price of $167.58/share, which is 15.65% above the recent price of $144.90. Below is a twelve month price history chart comparing the stock performance of BN, IMO, and DEO:
Below is a summary table of the current analyst target prices discussed above:
NAME SYMBOL RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET
Invesco International Dividend Achievers ETF PID $18.08 $19.93 10.21%
Brookfield Corp BN $38.43 $45.70 18.90%
Imperial Oil Ltd IMO $56.59 $66.12 16.84%
Diageo plc DEO $144.90 $167.58 15.65%
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
10 ETFs With Most Upside To Analyst Targets »
Also see:
SHFL Videos
AWK MACD
TPB Average Annual Return
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Although BN has traded at a recent price of $38.43/share, the average analyst target is 18.90% higher at $45.70/share. Invesco International Dividend Achievers ETF PID $18.08 $19.93 10.21% Brookfield Corp BN $38.43 $45.70 18.90% Imperial Oil Ltd IMO $56.59 $66.12 16.84% Diageo plc DEO $144.90 $167.58 15.65% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments?
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Three of PID's underlying holdings with notable upside to their analyst target prices are Brookfield Corp (Symbol: BN), Imperial Oil Ltd (Symbol: IMO), and Diageo plc (Symbol: DEO). Similarly, IMO has 16.84% upside from the recent share price of $56.59 if the average analyst target price of $66.12/share is reached, and analysts on average are expecting DEO to reach a target price of $167.58/share, which is 15.65% above the recent price of $144.90. Invesco International Dividend Achievers ETF PID $18.08 $19.93 10.21% Brookfield Corp BN $38.43 $45.70 18.90% Imperial Oil Ltd IMO $56.59 $66.12 16.84% Diageo plc DEO $144.90 $167.58 15.65% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now?
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Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. Similarly, IMO has 16.84% upside from the recent share price of $56.59 if the average analyst target price of $66.12/share is reached, and analysts on average are expecting DEO to reach a target price of $167.58/share, which is 15.65% above the recent price of $144.90. A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past.
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Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. With PID trading at a recent price near $18.08 per unit, that means that analysts see 10.21% upside for this ETF looking through to the average analyst targets of the underlying holdings. Invesco International Dividend Achievers ETF PID $18.08 $19.93 10.21% Brookfield Corp BN $38.43 $45.70 18.90% Imperial Oil Ltd IMO $56.59 $66.12 16.84% Diageo plc DEO $144.90 $167.58 15.65% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now?
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d984842d-c939-41ca-886f-3818686ce735
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710953.0
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2023-12-16 00:00:00 UTC
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EXCLUSIVE-BP short-lists three internal candidates for CEO, sources say
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DCOMP
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https://www.nasdaq.com/articles/exclusive-bp-short-lists-three-internal-candidates-for-ceo-sources-say
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nan
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nan
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By Ron Bousso and Sarah McFarlane
LONDON, Dec 19 (Reuters) - BP's BP.L board has short-listed interim CEO Murray Auchincloss and two senior female executives as internal candidates to replace Bernard Looney as chief executive, three company and industry sources told Reuters.
BP was thrown into turmoil after Looney resigned on Sept. 12 for failing to disclose relationships with employees and leaving no clear succession plan in place.
The company's people and governance committee under BP Chairman Helge Lund is now focussed internally on Auchincloss, head of trading and shipping Carol Howle and Emma Delaney, head of customers and products, the sources said.
The committee, which is expected to reach a decision in the coming weeks, is also considering external candidates, the sources said.
Howle or Delaney would become the first woman to lead one of the five top Western oil and gas companies.
An internal appointment would also signal board support for continuing BP's current strategy which aims to slash carbon emissions, build up renewables and clean fuel capacity while cutting oil and gas output by 2030, the sources said.
An announcement on the appointment is expected in the first quarter of next year, Reuters reported earlier this month citing industry sources.
A BP spokesperson said "the process to appoint a new CEO is under way. We won't comment on detail or on speculation regarding potential candidates."
BP had previously said it would consider internal and external candidates.
Auchincloss, Howle and Delaney are all members of BP's leadership team and were appointed by Looney after he took office in February 2020.
Auchincloss is seen as the most likely choice among the three given his experience leading the company and working with investors and the board, several equity analysts and investors have said.
He was key in formulating changes Looney made to the company's strategy in February, including slowing down BP's retreat from oil and gas and reducing spending on renewables in an effort to improve returns.
"We see the confirmation (of Auchincloss) as important symbolically to show a steady ship," RBC Capital Markets analyst Biraj Borkhataria said, adding that an external choice could add to uncertainty.
Still, Auchincloss's close association with Looney could work against him, two BP sources said.
Howle has over 20 years of experience at BP and has held several senior roles in one of the world's largest energy trading divisions, becoming former CEO Bob Dudley's head of office before joining Looney's leadership team in 2020.
Delaney has worked at BP since 1995 in marketing and commercial roles in the Middle East and Asia. She joined Looney's transition leadership team in 2019 and later became head of customers and products, a key growth market in BP's strategy due to its vast network of petrol and charging stations.
Looney's departure sparked an investigation into his past relationships involving an external law firm and left no clear succession plan in place.
BP announced last week it would claw back $40 million from Looney's remuneration package after concluding that he had lied over his relationships with employees.
BP's share performance vs. rivals https://refini.tv/3p1trlL
(Reporting by Ron Bousso; editing by Jason Neely)
((ron.bousso@thomsonreuters.com; +44 (0) 2075422161; Reuters Messaging: ron.bousso.reuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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An internal appointment would also signal board support for continuing BP's current strategy which aims to slash carbon emissions, build up renewables and clean fuel capacity while cutting oil and gas output by 2030, the sources said. He was key in formulating changes Looney made to the company's strategy in February, including slowing down BP's retreat from oil and gas and reducing spending on renewables in an effort to improve returns. Howle has over 20 years of experience at BP and has held several senior roles in one of the world's largest energy trading divisions, becoming former CEO Bob Dudley's head of office before joining Looney's leadership team in 2020.
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By Ron Bousso and Sarah McFarlane LONDON, Dec 19 (Reuters) - BP's BP.L board has short-listed interim CEO Murray Auchincloss and two senior female executives as internal candidates to replace Bernard Looney as chief executive, three company and industry sources told Reuters. The company's people and governance committee under BP Chairman Helge Lund is now focussed internally on Auchincloss, head of trading and shipping Carol Howle and Emma Delaney, head of customers and products, the sources said. Howle has over 20 years of experience at BP and has held several senior roles in one of the world's largest energy trading divisions, becoming former CEO Bob Dudley's head of office before joining Looney's leadership team in 2020.
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By Ron Bousso and Sarah McFarlane LONDON, Dec 19 (Reuters) - BP's BP.L board has short-listed interim CEO Murray Auchincloss and two senior female executives as internal candidates to replace Bernard Looney as chief executive, three company and industry sources told Reuters. The company's people and governance committee under BP Chairman Helge Lund is now focussed internally on Auchincloss, head of trading and shipping Carol Howle and Emma Delaney, head of customers and products, the sources said. Auchincloss, Howle and Delaney are all members of BP's leadership team and were appointed by Looney after he took office in February 2020.
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By Ron Bousso and Sarah McFarlane LONDON, Dec 19 (Reuters) - BP's BP.L board has short-listed interim CEO Murray Auchincloss and two senior female executives as internal candidates to replace Bernard Looney as chief executive, three company and industry sources told Reuters. BP was thrown into turmoil after Looney resigned on Sept. 12 for failing to disclose relationships with employees and leaving no clear succession plan in place. Auchincloss, Howle and Delaney are all members of BP's leadership team and were appointed by Looney after he took office in February 2020.
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1ee122d8-5683-4551-b17b-98a52a536ee8
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710954.0
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2023-12-16 00:00:00 UTC
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Will Warren Buffett Buy This Fintech Stock in 2024? Signs Point to Yes
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DCOMP
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https://www.nasdaq.com/articles/will-warren-buffett-buy-this-fintech-stock-in-2024-signs-point-to-yes
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nan
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nan
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Warren Buffett and his team at Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) aren't ones to buy stock on a whim. Each company they purchase first is rigorously examined for value investing criteria.
While we don't know what Buffett and company are eyeing next, we can scan the stock market for companies that fit their investment criteria, like cheap valuations, strong brands, and maybe certain industries (like banking, fintech or insurance). When doing this, I came across one stock Berkshire may be interested in purchasing: PayPal (NASDAQ: PYPL).
PayPal would look right at home in Berkshire's portfolio
So, why PayPal? Well, it checks a lot of Buffett boxes. First, it's a company with a strong brand. PayPal has been around for a long time and is a payments processing name sellers and buyers trust. If you look at Buffett's portfolio, it's filled with names like Coca-Cola, American Express, and Kraft Heinz -- all recognized by consumers.
With its brand, PayPal wouldn't look out of place in Berkshire's holdings. Furthermore, it's a fintech -- an industry with a strong presence in Buffett's portfolio.
Berkshire owns shares in three of the four major credit card companies in the U.S. and StoneCo, a Brazilian fintech. With PayPal fitting right into this group, it wouldn't be far-fetched for Berkshire to add it to its basket.
One thing that may hold Berkshire back from purchasing PayPal is new management. Buffett once said, "Buy stock in a business that's so good that an idiot can run it because sooner or later one will." PayPal's prior chief executive officer, Dan Schulman, was quite good overall but made a few questionable decisions pertaining to customer acquisition and business direction in 2021 and 2022 that hurt the company. New CEO Alex Chriss will be in charge of righting the ship, but overall, PayPal can be a fairly easy business to manage if it sticks to what it's good at.
I think the management part can easily be fixed. Given how cheap the stock is, it will be tough for Berkshire to ignore.
PayPal's earnings are growing above the market pace
PayPal hasn't lit the world on fire recently, which has caused it to fall from the ranks of other growth stocks. However, the value investing crowd hasn't picked it up yet, although that time is quickly approaching.
PayPal revenue rose only 8% in Q3, slower than the 10% market baseline. In Q4, this weakness is expected to persist, with only 6% to 7% growth expected. However, PayPal has transitioned from a revenue growth story to an earning growth one.
Although earnings shrank in Q3 (thanks to a one-time benefit in 2022's Q3 results), in Q4, they are expected to rise to $1.20 from $0.81 last year. In 2024, PayPal's earnings are expected to rise 12% -- a market-beating pace. So, with this kind of earnings growth, you'd expect the stock to trade at a premium to the market, but that's far from the case.
Data source: YCharts.
Compared to the S&P 500's trailing price-to-earnings (P/E) ratio of 26 and forward P/E of 19, PayPal trades at a significant discount to the market.
If PayPal's stock could match the forward P/E estimate, that would represent about a 50% upside. However, if PayPal can continue increasing its earnings at a market-beating pace, it should be a market-beating investment over the long term.
That's a pretty attractive proposition for Buffett and Berkshire. But even if they don't buy it, that doesn't mean you can't capitalize on several Buffett-like qualities in this investment.
Should you invest $1,000 in PayPal right now?
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. 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
Keithen Drury has positions in PayPal. The Motley Fool has positions in and recommends Berkshire Hathaway and PayPal. The Motley Fool recommends the following options: short December 2023 $67.50 puts on PayPal. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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If you look at Buffett's portfolio, it's filled with names like Coca-Cola, American Express, and Kraft Heinz -- all recognized by consumers. PayPal's prior chief executive officer, Dan Schulman, was quite good overall but made a few questionable decisions pertaining to customer acquisition and business direction in 2021 and 2022 that hurt the company. New CEO Alex Chriss will be in charge of righting the ship, but overall, PayPal can be a fairly easy business to manage if it sticks to what it's good at.
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Warren Buffett and his team at Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) aren't ones to buy stock on a whim. While we don't know what Buffett and company are eyeing next, we can scan the stock market for companies that fit their investment criteria, like cheap valuations, strong brands, and maybe certain industries (like banking, fintech or insurance). 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.
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PayPal would look right at home in Berkshire's portfolio So, why PayPal? PayPal's earnings are growing above the market pace PayPal hasn't lit the world on fire recently, which has caused it to fall from the ranks of other growth stocks. 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.
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While we don't know what Buffett and company are eyeing next, we can scan the stock market for companies that fit their investment criteria, like cheap valuations, strong brands, and maybe certain industries (like banking, fintech or insurance). Buffett once said, "Buy stock in a business that's so good that an idiot can run it because sooner or later one will." 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.
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2023-12-16 00:00:00 UTC
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2 Reasons to Buy Amazon Stock Like There's No Tomorrow
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https://www.nasdaq.com/articles/2-reasons-to-buy-amazon-stock-like-theres-no-tomorrow
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After suffering a 50% drop in its stock in 2022, Amazon (NASDAQ: AMZN) has delivered an impressive turnaround this year.
Last year, high inflation and rising interest rates curbed consumer discretionary spending and caused significant declines in Amazon's e-commerce segments. However, in 2023, the company pulled its retail business back to profitability while delivering multiple quarters of impressive earnings.
As a result, Amazon's stock is up around 80% since Jan. 1. The company is on a promising growth trajectory with a recovering retail business and an expanding position in artificial intelligence (AI).
Now is an excellent time to learn more about this tech giant and potentially invest before it's too late. Here are two reasons to buy Amazon's stock like there's no tomorrow.
1. Amazon's comeback this year proves it's one of the most reliable investments over the long term
In 2022, Amazon's two e-commerce segments posted operating losses totaling $10.6 billion. The company managed to stay profitable thanks to its highly lucrative cloud business, Amazon Web Services (AWS). However, the steep declines made investors question whether Amazon's business would fully recover and if those vulnerabilities made it a risky investment.
The tech giant reacted quickly to poor macro conditions by introducing cost-cutting measures. Throughout 2022, it closed or canceled construction on dozens of warehouses, wound down unprofitable projects like Amazon Care, and laid off thousands of workers. The company has continued to prioritize profits this year, cutting thousands more jobs as recently as November, specifically in its music streaming, gaming, and Alexa divisions.
Amazon's restructuring has clearly paid off. In the third quarter of 2023, the company posted revenue growth of 13% year over year, beating analysts' expectations by $1.5 billion. Meanwhile, operating income from its North American segment exceeded $4 billion, a marked improvement from the $412 million in losses it reported in the prior-year period.
Amazon's leadership proved its strength by quickly getting the company back on track after a challenging 2022. This year's stock price recovery illustrates why it's crucial for investors to take a long-term view and keep holding onto the shares of companies they believe in during market downturns. Those who sold Amazon's stock as it fell last year to cut their losses will not have benefited from its rebounding share price in 2023.
The company's solid management team has shown it can successfully navigate temporary headwinds, making its stock one you can confidently invest in over the long term.
2. Big gains projected over the next two years
E-commerce sales made up about 19% of all retail purchases worldwide in 2022, and that share is projected to hit 23% by 2027. Amazon dominates the industry in multiple countries. In the U.S. alone, it holds a 38% market share in online retail. In comparison, Walmart, which holds the second-largest share, is responsible for just 6%.
Amazon has significant earnings potential in the sector as consumers increasingly choose its site over brick-and-mortar stores.
Additionally, the company is making promising headway in AI through AWS. Grand View Research forecasts that the AI market will expand at a compound annual rate of 37% through 2030. Amazon is using AWS' leading market share in cloud computing to carve out a lucrative role in the industry.
This year, AWS has introduced a diverse range of new AI tools as it works to meet the growing demand for such services, and it also announced a venture into chip development.
Data by YCharts.
Amazon is dominating two rapidly expanding markets, and its stock price is likely to reflect that growth well into the future. However, that doesn't mean it won't deliver big gains in the short term.
The chart above shows its earnings could exceed $4 per share by fiscal 2025. That figure multiplied by Amazon's current forward price-to-earnings ratio of 56 yields a stock price of $257. In other words, if the market continues to value Amazon in the same way as it does now, its shares could rise by 72% over the next two years.
With a recovering e-commerce business and solid position in AI, that amount of growth is not out of the question. As a result, Amazon stock is a screaming buy ahead of the new year and one you can confidently buy like there's no tomorrow.
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 Amazon made the list -- but there are 9 other stocks you may be overlooking.
See the 10 stocks
*Stock Advisor returns as of December 11, 2023
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon and Walmart. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Last year, high inflation and rising interest rates curbed consumer discretionary spending and caused significant declines in Amazon's e-commerce segments. The company has continued to prioritize profits this year, cutting thousands more jobs as recently as November, specifically in its music streaming, gaming, and Alexa divisions. This year, AWS has introduced a diverse range of new AI tools as it works to meet the growing demand for such services, and it also announced a venture into chip development.
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However, in 2023, the company pulled its retail business back to profitability while delivering multiple quarters of impressive earnings. Amazon's comeback this year proves it's one of the most reliable investments over the long term In 2022, Amazon's two e-commerce segments posted operating losses totaling $10.6 billion. The company managed to stay profitable thanks to its highly lucrative cloud business, Amazon Web Services (AWS).
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Amazon's comeback this year proves it's one of the most reliable investments over the long term In 2022, Amazon's two e-commerce segments posted operating losses totaling $10.6 billion. Those who sold Amazon's stock as it fell last year to cut their losses will not have benefited from its rebounding share price in 2023. See the 10 stocks *Stock Advisor returns as of December 11, 2023 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors.
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However, in 2023, the company pulled its retail business back to profitability while delivering multiple quarters of impressive earnings. Amazon's comeback this year proves it's one of the most reliable investments over the long term In 2022, Amazon's two e-commerce segments posted operating losses totaling $10.6 billion. The Motley Fool has positions in and recommends Amazon and Walmart.
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2023-12-16 00:00:00 UTC
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India's Varun Beverages to enter S. Africa with $159 mln deal
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https://www.nasdaq.com/articles/indias-varun-beverages-to-enter-s.-africa-with-%24159-mln-deal
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Adds background, details on deal from paragraph 2 onwards
BENGALURU, Dec 19 (Reuters) - Pepsi India bottler Varun Beverages VARB.NS said on Tuesday it will buy South Africa-based The Beverage Company in a deal valued at 13.2 billion rupees ($158.71 million), enabling it an entry into Africa's largest market.
The Beverage Company bottles and distributes PepsiCo-branded non-alcoholic beverages in South Africa and has five manufacturing facilities in the country, in addition to operations in Lesotho, Eswatini, Namibia, and Botswana.
Varun Beverages, one of PepsiCo's PEP.O largest franchisees outside the United States, has the provision to accept minority co-investment from a "large equity fund", it said in a filing.
The company has over 30 manufacturing units in India, packaging and distributing beverages under the Pepsi, Mirinda and Tropicana labels.
The deal is expected to be completed on or before July 31. 2024, subject to regulatory approvals.
Shares of Varun Beverages closed 3.5% higher on Tuesday ahead of the announcement.
The Gurugram-based firm also signed 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 = 83.1725 Indian rupees)
(Reporting by Navamya Ganesh Acharya in Bengaluru; Editing by Janane Venkatraman)
((Navamya.GaneshAcharya@thomsonreuters.com; +91 8805175330 ;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Adds background, details on deal from paragraph 2 onwards BENGALURU, Dec 19 (Reuters) - Pepsi India bottler Varun Beverages VARB.NS said on Tuesday it will buy South Africa-based The Beverage Company in a deal valued at 13.2 billion rupees ($158.71 million), enabling it an entry into Africa's largest market. Varun Beverages, one of PepsiCo's PEP.O largest franchisees outside the United States, has the provision to accept minority co-investment from a "large equity fund", it said in a filing. The Gurugram-based firm also signed 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.
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Adds background, details on deal from paragraph 2 onwards BENGALURU, Dec 19 (Reuters) - Pepsi India bottler Varun Beverages VARB.NS said on Tuesday it will buy South Africa-based The Beverage Company in a deal valued at 13.2 billion rupees ($158.71 million), enabling it an entry into Africa's largest market. The Beverage Company bottles and distributes PepsiCo-branded non-alcoholic beverages in South Africa and has five manufacturing facilities in the country, in addition to operations in Lesotho, Eswatini, Namibia, and Botswana. The company has over 30 manufacturing units in India, packaging and distributing beverages under the Pepsi, Mirinda and Tropicana labels.
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Adds background, details on deal from paragraph 2 onwards BENGALURU, Dec 19 (Reuters) - Pepsi India bottler Varun Beverages VARB.NS said on Tuesday it will buy South Africa-based The Beverage Company in a deal valued at 13.2 billion rupees ($158.71 million), enabling it an entry into Africa's largest market. The Beverage Company bottles and distributes PepsiCo-branded non-alcoholic beverages in South Africa and has five manufacturing facilities in the country, in addition to operations in Lesotho, Eswatini, Namibia, and Botswana. 2024, subject to regulatory approvals.
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Adds background, details on deal from paragraph 2 onwards BENGALURU, Dec 19 (Reuters) - Pepsi India bottler Varun Beverages VARB.NS said on Tuesday it will buy South Africa-based The Beverage Company in a deal valued at 13.2 billion rupees ($158.71 million), enabling it an entry into Africa's largest market. Varun Beverages, one of PepsiCo's PEP.O largest franchisees outside the United States, has the provision to accept minority co-investment from a "large equity fund", it said in a filing. The company has over 30 manufacturing units in India, packaging and distributing beverages under the Pepsi, Mirinda and Tropicana labels.
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710957.0
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2023-12-16 00:00:00 UTC
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Accenture forecasts Q2 revenue below estimates on IT spending weakness
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https://www.nasdaq.com/articles/accenture-forecasts-q2-revenue-below-estimates-on-it-spending-weakness
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Adds share movement in paragraph 2, background in paragraphs 3-4
Dec 19 (Reuters) - IT services provider Accenture ACN.N forecast second-quarter revenue below Wall Street targets on Tuesday, anticipating cautious spending by clients as macroeconomic uncertainty remains an overhang.
Shares of the company fell 3% in trading before the bell. They have gained over 28% so far this year, outperforming the benchmark S&P 500 index .SPX.
India’s IT services giant Tata Consultancy ServicesTCS.NS reported weaker-than-expected quarterly results in October, while InfosysINFY.NS cut the upper end of its annual revenue forecast as clients were still hesitant to spend on discretionary projects. Both companies are Accenture's competitors in the outsourcing business.
Accenture expects revenue in the range of $15.40 billion to $16.00 billion. Analysts polled by LSEG had forecast revenue of $16.29 billion.
Its revenue in the first quarter ended Nov.30 rose 3%, to $16.2 billion.
(Reporting by Chavi Mehta in Bengaluru; Editing by Pooja Desai)
((Chavi.Mehta@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Adds share movement in paragraph 2, background in paragraphs 3-4 Dec 19 (Reuters) - IT services provider Accenture ACN.N forecast second-quarter revenue below Wall Street targets on Tuesday, anticipating cautious spending by clients as macroeconomic uncertainty remains an overhang. India’s IT services giant Tata Consultancy ServicesTCS.NS reported weaker-than-expected quarterly results in October, while InfosysINFY.NS cut the upper end of its annual revenue forecast as clients were still hesitant to spend on discretionary projects. (Reporting by Chavi Mehta in Bengaluru; Editing by Pooja Desai) ((Chavi.Mehta@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Adds share movement in paragraph 2, background in paragraphs 3-4 Dec 19 (Reuters) - IT services provider Accenture ACN.N forecast second-quarter revenue below Wall Street targets on Tuesday, anticipating cautious spending by clients as macroeconomic uncertainty remains an overhang. India’s IT services giant Tata Consultancy ServicesTCS.NS reported weaker-than-expected quarterly results in October, while InfosysINFY.NS cut the upper end of its annual revenue forecast as clients were still hesitant to spend on discretionary projects. Analysts polled by LSEG had forecast revenue of $16.29 billion.
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Adds share movement in paragraph 2, background in paragraphs 3-4 Dec 19 (Reuters) - IT services provider Accenture ACN.N forecast second-quarter revenue below Wall Street targets on Tuesday, anticipating cautious spending by clients as macroeconomic uncertainty remains an overhang. India’s IT services giant Tata Consultancy ServicesTCS.NS reported weaker-than-expected quarterly results in October, while InfosysINFY.NS cut the upper end of its annual revenue forecast as clients were still hesitant to spend on discretionary projects. Accenture expects revenue in the range of $15.40 billion to $16.00 billion.
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Adds share movement in paragraph 2, background in paragraphs 3-4 Dec 19 (Reuters) - IT services provider Accenture ACN.N forecast second-quarter revenue below Wall Street targets on Tuesday, anticipating cautious spending by clients as macroeconomic uncertainty remains an overhang. Shares of the company fell 3% in trading before the bell. Its revenue in the first quarter ended Nov.30 rose 3%, to $16.2 billion.
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2023-12-16 00:00:00 UTC
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Daqo (DQ) Inks Investment Agreement to Integrate Upstream Supply
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https://www.nasdaq.com/articles/daqo-dq-inks-investment-agreement-to-integrate-upstream-supply
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Daqo New Energy Corp. DQ has signed an investment agreement with its subsidiary Xinjiang Daqo to establish a silicon-based new materials industrial park. Located in China's Shihezi, the project is divided into two stages.
With an estimated expenditure of RMB7.5 billion, the project's first phase comprises the manufacture of 150,000MT of silicon metal, 50,000MT of polysilicon and 1.2 million pieces of silicon seed rod. The second phase of the project consists of the manufacture of 150,000MT of silicon metal, 50,000MT of polysilicon and 1.0 million pieces of silicon seed rod, with an estimated expenditure of RMB7.5 billion.
The development and completion timeline of this project, together with its implementation, is subject to market conditions, shareholder approval from Xinjiang Daqo and other regulatory filings and approvals, including those pertaining to energy usage. The project is anticipated to acquire certificates for renewable energy and green power as well as green electricity.
The company's latest development plan will let it take advantage of Shihezi's abundance of natural resources and its competitive electricity costs, which set it apart from other locations. The silicon metal project, in particular, is strategically significant to the company's capacity to generate long-term growth.
Its cost and quality competitive advantages will be strengthened by integrating the upstream supply, which will also reduce variations in the price of raw materials. Further, the company will be able to meet its supply chain traceability and due diligence obligations, which are essential to its future competitiveness, with the ability to supervise and regulate the upstream process.
Shares of Daqo have lost 47.2% over the past year against a 17.1% rise of its industry.
Image Source: Zacks Investment Research
The company projects that it will generate between 59,000 and 62,000 metric tons of polysilicon in the fourth quarter of 2023. In 2023, the company anticipates producing between 196,000 and 199,000 metric tons of silicon, taking into account the effects of yearly facility maintenance.
DAQO New Energy Corp. Price and Consensus
DAQO New Energy Corp. price-consensus-chart | DAQO New Energy Corp. Quote
Zacks Rank & Key Picks
Daqo currently carries a Zacks Rank #5 (Strong Sell).
Better-ranked stocks in the basic materials space include Denison Mines Corp. DNN, Axalta Coating Systems Ltd. AXTA and Hawkins, Inc. HWKN.
Denison Mines has a projected earnings growth rate of 100% for the current year. It currently carries a Zacks Rank #1 (Strong Buy). DNN delivered a trailing four-quarter earnings surprise of roughly 225%, on average. The stock is up around 60% in a year. You can see the complete list of today’s Zacks #1 Rank stocks here.
Axalta has a projected earnings growth rate of 5.4% for the current year. It currently carries a Zacks Rank #1. AXTA delivered a trailing four-quarter earnings surprise of roughly 6.7%, on average. The stock is up around 35.3% in a year.
Hawkins has a projected earnings growth rate of 21% for the current year. It currently carries a Zacks Rank #2 (Buy). Hawkins delivered a trailing four-quarter earnings surprise of roughly 27.5%, on average. HWKN shares are up around 84.7% in a year.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Denison Mine Corp (DNN) : Free Stock Analysis Report
DAQO New Energy Corp. (DQ) : Free Stock Analysis Report
Axalta Coating Systems Ltd. (AXTA) : Free Stock Analysis Report
Hawkins, Inc. (HWKN) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The company's latest development plan will let it take advantage of Shihezi's abundance of natural resources and its competitive electricity costs, which set it apart from other locations. Further, the company will be able to meet its supply chain traceability and due diligence obligations, which are essential to its future competitiveness, with the ability to supervise and regulate the upstream process. Better-ranked stocks in the basic materials space include Denison Mines Corp. DNN, Axalta Coating Systems Ltd. AXTA and Hawkins, Inc. HWKN.
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DAQO New Energy Corp. Price and Consensus DAQO New Energy Corp. price-consensus-chart | DAQO New Energy Corp. Quote Zacks Rank & Key Picks Daqo currently carries a Zacks Rank #5 (Strong Sell). Better-ranked stocks in the basic materials space include Denison Mines Corp. DNN, Axalta Coating Systems Ltd. AXTA and Hawkins, Inc. HWKN. Click to get this free report Denison Mine Corp (DNN) : Free Stock Analysis Report DAQO New Energy Corp. (DQ) : Free Stock Analysis Report Axalta Coating Systems Ltd. (AXTA) : Free Stock Analysis Report Hawkins, Inc. (HWKN) : Free Stock Analysis Report To read this article on Zacks.com click here.
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DAQO New Energy Corp. Price and Consensus DAQO New Energy Corp. price-consensus-chart | DAQO New Energy Corp. Quote Zacks Rank & Key Picks Daqo currently carries a Zacks Rank #5 (Strong Sell). Hawkins has a projected earnings growth rate of 21% for the current year. Click to get this free report Denison Mine Corp (DNN) : Free Stock Analysis Report DAQO New Energy Corp. (DQ) : Free Stock Analysis Report Axalta Coating Systems Ltd. (AXTA) : Free Stock Analysis Report Hawkins, Inc. (HWKN) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The stock is up around 60% in a year. The stock is up around 35.3% in a year. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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bf1ff392-b419-49ab-8e57-7ce961d72f6a
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2023-12-16 00:00:00 UTC
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Woodward (WWD) Appears Primed for Uptrend With 40.6% YTD Gain
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https://www.nasdaq.com/articles/woodward-wwd-appears-primed-for-uptrend-with-40.6-ytd-gain
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Woodward WWD is witnessing steady momentum, with shares having rallied 40.6% year to date compared with 26.6% and 23.4% growth of the sub-industry and S&P Composite, respectively.
Woodward is a leading designer, manufacturer and service provider of energy control and optimization solutions. The company provides a wide array of products for fuel, combustion, fluid, actuation and electronic applications, which serve the commercial aerospace, business jet, military and energy markets.
With healthy fundamentals and strong growth opportunities, this Zacks Rank #2 (Buy) stock appears to be a solid investment option at the moment.
Apart from a favorable rank, WWD has a VGM Score of A. Per Zacks proprietary methodology, stocks with a combination of a Zacks Rank #1 (Strong Buy) or 2 and a VGM Score of A or B offer solid investment opportunities.
Woodward’s earnings per share are expected to climb 16.7% and 15% on a year-over-year basis to $4.92 and $5.65 in fiscal 2024 and 2025, respectively. The Zacks Consensus Estimate for fiscal 2024 and 2025 earnings have improved by 7% and 14.8%, respectively, in the past 60 days.
Image Source: Zacks Investment Research
Revenues for fiscal 2024 and 2025 are forecast to rise 9.6% and 5.6% to $3.2 billion and $3.37 billion, respectively.
WWD’s long-term earnings growth rate is pegged at 15.6%.
Growth Catalysts
Woodward’s sales performance is benefiting from strong end-market demand across most of the verticals. Also, the strategic investments made to strengthen the supply chain are other tailwinds. Price realization, favorable product mix and productivity and efficiency improvements are driving bottom-line improvement.
The Industrial segment is gaining from solid demand for power generation, especially in Asia and continued requirement for backup power for data centers. In the last reported quarter, segmental net sales totaled $322 million, up 39% from the prior-year quarter due to higher volumes across all markets.
Increasing investment in LNG infrastructure development and higher demand for alternative fuels across the marine industry are positives. The Industrial segment is also likely to be aided by momentum in the global marine market brought on by higher utilization and rising shipbuilding rates. For fiscal 2024, management expects Industrial segment’s sales growth to be between 4% and 6%.
Higher commercial OEM and commercial aftermarket sales due to improving passenger traffic and fleet utilization are driving steady momentum in the Aerospace segment. In the last reported quarter, sales were up 11% year over year to $455 million.
The Aerospace segment is likely to gain from momentum in commercial markets as well as higher defense activity. For fiscal 2024, management expects the Aerospace segment’s sales growth to be between 10% and 14%.
The company’s capital allocation strategy to enhance long-term shareholders’ value is noteworthy. Woodward repurchased shares worth $126 million in fiscal 2023. In January 2022, WWD authorized a new $800 million two-year stock repurchase program, reinforcing its financial position and positive outlook. The company has $228 million remaining under its share repurchase authorization.
Softness in defense OEM sales due to lower guided weapons sales is a major headwind. Low visibility into the China on-highway natural gas truck market, along with global macroeconomic weakness, forex volatility and rising costs, are added concerns.
Inflationary pressure and higher annual incentive compensation are weighing down its bottom-line performance.
Other Key Picks
Some other top-ranked stocks worth consideration in the broader technology space are Blackbaud BLKB, NETGEAR NTGR and Watts Water Technologies WTS. While Watts Water Technologies sports a Zacks Rank #1 (Strong Buy), Blackbaud and NETGEAR, each carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Blackbaud’s 2023 EPS improved 1.8% in the past 60 days to $3.86. BLKB’s long-term earnings growth rate is 23.4%.
Blackbaud’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 10.6%. Shares of BLKB have surged 51% in the past year.
The Zacks Consensus for NETGEAR’s 2023 EPS has remained unchanged in the past 30 days at a loss of 9 cents. NTGR’s earnings outpaced the Zacks Consensus Estimate in three of the last four quarters while missing in the remaining quarter. The average surprise was 127.5%. Shares of NTGR are down 21.2% in the past year.
The Zacks Consensus Estimate for Watts Water Technologies 2023 EPS has improved by 3.9% in the past 60 days to $8.08.
WTS’ earnings outpaced the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 11.8%. Shares of WTS have jumped 41.6% in the past year.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
NETGEAR, Inc. (NTGR) : Free Stock Analysis Report
Blackbaud, Inc. (BLKB) : Free Stock Analysis Report
Watts Water Technologies, Inc. (WTS) : Free Stock Analysis Report
Woodward, Inc. (WWD) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The company provides a wide array of products for fuel, combustion, fluid, actuation and electronic applications, which serve the commercial aerospace, business jet, military and energy markets. With healthy fundamentals and strong growth opportunities, this Zacks Rank #2 (Buy) stock appears to be a solid investment option at the moment. Low visibility into the China on-highway natural gas truck market, along with global macroeconomic weakness, forex volatility and rising costs, are added concerns.
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Other Key Picks Some other top-ranked stocks worth consideration in the broader technology space are Blackbaud BLKB, NETGEAR NTGR and Watts Water Technologies WTS. While Watts Water Technologies sports a Zacks Rank #1 (Strong Buy), Blackbaud and NETGEAR, each carry a Zacks Rank #2. Click to get this free report NETGEAR, Inc. (NTGR) : Free Stock Analysis Report Blackbaud, Inc. (BLKB) : Free Stock Analysis Report Watts Water Technologies, Inc. (WTS) : Free Stock Analysis Report Woodward, Inc. (WWD) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Per Zacks proprietary methodology, stocks with a combination of a Zacks Rank #1 (Strong Buy) or 2 and a VGM Score of A or B offer solid investment opportunities. While Watts Water Technologies sports a Zacks Rank #1 (Strong Buy), Blackbaud and NETGEAR, each carry a Zacks Rank #2. Click to get this free report NETGEAR, Inc. (NTGR) : Free Stock Analysis Report Blackbaud, Inc. (BLKB) : Free Stock Analysis Report Watts Water Technologies, Inc. (WTS) : Free Stock Analysis Report Woodward, Inc. (WWD) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The Zacks Consensus Estimate for fiscal 2024 and 2025 earnings have improved by 7% and 14.8%, respectively, in the past 60 days. For fiscal 2024, management expects Industrial segment’s sales growth to be between 4% and 6%. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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b6035a3c-dd4a-4e89-818d-ae59251d081c
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710960.0
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2023-12-16 00:00:00 UTC
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Better Artificial Intelligence (AI) Stock: Alphabet vs. Amazon
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DCOMP
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https://www.nasdaq.com/articles/better-artificial-intelligence-ai-stock%3A-alphabet-vs.-amazon-0
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It's not often that a single market is able to reverse the effects of an overall market downturn. While it didn't work completely alone, the artificial intelligence (AI) industry was one of the leading growth drivers in the stock market's recovery in 2023.
In 2022, macroeconomic headwinds saw the Nasdaq Composite plunge 33%. However, the same index has surged 42% since Jan. 1, almost wholly based on excitement over AI. The launch of OpenAI's ChatGPT in November 2022 reignited interest in the technology and has seen countless tech firms pivot their businesses to the sector.
As a result, the AI market is projected to deliver a compound annual growth rate of 37% through 2030 (per Grand View Research). Despite bull runs for many AI stocks this year, there are still some attractive opportunities to invest in the $137 billion industry.
Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) and Amazon (NASDAQ: AMZN) are two compelling options -- both are home to some of the world's most recognizable brands and are heavily investing in the technology. So, let's examine whether Alphabet or Amazon is currently the better AI stock.
Alphabet
Alphabet is no stranger to AI, with CEO Sundar Pichai saying in a blog post earlier this year that the tech giant was seven years into its journey as "an AI-first company." However, like many firms, Alphabet has ramped up its expansion into the market in 2023.
The company started 2023 by unveiling Bard -- an AI chatbot designed to be an alternative to ChatGPT -- in February. The launch was a bit of a fumble, with Bard making mistakes at its debut presentation and leaving investors questioning Alphabet's prospects in AI. However, the company seemingly learned from the miss, pulling back to take the rest of the year to get its next project right.
In 2024, Alphabet will launch Gemini, a new large language model expected to be highly competitive with OpenAI's GPT-4.
Combined with potent brands such as Google, Android, and YouTube, the company has almost endless opportunities to monetize its AI technology. From the ability to offer more efficient advertising to bringing AI upgrades to Google Search and Cloud, Alphabet could play a crucial role in getting AI into the hands of billions of consumers.
Moreover, Alphabet posted more than $77 billion in free cash flow in 2023, more than Microsoft, Amazon, or Meta Platforms. The company has the funds and brand recognition to overcome potential headwinds and flourish in AI over the long term.
Amazon
Amazon has been a favorite on Wall Street in 2023, with its stock up about 80% since Jan. 1. The company has rallied investors with a return to growth in its e-commerce segments and a quickly expanding position in AI.
Businesses worldwide are increasingly seeking ways to integrate AI into their workflows. Meanwhile, cloud platforms like Amazon Web Services (AWS) are well equipped to meet rising demand and profit significantly over the long term.
AWS holds a leading 32% market share in cloud computing, ahead of Microsoft's Azure and Google Cloud. Amazon is using its cloud dominance to get ahead in AI, introducing a diverse range of services to AWS this year. New tools such as Bedrock, CodeWhisperer, and HealthScribe use generative technology to help businesses boost productivity and could attract new customers to AWS in the coming years.
In addition to software, AWS announced a venture into chip development in June. Market leader Nvidia has enjoyed soaring earnings in 2023 thanks to a spike in AI chip sales. Amazon plans to challenge Nvidia's dominance in the near future as it works to strengthen and diversify its role in the budding industry.
Is Alphabet or Amazon the better artificial intelligence (AI) stock?
Alphabet and Amazon attract millions, if not billions, of users daily, making it challenging to go a single day without using at least one of their products. Their penetration in the consumer and commercial markets has given them massive earnings potential in AI over the long term. However, just because a company dominates an industry doesn't mean its stock trades at the right price.
Data by YCharts
This chart compares these companies' price-to-earnings ratios and price-to-free cash flows, with Alphabet winning on both fronts. Alphabet's significantly lower figures suggest its stock currently offers more value and is a bargain compared to Amazon's.
Alphabet has been slightly overshadowed in AI by peers like Amazon and Microsoft in 2023. However, that has only kept its shares at an attractive price point, making it a screaming buy ahead of 2024 -- and the better AI stock.
Should you invest $1,000 in Alphabet right now?
Before you buy stock in Alphabet, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Alphabet wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
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
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 Alphabet, Amazon, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The launch was a bit of a fumble, with Bard making mistakes at its debut presentation and leaving investors questioning Alphabet's prospects in AI. Meanwhile, cloud platforms like Amazon Web Services (AWS) are well equipped to meet rising demand and profit significantly over the long term. New tools such as Bedrock, CodeWhisperer, and HealthScribe use generative technology to help businesses boost productivity and could attract new customers to AWS in the coming years.
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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. 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. The Motley Fool has positions in and recommends Alphabet, Amazon, Meta Platforms, Microsoft, and Nvidia.
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So, let's examine whether Alphabet or Amazon is currently the better AI stock. Alphabet Alphabet is no stranger to AI, with CEO Sundar Pichai saying in a blog post earlier this year that the tech giant was seven years into its journey as "an AI-first company." 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.
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Before you buy stock in Alphabet, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Alphabet wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 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 Alphabet, Amazon, Meta Platforms, Microsoft, and Nvidia.
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53c97bd5-033e-4f39-b4af-da121b851f25
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710961.0
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2023-12-16 00:00:00 UTC
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Do Options Traders Know Something About Cheesecake Factory (CAKE) Stock We Don't?
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DCOMP
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https://www.nasdaq.com/articles/do-options-traders-know-something-about-cheesecake-factory-cake-stock-we-dont-0
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nan
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Investors in The Cheesecake Factory Incorporated CAKE need to pay close attention to the stock based on moves in the options market lately. That is because the Jan 19, 2024 $17.50 Call had some of the highest implied volatility of all equity options today.
What is Implied Volatility?
Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
What do the Analysts Think?
Clearly, options traders are pricing in a big move for Cheesecake Factory shares, but what is the fundamental picture for the company? Currently, Cheesecake Factory is a Zacks Rank #3 (Hold) in the Retail - Restaurants industry that ranks in the Top 18% of our Zacks Industry Rank. Over the last 60 days, three analysts have increased the earnings estimates for the current quarter, while six have revised the estimates downward. The net effect has taken our Zacks Consensus Estimate for the current quarter from of 80 cents per share to 74 cents cents in that period.
Given the way analysts feel Cheesecake Factory right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.
Looking to Trade Options?
Check out the simple yet high-powered approach that Zacks Executive VP Kevin Matras has used to close recent double and triple-digit winners. In addition to impressive profit potential, these trades can actually reduce your risk.
Click to see the trades now >>
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The Cheesecake Factory Incorporated (CAKE) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. Check out the simple yet high-powered approach that Zacks Executive VP Kevin Matras has used to close recent double and triple-digit winners. Click to see the trades now >> Zacks Reveals ChatGPT "Sleeper" Stock One little-known company is at the heart of an especially brilliant Artificial Intelligence sector.
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Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research? Click to get this free report The Cheesecake Factory Incorporated (CAKE) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. Currently, Cheesecake Factory is a Zacks Rank #3 (Hold) in the Retail - Restaurants industry that ranks in the Top 18% of our Zacks Industry Rank. Oftentimes, options traders look for options with high levels of implied volatility to sell premium.
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Given the way analysts feel Cheesecake Factory right now, this huge implied volatility could mean there’s a trade developing. Looking to Trade Options? Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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b0df8b4b-03fa-4781-acd6-ead1c94de904
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710962.0
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2023-12-16 00:00:00 UTC
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AngloGold Ashanti To Invest C$22.05 Mln In G2 Goldfields
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DCOMP
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https://www.nasdaq.com/articles/anglogold-ashanti-to-invest-c%2422.05-mln-in-g2-goldfields
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(RTTNews) - AngloGold Ashanti plc (AU), a gold mining company, Tuesday announced that it intends to invest C$22.05 million in G2 Goldfields Inc.(GTWO.V, GUYGF.PK) by subscribing to 24.5 million shares at C$0.90 per share.
G2 is actively exploring in Guyana, a country which hosts the Guiana Shield, one of the world's most prospective gold provinces, as per the company. AngloGold believes that G2's exploration properties have significant growth potential.
On completion of the deal, AngloGold would own around 11.7 percent of G2 Goldfields' share capital.
The subscription is expected to close in January 2024.
In pre-market activity, AngloGold shares are trading at $18.13, up 1.68% on the New York Stock Exchange and G2 shares closed at C$0.67, down 4.28% in Toronto.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - AngloGold Ashanti plc (AU), a gold mining company, Tuesday announced that it intends to invest C$22.05 million in G2 Goldfields Inc.(GTWO.V, GUYGF.PK) by subscribing to 24.5 million shares at C$0.90 per share. G2 is actively exploring in Guyana, a country which hosts the Guiana Shield, one of the world's most prospective gold provinces, as per the company. On completion of the deal, AngloGold would own around 11.7 percent of G2 Goldfields' share capital.
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(RTTNews) - AngloGold Ashanti plc (AU), a gold mining company, Tuesday announced that it intends to invest C$22.05 million in G2 Goldfields Inc.(GTWO.V, GUYGF.PK) by subscribing to 24.5 million shares at C$0.90 per share. G2 is actively exploring in Guyana, a country which hosts the Guiana Shield, one of the world's most prospective gold provinces, as per the company. In pre-market activity, AngloGold shares are trading at $18.13, up 1.68% on the New York Stock Exchange and G2 shares closed at C$0.67, down 4.28% in Toronto.
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(RTTNews) - AngloGold Ashanti plc (AU), a gold mining company, Tuesday announced that it intends to invest C$22.05 million in G2 Goldfields Inc.(GTWO.V, GUYGF.PK) by subscribing to 24.5 million shares at C$0.90 per share. In pre-market activity, AngloGold shares are trading at $18.13, up 1.68% on the New York Stock Exchange and G2 shares closed at C$0.67, down 4.28% in Toronto. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - AngloGold Ashanti plc (AU), a gold mining company, Tuesday announced that it intends to invest C$22.05 million in G2 Goldfields Inc.(GTWO.V, GUYGF.PK) by subscribing to 24.5 million shares at C$0.90 per share. G2 is actively exploring in Guyana, a country which hosts the Guiana Shield, one of the world's most prospective gold provinces, as per the company. AngloGold believes that G2's exploration properties have significant growth potential.
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e54b26e4-eeec-4853-b886-d91cbaf9e9b4
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710963.0
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2023-12-16 00:00:00 UTC
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Validea Motley Fool Strategy Daily Upgrade Report - 12/19/2023
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DCOMP
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https://www.nasdaq.com/articles/validea-motley-fool-strategy-daily-upgrade-report-12-19-2023
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nan
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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.
ATLANTICUS HOLDINGS CORP (ATLC) is a small-cap value stock in the Consumer Financial Services industry. The rating according to our strategy based on Motley Fool changed from 65% to 79% 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: Atlanticus Holdings Corporation is a financial technology company engaged in facilitating consumer credit through financial technology and related services. The Company's segments include Credit as a Service (CaaS) and Auto Finance Segment. CaaS segment provides private label credit and general-purpose credit cards originated by lenders through multiple channels, including retail and healthcare, direct mail solicitation, digital marketing and partnerships with third parties. Its flexible technology solutions allow bank partners to integrate its paperless process and instant decisioning platform with the existing infrastructure of participating retailers and service providers. Auto Finance segment conducted through its CAR platform. Its CAR primarily purchases and/or services loans secured by automobiles and provides floor-plan financing for pre-qualified network of independent automotive dealers and automotive finance companies in the buy-here and pay-here used car business.
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: FAIL
Detailed Analysis of ATLANTICUS HOLDINGS CORP
ATLC Guru Analysis
ATLC Fundamental Analysis
TRIUMPH FINANCIAL INC (TFIN) is a small-cap growth stock in the Money Center Banks 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: Triumph Financial, Inc. is a financial holding company. The Company's segments include Banking, Factoring and Payments. The Banking segment includes the operations of TBK Bank, which offers products and services that are focused on serving the local communities in which it operates and creating full banking relationships with both personal and commercial clients. TBK Bank operates retail branch networks in three geographic markets, including a mid-western division, a western division, and a mountain division. Its traditional banking offerings include a full suite of lending and deposit products and services. The Factoring segment includes the operations of Triumph Financial Services, which offers factoring services to its customers across a variety of industries with a focus on transportation factoring. The Payments segment includes the operations of TBK Bank's TriumphPay division, which is the payments network presentment, audit, and payment of over-the-road trucking invoices.
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: FAIL
INSIDER HOLDINGS: FAIL
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): FAIL
AVERAGE SHARES OUTSTANDING: PASS
SALES: PASS
DAILY DOLLAR VOLUME: PASS
PRICE: PASS
INCOME TAX PERCENTAGE: PASS
Detailed Analysis of TRIUMPH FINANCIAL INC
TFIN Guru Analysis
TFIN Fundamental Analysis
MUELLER INDUSTRIES INC (MLI) is a mid-cap value stock in the Misc. Fabricated Products industry. The rating according to our strategy based on Motley Fool changed from 59% 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: Mueller Industries, Inc. is a manufacturer of copper, brass, aluminum and plastic products. The Company manufacture a range of products, including copper tube and fittings; line sets; PEX plastic tube and fittings; aluminum and brass forgings; aluminum impact extrusions; compressed gas valves; refrigeration valves and fittings; pressure vessels; coaxial heat exchangers; and insulated flexible duct systems. It operates in the United States and in Canada, Mexico, Great Britain, South Korea, the Middle East and China. It operates through three segments, which include Piping Systems segment, which is composed of Domestic Piping Systems Group, Great Lakes Copper, Heatlink Group, European Operations, Trading Group, Jungwoo-Mueller and Mueller Middle East; The Industrial Metals segment that is composed of Brass Rod, Impacts & Micro Gauge and Brass Value-Added Products, and Climate segment, which is composed of Refrigeration Products, Westermeyer, Turbotec, Flex Duct and Linesets, Inc.
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: FAIL
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: PASS
"THE FOOL RATIO" (P/E TO GROWTH): PASS
AVERAGE SHARES OUTSTANDING: PASS
SALES: FAIL
DAILY DOLLAR VOLUME: FAIL
PRICE: PASS
INCOME TAX PERCENTAGE: PASS
Detailed Analysis of MUELLER INDUSTRIES INC
MLI Guru Analysis
MLI 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.
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Its flexible technology solutions allow bank partners to integrate its paperless process and instant decisioning platform with the existing infrastructure of participating retailers and service providers. 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.
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Detailed Analysis of ATLANTICUS HOLDINGS CORP ATLC Guru Analysis ATLC Fundamental Analysis TRIUMPH FINANCIAL INC (TFIN) is a small-cap growth stock in the Money Center Banks industry. It operates through three segments, which include Piping Systems segment, which is composed of Domestic Piping Systems Group, Great Lakes Copper, Heatlink Group, European Operations, Trading Group, Jungwoo-Mueller and Mueller Middle East; The Industrial Metals segment that is composed of Brass Rod, Impacts & Micro Gauge and Brass Value-Added Products, and Climate segment, which is composed of Refrigeration Products, Westermeyer, Turbotec, Flex Duct and Linesets, Inc. Detailed Analysis of MUELLER INDUSTRIES INC MLI Guru Analysis MLI 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.
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Detailed Analysis of ATLANTICUS HOLDINGS CORP ATLC Guru Analysis ATLC Fundamental Analysis TRIUMPH FINANCIAL INC (TFIN) is a small-cap growth stock in the Money Center Banks industry. The Banking segment includes the operations of TBK Bank, which offers products and services that are focused on serving the local communities in which it operates and creating full banking relationships with both personal and commercial clients. It operates through three segments, which include Piping Systems segment, which is composed of Domestic Piping Systems Group, Great Lakes Copper, Heatlink Group, European Operations, Trading Group, Jungwoo-Mueller and Mueller Middle East; The Industrial Metals segment that is composed of Brass Rod, Impacts & Micro Gauge and Brass Value-Added Products, and Climate segment, which is composed of Refrigeration Products, Westermeyer, Turbotec, Flex Duct and Linesets, Inc.
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The following are today's upgrades for Validea's Small-Cap Growth Investor model based on the published strategy of Motley Fool. The Company's segments include Credit as a Service (CaaS) and Auto Finance Segment. Detailed Analysis of MUELLER INDUSTRIES INC MLI Guru Analysis MLI 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.
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8682c428-03d1-4914-b3ee-9cd2f6fb03e0
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710964.0
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2023-12-16 00:00:00 UTC
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ExxonMobil Is Working on a Breakthrough Technology to Capture This Potentially $4 Trillion Opportunity
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DCOMP
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https://www.nasdaq.com/articles/exxonmobil-is-working-on-a-breakthrough-technology-to-capture-this-potentially-%244-trillion
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ExxonMobil (NYSE: XOM) believes carbon capture, utilization, and sequestration (CCUS) will play a vital role in helping reduce global emissions. The energy company sees this technology eventually becoming a massive global industry that will one day rival the size of the oil and gas market. It estimates the CCUS market could reach $4 trillion by 2050.
That's driving its investment in developing a CCUS platform. It's currently working on a potential breakthrough technology with FuelCell Energy (NASDAQ: FCEL) that could capture carbon emissions directly from industrial sites while also producing energy, which could lower costs and emissions. It's one of many steps ExxonMobil is taking to build out what could eventually be a very valuable lower-carbon energy business.
A potential breakthrough technology
An ExxonMobil affiliate plans to build a pilot plant at its Rotterdam Manufacturing complex to test carbonate fuel cell (CFC) technology. This test project would gather data on the performance and operability of the technology jointly developed with FuelCell Energy. It would also provide the companies with information on potential technical issues and the costs of installing and operating the CFC plant. If successful, Exxon could deploy this technology at its other manufacturing sites.
CFC can capture carbon dioxide emissions directly from an industrial emissions source. On top of that, they can make valuable co-products like low carbon power, heat, and hydrogen. The technology's ability to simultaneously capture carbon and produce electricity makes it a "game-changer for the industry," stated FuelCell CEO Jason Few in the press release unveiling the pilot project. That combination increases the efficiency of the carbon capture process while providing valuable revenue streams to help reduce the cost of capturing and sequestering carbon dioxide.
The modular technology makes it easy to adapt to a wide range of sites. It could become an economical solution to reduce emissions across a range of industries.
Building out a CCUS platform
ExxonMobil has been steadily investing more money into lower carbon energy. The oil giant recently updated its long-term strategic investment plan, boosting its planned spending to $20 billion through 2027. That's its third increase since it launched its lower carbon energy platform three years ago and $3 billion above its prior target.
The company is spending half that capital on projects that reduce the emissions at its existing facilities, like its Rotterdam pilot project. It's investing the rest of the money to build several lower-carbon energy platforms, including CCUS, hydrogen, biofuels, and lithium.
Exxon is working on developing end-to-end CCUS solutions. It has already partnered with several large industrial companies on carbon capture projects. Exxon will transport carbon captured on-site to underground sequestration facilities it's developing for permanent storage. It has secured large-scale commercial contracts that support these projects.
The oil giant significantly enhanced its ability to transport and store carbon dioxide by acquiring Denbury Resources earlier this year. It paid nearly $5 billion for the oil company, which owned and operated the country's largest carbon dioxide pipeline network and 10 strategically located sequestration sites. That acquisition will help accelerate Exxon's ability to provide decarbonization services to customers in the coming years.
Exxon believes CCUS could eventually become a multi-billion-dollar annual revenue stream. Further, unlike its legacy oil and gas business, the earnings from CCUS would come from long-term contracts that supply stable and predictable revenue. That would help mute some of the volatility of its earnings.
Working on a potentially game-changing solution
Exxon believes that CCUS technology will play a crucial role in supporting a lower carbon world. That drives its view that it could become a very lucrative global industry. If Exxon is right, CCUS could become a major growth driver for the energy giant in the coming years. That upside makes it a potentially compelling long-term investment opportunity.
Should you invest $1,000 in ExxonMobil right now?
Before you buy stock in ExxonMobil, 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 ExxonMobil 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 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.
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ExxonMobil (NYSE: XOM) believes carbon capture, utilization, and sequestration (CCUS) will play a vital role in helping reduce global emissions. The technology's ability to simultaneously capture carbon and produce electricity makes it a "game-changer for the industry," stated FuelCell CEO Jason Few in the press release unveiling the pilot project. It paid nearly $5 billion for the oil company, which owned and operated the country's largest carbon dioxide pipeline network and 10 strategically located sequestration sites.
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It's currently working on a potential breakthrough technology with FuelCell Energy (NASDAQ: FCEL) that could capture carbon emissions directly from industrial sites while also producing energy, which could lower costs and emissions. A potential breakthrough technology An ExxonMobil affiliate plans to build a pilot plant at its Rotterdam Manufacturing complex to test carbonate fuel cell (CFC) technology. Working on a potentially game-changing solution Exxon believes that CCUS technology will play a crucial role in supporting a lower carbon world.
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It's currently working on a potential breakthrough technology with FuelCell Energy (NASDAQ: FCEL) that could capture carbon emissions directly from industrial sites while also producing energy, which could lower costs and emissions. Building out a CCUS platform ExxonMobil has been steadily investing more money into lower carbon energy. Before you buy stock in ExxonMobil, 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 ExxonMobil wasn't one of them.
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That's driving its investment in developing a CCUS platform. It's currently working on a potential breakthrough technology with FuelCell Energy (NASDAQ: FCEL) that could capture carbon emissions directly from industrial sites while also producing energy, which could lower costs and emissions. Further, unlike its legacy oil and gas business, the earnings from CCUS would come from long-term contracts that supply stable and predictable revenue.
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89e913ad-b492-4fdd-8607-f807a8be633f
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710965.0
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2023-12-16 00:00:00 UTC
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Should You Invest in the iShares U.S. Consumer Discretionary ETF (IYC)?
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DCOMP
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https://www.nasdaq.com/articles/should-you-invest-in-the-ishares-u.s.-consumer-discretionary-etf-iyc-11
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nan
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nan
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If you're interested in broad exposure to the Consumer Discretionary - Broad segment of the equity market, look no further than the iShares U.S. Consumer Discretionary ETF (IYC), a passively managed exchange traded fund launched on 06/12/2000.
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
Investor-friendly, sector ETFs provide many options to gain low risk and diversified exposure to a broad group of companies in particular sectors. Consumer Discretionary - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 11, placing it in bottom 31%.
Index Details
The fund is sponsored by Blackrock. It has amassed assets over $878.72 million, making it one of the largest ETFs attempting to match the performance of the Consumer Discretionary - Broad segment of the equity market. IYC seeks to match the performance of the Dow Jones U.S. Consumer Services Index before fees and expenses.
The Russell 1000 Consumer Disc 40 Act 15/22.5 Daily Capped Index measures the performance of the consumer services sector of the U.S. equity market.
Costs
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.40%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 0.46%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Consumer Discretionary sector--about 70.90% of the portfolio. Telecom and Consumer Staples round out the top three.
Looking at individual holdings, Amazon Com Inc (AMZN) accounts for about 13.74% of total assets, followed by Tesla Inc (TSLA) and Costco Wholesale Corp (COST).
The top 10 holdings account for about 51.04% of total assets under management.
Performance and Risk
The ETF has added roughly 34.19% and is up about 31.22% so far this year and in the past one year (as of 12/19/2023), respectively. IYC has traded between $55.69 and $76.08 during this last 52-week period.
The ETF has a beta of 1.14 and standard deviation of 22.11% for the trailing three-year period, making it a medium risk choice in the space. With about 182 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares U.S. Consumer Discretionary ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, IYC is a reasonable option for those seeking exposure to the Consumer Discretionary ETFs area of the market. Investors might also want to consider some other ETF options in the space.
Vanguard Consumer Discretionary ETF (VCR) tracks MSCI US Investable Market Consumer Discretionary 25/50 Index and the Consumer Discretionary Select Sector SPDR ETF (XLY) tracks Consumer Discretionary Select Sector Index. Vanguard Consumer Discretionary ETF has $5.23 billion in assets, Consumer Discretionary Select Sector SPDR ETF has $19.99 billion. VCR has an expense ratio of 0.10% and XLY charges 0.10%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
iShares U.S. Consumer Discretionary ETF (IYC): ETF Research Reports
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Costco Wholesale Corporation (COST) : Free Stock Analysis Report
Tesla, Inc. (TSLA) : Free Stock Analysis Report
Consumer Discretionary Select Sector SPDR ETF (XLY): ETF Research Reports
Vanguard Consumer Discretionary ETF (VCR): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. It has amassed assets over $878.72 million, making it one of the largest ETFs attempting to match the performance of the Consumer Discretionary - Broad segment of the equity market. Looking at individual holdings, Amazon Com Inc (AMZN) accounts for about 13.74% of total assets, followed by Tesla Inc (TSLA) and Costco Wholesale Corp (COST).
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Vanguard Consumer Discretionary ETF (VCR) tracks MSCI US Investable Market Consumer Discretionary 25/50 Index and the Consumer Discretionary Select Sector SPDR ETF (XLY) tracks Consumer Discretionary Select Sector Index. Vanguard Consumer Discretionary ETF has $5.23 billion in assets, Consumer Discretionary Select Sector SPDR ETF has $19.99 billion. Click to get this free report iShares U.S. Consumer Discretionary ETF (IYC): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Costco Wholesale Corporation (COST) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Consumer Discretionary Select Sector SPDR ETF (XLY): ETF Research Reports Vanguard Consumer Discretionary ETF (VCR): ETF Research Reports To read this article on Zacks.com click here.
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Vanguard Consumer Discretionary ETF (VCR) tracks MSCI US Investable Market Consumer Discretionary 25/50 Index and the Consumer Discretionary Select Sector SPDR ETF (XLY) tracks Consumer Discretionary Select Sector Index. Vanguard Consumer Discretionary ETF has $5.23 billion in assets, Consumer Discretionary Select Sector SPDR ETF has $19.99 billion. Click to get this free report iShares U.S. Consumer Discretionary ETF (IYC): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Costco Wholesale Corporation (COST) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Consumer Discretionary Select Sector SPDR ETF (XLY): ETF Research Reports Vanguard Consumer Discretionary ETF (VCR): ETF Research Reports To read this article on Zacks.com click here.
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If you're interested in broad exposure to the Consumer Discretionary - Broad segment of the equity market, look no further than the iShares U.S. Consumer Discretionary ETF (IYC), a passively managed exchange traded fund launched on 06/12/2000. The top 10 holdings account for about 51.04% of total assets under management. Vanguard Consumer Discretionary ETF (VCR) tracks MSCI US Investable Market Consumer Discretionary 25/50 Index and the Consumer Discretionary Select Sector SPDR ETF (XLY) tracks Consumer Discretionary Select Sector Index.
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356751a4-c98d-4446-b1fa-3ed94e96a1e5
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710966.0
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2023-12-16 00:00:00 UTC
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Is Direxion NASDAQ-100 Equal Weighted Index Shares (QQQE) a Strong ETF Right Now?
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DCOMP
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https://www.nasdaq.com/articles/is-direxion-nasdaq-100-equal-weighted-index-shares-qqqe-a-strong-etf-right-now-3
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nan
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nan
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The Direxion NASDAQ-100 Equal Weighted Index Shares (QQQE) made its debut on 03/21/2012, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - Large Cap Growth category of the market.
What Are Smart Beta ETFs?
The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.
Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor & Index
Managed by Direxion, QQQE has amassed assets over $1.02 billion, making it one of the average sized ETFs in the Style Box - Large Cap Growth. This particular fund seeks to match the performance of the NASDAQ-100 Equal Weighted Index before fees and expenses.
The NASDAQ-100 Equal Weighted Index consists of companies in the NASDAQ-100 Index but each of the securities is initially set at a weight of 1.00% of the Index. The NASDAQ-100 Index includes 100 of the largest non-financial securities listed on NASDAQ based on capitalization.
Cost & Other Expenses
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for QQQE are 0.35%, which makes it on par with most peer products in the space.
The fund has a 12-month trailing dividend yield of 0.81%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
Representing 38.80% of the portfolio, the fund has heaviest allocation to the Information Technology sector; Consumer Discretionary and Healthcare round out the top three.
When you look at individual holdings, Sirius Xm Holdings Inc (SIRI) accounts for about 1.13% of the fund's total assets, followed by Crowdstrike Holdings Inc - A (CRWD) and Zscaler Inc (ZS).
The top 10 holdings account for about 10.87% of total assets under management.
Performance and Risk
So far this year, QQQE has gained about 32.02%, and is up about 29.43% in the last one year (as of 12/19/2023). During this past 52-week period, the fund has traded between $62.46 and $83.84.
QQQE has a beta of 1.06 and standard deviation of 22.21% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 103 holdings, it effectively diversifies company-specific risk.
Alternatives
Direxion NASDAQ-100 Equal Weighted Index Shares is an excellent option for investors seeking to outperform the Style Box - Large Cap Growth segment of the market. There are other ETFs in the space which investors could consider as well.
Vanguard Growth ETF (VUG) tracks CRSP U.S. Large Cap Growth Index and the Invesco QQQ (QQQ) tracks NASDAQ-100 Index. Vanguard Growth ETF has $103.43 billion in assets, Invesco QQQ has $226.97 billion. VUG has an expense ratio of 0.04% and QQQ charges 0.20%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Growth.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Direxion NASDAQ-100 Equal Weighted Index Shares (QQQE): ETF Research Reports
Sirius XM Holdings Inc. (SIRI) : Free Stock Analysis Report
Invesco QQQ (QQQ): ETF Research Reports
Vanguard Growth ETF (VUG): ETF Research Reports
Zscaler, Inc. (ZS) : Free Stock Analysis Report
CrowdStrike (CRWD) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Direxion NASDAQ-100 Equal Weighted Index Shares (QQQE) made its debut on 03/21/2012, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - Large Cap Growth category of the market. Fund Sponsor & Index Managed by Direxion, QQQE has amassed assets over $1.02 billion, making it one of the average sized ETFs in the Style Box - Large Cap Growth. Alternatives Direxion NASDAQ-100 Equal Weighted Index Shares is an excellent option for investors seeking to outperform the Style Box - Large Cap Growth segment of the market.
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Alternatives Direxion NASDAQ-100 Equal Weighted Index Shares is an excellent option for investors seeking to outperform the Style Box - Large Cap Growth segment of the market. Vanguard Growth ETF (VUG) tracks CRSP U.S. Large Cap Growth Index and the Invesco QQQ (QQQ) tracks NASDAQ-100 Index. Click to get this free report Direxion NASDAQ-100 Equal Weighted Index Shares (QQQE): ETF Research Reports Sirius XM Holdings Inc. (SIRI) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports Zscaler, Inc. (ZS) : Free Stock Analysis Report CrowdStrike (CRWD) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The Direxion NASDAQ-100 Equal Weighted Index Shares (QQQE) made its debut on 03/21/2012, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - Large Cap Growth category of the market. Vanguard Growth ETF (VUG) tracks CRSP U.S. Large Cap Growth Index and the Invesco QQQ (QQQ) tracks NASDAQ-100 Index. Click to get this free report Direxion NASDAQ-100 Equal Weighted Index Shares (QQQE): ETF Research Reports Sirius XM Holdings Inc. (SIRI) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports Zscaler, Inc. (ZS) : Free Stock Analysis Report CrowdStrike (CRWD) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The Direxion NASDAQ-100 Equal Weighted Index Shares (QQQE) made its debut on 03/21/2012, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - Large Cap Growth category of the market. Sector Exposure and Top Holdings Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. QQQE has a beta of 1.06 and standard deviation of 22.21% for the trailing three-year period, which makes the fund a medium risk choice in the space.
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7cd54e49-94bf-47f5-88b7-190887b3cad8
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710967.0
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2023-12-16 00:00:00 UTC
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Should Vanguard S&P 500 ETF (VOO) Be on Your Investing Radar?
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DCOMP
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https://www.nasdaq.com/articles/should-vanguard-sp-500-etf-voo-be-on-your-investing-radar-11
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nan
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nan
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If you're interested in broad exposure to the Large Cap Blend segment of the US equity market, look no further than the Vanguard S&P 500 ETF (VOO), a passively managed exchange traded fund launched on 09/09/2010.
The fund is sponsored by Vanguard. It has amassed assets over $368.80 billion, making it one of the largest ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Large cap companies typically have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.
Blend ETFs are aptly named, since they tend to hold a mix of growth and value stocks, as well as show characteristics of both kinds of equities.
Costs
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.03%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.43%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 29.40% of the portfolio. Financials and Healthcare round out the top three.
Looking at individual holdings, Apple Inc. (AAPL) accounts for about 7.53% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN).
The top 10 holdings account for about 30.44% of total assets under management.
Performance and Risk
VOO seeks to match the performance of the S&P 500 Index before fees and expenses. The S&P 500 Index measures the performance of the large-capitalization sector of the U.S. equity market.
The ETF has added about 25.26% so far this year and it's up approximately 24.84% in the last one year (as of 12/19/2023). In the past 52-week period, it has traded between $346.17 and $435.54.
The ETF has a beta of 1 and standard deviation of 17.49% for the trailing three-year period, making it a medium risk choice in the space. With about 507 holdings, it effectively diversifies company-specific risk.
Alternatives
Vanguard S&P 500 ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, VOO is an outstanding option for investors seeking exposure to the Style Box - Large Cap Blend segment of the market. There are other additional ETFs in the space that investors could consider as well.
The iShares Core S&P 500 ETF (IVV) and the SPDR S&P 500 ETF (SPY) track the same index. While iShares Core S&P 500 ETF has $397.71 billion in assets, SPDR S&P 500 ETF has $456.74 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Vanguard S&P 500 ETF (VOO): ETF Research Reports
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
SPDR S&P 500 ETF (SPY): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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If you're interested in broad exposure to the Large Cap Blend segment of the US equity market, look no further than the Vanguard S&P 500 ETF (VOO), a passively managed exchange traded fund launched on 09/09/2010. It has amassed assets over $368.80 billion, making it one of the largest ETFs attempting to match the Large Cap Blend segment of the US equity market. Because of this, VOO is an outstanding option for investors seeking exposure to the Style Box - Large Cap Blend segment of the market.
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Sector Exposure and Top Holdings Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Looking at individual holdings, Apple Inc. (AAPL) accounts for about 7.53% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Click to get this free report Vanguard S&P 500 ETF (VOO): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here.
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Alternatives Vanguard S&P 500 ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center. Click to get this free report Vanguard S&P 500 ETF (VOO): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here.
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If you're interested in broad exposure to the Large Cap Blend segment of the US equity market, look no further than the Vanguard S&P 500 ETF (VOO), a passively managed exchange traded fund launched on 09/09/2010. Costs Investors should also pay attention to an ETF's expense ratio. The top 10 holdings account for about 30.44% of total assets under management.
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54bebf5c-570a-42f0-8eba-93b0236825a5
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710968.0
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2023-12-16 00:00:00 UTC
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Should You Invest in the Fidelity MSCI Financials Index ETF (FNCL)?
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DCOMP
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https://www.nasdaq.com/articles/should-you-invest-in-the-fidelity-msci-financials-index-etf-fncl-11
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nan
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nan
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If you're interested in broad exposure to the Financials - Broad segment of the equity market, look no further than the Fidelity MSCI Financials Index ETF (FNCL), a passively managed exchange traded fund launched on 10/21/2013.
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
Investor-friendly, sector ETFs provide many options to gain low risk and diversified exposure to a broad group of companies in particular sectors. Financials - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 10, placing it in bottom 38%.
Index Details
The fund is sponsored by Fidelity. It has amassed assets over $1.48 billion, making it one of the larger ETFs attempting to match the performance of the Financials - Broad segment of the equity market. FNCL seeks to match the performance of the MSCI USA IMI Financials Index before fees and expenses.
The MSCI USA IMI Financials Index represents the performance of the financial sector in the U.S. equity market.
Costs
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.08%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.93%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Financials sector--about 100% of the portfolio.
Looking at individual holdings, Berkshire Hathaway Inc Cl B Common Stock Usd.0033 (BRK.B) accounts for about 8.07% of total assets, followed by Jpmorgan Chase + Co Common Stock Usd1.0 (JPM) and Visa Inc Class A Shares Common Stock Usd.0001 (V).
The top 10 holdings account for about 43.95% of total assets under management.
Performance and Risk
The ETF has added roughly 12.62% and is up about 15.42% so far this year and in the past one year (as of 12/19/2023), respectively. FNCL has traded between $43.18 and $53.38 during this last 52-week period.
The ETF has a beta of 1.10 and standard deviation of 20.77% for the trailing three-year period, making it a medium risk choice in the space. With about 416 holdings, it effectively diversifies company-specific risk.
Alternatives
Fidelity MSCI Financials Index ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, FNCL is a reasonable option for those seeking exposure to the Financials ETFs area of the market. Investors might also want to consider some other ETF options in the space.
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 $9.07 billion in assets, Financial Select Sector SPDR ETF has $33.53 billion. VFH has an expense ratio of 0.10% and XLF charges 0.10%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Fidelity MSCI Financials Index ETF (FNCL): ETF Research Reports
JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report
Visa Inc. (V) : Free Stock Analysis Report
Berkshire Hathaway Inc. (BRK.B) : Free Stock Analysis Report
Financial Select Sector SPDR ETF (XLF): ETF Research Reports
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.
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Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. It has amassed assets over $1.48 billion, making it one of the larger ETFs attempting to match the performance of the Financials - Broad segment of the equity market. The ETF has a beta of 1.10 and standard deviation of 20.77% for the trailing three-year period, making it a medium risk choice in the space.
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Looking at individual holdings, Berkshire Hathaway Inc Cl B Common Stock Usd.0033 (BRK.B) accounts for about 8.07% of total assets, followed by Jpmorgan Chase + Co Common Stock Usd1.0 (JPM) and Visa Inc Class A Shares Common Stock Usd.0001 (V). 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 Fidelity MSCI Financials Index ETF (FNCL): ETF Research Reports JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report Visa Inc. (V) : Free Stock Analysis Report Berkshire Hathaway Inc. (BRK.B) : Free Stock Analysis Report Financial Select Sector SPDR ETF (XLF): ETF Research Reports Vanguard Financials ETF (VFH): ETF Research Reports To read this article on Zacks.com click here.
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Alternatives Fidelity MSCI Financials Index ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. 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 Fidelity MSCI Financials Index ETF (FNCL): ETF Research Reports JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report Visa Inc. (V) : Free Stock Analysis Report Berkshire Hathaway Inc. (BRK.B) : Free Stock Analysis Report Financial Select Sector SPDR ETF (XLF): ETF Research Reports Vanguard Financials ETF (VFH): ETF Research Reports To read this article on Zacks.com click here.
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If you're interested in broad exposure to the Financials - Broad segment of the equity market, look no further than the Fidelity MSCI Financials Index ETF (FNCL), a passively managed exchange traded fund launched on 10/21/2013. Annual operating expenses for this ETF are 0.08%, making it one of the least expensive products in the space. Alternatives Fidelity MSCI Financials Index ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors.
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c40df62b-0698-4322-b527-57d4394f6ab4
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710969.0
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2023-12-16 00:00:00 UTC
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Should Invesco S&P MidCap 400 GARP ETF (GRPM) Be on Your Investing Radar?
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DCOMP
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https://www.nasdaq.com/articles/should-invesco-sp-midcap-400-garp-etf-grpm-be-on-your-investing-radar-0
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nan
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nan
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Launched on 12/03/2010, the Invesco S&P MidCap 400 GARP ETF (GRPM) is a passively managed exchange traded fund designed to provide a broad exposure to the Mid Cap Blend segment of the US equity market.
The fund is sponsored by Invesco. It has amassed assets over $226.29 million, making it one of the average sized ETFs attempting to match the Mid Cap Blend segment of the US equity market.
Why Mid Cap Blend
Mid cap companies, with market capitalization in the range of $2 billion and $10 billion, offer investors many things that small and large companies don't, including less risk and higher growth opportunities. Thus they have a nice balance of growth potential and stability.
Blend ETFs are aptly named, since they tend to hold a mix of growth and value stocks, as well as show characteristics of both kinds of equities.
Costs
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.35%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.17%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Consumer Discretionary sector--about 29.90% of the portfolio. Industrials and Energy round out the top three.
Looking at individual holdings, Matador Resources Co (MTDR) accounts for about 3.26% of total assets, followed by Chord Energy Corp (CHRD) and Murphy Usa Inc (MUSA).
The top 10 holdings account for about 25.43% of total assets under management.
Performance and Risk
GRPM seeks to match the performance of the S&P MIDCAP 400 GARP INDEX before fees and expenses. The S&P MidCap 400 GARP Index seeks to track companies with consistent fundamental growth, reasonable valuation, solid financial strength, and strong earning power.
The ETF return is roughly 6.92% so far this year and was up about 0% in the last one year (as of 12/19/2023). In the past 52-week period, it has traded between $82.10 and $98.44.
The ETF has a beta of 1.20. With about 59 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco S&P MidCap 400 GARP ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, GRPM is a reasonable option for those seeking exposure to the Style Box - Mid Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The Vanguard Mid-Cap ETF (VO) and the iShares Core S&P Mid-Cap ETF (IJH) track a similar index. While Vanguard Mid-Cap ETF has $58.42 billion in assets, iShares Core S&P Mid-Cap ETF has $77.97 billion. VO has an expense ratio of 0.04% and IJH charges 0.05%.
Bottom-Line
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Invesco S&P MidCap 400 GARP ETF (GRPM): ETF Research Reports
Murphy USA Inc. (MUSA) : Free Stock Analysis Report
Matador Resources Company (MTDR) : Free Stock Analysis Report
iShares Core S&P Mid-Cap ETF (IJH): ETF Research Reports
Vanguard Mid-Cap ETF (VO): ETF Research Reports
Chord Energy Corporation (CHRD) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Launched on 12/03/2010, the Invesco S&P MidCap 400 GARP ETF (GRPM) is a passively managed exchange traded fund designed to provide a broad exposure to the Mid Cap Blend segment of the US equity market. It has amassed assets over $226.29 million, making it one of the average sized ETFs attempting to match the Mid Cap Blend segment of the US equity market. The S&P MidCap 400 GARP Index seeks to track companies with consistent fundamental growth, reasonable valuation, solid financial strength, and strong earning power.
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Looking at individual holdings, Matador Resources Co (MTDR) accounts for about 3.26% of total assets, followed by Chord Energy Corp (CHRD) and Murphy Usa Inc (MUSA). The Vanguard Mid-Cap ETF (VO) and the iShares Core S&P Mid-Cap ETF (IJH) track a similar index. Click to get this free report Invesco S&P MidCap 400 GARP ETF (GRPM): ETF Research Reports Murphy USA Inc. (MUSA) : Free Stock Analysis Report Matador Resources Company (MTDR) : Free Stock Analysis Report iShares Core S&P Mid-Cap ETF (IJH): ETF Research Reports Vanguard Mid-Cap ETF (VO): ETF Research Reports Chord Energy Corporation (CHRD) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Alternatives Invesco S&P MidCap 400 GARP ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center. Click to get this free report Invesco S&P MidCap 400 GARP ETF (GRPM): ETF Research Reports Murphy USA Inc. (MUSA) : Free Stock Analysis Report Matador Resources Company (MTDR) : Free Stock Analysis Report iShares Core S&P Mid-Cap ETF (IJH): ETF Research Reports Vanguard Mid-Cap ETF (VO): ETF Research Reports Chord Energy Corporation (CHRD) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Launched on 12/03/2010, the Invesco S&P MidCap 400 GARP ETF (GRPM) is a passively managed exchange traded fund designed to provide a broad exposure to the Mid Cap Blend segment of the US equity market. Costs Investors should also pay attention to an ETF's expense ratio. To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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dc03000f-2ad6-4a7d-a599-98464eced9f7
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710970.0
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2023-12-16 00:00:00 UTC
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Should You Invest in the Invesco S&P SmallCap Energy ETF (PSCE)?
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DCOMP
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https://www.nasdaq.com/articles/should-you-invest-in-the-invesco-sp-smallcap-energy-etf-psce-3
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nan
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nan
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Designed to provide broad exposure to the Energy - Broad segment of the equity market, the Invesco S&P SmallCap Energy ETF (PSCE) is a passively managed exchange traded fund launched on 04/07/2010.
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
Additionally, sector ETFs offer convenient ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Energy - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 15, placing it in bottom 6%.
Index Details
The fund is sponsored by Invesco. It has amassed assets over $217.28 million, making it one of the average sized ETFs attempting to match the performance of the Energy - Broad segment of the equity market. PSCE seeks to match the performance of the S&P SmallCap 600 Capped Energy Index before fees and expenses.
The S&P SmallCap 600 Capped Energy Index is designed to measure the overall performance of common stocks of US energy companies.
Costs
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.29%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 3.23%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Energy sector--about 100% of the portfolio.
Looking at individual holdings, Sm Energy Co (SM) accounts for about 9.16% of total assets, followed by Patterson-Uti Energy Inc (PTEN) and Helmerich & Payne Inc (HP).
The top 10 holdings account for about 61.69% of total assets under management.
Performance and Risk
Year-to-date, the Invesco S&P SmallCap Energy ETF has added about 4.75% so far, and was up about 10.52% over the last 12 months (as of 12/19/2023). PSCE has traded between $41.70 and $59.33 in this past 52-week period.
The ETF has a beta of 1.85 and standard deviation of 44.16% for the trailing three-year period, making it a high risk choice in the space. With about 29 holdings, it has more concentrated exposure than peers.
Alternatives
Invesco S&P SmallCap Energy ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, PSCE is a good option for those seeking exposure to the Energy ETFs area of the market. Investors might also want to consider some other ETF options in the space.
Vanguard Energy ETF (VDE) tracks MSCI US Investable Market Energy 25/50 Index and the Energy Select Sector SPDR ETF (XLE) tracks Energy Select Sector Index. Vanguard Energy ETF has $8 billion in assets, Energy Select Sector SPDR ETF has $36.58 billion. VDE has an expense ratio of 0.10% and XLE charges 0.10%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Invesco S&P SmallCap Energy ETF (PSCE): ETF Research Reports
Patterson-UTI Energy, Inc. (PTEN) : Free Stock Analysis Report
Helmerich & Payne, Inc. (HP) : Free Stock Analysis Report
SM Energy Company (SM) : Free Stock Analysis Report
Energy Select Sector SPDR ETF (XLE): ETF Research Reports
Vanguard Energy ETF (VDE): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. It has amassed assets over $217.28 million, making it one of the average sized ETFs attempting to match the performance of the Energy - Broad segment of the equity market. The ETF has a beta of 1.85 and standard deviation of 44.16% for the trailing three-year period, making it a high risk choice in the space.
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Designed to provide broad exposure to the Energy - Broad segment of the equity market, the Invesco S&P SmallCap Energy ETF (PSCE) is a passively managed exchange traded fund launched on 04/07/2010. Vanguard Energy ETF (VDE) tracks MSCI US Investable Market Energy 25/50 Index and the Energy Select Sector SPDR ETF (XLE) tracks Energy Select Sector Index. Click to get this free report Invesco S&P SmallCap Energy ETF (PSCE): ETF Research Reports Patterson-UTI Energy, Inc. (PTEN) : Free Stock Analysis Report Helmerich & Payne, Inc. (HP) : Free Stock Analysis Report SM Energy Company (SM) : Free Stock Analysis Report Energy Select Sector SPDR ETF (XLE): ETF Research Reports Vanguard Energy ETF (VDE): ETF Research Reports To read this article on Zacks.com click here.
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Alternatives Invesco S&P SmallCap Energy ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Vanguard Energy ETF (VDE) tracks MSCI US Investable Market Energy 25/50 Index and the Energy Select Sector SPDR ETF (XLE) tracks Energy Select Sector Index. Click to get this free report Invesco S&P SmallCap Energy ETF (PSCE): ETF Research Reports Patterson-UTI Energy, Inc. (PTEN) : Free Stock Analysis Report Helmerich & Payne, Inc. (HP) : Free Stock Analysis Report SM Energy Company (SM) : Free Stock Analysis Report Energy Select Sector SPDR ETF (XLE): ETF Research Reports Vanguard Energy ETF (VDE): ETF Research Reports To read this article on Zacks.com click here.
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Designed to provide broad exposure to the Energy - Broad segment of the equity market, the Invesco S&P SmallCap Energy ETF (PSCE) is a passively managed exchange traded fund launched on 04/07/2010. Annual operating expenses for this ETF are 0.29%, making it one of the least expensive products in the space. Vanguard Energy ETF (VDE) tracks MSCI US Investable Market Energy 25/50 Index and the Energy Select Sector SPDR ETF (XLE) tracks Energy Select Sector Index.
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c3d206b7-a211-4e36-8d4f-4136d660451e
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710971.0
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2023-12-16 00:00:00 UTC
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Should You Invest in the iShares MSCI Europe Financials ETF (EUFN)?
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DCOMP
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https://www.nasdaq.com/articles/should-you-invest-in-the-ishares-msci-europe-financials-etf-eufn-10
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nan
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nan
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Launched on 01/20/2010, the iShares MSCI Europe Financials ETF (EUFN) is a passively managed exchange traded fund designed to provide a broad exposure to the Financials - Broad segment of the equity market.
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
Sector ETFs are also funds of convenience, offering many ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Financials - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 10, placing it in bottom 38%.
Index Details
The fund is sponsored by Blackrock. It has amassed assets over $1.27 billion, making it one of the larger ETFs attempting to match the performance of the Financials - Broad segment of the equity market. EUFN seeks to match the performance of the MSCI Europe Financials Index before fees and expenses.
The MSCI Europe Financials Index is a free float-adjusted market capitalization weighted index designed to measure the combined equity market performance of the financials sector of developed market countries in Europe.
Costs
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0.49%, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 3.50%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
Looking at individual holdings, Hsbc Holdings Plc (HSBA) accounts for about 9.15% of total assets, followed by Allianz (ALV) and Ubs Group Ag (UBSG).
The top 10 holdings account for about 42.67% of total assets under management.
Performance and Risk
The ETF return is roughly 22.93% and was up about 25.80% so far this year and in the past one year (as of 12/19/2023), respectively. EUFN has traded between $17.29 and $21.03 during this last 52-week period.
The ETF has a beta of 1.09 and standard deviation of 23.18% for the trailing three-year period, making it a medium risk choice in the space. With about 94 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares MSCI Europe Financials ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, EUFN is a reasonable option for those seeking exposure to the Financials ETFs area of the market. Investors might also want to consider some other ETF options in the space.
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 $9.07 billion in assets, Financial Select Sector SPDR ETF has $33.53 billion. VFH has an expense ratio of 0.10% and XLF charges 0.10%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
iShares MSCI Europe Financials ETF (EUFN): ETF Research Reports
Autoliv, Inc. (ALV) : Free Stock Analysis Report
Financial Select Sector SPDR ETF (XLF): ETF Research Reports
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.
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It has amassed assets over $1.27 billion, making it one of the larger ETFs attempting to match the performance of the Financials - Broad segment of the equity market. EUFN seeks to match the performance of the MSCI Europe Financials Index before fees and expenses. The ETF has a beta of 1.09 and standard deviation of 23.18% for the trailing three-year period, making it a medium risk choice in the space.
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Launched on 01/20/2010, the iShares MSCI Europe Financials ETF (EUFN) is a passively managed exchange traded fund designed to provide a broad exposure to the Financials - Broad segment of the equity 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 iShares MSCI Europe Financials ETF (EUFN): ETF Research Reports Autoliv, Inc. (ALV) : Free Stock Analysis Report Financial Select Sector SPDR ETF (XLF): ETF Research Reports Vanguard Financials ETF (VFH): ETF Research Reports To read this article on Zacks.com click here.
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Alternatives IShares MSCI Europe Financials ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. 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 iShares MSCI Europe Financials ETF (EUFN): ETF Research Reports Autoliv, Inc. (ALV) : Free Stock Analysis Report Financial Select Sector SPDR ETF (XLF): ETF Research Reports Vanguard Financials ETF (VFH): ETF Research Reports To read this article on Zacks.com click here.
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Launched on 01/20/2010, the iShares MSCI Europe Financials ETF (EUFN) is a passively managed exchange traded fund designed to provide a broad exposure to the Financials - Broad segment of the equity market. Sector Exposure and Top Holdings Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. 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.
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bce0d12c-6bb8-4ede-8d06-f7f333eab576
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710972.0
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2023-12-16 00:00:00 UTC
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Should Vanguard Small-Cap ETF (VB) Be on Your Investing Radar?
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DCOMP
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https://www.nasdaq.com/articles/should-vanguard-small-cap-etf-vb-be-on-your-investing-radar-2
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nan
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nan
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Designed to provide broad exposure to the Small Cap Blend segment of the US equity market, the Vanguard Small-Cap ETF (VB) is a passively managed exchange traded fund launched on 01/26/2004.
The fund is sponsored by Vanguard. It has amassed assets over $49.08 billion, making it one of the largest ETFs attempting to match the Small Cap Blend segment of the US equity market.
Why Small Cap Blend
Small cap companies have market capitalization below $2 billion. They usually have higher potential than large and mid cap companies with stocks but higher risk.
Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.05%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.54%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Industrials sector--about 21.40% of the portfolio. Financials and Consumer Discretionary round out the top three.
Looking at individual holdings, Slcmt1142 accounts for about 1.71% of total assets, followed by Mktliq and Fair Isaac Corp. (FICO).
The top 10 holdings account for about 4.98% of total assets under management.
Performance and Risk
VB seeks to match the performance of the CRSP US Small Cap Index before fees and expenses. The CRSP US Small Cap Index includes U.S. companies that fall between the bottom 2%-15% of the investable market capitalization. There is no lower limit in market capitalization. The index includes securities traded on NYSE, NYSE Market, NASDAQ or ARCA.
The ETF has added roughly 16.16% so far this year and it's up approximately 16.19% in the last one year (as of 12/19/2023). In the past 52-week period, it has traded between $175.26 and $212.49.
The ETF has a beta of 1.14 and standard deviation of 21.83% for the trailing three-year period, making it a medium risk choice in the space. With about 1441 holdings, it effectively diversifies company-specific risk.
Alternatives
Vanguard Small-Cap ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, VB is a great option for investors seeking exposure to the Style Box - Small Cap Blend segment of the market. There are other additional ETFs in the space that investors could consider as well.
The iShares Russell 2000 ETF (IWM) and the iShares Core S&P Small-Cap ETF (IJR) track a similar index. While iShares Russell 2000 ETF has $60.90 billion in assets, iShares Core S&P Small-Cap ETF has $74.75 billion. IWM has an expense ratio of 0.19% and IJR charges 0.06%.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Vanguard Small-Cap ETF (VB): ETF Research Reports
Fair Isaac Corporation (FICO) : Free Stock Analysis Report
iShares Russell 2000 ETF (IWM): ETF Research Reports
iShares Core S&P Small-Cap ETF (IJR): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Designed to provide broad exposure to the Small Cap Blend segment of the US equity market, the Vanguard Small-Cap ETF (VB) is a passively managed exchange traded fund launched on 01/26/2004. It has amassed assets over $49.08 billion, making it one of the largest ETFs attempting to match the Small Cap Blend segment of the US equity market. Bottom-Line Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency.
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Designed to provide broad exposure to the Small Cap Blend segment of the US equity market, the Vanguard Small-Cap ETF (VB) is a passively managed exchange traded fund launched on 01/26/2004. Why Small Cap Blend Small cap companies have market capitalization below $2 billion. Click to get this free report Vanguard Small-Cap ETF (VB): ETF Research Reports Fair Isaac Corporation (FICO) : Free Stock Analysis Report iShares Russell 2000 ETF (IWM): ETF Research Reports iShares Core S&P Small-Cap ETF (IJR): ETF Research Reports To read this article on Zacks.com click here.
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Alternatives Vanguard Small-Cap ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center. Click to get this free report Vanguard Small-Cap ETF (VB): ETF Research Reports Fair Isaac Corporation (FICO) : Free Stock Analysis Report iShares Russell 2000 ETF (IWM): ETF Research Reports iShares Core S&P Small-Cap ETF (IJR): ETF Research Reports To read this article on Zacks.com click here.
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Annual operating expenses for this ETF are 0.05%, making it one of the least expensive products in the space. Sector Exposure and Top Holdings ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. The CRSP US Small Cap Index includes U.S. companies that fall between the bottom 2%-15% of the investable market capitalization.
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c75bdb95-cb53-4c2c-af96-b8265576de88
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710973.0
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2023-12-16 00:00:00 UTC
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Is FlexShares STOXX US ESG Select Index Fund (ESG) a Strong ETF Right Now?
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DCOMP
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https://www.nasdaq.com/articles/is-flexshares-stoxx-us-esg-select-index-fund-esg-a-strong-etf-right-now-0
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nan
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nan
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Making its debut on 07/13/2016, smart beta exchange traded fund FlexShares STOXX US ESG Select Index Fund (ESG) provides investors broad exposure to the Style Box - Large Cap Blend category of the market.
What Are Smart Beta ETFs?
The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.
A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor & Index
Because the fund has amassed over $204.22 million, this makes it one of the average sized ETFs in the Style Box - Large Cap Blend. ESG is managed by Flexshares. Before fees and expenses, this particular fund seeks to match the performance of the STOXX USA ESG Impact Index.
The STOXX USA ESG Select KPIs Index is an optimized index designed to provide broad market exposure that is tilted toward U.S. companies that score better with respect to a small set of environmental, social and governance characteristics and to provide the potential for attractive risk-adjusted performance relative to the STOXX USA 900 Index.
Cost & Other Expenses
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
With on par with most peer products in the space, this ETF has annual operating expenses of 0.32%.
The fund has a 12-month trailing dividend yield of 1.11%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Information Technology sector - about 25.80% of the portfolio. Financials and Consumer Discretionary round out the top three.
Taking into account individual holdings, Amazon.com Inc Common Stock Usd 0.01 (AMZN) accounts for about 5.14% of the fund's total assets, followed by Apple Inc (AAPL) and Microsoft Corp Common Stock Usd 0.00000625 (MSFT).
ESG's top 10 holdings account for about 34.71% of its total assets under management.
Performance and Risk
The ETF return is roughly 26.91% so far this year and is up about 26.91% in the last one year (as of 12/19/2023). In the past 52-week period, it has traded between $90.43 and $115.26.
The fund has a beta of 1.03 and standard deviation of 17.87% for the trailing three-year period. With about 266 holdings, it effectively diversifies company-specific risk.
Alternatives
FlexShares STOXX US ESG Select Index Fund is a reasonable option for investors seeking to outperform the Style Box - Large Cap Blend segment of the market. However, there are other ETFs in the space which investors could consider.
JPMorgan Nasdaq Equity Premium Income ETF (JEPQ) tracks ---------------------------------------- and the iShares ESG Aware MSCI USA ETF (ESGU) tracks MSCI USA ESG Focus Index. JPMorgan Nasdaq Equity Premium Income ETF has $8.40 billion in assets, iShares ESG Aware MSCI USA ETF has $13.32 billion. JEPQ has an expense ratio of 0.35% and ESGU charges 0.15%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Blend.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
FlexShares STOXX US ESG Select Index Fund (ESG): ETF Research Reports
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
iShares ESG Aware MSCI USA ETF (ESGU): ETF Research Reports
JPMorgan Nasdaq Equity Premium Income ETF (JEPQ): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results. Before fees and expenses, this particular fund seeks to match the performance of the STOXX USA ESG Impact Index. Alternatives FlexShares STOXX US ESG Select Index Fund is a reasonable option for investors seeking to outperform the Style Box - Large Cap Blend segment of the market.
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Making its debut on 07/13/2016, smart beta exchange traded fund FlexShares STOXX US ESG Select Index Fund (ESG) provides investors broad exposure to the Style Box - Large Cap Blend category of the market. JPMorgan Nasdaq Equity Premium Income ETF (JEPQ) tracks ---------------------------------------- and the iShares ESG Aware MSCI USA ETF (ESGU) tracks MSCI USA ESG Focus Index. Click to get this free report FlexShares STOXX US ESG Select Index Fund (ESG): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report iShares ESG Aware MSCI USA ETF (ESGU): ETF Research Reports JPMorgan Nasdaq Equity Premium Income ETF (JEPQ): ETF Research Reports To read this article on Zacks.com click here.
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Making its debut on 07/13/2016, smart beta exchange traded fund FlexShares STOXX US ESG Select Index Fund (ESG) provides investors broad exposure to the Style Box - Large Cap Blend category of the market. JPMorgan Nasdaq Equity Premium Income ETF (JEPQ) tracks ---------------------------------------- and the iShares ESG Aware MSCI USA ETF (ESGU) tracks MSCI USA ESG Focus Index. Click to get this free report FlexShares STOXX US ESG Select Index Fund (ESG): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report iShares ESG Aware MSCI USA ETF (ESGU): ETF Research Reports JPMorgan Nasdaq Equity Premium Income ETF (JEPQ): ETF Research Reports To read this article on Zacks.com click here.
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Making its debut on 07/13/2016, smart beta exchange traded fund FlexShares STOXX US ESG Select Index Fund (ESG) provides investors broad exposure to the Style Box - Large Cap Blend category of the market. Sector Exposure and Top Holdings Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. ESG's top 10 holdings account for about 34.71% of its total assets under management.
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710974.0
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2023-12-16 00:00:00 UTC
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Should Invesco S&P MidCap 400 Pure Growth ETF (RFG) Be on Your Investing Radar?
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DCOMP
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https://www.nasdaq.com/articles/should-invesco-sp-midcap-400-pure-growth-etf-rfg-be-on-your-investing-radar-10
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nan
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nan
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If you're interested in broad exposure to the Mid Cap Growth segment of the US equity market, look no further than the Invesco S&P MidCap 400 Pure Growth ETF (RFG), a passively managed exchange traded fund launched on 03/01/2006.
The fund is sponsored by Invesco. It has amassed assets over $254.27 million, making it one of the average sized ETFs attempting to match the Mid Cap Growth segment of the US equity market.
Why Mid Cap Growth
Mid cap companies have market capitalization between $2 billion and $10 billion. They usually have higher growth prospects than large cap companies and are less volatile than small cap companies. Thus they have a nice balance of growth potential and stability.
Qualities of growth stocks include faster growth rates compared to the broader market, as well as higher valuations and higher than average sales and earnings growth rates. Further, growth stocks have a higher level of volatility associated with them. When you consider growth versus value, growth stocks are usually the clear winner in strong bull markets but tend to fall flat in nearly all other environments.
Costs
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.35%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.21%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Energy sector--about 20.40% of the portfolio. Industrials and Financials round out the top three.
Looking at individual holdings, Pbf Energy Inc (PBF) accounts for about 2.92% of total assets, followed by Builders Firstsource Inc (BLDR) and Kinsale Capital Group Inc (KNSL).
The top 10 holdings account for about 24.54% of total assets under management.
Performance and Risk
RFG seeks to match the performance of the S&P MidCap 400 Pure Growth Index before fees and expenses. The S&P MidCap 400 Pure Growth Index measures the performance of securities that exhibit strong growth characteristics in the S&P MidCap 400 Index.
The ETF has added about 15.20% so far this year and is up about 14.51% in the last one year (as of 12/19/2023). In the past 52-week period, it has traded between $34.48 and $41.34.
The ETF has a beta of 1.14 and standard deviation of 24.08% for the trailing three-year period, making it a medium risk choice in the space. With about 85 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco S&P MidCap 400 Pure Growth ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, RFG is an outstanding option for investors seeking exposure to the Style Box - Mid Cap Growth segment of the market. There are other additional ETFs in the space that investors could consider as well.
The Vanguard Mid-Cap Growth ETF (VOT) and the iShares Russell Mid-Cap Growth ETF (IWP) track a similar index. While Vanguard Mid-Cap Growth ETF has $11.65 billion in assets, iShares Russell Mid-Cap Growth ETF has $14.32 billion. VOT has an expense ratio of 0.07% and IWP charges 0.23%.
Bottom-Line
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Invesco S&P MidCap 400 Pure Growth ETF (RFG): ETF Research Reports
Builders FirstSource, Inc. (BLDR) : Free Stock Analysis Report
PBF Energy Inc. (PBF) : Free Stock Analysis Report
iShares Russell Mid-Cap Growth ETF (IWP): ETF Research Reports
Kinsale Capital Group, Inc. (KNSL) : Free Stock Analysis Report
Vanguard Mid-Cap Growth ETF (VOT): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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It has amassed assets over $254.27 million, making it one of the average sized ETFs attempting to match the Mid Cap Growth segment of the US equity market. The ETF has a beta of 1.14 and standard deviation of 24.08% for the trailing three-year period, making it a medium risk choice in the space. Because of this, RFG is an outstanding option for investors seeking exposure to the Style Box - Mid Cap Growth segment of the market.
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Looking at individual holdings, Pbf Energy Inc (PBF) accounts for about 2.92% of total assets, followed by Builders Firstsource Inc (BLDR) and Kinsale Capital Group Inc (KNSL). While Vanguard Mid-Cap Growth ETF has $11.65 billion in assets, iShares Russell Mid-Cap Growth ETF has $14.32 billion. Click to get this free report Invesco S&P MidCap 400 Pure Growth ETF (RFG): ETF Research Reports Builders FirstSource, Inc. (BLDR) : Free Stock Analysis Report PBF Energy Inc. (PBF) : Free Stock Analysis Report iShares Russell Mid-Cap Growth ETF (IWP): ETF Research Reports Kinsale Capital Group, Inc. (KNSL) : Free Stock Analysis Report Vanguard Mid-Cap Growth ETF (VOT): ETF Research Reports To read this article on Zacks.com click here.
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The Vanguard Mid-Cap Growth ETF (VOT) and the iShares Russell Mid-Cap Growth ETF (IWP) track a similar index. While Vanguard Mid-Cap Growth ETF has $11.65 billion in assets, iShares Russell Mid-Cap Growth ETF has $14.32 billion. Click to get this free report Invesco S&P MidCap 400 Pure Growth ETF (RFG): ETF Research Reports Builders FirstSource, Inc. (BLDR) : Free Stock Analysis Report PBF Energy Inc. (PBF) : Free Stock Analysis Report iShares Russell Mid-Cap Growth ETF (IWP): ETF Research Reports Kinsale Capital Group, Inc. (KNSL) : Free Stock Analysis Report Vanguard Mid-Cap Growth ETF (VOT): ETF Research Reports To read this article on Zacks.com click here.
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If you're interested in broad exposure to the Mid Cap Growth segment of the US equity market, look no further than the Invesco S&P MidCap 400 Pure Growth ETF (RFG), a passively managed exchange traded fund launched on 03/01/2006. Further, growth stocks have a higher level of volatility associated with them. Sector Exposure and Top Holdings ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing.
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9797eefc-848a-45eb-88fa-5672b6c65117
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710975.0
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2023-12-16 00:00:00 UTC
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Should You Invest in the SPDR S&P Oil & Gas Exploration & Production ETF (XOP)?
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DCOMP
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https://www.nasdaq.com/articles/should-you-invest-in-the-spdr-sp-oil-gas-exploration-production-etf-xop-11
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nan
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nan
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Designed to provide broad exposure to the Energy - Exploration segment of the equity market, the SPDR S&P Oil & Gas Exploration & Production ETF (XOP) is a passively managed exchange traded fund launched on 06/19/2006.
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
Additionally, sector ETFs offer convenient ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Energy - Exploration is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 15, placing it in bottom 6%.
Index Details
The fund is sponsored by State Street Global Advisors. It has amassed assets over $3.22 billion, making it one of the largest ETFs attempting to match the performance of the Energy - Exploration segment of the equity market. XOP seeks to match the performance of the S&P Oil & Gas Exploration & Production Select Industry Index before fees and expenses.
The S&P Oil & Gas Exploration & Production Select Industry Index represents the oil and gas exploration and production sub-industry portion of the S&P Total Markets Index. The S&P TMI tracks all the US common stocks listed on the NYSE, AMEX, NASDAQ National Market and NASDAQ Small Cap exchanges. The Oil & Gas Exploration Index is a modified equal weight index.
Costs
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.35%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 3.31%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Energy sector--about 100% of the portfolio.
Looking at individual holdings, Range Resources Corp (RRC) accounts for about 2.67% of total assets, followed by Diamondback Energy Inc (FANG) and Ovintiv Inc (OVV).
The top 10 holdings account for about 25.88% of total assets under management.
Performance and Risk
Year-to-date, the SPDR S&P Oil & Gas Exploration & Production ETF has added about 3.74% so far, and is up roughly 5% over the last 12 months (as of 12/19/2023). XOP has traded between $116.28 and $153.81 in this past 52-week period.
The ETF has a beta of 1.78 and standard deviation of 39.15% for the trailing three-year period, making it a high risk choice in the space. With about 61 holdings, it effectively diversifies company-specific risk.
Alternatives
SPDR S&P Oil & Gas Exploration & Production ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, XOP is an excellent option for investors seeking exposure to the Energy ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
Invesco Energy Exploration & Production ETF (PXE) tracks Dynamic Energy Exploration & Production Intellidex Index and the iShares U.S. Oil & Gas Exploration & Production ETF (IEO) tracks Dow Jones U.S. Select Oil Exploration & Production Index. Invesco Energy Exploration & Production ETF has $142.90 million in assets, iShares U.S. Oil & Gas Exploration & Production ETF has $763.59 million. PXE has an expense ratio of 0.60% and IEO charges 0.40%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
SPDR S&P Oil & Gas Exploration & Production ETF (XOP): ETF Research Reports
Range Resources Corporation (RRC) : Free Stock Analysis Report
Diamondback Energy, Inc. (FANG) : Free Stock Analysis Report
iShares U.S. Oil & Gas Exploration & Production ETF (IEO): ETF Research Reports
Invesco Energy Exploration & Production ETF (PXE): ETF Research Reports
Ovintiv Inc. (OVV) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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It has amassed assets over $3.22 billion, making it one of the largest ETFs attempting to match the performance of the Energy - Exploration segment of the equity market. XOP seeks to match the performance of the S&P Oil & Gas Exploration & Production Select Industry Index before fees and expenses. Looking at individual holdings, Range Resources Corp (RRC) accounts for about 2.67% of total assets, followed by Diamondback Energy Inc (FANG) and Ovintiv Inc (OVV).
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Designed to provide broad exposure to the Energy - Exploration segment of the equity market, the SPDR S&P Oil & Gas Exploration & Production ETF (XOP) is a passively managed exchange traded fund launched on 06/19/2006. Invesco Energy Exploration & Production ETF (PXE) tracks Dynamic Energy Exploration & Production Intellidex Index and the iShares U.S. Oil & Gas Exploration & Production ETF (IEO) tracks Dow Jones U.S. Click to get this free report SPDR S&P Oil & Gas Exploration & Production ETF (XOP): ETF Research Reports Range Resources Corporation (RRC) : Free Stock Analysis Report Diamondback Energy, Inc. (FANG) : Free Stock Analysis Report iShares U.S. Oil & Gas Exploration & Production ETF (IEO): ETF Research Reports Invesco Energy Exploration & Production ETF (PXE): ETF Research Reports Ovintiv Inc. (OVV) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Invesco Energy Exploration & Production ETF (PXE) tracks Dynamic Energy Exploration & Production Intellidex Index and the iShares U.S. Oil & Gas Exploration & Production ETF (IEO) tracks Dow Jones U.S. Invesco Energy Exploration & Production ETF has $142.90 million in assets, iShares U.S. Oil & Gas Exploration & Production ETF has $763.59 million. Click to get this free report SPDR S&P Oil & Gas Exploration & Production ETF (XOP): ETF Research Reports Range Resources Corporation (RRC) : Free Stock Analysis Report Diamondback Energy, Inc. (FANG) : Free Stock Analysis Report iShares U.S. Oil & Gas Exploration & Production ETF (IEO): ETF Research Reports Invesco Energy Exploration & Production ETF (PXE): ETF Research Reports Ovintiv Inc. (OVV) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Designed to provide broad exposure to the Energy - Exploration segment of the equity market, the SPDR S&P Oil & Gas Exploration & Production ETF (XOP) is a passively managed exchange traded fund launched on 06/19/2006. Alternatives SPDR S&P Oil & Gas Exploration & Production ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Invesco Energy Exploration & Production ETF (PXE) tracks Dynamic Energy Exploration & Production Intellidex Index and the iShares U.S. Oil & Gas Exploration & Production ETF (IEO) tracks Dow Jones U.S.
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2023-12-16 00:00:00 UTC
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Should First Trust Large Cap Core AlphaDEX ETF (FEX) Be on Your Investing Radar?
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DCOMP
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https://www.nasdaq.com/articles/should-first-trust-large-cap-core-alphadex-etf-fex-be-on-your-investing-radar-9
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nan
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Designed to provide broad exposure to the Large Cap Blend segment of the US equity market, the First Trust Large Cap Core AlphaDEX ETF (FEX) is a passively managed exchange traded fund launched on 05/08/2007.
The fund is sponsored by First Trust Advisors. It has amassed assets over $1.11 billion, making it one of the larger ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Large cap companies usually have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.
Blend ETFs are aptly named, since they tend to hold a mix of growth and value stocks, as well as show characteristics of both kinds of equities.
Costs
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.59%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.46%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 18.70% of the portfolio. Industrials and Financials round out the top three.
Looking at individual holdings, Marathon Petroleum Corporation (MPC) accounts for about 0.56% of total assets, followed by Keycorp (KEY) and Ovintiv Inc. (OVV).
The top 10 holdings account for about 5.27% of total assets under management.
Performance and Risk
FEX seeks to match the performance of the Nasdaq AlphaDEX Large Cap Core Index before fees and expenses. The NASDAQ AlphaDEX Large Cap Core Index is an enhanced index which employs the AlphaDEX stock selection methodology to select stocks from the NASDAQ US 500 Large Cap Index.
The ETF has added about 13.35% so far this year and it's up approximately 13.76% in the last one year (as of 12/19/2023). In the past 52-week period, it has traded between $76.64 and $90.25.
The ETF has a beta of 1.07 and standard deviation of 17.32% for the trailing three-year period, making it a medium risk choice in the space. With about 376 holdings, it effectively diversifies company-specific risk.
Alternatives
First Trust Large Cap Core AlphaDEX ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, FEX is a good option for those seeking exposure to the Style Box - Large Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Core S&P 500 ETF (IVV) and the SPDR S&P 500 ETF (SPY) track a similar index. While iShares Core S&P 500 ETF has $397.71 billion in assets, SPDR S&P 500 ETF has $456.74 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
First Trust Large Cap Core AlphaDEX ETF (FEX): ETF Research Reports
KeyCorp (KEY) : Free Stock Analysis Report
Marathon Petroleum Corporation (MPC) : Free Stock Analysis Report
SPDR S&P 500 ETF (SPY): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports
Ovintiv Inc. (OVV) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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It has amassed assets over $1.11 billion, making it one of the larger ETFs attempting to match the Large Cap Blend segment of the US equity market. Blend ETFs are aptly named, since they tend to hold a mix of growth and value stocks, as well as show characteristics of both kinds of equities. Looking at individual holdings, Marathon Petroleum Corporation (MPC) accounts for about 0.56% of total assets, followed by Keycorp (KEY) and Ovintiv Inc. (OVV).
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Designed to provide broad exposure to the Large Cap Blend segment of the US equity market, the First Trust Large Cap Core AlphaDEX ETF (FEX) is a passively managed exchange traded fund launched on 05/08/2007. The NASDAQ AlphaDEX Large Cap Core Index is an enhanced index which employs the AlphaDEX stock selection methodology to select stocks from the NASDAQ US 500 Large Cap Index. Click to get this free report First Trust Large Cap Core AlphaDEX ETF (FEX): ETF Research Reports KeyCorp (KEY) : Free Stock Analysis Report Marathon Petroleum Corporation (MPC) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports Ovintiv Inc. (OVV) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Designed to provide broad exposure to the Large Cap Blend segment of the US equity market, the First Trust Large Cap Core AlphaDEX ETF (FEX) is a passively managed exchange traded fund launched on 05/08/2007. Alternatives First Trust Large Cap Core AlphaDEX ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Click to get this free report First Trust Large Cap Core AlphaDEX ETF (FEX): ETF Research Reports KeyCorp (KEY) : Free Stock Analysis Report Marathon Petroleum Corporation (MPC) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports Ovintiv Inc. (OVV) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Designed to provide broad exposure to the Large Cap Blend segment of the US equity market, the First Trust Large Cap Core AlphaDEX ETF (FEX) is a passively managed exchange traded fund launched on 05/08/2007. The top 10 holdings account for about 5.27% of total assets under management. Investors might also want to consider some other ETF options in the space.
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710977.0
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2023-12-16 00:00:00 UTC
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New Strong Buy Stocks for December 19th
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DCOMP
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https://www.nasdaq.com/articles/new-strong-buy-stocks-for-december-19th-0
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nan
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Here are five stocks added to the Zacks Rank #1 (Strong Buy) List today:
Beacon Roofing Supply, Inc. BECN: This company which distributes residential and non-residential roofing materials, and complementary building products has seen the Zacks Consensus Estimate for its current year earnings increasing 10.2% over the last 60 days.
Beacon Roofing Supply, Inc. Price and Consensus
Beacon Roofing Supply, Inc. price-consensus-chart | Beacon Roofing Supply, Inc. Quote
Sunoco LP SUN: This retail fuel company has seen the Zacks Consensus Estimate for its current year earnings increasing 21.8% over the last 60 days.
Sunoco LP Price and Consensus
Sunoco LP price-consensus-chart | Sunoco LP Quote
Nextracker Inc. NXT: This energy solutions company has seen the Zacks Consensus Estimate for its current year earnings increasing 30.4% over the last 60 days.
Nextracker Inc. Price and Consensus
Nextracker Inc. price-consensus-chart | Nextracker Inc. Quote
FlexShopper, Inc. FPAY: This financial technology company has seen the Zacks Consensus Estimate for its current year earnings increasing 21.9% over the last 60 days.
FlexShopper Inc. Price and Consensus
FlexShopper Inc. price-consensus-chart | FlexShopper Inc. Quote
Hagerty, Inc. HGTY: This company which provides insurance agency services has seen the Zacks Consensus Estimate for its current year earnings increasing 400% over the last 60 days.
Hagerty, Inc. Price and Consensus
Hagerty, Inc. price-consensus-chart | Hagerty, Inc. Quote
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Sunoco LP (SUN) : Free Stock Analysis Report
Beacon Roofing Supply, Inc. (BECN) : Free Stock Analysis Report
FlexShopper Inc. (FPAY) : Free Stock Analysis Report
Hagerty, Inc. (HGTY) : Free Stock Analysis Report
Nextracker Inc. (NXT) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Here are five stocks added to the Zacks Rank #1 (Strong Buy) List today: Beacon Roofing Supply, Inc. BECN: This company which distributes residential and non-residential roofing materials, and complementary building products has seen the Zacks Consensus Estimate for its current year earnings increasing 10.2% over the last 60 days. Zacks Reveals ChatGPT "Sleeper" Stock One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys."
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Beacon Roofing Supply, Inc. Price and Consensus Beacon Roofing Supply, Inc. price-consensus-chart | Beacon Roofing Supply, Inc. Quote Sunoco LP SUN: This retail fuel company has seen the Zacks Consensus Estimate for its current year earnings increasing 21.8% over the last 60 days. Sunoco LP Price and Consensus Sunoco LP price-consensus-chart | Sunoco LP Quote Nextracker Inc. NXT: This energy solutions company has seen the Zacks Consensus Estimate for its current year earnings increasing 30.4% over the last 60 days. Click to get this free report Sunoco LP (SUN) : Free Stock Analysis Report Beacon Roofing Supply, Inc. (BECN) : Free Stock Analysis Report FlexShopper Inc. (FPAY) : Free Stock Analysis Report Hagerty, Inc. (HGTY) : Free Stock Analysis Report Nextracker Inc. (NXT) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Here are five stocks added to the Zacks Rank #1 (Strong Buy) List today: Beacon Roofing Supply, Inc. BECN: This company which distributes residential and non-residential roofing materials, and complementary building products has seen the Zacks Consensus Estimate for its current year earnings increasing 10.2% over the last 60 days. Beacon Roofing Supply, Inc. Price and Consensus Beacon Roofing Supply, Inc. price-consensus-chart | Beacon Roofing Supply, Inc. Quote Sunoco LP SUN: This retail fuel company has seen the Zacks Consensus Estimate for its current year earnings increasing 21.8% over the last 60 days. Click to get this free report Sunoco LP (SUN) : Free Stock Analysis Report Beacon Roofing Supply, Inc. (BECN) : Free Stock Analysis Report FlexShopper Inc. (FPAY) : Free Stock Analysis Report Hagerty, Inc. (HGTY) : Free Stock Analysis Report Nextracker Inc. (NXT) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Here are five stocks added to the Zacks Rank #1 (Strong Buy) List today: Beacon Roofing Supply, Inc. BECN: This company which distributes residential and non-residential roofing materials, and complementary building products has seen the Zacks Consensus Estimate for its current year earnings increasing 10.2% over the last 60 days. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research? Click to get this free report Sunoco LP (SUN) : Free Stock Analysis Report Beacon Roofing Supply, Inc. (BECN) : Free Stock Analysis Report FlexShopper Inc. (FPAY) : Free Stock Analysis Report Hagerty, Inc. (HGTY) : Free Stock Analysis Report Nextracker Inc. (NXT) : Free Stock Analysis Report To read this article on Zacks.com click here.
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17c3a96c-e8dc-4bef-b222-82345991bf83
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710978.0
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2023-12-16 00:00:00 UTC
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Insiders Bullish on Certain Holdings of DIVB
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DCOMP
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https://www.nasdaq.com/articles/insiders-bullish-on-certain-holdings-of-divb-0
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A look at the weighted underlying holdings of the iShares Core Dividend ETF (DIVB) shows an impressive 12.0% of holdings on a weighted basis have experienced insider buying within the past six months.
Altria Group Inc (Symbol: MO), which makes up 0.88% of the iShares Core Dividend ETF (DIVB), has seen 2 directors and officers purchase shares in the past six months, according to the recent Form 4 data. The ETF holds a total of $2,461,395 worth of MO, making it the #30 largest holding. The table below details the recent insider buying activity observed at MO:
MO — last trade: $42.20 — Recent Insider Buys:
PURCHASED INSIDER TITLE SHARES PRICE/SHARE VALUE
11/06/2023 Robert Matthews Davis Director 1,200 $40.50 $48,599
11/06/2023 Ian L.T. Clarke Director 1,100 $40.57 $44,625
And Keurig Dr Pepper Inc (Symbol: KDP), the #167 largest holding among components of the iShares Core Dividend ETF (DIVB), shows 3 directors and officers as recently filing Form 4's indicating purchases. The ETF holds $269,745 worth of KDP, which represents approximately 0.10% of the ETF's total assets at last check. The recent insider buying activity observed at KDP is detailed in the table below:
KDP — last trade: $32.40 — Recent Insider Buys:
PURCHASED INSIDER TITLE SHARES PRICE/SHARE VALUE
08/03/2023 Karin Rotem-wildeman Chief R&D Officer 53,837 $34.30 $1,846,342
10/27/2023 Karin Rotem-wildeman Chief R&D Officer 7,050 $29.95 $211,148
11/08/2023 Timothy P. Cofer Chief Operating Officer 100,000 $31.17 $3,117,400
12/12/2023 Monique Oxender Chief Corp. Affairs Officer 6,000 $32.72 $196,320
10 ETFs With Stocks That Insiders Are Buying »
Also see:
Funds Holding TECZ
CPER Options Chain
NBTB market cap history
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Altria Group Inc (Symbol: MO), which makes up 0.88% of the iShares Core Dividend ETF (DIVB), has seen 2 directors and officers purchase shares in the past six months, according to the recent Form 4 data. Clarke Director 1,100 $40.57 $44,625 And Keurig Dr Pepper Inc (Symbol: KDP), the #167 largest holding among components of the iShares Core Dividend ETF (DIVB), shows 3 directors and officers as recently filing Form 4's indicating purchases. 08/03/2023 Karin Rotem-wildeman Chief R&D Officer 53,837 $34.30 $1,846,342 10/27/2023 Karin Rotem-wildeman Chief R&D Officer 7,050 $29.95 $211,148 11/08/2023 Timothy P. Cofer Chief Operating Officer 100,000 $31.17 $3,117,400 12/12/2023 Monique Oxender Chief Corp. Affairs Officer 6,000 $32.72 $196,320 10 ETFs With Stocks That Insiders Are Buying » Also see: Funds Holding TECZ CPER Options Chain NBTB market cap history The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Altria Group Inc (Symbol: MO), which makes up 0.88% of the iShares Core Dividend ETF (DIVB), has seen 2 directors and officers purchase shares in the past six months, according to the recent Form 4 data. The table below details the recent insider buying activity observed at MO: MO — last trade: $42.20 — Recent Insider Buys: The recent insider buying activity observed at KDP is detailed in the table below: KDP — last trade: $32.40 — Recent Insider Buys:
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A look at the weighted underlying holdings of the iShares Core Dividend ETF (DIVB) shows an impressive 12.0% of holdings on a weighted basis have experienced insider buying within the past six months. Clarke Director 1,100 $40.57 $44,625 And Keurig Dr Pepper Inc (Symbol: KDP), the #167 largest holding among components of the iShares Core Dividend ETF (DIVB), shows 3 directors and officers as recently filing Form 4's indicating purchases. 08/03/2023 Karin Rotem-wildeman Chief R&D Officer 53,837 $34.30 $1,846,342 10/27/2023 Karin Rotem-wildeman Chief R&D Officer 7,050 $29.95 $211,148 11/08/2023 Timothy P. Cofer Chief Operating Officer 100,000 $31.17 $3,117,400 12/12/2023 Monique Oxender Chief Corp. Affairs Officer 6,000 $32.72 $196,320 10 ETFs With Stocks That Insiders Are Buying » Also see: Funds Holding TECZ CPER Options Chain NBTB market cap history The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Altria Group Inc (Symbol: MO), which makes up 0.88% of the iShares Core Dividend ETF (DIVB), has seen 2 directors and officers purchase shares in the past six months, according to the recent Form 4 data. The ETF holds a total of $2,461,395 worth of MO, making it the #30 largest holding. Clarke Director 1,100 $40.57 $44,625 And Keurig Dr Pepper Inc (Symbol: KDP), the #167 largest holding among components of the iShares Core Dividend ETF (DIVB), shows 3 directors and officers as recently filing Form 4's indicating purchases.
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eadb95d3-b089-4489-aad1-76e3d16cf0d7
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710979.0
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2023-12-16 00:00:00 UTC
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New Year's Resolution: Buy This Artificial Intelligence (AI) Stock Hand Over Fist
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DCOMP
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https://www.nasdaq.com/articles/new-years-resolution%3A-buy-this-artificial-intelligence-ai-stock-hand-over-fist
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Investors will likely remember 2023 as the year artificial intelligence (AI) found footing in the market. With the excitement generated by ChatGPT, investors have rushed into many prominent AI stocks.
Such price action may persuade investors to make a New Year's resolution to buy a specific stock. Verizon (NYSE: VZ) is one to consider. Investors hammered it as debt costs and growth struggles weighed on the telecom stock. Nonetheless, thanks to a critical piece of news, this stock is likely to surge higher in the new year for one key reason.
Why is 2024 the time for Verizon?
Admittedly, after years of declines, one can understand some hesitation to buy Verizon. The stock has fallen 35% over the last five years as slow customer growth, competition from T-Mobile and AT&T, and the massive capital costs in a nearly continuous process of network upgrades weighed on the company.
Consequently, Verizon managed to rack up nearly $147 billion in debt, and that is without the costly moves into pay TV and content that have hurt AT&T. Over the next year, almost $13 billion in debt will come due on debt ranging from 1.625% to 4.073% in interest costs.
Hence, unless it reduces or eliminates the dividend, which is on track to cost it $11 billion in 2023, Verizon will likely have to turn to the capital markets to refinance most of the debt at higher rates. Worse, it could have to keep repeating this process in subsequent years.
The good news
However, Federal Reserve Chairman Jerome Powell has held the federal funds rate steady and indicated the Fed will reduce it three times in 2024. That move could reduce the effect of the higher rates as it issues new debt.
Moreover, lower rates could improve Verizon's revenue prospects. Businesses had cut back on activity with the higher cost of borrowing, but lower rates could mean that they'll resume spending.
This is important because J.D. Power has named Verizon No. 1 for network quality 31 consecutive times. Networks like Verizon's support AI-driven activities, and such accolades could make it the best-positioned telecom company to attract that business.
AI has also helped foster an additional source of revenue for Verizon. Its 5G network can support AI-driven tasks such as repetitive work and bring insights and innovation in real time, making Verizon's network a critical component of increasing productivity.
As a result, enterprises as diverse as Honda Motor Company and Arizona State University rely on Verizon's 5G to support connectivity and IT-related functions that are critical for AI to work. Attracting similar clients will almost certainly make Verizon's 5G network and the application of AI more critical.
How that may benefit shareholders
As such benefits become more evident to investors, more people and entities may want to become Verizon shareholders. In the recent past, its price-to-earnings (P/E) ratio of just under 8 did not attract investors due to slow growth and high debts. Still, if AI-driven applications start to spur more revenue growth, investors will probably respond positively to the low earnings multiple.
Investors may also be in better shape with regard to the dividend. After 17 yearly increases, the annual payout of $2.66 per share amounts to a dividend yield of over 7%, nearly five times the S&P 500 average of 1.5%.
Admittedly, one could argue that eliminating the dividend helps Verizon stock since it makes faster debt reduction possible. Still, lower debt costs make it less costly to maintain a payout, which could preserve the stock's appeal to income investors.
Consider Verizon
Verizon's support of AI-driven applications makes its stock more appealing under current conditions. Since it leads in network quality, it has already begun to serve the 5G-related AI needs of clients, a business that will likely grow.
With the added prospect of falling interest rates, adopting that technology could accelerate. Moreover, lower rates should make the company's debt load more manageable, increasing the shareholder appeal of Verizon stock in the new year.
Should you invest $1,000 in Verizon Communications right now?
Before you buy stock in Verizon Communications, consider this:
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See the 10 stocks
*Stock Advisor returns as of December 11, 2023
Will Healy has no position in any of the stocks mentioned. The Motley Fool recommends T-Mobile US 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.
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The stock has fallen 35% over the last five years as slow customer growth, competition from T-Mobile and AT&T, and the massive capital costs in a nearly continuous process of network upgrades weighed on the company. Hence, unless it reduces or eliminates the dividend, which is on track to cost it $11 billion in 2023, Verizon will likely have to turn to the capital markets to refinance most of the debt at higher rates. As a result, enterprises as diverse as Honda Motor Company and Arizona State University rely on Verizon's 5G to support connectivity and IT-related functions that are critical for AI to work.
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Consider Verizon Verizon's support of AI-driven applications makes its stock more appealing under current conditions. Moreover, lower rates should make the company's debt load more manageable, increasing the shareholder appeal of Verizon stock in the new year. Before you buy stock in Verizon Communications, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Verizon Communications wasn't one of them.
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Consider Verizon Verizon's support of AI-driven applications makes its stock more appealing under current conditions. Moreover, lower rates should make the company's debt load more manageable, increasing the shareholder appeal of Verizon stock in the new year. Before you buy stock in Verizon Communications, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Verizon Communications wasn't one of them.
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Hence, unless it reduces or eliminates the dividend, which is on track to cost it $11 billion in 2023, Verizon will likely have to turn to the capital markets to refinance most of the debt at higher rates. Moreover, lower rates should make the company's debt load more manageable, increasing the shareholder appeal of Verizon stock in the new year. Before you buy stock in Verizon Communications, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Verizon Communications wasn't one of them.
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d17e4868-84cf-4b47-9659-f13d0589a28a
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710980.0
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2023-12-16 00:00:00 UTC
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LIN, MCD: Top Analysts Love These “Strong Buy” Dividend Aristocrat Stocks
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DCOMP
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https://www.nasdaq.com/articles/lin-mcd%3A-top-analysts-love-these-strong-buy-dividend-aristocrat-stocks
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nan
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Linde (NYSE:LIN) and McDonald’s (NYSE:MCD) have been consistently increasing their dividends for decades, earning them the status of Dividend Aristocrats (learn more about Dividend Aristocrats here). Both of these stocks may be considered for generating a consistent income and are loved by the Top Wall Street analysts, boasting a Strong Buy consensus rating.
Investors might like to know that TipRanks ranks analysts based on industry expertise, timeline, and performance. The rankings indicate an analyst’s proficiency in generating superior returns through their recommendations. After assigning ratings, TipRanks’ algorithms analyze the statistical significance of each rating, the overall success rate of analysts, and the average return.
With this backdrop, let’s delve into LIN and MCD stocks.
Is Linde a Good Stock to Buy?
Shares of the industrial gases and engineering company Linde can be considered a good investment for income investors. It has increased its dividend for 30 consecutive years. Moreover, it offers a yield of 1.2%. The company's integrated assets, focus on productivity initiatives, and solid pricing strategy position it favorably to generate strong earnings and cash flows and support higher dividend payments.
Seven Top Wall Street analysts cover Linde stock, and all recommend a Buy. Collectively, their 12-month price target of $447.14 implies an upside potential of 9.3%.
What is the Future of McDonald's Stock?
Top analysts are bullish about McDonald's stock. Moreover, MCD is also a solid income stock. The food service retailer recently announced a 10% increase in its quarterly dividend. Furthermore, it has now raised its dividend for 47 consecutive years. MCD stock currently yields about 2.2%.
19 out of 24 Top Analysts who recently rated McDonald’s stock gave it a Buy. Further, their 12-month price target of $313.74 implies an upside potential of 8.1%.
Bottom Line
Linde and McDonald’s stocks are famous for their ability to increase dividends. Moreover, these stocks sport a Strong Buy consensus rating from Top Wall Street analysts, indicating investors can consider these stocks to generate regular passive income.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Both of these stocks may be considered for generating a consistent income and are loved by the Top Wall Street analysts, boasting a Strong Buy consensus rating. Shares of the industrial gases and engineering company Linde can be considered a good investment for income investors. The company's integrated assets, focus on productivity initiatives, and solid pricing strategy position it favorably to generate strong earnings and cash flows and support higher dividend payments.
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Linde (NYSE:LIN) and McDonald’s (NYSE:MCD) have been consistently increasing their dividends for decades, earning them the status of Dividend Aristocrats (learn more about Dividend Aristocrats here). Both of these stocks may be considered for generating a consistent income and are loved by the Top Wall Street analysts, boasting a Strong Buy consensus rating. Moreover, these stocks sport a Strong Buy consensus rating from Top Wall Street analysts, indicating investors can consider these stocks to generate regular passive income.
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Linde (NYSE:LIN) and McDonald’s (NYSE:MCD) have been consistently increasing their dividends for decades, earning them the status of Dividend Aristocrats (learn more about Dividend Aristocrats here). Both of these stocks may be considered for generating a consistent income and are loved by the Top Wall Street analysts, boasting a Strong Buy consensus rating. Moreover, these stocks sport a Strong Buy consensus rating from Top Wall Street analysts, indicating investors can consider these stocks to generate regular passive income.
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Linde (NYSE:LIN) and McDonald’s (NYSE:MCD) have been consistently increasing their dividends for decades, earning them the status of Dividend Aristocrats (learn more about Dividend Aristocrats here). Moreover, MCD is also a solid income stock. 19 out of 24 Top Analysts who recently rated McDonald’s stock gave it a Buy.
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1d3985b3-c477-453c-8d98-004dcc5027ed
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710981.0
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2023-12-16 00:00:00 UTC
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Fox (FOXA) News Digital Rides on Multiplatform Views in November
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DCOMP
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https://www.nasdaq.com/articles/fox-foxa-news-digital-rides-on-multiplatform-views-in-november
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nan
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Fox Corporation FOXA is riding on FOX News Digital's continued dominance in the news and business sectors, both in terms of online traffic and social media engagement.
In November, FOX News Digital maintained its position as the top news brand in both multiplatform views and minutes. This marked the 33rd consecutive month that FOX News Digital led news brands in multiplatform minutes and the 14th consecutive month as the leader in multiplatform views.
FOX News Digital closed out the month with 2.9 billion total multiplatform minutes, 1.7 billion total multiplatform views and 89 million multiplatform unique visitors. The FOX News Mobile App reached 5.8 million unique visitors in November.
FOX News was the most engaged brand on social media in the competitive set for November, with 18.4 million total social interactions. This marked the 111th consecutive month that FOX News placed on top in social media engagement.
FOX News had 2.7 average views per visit, showing an 11% year-over-year increase. On Alphabet GOOGL owned YouTube, FOX News secured 183 million video views. It also drove 4.5 million interactions on Meta Platforms META owned Facebook, 11.9 million Instagram interactions and 1.9 million X interactions, seeing month-over-month gains across all platforms.
Fox Corporation Price and Consensus
Fox Corporation price-consensus-chart | Fox Corporation Quote
Fox's Business Network Outpaces Competitors Once Again
FOXBusiness.com outperformed competitors such as Warner Bros. Discovery WBD owned CNN Business, Bloomberg.com and Forbes.com, driving 187 million multiplatform views in November.
The business site delivered 264 million multiplatform minutes (up 4% from October) and 26.3 million multiplatform unique visitors (up 15% from October).
FOX Business' videos on YouTube remained the most viewed among the business news competitive set for the 24th straight month, achieving 56.7 million views in November.
Fox Sees a Slowdown in Growth Due to Cord-Cutting
Cord-cutting due to the shift in consumer viewing patterns toward subscription-based video-on-demand services does not bode well for Fox, which is predominantly a linear television content provider.
Shares of this Zacks Rank #3 (Hold) company have declined 2.4% in the year-to-date period against the Zacks Consumer Discretionary sector’s rise of 16.6%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
As of the third quarter of 2023, traditional pay TV subscribers declined to 51% year over year, while 35% of total U.S. Internet households have dropped their traditional pay TV subscription without replacing it, per S&P Global report.
What further escalates the threat for FOXA is the decline in ad revenue growth as advertisers are contending with rising costs amid record inflation, which has led to cutbacks in spending on advertising.
In first-quarter fiscal 2024, advertising (37.4% of revenues) declined 1.6% year over year to $1.2 billion as continued growth at Tubi was more than offset by comparably lower political advertising revenues at the FOX Television Stations and the impact of elevated supply in the direct response marketplace at FOX News Media. This trend is likely to continue in the near term.
The Zacks Consensus Estimate for fiscal third-quarter advertising revenues is pegged at $1.2 billion, indicating a decline of 1.7% year over year.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Warner Bros. Discovery, Inc. (WBD) : Free Stock Analysis Report
Fox Corporation (FOXA) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
Meta Platforms, Inc. (META) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In first-quarter fiscal 2024, advertising (37.4% of revenues) declined 1.6% year over year to $1.2 billion as continued growth at Tubi was more than offset by comparably lower political advertising revenues at the FOX Television Stations and the impact of elevated supply in the direct response marketplace at FOX News Media. Zacks Reveals ChatGPT "Sleeper" Stock One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys."
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This marked the 33rd consecutive month that FOX News Digital led news brands in multiplatform minutes and the 14th consecutive month as the leader in multiplatform views. FOX News Digital closed out the month with 2.9 billion total multiplatform minutes, 1.7 billion total multiplatform views and 89 million multiplatform unique visitors. Discovery, Inc. (WBD) : Free Stock Analysis Report Fox Corporation (FOXA) : 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.
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FOX News Digital closed out the month with 2.9 billion total multiplatform minutes, 1.7 billion total multiplatform views and 89 million multiplatform unique visitors. In first-quarter fiscal 2024, advertising (37.4% of revenues) declined 1.6% year over year to $1.2 billion as continued growth at Tubi was more than offset by comparably lower political advertising revenues at the FOX Television Stations and the impact of elevated supply in the direct response marketplace at FOX News Media. Discovery, Inc. (WBD) : Free Stock Analysis Report Fox Corporation (FOXA) : 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.
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Fox Corporation FOXA is riding on FOX News Digital's continued dominance in the news and business sectors, both in terms of online traffic and social media engagement. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research? Discovery, Inc. (WBD) : Free Stock Analysis Report Fox Corporation (FOXA) : 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.
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6e649d36-bf5a-4ddb-9d97-830bda0b4a61
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710982.0
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2023-12-16 00:00:00 UTC
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Unveiling CarMax (KMX) Q3 Outlook: Wall Street Estimates for Key Metrics
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DCOMP
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https://www.nasdaq.com/articles/unveiling-carmax-kmx-q3-outlook%3A-wall-street-estimates-for-key-metrics
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Analysts on Wall Street project that CarMax (KMX) will announce quarterly earnings of $0.45 per share in its forthcoming report, representing an increase of 87.5% year over year. Revenues are projected to reach $6.34 billion, declining 2.6% from the same quarter last year.
Over the last 30 days, there has been a downward revision of 5.9% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.
Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements of a stock.
While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.
Bearing this in mind, let's now explore the average estimates of specific CarMax metrics that are commonly monitored and projected by Wall Street analysts.
The consensus estimate for 'Net sales- Wholesale vehicles' stands at $1.16 billion. The estimate indicates a change of +1% from the prior-year quarter.
The average prediction of analysts places 'Net sales- Used vehicles' at $5.02 billion. The estimate indicates a change of -3.5% from the prior-year quarter.
Based on the collective assessment of analysts, 'Net sales- Other' should arrive at $153.60 million. The estimate points to a change of +3% from the year-ago quarter.
According to the collective judgment of analysts, 'Other sales and revenues- Extended protection plan revenues' should come in at $89.95 million. The estimate indicates a change of -2% from the prior-year quarter.
Analysts forecast 'Number of stores - Total' to reach 243. The estimate compares to the year-ago value of 230.
Analysts' assessment points toward 'Gross Profit per Unit - Used vehicles gross profit' reaching $2,231.18. Compared to the current estimate, the company reported $2,237 in the same quarter of the previous year.
The combined assessment of analysts suggests that 'Gross Profit per Unit - Wholesale vehicles gross profit' will likely reach $952.74. The estimate compares to the year-ago value of $966.
It is projected by analysts that the 'Revenue per vehicle retailed (ASP) - Wholesale vehicles' will reach $8.71 thousand. Compared to the present estimate, the company reported $9.29 thousand in the same quarter last year.
The collective assessment of analysts points to an estimated 'Unit sales - Wholesale vehicles' of 127,598. Compared to the present estimate, the company reported 118,757 in the same quarter last year.
The consensus among analysts is that 'Unit sales - Used vehicles' will reach 182,723. The estimate is in contrast to the year-ago figure of 180,050.
Analysts expect 'Revenue per vehicle retailed (ASP) - Used vehicles' to come in at $26.92 thousand. Compared to the present estimate, the company reported $28.53 thousand in the same quarter last year.
Analysts predict that the 'Gross Profit per Unit - Other gross profit' will reach $501.84. Compared to the present estimate, the company reported $329 in the same quarter last year.
View all Key Company Metrics for CarMax here>>>
Over the past month, shares of CarMax have returned +16.8% versus the Zacks S&P 500 composite's +5.2% change. Currently, KMX carries a Zacks Rank #4 (Sell), suggesting that it may underperform the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
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CarMax, Inc. (KMX) : 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.
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Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements of a stock. While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight. Bearing this in mind, let's now explore the average estimates of specific CarMax metrics that are commonly monitored and projected by Wall Street analysts.
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Analysts' assessment points toward 'Gross Profit per Unit - Used vehicles gross profit' reaching $2,231.18. The combined assessment of analysts suggests that 'Gross Profit per Unit - Wholesale vehicles gross profit' will likely reach $952.74. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Zacks Naming Top 10 Stocks for 2024 Want to be tipped off early to our 10 top picks for the entirety of 2024?
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While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight. Compared to the present estimate, the company reported $9.29 thousand in the same quarter last year. Compared to the present estimate, the company reported $28.53 thousand in the same quarter last year.
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The estimate points to a change of +3% from the year-ago quarter. The consensus among analysts is that 'Unit sales - Used vehicles' will reach 182,723. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Zacks Naming Top 10 Stocks for 2024 Want to be tipped off early to our 10 top picks for the entirety of 2024?
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6f7283f8-2eeb-43bd-82a4-1e3e960cd53a
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710983.0
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2023-12-16 00:00:00 UTC
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Allkem shareholders set to vote on Livent's $10.6 bln merger bid
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https://www.nasdaq.com/articles/allkem-shareholders-set-to-vote-on-livents-%2410.6-bln-merger-bid
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By Scott Murdoch
SYDNEY, Dec 19 (Reuters) - Investors of Australian lithium producer Allkem <AKE.AX> will vote on Tuesday whether to accept a $10.6 billion merger offer from U.S. giant Livent <LTHM.N> that would create one of the world's largest lithium companies.
Livent last week said it had received all regulatory approvals for the deal to proceed that will create a company called Arcadium Lithium.
Under the deal, Allkem shareholders will get one share in Arcadium Lithium for each of their shares, and the company will ultimately own 56% of the new firm.
Livent shareholders will get 2.406 shares in the new firm for each existing share and Livent CEO Paul Graves will take the top job.
The new company will be the world's third-biggest producer of the key metal used in electric vehicle batteries, behind U.S.-based Albemarle ALB.N and Chile's SQM SQMA.SN.
The transaction has been recommended by independent experts in a report compiled by financial advisors Kroll. Major proxy advisory firms have also recommended investors vote in favour of the deal.
Livent's Graves told Reuters in November the new company would be keen to expand its existing asset base in Western Australia's world-class lithium districts.
(Reporting by Scott Murdoch in Sydney; Editing by Christopher Cushing)
((Scott.Murdoch@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Livent last week said it had received all regulatory approvals for the deal to proceed that will create a company called Arcadium Lithium. The new company will be the world's third-biggest producer of the key metal used in electric vehicle batteries, behind U.S.-based Albemarle ALB.N and Chile's SQM SQMA.SN. Livent's Graves told Reuters in November the new company would be keen to expand its existing asset base in Western Australia's world-class lithium districts.
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By Scott Murdoch SYDNEY, Dec 19 (Reuters) - Investors of Australian lithium producer Allkem <AKE.AX> will vote on Tuesday whether to accept a $10.6 billion merger offer from U.S. giant Livent <LTHM.N> that would create one of the world's largest lithium companies. Under the deal, Allkem shareholders will get one share in Arcadium Lithium for each of their shares, and the company will ultimately own 56% of the new firm. Livent shareholders will get 2.406 shares in the new firm for each existing share and Livent CEO Paul Graves will take the top job.
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By Scott Murdoch SYDNEY, Dec 19 (Reuters) - Investors of Australian lithium producer Allkem <AKE.AX> will vote on Tuesday whether to accept a $10.6 billion merger offer from U.S. giant Livent <LTHM.N> that would create one of the world's largest lithium companies. Under the deal, Allkem shareholders will get one share in Arcadium Lithium for each of their shares, and the company will ultimately own 56% of the new firm. Livent shareholders will get 2.406 shares in the new firm for each existing share and Livent CEO Paul Graves will take the top job.
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By Scott Murdoch SYDNEY, Dec 19 (Reuters) - Investors of Australian lithium producer Allkem <AKE.AX> will vote on Tuesday whether to accept a $10.6 billion merger offer from U.S. giant Livent <LTHM.N> that would create one of the world's largest lithium companies. Under the deal, Allkem shareholders will get one share in Arcadium Lithium for each of their shares, and the company will ultimately own 56% of the new firm. Livent shareholders will get 2.406 shares in the new firm for each existing share and Livent CEO Paul Graves will take the top job.
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710984.0
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2023-12-16 00:00:00 UTC
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3 Flying Car Stocks You’ll Regret Not Buying Soon: December Edition
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https://www.nasdaq.com/articles/3-flying-car-stocks-youll-regret-not-buying-soon%3A-december-edition
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Flying car stocks have great upside potential. And now could be a great time to purchase these shares. The broader indices still have the potential of a Santa Claus rally, moving closer to Christmas. So, the expectation is this momentum will continue into early 2024 and beyond.
The companies selected to take advantage of this rally are potentially undervalued. This can be seen by their low valuation ratios and their prospects for unlocking further growth for investors.
So let’s explore three flying car stocks for investors to consider buying.
Airbus (EADSY)
Source: klyaksun / Shutterstock
Airbus (OTCMKTS:EADSY) a major player in the aerospace sector, is actively exploring urban air mobility aircraft. They have been working on projects like CityAirbus and Vahana, which are electric vertical take-off and landing (eVTOL) aircraft.
The CityAirbus differs from others as it’s an all-electric, four-seat eVTOL design with an 80-km operational range.
Only a few announcements have surfaced over the years about these aircraft. So, we can surmise that they are still under heavy research and development. However, as the market looks to more established (and expensive) flying car stocks, investors opening a small position in EADSY stock while it’s still cheap could be a prudent option.
The current P/E ratio at 27.18 and the forward P/E at 21.28 suggest a valuation relative to its earnings. While a PEG Ratio of 1.51 indicates potential for growth relative to earnings growth.
Archer Aviation (ACHR)
Source: T. Schneider / Shutterstock.com
Archer Aviation (NYSE:ACHR) is another flying car stock that investors should have on their radars.
The company is backed by investments from United Airlines and Stellantis. This could instill investor confidence since it is already in demand from the larger airlines and aviation companies.
However, the true value for ACHR lays in its valuation ratios, which currently look highly attractive. With a market cap of $2.02 billion and an enterprise value of $1.57 billion, the company shows a discrepancy between its market and intrinsic business values.
To me, this means that the market is pricing in expectation that its cash-generation ability will increase to help close the gap. Also, it gives a lift to its future stock price.
Additionally, the significant increase in share price by 220.57% over the past year, combined with a strong insider ownership of 26.21%, points to a bullish backdrop. And, many investors find that appealing.
Joby Aviation (JOBY)
Source: Iljanaresvara Studio / Shutterstock.com
Some analysts consider Joby Aviation (NYSE:JOBY) to be the blue-chip option for those who are comfortable with getting potentially lower returns in exchange for shares in a less speculative company.
So, why is JOBY ahead of other flying car stocks? The first reason is FAA certifications and the fact its stock price has more than doubled this year. Furthermore, recent collaborations, like the vertiport development in Japan with ANA Holdings, hint at expanding market reach.
Just like with ACHR stock, there’s a potential undervaluation in terms of its overall business worth to market cap. The company’s market cap stands at $4.78 billion, whereas its enterprise value is $3.70 billion.
Although the company is currently not cash flow positive, it has ample cash on its balance sheet to buy itself a runway to chart toward profitability. Hence, this makes it undervalued relative to its future earnings potential, as well as one of those flying car stocks to buy for 2024 and beyond.
On the date of publication, Matthew Farley did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Matthew started writing coverage of the financial markets during the crypto boom of 2017 and was also a team member of several fintech startups. He then started writing about Australian and U.S. equities for various publications. His work has appeared in MarketBeat, FXStreet, Cryptoslate, Seeking Alpha, and the New Scientist magazine, among others.
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The post 3 Flying Car Stocks You’ll Regret Not Buying Soon: December Edition appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Additionally, the significant increase in share price by 220.57% over the past year, combined with a strong insider ownership of 26.21%, points to a bullish backdrop. Matthew started writing coverage of the financial markets during the crypto boom of 2017 and was also a team member of several fintech startups. The #1 AI Investment Might Be This Company You’ve Never Heard Of The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors The post 3 Flying Car Stocks You’ll Regret Not Buying Soon: December Edition appeared first on InvestorPlace.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Flying car stocks have great upside potential. However, as the market looks to more established (and expensive) flying car stocks, investors opening a small position in EADSY stock while it’s still cheap could be a prudent option. Archer Aviation (ACHR) Source: T. Schneider / Shutterstock.com Archer Aviation (NYSE:ACHR) is another flying car stock that investors should have on their radars.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Flying car stocks have great upside potential. However, as the market looks to more established (and expensive) flying car stocks, investors opening a small position in EADSY stock while it’s still cheap could be a prudent option. Archer Aviation (ACHR) Source: T. Schneider / Shutterstock.com Archer Aviation (NYSE:ACHR) is another flying car stock that investors should have on their radars.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Flying car stocks have great upside potential. So let’s explore three flying car stocks for investors to consider buying. Hence, this makes it undervalued relative to its future earnings potential, as well as one of those flying car stocks to buy for 2024 and beyond.
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710985.0
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2023-12-16 00:00:00 UTC
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1 Warren Buffett ETF to Buy and Hold for Decades
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https://www.nasdaq.com/articles/1-warren-buffett-etf-to-buy-and-hold-for-decades
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The right investments can supercharge your portfolio, helping you maximize your earnings while minimizing risk. It can be tricky, though, to invest in the right places, especially when everyone's preferences and needs will be slightly different.
While there's no single correct way to invest, there is one exchange-traded fund (ETF) that could be a good fit for many people. It's not only one of the safest ETFs out there and almost guaranteed to make you money over time, but it's also earned the Warren Buffett stamp of approval.
An effortless way to build wealth
Most of Warren Buffett's portfolio through his holding company Berkshire Hathaway is comprised of individual stocks. He does own two ETFs, though, both of which are S&P 500 ETFs: the Vanguard S&P 500 ETF (NYSEMKT: VOO) and the SPDR S&P 500 ETF Trust (NYSEMKT: SPY).
An S&P 500 ETF tracks the S&P 500 index itself. Each fund includes stocks from 500 of the largest and strongest companies in the U.S. across a wide variety of industries. When you invest in a single ETF, then, you're actually investing in hundreds of different stocks at once.
While this ETF won't be right for everyone, it can be a good fit for those looking for a low-maintenance investment that can consistently grow your savings over time with less risk. A few of the S&P 500 ETF's biggest advantages include:
Very little upkeep: Because all of the stocks in this ETF are already chosen for you, that can save you loads of time. You don't need to research companies, keep up with industry trends, or decide when to buy or sell a stock. Simply invest whatever you can afford, and the ETF will do all the heavy lifting for you.
Immediate diversification: Each S&P 500 ETF contains roughly 500 stocks from many different sectors, which can substantially lower your risk. Even if a few stocks (or even an entire industry) take a hit, it won't sink your entire portfolio.
A long track record of positive returns: The S&P 500 itself has a decades-long history of earning positive returns. Since 2000, the index has earned total returns of more than 221% -- despite experiencing some of the worst recessions and market crashes in history during that time. While there are never any guarantees when investing, an S&P 500 ETF is one of the most reliable ETFs out there.
Buffett himself also famously put his money where his mouth was by betting $1 million that an S&P 500 fund could outperform a group of actively managed hedge funds. His investment earned a whopping 126% return over 10 years, while the five hedge funds averaged returns of just 36% in that time.
How much could you earn over time?
Time is your most valuable resource when investing, and the S&P 500 ETF is an exceptional long-term investment. Like all investments, it can be susceptible to short-term downturns. But over decades, it's extremely likely to see positive total returns.
Historically, the market itself has earned an average rate of return of around 10% per year -- meaning the highs and lows have averaged out to around 10% annually over several decades. If you were to invest, say, $200 per month in an S&P 500 ETF earning a 10% average annual return, here's approximately how much you could accumulate over time:
NUMBER OF YEARS TOTAL PORTFOLIO VALUE
20 $137,000
25 $236,000
30 $395,000
35 $650,000
40 $1,062,000
Data source: Author's calculations via investor.gov.
The more time you have to let your money grow, the more you can potentially earn. Even if you can't afford to invest hundreds of dollars per month, getting started now can help maximize your earning potential over time.
Despite all its advantages, the S&P 500 ETF has one big downside: it can't beat the market. Because it's designed to follow the market, it's impossible for it to earn above-average returns. If that's a priority for you, investing in individual stocks may be a better option.
The S&P 500 ETF may not be perfect, but it's a powerhouse investment that can still keep your money safer -- all with next to no effort on your part. If you're looking for a low-maintenance investment to grow your savings over time, this ETF could be a great fit for you.
Should you invest $1,000 in Vanguard S&P 500 ETF right now?
Before you buy stock in Vanguard S&P 500 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 S&P 500 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 11, 2023
Katie Brockman has positions in Vanguard S&P 500 ETF. The Motley Fool has positions in and recommends Berkshire Hathaway and Vanguard S&P 500 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.
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An effortless way to build wealth Most of Warren Buffett's portfolio through his holding company Berkshire Hathaway is comprised of individual stocks. While this ETF won't be right for everyone, it can be a good fit for those looking for a low-maintenance investment that can consistently grow your savings over time with less risk. Even if you can't afford to invest hundreds of dollars per month, getting started now can help maximize your earning potential over time.
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An effortless way to build wealth Most of Warren Buffett's portfolio through his holding company Berkshire Hathaway is comprised of individual stocks. His investment earned a whopping 126% return over 10 years, while the five hedge funds averaged returns of just 36% in that time. Before you buy stock in Vanguard S&P 500 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 S&P 500 ETF wasn't one of them.
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He does own two ETFs, though, both of which are S&P 500 ETFs: the Vanguard S&P 500 ETF (NYSEMKT: VOO) and the SPDR S&P 500 ETF Trust (NYSEMKT: SPY). When you invest in a single ETF, then, you're actually investing in hundreds of different stocks at once. Before you buy stock in Vanguard S&P 500 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 S&P 500 ETF wasn't one of them.
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His investment earned a whopping 126% return over 10 years, while the five hedge funds averaged returns of just 36% in that time. How much could you earn over time? Before you buy stock in Vanguard S&P 500 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 S&P 500 ETF wasn't one of them.
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2023-12-16 00:00:00 UTC
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3 Things to Know About Costco's $15 Dividend Payment
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https://www.nasdaq.com/articles/3-things-to-know-about-costcos-%2415-dividend-payment
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Investors suspected that a special dividend was coming soon, but Costco Wholesale (NASDAQ: COST) has now confirmed the timing of that windfall. A $15-per-share cash payout will land in shareholders' accounts on Jan. 12, assuming they own the stock as of Dec. 28.
The retailer's management team prefers these large, one-time payouts over the more predictable dividend growth favored by rivals like Walmart. That's one more way that Costco stands out in the retailing niche.
Here are three other key things to know about Costco's $15 payout.
1. Costco's dividend is easily affordable from cash
The biggest clue that a special dividend was on the way was Costco's cash holdings, which recently landed near $14 billion. The last time the chain held that much cash, back in 2022, it promptly announced a $10-per-share special dividend.
There are some important differences between today's economic environment and the one that characterized 2020. Demand growth isn't nearly as strong today, for one. And interest rates are much higher, meaning Costco has an incentive to hold cash.
Yet the retailer still decided to be aggressive here. The $15-per-share payout amounts to $6.7 billion, its biggest special dividend by far. The company can easily afford it, however, as cash balances grew to over $17 billion in the fiscal Q1 selling period that ended in late November.
2. The dividend is a vote of confidence
Investors should look at the dividend as a vote of confidence about business trends, too. Costco announced in mid-December that comparable-store sales growth was solidly positive in recent months. Comps were up 3% in the core U.S. market and rose 4% globally. Customer traffic was robust at 5% growth while average spending declined by less than 1%, management said in a recent conference call with investors.
Costco has returned to impressive growth in its e-commerce business, too. That division, which sells a high proportion of consumer discretionary products like home furnishings, improved to a 6% increase from a 1% decline in the prior quarter.
Arguably the best news about the business is Costco's renewal rates, which continue to push into record-high territory. A full 92.8% of members in the core U.S. market chose to maintain their subscriptions this past quarter, suggesting that shoppers are very pleased with the value they're getting from their memberships.
3. Costco is not your average dividend stock
Income investors might still prefer to look elsewhere for their next stock investment. Dividend growth from Costco isn't nearly as predictable as it is from Walmart and Target, which have each steadily boosted their dividends for decades. In contrast, Costco's special payouts occur roughly every few years. The warehouse giant also commits to a smaller regular payout that yields just 0.6% today compared to Walmart's 1.5% yield and Target's 3%-plus yield.
Still, Costco has much stronger sales and earnings trends than these peers, partly because most of its profit is derived from membership sales. The chain is well positioned to extend its market share lead over the coming years as well given shoppers' high satisfaction with its merchandise offerings.
That's why looking at the special dividend as a bonus for patiently holding this growth stock makes more sense than viewing Costco as a dependable income investment.
Should you invest $1,000 in Costco Wholesale right now?
Before you buy stock in Costco Wholesale, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Costco Wholesale wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
See the 10 stocks
*Stock Advisor returns as of December 11, 2023
Demitri Kalogeropoulos has positions in Costco Wholesale. The Motley Fool has positions in and recommends Costco Wholesale, Target, and Walmart. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The retailer's management team prefers these large, one-time payouts over the more predictable dividend growth favored by rivals like Walmart. That division, which sells a high proportion of consumer discretionary products like home furnishings, improved to a 6% increase from a 1% decline in the prior quarter. That's why looking at the special dividend as a bonus for patiently holding this growth stock makes more sense than viewing Costco as a dependable income investment.
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The retailer's management team prefers these large, one-time payouts over the more predictable dividend growth favored by rivals like Walmart. The warehouse giant also commits to a smaller regular payout that yields just 0.6% today compared to Walmart's 1.5% yield and Target's 3%-plus yield. Before you buy stock in Costco Wholesale, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Costco Wholesale wasn't one of them.
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Costco's dividend is easily affordable from cash The biggest clue that a special dividend was on the way was Costco's cash holdings, which recently landed near $14 billion. Costco is not your average dividend stock Income investors might still prefer to look elsewhere for their next stock investment. Before you buy stock in Costco Wholesale, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Costco Wholesale wasn't one of them.
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Costco's dividend is easily affordable from cash The biggest clue that a special dividend was on the way was Costco's cash holdings, which recently landed near $14 billion. Costco is not your average dividend stock Income investors might still prefer to look elsewhere for their next stock investment. Dividend growth from Costco isn't nearly as predictable as it is from Walmart and Target, which have each steadily boosted their dividends for decades.
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710987.0
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2023-12-16 00:00:00 UTC
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Nvidia Stock Could Face a Tougher 2024 After These 2 Recent Developments
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https://www.nasdaq.com/articles/nvidia-stock-could-face-a-tougher-2024-after-these-2-recent-developments
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Prepare the crown for Nvidia (NASDAQ: NVDA). The high-flying stock is almost certainly going to be the best performer of the S&P 500 for 2023. It's been a truly remarkable year for Nvidia thanks to surging demand for its graphics process units (GPUs).
Don't automatically assume that this momentum will continue into the new year, though. Nvidia stock could face a tougher 2024 after two recent developments. Here's a look at each and why they could be a problem for Nvidia.
1. New AI chips on the block
Nvidia has commanded a dominant position in the AI chip market so far. There simply hasn't been much competition. However, that's changing.
Last week, Intel (NASDAQ: INTC) announced plans to launch its new Gaudi3 chip in 2024. Gaudi3 is specifically designed to run generative AI applications. It should compete head-to-head against Nvidia's H100, the current market leader in powering AI apps run on server farms.
Intel stated in a press release that it "has seen a rapid expansion of its Gaudi pipeline due to growing and proven performance advances, combined with highly competitive TCO [total cost of ownership] and pricing." The company believes that it will be able to increase its market share in the AI accelerator market next year thanks to the introduction of the Gaudi3 chip.
But that's not all. Intel is also launching its new Core Ultra chip for running AI apps on personal computers. CEO Pat Gelsinger said, "We've been seeing the excitement with generative AI, the star of the show for 2023." He added, "We think the AI PC will be the star of the show for the upcoming year."
2. Gemini's quiet diss
Alphabet's (NASDAQ: GOOG) (NASDAQ: GOOGL) announcement of its new Gemini large language models (LLM) on Dec. 6 deserved all the attention that it received. The most powerful version of the new LLM model, Gemini Ultra, beat the current state-of-the-art AI models on 30 of 32 benchmarks. It even outperformed human experts on the MMLU (massive multitask language understanding) test -- the first AI system to do so.
What didn't receive as much attention, though, was another new product. Google DeepMind CEO and co-founder Demis Hassabis revealed in a blog post the launch of Cloud TPU v5p. The new tensor processing unit (TPU) chip is specifically designed for training AI models. Hassabis stated that it's "the most powerful, efficient, and scalable TPU system to date."
Importantly, Google trained Gemini using its own TPUs. There was no mention of Nvidia's GPUs at all. The introduction of Cloud TPU v5p could signal a key advance in Google's AI chip technology.
Sure, Google remains closely connected with Nvidia. In August, the two companies announced an expansion of their partnership to make Nvidia's generative AI technology available to Google Cloud customers. However, it's clear that Google doesn't want to depend entirely on Nvidia.
The potential impact on Nvidia
Do Intel's launches of the Gaudi 3 and Core Ultra AI chips and Google's introduction of its Cloud TPU v5p mean that Nvidia is in dire and imminent trouble? No. There's no reason to think that Nvidia's GPUs won't remain the gold standard for AI apps for now.
However, investors are banking on Nvidia continuing to deliver tremendous growth over the next few years. Anything that disrupts that growth could weigh on Nvidia's share price.
Nvidia is subject to the laws of supply and demand. The company's soaring profits (and stock price) have been due to fast-growing demand for its GPUs, combined with a limited supply of the AI chips. The recent moves by Intel and Google could diminish the demand for Nvidia's GPUs to some extent.
Again, I don't expect Nvidia's momentum to be completely derailed as a result of these new chips. However, it's reasonable to anticipate that Nvidia could face a tougher slog in 2024 than it has in 2023. Don't look for the stock to come anywhere close to tripling (and more) as it has done this year.
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 18, 2023
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Keith Speights has positions in Alphabet. The Motley Fool has positions in and recommends Alphabet and Nvidia. The Motley Fool recommends Intel and recommends the following options: long January 2023 $57.50 calls on Intel, long January 2025 $45 calls on Intel, and short February 2024 $47 calls on Intel. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Intel stated in a press release that it "has seen a rapid expansion of its Gaudi pipeline due to growing and proven performance advances, combined with highly competitive TCO [total cost of ownership] and pricing." In August, the two companies announced an expansion of their partnership to make Nvidia's generative AI technology available to Google Cloud customers. The company's soaring profits (and stock price) have been due to fast-growing demand for its GPUs, combined with a limited supply of the AI chips.
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The new tensor processing unit (TPU) chip is specifically designed for training AI models. The potential impact on Nvidia Do Intel's launches of the Gaudi 3 and Core Ultra AI chips and Google's introduction of its Cloud TPU v5p mean that Nvidia is in dire and imminent trouble? The Motley Fool recommends Intel and recommends the following options: long January 2023 $57.50 calls on Intel, long January 2025 $45 calls on Intel, and short February 2024 $47 calls on Intel.
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New AI chips on the block Nvidia has commanded a dominant position in the AI chip market so far. The potential impact on Nvidia Do Intel's launches of the Gaudi 3 and Core Ultra AI chips and Google's introduction of its Cloud TPU v5p mean that Nvidia is in dire and imminent trouble? 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.
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New AI chips on the block Nvidia has commanded a dominant position in the AI chip market so far. The company's soaring profits (and stock price) have been due to fast-growing demand for its GPUs, combined with a limited supply of the AI chips. Don't look for the stock to come anywhere close to tripling (and more) as it has done this year.
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d92257fe-dac1-4d4c-b65d-4b4a97ac403f
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710988.0
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2023-12-16 00:00:00 UTC
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2 Top Artificial Intelligence Stocks That Could Make You Richer in 2024
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DCOMP
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https://www.nasdaq.com/articles/2-top-artificial-intelligence-stocks-that-could-make-you-richer-in-2024
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nan
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Like many new technologies, generative artificial intelligence (AI) has become a bit of a hype cycle, and investor excitement is beginning to overshadow fundamentals. But like every hype cycle in the past, this one will mature. And the AI companies with the strongest business models will stand the test of time.
Let's explore some reasons why Nvidia (NASDAQ: NVDA) and Amazon (NASDAQ: AMZN) look to be among the best in an increasingly competitive field, and could make excellent buys in 2024.
1. Nvidia
If you liken the artificial intelligence boom to the California Gold Rush, Nvidia would sell the picks and shovels instead of mining for gold. This strategy gives the company a massive market opportunity and shields it from rising competition in the more consumer/client-focused side of the industry. And despite its market cap of $1.21 trillion, investors aren't too late to bet on the chip makers' long-term potential.
Nvidia's third-quarter revenue more than doubled to $18.12 billion because of surging demand for its data center chips, which are used to train and run the most advanced generative AI applications.
This level of growth is staggering for such a large company. More importantly, it is translating to record-breaking profitability. Net income surged more than 1,200% to $9.24 billion. This can be credited to Nvidia's spectacular pricing power because of low competition, which has led to high margins.
Rivals such as Advanced Micro Devices are racing to bring competition to the AI chip market. But with industry experts expecting the opportunity to be worth $400 billion by 2027, there is plenty of room for more players.
While Nvidia's trailing price-to-earnings (P/E) multiple of 65 looks high compared to the S&P 500 average of 26, this is a backward-looking metric that doesn't account for the company's epic growth rate. With a forward price-to-earnings (P/E) multiple of 25, Nvidia stock is still affordable relative to its projected earnings.
2. Amazon
Like Nvidia, Amazon is another technology giant focusing on the infrastructure side of the AI opportunity, albeit a little bit further up the food chain. The company is incorporating AI-related services into its cloud computing platform AWS, and this could add much-needed growth and diversification to its sprawling technology empire.
In September, Amazon announced the general availability of Bedrock, a platform designed to help clients build and scale customizable AI models. Bedrock will compete with similar services from rivals like Alphabet and Microsoft. But its association with the AWS ecosystem (the leading cloud service provider) could give it an economic moat. Because of its scale, more users are familiar with AWS, and enterprises may prefer to take a one-stop-shop approach to all their cloud computing needs.
Image source: Getty Images.
Amazon has also built its own AI-capable chips, Trainium and Inferentia, which could help lower costs and reduce Amazon's dependence on third-party providers for its hardware.
With a forward P/E of 40, Amazon stock isn't cheap. But part of the premium valuation can be explained by management's ongoing cost-cutting efforts, which are improving the company's bottom line. Third-quarter net income rose 244% year over year to $9.88 billion.
The power of an evolving business
Throughout their histories, Nvidia and Amazon have gone through substantial evolutions in their business models.
Nvidia made its name selling GPUs for personal computers before demand shifted toward cryptocurrency mining and data centers. Amazon started off as an online bookseller before transitioning to a generalized third-party marketplace that gets most of its profits from cloud computing.
Artificial intelligence could end up becoming the next big growth opportunity for both companies, and it isn't too late for investors to bet on their transitions.
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
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Will Ebiefung has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Amazon, and Nvidia. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Nvidia's third-quarter revenue more than doubled to $18.12 billion because of surging demand for its data center chips, which are used to train and run the most advanced generative AI applications. While Nvidia's trailing price-to-earnings (P/E) multiple of 65 looks high compared to the S&P 500 average of 26, this is a backward-looking metric that doesn't account for the company's epic growth rate. The company is incorporating AI-related services into its cloud computing platform AWS, and this could add much-needed growth and diversification to its sprawling technology empire.
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Like many new technologies, generative artificial intelligence (AI) has become a bit of a hype cycle, and investor excitement is beginning to overshadow fundamentals. 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 Motley Fool has positions in and recommends Advanced Micro Devices, Amazon, and Nvidia.
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Amazon Like Nvidia, Amazon is another technology giant focusing on the infrastructure side of the AI opportunity, albeit a little bit further up the food chain. Before you buy stock in Nvidia, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Nvidia wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 11, 2023 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors.
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Amazon started off as an online bookseller before transitioning to a generalized third-party marketplace that gets most of its profits from cloud computing. Before you buy stock in Nvidia, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Nvidia wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 11, 2023 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors.
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710989.0
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2023-12-16 00:00:00 UTC
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A New Bull Market Is Here for the Dow Jones. Here Are the 3 Best Dow Stocks to Buy for 2024.
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DCOMP
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https://www.nasdaq.com/articles/a-new-bull-market-is-here-for-the-dow-jones.-here-are-the-3-best-dow-stocks-to-buy-for
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nan
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Different investors mark the beginning of a new bull market in slightly different ways. In my view, a new bull market begins when two criteria are met. First, an index must have rebounded at least 20% from recent bear market lows. Second, it must set a new all-time high.
The S&P 500 has met the first threshold but hasn't quite achieved the second one. There's better news, though, for the widely followed Dow Jones Industrial Average. A new bull market is here for the Dow Jones. Here are the three best Dow stocks to buy for 2024, listed in alphabetical order.
1. American Express
American Express (NYSE: AXP) was added to the Dow Jones in 1982, making it one of the index's five longest members. The company is a giant in the financial services industry, providing global credit-card payment-processing services.
The Dow's performance has been helped quite a bit by American Express in 2023. Amex stock has soared more than 20% year to date, with the company's third-quarter update providing a nice catalyst.
Amex reported its sixth consecutive quarter of record revenue in Q3. Its earnings per share jumped 34% year over year to a record high, as well. With the U.S. economy seemingly in a good position to continue chugging along, American Express should be able to keep its momentum going in 2024.
Even after delivering solid gains this year, American Express shares trade at a forward price-to-earnings ratio of only around 14.5. That's a much more attractive valuation than fellow Dow Jones member and top credit-card rival Visa. I think the stock should have plenty of room to run in the new year.
2. Microsoft
It's possible that the Dow Jones could enjoy a strong bull market without Microsoft (NASDAQ: MSFT) performing well. However, I think it's unlikely. Microsoft makes up more than 6.5% of the index, ranking behind only UnitedHealth Group and Goldman Sachs.
Microsoft has been sizzling hot in 2023, with its shares skyrocketing more than 50%. The company has been a big beneficiary of the explosion of interest in generative AI, thanks to its partnership with and large stake in ChatGPT creator OpenAI.
Some might worry that the party could soon be over for Microsoft. After all, its stock now trades at a forward earnings multiple of 33, which reflects a premium valuation. However, the generative AI boom should provide a major tailwind for the company for years to come.
I also like that Microsoft is well-positioned in several other hot technology areas. The company is now even more of a force in the gaming market with its acquisition of Activision Blizzard. It's a top cloud services provider and cybersecurity leader. It's also one of a handful of companies at the forefront of quantum-computing research.
3. Verizon Communications
Unlike American Express and Microsoft, Verizon Communications (NYSE: VZ) has held the Dow Jones back in 2023. Shares of the telecommunications company are down close to 5% this year.
There's more to the story, though. Verizon stock had fallen more than 20% year to date, as of early October. But it began a big comeback later in the month, thanks to strong Q3 results.
Verizon beat Wall Street earnings estimates. Its year-to-date free cash flow improved by $2.2 billion year over year, enough to prompt the company to raise its full-year free-cash-flow guidance.
Things are looking up for Verizon. Value investors could find the stock especially attractive since its shares trade at only 8x expected earnings.
Income investors have a lot to like about Verizon, too, with a dividend yield that currently stands at 7.1%. The company has increased its dividend for 17 consecutive years. With the company generating more free cash flow, I expect this streak of dividend hikes will continue in 2024.
Should you invest $1,000 in Verizon Communications right now?
Before you buy stock in Verizon Communications, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Verizon Communications wasn't one of them. 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
American Express is an advertising partner of The Ascent, a Motley Fool company. Keith Speights has positions in Microsoft. The Motley Fool has positions in and recommends Goldman Sachs Group, Microsoft, and Visa. The Motley Fool recommends UnitedHealth Group 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.
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Amex stock has soared more than 20% year to date, with the company's third-quarter update providing a nice catalyst. Even after delivering solid gains this year, American Express shares trade at a forward price-to-earnings ratio of only around 14.5. The company has been a big beneficiary of the explosion of interest in generative AI, thanks to its partnership with and large stake in ChatGPT creator OpenAI.
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Verizon Communications Unlike American Express and Microsoft, Verizon Communications (NYSE: VZ) has held the Dow Jones back in 2023. Before you buy stock in Verizon Communications, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Verizon Communications wasn't one of them. The Motley Fool has positions in and recommends Goldman Sachs Group, Microsoft, and Visa.
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Verizon Communications Unlike American Express and Microsoft, Verizon Communications (NYSE: VZ) has held the Dow Jones back in 2023. Before you buy stock in Verizon Communications, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Verizon Communications wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 18, 2023 American Express is an advertising partner of The Ascent, a Motley Fool company.
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Its earnings per share jumped 34% year over year to a record high, as well. Microsoft It's possible that the Dow Jones could enjoy a strong bull market without Microsoft (NASDAQ: MSFT) performing well. Before you buy stock in Verizon Communications, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Verizon Communications wasn't one of them.
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710990.0
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2023-12-16 00:00:00 UTC
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2 "Magnificent Seven" Stocks You'll Want to Buy in 2024 Like They're Going Out of Style
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DCOMP
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https://www.nasdaq.com/articles/2-magnificent-seven-stocks-youll-want-to-buy-in-2024-like-theyre-going-out-of-style
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The benchmark S&P 500 index ripped higher in 2023 with a gain of 23.5% so far. But most of that return was driven by the "Magnificent Seven" stocks, which managed to obliterate the return of the broader market.
The Magnificent Seven stocks now have a combined value of $12 trillion! As a result, they have a dominant weighting in the S&P 500, accounting for 28% of its total value. That means they have a significant impact on the direction of the entire market. When you look at the S&P 500 Equal Weight Index -- which levels the playing field by attributing an equal value to all 500 stocks in the S&P 500 regardless of their size -- it's up just 10% this year.
With that in mind, investors looking to beat the market in 2024 will probably need some exposure to the Magnificent Seven stocks. Below, I'm going to highlight two Magnificent Seven stocks that could have the most potential in 2024.
Image source: Tesla.
1. Tesla is forcing its competitors to retreat
Tesla (NASDAQ: TSLA) is the undisputed leader in global electric vehicle sales. The company is on track to produce 1.8 million cars this year, and CEO Elon Musk believes that number could reach 20 million by 2030.
However, Tesla is having an uncharacteristically slow year in terms of financial growth, because it has engaged in a price war with start-ups and legacy automakers breaking into the EV space. Tesla has economies of scale, which means it makes a profit on every vehicle it sells, so it had enough room to slash prices by 20% (on average) since August 2022 to pressure the competition.
It appears to be working. Ford -- which loses roughly $36,000 on every EV that rolls off its production line -- recently decided to postpone $12 billion worth of investments into its EV business. Similarly, General Motors scaled back its EV plans and abandoned its target to produce 400,000 units by mid-2024.
Those automakers are realizing it will require a significant amount of time and resources to reach Tesla's level to be able to compete on price. Meanwhile, they are under pressure from shareholders to avoid diluting the profits generated by sales of their gas-powered cars.
But Tesla's price cuts are having consequences on its own business. The company is on track to generate $97 billion in revenue this year, representing a 19% year-over-year increase -- that's less than half the growth rate it delivered in 2022. Plus, its earnings per share will have shrunk once 2023 is officially in the books, according to Wall Street's consensus forecast.
While neither of those developments is positive, they might be a necessary short-term sacrifice to secure more market share for the long term, which will ultimately benefit Tesla's investors. Plus, inflation and interest rates are gradually declining, which will reduce financial pressures on consumers in the new year, and that could open the door for Tesla to reverse some of its recent price cuts.
Tesla stock isn't cheap; it trades at a price-to-earnings (P/E) ratio of 80, which is almost triple the 29.6 P/E of the Nasdaq-100 technology index. But a combination of favorable economic conditions and retreating competitors should set up a great year for the company. In fact, Wall Street predicts Tesla's earnings will return to expansion territory in 2024, which makes its stock look a little cheaper on a forward basis.
2. Meta Platforms could deliver the most profitable year in its history
Meta Platforms (NASDAQ: META) will enter 2024 on the back of its best year ever. Investors criticized its CEO, Mark Zuckerberg, for a lackluster operating performance in 2022, prompting him to launch a radical "year of efficiency" in 2023. The concept featured three key changes:
Cost cuts: This involved over 21,000 job cuts, a flatter organizational structure, and a reduction in spending across the board.
Shrinking the metaverse: Not literally -- but Zuckerberg committed to spending less money on virtual reality initiatives, which were burning cash and generating almost no revenue. In fact, Meta's Reality Labs segment lost a whopping $13.7 billion in 2022.
Artificial intelligence (AI): Meta is focusing its time and resources on improving the user experience on Facebook and Instagram with AI.
The AI part of the equation is the most exciting long-term opportunity. Meta's Reels feature -- which is designed to compete with ByteDance's TikTok -- has driven a 40% increase in the amount of time users spend on Instagram since launching in 2020. But AI-powered recommendations are a huge part of that; Meta's algorithm learns what users enjoy watching, and it feeds them more of that content to keep them engaged.
Meta has now rolled out AI-based recommendations to nearly all of its content formats. This year alone, Zuckerberg says they have driven a 6% increase in time spent on Instagram, and a 7% increase for Facebook. Ultimately, the longer users spend on either of those platforms, the more opportunities Meta has to feed them ads to generate revenue.
It's no coincidence that in the third quarter of 2023 (ended Sept. 30), Meta's revenue hit an all-time high of $34.1 billion. Plus, thanks to the company's cost cuts, its net income (profit) absolutely soared by 163% to $11.5 billion, another record.
Meta is now on track to deliver $133.5 billion in revenue and $14.35 in earnings per share (EPS) for the 2023 full year. That places its stock at a P/E ratio of just 23.3, making it the cheapest of the Magnificent Seven stocks.
But it gets better. Wall Street predicts Meta's earnings will grow to $17.39 EPS in 2024, placing its stock at a forward P/E ratio of 19.20. If the estimate holds up, Meta stock will have to surge 50% next year just to trade in line with the current P/E of the Nasdaq-100 index. On a valuation basis alone, this opportunity might be the key to many investors outperforming the broader stock market next year.
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 Tesla made the list -- but there are 9 other stocks you may be overlooking.
See the 10 stocks
*Stock Advisor returns as of December 18, 2023
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. 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. Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla. The Motley Fool recommends General Motors and recommends the following options: long January 2025 $25 calls on General Motors. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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However, Tesla is having an uncharacteristically slow year in terms of financial growth, because it has engaged in a price war with start-ups and legacy automakers breaking into the EV space. Tesla has economies of scale, which means it makes a profit on every vehicle it sells, so it had enough room to slash prices by 20% (on average) since August 2022 to pressure the competition. Plus, inflation and interest rates are gradually declining, which will reduce financial pressures on consumers in the new year, and that could open the door for Tesla to reverse some of its recent price cuts.
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In fact, Wall Street predicts Tesla's earnings will return to expansion territory in 2024, which makes its stock look a little cheaper on a forward basis. Wall Street predicts Meta's earnings will grow to $17.39 EPS in 2024, placing its stock at a forward P/E ratio of 19.20. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors.
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Meta Platforms could deliver the most profitable year in its history Meta Platforms (NASDAQ: META) will enter 2024 on the back of its best year ever. See the 10 stocks *Stock Advisor returns as of December 18, 2023 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors.
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Tesla has economies of scale, which means it makes a profit on every vehicle it sells, so it had enough room to slash prices by 20% (on average) since August 2022 to pressure the competition. Meta is now on track to deliver $133.5 billion in revenue and $14.35 in earnings per share (EPS) for the 2023 full year. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla.
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1869b343-76f0-44db-aad7-a27fe488e7a7
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710991.0
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2023-12-16 00:00:00 UTC
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Boeing (BA) Wins Deal to Deliver 40 737 MAX Jets to Avolon
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DCOMP
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https://www.nasdaq.com/articles/boeing-ba-wins-deal-to-deliver-40-737-max-jets-to-avolon
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The Boeing Company BA recently received a commitment from aviation finance company Avolon for delivering 40 of its 737-8 jets. This order remains subject to approval from Avolon’s primary shareholders.
The order, once delivered, will boost Boeing’s revenues for its commercial airplane business segment, which recorded a solid 25% year-over-year revenue improvement in the third quarter of 2023.
737 MAX, A Solid Revenue Earner
The 737 MAX caters to the single-aisle market with enhanced efficiency, improved environmental performance and increased passenger comfort. In particular, Boeing’s 737-8 MAX reduces fuel use and emissions by 20% while producing a 50% smaller noise footprint than the airplanes it replaces. The jets also offer increased comfort and relaxation for passengers, with modern technologies, greater space and larger pivoting overhead storage bins.
Such remarkable features must have bolstered demand for this jet family over the past few years. The latest order for 40 737-8 jets is a bright example of that.
Notably, Dublin-based Avolon has been a much-valued customer for Boeing’s 737 program. It ordered 40 737-8 jets in June and, with the latest agreement, has fulfilled its commitment to purchase 80 new airplanes this year.
Prospects in Commercial Aviation Market
With the woes of the pandemic behind us and economies across the globe witnessing growth once again, the demand for air travel can be expected to continue to rise in the near future. To this end, per a report by the Mordor Intelligence firm, the Commercial Aviation market size is expected to go from $218.97 billion in 2023 to $271.96 billion by 2028, at a CAGR of 4.43%.
Such solid market growth prospects should aid Boeing, one of the biggest jet manufacturers in the world. Impressively, during third-quarter 2023, Boeing secured 398 net orders for commercial jets, including 150 737 MAX 10 airplanes for Ryanair, 50 787 airplanes for United Airlines and 39 787 airplanes for Saudi Arabian Airlines. The company delivered 105 airplanes and the backlog amounted to $392 billion. Such developments, along with the company’s latest agreement with Avolon, should increase Boeing’s profitability in the coming days.
Opportunities for Peers
Apart from Boeing, aircraft manufacturers in the commercial aviation industry that may gain from the flourishing market prospects are as follows:
Embraer ERJ: The company has a huge portfolio of commercial jets. During third-quarter 2023, Embraer’s E195-E2 jet, the largest in the E-Jet family, received Type Certification from the Civil Aviation Administration of China. On Nov 29, 2023, Embraer received an order for 25 E195-E2 passenger jets from Porter Airlines.
ERJ boasts a long-term earnings growth rate of 17%. The Zacks Consensus Estimate for 2023 sales implies an improvement of 21.3% from the 2022 reported figure.
Airbus EADSY: In the first nine months of 2023, Airbus delivered 488 commercial aircraft comprising 41 A220, 391 A320 Family, 20 A330 and 36 A350. In December 2023, Airbus received multiple orders - four A330-900 from Azul Linhas Aereas, 150 A321s and 70 A350 from Turkish Airlines, 100 A321neo from Avolon and A350F from Cathay Group.
EADSY boasts a long-term earnings growth rate of 12.4%. The Zacks Consensus Estimate for 2023 sales implies an improvement of 12.9% from the 2022 reported figure.
Textron TXT: Its Textron Aviation business segment’s principal market includes general aviation aircraft, business jets and commercial transportation. In October 2023, the company announced its agreement with Hahn Air, which is set to become the European launch customer for TXT’s Cessna Citation CJ3 Gen2. The aircraft is expected to be delivered in 2026.
TXT boasts a long-term earnings growth rate of 11.7%. The Zacks Consensus Estimate for 2023 sales implies an improvement of 6.4% from the 2022 reported figure.
Price Performance
In the past year, shares of BA have rallied 38.2% against the industry’s 7.7% decline.
Image Source: Zacks Investment Research
Zacks Rank
Boeing currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The Boeing Company (BA) : Free Stock Analysis Report
Embraer-Empresa Brasileira de Aeronautica (ERJ) : Free Stock Analysis Report
Textron Inc. (TXT) : Free Stock Analysis Report
Airbus Group (EADSY) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The jets also offer increased comfort and relaxation for passengers, with modern technologies, greater space and larger pivoting overhead storage bins. Prospects in Commercial Aviation Market With the woes of the pandemic behind us and economies across the globe witnessing growth once again, the demand for air travel can be expected to continue to rise in the near future. In December 2023, Airbus received multiple orders - four A330-900 from Azul Linhas Aereas, 150 A321s and 70 A350 from Turkish Airlines, 100 A321neo from Avolon and A350F from Cathay Group.
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Impressively, during third-quarter 2023, Boeing secured 398 net orders for commercial jets, including 150 737 MAX 10 airplanes for Ryanair, 50 787 airplanes for United Airlines and 39 787 airplanes for Saudi Arabian Airlines. Textron TXT: Its Textron Aviation business segment’s principal market includes general aviation aircraft, business jets and commercial transportation. Click to get this free report The Boeing Company (BA) : Free Stock Analysis Report Embraer-Empresa Brasileira de Aeronautica (ERJ) : Free Stock Analysis Report Textron Inc. (TXT) : Free Stock Analysis Report Airbus Group (EADSY) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The Boeing Company BA recently received a commitment from aviation finance company Avolon for delivering 40 of its 737-8 jets. Impressively, during third-quarter 2023, Boeing secured 398 net orders for commercial jets, including 150 737 MAX 10 airplanes for Ryanair, 50 787 airplanes for United Airlines and 39 787 airplanes for Saudi Arabian Airlines. Click to get this free report The Boeing Company (BA) : Free Stock Analysis Report Embraer-Empresa Brasileira de Aeronautica (ERJ) : Free Stock Analysis Report Textron Inc. (TXT) : Free Stock Analysis Report Airbus Group (EADSY) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The Boeing Company BA recently received a commitment from aviation finance company Avolon for delivering 40 of its 737-8 jets. Such developments, along with the company’s latest agreement with Avolon, should increase Boeing’s profitability in the coming days. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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60a083f1-9cb1-4a56-b53d-a2fbf89ce4d8
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710992.0
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2023-12-16 00:00:00 UTC
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This Hot Chip Stock Could Be a Top Artificial Intelligence (AI) Pick for 2024 and Beyond
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DCOMP
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https://www.nasdaq.com/articles/this-hot-chip-stock-could-be-a-top-artificial-intelligence-ai-pick-for-2024-and-beyond
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Intel's (NASDAQ: INTC) fortunes on the stock market have turned around tremendously in 2023 as shares of the chipmaker have gained 74% this year, and the good part is that Chipzilla is likely to sustain its impressive momentum in the new year as well thanks to new artificial intelligence (AI) chips that could help it capture lucrative opportunities in two fast-growing markets.
On Dec. 14, Intel unveiled new AI chips targeting the personal computer (PC) and data center markets. Investors liked what they saw as Intel stock jumped following the event. Let's see why the market gave Intel's AI chips the thumbs-up and check how they can help the stock sustain its rally in 2024 and beyond.
Intel sees a huge opportunity in AI-powered PCs
The personal computer (PC) market is expected to witness a big turnaround in 2024. Market research firm Canalys anticipates an 8% jump in PC sales next year, followed by double-digit growth in 2025, 2026, and 2027. For comparison, PC shipments are expected to drop 12.4% in 2023.
Canalys points out that the adoption of PCs capable of running AI applications will be a driving force behind the market's growth. The firm estimates that 19% of PCs shipped in 2024 will be AI-capable, which explains why Intel is going aggressively after this market.
Intel unveiled Core Ultra central processing units (CPUs) at its "AI Everywhere" event, stating that they will "power more than 230 of the world's first AI PCs from partners including Acer, ASUS, Dell, Dynabook, Gigabyte, [Alphabet's) Google Chromebook, HP, Lenovo, LG, Microsoft Surface, MSI, and Samsung."
Intel also adds that it is partnering with over a hundred independent software vendors to optimize more than 300 AI-accelerated features for its Core Ultra processors. More importantly, the company points out that consumer PCs powered by its AI-capable CPUs are already on sale, and it will soon launch commercial devices as well.
Intel believes that 80% of PCs sold in 2028 will be AI-capable. So, Intel is doing the right thing by moving into this market right now as sales of AI PCs are expected to gain momentum starting next year. It is worth noting that Intel's revenue from the client computing group was down 3% year over year in the third quarter of 2023 to $7.9 billion. That was a nice improvement over the 12% year-over-year decline in the segment's revenue in the second quarter, indicating that its largest business is now stabilizing.
The advent of AI PCs should fuel the performance of this business and drive Intel toward growth from next year as the client computing group accounts for 56% of its top line. At the same time, investors should note that Intel has set its sights on another massive opportunity within the AI niche, which could supercharge the growth of its second-largest business.
New server processors could unlock a new growth opportunity
Along with AI-powered PC processors, Intel also launched its fifth-generation Xeon server processors, codenamed Emerald Rapids. The company points out that these processors have been designed for AI and can "address demanding end-to-end AI workloads before customers need to add discrete accelerators." As a result, Intel points out that its latest server processors can help reduce the operating costs of data centers significantly, as discrete graphics cards that are used for accelerating AI workloads are quite expensive.
Intel claims that its latest-generation processors deliver an average performance gain of 21% and have a 36% higher average performance per watt over the previous-generation offerings, making them more powerful and power efficient at the same time. What's more, Intel says that the fifth-gen Xeon processors can deliver "up to 42% higher inference performance and less than 100-millisecond latency on large language models (LLMs) under 20 billion parameters."
It won't be surprising to see Intel's new server chips gaining traction, as the company sees strong demand for small to medium-sized LLMs. OpenAI's ChatGPT, for instance, has 20 billion parameters and falls within the category of small to medium LLMs, while large models typically have more than 100 billion parameters.
More specifically, Intel estimates that 60% of the opportunity within AI accelerator chips lies in the general computer space where CPUs will be deployed for training small to medium models. As such, Intel's new server processors can boost the revenue of its data center and AI business segment. This business generated $3.8 billion in revenue last quarter and was its second-largest segment with 27% of the top line.
Investors can expect the stock to deliver healthy gains
The above discussion suggests that Intel's two biggest businesses could regain their mojo in 2024. This explains why analysts are anticipating a nice acceleration in the company's growth from next year.
INTC EPS Estimates for Current Fiscal Year data by YCharts.
As the table above tells us, Intel's earnings are expected to increase to $2.70 per share in 2025. Multiplying that with the Nasdaq-100 index's average forward earnings multiple of 27 points toward a stock price of $73, which would be a 59% jump from current levels. However, Intel could deliver even better gains if the market rewards it with a higher earnings multiple thanks to its AI-powered growth, which is expected to significantly accelerate the company's bottom line over the next three years.
Should you invest $1,000 in Intel right now?
Before you buy stock in Intel, 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 Intel wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
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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. Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, HP, and Microsoft. The Motley Fool recommends Intel and recommends the following options: long January 2023 $57.50 calls on Intel, long January 2025 $45 calls on Intel, and short February 2024 $47 calls on Intel. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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As a result, Intel points out that its latest server processors can help reduce the operating costs of data centers significantly, as discrete graphics cards that are used for accelerating AI workloads are quite expensive. More specifically, Intel estimates that 60% of the opportunity within AI accelerator chips lies in the general computer space where CPUs will be deployed for training small to medium models. However, Intel could deliver even better gains if the market rewards it with a higher earnings multiple thanks to its AI-powered growth, which is expected to significantly accelerate the company's bottom line over the next three years.
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On Dec. 14, Intel unveiled new AI chips targeting the personal computer (PC) and data center markets. Intel sees a huge opportunity in AI-powered PCs The personal computer (PC) market is expected to witness a big turnaround in 2024. The Motley Fool recommends Intel and recommends the following options: long January 2023 $57.50 calls on Intel, long January 2025 $45 calls on Intel, and short February 2024 $47 calls on Intel.
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Intel's (NASDAQ: INTC) fortunes on the stock market have turned around tremendously in 2023 as shares of the chipmaker have gained 74% this year, and the good part is that Chipzilla is likely to sustain its impressive momentum in the new year as well thanks to new artificial intelligence (AI) chips that could help it capture lucrative opportunities in two fast-growing markets. Before you buy stock in Intel, 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 Intel wasn't one of them. The Motley Fool recommends Intel and recommends the following options: long January 2023 $57.50 calls on Intel, long January 2025 $45 calls on Intel, and short February 2024 $47 calls on Intel.
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On Dec. 14, Intel unveiled new AI chips targeting the personal computer (PC) and data center markets. However, Intel could deliver even better gains if the market rewards it with a higher earnings multiple thanks to its AI-powered growth, which is expected to significantly accelerate the company's bottom line over the next three years. The Motley Fool has positions in and recommends Alphabet, HP, and Microsoft.
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710993.0
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2023-12-16 00:00:00 UTC
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Where Will IonQ Stock Be in 1 Year?
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DCOMP
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https://www.nasdaq.com/articles/where-will-ionq-stock-be-in-1-year-0
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nan
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IonQ (NYSE: IONQ) has set the stock market on fire in 2023 with eye-popping gains of 333% thanks to the hype around quantum computing. But it looks like investors are now having second thoughts about this company following its terrific surge.
Shares of IonQ are down 25% since hitting a 52-week high in September this year. While that may seem a tad surprising at first given how fast IonQ is growing, a closer look at the company's financials will tell us why investors have been cashing in some profits recently.
IonQ is very small considering the end-market opportunity it is sitting on
IonQ's red-hot rally this year is mostly a result of the hype around quantum computing, a technology that's currently in a nascent phase. IDC estimates that the global quantum computing market was worth about $1.1 billion last year. It is expected to grow to $7.6 billion in 2027, clocking an annual growth rate of 48%.
But at the same time, IDC points out that its latest forecast is lower than the previous one published in 2021 when it was forecasting the quantum computing market to generate $8.6 billion in revenue in 2027. The market research firm has lowered its forecast because of "slower than expected advances in quantum hardware development, which have delayed potential return on investment."
IDC adds that the emergence of generative AI has been another headwind for quantum computing adoption. The firm points out that investments in quantum computing will increase at a pace of just 11.5% through 2027. IDC estimates that the technology will gain broader adoption only when there is a breakthrough in quantum hardware development. Until that happens, the quantum computing market's growth will be mostly dependent on the adoption of this technology as a service infrastructure and an increase in workloads that are suitable for this technology.
On the other hand, even though IonQ is growing at a rapid pace, its business is still very small when compared to the multibillion-dollar opportunity in the quantum computing market. In the third quarter of 2023, the company reported just $6.1 million in revenue. For the full year, IonQ expects to deliver $21.6 million in revenue, which would be a huge jump of 95% over the prior year.
While that would be really impressive, it is worth noting that IonQ is just a fraction of the quantum computing market, which was worth $1.1 billion last year as per IDC. Also, analysts are expecting IonQ's growth to decelerate in 2024 before it picks up again in 2025.
IONQ Revenue Estimates for Current Fiscal Year data by YCharts
One possible reason is that IonQ itself expects the quantum computing market to enter the revenue-generating phase around 2025 and gather momentum from then on. But the stock's massive surge this year and its rich valuation suggest that the market has already priced in years of growth, which is why IonQ may have to deliver much stronger growth to keep investors happy.
The valuation is a concern right now, and it could weigh on the stock's returns
IonQ stock is trading at a whopping 152 times sales right now. By comparison, the S&P 500 index has an average price-to-sales ratio of 2.6. The following chart indicates that IonQ's stock price ran up too fast considering the revenue growth that it has been delivering.
IONQ Revenue (TTM) data by YCharts
Not surprisingly, analysts are adopting a cautious stance on how much upside IonQ stock could deliver in the coming year. According to an estimate of 12 analysts covering the stock, IonQ has a median price target of $16. This points toward a 7% jump from current levels. Also, IonQ has a forward price-to-sales multiple of 78 and it is expected to generate almost $39 million in revenue in 2024. This points toward a market cap of $3 billion after a year, which is about the same as current levels.
So, IonQ stock seems priced to perfection right now. It is richly valued and isn't expected to deliver much upside over the next year. Also, the stock's expensive valuation could drop steeply if its results don't match Wall Street's expectations. As such, investors looking to buy a growth stock may want to look elsewhere as IonQ will have to switch into a higher gear in order to regain its mojo and deliver more investor upside.
Should you invest $1,000 in IonQ right now?
Before you buy stock in IonQ, 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 IonQ 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 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.
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While that may seem a tad surprising at first given how fast IonQ is growing, a closer look at the company's financials will tell us why investors have been cashing in some profits recently. The market research firm has lowered its forecast because of "slower than expected advances in quantum hardware development, which have delayed potential return on investment." On the other hand, even though IonQ is growing at a rapid pace, its business is still very small when compared to the multibillion-dollar opportunity in the quantum computing market.
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But at the same time, IDC points out that its latest forecast is lower than the previous one published in 2021 when it was forecasting the quantum computing market to generate $8.6 billion in revenue in 2027. But the stock's massive surge this year and its rich valuation suggest that the market has already priced in years of growth, which is why IonQ may have to deliver much stronger growth to keep investors happy. Before you buy stock in IonQ, 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 IonQ wasn't one of them.
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IONQ Revenue Estimates for Current Fiscal Year data by YCharts One possible reason is that IonQ itself expects the quantum computing market to enter the revenue-generating phase around 2025 and gather momentum from then on. But the stock's massive surge this year and its rich valuation suggest that the market has already priced in years of growth, which is why IonQ may have to deliver much stronger growth to keep investors happy. Before you buy stock in IonQ, 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 IonQ wasn't one of them.
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The firm points out that investments in quantum computing will increase at a pace of just 11.5% through 2027. But the stock's massive surge this year and its rich valuation suggest that the market has already priced in years of growth, which is why IonQ may have to deliver much stronger growth to keep investors happy. Before you buy stock in IonQ, 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 IonQ wasn't one of them.
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dfddb042-be80-49a6-99cd-868230371a85
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710994.0
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2023-12-16 00:00:00 UTC
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3 Reasons Amazon Stock Could Extend Its Rally in 2024
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https://www.nasdaq.com/articles/3-reasons-amazon-stock-could-extend-its-rally-in-2024
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nan
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If you're an Amazon (NASDAQ: AMZN) investor, you're likely feeling cheery this holiday season. Share prices of the tech giant have soared 76% through mid-December, easily beating the 23% rally in the S&P 500 this year.
It might seem outlandish to think Amazon stock will have another strong year after outperforming at that fantastic level in 2023, but don't discount that real possibility. There are at least three good reasons to believe you haven't missed the market-beating gains from Amazon stock just yet.
1. Services matter for Amazon's margins
Many tech companies, including Apple, are shifting away from a focus on selling products and moving toward marketing services. Services have higher profit margins, after all. Compare Microsoft's 42%-plus operating margin to Apple's 30% figure for some illustration of that difference. And services provide more stable income because they tend to be subscription-based.
Amazon is moving quickly in Microsoft's direction. Its services unit -- anchored by Amazon Web Services (AWS) and things like its merchant advertising business and Prime subscription sales -- now accounts for nearly 60% of total revenue. It is expanding at a much faster pace than e-commerce sales, too, suggesting that it will be an even bigger part of the company over time. As a result, Wall Street is starting to look at -- and value -- the stock as less of an e-commerce retailer and more of a tech services giant.
2. Amazon has a new focus on finances
Since its inception, Amazon has famously prioritized growth over short-term net earnings, to the consternation of many investors. That broader approach hasn't changed, but management is now more focused on finding balance. There's no reason why this massive business can't deliver strong earnings even while investing aggressively in areas like artificial intelligence (AI) and its global delivery network.
You can see proof of that shift in areas like free cash flow, which was $21 billion over the past full year compared to a $20 billion outflow in the prior-year period. Operating income was $24 billion in the first nine months of 2023, up sharply from about $10 billion a year earlier.
Expectations for further gains in these metrics are key reasons why Amazon stock has done so well lately. Management predicted in late October that Q4 operating earnings will land between $7 billion and $11 billion, up from $3 billion last year.
3. Amazon is seeing valuation wins
The best news is that there's room for Amazon's stock valuation to continue rising in 2024. Shares are priced at less than 3 times annual sales even factoring in the 2023 rally. That compares well against other tech giants like Apple (8 times sales) and Microsoft (12 times sales).
Sure, Amazon isn't nearly as profitable as these companies. Its 5% operating margin is closer to what you might see from a retailer like Walmart than what tech investors are accustomed to. Yet that rate is improving right now and has a good chance of expanding toward double-digit percentages in 2024. Amazon's surging cash flow trend is a clear signal that earnings will be rising in the next few years. Investors are likely to see solid returns if they own the stock and simply go along for that ride.
Where to invest $1,000 right now
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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Demitri Kalogeropoulos has positions in Amazon and Apple. The Motley Fool has positions in and recommends Amazon, Apple, Microsoft, and Walmart. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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It might seem outlandish to think Amazon stock will have another strong year after outperforming at that fantastic level in 2023, but don't discount that real possibility. There's no reason why this massive business can't deliver strong earnings even while investing aggressively in areas like artificial intelligence (AI) and its global delivery network. Amazon's surging cash flow trend is a clear signal that earnings will be rising in the next few years.
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Compare Microsoft's 42%-plus operating margin to Apple's 30% figure for some illustration of that difference. That compares well against other tech giants like Apple (8 times sales) and Microsoft (12 times sales). The Motley Fool has positions in and recommends Amazon, Apple, Microsoft, and Walmart.
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Services matter for Amazon's margins Many tech companies, including Apple, are shifting away from a focus on selling products and moving toward marketing services. Amazon is seeing valuation wins The best news is that there's room for Amazon's stock valuation to continue rising in 2024. See the 10 stocks *Stock Advisor returns as of December 11, 2023 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors.
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There are at least three good reasons to believe you haven't missed the market-beating gains from Amazon stock just yet. Services matter for Amazon's margins Many tech companies, including Apple, are shifting away from a focus on selling products and moving toward marketing services. The Motley Fool has positions in and recommends Amazon, Apple, Microsoft, and Walmart.
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88c3e161-7c77-487e-b65d-dd1bb09bc3f6
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710995.0
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2023-12-16 00:00:00 UTC
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3 Unstoppable Dividend-Growth Stocks You Can Buy Now and Hold Forever
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DCOMP
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https://www.nasdaq.com/articles/3-unstoppable-dividend-growth-stocks-you-can-buy-now-and-hold-forever
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Investors who want to set themselves up with a huge stream of passive income from dividend-paying stocks have two basic options. You could aim for stocks that offer high yields up front or look for smaller yields from companies that can grow their payouts.
The first option rarely works out over time, because dividend-paying stocks rarely offer high yields until investors are worried about the underlying business and its ability to sustain its commitment.
Image source: Getty Images.
The stocks on this list don't offer the highest yields, but they are far above average. Plus, they have long histories of consecutive annual dividend increases.
With strong advantages to keep the competition from eating into their profit margins, these stocks could keep paying and raising their dividend payouts for as long as you care to hold them.
Altria Group
Cigarette sales have been declining for decades, but the value of Altria Group's (NYSE: MO) Marlboro brand in the U.S. keeps rising. Strict regulations that make it impossible to build new brands make it easy for tobacco giants to raise prices that offset declining volumes.
By Altria's estimates, cigarette volumes in the U.S. declined by 8% during the first nine months of 2023. With price increases and rising sales of non-combustible products, though, total revenue fell just 1.4% year over year. By lowering its outstanding share count through buybacks, adjusted earnings per share were able to rise by 3.3% over the same time frame.
Altria isn't relying entirely on the Marlboro brand's pricing power for growth. Earlier this year, the company grew its smoke-free portfolio with the acquisition of NJOY, which markets the only pod-based e-vapor product with marketing authorization from the U.S. Food and Drug Administration.
At recent prices, Altria offers a 9.4% dividend yield that is rising steadily. This summer, the company raised its dividend payout for the 58th time in 54 years. The 4.3% raise wasn't enormous, but it's more than enough to outpace inflation over the long run.
Realty Income
Realty Income (NYSE: O) is a leading real estate investment trust (REIT) that owns over 13,000 buildings in the U.S. and abroad. At recent prices, it offers a 5.4% yield, and investors can be fairly confident about their payouts rising in the quarters to come. In December it raised its monthly payout for the 123rd time since its initial public offering in 1994.
With a long track record of success, Realty Income boasts an A3 credit rating from Moody's that keeps borrowing costs much lower than its smaller peers. This REIT leases properties to hundreds of retail clients but leans toward dollar stores, pharmacies, and other businesses that resist e-commerce competition. Its largest tenants also tend to perform well during economic downturns.
With an already enormous portfolio and relatively low borrowing costs, Realty Income could consolidate a large addressable market. In the U.S., where opportunities to consolidate are lowest, there are a dozen publicly traded net lease REITs that account for less than 5% of the addressable market. Conditions are even more advantageous in Europe, where just two publicly traded net lease REITs account for less than 1% of the addressable market.
Coca-Cola
With 61 years of consecutive annual dividend raises under its belt, The Coca-Cola Company (NYSE: KO) is arguably the most reliable dividend payer on this list. At recent prices, the stock offers a 3.1% dividend yield.
The popularity of sugary sodas might be on the decline in your neighborhood, but worldwide it's still on the rise. Trademark Coca-Cola case volume grew 2% year over year in the third quarter.
Like Altria, Coca-Cola leverages the strength of its brands to support price increases its less popular peers can only dream of. This is how the company was able to grow total third-quarter revenue by 8% year over year, or about four times the pace of overall case volume growth.
Pricing power and economies of scale make Coca-Cola's business a very profitable one. The company recorded $10.2 billion in free cash flow over the past 12 months but needed just 77% of this sum to meet its dividend obligation. At this level, the company should have no trouble raising its dividend payout in line with the growth rate of its overall business.
Should you invest $1,000 in Altria Group right now?
Before you buy stock in Altria Group, 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 Altria Group 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
Cory Renauer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Moody's and Realty Income. 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.
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With strong advantages to keep the competition from eating into their profit margins, these stocks could keep paying and raising their dividend payouts for as long as you care to hold them. With a long track record of success, Realty Income boasts an A3 credit rating from Moody's that keeps borrowing costs much lower than its smaller peers. This REIT leases properties to hundreds of retail clients but leans toward dollar stores, pharmacies, and other businesses that resist e-commerce competition.
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The first option rarely works out over time, because dividend-paying stocks rarely offer high yields until investors are worried about the underlying business and its ability to sustain its commitment. With a long track record of success, Realty Income boasts an A3 credit rating from Moody's that keeps borrowing costs much lower than its smaller peers. Before you buy stock in Altria Group, 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 Altria Group wasn't one of them.
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Coca-Cola With 61 years of consecutive annual dividend raises under its belt, The Coca-Cola Company (NYSE: KO) is arguably the most reliable dividend payer on this list. Before you buy stock in Altria Group, 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 Altria Group wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Cory Renauer has no position in any of the stocks mentioned.
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This summer, the company raised its dividend payout for the 58th time in 54 years. With an already enormous portfolio and relatively low borrowing costs, Realty Income could consolidate a large addressable market. Before you buy stock in Altria Group, 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 Altria Group wasn't one of them.
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a5ce5165-bc67-4d40-8fc3-67bbc0a638aa
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710996.0
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2023-12-16 00:00:00 UTC
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Here's Why EOG Resources (EOG) is a Solid Investment Bet
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https://www.nasdaq.com/articles/heres-why-eog-resources-eog-is-a-solid-investment-bet
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nan
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EOG Resources, Inc. EOG has witnessed upward earnings estimate revisions for 2023 and 2024 over the past 60 days.
Factors Working in Favor
The price of West Texas Intermediate crude is at more than the $70 per barrel mark again, which is highly favorable for upstream operations. EOG Resources, currently carrying a Zacks Rank #2 (Buy), is well-placed to capitalize on the promising business scenario. It has significant undrilled premium locations, resulting in a brightened production outlook.
EOG Resources is strongly committed to returning capital to shareholders. Since transitioning to premium drilling, the company has returned significant cash to its stockholders. Notably, from 1999 through 2024, the company has committed to raising its regular dividend at a compound annual growth rate of 21%. It has never suspended or lowered its dividend, even during business turmoil, reflecting solid underlying business.
With the employment of premium drilling, EOG will be able to reduce its cash operating costs per barrel of oil equivalent, aiding its bottom line.
Other Stocks to Consider
Other prospective energy companies include Murphy USA Inc. MUSA, Weatherford International plc WFRD and Transportadora de Gas del Sur SA TGS. While Murphy USA sports a Zacks Rank #1 (Strong Buy), Weatherford International and Transportadora de Gas carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Murphy USA is a renowned retailer of gasoline and convenience goods, distinguished by its adaptable business model that effectively enhances profitability during periods of economic expansion and recession. Over the past 30 days, the stock has witnessed upward earnings estimate revisions for this year.
Weatherfordis a key energy player and is engaged in offering exclusive drilling technologies that will maximize clients’ reservoir exposure. Weatherford is also involved in well construction and completion activities in an efficient manner.
Transportadora’s midstream asset portfolio has the most extensive natural gas pipeline network in Latin America. It generates stable fee-based revenues since its pipeline assets transport more than 60% of the gas consumed in Argentina.
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One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
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EOG Resources, Inc. (EOG) : Free Stock Analysis Report
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To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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With the employment of premium drilling, EOG will be able to reduce its cash operating costs per barrel of oil equivalent, aiding its bottom line. Other Stocks to Consider Other prospective energy companies include Murphy USA Inc. MUSA, Weatherford International plc WFRD and Transportadora de Gas del Sur SA TGS. Murphy USA is a renowned retailer of gasoline and convenience goods, distinguished by its adaptable business model that effectively enhances profitability during periods of economic expansion and recession.
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Other Stocks to Consider Other prospective energy companies include Murphy USA Inc. MUSA, Weatherford International plc WFRD and Transportadora de Gas del Sur SA TGS. While Murphy USA sports a Zacks Rank #1 (Strong Buy), Weatherford International and Transportadora de Gas carry a Zacks Rank #2. Click to get this free report EOG Resources, Inc. (EOG) : Free Stock Analysis Report Murphy USA Inc. (MUSA) : Free Stock Analysis Report Transportadora De Gas Sa Ord B (TGS) : Free Stock Analysis Report Weatherford International PLC (WFRD) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Other Stocks to Consider Other prospective energy companies include Murphy USA Inc. MUSA, Weatherford International plc WFRD and Transportadora de Gas del Sur SA TGS. While Murphy USA sports a Zacks Rank #1 (Strong Buy), Weatherford International and Transportadora de Gas carry a Zacks Rank #2. Click to get this free report EOG Resources, Inc. (EOG) : Free Stock Analysis Report Murphy USA Inc. (MUSA) : Free Stock Analysis Report Transportadora De Gas Sa Ord B (TGS) : Free Stock Analysis Report Weatherford International PLC (WFRD) : Free Stock Analysis Report To read this article on Zacks.com click here.
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EOG Resources is strongly committed to returning capital to shareholders. While Murphy USA sports a Zacks Rank #1 (Strong Buy), Weatherford International and Transportadora de Gas carry a Zacks Rank #2. Download Free ChatGPT Stock Report Right Now >> Want the latest recommendations from Zacks Investment Research?
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a06175bf-018b-445f-82a1-05dae27d235f
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710997.0
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2023-12-16 00:00:00 UTC
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Where Will AMD Stock Be in 5 Years?
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DCOMP
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https://www.nasdaq.com/articles/where-will-amd-stock-be-in-5-years-0
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nan
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nan
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With its shares more than doubling in 2023, Advanced Micro Devices (NASDAQ: AMD) has been a rewarding near-term investment. While the company's operational results are yet to match its impressive stock price performance, that could soon change.
Let's discuss what the next five years could have in store for this legendary tech company as it pivots to new growth opportunities in artificial intelligence (AI).
What is Advanced Micro Devices?
Since its founding in 1969, Advanced Micro Devices has specialized in creating computer hardware such as memory chips and central processing units (CPUs). After the 2006 acquisition of ATI Technologies, the company became a direct rival of Nvidia in the market for graphics processing units (GPUs), a type of technology with uses ranging from video game rendering to training advanced generative AI models.
While Nvidia is widely considered to have the leading edge in the GPU market, AMD traditionally competes based on price and value for money.
This strategy has served the company well in the personal computer graphics industry. And AMD could employ a similar strategy to gain market share in AI chips -- a market where Nvidia currently controls 80% of sales volume.
Management has high hopes for the future
The AI chip market is ripe for competition. According to CNN, demand is outstripping supply for the most advanced AI chips, leading to bottlenecks and spiraling costs as more companies race to build and train generative AI models. With a third-quarter gross margin of 74% (up 20.4 points from the prior-year period), Nvidia is taking full advantage of its dominant position to keep prices high.
Image source: Getty Images.
AMD plans to disrupt Nvidia's near-monopoly with its MI300x family of data center chips designed to match or exceed the Nvidia h100 in training and running AI platforms. These new products had a limited impact on AMD's third-quarter revenue, which only grew 4% year over year to $5.8 billion.
But investors should expect data center chip sales to ramp up in 2024 as the company begins to deliver the products to clients like Microsoft and Meta Platforms, which have already committed to buying them.
AMD's CEO Lisa Su expects the size of the AI chip industry to grow almost tenfold to more than $400 billion over the next four years. And this means the company could enjoy plenty of long-term growth, even if the opportunity lives up to just a fraction of those lofty projections.
AMD will have to grow into its valuation
To be fair, AMD's valuation looks high compared to its current performance. With a price-to-sales multiple of 10.22, its shares are significantly pricier than the S&P 500 average of 2.6. And this is a big premium for a company that only grew by single digits in its most recent quarter.
That said, investing is all about the future, not the past. And AMD could be on the cusp of spectacular growth over the next half-decade as it scales up its new AI chip business. The stock looks like a buy.
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*.
See the 10 stocks
*Stock Advisor returns as of December 11, 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. Will Ebiefung has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Since its founding in 1969, Advanced Micro Devices has specialized in creating computer hardware such as memory chips and central processing units (CPUs). With a third-quarter gross margin of 74% (up 20.4 points from the prior-year period), Nvidia is taking full advantage of its dominant position to keep prices high. But investors should expect data center chip sales to ramp up in 2024 as the company begins to deliver the products to clients like Microsoft and Meta Platforms, which have already committed to buying them.
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But investors should expect data center chip sales to ramp up in 2024 as the company begins to deliver the products to clients like Microsoft and Meta Platforms, which have already committed to buying them. 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, Meta Platforms, Microsoft, and Nvidia.
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And AMD could employ a similar strategy to gain market share in AI chips -- a market where Nvidia currently controls 80% of sales volume. 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 Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors.
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And AMD could employ a similar strategy to gain market share in AI chips -- a market where Nvidia currently controls 80% of sales volume. 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, Meta Platforms, Microsoft, and Nvidia.
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111265ce-6a67-4b75-87fa-b063daeb6e44
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710998.0
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2023-12-16 00:00:00 UTC
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Lucid Stock Analysis: Buy, Sell, or Hold in 2024?
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DCOMP
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https://www.nasdaq.com/articles/lucid-stock-analysis%3A-buy-sell-or-hold-in-2024
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nan
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nan
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Fool.com contributor Parkev Tatevosian highlights Lucid's (NASDAQ: LCID) progress in 2023 while looking ahead to 2024. Parkev answers if he thinks Lucid stock is a buy for next year and beyond.
*Stock prices used were the afternoon prices of Dec. 16, 2023. The video was published on Dec. 18, 2023.
Should you invest $1,000 in Lucid Group right now?
Before you buy stock in Lucid Group, 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 Lucid Group 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.
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Fool.com contributor Parkev Tatevosian highlights Lucid's (NASDAQ: LCID) progress in 2023 while looking ahead to 2024. 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.
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Fool.com contributor Parkev Tatevosian highlights Lucid's (NASDAQ: LCID) progress in 2023 while looking ahead to 2024. Before you buy stock in Lucid Group, 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 Lucid Group 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.
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Before you buy stock in Lucid Group, 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 Lucid Group 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.
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Before you buy stock in Lucid Group, 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 Lucid Group 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.
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afa72c8d-0c6c-4666-88d0-726b0ddbcaa9
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710999.0
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2023-12-16 00:00:00 UTC
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‘We Are Bullish on Cybersecurity’: Susquehanna Recommends 3 Stocks to Consider
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DCOMP
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https://www.nasdaq.com/articles/we-are-bullish-on-cybersecurity%3A-susquehanna-recommends-3-stocks-to-consider
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nan
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nan
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New technologies bring with them new demands on security, and we’ve all learned the vocabulary of the digital world’s risks: spyware and malware, malignant ads and phishing, hacking and ransomware. It seems the threats are never-ending.
The increase in malevolent software attacks has driven a related increase in regulatory requirements, that is helping to push increased cybersecurity spending by both public and private businesses. A run of recent, high-profile, cyberattacks has simply driven that point home.
The upshot is, companies everywhere are working to firm up their cybersecurity defenses, to satisfy regulators, to reassure customers, and to prevent the losses consequent to a major hack attack. In a 2023 report on the Cost of Data Breach, IBM estimated that the “global average cost of a data breach in 2023 was $4.45 million.” That’s a serious incentive for companies to bump up cybersecurity spending – and it’s a serious tailwind for cybersecurity stocks.
This fact has caught the eye of Shyam Patil, 5-star analyst from Susquehanna, who writes in a recent industry report, “We are bullish on the cybersecurity software space as we see cyber budgets and use cases continuing to grow, driven by an ever-evolving threat landscape, internal and external innovation, and requirements from both regulators and insurers. Additionally, we expect consolidation to remain a key theme, as we continue to see a move toward platformization and increasing desire among enterprise customers to combat vendor sprawl. That said, we see the rapidly changing nature of the marketplace and threat landscape continuing to lead to new entrants.”
Patil also has an idea which cybersecurity stocks represent the best opportunities right now and we have decided to give three of his picks a closer look. For a more rounded view of their prospects, we also ran them through the TipRanks database. Here’s the lowdown.
Palo Alto Networks (PANW)
First up is Palo Alto Networks, a digital security company offering comprehensive cybersecurity solutions and a line of firewall products, all designed to create a safe and secure environment in cloud, network, and endpoint services. Palo Alto’s product lines offer a high level of protection for online and cloud-native systems, protection that can be tailored for enterprise customers, small businesses, and even for individual home use. The company’s security products are offered on the popular software-as-a-service subscription model.
Some numbers will give an idea of the scale – and importance – of Palo Alto’s work. The company’s December 19 daily data showed a total of 1 trillion cloud events processed. This included 1.44 billion new unique objects analyzed, 4.53 million new unique attacks objects identified, and 324,920 malware executions blocked, and 9,610 exploit attempts detected. Overall, the company’s defenses counted 7.05 billion attacks prevented inline.
From the user’s perspective, Palo Alto’s security systems allow any cloud system to be secured, and allow security operations to be automated for maximum efficiency in detection, investigation, and response. Palo Alto boasts that no matter what the security challenge is, it can be conquered, even the latest threats, based on AI and machine learning technologies.
In November, Palo Alto Networks reported its financial results for fiscal 1Q24 (October quarter). Revenue was up almost 22% year-over-year, reaching $1.9 billion – a total that beat the forecast by $60 million. The company’s backlog, listed as the remaining performance obligation, bodes well for the near-term; it came in at $10.4 billion for the quarter, up 26% year-over-year. At the bottom line, Palo Alto brought in a non-GAAP net income of $1.38 per diluted share, up from the 83-cent figure of the prior-year quarter and $0.22 above the consensus estimate.
In his coverage of this stock, Shyam Patil, takes an overall upbeat view, writing, “PANW's category-leading positioning in network and cloud security underpins our Positive view on the company. We see PANW as one of the key beneficiaries of consolidation and platformization in the space, with several checks highlighting the ease of the company's products. We acknowledge the company is trading at a premium but see this as well-deserved given the premium nature of the asset.”
Quantifying this stance, Patil rates the shares as Positive (a Buy), with a Street-high $400 price target implying a one-year upside potential of 30%. (To watch Patil’s track record, click here)
This stock boasts a Strong By consensus rating, based on 34 recent reviews that include 30 Buys and 4 Holds. However, the shares have gained over 120% year-to-date, and the average price target of $300.94 now suggests the stock will stay rangebound for the foreseeable future. (See PANW stock forecast)
SentinelOne (S)
Next on our list of Susquehanna picks is SentinelOne, a cybersecurity company and platform built for autonomous action, aiming to protect and secure all facets of today’s digital infrastructure – the data systems, as well as the storage, processing, and information systems. The company gives its customers and end-users solutions based on AI, to prevent online security threats through early detection and response.
SentinelOne’s platform will work proactively to halt cybersecurity threats. The system hunts across endpoints, containers, cloud software and workloads, and IoT devices, to locate and defeat every attack, every second. The company’s Singularity Platform performs at large and small scales, with higher speed and more accuracy than any human operator – or any team of human operators.
The key here is endpoint security – SentinelOne’s specialty. The company targets its protection on all system endpoints – the devices that can be connected to the network – and provides security for all originated and received communications. The endpoints protected are varied, and can include all linked desktops, laptops, and mobile devices.
It’s a value proposition that served the company well in its recent report for Q3 of fiscal year 2024. The company beat both the top and bottom line forecasts and increased its revenue guidance for both Q4 and the full fiscal year 2024.
At the top line, the company’s total revenue came to $164.17 million, up 42% y/y and some $7.85 million better than the forecasts. Adj. EPS of -$0.03 beat the Street’s call by $0.05.
On guidance, the company predicted Q4 revenue at $169 million, significantly better than the consensus estimate of $166.63 million. For fiscal year 2024, SentinelOne is forecasting revenue of $616 million, well above the previous $605 million forecast – and well above the $605.2 million the analysts were expecting.
That’s the background for Patil’s comments. The 5-star analyst notes that the company has a solid position – and also benefits from a solid reputation. He says of the firm, “SentinelOne's unique positioning as a cloud-first endpoint vendor and a general industry perception of its best-in-class technology serve to underpin our Positive view on the company. We see S as one of the key beneficiaries of the need for improved security and expended observability, with several checks highlighting the quality of its technology. We see significant opportunity ahead in the form of market expansion and competitive displacements.”
Patil’s Positive (Buy) rating on these shares is complemented by his $35 price target, which points toward a 31% gain on the one-year horizon.
Overall, Wall Street gives SentinelOne a Moderate Buy consensus rating, backed up by 26 recent analyst reviews that break down to 12 Buys and 14 Holds. However, here the 83% year-to-date gains have seen the stock surpass the $25.43 average target, which now represents downside of 5% from current levels. (See SentinelOne stock forecast)
Check Point (CHKP)
Last up today is Check Point, an ‘old timer’ in the world of internet security. Check Point has been handling online security since 1993, living up to its own stated mission: to make online communications and critical data safe, secure, reliable, and available everywhere the user needs it. Today the company is an industry leader and one of the largest pure-play digital security firms in theglobal market
Check Point’s solutions protect its customers from cyberattacks of all sorts. The company’s Harmony product line focuses on remote users, Cloud Guard automatically secures cloud-based software and networks, Quantum provides a unified security environment for data centers and network perimeters, and Horizon is a prevention-oriented suite of security operations. The company boasts a client list over 100,000 strong, that includes one-fourth of the global Fortune 500 firms.
In addition to protecting its own customers, Check Point has taken proactive steps to protect its own intellectual property – a vital step that helps to ensure the integrity of its own products. The company currently holds 73 US patents, and has another 30 patents pending. Check Point’s solid suite of security products and tools are used by clients at all scales, across 88 countries around the world.
Check Point’s business generated an adj. net income of $242 million in 3Q23, the last quarter reported. This was up 10% y/y and resulted in non-GAAP EPS of $2.07, 5 cents per share ahead of the forecast. Check Point’s revenue total for the quarter came to $596 million, up 3.2% from the prior-year quarter – and nearly $3.8 million better than expected.
Beating the earnings forecasts and maintaining its sound position in a vital niche will attract optimistic analyst attention to any company, and Susquehanna’s Patil says of this stock, “CHKP's solid positioning in the space and positive sentiment from our checks with regard to tech capabilities and execution, coupled with the company's renewed willingness to invest in S&M and acquire key technologies, lead to our Positive rating on the stock. We acknowledge that the company's growth profile has been slower than some others in the space but see the potential for acceleration in years to come and believe the name is particularly attractive for GARP investors.”
That Positive (Buy) rating comes with a $190 price target to imply a potential upside of 27.5% for the year ahead. (To watch Patil’s track record, click here)
This is another stock with a Moderate Buy rating from the analyst consensus; Check Point’s 23 recent analyst reviews feature 9 Buys – but also 14 Holds. That said, the $150.94 average price target implies the shares are currently fully valued. (See CHKP 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.
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This fact has caught the eye of Shyam Patil, 5-star analyst from Susquehanna, who writes in a recent industry report, “We are bullish on the cybersecurity software space as we see cyber budgets and use cases continuing to grow, driven by an ever-evolving threat landscape, internal and external innovation, and requirements from both regulators and insurers. We see significant opportunity ahead in the form of market expansion and competitive displacements.” Patil’s Positive (Buy) rating on these shares is complemented by his $35 price target, which points toward a 31% gain on the one-year horizon. Today the company is an industry leader and one of the largest pure-play digital security firms in theglobal market Check Point’s solutions protect its customers from cyberattacks of all sorts.
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Palo Alto Networks (PANW) First up is Palo Alto Networks, a digital security company offering comprehensive cybersecurity solutions and a line of firewall products, all designed to create a safe and secure environment in cloud, network, and endpoint services. (To watch Patil’s track record, click here) This stock boasts a Strong By consensus rating, based on 34 recent reviews that include 30 Buys and 4 Holds. (To watch Patil’s track record, click here) This is another stock with a Moderate Buy rating from the analyst consensus; Check Point’s 23 recent analyst reviews feature 9 Buys – but also 14 Holds.
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Palo Alto Networks (PANW) First up is Palo Alto Networks, a digital security company offering comprehensive cybersecurity solutions and a line of firewall products, all designed to create a safe and secure environment in cloud, network, and endpoint services. (See PANW stock forecast) SentinelOne (S) Next on our list of Susquehanna picks is SentinelOne, a cybersecurity company and platform built for autonomous action, aiming to protect and secure all facets of today’s digital infrastructure – the data systems, as well as the storage, processing, and information systems. Beating the earnings forecasts and maintaining its sound position in a vital niche will attract optimistic analyst attention to any company, and Susquehanna’s Patil says of this stock, “CHKP's solid positioning in the space and positive sentiment from our checks with regard to tech capabilities and execution, coupled with the company's renewed willingness to invest in S&M and acquire key technologies, lead to our Positive rating on the stock.
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Palo Alto Networks (PANW) First up is Palo Alto Networks, a digital security company offering comprehensive cybersecurity solutions and a line of firewall products, all designed to create a safe and secure environment in cloud, network, and endpoint services. Revenue was up almost 22% year-over-year, reaching $1.9 billion – a total that beat the forecast by $60 million. (See PANW stock forecast) SentinelOne (S) Next on our list of Susquehanna picks is SentinelOne, a cybersecurity company and platform built for autonomous action, aiming to protect and secure all facets of today’s digital infrastructure – the data systems, as well as the storage, processing, and information systems.
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a62d0e9d-79e4-4df5-b650-5d83ce1edafb
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