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711400.0
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2023-12-15 00:00:00 UTC
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Regency Centers (REG) Boosts Portfolio With Property Buyout
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DCOMP
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https://www.nasdaq.com/articles/regency-centers-reg-boosts-portfolio-with-property-buyout
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nan
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nan
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Regency Centers REG recently closed the acquisition of a neighborhood center, The Longmeadow Shops, in Longmeadow, MA, expanding its footprint of high-quality shopping centers in premier suburban trade areas with compelling demographics. Shares of the company witnessed a loss of 1.39% on the Dec 15 normal trading session on the NYSE, reflecting broader market concerns.
The Longmeadow Shops is a premier shopping and dining destination within the trade area, encompassing 100,000 square feet of space that is currently 100% leased. It consists of a strong national tenant mix, including CVS, Athleta, Starbucks, Bank of America, Talbots, Gap, J. Crew Factory and Chico’s.
The center, which has an established reputation and relationship with the surrounding neighborhoods, also houses local favorite dining places such as Posto, Max Burger and Delaney’s Market.
Hence, given the strategic location of the property and its popularity, it is likely to draw in substantial consumer footfall and boost sales, making the move strategic for Regency.
Per Jack deVilliers, senior vice president and senior market officer “We continue to make strategic and accretive investments in the Northeast, powered by our financial strength and access to capital. As long-term owners of our properties, we look forward to further investing in portfolio growth and demonstrating why we are a company-of-choice for this retail environment.”
Regency is focused on building a premium portfolio of grocery-anchored shopping centers. Over the years, the company has made several strategic acquisitions and developments in the key markets of the United States to bolster external growth.
In August 2023, the retail real estate investment trust (REIT) acquired Urstadt Biddle Properties Inc. in an all-stock transaction. The combined portfolio comprising 480 properties and encompassing more than 56 million square feet of the gross leasable area enhanced Regency's geographic diversification, tenant mix, growth prospects and balance sheet strength. The acquisition was immediately accretive to its core operating earnings.
In addition, REG’s healthy balance sheet position is expected to support its growth endeavors. As of Sep 30, 2023, the retail REIT had nearly $1.2 billion available under its revolving credit facility.
Shares of this Zacks Rank #3 (Hold) company have gained 12.6% in the quarter-to-date period compared with the industry's upside of 17.4%.
Image Source: Zacks Investment Research
However, given the conveniences of online shopping, rising e-commerce adoption is concerning for Regency. The efforts of online retailers to go deeper into the grocery business in recent years are likely to hurt the market share for brick-and-mortar stores, raising concerns for the company.
A high interest rate environment is likely to increase the company's borrowing costs, affecting its ability to purchase or develop real estate.
Stocks to Consider
Some better-ranked stocks from the retail REIT sector are Realty Income O and TANGER INC SKT. While SKT sports a Zacks Rank #1 (Strong Buy) at present, O carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Realty Income’s ongoing year’s funds from operations (FFO) per share is pegged at $4.01, indicating a year-over-year increase of 2.3%.
The Zacks Consensus Estimate for TANGER INC’s current-year FFO per share stands at $1.94, implying a rise of 6% from the year-ago reported figure.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
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
Regency Centers Corporation (REG) : Free Stock Analysis Report
Tanger Inc. (SKT) : Free Stock Analysis Report
Realty Income Corporation (O) : 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 center, which has an established reputation and relationship with the surrounding neighborhoods, also houses local favorite dining places such as Posto, Max Burger and Delaney’s Market. The combined portfolio comprising 480 properties and encompassing more than 56 million square feet of the gross leasable area enhanced Regency's geographic diversification, tenant mix, growth prospects and balance sheet strength. The efforts of online retailers to go deeper into the grocery business in recent years are likely to hurt the market share for brick-and-mortar stores, raising concerns for the company.
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Regency Centers REG recently closed the acquisition of a neighborhood center, The Longmeadow Shops, in Longmeadow, MA, expanding its footprint of high-quality shopping centers in premier suburban trade areas with compelling demographics. The Longmeadow Shops is a premier shopping and dining destination within the trade area, encompassing 100,000 square feet of space that is currently 100% leased. Click to get this free report Regency Centers Corporation (REG) : Free Stock Analysis Report Tanger Inc. (SKT) : Free Stock Analysis Report Realty Income Corporation (O) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Regency Centers REG recently closed the acquisition of a neighborhood center, The Longmeadow Shops, in Longmeadow, MA, expanding its footprint of high-quality shopping centers in premier suburban trade areas with compelling demographics. While SKT sports a Zacks Rank #1 (Strong Buy) at present, O carries a Zacks Rank #2 (Buy). Click to get this free report Regency Centers Corporation (REG) : Free Stock Analysis Report Tanger Inc. (SKT) : Free Stock Analysis Report Realty Income Corporation (O) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The combined portfolio comprising 480 properties and encompassing more than 56 million square feet of the gross leasable area enhanced Regency's geographic diversification, tenant mix, growth prospects and balance sheet strength. Stocks to Consider Some better-ranked stocks from the retail REIT sector are Realty Income O and TANGER INC SKT. Be First to New Top 10 Stocks >> Want the latest recommendations from Zacks Investment Research?
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7ab04760-37a0-44c7-add5-358b05071e26
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711401.0
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2023-12-15 00:00:00 UTC
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Financial Sector Update for 12/18/2023: BLK, C, MUFG, XLF, FAS, FAZ
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DCOMP
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https://www.nasdaq.com/articles/financial-sector-update-for-12-18-2023%3A-blk-c-mufg-xlf-fas-faz
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nan
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nan
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Financial stocks were gaining premarket Monday with the Financial Select Sector SPDR Fund (XLF) recently advancing by 0.4%.
The Direxion Daily Financial Bull 3X Shares (FAS) was up 1.4% and its bearish counterpart Direxion Daily Financial Bear 3X Shares (FAZ) was 0.8% lower.
BlackRock (BLK) has agreed to invest up to $400 million in a decarbonization firm focused on the oil-rich Arabian Peninsula, according to multiple news reports. BlackRock was slipping 1.7% pre-bell.
Citigroup's (C) plan to establish a securities business in China has been pushed back to around the end of 2024 at the earliest as the company requires more time for compliance with the country's data regulations, Bloomberg News reported, citing unnamed sources familiar with the matter. Citigroup was marginally higher pre-bell.
Mitsubishi UFJ Financial Group (MUFG) unit Mitsubishi UFJ Trust & Banking said it has agreed to acquire Australian pension and stock administrator Link Administration Holdings for AU$1.2 billion ($808 million). Mitsubishi UFJ Financial Group was slightly lower in recent premarket activity.
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 (BLK) has agreed to invest up to $400 million in a decarbonization firm focused on the oil-rich Arabian Peninsula, according to multiple news reports. Citigroup's (C) plan to establish a securities business in China has been pushed back to around the end of 2024 at the earliest as the company requires more time for compliance with the country's data regulations, Bloomberg News reported, citing unnamed sources familiar with the matter. Mitsubishi UFJ Financial Group (MUFG) unit Mitsubishi UFJ Trust & Banking said it has agreed to acquire Australian pension and stock administrator Link Administration Holdings for AU$1.2 billion ($808 million).
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The Direxion Daily Financial Bull 3X Shares (FAS) was up 1.4% and its bearish counterpart Direxion Daily Financial Bear 3X Shares (FAZ) was 0.8% lower. Mitsubishi UFJ Financial Group (MUFG) unit Mitsubishi UFJ Trust & Banking said it has agreed to acquire Australian pension and stock administrator Link Administration Holdings for AU$1.2 billion ($808 million). Mitsubishi UFJ Financial Group was slightly lower in recent premarket activity.
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The Direxion Daily Financial Bull 3X Shares (FAS) was up 1.4% and its bearish counterpart Direxion Daily Financial Bear 3X Shares (FAZ) was 0.8% lower. Citigroup's (C) plan to establish a securities business in China has been pushed back to around the end of 2024 at the earliest as the company requires more time for compliance with the country's data regulations, Bloomberg News reported, citing unnamed sources familiar with the matter. Mitsubishi UFJ Financial Group (MUFG) unit Mitsubishi UFJ Trust & Banking said it has agreed to acquire Australian pension and stock administrator Link Administration Holdings for AU$1.2 billion ($808 million).
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The Direxion Daily Financial Bull 3X Shares (FAS) was up 1.4% and its bearish counterpart Direxion Daily Financial Bear 3X Shares (FAZ) was 0.8% lower. BlackRock was slipping 1.7% pre-bell. Mitsubishi UFJ Financial Group was slightly lower in recent premarket activity.
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cf94a3d5-b8ec-4439-abb4-69451cfad9b1
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711402.0
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2023-12-15 00:00:00 UTC
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ITT Inc. (ITT) Hits Fresh High: Is There Still Room to Run?
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DCOMP
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https://www.nasdaq.com/articles/itt-inc.-itt-hits-fresh-high%3A-is-there-still-room-to-run-0
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nan
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nan
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Have you been paying attention to shares of ITT (ITT)? Shares have been on the move with the stock up 7.1% over the past month. The stock hit a new 52-week high of $117.01 in the previous session. ITT has gained 42.8% since the start of the year compared to the 5.4% move for the Zacks Conglomerates sector and the 5.4% return for the Zacks Diversified Operations industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on November 2, 2023, ITT reported EPS of $1.37 versus consensus estimate of $1.27 while it beat the consensus revenue estimate by 1.51%.
For the current fiscal year, ITT is expected to post earnings of $5.20 per share on $3.26 billion in revenues. This represents a 17.12% change in EPS on a 9.25% change in revenues. For the next fiscal year, the company is expected to earn $5.79 per share on $3.42 billion in revenues. This represents a year-over-year change of 11.46% and 4.92%, respectively.
Valuation Metrics
ITT may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
ITT has a Value Score of C. The stock's Growth and Momentum Scores are B and C, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 22.3X current fiscal year EPS estimates, which is a premium to the peer industry average of 17.5X. On a trailing cash flow basis, the stock currently trades at 20X versus its peer group's average of 7.1X. Additionally, the stock has a PEG ratio of 1.7. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, ITT currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if ITT fits the bill. Thus, it seems as though ITT shares could still be poised for more gains ahead.
How Does ITT Stack Up to the Competition?
Shares of ITT have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is 3M Company (MMM). MMM has a Zacks Rank of # 2 (Buy) and a Value Score of A, a Growth Score of B, and a Momentum Score of D.
Earnings were strong last quarter. 3M Company beat our consensus estimate by 14.53%, and for the current fiscal year, MMM is expected to post earnings of $9.92 per share on revenue of $31.76 billion.
Shares of 3M Company have gained 12.2% over the past month, and currently trade at a forward P/E of 11.73X and a P/CF of 7.82X.
The Diversified Operations industry is in the top 33% of all the industries we have in our universe, so it looks like there are some nice tailwinds for ITT and MMM, even beyond their own solid fundamental situation.
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
ITT Inc. (ITT) : Free Stock Analysis Report
3M Company (MMM) : 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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Fortunately, ITT currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts. 3M Company beat our consensus estimate by 14.53%, and for the current fiscal year, MMM is expected to post earnings of $9.92 per share on revenue of $31.76 billion. 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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In its last earnings report on November 2, 2023, ITT reported EPS of $1.37 versus consensus estimate of $1.27 while it beat the consensus revenue estimate by 1.51%. In terms of its value breakdown, the stock currently trades at 22.3X current fiscal year EPS estimates, which is a premium to the peer industry average of 17.5X. Click to get this free report ITT Inc. (ITT) : Free Stock Analysis Report 3M Company (MMM) : Free Stock Analysis Report To read this article on Zacks.com click here.
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ITT has a Value Score of C. The stock's Growth and Momentum Scores are B and C, respectively, giving the company a VGM Score of B. Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if ITT fits the bill. Click to get this free report ITT Inc. (ITT) : Free Stock Analysis Report 3M Company (MMM) : Free Stock Analysis Report To read this article on Zacks.com click here.
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In its last earnings report on November 2, 2023, ITT reported EPS of $1.37 versus consensus estimate of $1.27 while it beat the consensus revenue estimate by 1.51%. Valuation Metrics ITT may be at a 52-week high right now, but what might the future hold for the stock? Be First to New Top 10 Stocks >> Want the latest recommendations from Zacks Investment Research?
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0013ab40-372e-4302-815e-86b00a17f608
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711403.0
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2023-12-15 00:00:00 UTC
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SPX Technologies, Inc. (SPXC) Hits Fresh High: Is There Still Room to Run?
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DCOMP
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https://www.nasdaq.com/articles/spx-technologies-inc.-spxc-hits-fresh-high%3A-is-there-still-room-to-run
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nan
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nan
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Have you been paying attention to shares of SPX Technologies (SPXC)? Shares have been on the move with the stock up 9.9% over the past month. The stock hit a new 52-week high of $96.45 in the previous session. SPX Technologies has gained 45.6% since the start of the year compared to the 21.1% move for the Zacks Business Services sector and the 49% return for the Zacks Technology Services industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on November 2, 2023, SPX Technologies reported EPS of $1.06 versus consensus estimate of $0.95.
For the current fiscal year, SPX Technologies is expected to post earnings of $4.30 per share on $1.75 billion in revenues. This represents a 38.71% change in EPS on a 20.01% change in revenues. For the next fiscal year, the company is expected to earn $4.77 per share on $1.88 billion in revenues. This represents a year-over-year change of 10.85% and 7.36%, respectively.
Valuation Metrics
SPX Technologies may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
SPX Technologies has a Value Score of B. The stock's Growth and Momentum Scores are C and D, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 22.2X current fiscal year EPS estimates, which is not in-line with the peer industry average of 25.8X. On a trailing cash flow basis, the stock currently trades at 21.3X versus its peer group's average of 8.5X. Additionally, the stock has a PEG ratio of 1.24. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, SPX Technologies currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if SPX Technologies fits the bill. Thus, it seems as though SPX Technologies shares could have a bit more room to run in the near term.
How Does SPXC Stack Up to the Competition?
Shares of SPXC have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Instructure Holdings, Inc. (INST). INST has a Zacks Rank of # 2 (Buy) and a Value Score of C, a Growth Score of B, and a Momentum Score of A.
Earnings were strong last quarter. Instructure Holdings, Inc. beat our consensus estimate by 25%, and for the current fiscal year, INST is expected to post earnings of $0.99 per share on revenue of $529.4 million.
Shares of Instructure Holdings, Inc. have gained 6.2% over the past month, and currently trade at a forward P/E of 31.22X and a P/CF of 17.94X.
The Technology Services industry is in the top 30% of all the industries we have in our universe, so it looks like there are some nice tailwinds for SPXC and INST, even beyond their own solid fundamental situation.
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
SPX Technologies, Inc. (SPXC) : Free Stock Analysis Report
Instructure Holdings, Inc. (INST) : 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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A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level. Instructure Holdings, Inc. beat our consensus estimate by 25%, and for the current fiscal year, INST is expected to post earnings of $0.99 per share on revenue of $529.4 million. 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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In its last earnings report on November 2, 2023, SPX Technologies reported EPS of $1.06 versus consensus estimate of $0.95. For the current fiscal year, SPX Technologies is expected to post earnings of $4.30 per share on $1.75 billion in revenues. Click to get this free report SPX Technologies, Inc. (SPXC) : Free Stock Analysis Report Instructure Holdings, Inc. (INST) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Zacks Rank We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if SPX Technologies fits the bill. Click to get this free report SPX Technologies, Inc. (SPXC) : Free Stock Analysis Report Instructure Holdings, Inc. (INST) : Free Stock Analysis Report To read this article on Zacks.com click here.
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SPX Technologies has a Value Score of B. Fortunately, SPX Technologies currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates. Be First to New Top 10 Stocks >> Want the latest recommendations from Zacks Investment Research?
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791e833a-dce1-4f94-9ab7-cbf334d21434
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711404.0
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2023-12-15 00:00:00 UTC
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Flex Ltd. (FLEX) Hit a 52 Week High, Can the Run Continue?
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DCOMP
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https://www.nasdaq.com/articles/flex-ltd.-flex-hit-a-52-week-high-can-the-run-continue-0
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nan
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nan
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Have you been paying attention to shares of Flex (FLEX)? Shares have been on the move with the stock up 10% over the past month. The stock hit a new 52-week high of $29.04 in the previous session. Flex has gained 34.6% since the start of the year compared to the 50% move for the Zacks Computer and Technology sector and the 24.6% return for the Zacks Electronics - Miscellaneous Products industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on October 25, 2023, Flex reported EPS of $0.68 versus consensus estimate of $0.58 while it missed the consensus revenue estimate by 0.61%.
For the current fiscal year, Flex is expected to post earnings of $2.56 per share on $28.46 billion in revenues. This represents an 8.47% change in EPS on a -6.21% change in revenues. For the next fiscal year, the company is expected to earn $3.05 per share on $30.16 billion in revenues. This represents a year-over-year change of 18.95% and 5.98%, respectively.
Valuation Metrics
Flex may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Flex has a Value Score of A. The stock's Growth and Momentum Scores are C and F, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 11.3X current fiscal year EPS estimates, which is not in-line with the peer industry average of 18.5X. On a trailing cash flow basis, the stock currently trades at 8.8X versus its peer group's average of 9.3X. Additionally, the stock has a PEG ratio of 0.91. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Flex currently has a Zacks Rank of #1 (Strong Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Flex passes the test. Thus, it seems as though Flex shares could have potential in the weeks and months to come.
How Does FLEX Stack Up to the Competition?
Shares of FLEX have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is KLA Corporation (KLAC). KLAC has a Zacks Rank of # 2 (Buy) and a Value Score of B, a Growth Score of B, and a Momentum Score of F.
Earnings were strong last quarter. KLA Corporation beat our consensus estimate by 6.49%, and for the current fiscal year, KLAC is expected to post earnings of $23.34 per share on revenue of $9.72 billion.
Shares of KLA Corporation have gained 7.5% over the past month, and currently trade at a forward P/E of 25.07X and a P/CF of 20.14X.
The Electronics - Miscellaneous Products industry may rank in the bottom 60% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for FLEX and KLAC, even beyond their own solid fundamental situation.
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
Flex Ltd. (FLEX) : Free Stock Analysis Report
KLA Corporation (KLAC) : 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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A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level. KLA Corporation beat our consensus estimate by 6.49%, and for the current fiscal year, KLAC is expected to post earnings of $23.34 per share on revenue of $9.72 billion. 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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In its last earnings report on October 25, 2023, Flex reported EPS of $0.68 versus consensus estimate of $0.58 while it missed the consensus revenue estimate by 0.61%. In terms of its value breakdown, the stock currently trades at 11.3X current fiscal year EPS estimates, which is not in-line with the peer industry average of 18.5X. Click to get this free report Flex Ltd. (FLEX) : Free Stock Analysis Report KLA Corporation (KLAC) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Zacks Rank We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Flex passes the test. Click to get this free report Flex Ltd. (FLEX) : Free Stock Analysis Report KLA Corporation (KLAC) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Flex has a Value Score of A. One industry peer that looks good is KLA Corporation (KLAC). Be First to New Top 10 Stocks >> Want the latest recommendations from Zacks Investment Research?
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d5687c1f-ba2f-4024-a42a-51dce09b72c3
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711405.0
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2023-12-15 00:00:00 UTC
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Virco Manufacturing Corporation (VIRC) Soars to 52-Week High, Time to Cash Out?
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DCOMP
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https://www.nasdaq.com/articles/virco-manufacturing-corporation-virc-soars-to-52-week-high-time-to-cash-out
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nan
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nan
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Shares of Virco Manufacturing Corporation (VIRC) have been strong performers lately, with the stock up 66.4% over the past month. The stock hit a new 52-week high of $10.88 in the previous session. Virco Manufacturing Corporation has gained 132.3% since the start of the year compared to the 18.1% move for the Zacks Consumer Discretionary sector and the 6.1% return for the Zacks Furniture industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on December 8, 2023, Virco Manufacturing Corporation reported EPS of $0.62 versus consensus estimate of $0.39.
For the current fiscal year, Virco Manufacturing Corporation is expected to post earnings of $1.35 per share on $267.3 million in revenues. This represents a 32.35% change in EPS on a 15.68% change in revenues. For the next fiscal year, the company is expected to earn $1.72 per share on $289 million in revenues. This represents a year-over-year change of 27.41% and 8.12%, respectively.
Valuation Metrics
Virco Manufacturing Corporation may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Virco Manufacturing Corporation has a Value Score of A. The stock's Growth and Momentum Scores are A and D, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 7.8X current fiscal year EPS estimates, which is not in-line with the peer industry average of 15.1X. On a trailing cash flow basis, the stock currently trades at 7.9X versus its peer group's average of 7.4X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Virco Manufacturing Corporation currently has a Zacks Rank of #1 (Strong Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Virco Manufacturing Corporation passes the test. Thus, it seems as though Virco Manufacturing Corporation shares could have potential in the weeks and months to come.
How Does VIRC Stack Up to the Competition?
Shares of VIRC have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Hooker Furnishings Corp. (HOFT). HOFT has a Zacks Rank of # 1 (Strong Buy) and a Value Score of B, a Growth Score of A, and a Momentum Score of A.
Earnings were strong last quarter. Hooker Furnishings Corp. beat our consensus estimate by 150%, and for the current fiscal year, HOFT is expected to post earnings of $2.08 per share on revenue of $459.72 million.
Shares of Hooker Furnishings Corp. have gained 39.7% over the past month, and currently trade at a forward P/E of 17.64X and a P/CF of 12.14X.
The Furniture industry is in the top 32% of all the industries we have in our universe, so it looks like there are some nice tailwinds for VIRC and HOFT, even beyond their own solid fundamental situation.
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
Virco Manufacturing Corporation (VIRC) : Free Stock Analysis Report
Hooker Furnishings Corp. (HOFT) : 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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Fortunately, Virco Manufacturing Corporation currently has a Zacks Rank of #1 (Strong Buy) thanks to favorable earnings estimate revisions from covering analysts. Hooker Furnishings Corp. beat our consensus estimate by 150%, and for the current fiscal year, HOFT is expected to post earnings of $2.08 per share on revenue of $459.72 million. 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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In its last earnings report on December 8, 2023, Virco Manufacturing Corporation reported EPS of $0.62 versus consensus estimate of $0.39. For the current fiscal year, Virco Manufacturing Corporation is expected to post earnings of $1.35 per share on $267.3 million in revenues. Click to get this free report Virco Manufacturing Corporation (VIRC) : Free Stock Analysis Report Hooker Furnishings Corp. (HOFT) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Shares of Virco Manufacturing Corporation (VIRC) have been strong performers lately, with the stock up 66.4% over the past month. Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Virco Manufacturing Corporation passes the test. Click to get this free report Virco Manufacturing Corporation (VIRC) : Free Stock Analysis Report Hooker Furnishings Corp. (HOFT) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Shares of Virco Manufacturing Corporation (VIRC) have been strong performers lately, with the stock up 66.4% over the past month. Valuation Metrics Virco Manufacturing Corporation may be at a 52-week high right now, but what might the future hold for the stock? Virco Manufacturing Corporation has a Value Score of A.
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afd64a8f-ca04-4b6c-ab72-36d7f657aede
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711406.0
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2023-12-15 00:00:00 UTC
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Datadog, Inc. (DDOG) Hit a 52 Week High, Can the Run Continue?
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DCOMP
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https://www.nasdaq.com/articles/datadog-inc.-ddog-hit-a-52-week-high-can-the-run-continue
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nan
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nan
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Shares of Datadog (DDOG) have been strong performers lately, with the stock up 11.9% over the past month. The stock hit a new 52-week high of $123.82 in the previous session. Datadog has gained 66.8% since the start of the year compared to the 50% move for the Zacks Computer and Technology sector and the 65.6% return for the Zacks Internet - Software industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on November 7, 2023, Datadog reported EPS of $0.45 versus consensus estimate of $0.34 while it beat the consensus revenue estimate by 4.63%.
For the current fiscal year, Datadog is expected to post earnings of $1.53 per share on $2.11 billion in revenues. This represents a 56.12% change in EPS on a 25.69% change in revenues. For the next fiscal year, the company is expected to earn $1.71 per share on $2.55 billion in revenues. This represents a year-over-year change of 11.86% and 21.32%, respectively.
Valuation Metrics
Datadog may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Datadog has a Value Score of F. The stock's Growth and Momentum Scores are A and C, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 80.2X current fiscal year EPS estimates, which is a premium to the peer industry average of 40.2X. On a trailing cash flow basis, the stock currently trades at 1241.9X versus its peer group's average of 18.1X. Additionally, the stock has a PEG ratio of 2.81. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Datadog currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Datadog passes the test. Thus, it seems as though Datadog shares could have a bit more room to run in the near term.
How Does DDOG Stack Up to the Competition?
Shares of DDOG have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is BlackLine (BL). BL has a Zacks Rank of # 2 (Buy) and a Value Score of D, a Growth Score of A, and a Momentum Score of C.
Earnings were strong last quarter. BlackLine beat our consensus estimate by 41.67%, and for the current fiscal year, BL is expected to post earnings of $1.98 per share on revenue of $588.52 million.
Shares of BlackLine have gained 10.1% over the past month, and currently trade at a forward P/E of 34.4X and a P/CF of 366.87X.
The Internet - Software industry is in the top 11% of all the industries we have in our universe, so it looks like there are some nice tailwinds for DDOG and BL, even beyond their own solid fundamental situation.
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
Datadog, Inc. (DDOG) : Free Stock Analysis Report
BlackLine (BL) : 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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Fortunately, Datadog currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts. BlackLine beat our consensus estimate by 41.67%, and for the current fiscal year, BL is expected to post earnings of $1.98 per share on revenue of $588.52 million. 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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In its last earnings report on November 7, 2023, Datadog reported EPS of $0.45 versus consensus estimate of $0.34 while it beat the consensus revenue estimate by 4.63%. In terms of its value breakdown, the stock currently trades at 80.2X current fiscal year EPS estimates, which is a premium to the peer industry average of 40.2X. Click to get this free report Datadog, Inc. (DDOG) : Free Stock Analysis Report BlackLine (BL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Zacks Rank We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Datadog passes the test. Click to get this free report Datadog, Inc. (DDOG) : Free Stock Analysis Report BlackLine (BL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Shares of Datadog (DDOG) have been strong performers lately, with the stock up 11.9% over the past month. In its last earnings report on November 7, 2023, Datadog reported EPS of $0.45 versus consensus estimate of $0.34 while it beat the consensus revenue estimate by 4.63%. In terms of its value breakdown, the stock currently trades at 80.2X current fiscal year EPS estimates, which is a premium to the peer industry average of 40.2X.
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7d7012e8-ebd1-4b36-9509-45d43518663e
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711407.0
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2023-12-15 00:00:00 UTC
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Xerox Holdings Corporation (XRX) Soars to 52-Week High, Time to Cash Out?
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DCOMP
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https://www.nasdaq.com/articles/xerox-holdings-corporation-xrx-soars-to-52-week-high-time-to-cash-out
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nan
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nan
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Have you been paying attention to shares of Xerox Holdings Corporation (XRX)? Shares have been on the move with the stock up 32.8% over the past month. The stock hit a new 52-week high of $18.36 in the previous session. Xerox Holdings Corporation has gained 25.3% since the start of the year compared to the 14.2% move for the Zacks Industrial Products sector and the 20.3% return for the Zacks Office Supplies industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on October 24, 2023, Xerox Holdings Corporation reported EPS of $0.46 versus consensus estimate of $0.34.
For the current fiscal year, Xerox Holdings Corporation is expected to post earnings of $1.90 per share on $6.91 billion in revenues. This represents a 69.64% change in EPS on a -2.71% change in revenues. For the next fiscal year, the company is expected to earn $1.77 per share on $6.6 billion in revenues. This represents a year-over-year change of -6.84% and -4.53%, respectively.
Valuation Metrics
Xerox Holdings Corporation may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Xerox Holdings Corporation has a Value Score of A. The stock's Growth and Momentum Scores are C and D, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 9.6X current fiscal year EPS estimates, which is a premium to the peer industry average of 9.2X. On a trailing cash flow basis, the stock currently trades at 3.3X versus its peer group's average of 9.8X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Xerox Holdings Corporation currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Xerox Holdings Corporation meets the list of requirements. Thus, it seems as though Xerox Holdings Corporation shares could have a bit more room to run in the near term.
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
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
Xerox Holdings Corporation (XRX) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For the current fiscal year, Xerox Holdings Corporation is expected to post earnings of $1.90 per share on $6.91 billion in revenues. Fortunately, Xerox Holdings Corporation currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts. 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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In its last earnings report on October 24, 2023, Xerox Holdings Corporation reported EPS of $0.46 versus consensus estimate of $0.34. In terms of its value breakdown, the stock currently trades at 9.6X current fiscal year EPS estimates, which is a premium to the peer industry average of 9.2X. Click to get this free report Xerox Holdings Corporation (XRX) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Valuation Metrics Xerox Holdings Corporation may be at a 52-week high right now, but what might the future hold for the stock? Zacks Rank We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Xerox Holdings Corporation meets the list of requirements.
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For the current fiscal year, Xerox Holdings Corporation is expected to post earnings of $1.90 per share on $6.91 billion in revenues. Valuation Metrics Xerox Holdings Corporation may be at a 52-week high right now, but what might the future hold for the stock? Xerox Holdings Corporation has a Value Score of A.
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496ce2e3-52f7-4313-9aa6-a8d87d0ab08b
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711408.0
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2023-12-15 00:00:00 UTC
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Is This the Perfect Buffett Stock That Berkshire Hathaway Doesn't Own?
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DCOMP
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https://www.nasdaq.com/articles/is-this-the-perfect-buffett-stock-that-berkshire-hathaway-doesnt-own
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nan
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nan
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If you're investing in stocks, there's a really high chance you've thought to yourself at least once, "Boy, I'd sure like to invest like Warren Buffett." The great news is that his formula for selecting winning stocks isn't rocket science. In fact, it's pretty straightforward.
Let's zero in on a few factors Buffett looks at, learn and apply them, and while we're at it let's find an incredible Buffett-like stock that he doesn't own. Hint: it's Ferrari (NYSE: RACE).
Racing ahead
Ferrari owns competitive advantages, an incredible brand, and leads rivals in many investing metrics. In fact, one key metric Buffett looks at when considering investments is return on equity (ROE). ROE essentially gauges the company's ability to make profits and gives investors insight into the core strength of the business -- the higher the ROE, the better.
Preferably, a company will demonstrate strong return on equity over many years, and top rivals within the same industry. Here's where Ferrari starts racing ahead, as you can see in the graph below.
RACE Return on Equity data by YCharts
Luxury margins
Another factor Buffett considers in an investment is profit margins, or in this case earnings before interest and taxes (EBIT). First, you want to see healthy margins and preferably higher than competitors, but you also want to see growing margins that suggest a competitive advantage.
Ferrari checks both boxes as it thumps competitors and reaches near luxury margins -- which is unheard of in the automotive industry -- and has grown consistently.
RACE EBIT Margin (TTM) data by YCharts
Unique is an "X" factor
Buffett believes that a company with products or services that can be easily replicated or substituted is far risker than a company with unique products. That's where Ferrari separates itself within the automotive industry because it has brand image, racing heritage, and exclusivity that automakers simply can't match or replicate anytime soon.
On average, Ferrari vehicles start in the hundreds of thousands of dollars, but beyond its high price tag is the fact that Ferrari keeps a lid on its global sales, to ensure that demand always exceeds supply. In fact, in 2022 Ferrari set a new sales record and still only delivered 13,221 vehicles -- compare that to mainstream global auto companies that sell millions annually. This pricing power and exclusivity is what helps drive its margins and ROE higher.
Low-risk investment
Buffett prefers lower-risk investments, but that can come in multiple forms. An investment can be low-risk if it's trading at rock-bottom prices, or it can be low-risk if the company is more resilient to unfavorable factors. Ferrari is low-risk for many reasons, but here are two: shipment distribution and an ultra-rich target market.
Let's first consider that Ferrari's ultra-rich consumer is less impacted by economic downturns. Ferrari's resiliency to economic downturns can be seen in its financials; let's take the recent COVID-19 pandemic results as an example. Ferrari's 2020 revenue and EBIT declined 8.1% and 22%, respectively, while Ford Motor Company's declined a deeper 22% and 56%.
Now let's look at Ferrari's shipment breakdown, as the company is well balanced and doesn't rely on any specific region for financial strength. Ferrari's Europe, Middle East, and Africa (EMEA) segment generated 40% of shipments during the third quarter, while Americas contributed another 32%, and its combined Asia-Pacific (APAC) and China, Hong Kong, and Taiwan markets accounted for another 28%.
Further, as the broader industry drives toward electric vehicles, Ferrari's shipments were split nearly down the middle with internal combustion engine (ICE) accounting for 49% of shipments, while hybrids was 51%, also during the third quarter.
Lastly, as a bonus reason, consider that Ferrari's global footprint is a fraction of mainstream automakers because it produces so few vehicles. That lower overhead requires a less capital/debt intensive operation, and that shows in Ferrari's debt-to-equity ratio, which gauges a company's need for debt to finance operations or expansion.
RACE Financial Debt to Equity (Quarterly) data by YCharts
Why doesn't Buffett own Ferrari?
Ultimately, Ferrari owns many competitive advantages its rivals can't compete with, and it also lacks many of the downsides that typically come with owning automotive stocks. So, if Ferrari checks many boxes on what Buffett looks for in a long-term investment, why doesn't Berkshire Hathaway own billions of its stock? The simplest answer is likely the correct answer, and that's because Ferrari rarely trades at a discount.
RACE PE Ratio data by YCharts
As you can see, with Ferrari trading at a price-to-earnings ratio of roughly 52, you're paying a premium for this high-end automaker. In fact, Ferrari has only flirted with a price-to-earnings ratio of around 20 once or twice since its initial public offering. Compare that to say Ford or General Motors, which have often traded at a paltry single-digit price-to-earnings ratio for years.
One day this may or may not be the next Warren Buffett stock, but keep your eyes on Ferrari in case it ever dips into value territory. Ferrari checks all the other boxes, and will likely continue to make investors happy over the long haul.
Should you invest $1,000 in Ferrari right now?
Before you buy stock in Ferrari, 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 Ferrari 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
Daniel Miller has positions in Ford Motor Company and General Motors. The Motley Fool has positions in and recommends Tesla and Volkswagen Ag. The Motley Fool recommends Bayerische Motoren Werke Aktiengesellschaft and 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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That's where Ferrari separates itself within the automotive industry because it has brand image, racing heritage, and exclusivity that automakers simply can't match or replicate anytime soon. In fact, in 2022 Ferrari set a new sales record and still only delivered 13,221 vehicles -- compare that to mainstream global auto companies that sell millions annually. Ferrari's Europe, Middle East, and Africa (EMEA) segment generated 40% of shipments during the third quarter, while Americas contributed another 32%, and its combined Asia-Pacific (APAC) and China, Hong Kong, and Taiwan markets accounted for another 28%.
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Racing ahead Ferrari owns competitive advantages, an incredible brand, and leads rivals in many investing metrics. RACE Return on Equity data by YCharts Luxury margins Another factor Buffett considers in an investment is profit margins, or in this case earnings before interest and taxes (EBIT). RACE Financial Debt to Equity (Quarterly) data by YCharts Why doesn't Buffett own Ferrari?
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On average, Ferrari vehicles start in the hundreds of thousands of dollars, but beyond its high price tag is the fact that Ferrari keeps a lid on its global sales, to ensure that demand always exceeds supply. So, if Ferrari checks many boxes on what Buffett looks for in a long-term investment, why doesn't Berkshire Hathaway own billions of its stock? Before you buy stock in Ferrari, 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 Ferrari wasn't one of them.
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In fact, one key metric Buffett looks at when considering investments is return on equity (ROE). RACE Return on Equity data by YCharts Luxury margins Another factor Buffett considers in an investment is profit margins, or in this case earnings before interest and taxes (EBIT). RACE Financial Debt to Equity (Quarterly) data by YCharts Why doesn't Buffett own Ferrari?
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2c409b2f-0119-4038-9a85-6cc595dd674b
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711409.0
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2023-12-15 00:00:00 UTC
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Boise Cascade (BCC) Hits 52-Week High: What's Driving It?
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DCOMP
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https://www.nasdaq.com/articles/boise-cascade-bcc-hits-52-week-high%3A-whats-driving-it
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nan
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nan
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Boise Cascade Company BCC reached a new 52-week high of $120.76 on Dec 15. The stock pulled back to end the trading session at $117.31, down 1.6% from the previous day’s closing price of $119.24.
On Dec 14, 2023, the Goldman Sachs Group increased its price target on Boise Cascade from $100 to $114, which boosted investors’ sentiments. Also, the recent decision of the Federal Reserve to maintain a steady interest benchmark between 5.25% and 5.5% bodes well for the overall housing industry as well as related industry.
Furthermore, the company’s strong and flexible balance sheet positions it to facilitate reinvestment and growth strategies while also rewarding its shareholders. This was witnessed from Boise Cascade’s special dividend announcement on Oct 26, 2023. Per the announcement, the company paid a special dividend of $5 per share on Dec 15, 2023, to shareholders of record on Dec 1.
Stock Performance
This Zacks Rank #3 (Hold) stock has surged 65.7% in the past year, outperforming the Zacks Building Products - Wood industry’s 20.7% growth, the Zacks Construction sector’s increase of 48.2% and S&P 500 Index’s rise of 24%.
Image Source: Zacks Investment Research
Earnings estimates for 2023 have moved up to $12.13 per share from $11.80 per share in the past 60 days. Despite the macroeconomic uncertainties, the stock portrays a positive trend, indicating robust fundamentals and elevating the expectation of outperformance in the near term on the back of evolving new residential construction demand.
Let’s delve deeper into the factors that are substantiating BCC’s growth potential and recent run.
Increase in Single-Family Housing Starts: In the current market scenario, due to the low availability of already existing houses along with high mortgage rates, the demand for housing construction has increased. This has sparked the demand for single-family housing, which is benefiting Boise Cascade. During the third quarter of 2023, the company witnessed a 7% year-over-year increase in single-family housing starts, benefiting its top line as it is the key demand driver for its sales. For 2024, the company has optimistic views about its market position as the near-term demand for new residential construction is evolving.
Strategic Buyouts: Boise Cascade has been focusing on its acquisition strategies to strengthen its distribution facilities and product portfolio. On Oct 2, 2023, the company acquired Brockway-Smith Company (“BROSCO”), a leading wholesale distributor specializing in doors and millwork, through cash on hand transaction of $168 million. This acquisition included BROSCO’s two full-scale distribution centers in Hatfield, MA and Portland, ME. This inclusion in BCC’s Building Materials Distribution (“BMD”) segment will enhance and expand its product offering to its customer base in the Northeast.
Furthermore, on May 9, 2023, the company’s BMD segment acquired a five-acre site in Birmingham, AL. This acquisition will assist the company in fulfilling the growing demand for its engineered wood products along with specialty building products and commodities.
Impressive Earnings Surprise History: Boise Cascade showcases an impressive earnings surprise history. The company reported an earnings beat in 18 of the trailing 21 quarters, thus solidifying its growth trends. Furthermore, in third-quarter 2023, earnings topped the Zacks Consensus Estimate by 3.2%. The company also delivered a trailing four-quarter earnings surprise of 20.31%, on average.
Key Picks
Here are some better-ranked stocks from the same 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 47.4% 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 prior-year 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 219.8% 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 13.5% 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 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
EMCOR Group, Inc. (EME) : Free Stock Analysis Report
Willdan Group, Inc. (WLDN) : Free Stock Analysis Report
Boise Cascade, L.L.C. (BCC) : 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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Despite the macroeconomic uncertainties, the stock portrays a positive trend, indicating robust fundamentals and elevating the expectation of outperformance in the near term on the back of evolving new residential construction demand. During the third quarter of 2023, the company witnessed a 7% year-over-year increase in single-family housing starts, benefiting its top line as it is the key demand driver for its sales. This inclusion in BCC’s Building Materials Distribution (“BMD”) segment will enhance and expand its product offering to its customer base in the Northeast.
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Stock Performance This Zacks Rank #3 (Hold) stock has surged 65.7% in the past year, outperforming the Zacks Building Products - Wood industry’s 20.7% growth, the Zacks Construction sector’s increase of 48.2% and S&P 500 Index’s rise of 24%. Click to get this free report EMCOR Group, Inc. (EME) : Free Stock Analysis Report Willdan Group, Inc. (WLDN) : Free Stock Analysis Report Boise Cascade, L.L.C. (BCC) : 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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Stock Performance This Zacks Rank #3 (Hold) stock has surged 65.7% in the past year, outperforming the Zacks Building Products - Wood industry’s 20.7% growth, the Zacks Construction sector’s increase of 48.2% and S&P 500 Index’s rise of 24%. Click to get this free report EMCOR Group, Inc. (EME) : Free Stock Analysis Report Willdan Group, Inc. (WLDN) : Free Stock Analysis Report Boise Cascade, L.L.C. (BCC) : 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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Stock Performance This Zacks Rank #3 (Hold) stock has surged 65.7% in the past year, outperforming the Zacks Building Products - Wood industry’s 20.7% growth, the Zacks Construction sector’s increase of 48.2% and S&P 500 Index’s rise of 24%. Strategic Buyouts: Boise Cascade has been focusing on its acquisition strategies to strengthen its distribution facilities and product portfolio. EMCOR Group, Inc. EME presently sports a Zacks Rank #1 (Strong Buy).
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711410.0
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2023-12-15 00:00:00 UTC
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Cigna's (CI) Medicare Advantage Unit Draws Acquisition Interest
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https://www.nasdaq.com/articles/cignas-ci-medicare-advantage-unit-draws-acquisition-interest
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The Cigna Group’s CI medical coverage division for individuals aged 65 and above is reportedly attracting acquisition interest from companies such as Health Care Service Corp. and Elevance Health, Inc. ELV, according to Bloomberg sources. The final bids for Cigna's Medicare Advantage unit are expected next week, with the potential to generate more than $3 billion from the divestiture.
CI's Medicare Advantage business is projected to incur losses in the current year and the following year, per Bloomberg. The business, which has a comparatively smaller enrollment of 600,000 people as of March, is facing growing competition. In a recent press release, Cigna announced its intention to evaluate bolt-on acquisition opportunities and explore "value-enhancing divestitures."
This strategic decision follows the reported breakdown of Cigna’s merger plan with Humana Inc. HUM due to disagreements over pricing. According to a Wall Street Journal report, the companies had been considering a cash-and-stock deal, generating both investor interest and concerns. The complexities involved, including anticipated regulatory scrutiny, contributed to the challenges in reaching an agreement.
Healthcare economist Craig Garthwaite from Northwestern University, as reported by Reuters, highlighted that divesting Cigna's Medicare Advantage business could have reduced operational overlap between the involved companies, potentially improving the chances of a successful merger with HUM. The divestment is expected to assist Cigna in streamlining its operations and freeing up capital, thereby allowing the company to focus on its more profitable assets and boost shareholder value.
Cigna recently disclosed an increase of $10 billion to its share buyback program. The company plans to allocate the majority of its discretionary cash flow in 2024 towards share repurchases. With the goal of buying back at least $5 billion worth of shares by the end of the first half of 2024, Cigna is signaling a commitment to returning value to its shareholders through this substantial buyback initiative.
Price Performance
Shares of Cigna have gained 8.1% in the past year compared with the 14.2% rise of the industry it belongs to.
Image Source: Zacks Investment Research
Zacks Rank and A Key Pick
Cigna currently has a Zacks Rank #3 (Hold).
A better-ranked stock in the medical space is Centene Corporation CNC, which carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Centene’s 2023 earnings indicates a 15.2% year-over-year increase to $6.66 per share. It has witnessed nine upward estimate revisions over the past 60 days against no movement in the opposite direction. The consensus mark for CNC’s 2023 revenues indicates 4.4% growth from a year ago.
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
Humana Inc. (HUM) : Free Stock Analysis Report
Cigna Group (CI) : Free Stock Analysis Report
Centene Corporation (CNC) : Free Stock Analysis Report
Elevance Health, Inc. (ELV) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Healthcare economist Craig Garthwaite from Northwestern University, as reported by Reuters, highlighted that divesting Cigna's Medicare Advantage business could have reduced operational overlap between the involved companies, potentially improving the chances of a successful merger with HUM. The divestment is expected to assist Cigna in streamlining its operations and freeing up capital, thereby allowing the company to focus on its more profitable assets and boost shareholder value. With the goal of buying back at least $5 billion worth of shares by the end of the first half of 2024, Cigna is signaling a commitment to returning value to its shareholders through this substantial buyback initiative.
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Healthcare economist Craig Garthwaite from Northwestern University, as reported by Reuters, highlighted that divesting Cigna's Medicare Advantage business could have reduced operational overlap between the involved companies, potentially improving the chances of a successful merger with HUM. Image Source: Zacks Investment Research Zacks Rank and A Key Pick Cigna currently has a Zacks Rank #3 (Hold). Click to get this free report Humana Inc. (HUM) : Free Stock Analysis Report Cigna Group (CI) : Free Stock Analysis Report Centene Corporation (CNC) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Healthcare economist Craig Garthwaite from Northwestern University, as reported by Reuters, highlighted that divesting Cigna's Medicare Advantage business could have reduced operational overlap between the involved companies, potentially improving the chances of a successful merger with HUM. Image Source: Zacks Investment Research Zacks Rank and A Key Pick Cigna currently has a Zacks Rank #3 (Hold). Click to get this free report Humana Inc. (HUM) : Free Stock Analysis Report Cigna Group (CI) : Free Stock Analysis Report Centene Corporation (CNC) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here.
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CI's Medicare Advantage business is projected to incur losses in the current year and the following year, per Bloomberg. Image Source: Zacks Investment Research Zacks Rank and A Key Pick Cigna currently has a Zacks Rank #3 (Hold). The Zacks Consensus Estimate for Centene’s 2023 earnings indicates a 15.2% year-over-year increase to $6.66 per share.
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711411.0
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2023-12-15 00:00:00 UTC
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How to Maximize Your Retirement Portfolio with These Top-Ranked Dividend Stocks
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https://www.nasdaq.com/articles/how-to-maximize-your-retirement-portfolio-with-these-top-ranked-dividend-stocks-114
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Strange but true: seniors fear death less than running out of money in retirement.
And retirees have good reason to be worried about making their assets last. People are living longer, so that money has to cover a longer period. Making matters worse, income generated using tried-and-true retirement planning approaches may not cover expenses these days. That means seniors must dip into principal to meet living expenses.
In today's economic environment, traditional income investments are not working.
For many years, bonds or other fixed-income assets could produce the yield needed to provide solid income for retirement needs. However, these yields have dwindled over time: 10-year Treasury bond rates in the late 1990s were around 6.50%, but today, that rate is a thing of the past, with a slim likelihood of rates making a comeback in the foreseeable future.
The effect of this drop in rates is substantial: over 20 years, the change in yield for a $1 million investment in 10-year Treasuries is over $1 million.
In addition to the considerable drop in bond yields, today's retirees are nervous about their future Social Security benefits. Because of certain demographic factors, it's been estimated that the funds that pay the Social Security benefits will run out of money in 2035.
Unfortunately, it looks like the two traditional sources of retirement income - bonds and Social Security - may not be able to adequately meet the needs of present and future retirees. But what if there was another option that could provide a steady, reliable source of income in retirement?
Invest in Dividend Stocks
Dividend-paying stocks from low-risk, high-quality companies are a smart way to generate steady and reliable attractive income streams to replace low risk, low yielding Treasury and bond options.
Look for stocks that have paid steady, increasing dividends for years (or decades), and have not cut their dividends even during recessions.
A rule of thumb for finding solid income-producing stocks is to seek those that average 3% dividend yield, and positive yearly dividend growth. These stocks can help combat inflation by boosting dividends over time.
Here are three dividend-paying stocks retirees should consider for their nest egg portfolio.
AES (AES) is currently shelling out a dividend of $0.17 per share, with a dividend yield of 3.43%. This compares to the Utility - Electric Power industry's yield of 3.57% and the S&P 500's yield of 1.64%. The company's annualized dividend growth in the past year was 5%. Check AES (AES) dividend history here>>>
Brixmor Property (BRX) is paying out a dividend of $0.27 per share at the moment, with a dividend yield of 4.42% compared to the REIT and Equity Trust - Retail industry's yield of 4.25% and the S&P 500's yield. The annualized dividend growth of the company was 8.33% over the past year. Check Brixmor Property (BRX) dividend history here>>>
Currently paying a dividend of $0.76 per share, Heartland BancCorp. (HLAN) has a dividend yield of 3.52%. This is compared to the Banks - Midwest industry's yield of 3.07% and the S&P 500's current yield. Annualized dividend growth for the company in the past year was 10%. Check Heartland BancCorp. (HLAN) dividend history here>>>
But aren't stocks generally more risky than bonds?
It is true that stocks, as an asset class, carry more risk than bonds, but high-quality dividend stocks not only have the ability to produce income growth over time but more importantly, can also reduce your overall portfolio volatility relative to the broader stock market.
An upside to adding dividend stocks to your retirement portfolio: they can help lessen the effects of inflation, since many dividend-paying companies (especially blue chip stocks) generally increase their dividends over time.
Thinking about dividend-focused mutual funds or ETFs? Watch out for fees.
If you're thinking, "I want to invest in a dividend-focused ETF or mutual fund," make sure to do your homework. It's important to know that some mutual funds and specialized ETFs charge high fees, which may diminish your dividend gains or income and thwart the overall objective of this investment strategy. If you do want to invest in fund, research well to identify the best-quality dividend funds with the least charges.
Bottom Line
Pursuing a dividend investing strategy can help protect your retirement portfolio. Whether you choose to invest in stocks or through low-fee mutual funds or ETFs, this approach can potentially help you achieve a more secure and enjoyable retirement.
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
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
The AES Corporation (AES) : Free Stock Analysis Report
Brixmor Property Group Inc. (BRX) : Free Stock Analysis Report
Heartland BancCorp. (HLAN) : 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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Unfortunately, it looks like the two traditional sources of retirement income - bonds and Social Security - may not be able to adequately meet the needs of present and future retirees. It's important to know that some mutual funds and specialized ETFs charge high fees, which may diminish your dividend gains or income and thwart the overall objective of this investment strategy. Whether you choose to invest in stocks or through low-fee mutual funds or ETFs, this approach can potentially help you achieve a more secure and enjoyable retirement.
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Invest in Dividend Stocks Dividend-paying stocks from low-risk, high-quality companies are a smart way to generate steady and reliable attractive income streams to replace low risk, low yielding Treasury and bond options. Check Brixmor Property (BRX) dividend history here>>> Currently paying a dividend of $0.76 per share, Heartland BancCorp. Click to get this free report The AES Corporation (AES) : Free Stock Analysis Report Brixmor Property Group Inc. (BRX) : Free Stock Analysis Report Heartland BancCorp.
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Invest in Dividend Stocks Dividend-paying stocks from low-risk, high-quality companies are a smart way to generate steady and reliable attractive income streams to replace low risk, low yielding Treasury and bond options. Check AES (AES) dividend history here>>> Brixmor Property (BRX) is paying out a dividend of $0.27 per share at the moment, with a dividend yield of 4.42% compared to the REIT and Equity Trust - Retail industry's yield of 4.25% and the S&P 500's yield. It is true that stocks, as an asset class, carry more risk than bonds, but high-quality dividend stocks not only have the ability to produce income growth over time but more importantly, can also reduce your overall portfolio volatility relative to the broader stock market.
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Check AES (AES) dividend history here>>> Brixmor Property (BRX) is paying out a dividend of $0.27 per share at the moment, with a dividend yield of 4.42% compared to the REIT and Equity Trust - Retail industry's yield of 4.25% and the S&P 500's yield. An upside to adding dividend stocks to your retirement portfolio: they can help lessen the effects of inflation, since many dividend-paying companies (especially blue chip stocks) generally increase their dividends over time. It's important to know that some mutual funds and specialized ETFs charge high fees, which may diminish your dividend gains or income and thwart the overall objective of this investment strategy.
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eb2b9db6-b23d-448e-87ad-f03399016dff
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711412.0
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2023-12-15 00:00:00 UTC
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Nokia (NOK) Achieves Enhanced Flexibility in Cloud RAN Solution
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https://www.nasdaq.com/articles/nokia-nok-achieves-enhanced-flexibility-in-cloud-ran-solution
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Nokia Corporation NOK recently confirmed the successful completion of the Cloud RAN (Radio Access Network) trial with In-Line accelerator architecture. This trial took place at Nokia’s Open Cloud RAN innovation center in collaboration with Hewlett Packard Enterprise HPE and Arm Holdings plc ARM, a U.K.-based semiconductor and software design company.
Hardware acceleration technology plays a crucial role in Cloud RAN systems. In-Line and Look-Aside are the primary options for Cloud RAN acceleration. The In-Line accelerator ensures greater system scalability, significantly lower power consumption and seamless compatibility across multiple silicon architectures. This approach is aligned with Nokia’s anyRAN strategy.
Many operators are increasingly adopting a hybrid network approach, a mix of architectures, such as a combination of Purpose-Built RAN and Cloud RAN. Nokia’s In-Line accelerator stands out by providing the necessary performance parity and interoperability between Cloud and Classic RAN. It gives operators the flexibility to choose their preferred server designs, along with their choice of cloud infrastructure software and hardware stacks.
During the trial, an end-to-end Cloud RAN L3 data call was completed. Data calls refer to the establishment of a connection for information transmission between devices. The process involved the utilization of HPE ProLiant RL series servers and Ampere Computing's Arm-based general-purpose processor in conjunction with Nokia's Cloud RAN technology. The HPE ProLiant RL series servers provide next generation compute performance for a wide range of cloud native use cases. The test was conducted over the air utilizing the most common 5G capacity band used worldwide with the help of Nokia’s industry-leading Airscale baseband portfolio.
The trial effectively showcased the flexibility of Nokia's Cloud RAN technology and demonstrated the viability of its anyRAN vision. These advancements will support network operators in managing the challenges associated with rising energy costs, improving efficiency and matching the demand of an evolving 5G landscape. This, in turn, is likely to strengthen Nokia’s market position and augment its long-term revenues.
Nokia is well-positioned for the ongoing technology cycle, given the strength of its end-to-end portfolio. Its installed base of high-capacity AirScale products, which enables customers to upgrade to 5G quickly, is growing fast. It is driving the transition of global enterprises into smart virtual networks by creating a single network for all services, converging mobile and fixed broadband, IP routing and optical networks with the software and services to manage them. Leveraging state-of-the-art technology, it is transforming the way people and things communicate and connect with each other.
NOK aims to create new business and licensing opportunities in the consumer ecosystem. It facilitates its customers to move away from an economy-of-scale network operating model to demand-driven operations by offering easy programmability and flexible automation needed to support dynamic operations, reduce complexity and improve efficiency. It seeks to expand its business into targeted, high-growth and high-margin vertical markets to address growth opportunities beyond its traditional primary markets.
The stock has declined 29.1% in the past year against the industry’s growth of 10%.
Image Source: Zacks Investment Research
Nokia currently has a Zacks Rank #4 (Sell).
Stocks to Consider
Model N Inc MODN, carrying a Zacks Rank #2 (Buy) at present, delivered a trailing four-quarter average earnings surprise of 20.78%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
MODN provides revenue management solutions for life sciences and technology companies, including applications for configuration, price, quote, rebate management and regulatory compliance. In the last reported quarter, it delivered an earnings surprise of 3.33%.
Arista Networks, Inc. ANET, carrying a Zacks Rank #2, 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 cloud architecture and enhance their cloud experience. Arista delivered a trailing four-quarter average earnings surprise of 12%.
ANET holds a leadership position in 100-gigabit Ethernet switching share in port for the high-speed data center segment. Arista is gaining market traction in 200 and 400-gigabit high-performance switching products and is well-positioned for healthy growth in the data-driven cloud networking business with proactive platforms and predictive operations.
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
Nokia Corporation (NOK) : Free Stock Analysis Report
ARM Holdings PLC Sponsored ADR (ARM) : Free Stock Analysis Report
Model N, Inc. (MODN) : Free Stock Analysis Report
Arista Networks, Inc. (ANET) : Free Stock Analysis Report
Hewlett Packard Enterprise Company (HPE) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Nokia Corporation NOK recently confirmed the successful completion of the Cloud RAN (Radio Access Network) trial with In-Line accelerator architecture. The process involved the utilization of HPE ProLiant RL series servers and Ampere Computing's Arm-based general-purpose processor in conjunction with Nokia's Cloud RAN technology. Arista is gaining market traction in 200 and 400-gigabit high-performance switching products and is well-positioned for healthy growth in the data-driven cloud networking business with proactive platforms and predictive operations.
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This trial took place at Nokia’s Open Cloud RAN innovation center in collaboration with Hewlett Packard Enterprise HPE and Arm Holdings plc ARM, a U.K.-based semiconductor and software design company. Stocks to Consider Model N Inc MODN, carrying a Zacks Rank #2 (Buy) at present, delivered a trailing four-quarter average earnings surprise of 20.78%. Click to get this free report Nokia Corporation (NOK) : Free Stock Analysis Report ARM Holdings PLC Sponsored ADR (ARM) : Free Stock Analysis Report Model N, Inc. (MODN) : Free Stock Analysis Report Arista Networks, Inc. (ANET) : Free Stock Analysis Report Hewlett Packard Enterprise Company (HPE) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Nokia Corporation NOK recently confirmed the successful completion of the Cloud RAN (Radio Access Network) trial with In-Line accelerator architecture. This trial took place at Nokia’s Open Cloud RAN innovation center in collaboration with Hewlett Packard Enterprise HPE and Arm Holdings plc ARM, a U.K.-based semiconductor and software design company. Click to get this free report Nokia Corporation (NOK) : Free Stock Analysis Report ARM Holdings PLC Sponsored ADR (ARM) : Free Stock Analysis Report Model N, Inc. (MODN) : Free Stock Analysis Report Arista Networks, Inc. (ANET) : Free Stock Analysis Report Hewlett Packard Enterprise Company (HPE) : Free Stock Analysis Report To read this article on Zacks.com click here.
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During the trial, an end-to-end Cloud RAN L3 data call was completed. It seeks to expand its business into targeted, high-growth and high-margin vertical markets to address growth opportunities beyond its traditional primary markets. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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2023-12-15 00:00:00 UTC
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Company News for Dec 18, 2023
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https://www.nasdaq.com/articles/company-news-for-dec-18-2023
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Shares of Ameren Corporation AEE lost 4.4% on real estate becoming one of the biggest losing sectors of the day.
Scholastic Corporation’s SCHL shares plunged 11.6% after reporting second-quarter fiscal 2024 earnings of $2.45 per share, missing the Zacks Consensus Estimate of $2.65.
Shares of Intel Corporation INTC jumped 2.2% as the AI-led semiconductor boom sustained.
Shares of Costco Wholesale Corporation COST advanced 4.5% after reporting first-quarter fiscal 2024 earnings of $3.48 per share, beating the Zacks Consensus Estimate of $3.45.
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
Intel Corporation (INTC) : Free Stock Analysis Report
Ameren Corporation (AEE) : Free Stock Analysis Report
Costco Wholesale Corporation (COST) : Free Stock Analysis Report
Scholastic Corporation (SCHL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of Ameren Corporation AEE lost 4.4% on real estate becoming one of the biggest losing sectors of the day. Shares of Intel Corporation INTC jumped 2.2% as the AI-led semiconductor boom sustained. 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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Scholastic Corporation’s SCHL shares plunged 11.6% after reporting second-quarter fiscal 2024 earnings of $2.45 per share, missing the Zacks Consensus Estimate of $2.65. Shares of Costco Wholesale Corporation COST advanced 4.5% after reporting first-quarter fiscal 2024 earnings of $3.48 per share, beating the Zacks Consensus Estimate of $3.45. Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report Ameren Corporation (AEE) : Free Stock Analysis Report Costco Wholesale Corporation (COST) : Free Stock Analysis Report Scholastic Corporation (SCHL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Scholastic Corporation’s SCHL shares plunged 11.6% after reporting second-quarter fiscal 2024 earnings of $2.45 per share, missing the Zacks Consensus Estimate of $2.65. Shares of Costco Wholesale Corporation COST advanced 4.5% after reporting first-quarter fiscal 2024 earnings of $3.48 per share, beating the Zacks Consensus Estimate of $3.45. Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report Ameren Corporation (AEE) : Free Stock Analysis Report Costco Wholesale Corporation (COST) : Free Stock Analysis Report Scholastic Corporation (SCHL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Shares of Ameren Corporation AEE lost 4.4% on real estate becoming one of the biggest losing sectors of the day. Scholastic Corporation’s SCHL shares plunged 11.6% after reporting second-quarter fiscal 2024 earnings of $2.45 per share, missing the Zacks Consensus Estimate of $2.65. Be First to New Top 10 Stocks >> Want the latest recommendations from Zacks Investment Research?
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711414.0
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2023-12-15 00:00:00 UTC
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Consumer Sector Update for 12/18/2023: UL, SCVL, RGS, XLP, XLY
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DCOMP
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https://www.nasdaq.com/articles/consumer-sector-update-for-12-18-2023%3A-ul-scvl-rgs-xlp-xly
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Consumer stocks were advancing premarket Monday as the Consumer Staples Select Sector SPDR Fund (XLP) was 0.5% higher while the Consumer Discretionary Select Sector SPDR Fund (XLY) was up 0.2% recently.
Unilever (UL) was slightly advancing after saying it received a binding offer from private equity firm Yellow Wood Partners to acquire its beauty and personal care division Elida Beauty.
Shoe Carnival (SCVL) was marginally higher after saying its board approved a $50 million share buyback program effective Jan. 1, 2024.
Regis (RGS) said it intends to appeal the New York Stock Exchange's decision to start delisting its common shares. Regis was flat in recent premarket activity.
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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Unilever (UL) was slightly advancing after saying it received a binding offer from private equity firm Yellow Wood Partners to acquire its beauty and personal care division Elida Beauty. Shoe Carnival (SCVL) was marginally higher after saying its board approved a $50 million share buyback program effective Jan. 1, 2024. Regis (RGS) said it intends to appeal the New York Stock Exchange's decision to start delisting its common shares.
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Consumer stocks were advancing premarket Monday as the Consumer Staples Select Sector SPDR Fund (XLP) was 0.5% higher while the Consumer Discretionary Select Sector SPDR Fund (XLY) was up 0.2% recently. Regis was flat in recent premarket activity. 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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Consumer stocks were advancing premarket Monday as the Consumer Staples Select Sector SPDR Fund (XLP) was 0.5% higher while the Consumer Discretionary Select Sector SPDR Fund (XLY) was up 0.2% recently. Unilever (UL) was slightly advancing after saying it received a binding offer from private equity firm Yellow Wood Partners to acquire its beauty and personal care division Elida Beauty. 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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Consumer stocks were advancing premarket Monday as the Consumer Staples Select Sector SPDR Fund (XLP) was 0.5% higher while the Consumer Discretionary Select Sector SPDR Fund (XLY) was up 0.2% recently. Unilever (UL) was slightly advancing after saying it received a binding offer from private equity firm Yellow Wood Partners to acquire its beauty and personal care division Elida Beauty. Shoe Carnival (SCVL) was marginally higher after saying its board approved a $50 million share buyback program effective Jan. 1, 2024.
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711415.0
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2023-12-15 00:00:00 UTC
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Health Care Sector Update for 12/18/2023: ARQT, ILMN, VTRS, XLV, IBB
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DCOMP
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https://www.nasdaq.com/articles/health-care-sector-update-for-12-18-2023%3A-arqt-ilmn-vtrs-xlv-ibb
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nan
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Health care stocks were mixed pre-bell Monday with the Health Care Select Sector SPDR Fund (XLV) gaining 0.3% and the iShares Biotechnology ETF (IBB) recently inactive.
Arcutis Biotherapeutics (ARQT) gained nearly 30% after saying the US Food and Drug Administration approved its new drug application to treat seborrheic dermatitis in individuals aged nine years and older.
Illumina (ILMN) was up by nearly 5% after saying it will sell cancer test maker Grail as a US appeals court on Friday ordered the Federal Trade Commission to open a new review of the company's purchase of Grail.
Viatris (VTRS) said late Friday it appointed Theodora Mistras as chief financial officer, effective March 1. Viatris was marginally advancing in recent premarket activity.
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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Health care stocks were mixed pre-bell Monday with the Health Care Select Sector SPDR Fund (XLV) gaining 0.3% and the iShares Biotechnology ETF (IBB) recently inactive. Illumina (ILMN) was up by nearly 5% after saying it will sell cancer test maker Grail as a US appeals court on Friday ordered the Federal Trade Commission to open a new review of the company's purchase of Grail. Viatris (VTRS) said late Friday it appointed Theodora Mistras as chief financial officer, effective March 1.
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Health care stocks were mixed pre-bell Monday with the Health Care Select Sector SPDR Fund (XLV) gaining 0.3% and the iShares Biotechnology ETF (IBB) recently inactive. Viatris (VTRS) said late Friday it appointed Theodora Mistras as chief financial officer, effective March 1. 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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Health care stocks were mixed pre-bell Monday with the Health Care Select Sector SPDR Fund (XLV) gaining 0.3% and the iShares Biotechnology ETF (IBB) recently inactive. Illumina (ILMN) was up by nearly 5% after saying it will sell cancer test maker Grail as a US appeals court on Friday ordered the Federal Trade Commission to open a new review of the company's purchase of Grail. 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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Health care stocks were mixed pre-bell Monday with the Health Care Select Sector SPDR Fund (XLV) gaining 0.3% and the iShares Biotechnology ETF (IBB) recently inactive. Arcutis Biotherapeutics (ARQT) gained nearly 30% after saying the US Food and Drug Administration approved its new drug application to treat seborrheic dermatitis in individuals aged nine years and older. Illumina (ILMN) was up by nearly 5% after saying it will sell cancer test maker Grail as a US appeals court on Friday ordered the Federal Trade Commission to open a new review of the company's purchase of Grail.
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711416.0
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2023-12-15 00:00:00 UTC
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Should Investors Buy PayPal Stock for 2024?
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DCOMP
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https://www.nasdaq.com/articles/should-investors-buy-paypal-stock-for-2024
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nan
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Fool.com contributor Parkev Tatevosian reviews PayPal's (NASDAQ: PYPL) prospects for 2024 and lets you know if the stock is a buy right now.
*Stock prices used were the afternoon prices of Dec. 15, 2023. The video was published on Dec. 17, 2023.
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
Parkev Tatevosian, CFA has positions in PayPal. The Motley Fool has positions in and recommends PayPal. The Motley Fool recommends the following options: short December 2023 $67.50 puts on PayPal. 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 reviews PayPal's (NASDAQ: PYPL) prospects for 2024 and lets you know if the stock is a buy right now. The 10 stocks that made the cut could produce monster returns in the coming years. If you choose to subscribe through his link, he will earn some extra money that supports his channel.
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Fool.com contributor Parkev Tatevosian reviews PayPal's (NASDAQ: PYPL) prospects for 2024 and lets you know if the stock is a buy 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. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Parkev Tatevosian, CFA has positions in PayPal.
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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. 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 Parkev Tatevosian, CFA has positions in PayPal.
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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. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Parkev Tatevosian, CFA has positions in PayPal. The Motley Fool has positions in and recommends PayPal.
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711417.0
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2023-12-15 00:00:00 UTC
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These Are the 3 Hottest Biopharma Trends of 2024. Should You Invest?
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DCOMP
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https://www.nasdaq.com/articles/these-are-the-3-hottest-biopharma-trends-of-2024.-should-you-invest
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nan
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As with all fields, biopharma goes through its share of trends and fads, and investors who can position themselves properly ahead of time tend to make the most money. But, as is true with all hype cycles, many opportunities carry a significant amount of risk, and there are bound to be a few duds mixed in with the winners.
Let's explore each of the most important biopharma trends of the coming year -- starting with the most investable, and ending with the riskiest -- so that you'll know where to look for opportunities that are right for you.
1. The GLP-1RA gold rush
When it comes to common afflictions in the U.S., there aren't too many that are more prevalent than being overweight. Similarly, diabetes is a major population-level burden, with nearly 12% of Americans affected.
And that's why a class of drugs called glucagon-like peptide-1 receptor agonists (GLP-1RAs) is raking in billions and billions of dollars in sales, with many more billions on the way in 2024 and beyond.
You have doubtlessly heard of the GLP-1RA drugs made by Novo Nordisk (NYSE: NVO) like Ozempic and Wegovy, which are based on the same molecule and are approved to treat type 2 diabetes and obesity, respectively.
Eli Lilly (NYSE: LLY) also makes a pair of newer GLP-1RA medicines called Mounjaro and Zepbound, which are also two different formulations of the same drug. According to Global Market Insights, the market for those medicines was worth more than $22 billion in 2022, and it's expected to grow to roughly $56 billion by 2032.
So there's a massive incentive for drug developers to try to commercialize new products in the segment, and over time these therapies are certainly going to help a lot more people than they do today. Biotechs like Structure Therapeutics are scrambling to get their mid-stage candidates through their clinical trials and out the door, as are many others.
For the moment, demand is so hot that neither Novo Nordisk nor Eli Lilly can manufacture enough of their candidates to capture all of their addressable market. Both businesses are investing billions in scaling up their output.
At the same time, there's a flurry of research activity documenting the possible future uses of the GLP-1RAs outside of diabetes and obesity in highly lucrative indications like reducing heart disease risk and even treating addiction. So if you're wondering whether it's too late to invest in one of the relevant companies, the answer is a definitive no.
2. A Cambrian explosion of antibody-drug conjugates
Roughly 550 million years ago, in what's known in natural history as the Cambrian explosion, the then-primitive multicellular life forms in Earth's oceans experienced an unprecedented period of diversification and increasing complexity that saw the first iterations of some of the aquatic invertebrate animals we still see today.
Right now, we're seeing a sort of Cambrian explosion in drug development. One promising class of medicines -- called antibody-drug conjugates (ADCs) -- is seeing dramatically increased diversity, complexity, and interest from major drugmakers. ADCs have been around for a couple of decades already, and there are at least 14 of them approved for sale, each of which treats various cancers.
Last year, 57 new ADC programs entered phase 1 trials, 90% more than in 2021. This year, Pfizer (NYSE: PFE), AstraZeneca (NASDAQ: AZN), AbbVie, Merck, and Bristol Myers Squibb have all made major acquisitions intended to bolster their ADC pipelines with deal sizes ranging in the tens of millions of dollars to the tens of billions. Markets and Markets, a research group, estimates that the market for the medicines will reach $20 billion by 2028.
ADCs aren't going away, and in 2024 it's highly likely that there will be a lot more business development activity in the space, not to mention an abundance of experimentation with variations on the modality. If you're curious about making an investment, there's more than one good option to choose from, so dig in.
3. The rise of artificial intelligence-driven drug discovery
Artificial intelligence (AI) is one of the most-discussed trends of 2023, and in 2024, that's practically guaranteed to continue, especially in the arena of AI-driven drug development. Companies like Recursion Pharmaceuticals (NASDAQ: RXRX), Schrodinger (NASDAQ: SDGR) and even Nvidia are positioning themselves as valuable collaborators to pharma businesses that need to find quality leads for new therapy programs.
The idea is that by using AI to churn through vast quantities of data describing molecular interactions, disease pathology, and genomics, among many other data sources, it should be possible to identify approaches for new medicines that are more likely to succeed in clinical trials than with other drug discovery methods. At best, using AI in that capacity could slash development costs, reduce failure rates, and even shrink timelines from discovery to approval and commercialization.
So far, while interest in the segment is high, there aren't any actual case studies of successes or proof that the entire endeavor is worthwhile. But that will likely come with time. Invest with care, as the field is still in its speculative days.
Should you invest $1,000 in Novo Nordisk right now?
Before you buy stock in Novo Nordisk, 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 Novo Nordisk 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
Alex Carchidi has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bristol Myers Squibb, Merck, Nvidia, and Pfizer. The Motley Fool recommends AstraZeneca Plc and Novo Nordisk. 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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You have doubtlessly heard of the GLP-1RA drugs made by Novo Nordisk (NYSE: NVO) like Ozempic and Wegovy, which are based on the same molecule and are approved to treat type 2 diabetes and obesity, respectively. At the same time, there's a flurry of research activity documenting the possible future uses of the GLP-1RAs outside of diabetes and obesity in highly lucrative indications like reducing heart disease risk and even treating addiction. One promising class of medicines -- called antibody-drug conjugates (ADCs) -- is seeing dramatically increased diversity, complexity, and interest from major drugmakers.
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This year, Pfizer (NYSE: PFE), AstraZeneca (NASDAQ: AZN), AbbVie, Merck, and Bristol Myers Squibb have all made major acquisitions intended to bolster their ADC pipelines with deal sizes ranging in the tens of millions of dollars to the tens of billions. Before you buy stock in Novo Nordisk, 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 Novo Nordisk wasn't one of them. The Motley Fool has positions in and recommends Bristol Myers Squibb, Merck, Nvidia, and Pfizer.
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This year, Pfizer (NYSE: PFE), AstraZeneca (NASDAQ: AZN), AbbVie, Merck, and Bristol Myers Squibb have all made major acquisitions intended to bolster their ADC pipelines with deal sizes ranging in the tens of millions of dollars to the tens of billions. Before you buy stock in Novo Nordisk, 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 Novo Nordisk wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Alex Carchidi has no position in any of the stocks mentioned.
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And that's why a class of drugs called glucagon-like peptide-1 receptor agonists (GLP-1RAs) is raking in billions and billions of dollars in sales, with many more billions on the way in 2024 and beyond. Should you invest $1,000 in Novo Nordisk right now? Before you buy stock in Novo Nordisk, 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 Novo Nordisk wasn't one of them.
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711418.0
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2023-12-15 00:00:00 UTC
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Top 3 Reasons NOT to Buy Tesla Stock
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https://www.nasdaq.com/articles/top-3-reasons-not-to-buy-tesla-stock
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nan
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Tesla's (NASDAQ: TSLA) stock is up 135% in 2023, but the company's performance doesn't match the stock. Margins are down, FSD continues to be a year away, and billions are being bet on products that will take years to be proven out.
In this video, Travis Hoium covers the reasons not to buy Tesla's stock.
*Stock prices used were end-of-day prices of Dec. 15, 2023. The video was published on Dec. 17, 2023.
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 11, 2023
Travis Hoium has positions in General Motors. The Motley Fool has positions in and recommends 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. 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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In this video, Travis Hoium covers the reasons not to buy Tesla's stock. After all, the newsletter they have run for two decades, Motley Fool Stock Advisor, has more than tripled the market. If you choose to subscribe through their link they will earn some extra money that supports their channel.
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After all, the newsletter they have run for two decades, Motley Fool Stock Advisor, has more than tripled the market. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Travis Hoium has positions in General Motors. The Motley Fool recommends General Motors and recommends the following options: long January 2025 $25 calls on General Motors.
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Tesla's (NASDAQ: TSLA) stock is up 135% in 2023, but the company's performance doesn't match the stock. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Travis Hoium has positions in General Motors. The Motley Fool recommends General Motors and recommends the following options: long January 2025 $25 calls on General Motors.
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In this video, Travis Hoium covers the reasons not to buy Tesla's stock. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Travis Hoium has positions in General Motors. The Motley Fool has positions in and recommends Tesla.
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a26b36f4-c67d-42d0-8fd2-ef96d6b71a59
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711419.0
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2023-12-15 00:00:00 UTC
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The 3 Most Undervalued Fintech Stocks to Buy in December
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https://www.nasdaq.com/articles/the-3-most-undervalued-fintech-stocks-to-buy-in-december
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Fintech stocks represent companies that have built and continue to build payment platforms. The financial space continues to evolve away from traditional fiat money and toward more digital innovation. The space is characterized by annual growth rates that should continue at approximately 14% through 2030.
The expectation of strong growth should be enough to continue to draw investors into the sector. Fintech stocks have experienced quite a bit of volatility in 2023. however, the market and the broader economy continue to stabilize. That will be a strong signal for investors, especially those who seek undervalued investments in fintech.
So, with this context in mind, here are the best and undervalued fintech stocks to buy for December.
MercadoLibre (MELI)
Source: shutterstock.com/ZinetroN
MercadoLibre (NASDAQ:MELI) has gotten much attention over the last several years while emerging as Latin America’s e-commerce and fintech champion. The stock continues to have room to grow after a strong 2023 that has seen its shares rise rapidly in value.
Mercado Libre’s largest markets are Argentina, Brazil, and Mexico. The company offers e-commerce and payments across 18 countries overall. Although MercadoLibre is best known as an e-commerce company, its payments platform, Mercado Pago, is very large. In the third quarter, the company’s payments volume increased by 121.3%, reaching $47.3 billion.
Mercado Pago also offers payment systems that are similar to products like Venmo, which our customers may be more familiar with. MercadoLibre’s overall growth is simply impressive. Revenues grew by more than 69% during the most recent period. As interest rates fall into 2024, it’s very reasonable to expect that MELI shares will only strengthen as a growth stock. Whether investors consider Mercado Libre for e-commerce or fintech, it provides much to like.
Adyen (ADYEY)
Source: shutterstock.com/whiteMocca
Adyen (OTCMKTS:ADYEY), like MercadoLibre, is likely to be relatively unknown to U.S. investors because it isn’t a U.S.-based company. The Netherlands-based payments firm has a strong European presence And a footprint that extends into Africa, Latin America, and Asia.
The stock rebounded quickly after falling dramatically between August and early November. Currently, it is fully priced based on the consensus target of analysts. However, the high target price suggests that there is more than a 30% potential return from this point.
Adyen continues to grow at a quick rate. In the third quarter, revenue increased by 22% on payments volumes that increased by 21%. I mentioned that the company has a strong presence in the European market. However, Adyen Is highly integrated with global American businesses as well. For example, every time a digital transaction is made at McDonald’s (NYSE:MCD), the company receives a fee.
Block (SQ)
Source: Shutterstock
Block (NYSE:SQ) has grown to encompass several other payment businesses, becoming one of the leading fintech stocks.
The company rebranded as Block to encompass a broader strategy that includes cryptocurrency, among other businesses. Block continues to be primarily fueled by its point-of-sale business known as Square and Cash App. Square accounted for $899 million of profit in the third quarter, while cash app accounted for $984 million. The company continues to have a strong presence, footprint, and growth that reached 21% during the period.
At the same time, investors continue to be wary of Block because it is so volatile. One of the reasons that it continues to be so volatile is that despite its large presence and strong profits, it continues to struggle and produces losses. In the third quarter, those losses reached $29 million. That said, SQ remains a fintech stock to buy in December, especially considering the expected rate cuts in 2024.
On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks. Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.
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The post The 3 Most Undervalued Fintech Stocks to Buy in December 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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The Netherlands-based payments firm has a strong European presence And a footprint that extends into Africa, Latin America, and Asia. Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing. 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 The 3 Most Undervalued Fintech Stocks to Buy in December appeared first on InvestorPlace.
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MercadoLibre (MELI) Source: shutterstock.com/ZinetroN MercadoLibre (NASDAQ:MELI) has gotten much attention over the last several years while emerging as Latin America’s e-commerce and fintech champion. Block (SQ) Source: Shutterstock Block (NYSE:SQ) has grown to encompass several other payment businesses, becoming one of the leading fintech stocks. Square accounted for $899 million of profit in the third quarter, while cash app accounted for $984 million.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Fintech stocks represent companies that have built and continue to build payment platforms. Block (SQ) Source: Shutterstock Block (NYSE:SQ) has grown to encompass several other payment businesses, becoming one of the leading fintech stocks. 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 The 3 Most Undervalued Fintech Stocks to Buy in December appeared first on InvestorPlace.
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Although MercadoLibre is best known as an e-commerce company, its payments platform, Mercado Pago, is very large. The company continues to have a strong presence, footprint, and growth that reached 21% during the period. At the same time, investors continue to be wary of Block because it is so volatile.
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2023-12-15 00:00:00 UTC
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Structure's diabetes pill misses weight-loss expectations in mid-stage trial
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https://www.nasdaq.com/articles/structures-diabetes-pill-misses-weight-loss-expectations-in-mid-stage-trial
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By Michael Erman
Dec 18 (Reuters) - Structure Therapeutics' GPCR.O diabetes pill missed market expectations for weight loss in a mid-stage trial and also fell short of results from a similar treatment from rival Eli Lilly, sending the biotech company's shares tumbling 45% on Monday.
The pill - called GSBR-1290 by Structure - also helped obese patients reduce their weight by nearly 5% after eight weeks.
It belongs to the same class of diabetes and obesity treatments as Novo Nordisk's NOVOb.CO Wegovy and Ozempic and Lilly's LLY.N Mounjaro and Zepbound, known as GLP-1 agonists .
These four treatments, which bring in billions of dollars in revenue to the drugmakers, are injections.
Before the data was published, Jefferies analyst Roger Song had said he was expecting 6%-7% weight loss relative to a placebo and 1.3% reduction in HbA1c levels in diabetes patients.
Structure Therapeutics said the Phase 2 study in 94 patients was divided into a cohort with obesity and a group with type 2 diabetes. The obese patients saw an average weight loss of 4.74% versus patients who received a placebo after eight weeks.
Their actual weight loss was 5.6% - patients on placebo had a 0.8% weight loss during the period.
Patients with diabetes showed reduction of 1.01% to 1.02% in hemoglobin A1c (HbA1c) and 3.3% to 3.5% in weight at 12 weeks, relative to those who received a placebo.
"We're clearly showing a very, very good trend downwards in terms of weight loss," Structure Chief Executive Raymond Stevens said in an interview.
"At 12 weeks, we feel like we will be very comparable in terms of efficacy" to Lilly's orfoglipron - another GLP-1 pill in development.
However, while the drug is "clearly benefiting patients, efficacy was technically behind orforglipron", said BMO Capital Markets analyst Evan Seigerman.
Lilly's drug was shown to reduce HbA1c levels by 1%-1.4%, and cut weight by 4.6%-7.1% after 12 weeks when adjusted for a placebo in diabetes patients, according to Seigerman.
GLP-1s, originally developed for type 2 diabetes, mimic the action of the GLP-1 hormone to regulate blood sugar, slow digestion and suppress appetite.
Stevens said he was pleased with the drug's safety and tolerability profile. Only one of the 60 participants who received GSBR-1290 discontinued the study due to adverse events related to the drug. The most common side effects were nausea and vomiting.
Pfizer PFE.N recently decided to stop developing a twice-daily obesity pill after most patients dropped out of its mid-stage trial with high rates of side effects.
Structure said it expects full 12-week results from the obesity cohort in the second quarter of 2024. It plans to launch a larger mid-stage study in the second half of next year and a late-stage trial in 2026.
Companies developing GLP-1 drugs have been hot targets for acquisitions and licensing deals.
Recent deals include Roche's acquisition of Carmot Therapeutics CRMO.O for $2.7 billion upfront and AstraZeneca's AZN.L purchase of rights to an experimental pill from China's Eccogene.
"We need a strategic partner for the Phase 3 and commercialization," Stevens said. "We have been getting inbound interest - we're going to evaluate those very carefully, and choose the right partner that we believe that we can work with the best to really develop this drug."
Shares of Structure Therapeutics were trading at $32.40 before the bell.
(Reporting by Michael Erman in New York, additional reporting by Mariam Sunny in Bengaluru; Editing by Christopher Cushing and Arun Koyyur)
((michael.erman@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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By Michael Erman Dec 18 (Reuters) - Structure Therapeutics' GPCR.O diabetes pill missed market expectations for weight loss in a mid-stage trial and also fell short of results from a similar treatment from rival Eli Lilly, sending the biotech company's shares tumbling 45% on Monday. Pfizer PFE.N recently decided to stop developing a twice-daily obesity pill after most patients dropped out of its mid-stage trial with high rates of side effects. Recent deals include Roche's acquisition of Carmot Therapeutics CRMO.O for $2.7 billion upfront and AstraZeneca's AZN.L purchase of rights to an experimental pill from China's Eccogene.
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By Michael Erman Dec 18 (Reuters) - Structure Therapeutics' GPCR.O diabetes pill missed market expectations for weight loss in a mid-stage trial and also fell short of results from a similar treatment from rival Eli Lilly, sending the biotech company's shares tumbling 45% on Monday. Before the data was published, Jefferies analyst Roger Song had said he was expecting 6%-7% weight loss relative to a placebo and 1.3% reduction in HbA1c levels in diabetes patients. The obese patients saw an average weight loss of 4.74% versus patients who received a placebo after eight weeks.
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By Michael Erman Dec 18 (Reuters) - Structure Therapeutics' GPCR.O diabetes pill missed market expectations for weight loss in a mid-stage trial and also fell short of results from a similar treatment from rival Eli Lilly, sending the biotech company's shares tumbling 45% on Monday. The obese patients saw an average weight loss of 4.74% versus patients who received a placebo after eight weeks. Lilly's drug was shown to reduce HbA1c levels by 1%-1.4%, and cut weight by 4.6%-7.1% after 12 weeks when adjusted for a placebo in diabetes patients, according to Seigerman.
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Structure Therapeutics said the Phase 2 study in 94 patients was divided into a cohort with obesity and a group with type 2 diabetes. Patients with diabetes showed reduction of 1.01% to 1.02% in hemoglobin A1c (HbA1c) and 3.3% to 3.5% in weight at 12 weeks, relative to those who received a placebo. Lilly's drug was shown to reduce HbA1c levels by 1%-1.4%, and cut weight by 4.6%-7.1% after 12 weeks when adjusted for a placebo in diabetes patients, according to Seigerman.
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ce88d9ad-31e5-45c7-aaea-5239ef79374b
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711421.0
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2023-12-15 00:00:00 UTC
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Reasons to Add Textron (TXT) to Your Portfolio Right Now
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DCOMP
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https://www.nasdaq.com/articles/reasons-to-add-textron-txt-to-your-portfolio-right-now-1
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nan
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Textron Inc. TXT is an aerospace defense company that manufactures aircraft, automotive engine components and industrial tools. The company’s stable financial position and well-diversified product portfolio make it a strong candidate for investment in the defense space.
Let’s focus on the factors that make this Zacks Rank #2 (Buy) stock a strong investment pick at the moment.
Growth Projections & Surprise History
Textron’s long-term (three-to-five-year) earnings growth expectation is 11.7%.
The Zacks Consensus Estimate for TXT’s 2023 earnings per share (EPS) is pegged at $5.48. The bottom-line estimates have moved up 3.4% in the past 90 days.
The Zacks Consensus Estimate for 2023 sales is pegged at $13.7 billion, indicating growth of 6.4% from the 2022 reported figure.
TXT delivered a trailing four-quarter average earnings surprise of 14.13%.
Debt Position
The total debt-to-capital of TXT is 33.32%, better than 46.78% registered by the industry. This indicates that the company has less debt than its peers, which is a positive sign.
TXT has a current ratio of 1.88, better than the industry’s average of 1.12. This implies that the company has sufficient financial capability to pay its short-term debt obligations.
Strong Backlog and Innovations
The solid demand for Textron’s products resulted in a total backlog of $14.53 billion at the end of third-quarter 2023.
Textron has been continuously innovating products to expand its footprint in the aerospace market. During third-quarter 2023, Textron Aviation launched the newest Cessna Citation business jet, the Cessna Citation CJ3 Gen2. Bell is also developing a new rotorcraft, the Bell 360 Invictus, for the U.S. Army's Future Attack Reconnaissance Aircraft Competitive Prototype Program.
Return on Equity (ROE)
ROE is a measure of a company’s financial performance and shows how it is utilizing its funds. TXT’s current ROE is 14.7%, better than the industry’s average of 10.55%, which indicates that the company is utilizing its funds more efficiently than its peers.
Price Performance
In the past year, TXT’s shares have rallied 14.5% against the industry’s average decline of 7.1%.
Image Source: Zacks Investment Research
Other Stocks to Consider
A few other top-ranked stocks in the same sector are Virgin Galactic Holdings Inc. SPCE, Leidos Holdings Inc. LDOS and TransDigm Group Inc. TDG. Each stock carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
SPCE boasts a long-term earnings growth rate of 40.3%. The Zacks Consensus Estimate for 2023 sales is pegged at $6.75 million, implying an improvement of 192.1% from the 2022 reported figure.
LDOS boasts a long-term earnings growth rate of 8.1%. The Zacks Consensus Estimate for 2023 sales is pegged at $15.25 billion, implying a year-over-year improvement of 5.9%.
TDG boasts a long-term earnings growth rate of 16.3%. The Zacks Consensus Estimate for fiscal 2024 sales is pegged at $7.59 billion, implying a year-over-year improvement of 15.2% from the fiscal 2023 reported figure.
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
Textron Inc. (TXT) : Free Stock Analysis Report
Transdigm Group Incorporated (TDG) : Free Stock Analysis Report
Leidos Holdings, Inc. (LDOS) : Free Stock Analysis Report
Virgin Galactic Holdings, Inc. (SPCE) : 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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Textron Inc. TXT is an aerospace defense company that manufactures aircraft, automotive engine components and industrial tools. The company’s stable financial position and well-diversified product portfolio make it a strong candidate for investment in the defense space. 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 Other Stocks to Consider A few other top-ranked stocks in the same sector are Virgin Galactic Holdings Inc. SPCE, Leidos Holdings Inc. LDOS and TransDigm Group Inc. TDG. The Zacks Consensus Estimate for fiscal 2024 sales is pegged at $7.59 billion, implying a year-over-year improvement of 15.2% from the fiscal 2023 reported figure. Click to get this free report Textron Inc. (TXT) : Free Stock Analysis Report Transdigm Group Incorporated (TDG) : Free Stock Analysis Report Leidos Holdings, Inc. (LDOS) : Free Stock Analysis Report Virgin Galactic Holdings, Inc. (SPCE) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Image Source: Zacks Investment Research Other Stocks to Consider A few other top-ranked stocks in the same sector are Virgin Galactic Holdings Inc. SPCE, Leidos Holdings Inc. LDOS and TransDigm Group Inc. TDG. The Zacks Consensus Estimate for fiscal 2024 sales is pegged at $7.59 billion, implying a year-over-year improvement of 15.2% from the fiscal 2023 reported figure. Click to get this free report Textron Inc. (TXT) : Free Stock Analysis Report Transdigm Group Incorporated (TDG) : Free Stock Analysis Report Leidos Holdings, Inc. (LDOS) : Free Stock Analysis Report Virgin Galactic Holdings, Inc. (SPCE) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The Zacks Consensus Estimate for TXT’s 2023 earnings per share (EPS) is pegged at $5.48. The Zacks Consensus Estimate for 2023 sales is pegged at $13.7 billion, indicating growth of 6.4% from the 2022 reported figure. Be First to New Top 10 Stocks >> Want the latest recommendations from Zacks Investment Research?
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4c49411f-7660-46db-9f4b-91cd5fac2c00
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711422.0
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2023-12-15 00:00:00 UTC
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Stanley Black (SWK) to Sell Infrastructure Business for $760M
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https://www.nasdaq.com/articles/stanley-black-swk-to-sell-infrastructure-business-for-%24760m
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Stanley Black & Decker, Inc. SWK recently entered into a deal to divest its STANLEY Infrastructure (Infrastructure) business to Epiroc AB for a cash amount of $760 million.
As a manufacturer of attachment and handheld hydraulic tools, SWK’s Infrastructure business is likely to generate revenues of approximately $450-$470 million in 2023. Its adjusted EBITDA margin is expected to be in the mid-to-high teens digits in the same period.
The divestment will help Stanley Black to focus on the company’s core businesses while supporting its capital-allocation priorities. The company expects to use the cash proceeds of the transaction, net of modest taxes, to reduce its debt.
As a result of the divestment, SWK expects to incur approximately $100-$150 million of a pre-tax, non-cash charge in 2023.
The Infrastructure business’ results will be included in the continuing operations until the transaction closes. The completion of the deal is conditioned on regulatory approvals and customary closing conditions.
Lately, SWK has been divesting non-core operations to drive growth. In July 2022, the company sold its Security Business to Securitas AB for $3.2 billion. Stanley Black funded its debt reduction from the net proceeds of this sale.
Price Performance
In the past year, SWK stock has gained 31.9% compared with the industry’s 38% increase.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Stanley Black currently carries a Zacks Rank #3 (Hold). Some better-ranked companies from the Industrial Products sector are discussed below:
Flowserve Corporation FLS presently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
FLS delivered a trailing four-quarter average earnings surprise of 27.3%. In the past 60 days, the Zacks Consensus Estimate for Flowserve’s 2023 earnings has increased 2.5%. The stock has risen 36.7% in the past year.
Applied Industrial Technologies, Inc. AIT presently carries a Zacks Rank of 2. It has a trailing four-quarter average earnings surprise of 13.9%.
The consensus estimate for AIT’s fiscal 2024 earnings has increased 3.3% in the past 60 days. Shares of Applied Industrial have jumped 39.8% in the past year.
A. O. Smith Corporation AOS currently carries a Zacks Rank of 2. The company delivered a trailing four-quarter average earnings surprise of 14%.
In the past 60 days, the consensus estimate for A. O. Smith’s 2023 earnings has improved 4.4%. The stock has risen 41.2% in the past year.
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
Be First to New Top 10 Stocks >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Stanley Black & Decker, Inc. (SWK) : Free Stock Analysis Report
A. O. Smith Corporation (AOS) : Free Stock Analysis Report
Flowserve Corporation (FLS) : Free Stock Analysis Report
Applied Industrial Technologies, Inc. (AIT) : 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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As a manufacturer of attachment and handheld hydraulic tools, SWK’s Infrastructure business is likely to generate revenues of approximately $450-$470 million in 2023. As a result of the divestment, SWK expects to incur approximately $100-$150 million of a pre-tax, non-cash charge in 2023. 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 Zacks Rank & Stocks to Consider Stanley Black currently carries a Zacks Rank #3 (Hold). Flowserve Corporation FLS presently carries a Zacks Rank #2 (Buy). Click to get this free report Stanley Black & Decker, Inc. (SWK) : Free Stock Analysis Report A. O. Smith Corporation (AOS) : Free Stock Analysis Report Flowserve Corporation (FLS) : Free Stock Analysis Report Applied Industrial Technologies, Inc. (AIT) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Stanley Black & Decker, Inc. SWK recently entered into a deal to divest its STANLEY Infrastructure (Infrastructure) business to Epiroc AB for a cash amount of $760 million. Image Source: Zacks Investment Research Zacks Rank & Stocks to Consider Stanley Black currently carries a Zacks Rank #3 (Hold). Click to get this free report Stanley Black & Decker, Inc. (SWK) : Free Stock Analysis Report A. O. Smith Corporation (AOS) : Free Stock Analysis Report Flowserve Corporation (FLS) : Free Stock Analysis Report Applied Industrial Technologies, Inc. (AIT) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Stanley Black & Decker, Inc. SWK recently entered into a deal to divest its STANLEY Infrastructure (Infrastructure) business to Epiroc AB for a cash amount of $760 million. The Infrastructure business’ results will be included in the continuing operations until the transaction closes. Image Source: Zacks Investment Research Zacks Rank & Stocks to Consider Stanley Black currently carries a Zacks Rank #3 (Hold).
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7bfd187f-ffc7-4042-91c4-afe510c35c7b
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711423.0
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2023-12-15 00:00:00 UTC
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Comcast's (CMCSA) Xfinity to Elevate Holiday Gaming Experience
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https://www.nasdaq.com/articles/comcasts-cmcsa-xfinity-to-elevate-holiday-gaming-experience
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Comcast’s CMCSA Xfinity 10G Network offers an unparalleled gaming experience. The company recently partnered with the Esports Awards to set a Guinness World Record for the Largest Digital Video Game Display.
Speed is crucial in the realm of gaming. Comcast, the largest gigabit+ Internet provider in the country, pioneered multi-gig symmetrical speeds via a DOCSIS 4.0 connection. This ensures Xfinity customers can swiftly download large game files and enjoy faster gameplay with minimal interruptions.
Reliability is paramount in co-op gaming. Comcast addresses this with the Comcast Octave platform, which optimizes Internet delivery using AI and machine learning. The platform monitors telemetry data on more than 50 million modems every 20 minutes, thus ensuring a more reliable and faster network down to the household level.
Xfinity's latest gateways support WiFi 6E technology, allowing gamers to maintain peak performance even when other household members engage in activities like streaming in 4K or video chatting. With three times the bandwidth, WiFi 6E powers the entire household, eliminating the need for prioritizing online connections.
This is expected to aid Comcast’s total domestic broadband customers in the upcoming quarters.
The Zacks Consensus Estimate for the company’s 2023 total domestic broadband customers is pegged at 32.25 million, indicating year-over-year growth of 0.29%. The consensus mark for earnings is pegged at $3.94 per share, indicating year-over-year growth of 8.24%.
Comcast Corporation Price and Consensus
Comcast Corporation price-consensus-chart | Comcast Corporation Quote
Xfinity Excels as Esports and Gaming Leader
When it comes to gaming, a reliable Internet service that delivers speed while minimizing lag is crucial. This is precisely why serious gamers are turning to the Xfinity 10G Network as their preferred Internet provider. The network has experienced remarkable growth, with gaming consoles connected to it surpassing 37 million in 2022.
The prestigious Tempest Awards, recognizing excellence in the esports and gaming business, crowned Xfinity as the 2023 Brand of the Year. Additionally, Xfinity earned a nomination for Best Endemic Brand, particularly for the launch of the new Xfinity 10G Network during the Super Bowl.
Shares of CMCSA, which currently carries a Zacks Rank #2 (Buy), have returned 27.2% year to date compared with the Zacks Consumer Discretionary sector’s 16.6% rise because it has notable partnerships in the gaming industry. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Xfinity has consistently emphasized its commitment to gaming by partnering with industry leaders such as Twitch, FaZe Clan, IGN and Microsoft’s MSFT Call of Duty to showcase the gaming prowess of the Xfinity 10G Internet.
The partnership with FaZe Clan extends to hosting events like "The Gig," a gaming and music experience in Boston and Atlanta, featuring a top-tier gaming lounge, musical performances and community support through donations to local foundations.
Xfinity's collaboration with Microsoft extends to providing Xfinity Rewards Members with free early access to the Call of Duty Beta, a highly popular reward among members for three consecutive years. This demonstrates Xfinity's dedication to enhancing the gaming experience for its users.
It faces tough competition from players like AT&T T and Verizon Communications VZ in the telecommunications market.
AT&T, a major wireless service provider in North America and a global communications service provider, offers a diverse range of communication and business solutions through its subsidiary and affiliate network. These include wireless services, phone services, data and broadband, Internet access, video streaming, managed networking, wholesale offerings and cloud-based services. Operating as a telecommunication, media and technology company, AT&T provides telephone and Internet services, telecom equipment, wireless communications and managed networking.
Verizon, an American multinational telecommunications conglomerate, is a major player in the digital media sector through its subsidiaries Verizon Media and Oath Inc. While competing with Comcast in telecommunications and media, it's noteworthy that Comcast operates its cell phone service using Verizon's network. In 2021, Verizon set a goal to bring Ultra Wideband 5G to 175 million people between 2022 and 2023. Verizon aims to cover at least 250 million people by the end of 2024, establishing itself as a strong competitor to Comcast in the industry.
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
AT&T Inc. (T) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Verizon Communications Inc. (VZ) : Free Stock Analysis Report
Comcast Corporation (CMCSA) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The company recently partnered with the Esports Awards to set a Guinness World Record for the Largest Digital Video Game Display. Xfinity's latest gateways support WiFi 6E technology, allowing gamers to maintain peak performance even when other household members engage in activities like streaming in 4K or video chatting. Operating as a telecommunication, media and technology company, AT&T provides telephone and Internet services, telecom equipment, wireless communications and managed networking.
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The Zacks Consensus Estimate for the company’s 2023 total domestic broadband customers is pegged at 32.25 million, indicating year-over-year growth of 0.29%. These include wireless services, phone services, data and broadband, Internet access, video streaming, managed networking, wholesale offerings and cloud-based services. Click to get this free report AT&T Inc. (T) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Verizon Communications Inc. (VZ) : Free Stock Analysis Report Comcast Corporation (CMCSA) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Comcast Corporation Price and Consensus Comcast Corporation price-consensus-chart | Comcast Corporation Quote Xfinity Excels as Esports and Gaming Leader When it comes to gaming, a reliable Internet service that delivers speed while minimizing lag is crucial. Xfinity has consistently emphasized its commitment to gaming by partnering with industry leaders such as Twitch, FaZe Clan, IGN and Microsoft’s MSFT Call of Duty to showcase the gaming prowess of the Xfinity 10G Internet. Click to get this free report AT&T Inc. (T) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Verizon Communications Inc. (VZ) : Free Stock Analysis Report Comcast Corporation (CMCSA) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Comcast’s CMCSA Xfinity 10G Network offers an unparalleled gaming experience. Comcast Corporation Price and Consensus Comcast Corporation price-consensus-chart | Comcast Corporation Quote Xfinity Excels as Esports and Gaming Leader When it comes to gaming, a reliable Internet service that delivers speed while minimizing lag is crucial. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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194d4e88-780a-4816-bd58-c3a93e44304c
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711424.0
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2023-12-15 00:00:00 UTC
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Up 43% Since October, Is Peloton Stock Still a Buy?
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DCOMP
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https://www.nasdaq.com/articles/up-43-since-october-is-peloton-stock-still-a-buy
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nan
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Shares of Peloton (NASDAQ: PTON) have jumped 43% in under two months, helped by the market's recovery. But a lot has changed about the company, and the stock could be turning around heading into 2024.
In this video, Travis Hoium covers Peloton's strategy change and how it's positioned for growth 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 Peloton Interactive right now?
Before you buy stock in Peloton Interactive, 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 Peloton Interactive 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 Peloton Interactive. The Motley Fool has positions in and recommends Peloton Interactive. 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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Shares of Peloton (NASDAQ: PTON) have jumped 43% in under two months, helped by the market's recovery. In this video, Travis Hoium covers Peloton's strategy change and how it's positioned for growth in the future. If you choose to subscribe through their link they will earn some extra money that supports their channel.
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In this video, Travis Hoium covers Peloton's strategy change and how it's positioned for growth in the future. Before you buy stock in Peloton Interactive, 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 Peloton Interactive wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Travis Hoium has positions in Peloton Interactive.
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Before you buy stock in Peloton Interactive, 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 Peloton Interactive 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 Peloton Interactive.
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In this video, Travis Hoium covers Peloton's strategy change and how it's positioned for growth in the future. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Travis Hoium has positions in Peloton Interactive. The Motley Fool has positions in and recommends Peloton Interactive.
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7ec12b17-7b3c-4cd8-814d-aeea0ddfbc6e
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711425.0
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2023-12-15 00:00:00 UTC
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Improve Your Retirement Income with These 3 Top-Ranked Dividend Stocks
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DCOMP
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https://www.nasdaq.com/articles/improve-your-retirement-income-with-these-3-top-ranked-dividend-stocks-121
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Strange but true: seniors fear death less than running out of money in retirement.
And unfortunately, even retirees who have built a nest egg have good reason to be concerned - with the traditional approaches to retirement planning, income may no longer cover expenses. That means retirees are dipping into principal to make ends meet, setting up a race against time between dwindling investment balances and longer lifespans.
Your parents' retirement investing plan won't cut it today.
In the past, investors going into retirement could invest in bonds and count on attractive yields to produce steady, reliable income streams to fund a predictable retirement. 10-year Treasury bond rates in the late 1990s hovered around 6.50%, whereas the current rate is much lower.
The effect of this drop in rates is substantial: over 20 years, the change in yield for a $1 million investment in 10-year Treasuries is over $1 million.
In addition to the considerable drop in bond yields, today's retirees are nervous about their future Social Security benefits. Because of certain demographic factors, it's been estimated that the funds that pay the Social Security benefits will run out of money in 2035.
So what can retirees do? You could dramatically reduce your expenses, and go out on a limb hoping your Social Security benefits don't diminish. On the other hand, you could opt for an alternative investment that gives a steady, higher-rate income stream to supplant lessening bond yields.
Invest in Dividend Stocks
We feel that these dividend-paying equities - as long as they are from high-quality, low-risk issuers - can give retirement investors a smart option to replace low-yielding Treasury bonds (or other bonds).
Look for stocks that have paid steady, increasing dividends for years (or decades), and have not cut their dividends even during recessions.
A rule of thumb for finding solid income-producing stocks is to seek those that average 3% dividend yield, and positive yearly dividend growth. These stocks can help combat inflation by boosting dividends over time.
Here are three dividend-paying stocks retirees should consider for their nest egg portfolio.
American Assets Trust (AAT) is currently shelling out a dividend of $0.33 per share, with a dividend yield of 5.74%. This compares to the REIT and Equity Trust - Retail industry's yield of 4.25% and the S&P 500's yield of 1.64%. The company's annualized dividend growth in the past year was 3.13%. Check American Assets Trust (AAT) dividend history here>>>
Axis Capital (AXS) is paying out a dividend of $0.44 per share at the moment, with a dividend yield of 3.25% compared to the Insurance - Property and Casualty industry's yield of 0.17% and the S&P 500's yield. The annualized dividend growth of the company was 2.33% over the past year. Check Axis Capital (AXS) dividend history here>>>
Currently paying a dividend of $0.29 per share, COPT Defense (CDP) has a dividend yield of 4.47%. This is compared to the REIT and Equity Trust - Other industry's yield of 4.01% and the S&P 500's current yield. Annualized dividend growth for the company in the past year was 3.64%. Check COPT Defense (CDP) dividend history here>>>
But aren't stocks generally more risky than bonds?
Overall, that is true. But stocks are a broad class, and you can reduce the risks significantly by selecting high-quality dividend stocks that can generate regular, predictable income and can also decrease the volatility of your portfolio compared to the overall stock market.
Combating the impact of inflation is one advantage of owning these dividend-paying stocks. Here's why: many of these stable, high-quality companies increase their dividends over time, which translates to rising dividend income that offsets the effects of inflation.
Thinking about dividend-focused mutual funds or ETFs? Watch out for fees.
If you're interested in investing in dividends, but are thinking about mutual funds or ETFs rather than stocks, beware of fees. Mutual funds and specialized ETFs may carry high fees, which could lower the overall gains you earn from dividends, undercutting your dividend income strategy. Be sure to look for funds with low fees if you decide on this approach.
Bottom Line
Seeking steady, consistent income through dividends can be a smart option for financial security in retirement, whether you invest in mutual funds, ETFs, or in dividend-paying stocks.
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
Be First to New Top 10 Stocks >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
American Assets Trust, Inc. (AAT) : Free Stock Analysis Report
Axis Capital Holdings Limited (AXS) : Free Stock Analysis Report
COPT Defense Properties (CDP) : 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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And unfortunately, even retirees who have built a nest egg have good reason to be concerned - with the traditional approaches to retirement planning, income may no longer cover expenses. That means retirees are dipping into principal to make ends meet, setting up a race against time between dwindling investment balances and longer lifespans. Bottom Line Seeking steady, consistent income through dividends can be a smart option for financial security in retirement, whether you invest in mutual funds, ETFs, or in dividend-paying stocks.
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Check American Assets Trust (AAT) dividend history here>>> Axis Capital (AXS) is paying out a dividend of $0.44 per share at the moment, with a dividend yield of 3.25% compared to the Insurance - Property and Casualty industry's yield of 0.17% and the S&P 500's yield. Check Axis Capital (AXS) dividend history here>>> Currently paying a dividend of $0.29 per share, COPT Defense (CDP) has a dividend yield of 4.47%. Click to get this free report American Assets Trust, Inc. (AAT) : Free Stock Analysis Report Axis Capital Holdings Limited (AXS) : Free Stock Analysis Report COPT Defense Properties (CDP) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Check American Assets Trust (AAT) dividend history here>>> Axis Capital (AXS) is paying out a dividend of $0.44 per share at the moment, with a dividend yield of 3.25% compared to the Insurance - Property and Casualty industry's yield of 0.17% and the S&P 500's yield. Check Axis Capital (AXS) dividend history here>>> Currently paying a dividend of $0.29 per share, COPT Defense (CDP) has a dividend yield of 4.47%. Click to get this free report American Assets Trust, Inc. (AAT) : Free Stock Analysis Report Axis Capital Holdings Limited (AXS) : Free Stock Analysis Report COPT Defense Properties (CDP) : Free Stock Analysis Report To read this article on Zacks.com click here.
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In addition to the considerable drop in bond yields, today's retirees are nervous about their future Social Security benefits. Here are three dividend-paying stocks retirees should consider for their nest egg portfolio. Bottom Line Seeking steady, consistent income through dividends can be a smart option for financial security in retirement, whether you invest in mutual funds, ETFs, or in dividend-paying stocks.
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62426307-d3d8-41a5-9551-67eeb8e1b33f
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711426.0
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2023-12-15 00:00:00 UTC
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A 7.9% Dividend With No Taxes? This Ticker Does That (and More)
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DCOMP
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https://www.nasdaq.com/articles/a-7.9-dividend-with-no-taxes-this-ticker-does-that-and-more
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nan
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Today we're going to use a simple strategy to (legally!) beat the tax man. The key is a (too) often-ignored group of funds whose dividends are beyond the reach of the IRS.
The low-risk assets behind this income stream really should be part of any income investor's portfolio. And the three tickers we'll discuss below, which yield up to 7.9%, are a great place to start. Thanks to their tax-free status, their "real" yields will likely be considerably more for us.
Enter "Boring But Beautiful" Municipal Bond Funds
Here's the truth on taxes: If you're an American and you receive any kind of income, you're going to get taxed. This is a constant of life. But there is one exception: municipal bonds, the income from which is tax-free for most Americans.
That tax-exempt status drives plenty of investors to muni bonds, making them a secret weapon for state and local governments and American industry, as these bonds fund many infrastructure and other public works projects around the country.
It adds up to a big difference-maker for many folks. A municipal, or "muni," bond yielding 4% might not seem impressive at first glance, but for someone in a 37% federal tax bracket, this 4% tax-free yield is equivalent to a taxable yield of 6.6%.
And of course, the higher our "headline" muni-bond yields get, the bigger the taxable-equivalent yield: for that same taxpayer in the 37% federal bracket, for example, 5% yields turn into 8.3% on a taxable-equivalent basis.
Creating Your Own "Tax-Free Income Machine"
The best way to buy municipal bonds is through closed-end funds (CEFs), which give us three key advantages:
Active management: The world of municipal bonds is hard for individuals to access, so we want pros from well-established firms like BlackRock, Nuveen and others "running" our muni portfolio for us.
High yields: Plenty of muni-bond CEFs pay 4%, 5% and more, which, as we just saw, translates into a bigger yield on a taxable-equivalent basis.
Discounts to net asset value (NAV): Because CEFs have more or less fixed share counts for their entire lives, they can, and often do, trade at different levels than the per-share value of their portfolios, and regularly at discounts. That lets us buy our "munis" for 90, 85 and sometimes even fewer cents per dollar of assets, as we'll see in a moment.
With all that in mind, let's go ahead and create a tax-free income portfolio with just three CEFs, all of which are diversified across municipalities, projects and credit ratings.
Muni Pick #1: BlackRock MuniYield Quality Fund (MQY)
MQY is notable for its consistent performance and ability to offer tax-free income for a long time, making it a great long-term hold.
MQY's Long History of Profits
MQY currently trades at a 10.9% discount to NAV, so we're essentially paying 89 cents for every dollar of assets with this one. Cheap! Moreover, like all muni-bond funds, MQY dropped in 2022, as interest rates rose. But now, with rates likely to fall, the fund is nicely positioned for gains, in addition to long-term (and of course tax-free) income.
The kicker here is that MQY's 6% yield--already attractive on its own--"converts" to a 9.9% taxable-equivalent yield for top income earners.
Muni Pick #2: Nuveen AMT-Free Quality Municipal Income Fund (NEA)
Let's carry on with NEA, known for its strong management team (Nuveen gets access to high-quality municipal-bond issuances early, which is possible thanks to the company's deep contacts in the muni world and the fact that this corner of the market is small).
Like MQY, NEA trades at a big discount--14.4% this time, That has a little-realized benefit when it comes to the dividend, as the yield on NAV (or the yield management needs to cover to keep the payouts coming our way) is only 4%, lower than the 4.7% yield as calculated on the discounted market price.
That's a roundabout way of saying the dividend is easy to maintain. And, like MQY, this fund has a long track record of strong total returns and, also like MQY, is well-positioned to gain as interest rates fall.
NEA Keeps Delivering Income and Gains
Muni Pick #3: RiverNorth Managed Duration Municipal Income Fund II (RMMZ)
Finally, for further diversification in the muni-bond fund space, consider RMMZ, which has an interesting method of managing duration and credit risk: it buys more individual municipal bonds when the muni-bond market is hot and then leans more into buying other muni-bond CEFs when the market is cold and CEF discounts are unusually big.
RMMZ's Clever Approach to Maintaining Income
Source: RiverNorth Capital Management
This fund also trades at a wide discount to NAV--13% today--which is yet again a nice bonus for a high-yielding fund. But the real standout stat is RMMZ's yield: 7.9%. On a taxable-equivalent yield basis, that's nearly 13.1%. Here are the figures to back up that big yield, courtesy of the taxable-equivalent calculator at Bankrate.com:
Big Yields--for Real
Source: Bankrate.com
RMMZ is far from perfect: its payouts were cut at the start of 2023 by seven-tenths of a penny, and if that were to happen again its current yield would fall to 7.4%. But that still translates into a 12.3% taxable-equivalent yield for a top income earner!
I don't know about you, but that's a pretty nice sounding "downside" to me. The upside is that these funds all have diversified portfolios in municipal bonds, which sport just a 0.1% default rate across the asset class.
The bottom line: If you need a tax break (and who doesn't?), these are three funds worth serious attention.
5 More "Hidden" Funds Trading Cheap (and Yielding 9.8%)
I call CEFs "hidden" funds because the big investment houses (which often manage CEFs and ETFs) put almost zero marketing muscle behind them.
There's a reason for that: if investors discovered the income (and profit) power of CEFs, they'd likely never buy an ETF again! But if we want to retire well--and on dividends alone--9%+ paying CEFs really should be part of our strategy.
To learn more about these high-yield funds, click right here to read my Special Investor Bulletin. In it, I'll reveal my CEF-investing strategy and give you the opportunity to download a free Special Report naming 5 of my top bargain-priced CEF picks (current yield: 9.8%!).
Also see:
Warren Buffett Dividend Stocks
Dividend Growth Stocks: 25 Aristocrats
Future Dividend Aristocrats: Close Contenders
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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With all that in mind, let's go ahead and create a tax-free income portfolio with just three CEFs, all of which are diversified across municipalities, projects and credit ratings. Muni Pick #2: Nuveen AMT-Free Quality Municipal Income Fund (NEA) Let's carry on with NEA, known for its strong management team (Nuveen gets access to high-quality municipal-bond issuances early, which is possible thanks to the company's deep contacts in the muni world and the fact that this corner of the market is small). In it, I'll reveal my CEF-investing strategy and give you the opportunity to download a free Special Report naming 5 of my top bargain-priced CEF picks (current yield: 9.8%!
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Creating Your Own "Tax-Free Income Machine" The best way to buy municipal bonds is through closed-end funds (CEFs), which give us three key advantages: Active management: The world of municipal bonds is hard for individuals to access, so we want pros from well-established firms like BlackRock, Nuveen and others "running" our muni portfolio for us. Muni Pick #2: Nuveen AMT-Free Quality Municipal Income Fund (NEA) Let's carry on with NEA, known for its strong management team (Nuveen gets access to high-quality municipal-bond issuances early, which is possible thanks to the company's deep contacts in the muni world and the fact that this corner of the market is small). Muni Pick #3: RiverNorth Managed Duration Municipal Income Fund II (RMMZ) Finally, for further diversification in the muni-bond fund space, consider RMMZ, which has an interesting method of managing duration and credit risk: it buys more individual municipal bonds when the muni-bond market is hot and then leans more into buying other muni-bond CEFs when the market is cold and CEF discounts are unusually big.
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Like MQY, NEA trades at a big discount--14.4% this time, That has a little-realized benefit when it comes to the dividend, as the yield on NAV (or the yield management needs to cover to keep the payouts coming our way) is only 4%, lower than the 4.7% yield as calculated on the discounted market price. Muni Pick #3: RiverNorth Managed Duration Municipal Income Fund II (RMMZ) Finally, for further diversification in the muni-bond fund space, consider RMMZ, which has an interesting method of managing duration and credit risk: it buys more individual municipal bonds when the muni-bond market is hot and then leans more into buying other muni-bond CEFs when the market is cold and CEF discounts are unusually big. 5 More "Hidden" Funds Trading Cheap (and Yielding 9.8%) I call CEFs "hidden" funds because the big investment houses (which often manage CEFs and ETFs) put almost zero marketing muscle behind them.
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Muni Pick #3: RiverNorth Managed Duration Municipal Income Fund II (RMMZ) Finally, for further diversification in the muni-bond fund space, consider RMMZ, which has an interesting method of managing duration and credit risk: it buys more individual municipal bonds when the muni-bond market is hot and then leans more into buying other muni-bond CEFs when the market is cold and CEF discounts are unusually big. Source: RiverNorth Capital Management This fund also trades at a wide discount to NAV--13% today--which is yet again a nice bonus for a high-yielding fund. Here are the figures to back up that big yield, courtesy of the taxable-equivalent calculator at Bankrate.com: Big Yields--for Real
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085edc56-ecd0-443e-b97f-e29a561c2477
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711427.0
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2023-12-15 00:00:00 UTC
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Power Integrations (POWI) Benefits From Portfolio Expansion
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DCOMP
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https://www.nasdaq.com/articles/power-integrations-powi-benefits-from-portfolio-expansion
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nan
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Power Integrations POWI is expanding its footprint in the semiconductor space thanks to an expanding portfolio.
POWI recently expanded its presence in different markets. It is targeting growth areas such as electric vehicles and renewable energy through the launch of new products.
Power Integrations has been strengthening its footprint in the gate-driver technology for medium- and high-voltage inverter applications. Its recent launch — the SCALE-2 2SP0230T2x0 dual-channel gate drivers — caters to 62 mm silicon-carbide (SiC) MOSFET and silicon IGBT modules rated up to 1700 V.
This release boasts advanced protection features, such as short-circuit protection, responding in less than two microseconds and active clamping (AAC) for effective over-voltage defense during turn-off.
Power Integrations, Inc. Price and Consensus
Power Integrations, Inc. price-consensus-chart | Power Integrations, Inc. Quote
Specifically tailored for applications like railway auxiliary converters, offboard EV chargers and STATic synchronous COMpensator (STATCOM) voltage regulators for the power grid, these gate drivers leverage Power Integrations proven SCALE-2 technology.
Their compact form factor (134 x 62 mm), higher integration, increased functionality and enhanced system reliability signify a significant leap in addressing critical needs across diverse high-voltage inverter applications.
Expanding Portfolio to Aid POWI’s Prospects
POWI’s shares have returned 8.2% in the past month compared with the Zacks Computer & Technology sector’s increase of 2.3%.
Power Integrations continues to secure significant design wins across various applications, including automation, medium- to high-voltage inverter applications and industrial controls.
The company became a leader in Gallium Nitride (GaN) technology, a pivotal factor driving its success in the high-performance power conversion solutions market.
POWI’s commitment to Gallium Nitride (GaN) technology positions it as a pioneer in the industry.
Power Integrations released the world's highest voltage single-switch GaN power supply IC, the InnoSwitch 3-EP 1250 V, with proprietary PowiGaN technology. The IC achieves up to 93% efficiency and enables compact 85 W flyback power supplies without a heatsink.
Power Integrations expects to introduce higher voltage for its GaN road map soon to drive GaN beyond 10 Kilowatts.
Q4 View Not So Rosy
POWI expects fourth-quarter 2023 revenues between $90 million plus or minus $5 million. The Zacks Consensus Estimate for the fourth quarter is pegged at $90.21 million, indicating a year-over-year decline of 27.7%.
The consensus mark for earnings is pegged at 15 cents per share, unchanged in the past 30 days.
Zacks Rank & Stocks to Consider
Currently, POWI carries a Zacks Rank #4 (Sell).
Flex FLEX, NetEase NTES and Badger Meter BMI are a few better-ranked stocks that investors can consider from the broader sector, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
FLEX, NTES and BMI shares have returned 34.6%, 41.7% and 40.1%, respectively, on a year-to-date basis.
Long-term earnings growth rates for Flex, NetEase and Badger Meter are pegged at 12.39%,15.98% and 20.39%, 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
Badger Meter, Inc. (BMI) : Free Stock Analysis Report
Flex Ltd. (FLEX) : Free Stock Analysis Report
Power Integrations, Inc. (POWI) : Free Stock Analysis Report
NetEase, Inc. (NTES) : 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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Its recent launch — the SCALE-2 2SP0230T2x0 dual-channel gate drivers — caters to 62 mm silicon-carbide (SiC) MOSFET and silicon IGBT modules rated up to 1700 V. Their compact form factor (134 x 62 mm), higher integration, increased functionality and enhanced system reliability signify a significant leap in addressing critical needs across diverse high-voltage inverter applications. The company became a leader in Gallium Nitride (GaN) technology, a pivotal factor driving its success in the high-performance power conversion solutions market.
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Flex FLEX, NetEase NTES and Badger Meter BMI are a few better-ranked stocks that investors can consider from the broader sector, each sporting a Zacks Rank #1 (Strong Buy). Long-term earnings growth rates for Flex, NetEase and Badger Meter are pegged at 12.39%,15.98% and 20.39%, respectively. Click to get this free report Badger Meter, Inc. (BMI) : Free Stock Analysis Report Flex Ltd. (FLEX) : Free Stock Analysis Report Power Integrations, Inc. (POWI) : Free Stock Analysis Report NetEase, Inc. (NTES) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Power Integrations, Inc. Price and Consensus Power Integrations, Inc. price-consensus-chart | Power Integrations, Inc. Quote Specifically tailored for applications like railway auxiliary converters, offboard EV chargers and STATic synchronous COMpensator (STATCOM) voltage regulators for the power grid, these gate drivers leverage Power Integrations proven SCALE-2 technology. Flex FLEX, NetEase NTES and Badger Meter BMI are a few better-ranked stocks that investors can consider from the broader sector, 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 Power Integrations, Inc. (POWI) : Free Stock Analysis Report NetEase, Inc. (NTES) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Power Integrations released the world's highest voltage single-switch GaN power supply IC, the InnoSwitch 3-EP 1250 V, with proprietary PowiGaN technology. Flex FLEX, NetEase NTES and Badger Meter BMI are a few better-ranked stocks that investors can consider from the broader sector, each sporting a Zacks Rank #1 (Strong Buy). Be First to New Top 10 Stocks >> Want the latest recommendations from Zacks Investment Research?
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eaf59d1a-54e8-467b-a1b9-fa3b7842d7fd
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711428.0
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2023-12-15 00:00:00 UTC
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Technology Sector Update for 12/18/2023: WKEY, ARM, LGI, MSFT, ZM, XLK, XSD
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DCOMP
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https://www.nasdaq.com/articles/technology-sector-update-for-12-18-2023%3A-wkey-arm-lgi-msft-zm-xlk-xsd
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Technology stocks were mixed pre-bell Monday as the Technology Select Sector SPDR Fund (XLK) was 0.1% higher and the SPDR S&P Semiconductor ETF (XSD) was marginally lower recently.
WISeKey International Holding (WKEY) was up more than 3% after saying its subsidiary WISe.ART entered into a collaboration with GMA in Italy for the promotion, investment, and preservation of art.
Arm Holdings (ARM) has laid off 70 software engineers in China amid a paring down of operations by chip makers worldwide, Bloomberg News reported, citing unnamed people with knowledge of the move. Arm Holdings was more than 1% lower in recent premarket activity.
Logitech International (LOGI) said its artificial intelligence-powered camera Sight has been certified for use with Microsoft (MSFT) Teams and Zoom (ZM) Rooms. Logitech International was 0.9% lower pre-bell.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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WISeKey International Holding (WKEY) was up more than 3% after saying its subsidiary WISe.ART entered into a collaboration with GMA in Italy for the promotion, investment, and preservation of art. Arm Holdings (ARM) has laid off 70 software engineers in China amid a paring down of operations by chip makers worldwide, Bloomberg News reported, citing unnamed people with knowledge of the move. Logitech International (LOGI) said its artificial intelligence-powered camera Sight has been certified for use with Microsoft (MSFT) Teams and Zoom (ZM) Rooms.
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Technology stocks were mixed pre-bell Monday as the Technology Select Sector SPDR Fund (XLK) was 0.1% higher and the SPDR S&P Semiconductor ETF (XSD) was marginally lower recently. Arm Holdings (ARM) has laid off 70 software engineers in China amid a paring down of operations by chip makers worldwide, Bloomberg News reported, citing unnamed people with knowledge of the move. Logitech International was 0.9% lower pre-bell.
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Technology stocks were mixed pre-bell Monday as the Technology Select Sector SPDR Fund (XLK) was 0.1% higher and the SPDR S&P Semiconductor ETF (XSD) was marginally lower recently. Arm Holdings (ARM) has laid off 70 software engineers in China amid a paring down of operations by chip makers worldwide, Bloomberg News reported, citing unnamed people with knowledge of the move. 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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WISeKey International Holding (WKEY) was up more than 3% after saying its subsidiary WISe.ART entered into a collaboration with GMA in Italy for the promotion, investment, and preservation of art. Arm Holdings (ARM) has laid off 70 software engineers in China amid a paring down of operations by chip makers worldwide, Bloomberg News reported, citing unnamed people with knowledge of the move. Logitech International was 0.9% lower pre-bell.
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4641501c-0800-4ba1-b17b-c78ce5eb62c3
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711429.0
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2023-12-15 00:00:00 UTC
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Abbott (ABT) Gains From Global Expansion Amid Macro Woes
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DCOMP
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https://www.nasdaq.com/articles/abbott-abt-gains-from-global-expansion-amid-macro-woes
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nan
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Abbott’s ABT branded generics within Established Pharmaceuticals Division (EPD) and diabetes businesses should drive growth in the coming quarters. New product launches should boost sales. However, the business environment continues to be challenging globally. The stock carries a Zack Rank #3 (Hold).
Abbott is expanding its Diagnostics business foothold (consisting of 24% of the company’s total revenues in the third quarter of 2023). Although, over the past few quarters, there has been a decline in demand for Abbott’s rapid diagnostic tests to detect COVID-19, it is largely being offset by higher growth across other businesses.
In the United States and internationally, Abbott is experiencing increased demand for routine diagnostics. Further, in the United States, Abbott is registering strong growth within the blood transfusion testing business, which is consistently recovering from the impact of lower plasma donations that occurred during the COVID-19 pandemic. Within Rapid Diagnostics, in the third quarter, the base business gained from increased demand for respiratory tests in anticipation of an earlier-than-normal start to the flu season in the Northern Hemisphere.
Abbott’s EPD business operates solely in emerging geographies, with leading positions in many of the largest and fastest-growing pharmaceutical markets for branded generics in the world. These markets include India, Russia, China and Latin America. The company recently noted that banking on the successful execution of its Branded Generic operating model, EPD is well positioned for sustained growth in many of these growing pharmaceutical markets.
Over the past two years, this business has managed to sustain low double-digit growth and has successfully positioned itself as one of the best-positioned large healthcare companies in emerging markets. In September, Abbott entered into an agreement with global biotech leader mAbxience to commercialize several biosimilars in emerging markets. This collaboration will help introduce cutting-edge medicines in the areas of oncology, women's health and respiratory diseases in countries that have historically lacked access to these treatment options.
Abbott Laboratories Price
Abbott Laboratories price | Abbott Laboratories Quote
On the flip side, during the COVID-19 public health emergency, Abbott’s diagnostic tests witnessed stupendous revenue growth backed by increased demand for testing as well as government-enacted favorable policies to expedite or promote access to healthcare in order to slow down or stop the spread of the virus. However, in the last few months of 2022 and following the official ending of the public health emergency in May, Abbott experienced a continuous decline in COVID testing-related demand.
In the third quarter of 2023, Abbott’s Rapid Diagnostics sales decreased 59.2% from the year-ago period due to lower demand for COVID-19 tests. The 27.3% decline in Molecular Diagnostics sales in the third quarter of 2023 was due to lower demand for laboratory-based molecular tests for COVID-19 as well as respiratory testing compared to significantly high demand in the year-ago period when the severity of the pandemic was quite prominent.
In the upcoming months too, this year-over-year decline in testing demand is expected to mar Abbott’s overall Diagnostics business sales.
Further, foreign exchange is a major headwind for Abbott due to a considerable percentage of its revenues coming from outside the United States. The strengthening of the euro and some other developed market currencies has constantly been hampering the company’s performance in the international markets.
In the third quarter, foreign exchange had an unfavorable year-over-year impact of 1.4% on sales.
Over the past year, shares of Abbott have declined 2.3% compared with the industry’s 3.6% decline.
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 decreased 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 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
Abbott Laboratories (ABT) : Free Stock Analysis Report
Haemonetics Corporation (HAE) : Free Stock Analysis Report
DexCom, Inc. (DXCM) : Free Stock Analysis Report
Insulet Corporation (PODD) : Free Stock Analysis Report
To read this article on Zacks.com click here.
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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Further, in the United States, Abbott is registering strong growth within the blood transfusion testing business, which is consistently recovering from the impact of lower plasma donations that occurred during the COVID-19 pandemic. Within Rapid Diagnostics, in the third quarter, the base business gained from increased demand for respiratory tests in anticipation of an earlier-than-normal start to the flu season in the Northern Hemisphere. The company recently noted that banking on the successful execution of its Branded Generic operating model, EPD is well positioned for sustained growth in many of these growing pharmaceutical markets.
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Abbott Laboratories Price Abbott Laboratories price | Abbott Laboratories Quote On the flip side, during the COVID-19 public health emergency, Abbott’s diagnostic tests witnessed stupendous revenue growth backed by increased demand for testing as well as government-enacted favorable policies to expedite or promote access to healthcare in order to slow down or stop the spread of the virus. In the third quarter of 2023, Abbott’s Rapid Diagnostics sales decreased 59.2% from the year-ago period due to lower demand for COVID-19 tests. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Haemonetics Corporation (HAE) : Free Stock Analysis Report DexCom, Inc. (DXCM) : Free Stock Analysis Report Insulet Corporation (PODD) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Although, over the past few quarters, there has been a decline in demand for Abbott’s rapid diagnostic tests to detect COVID-19, it is largely being offset by higher growth across other businesses. Abbott Laboratories Price Abbott Laboratories price | Abbott Laboratories Quote On the flip side, during the COVID-19 public health emergency, Abbott’s diagnostic tests witnessed stupendous revenue growth backed by increased demand for testing as well as government-enacted favorable policies to expedite or promote access to healthcare in order to slow down or stop the spread of the virus. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Haemonetics Corporation (HAE) : Free Stock Analysis Report DexCom, Inc. (DXCM) : Free Stock Analysis Report Insulet Corporation (PODD) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Although, over the past few quarters, there has been a decline in demand for Abbott’s rapid diagnostic tests to detect COVID-19, it is largely being offset by higher growth across other businesses. In the United States and internationally, Abbott is experiencing increased demand for routine diagnostics. In the third quarter of 2023, Abbott’s Rapid Diagnostics sales decreased 59.2% from the year-ago period due to lower demand for COVID-19 tests.
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2023-12-15 00:00:00 UTC
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Auto Roundup: GM's Cruise Layoff Update, BLBD's Quarterly Release & More
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https://www.nasdaq.com/articles/auto-roundup%3A-gms-cruise-layoff-update-blbds-quarterly-release-more
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Last week, auto retailers Penske Automotive Group, Inc. PAG and Asbury Automotive Group, Inc. ABG made headlines with acquisition updates. While PAG signed a deal to acquire Rybrook Group Limited to expand its footprint in the United Kingdom, ABG completed the acquisition of Jim Koons, which will add around $3 billion in its annualized sales.
General Motors’ GM self-driving business Cruise is set to reduce its workforce by 24% as part of a restructuring effort following a recent incident that compelled the suspension of its U.S. testing activities. Meanwhile, school bus manufacturer Blue Bird Corporation BLBD reported fiscal fourth-quarter 2023 results. It exceeded expectations on both fronts as well as lifted fiscal 2024 guidance.
While PAG currently carries a Zacks Rank #4 (Sell), ABG, GM and BLBD carry a Zacks Rank #3 (Hold) each. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Last Week’s Top Stories
Penske signed an agreement to acquire Rybrook Group Limited, which consists of 15 premium dealerships in the United Kingdom. These dealerships comprise four BMW dealerships, four MINI dealerships, four Volvo dealerships, two Land Rover dealerships and one Porsche dealership. Among the four BMW dealerships, three locations retail BMW Motorrad motorcycles.
The buyout represents estimated annualized revenues of $1 billion. Subject to regulatory approvals and satisfactory closing conditions, the transaction is expected to be completed by January 2024. The company plans to fund this acquisition using its existing liquidity. Last year, PAG completed several acquisitions and opened new dealerships worth more than $1.3 billion in annualized revenues.
Asbury completed the acquisition of Jim Koons Automotive Companies, one of the 10 largest privately owned dealership groups in the United States.The sale comprised 20 dealerships, 29 franchises and six collision centers in the United States. It also included one of the highest-volume Toyota dealerships in the United States. The transaction was financed through borrowings under Asbury's existing credit facility and available cash reserves.
The acquisition will contribute around $3 billion in annualized revenues. Asbury foresees the profitability of the Koons dealership to align closely with that of Asbury's other dealerships. The total purchase price, approximately $1.2 billion, encompasses $740 million in goodwill and $420 million in real estate and leasehold improvements, along with vehicle inventory (net of floorplan), parts inventory, and fixed assets of the dealerships.
General Motors’ Cruise will reduce its workforce by 24%, mainly in commercial operations and related corporate functions. Before announcing the layoff, Cruise had 3,800 employees. The affected employees will receive their paychecks till Feb 12, 2023. They will also receive an additional eight weeks of salary plus tenure-based severance.
Cruise also dismissed nine key leaders due to an accident that took place on Oct 2, 2023. The accident involved a Cruise self-driving car that dragged a pedestrian 20 feet after being struck by a vehicle. Per a memo seen by Reuters, new leadership is crucial for the company to regain trust and operate with the highest standards. After the accident, California suspended the driverless testing permit of the Cruise robotaxi unit. Last month, GM announced cutting costs at Cruise, which has lost more than $700 million in the third quarter and $8 billion since 2016.
Blue Bird came out with fiscal fourth-quarter 2023 adjusted quarterly earnings of 62 cents per share, beating the Zacks Consensus Estimate of 46 cents per share. The company had reported a loss of 67 cents per share a year ago. Revenues totaled $303 million, ahead of the consensus mark of $300 million and increasing from $257.7 million recorded in the year-ago period.
During the quarter under review, bus sales saw an uptick of $41.7 million, primarily driven by a 12.1% rise in the average sales price per unit. This increase can be attributed to product and mix adjustments, strategic pricing measures implemented by management in response to heightened inventory purchase costs and a 5% rise in the number of units booked. In the fourth quarter of fiscal 2023, 2,116 units were booked, up from 2,016 units booked during the corresponding period in fiscal 2022.
Given the strong finish to 2023 and improved visibility for 2024, Blue Bird is raising its fiscal 2024 guidance. The updated projections include net revenues in the range of $1.15-1.25 billion. Adjusted EBITDA is expected to be between $105 million and 125 million. Adjusted FCF is anticipated to be in the range of $50-$60 million. The company is affirming its long-term outlook, aiming for sustained and profitable growth toward achieving revenues of $2 billion and maintaining adjusted EBITDA margins of 12% or higher.
Price Performance
The following table shows the price movement of some of the major auto players over the last week and six-month period.
Image Source: Zacks Investment Research
What’s Next in the Auto Space?
Industry watchers will keep a tab on November new car registration data to be released by the European Automobile Manufacturers Association.
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
Penske Automotive Group, Inc. (PAG) : Free Stock Analysis Report
General Motors Company (GM) : Free Stock Analysis Report
Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report
Blue Bird Corporation (BLBD) : 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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While PAG signed a deal to acquire Rybrook Group Limited to expand its footprint in the United Kingdom, ABG completed the acquisition of Jim Koons, which will add around $3 billion in its annualized sales. General Motors’ GM self-driving business Cruise is set to reduce its workforce by 24% as part of a restructuring effort following a recent incident that compelled the suspension of its U.S. testing activities. This increase can be attributed to product and mix adjustments, strategic pricing measures implemented by management in response to heightened inventory purchase costs and a 5% rise in the number of units booked.
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Last week, auto retailers Penske Automotive Group, Inc. PAG and Asbury Automotive Group, Inc. ABG made headlines with acquisition updates. Meanwhile, school bus manufacturer Blue Bird Corporation BLBD reported fiscal fourth-quarter 2023 results. Click to get this free report Penske Automotive Group, Inc. (PAG) : Free Stock Analysis Report General Motors Company (GM) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report Blue Bird Corporation (BLBD) : Free Stock Analysis Report To read this article on Zacks.com click here.
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These dealerships comprise four BMW dealerships, four MINI dealerships, four Volvo dealerships, two Land Rover dealerships and one Porsche dealership. Asbury completed the acquisition of Jim Koons Automotive Companies, one of the 10 largest privately owned dealership groups in the United States.The sale comprised 20 dealerships, 29 franchises and six collision centers in the United States. Click to get this free report Penske Automotive Group, Inc. (PAG) : Free Stock Analysis Report General Motors Company (GM) : Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report Blue Bird Corporation (BLBD) : Free Stock Analysis Report To read this article on Zacks.com click here.
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You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. In the fourth quarter of fiscal 2023, 2,116 units were booked, up from 2,016 units booked during the corresponding period in fiscal 2022. Adjusted EBITDA is expected to be between $105 million and 125 million.
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2023-12-15 00:00:00 UTC
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1 Stock That's a Better Artificial Intelligence (AI) Investment Than Nvidia
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https://www.nasdaq.com/articles/1-stock-thats-a-better-artificial-intelligence-ai-investment-than-nvidia
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Nvidia (NASDAQ: NVDA) has been the poster child of artificial intelligence (AI) investing in 2023. The stock has risen over 230% so far in 2023, making it one of the best-performing stocks in the entire market. However, that performance comes at a price, as the stock now has a premium valuation. Still, many investors might be looking to capitalize on the hardware segment of the AI investment space.
That's where Super Micro Computer (NASDAQ: SMCI) (often called Supermicro) comes in. In fact, the stock is actually doing better than Nvidia in 2023 (it's up about 265%), yet it doesn't carry the same premium valuation. So, how do these two interact? Let's find out.
Super Micro Computer is an important partner for Nvidia
The reason for Nvidia's success in 2023 is its best-in-class GPUs (graphics processing units) that are used to crunch heavy workloads needed to develop AI models. But just one or two GPUs won't do; instead, anyone building a supercomputer or a data center connects hundreds or thousands of these GPUs together to increase their computing power.
But often, many companies don't have the experience necessary to piece together the components to create the server. That's where Supermicro comes in. Supermicro's highly configurable servers allow customers to specify what they need, and then Supermicro builds it for them. With servers specializing in engineering simulation, drug discovery, generative AI training, or game development, customers can find a product that fits their needs.
Furthermore, Supermicro closely collaborates with Nvidia to get the most out of Nvidia's GPUs, which further cements Supermicro as a top option in the space over competition from Hewlett Packard and Dell.
With the AI arms race just beginning, Super Micro Computer has a solid investment story. But how are its finances?
Supermicro and Nvidia have completely different finances
While Supermicro and Nvidia may be partners, their finances are nothing alike. In each company's most recent quarter, Supermicro's revenue rose 14% compared to Nvidia's 206% rise. The profit picture is also completely different as well.
SMCI Gross Profit Margin (Quarterly) data by YCharts.
So, although the two work together in a similar industry, meeting the same needs, Supermicro is not Nvidia.
But that doesn't mean it can't be a great investment.
For the second quarter of fiscal year 2024, management is projecting 50% to 61% year-over-year growth -- a significant acceleration from its previous levels. Although Supermicro's trailing-12-month revenue is about $7.4 billion, its long-term target is to reach $20 billion in annual sales. That's a healthy amount of growth for Supremicro and would make it a winning investment if the company can accomplish it.
One benefit of Supermicro's stock is its cheap price tag. While Nvidia's premium is sky-high, Supermicro only trades at 26 times earnings and 16 times forward earnings. That's not a bad price tag, considering that the S&P 500 trades for about 19 times forward earnings.
Finally, when looking at how analysts feel about the stock, the average of 10 price targets is $397, or about a 35% upside for the stock in 12 months if their projections come true. That's an excellent return for a single year, although it pales compared to 2023's gain.
So, is Supermicro a better investment than Nvidia? I'd say yes. Essentially, you get the upside of the AI boom without the premium price tag. As a result, I'd feel more confident investing in Supermicro than I would in Nvidia right now.
Should you invest $1,000 in Super Micro Computer right now?
Before you buy stock in Super Micro Computer, 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 Super Micro Computer 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
Keithen Drury has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool recommends Super Micro Computer. 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 servers specializing in engineering simulation, drug discovery, generative AI training, or game development, customers can find a product that fits their needs. With the AI arms race just beginning, Super Micro Computer has a solid investment story. For the second quarter of fiscal year 2024, management is projecting 50% to 61% year-over-year growth -- a significant acceleration from its previous levels.
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While Nvidia's premium is sky-high, Supermicro only trades at 26 times earnings and 16 times forward earnings. Before you buy stock in Super Micro Computer, 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 Super Micro Computer wasn't one of them. The Motley Fool recommends Super Micro Computer.
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Furthermore, Supermicro closely collaborates with Nvidia to get the most out of Nvidia's GPUs, which further cements Supermicro as a top option in the space over competition from Hewlett Packard and Dell. Supermicro and Nvidia have completely different finances While Supermicro and Nvidia may be partners, their finances are nothing alike. Before you buy stock in Super Micro Computer, 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 Super Micro Computer wasn't one of them.
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Supermicro and Nvidia have completely different finances While Supermicro and Nvidia may be partners, their finances are nothing alike. So, is Supermicro a better investment than Nvidia? Before you buy stock in Super Micro Computer, 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 Super Micro Computer wasn't one of them.
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2023-12-15 00:00:00 UTC
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French retailers Intermarche and Auchan to buy 320 Casino stores - Les Echos
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https://www.nasdaq.com/articles/french-retailers-intermarche-and-auchan-to-buy-320-casino-stores-les-echos
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Adds context in paragraphs 8-10
PARIS, Dec 18 (Reuters) - French retailers Intermarche and Auchan are set to buy 320 stores of struggling retailer Casino CASP.PA, French financial daily Les Echos reported on Monday.
The paper reported that the two groups' joint bid was higher than bids received from Germany's Lidl and French rival Carrefour.
A spokesperson at Casino said a press release would be published soon.
Auchan, Intermarche, Carrefour and Lidl declined to comment.
Casino, which has warned of likely losses for 2023 for its core French business, is racing to finalise a bailout to avoid bankruptcy early next year.
A new leadership team formed around Czech billionaire Daniel Kretinsky is set to take control of Casino, which was brought to the verge of default after years of debt-fuelled acquisitions and losing market share to rivals.
Casino said last month it had received preliminary, indicative offers from several buyers for an unspecified number of hypermarkets and supermarkets it had put up for sale as its situation deteriorated.
Trading in Casino shares has been suspended since earlier on Monday at the company's request and pending a press release, stock exchange operator Euronext said.
Casino has been losing market share to sector leader E. Leclerc as well as Les Mousquetaires and U supermarkets, according to Kantar data.
Trade unions have said they fear Casino could be dismantled as its hyper and supermarkets are sold.
(Reporting by Nicolas Delame, Helen Reid, Blandine Henault; Writing by GV De Clercq and Ingrid Melander; Editing by Silvia Aloisi)
((geert.declercq@tr.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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A new leadership team formed around Czech billionaire Daniel Kretinsky is set to take control of Casino, which was brought to the verge of default after years of debt-fuelled acquisitions and losing market share to rivals. Casino said last month it had received preliminary, indicative offers from several buyers for an unspecified number of hypermarkets and supermarkets it had put up for sale as its situation deteriorated. Trading in Casino shares has been suspended since earlier on Monday at the company's request and pending a press release, stock exchange operator Euronext said.
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Adds context in paragraphs 8-10 PARIS, Dec 18 (Reuters) - French retailers Intermarche and Auchan are set to buy 320 stores of struggling retailer Casino CASP.PA, French financial daily Les Echos reported on Monday. The paper reported that the two groups' joint bid was higher than bids received from Germany's Lidl and French rival Carrefour. Auchan, Intermarche, Carrefour and Lidl declined to comment.
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Adds context in paragraphs 8-10 PARIS, Dec 18 (Reuters) - French retailers Intermarche and Auchan are set to buy 320 stores of struggling retailer Casino CASP.PA, French financial daily Les Echos reported on Monday. A new leadership team formed around Czech billionaire Daniel Kretinsky is set to take control of Casino, which was brought to the verge of default after years of debt-fuelled acquisitions and losing market share to rivals. Trading in Casino shares has been suspended since earlier on Monday at the company's request and pending a press release, stock exchange operator Euronext said.
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A spokesperson at Casino said a press release would be published soon. Auchan, Intermarche, Carrefour and Lidl declined to comment. Casino, which has warned of likely losses for 2023 for its core French business, is racing to finalise a bailout to avoid bankruptcy early next year.
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2023-12-15 00:00:00 UTC
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Why Investors Should Retain Boyd Gaming (BYD) Stock Now
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https://www.nasdaq.com/articles/why-investors-should-retain-boyd-gaming-byd-stock-now
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Boyd Gaming Corporation's BYD shares have gained 11% this year compared with the industry’s increase of 26.4%. The underperformance can be primarily attributed to higher wages, utilities and property insurance expenses.
In third-quarter 2023, total operating costs and expenses increased to $685.3 million compared with $639.8 million reported in the prior-year quarter. Going forward, the company intends to monitor the economic situation to gauge the impacts of interest rate hikes and inflationary pressures.
However, in the last month, this Zacks Rank #3 (Hold) company’s stock has gained 4.2% compared with the industry’s increase of 1.4%. It is benefiting from robust sports betting, portfolio expansion and growth in the Online segment’s EBITDAR. Let’s delve deeper and find out factors why investors should hold on to the stock.
Factors Likely to Drive Growth
Boyd Gaming has been undertaking efforts to expand online betting offerings. In the third quarter, the Online segment generated $90.3 million in revenues, up 72.5% year over year. The uptrend was backed by the solid performance of Panda in Ohio and Pennsylvania and the addition of the Boyd Interactive platform.
During the third quarter of 2023, EBITDAR in the Online segment came in at approximately $11 million, reflecting 73.3% growth on a year-over-year basis. For 2023, the company expects segmental EBITDAR in the range of $60-$65 million, indicating an uptick from the prior expectation of $55-60 million.
Management projects solid contributions from FanDuel operations (in Ohio and Kansas) and Boyd Interactive's portfolio. During the second quarter of 2023, it relaunched Starts branded online casinos in Pennsylvania and New Jersey, marking the first leveraging of the Boyd Interactive platform to manage its online casino operations.
The company continues to focus on expanding its portfolio. It has expanded its presence in Northern California. Moreover, it is evaluating opportunities to reinvest in its existing operations from its regional portfolio. To this end, it has started to develop a land-based facility at Treasure Chest. The company remains on track to complete the expansion project by spring 2024. It emphasized enhancing its gaming and non-gaming offerings to boost the guest experience of this property.
Image Source: Zacks Investment Research
Key Picks
Some better-ranked stocks in the Zacks Consumer Discretionary sector are:
Royal Caribbean Cruises Ltd. RCL currently sports a Zacks Rank #1 (Strong Buy). RCL has a trailing four-quarter earnings surprise of 28.3% on average. Shares of RCL have surged 138% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for RCL’s 2023 sales and EPS indicates a rise of 57.7% and 187.9%, respectively, from the year-ago period’s levels.
Live Nation Entertainment, Inc. LYV sports a Zacks Rank #1 at present. The company has a trailing four-quarter earnings surprise of 37.5% on average. Shares of LYV have gained 36% in the past year.
The Zacks Consensus Estimate for LYV’s 2023 sales and EPS indicates a rise of 29.5% and 132.8%, respectively, from the year-ago period’s levels.
JAKKS Pacific, Inc. JAKK currently sports a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 61.8% on average. Shares of JAKK have gained 121.4% in the past year.
The Zacks Consensus Estimate for JAKK’s 2024 sales indicates a rise of 3.6% from the year-ago period’s levels.
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
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
JAKKS Pacific, Inc. (JAKK) : Free Stock Analysis Report
Boyd Gaming Corporation (BYD) : Free Stock Analysis Report
Live Nation Entertainment, Inc. (LYV) : 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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Going forward, the company intends to monitor the economic situation to gauge the impacts of interest rate hikes and inflationary pressures. Factors Likely to Drive Growth Boyd Gaming has been undertaking efforts to expand online betting offerings. 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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Boyd Gaming Corporation's BYD shares have gained 11% this year compared with the industry’s increase of 26.4%. Live Nation Entertainment, Inc. LYV sports a Zacks Rank #1 at present. Click to get this free report Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report JAKKS Pacific, Inc. (JAKK) : Free Stock Analysis Report Boyd Gaming Corporation (BYD) : Free Stock Analysis Report Live Nation Entertainment, Inc. (LYV) : Free Stock Analysis Report To read this article on Zacks.com click here.
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However, in the last month, this Zacks Rank #3 (Hold) company’s stock has gained 4.2% compared with the industry’s increase of 1.4%. During the second quarter of 2023, it relaunched Starts branded online casinos in Pennsylvania and New Jersey, marking the first leveraging of the Boyd Interactive platform to manage its online casino operations. Click to get this free report Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report JAKKS Pacific, Inc. (JAKK) : Free Stock Analysis Report Boyd Gaming Corporation (BYD) : Free Stock Analysis Report Live Nation Entertainment, Inc. (LYV) : Free Stock Analysis Report To read this article on Zacks.com click here.
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However, in the last month, this Zacks Rank #3 (Hold) company’s stock has gained 4.2% compared with the industry’s increase of 1.4%. Factors Likely to Drive Growth Boyd Gaming has been undertaking efforts to expand online betting offerings. In the third quarter, the Online segment generated $90.3 million in revenues, up 72.5% year over year.
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2023-12-15 00:00:00 UTC
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3 Equity REIT Stocks Worth Betting on Despite Industry Woes
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https://www.nasdaq.com/articles/3-equity-reit-stocks-worth-betting-on-despite-industry-woes
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Even though Fed’s latest decision to keep interest rates steady brings cheer to REIT investors, broad-based economic uncertainty remains a key concern for the REIT and Equity Trust - Other industry. An expected slowdown in leasing demand is anticipated to dampen the prospects of the industry, while supply-chain constraints and high material costs may raise development costs.
Given this backdrop, investors should consider betting on defensive asset categories within the industry that portray resiliency and have solid fundamentals that will drive growth. Players like EastGroup Properties EGP, Stag Industrial STAG and Park Hotels & Resorts PK are likely to prosper.
About the Industry
The Zacks REIT and Equity Trust - Other sector comprises a diverse collection of REIT stocks representing various asset categories, including industrial, office, lodging, healthcare, self-storage, data centers, infrastructures and more. Equity REITs lease out space within these properties to tenants, generating income through rental payments. Economic growth assumes a central role within the real estate sector as economic expansion directly correlates with higher demand for real estate, increased occupancy rates and greater bargaining power for landlords to command higher rental rates. Moreover, the performance of Equity REITs hinges on the specific dynamics of their underlying assets and the geographic location of their properties. Therefore, it is imperative to thoroughly explore the fundamentals of these asset categories before making any investment decisions.
What's Shaping the Future of the REIT and Equity Trust - Other Industry?
Broad-Based Economic Uncertainty to Hurt Near-Term Large-Scale Deals: Although the Federal Reserve kept the benchmark rate unchanged for the third time in a row and indicated three rate cuts in 2024, near-term investors are likely to remain cautious, especially about large-scale business deals. There is less urgency from clients to make new commitments, and they continue to await greater price discovery. This phenomenon, along with persistent broad-based macroeconomic uncertainty, is expected to lower leasing demand and limit rental rate and occupancy growth. Specifically, the overall office real estate market is expected to continue experiencing lackluster demand as work-from-home and flexible or hybrid work setups take the front foot, diminishing office space utilization. As for lodging REITs, the recovery in group and business transient travel demand has been slower than anticipated. However, a positive demand trend and improvement in international inbound travel provide scope for revenue per available room growth in the near term, although at a slower pace. Further, with the initial surge in tower activity related to the early stage of the 5G investment cycle coming to a temporary halt and consolidation in the wireless industry, demand for tower REITs is expected to mellow down in the quarters ahead, hurting profitability.
Supply-Chain Woes & High Material Costs Linger: Overall economic uncertainty and geopolitical unrest continue to lead to supply-chain constraints at various stages. This, coupled with elevated interest rates, has pushed up the cost of raw materials, resulting in higher development costs. In addition, REITs are highly dependent on the debt market to carry out their development and redevelopment activities. As a result, interest expenses are likely to be on the higher end in the near term, affecting their ability to purchase or develop real estate with borrowed funds.
Resilient Demand Across Certain Asset-Classes Gives Scope for Growth: Demand for certain asset categories such as healthcare, data centers and industrial and logistics is likely to remain resilient in the near future. Healthcare REITs are well-poised to capitalize on the expected acceleration in senior citizens’ population and a rise in healthcare spending by this age cohort in the upcoming period. On the other hand, the e-commerce boom and supply-chain strategy transformations continue to provide an impetus to the industrial and logistics real estate space. Further, in this digital era, the high demand for inter-connected data center space by enterprises and service providers continues as they integrate artificial intelligence into their strategies and offerings, and advance their digital transformation agendas. This enhances the growth prospects for data center REITs.
Zacks Industry Rank Indicates Bleak Prospects
The Zacks REIT and Equity Trust - Other industry is housed within the broader Finance sector. It carries a Zacks Industry Rank #153, which places it in the bottom 39% of more than 250 Zacks industries.
The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates bleak near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
The industry’s positioning in the bottom 50% of the Zacks-ranked industries is a result of the southward revision of funds from operations (FFO) per share outlook for the constituent companies in aggregate. Looking at the aggregate FFO per share estimate revisions, it appears that analysts are losing confidence in this group’s growth potential of late. For 2023, the industry’s earnings estimates have moved 1.9% downward since January 2023 end. The industry’s estimates for 2024 have moved 7.7% south during this time frame.
However, before we present a few stocks that you might want to consider for your portfolio, let’s take a look at the industry’s recent stock-market performance and valuation picture.
Industry Lags the Stock Market Performance
The REIT and Equity Trust - Other Industry has underperformed both the S&P 500 composite and the broader Zacks Finance sector in a year.
The industry has risen 6% during this period compared with the S&P 500’s increase of 24% and the broader Finance sector’s 16.3% jump.
One-Year Price Performance
Industry's Current Valuation
On the basis of the forward 12-month price-to-FFO ratio, which is a commonly used multiple for valuing REIT - Others, we see that the industry is currently trading at 15.67X compared with the S&P 500’s forward 12-month price-to-earnings (P/E) of 19.75X. However, the industry is trading above the Finance sector’s forward 12-month P/E of 14.80X. This is shown in the chart below.
Forward 12 Month Price-to-FFO (P/FFO) Ratio
Over the last five years, the industry has traded as high as 22.10X and as low as 12.80X, with a median of 17.79X.
3 REIT and Equity Trust - Other Stocks to Consider
Park Hotels & Resorts: The lodging REIT owns a high-quality portfolio of hotels situated mostly in major urban and convention areas and premier resorts in key leisure destinations. Notably, 86% of the hotels and resorts are in the luxury or upper upscale segment. With economic activity picking up pace, the company continues to witness improvement in overall demand across its portfolio. It expects this positive momentum to continue through the remainder of 2023 and into 2024.
PK currently carries a Zacks Rank #1 (Strong Buy). The Zacks Consensus Estimate for the company’s 2023 FFO per share has been raised marginally over the past month to $1.99, indicating an increase of 29.2% year over year. The stock has gained 38.8% in the year-to-date period. You can see the complete list of today’s Zacks #1 Rank stocks here.
EastGroup Properties: This industrial REIT is engaged in the acquisition, development and operation of industrial properties, the majority of which are clustered around key transportation hubs in supply-constrained submarkets of major Sunbelt regions. Its core markets include the states of Florida, Texas, Arizona, California and North Carolina. Given the strategic location of EGP’s high-quality distribution facilities, it is expected to benefit from the healthy fundamentals of the industrial real estate market.
EastGroup Properties currently carries a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for EGP’s 2023 FFO per share has moved marginally northward over the past two months to $7.70, indicating an increase of 10% year over year. The stock has rallied 24.3% in the year-to-date period.
Stag Industrial: The company is engaged in the acquisition, ownership and operation of industrial properties throughout the United States. It enjoys a diversified portfolio in terms of market, tenant industry and tenant credit, which is likely to help it tide through the current market conditions and aid in stabilizing rental revenues.
The REIT currently carries a Zacks Rank #2. The Zacks Consensus Estimate for STAG’s 2023 FFO per share has been raised 1.3% over the past two months to $2.28, indicating an increase of 3.2% year over year. The stock has appreciated 19.7% in the year-to-date period.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
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Stag Industrial, Inc. (STAG) : Free Stock Analysis Report
EastGroup Properties, Inc. (EGP) : Free Stock Analysis Report
Park Hotels & Resorts Inc. (PK) : 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 phenomenon, along with persistent broad-based macroeconomic uncertainty, is expected to lower leasing demand and limit rental rate and occupancy growth. However, a positive demand trend and improvement in international inbound travel provide scope for revenue per available room growth in the near term, although at a slower pace. Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
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Players like EastGroup Properties EGP, Stag Industrial STAG and Park Hotels & Resorts PK are likely to prosper. About the Industry The Zacks REIT and Equity Trust - Other sector comprises a diverse collection of REIT stocks representing various asset categories, including industrial, office, lodging, healthcare, self-storage, data centers, infrastructures and more. Click to get this free report Stag Industrial, Inc. (STAG) : Free Stock Analysis Report EastGroup Properties, Inc. (EGP) : Free Stock Analysis Report Park Hotels & Resorts Inc. (PK) : Free Stock Analysis Report To read this article on Zacks.com click here.
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About the Industry The Zacks REIT and Equity Trust - Other sector comprises a diverse collection of REIT stocks representing various asset categories, including industrial, office, lodging, healthcare, self-storage, data centers, infrastructures and more. Zacks Industry Rank Indicates Bleak Prospects The Zacks REIT and Equity Trust - Other industry is housed within the broader Finance sector. Industry Lags the Stock Market Performance The REIT and Equity Trust - Other Industry has underperformed both the S&P 500 composite and the broader Zacks Finance sector in a year.
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About the Industry The Zacks REIT and Equity Trust - Other sector comprises a diverse collection of REIT stocks representing various asset categories, including industrial, office, lodging, healthcare, self-storage, data centers, infrastructures and more. The industry’s positioning in the bottom 50% of the Zacks-ranked industries is a result of the southward revision of funds from operations (FFO) per share outlook for the constituent companies in aggregate. Industry Lags the Stock Market Performance The REIT and Equity Trust - Other Industry has underperformed both the S&P 500 composite and the broader Zacks Finance sector in a year.
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2023-12-15 00:00:00 UTC
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3 Biotech Stocks Most Wall Street Analysts Are Bullish About
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https://www.nasdaq.com/articles/3-biotech-stocks-most-wall-street-analysts-are-bullish-about
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The scenario for the biotech industry in 2024 looks upbeat after a challenging ride in 2023. New drug approvals, pipeline development, and an increase in mergers & acquisitions (M&A) activity boosted investor sentiment in the last couple of months, even though an uncertain macroeconomic environment was a headwind.
Pharma and biotech bigwigs are now looking to bolster their product portfolios and pipelines through collaborations and buyouts. Hence, M&A is back in the spotlight. Pharma giant AbbVie ABBV recently announced two back-to-back acquisitions — Cerevel Therapeutics for $8.7 billion and ImmunoGen for $10.1 billion. Bristol Myers is set to acquire oncology-focused company Mirati Therapeutics for a total equity value of $5.8 billion. Earlier, Novartis acquired Chinook Therapeutics. Biogen acquired Reata Pharmaceuticals, Inc.
The recent spate of acquisitions has put the spotlight on biotech companies with a focus on oncology and rare diseases as acquisition targets. Companies having obesity drugs in their portfolio/pipeline and gene-editing companies hold great potential, particularly with the FDA approval of two recent gene therapies, making them lucrative investment areas.
Given the continuous need for innovative medical treatments, irrespective of the state of the economy, the biotech industry can be a haven despite the inherent volatility and uncertain macroeconomic environment.
Here, we discuss three biotech stocks that put up a robust show in 2023 and are likely to maintain the same in 2024 on the back of a solid portfolio and a promising pipeline. These are CRISPR Therapeutics AG CRSP, Intra-Cellular Therapies, Inc. ITCI and Dynavax DVAX.
CRISPR Therapeutics AG
It is a leading gene editing company focused on developing CRISPR/Cas9-based therapeutics, which promise huge potential. The company received a significant boost with the FDA approval of exagamglogene autotemcel, a CRISPR/Cas9 genome-edited cell therapy, for the treatment of sickle cell disease in patients 12 years and older with recurrent vaso-occlusive crises. Exagamglogene autotemcel was approved under the brand name Casgevy, making it the first FDA-approved treatment to utilize a type of novel genome editing technology. The company has partnered with Vertex Pharmaceuticals for the development and commercialization of Casgevy. Hence, Vertex will make a $200 million milestone payment to CRISPR following the FDA’s approval of Casgevy.
The company is now solely focused on developing CRISPR/Cas9 gene-edited allogeneic CAR T cell product candidates — CTX112 and CTX131. As part of this decision, it will transition patients treated with first-generation candidates (CTX110 and CTX130) to long-term follow-up programs when needed.
CRISPR Therapeutics also recently announced its plans to expand the next-generation candidates beyond immuno-oncology indications. The company intends to expand CTX112 into autoimmune indications. In this regard, management intends to start a clinical study evaluating CTX112 in systemic lupus erythematosus indication by first-half 2024.
The approval of Casgevy and a strong pipeline has boosted investor sentiment. CRSP has put up a stellar performance in 2023, with shares surging 52.7% year to date against the industry’s decline of 17.7%. Loss estimates for 2023 and 2024 have narrowed by $1.83 and 92 cents, respectively, in the past 60 days. The current average target price of $86.5 for CRSP represents an upside of 39.34%. The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Image Source: Zacks Investment Research
Intra-Cellular Therapies
This biotech company experienced steady growth in 2023. Its prospects for 2024 look bright despite an extremely challenging space. The company is focused on the development and commercialization of drugs for neuropsychiatric and neurological disorders. The FDA approval for Caplyta (lumateperone) in December 2019 for the treatment of schizophrenia in adults (42mg/day) was a significant boost to the company. The drug’s label was expanded by the FDA in December 2021 for the treatment of bipolar depression in adults (42mg/day). The uptake of the drug has been good in the bipolar depression space despite the inherent challenges in the market.
Intra-Cellular’s efforts to further expand lumateperone’s label should also reap reward. The candidate is in late-stage development as a novel treatment for major depressive disorders. The company expects to file a supplemental new drug application with the FDA for the approval of lumateperone as an adjunctive therapy to antidepressants for the treatment of MDD in the second half of 2024. A potential approval of the drug for additional indications will boost the growth prospects.
Importantly, Intra-Cellular also owns a promising pipeline — lenrispodun (ITI-214) for Parkinson’s disease, ITI-1020 as cancer immunotherapy and ITI-333 for opioid use disorder and pain.
Intra-Cellular Therapies’ current average target price of $77.36 represents an upside of 18.43%. The stock currently carries a Zacks Rank #2. Loss estimates for 2023 and 2024 have narrowed by 42 cents and 15 cents, respectively, in the past 60 days. Shares of the company have gained 23.7% so far in 2023.
Dynavax
This commercial-stage biopharmaceutical company is developing and commercializing innovative vaccines against infectious diseases. It has two commercial products, HEPLISAV-B vaccine (Hepatitis B Vaccine [Recombinant], Adjuvanted), which is approved in the United States and the European Union for the prevention of infection caused by all known subtypes of hepatitis B virus in adults 18 years of age and older, and CpG 1018 adjuvant, currently used in multiple adjuvanted COVID-19 vaccines.
HEPLISAV-B revenues are being driven by continued market share growth and overall expansion of the adult hepatitis B market. HEPLISAV-B's total market share in the United States increased to approximately 41% at the end of the third quarter, compared with approximately 32% at the end of the third quarter of 2022. The company is also working to expand its label, which should boost the top line.
Dynavax is also advancing CpG 1018 adjuvant as a premier vaccine adjuvant with adjuvanted vaccine clinical programs for shingles and Tdap. The company has also formed global research collaborations and partnerships focused on adjuvanted vaccines for COVID-19, seasonal influenza, universal influenza and plague.
The consistent increase in the share price has generated steady returns for the company and the momentum is expected to continue in 2024. Shares of DVAX have gained 28.4% year to date. Loss estimates for 2023 have narrowed to 12 cents from 23 cents in the past 60 days, while the earnings estimate for 2024 currently stands at 18 cents per share.
The company currently has a Zacks Rank #2. Dynavax’s current average target price of $26.67 represents an upside of 95.24%.
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
Dynavax Technologies Corporation (DVAX) : Free Stock Analysis Report
AbbVie Inc. (ABBV) : Free Stock Analysis Report
Intra-Cellular Therapies Inc. (ITCI) : Free Stock Analysis Report
CRISPR Therapeutics AG (CRSP) : 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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New drug approvals, pipeline development, and an increase in mergers & acquisitions (M&A) activity boosted investor sentiment in the last couple of months, even though an uncertain macroeconomic environment was a headwind. Given the continuous need for innovative medical treatments, irrespective of the state of the economy, the biotech industry can be a haven despite the inherent volatility and uncertain macroeconomic environment. The company expects to file a supplemental new drug application with the FDA for the approval of lumateperone as an adjunctive therapy to antidepressants for the treatment of MDD in the second half of 2024.
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These are CRISPR Therapeutics AG CRSP, Intra-Cellular Therapies, Inc. ITCI and Dynavax DVAX. The company received a significant boost with the FDA approval of exagamglogene autotemcel, a CRISPR/Cas9 genome-edited cell therapy, for the treatment of sickle cell disease in patients 12 years and older with recurrent vaso-occlusive crises. Click to get this free report Dynavax Technologies Corporation (DVAX) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Intra-Cellular Therapies Inc. (ITCI) : Free Stock Analysis Report CRISPR Therapeutics AG (CRSP) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Companies having obesity drugs in their portfolio/pipeline and gene-editing companies hold great potential, particularly with the FDA approval of two recent gene therapies, making them lucrative investment areas. The company received a significant boost with the FDA approval of exagamglogene autotemcel, a CRISPR/Cas9 genome-edited cell therapy, for the treatment of sickle cell disease in patients 12 years and older with recurrent vaso-occlusive crises. Click to get this free report Dynavax Technologies Corporation (DVAX) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Intra-Cellular Therapies Inc. (ITCI) : Free Stock Analysis Report CRISPR Therapeutics AG (CRSP) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Here, we discuss three biotech stocks that put up a robust show in 2023 and are likely to maintain the same in 2024 on the back of a solid portfolio and a promising pipeline. These are CRISPR Therapeutics AG CRSP, Intra-Cellular Therapies, Inc. ITCI and Dynavax DVAX. The FDA approval for Caplyta (lumateperone) in December 2019 for the treatment of schizophrenia in adults (42mg/day) was a significant boost to the company.
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2023-12-15 00:00:00 UTC
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TSLA and the Tesla Cybertruck: A Potential Game Changer or Overhyped EV?
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DCOMP
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https://www.nasdaq.com/articles/tsla-and-the-tesla-cybertruck%3A-a-potential-game-changer-or-overhyped-ev
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
There are some indications that Tesla’s (NASDAQ:TSLA) Cybertruck could become a huge hit that will also cause the demand for the other vehicles to soar for TSLA stock. However, the EV’s specifications are also less impressive than what CEO Elon Musk originally promised, while the Cybertruck is facing serious competition from Rivian’s (NASDAQ:RIVN) R1T and Ford’s (NYSE:F) F150 Lightning.
Moreover, Tesla faces multiple additional threats, while the valuation of TSLA stock remains quite elevated. Given these points, I rate the shares as a “Hold” at this point. I urge investors to wait for extensive Cybertruck sales data and indications about Tesla’s ability to overcome its competition and other threats before buying its shares.
Cybertruck’s Mixed Outlook
The Cybertruck’s specifications are much less impressive than Musk’s original aspirations for the EV, which he outlined in 2019. In the latter year, Musk stated that the massive EV “would start at $39,900, be available in late 2021, have a payload of 3,500 pounds in a 6.5-foot bed, and a tow rating of up to 14,000 pounds max range of 500+ miles for the top-end version,” Elektrek noted. Instead, as of now, Cybetruck “starts at $79,990…. has a payload of 2,500 pounds in a 6-foot bed, a tow rating of up to 11,000 pounds, and a range of 340 miles, or 470 with an additional battery.”
Meanwhile, Cybertruck is facing significant competition from Rivian’s R1T, which, judging by online reviews, seems quite beloved by consumers and the automotive media. Additionally, the number of F15 Lightning trucks sold this year through November had climbed 54% to 20,365, suggesting that the popularity of that EV is surging.
But on the positive side of the ledger for Cybertruck, as I noted in a previous column, are its multiple, unique features and the fact that “In a survey released by investment bank Canaccord Genuity, 33% of respondents said that they would buy the Cybertruck.”
Tesla’s Multiple, Serious Threats and Opportunities
On Dec. 13, the automaker announced that it was recalling over 2 million vehicles because the National Highway Traffic Safety Administration had decided that its Autopilot feature does not keep drivers significantly engaged. In addition to hurting the company’s bottom line, the recall may undermine consumers’ confidence in Autopilot and Tesla in general.
Also noteworthy is that Tesla and Musk face multiple, other government probes that could hurt Tesla, while the negative reactions to Musk’s political statements could be weighing on the popularity of Tesla’s EVs.
Speaking of the popularity of Tesla’s EVs, the automaker’s third-quarter results, as I’ve noted in previous columns, strongly suggested that the automaker’s rapidly increasing competition is weighing heavily on its top and bottom lines. With the automaker’s competition continuing to intensify rapidly, unless Cybertruck positively moves the needle for the automaker, its financial results may start to look consistently awful, causing TSLA stock to tumble.
On the other hand, the automaker should be meaningfully helped by lower interest rates in 2024, and it’s reportedly developing an EV sedan that will cost just $25,000. If the latter EV has positive gross margins, it should meaningfully boost the automaker’s top and bottom lines after launch.
Valuation and the Bottom Line on TSLA Stock
Given Tesla’s weak Q3 results and its multiple, strong threats, its forward price-earnings ratio of 69 is quite high.
While I believe that Cybertruck’s lower interest rates and the $25,000 EV could revive TSLA stock, I view the name’s risk/reward ratio as roughly balanced. Consequently, I rate the shares a “Hold” and urge investors to buy the stocks of other automakers instead of Tesla’s shares.
On the date of publication, Larry Ramer held a long position in RIVN. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Larry Ramer has conducted research and written articles on U.S. stocks for 15 years. He has been employed by The Fly and Israel’s largest business newspaper, Globes. Larry began writing columns for InvestorPlace in 2015. Among his highly successful, contrarian picks have been PLUG, XOM and solar stocks. You can reach him on Stocktwits at @larryramer.
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The post TSLA and the Tesla Cybertruck: A Potential Game Changer or Overhyped EV? 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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However, the EV’s specifications are also less impressive than what CEO Elon Musk originally promised, while the Cybertruck is facing serious competition from Rivian’s (NASDAQ:RIVN) R1T and Ford’s (NYSE:F) F150 Lightning. But on the positive side of the ledger for Cybertruck, as I noted in a previous column, are its multiple, unique features and the fact that “In a survey released by investment bank Canaccord Genuity, 33% of respondents said that they would buy the Cybertruck.” Tesla’s Multiple, Serious Threats and Opportunities On Dec. 13, the automaker announced that it was recalling over 2 million vehicles because the National Highway Traffic Safety Administration had decided that its Autopilot feature does not keep drivers significantly engaged. 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 TSLA and the Tesla Cybertruck: A Potential Game Changer or Overhyped EV?
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Moreover, Tesla faces multiple additional threats, while the valuation of TSLA stock remains quite elevated. has a payload of 2,500 pounds in a 6-foot bed, a tow rating of up to 11,000 pounds, and a range of 340 miles, or 470 with an additional battery.” Meanwhile, Cybertruck is facing significant competition from Rivian’s R1T, which, judging by online reviews, seems quite beloved by consumers and the automotive media. Speaking of the popularity of Tesla’s EVs, the automaker’s third-quarter results, as I’ve noted in previous columns, strongly suggested that the automaker’s rapidly increasing competition is weighing heavily on its top and bottom lines.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips There are some indications that Tesla’s (NASDAQ:TSLA) Cybertruck could become a huge hit that will also cause the demand for the other vehicles to soar for TSLA stock. Also noteworthy is that Tesla and Musk face multiple, other government probes that could hurt Tesla, while the negative reactions to Musk’s political statements could be weighing on the popularity of Tesla’s EVs. Speaking of the popularity of Tesla’s EVs, the automaker’s third-quarter results, as I’ve noted in previous columns, strongly suggested that the automaker’s rapidly increasing competition is weighing heavily on its top and bottom lines.
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Speaking of the popularity of Tesla’s EVs, the automaker’s third-quarter results, as I’ve noted in previous columns, strongly suggested that the automaker’s rapidly increasing competition is weighing heavily on its top and bottom lines. Valuation and the Bottom Line on TSLA Stock Given Tesla’s weak Q3 results and its multiple, strong threats, its forward price-earnings ratio of 69 is quite high. Consequently, I rate the shares a “Hold” and urge investors to buy the stocks of other automakers instead of Tesla’s shares.
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2023-12-15 00:00:00 UTC
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How a Weekend Steel Deal Could Fuel a 2024 Bull Market
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DCOMP
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https://www.nasdaq.com/articles/how-a-weekend-steel-deal-could-fuel-a-2024-bull-market
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The stock market has done exceptionally well in the last two months of the year. The Dow Jones Industrial Average has set new record highs, and other major market benchmarks are within a hand's breadth of reaching new all-time levels of their own.
For much of 2023, a handful of stocks powered indexes higher. However, it's evident that companies are starting to realize that the stocks that have gotten left out of the rally so far have intrinsic value of their own. The fact that those stocks have languished makes them attractive as takeover targets. That's what shareholders in U.S. Steel (NYSE: X) are seeing Monday morning, and the move could signal a wave of merger and acquisition activity across the industrial and materials sectors that could produce the next leg higher for the bull market.
Image source: Getty Images.
A trans-Pacific steel giant
Shares of U.S. Steel were up 29% in premarket trading Monday morning. The Pittsburgh-based iconic steel company received a buyout bid from a Japanese counterpart that could reshape the entire steelmaking industry.
U.S. Steel and Nippon Steel announced that Nippon will purchase its American peer in an all-cash transaction valued at $14.1 billion. Shareholders will receive $55 per share for their U.S. Steel stock, while Nippon will assume roughly $800 million in U.S. Steel debt. The share price is 40% higher than where U.S. Steel closed on Friday.
For Nippon, the move diversifies its scope to make it a global powerhouse. The company already had extensive exposure to its home market of Japan as well as the countries in the Association of Southeast Asian Nations and India. The expansion of Nippon's U.S. production capabilities will give it a huge boost in reaching its eventual goal of producing up to 100 million metric tons of crude steel worldwide.
The news comes four months after U.S. Steel had announced its intention to pursue strategic alternatives for its business. It also may close the door to a potential acquisition from Cleveland-Cliffs, whose shares moved 9% higher in premarket trading Monday as well.
Plenty of attractively priced stocks
It might seem odd that companies would look to make acquisitions as stock market indexes approach all-time highs. However, the unusual bifurcation in the market has led some stocks to extremely high valuations while leaving others largely unfollowed and unloved.
For instance, among well-known large-cap stocks, you'll find plenty of pockets of companies with low valuations based on traditional metrics:
Many airlines have single-digit price-to-earnings ratios, including industry giants like Delta Air Lines and United Airlines Holdings.
U.S. automakers Ford Motor Company and General Motors both sport single-digit P/E ratios as well.
Some of the largest energy companies in the world, including ExxonMobil and Shell, have P/Es at or below 10.
Admittedly, P/E ratios aren't perfect. With companies that rely on considerable leverage in their operations, the rise in interest rates is still working its way through income statements. It could take some time for earnings to fall to reflect higher debt financing costs.
Yet investors have also seen interest in bargain stocks in other areas. On Friday, speculation arose that DocuSign might seek to sell itself, either through a third-party buyer or in a leveraged buyout. The e-signature specialist has largely revamped its business, but its stock remains far below its 2021 highs.
If investors start to recognize the hidden value locked inside attractive-priced stocks, then it could help power the bull market further ahead in 2024. Many investors would applaud such a rotation as it would take away the arguments that the rally in stock markets has thus far had a relatively narrow focus.
Should you invest $1,000 in United States Steel right now?
Before you buy stock in United States Steel, 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 United States Steel 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
Dan Caplinger has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends DocuSign. The Motley Fool recommends Delta Air Lines and General Motors and recommends the following options: long January 2024 $60 calls on DocuSign and 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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The Dow Jones Industrial Average has set new record highs, and other major market benchmarks are within a hand's breadth of reaching new all-time levels of their own. That's what shareholders in U.S. Steel (NYSE: X) are seeing Monday morning, and the move could signal a wave of merger and acquisition activity across the industrial and materials sectors that could produce the next leg higher for the bull market. The expansion of Nippon's U.S. production capabilities will give it a huge boost in reaching its eventual goal of producing up to 100 million metric tons of crude steel worldwide.
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For instance, among well-known large-cap stocks, you'll find plenty of pockets of companies with low valuations based on traditional metrics: Many airlines have single-digit price-to-earnings ratios, including industry giants like Delta Air Lines and United Airlines Holdings. Before you buy stock in United States Steel, 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 United States Steel wasn’t one of them. The Motley Fool recommends Delta Air Lines and General Motors and recommends the following options: long January 2024 $60 calls on DocuSign and long January 2025 $25 calls on General Motors.
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Plenty of attractively priced stocks It might seem odd that companies would look to make acquisitions as stock market indexes approach all-time highs. Before you buy stock in United States Steel, 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 United States Steel wasn’t one of them. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Dan Caplinger has no position in any of the stocks mentioned.
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Shareholders will receive $55 per share for their U.S. Steel stock, while Nippon will assume roughly $800 million in U.S. Steel debt. The share price is 40% higher than where U.S. Steel closed on Friday. U.S. automakers Ford Motor Company and General Motors both sport single-digit P/E ratios as well.
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2023-12-15 00:00:00 UTC
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EV Roundup: TSLA's Recall of 2M Vehicles, RIVN's Deal With AT&T & More
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Electric vehicle (EV) behemoth Tesla TSLA is recalling more than 2 million vehicles on U.S. roads to install new safeguards in their Autopilot system.
U.S. legacy automaker General Motors GM delayed EV drive production at its Toledo plant. This follows GM's October announcement of postponing the production of its electric trucks, including the Chevy Silverado RST and GMC Sierra Denali EVs, to late 2025. GM’s crosstown rival Ford F also announced a reduction in the production of its Lightning Pro model by half. Initially, EV pickups were expected to revolutionize the market by replacing traditional gas-powered trucks with zero-emission alternatives boasting impressive towing capabilities. However, challenges such as higher pricing, charging issues and reduced range during towing have led to consumer hesitation.
Telecom giant AT&T inked deal to purchase EVs from Rivian Automotive RIVN and deploy those to its fleet in early 2024. The collaboration is a bold statement in the ongoing narrative of environmental responsibility and technological advancement.
While TSLA carries a Zacks Rank #4 (Sell), GM, F and RIVN currently carry Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Last Week’s Top Stories
Tesla is recalling more than 2 million vehicles after the U.S. safety regulator cited safety concerns. Per the U.S. safety regulator, the autopilot features are either too confusing for the drivers or too easy to misuse. Per the National Highway Traffic Safety Administration (“NHTSA”) filings, the automaker did not agree with the agency’s analysis but has agreed to issue a recall and release an over-the-air update. The agency found that under some circumstances, the Autosteer feature may increase the risk of a collision.
Per the filings, the Autosteer feature provides steering, braking and acceleration support to drivers in certain conditions. However, the drivers are supposed to remain attentive and keep their hands on the steering wheel while using the feature. The Autopilot system uses several controls to find out if the drivers are attentive or not. NHTSA found that the controls may not be sufficient to prevent drivers from exploiting the feature. Tesla will recall a total of 2,031,220 of its Model S, Model X, Model 3 and Model Y. The automaker has started rolling out a software update, which will be free for Tesla’s customers.
Rivian has joined forces with AT&T, which will encompass the integration of RIVN’s EVs into AT&T’s operational fleet. The deal is set to be launched in early 2024 The collaboration is a testament to Rivian’s commitment to sustainability and innovation in the EV sector and also positions AT&T at the forefront of the eco-friendly corporate movement. AT&T's plan to incorporate EVs into its fleet is a key component of its broader ambition to achieve carbon neutrality by 2035. The tie-up will see the telecom leader integrating Rivian's commercial vans and the much-anticipated R1 EVs into its operations.
The alliance between Rivian and AT&T extends beyond the mere purchase of EVs. In a strategic move, AT&T has been designated as the exclusive connectivity provider for all Rivian vehicles across the United States and Canada.After the conclusion of its exclusivity pact with Amazon, this deal with AT&T showcases Rivian’s appeal to a wide range of corporate clients. Rivian remains committed to delivering 100,000 vans ordered by Amazon by 2030. The ongoing relationship with Amazon, coupled with the new deal with AT&T, underscores Rivian's growing influence in the EV market.
General Motors announced a significant delay in the launch of its EV drive production at the Toledo Propulsion Systems plant, a notable setback in the company's EV strategy. Originally slated to begin in early 2024, the production of the electric drives is now rescheduled for the end of 2024, a delay of nine months. Last year, GM committed $760 million to transform the Toledo plant into its first U.S. facility dedicated to EV drive production. The Toledo Propulsion Systems plant, located on Alexis Road, was gearing up to commence building the EV units in the first quarter of 2024. However, this timeline has been pushed to the fourth quarter of the year.
This delay directly impacts approximately 75 temporary workers who were terminated following the plant's cessation of 6-speed transmission production in April to accommodate the new EV drive line. The deal offers Toledo plant's management and workforce additional time to prepare for a crucial transition in automotive manufacturing.
Ford reduced its planned production target of F-150 Lightning to half for 2024. In light of slowing demand, the automaker took a step back after significantly increasing its plant capacity for EVs this year. Ford plans to bring down its average weekly production volume at Rouge Electric Vehicle Center in Dearborn, MI, to 1,600 trucks, down from the current production volume of 3,200 per week.
After receiving 200,000 reservations for the F-150 Lightning in January 2022, Ford announced it would double its production capacity to 150,0000 units per year by mid-2023. However, the demand for EVs has been slower than anticipated due to higher prices and interest rates. The growth in demand lags far behind the expectations of automakers, which compelled them to reduce investments in EVs. On the third-quarterearnings call Ford’s executives shared plans to cancel or delay nearly $12 billion in EV investments due to softening demand for premium vehicles. Year to date, the company has lost almost $3.1 billion on EV spending and anticipates losing a total of $4 billion this year.
Price Performance
The following table shows the price movement of some of the major EV players over the last week and six-month period.
Image Source: Zacks Investment Research
What’s Next in the Space?
Stay tuned for announcements of upcoming EV models and any important updates from the red-hot industry.
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
Ford Motor Company (F) : Free Stock Analysis Report
General Motors Company (GM) : Free Stock Analysis Report
Tesla, Inc. (TSLA) : Free Stock Analysis Report
Rivian Automotive, Inc. (RIVN) : 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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Initially, EV pickups were expected to revolutionize the market by replacing traditional gas-powered trucks with zero-emission alternatives boasting impressive towing capabilities. The deal is set to be launched in early 2024 The collaboration is a testament to Rivian’s commitment to sustainability and innovation in the EV sector and also positions AT&T at the forefront of the eco-friendly corporate movement. This delay directly impacts approximately 75 temporary workers who were terminated following the plant's cessation of 6-speed transmission production in April to accommodate the new EV drive line.
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U.S. legacy automaker General Motors GM delayed EV drive production at its Toledo plant. General Motors announced a significant delay in the launch of its EV drive production at the Toledo Propulsion Systems plant, a notable setback in the company's EV strategy. Click to get this free report Ford Motor Company (F) : Free Stock Analysis Report General Motors Company (GM) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Rivian Automotive, Inc. (RIVN) : Free Stock Analysis Report To read this article on Zacks.com click here.
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U.S. legacy automaker General Motors GM delayed EV drive production at its Toledo plant. General Motors announced a significant delay in the launch of its EV drive production at the Toledo Propulsion Systems plant, a notable setback in the company's EV strategy. Click to get this free report Ford Motor Company (F) : Free Stock Analysis Report General Motors Company (GM) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Rivian Automotive, Inc. (RIVN) : Free Stock Analysis Report To read this article on Zacks.com click here.
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U.S. legacy automaker General Motors GM delayed EV drive production at its Toledo plant. Telecom giant AT&T inked deal to purchase EVs from Rivian Automotive RIVN and deploy those to its fleet in early 2024. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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711439.0
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2023-12-15 00:00:00 UTC
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US STOCKS-Wall St on course for higher open, eyes on data
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https://www.nasdaq.com/articles/us-stocks-wall-st-on-course-for-higher-open-eyes-on-data
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By Sruthi Shankar and Johann M Cherian
Dec 18 (Reuters) - Wall Street's main stock indexes were on track to open higher on Monday as investors awaited economic data later in the week that could offer insights on when the Federal Reserve could start cutting interest rates.
The main Wall Street indexes are looking to end 2023 on a high note as signs of slowing inflation and expectations that the U.S. central bank will soon ease its monetary policy attract buyers. The blue-chip Dow .DJI notched its third consecutive session of record high on Friday, while the benchmark S&P 500 .SPX marked a seventh straight week of gains in its longest winning streak since 2017.
Economic data this week include the Personal Consumption Expenditure index (PCE) - the Fed's favored inflation gauge - weekly jobless claims, housing starts and the final reading of the third-quarter GDP report.
U.S. equity markets rallied last week after the Fed left interest rates unchanged and officials' forecasts collectively priced in three quarters of a percentage point in cuts in 2024.
Traders are currently pricing in a 75% chance that the Fed will cut interest rates at least by 25 basis points in March, according to CME Group's FedWatch tool, even as top Fed policymakers pushed back on the ebullience.
Cleveland Fed President Loretta Mester, a voting member next year, said financial markets had got "a little bit ahead" of the central bank on when to expect interest rate cuts, as per a report.
"There's still a dislocation between a seemingly dovish pivot that the market is expecting the Federal Reserve to take, and what economists are projecting," said Keith Buchanan, senior portfolio manager at GLOBALT Investments.
"The direction is the same, it's just that the velocity of cuts and the magnitude of cuts might not be on the same page."
At 8:36 a.m. ET, Dow e-minis 1YMcv1 were up 58 points, or 0.15%, S&P 500 e-minis EScv1 were up 13 points, or 0.27%, and Nasdaq 100 e-minis NQcv1 were up 25 points, or 0.15%.
Meanwhile, Goldman Sachs raised its forecast for the S&P 500, which it now sees ending 2024 at 5,100, while decelerating inflation and Fed easing would keep real yields low.
Among single stocks, AppleAAPL.Oslipped 0.6% in premarket trading after more Chinese agencies and state-backed companies asked their staff to not bring iPhones and other foreign devices to work, a report said.
Oil stocks Exxon Mobil XOM.Nand Chevron CVX.Nadvanced 1.4% each, as crude prices gained over 2% after attacks by the Houthis on ships in the Red Sea raised concerns of oil supply disruptions. O/R
United States SteelX.N surged 28.7% after Japan's Nippon Steel 5401.Tsaid it would buy the steelmaker in a $14.9 billion deal including debt.
AdobeADBE.Oadded 2% after the Photoshop maker and Figma agreed to terminate their $20 billion merger announced last year.
U.S.-listed shares of NioNIO.N climbed 9.0% after the company said it had signed an agreement with CYVN Holdings, for the latter to invest $2.2 billion in the Chinese electric vehicle maker.
(Reporting by Sruthi Shankar and Johann M Cherian in Bengaluru; Editing by Maju Samuel)
((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2787;))
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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By Sruthi Shankar and Johann M Cherian Dec 18 (Reuters) - Wall Street's main stock indexes were on track to open higher on Monday as investors awaited economic data later in the week that could offer insights on when the Federal Reserve could start cutting interest rates. The main Wall Street indexes are looking to end 2023 on a high note as signs of slowing inflation and expectations that the U.S. central bank will soon ease its monetary policy attract buyers. Cleveland Fed President Loretta Mester, a voting member next year, said financial markets had got "a little bit ahead" of the central bank on when to expect interest rate cuts, as per a report.
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By Sruthi Shankar and Johann M Cherian Dec 18 (Reuters) - Wall Street's main stock indexes were on track to open higher on Monday as investors awaited economic data later in the week that could offer insights on when the Federal Reserve could start cutting interest rates. The main Wall Street indexes are looking to end 2023 on a high note as signs of slowing inflation and expectations that the U.S. central bank will soon ease its monetary policy attract buyers. Cleveland Fed President Loretta Mester, a voting member next year, said financial markets had got "a little bit ahead" of the central bank on when to expect interest rate cuts, as per a report.
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By Sruthi Shankar and Johann M Cherian Dec 18 (Reuters) - Wall Street's main stock indexes were on track to open higher on Monday as investors awaited economic data later in the week that could offer insights on when the Federal Reserve could start cutting interest rates. U.S. equity markets rallied last week after the Fed left interest rates unchanged and officials' forecasts collectively priced in three quarters of a percentage point in cuts in 2024. Cleveland Fed President Loretta Mester, a voting member next year, said financial markets had got "a little bit ahead" of the central bank on when to expect interest rate cuts, as per a report.
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By Sruthi Shankar and Johann M Cherian Dec 18 (Reuters) - Wall Street's main stock indexes were on track to open higher on Monday as investors awaited economic data later in the week that could offer insights on when the Federal Reserve could start cutting interest rates. The main Wall Street indexes are looking to end 2023 on a high note as signs of slowing inflation and expectations that the U.S. central bank will soon ease its monetary policy attract buyers. U.S. equity markets rallied last week after the Fed left interest rates unchanged and officials' forecasts collectively priced in three quarters of a percentage point in cuts in 2024.
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711440.0
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2023-12-15 00:00:00 UTC
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IBM Strengthens Hybrid Cloud and AI Platforms With $2.3 Billion Acquisition
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https://www.nasdaq.com/articles/ibm-strengthens-hybrid-cloud-and-ai-platforms-with-%242.3-billion-acquisition
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International Business Machines (NYSE: IBM) has a knack for using acquisitions to bolster its growth businesses. The tech giant occasionally goes big, as it did with the $34 billion acquisition of Red Hat in 2019, but most of its acquisitions are smaller.
Most recently, IBM shelled out $4.6 billion for financial and operational IT management and optimization software provider Apptio. Apptio's products can help IBM's clients keep cloud spending under control as they modernize their IT infrastructures.
IBM announced on Monday that it's following up the Apptio acquisition with another significant purchase. The company has agreed to acquire StreamSets and webMethods, two products that comprise what current owner Software AG calls a "super integration platform-as-a-service." The deal will cost IBM about $2.3 billion and be funded from the company's available cash on hand.
Solving a thorny problem
Enterprises use a wide variety of software and tools. Often, these tools don't work nicely together. One solution is to dedicate software engineering resources to building bespoke integrations between tools. This works until it doesn't. These integrations tend to be fragile, requiring additional resources to fix when something goes wrong.
The picture is complicated further when an enterprise needs to connect both modern cloud applications and legacy software running on its own servers. A cloud-based customer relationship management tool may need access to data squirreled away in an application that's been running on-premises for decades, for example. Making that connection in a reliable, low-maintenance way is tricky.
An iPaaS, or integration platform as a service, aims to solve this problem. Using an iPaaS, connecting two applications is no longer a software engineering project. If the marketing team wants to automate a workflow, pulling data from multiple places and connecting multiple applications, the iPaaS makes it happen with minimal fuss.
While a standard iPaaS is focused on connecting modern cloud-based applications, the iPaaS platform IBM is acquiring takes it a step further by supporting integrations with legacy software. The platform also helps solve the issue of connecting applications in cases where data residency rules add another layer of complexity.
IBM is all in on hybrid cloud computing. The company helps its clients modernize their IT infrastructures, which usually involves running workloads on multiple public clouds as well as on private clouds. An iPaaS product that seamlessly connects all those workloads is a valuable addition to IBM's suite of hybrid cloud software products.
This acquisition also boosts IBM's artificial intelligence (AI) business. StreamSets is all about data ingestion, and IBM will use it to add data ingestion capabilities to its watsonx AI platform.
Focusing on what works
While IBM is seeing some clients pull back on spending in some areas, digital transformation and application modernization are in high demand. IBM's clients are looking for projects that can deliver cost savings, productivity gains, and efficiency improvements.
The acquisition of StreamSets and webMethods will strengthen IBM's hybrid cloud and AI platforms. Notably, the platform IBM is acquiring is growing, already profitable, and has significant recurring revenue. Around 50% of IBM's total revenue was recurring in nature during the third quarter. By 2027, the market for integration software is expected to top $18 billion.
IBM has started to find its groove after a decade-long transformation effort. Revenue should grow by 3% to 5% this year despite an uncertain economy, and free cash flow is set to expand by more than 10% to $10.5 billion. As IBM continues to push its hybrid cloud and AI platforms, the $2.3 billion acquisition of StreamSets and webMethods will make them more compelling for enterprise customers.
Should you invest $1,000 in International Business Machines right now?
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Timothy Green has positions in International Business Machines. The Motley Fool recommends International Business Machines. 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 has agreed to acquire StreamSets and webMethods, two products that comprise what current owner Software AG calls a "super integration platform-as-a-service." Focusing on what works While IBM is seeing some clients pull back on spending in some areas, digital transformation and application modernization are in high demand. As IBM continues to push its hybrid cloud and AI platforms, the $2.3 billion acquisition of StreamSets and webMethods will make them more compelling for enterprise customers.
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While a standard iPaaS is focused on connecting modern cloud-based applications, the iPaaS platform IBM is acquiring takes it a step further by supporting integrations with legacy software. As IBM continues to push its hybrid cloud and AI platforms, the $2.3 billion acquisition of StreamSets and webMethods will make them more compelling for enterprise customers. Before you buy stock in International Business Machines, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and International Business Machines wasn't one of them.
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While a standard iPaaS is focused on connecting modern cloud-based applications, the iPaaS platform IBM is acquiring takes it a step further by supporting integrations with legacy software. As IBM continues to push its hybrid cloud and AI platforms, the $2.3 billion acquisition of StreamSets and webMethods will make them more compelling for enterprise customers. Before you buy stock in International Business Machines, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and International Business Machines wasn't one of them.
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While a standard iPaaS is focused on connecting modern cloud-based applications, the iPaaS platform IBM is acquiring takes it a step further by supporting integrations with legacy software. As IBM continues to push its hybrid cloud and AI platforms, the $2.3 billion acquisition of StreamSets and webMethods will make them more compelling for enterprise customers. Before you buy stock in International Business Machines, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and International Business Machines wasn't one of them.
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711441.0
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2023-12-15 00:00:00 UTC
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Here's Why One Should Retain Canadian Pacific (CP) Stock Now
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https://www.nasdaq.com/articles/heres-why-one-should-retain-canadian-pacific-cp-stock-now
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Canadian Pacific Kansas City Limited CP is benefiting from its freight-market conditions as well as shareholder-friendly measures.
Factors Favoring CP
With the gradual recovery in freight-market conditions, freight revenues, which contribute the majority to the top line, increased by 4% in 2021. In 2022, freight revenues increased 10% despite headwinds like supply-chain woes. The upside can be attributed to the increase in freight revenues at key sub-groups like Grain (up 5%), Potash (up 25%), Forest products (up 16%), Metals, minerals and consumer products (up 21%), Automotive (up 16%) and Intermodal (up 30%). Revenues in the Fertilizers and sulfur sub-segment were up 9% year over year. In 2022, total freight revenues per revenue ton-miles rose 11% year over year and total freight revenues per carload increased 9% year over year. Freight revenues increased 38% in the first nine months of 2023.
We are encouraged by the company’s decision to pay dividends even in the current uncertain scenario. The company paid out dividends worth C$507 million in 2021, up 8.6% year over year. In 2022, CP shelled out dividends worth C$707 million, up 39.4% year over year. In the first nine months of 2023, CP shelled out dividends worth C$530 million.
Key Risks
High capital expenditures may hinder the company's free cash flow-generating capacity. Management expects capital expenditures to be C$2.7 billion in 2023. In the 2024-2028 timeframe, Capex is expected to be in the range of $2.6-$2.8 billion per year.
Zacks Rank
CP currently carries Zacks Rank #3 (Hold).
Key Picks
Some better-ranked stocks for investors interested in the Zacks Transportation sector are Air Canada ACDVF and SkyWest SKYW.
Air Canada currently sports a Zacks Rank #1 (Strong Buy). An uptick in passenger traffic is aiding ACDVF. Recently, management announced plans to launch a new year-round route between Montreal and Madrid. You can see the complete list of today’s Zacks #1 Rank stocks here.
The service will commence in May of the following year as part of its expanded international summer 2024 flying schedule to cater to increased demand.
SkyWest currently carries a Zacks Rank #2 (Buy). SKYW's fleet modernization efforts are commendable. Initiatives to reward its shareholders also bode well. The Zacks Consensus Estimate for current-quarter earnings has surged 83.3% in the past 60 days.
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
Be First to New Top 10 Stocks >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Canadian Pacific Kansas City Limited (CP) : Free Stock Analysis Report
SkyWest, Inc. (SKYW) : Free Stock Analysis Report
Air Canada (ACDVF) : 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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Factors Favoring CP With the gradual recovery in freight-market conditions, freight revenues, which contribute the majority to the top line, increased by 4% in 2021. Key Picks Some better-ranked stocks for investors interested in the Zacks Transportation sector are Air Canada ACDVF and SkyWest SKYW. 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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In 2022, total freight revenues per revenue ton-miles rose 11% year over year and total freight revenues per carload increased 9% year over year. Zacks Rank CP currently carries Zacks Rank #3 (Hold). Click to get this free report Canadian Pacific Kansas City Limited (CP) : Free Stock Analysis Report SkyWest, Inc. (SKYW) : Free Stock Analysis Report Air Canada (ACDVF) : Free Stock Analysis Report To read this article on Zacks.com click here.
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In 2022, total freight revenues per revenue ton-miles rose 11% year over year and total freight revenues per carload increased 9% year over year. Zacks Rank CP currently carries Zacks Rank #3 (Hold). Click to get this free report Canadian Pacific Kansas City Limited (CP) : Free Stock Analysis Report SkyWest, Inc. (SKYW) : Free Stock Analysis Report Air Canada (ACDVF) : Free Stock Analysis Report To read this article on Zacks.com click here.
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In 2022, total freight revenues per revenue ton-miles rose 11% year over year and total freight revenues per carload increased 9% year over year. The company paid out dividends worth C$507 million in 2021, up 8.6% year over year. Be First to New Top 10 Stocks >> Want the latest recommendations from Zacks Investment Research?
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6e8f8765-73e9-4377-8f8b-905591b49576
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2023-12-15 00:00:00 UTC
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AMD Is Not Backing Down, Even If It’s Against Nvidia
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https://www.nasdaq.com/articles/amd-is-not-backing-down-even-if-its-against-nvidia
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Advanced Micro Devices (NASDAQ:AMD) has unveiled the “Ryzen 8040” microchips designed to enhance AI applications by 60%. Set for integration into laptops and PCs from Q1 2024; these chips are anticipated to drive revenue and stock performance for AMD stock.
Additionally, AMD’s MI300X accelerator microchip, a competitor to Nvidia’s high-powered AI chips, is now available. Meta Platforms and Microsoft have already placed substantial orders for the MI300X chip for their AI models.
These are only some of the great things coming for AMD. Below, let’s discuss some news and updates from AMD stock that you should look at when buying into this semiconductor stock.
AMD and AccelerComm
The AMD T2 Telco Accelerator Card, in collaboration with AccelerComm IP, offers a powerful and efficient platform for 5G O-DU deployments. The solution enhances LDPC forward error correction, optimizing O-RAN systems by offloading processing components and supporting more cell sites per system.
AccelerComm and AMD collaborated closely to advance 5G systems within the Open RAN ecosystem. Will Brown, AccelerComm’s Director of Product Management, emphasized their joint commitment to efficient 5G networks. Mike Wissolik, AMD’s Director of Product Marketing, highlighted the benefits of AMD’s 4th-generation EPYC processors in enhancing Cloud RAN solutions on the T2 Telco Accelerator Card.
MI300 Launch
AMD’s MI300 chips, backed by Lenovo, Supermicro, and Oracle, present a formidable challenge to Nvidia’s AI computing dominance. The MI300X GPUs boast superior memory and AI inference capabilities over Nvidia’s H100, with AMD highlighting cost savings due to improved memory.
AMD unveiled the Instinct MI300X, its most powerful accelerator for generative AI, challenging Nvidia’s dominance in the AI computing realm. The announcement was made during an event in San Jose, California.
The MI300X, part of AMD’s Instinct data center GPU family, will be integrated into Dell Technologies, HPE, Lenovo, and Supermicro servers. The MI300A variant is set to feature in servers from HPE, Supermicro, Gigabyte, and Eviden (an Atos subsidiary), which will arrive next year.
AMD released ROCm 6, positioning it as an open alternative to Nvidia’s CUDA platform. This update includes optimizations for large language models, enhanced libraries, and broader support for various frameworks, AI models, and machine learning pipelines. The introduction of AMD’s Instinct chips aligns with increased demand for AI GPU workloads, providing an alternative amid shortages of Nvidia’s powerful GPUs like the H100.
Bottom line
For many traders, the allure of AI proves irresistible. Investing in AMD stock, a company with diverse revenue streams beyond AI, offers a safer entry into this lucrative field. AMD’s CEO projects a $45 billion addressable market for its AI processors this year, up from an earlier estimate of $30 billion.
AMD is poised for substantial growth with the U.S. AI market alone valued at $103.7 billion last year and projected to reach $594 billion by 2032.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.
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The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors
The post AMD Is Not Backing Down, Even If It’s Against Nvidia 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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The introduction of AMD’s Instinct chips aligns with increased demand for AI GPU workloads, providing an alternative amid shortages of Nvidia’s powerful GPUs like the H100. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective. More From InvestorPlace ChatGPT IPO Could Shock the World, Make This Move Before the Announcement Musk’s “Project Omega” May Be Set to Mint New Millionaires.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Advanced Micro Devices (NASDAQ:AMD) has unveiled the “Ryzen 8040” microchips designed to enhance AI applications by 60%. AMD and AccelerComm The AMD T2 Telco Accelerator Card, in collaboration with AccelerComm IP, offers a powerful and efficient platform for 5G O-DU deployments. Mike Wissolik, AMD’s Director of Product Marketing, highlighted the benefits of AMD’s 4th-generation EPYC processors in enhancing Cloud RAN solutions on the T2 Telco Accelerator Card.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Advanced Micro Devices (NASDAQ:AMD) has unveiled the “Ryzen 8040” microchips designed to enhance AI applications by 60%. AMD and AccelerComm The AMD T2 Telco Accelerator Card, in collaboration with AccelerComm IP, offers a powerful and efficient platform for 5G O-DU deployments. AMD unveiled the Instinct MI300X, its most powerful accelerator for generative AI, challenging Nvidia’s dominance in the AI computing realm.
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AMD and AccelerComm The AMD T2 Telco Accelerator Card, in collaboration with AccelerComm IP, offers a powerful and efficient platform for 5G O-DU deployments. MI300 Launch AMD’s MI300 chips, backed by Lenovo, Supermicro, and Oracle, present a formidable challenge to Nvidia’s AI computing dominance. The MI300X, part of AMD’s Instinct data center GPU family, will be integrated into Dell Technologies, HPE, Lenovo, and Supermicro servers.
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a52950d5-6f3d-45de-930c-b6712c510d7b
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711443.0
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2023-12-15 00:00:00 UTC
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Reports: BP Plc Temporarily Suspends Transits Through Red Sea
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DCOMP
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https://www.nasdaq.com/articles/reports%3A-bp-plc-temporarily-suspends-transits-through-red-sea
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(RTTNews) - BP Plc has decided to temporarily suspend its ship operations through Red Sea due to security concerns. The decision followed recent Houthi attacks on ships in Red Sea. BP said the safety of its people is the company's priority. The decision will be subject to ongoing review, BP Plc noted.
Last week, Hapag-Lloyd and Maersk decided to divert their ships as the Iran-backed militants were targeting ships heading to Israel. On Saturday, MSC also decided to withdraw from operations through the Red Sea.
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) - BP Plc has decided to temporarily suspend its ship operations through Red Sea due to security concerns. The decision followed recent Houthi attacks on ships in Red Sea. On Saturday, MSC also decided to withdraw from operations through the Red Sea.
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(RTTNews) - BP Plc has decided to temporarily suspend its ship operations through Red Sea due to security concerns. The decision followed recent Houthi attacks on ships in Red Sea. The decision will be subject to ongoing review, BP Plc noted.
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(RTTNews) - BP Plc has decided to temporarily suspend its ship operations through Red Sea due to security concerns. Last week, Hapag-Lloyd and Maersk decided to divert their ships as the Iran-backed militants were targeting ships heading to Israel. 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) - BP Plc has decided to temporarily suspend its ship operations through Red Sea due to security concerns. BP said the safety of its people is the company's priority. Last week, Hapag-Lloyd and Maersk decided to divert their ships as the Iran-backed militants were targeting ships heading to Israel.
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42b1b8d8-8a15-4f6d-98c8-16282dafe906
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711444.0
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2023-12-15 00:00:00 UTC
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Is Coca-Cola a Smart Stock to Buy Before the End of 2023?
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https://www.nasdaq.com/articles/is-coca-cola-a-smart-stock-to-buy-before-the-end-of-2023
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As the year quickly comes to a close, it's a good idea for investors to reflect back on 2023 and see where they can improve as they go forward. Investing is a long-term game, and it's all about trying to get better.
Perhaps you made some money in the "Magnificent Seven" stocks, and you're now looking for some safety and stability. A business such as Coca-Cola (NYSE: KO), the furthest thing from a massive tech corporation, might be on your radar. Is this top beverage stock a smart buy before the end of 2023?
Here's what investors should be thinking about now.
This is a quality enterprise
Everyone has heard about Coca-Cola, whether it's because of the namesake soft drink or its other popular beverages like Vitamin Water and Dasani. This business has one of the strongest brands in the world. And because it has been around for such a long time, Coca-Cola has tremendous stability and staying power.
Investors should realize that this is a quality enterprise. That brand recognition creates a wide economic moat that protects Coca-Cola from rivals in the industry. This competitive standing isn't going to change, at least not for many decades.
This business has proven that it can perform well even in uncertain economic times. In the third quarter, Coca-Cola was able to increase revenue by 11%, a favorable outcome made possible by the company's proven pricing power. Customers are loyal, and they won't easily switch to a PepsiCo product even if it's slightly cheaper.
There are no concerns about this business ever running into financial woes. That's because Coca-Cola is incredibly profitable. In the third quarter, its operating margin was a superb 27.4%. And the business generated $7.9 billion of free cash flow through the first nine months of 2023.
That cash goes toward repurchasing the stock, which increased the equity ownership of existing shareholders. But the majority of the cash, $4.1 billion total in the last three quarters, was used to pay dividends. The current yield is more than 3.1%.
Even Warren Buffett agrees that this is a wonderful business. The conglomerate he runs, Berkshire Hathaway, owns 9.3% of the outstanding stock worth $23 billion at today's prices. Coca-Cola is the fourth largest position in the portfolio, and it generates roughly $736 million in passive annualized income for Berkshire, so Buffett probably has no intention to sell anytime soon.
Disappointing returns
For all of its favorable characteristics, you would think that Coca-Cola would be crushing the market. But this just isn't the case. To be fair, in the 1980s and 1990s this was a fantastic stock that beat the S&P 500 in each of those two decades.
The business hasn't been too kind to shareholders in more recent times, though. Let's look at the past decade. Since Dec. 2013, Coca-Cola has produced a total return (including dividends) of 107%. The S&P 500, on the other hand, would've more than tripled your money. It's the same story in the last one-, three-, and five-year periods as well.
The takeaway is that investors would simply be better off owning an index fund tracking the broader market than adding this dominant beverage business to their portfolios. That's because there isn't any reason to believe that the stock can beat the market over the long term due to limited growth prospects and how mature it is.
Of course, if the current price-to-earnings ratio of 23.7 dropped significantly to a much lower valuation, then perhaps shares would look more attractive as a deep-value play. But in my opinion, this is a stock that's probably best avoided right now for investors seeking higher returns.
Should you invest $1,000 in Coca-Cola right now?
Before you buy stock in Coca-Cola, 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 Coca-Cola 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 Berkshire Hathaway. The Motley Fool recommends the following options: long January 2024 $47.50 calls on Coca-Cola. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Coca-Cola is the fourth largest position in the portfolio, and it generates roughly $736 million in passive annualized income for Berkshire, so Buffett probably has no intention to sell anytime soon. The takeaway is that investors would simply be better off owning an index fund tracking the broader market than adding this dominant beverage business to their portfolios. That's because there isn't any reason to believe that the stock can beat the market over the long term due to limited growth prospects and how mature it is.
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Since Dec. 2013, Coca-Cola has produced a total return (including dividends) of 107%. Before you buy stock in Coca-Cola, 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 Coca-Cola 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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Before you buy stock in Coca-Cola, 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 Coca-Cola 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 Neil Patel and his clients have no position in any of the stocks mentioned.
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In the third quarter, Coca-Cola was able to increase revenue by 11%, a favorable outcome made possible by the company's proven pricing power. Before you buy stock in Coca-Cola, 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 Coca-Cola wasn't one of them. The Motley Fool has positions in and recommends Berkshire Hathaway.
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7d1f1d2e-4cc3-4896-bfe3-d31a2f45e63c
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711445.0
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2023-12-15 00:00:00 UTC
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Bull Run Bonanza: Top 3 Penny Stocks Primed for Explosive Growth
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https://www.nasdaq.com/articles/bull-run-bonanza%3A-top-3-penny-stocks-primed-for-explosive-growth
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
In the labyrinth of the stock market, discovering penny growth stocks often promises exhilarating prospects. This article navigates through the tumultuous waves of investment options, spotlighting three promising penny stocks. These companies illuminate diverse sectors: biotechnology, information technology, and autonomous vehicles, respectively.
The first one’s pioneering clinical trials target autoimmune diseases and oncologic disorders. Meanwhile, the second one’s robust financial performance and the third’s technological strides in autonomous driving paint a canvas of potential. These companies symbolize innovation and growth potential in their respective niches, from groundbreaking medical therapies to cutting-edge technological advancements.
These unassuming penny stocks possess the potential to redefine industries and rewrite the narratives of their respective sectors. From scientific innovations combating health challenges to cutting-edge technology shaping the future of transportation, these companies beckon investors on a thrilling expedition through uncharted territory.
Read more to discover their breakthroughs, financial resilience, and technological innovations. Let’s unravel why these penny stocks could stand on the brink of remarkable growth.
Penny Growth Stocks: Kezar Life Sciences (KZR)
Source: motorolka / Shutterstock.com
Kezar Life Sciences (NASDAQ:KZR) focuses on advancing its clinical pipeline, particularly with zetomipzomib and KZR-261. The focus demonstrates its inclination towards innovative therapies for immune-mediated and oncologic disorders.
Notably, the PALIZADE Phase 2b clinical trial for zetomipzomib in lupus nephritis (LN) is a cornerstone initiative. There is a target enrollment of 279 patients and a comprehensive study design involving two doses of zetomipzomib and a placebo. The trial aims to evaluate efficacy and safety over 52 weeks. The primary efficacy endpoint of achieving a complete renal response at Week 37 is a crucial metric for the success of this trial.
Additionally, the PORTOLA Phase 2a clinical trial focusing on zetomipzomib in autoimmune hepatitis (AIH) further exemplifies the depth and diversity of Kezar’s clinical research. This trial, targeting 24 patients, aims to measure the proportion of patients achieving a complete response via normalization of alanine aminotransferase (ALT) and aspartate aminotransferase (AST) levels by Week 24. The progression of these trials reflects Kezar’s commitment to addressing unmet medical needs in challenging autoimmune conditions.
Furthermore, the KZR-261 program in Phase 1 clinical trials for patients with solid malignancies showcases promising developments in broad-spectrum cancer treatment. Enrolling patients up to Cohort 8, with no significant safety concerns and observed dose-proportional exposure, indicates encouraging progress. Hence, this highlights Kezar’s ability to develop novel therapies for oncologic disorders, representing a potential breakthrough in cancer treatment.
Finally, assessing strategic partnerships, there is a collaboration and license agreement between Kezar and Everest Medicines to develop and commercialize zetomipzomib in Greater China, South Korea, and Southeast Asia. This strategic partnership demonstrates Kezar’s ability to establish synergistic collaborations that augment its clinical development efforts. Meanwhile, these collaborations open avenues for potential commercialization and market penetration in key geographical regions.
8×8 (EGHT)
Source: BESTWEB / Shutterstock
8×8 (NASDAQ:EGHT) demonstrates robust financial performance. For instance, in Q2 fiscal 2024, total revenue will reach $185 million, and service revenue will amount to $177.8 million. These figures exceeded the midpoint of the guidance range, demonstrating the company’s ability to meet and surpass its financial targets.
One of the key indicators of financial health, the gross margin, witnessed a noteworthy increase to 71.5%, marking a 1.40% rise year-over-year. This improvement indicates the company’s ability to control its production costs efficiently, enhancing profitability.
At the bottom line, the operating margin stood at an impressive 12.8%, surpassing the high end of the guidance range. Also, there is a significant growth of 162% in year-over-year operating profit. Thus, the growth reflects the company’s operational efficiency and effective cost management.
On the other hand, the company’s Annual Recurring Revenue (ARR) reached $707 million, showcasing a 2% increase year-over-year. This consistent growth in ARR indicates the stability and potential growth trajectory of the company’s revenue streams, with enterprise customers contributing 58% of the total ARR. Simply put, the company has substantial revenue from larger clients. Thus, this distribution highlights a balanced customer base, crucial for sustained business growth.
Moreover, the company is witnessing an increase of approximately $3 million sequentially and 1% year-over-year in enterprise ARR despite economic conditions. Critically, this growth signals the company’s resilience and effectiveness in retaining and growing its enterprise-level clientele.
Finally, the company maintains approximately 1,250 enterprise customers, which demonstrates the company’s successful customer retention efforts. The economic environment posed challenges, leading to a few customers shifting from enterprise to mid-market. However, the company’s strategies effectively manage such transitions that support its growth potential.
Aurora (AUR)
Source: T. Schneider / Shutterstock
Aurora’s (NASDAQ:AUR) proactive engagement with policymakers and regulators is a foundational strength. Its participation in federal legislative hearings, advocating for the benefits of autonomous trucking, has bolstered its position as a leader in the industry. The Safety Case, Aurora’s comprehensive assessment ensuring vehicle safety on public roads, has shown impressive progress.
Notably, the company’s Autonomy Readiness Measure (ARM) has surged to 84% by September 30, 2023, marking a significant 40-point increase since the first quarter, emphasizing its commitment to safety standards.
Additionally, the company’s advancements in hardware and software for autonomous vehicles prove its technological prowess. The company has achieved crucial milestones in completing claims related to the Aurora Driver hardware, services, and vehicle integration essential for its commercial launch. This ensures hardware reliability in harsh road conditions and develops sophisticated software for scenarios like sideswipe avoidance, demonstrating its commitment to robust product development.
The quantifiable progress metrics highlight its tangible accomplishments, such as logging over 20K commercial miles per week, delivering 3.2K+ loads autonomously, and achieving a 98% On-Road Autonomy Performance Indicator (API). Hence, these achievements signify Aurora’s capability to innovate and deliver tangible results in the real-world deployment of autonomous vehicles.
Finally, Aurora has strategic partnerships with leading truck original equipment manufacturers (OEMs) like PACCAR (NASDAQ:PCAR) and Volvo (OTCMKTS:VLVLY) Trucks. These partnerships and the hardware-as-a-service collaboration with Continental (OTCMKTS:CTTAY) indicate its focus on industry collaboration.
Therefore, these alliances aim to jointly develop, manufacture, and service future generations of Aurora Driver hardware, which may lead to a cost-effective structure aligned with long-term profitability goals.
On the date of publication, Yiannis Zourmpanos did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Yiannis Zourmpanos is the founder of Yiazou Capital Research, a stock-market research platform designed to elevate the due diligence process through in-depth business analysis.
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The post Bull Run Bonanza: Top 3 Penny Stocks Primed for Explosive Growth 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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Finally, assessing strategic partnerships, there is a collaboration and license agreement between Kezar and Everest Medicines to develop and commercialize zetomipzomib in Greater China, South Korea, and Southeast Asia. The quantifiable progress metrics highlight its tangible accomplishments, such as logging over 20K commercial miles per week, delivering 3.2K+ loads autonomously, and achieving a 98% On-Road Autonomy Performance Indicator (API). The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors The post Bull Run Bonanza: Top 3 Penny Stocks Primed for Explosive Growth appeared first on InvestorPlace.
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Penny Growth Stocks: Kezar Life Sciences (KZR) Source: motorolka / Shutterstock.com Kezar Life Sciences (NASDAQ:KZR) focuses on advancing its clinical pipeline, particularly with zetomipzomib and KZR-261. Source: BESTWEB / Shutterstock 8×8 (NASDAQ:EGHT) demonstrates robust financial performance. The Safety Case, Aurora’s comprehensive assessment ensuring vehicle safety on public roads, has shown impressive progress.
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Penny Growth Stocks: Kezar Life Sciences (KZR) Source: motorolka / Shutterstock.com Kezar Life Sciences (NASDAQ:KZR) focuses on advancing its clinical pipeline, particularly with zetomipzomib and KZR-261. This consistent growth in ARR indicates the stability and potential growth trajectory of the company’s revenue streams, with enterprise customers contributing 58% of the total ARR. Finally, the company maintains approximately 1,250 enterprise customers, which demonstrates the company’s successful customer retention efforts.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips In the labyrinth of the stock market, discovering penny growth stocks often promises exhilarating prospects. These companies symbolize innovation and growth potential in their respective niches, from groundbreaking medical therapies to cutting-edge technological advancements. Also, there is a significant growth of 162% in year-over-year operating profit.
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59dc918f-d3d7-404f-a12a-0251d9a377a9
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711446.0
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2023-12-15 00:00:00 UTC
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Where Will McDonald's Stock Be in 3 Years?
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DCOMP
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https://www.nasdaq.com/articles/where-will-mcdonalds-stock-be-in-3-years-0
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There's no question that McDonald's (NYSE: MCD) is a household name. While most people view the company from the perspective of a customer, it's also worthwhile to consider the investment implications.
In the last three years, shares of this top restaurant business have risen by 35% (as of Dec. 15). That gain does exceed the S&P 500, but it's not incredibly impressive. However, that doesn't mean this isn't a high-quality company.
As we look toward the next three years, let's try to figure out if McDonald's stock can be a huge winner for shareholders.
Management is hungry for growth
You would think a fast-food giant like McDonald's, with about 40,000 locations worldwide and trailing-12-month sales of nearly $25 billion, would be limited in its growth potential. But this doesn't appear to be the case at all.
The management team just set a lofty target. "By the end of 2027, we will expand our footprint to 50,000 McDonald's restaurants across the world," Manu Steijaert, chief customer officer, said during an investor update. That translates to a roughly 25% expansion of the current base.
It's not surprising that in its most mature market, the U.S., there will only be 900 new openings by 2027. A sizable number of stores, more than 3,500, will open in China.
Moreover, the innovation pipeline isn't dead. McDonald's new beverage-focused concept, CosMc's, is a perfect example of how the business can try to move the needle.
A continued focus on technology and digital transformation will underpin McDonald's growth ambitions. The company wants to have 250 million 90-day rewards members worldwide by 2027, with 30% of delivery orders completed through the mobile app. You'll see similar trends happening across the restaurant sector, as chains aim to increase accessibility and convenience for customers.
Economic moat protecting profits
It's usually a good idea for investors to take any executive team's growth targets with a grain of salt, but it's not hard to be optimistic about McDonald's. That's because this business has a powerful brand and scale advantages that protect its competitive position. And with a history that spans 80 years, this company has durability.
Another important factor that will propel McDonald's in the years ahead is management's goal to continue boosting profitability. "Beyond '24, we expect our progress in driving growth and creating leverage to continue with greater operating margin expansion," CFO Ian Borden said.
This isn't to say that McDonald's isn't already extremely profitable. The company's operating margin last quarter came in at a stellar 48%. To see this improve would be a welcome sight for shareholders.
By operating a capital-light franchise model, with just 5% of stores being company-owned, the business is able to generate high incremental margins on its revenue stream. This leads to the production of lots of free cash flow. McDonald's pays out a good chunk of this in the form of dividends, and income-seeking investors might find the current 2.3% yield compelling.
Is it time to invest in McDonald's stock?
An expanding store footprint, rising profitability, and a powerful global brand are all factors that could make anyone want to buy this stock. But we must also consider the valuation as we look toward the next three years.
As of this writing, shares are trading at a price-to-earnings multiple of 25.3. This might seem a bit expensive at first glance, but this ratio represents a discount to the trailing one-, three-, and five-year average valuations for the stock. This presents a favorable setup for investors.
I think the stock will perform well in the next three years should management make meaningful strides toward its goals.
Should you invest $1,000 in McDonald's right now?
Before you buy stock in McDonald's, 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 McDonald's 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 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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"By the end of 2027, we will expand our footprint to 50,000 McDonald's restaurants across the world," Manu Steijaert, chief customer officer, said during an investor update. Economic moat protecting profits It's usually a good idea for investors to take any executive team's growth targets with a grain of salt, but it's not hard to be optimistic about McDonald's. "Beyond '24, we expect our progress in driving growth and creating leverage to continue with greater operating margin expansion," CFO Ian Borden said.
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An expanding store footprint, rising profitability, and a powerful global brand are all factors that could make anyone want to buy this stock. Before you buy stock in McDonald's, 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 McDonald's 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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As we look toward the next three years, let's try to figure out if McDonald's stock can be a huge winner for shareholders. Before you buy stock in McDonald's, 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 McDonald's 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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"Beyond '24, we expect our progress in driving growth and creating leverage to continue with greater operating margin expansion," CFO Ian Borden said. But we must also consider the valuation as we look toward the next three years. Before you buy stock in McDonald's, 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 McDonald's wasn't one of them.
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711447.0
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2023-12-15 00:00:00 UTC
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Here Is Why Bargain Hunters Would Love Fast-paced Mover ACRES Commercial (ACR)
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https://www.nasdaq.com/articles/here-is-why-bargain-hunters-would-love-fast-paced-mover-acres-commercial-acr
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Momentum investors typically don't time the market or "buy low and sell high." In other words, they avoid betting on cheap stocks and waiting long for them to recover. Instead, they believe that "buying high and selling higher" is the way to make far more money in lesser time.
Who doesn't like betting on fast-moving trending stocks? But determining the right entry point isn't easy. Often, these stocks lose momentum once their valuation moves ahead of their future growth potential. In such a situation, investors find themselves loaded up on expensive shares with limited to no upside or even a downside. So, going all-in on momentum could be risky at times.
It could be safer to invest in bargain stocks that have been witnessing price momentum recently. While the Zacks Momentum Style Score (part of the Zacks Style Scores system), which pays close attention to trends in a stock's price or earnings, is pretty useful in identifying great momentum stocks, our 'Fast-Paced Momentum at a Bargain' screen comes handy in spotting fast-moving stocks that are still attractively priced.
ACRES Commercial (ACR) is one of the several great candidates that made it through the screen. While there are numerous reasons why this stock is a great choice, here are the most vital ones:
Investors' growing interest in a stock is reflected in its recent price increase. A price change of 15.4% over the past four weeks positions the stock of this commercial real estate investment trust well in this regard.
While any stock can see a spike in price for a short period, it takes a real momentum player to deliver positive returns for a longer time frame. ACR meets this criterion too, as the stock gained 7.2% over the past 12 weeks.
Moreover, the momentum for ACR is fast paced, as the stock currently has a beta of 1.82. This indicates that the stock moves 82% higher than the market in either direction.
Given this price performance, it is no surprise that ACR has a Momentum Score of A, which indicates that this is the right time to enter the stock to take advantage of the momentum with the highest probability of success.
In addition to a favorable Momentum Score, an upward trend in earnings estimate revisions has helped ACR earn a Zacks Rank #1 (Strong Buy). Our research shows that the momentum-effect is quite strong among Zacks Rank #1 and #2 stocks. That's because as covering analysts raise their earnings estimates for a stock, more and more investors take an interest in it, helping its price race to keep up. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Most importantly, despite possessing fast-paced momentum features, ACR is trading at a reasonable valuation. In terms of Price-to-Sales ratio, which is considered as one of the best valuation metrics, the stock looks quite cheap now. ACR is currently trading at 0.82 times its sales. In other words, investors need to pay only 82 cents for each dollar of sales.
So, ACR appears to have plenty of room to run, and that too at a fast pace.
In addition to ACR, there are several other stocks that currently pass through our 'Fast-Paced Momentum at a Bargain' screen. You may consider investing in them and start looking for the newest stocks that fit these criteria.
This is not the only screen that could help you find your next winning stock pick. Based on your personal investing style, you may choose from over 45 Zacks Premium Screens that are strategically created to beat the market.
However, keep in mind that the key to a successful stock-picking strategy is to ensure that it produced profitable results in the past. You could easily do that with the help of the Zacks Research Wizard. In addition to allowing you to backtest the effectiveness of your strategy, the program comes loaded with some of our most successful stock-picking strategies.
Click here to sign up for a free trial to the Research Wizard today.
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
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ACRES Commercial Realty Corp. (ACR) : 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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While any stock can see a spike in price for a short period, it takes a real momentum player to deliver positive returns for a longer time frame. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Most importantly, despite possessing fast-paced momentum features, ACR is trading at a reasonable valuation. From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%.
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While the Zacks Momentum Style Score (part of the Zacks Style Scores system), which pays close attention to trends in a stock's price or earnings, is pretty useful in identifying great momentum stocks, our 'Fast-Paced Momentum at a Bargain' screen comes handy in spotting fast-moving stocks that are still attractively priced. In addition to a favorable Momentum Score, an upward trend in earnings estimate revisions has helped ACR earn a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Most importantly, despite possessing fast-paced momentum features, ACR is trading at a reasonable valuation.
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While the Zacks Momentum Style Score (part of the Zacks Style Scores system), which pays close attention to trends in a stock's price or earnings, is pretty useful in identifying great momentum stocks, our 'Fast-Paced Momentum at a Bargain' screen comes handy in spotting fast-moving stocks that are still attractively priced. Given this price performance, it is no surprise that ACR has a Momentum Score of A, which indicates that this is the right time to enter the stock to take advantage of the momentum with the highest probability of success. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Most importantly, despite possessing fast-paced momentum features, ACR is trading at a reasonable valuation.
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This indicates that the stock moves 82% higher than the market in either direction. Given this price performance, it is no surprise that ACR has a Momentum Score of A, which indicates that this is the right time to enter the stock to take advantage of the momentum with the highest probability of success. Be First to New Top 10 Stocks >> Want the latest recommendations from Zacks Investment Research?
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7beb1a8b-8a96-4afc-bc09-a6ef1a89a8aa
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711448.0
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2023-12-15 00:00:00 UTC
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Carrols Restaurant (TAST) Shows Fast-paced Momentum But Is Still a Bargain Stock
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DCOMP
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https://www.nasdaq.com/articles/carrols-restaurant-tast-shows-fast-paced-momentum-but-is-still-a-bargain-stock-0
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nan
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nan
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Momentum investors typically don't time the market or "buy low and sell high." In other words, they avoid betting on cheap stocks and waiting long for them to recover. Instead, they believe that "buying high and selling higher" is the way to make far more money in lesser time.
Everyone likes betting on fast-moving trending stocks, but it isn't easy to determine the right entry point. These stocks often lose momentum when their future growth potential fails to justify their swelled-up valuation. In that phase, investors find themselves invested in shares that have limited to no upside or even a downside. So, betting on a stock just by looking at the traditional momentum parameters could be risky at times.
It could be safer to invest in bargain stocks that have been witnessing price momentum recently. While the Zacks Momentum Style Score (part of the Zacks Style Scores system), which pays close attention to trends in a stock's price or earnings, is pretty useful in identifying great momentum stocks, our 'Fast-Paced Momentum at a Bargain' screen comes handy in spotting fast-moving stocks that are still attractively priced.
Carrols Restaurant Group (TAST) is one of the several great candidates that made it through the screen. While there are numerous reasons why this stock is a great choice, here are the most vital ones:
A dash of recent price momentum reflects growing interest of investors in a stock. With a four-week price change of 3.3%, the stock of this restaurant operator is certainly well-positioned in this regard.
While any stock can see a spike in price for a short period, it takes a real momentum player to deliver positive returns for a longer time frame. TAST meets this criterion too, as the stock gained 17% over the past 12 weeks.
Moreover, the momentum for TAST is fast paced, as the stock currently has a beta of 2.36. This indicates that the stock moves 136% higher than the market in either direction.
Given this price performance, it is no surprise that TAST has a Momentum Score of A, which indicates that this is the right time to enter the stock to take advantage of the momentum with the highest probability of success.
In addition to a favorable Momentum Score, an upward trend in earnings estimate revisions has helped TAST earn a Zacks Rank #1 (Strong Buy). Our research shows that the momentum-effect is quite strong among Zacks Rank #1 and #2 stocks. That's because as covering analysts raise their earnings estimates for a stock, more and more investors take an interest in it, helping its price race to keep up. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Most importantly, despite possessing fast-paced momentum features, TAST is trading at a reasonable valuation. In terms of Price-to-Sales ratio, which is considered as one of the best valuation metrics, the stock looks quite cheap now. TAST is currently trading at 0.21 times its sales. In other words, investors need to pay only 21 cents for each dollar of sales.
So, TAST appears to have plenty of room to run, and that too at a fast pace.
In addition to TAST, there are several other stocks that currently pass through our 'Fast-Paced Momentum at a Bargain' screen. You may consider investing in them and start looking for the newest stocks that fit these criteria.
This is not the only screen that could help you find your next winning stock pick. Based on your personal investing style, you may choose from over 45 Zacks Premium Screens that are strategically created to beat the market.
However, keep in mind that the key to a successful stock-picking strategy is to ensure that it produced profitable results in the past. You could easily do that with the help of the Zacks Research Wizard. In addition to allowing you to backtest the effectiveness of your strategy, the program comes loaded with some of our most successful stock-picking strategies.
Click here to sign up for a free trial to the Research Wizard today.
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
Be First to New Top 10 Stocks >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Carrols Restaurant Group, Inc. (TAST) : 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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While any stock can see a spike in price for a short period, it takes a real momentum player to deliver positive returns for a longer time frame. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Most importantly, despite possessing fast-paced momentum features, TAST is trading at a reasonable valuation. From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%.
|
While the Zacks Momentum Style Score (part of the Zacks Style Scores system), which pays close attention to trends in a stock's price or earnings, is pretty useful in identifying great momentum stocks, our 'Fast-Paced Momentum at a Bargain' screen comes handy in spotting fast-moving stocks that are still attractively priced. In addition to a favorable Momentum Score, an upward trend in earnings estimate revisions has helped TAST earn a Zacks Rank #1 (Strong Buy). Click to get this free report Carrols Restaurant Group, Inc. (TAST) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
While the Zacks Momentum Style Score (part of the Zacks Style Scores system), which pays close attention to trends in a stock's price or earnings, is pretty useful in identifying great momentum stocks, our 'Fast-Paced Momentum at a Bargain' screen comes handy in spotting fast-moving stocks that are still attractively priced. While there are numerous reasons why this stock is a great choice, here are the most vital ones: A dash of recent price momentum reflects growing interest of investors in a stock. Given this price performance, it is no surprise that TAST has a Momentum Score of A, which indicates that this is the right time to enter the stock to take advantage of the momentum with the highest probability of success.
|
While the Zacks Momentum Style Score (part of the Zacks Style Scores system), which pays close attention to trends in a stock's price or earnings, is pretty useful in identifying great momentum stocks, our 'Fast-Paced Momentum at a Bargain' screen comes handy in spotting fast-moving stocks that are still attractively priced. Given this price performance, it is no surprise that TAST has a Momentum Score of A, which indicates that this is the right time to enter the stock to take advantage of the momentum with the highest probability of success. In addition to TAST, there are several other stocks that currently pass through our 'Fast-Paced Momentum at a Bargain' screen.
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69aca48e-4168-4479-a220-7127fef7d306
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711449.0
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2023-12-15 00:00:00 UTC
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Here's What Could Help InterDigital (IDCC) Maintain Its Recent Price Strength
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DCOMP
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https://www.nasdaq.com/articles/heres-what-could-help-interdigital-idcc-maintain-its-recent-price-strength
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nan
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nan
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While "the trend is your friend" when it comes to short-term investing or trading, timing entries into the trend is a key determinant of success. And increasing the odds of success by making sure the sustainability of a trend isn't easy.
Often, the direction of a stock's price movement reverses quickly after taking a position in it, making investors incur a short-term capital loss. So, it's important to ensure that there are enough factors -- such as sound fundamentals, positive earnings estimate revisions, etc. -- that could keep the momentum in the stock going.
Our "Recent Price Strength" screen, which is created on a unique short-term trading strategy, could be pretty useful in this regard. This predefined screen makes it really easy to shortlist the stocks that have enough fundamental strength to maintain their recent uptrend. Also, the screen passes only the stocks that are trading in the upper portion of their 52-week high-low range, which is usually an indicator of bullishness.
InterDigital (IDCC) 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. IDCC is quite a good fit in this regard, gaining 34.9% over this period.
However, it's not enough to look at the price change for around three months, as it doesn't reflect any trend reversal that might have happened in a shorter time frame. It's important for a potential winner to maintain the price trend. A price increase of 13.3% over the past four weeks ensures that the trend is still in place for the stock of this wireless research and development company.
Moreover, IDCC is currently trading at 99.2% of its 52-week High-Low Range, hinting that it can be on the verge of a breakout.
Looking at the fundamentals, the stock currently carries a Zacks Rank #1 (Strong Buy), which means it is in the top 5% of more than the 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises -- the key factors that impact a stock's near-term price movements.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Another factor that confirms the company's fundamental strength is its Average Broker Recommendation of #1 (Strong Buy). This indicates that the brokerage community is highly optimistic about the stock's near-term price performance.
So, the price trend in IDCC may not reverse anytime soon.
In addition to IDCC, there are several other stocks that currently pass through our "Recent Price Strength" screen. You may consider investing in them and start looking for the newest stocks that fit these criteria.
This is not the only screen that could help you find your next winning stock pick. Based on your personal investing style, you may choose from over 45 Zacks Premium Screens that are strategically created to beat the market.
However, keep in mind that the key to a successful stock-picking strategy is to ensure that it produced profitable results in the past. You could easily do that with the help of the Zacks Research Wizard. In addition to allowing you to backtest the effectiveness of your strategy, the program comes loaded with some of our most successful stock-picking strategies.
Click here to sign up for a free trial to the Research Wizard today.
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
Be First to New Top 10 Stocks >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
InterDigital, Inc. (IDCC) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Often, the direction of a stock's price movement reverses quickly after taking a position in it, making investors incur a short-term capital loss. A solid price increase over a period of 12 weeks reflects investors' continued willingness to pay more for the potential upside in a stock. 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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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 InterDigital, Inc. (IDCC) : 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 #1 (Strong Buy), which means it is in the top 5% of more than the 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises -- the key factors that impact a stock's near-term price movements. The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Another factor that confirms the company's fundamental strength is its Average Broker Recommendation of #1 (Strong Buy).
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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). So, the price trend in IDCC may not reverse anytime soon. Be First to New Top 10 Stocks >> Want the latest recommendations from Zacks Investment Research?
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549eafb8-63e4-4bf6-b754-e359f848184a
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711450.0
|
2023-12-15 00:00:00 UTC
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Gen Z Investors: 2 Top Tech Stocks to Buy Now
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DCOMP
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https://www.nasdaq.com/articles/gen-z-investors%3A-2-top-tech-stocks-to-buy-now
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nan
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nan
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In some ways, the idea of buying different stocks according to the generation you belong to might seem silly. After all, a winner on the stock market is a winner, but there are some key differences between the way generations invest.
The most important one is their time horizon. Younger investors naturally have a longer time horizon than older investors, which generally manifests itself in greater risk tolerance.
Younger investors are better off trying to find the next Amazon or Tesla because they have the time to stay in the market to reap the benefit of those investments if they pay off. On the other hand, older investors such as retirees are more likely to invest in lower-risk assets like dividend stocks or bonds that come with an income stream and are less likely to result in steep losses.
Younger investors also have another advantage, which is the freedom to make mistakes. Since Gen Zers still have a number of working years ahead of them, and their portfolios are likely small, how their investments perform is less important than earning potential. They have a good opportunity to experiment and find the investing style that's best for them.
Lastly, as Peter Lynch advised, investors should buy what they know: They will have the greatest advantage by buying companies whose products or businesses they are familiar with.
Buying what you know means different things for different generations, of course. On that note, here are two tech stocks that look like great buys for Gen Z investors.
Image source: Getty Images.
1. Block
Few companies are as close to the cutting edge of financial services as Block (NYSE: SQ), which owns Square; Cash App; the Afterpay buy-now-pay-later (BNPL) service; the Tidal streaming service; TBD, a decentralized platform targeting Bitcoin and DeFi; as well as other smaller businesses.
Led by Jack Dorsey, Block seems to jibe well with Gen Z sensitivities. Dorsey, for example, is a big fan of Bitcoin, and Block holds Bitcoin on its balance sheet. Gen Zers are also fond of the digital, blockchain-based currencies, cryptocurrencies are actually the most widely held asset class among Gen Z after stocks, with 54% of Gen Z owning crypto and 60% owning stocks.
There's another key overlap between Gen Z and Block as well. This generation is fond of the Cash App, Block's peer-to-peer money transfer app that competes with PayPal's Venmo.
Though PayPal is still the most popular, Cash App does better with Gen Z than it does with other generations. According to data from YPulse, 55% of Gen Z has used PayPal, with Cash App coming in second with 38% adoption. A Piper Sandler survey of teens found that Cash App was the No. 1 choice for 50% of respondents.
Lastly, there's a more important reason for Gen Zers to consider investing in Block. The company continues to deliver solid growth and is penetrating massive addressable markets across all of its businesses.
Gross profit rose 21% to $1.9 billion in its most recent quarter, and its profit margins are ramping up quickly. With interest rates expected to come down next year, Block could be a big winner as that could help grease financial services companies.
2. Lemonade
Another stock with many of the same qualities as Block that appeals to Gen Z is Lemonade (NYSE: LMND), the insurance tech that is based on artificial intelligence (AI). It has targeted Gen Z with products like renters insurance, auto insurance, and pet insurance, and plans to keep expanding its product suite.
Like Block, Lemonade is targeting a massive addressable market and plans to win market share by focusing on the youngest insurance buyers -- Gen Zers -- who prefer an app-based interface and not having to talk to anyone on the phone.
The company has had a rough time on the stock market since its 2020 initial public offering (IPO), as it's still substantially below its IPO price of $29. However the business is growing quickly and continues to gain market share thanks to Gen Z and millennials, and it just passed 2 million active customers.
In its third quarter, revenue grew 55% to $114.5 million, and adjusted gross profit nearly doubled to $24.9 million. But the company is still losing money based on adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) with a loss of $40.2 million in the quarter.
Lemonade's investment in AI could give it an edge as well, though it's still unclear if that strategic bet will pay off. The stock carries lots of risk, but its valuation is reasonable: It trades at a price-to-sales ratio of around 3. Like Block, Lemonade should also benefit from falling interest rates, which tend to make unprofitable, high-growth stocks more attractive.
It will also make it easier for the company to borrow money if it needs to, and encourage consumer and business spending, which favors Lemonade.
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
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Jeremy Bowman has positions in Amazon, Block, Lemonade, and PayPal. The Motley Fool has positions in and recommends Amazon, Bitcoin, Block, Lemonade, PayPal, and Tesla. 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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On the other hand, older investors such as retirees are more likely to invest in lower-risk assets like dividend stocks or bonds that come with an income stream and are less likely to result in steep losses. However the business is growing quickly and continues to gain market share thanks to Gen Z and millennials, and it just passed 2 million active customers. But the company is still losing money based on adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) with a loss of $40.2 million in the quarter.
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Block Few companies are as close to the cutting edge of financial services as Block (NYSE: SQ), which owns Square; Cash App; the Afterpay buy-now-pay-later (BNPL) service; the Tidal streaming service; TBD, a decentralized platform targeting Bitcoin and DeFi; as well as other smaller businesses. Like Block, Lemonade is targeting a massive addressable market and plans to win market share by focusing on the youngest insurance buyers -- Gen Zers -- who prefer an app-based interface and not having to talk to anyone on the phone. The Motley Fool has positions in and recommends Amazon, Bitcoin, Block, Lemonade, PayPal, and Tesla.
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Block Few companies are as close to the cutting edge of financial services as Block (NYSE: SQ), which owns Square; Cash App; the Afterpay buy-now-pay-later (BNPL) service; the Tidal streaming service; TBD, a decentralized platform targeting Bitcoin and DeFi; as well as other smaller businesses. Gen Zers are also fond of the digital, blockchain-based currencies, cryptocurrencies are actually the most widely held asset class among Gen Z after stocks, with 54% of Gen Z owning crypto and 60% owning stocks. 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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Lastly, there's a more important reason for Gen Zers to consider investing in Block. 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.
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9abf94ef-b5c4-4431-a634-20cc0464461e
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711451.0
|
2023-12-15 00:00:00 UTC
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Hibbett (HIBB) Shows Fast-paced Momentum But Is Still a Bargain Stock
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DCOMP
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https://www.nasdaq.com/articles/hibbett-hibb-shows-fast-paced-momentum-but-is-still-a-bargain-stock
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nan
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nan
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Momentum investors typically don't time the market or "buy low and sell high." In other words, they avoid betting on cheap stocks and waiting long for them to recover. Instead, they believe that "buying high and selling higher" is the way to make far more money in lesser time.
Who doesn't like betting on fast-moving trending stocks? But determining the right entry point isn't easy. Often, these stocks lose momentum once their valuation moves ahead of their future growth potential. In such a situation, investors find themselves loaded up on expensive shares with limited to no upside or even a downside. So, going all-in on momentum could be risky at times.
It could be safer to invest in bargain stocks that have been witnessing price momentum recently. While the Zacks Momentum Style Score (part of the Zacks Style Scores system), which pays close attention to trends in a stock's price or earnings, is pretty useful in identifying great momentum stocks, our 'Fast-Paced Momentum at a Bargain' screen comes handy in spotting fast-moving stocks that are still attractively priced.
Hibbett (HIBB) is one of the several great candidates that made it through the screen. While there are numerous reasons why this stock is a great choice, here are the most vital ones:
Investors' growing interest in a stock is reflected in its recent price increase. A price change of 29.5% over the past four weeks positions the stock of this sporting goods retailer well in this regard.
While any stock can see a spike in price for a short period, it takes a real momentum player to deliver positive returns for a longer time frame. HIBB meets this criterion too, as the stock gained 58.1% over the past 12 weeks.
Moreover, the momentum for HIBB is fast paced, as the stock currently has a beta of 1.7. This indicates that the stock moves 70% higher than the market in either direction.
Given this price performance, it is no surprise that HIBB has a Momentum Score of B, which indicates that this is the right time to enter the stock to take advantage of the momentum with the highest probability of success.
In addition to a favorable Momentum Score, an upward trend in earnings estimate revisions has helped HIBB earn a Zacks Rank #1 (Strong Buy). Our research shows that the momentum-effect is quite strong among Zacks Rank #1 and #2 stocks. That's because as covering analysts raise their earnings estimates for a stock, more and more investors take an interest in it, helping its price race to keep up. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Most importantly, despite possessing fast-paced momentum features, HIBB is trading at a reasonable valuation. In terms of Price-to-Sales ratio, which is considered as one of the best valuation metrics, the stock looks quite cheap now. HIBB is currently trading at 0.47 times its sales. In other words, investors need to pay only 47 cents for each dollar of sales.
So, HIBB appears to have plenty of room to run, and that too at a fast pace.
In addition to HIBB, there are several other stocks that currently pass through our 'Fast-Paced Momentum at a Bargain' screen. You may consider investing in them and start looking for the newest stocks that fit these criteria.
This is not the only screen that could help you find your next winning stock pick. Based on your personal investing style, you may choose from over 45 Zacks Premium Screens that are strategically created to beat the market.
However, keep in mind that the key to a successful stock-picking strategy is to ensure that it produced profitable results in the past. You could easily do that with the help of the Zacks Research Wizard. In addition to allowing you to backtest the effectiveness of your strategy, the program comes loaded with some of our most successful stock-picking strategies.
Click here to sign up for a free trial to the Research Wizard today.
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
Be First to New Top 10 Stocks >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Hibbett, Inc. (HIBB) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
While any stock can see a spike in price for a short period, it takes a real momentum player to deliver positive returns for a longer time frame. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Most importantly, despite possessing fast-paced momentum features, HIBB is trading at a reasonable valuation. From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%.
|
While the Zacks Momentum Style Score (part of the Zacks Style Scores system), which pays close attention to trends in a stock's price or earnings, is pretty useful in identifying great momentum stocks, our 'Fast-Paced Momentum at a Bargain' screen comes handy in spotting fast-moving stocks that are still attractively priced. In addition to a favorable Momentum Score, an upward trend in earnings estimate revisions has helped HIBB earn a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Most importantly, despite possessing fast-paced momentum features, HIBB is trading at a reasonable valuation.
|
While the Zacks Momentum Style Score (part of the Zacks Style Scores system), which pays close attention to trends in a stock's price or earnings, is pretty useful in identifying great momentum stocks, our 'Fast-Paced Momentum at a Bargain' screen comes handy in spotting fast-moving stocks that are still attractively priced. Given this price performance, it is no surprise that HIBB has a Momentum Score of B, which indicates that this is the right time to enter the stock to take advantage of the momentum with the highest probability of success. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Most importantly, despite possessing fast-paced momentum features, HIBB is trading at a reasonable valuation.
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Given this price performance, it is no surprise that HIBB has a Momentum Score of B, which indicates that this is the right time to enter the stock to take advantage of the momentum with the highest probability of success. In addition to HIBB, there are several other stocks that currently pass through our 'Fast-Paced Momentum at a Bargain' screen. Be First to New Top 10 Stocks >> Want the latest recommendations from Zacks Investment Research?
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96277335-5077-4a07-b8e6-bb5d26a9d239
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711452.0
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2023-12-15 00:00:00 UTC
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Lockheed (LMT) Wins $663M Deal to Aid F-35 Fighter Jet Program
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DCOMP
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https://www.nasdaq.com/articles/lockheed-lmt-wins-%24663m-deal-to-aid-f-35-fighter-jet-program
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nan
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nan
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Lockheed Martin Corp.’s LMT Aeronautics business segment recently clinched a modification contract involving the F-35 fighter jets. The award has been offered by the Naval Air Systems Command, Patuxent River, MD.
Details of the Deal
Valued at $663.1 million, the contract is projected to be completed by March 2024. This latest modification will enable Lockheed to provide logistics support for delivered F-35 Lightning II Joint Strike Fighter Air Systems.
This logistics support includes ground maintenance activities, action request solutions, depot activation activities, automatic logistics information system operations and maintenance, reliability and maintainability, supply-chain management, pilot training, maintainer training and training system sustainment.
The contract will serve the U.S. Marine Corps, Navy, Foreign Military Sales customers, and non-U.S. Department of Defense participants.
The majority of the work related to this deal will be carried out in Fort Worth, TX and Orlando, FL.
Importance of F-35 for LMT
Lockheed enjoys a dominant position in the global military aircraft space with its F-35 fleet. The stealth aircraft boasts features that make it an ideal choice for many nations. The company’s constant efforts to modernize and upgrade the aircraft using advanced technologies to meet current warfare needs boost demand significantly.
The F-35 program remained the largest revenue generator for the Aeronautics business unit. It also accounted for 66% of the segment’s net sales in 2022.
Lockheed has delivered 974 F-35 airplanes since the program's inception, with 391 jets in the backlog as of Sep 24, 2023. This, along with the latest contract win, boosts sales expectations for the segment.
Looking ahead, LMT expects to deliver 97 F-35 jets in 2023 and 147-153 aircraft in 2024. The jet deliveries for 2025 and beyond are still estimated to be 156. Successful delivery of the F-35 jets in due time, as expected by the company, should significantly bolster its revenues in the coming quarters.
Growth Prospects
Amid the widespread geopolitical tensions prevalent across the globe, nations are rapidly augmenting their defense purchase to strengthen their warfare capabilities. This has led to an increased demand for fighter jets, which form an integral part of a country’s defense products.
Looking ahead, per a report by the Mordor Intelligence firm, the global military aviation market is expected to witness a CAGR of 7.37% during 2023-2028. Such projections indicate immense opportunities for Lockheed to reap the benefits of military aviation market expansion, with its Aeronautics business segment engaged in the research, design, development, manufacture, integration, sustainment, support and upgrade of advanced military aircraft.
Notably, Aeronautics’ major programs include C-130 Hercules international tactical airlifter; F-16 Fighting Falcon jet; and the F-22 Raptor stealth fighter aircraft, in addition to F-35 jets.
Peer Opportunities
Some other prominent defense majors involved in the manufacturing of military aircraft that are expected to gain from the military aviation market’s growth opportunities are Northrop Grumman NOC, Airbus Group EADSY and Textron TXT.
Since its inception, Northrop Grumman has been a pioneer in the development of manned aircraft. From fighter jets and stealth bombers to surveillance and electronic warfare, it has been providing manned solutions to customers worldwide. The company has built some of the world’s most advanced aircraft, ranging from the innovative B-2 Spirit stealth bomber to the game-changing E-2D Advanced Hawkeye.
NOC’s Aeronautics Systems unit is engaged in the design, development, production, integration, sustainment and modernization of advanced aircraft systems. Meanwhile, the Mission Systems segment offers advanced mission solutions and multifunction systems like Airborne Early Warning & Control, the LONGBOW Fire Control Radar and the Scalable Agile Beam Radar.
Airbus Group’s military aircraft consists of the A400M, the C295 tactical transporter, the new-generation A330 Multi Role Tanker Transport and the Eurofighter, the most advanced swing-role fighter ever conceived.
The company has been providing its aircraft customers with an extended portfolio of services for more than 40 years, ranging from the training of flight and ground staff to live firing exercises anywhere worldwide.
Textron’s military aircraft includes the Beechcraft T-6 training aircraft and the Beechcraft AT-6 light-attack aircraft. The company also manufactures the Beechcraft Model 18 light bomber, the T-44 and T-34 training aircraft, and the T-1A jet trainer.
TXT’s subsidiary, Able Aerospace Services, provides component and maintenance, repair and overhaul services in support of commercial and military fixed and rotor-wing aircraft.
Price Movement
Shares of Lockheed have gained 7.2% in the past six months compared with the industry’s 2.8% rise.
Image Source: Zacks Investment Research
Zacks Rank
Lockheed currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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
Lockheed Martin Corporation (LMT) : Free Stock Analysis Report
Northrop Grumman Corporation (NOC) : Free Stock Analysis Report
Textron Inc. (TXT) : Free Stock Analysis Report
Airbus Group (EADSY) : Free Stock Analysis Report
To read this article on Zacks.com click here.
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 latest modification will enable Lockheed to provide logistics support for delivered F-35 Lightning II Joint Strike Fighter Air Systems. Growth Prospects Amid the widespread geopolitical tensions prevalent across the globe, nations are rapidly augmenting their defense purchase to strengthen their warfare capabilities. The company has been providing its aircraft customers with an extended portfolio of services for more than 40 years, ranging from the training of flight and ground staff to live firing exercises anywhere worldwide.
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Such projections indicate immense opportunities for Lockheed to reap the benefits of military aviation market expansion, with its Aeronautics business segment engaged in the research, design, development, manufacture, integration, sustainment, support and upgrade of advanced military aircraft. Peer Opportunities Some other prominent defense majors involved in the manufacturing of military aircraft that are expected to gain from the military aviation market’s growth opportunities are Northrop Grumman NOC, Airbus Group EADSY and Textron TXT. Click to get this free report Lockheed Martin Corporation (LMT) : Free Stock Analysis Report Northrop Grumman Corporation (NOC) : Free Stock Analysis Report Textron Inc. (TXT) : Free Stock Analysis Report Airbus Group (EADSY) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Such projections indicate immense opportunities for Lockheed to reap the benefits of military aviation market expansion, with its Aeronautics business segment engaged in the research, design, development, manufacture, integration, sustainment, support and upgrade of advanced military aircraft. Peer Opportunities Some other prominent defense majors involved in the manufacturing of military aircraft that are expected to gain from the military aviation market’s growth opportunities are Northrop Grumman NOC, Airbus Group EADSY and Textron TXT. Click to get this free report Lockheed Martin Corporation (LMT) : Free Stock Analysis Report Northrop Grumman Corporation (NOC) : Free Stock Analysis Report Textron Inc. (TXT) : Free Stock Analysis Report Airbus Group (EADSY) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Peer Opportunities Some other prominent defense majors involved in the manufacturing of military aircraft that are expected to gain from the military aviation market’s growth opportunities are Northrop Grumman NOC, Airbus Group EADSY and Textron TXT. NOC’s Aeronautics Systems unit is engaged in the design, development, production, integration, sustainment and modernization of advanced aircraft systems. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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967e8c5a-bc19-4acc-9838-b8ae9f5cc0da
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711453.0
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2023-12-15 00:00:00 UTC
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Should iShares Russell Top 200 Growth ETF (IWY) Be on Your Investing Radar?
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DCOMP
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https://www.nasdaq.com/articles/should-ishares-russell-top-200-growth-etf-iwy-be-on-your-investing-radar-11
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nan
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nan
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Looking for broad exposure to the Large Cap Growth segment of the US equity market? You should consider the iShares Russell Top 200 Growth ETF (IWY), a passively managed exchange traded fund launched on 09/22/2009.
The fund is sponsored by Blackrock. It has amassed assets over $8.31 billion, making it one of the larger ETFs attempting to match the Large Cap Growth segment of the US equity market.
Why Large Cap Growth
Companies that find themselves in the large cap category typically have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.
While growth stocks do boast higher than average sales and earnings growth rates, and they are expected to grow faster than the wider market, investors should note these kinds of stocks have higher valuations. Additionally, growth stocks have a greater level of risk 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
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.20%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 0.46%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 46.80% of the portfolio. Consumer Discretionary and Telecom round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 14.28% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN).
The top 10 holdings account for about 59.9% of total assets under management.
Performance and Risk
IWY seeks to match the performance of the Russell Top 200 Growth Index before fees and expenses. The Russell Top 200 Growth Index is a style factor weighted index that measures the performance of the largest capitalization growth sector of the U.S. equity market. It is a subset of the Russell Top 200 Index issuers with relatively higher price-to-book ratios and higher forecasted growth, which measures the performance of the largest capitalization sector of the U.S. equity market.
The ETF has gained about 44.70% so far this year and it's up approximately 40.21% in the last one year (as of 12/18/2023). In the past 52-week period, it has traded between $117.74 and $173.78.
The ETF has a beta of 1.06 and standard deviation of 22.10% for the trailing three-year period, making it a medium risk choice in the space. With about 117 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Russell Top 200 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, IWY is an excellent option for investors seeking exposure to the Style Box - Large Cap Growth segment of the market. There are other additional ETFs in the space that investors could consider as well.
The Vanguard Growth ETF (VUG) and the Invesco QQQ (QQQ) track a similar index. While Vanguard Growth ETF has $102.64 billion in assets, Invesco QQQ has $225.96 billion. VUG has an expense ratio of 0.04% and QQQ charges 0.20%.
Bottom-Line
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
iShares Russell Top 200 Growth ETF (IWY): ETF Research Reports
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Invesco QQQ (QQQ): ETF Research Reports
Vanguard Growth ETF (VUG): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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You should consider the iShares Russell Top 200 Growth ETF (IWY), a passively managed exchange traded fund launched on 09/22/2009. It has amassed assets over $8.31 billion, making it one of the larger ETFs attempting to match the Large Cap Growth segment of the US equity market. Because of this, IWY is an excellent option for investors seeking exposure to the Style Box - Large Cap Growth segment of the market.
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You should consider the iShares Russell Top 200 Growth ETF (IWY), a passively managed exchange traded fund launched on 09/22/2009. The Russell Top 200 Growth Index is a style factor weighted index that measures the performance of the largest capitalization growth sector of the U.S. equity market. Click to get this free report iShares Russell Top 200 Growth ETF (IWY): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here.
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Alternatives IShares Russell Top 200 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. To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center. Click to get this free report iShares Russell Top 200 Growth ETF (IWY): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here.
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You should consider the iShares Russell Top 200 Growth ETF (IWY), a passively managed exchange traded fund launched on 09/22/2009. Annual operating expenses for this ETF are 0.20%, making it one of the cheaper products in the space. The Russell Top 200 Growth Index is a style factor weighted index that measures the performance of the largest capitalization growth sector of the U.S. equity market.
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f1ff3c94-3475-461f-995e-39a3d1fe4225
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711454.0
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2023-12-15 00:00:00 UTC
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Recent Price Trend in RWE AG (RWEOY) is Your Friend, Here's Why
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DCOMP
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https://www.nasdaq.com/articles/recent-price-trend-in-rwe-ag-rweoy-is-your-friend-heres-why-0
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nan
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nan
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While "the trend is your friend" when it comes to short-term investing or trading, timing entries into the trend is a key determinant of success. And increasing the odds of success by making sure the sustainability of a trend isn't easy.
The trend often reverses before exiting the trade, leading to a short-term capital loss for investors. So, for a profitable trade, one should confirm factors such as sound fundamentals, positive earnings estimate revisions, etc. that could keep the momentum in the stock alive.
Our "Recent Price Strength" screen, which is created on a unique short-term trading strategy, could be pretty useful in this regard. This predefined screen makes it really easy to shortlist the stocks that have enough fundamental strength to maintain their recent uptrend. Also, the screen passes only the stocks that are trading in the upper portion of their 52-week high-low range, which is usually an indicator of bullishness.
RWE AG (RWEOY) 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. RWEOY is quite a good fit in this regard, gaining 15.6% 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 7% over the past four weeks ensures that the trend is still in place for the stock of this company.
Moreover, RWEOY is currently trading at 81.4% of its 52-week High-Low Range, hinting that it can be on the verge of a breakout.
Looking at the fundamentals, the stock currently carries a Zacks Rank #1 (Strong Buy), which means it is in the top 5% of more than the 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises -- the key factors that impact a stock's near-term price movements.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Another factor that confirms the company's fundamental strength is its Average Broker Recommendation of #1 (Strong Buy). This indicates that the brokerage community is highly optimistic about the stock's near-term price performance.
So, the price trend in RWEOY may not reverse anytime soon.
In addition to RWEOY, there are several other stocks that currently pass through our "Recent Price Strength" screen. You may consider investing in them and start looking for the newest stocks that fit these criteria.
This is not the only screen that could help you find your next winning stock pick. Based on your personal investing style, you may choose from over 45 Zacks Premium Screens that are strategically created to beat the market.
However, keep in mind that the key to a successful stock-picking strategy is to ensure that it produced profitable results in the past. You could easily do that with the help of the Zacks Research Wizard. In addition to allowing you to backtest the effectiveness of your strategy, the program comes loaded with some of our most successful stock-picking strategies.
Click here to sign up for a free trial to the Research Wizard today.
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
Be First to New Top 10 Stocks >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
RWE AG (RWEOY) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
A solid price increase over a period of 12 weeks reflects investors' continued willingness to pay more for the potential upside in a stock. Based on your personal investing style, you may choose from over 45 Zacks Premium Screens that are strategically created to beat the market. From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%.
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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 RWE AG (RWEOY) : 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 #1 (Strong Buy), which means it is in the top 5% of more than the 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises -- the key factors that impact a stock's near-term price movements. The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Another factor that confirms the company's fundamental strength is its Average Broker Recommendation of #1 (Strong Buy).
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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 RWEOY, there are several other stocks that currently pass through our "Recent Price Strength" screen. Be First to New Top 10 Stocks >> Want the latest recommendations from Zacks Investment Research?
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83acbd7d-4277-4f4d-ab49-87eb0c3daa0b
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711455.0
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2023-12-15 00:00:00 UTC
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Here's Why Momentum in Publicis Groupe SA (PUBGY) Should Keep going
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DCOMP
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https://www.nasdaq.com/articles/heres-why-momentum-in-publicis-groupe-sa-pubgy-should-keep-going-0
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nan
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nan
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When it comes to short-term investing or trading, they say "the trend is your friend." And there's no denying that this is the most profitable strategy. But making sure of the sustainability of a trend to profit from it is easier said than done.
The trend often reverses before exiting the trade, leading to a short-term capital loss for investors. So, for a profitable trade, one should confirm factors such as sound fundamentals, positive earnings estimate revisions, etc. that could keep the momentum in the stock alive.
Our "Recent Price Strength" screen, which is created on a unique short-term trading strategy, could be pretty useful in this regard. This predefined screen makes it really easy to shortlist the stocks that have enough fundamental strength to maintain their recent uptrend. Also, the screen passes only the stocks that are trading in the upper portion of their 52-week high-low range, which is usually an indicator of bullishness.
Publicis Groupe SA (PUBGY) 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. PUBGY is quite a good fit in this regard, gaining 20.2% 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 12.3% over the past four weeks ensures that the trend is still in place for the stock of this company.
Moreover, PUBGY is currently trading at 97.5% 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 PUBGY may not reverse anytime soon.
In addition to PUBGY, there are several other stocks that currently pass through our "Recent Price Strength" screen. You may consider investing in them and start looking for the newest stocks that fit these criteria.
This is not the only screen that could help you find your next winning stock pick. Based on your personal investing style, you may choose from over 45 Zacks Premium Screens that are strategically created to beat the market.
However, keep in mind that the key to a successful stock-picking strategy is to ensure that it produced profitable results in the past. You could easily do that with the help of the Zacks Research Wizard. In addition to allowing you to backtest the effectiveness of your strategy, the program comes loaded with some of our most successful stock-picking strategies.
Click here to sign up for a free trial to the Research Wizard today.
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
Be First to New Top 10 Stocks >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Publicis Groupe SA (PUBGY) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
A solid price increase over a period of 12 weeks reflects investors' continued willingness to pay more for the potential upside in a stock. Based on your personal investing style, you may choose from over 45 Zacks Premium Screens that are strategically created to beat the market. From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%.
|
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Another factor that confirms the company's fundamental strength is its Average Broker Recommendation of #1 (Strong Buy). Click to get this free report Publicis Groupe SA (PUBGY) : 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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Our "Recent Price Strength" screen, which is created on a unique short-term trading strategy, could be pretty useful in this regard. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Another factor that confirms the company's fundamental strength is its Average Broker Recommendation of #1 (Strong Buy). Be First to New Top 10 Stocks >> Want the latest recommendations from Zacks Investment Research?
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cf2bac1c-827f-4107-9532-8cdbcac371db
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711456.0
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2023-12-15 00:00:00 UTC
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4 Must-Buy Stocks to Benefit From AI Spending Boom in 2024
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DCOMP
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https://www.nasdaq.com/articles/4-must-buy-stocks-to-benefit-from-ai-spending-boom-in-2024
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nan
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nan
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Artificial intelligence (AI) can be considered one of the most transformative technology trends since the start of the Internet in 1995. AI stocks have outperformed the market, with the Global Artificial Intelligence ETF rising to 52.4% year to date compared with the S&P 500’s 23.4% return in the same period.
Spending on AI systems is expected to accelerate over the next several years as organizations deploy AI as part of their digital transformation efforts and to remain competitive in the digital economy. Predictions for 2024 are largely centered around the emergence of AI as a major inflection point in the technology industry, especially for players like Meta Platforms META, Intel Corporation INTC, NVIDIA NVDA and UiPath PATH.
According to the IDC’s Worldwide Artificial Intelligence Spending Guide, global spending on AI is forecast to double over the next four years, growing from $50.1 billion in 2020 to more than $110 billion in 2024, with a compound annual growth rate (CAGR) of 20.1% between the 2019-2024 period.
The largest share of software spending is expected to go to AI applications ($14.1 billion), while the largest category of services spending will be IT services ($14.5 billion). Servers ($11.2 billion) will dominate hardware spending. Software will see the fastest growth in spending over the forecast period with a five-year CAGR of 22.5%.
By 2025, Global 2000 (G2000) organizations are expected to allocate more than 40% of their core IT spending to AI-related initiatives, leading to a double-digit increase in the rate of product and process innovations.
What's Next: The 2024 AI Landscape
There are already signs that AI monetization has started to impact the technology sector, with solid quarterly results from Microsoft MSFT, Datadog and Palantir Technologies that show new ways to harness AI are exploding across the enterprise and consumer landscape.
While AI is not a new technology, companies have been investing heavily in predictive and interpretive AI for years, the announcement of the GPT-3.5 series from OpenAI in late 2022 captured the world's attention and triggered a surge of investment in generative AI.
Microsoft announced huge investments in OpenAI in January 2023. Google debuted AI-powered search and BARD in May 2023, while NVIDIA’s market cap hit the $1 trillion mark in late May 2023 on AI euphoria, which boosted the demand for chips. OpenAI then debuted GPT enterprise in late August 2023, followed by Amazon’s bet on Anthropic in September. The Biden government signed an AI executive order in October 2023, Amazon announced the launch of its new chatbot, "Q," in late November 2023 and Google unveiled its most effective Generative AI model, Gemini, in December 2023.
The year 2024 is likely to witness the launch of AI-equipped PCs and other devices, moving some cloud-based AI processes to local devices. For instance, Google's Pixel 8 series, with the Tensor G3 chip, showcases AI-driven features like photo editing and audio filtering. Investors can expect similar advancements from companies like HP, Dell, Lenovo and possibly Apple.
The hype over AI and cloud computing has driven investors to snap up stocks of companies set to be winners in 2024. The Nasdaq 100 has surged more than 40% in 2023, trumping the S&P 500 Index’s roughly 15% gain.
Year-to-Date Performance
Image Source: Zacks Investment Research
Our Picks
NVIDIA is gaining from the strong growth of artificial intelligence, high-performance computing and accelerated computing, which is boosting its Compute & Networking revenues. This Zacks Rank #2 (Buy) company’s datacenter end-market business is likely to benefit from the growing demand for generative AI and large language models using GPUs based on NVIDIA Hopper and Ampere architectures. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
A surge in Hyperscale demand and a solid uptake of AI-based smart cockpit infotainment solutions are acting as tailwinds for NVDA. Collaboration with Mercedes-Benz and Audi is likely to advance NVDA’s presence in the autonomous vehicles and other automotive electronics space.
NVIDIA expects its fourth-quarter fiscal 2024 revenues to reach $20 billion from $6.05 billion in the year-ago quarter. The Zacks Consensus Estimate for fiscal 2025 earnings is pegged at $12.29 per share, up 13.2% in the past 30 days. Shares of NVDA have surged 234.5% year to date.
Meta Platforms forayed into the space of LLMs with its state-of-the-art foundational language model known as Large Language Model Meta AI (“Llama”). In collaboration with Microsoft, Meta unveiled the next generation of Llama, called Llama 2. This Zacks Rank #2 company also released Code Llama, an LLM that can use text prompts to generate and discuss code.
The company is also launching Meta AI in beta, an advanced conversational assistant, which will be available on WhatsApp, Messenger and Instagram. Meta AI will also be available on Ray-Ban Meta smart glasses and Quest 3.
Meta expects total revenues between $36.5 billion and $40 billion for the fourth quarter of 2023. The Zacks Consensus Estimate for 2024 earnings is pegged at $14.32 per share, up 0.4% in the past 30 days. Shares of META have surged 178.3% year to date.
UiPath launched a number of AI-enabled services on its platform that are expected to boost top-line growth in 2024. These include new features for existing AutoPilot services, as well as broader cross-platform connectivity options. Autopilot for Assistant is an AI companion that helps you tackle your daily task list. It securely blends the best of Generative AI and Specialized AI to work with a wide variety of systems and documents. Autopilot for Studio enhances the productivity of both professional and new developers, empowering them to use natural language in their work.
In November 2023, UiPath Clipboard AI was named one of TIME's Best Inventions of 2023 in the Productivity category. Clipboard AI eliminates the need for manual copy-pasting.
Looking to the fourth quarter, this Zacks Rank #2 company predicts revenues between $381 million and $386 million and ARR around $1.45 billion. The Zacks Consensus Estimate for 2024 earnings is pegged at 47 cents per share, up 17.5% in the past 30 days. Shares of PATH have surged 102% year to date.
Last week, Intel Corporation launched AI chips for data centers and PCs. This marks one of the largest architectural shifts for the company in 40 years. The strategic decision is primarily aimed at gaining a firmer footing in the expansive AI sector, spanning cloud and enterprise servers to networks, volume clients and ubiquitous edge environments, in tune with the evolving market dynamics.
This Zacks Rank #2 company further provided an update on the availability of Intel Gaudi3. These chips — known as AI accelerators — are slated to be released in 2024. The next-generation AI accelerator will likely help companies develop chatbots and other rapidly proliferating services for deep learning and large-scale generative AI models. With increasing demand for generative AI solutions, Intel expects to capture a greater pie of the accelerator market in 2024 with its suite of AI accelerators led by Gaudi.
For the fourth quarter of 2023, Intel offered bullish guidance and currently expects non-GAAP revenues to be $14.6-$15.6 billion. The Zacks Consensus Estimate for 2024 earnings is pegged at 95 cents per share, unchanged in the past 30 days. Shares of INTC have surged 74.7% year to date.
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
Intel Corporation (INTC) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
UiPath, Inc. (PATH) : 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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Google debuted AI-powered search and BARD in May 2023, while NVIDIA’s market cap hit the $1 trillion mark in late May 2023 on AI euphoria, which boosted the demand for chips. This Zacks Rank #2 (Buy) company’s datacenter end-market business is likely to benefit from the growing demand for generative AI and large language models using GPUs based on NVIDIA Hopper and Ampere architectures. The strategic decision is primarily aimed at gaining a firmer footing in the expansive AI sector, spanning cloud and enterprise servers to networks, volume clients and ubiquitous edge environments, in tune with the evolving market dynamics.
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Predictions for 2024 are largely centered around the emergence of AI as a major inflection point in the technology industry, especially for players like Meta Platforms META, Intel Corporation INTC, NVIDIA NVDA and UiPath PATH. Image Source: Zacks Investment Research Our Picks NVIDIA is gaining from the strong growth of artificial intelligence, high-performance computing and accelerated computing, which is boosting its Compute & Networking revenues. Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report UiPath, Inc. (PATH) : 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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What's Next: The 2024 AI Landscape There are already signs that AI monetization has started to impact the technology sector, with solid quarterly results from Microsoft MSFT, Datadog and Palantir Technologies that show new ways to harness AI are exploding across the enterprise and consumer landscape. While AI is not a new technology, companies have been investing heavily in predictive and interpretive AI for years, the announcement of the GPT-3.5 series from OpenAI in late 2022 captured the world's attention and triggered a surge of investment in generative AI. Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report UiPath, Inc. (PATH) : 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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The largest share of software spending is expected to go to AI applications ($14.1 billion), while the largest category of services spending will be IT services ($14.5 billion). Shares of NVDA have surged 234.5% year to date. Shares of META have surged 178.3% year to date.
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2023-12-15 00:00:00 UTC
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Why SOFI Stock Looks Like Excellent Value Heading Into 2024
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https://www.nasdaq.com/articles/why-sofi-stock-looks-like-excellent-value-heading-into-2024
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
SoFi Technologies (NASDAQ:SOFI), a leading online financial platform, provides diverse services such as personal loans and mortgages. With 44 million U.S. student borrowers, rising personal loan demand is anticipated, benefiting SoFi. Boasting notable growth, it attracted 717,000 new users, signaling a shift in consumer preference towards its services. This growth has important implications for SOFI stock.
Financially, SoFi’s deposits surged from $7.3 billion to $15.7 billion in 2023, reporting a robust $537 million revenue, up 27% year-over. Projected to achieve profitability in Q1 2024, SoFi’s financial strength highlights its strong market position.
Here are some reasons why SOFI stock could continue its successful track record as we head into next year.
Cathie Wood Bought SoFi Again
Cathie Wood, CEO of Ark Invest, recently purchased around 180,000 shares of SOFI stock. The transaction, valued at approximately $1.4 million, increased Ark’s holdings to 1.9 million shares, totaling about $15.3 million.
SOFI stock also garnered support from Jim Cramer, host of CNBC’s Mad Money, who praised CEO Anthony Noto’s performance. In its Q3 earnings report, SoFi disclosed record revenue of $537 million and a significant increase in new members, surpassing 717,000.
Wood’s recent SoFi Technologies share purchase stands out and is one of the reasons why her Ark Funds are outperforming the market this year. Notably, SoFi recently announced is discontinuing its cryptocurrency trading services, perhaps driving institutional interest in this stock.
SOFI Stock Continues Its Bullish Trend
Despite some positive results, SoFi faced challenges that deviated from investor expectations. For instance, in Q3, the company reported a loss of 29 cents per share, widening from the previous year’s loss of 9 cents, leading to skepticism around SOFI stock.
Additionally, SoFi’s role as a secondary underwriter in Instacart’s IPO contributed to its disappointing performance, with SOFI stock exhibiting a downward trend since Instacart’s debut on Sept. 19.
Despite its recent momentum, SOFI stock surged nearly 10% in the past five sessions. Options traders, possibly institutional investors, notably sold 6,206 contracts of the Feb 16 ’24 8.00 Put today.
More Than Just a Student Loan Company
As of September 30, SoFi Technologies held a significant student loan portfolio of $6.04 billion, with a weighted average interest rate of 5.3%. In Q3 2023, it originated nearly $1 billion in student loans, marking a 101% year-over-year increase.
Despite its sizable student loan portfolio, SoFi’s personal loans, totaling $14.85 billion, have seen more substantial growth, with a higher average interest rate of 13.8%. In the same quarter, SoFi originated nearly $3.9 billion in personal loans, more than four times the amount of student loans.
Additionally, regardless of significant GAAP losses, reaching $277 million in the latest quarter, SOFI stock poses a riskier but potentially rewarding investment. If the company can continue to trim its losses over time and grow its top line, this rally can continue.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.
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The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors
The post Why SOFI Stock Looks Like Excellent Value Heading Into 2024 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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SOFI stock also garnered support from Jim Cramer, host of CNBC’s Mad Money, who praised CEO Anthony Noto’s performance. Additionally, regardless of significant GAAP losses, reaching $277 million in the latest quarter, SOFI stock poses a riskier but potentially rewarding investment. 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 Why SOFI Stock Looks Like Excellent Value Heading Into 2024 appeared first on InvestorPlace.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips SoFi Technologies (NASDAQ:SOFI), a leading online financial platform, provides diverse services such as personal loans and mortgages. Cathie Wood Bought SoFi Again Cathie Wood, CEO of Ark Invest, recently purchased around 180,000 shares of SOFI stock. More Than Just a Student Loan Company As of September 30, SoFi Technologies held a significant student loan portfolio of $6.04 billion, with a weighted average interest rate of 5.3%.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips SoFi Technologies (NASDAQ:SOFI), a leading online financial platform, provides diverse services such as personal loans and mortgages. Cathie Wood Bought SoFi Again Cathie Wood, CEO of Ark Invest, recently purchased around 180,000 shares of SOFI stock. SOFI Stock Continues Its Bullish Trend Despite some positive results, SoFi faced challenges that deviated from investor expectations.
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Here are some reasons why SOFI stock could continue its successful track record as we head into next year. Notably, SoFi recently announced is discontinuing its cryptocurrency trading services, perhaps driving institutional interest in this stock. In the same quarter, SoFi originated nearly $3.9 billion in personal loans, more than four times the amount of student loans.
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2023-12-15 00:00:00 UTC
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Thermo Fisher (TMO) to Allocate IFA Testing Kits With New Pact
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https://www.nasdaq.com/articles/thermo-fisher-tmo-to-allocate-ifa-testing-kits-with-new-pact
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Thermo Fisher Scientific, Inc. TMO recently entered into an exclusive distribution agreement with Aesku. Group (“Aesku”) to market, sell and support their portfolio of FDA-cleared IFA products, automated instruments and software in the United States. With this partnership, Thermo Fisher positions itself to provide laboratories in the United States with a full array of automated diagnostic tools and procedures.
The recent development will fortify Thermo Fisher’s Immunology solutions.
More on Collaboration
According to the terms of the deal, Thermo Fisher will exclusively sell and market Aesku goods in the United States. Customers in the United States will also receive installation, maintenance and support services from Thermo Fisher. All items covered by the agreement will continue to be manufactured by Aesku.
Thermo Fisher will continue to meet the evolving needs of laboratories and healthcare professionals by expanding its immunology product portfolio of EliA autoimmune diagnostics, ImmunoCAP allergy diagnostics and Phadia Laboratory Systems with complementary reagents and systems from Aesku. This will lead to faster and more accurate diagnoses for patients.
Strategic Implications
The collaboration with Aesku demonstrates Thermo Fisher's commitment to empowering customers to make the world a healthier place by providing new solutions that aid in the identification and diagnosis of complicated autoimmune illnesses. Aesku has pioneered unique and efficient solutions that effortlessly integrate into the company's existing portfolio.
Image Source: Zacks Investment Research
Aesku's commitment to innovation in autoimmune diagnostics aligns seamlessly with Thermo Fisher's mission of enabling customers to make the world healthier, cleaner and safer. Both companies are setting new benchmarks for accuracy and efficiency in autoimmunity testing, ensuring clinicians and patients receive the most advanced diagnostic capabilities available.
Industry Prospects
Per a report by Markets and Markets, the global immunoassay market was estimated to be worth $35 billion in 2023 and is poised to reach $46.7 billion by 2028 at a CAGR of 5.9%. Market growth is driven by the rising incidence of chronic and infectious diseases and growth in biotechnology and biopharmaceutical industries.
Other Notable Developments
In December 2023, Thermo Fisher entered into a collaboration with Project HOPE, a leading global health and humanitarian organization working on the front lines of the world’s health challenges. The partnership will focus on improving the well-being and treatment outcomes of adolescents and young persons living with HIV in Nigeria, the country with the second-largest HIV epidemic worldwide.
Earlier this year, Thermo Scientific B·R·A·H·M·S PlGF plus KRYPTOR and B·R·A·H·M·S sFlt-1 KRYPTOR novel biomarkers became the first and only immunoassays to receive breakthrough designation and FDA clearance for the risk assessment and clinical management of preeclampsia. This potentially life-threatening condition disproportionately impacts pregnant black women.
Price Performance
In the past six months, TMO’s shares have dropped 2.3% against the industry’s rise of 4.2%.
Zacks Rank and Key Picks
Thermo Fisher currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader medical space are Haemonetics HAE, Insulet PODD and DexCom DXCM. While Haemonetics and DexCom each carry a Zacks Rank #2 (Buy), Insulet presently 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 11.6% in the past year. Earnings estimates for Haemonetics have increased from $3.82 to $3.86 in 2023 and $4.07 to $4.11 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 increased from $1.61 to $1.90 in the past 30 days. The company's shares have plunged 40.9% in the past year compared with the industry’s decline of 7%.
PODD’s earnings surpassed estimates in all 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 $1.23 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 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 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
Thermo Fisher Scientific Inc. (TMO) : Free Stock Analysis Report
Haemonetics Corporation (HAE) : Free Stock Analysis Report
DexCom, Inc. (DXCM) : Free Stock Analysis Report
Insulet Corporation (PODD) : Free Stock Analysis Report
To read this article on Zacks.com click here.
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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Group (“Aesku”) to market, sell and support their portfolio of FDA-cleared IFA products, automated instruments and software in the United States. Strategic Implications The collaboration with Aesku demonstrates Thermo Fisher's commitment to empowering customers to make the world a healthier place by providing new solutions that aid in the identification and diagnosis of complicated autoimmune illnesses. Image Source: Zacks Investment Research Aesku's commitment to innovation in autoimmune diagnostics aligns seamlessly with Thermo Fisher's mission of enabling customers to make the world healthier, cleaner and safer.
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Thermo Fisher Scientific, Inc. TMO recently entered into an exclusive distribution agreement with Aesku. Image Source: Zacks Investment Research Aesku's commitment to innovation in autoimmune diagnostics aligns seamlessly with Thermo Fisher's mission of enabling customers to make the world healthier, cleaner and safer. Click to get this free report Thermo Fisher Scientific Inc. (TMO) : Free Stock Analysis Report Haemonetics Corporation (HAE) : Free Stock Analysis Report DexCom, Inc. (DXCM) : Free Stock Analysis Report Insulet Corporation (PODD) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Thermo Fisher will continue to meet the evolving needs of laboratories and healthcare professionals by expanding its immunology product portfolio of EliA autoimmune diagnostics, ImmunoCAP allergy diagnostics and Phadia Laboratory Systems with complementary reagents and systems from Aesku. Image Source: Zacks Investment Research Aesku's commitment to innovation in autoimmune diagnostics aligns seamlessly with Thermo Fisher's mission of enabling customers to make the world healthier, cleaner and safer. Click to get this free report Thermo Fisher Scientific Inc. (TMO) : Free Stock Analysis Report Haemonetics Corporation (HAE) : Free Stock Analysis Report DexCom, Inc. (DXCM) : Free Stock Analysis Report Insulet Corporation (PODD) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The recent development will fortify Thermo Fisher’s Immunology solutions. More on Collaboration According to the terms of the deal, Thermo Fisher will exclusively sell and market Aesku goods in the United States. Be First to New Top 10 Stocks >> Want the latest recommendations from Zacks Investment Research?
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2023-12-15 00:00:00 UTC
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Should You Buy the 3 Highest-Paying Dividend Stocks in the Dow Jones?
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https://www.nasdaq.com/articles/should-you-buy-the-3-highest-paying-dividend-stocks-in-the-dow-jones-9
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The Dow Jones Industrial Average just set a new all-time high, signaling the possible start of a new bull market in the blue-chip index. The Federal Reserve's forecast that interest rates would fall next year gave stocks a boost last week, putting the Dow Jones back to record levels.
The Dow is typically favored by investors looking for safe, reliable blue-chip stocks that pay dividends, and with Treasury yields already falling, investors may turn back to stocks for high yields. Let's take a look at the three highest-yielding dividend stocks on the Dow to see if any are worth buying.
Image source: Getty Images.
1. Walgreen Boots Alliance (7.83% dividend yield)
Like some other high-yielding dividend stocks, Walgreen Boots Alliance's (NASDAQ: WBA) dividend yield of 7.8% is more a result of the stock's underperformance rather than its commitment to paying a high dividend.
The stock has declined over much of the past decade as it's made a number of misguided acquisitions and struggled with broader headwinds in the pharmacy industry, including lawsuits over opioid prescriptions and new competition from e-commerce companies.
However, Walgreens may have gotten cheap enough that it's worth adding to your buy list. The company is currently considering spinning off Boots, unwinding its biggest acquisition of all, and it recently pushed out former CEO Roz Brewer, who seemed to be a poor fit as her background was in retail, rather than healthcare.
On an adjusted basis, the stock trades at a price-to-earnings ratio of less than 8 based on its forecast for the new fiscal year, which is an attractive price for almost any stock. Still, given the company's recent challenges and net losses on the bottom line, investors may want to wait for more signs that a turnaround is underway as well as more clarity from new CEO Tim Wentworth.
2. Verizon (6.96% dividend yield)
In a number of ways, Verizon Communications (NYSE: VZ) is in the same boat as Walgreens. The telecom giant has declined over a several-year period as growth has been stagnant, and it's made strategic errors and lost market share to T-Mobile US.
However, Verizon's most recent earnings report showed it may finally be turning after a disappointing run. It had 100,000 postpaid phone net additions or customers who pay every month, and it's seeing strong growth in the broadband segment. Meanwhile, it acquired spectrum to help fix its coverage and connectivity issues.
While growth is essentially flat, Verizon's profits should be reasonably stable at this point as the company competes in a triopoly with T-Mobile and AT&T, and high barriers to entry have afforded the telecom operators strong operating margins, even though there's a high level of competition among those three companies.
Verizon is now valued at a price-to-earnings ratio of just 7.6, and it seems like the worst is behind the company, especially with interest rates expected to fall. Verizon looks like a solid bet for dividend investors.
3. 3M (5.75% dividend yield)
3M's (NYSE: MMM) stock price has also shrunk as the company has faced multibillion-dollar lawsuits, stagnant sales growth, and a culture that seems to have shifted away from new products and innovation.
The conglomerate plans to spin off its healthcare division by the end of the year, which could help breathe new life into the company, but the healthcare segment has also been its best-performing segment.
Unlike Verizon and Walgreens, 3M is more of a cyclical business, and the company could benefit from a recovery in the economy. There's no sign of that thus far. The company sees revenue for the full year falling 5% as management has cited weak demand due to macroeconomic challenges and poor results in China.
One of the biggest challenges facing 3M is its settlements over PFAS (a kind of synthetic chemical) and faulty earplugs, which will cost it billions of dollars in cash payments over the next decade and could weigh on its ability to invest in the business and raise its dividend. Considering that drain on cash flow, dividend investors may be better off looking elsewhere.
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 11, 2023
Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool recommends 3M, 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 declined over much of the past decade as it's made a number of misguided acquisitions and struggled with broader headwinds in the pharmacy industry, including lawsuits over opioid prescriptions and new competition from e-commerce companies. 3M (5.75% dividend yield) 3M's (NYSE: MMM) stock price has also shrunk as the company has faced multibillion-dollar lawsuits, stagnant sales growth, and a culture that seems to have shifted away from new products and innovation. One of the biggest challenges facing 3M is its settlements over PFAS (a kind of synthetic chemical) and faulty earplugs, which will cost it billions of dollars in cash payments over the next decade and could weigh on its ability to invest in the business and raise its dividend.
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The Dow is typically favored by investors looking for safe, reliable blue-chip stocks that pay dividends, and with Treasury yields already falling, investors may turn back to stocks for high yields. Walgreen Boots Alliance (7.83% dividend yield) Like some other high-yielding dividend stocks, Walgreen Boots Alliance's (NASDAQ: WBA) dividend yield of 7.8% is more a result of the stock's underperformance rather than its commitment to paying a high dividend. 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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The Dow is typically favored by investors looking for safe, reliable blue-chip stocks that pay dividends, and with Treasury yields already falling, investors may turn back to stocks for high yields. Walgreen Boots Alliance (7.83% dividend yield) Like some other high-yielding dividend stocks, Walgreen Boots Alliance's (NASDAQ: WBA) dividend yield of 7.8% is more a result of the stock's underperformance rather than its commitment to paying a high dividend. 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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The Dow is typically favored by investors looking for safe, reliable blue-chip stocks that pay dividends, and with Treasury yields already falling, investors may turn back to stocks for high yields. Verizon (6.96% dividend yield) In a number of ways, Verizon Communications (NYSE: VZ) is in the same boat as Walgreens. 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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2023-12-15 00:00:00 UTC
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Do Options Traders Know Something About Big Lots (BIG) Stock We Don't?
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https://www.nasdaq.com/articles/do-options-traders-know-something-about-big-lots-big-stock-we-dont
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Investors in Big Lots, Inc. BIG need to pay close attention to the stock based on moves in the options market lately. That is because the Jan 19, 2024 $57.00 Put had some of the highest implied volatility of all equity options today.
What is Implied Volatility?
Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
What do the Analysts Think?
Clearly, options traders are pricing in a big move for Big Lots shares, but what is the fundamental picture for the company? Currently, Big Lots is a Zacks Rank #3 (Hold) in the Retail - Discount Stores industry that ranks in the Top 30% of our Zacks Industry Rank. Over the last 60 days, no analysts have increased the earnings estimates for the current quarter, while five have revised the estimates downward. The net effect has taken our Zacks Consensus Estimate for the current quarter from of 36 cents per share to 8 cents cents in that period.
Given the way analysts feel Big Lots right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.
Looking to Trade Options?
Check out the simple yet high-powered approach that Zacks Executive VP Kevin Matras has used to close recent double and triple-digit winners. In addition to impressive profit potential, these trades can actually reduce your risk.
Click to see the trades now >>
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
Be First to New Top 10 Stocks >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Big Lots, Inc. (BIG) : 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. 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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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, Big Lots is a Zacks Rank #3 (Hold) in the Retail - Discount Stores industry that ranks in the Top 30% of our Zacks Industry Rank. Click to get this free report Big Lots, Inc. (BIG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Investors in Big Lots, Inc. BIG need to pay close attention to the stock based on moves in the options market lately. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. Currently, Big Lots is a Zacks Rank #3 (Hold) in the Retail - Discount Stores industry that ranks in the Top 30% of our Zacks Industry Rank.
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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. Clearly, options traders are pricing in a big move for Big Lots shares, but what is the fundamental picture for the company? Given the way analysts feel Big Lots right now, this huge implied volatility could mean there’s a trade developing.
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b1c9ad14-b7d1-4fd1-81c0-0db3be3a8db1
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711461.0
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2023-12-15 00:00:00 UTC
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TotalEnergies (TTE) Wins New Block in Suriname, Boosts Footprint
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https://www.nasdaq.com/articles/totalenergies-tte-wins-new-block-in-suriname-boosts-footprint
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TotalEnergies SE TTE announced that it signed a Production Sharing Contract (PSC) with partners QatarEnergy and Petronas, for Block 64 with Staatsolie Maatschappij Suriname (Staatsolie), the State-owned oil company of Suriname.
Block 64 is a large 2,418 square miles block that lies around 250 km offshore. TotalEnergies and its partners won Block 64 in the Suriname authorities' 2022-2023 Bid Round. TotalEnergies, along with QatarEnergy (30%) and Petronas (30%), will operate the block with a 40% stake.
With the goal of authorizing a 200,000 b/d oil project by the end of 2024, TTE is the operator of Block 58 and holds a 50% interest, while APA Corporation APA has the remaining 50%, where five discoveries have been found and development studies are underway. The company, together with QatarEnergy (20%) and Paradise Oil Company, a subsidiary of Staatsolie (40%), joined exploring blocks 6 and 8 as the operator (40%) in May 2023.
Rationale Behind PSCs
PSCs outline the details regarding the exploration and production of resources from a specified region and for a specific duration.
Oil production can be challenging because it requires substantial upfront investments that become difficult to recover if the well doesn't produce enough oil. However, a sharing contract can reduce the participating companies’ risk exposure by combining their resources and expertise. It also makes an oil production project more commercially viable. TotalEnergies, along with its partners, makes a formidable team, without risking too much capital on one project.
Other oil and gas companies like Equinor ASA EQNR and Chevron Corporation CVX are also expanding their operations through PSCs.
Equinor, along with ExxonMobil and Shell, entered into an agreement with the government of Tanzania to build a liquefied natural gas export facility. The deal includes the essential components of a host government and a production-sharing agreement. The project, valued at around $42 billion by a top Tanzania government official, is anticipated to be constructed at the Lindi coast. It is expected to supply 15 million metric tons per year using gas from three deepwater blocks offshore Tanzania.
The Zacks Consensus Estimate for Equinor’s 2023 earnings is pinned at $3.99 per share. The company delivered an average earnings surprise of 0.8% in the last four quarters.
Chevron finalized a production sharing agreement with Angola and the Democratic Republic of Congo to operate their shared offshore oil block. The deal might significantly impact the oil and gas industry in central Africa. It is also expected to unlock the offshore block’s potential.
Chevron’s long-term (three- to five-year) earnings growth rate is 14.27%. The Zacks Consensus Estimate for CVX’s 2023 earnings is pinned at $13.27 per share.
Price Performance
In the past six months, shares of TotalEnergies have risen 15.3% compared with the industry’s 14.4% growth.
Image Source: Zacks Investment Research
Zacks Rank
The company currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
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
Chevron Corporation (CVX) : Free Stock Analysis Report
APA Corporation (APA) : Free Stock Analysis Report
Equinor ASA (EQNR) : Free Stock Analysis Report
TotalEnergies SE Sponsored ADR (TTE) : 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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Other oil and gas companies like Equinor ASA EQNR and Chevron Corporation CVX are also expanding their operations through PSCs. Equinor, along with ExxonMobil and Shell, entered into an agreement with the government of Tanzania to build a liquefied natural gas export facility. 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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TotalEnergies SE TTE announced that it signed a Production Sharing Contract (PSC) with partners QatarEnergy and Petronas, for Block 64 with Staatsolie Maatschappij Suriname (Staatsolie), the State-owned oil company of Suriname. Other oil and gas companies like Equinor ASA EQNR and Chevron Corporation CVX are also expanding their operations through PSCs. Click to get this free report Chevron Corporation (CVX) : Free Stock Analysis Report APA Corporation (APA) : Free Stock Analysis Report Equinor ASA (EQNR) : Free Stock Analysis Report TotalEnergies SE Sponsored ADR (TTE) : Free Stock Analysis Report To read this article on Zacks.com click here.
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TotalEnergies SE TTE announced that it signed a Production Sharing Contract (PSC) with partners QatarEnergy and Petronas, for Block 64 with Staatsolie Maatschappij Suriname (Staatsolie), the State-owned oil company of Suriname. Chevron finalized a production sharing agreement with Angola and the Democratic Republic of Congo to operate their shared offshore oil block. Click to get this free report Chevron Corporation (CVX) : Free Stock Analysis Report APA Corporation (APA) : Free Stock Analysis Report Equinor ASA (EQNR) : Free Stock Analysis Report TotalEnergies SE Sponsored ADR (TTE) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Other oil and gas companies like Equinor ASA EQNR and Chevron Corporation CVX are also expanding their operations through PSCs. Chevron finalized a production sharing agreement with Angola and the Democratic Republic of Congo to operate their shared offshore oil block. Image Source: Zacks Investment Research Zacks Rank The company currently has a Zacks Rank #3 (Hold).
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8ef879a5-634d-42f0-a4b7-715902d3a5a6
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711462.0
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2023-12-15 00:00:00 UTC
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5 Excellent Dividend Growth Stocks to Buy Now
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https://www.nasdaq.com/articles/5-excellent-dividend-growth-stocks-to-buy-now
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Dividend investing remains a popular strategy. Though the strategy doesn’t offer dramatic price appreciation, it is a major source of consistent income for investors in any type of market. This approach offers a unique blend of income and growth potential, appealing to a broad range of investors.
Additionally, it can provide a sense of security in times of market uncertainty or downturns, as dividend-paying stocks can reduce the volatility of a portfolio and tend to outperform in a choppy market. In particular, focusing on the growth level in this strategy leads to higher returns.
Stocks with a strong history of year-over-year dividend growth form a healthy portfolio with a greater scope of capital appreciation, as opposed to simple dividend-paying stocks or those that have high yields. We have selected five dividend growth stocks — Cboe Global Markets CBOE, PACCAR Inc. PCAR, Installed Building Products, Inc. IBP, Arcos Dorados Holdings Inc. ARCO and Global Industrial Company GIC — that seem excellent choices for your portfolio.
Why is Dividend Growth Better?
Stocks that have a strong history of dividend growth belong to mature companies, which are less susceptible to large swings in the market and, thus, act as a hedge against economic or political uncertainty, as well as stock market volatility. At the same time, these offer downside protection with their consistent increases in payouts.
Additionally, these stocks have superior fundamentals that make dividend growth a quality and promising investment for the long term. These include a sustainable business model, a long track of profitability, rising cash flows, good liquidity, a strong balance sheet and some value characteristics. Further, a history of strong dividend growth indicates that a dividend increase is likely in the future.
Although these stocks do not necessarily have the highest yields, they have outperformed for a longer period than the broader stock market or any other dividend-paying stock.
As a result, picking dividend growth stocks appears as a winning strategy when some other parameters are included.
5-Year Historical Dividend Growth greater than zero: This selects stocks with a solid dividend growth history.
5-Year Historical Sales Growth greater than zero: This represents stocks with a strong record of growing revenues.
5-Year Historical EPS Growth greater than zero: This represents stocks with a solid earnings growth history.
Next 3-5 Year EPS Growth Rate greater than zero: This represents the rate at which a company’s earnings are expected to grow. Improving earnings should help companies sustain dividend payments.
Price/Cash Flow less than M-Industry: A ratio less than M-industry indicates that the stock is undervalued in that industry, and an investor needs to pay less for better cash flow generated by the company.
52-Week Price Change greater than S&P 500 (Market Weight): This ensures that the stock has appreciated more than the S&P 500 over the past year.
Top Zacks Rank: Stocks having a Zacks Rank #1 (Strong Buy) and 2 (Buy) generally outperform their peers in all types of market environments.
Growth Score of B or better: Our research shows that stocks with a Growth Score of A or B when combined with a Zacks Rank #1 or 2, offer the best upside potential.
Just these few criteria narrowed down the universe from over 7,700 stocks to just five.
Here are five stocks that fit the bill:
Illinois-based Cboe Global is one of the largest stock exchange operators by volume in the United States and a leading market globally for ETP trading. The company saw a positive earnings estimate revision of 9 cents over the past 30 days for the next year. It has an estimated earnings growth rate of 5.25%.
Cboe Global currently sports a Zacks Rank #1 and has a Growth Score of B. You can see the complete list of today’s Zacks #1 Rank stocks here.
Washington-based PACCAR is a leading manufacturer of heavy-duty trucks in the world and has substantial manufacturing exposure to light/medium trucks. The company delivered an average earnings surprise of 15.99% for the past four quarters.
PACCAR has a Zacks Rank #2 and a Growth Score of B.
Ohio-based Installed Building Products operates as a residential insulation installer in the United States. The company also installs complementary building products, including garage doors, rain gutters, shower doors, closet shelving and mirrors. Installed Building Products saw a positive earnings estimate revision of 25 cents for the next year over the past 30 days. It has an estimated earnings growth rate of 6.4%
Installed Building Products has a Zacks Rank #2 and a Growth Score of A at present.
Argentina-based Arcos Dorados operates as a franchisee of McDonald's, with its operations divided among Brazil, North Latin America, South Latin America and the Caribbean divisions. It also runs quick-service restaurants in Latin America and the Caribbean. Arcos Dorados saw a positive earnings estimate revision of 7 cents for the next year over the past 30 days and has an estimated earnings growth rate of 135.4%.
Arcos Dorados has a Zacks Rank #1 and a Growth Score of A.
New York-based Global Industrial is a provider of industrial products principally in North America. The stock has an estimated earnings growth rate of 11.1% for the next year and delivered an average earnings surprise of 8.55% for the past four quarters.
Global Industrial currently has a Zacks Rank #2 and a Growth Score of A.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Click here to sign up for a free trial to the Research Wizard today.
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
Disclosure: Performance information for Zacks’ portfolios and strategies are available at: https://www.zacks.com/performance.
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
Be First to New Top 10 Stocks >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
PACCAR Inc. (PCAR) : Free Stock Analysis Report
Cboe Global Markets, Inc. (CBOE) : Free Stock Analysis Report
Global Industrial Company (GIC) : Free Stock Analysis Report
Arcos Dorados Holdings Inc. (ARCO) : Free Stock Analysis Report
Installed Building Products, Inc. (IBP) : 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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Though the strategy doesn’t offer dramatic price appreciation, it is a major source of consistent income for investors in any type of market. These include a sustainable business model, a long track of profitability, rising cash flows, good liquidity, a strong balance sheet and some value characteristics. 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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We have selected five dividend growth stocks — Cboe Global Markets CBOE, PACCAR Inc. PCAR, Installed Building Products, Inc. IBP, Arcos Dorados Holdings Inc. ARCO and Global Industrial Company GIC — that seem excellent choices for your portfolio. Arcos Dorados saw a positive earnings estimate revision of 7 cents for the next year over the past 30 days and has an estimated earnings growth rate of 135.4%. Click to get this free report PACCAR Inc. (PCAR) : Free Stock Analysis Report Cboe Global Markets, Inc. (CBOE) : Free Stock Analysis Report Global Industrial Company (GIC) : Free Stock Analysis Report Arcos Dorados Holdings Inc. (ARCO) : Free Stock Analysis Report Installed Building Products, Inc. (IBP) : Free Stock Analysis Report To read this article on Zacks.com click here.
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We have selected five dividend growth stocks — Cboe Global Markets CBOE, PACCAR Inc. PCAR, Installed Building Products, Inc. IBP, Arcos Dorados Holdings Inc. ARCO and Global Industrial Company GIC — that seem excellent choices for your portfolio. Growth Score of B or better: Our research shows that stocks with a Growth Score of A or B when combined with a Zacks Rank #1 or 2, offer the best upside potential. Click to get this free report PACCAR Inc. (PCAR) : Free Stock Analysis Report Cboe Global Markets, Inc. (CBOE) : Free Stock Analysis Report Global Industrial Company (GIC) : Free Stock Analysis Report Arcos Dorados Holdings Inc. (ARCO) : Free Stock Analysis Report Installed Building Products, Inc. (IBP) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Why is Dividend Growth Better? Further, a history of strong dividend growth indicates that a dividend increase is likely in the future. Top Zacks Rank: Stocks having a Zacks Rank #1 (Strong Buy) and 2 (Buy) generally outperform their peers in all types of market environments.
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49879dd5-f9f5-4bf2-a073-83334a553f69
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711463.0
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2023-12-15 00:00:00 UTC
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Chevron (CVX), PDVSA Seek a 15-Year Deal to Boost Oil Output
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DCOMP
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https://www.nasdaq.com/articles/chevron-cvx-pdvsa-seek-a-15-year-deal-to-boost-oil-output
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Chevron Corporation CVX, a U.S. oil giant, and a unit of Venezuela's state oil company PDVSA are actively seeking a 15-year extension for two of their joint ventures (JVs). This strategic initiative was revealed by deputy minister Erick Perez during a recent conference, shedding light on the potential for expanded operations and increased crude exports between the two entities.
Expanding Operations Under a Special U.S. License
Since late last year, Chevron and PDVSA have navigated their operations under a special U.S. license. This unique arrangement has allowed Venezuela to resume crude exports to its largest market, the United States. However, achieving pre-sanction production level demands further investment, setting the stage for the JVs’ extended collaboration.
Project Overview: Petroboscan and Petroindependiente
Petroboscan: Sustaining Production of Heavy Crude
Petroboscan, the largest of the two joint projects, currently produces approximately 65,000 barrels per day (bpd) of heavy crude. To ensure sustained growth and efficiency, the project requires a substantial investment of $1.28 billion and operational expenses of $3.35 billion over the proposed 15-year extension period.
Petroindependiente: Nurturing Growth and Innovation
The second project, Petroindependiente, is aimed at continued development. With an investment requirement of $10.7 million and operational expenses amounting to $205 million, this venture is poised to contribute to the overall resilience and prosperity of the collaboration.
Regulatory Hurdles and National Assembly's Role
Venezuela's National Assembly, currently dominated by the government's party following an election without international observation, stands as a crucial gatekeeper. The fate of the JVs’ extension request rests in the hands of the assembly, which is expected to thoroughly deliberate before granting the green signal. This political landscape adds a layer of complexity to the business proceedings.
OPEC Quota Dynamics
Perez also addressed Venezuela's current standing within the OPEC framework. With the nation's oil output lagging below its 1.9 million-bpd OPEC quota due to sanctions, Venezuela seeks continued exemption from planned OPEC+ output cuts. Perez highlighted the imperative need to surpass the sanctions-induced limitations, emphasizing a commitment to ramping up production to meet global demands.
Offshore Gas Project Revival: Plataforma Deltana
To diversify its energy portfolio, Venezuela is actively working to revive the dormant offshore gas project, Plataforma Deltana. Situated near waters reclaimed by Guyana, this ambitious project signifies the nation's commitment to exploring new frontiers in the energy sector. However, specific details about the project's revival remain undisclosed at this point.
Conclusion
Chevron and PDVSA's pursuit of a 15-year extension for their JVs marks a significant stride toward fostering sustained growth and collaboration. The intricate interplay of economic, political and regulatory factors adds a layer of complexity to these initiatives. As the global energy landscape continues to evolve, these JVs serve as a testament to the resilience and adaptability of major players like Chevron and PDVSA.
Zacks Rank and Key Picks
Currently, CVX 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 $7.68 billion. In the past year, its shares have risen 24.6%.
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 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
Williams Companies, Inc. (The) (WMB) : Free Stock Analysis Report
Chevron Corporation (CVX) : Free Stock Analysis Report
Murphy USA Inc. (MUSA) : 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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This strategic initiative was revealed by deputy minister Erick Perez during a recent conference, shedding light on the potential for expanded operations and increased crude exports between the two entities. As the global energy landscape continues to evolve, these JVs serve as a testament to the resilience and adaptability of major players like Chevron and PDVSA. 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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Offshore Gas Project Revival: Plataforma Deltana To diversify its energy portfolio, Venezuela is actively working to revive the dormant offshore gas project, Plataforma Deltana. 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 Chevron Corporation (CVX) : Free Stock Analysis Report Murphy USA Inc. (MUSA) : 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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Chevron Corporation CVX, a U.S. oil giant, and a unit of Venezuela's state oil company PDVSA are actively seeking a 15-year extension for two of their joint ventures (JVs). 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 Chevron Corporation (CVX) : Free Stock Analysis Report Murphy USA Inc. (MUSA) : 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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Chevron Corporation CVX, a U.S. oil giant, and a unit of Venezuela's state oil company PDVSA are actively seeking a 15-year extension for two of their joint ventures (JVs). This unique arrangement has allowed Venezuela to resume crude exports to its largest market, the United States. 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.
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711464.0
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2023-12-15 00:00:00 UTC
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Here's How Much You'd Have If You Invested $1000 in Owens Corning a Decade Ago
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DCOMP
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https://www.nasdaq.com/articles/heres-how-much-youd-have-if-you-invested-%241000-in-owens-corning-a-decade-ago
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For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in Owens Corning (OC) ten years ago? It may not have been easy to hold on to OC for all that time, but if you did, how much would your investment be worth today?
Owens Corning's Business In-Depth
With that in mind, let's take a look at Owens Corning's main business drivers.
Owens Corning is a world leader in building materials systems and composite solutions. Since its inception in 1938, the company has evolved as a market-leading innovator of glass fiber technology. Its products include glass fiber that is used to support composite materials for transportation, electronics, marine, infrastructure, wind energy and other high-performance markets for insulation as well as roofing for residential, commercial and industrial applications.
The company has three reportable segments — Composites, Insulation and Roofing.
Composites segment (accounting for 27.3% of total 2022 sales) includes vertically integrated downstream activities and specializes in the production of glass fiber reinforcement materials. Demand for composites is driven by general global economic activity and by the increasing replacement of traditional materials such as aluminum, wood and steel with composites that offer lighter weight, improved strength, lack of conductivity and corrosion resistance.
Insulation segment (38%) products include thermal and acoustical batts, loose-fill insulation, foam sheathing and accessories, glass fiber pipe insulation, energy efficient flexible duct media, bonded and granulated mineral wool insulation, cellular glass insulation as well as foam insulation. Demand for Owens Corning’s insulating products is driven by new residential construction, remodeling and repair activity, commercial and industrial construction activity, increasingly stringent building codes and the growing need for energy efficiency.
Roofing segment (37.5%) products include laminate and strip asphalt roofing shingles, roofing components, synthetic packaging materials and oxidized asphalt. Demand for products in the Roofing segment is generally driven by residential repair and remodeling activity and by new residential construction. Roofing damage from major storms can significantly increase demand in the segment.
[Note: For 2022, corporate eliminations constituted 2.8% of net sales]
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 Owens Corning 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 $3,944.88, or a 294.49% gain, as of December 18, 2023. Investors should keep in mind that this return excludes dividends but includes price appreciation.
Compare this to the S&P 500's rally of 165.82% and gold's return of 56.24% over the same time frame.
Looking ahead, analysts are expecting more upside for OC.
Shares of Owens Corning have outperformed its industry in the past year. The company is benefiting from the solid performance of the Roofing segment driven by higher volumes related to storm activity, favorable mix and positive price realization. Customer mix and strategic buyouts are added benefits. The company’s focus on new product and process innovation bodes well. In the first three quarters, the company has unveiled 25 new or refreshed products across the three businesses. Notably, earnings estimates for the fourth quarter have moved up in the past 30 days. However, increasing pressure in some of the industrial and international markets, higher interest rates and ongoing geopolitical tensions remain concerns. For the fourth quarter, it expects net sales to remain slightly below year over year.
The stock has jumped 16.03% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 4 higher, for fiscal 2023; the consensus estimate has moved up as well.
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
Be First to New Top 10 Stocks >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Owens Corning Inc (OC) : 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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Its products include glass fiber that is used to support composite materials for transportation, electronics, marine, infrastructure, wind energy and other high-performance markets for insulation as well as roofing for residential, commercial and industrial applications. Composites segment (accounting for 27.3% of total 2022 sales) includes vertically integrated downstream activities and specializes in the production of glass fiber reinforcement materials. The company is benefiting from the solid performance of the Roofing segment driven by higher volumes related to storm activity, favorable mix and positive price realization.
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What if you'd invested in Owens Corning (OC) ten years ago? Demand for Owens Corning’s insulating products is driven by new residential construction, remodeling and repair activity, commercial and industrial construction activity, increasingly stringent building codes and the growing need for energy efficiency. Demand for products in the Roofing segment is generally driven by residential repair and remodeling activity and by new residential construction.
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Insulation segment (38%) products include thermal and acoustical batts, loose-fill insulation, foam sheathing and accessories, glass fiber pipe insulation, energy efficient flexible duct media, bonded and granulated mineral wool insulation, cellular glass insulation as well as foam insulation. Demand for Owens Corning’s insulating products is driven by new residential construction, remodeling and repair activity, commercial and industrial construction activity, increasingly stringent building codes and the growing need for energy efficiency. If you had invested in Owens Corning ten years ago, you're probably feeling pretty good about your investment today.
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It may not have been easy to hold on to OC for all that time, but if you did, how much would your investment be worth today? The company has three reportable segments — Composites, Insulation and Roofing. Be First to New Top 10 Stocks >> Want the latest recommendations from Zacks Investment Research?
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7351e54a-938d-4792-b473-3d36f329773c
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711465.0
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2023-12-15 00:00:00 UTC
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Is the Options Market Predicting a Spike in Baytex Energy (BTE) Stock?
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https://www.nasdaq.com/articles/is-the-options-market-predicting-a-spike-in-baytex-energy-bte-stock-0
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Investors in Baytex Energy Corp. BTE need to pay close attention to the stock based on moves in the options market lately. That is because the Jan 19, 2024 $35 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 Baytex Energy shares, but what is the fundamental picture for the company? Currently, Baytex Energy is a Zacks Rank #4 (Sell) in the Oil and Gas - Exploration and Production - Canadian industry that ranks in the Bottom 25% of our Zacks Industry Rank. Over the last 30 days, no analysts have increased their earnings estimates for the current quarter, while one analyst has revised the estimate downward. The net effect has taken our Zacks Consensus Estimate for the current quarter from 21 cents per share to 13 cents in that period.
Given the way analysts feel about Baytex Energy right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.
Looking to Trade Options?
Check out the simple yet high-powered approach that Zacks Executive VP Kevin Matras has used to close recent double and triple-digit winners. In addition to impressive profit potential, these trades can actually reduce your risk.
Click to see the trades now >>
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
Be First to New Top 10 Stocks >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Baytex Energy Corp (BTE) : 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.
|
Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. Check out the simple yet high-powered approach that Zacks Executive VP Kevin Matras has used to close recent double and triple-digit winners. From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%.
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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. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. Click to get this free report Baytex Energy Corp (BTE) : 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. Given the way analysts feel about Baytex Energy 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.
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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. Given the way analysts feel about Baytex Energy right now, this huge implied volatility could mean there’s a trade developing. Looking to Trade Options?
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1de9d26d-afd5-4416-8419-19aa5746eed3
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711466.0
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2023-12-15 00:00:00 UTC
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Petrobras (PBR) Aims to Conduct First Amazon Mouth Drill in 2024
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https://www.nasdaq.com/articles/petrobras-pbr-aims-to-conduct-first-amazon-mouth-drill-in-2024
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Petrobras PBR, the Brazilian state-run oil company, has set its eyes on drilling its first well near the mouth of the Amazon River in 2024. This ambitious project, however, centers on securing approval from the environmental agency Ibama, which previously rejected Petrobras' bid due to concerns about the delicate ecosystem.
Drilling near the Amazon mouth carries immense potential for PBR. The area is believed to hold vast oil reserves, potentially boosting Brazil's energy independence and economic growth. However, the project also raises significant environmental concerns. The Amazon River is a vital ecosystem, harboring irreplaceable biodiversity and playing a key role in global climate regulation. Any oil spill or environmental damage could mean devastating consequences.
Petrobras CEO's Optimism and Environmental Safeguards
Petrobras’ CEO Jean Paul Prates remains optimistic about the project's future, stating that the company is "halfway to obtaining the license." He emphasized on the improved safety measures and environmental protocols implemented in response to Ibama's initial rejection.
The agency is expected to make a final decision on PBR's appeal by early 2024, setting the stage for a pivotal moment in both Brazil's energy future and the Amazon River's fate.
Heated Debate and Government Dilemma
The project's potential impact has sparked heated debate. Environmentalists warn of the risks to the Amazon River and its indigenous communities, while proponents highlight the potential economic benefits and energy security gains. Brazil’s government itself seems divided. While president Luiz Inácio Lula da Silva expressed cautious support, the environment minister Marina Silva raised concerns.
Strategic Planning and Technological Innovation
The timeline for the first drill in 2024 reflects PBR's strategic planning and commitment to advancing its exploration capabilities. This move positions PBR as a key player in the dynamic landscape of global oil exploration.
Petrobras' foray into the Amazon River is not just a geographical expansion but a testament to the company's commitment to cutting-edge technology in offshore drilling. As the industry evolves, PBR is at the forefront, embracing innovation to extract oil resources responsibly.
Brazil's Economic Landscape and Global Oil Market Impact
Brazil, as a significant player in the global oil market, stands to gain from Petrobras' successful foray into the Amazon River. The country's economic landscape is intricately tied to its oil industry, and Petrobras' endeavors contribute to Brazil's prominence in the international energy sector.
Corporate Responsibility and Sustainable Practices
PBR's commitment to obtaining the necessary environmental clearances demonstrates a broader trend in the industry — an increasing emphasis on corporate responsibility and sustainable practices.
Uncertain Future and Critical Months Ahead
This story is far from over. The coming months will be critical as Ibama weighs the risks and benefits of the project. Regardless of the agency's ultimate decision, the Amazon mouth drilling project will undoubtedly remain a contentious issue, raising questions about balancing economic development with environmental protection in a region of global significance.
Zacks Rank and Key Picks
Currently, PBR 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 $7.68 billion. In the past year, its shares have risen 24.6%.
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 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
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
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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This ambitious project, however, centers on securing approval from the environmental agency Ibama, which previously rejected Petrobras' bid due to concerns about the delicate ecosystem. The agency is expected to make a final decision on PBR's appeal by early 2024, setting the stage for a pivotal moment in both Brazil's energy future and the Amazon River's fate. Regardless of the agency's ultimate decision, the Amazon mouth drilling project will undoubtedly remain a contentious issue, raising questions about balancing economic development with environmental protection in a region of global significance.
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Brazil's Economic Landscape and Global Oil Market Impact Brazil, as a significant player in the global oil market, stands to gain from Petrobras' successful foray into the Amazon River. 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 Petroleo Brasileiro S.A.- Petrobras (PBR) : Free Stock Analysis Report Murphy USA Inc. (MUSA) : 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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Brazil's Economic Landscape and Global Oil Market Impact Brazil, as a significant player in the global oil market, stands to gain from Petrobras' successful foray into the Amazon River. 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 Petroleo Brasileiro S.A.- Petrobras (PBR) : Free Stock Analysis Report Murphy USA Inc. (MUSA) : 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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However, the project also raises significant environmental concerns. Brazil's Economic Landscape and Global Oil Market Impact Brazil, as a significant player in the global oil market, stands to gain from Petrobras' successful foray into the Amazon River. 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.
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97c10f4a-ddcd-42ed-ae27-946039817f8a
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711467.0
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2023-12-15 00:00:00 UTC
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This Is Apple's Most Important Growth Product Today (Hint: It's Not the iPhone)
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DCOMP
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https://www.nasdaq.com/articles/this-is-apples-most-important-growth-product-today-hint%3A-its-not-the-iphone
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The iPhone has been critical to Apple's (NASDAQ: AAPL) growth over the past 16 years, but it's no longer a growth driver. Instead, services and accessories are driving revenue increases.
In this video, Travis Hoium goes over why the iPhone is slowing and where investors should look for growth at Apple.
*Stock prices used were end-of-day prices of Dec. 6, 2023. The video was published on Dec. 8, 2023.
Should you invest $1,000 in Apple right now?
Before you buy stock in Apple, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Apple wasn't one of them. The 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 7, 2023
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Travis Hoium has positions in Alphabet and Apple. The Motley Fool has positions in and recommends Alphabet and Apple. The Motley Fool has a disclosure policy. Travis Hoium is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The 10 stocks that made the cut could produce monster returns in the coming years. 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.
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Before you buy stock in Apple, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Apple wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 7, 2023 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Travis Hoium has positions in Alphabet and Apple.
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Before you buy stock in Apple, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Apple wasn't one of them. 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 7, 2023 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors.
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In this video, Travis Hoium goes over why the iPhone is slowing and where investors should look for growth at Apple. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*. The Motley Fool has positions in and recommends Alphabet and Apple.
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9cc74e29-27c1-49bc-9737-4a5e95ae819d
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711468.0
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2023-12-15 00:00:00 UTC
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Implied Volatility Surging for Advanced Micro Devices (AMD) Stock Options
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DCOMP
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https://www.nasdaq.com/articles/implied-volatility-surging-for-advanced-micro-devices-amd-stock-options-0
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nan
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Investors in Advanced Micro Devices, Inc AMD need to pay close attention to the stock based on moves in the options market lately. That is because the Jan 19, 2024 $75 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 Advanced Micro Devices shares, but what is the fundamental picture for the company? Currently, Advanced Micro Devices is a Zacks Rank #3 (Hold) in the Electronics – Semiconductors 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 13 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 77 cents in that period.
Given the way analysts feel about Advanced Micro Devices right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.
Looking to Trade Options?
Check out the simple yet high-powered approach that Zacks Executive VP Kevin Matras has used to close recent double and triple-digit winners. In addition to impressive profit potential, these trades can actually reduce your risk.
Click to see the trades now >>
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
Be First to New Top 10 Stocks >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Advanced Micro Devices, Inc. (AMD) : 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.
|
Investors in Advanced Micro Devices, Inc AMD need to pay close attention to the stock based on moves in the options market lately. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. Check out the simple yet high-powered approach that Zacks Executive VP Kevin Matras has used to close recent double and triple-digit winners.
|
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, Advanced Micro Devices is a Zacks Rank #3 (Hold) in the Electronics – Semiconductors industry that ranks in the Bottom 25% of our Zacks Industry Rank. Click to get this free report Advanced Micro Devices, Inc. (AMD) : 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, Advanced Micro Devices is a Zacks Rank #3 (Hold) in the Electronics – Semiconductors industry that ranks in the Bottom 25% of our Zacks Industry Rank. Given the way analysts feel about Advanced Micro Devices right now, this huge implied volatility could mean there’s a trade developing.
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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. Given the way analysts feel about Advanced Micro Devices right now, this huge implied volatility could mean there’s a trade developing. Looking to Trade Options?
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da560bac-efae-4d4b-952b-54df6711b168
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711469.0
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2023-12-15 00:00:00 UTC
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Are Options Traders Betting on a Big Move in Weibo (WB) Stock?
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DCOMP
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https://www.nasdaq.com/articles/are-options-traders-betting-on-a-big-move-in-weibo-wb-stock
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nan
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Investors in Weibo Corporation WB need to pay close attention to the stock based on moves in the options market lately. That is because the Jan 19, 2024 $10.00 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 Weibo shares, but what is the fundamental picture for the company? Currently, Weibo is a Zacks Rank #3 (Hold) in the Internet - Content industry that ranks in the Top 33% of our Zacks Industry Rank. Over the last 60 days, one analyst has increased the earnings estimate for the current quarter, while none have dropped their estimates. The net effect has taken our Zacks Consensus Estimate for the current quarter from 43 cents per share to 47 cents in that period.
Given the way analysts feel about Weibo right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.
Looking to Trade Options?
Check out the simple yet high-powered approach that Zacks Executive VP Kevin Matras has used to close recent double and triple-digit winners. In addition to impressive profit potential, these trades can actually reduce your risk.
Click to see the trades now >>
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
Be First to New Top 10 Stocks >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Weibo Corporation (WB) : 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.
|
Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. Check out the simple yet high-powered approach that Zacks Executive VP Kevin Matras has used to close recent double and triple-digit winners. From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%.
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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. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. Click to get this free report Weibo Corporation (WB) : 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, Weibo is a Zacks Rank #3 (Hold) in the Internet - Content industry that ranks in the Top 33% of our Zacks Industry Rank. Oftentimes, options traders look for options with high levels of implied volatility to sell premium.
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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? Be First to New Top 10 Stocks >> Want the latest recommendations from Zacks Investment Research?
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3c5f448a-69b0-4b84-a7de-f6fe399645fe
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711470.0
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2023-12-15 00:00:00 UTC
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Do Options Traders Know Something About Alliance Resource (ARLP) Stock We Don't?
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DCOMP
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https://www.nasdaq.com/articles/do-options-traders-know-something-about-alliance-resource-arlp-stock-we-dont
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nan
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nan
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Investors in Alliance Resource Partners, L.P. ARLP need to pay close attention to the stock based on moves in the options market lately. That is because the Jan 19, 2024 $2.50 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 Alliance Resource shares, but what is the fundamental picture for the company? Currently, Alliance Resource is a Zacks Rank #4 (Sell) in the Coal industry that ranks in the Bottom 23% of our Zacks Industry Rank. Over the last 60 days, no analysts have increased their earnings estimates for the current quarter, while two analysts have revised their estimates downward. The net effect has taken our Zacks Consensus Estimate for the current quarter from $1.41 per share to $1.14 in that period.
Given the way analysts feel about Alliance Resource right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.
Looking to Trade Options?
Check out the simple yet high-powered approach that Zacks Executive VP Kevin Matras has used to close recent double and triple-digit winners. In addition to impressive profit potential, these trades can actually reduce your risk.
Click to see the trades now >>
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
Be First to New Top 10 Stocks >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Alliance Resource Partners, L.P. (ARLP) : 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.
|
Investors in Alliance Resource Partners, L.P. ARLP need to pay close attention to the stock based on moves in the options market lately. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. Check out the simple yet high-powered approach that Zacks Executive VP Kevin Matras has used to close recent double and triple-digit winners.
|
Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. Click to get this free report Alliance Resource Partners, L.P. (ARLP) : 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. Given the way analysts feel about Alliance Resource 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.
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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. Clearly, options traders are pricing in a big move for Alliance Resource shares, but what is the fundamental picture for the company? Given the way analysts feel about Alliance Resource right now, this huge implied volatility could mean there’s a trade developing.
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cc2ca113-7aeb-4fb0-a00c-249ca060e1af
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711471.0
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2023-12-15 00:00:00 UTC
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Implied Volatility Surging for Meta Platforms (META) Stock Options
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DCOMP
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https://www.nasdaq.com/articles/implied-volatility-surging-for-meta-platforms-meta-stock-options-0
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nan
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nan
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Investors in Meta Platforms, Inc. META need to pay close attention to the stock based on moves in the options market lately. That is because the Jan 19, 2024 $5.00 Call had some of the highest implied volatility of all equity options today.
What is Implied Volatility?
Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
What do the Analysts Think?
Clearly, options traders are pricing in a big move for Meta Platforms’ shares, but what is the fundamental picture for the company? Currently, Meta Platforms is a Zacks Rank #2 (Buy) in the Internet – Software industry that ranks in the Top 10% of our Zacks Industry Rank. Over the last 60 days, eight analysts have increased their earnings estimates for the current quarter, while five have dropped their estimates. The net effect has taken our Zacks Consensus Estimate for the current quarter from $4.74 per share to $4.77 in that period.
Given the way analysts feel about Meta Platforms right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.
Looking to Trade Options?
Check out the simple yet high-powered approach that Zacks Executive VP Kevin Matras has used to close recent double and triple-digit winners. In addition to impressive profit potential, these trades can actually reduce your risk.
Click to see the trades now >>
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
Be First to New Top 10 Stocks >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
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.
|
Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. Check out the simple yet high-powered approach that Zacks Executive VP Kevin Matras has used to close recent double and triple-digit winners. From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%.
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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, Meta Platforms is a Zacks Rank #2 (Buy) in the Internet – Software industry that ranks in the Top 10% of our Zacks Industry Rank. Click to get this free report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Investors in Meta Platforms, Inc. META need to pay close attention to the stock based on moves in the options market lately. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. Currently, Meta Platforms is a Zacks Rank #2 (Buy) in the Internet – Software industry that ranks in the Top 10% of our Zacks Industry Rank.
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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. Clearly, options traders are pricing in a big move for Meta Platforms’ shares, but what is the fundamental picture for the company? Given the way analysts feel about Meta Platforms right now, this huge implied volatility could mean there’s a trade developing.
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f0dc1c4f-fb95-44b6-b468-89a464730549
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711472.0
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2023-12-15 00:00:00 UTC
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Here's How Much a $1000 Investment in Martin Marietta Made 10 Years Ago Would Be Worth Today
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DCOMP
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https://www.nasdaq.com/articles/heres-how-much-a-%241000-investment-in-martin-marietta-made-10-years-ago-would-be-worth-0
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nan
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nan
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For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in Martin Marietta (MLM) ten years ago? It may not have been easy to hold on to MLM for all that time, but if you did, how much would your investment be worth today?
Martin Marietta's Business In-Depth
With that in mind, let's take a look at Martin Marietta's main business drivers.
Based in Raleigh, NC, Martin Marietta Materials, Inc. produces and supplies construction aggregates and other heavy building materials, mainly cement, in the United States. The end uses of the company’s aggregates and cement are infrastructure, private residential and private non-residential construction. Railroad, agricultural, utility and environmental industries also use these products. The company supplies aggregates (crushed stone, sand and gravel) through its network of approximately 350 quarries, mines and distribution yards in 28 states, Canada and the Bahamas.
The company’s total revenues include sales of products and services to customers (net of any discounts or allowances) and freight revenues.
Building Materials (accounting for 95.1% of 2022 total revenues): The Building Materials business includes aggregates, cement, ready mixed concrete, asphalt and paving product lines. Within the Building Materials business segment, the company modified the reportable segments to the East Group — previously reported in the Mid-America and Southeast — and West Group, effective Jul 1, 2020.
Magnesia Specialties (4.9%): The segment produces magnesia-based chemicals products used in industrial, agricultural and environmental applications and dolomitic lime sold primarily to customers in the steel industry.
Consistent with its SOAR (Strategic Operating Analysis and Review) 2025 plan, Martin Marietta divested its Colorado and Central Texas ready-mixed concrete businesses and certain West Coast cement and ready-mixed concrete operations in 2022. The move helps MLM in refining its product mix and improving margin profiles, while providing balance sheet flexibility.
Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Martin Marietta a decade ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in December 2013 would be worth $5,050.93, or a 405.09% gain, as of December 18, 2023. Investors should keep in mind that this return excludes dividends but includes price appreciation.
The S&P 500 rose 165.82% and the price of gold increased 56.24% over the same time frame in comparison.
Analysts are forecasting more upside for MLM too.
Martin Marietta has outperformed the industry in the past three months. The company has been gaining strength from long-term strategic plans — markedly SOAR (Strategic Operating Analysis and Review) 2025 initiatives. It has also been benefiting from strong demand trends across a coast-to-coast geographic footprint, given its increased infrastructure investment coupled with strength in the heavy non-residential construction, large-scale energy projects and domestic manufacturing. A solid inflow of public funds for infrastructure and manufacturing activities is aiding to the bliss. Owing to these tailwinds, the company raised its 2023 outlook. However, softness in private nonresidential and residential construction activities, ongoing economic uncertainties along with pricing fluctuations are concerning.
Over the past four weeks, shares have rallied 6.03%, and there have been 7 higher earnings estimate revisions in the past two months for fiscal 2023 compared to none lower. The consensus estimate has moved up as well.
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
Be First to New Top 10 Stocks >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Martin Marietta Materials, Inc. (MLM) : 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 supplies aggregates (crushed stone, sand and gravel) through its network of approximately 350 quarries, mines and distribution yards in 28 states, Canada and the Bahamas. It has also been benefiting from strong demand trends across a coast-to-coast geographic footprint, given its increased infrastructure investment coupled with strength in the heavy non-residential construction, large-scale energy projects and domestic manufacturing. 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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Based in Raleigh, NC, Martin Marietta Materials, Inc. produces and supplies construction aggregates and other heavy building materials, mainly cement, in the United States. Building Materials (accounting for 95.1% of 2022 total revenues): The Building Materials business includes aggregates, cement, ready mixed concrete, asphalt and paving product lines. Click to get this free report Martin Marietta Materials, Inc. (MLM) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Building Materials (accounting for 95.1% of 2022 total revenues): The Building Materials business includes aggregates, cement, ready mixed concrete, asphalt and paving product lines. So, if you had invested in Martin Marietta a decade ago, you're probably feeling pretty good about your investment today. Click to get this free report Martin Marietta Materials, Inc. (MLM) : Free Stock Analysis Report To read this article on Zacks.com click here.
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It may not have been easy to hold on to MLM for all that time, but if you did, how much would your investment be worth today? Building Materials (accounting for 95.1% of 2022 total revenues): The Building Materials business includes aggregates, cement, ready mixed concrete, asphalt and paving product lines. Martin Marietta has outperformed the industry in the past three months.
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395f863c-0c4b-4b0d-8e74-4e99830bbda2
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711473.0
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2023-12-15 00:00:00 UTC
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Here's How Much You'd Have If You Invested $1000 in Workday a Decade Ago
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DCOMP
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https://www.nasdaq.com/articles/heres-how-much-youd-have-if-you-invested-%241000-in-workday-a-decade-ago-0
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nan
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nan
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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.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in Workday (WDAY) ten years ago? It may not have been easy to hold on to WDAY for all that time, but if you did, how much would your investment be worth today?
Workday's Business In-Depth
With that in mind, let's take a look at Workday's main business drivers.
Founded in 2005 and headquartered in Pleasanton, CA, Workday Inc. (WDAY) is a provider of enterprise-level software solutions for financial management and human resource domains. The company’s cloud-based platform combines finance and HR in a single system that makes it easier for organizations to provide analytical insights and decision support.
Notably, organizations ranging from medium-sized businesses to Fortune 50 enterprises have opted for Workday solutions. The company also offers open, standards-based web-services application programming interfaces and pre-built packaged integrations and connectors.
In third quarter fiscal 2024, the company reported revenues of $1.86 billion. Subscription revenues accounted for 90.6% of total revenues, while professional revenues made up the rest.
Apart from Financial Management and Human Capital Management (HCM) solutions, the company offers applications related to Payroll, Time Tracking, Recruiting, Learning, Planning, Professional Services Automation and Student.
The company offers Adaptive Insights Business Planning Cloud solutions, Workday Prism Analytics, Workday Data-as-a-Service (DaaS) and Workday Marketplace. Workday Prism Analytics helps in business planning and collaborative approach.
Workday Prism Analytics helps customers to bring Workday data and data from any outside source together in order to make better business decisions. Workday DaaS is a cloud service that provides important data to customers which in turn help in decision-making.
The company serves technology, financial services, business services, healthcare and life sciences, manufacturing, and consumer and retail industries, as well as education and government industries.
Workday ended fiscal 2023 with more than 50% of the Fortune 500 customers. Its peers in HCM market include SAP SE, Oracle Corporation, Automated Data Processing, and Ceridian, among others.
Bottom Line
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Workday ten years ago, you're likely feeling pretty good about your investment today.
A $1000 investment made in December 2013 would be worth $3,409.60, or a gain of 240.96%, as of December 18, 2023, according to our calculations. This return excludes dividends but includes price appreciation.
In comparison, the S&P 500 gained 165.82% and the price of gold went up 56.24% over the same time frame.
Analysts are forecasting more upside for WDAY too.
Workday reported strong third-quarter fiscal 2024 results, with the bottom and the top line surpassing the respective Zacks Consensus Estimate. The company’s cloud-based business model and expanding product portfolio have been the primary growth drivers. Developers are increasingly using Workday’s AI services to craft intelligent applications for business process optimization. The growing clout of Workday Prism Analytics and Adaptive Insights business planning cloud offerings holds promise. However, the lack of geographical diversity exposes the company to various market risks. Economic downturns, shifts in consumer preferences and changes in the regulatory environment can drastically impact Workday’s revenues and profitability. Higher operating expenses due to rising product development and marketing costs are straining margins.
Over the past four weeks, shares have rallied 17.72%, and there have been 7 higher earnings estimate revisions in the past two months for fiscal 2024 compared to none lower. The consensus estimate has moved up as well.
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
Be First to New Top 10 Stocks >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Workday, Inc. (WDAY) : 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.
|
Founded in 2005 and headquartered in Pleasanton, CA, Workday Inc. (WDAY) is a provider of enterprise-level software solutions for financial management and human resource domains. The company’s cloud-based platform combines finance and HR in a single system that makes it easier for organizations to provide analytical insights and decision support. Workday reported strong third-quarter fiscal 2024 results, with the bottom and the top line surpassing the respective Zacks Consensus Estimate.
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Apart from Financial Management and Human Capital Management (HCM) solutions, the company offers applications related to Payroll, Time Tracking, Recruiting, Learning, Planning, Professional Services Automation and Student. The company offers Adaptive Insights Business Planning Cloud solutions, Workday Prism Analytics, Workday Data-as-a-Service (DaaS) and Workday Marketplace. The growing clout of Workday Prism Analytics and Adaptive Insights business planning cloud offerings holds promise.
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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. The company offers Adaptive Insights Business Planning Cloud solutions, Workday Prism Analytics, Workday Data-as-a-Service (DaaS) and Workday Marketplace. Workday Prism Analytics helps customers to bring Workday data and data from any outside source together in order to make better business decisions.
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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. It may not have been easy to hold on to WDAY for all that time, but if you did, how much would your investment be worth today? Apart from Financial Management and Human Capital Management (HCM) solutions, the company offers applications related to Payroll, Time Tracking, Recruiting, Learning, Planning, Professional Services Automation and Student.
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34975693-92d3-4fc3-8b71-47d2d5e51642
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711474.0
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2023-12-15 00:00:00 UTC
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Implied Volatility Surging for On DraftKings (DKNG) Stock Options
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DCOMP
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https://www.nasdaq.com/articles/implied-volatility-surging-for-on-draftkings-dkng-stock-options
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nan
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nan
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Investors in DraftKings Inc. DKNG need to pay close attention to the stock based on moves in the options market lately. That is because the Jan 19, 2024 $25.00 Put had some of the highest implied volatility of all equity options today.
What is Implied Volatility?
Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
What do the Analysts Think?
Clearly, options traders are pricing in a big move for DraftKings shares, but what is the fundamental picture for the company? Currently, DraftKings is a Zacks Rank #3 (Hold) in the Gaming industry that ranks in the Top 28% of our Zacks Industry Rank. Over the last 60 days, eight 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 8 cents per share to 15 cents cents in that period.
Given the way analysts feel DraftKings right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.
Looking to Trade Options?
Check out the simple yet high-powered approach that Zacks Executive VP Kevin Matras has used to close recent double and triple-digit winners. In addition to impressive profit potential, these trades can actually reduce your risk.
Click to see the trades now >>
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
Be First to New Top 10 Stocks >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
DraftKings Inc. (DKNG) : 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.
|
Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. Check out the simple yet high-powered approach that Zacks Executive VP Kevin Matras has used to close recent double and triple-digit winners. From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%.
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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, DraftKings is a Zacks Rank #3 (Hold) in the Gaming industry that ranks in the Top 28% of our Zacks Industry Rank. Click to get this free report DraftKings Inc. (DKNG) : 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, DraftKings is a Zacks Rank #3 (Hold) in the Gaming industry that ranks in the Top 28% 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? Be First to New Top 10 Stocks >> Want the latest recommendations from Zacks Investment Research?
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970872a1-a800-468a-92ce-4f810e17f986
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711475.0
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2023-12-15 00:00:00 UTC
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Recent Price Trend in SharkNinja, Inc. (SN) is Your Friend, Here's Why
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DCOMP
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https://www.nasdaq.com/articles/recent-price-trend-in-sharkninja-inc.-sn-is-your-friend-heres-why
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nan
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nan
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While "the trend is your friend" when it comes to short-term investing or trading, timing entries into the trend is a key determinant of success. And increasing the odds of success by making sure the sustainability of a trend isn't easy.
The trend often reverses before exiting the trade, leading to a short-term capital loss for investors. So, for a profitable trade, one should confirm factors such as sound fundamentals, positive earnings estimate revisions, etc. that could keep the momentum in the stock alive.
Our "Recent Price Strength" screen, which is created on a unique short-term trading strategy, could be pretty useful in this regard. This predefined screen makes it really easy to shortlist the stocks that have enough fundamental strength to maintain their recent uptrend. Also, the screen passes only the stocks that are trading in the upper portion of their 52-week high-low range, which is usually an indicator of bullishness.
There are several stocks that passed through the screen and SharkNinja, Inc. (SN) is one of them. Here are the key reasons why this stock is a solid choice for "trend" investing.
A solid price increase over a period of 12 weeks reflects investors' continued willingness to pay more for the potential upside in a stock. SN is quite a good fit in this regard, gaining 12.3% over this period.
However, it's not enough to look at the price change for around three months, as it doesn't reflect any trend reversal that might have happened in a shorter time frame. It's important for a potential winner to maintain the price trend. A price increase of 6.9% over the past four weeks ensures that the trend is still in place for the stock of this company.
Moreover, SN is currently trading at 86.2% of its 52-week High-Low Range, hinting that it can be on the verge of a breakout.
Looking at the fundamentals, the stock currently carries a Zacks Rank #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 SN may not reverse anytime soon.
In addition to SN, there are several other stocks that currently pass through our "Recent Price Strength" screen. You may consider investing in them and start looking for the newest stocks that fit these criteria.
This is not the only screen that could help you find your next winning stock pick. Based on your personal investing style, you may choose from over 45 Zacks Premium Screens that are strategically created to beat the market.
However, keep in mind that the key to a successful stock-picking strategy is to ensure that it produced profitable results in the past. You could easily do that with the help of the Zacks Research Wizard. In addition to allowing you to backtest the effectiveness of your strategy, the program comes loaded with some of our most successful stock-picking strategies.
Click here to sign up for a free trial to the Research Wizard today.
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
Be First to New Top 10 Stocks >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
SharkNinja, Inc. (SN) : 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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A solid price increase over a period of 12 weeks reflects investors' continued willingness to pay more for the potential upside in a stock. Based on your personal investing style, you may choose from over 45 Zacks Premium Screens that are strategically created to beat the market. From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%.
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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 SharkNinja, Inc. (SN) : 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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There are several stocks that passed through the screen and SharkNinja, Inc. (SN) is one of them. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Another factor that confirms the company's fundamental strength is its Average Broker Recommendation of #1 (Strong Buy). Be First to New Top 10 Stocks >> Want the latest recommendations from Zacks Investment Research?
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ea94488c-4460-4b19-bbd6-22bc48063c57
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711476.0
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2023-12-15 00:00:00 UTC
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Alphabet (GOOGL) Boosts Google Cloud Offerings With Gemini Pro
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DCOMP
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https://www.nasdaq.com/articles/alphabet-googl-boosts-google-cloud-offerings-with-gemini-pro
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nan
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nan
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Alphabet’s GOOGL Google is constantly making strong efforts toward strengthening its cloud segment on the back of its new innovative products. This is evident from its latest unveiling of Gemini Pro for enterprises.
Gemini, a new, advanced and powerful large language model (“LLM”), was recently announced. It is available in three different sizes, Gemini Ultra, which is its largest and most capable one; Gemini Pro, which is designed to offer scalability across various applications; and Gemini Nano, which is designed for specific tasks and mobile devices.
Gemini Pro supports 38 languages across 180 countries. Thus, it is capable of helping customers develop apps such as AI-powered chatbots, easy-to-query inventory databases and marketing presentations seamlessly.
It is designed to combine various information, including text, code, audio, image and video, in the same way that humans see, hear, read, listen and talk about different types of information simultaneously.
It is also cost-efficient. It costs four times less for input and two times less for output than the AI model, PaLM 2.
Alphabet Inc. Price and Consensus
Alphabet Inc. price-consensus-chart | Alphabet Inc. Quote
Google Cloud in Focus
The latest move has added strength to Google Cloud offerings.
In addition, the company recently made its much-awaited A3 virtual machines (“VMs”) generally available. A3, which was launched last year, is powered by NVIDIA’s NVDA H100 Tensor Core GPUs that feature a transformer engine capable of addressing trillion-parameter models.
A3 VMs are comprised of dual next-generation 4th Gen Intel Xeon scalable processors, eight NVIDIA H100 GPUs per VM and 2TB host memory. It delivers 3.6 TB per second of bisectional bandwidth, which, in turn, enhances the supercomputing powers of the users.
Google strengthened its Kubernetes offerings by launching a new enterprise version of its Google Kubernetes Engine (“GKE”), which aids enterprises in complex workload management while running multiple clusters by combining GKE with Anthos, Google’s container platform.
All these endeavors are likely to aid the performance of Google Cloud in the coming days.
Google Cloud reported revenues of $8.41 billion in the third quarter of 2023. The figure accounted for 10.9% of the quarter’s total revenues and exhibited year-over-year growth of 22.5%.
Our model projects Google Cloud’s 2023 revenues at $32.5 billion, indicating year-over-year growth of 23.9%.
We believe that strengthening Google Cloud is likely to aid Alphabet’s overall financial performance. This, in turn, is expected to instill investor optimism in the stock.
GOOGL has gained 50.3% on a year-to-date basis.
Growing Generative AI Efforts
Apart from the latest move, the company recently announced the general availability of its suite of AI-powered assistance tools for code completion and generation called Duet AI for Developers, which was announced in May 2023.
Google launched MedLM, a family of generative AI models intended for the healthcare industry. MedLM, currently available to Vertex AI customers, includes two models offering medical documentation testing, drug development research and chatbot provider identification.
We believe Alphabet remains well-poised to capitalize on the growth opportunities present in the booming generative AI market on the back of the abovementioned endeavors. Currently, Alphabet carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
A Fortune Business Insights report shows that the global generative AI market size is expected to reach $667.96 billion by 2030, seeing a CAGR of 47.5% between 2023 and 2030.
Given the upbeat scenario in the generative AI space, not only Google but also Microsoft MSFT and Amazon AMZN are flexing muscles to bolster generative AI capabilities.
Microsoft continues to make strong efforts to boost its generative AI capabilities. Its integration of GPT-4 into its search engine Bing and browser Edge to deliver a ChatGPT-like experience to users remains noteworthy.
Microsoft Azure offers the Azure OpenAI Service, which enables the seamless application of LLM and generative AI techniques in various use cases.
It recently announced OpenAI's DALL-E 3 AI image-synthesis model, fully integrated with ChatGPT, which challenges previous models by rendering images with complex descriptions and handling in-image text generation.
Amazon’s AWS recently announced the general availability of its fully managed service called Amazon Bedrock. It provides seamless access to high-performing foundation models from AI companies through an API. The company also made the Amazon Titan Embeddings model generally available.
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
Be First to New Top 10 Stocks >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
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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A3, which was launched last year, is powered by NVIDIA’s NVDA H100 Tensor Core GPUs that feature a transformer engine capable of addressing trillion-parameter models. A3 VMs are comprised of dual next-generation 4th Gen Intel Xeon scalable processors, eight NVIDIA H100 GPUs per VM and 2TB host memory. MedLM, currently available to Vertex AI customers, includes two models offering medical documentation testing, drug development research and chatbot provider identification.
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Google strengthened its Kubernetes offerings by launching a new enterprise version of its Google Kubernetes Engine (“GKE”), which aids enterprises in complex workload management while running multiple clusters by combining GKE with Anthos, Google’s container platform. Microsoft Azure offers the Azure OpenAI Service, which enables the seamless application of LLM and generative AI techniques in various use cases. Click to get this free report Amazon.com, Inc. (AMZN) : 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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Alphabet Inc. Price and Consensus Alphabet Inc. price-consensus-chart | Alphabet Inc. Quote Google Cloud in Focus The latest move has added strength to Google Cloud offerings. Growing Generative AI Efforts Apart from the latest move, the company recently announced the general availability of its suite of AI-powered assistance tools for code completion and generation called Duet AI for Developers, which was announced in May 2023. Click to get this free report Amazon.com, Inc. (AMZN) : 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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All these endeavors are likely to aid the performance of Google Cloud in the coming days. Growing Generative AI Efforts Apart from the latest move, the company recently announced the general availability of its suite of AI-powered assistance tools for code completion and generation called Duet AI for Developers, which was announced in May 2023. Be First to New Top 10 Stocks >> Want the latest recommendations from Zacks Investment Research?
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be0887aa-22a4-4093-b9f7-6dd07654ed42
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711477.0
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2023-12-15 00:00:00 UTC
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Fedex Corp Shares Near 52-Week High - Market Mover
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DCOMP
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https://www.nasdaq.com/articles/fedex-corp-shares-near-52-week-high-market-mover
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Fedex Corp (FDX) shares closed today at 0.9% below its 52 week high of $284.52, giving the company a market cap of $70B. The stock is currently up 65.8% year-to-date, up 67.3% over the past 12 months, and up 67.8% over the past five years. This week, the Dow Jones Industrial Average rose 2.8%, and the S&P 500 rose 2.4%.
Trading Activity
Trading volume this week was 82.0% higher than the 20-day average.
Beta, a measure of the stock’s volatility relative to the overall market stands at 0.9.
Technical Indicators
The Relative Strength Index (RSI) on the stock was above 70, indicating it may be overbought.
MACD, a trend-following momentum indicator, indicates an upward trend.
The stock closed below its Bollinger band, indicating it may be oversold.
Market Comparative Performance
The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and lags it on a 5-year basis
The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and lags it on a 5-year basis
The company share price is the same as the performance of its peers in the Industrials industry sector , beats it on a 1-year basis, and lags it on a 5 year basis
Per Group Comparative Performance
The company's stock price performance year-to-date beats the peer average by -744.5%
The company's stock price performance over the past 12 months beats the peer average by -702.6%
The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 26.8% higher than the average peer.
This story was produced by the Kwhen Automated News Generator. For more articles like this, please visit us at finance.kwhen.com. Write to editors@kwhen.com. © 2020 Kwhen Inc.
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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Fedex Corp (FDX) shares closed today at 0.9% below its 52 week high of $284.52, giving the company a market cap of $70B. Beta, a measure of the stock’s volatility relative to the overall market stands at 0.9. Market Comparative Performance The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and lags it on a 5-year basis The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and lags it on a 5-year basis The company share price is the same as the performance of its peers in the Industrials industry sector , beats it on a 1-year basis, and lags it on a 5 year basis Per Group Comparative Performance The company's stock price performance year-to-date beats the peer average by -744.5% The company's stock price performance over the past 12 months beats the peer average by -702.6% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 26.8% higher than the average peer.
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This week, the Dow Jones Industrial Average rose 2.8%, and the S&P 500 rose 2.4%. Trading Activity Trading volume this week was 82.0% higher than the 20-day average. Market Comparative Performance The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and lags it on a 5-year basis The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and lags it on a 5-year basis The company share price is the same as the performance of its peers in the Industrials industry sector , beats it on a 1-year basis, and lags it on a 5 year basis Per Group Comparative Performance The company's stock price performance year-to-date beats the peer average by -744.5% The company's stock price performance over the past 12 months beats the peer average by -702.6% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 26.8% higher than the average peer.
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Market Comparative Performance The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and lags it on a 5-year basis The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and lags it on a 5-year basis The company share price is the same as the performance of its peers in the Industrials industry sector , beats it on a 1-year basis, and lags it on a 5 year basis Per Group Comparative Performance The company's stock price performance year-to-date beats the peer average by -744.5% The company's stock price performance over the past 12 months beats the peer average by -702.6% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 26.8% higher than the average peer. This story was produced by the Kwhen Automated News Generator. 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 week, the Dow Jones Industrial Average rose 2.8%, and the S&P 500 rose 2.4%. Technical Indicators The Relative Strength Index (RSI) on the stock was above 70, indicating it may be overbought. Market Comparative Performance The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and lags it on a 5-year basis The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and lags it on a 5-year basis The company share price is the same as the performance of its peers in the Industrials industry sector , beats it on a 1-year basis, and lags it on a 5 year basis Per Group Comparative Performance The company's stock price performance year-to-date beats the peer average by -744.5% The company's stock price performance over the past 12 months beats the peer average by -702.6% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 26.8% higher than the average peer.
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85549628-b82c-4fdc-a4e7-79549ac82109
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711478.0
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2023-12-15 00:00:00 UTC
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Retail Sector Poised for Solid Rebound in 2024: 5 Winners
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DCOMP
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https://www.nasdaq.com/articles/retail-sector-poised-for-solid-rebound-in-2024%3A-5-winners
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The retail sector has struggled over the past year but has still tried to hold its ground amid inflationary pressures. This has seen retail sales growing at a slower pace. However, the picture looks rosy now, with inflation declining steadily and sales making a rebound.
The Commerce Department said on Dec 14 that retail sales totaled $705.7 billion, increasing an impressive 0.3% in November after unexpectedly declining 0.1% in October. This was also higher than economists’ expectations of a decline of 0.1%.
Leaving out autos, retail sales rose 0.2% in November. Excluding autos and gas, retail sales jumped 0.6%. Consumers have been spending aggressively, with the holiday season starting on a solid note.
Also, inflation has been steadily declining over the past year, thanks to the Federal Reserve’s aggressive monetary tightening campaign. The consumer price index (CPI) rose a meager 0.1% in November on a month-over-month basis, while on an annual basis, it increased 3.1%, slower than October’s jump of 3.2%.
Year over year, retail sales grew 4.1%, while sales were up 3.4% from September through November compared to the year-ago period, with e-commerce playing a major role once again.
Sales at bars and restaurants jumped 1.6%, while at sporting goods outlets rose 1.3%. Online retail sales grew 1% in November on a month-over-month basis.
The retail sector is trying to make a solid rebound and 2024 looks promising as the Federal Reserve has finally indicated ending its monetary tightening campaign after it left its benchmark policy rate unchanged in the current range of 5.25-5.50% after hiking interest rates by 525 basis points since March 2022.
Also, the Fed said that it doesn’t plan to keep interest rates higher for a longer time, which has raised optimism among investors that the first-rate cut could come in March. Also, the Fed plans at least three rate cuts next year, which bodes well for the retail sector.
Our Choices
Given the encouraging economic environment and increase in retail sales, it would be prudent for savvy investors to consider betting on retail stocks like American Eagle Outfitters, Inc. AEO, Amazon.com, Inc. AMZN, The Gap, Inc. GPS, Casey's General Stores, Inc. CASY and Expedia Group, Inc. EXPE that stand to benefit directly from these favorable conditions.Each of these stocks carries a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
American Eagle Outfitters, Inc. is a specialty retailer of casual apparel, accessories and footwear for men and women aged 15-25 years. AEO, along with its subsidiaries, engages in the designing and marketing of casual clothing. American Eagle Outfitters’ assortment includes jeans, cargo pants, graphic T-shirts as well as a range of accessories, outerwear and footwear.
American Eagle Outfitters’ expected earnings growth rate for the current year is 39.2%. The Zacks Consensus Estimate for current-year earnings has improved 4.7% over the past 60 days. AEO presently has a Zacks Rank #2.
Amazon.com, Inc. is one of the largest e-commerce providers, with sprawling operations in North America and across the globe. AMZN’s online retail business revolves around the Prime program, which is well supported by the company’s massive distribution network. Further, the Whole Foods Market acquisition helped Amazon establish its footprint in the physical grocery supermarket space.
Amazon.com’sexpected earnings growth rate for the current year is 276.1%. The Zacks Consensus Estimate for current-year earnings has improved 20.3% over the past 60 days. AMZN presently sports a Zacks Rank #1.
The Gap, Inc. is a premier international specialty retailer offering a diverse range of clothing, accessories and personal care products. GPS offers products for men, women and children under the Old Navy, Gap, Banana Republic, Athleta, Intermix and Hill City brands.
The Gap’sexpected earnings growth rate for the current year is 388%. The Zacks Consensus Estimate for current-year earnings has improved 64.3% over the past 60 days. GPS currently sports a Zacks Rank #1.
Casey's General Stores, Inc. operates convenience stores under the Casey's and Casey's General Store names in 16 Midwestern states, mainly Iowa, Missouri and Illinois. CASY also operates two stores under the name "Tobacco City," selling primarily tobacco and nicotine products, one liquor store and one grocery store.
Casey's General Stores’ expected earnings growth rate for next year is 6.2%. The Zacks Consensus Estimate for current-year earnings has improved 7.5% over the past 60 days. CASY presently sports a Zacks Rank #1.
Expedia Group, Inc. is an online travel company that empowers business and leisure travelers through technology with the tools & information they need to efficiently research, plan, book and experience travel. EXPE has travel brands including majority-owned subsidiaries that feature the world's broadest supply portfolio with more than a million online bookable vacation rental listings in many countries, over many airlines, packages, rental cars, cruises, destination services and activities.
Expedia’s expected earnings growth rate for next year is 41.8%. The Zacks Consensus Estimate for current-year earnings has improved 1.4% over the past 60 days. EXPE presently has a Zacks Rank #2.
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
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
American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report
Expedia Group, Inc. (EXPE) : Free Stock Analysis Report
The Gap, Inc. (GPS) : Free Stock Analysis Report
Casey's General Stores, Inc. (CASY) : 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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Our Choices Given the encouraging economic environment and increase in retail sales, it would be prudent for savvy investors to consider betting on retail stocks like American Eagle Outfitters, Inc. AEO, Amazon.com, Inc. AMZN, The Gap, Inc. GPS, Casey's General Stores, Inc. CASY and Expedia Group, Inc. EXPE that stand to benefit directly from these favorable conditions.Each of these stocks carries a Zacks Rank #1 (Strong Buy) or 2 (Buy). American Eagle Outfitters’ assortment includes jeans, cargo pants, graphic T-shirts as well as a range of accessories, outerwear and footwear. GPS offers products for men, women and children under the Old Navy, Gap, Banana Republic, Athleta, Intermix and Hill City brands.
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Our Choices Given the encouraging economic environment and increase in retail sales, it would be prudent for savvy investors to consider betting on retail stocks like American Eagle Outfitters, Inc. AEO, Amazon.com, Inc. AMZN, The Gap, Inc. GPS, Casey's General Stores, Inc. CASY and Expedia Group, Inc. EXPE that stand to benefit directly from these favorable conditions.Each of these stocks carries a Zacks Rank #1 (Strong Buy) or 2 (Buy). American Eagle Outfitters’ expected earnings growth rate for the current year is 39.2%. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report Expedia Group, Inc. (EXPE) : Free Stock Analysis Report The Gap, Inc. (GPS) : Free Stock Analysis Report Casey's General Stores, Inc. (CASY) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Year over year, retail sales grew 4.1%, while sales were up 3.4% from September through November compared to the year-ago period, with e-commerce playing a major role once again. Our Choices Given the encouraging economic environment and increase in retail sales, it would be prudent for savvy investors to consider betting on retail stocks like American Eagle Outfitters, Inc. AEO, Amazon.com, Inc. AMZN, The Gap, Inc. GPS, Casey's General Stores, Inc. CASY and Expedia Group, Inc. EXPE that stand to benefit directly from these favorable conditions.Each of these stocks carries a Zacks Rank #1 (Strong Buy) or 2 (Buy). Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report Expedia Group, Inc. (EXPE) : Free Stock Analysis Report The Gap, Inc. (GPS) : Free Stock Analysis Report Casey's General Stores, Inc. (CASY) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Our Choices Given the encouraging economic environment and increase in retail sales, it would be prudent for savvy investors to consider betting on retail stocks like American Eagle Outfitters, Inc. AEO, Amazon.com, Inc. AMZN, The Gap, Inc. GPS, Casey's General Stores, Inc. CASY and Expedia Group, Inc. EXPE that stand to benefit directly from these favorable conditions.Each of these stocks carries a Zacks Rank #1 (Strong Buy) or 2 (Buy). American Eagle Outfitters’ expected earnings growth rate for the current year is 39.2%. Casey's General Stores’ expected earnings growth rate for next year is 6.2%.
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4a845852-858a-42f1-b103-f535ead554d0
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711479.0
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2023-12-15 00:00:00 UTC
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EU investigates Musk's X in first DSA probe
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DCOMP
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https://www.nasdaq.com/articles/eu-investigates-musks-x-in-first-dsa-probe
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nan
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By Supantha Mukherjee
PARIS/STOCKHOLM, Dec 18 (Reuters) - The European Union is investigating social media company X, formerly known as Twitter, over a suspected breach of obligations in its first probe under the Digital Services Act (DSA), it said on Monday.
The DSA entered into force in November last year and requires very large online platforms and search engines to do more to tackle illegal content and risks to public security.
Following Hamas' attacks on Israel on Oct. 7, EU industry chief Thierry Breton sent letters to X, Meta META.O, TikTok and Alphabet GOOGL.O reminding them of their obligations under the DSA to tackle harmful and illegal content.
The platforms responded by highlighting steps they have taken to stop disinformation on their platforms but Musk challenged Breton over the disinformation charge.
X, owned by Elon Musk, is part of a group of large tech companies facing increased scrutiny under the DSA. Only X has so far received a formal request for information under the DSA.
X remains committed to complying with the DSA and is cooperating with the regulatory process, it said in a statement on Monday.
"It is important that this process remains free of political influence and follows the law," it said.
The probe will focus on countering the dissemination of illegal content in the EU, and the effectiveness of measures taken to combat information manipulation, including the "community notes" system, the Commission said.
Earlier this year X launched its "Community Notes" feature, which allows users to comment on posts to flag false or misleading content, in effect crowd-sourcing fact checking to users rather than a dedicated team of fact checkers.
The Commission does not consider the community notes system to be flawed but it is looking at the way it has been implemented, a senior official said.
"We are concerned whether it is effective as a mitigation measure," the person said.
The Commission said it will now carry out an in-depth investigation and by sending additional requests for information, conducting interviews and inspections, it said.
It will also review measures taken by X to increase transparency and a suspected deceptive design of the user interface such as checkmarks linked to subscription products, the so-called Blue checks, it said.
The Commission said a preliminary investigation conducted so far has included an analysis of a report submitted by X in September, X's transparency report published in November, and X's replies to a formal request for information about illegal content in connection to Hamas' attacks against Israel.
X did not immediately respond to Reuters requests for comment.
The DSA imposes new rules on content moderation, user privacy and transparency. Any firm found in breach faces a fine worth up to 6% of its global turnover.
(Reporting by Tassilo Hummel in Paris and Supantha Mukherjee in Stockholm; Editing by Hugh Lawson and Matt Scuffham)
((tassilo.hummel@thomsonreuters.com ; Twitter handle: @tassilo_hummel;))
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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By Supantha Mukherjee PARIS/STOCKHOLM, Dec 18 (Reuters) - The European Union is investigating social media company X, formerly known as Twitter, over a suspected breach of obligations in its first probe under the Digital Services Act (DSA), it said on Monday. The DSA entered into force in November last year and requires very large online platforms and search engines to do more to tackle illegal content and risks to public security. Following Hamas' attacks on Israel on Oct. 7, EU industry chief Thierry Breton sent letters to X, Meta META.O, TikTok and Alphabet GOOGL.O reminding them of their obligations under the DSA to tackle harmful and illegal content.
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The probe will focus on countering the dissemination of illegal content in the EU, and the effectiveness of measures taken to combat information manipulation, including the "community notes" system, the Commission said. Earlier this year X launched its "Community Notes" feature, which allows users to comment on posts to flag false or misleading content, in effect crowd-sourcing fact checking to users rather than a dedicated team of fact checkers. The Commission said a preliminary investigation conducted so far has included an analysis of a report submitted by X in September, X's transparency report published in November, and X's replies to a formal request for information about illegal content in connection to Hamas' attacks against Israel.
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The probe will focus on countering the dissemination of illegal content in the EU, and the effectiveness of measures taken to combat information manipulation, including the "community notes" system, the Commission said. Earlier this year X launched its "Community Notes" feature, which allows users to comment on posts to flag false or misleading content, in effect crowd-sourcing fact checking to users rather than a dedicated team of fact checkers. The Commission said a preliminary investigation conducted so far has included an analysis of a report submitted by X in September, X's transparency report published in November, and X's replies to a formal request for information about illegal content in connection to Hamas' attacks against Israel.
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Only X has so far received a formal request for information under the DSA. The probe will focus on countering the dissemination of illegal content in the EU, and the effectiveness of measures taken to combat information manipulation, including the "community notes" system, the Commission said. The Commission said a preliminary investigation conducted so far has included an analysis of a report submitted by X in September, X's transparency report published in November, and X's replies to a formal request for information about illegal content in connection to Hamas' attacks against Israel.
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951a1894-280d-44f7-839f-661689180ad8
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711480.0
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2023-12-15 00:00:00 UTC
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Pre-Market Most Active for Dec 18, 2023 : NIO, X, ARQT, CNHI, GOTU, SQQQ, TQQQ, TSLA, EBIX, VOD, CLF, ZIM
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DCOMP
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https://www.nasdaq.com/articles/pre-market-most-active-for-dec-18-2023-%3A-nio-x-arqt-cnhi-gotu-sqqq-tqqq-tsla-ebix-vod-clf
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The NASDAQ 100 Pre-Market Indicator is up 5.92 to 16,629.37. The total Pre-Market volume is currently 50,840,748 shares traded.
The following are the most active stocks for the pre-market session:
NIO Inc. (NIO) is +0.72 at $8.70, with 11,608,982 shares traded. NIO's current last sale is 83.65% of the target price of $10.4.
United States Steel Corporation (X) is +11.27 at $50.60, with 8,847,350 shares traded., following a 52-week high recorded in prior regular session.
Arcutis Biotherapeutics, Inc. (ARQT) is +0.74 at $3.18, with 8,086,768 shares traded. ARQT's current last sale is 35.33% of the target price of $9.
CNH Industrial N.V. (CNHI) is -0.01 at $11.47, with 3,395,069 shares traded. CNHI's current last sale is 75.91% of the target price of $15.11.
Gaotu Techedu Inc. (GOTU) is -1.07 at $3.56, with 3,004,839 shares traded. GOTU's current last sale is 154.78% of the target price of $2.3.
ProShares UltraPro Short QQQ (SQQQ) is -0.07 at $14.18, with 2,756,780 shares traded. This represents a .78% increase from its 52 Week Low.
ProShares UltraPro QQQ (TQQQ) is +0.2199 at $49.46, with 1,180,973 shares traded. This represents a 207.2% increase from its 52 Week Low.
Tesla, Inc. (TSLA) is +0.71 at $254.21, with 924,434 shares traded. TSLA's current last sale is 101.68% of the target price of $250.
Ebix, Inc. (EBIX) is -2.24 at $2.69, with 897,523 shares traded. EBIX's current last sale is 5.38% of the target price of $50.
Vodafone Group Plc (VOD) is +0.52 at $8.69, with 885,823 shares traded. VOD's current last sale is 60.24% of the target price of $14.425.
Cleveland-Cliffs Inc. (CLF) is +1.55 at $20.25, with 734,632 shares traded. CLF's current last sale is 95.29% of the target price of $21.25.
ZIM Integrated Shipping Services Ltd. (ZIM) is +0.39 at $10.03, with 718,619 shares traded. ZIM's current last sale is 159.21% of the target price of $6.3.
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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United States Steel Corporation (X) is +11.27 at $50.60, with 8,847,350 shares traded., following a 52-week high recorded in prior regular session. ProShares UltraPro Short QQQ (SQQQ) is -0.07 at $14.18, with 2,756,780 shares traded. ProShares UltraPro QQQ (TQQQ) is +0.2199 at $49.46, with 1,180,973 shares traded.
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NIO's current last sale is 83.65% of the target price of $10.4. ARQT's current last sale is 35.33% of the target price of $9. ProShares UltraPro QQQ (TQQQ) is +0.2199 at $49.46, with 1,180,973 shares traded.
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The total Pre-Market volume is currently 50,840,748 shares traded. NIO Inc. (NIO) is +0.72 at $8.70, with 11,608,982 shares traded. Ebix, Inc. (EBIX) is -2.24 at $2.69, with 897,523 shares traded.
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NIO's current last sale is 83.65% of the target price of $10.4. CNHI's current last sale is 75.91% of the target price of $15.11. GOTU's current last sale is 154.78% of the target price of $2.3.
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59c7af9f-bd98-4523-9f9d-9d9d2e10e11d
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711481.0
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2023-12-15 00:00:00 UTC
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Golden Goose IPO to raise about $1.1 bln, sources say
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https://www.nasdaq.com/articles/golden-goose-ipo-to-raise-about-%241.1-bln-sources-say
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By Pablo Mayo Cerqueiro and Elisa Anzolin
LONDON/MILAN, Dec 18 (Reuters) - Luxury fashion group Golden Goose plans is looking to raise about 1 billion euros ($1.1 billion) from an initial public offering (IPO) in Milan, three people close to the matter told Reuters.
The company's majority owner, buyout group Permira, has enlisted seven banks to underwrite what is set to be one of Europe's biggest IPOs next year, the sources said.
Permira and Golden Goose declined to comment.
Reuters this month reported that Permira had appointed Bank of America BAC.N, JPMorgan JPM.N, Mediobanca MDBI.MI and UBS UBSG.S as global coordinators for the IPO.
It has also enlisted BNP Paribas BNPP.PA, Citigroup C.N and UniCredit CRDI.MI as joint bookrunners to assist on the deal, the sources added.
An IPO would breathe new life into Europe's capital markets after rising interest rates and the war in Ukraine all but froze listing activity.
Romania's Hidroelectrica was the region's biggest deal this year with about $2 billion in proceeds. Next was Schott Pharma in Germany at 935 million euros including shares placed under an overallotment option.
Golden Goose, known for worn-looking sneakers that sell for hundreds of euros, last year posted a 30% revenue jump to about 501 million euros.
The Italian group's plans mirror moves by other fashion companies in recent months.
Spanish fashion retailer Tendam, backed by CVC and PAI Partners, recently appointed banks to manage a potential listing in Madrid.
German sandal maker Birkenstock made its New York Stock Exchange debut in October. After the shares initially dropped below the IPO price, they have since climbed into positive territory.
($1 = 0.9155 euros)
(Reporting by Pablo Mayo Cerqueiro in London and Elisa Anzolin in Milan Editing by Anousha Sakoui and David Goodman)
((Pablo.MayoCerqueiro@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The company's majority owner, buyout group Permira, has enlisted seven banks to underwrite what is set to be one of Europe's biggest IPOs next year, the sources said. An IPO would breathe new life into Europe's capital markets after rising interest rates and the war in Ukraine all but froze listing activity. Spanish fashion retailer Tendam, backed by CVC and PAI Partners, recently appointed banks to manage a potential listing in Madrid.
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By Pablo Mayo Cerqueiro and Elisa Anzolin LONDON/MILAN, Dec 18 (Reuters) - Luxury fashion group Golden Goose plans is looking to raise about 1 billion euros ($1.1 billion) from an initial public offering (IPO) in Milan, three people close to the matter told Reuters. Reuters this month reported that Permira had appointed Bank of America BAC.N, JPMorgan JPM.N, Mediobanca MDBI.MI and UBS UBSG.S as global coordinators for the IPO. ($1 = 0.9155 euros) (Reporting by Pablo Mayo Cerqueiro in London and Elisa Anzolin in Milan Editing by Anousha Sakoui and David Goodman) ((Pablo.MayoCerqueiro@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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By Pablo Mayo Cerqueiro and Elisa Anzolin LONDON/MILAN, Dec 18 (Reuters) - Luxury fashion group Golden Goose plans is looking to raise about 1 billion euros ($1.1 billion) from an initial public offering (IPO) in Milan, three people close to the matter told Reuters. The company's majority owner, buyout group Permira, has enlisted seven banks to underwrite what is set to be one of Europe's biggest IPOs next year, the sources said. Golden Goose, known for worn-looking sneakers that sell for hundreds of euros, last year posted a 30% revenue jump to about 501 million euros.
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By Pablo Mayo Cerqueiro and Elisa Anzolin LONDON/MILAN, Dec 18 (Reuters) - Luxury fashion group Golden Goose plans is looking to raise about 1 billion euros ($1.1 billion) from an initial public offering (IPO) in Milan, three people close to the matter told Reuters. The company's majority owner, buyout group Permira, has enlisted seven banks to underwrite what is set to be one of Europe's biggest IPOs next year, the sources said. Golden Goose, known for worn-looking sneakers that sell for hundreds of euros, last year posted a 30% revenue jump to about 501 million euros.
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007303c5-c7c8-4d6d-93e0-befc9e42aeca
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711482.0
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2023-12-15 00:00:00 UTC
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Permian Oil Drilling Rig Count Rises in 5 of Prior 11 Weeks
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https://www.nasdaq.com/articles/permian-oil-drilling-rig-count-rises-in-5-of-prior-11-weeks
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In its weekly release, Baker Hughes Company BKR stated that the U.S. rig count was lower than the prior week’s figure. The rotary rig count, issued by BKR, is usually published in major newspapers and trade publications.
Baker Hughes’ data, issued at the end of every week since 1944, helps energy service providers gauge the overall business environment of the oil and gas industry. The number of active rigs and its comparison with the week-ago figure indicates the demand trajectory for the company’s oilfield services from exploration and production companies.
Rig Count Data in Detail
Total U.S. Rig Count Falls: The number of rigs engaged in the exploration and production of oil and natural gas in the United States was 623 in the week ended Dec 15. The figure is lower than theweek-ago count of 626. The figure decreased after increasing for four straight weeks. Many analysts believe that there has been a slowdown in drilling activities since shale producers are getting more efficient, requiring fewer rigs, while some doubt whether certain producers have enough prospective land to drill. The current national rig count is also lower than the year-ago level of 776.
Onshore rigs in the week that ended on Dec 15 totaled 604, lower than the prior week's count of 605. In offshore resources, 19 rigs were operating, lower than a week-ago count of 21.
U.S. Oil Rig Count Declines: The oil rig count was 501 in the week ended Dec 15, lower than the week-ago figure of 503. The current number of oil rigs — far from the peak of 1,609 attained in October 2014 — is also down from the year-ago figure of 620.
U.S. Natural Gas Rig Count Flat: The natural gas rig count of 119 is in line with the week-ago figure. The count of rigs exploring the commodity is, however, below the year-ago week’s 154. Per the latest report, the number of natural gas-directed rigs is almost 93% lower than the all-time high of 1,606 recorded in 2008.
Rig Count by Type: The number of vertical drilling rigs totaled 14 units, lower than the week-ago count of 15. The horizontal/directional rig count (encompassing new drilling technology with the ability to drill and extract gas from dense rock formations, also known as shale formations) of 609 is lower than the prior-week level of 611.
Rig Count in the Most Prolific Basin
Permian — the most prolific basin in the United States — recorded a weekly oil rig count of 306, lower than a week-ago figure of 309. The number increased in five of the prior 11 weeks.
Outlook
The West Texas Intermediate crude price is hovering around the $70-per-barrel mark. Although the commodity pricing scenario is favorable for exploration and production operations, there has been a slowdown in drilling activities, which may continue as upstream players are prioritizing stockholder returns rather than boosting output.
Despite anticipating higher daily crude production in the oil-rich Permian this month than in November, the combined production from all prolific resources, including Anadarko, Appalachia, Bakken, Eagle Ford, Haynesville, Niobrara and Permian, is expected to be slightly lower in December than in the prior month, per the U.S. Energy Information Administration. This further confirms a slowdown in drilling activities.
In light of short-term uncertainties, investors seeking medium to long-term gains may keep an eye on energy stocks such as EOG Resources EOG and Matador Resources Company MTDR.
EOG Resources, currently carrying a Zacks Rank #2 (Buy), is a leading oil and natural gas exploration and production company. It is well-placed to capitalize on the promising business scenario. It has many undrilled premium locations, resulting in a brightened production outlook. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
EOG Resources is strongly committed to returning capital to shareholders. Since transitioning to premium drilling, the company has returned a handsome amount of cash to stockholders. With the employment of premium drilling, EOG can reduce its cash operating costs per barrel of oil equivalent, aiding its bottom line.
Matador Resources has a strong presence in the oil-rich core acres of the Wolfcamp and Bone Spring plays in the Delaware Basin. Promising oil price is likely to aid it in increasing production volumes. Matador acquired Advance Energy Partners Holdings, LLC, which comprises several oil and natural gas-producing properties and undeveloped acreage. MTDR, carrying a Zacks Rank #3 (Hold), expects the buyout to be accretive to important valuation and financial metrics.
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
EOG Resources, Inc. (EOG) : Free Stock Analysis Report
Baker Hughes Company (BKR) : Free Stock Analysis Report
Matador Resources Company (MTDR) : 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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Baker Hughes’ data, issued at the end of every week since 1944, helps energy service providers gauge the overall business environment of the oil and gas industry. Although the commodity pricing scenario is favorable for exploration and production operations, there has been a slowdown in drilling activities, which may continue as upstream players are prioritizing stockholder returns rather than boosting output. Matador acquired Advance Energy Partners Holdings, LLC, which comprises several oil and natural gas-producing properties and undeveloped acreage.
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Rig Count Data in Detail Total U.S. Rig Count Falls: The number of rigs engaged in the exploration and production of oil and natural gas in the United States was 623 in the week ended Dec 15. Rig Count in the Most Prolific Basin Permian — the most prolific basin in the United States — recorded a weekly oil rig count of 306, lower than a week-ago figure of 309. Click to get this free report EOG Resources, Inc. (EOG) : Free Stock Analysis Report Baker Hughes Company (BKR) : Free Stock Analysis Report Matador Resources Company (MTDR) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Rig Count Data in Detail Total U.S. Rig Count Falls: The number of rigs engaged in the exploration and production of oil and natural gas in the United States was 623 in the week ended Dec 15. U.S. Oil Rig Count Declines: The oil rig count was 501 in the week ended Dec 15, lower than the week-ago figure of 503. Click to get this free report EOG Resources, Inc. (EOG) : Free Stock Analysis Report Baker Hughes Company (BKR) : Free Stock Analysis Report Matador Resources Company (MTDR) : Free Stock Analysis Report To read this article on Zacks.com click here.
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In its weekly release, Baker Hughes Company BKR stated that the U.S. rig count was lower than the prior week’s figure. Rig Count in the Most Prolific Basin Permian — the most prolific basin in the United States — recorded a weekly oil rig count of 306, lower than a week-ago figure of 309. EOG Resources, currently carrying a Zacks Rank #2 (Buy), is a leading oil and natural gas exploration and production company.
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2023-12-15 00:00:00 UTC
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November Sales Lift Retailers' Holiday Spirit: 4 Picks for You
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https://www.nasdaq.com/articles/november-sales-lift-retailers-holiday-spirit%3A-4-picks-for-you
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U.S. retailers are celebrating a robust rebound in November sales, setting a positive tone for the holiday shopping period. The latest data from the Commerce Department reveals a 0.3% increase in retail sales, totaling $705.7 billion. This defies analysts' expectations of a 0.1% decline and follows a revised 0.2% contraction in October. Despite ongoing challenges, such as inflation, higher borrowing costs and geopolitical tensions, Americans have showcased resilience.
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 National Retail Federation (“NRF”) is optimistic about the holiday season, projecting a 3% to 4% increase in sales for the November-December period. NRF anticipates sales between $957.3 billion and $966.6 billion, excluding autos, gas and restaurants. This reflects the industry's optimism about consumer spending during the festive period.
The unexpected surge in November retail sales aligns with the strategic efforts of retailers who have been enticing customers with discounts. Lower gasoline prices have added fuel to this momentum, freeing up additional funds for consumers to allocate to their holiday shopping endeavors. Excluding gasoline stations, retail sales grew 0.6%.
A Peek Into November Sales Numbers
The Commerce Department's latest report unveils a myriad of trends in retail sales. Motor vehicle & parts dealers experienced a 0.5% increase in sales on a sequential basis. Health & personal care stores saw a notable uptick of 0.9%, and food services & drinking places recorded a substantial 1.6% increase. Clothing & clothing accessories outlets also experienced a surge of 0.6%.
Meanwhile, sporting goods, hobbies, musical instruments & bookstores witnessed robust sales growth of 1.3%. Furniture & home furnishing stores reported a commendable 0.9% rise in sales, while food & beverage stores saw modest growth of 0.2%. Non-store retailers stood out with a noteworthy 1% increase in sales.
On the flip side, the outlook was less optimistic for building material & supplies dealers, where sales dipped by 0.4%. Electronics & appliance stores reported a notable drop of 1.1%. Gasoline stations witnessed a more pronounced decline of 2.9% in receipts. Miscellaneous stores and general merchandise stores registered a decrease of 2% and 0.2% in sales, respectively.
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. You can see the complete list of today’s Zacks #1 Rank stocks here.
Investors can count on Brinker International, Inc. EAT, one of the world's leading casual dining restaurant companies. Brinker International is unwavering in its commitment to enhancing customer engagement and boosting revenues through various sales-boosting strategies. These include optimizing the menu and fostering innovation, reinforcing its value proposition, improving food presentation, implementing effective advertising campaigns, optimizing kitchen systems and introducing an enhanced service platform.
The Zacks Consensus Estimate for Brinker International's current financial-year sales and earnings suggests growth of 5.1% and 26.2%, respectively, from the year-ago reported figure. EAT, which sports a Zacks Rank #1, has a trailing four-quarter earnings surprise of 223.6%, on average.
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 sports a Zacks Rank #1.
American Eagle Outfitters, Inc. AEO is worth betting on. The company’s efforts to rationalize inventory and contain costs are paying off. The strong performance of key brands like American Eagle and Aerie, coupled with expansions into premium and activewear segments, indicates potential for growth. Its store designs and online enhancements demonstrate a commitment to improving the customer experience.
The Zacks Consensus Estimate for American Eagle Outfitters’ current fiscal sales and EPS suggests growth of 4% and 39.2%, respectively, from the year-ago reported figure. AEO, which carries a Zacks Rank #2 (Buy), delivered a trailing four-quarter earnings surprise of 23%, on average.
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
Be First to New Top 10 Stocks >>
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
American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis 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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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. 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.
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The Zacks Consensus Estimate for Brinker International's current financial-year sales and earnings suggests growth of 5.1% and 26.2%, respectively, from the year-ago reported figure. The Zacks Consensus Estimate for American Eagle Outfitters’ current fiscal sales and EPS suggests growth of 4% and 39.2%, respectively, from the year-ago reported figure. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Abercrombie & Fitch Company (ANF) : Free Stock Analysis Report American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report Brinker International, Inc. (EAT) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The Zacks Consensus Estimate for Brinker International's current financial-year sales and earnings suggests growth of 5.1% and 26.2%, respectively, from the year-ago reported figure. The Zacks Consensus Estimate for American Eagle Outfitters’ current fiscal sales and EPS suggests growth of 4% and 39.2%, respectively, from the year-ago reported figure. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Abercrombie & Fitch Company (ANF) : Free Stock Analysis Report American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report Brinker International, Inc. (EAT) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The Zacks Consensus Estimate for Brinker International's current financial-year sales and earnings suggests growth of 5.1% and 26.2%, respectively, from the year-ago reported figure. The stock sports a Zacks Rank #1. Be First to New Top 10 Stocks >> Want the latest recommendations from Zacks Investment Research?
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711484.0
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2023-12-15 00:00:00 UTC
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Take the Zacks Approach to Beat the Market: Shopify, Fastenal, Block in Focus
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https://www.nasdaq.com/articles/take-the-zacks-approach-to-beat-the-market%3A-shopify-fastenal-block-in-focus
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All of the three widely followed indexes closed a seventh straight winning week. The Dow Jones Industrial Average, the tech-heavy Nasdaq Composite and the S&P 500 jumped 2.9%, 2.8% and 2.5%, respectively.
During the week, investor mood remained upbeat upon the conclusion of the Fed December meeting, where it signaled that interest rates may have already peaked and rate cuts were to be expected in 2024. Inflation indicators also suggested that the tight monetary policy employed by the central bank was taking effect, with headline PPI remaining flat and CPI coming in way below expectations. Treasury yields fell, hovering around the 4% mark, down from their October peak of above 5%.
The Fed currently expects interest rates to be 4.6% by the end of 2024, down from the 5.1% it had projected earlier. On cue, market participants are expecting rate cuts as early as March 2024.
Regardless of market conditions, we, here at Zacks, provide investors with unbiased guidance on how to beat the market.
As usual, Zacks Research guided investors over the past three months with its time-tested methodologies. Given the prevailing market uncertainty, you may want to look at our feats to prepare better for your next action.
Here are some of our key achievements:
Block and FB Financial Surge Following Zacks Rank Upgrade
Shares of Block, Inc. SQ have gained 68% (versus the S&P 500’s 9.5% increase) since it was upgraded to a Zacks Rank #2 (Buy) on October 20.
Another stock, FB Financial Corporation FBK, which was upgraded to a Zacks Rank #2 on October 19, has returned 34.2% (versus the S&P 500’s 8.6% increase) since then.
Zacks Rank, our short-term rating system, has earnings estimate revisions at its core. Empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
A hypothetical portfolio of Zacks Rank #1 (Strong Buy) stocks returned +12.02% this year (through September 4th) vs. +18.2% for the S&P 500 index and +7.6% for the equal-weight S&P 500 index. The portfolio of Zacks Rank #1 stocks is an equal-weight portfolio, while the S&P 500 index is a market-cap-weighted index that has been notably distorted by the strong recent performance of mega-cap stocks.
We are not trying to cherry-pick here. But since this Zacks Model portfolio, consisting of Zacks Rank #1 stocks, is an equal-weight portfolio, the equal-weight S&P 500 index is the appropriate benchmark for comparison. Looked at this way, this portfolio has outperformed the index this year.
The Zacks Model Portfolio - consisting of Zacks Rank #1 stocks – has outperformed the S&P index by more than 13 percentage points since 1988 (Through September 4th, 2023, the Zacks # 1 Rank stocks has generated an annualized return of +24.17% since 1988 vs. +10.82% for the S&P 500 index).You can see the complete list of today’s Zacks Rank #1 stocks here >>>
Check Block’s historical EPS and Sales here>>>
Check FB Financial’s historical EPS and Sales here>>>
Image Source: Zacks Investment Research
Zacks Recommendation Upgrades Manitex and GoDaddy Higher
Shares of Manitex International, Inc. MNTX and GoDaddy Inc. GDDY have advanced 57.7% (versus the S&P 500’s 8.3% rise) and 38.8% (versus the S&P 500’s 7.2% rise) since their Zacks Recommendation was upgraded to Outperform on October 16 and October 17, respectively.
While the Zacks Rank is our short-term rating system that is most effective over the one- to three-month holding horizon, the Zacks Recommendation aims to predict performance over the next 6 to 12 months. However, just like the Zacks Rank, the foundation for the Zacks Recommendation is trends in earnings estimate revisions.
The Zacks Recommendation classifies stocks into three groups — Outperform, Neutral and Underperform. While these recommendations are determined quantitatively, our analysts have the flexibility to override them for the 1100+ stocks they closely follow based on their better judgment of factors such as valuation, industry conditions and management effectiveness than the quantitative model.
To access our research reports with Zacks Recommendations for the 1100+ stocks we cover, click here>>>
Zacks Focus List Stocks Shopify, Uber Shoot Up
Shares of Shopify Inc. SHOP, which belongs to the Zacks Focus List, have gained 44.7% over the past 12 weeks. The stock was added to the Focus List on September 6, 2022. Another Focus-List holding, Uber Technologies, Inc. UBER, which was added to the portfolio on August 16, 2019, has returned 39.3% over the past 12 weeks. The S&P 500 has advanced 9% over this period.
The 50-stock Zacks Focus List model portfolio returned +22.3% in 2023 (through July 31st) vs. +20.6% for the S&P 500 index and +10.5% for the equal-weight S&P 500 index. In 2022, the portfolio produced -15.2% vs. the S&P 500 index’s -17.96%.
Since 2004, the Focus List portfolio has produced an annualized return of +11.27% through July 31st, 2023. This compares to a +9.65% annualized return for the S&P 500 index in the same time period.
On a rolling one-, three- and five-year bases, the Zacks Focus List returned +21.76%, +16.33%, and +12.54% vs. +12.99%, +13.71% and +12.19% for the S&P 500 index, respectively.
Unlock all of our powerful research, tools and analysis, including the Focus List, Zacks #1 Rank List, Equity Research Reports, Zacks Earnings ESP Filter, Premium Screener and more, as part of Zacks Premium. Gain full access now >>
Zacks ECAP Stocks Fair Isaac and Intuit Make Significant Gains
Fair Isaac Corporation FICO, a component of our Earnings Certain Admiral Portfolio (ECAP), has jumped 27% over the past 12 weeks. Intuit Inc. INTU has followed Fair Isaac with 19.7% returns.
ECAP, which consists of 30 concentrated, ultra-defensive, long-term Buy-and-Hold stocks, has returned +6.67% in 2023 (through June 30) versus +16.90% for the S&P 500 Index. The portfolio returned -4.7% in 2022 versus the S&P 500 Index’s -17.96%.
With little to no turnover and annual rebalance periodicity, the ECAP seeks to minimize capital loss by holding shares of companies whose earnings streams exhibit a proven 20+ year track record of surviving recessionary periods with minimal impact on aggregate earnings growth relative to the overall S&P 500.
The ECAP and many other model portfolios are available as part of Zacks Advisor Tools, a cloud-based solution to access Zacks award-winning stock, mutual fund and ETF research. Click here to schedule a demo.
Zacks ECDP Stocks American Tower and Fastenal Outperform Peers
American Tower Corporation AMT, which is part of our Earnings Certain Dividend Portfolio (ECDP), has returned 27.6% over the past 12 weeks. Another ECDP stock, Fastenal Company FAST, has climbed 18.4% over the same time frame. Of course, the inclination of investors toward quality dividend stocks to secure an income stream amid heightened market volatility contributed to this performance.
Check American Tower’s dividend history here>>>
Check Fastenal’s dividend history here>>>
With an extremely low Beta and a history of minimum earnings variability over the last 20+ years, this 25-stock portfolio helps significantly mitigate risk.
ECDP has returned +0.18% in 2023 (through June 30) versus +16.90% for the S&P 500 Index. The portfolio returned -2.3% in 2022 versus -17.96% for the S&P 500 Index and -8.34% for the ProShares S&P 500 Dividend Aristocrats ETF NOBL.
Click here to access this portfolio on Zacks Advisor Tools.
Zacks Top 10 Stocks — Celsius Delivers Solid Returns
Celsius Holdings, Inc. CELH, from the Zacks Top 10 Stocks for 2023, has surged 43.3% year to date, which compares to a 24.8% gain for the S&P 500 Index.
The portfolio returned +16.16% through the end of July 2023 vs. +20.64% for the S&P 500 index and +10.73% for the equal-weighted version of the index. The portfolio returned -15.8% in 2022 vs. -18.1% for the S&P 500 index. Since 2012, the Top 10 portfolio has generated an annualized return of +22.78% vs. +13.65% for the S&P 500 index.
Since the start of 2012 through July 31, 2023, the Zacks Top 10 Stocks have produced a cumulative return of +977.47% vs. +340.35% cumulative return for the S&P 500 index.
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
American Tower Corporation (AMT) : Free Stock Analysis Report
Fastenal Company (FAST) : Free Stock Analysis Report
Intuit Inc. (INTU) : Free Stock Analysis Report
Manitex International, Inc. (MNTX) : Free Stock Analysis Report
Fair Isaac Corporation (FICO) : Free Stock Analysis Report
GoDaddy Inc. (GDDY) : Free Stock Analysis Report
Shopify Inc. (SHOP) : Free Stock Analysis Report
Block, Inc. (SQ) : Free Stock Analysis Report
ProShares S&P 500 Dividend Aristocrats ETF (NOBL): ETF Research Reports
FB Financial Corporation (FBK) : Free Stock Analysis Report
Celsius Holdings Inc. (CELH) : Free Stock Analysis Report
Uber Technologies, Inc. (UBER) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Inflation indicators also suggested that the tight monetary policy employed by the central bank was taking effect, with headline PPI remaining flat and CPI coming in way below expectations. Empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Of course, the inclination of investors toward quality dividend stocks to secure an income stream amid heightened market volatility contributed to this performance.
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Image Source: Zacks Investment Research Zacks Recommendation Upgrades Manitex and GoDaddy Higher Shares of Manitex International, Inc. MNTX and GoDaddy Inc. GDDY have advanced 57.7% (versus the S&P 500’s 8.3% rise) and 38.8% (versus the S&P 500’s 7.2% rise) since their Zacks Recommendation was upgraded to Outperform on October 16 and October 17, respectively. Zacks ECDP Stocks American Tower and Fastenal Outperform Peers American Tower Corporation AMT, which is part of our Earnings Certain Dividend Portfolio (ECDP), has returned 27.6% over the past 12 weeks. Click to get this free report American Tower Corporation (AMT) : Free Stock Analysis Report Fastenal Company (FAST) : Free Stock Analysis Report Intuit Inc. (INTU) : Free Stock Analysis Report Manitex International, Inc. (MNTX) : Free Stock Analysis Report Fair Isaac Corporation (FICO) : Free Stock Analysis Report GoDaddy Inc. (GDDY) : Free Stock Analysis Report Shopify Inc. (SHOP) : Free Stock Analysis Report Block, Inc. (SQ) : Free Stock Analysis Report ProShares S&P 500 Dividend Aristocrats ETF (NOBL): ETF Research Reports FB Financial Corporation (FBK) : Free Stock Analysis Report Celsius Holdings Inc. (CELH) : Free Stock Analysis Report Uber Technologies, Inc. (UBER) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The Zacks Model Portfolio - consisting of Zacks Rank #1 stocks – has outperformed the S&P index by more than 13 percentage points since 1988 (Through September 4th, 2023, the Zacks # 1 Rank stocks has generated an annualized return of +24.17% since 1988 vs. +10.82% for the S&P 500 index).You can see the complete list of today’s Zacks Rank #1 stocks here >>> Check Block’s historical EPS and Sales here>>> Check FB Financial’s historical EPS and Sales here>>> To access our research reports with Zacks Recommendations for the 1100+ stocks we cover, click here>>> Zacks Focus List Stocks Shopify, Uber Shoot Up Shares of Shopify Inc. SHOP, which belongs to the Zacks Focus List, have gained 44.7% over the past 12 weeks. Click to get this free report American Tower Corporation (AMT) : Free Stock Analysis Report Fastenal Company (FAST) : Free Stock Analysis Report Intuit Inc. (INTU) : Free Stock Analysis Report Manitex International, Inc. (MNTX) : Free Stock Analysis Report Fair Isaac Corporation (FICO) : Free Stock Analysis Report GoDaddy Inc. (GDDY) : Free Stock Analysis Report Shopify Inc. (SHOP) : Free Stock Analysis Report Block, Inc. (SQ) : Free Stock Analysis Report ProShares S&P 500 Dividend Aristocrats ETF (NOBL): ETF Research Reports FB Financial Corporation (FBK) : Free Stock Analysis Report Celsius Holdings Inc. (CELH) : Free Stock Analysis Report Uber Technologies, Inc. (UBER) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The Zacks Model Portfolio - consisting of Zacks Rank #1 stocks – has outperformed the S&P index by more than 13 percentage points since 1988 (Through September 4th, 2023, the Zacks # 1 Rank stocks has generated an annualized return of +24.17% since 1988 vs. +10.82% for the S&P 500 index).You can see the complete list of today’s Zacks Rank #1 stocks here >>> Check Block’s historical EPS and Sales here>>> Check FB Financial’s historical EPS and Sales here>>> The portfolio returned -4.7% in 2022 versus the S&P 500 Index’s -17.96%. The portfolio returned -15.8% in 2022 vs. -18.1% for the S&P 500 index.
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2023-12-15 00:00:00 UTC
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The 3 Most Undervalued Lithium Stocks to Buy in December
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https://www.nasdaq.com/articles/the-3-most-undervalued-lithium-stocks-to-buy-in-december
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Lithium stocks continue to look particularly intriguing at the moment. Their prices remain low, mainly due to weak demand from China, the world’s largest electric vehicle market. However, the long-term outlook continues to be strong for electric vehicles and the lithium used to produce EV batteries.
Lithium prices are again approaching their pre-pandemic levels, which suggests that now may be a good time to establish a position. There are many undervalued lithium stocks to consider, but I suggest you stick with the biggest names as they tend to be more stable. All of the shares below have the potential to produce at least 50% returns in 2024.
Lithium Stocks to Buy: Lithium Americas (LAC)
Source: Wirestock Creators / Shutterstock.com
Lithium Americas (NYSE:LAC) owns the rights to what may become, in time, one of the most important lithium mines on the planet. The company continues developing Thacker Pass, the second-largest lithium deposit globally.
The mine is located in Nevada, and the company recently separated its operations to isolate the mine for its massive potential. Investors willing to take the risk should consider buying Lithium Americas stock in November or anytime after that. The analysts covering the stock agree that it has massive potential, but the investment remains a bet. What is that bet? Basically, it’s that demand for EVs persists.
Lithium is going to be necessary for current-generation batteries and future solid-state batteries as well. So there’s little to worry about on that front. It’s not that lithium isn’t going to become obsolete. Neither are electric vehicles. They’ve already reached a critical mass based on sales volume. Furthermore, governments are subsidizing their development. The only problem with Lithium Americas is that it won’t begin producing lithium until 2026.
Piedmont Lithium (PLL)
Source: T. Schneider / Shutterstock.com
Piedmont Lithium (NASDAQ:PLL) stock is headed very quickly in the right direction and makes a lot of sense now. Like all other lithium firms on this and across the industry, it has been directly affected by declining spot prices for the soft metal in 2023.
A year ago, Piedmont Lithium produced no lithium at all. Fast forward a year, and the company ended up producing more than 29,011 dry tons of lithium in the quarter. Most of the sales the company is currently making are being made on the spot market, which, as mentioned, has declined drastically. The company also agreed to sell lithium earlier in the year at contracts with higher prices.
So there’s a lot to look forward to for the company. First of all, lithium prices are expected to increase since the commodity tends to go up and down and is currently down. Perhaps most importantly, Piedmont Lithium operates the largest lithium mine currently operational in North America.
Albemarle (ALB)
Source: IgorGolovniov/Shutterstock.com
Albemarle (NYSE:ALB) will always be worth a look when lithium prices fall. It’s the biggest lithium stock there is and has established a very strong position in what is still a very young industry.
Its shares haven’t been this cheap since the early stages of the pandemic. However, they continue to head in the right direction and have recently shown signs of positive momentum in early December.
The argument in favor of Albemarle is much more than that it is inexpensive at the moment and expected to rise by more than 50% moving. The argument really centers on Albemarle’s dominant position and expectations regarding supply and demand moving forward. Albemarle is the largest lithium producer globally. The company anticipates that demand will exceed production by many hundreds of thousands of tons by the year 2030. That clearly sets up a situation in which prices can continue to rise dramatically over the next few years. Thus, I believe this is one of the top lithium stocks to buy.
On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks. Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.
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The post The 3 Most Undervalued Lithium Stocks to Buy in December 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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Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing. More From InvestorPlace ChatGPT IPO Could Shock the World, Make This Move Before the Announcement Musk’s “Project Omega” May Be Set to Mint New Millionaires. The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors The post The 3 Most Undervalued Lithium Stocks to Buy in December appeared first on InvestorPlace.
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Lithium Stocks to Buy: Lithium Americas (LAC) Source: Wirestock Creators / Shutterstock.com Lithium Americas (NYSE:LAC) owns the rights to what may become, in time, one of the most important lithium mines on the planet. Piedmont Lithium (PLL) Source: T. Schneider / Shutterstock.com Piedmont Lithium (NASDAQ:PLL) stock is headed very quickly in the right direction and makes a lot of sense now. Perhaps most importantly, Piedmont Lithium operates the largest lithium mine currently operational in North America.
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Lithium Stocks to Buy: Lithium Americas (LAC) Source: Wirestock Creators / Shutterstock.com Lithium Americas (NYSE:LAC) owns the rights to what may become, in time, one of the most important lithium mines on the planet. Piedmont Lithium (PLL) Source: T. Schneider / Shutterstock.com Piedmont Lithium (NASDAQ:PLL) stock is headed very quickly in the right direction and makes a lot of sense now. A year ago, Piedmont Lithium produced no lithium at all.
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However, the long-term outlook continues to be strong for electric vehicles and the lithium used to produce EV batteries. A year ago, Piedmont Lithium produced no lithium at all. Albemarle is the largest lithium producer globally.
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2023-12-15 00:00:00 UTC
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Worried About Inflation? Why Buying Stocks With This 1 Trait Could Be the Smartest Investing Move You Make in 2024.
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https://www.nasdaq.com/articles/worried-about-inflation-why-buying-stocks-with-this-1-trait-could-be-the-smartest
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Over the last couple of years, there hasn't been a single topic that has attracted more attention than inflation. And there's a good reason for this situation. The Consumer Price Index, a key measure of inflation in the U.S. economy, reached a 40-year high in June 2022.
This prompted the Federal Reserve to hike interest rates aggressively starting in 2022. The result was poor stock returns last year. Even though the CPI has been cooling down meaningfully in recent months, some investors might still be worried about the impact of rising prices across the economy.
I'm here to tell you that not all hope is lost. If this sounds like your mentality about the macro environment, then buying stocks with one magnificent trait could be the smartest move you can make in 2024.
Pricing power is a wonderful quality
"The single most important decision in evaluating a business is pricing power," Warren Buffett once said. "If you've got the power to raise prices without losing business to a competitor, you've got a very good business."
Why is pricing power so important when you expect inflationary conditions to continue? If a company can successfully offset rising costs with higher pricing that its customers don't flinch at, then inflation quickly becomes less of a concern.
There are numerous real-world examples of this phenomenon. Look at luxury automaker Ferrari (NYSE: RACE). Because it caters to the ultra-wealthy, it can keep raising prices on its supercars, which are met with even stronger demand due to exclusivity and brand power.
Or take a more mass-market business like Chipotle Mexican Grill (NYSE: CMG). Even though management has increased menu prices multiple times in the past couple of years thanks to rising costs for food, labor, and paper products, consumers still believe they are getting tremendous value.
Netflix (NASDAQ: NFLX) is another example. In the U.S., its most developed market, the company has asked members to pay more for its streaming service many times over the past decade. Yet the subscriber base keeps expanding over time.
These businesses can't increase prices aggressively and indefinitely, or they risk losing customers and leaving revenue on the table. But it's very encouraging to know that their operations benefit from pricing power.
Image source: Getty Images.
Inflation is a complex beast
What's interesting about inflation is that, for an economic topic that so many people pay close attention to, no one still has any idea what's going to happen in the future. Look at the Federal Reserve for the perfect demonstration of this point. This is a group of central bankers who are the most well-educated economists in the world, and they were convinced that inflation was just transitory in the summer of 2021, a wildly incorrect assessment.
The fact that these so-called experts have no clue which direction inflation is going means that the average investor, armed with less data, analytical capabilities, and time on their hands, surely doesn't know what will happen with prices across the economy.
That's why owning shares of businesses that exhibit pricing power is so critical, especially right now. We don't need to make any predictions about inflation. These companies have differentiated product offerings that customers are willing to pay for, no matter what the macroeconomic picture looks like. And that's a clear advantage from a portfolio management perspective.
There is a reason to believe that the next decade will be more inflationary than the last. The Fed is already signaling rate cuts next year, an accommodative stance. Lower interest rates, coupled with unlimited money printing to support a massive and growing debt burden, can undoubtedly spur inflation. This is something to pay close attention to ahead.
All of this leads to the conclusion that pricing power should be one of the top characteristics that investors look for in potential investments in 2024 and beyond. I suspect that a portfolio full of these types of businesses will do well over the next decade.
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Neil Patel and his clients have no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chipotle Mexican Grill and Netflix. 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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Even though management has increased menu prices multiple times in the past couple of years thanks to rising costs for food, labor, and paper products, consumers still believe they are getting tremendous value. The fact that these so-called experts have no clue which direction inflation is going means that the average investor, armed with less data, analytical capabilities, and time on their hands, surely doesn't know what will happen with prices across the economy. Lower interest rates, coupled with unlimited money printing to support a massive and growing debt burden, can undoubtedly spur inflation.
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Or take a more mass-market business like Chipotle Mexican Grill (NYSE: CMG). Even though management has increased menu prices multiple times in the past couple of years thanks to rising costs for food, labor, and paper products, consumers still believe they are getting tremendous value. These businesses can't increase prices aggressively and indefinitely, or they risk losing customers and leaving revenue on the table.
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Pricing power is a wonderful quality "The single most important decision in evaluating a business is pricing power," Warren Buffett once said. "If you've got the power to raise prices without losing business to a competitor, you've got a very good business." The fact that these so-called experts have no clue which direction inflation is going means that the average investor, armed with less data, analytical capabilities, and time on their hands, surely doesn't know what will happen with prices across the economy.
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Over the last couple of years, there hasn't been a single topic that has attracted more attention than inflation. Pricing power is a wonderful quality "The single most important decision in evaluating a business is pricing power," Warren Buffett once said. "If you've got the power to raise prices without losing business to a competitor, you've got a very good business."
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2023-12-15 00:00:00 UTC
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Fed to Start Cutting Rates Midyear 2024: 4 Stocks to Benefit
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https://www.nasdaq.com/articles/fed-to-start-cutting-rates-midyear-2024%3A-4-stocks-to-benefit
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The broader equity market is poised to close on a high note in 2023, following a dismal performance in the previous year. The major stock indexes, the Dow Jones Industrial Average, the Nasdaq Composite and the S&P 500, have risen 12.5%, 41.5% and 22.9%, respectively, year to date.
The rally has been primarily driven by cooling inflationary pressure and declining gasoline prices, which have subsided the fears of a recession. The U.S. stock market is poised to continue the momentum in 2024 as the Federal Reserve has signaled three rate cuts next year.
The U.S. Federal Reserve's robust series of rate hikes, escalating from record-low levels in March 2022 to the current range of 5.25%-5.50%, contributed to stock market challenges, particularly impacting growth-oriented companies. The Fed’s shift in stance from an aggressive monetary policy to a dovish policy is going to boost investor sentiments.
Amid the Federal Reserve's indications of potential rate cuts in the middle of 2024, investors should evaluate sectors that could be buoyed by such monetary policy changes. These anticipated rate cuts could trigger significant movements in specific industries, presenting strategic investment opportunities.
Here, we have picked up four stocks from four different industries that could thrive on the Fed’s easing monetary policy.
Realty Income Corporation O is our first pick, which belongs to the Zacks Real Estate Investment Trusts (REITs) industry. Reduced interest rates often drive increased demand in the real estate sector. Residential and commercial REITs might benefit from heightened interest as borrowers seek more affordable mortgages.
Realty Income is engaged in the acquisition and management of freestanding commercial properties that reap rental revenues under long-term net lease agreements. The company’s sustained focus on deriving the majority of its annualized retail contractual rental revenues from tenants with a service, non-discretionary and a/or low-price-point component to their business has helped it as such businesses are less susceptible to economic recessions and competition from Internet retailing.
Realty Income’s solid underlying real estate quality and prudent underwriting at acquisition have helped the company maintain high occupancy levels consistently. Since 1998, O’s occupancy level has never been below 96%. Moreover, Realty Income is focused on external growth through the exploration of accretive acquisition opportunities and developments. The solid property acquisition volume at decent investment spreads has aided the company’s performance so far.
Additionally, the stock carries a Zacks Rank #2 (Buy), which indicates a solid investment opportunity. The Zacks Consensus Estimate for 2023 earnings has remained unchanged at $4.01 per share over the past 60 days, while estimates have been revised upward by 2 cents to $4.18 for 2024 during the same period. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Realty Income Corporation Price and Consensus
Realty Income Corporation price-consensus-chart | Realty Income Corporation Quote
Our second choice is The Honest Company, Inc. HNST, which comes under the Zacks Consumer Products – Discretionary industry. The company is a digitally-native, mission-driven brand focused on leading the clean lifestyle movement, creating a community for conscious consumers and seeking to disrupt multiple consumer product categories.
Cheaper borrowing costs tend to spur consumer spending on non-essential goods and services. The stock might experience an uptick as discretionary spending gains momentum. This Los Angeles-based company has been gaining market share from increased household penetration, brand awareness and product accessibility to more consumers. Despite a tough environment, the company is benefiting from strong demand for its clean and natural products.
The stock carries a Zacks Rank #2 at present. The Zacks Consensus Estimate for the 2023 and 2024 bottom lines has witnessed positive estimate revisions in the past 60 days. For 2023, the Zacks Consensus Estimate is pegged at a loss of 50 cents per share, lowered from 57 cents 60 days ago. The consensus mark for 2024 stands at a loss of 26 cents, down from 33 cents 60 days ago.
The Honest Company, Inc. Price and Consensus
The Honest Company, Inc. price-consensus-chart | The Honest Company, Inc. Quote
NVIDIA Corporation NVDA is our third choice, which comes under the Zacks Semiconductor - General industry. Innovative technology firms often thrive during rate-cut cycles, particularly those leading advancements in areas like cloud computing, AI and digital transformation. Lower rates might prompt increased investments in tech innovations, fueling growth for these companies.
Despite more than two-fold gains year to date, NVIDIA is likely to continue momentum in 2024, driven by strong demand for its chips used in computing and networking. The company’s Compute & Networking segment’s revenues are gaining from the strong growth of artificial intelligence (AI), high-performance computing and accelerated computing.
The data center end-market business is likely to continue benefiting from the growing demand for generative AI and large language models using graphic processing units (GPUs) based on NVIDIA Hopper and Ampere architectures. A surge in Hyperscale demand and a solid uptake of AI-based smart cockpit infotainment solutions are acting as tailwinds. Collaborations with Mercedes-Benz and Audi are likely to advance its presence in autonomous vehicles and other automotive electronics space.
Currently, the stock carries a Zacks Rank #2. The Zacks Consensus Estimate for fiscal 2024 earnings has been revised upward by 13.2% in the past 30 days to $12.29 per share. The consensus mark for fiscal 2025 earnings has moved upward to $19.85 from $16.76 30 days ago.
NVIDIA Corporation Price and Consensus
NVIDIA Corporation price-consensus-chart | NVIDIA Corporation Quote
Our next pick is Mobileye Global Inc. MBLY, which belongs to the Zacks Automotive – Original Equipment industry. It provides advanced image sensing and processing technology for automotive applications. The company designs and develops vision-based advanced driver assistance systems (ADAS) that offer warnings for collision prevention and mitigation.
Lower interest rates often translate into reduced borrowing costs for consumers. Cheaper auto loans can incentivize car purchases, driving higher sales for automobile companies. With more favorable financing terms, consumers might be encouraged to upgrade vehicles or make purchases they might have postponed due to higher borrowing expenses, thereby enhancing prospects for the overall automotive sector.
Mobileye enjoys a leadership position in the ADAS market with an impressive sales growth trajectory. Both EyeQ and SuperVision business lines are experiencing strong growth, surpassing overall global auto production growth.
At present, the stock carries a Zacks Rank #2. The Zacks Consensus Estimate for 2023 earnings has been revised a penny upward to 77 cents per share in the past 30 days. For 2024, the consensus mark has been moved upward to 85 cents from 83 cents 60 days ago.
Mobileye Global Inc. Price and Consensus
Mobileye Global Inc. price-consensus-chart | Mobileye Global Inc. Quote
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
Be First to New Top 10 Stocks >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Realty Income Corporation (O) : Free Stock Analysis Report
Mobileye Global Inc. (MBLY) : Free Stock Analysis Report
The Honest Company, Inc. (HNST) : 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 U.S. Federal Reserve's robust series of rate hikes, escalating from record-low levels in March 2022 to the current range of 5.25%-5.50%, contributed to stock market challenges, particularly impacting growth-oriented companies. The data center end-market business is likely to continue benefiting from the growing demand for generative AI and large language models using graphic processing units (GPUs) based on NVIDIA Hopper and Ampere architectures. With more favorable financing terms, consumers might be encouraged to upgrade vehicles or make purchases they might have postponed due to higher borrowing expenses, thereby enhancing prospects for the overall automotive sector.
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Realty Income Corporation Price and Consensus Realty Income Corporation price-consensus-chart | Realty Income Corporation Quote Our second choice is The Honest Company, Inc. HNST, which comes under the Zacks Consumer Products – Discretionary industry. NVIDIA Corporation Price and Consensus NVIDIA Corporation price-consensus-chart | NVIDIA Corporation Quote Our next pick is Mobileye Global Inc. MBLY, which belongs to the Zacks Automotive – Original Equipment industry. Click to get this free report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Realty Income Corporation (O) : Free Stock Analysis Report Mobileye Global Inc. (MBLY) : Free Stock Analysis Report The Honest Company, Inc. (HNST) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Realty Income Corporation Price and Consensus Realty Income Corporation price-consensus-chart | Realty Income Corporation Quote Our second choice is The Honest Company, Inc. HNST, which comes under the Zacks Consumer Products – Discretionary industry. The Honest Company, Inc. Price and Consensus The Honest Company, Inc. price-consensus-chart | The Honest Company, Inc. Quote NVIDIA Corporation NVDA is our third choice, which comes under the Zacks Semiconductor - General industry. Click to get this free report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Realty Income Corporation (O) : Free Stock Analysis Report Mobileye Global Inc. (MBLY) : Free Stock Analysis Report The Honest Company, Inc. (HNST) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Additionally, the stock carries a Zacks Rank #2 (Buy), which indicates a solid investment opportunity. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Despite more than two-fold gains year to date, NVIDIA is likely to continue momentum in 2024, driven by strong demand for its chips used in computing and networking.
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2023-12-15 00:00:00 UTC
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DOW Unveils SURLYN Grades for Perfume and Cosmetic Packaging
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https://www.nasdaq.com/articles/dow-unveils-surlyn-grades-for-perfume-and-cosmetic-packaging
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Dow Inc. DOW has launched two new sustainable ionomer grades, SURLYN REN and SURLYN CIR, which pioneer the use of renewable and circular feedstocks.
These new grades represent a significant milestone in the cosmetics industry's packaging. The new SURLYN grades will let beauty firms and manufacturers develop high-quality, sustainable cosmetic packaging that stands out on store shelves.
SURLYN CIR ionomers are made from mixed plastic waste, whereas SURLYN REN ionomers are made from bio-waste, such as used cooking oil. The distinct look, feel and performance for which SURLYN material is renowned are delivered by both grades produced with these substitute feedstocks.
SURLYN REN and SURLYN CIR are significant steps in the development of sustainable packaging for the beauty sector. Dow is delighted to have pioneered the use of renewable and circular materials to make quality cosmetic packaging alongside LVMH Beauty. These products will not only help LVMH achieve its sustainability goals but also contribute to Dow's goal of transforming waste and delivering 3 million metric tons of circular and renewable solutions per year by 2030.
Shares of DOW have gained 10% over the past year against a 5.9% decline of its industry.
Image Source: Zacks Investment Research
Dow, on its third-quarter call, said that it remains focused on operational and financial discipline as it navigates challenging market conditions. It expects to benefit from rising oil prices that favor its cost-advantaged asset footprint.
The company continues to implement targeted actions to deliver $1 billion in cost savings this year. It also remains committed to its disciplined and balanced capital allocation priorities. DOW expects its Decarbonize and Grow and Transform the Waste strategies to generate more than $3 billion in underlying earnings, lower greenhouse gas emissions by 5 million metric tons and commercialize 3 million metric tons of circular and renewable solutions annually by 2030.
Dow Inc. Price and Consensus
Dow Inc. price-consensus-chart | Dow Inc. Quote
Zacks Rank & Key Picks
Dow currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the basic materials space include Denison Mines Corp. DNN, Axalta Coating Systems Ltd. AXTA and Hawkins, Inc. HWKN.
Denison Mines has a projected earnings growth rate of 100% for the current year. It currently carries a Zacks Rank #1 (Strong Buy). DNN delivered a trailing four-quarter earnings surprise of roughly 225%, on average. The stock is up around 60% in a year. You can see the complete list of today’s Zacks #1 Rank stocks here.
Axalta has a projected earnings growth rate of 5.4% for the current year. It currently carries a Zacks Rank #1. AXTA delivered a trailing four-quarter earnings surprise of roughly 6.7%, on average. The stock is up around 35.3% in a year.
Hawkins has a projected earnings growth rate of 21% for the current year. It currently carries a Zacks Rank #2 (Buy). Hawkins delivered a trailing four-quarter earnings surprise of roughly 27.5%, on average. HWKN shares are up around 84.7% in a year.
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
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
Dow Inc. (DOW) : 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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The new SURLYN grades will let beauty firms and manufacturers develop high-quality, sustainable cosmetic packaging that stands out on store shelves. Image Source: Zacks Investment Research Dow, on its third-quarter call, said that it remains focused on operational and financial discipline as it navigates challenging market conditions. 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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These products will not only help LVMH achieve its sustainability goals but also contribute to Dow's goal of transforming waste and delivering 3 million metric tons of circular and renewable solutions per year by 2030. Dow Inc. Price and Consensus Dow Inc. price-consensus-chart | Dow Inc. Quote Zacks Rank & Key Picks Dow currently carries a Zacks Rank #3 (Hold). Click to get this free report Dow Inc. (DOW) : 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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Dow Inc. DOW has launched two new sustainable ionomer grades, SURLYN REN and SURLYN CIR, which pioneer the use of renewable and circular feedstocks. Dow Inc. Price and Consensus Dow Inc. price-consensus-chart | Dow Inc. Quote Zacks Rank & Key Picks Dow currently carries a Zacks Rank #3 (Hold). Click to get this free report Dow Inc. (DOW) : 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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Dow Inc. DOW has launched two new sustainable ionomer grades, SURLYN REN and SURLYN CIR, which pioneer the use of renewable and circular feedstocks. The stock is up around 60% in a year. The stock is up around 35.3% in a year.
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2023-12-15 00:00:00 UTC
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QuickLogic and Dorman Products have been highlighted as Zacks Bull and Bear of the Day
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DCOMP
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https://www.nasdaq.com/articles/quicklogic-and-dorman-products-have-been-highlighted-as-zacks-bull-and-bear-of-the-day
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For Immediate Release
Chicago, IL – December 18, 2023 – Zacks Equity Research shares QuickLogic QUIK as the Bull of the Day and Dorman Products DORM as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Macy's, Inc. M, Abercrombie & Fitch ANF and American Eagle Outfitters AEO.
Here is a synopsis of all five stocks.
Bull of the Day:
QuickLogic is a Zacks Rank #2 (Buy) that has an F for Value and an A for Growth. This is a semiconductor company that makes and sells ultra low power chips. These are ideal for the smartphone and wearable market. Let’s explore more about this company in this Bull of The Day article.
Description
QuickLogic Corporation is a semiconductor provider of ultra-low power, comprehensive, flexible sensor processing solutions enabling significantly longer battery life for the Smartphone, Wearable, and IoT markets. They are the only company integrating multi-core processing, programmable logic, sensor fusion and context aware algorithms, and embedded software. QuickLogic accelerates the pace of innovation for always-on motion, light, environmental, location, and voice-enabled user experiences.
Earnings History
When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market’s expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
For QuickLogic, I see two straight beats of the Zacks Consensus Estimate. The company did report two earnings misses over the last year as well.
Earnings Estimates Revisions
Earnings estimates revisions is what the Zacks Rank is all about.
For QUIK estimates are moving higher.
This quarter has QUIK expected to earn $0.14, up from $0.07 cent 30 days ago.
Next quarter is the first quarter of 2024 and there is no estimate.
The full year 2023 has seen estimates move from $0.05 to $0.11 over the last 30 days.
Next fiscal year has seen a move higher from $0.32 to $0.36 over the same period.
Accelerating Growth
This year the company is looking for 30% topline growth and that is great but even better than that is the 2024 is calling for 31% topline growth. Accelerating growth on top is a great signal.
Valuation
I see a forward PE for QUIK at 116x, but that number drops to 38x when you extend it to the end of 2024. The price to book multiple of 12.6x is a little high, but chips names tend to trade at elevated levels. The company is expected to grow at a 30% rate, but the most recent quarter saw sales growth of 92% on a year over year basis and it that keeps up the growth rates will move dramatically higher. Price to sales comes in at 10x.
I see operating margins making some big moves higher. Solid revenue growth and better execution (margins) will lead to higher EPS estimates down the road.
Bear of the Day:
Dorman Products is a Zacks Rank #5 (Strong Sell) and has seen earnings estimates slide lower recently following a rough year with 3 misses and one meet of the of the Zacks Consensus Estimate. This article will look at why this stock is a Zacks Rank #5 (Strong Sell) as it is the Bear of the Day.
Description
Dorman Products, Inc. is a leading supplier of Dealer Exclusive replacement parts to the Automotive, Medium and Heavy Duty Aftermarkets. Dorman products are marketed under the Dorman, OE Solutions, HELP!, AutoGrade, First Stop, Conduct-Tite, TECHoice, Dorman Hybrid Drive Batteries and Dorman HD Solutions brand names.
Earnings History
When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market’s expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
In the case of DORM, I see three misses of the Zacks Consensus Estimate and one meet. This alone does not make the stock a Zacks Rank #1 (Strong Buy) and it doesn’t make it a Zacks Rank #5 (Strong Sell) either.
The Zacks Rank does care about the earnings history, but it is much more heavily influenced by the movement of earnings estimates.
Earnings Estimates
The Zacks Rank tells us which stocks are seeing earnings estimates move higher or in this case lower. For DORM I see annual estimates moving lower of late.
The current fiscal year consensus number moved lower from $5.16 to $4.38 over the last 60 days.
The next year moved from a gain of $6.06 to $5.22 over the last 60 days.
Negative movement in earnings estimates like that is why this stock is a Zacks Rank #5 (Strong Sell).
It should be noted that a lot of stocks in the Zacks universe are seeing negative earnings estimate revisions. That means that the stocks that are seeing small but negative earnings estimate revisions are falling to a Zacks Rank #5 (Strong Sell).
Additional content:
Macy's Robust Omnichannel Moves Appear Encouraging
Macy's, Inc. has been making smart moves to enhance customers’ shopping experience. The company is ramping up digital capabilities to provide seamless omnichannel experiences. It has also been progressing well on its Polaris strategy, which includes boosting digital capabilities and attaining operating efficiency.
Over the past three months, the department store chain’s shares have surged 76.2%, outperforming the industry’s 36.2% growth.
Let’s Delve Deeper
Management is on track to strengthen its omnichannel capabilities with investments in online shopping experiences, data and analytics, technology infrastructure as well as better fulfillment capabilities. Macy’s expanded its omnichannel offerings such as curbside, store pickup and same-day delivery bode well. The launch of Macy’s Marketplace encompassed products in a wider range of categories, such as pets, home, kids, baby and maternity, beauty, health, toys and electronics.
Digital sales are likely to account for one-third of net sales in fiscal 2023. The company is progressing well with reimagining its private brands. Impressively, NDSN concluded the third quarter of fiscal 2023 with 1,500 brands on the platform and grew its gross merchandise value by about 22% on a consecutive quarterly basis.
The company is repositioning its physical store footprint to better serve customers and support omnichannel market sales growth. It is ramping up its small-format store initiative, with openings across Macy's and Bloomie's locations. Presently, it operates 15 small-format locations, including 12 Macy's and three Bloomie's.
These stores, about one-fifth the size of its larger counterparts, are designed to provide customers with a premium shopping experience in high-traffic areas. Shoppers can expect to find a mix of Macy's private brands and popular market brands in these smaller outlets. Moving ahead, it plans to open up to 30 additional small-format Macy's locations through fall 2025, alongside expanding Bloomie's locations.
Additionally, Macy’s collaboration with the Swedish buy now, pay later group Klarna is enabling the company to offer shoppers financial ease and payment flexibility with their online purchases. The company’s tie-up with DoorDash for expedited delivery service is also encouraging. Markedly, the redesigned mobile app, live shopping functionality and addition of payment options such as Apple Pay, Klarna Express Checkout, PayPal and Venmo have been making shopping easier for customers.
Macy's Polaris Strategy to adapt better to the evolving retail ecosystem also bodes well. This includes strengthening customer relationships, expanding assortments, accelerating digital growth, optimizing store portfolio and reducing costs.
Moreover, the company’s expanded Star Rewards Loyalty program has been enhancing customer engagement. This was evident in the third quarter of fiscal 2023. Star Rewards program members made up roughly 72% of the overall Macy's brand-owned-plus-licensed sales on a trailing twelve-month basis.
On a trailing 12-month basis, 41.3 million active customers shopped the Macy’s brand. We note that 4 million active customers shopped the Bloomingdale’s brand on a trailing 12-month basis. Comparable sales at the Bluemercury brand were up 2.5% on an owned basis. About 683,000 active customers shopped the Bluemercury brand on a trailing 12-month basis.
What Else?
In recent developments, this omnichannel retailer received a buyout proposal from real estate investor Arkhouse Management and asset manager Brigade Capital Management, per the media reports. This deal is valued at $5.8 billion, according to the media sources. Sources say that the offer, which was submitted on Dec 1, 2023, values the company’s shares at $21 a share. We note that the offer price reflects a 32.4% premium to M's closing price of $15.86 per share on Nov 30. However, Macy’s has declined to comment.
According to sources, the group offering the proposal holds a huge stake in Macy's via Arkhouse-managed funds and has also discussed with the company, whose board has been mulling the offer.
Nonetheless, this Zacks Rank #3 (Hold) company seems to be a decent investment pick now. A VGM Score of B further adds to the strength.
Key Picks
We have highlighted three better-ranked stocks, namely Abercrombie & Fitch and American Eagle Outfitters.
Abercrombie & Fitch, a leading casual apparel retailer, currently sports 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 Abercrombie & Fitch’s current financial-year sales suggests growth of 13.3% from the year-ago reported figure. ANF delivered an earnings surprise of 713% in the last reported quarter.
American Eagle Outfitters, a retailer of casual apparel, accessories and footwear, currently has a Zacks Rank #2 (Buy). AEO delivered an earnings surprise of 23% in each of the trailing four quarters.
The Zacks Consensus Estimate for American Eagle Outfitters’ current financial-year sales and EPS suggests growth of 4% and 39.2%, respectively, from the year-ago reported figures.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index.Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
Be First to New Top 10 Stocks >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Macy's, Inc. (M) : Free Stock Analysis Report
Abercrombie & Fitch Company (ANF) : Free Stock Analysis Report
American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report
QuickLogic Corporation (QUIK) : Free Stock Analysis Report
Dorman Products, Inc. (DORM) : 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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Description QuickLogic Corporation is a semiconductor provider of ultra-low power, comprehensive, flexible sensor processing solutions enabling significantly longer battery life for the Smartphone, Wearable, and IoT markets. The launch of Macy’s Marketplace encompassed products in a wider range of categories, such as pets, home, kids, baby and maternity, beauty, health, toys and electronics. Additionally, Macy’s collaboration with the Swedish buy now, pay later group Klarna is enabling the company to offer shoppers financial ease and payment flexibility with their online purchases.
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In addition, Zacks Equity Research provides analysis on Macy's, Inc. M, Abercrombie & Fitch ANF and American Eagle Outfitters AEO. The Zacks Consensus Estimate for American Eagle Outfitters’ current financial-year sales and EPS suggests growth of 4% and 39.2%, respectively, from the year-ago reported figures. Click to get this free report Macy's, Inc. (M) : Free Stock Analysis Report Abercrombie & Fitch Company (ANF) : Free Stock Analysis Report American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report QuickLogic Corporation (QUIK) : Free Stock Analysis Report Dorman Products, Inc. (DORM) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Bear of the Day: Dorman Products is a Zacks Rank #5 (Strong Sell) and has seen earnings estimates slide lower recently following a rough year with 3 misses and one meet of the of the Zacks Consensus Estimate. Earnings Estimates The Zacks Rank tells us which stocks are seeing earnings estimates move higher or in this case lower. Click to get this free report Macy's, Inc. (M) : Free Stock Analysis Report Abercrombie & Fitch Company (ANF) : Free Stock Analysis Report American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report QuickLogic Corporation (QUIK) : Free Stock Analysis Report Dorman Products, Inc. (DORM) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Earnings Estimates The Zacks Rank tells us which stocks are seeing earnings estimates move higher or in this case lower. The current fiscal year consensus number moved lower from $5.16 to $4.38 over the last 60 days. Additional content: Macy's Robust Omnichannel Moves Appear Encouraging Macy's, Inc. has been making smart moves to enhance customers’ shopping experience.
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2023-12-15 00:00:00 UTC
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3 Stocks to Avoid This Week
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https://www.nasdaq.com/articles/3-stocks-to-avoid-this-week-109
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Wall Street is rolling, but not every stock is playing along. I thought my three stocks to avoid for last week -- Altria, Lennar, and D.R. Horton -- were going to lose to the market. They rose 1%, 7%, and 8%, respectively, for an average gain of 5.3% for the week.
The S&P 500 inched 2.5% higher, so I fell short. I have still been right in 70 of the past 112 weeks, or 63% of the time.
Let's turn our attention to the new week. I see Steelcase (NYSE: SCS), CarMax (NYSE: KMX), and Lennar (NYSE: LEN) as stocks you might want to consider steering clear of this week. Let's go over my near-term concerns with all three investments.
1. Steelcase
There aren't a lot of companies reporting financial results this week, but one name that could fall short is Steelcase. The maker of office furniture reports results for its fiscal third quarter of 2024 after Tuesday's market close. It will discuss the numbers on Wednesday morning.
Steelcase would seem to be a winner in the current climate. Companies are calling employees back to the office, and that should spur demand for the stylish office essentials that Steelcase provides.
Reality hasn't been as kind. Revenue growth has actually decelerated sharply in the last few quarters.
Q1 2023: 33%
Q2 2023: 19%
Q3 2023: 12
Q4 2023: 7
Q1 2024: 2
Q2 2024: (1%)
The company's guidance calls for a 3% to 6% year-over-year decline in this week's quarterly update. It's shaping up to be the sixth consecutive quarter of decelerating top-line growth.
If you're wondering why business isn't expanding, you may find a clue in the pink slips. Steelcase laid off 180 salaried workers in September of last year and followed that up with hundreds of job cuts in the springtime of this year.
Image source: Getty Images.
This leads to a couple of things worth discussing. We can start with the irony that even a company sprucing up office spaces is trimming its own workforce. With companies trying to do more with less, there's naturally less demand for Steelcase products. Businesses trying to improve their bottom lines also means that they're less likely to spend on upgrades.
It will take a couple of years for Steelcase to return to pre-pandemic revenue and earnings levels. It may not get there, but the point right now is that business is still going the wrong way.
2. CarMax
There's no debating that CarMax is the class act among used-car retailers. It moved 810,000 pre-owned vehicles in fiscal 2023.
That doesn't mean it's struggling to find a way to shift out of reverse. Annual revenue is declining for the third time in the past four fiscal years. It will pull up for its fiscal third-quarter results on Thursday morning.
Analysts see CarMax's profitability nearly doubling to $0.47 a share, but that's expected to come on a 7% year-over-year decline in revenue. Making matters worse, profit targets for the quarter have been inching lower in recent weeks. CarMax missed Wall Street's net income estimate last time out, too.
3. Lennar
I figured that Lennar would stumble last week, and I was wrong. The stock rose 7%, but shares of the homebuilder actually declined on Friday after the company posted mixed results for its fiscal fourth quarter.
Yes, Lennar beat expectations on both ends of the income statement. It also expects the year ahead to have the same 10% increase in home deliveries that it did in fiscal 2023. But it wasn't all good news.
Lennar's guidance calls for earnings per share of $2.15 to $2.20 in the current quarter, barely above the $2.06 it posted a year earlier and well below the $2.53 that analysts were targeting. This is a seasonally slow period for homebuilders, but I'm not convinced that business will pick up in the year ahead.
As I mentioned last week, Lennar and other residential real estate developers have taken advantage of high mortgage rates. With homeowners reluctant to put their current properties on the market, the lack of supply has favored homebuilders. Lower interest rates will beef up real estate activity, but it will come at the expense of developers losing market share to secondhand homes.
The stock market is always on the move. If you're looking for safe stocks, you aren't likely to find them in Steelcase, CarMax, and Lennar this week.
Should you invest $1,000 in Steelcase right now?
Before you buy stock in Steelcase, 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 Steelcase 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
Rick Munarriz has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends CarMax and Lennar. 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 rose 7%, but shares of the homebuilder actually declined on Friday after the company posted mixed results for its fiscal fourth quarter. Lennar's guidance calls for earnings per share of $2.15 to $2.20 in the current quarter, barely above the $2.06 it posted a year earlier and well below the $2.53 that analysts were targeting. Lower interest rates will beef up real estate activity, but it will come at the expense of developers losing market share to secondhand homes.
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I see Steelcase (NYSE: SCS), CarMax (NYSE: KMX), and Lennar (NYSE: LEN) as stocks you might want to consider steering clear of this week. The company's guidance calls for a 3% to 6% year-over-year decline in this week's quarterly update. Before you buy stock in Steelcase, 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 Steelcase wasn't one of them.
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Steelcase There aren't a lot of companies reporting financial results this week, but one name that could fall short is Steelcase. If you're looking for safe stocks, you aren't likely to find them in Steelcase, CarMax, and Lennar this week. Before you buy stock in Steelcase, 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 Steelcase wasn't one of them.
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Steelcase There aren't a lot of companies reporting financial results this week, but one name that could fall short is Steelcase. Lennar I figured that Lennar would stumble last week, and I was wrong. If you're looking for safe stocks, you aren't likely to find them in Steelcase, CarMax, and Lennar this week.
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2023-12-15 00:00:00 UTC
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Fed Signals Multiple Rate Cuts in 2024: 5 Solid Stocks to Buy
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DCOMP
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https://www.nasdaq.com/articles/fed-signals-multiple-rate-cuts-in-2024%3A-5-solid-stocks-to-buy
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Wall Street has been on a rally since November, and stocks are headed not only to end this year on a high but also to start 2024 on a promising note. The Dow, the S&P 500 and the Nasdaq are up 3.8%, 3.3% and 4.1%, respectively, so far in December.
The renewed optimism comes as the Federal Reserve finally gave a clear picture of its interest rate hikes in its December policy meeting. The Federal Reserve left interest rates unchanged in its current range of 5.25-5.50% for the third straight time as inflation has continued to show signs of a steady decline over the past year after reaching a 40-year high.
Federal Reserve Chairman Jerome Powell said in the post-FOMC meeting press conference that he believes that the policy rate is now at its peak or at least near it. He also said that the Fed will closely monitor inflation data and will try not to keep interest rates high for a longer period.
The Federal Reserve increased interest rates by 525 basis points since March 2022 from its range of 0-0.25% to 5.25-5.50%, which saw inflation decline sharply from the peak of 9.1% in June 2022.
Investors were already optimistic that the Federal Reserve would leave interest rates unaltered in its December meeting. However, the wait was for the rate cuts. The majority of Fed officials now believe that at least three rate cuts of 25 basis each could be implemented in 2024.
The central bank now expects its policy rate to be at 4.6% by the end of 2024, a lot lower than the earlier forecast of 5.1%. Moreover, market participants now believe that the first of the rate cuts could come as early as March.
Optimism surrounding multiple rate cuts in 2024 has also heightened the chance of a soft landing and a further decline in inflation. Lower borrowing costs bode well for several sectors.
People have been spending cautiously for a long time, but lower interest rates will give them a chance to spend more freely. Given this situation, investing in consumer discretionary stocks seems to be an ideal choice.
Our Choices
We have identified five stocks from the consumer discretionary sector that are likely to benefit from the Fed’s indication toward going for multiple rate cuts in 2024. Each of these stocks carries a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Royal Caribbean Cruises Ltd. RCL owns and operates three global brands — Royal Caribbean International, Celebrity Cruises and Azamara Club Cruises. Additionally, RCL has a 50% investment in a joint venture with TUI AG, which operates the brand TUI Cruises. Royal Caribbean Cruises' brands primarily serve the contemporary, premium and deluxe segments of the cruise vacation industry, which also includes the budget and luxury segments.
Royal Caribbean Cruises' expected earnings growth rate for the current year is 187.9%. The Zacks Consensus Estimate for current-year earnings has improved 7.9% over the past 60 days. RCL currently sports a Zacks Rank #1.
Lululemon Athletica Inc. LULU designs, manufactures and distributes athletic apparel and accessories for women, men and female youth. LULU offers a line of apparel assortment, including fitness pants, shorts, tops and jackets designed for healthy lifestyle and athletic pursuits, such as yoga, training, and running, as well as other sweaty and general fitness under the lululemon athletica brand name.
Lululemon Athletica’s expected earnings growth rate for the current year is 22.9%. The Zacks Consensus Estimate for the current-year earnings has improved 2.1% over the past 60 days. LULU presently carries a Zacks Rank #2.
Comcast Corporation CMCSA is a global media and technology company with three primary businesses: Comcast Cable, NBCUniversal and Sky. Beginning first-quarter 2023, CMCSA changed its presentation of segment operating results around its two primary businesses, Connectivity & Platforms and Content & Experiences.
Comcast Corporation’s expected earnings growth rate for the current year is 8.2%. The Zacks Consensus Estimate for current-year earnings has improved 3.4% over the past 60 days. CMCSA presently carries a Zacks Rank #2.
Live Nation Entertainment, Inc. LYV operates as a live entertainment company. LYV operates through the Concerts, Ticketing, and Sponsorship and Advertising segments. Live Nation Entertainment has more than 580 million fans across all of its concerts and ticketing platforms in 46 countries.
Live Nation Entertainment’s expected earnings growth rate for the current year is 132.8%. The Zacks Consensus Estimate for current-year earnings has improved 46.1% over the past 60 days. LYV presently has a Zacks Rank #2.
Skechers U.S.A., Inc. SKX designs, develops, markets and distributes footwear for men, women, and children in the United States and overseas under the SKECHERS name, as well as under several uniquely branded names. SKX has distribution networks and joint venture partners in Asia and the Middle East, and wholly-owned subsidiaries in Canada, Japan, throughout Europe and Latin America.
Skechers U.S.A.’s expected earnings growth rate for the current year is 44.1%. The Zacks Consensus Estimate for current-year earnings has improved 1.2% over the past 60 days. SKXpresently has a Zacks Rank #2.
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
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
Comcast Corporation (CMCSA) : Free Stock Analysis Report
Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report
Skechers U.S.A., Inc. (SKX) : Free Stock Analysis Report
lululemon athletica inc. (LULU) : Free Stock Analysis Report
Live Nation Entertainment, Inc. (LYV) : 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 Federal Reserve left interest rates unchanged in its current range of 5.25-5.50% for the third straight time as inflation has continued to show signs of a steady decline over the past year after reaching a 40-year high. Beginning first-quarter 2023, CMCSA changed its presentation of segment operating results around its two primary businesses, Connectivity & Platforms and Content & Experiences. SKX has distribution networks and joint venture partners in Asia and the Middle East, and wholly-owned subsidiaries in Canada, Japan, throughout Europe and Latin America.
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Royal Caribbean Cruises' expected earnings growth rate for the current year is 187.9%. Live Nation Entertainment’s expected earnings growth rate for the current year is 132.8%. Click to get this free report Comcast Corporation (CMCSA) : Free Stock Analysis Report Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report Skechers U.S.A., Inc. (SKX) : Free Stock Analysis Report lululemon athletica inc. (LULU) : Free Stock Analysis Report Live Nation Entertainment, Inc. (LYV) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Royal Caribbean Cruises' expected earnings growth rate for the current year is 187.9%. Live Nation Entertainment’s expected earnings growth rate for the current year is 132.8%. Click to get this free report Comcast Corporation (CMCSA) : Free Stock Analysis Report Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report Skechers U.S.A., Inc. (SKX) : Free Stock Analysis Report lululemon athletica inc. (LULU) : Free Stock Analysis Report Live Nation Entertainment, Inc. (LYV) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The Federal Reserve left interest rates unchanged in its current range of 5.25-5.50% for the third straight time as inflation has continued to show signs of a steady decline over the past year after reaching a 40-year high. The Federal Reserve increased interest rates by 525 basis points since March 2022 from its range of 0-0.25% to 5.25-5.50%, which saw inflation decline sharply from the peak of 9.1% in June 2022. Live Nation Entertainment, Inc. LYV operates as a live entertainment company.
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2023-12-15 00:00:00 UTC
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Cybersecurity Growth Prospects Remain Attractive
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https://www.nasdaq.com/articles/cybersecurity-growth-prospects-remain-attractive
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This has been another eventful year on the cybersecurity front. Investors need not look any further than the Las Vegas Strip for confirmation of that.
Ransomware attacks were carried out earlier this year on Caesars Entertainment (NASDAQ: CZR) and MGM Resorts International (NYSE: MGM), among other well-known corporations. Those are among the reasons the WisdomTree Cybersecurity Fund (WCBR) is higher by almost 63% and residing around 52-week highs.
The ETF is outpacing the tech-heavy Nasdaq-100 Index (NDX) and the S&P Information Technology Index by wide margins this year. There are no guarantees WCBR will surge another 63% next year. But it has some favorable long-term tailwinds for investors to evaluate.
WCBR Could Be a Long-Term Winner
The long-term outlook for the technology sector is compelling. But growth forecasts aren’t linear across the space. That means some industries, such as cybersecurity, may well outpace other tech segments.
Data confirms an attractive trajectory for cybersecurity. That implies potential upside for ETFs such as WCBR. For example, Gartner recently noted cybersecurity spending could top $215 billion in 2024. That's a 14.3% boost from this year’s expenditures.
“The continuous adoption of cloud, continuous hybrid workforce, rapid emergence and use of generative AI (GenAI), and the evolving regulatory environment are forcing security and risk management (SRM) leaders to enhance their security and risk management spending,” said Shailendra Upadhyay, senior research principal at Gartner.
Safeguarding customer data and avoiding reputational risk are among the primary cybersecurity objectives for companies across a variety of industries. So spending on data privacy and cloud security is expected to surge next year. That would outpace broader cybersecurity spending growth.
“Privacy remains a top organizational priority as regulations that impact the processing of personal data continue to emerge, including those related to the use of AI. Gartner predicts that by 2025, 75% of the world’s population will have its personal data covered by modern privacy regulations,” added the research firm.
Other growth areas for cybersecurity expenditures next year are expected to include consulting, IT outsourcing, implementation, and hardware support. Some WCBR holdings address cybersecurity in those niches. Bottom line: Cybersecurity spending isn’t optional, and preventative measures are usually more cost-effective than reactive measures.
“In light of cyber risks increasing, cyberthreats proliferating and a changing operating environment, it is more critical than ever for organizations to build and optimize a cybersecurity program,” said Upadhyay. “It is the cornerstone of cybersecurity initiatives which help SRM leaders secure new environments, protect against the expanded attack surface, consume security capabilities in new ways and create better efficiencies through automation.”
For more news, information, and analysis, visit the Modern Alpha 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 continuous adoption of cloud, continuous hybrid workforce, rapid emergence and use of generative AI (GenAI), and the evolving regulatory environment are forcing security and risk management (SRM) leaders to enhance their security and risk management spending,” said Shailendra Upadhyay, senior research principal at Gartner. “Privacy remains a top organizational priority as regulations that impact the processing of personal data continue to emerge, including those related to the use of AI. “In light of cyber risks increasing, cyberthreats proliferating and a changing operating environment, it is more critical than ever for organizations to build and optimize a cybersecurity program,” said Upadhyay.
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“The continuous adoption of cloud, continuous hybrid workforce, rapid emergence and use of generative AI (GenAI), and the evolving regulatory environment are forcing security and risk management (SRM) leaders to enhance their security and risk management spending,” said Shailendra Upadhyay, senior research principal at Gartner. So spending on data privacy and cloud security is expected to surge next year. “Privacy remains a top organizational priority as regulations that impact the processing of personal data continue to emerge, including those related to the use of AI.
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“The continuous adoption of cloud, continuous hybrid workforce, rapid emergence and use of generative AI (GenAI), and the evolving regulatory environment are forcing security and risk management (SRM) leaders to enhance their security and risk management spending,” said Shailendra Upadhyay, senior research principal at Gartner. Other growth areas for cybersecurity expenditures next year are expected to include consulting, IT outsourcing, implementation, and hardware support. “It is the cornerstone of cybersecurity initiatives which help SRM leaders secure new environments, protect against the expanded attack surface, consume security capabilities in new ways and create better efficiencies through automation.” For more news, information, and analysis, visit the Modern Alpha Channel.
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There are no guarantees WCBR will surge another 63% next year. So spending on data privacy and cloud security is expected to surge next year. That would outpace broader cybersecurity spending growth.
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2023-12-15 00:00:00 UTC
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Better Artificial Intelligence (AI) Stock for 2024: Palantir vs. C3.ai
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https://www.nasdaq.com/articles/better-artificial-intelligence-ai-stock-for-2024%3A-palantir-vs.-c3.ai
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In 2023, two of the top artificial intelligence (AI) stocks to own were Palantir (NYSE: PLTR) and C3.ai (NYSE: AI). The stocks have performed similarly, with Palantir up around 185% and C3.ai up around 180% year to date. Any investor would be extremely satisfied with those returns, but with such an impressive year, shareholders of each business are likely wondering if there's any more room to run in 2024.
So, of the two, which is a better investment moving forward? Let's find out.
C3.ai and Palantir are tackling different corners of the same market
Both C3.ai and Palantir provide AI solutions for their clients, and each is a critical supplier to various government departments. However, C3.ai is also heavily involved in the oil and gas space.
The key difference between the two providers is that C3.ai's products are mostly pre-built for a specific purpose that can be easily deployed to tackle tasks like machine reliability, analyze supply chains, and improve energy efficiency. Palantir's software is highly adaptable to any situation, giving it a broader use case at the cost of employing specialized engineers.
However, with a wide need for various AI applications, there is a use for both products in today's marketplace.
Winner: Tie
Palantir is growing faster despite its size
Moving to finances, each is growing slightly slower than many AI investors might expect. In Q3, Palantir's revenue was up 17% to $558 million, while C3.ai's grew 17% to $73.2 million (for Q2 FY 2024 ending Oct. 31). Although each company grew at the same pace, Palantir is much larger, so growth should theoretically be harder to come by.
As a result, I'll give Palantir the edge here in a face-value tie.
Looking ahead to next quarter, C3.ai's management expects 15% growth versus Palantir's projected 18%.
So, despite Palantir's size, it's beating C3.ai out on the growth front.
Winner: Palantir
C3.ai doesn't know what profits are
Transitioning to an area that some investors don't care about (although they should), we need to discuss each company's profit picture.
Palantir is already turning a profit and improving each quarter.
PLTR Profit Margin (Quarterly) data by YCharts
This is a huge win for the company, as it shows that management is serious about profits and has executed its plan to control expense growth.
C3.ai is essentially the exact opposite of that. In Q2 FY 2024, C3.ai had revenue of $73.3 million, but the cost of revenue and operating expenses totaled $152.6 million. That means C3.ai posted a horrendous operating loss margin of 108%. In C3.ai's defense, it is much smaller than Palantir and is still working to capture a massive generative AI opportunity management sees. However, it's a big concern with C3.ai that far in the hole.
Winner: Palantir
Palantir's dominance comes at a price
Palantir has clearly shown it's a much better business to invest in. But that doesn't come for free, as its stock trades at a premium to C3.ai.
AI PS Ratio data by YCharts
While 19 times sales isn't cheap for any software company, it's also a bit concerning because normally, that premium is reserved for companies growing their revenue by at least a 30% pace.
C3.ai's premium is a bit more reasonable, but for 12 times sales, many stocks are growing faster and are closer to breaking even.
Therefore, I'd caution all investors against taking a position in either Palantir or C3.ai, as they are priced for perfection and need growth acceleration to justify their current valuations.
However, if you need to buy one, Palantir is a much better investment than C3.ai.
Should you invest $1,000 in Palantir Technologies right now?
Before you buy stock in Palantir Technologies, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Palantir Technologies wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
See the 10 stocks
*Stock Advisor returns as of December 11, 2023
Keithen Drury has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Palantir Technologies. The Motley Fool recommends C3.ai. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The key difference between the two providers is that C3.ai's products are mostly pre-built for a specific purpose that can be easily deployed to tackle tasks like machine reliability, analyze supply chains, and improve energy efficiency. Palantir's software is highly adaptable to any situation, giving it a broader use case at the cost of employing specialized engineers. Therefore, I'd caution all investors against taking a position in either Palantir or C3.ai, as they are priced for perfection and need growth acceleration to justify their current valuations.
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Winner: Tie Palantir is growing faster despite its size Moving to finances, each is growing slightly slower than many AI investors might expect. PLTR Profit Margin (Quarterly) data by YCharts This is a huge win for the company, as it shows that management is serious about profits and has executed its plan to control expense growth. Before you buy stock in Palantir Technologies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Palantir Technologies wasn't one of them.
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C3.ai and Palantir are tackling different corners of the same market Both C3.ai and Palantir provide AI solutions for their clients, and each is a critical supplier to various government departments. Winner: Palantir Palantir's dominance comes at a price Palantir has clearly shown it's a much better business to invest in. Before you buy stock in Palantir Technologies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Palantir Technologies wasn't one of them.
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Winner: Tie Palantir is growing faster despite its size Moving to finances, each is growing slightly slower than many AI investors might expect. Winner: Palantir Palantir's dominance comes at a price Palantir has clearly shown it's a much better business to invest in. Before you buy stock in Palantir Technologies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Palantir Technologies wasn't one of them.
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ecbbd609-3a6a-4d9d-bea3-d50074ed39df
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711494.0
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2023-12-15 00:00:00 UTC
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5 Crypto-Centric Stocks to Buy for Stellar Returns in 2024
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https://www.nasdaq.com/articles/5-crypto-centric-stocks-to-buy-for-stellar-returns-in-2024
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The cryptocurrency market is likely to remain buoyant in the last two months of this year. The space regained momentum in the first seven months after a disappointing 2022. However, the crypto market remained rangebound from mid-September to mid-October as market participants remain concerned about the Fed’s policy prescriptions.
U.S. stock markets have soared amid a clear indication from the Fed’s December FOMC meeting 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, 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.
On Dec 14, the Atlanta Fed projected the 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 lower interest rate regime will be very helpful for high-growth sectors like technology and cryptocurrency. Meanwhile, the largest thrust for the crypto space has come from institutional investors.
Speculation that the Securities and Exchange Commission is set to approve a Bitcoin exchange-traded fund has also raised investors’ optimism. A plethora of recent crypto industry legal victories is likely spurring investor confidence.
On Nov 30, the SEC called for public opinion on a proposed rule change that will allow Fidelity Investments, an asset management giant, to list and trade shares of the Fidelity Ethereum Fund.
As a result, prices of major cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), Cardano (ADA), Dogecoin (DOGE) and BNB (BNB) are expected to remain buoyant in 2024. Last week, Bitcoin surged past the $44,000 mark and thereafter hovering around 42,000, for the first time since April 2022. This represents a year-over-year increase of 147% in the cryptocurrency’s value.
Our Top Picks
We have narrowed our search to five crypto-centric stocks with strong potential for 2024. Each of our picks carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The chart below shows the price performance of our five picks in the past three months.
Image Source: Zacks Investment Research
NVIDIA Corp. NVDA is a semiconductor industry giant and one of the biggest success stories of 2023. As a leading designer of graphic processing units (GPUs), the NVDA stock usually soars on a booming crypto market. This is because GPUs are pivotal to data centers, artificial intelligence, and the creation of crypto assets.
NVIDIA’s expected earnings growth rate for next year is 61.5 (ending January 2025). The Zacks Consensus Estimate for its nextt-year earnings has improved 18.4% over the last seven days.
Coinbase Global Inc. COIN provides financial infrastructure and technology for the crypto economy in the United States and internationally. COIN offers the primary financial account in the crypto space for consumers, a marketplace with a pool of liquidity for transacting in crypto assets for institutions; and technology and services that enable developers to build crypto-based applications and securely accept crypto assets as payment.
Coinbase Global has an expected earnings growth rate of 30.4% for next year. The Zacks Consensus Estimate for next-year earnings has improved 5.7% over the last seven days.
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 53.6% for next year. The Zacks Consensus Estimate for next-year earnings has improved 2.1% over the last 30 days.
Hut 8 Mining Corp. HUT has recently merged with US Bitcoin Corp to increase its total hash rate substantially. HUT aims to increase its total hash rate to 9.8 EH/s.
Hut 8 Mining has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for current-year earnings has improved more than 100% over the last 30 days.
Accenture plc ACN is a global system integrator that provides consulting, technology and other services, and markets Ethereum-based blockchain solutions to businesses to make it easier to process payments.
Accenture’s expected earnings growth rate for the current year is 4.6% (ending August 2024). The Zacks Consensus Estimate for its current-year earnings has improved by 0.1% over the last 30 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
Accenture PLC (ACN) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Block, Inc. (SQ) : Free Stock Analysis Report
Coinbase Global, Inc. (COIN) : Free Stock Analysis Report
Hut 8 Corp. (HUT) : 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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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. 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. Accenture plc ACN is a global system integrator that provides consulting, technology and other services, and markets Ethereum-based blockchain solutions to businesses to make it easier to process payments.
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You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. COIN offers the primary financial account in the crypto space for consumers, a marketplace with a pool of liquidity for transacting in crypto assets for institutions; and technology and services that enable developers to build crypto-based applications and securely accept crypto assets as payment. Click to get this free report Accenture PLC (ACN) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Block, Inc. (SQ) : Free Stock Analysis Report Coinbase Global, Inc. (COIN) : Free Stock Analysis Report Hut 8 Corp. (HUT) : Free Stock Analysis Report To read this article on Zacks.com click here.
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U.S. stock markets have soared amid a clear indication from the Fed’s December FOMC meeting 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, finally ended. COIN offers the primary financial account in the crypto space for consumers, a marketplace with a pool of liquidity for transacting in crypto assets for institutions; and technology and services that enable developers to build crypto-based applications and securely accept crypto assets as payment. Click to get this free report Accenture PLC (ACN) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Block, Inc. (SQ) : Free Stock Analysis Report Coinbase Global, Inc. (COIN) : Free Stock Analysis Report Hut 8 Corp. (HUT) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The cryptocurrency market is likely to remain buoyant in the last two months of this year. Each of our picks carries a Zacks Rank #2 (Buy). SQ is also one of the largest Bitcoin investors.
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2023-12-15 00:00:00 UTC
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3 Top Stocks Poised for a Comeback in 2024
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https://www.nasdaq.com/articles/3-top-stocks-poised-for-a-comeback-in-2024
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This year looks set to end with a bang, and plenty of stocks will finish as big winners. Led by big tech stocks known as the "Magnificent Seven," the S&P 500 is now up 23% for the year, while the Nasdaq Composite gained an incredible 42%. However, not every stock has surged this year. Let's take a look at three stocks that look set up for a recovery: Walt Disney (NYSE: DIS), Lyft (NASDAQ: LYFT), and Calavo Growers (NASDAQ: CVGW).
Image source: Getty Images.
1. Disney: Ready to return to building
A little more than a year ago, Bob Iger came out of retirement to replace Bob Chapek as CEO, the man who took over from Iger in 2020. Disney was in disarray, with its linear TV business stalling and losses piling up at its streaming business to the tune of more than $1 billion a quarter.
This year, Iger has been focused on cutting costs and reorganizing the company to put storytelling back at the center of the business and return to growth. It's been a tough year for the entertainment giant, and Iger has admitted more than once that repairing the business has been more difficult than expected.
However, Disney now looks ready to turn the corner after another rough year. The company recently reinstituted its dividend after pausing it during the pandemic, and Iger said the company was done fixing itself and ready to get back to building.
Indeed, the direct-to-consumer segment improved significantly and is on track to turn a profit by the end of the current fiscal year. Recent price hikes on Disney+ and the addition of the ad tier should help it move in that direction.
Additionally, the company aims to launch a streaming version of its flagship ESPN channel as soon as 2025, and its theme parks business remains a cash cow, which the company said it would double capital expenditures on, adding new worlds for fans of titles such as Frozen. The possibility is also there for asset sales that could help fund growth projects and pay down debt.
Just weeks ago, Disney stock was at a nine-year low, but the business is much larger than it was nine years ago. If management can show it's on a steady track back toward growth, the stock should be rewarded with a higher multiple.
2. Lyft: Profitability is in sight
Lyft (NASDAQ: LYFT) was a market laggard for much of the year, but the stock has soared in recent weeks, and more gains could be in store for 2024. Shares of rival Uber Techologies have taken off this year as the ride-sharing leader has delivered growing profits, solid growth, and gained admission to the S&P 500.
Lyft could be poised to follow in the footsteps of its larger rival, as the company has taken solid steps toward profitability based on generally accepted accounting principles (GAAP). In fact, it has reported an adjusted profit every quarter this year, and its GAAP loss was just $12.1 million in the third quarter.
In addition to aggressive layoffs and cost cuts to drive profitability, the company is also making smart moves that should help it grow the top line. Following in Uber's footsteps, Lyft launched in-app advertising, a smart way to monetize its digital real estate, and it introduced a new service called Women+ Connect, which enables women riders and drivers to request and prioritize matches with other women.
Lyft's growth has moderated over the years, but bookings and revenue were up 15% and 10%, respectively, in the third quarter, enough to expand margins. In addition, as a marketplace-based business, it should get more profitable as it scales.
Finally, the stock looks modestly valued at a forward P/E of 28 based on adjusted earnings. If its recovery continues, Lyft could soar next year.
3. Calavo Growers: Avocado prices are up, and savvy leadership is back
For much of its history, Calavo Growers (NASDAQ: CVGW), one of the world's largest producers of avocados, was a market-crushing stock. However, in recent years, the stock has pulled back, losing that premium as costs have ballooned and it's struggled with volatile avocado prices.
However, two main catalysts are already starting to drive a recovery in the stock. First, avocado prices have bounced off of lows in recent months, though they typically decline in the winter due to the growing season. That price recovery should help reverse a sharp decline in revenue, which fell 24% in the third quarter, ended in July.
The other reason to bet on a recovery at Calavo is the return of longtime CEO Lee Cole, who was brought back in to stabilize the business under its previous CEO. He's already having an impact on the business, as margins have improved considerably, with gross profit in the grown segment up 80% to $21.4 million even as revenue fell 30%.
If prices remain elevated, Cole's efficiency improvements could drive significant profits for Calavo, which could send the stock soaring in 2024.
Should you invest $1,000 in Walt Disney right now?
Before you buy stock in Walt Disney, 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 Walt Disney 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 Walt Disney. The Motley Fool has positions in and recommends Uber Technologies and Walt Disney. 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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This year, Iger has been focused on cutting costs and reorganizing the company to put storytelling back at the center of the business and return to growth. Shares of rival Uber Techologies have taken off this year as the ride-sharing leader has delivered growing profits, solid growth, and gained admission to the S&P 500. Lyft could be poised to follow in the footsteps of its larger rival, as the company has taken solid steps toward profitability based on generally accepted accounting principles (GAAP).
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Let's take a look at three stocks that look set up for a recovery: Walt Disney (NYSE: DIS), Lyft (NASDAQ: LYFT), and Calavo Growers (NASDAQ: CVGW). If prices remain elevated, Cole's efficiency improvements could drive significant profits for Calavo, which could send the stock soaring in 2024. Before you buy stock in Walt Disney, 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 Walt Disney wasn’t one of them.
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Let's take a look at three stocks that look set up for a recovery: Walt Disney (NYSE: DIS), Lyft (NASDAQ: LYFT), and Calavo Growers (NASDAQ: CVGW). Lyft: Profitability is in sight Lyft (NASDAQ: LYFT) was a market laggard for much of the year, but the stock has soared in recent weeks, and more gains could be in store for 2024. Before you buy stock in Walt Disney, 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 Walt Disney wasn’t one of them.
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Let's take a look at three stocks that look set up for a recovery: Walt Disney (NYSE: DIS), Lyft (NASDAQ: LYFT), and Calavo Growers (NASDAQ: CVGW). Disney: Ready to return to building A little more than a year ago, Bob Iger came out of retirement to replace Bob Chapek as CEO, the man who took over from Iger in 2020. In fact, it has reported an adjusted profit every quarter this year, and its GAAP loss was just $12.1 million in the third quarter.
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2023-12-15 00:00:00 UTC
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Looking for Stocks to Buy in 2024? Here are 3 Strong Picks
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DCOMP
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https://www.nasdaq.com/articles/looking-for-stocks-to-buy-in-2024-here-are-3-strong-picks
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nan
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Wall Street bulls finally got what they have been wishing for: a dovish Fed. Jay Powell and Co. gave the green light to market bulls last week when the world’s most important central bank signaled the possibility of three interest rate cuts in 2024.
The S&P 500 is closing in on new all-time highs and the market hasn’t even hit the official Santa Claus rally period.
Markets never go straight up, so investors should expect some sideways movement and selling in the coming weeks and months. But the stock market looks primed for a solid 2024 as the math on cash and bonds changes and more investors join the party, worried they might miss out on another prolonged rally.
Arista Networks (ANET)
Arista Networks is a networking infrastructure provider, with solutions that range from IP storage and big data to AI networking and beyond. ANET has more than 8,000+ cloud customers worldwide, including Microsoft (MSFT) and Meta (META). Arista Networks’ offerings are clearly at the cutting edge and critical when two global technology superpowers are huge customers.
ANET is projected to grow its sales by 34% in FY23 and 12% next year to climb from $4.38 billion in FY22 to $6.52 billion in FY24. This expected top-line growth follows 23% average revenue expansion over the past five years.
Image Source: Zacks Investment Research
The networking infrastructure firm’s adjusted earnings are projected to soar 43% this year and 10% higher next year. Arista Networks boosted its bottom-line outlook once again when it reported its Q3 results to help it grab a Zacks Rank #2 (Buy) and extend its impressive streak of upward earnings revisions.
Arista Networks shares have soared 1,600% during the last 10 years vs. the Zacks Tech sector’s 250%, Microsoft's 910% and Meta's 510%. This outperformance includes a 95% surge in 2023 that has it sitting at fresh all-time highs.
On the valuation side, ANET trades at a nearly 50% discount to its decade-long highs and not too far above its median. Arista Networks has an impressive balance sheet and Wall Street is high on the stock.
Shift4 Payments (FOUR)
Shift4 Payments is an integrated payment processing solutions leader that captures a Zacks Rank #1 (Strong Buy) right now. Shift4 Payments’ offerings span in-person and digital, helping run payment infrastructure across various industries. Shift4 Payments’ client list is strong, ranging from Hilton and to Little Caesars pizza.
FOUR’s end-to-end payment volume climbed 36% YoY in Q3 to $27.9 billion, with gross profit up 34%. Shift4 Payments has topped our quarterly EPS estimates by an average of 25% in the trailing four quarters, including a 17% Q3 beat.
Image Source: Zacks Investment Research
Shift4 Payments’ FY24 consensus earnings estimate is up 14% since its last report. FOUR’s adjusted EPS are projected to grow by 110% and 30%, respectively in FY23 and FY24 on 31% and 37% higher revenue that would see it expand from $727.5 million last year to $1.30 billion next year.
FOUR stock has climbed by 120% since its summer 2020 IP0. Shift4 Payments shares have surged 32% in 2023 to retake their 50-day and 200-day moving averages recently.
Despite the overall strength, Shift4 Payments trades 27% below its 2021 highs. FOUR also trades at a discount to the Zacks tech sector at 23.4X forward 12-month earnings, marking a 90% discount to its peaks. And its earnings outlook for FY24 and FY25 have continued to improve.
Copart, Inc. (CPRT)
Copart is an online vehicle auction powerhouse that attempts to bring together sellers to more than 750,000 members in over 190 countries. Copart’s platform helps process and sell vehicles to dealers, dismantlers, rebuilders, exporters, and the general public. Copart sells vehicles for insurance companies, banks, fleet operators, dealers, vehicle rental firms, individuals, and beyond. Copart’s growth has been steady and strong, averaging 18% sales expansion over the last seven years.
Copart’s revenue is projected to climb 10% this year and 8% next year to hit $4.59 billion. The company’s adjusted EPS are expected to surge 15% and 9%, respectively. Copart’s history of earnings beats is solid and its upward EPS revisions help it land a Zacks Rank #2 (Buy) at the moment.
Image Source: Zacks Investment Research
CPRT stock has soared 1,000% over the last 10 years to blow away the S&P 500’s 167%. Copart’s outperformance includes a 60% climb in 2023. The stock has pulled back after posting new records in late November, but it recently found support at its 50-day moving average.
On the valuation front, Copart trades at a 21% discount to its highs at 32.8X forward earnings. Copart’s balance sheet is also stellar, with $2.58 billion in cash and equivalents and $7.33 billion in total assets vs. $897 million in total liabilities.
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
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Copart, Inc. (CPRT) : Free Stock Analysis Report
Arista Networks, Inc. (ANET) : Free Stock Analysis Report
Shift4 Payments, Inc. (FOUR) : 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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Jay Powell and Co. gave the green light to market bulls last week when the world’s most important central bank signaled the possibility of three interest rate cuts in 2024. But the stock market looks primed for a solid 2024 as the math on cash and bonds changes and more investors join the party, worried they might miss out on another prolonged rally. Arista Networks boosted its bottom-line outlook once again when it reported its Q3 results to help it grab a Zacks Rank #2 (Buy) and extend its impressive streak of upward earnings revisions.
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Image Source: Zacks Investment Research The networking infrastructure firm’s adjusted earnings are projected to soar 43% this year and 10% higher next year. Copart’s history of earnings beats is solid and its upward EPS revisions help it land a Zacks Rank #2 (Buy) at the moment. Click to get this free report Microsoft Corporation (MSFT) : Free Stock Analysis Report Copart, Inc. (CPRT) : Free Stock Analysis Report Arista Networks, Inc. (ANET) : Free Stock Analysis Report Shift4 Payments, Inc. (FOUR) : 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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Image Source: Zacks Investment Research The networking infrastructure firm’s adjusted earnings are projected to soar 43% this year and 10% higher next year. Shift4 Payments (FOUR) Shift4 Payments is an integrated payment processing solutions leader that captures a Zacks Rank #1 (Strong Buy) right now. Click to get this free report Microsoft Corporation (MSFT) : Free Stock Analysis Report Copart, Inc. (CPRT) : Free Stock Analysis Report Arista Networks, Inc. (ANET) : Free Stock Analysis Report Shift4 Payments, Inc. (FOUR) : 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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Arista Networks shares have soared 1,600% during the last 10 years vs. the Zacks Tech sector’s 250%, Microsoft's 910% and Meta's 510%. Copart’s revenue is projected to climb 10% this year and 8% next year to hit $4.59 billion. The company’s adjusted EPS are expected to surge 15% and 9%, respectively.
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9d95eaf8-9210-463f-88ba-d36ef38d4b55
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711497.0
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2023-12-15 00:00:00 UTC
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Natural Gas Down for 6th Week As Mild Weather Curbs Demand
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https://www.nasdaq.com/articles/natural-gas-down-for-6th-week-as-mild-weather-curbs-demand
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The U.S. Energy Department's weekly inventory release showed that natural gas supplies decreased as expected. The neutral inventory numbers notwithstanding, futures settled with a sixth consecutive loss week over week, overwhelmed by high production and insipid weather-related demand.
In fact, the market hasn't been kind to natural gas in 2023, with the commodity trading considerably lower year to date and briefly breaking below the $2 threshold for the first time since 2020. At this time, we advise investors to focus on stocks like Range Resources RRC, Coterra Energy CTRA and Cheniere Energy LNG.
EIA Reports an In-Line Withdrawal
Stockpiles held in underground storage in the lower 48 states fell 55 billion cubic feet (Bcf) for the week ended Dec 8, tallying with the guidance of a survey conducted by S&P Global Commodity Insights. The decrease compared with the five-year (2018-2022) average net shrinkage of 81 Bcf and last year’s decline of 46 Bcf for the reported week.
The latest draw puts total natural gas stocks at 3,664 Bcf, which is 245 Bcf (7.2%) above the 2022 level and 260 Bcf (7.6%) higher than the five-year average.
The total supply of natural gas averaged 110.4 Bcf per day, down 0.3 Bcf per day on a weekly basis due to lower shipments from Canada, partly offset by a slight increase in dry production.
Meanwhile, daily consumption rose to 122.5 Bcf from 118.1 Bcf in the previous week, mainly reflecting strength in residential/commercial usage and higher power burn, to go with a pickup in deliveries to LNG export terminals.
Natural Gas Prices Finish Lower
Natural gas prices trended downward last week following the expected inventory decrease. Futures for January delivery — which slumped to a six-month low earlier in the week — ended Friday at $2.49 on the New York Mercantile Exchange, retreating some 3.5% from the previous week’s closing. The decrease in natural gas realization is the result of high supply and mild weather.
As is the norm with natural gas, changes in temperature and weather forecasts can lead to price swings. With mild weather across major parts of the United States during the early part of winter and forecasts of above-normal temperatures into the end of the year, usage of the commodity to generate electricity has taken a hit. In addition to this, natural gas is also under pressure from near-record output, with current inventory levels well above the year-ago figure and the five-year average.
Having said that, there are signs of curtailment in domestic volumes. According to energy services provider Baker Hughes, the U.S. natural gas rig count — a pointer to where production is headed — is down some 23% from last year. Industry observers believe this could set the stage for a pullback in near-term drilling and supplies.
Meanwhile, a stable demand catalyst in the form of continued strong LNG feedgas deliveries is supporting natural gas. LNG shipments for export from the United States have been elevated for months, reaching record levels due to environmental reasons and Europe’s endeavor to move away from its dependence on Russian natural gas supplies due to the war in Ukraine.
Final Thoughts
Following last week’s decrease, the natural gas market is down more than 44% so far this year. Based on several factors, the space is currently quite unpredictable and spooked by the sudden changes in weather and production patterns. As such, investors are clueless about what to do. As of now, the lingering uncertainty over the fuel means that they should preferably hold on to fundamentally strong stocks like Range Resources, Coterra Energy and Cheniere Energy.
Range Resources: RRC is a leading operator in the prolific Appalachian Basin — a premier natural gas play — with huge inventories of low-risk drilling sites that are likely to provide production for several decades. About 68% of the Zacks #3 Rank (Hold) company’s total output is natural gas.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Range Resources beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, with the average being 33.6%. Valued at around $7.2 billion, RRC has gained 12.7% in a year.
Coterra Energy: It is an independent upstream operator primarily engaged in the exploration, development and production of natural gas. Headquartered in Houston, TX, the firm owns some 183,000 net acres in the gas-producing Marcellus Shale of the Appalachian Basin. The Zacks Rank #3 company churned out an average of 2,204 million cubic feet on a daily basis from these assets in 2022.
Coterra beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 11.8%. Valued at around $18.9 billion, CTRA has edged up 1.6% in a year.
Cheniere Energy: Being the first company to receive regulatory approval to export LNG from its 2.6 billion cubic feet per day Sabine Pass terminal, Cheniere Energy certainly enjoys a distinct competitive advantage.
Cheniere Energy has a projected earnings growth rate of 602.3% for the current year. The Zacks Consensus Estimate for this #3 Ranked natural gas exporter’s 2023 earnings has been revised 17.3% upward over the past 60 days. LNG shares have gone up 8% in a year.
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
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
Range Resources Corporation (RRC) : Free Stock Analysis Report
Cheniere Energy, Inc. (LNG) : Free Stock Analysis Report
Coterra Energy Inc. (CTRA) : 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 fact, the market hasn't been kind to natural gas in 2023, with the commodity trading considerably lower year to date and briefly breaking below the $2 threshold for the first time since 2020. EIA Reports an In-Line Withdrawal Stockpiles held in underground storage in the lower 48 states fell 55 billion cubic feet (Bcf) for the week ended Dec 8, tallying with the guidance of a survey conducted by S&P Global Commodity Insights. Range Resources: RRC is a leading operator in the prolific Appalachian Basin — a premier natural gas play — with huge inventories of low-risk drilling sites that are likely to provide production for several decades.
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At this time, we advise investors to focus on stocks like Range Resources RRC, Coterra Energy CTRA and Cheniere Energy LNG. The total supply of natural gas averaged 110.4 Bcf per day, down 0.3 Bcf per day on a weekly basis due to lower shipments from Canada, partly offset by a slight increase in dry production. Click to get this free report Range Resources Corporation (RRC) : Free Stock Analysis Report Cheniere Energy, Inc. (LNG) : Free Stock Analysis Report Coterra Energy Inc. (CTRA) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The total supply of natural gas averaged 110.4 Bcf per day, down 0.3 Bcf per day on a weekly basis due to lower shipments from Canada, partly offset by a slight increase in dry production. Natural Gas Prices Finish Lower Natural gas prices trended downward last week following the expected inventory decrease. Click to get this free report Range Resources Corporation (RRC) : Free Stock Analysis Report Cheniere Energy, Inc. (LNG) : Free Stock Analysis Report Coterra Energy Inc. (CTRA) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The U.S. Energy Department's weekly inventory release showed that natural gas supplies decreased as expected. At this time, we advise investors to focus on stocks like Range Resources RRC, Coterra Energy CTRA and Cheniere Energy LNG. The total supply of natural gas averaged 110.4 Bcf per day, down 0.3 Bcf per day on a weekly basis due to lower shipments from Canada, partly offset by a slight increase in dry production.
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711498.0
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2023-12-15 00:00:00 UTC
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1 Wall Street Analyst Thinks Tesla Stock Will Crash Nearly 50%. Should You Wait to Buy the Dip?
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DCOMP
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https://www.nasdaq.com/articles/1-wall-street-analyst-thinks-tesla-stock-will-crash-nearly-50.-should-you-wait-to-buy-the
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There's been no shortage of news and interest surrounding electric vehicle (EV) leader Tesla (NASDAQ: TSLA) this year. The stock has more than doubled so far in 2023. But one Wall Street analyst thinks the stock is heading back down to near where it began the year.
A crash could be coming
On Friday, Guggenheim analyst Ronald Jewsikow raised his firm's price target for Tesla stock, but that doesn't mean he thinks it's a good buy. The new price target of $132 per share was bumped from $125 as Jewsikow acknowledged continued strong sales overseas and the likelihood that Tesla hits its 2023 global production target of 1.8 million EVs. But he still thinks the company is valued way too high. Jewsikow's price target represents a drop of 48% from Friday's closing price.
There's no denying that Tesla is valued with a high price-to-earnings (P/E) ratio. But there's another side to the Tesla story. That side was told by a different Wall Street analyst just one day before the Guggenheim report was released. Deutsche Bank analyst Emmanuel Rosner lowered his firm's price target on Tesla by $15 per share to $260, but still thinks it's a buy.
What should investors believe?
Rosner also thinks the company will reach its 2023 production guidance. He also agrees that there are risks ahead with potential headwinds for growth and earnings. So what gives?
The two analysts agree on the basics, but not the valuation. It comes down to what analysts see beyond the next year or two. That conundrum reflects how investors need to think about Tesla, too.
Rosner sees a new phase of growth coming when Tesla launches its next-generation platform. That could also mark a new slate of EV offerings to stir fresh demand. Lower interest rates could also help consumers decide they can afford to transition to an EV. Tesla also has a burgeoning energy storage business and continues to expand its charging network and battery production. Investors who see those ancillary businesses continuing to grow along with EV sales over the long term might agree with Rosner that Tesla can still be a profitable stock to buy now.
Where to invest $1,000 right now
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See the 10 stocks
*Stock Advisor returns as of December 11, 2023
Howard Smith has positions in Tesla. The Motley Fool has positions in and recommends 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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A crash could be coming On Friday, Guggenheim analyst Ronald Jewsikow raised his firm's price target for Tesla stock, but that doesn't mean he thinks it's a good buy. Deutsche Bank analyst Emmanuel Rosner lowered his firm's price target on Tesla by $15 per share to $260, but still thinks it's a buy. Investors who see those ancillary businesses continuing to grow along with EV sales over the long term might agree with Rosner that Tesla can still be a profitable stock to buy now.
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But one Wall Street analyst thinks the stock is heading back down to near where it began the year. A crash could be coming On Friday, Guggenheim analyst Ronald Jewsikow raised his firm's price target for Tesla stock, but that doesn't mean he thinks it's a good buy. Deutsche Bank analyst Emmanuel Rosner lowered his firm's price target on Tesla by $15 per share to $260, but still thinks it's a buy.
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A crash could be coming On Friday, Guggenheim analyst Ronald Jewsikow raised his firm's price target for Tesla stock, but that doesn't mean he thinks it's a good buy. Deutsche Bank analyst Emmanuel Rosner lowered his firm's price target on Tesla by $15 per share to $260, but still thinks it's a buy. Investors who see those ancillary businesses continuing to grow along with EV sales over the long term might agree with Rosner that Tesla can still be a profitable stock to buy now.
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Deutsche Bank analyst Emmanuel Rosner lowered his firm's price target on Tesla by $15 per share to $260, but still thinks it's a buy. It comes down to what analysts see beyond the next year or two. Investors who see those ancillary businesses continuing to grow along with EV sales over the long term might agree with Rosner that Tesla can still be a profitable stock to buy now.
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711499.0
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2023-12-15 00:00:00 UTC
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Chevron (CVX) at Odds With California Goals, Cuts Investment
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DCOMP
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https://www.nasdaq.com/articles/chevron-cvx-at-odds-with-california-goals-cuts-investment
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U.S. supermajor Chevron Corporation CVX is making significant cutbacks in its oil-refinery investments in California, citing what it deems as "adversarial" policies toward fossil fuels in the state. The San Francisco Bay area-based oil giant has cut spending in California by "hundreds of millions of dollars since 2022," according to comments submitted to the California Energy Commission.
Chevron, a major supplier of jet fuel to airports in San Francisco and Los Angeles, says it's doing this because of the tough business environment and not making enough profit due to California's strict fuel standards and carbon cap-and-trade program.
Chevron Blames California Policies
Chevron's decision to cut spending comes amid California lawmakers' considerations to limit profits for refiners within the state. This move could affect the already high prices at gas pumps in California. Governor Gavin Newsom has ambitious environmental goals, aiming for an 85% reduction in climate-damaging emissions by 2045.
Despite these goals, Chevron argues that California's policies, including a recent law allowing the California Energy Commission to set a maximum gasoline refining margin, have made it difficult for them to invest in the state. Chevron's president, Andy Walz, says that strict rules on investment have severely limited refiners' ability to respond to higher prices.
Impact on Renewable Fuels
Chevron is not only worried about traditional refining but also about the renewable fuels sector. The company believes that the state's proposed profit margin cap will limit investments in renewable fuels. While other refiners in California are spending a lot on converting to renewable diesel, Chevron sees the margin cap as something that might discourage overall investment by energy companies in the state. In a letter to the California Energy Commission, Walz warns that a margin penalty will not only reduce investment in gasoline but also slow down the growth of renewable energy investments in California.
California's Energy Landscape
California's ambitious climate targets, such as a 94% reduction in gasoline demand by 2045, have encouraged investments in eco-friendly options like renewable diesel and biodiesel. However, Chevron's recent reduction in spending underscores the difficulties faced by companies in a state with stringent environmental rules. Despite progress in adopting electric vehicles and decreasing traditional diesel use, California still leads in jet fuel consumption and ranks second in gasoline usage in the United States. The state's pump prices, usually the highest nationwide, have been 35% above average this year.
Zacks Rank & Stock Picks
Chevron is one of the largest publicly traded oil and gas companies in the world, with operations that span almost every corner of the globe. The company carries a Zacks Rank #3 (Hold) at present.
Meanwhile, investors interested in the energy sector might look at operators like Murphy USA MUSA, EOG Resources EOG and Liberty Energy LBRT, each currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Murphy USA: Murphy USA beat the Zacks Consensus Estimate for earnings in two of the trailing four quarters and missed in the other two. It has a trailing four-quarter earnings surprise of 7%, on average.
Murphy USA is valued at around $7.7 billion. The company has seen its shares gain 25.1% in a year.
EOG Resources: EOG Resources beat the Zacks Consensus Estimate for earnings in three of the last four quarters and missed in the other. EOG has a trailing four-quarter earnings surprise of 9.2%, on average.
EOG is valued at around $69.1 billion. The company has seen its shares drop 4.1% in a year.
Liberty Energy: The 2023 Zacks Consensus Estimate for LBRT indicates 52.1% year-over-year earnings per share growth.
Liberty Energy is valued at around $3 billion. LBRT has seen its shares rise 18.8% in a year.
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
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
Chevron Corporation (CVX) : Free Stock Analysis Report
EOG Resources, Inc. (EOG) : Free Stock Analysis Report
Murphy USA Inc. (MUSA) : 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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U.S. supermajor Chevron Corporation CVX is making significant cutbacks in its oil-refinery investments in California, citing what it deems as "adversarial" policies toward fossil fuels in the state. While other refiners in California are spending a lot on converting to renewable diesel, Chevron sees the margin cap as something that might discourage overall investment by energy companies in the state. Despite progress in adopting electric vehicles and decreasing traditional diesel use, California still leads in jet fuel consumption and ranks second in gasoline usage in the United States.
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Meanwhile, investors interested in the energy sector might look at operators like Murphy USA MUSA, EOG Resources EOG and Liberty Energy LBRT, each currently carrying a Zacks Rank #2 (Buy). Murphy USA: Murphy USA beat the Zacks Consensus Estimate for earnings in two of the trailing four quarters and missed in the other two. Click to get this free report Chevron Corporation (CVX) : Free Stock Analysis Report EOG Resources, Inc. (EOG) : Free Stock Analysis Report Murphy USA Inc. (MUSA) : 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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In a letter to the California Energy Commission, Walz warns that a margin penalty will not only reduce investment in gasoline but also slow down the growth of renewable energy investments in California. Meanwhile, investors interested in the energy sector might look at operators like Murphy USA MUSA, EOG Resources EOG and Liberty Energy LBRT, each currently carrying a Zacks Rank #2 (Buy). Click to get this free report Chevron Corporation (CVX) : Free Stock Analysis Report EOG Resources, Inc. (EOG) : Free Stock Analysis Report Murphy USA Inc. (MUSA) : 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 state's pump prices, usually the highest nationwide, have been 35% above average this year. Meanwhile, investors interested in the energy sector might look at operators like Murphy USA MUSA, EOG Resources EOG and Liberty Energy LBRT, each currently carrying a Zacks Rank #2 (Buy). Liberty Energy: The 2023 Zacks Consensus Estimate for LBRT indicates 52.1% year-over-year earnings per share growth.
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99c10d45-2610-446b-b8a3-1a5d38eb3147
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