Unnamed: 0
stringlengths 3
8
| Date
stringlengths 23
23
| Article_title
stringlengths 1
250
| Stock_symbol
stringlengths 1
5
| Url
stringlengths 44
135
| Publisher
stringclasses 1
value | Author
stringclasses 1
value | Article
stringlengths 1
343k
| Lsa_summary
stringlengths 3
53.9k
| Luhn_summary
stringlengths 1
53.9k
| Textrank_summary
stringlengths 1
53.9k
| Lexrank_summary
stringlengths 1
53.9k
| uuid
stringlengths 36
36
|
|---|---|---|---|---|---|---|---|---|---|---|---|---|
711900.0
|
2023-12-13 00:00:00 UTC
|
Expedia (EXPE) Registers a Bigger Fall Than the Market: Important Facts to Note
|
DCOMP
|
https://www.nasdaq.com/articles/expedia-expe-registers-a-bigger-fall-than-the-market%3A-important-facts-to-note
|
nan
|
nan
|
In the latest trading session, Expedia (EXPE) closed at $145.99, marking a -0.57% move from the previous day. The stock's change was less than the S&P 500's daily loss of 0.01%. Elsewhere, the Dow gained 0.15%, while the tech-heavy Nasdaq added 0.36%.
Heading into today, shares of the online travel company had gained 13.1% over the past month, outpacing the Retail-Wholesale sector's gain of 4.42% and the S&P 500's gain of 5.21% in that time.
The investment community will be closely monitoring the performance of Expedia in its forthcoming earnings report. The company is forecasted to report an EPS of $1.66, showcasing a 31.75% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $2.88 billion, indicating a 10.1% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $9.63 per share and a revenue of $12.83 billion, demonstrating changes of +41.83% and +10.01%, respectively, from the preceding year.
Any recent changes to analyst estimates for Expedia should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 0.88% higher within the past month. Expedia is holding a Zacks Rank of #2 (Buy) right now.
Valuation is also important, so investors should note that Expedia has a Forward P/E ratio of 15.26 right now. This valuation marks a discount compared to its industry's average Forward P/E of 22.88.
We can also see that EXPE currently has a PEG ratio of 0.6. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Internet - Commerce industry had an average PEG ratio of 0.62.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 35, which puts it in the top 14% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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
Expedia Group, Inc. (EXPE) : 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.
|
Meanwhile, the latest consensus estimate predicts the revenue to be $2.88 billion, indicating a 10.1% increase compared to the same quarter of the previous year. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
|
In the latest trading session, Expedia (EXPE) closed at $145.99, marking a -0.57% move from the previous day. The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Click to get this free report Expedia Group, Inc. (EXPE) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
This industry currently has a Zacks Industry Rank of 35, which puts it in the top 14% of all 250+ industries. The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
|
In the latest trading session, Expedia (EXPE) closed at $145.99, marking a -0.57% move from the previous day. Heading into today, shares of the online travel company had gained 13.1% over the past month, outpacing the Retail-Wholesale sector's gain of 4.42% and the S&P 500's gain of 5.21% in that time. Such recent modifications usually signify the changing landscape of near-term business trends.
|
45a54be8-b922-4ac1-83df-b98bd093284d
|
711901.0
|
2023-12-13 00:00:00 UTC
|
Integer Holdings (ITGR) Hits 52-Week High: What's Aiding It?
|
DCOMP
|
https://www.nasdaq.com/articles/integer-holdings-itgr-hits-52-week-high%3A-whats-aiding-it-0
|
nan
|
nan
|
Shares of Integer Holdings Corporation ITGR scaled a new 52-week high of $96.55 on Dec 12, before closing the session slightly lower at $94.29.
Over the past year, this Zacks Rank #1 (Strong Buy) stock has gained 33.9% against a 6.3% decline of the industry. The S&P 500 has witnessed 16.6% growth in the said time frame.
Over the past five years, the company registered earnings growth of 4.8% compared with the industry’s 4% rise. The company’s long-term expected growth rate of 15.8% compares with the industry’s growth projection of 13.3%. Integer Holdings’ earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 11.9%.
Image Source: Zacks Investment Research
Integer Holdings is witnessing an upward trend in its stock price, prompted by its research and product development activities. The optimism led by a solid third-quarter 2023 performance and its solid foothold in the broader MedTech space are expected to contribute further. However, dependence on third-party suppliers and global climate change-related troubles continue to concern the company.
Let’s delve deeper.
Key Growth Drivers
Research and Product Development: Investors are optimistic about Integer Holdings’ position as a developer and manufacturer of medical devices and components. The company is focused on developing new products, improving and enhancing existing products and expanding the use of its products in new or tangential applications. In addition to ITGR’s internal technology and capability development efforts aimed at providing its customers with differentiated solutions, the company engages outside research institutions for unique technology projects.
Solid Foothold in the Broader MedTech Space: Investors are optimistic about Integer Holdings’ stable footing in the cardiac, neuromodulation, orthopedics, vascular and advanced surgical markets. Its primary customers include large, multi-national original equipment manufacturers and their affiliated subsidiaries.
ITGR is focused on sales efforts to increase its market penetration in the Cardio & Vascular, Neuromodulation and Non-Medical Electrochem markets. The company is undertaking strategic initiatives to maintain its leadership position in the cardiac rhythm management market.
Strong Q3 Results: Integer Holdings’ robust third-quarter 2023 results raise optimism. The company registered year-over-year top-line and bottom-line performances. The Medical segment recorded robust results owing to strength in the majority of its product lines. The expansion of both margins bodes well.
Downsides
Global Climate Change: Customer, investor and employee expectations relating to environmental, social and governance (ESG) have been rapidly evolving and increasing. Also, government organizations are enhancing or advancing legal and regulatory requirements specific to ESG matters. The heightened stakeholder focus on ESG issues related to ITGR’s business requires the continuous monitoring of various and evolving laws, regulations, standards and expectations and the associated reporting requirements. A failure to adequately meet stakeholders’ expectations may result in non-compliance, loss of business and reduced demand for Integer Holdings’ stock, among others.
Dependence on Third-Party Suppliers: Integer Holdings’ business depends on a continuous supply of raw materials, which may be susceptible to fluctuations due to transportation issues, government regulations and price controls, among others. Significant increases in the cost of raw materials, which cannot be recovered through increases in the prices of the company’s products, could adversely affect its operating results.
Other Key Picks
A few other top-ranked stocks in the broader medical space are DaVita Inc. DVA, HealthEquity, Inc. HQY and DexCom, Inc. DXCM.
DaVita, sporting a Zacks Rank #1, has an estimated long-term growth rate of 18.3%. DVA’s earnings surpassed estimates in all the trailing four quarters, with an average surprise of 36.6%. You can see the complete list of today’s Zacks #1 Rank stocks here.
DaVita’s shares have gained 45.2% compared with the industry’s 5.3% rise in the past year.
HealthEquity, carrying a Zacks Rank of 2 (Buy) at present, has an estimated long-term growth rate of 27.5%. HQY’s earnings surpassed estimates in all the trailing four quarters, with an average of 16.5%.
HealthEquity has gained 10.9% against the industry’s 10.8% decline over the past year.
DexCom, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 33.6%. DXCM’s earnings surpassed estimates in all the trailing four quarters, with an average of 36.4%.
DexCom’s shares have lost 1.9% compared with the industry’s 6.3% decline in the past year.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How To Profit From Trillions On Spending For Infrastructure >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
DaVita Inc. (DVA) : Free Stock Analysis Report
DexCom, Inc. (DXCM) : Free Stock Analysis Report
HealthEquity, Inc. (HQY) : Free Stock Analysis Report
Integer Holdings Corporation (ITGR) : Free Stock Analysis Report
To read this article on Zacks.com click here.
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.
|
Solid Foothold in the Broader MedTech Space: Investors are optimistic about Integer Holdings’ stable footing in the cardiac, neuromodulation, orthopedics, vascular and advanced surgical markets. Downsides Global Climate Change: Customer, investor and employee expectations relating to environmental, social and governance (ESG) have been rapidly evolving and increasing. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
|
Key Growth Drivers Research and Product Development: Investors are optimistic about Integer Holdings’ position as a developer and manufacturer of medical devices and components. Other Key Picks A few other top-ranked stocks in the broader medical space are DaVita Inc. DVA, HealthEquity, Inc. HQY and DexCom, Inc. DXCM. Click to get this free report DaVita Inc. (DVA) : Free Stock Analysis Report DexCom, Inc. (DXCM) : Free Stock Analysis Report HealthEquity, Inc. (HQY) : Free Stock Analysis Report Integer Holdings Corporation (ITGR) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
Image Source: Zacks Investment Research Integer Holdings is witnessing an upward trend in its stock price, prompted by its research and product development activities. Key Growth Drivers Research and Product Development: Investors are optimistic about Integer Holdings’ position as a developer and manufacturer of medical devices and components. Click to get this free report DaVita Inc. (DVA) : Free Stock Analysis Report DexCom, Inc. (DXCM) : Free Stock Analysis Report HealthEquity, Inc. (HQY) : Free Stock Analysis Report Integer Holdings Corporation (ITGR) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
Over the past five years, the company registered earnings growth of 4.8% compared with the industry’s 4% rise. The company’s long-term expected growth rate of 15.8% compares with the industry’s growth projection of 13.3%. Download FREE: How To Profit From Trillions On Spending For Infrastructure >> Want the latest recommendations from Zacks Investment Research?
|
234960a1-f404-4bb4-8e7f-a2a2afd6b793
|
711902.0
|
2023-12-13 00:00:00 UTC
|
Duke Energy (DUK) Declines More Than Market: Some Information for Investors
|
DCOMP
|
https://www.nasdaq.com/articles/duke-energy-duk-declines-more-than-market%3A-some-information-for-investors
|
nan
|
nan
|
Duke Energy (DUK) closed the most recent trading day at $96.63, moving -1.71% from the previous trading session. The stock's change was less than the S&P 500's daily loss of 0.01%. Meanwhile, the Dow gained 0.15%, and the Nasdaq, a tech-heavy index, added 0.36%.
The electric utility's shares have seen an increase of 9.02% over the last month, surpassing the Utilities sector's gain of 5.98% and the S&P 500's gain of 5.21%.
The upcoming earnings release of Duke Energy will be of great interest to investors. The company is predicted to post an EPS of $1.56, indicating a 40.54% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.55 billion, up 2.7% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5.59 per share and revenue of $29.45 billion. These totals would mark changes of +6.07% and +1.08%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Duke Energy. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.09% upward. As of now, Duke Energy holds a Zacks Rank of #3 (Hold).
In terms of valuation, Duke Energy is currently trading at a Forward P/E ratio of 17.59. This represents a premium compared to its industry's average Forward P/E of 16.41.
It is also worth noting that DUK currently has a PEG ratio of 2.89. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Utility - Electric Power industry stood at 2.93 at the close of the market yesterday.
The Utility - Electric Power industry is part of the Utilities sector. This industry, currently bearing a Zacks Industry Rank of 71, finds itself in the top 29% echelons of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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
Duke Energy Corporation (DUK) : 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.
|
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5.59 per share and revenue of $29.45 billion. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
|
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5.59 per share and revenue of $29.45 billion. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Click to get this free report Duke Energy Corporation (DUK) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
This industry, currently bearing a Zacks Industry Rank of 71, finds itself in the top 29% echelons of all 250+ industries. The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
|
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5.59 per share and revenue of $29.45 billion. The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Free: See Our Top Stock and 4 Runners Up >> Want the latest recommendations from Zacks Investment Research?
|
088e22e6-b312-4219-8f78-cb48f8c35c22
|
711903.0
|
2023-12-13 00:00:00 UTC
|
Activision to pay $50 mln to settle workplace discrimination lawsuit
|
DCOMP
|
https://www.nasdaq.com/articles/activision-to-pay-%2450-mln-to-settle-workplace-discrimination-lawsuit
|
nan
|
nan
|
Adds details of revised allegations, paragraph 3
Dec 15 (Reuters) - Activision Blizzard will pay roughly $50 million to settle a 2021 lawsuit by a California regulator that alleged the videogame maker discriminated against women employees, including denying them promotion opportunities and underpaying them.
California's Civil Rights Department (CRD) had sued the "Call of Duty" maker after two years of investigation over allegations that it routinely underpaid and failed to promote female employees and condoned sexual harassment.
The CRD will withdraw the allegations of systemic sexual harassment, according to the settlement agreement, seen by Reuters. The remaining allegations resolved by the agreement included that Activision discriminated against women, including by denying promotion opportunities and paying them less than men for doing substantially similar work, the CRD said in a statement on Friday.
Activision will take additional steps to ensure fair pay and promotion practices and provide monetary relief to women who were employees or contract workers in California between Oct. 12, 2015, and Dec. 31, 2020, as part of the agreement, which is subject to court approval, the CRD statement said.
"In the settlement agreement, the CRD expressly acknowledged that 'no court or independent investigation has substantiated any allegations that there has been systemic or widespread sexual harassment at Activision Blizzard'," the videogame maker said in a statement on Friday.
The company also said that no investigation substantiated that its board or chief executive acted improperly in handling instances of workplace misconduct.
Activision, which was bought in October by MicrosoftMSFT.O for nearly $69 billion, agreed in 2021 to pay up to $18 million to settle similar claims made by the Equal Employment Opportunity Commission.
(Reporting by Arsheeya Bajwa in Bengaluru and Daniel Wiessner in Albany, New York; Editing by Sayantani Ghosh, Grant McCool, Leslie Adler and William Mallard)
((ArsheeyaSingh.Bajwa@thomsonreuters.com; +91 8510015800;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
California's Civil Rights Department (CRD) had sued the "Call of Duty" maker after two years of investigation over allegations that it routinely underpaid and failed to promote female employees and condoned sexual harassment. Activision will take additional steps to ensure fair pay and promotion practices and provide monetary relief to women who were employees or contract workers in California between Oct. 12, 2015, and Dec. 31, 2020, as part of the agreement, which is subject to court approval, the CRD statement said. "In the settlement agreement, the CRD expressly acknowledged that 'no court or independent investigation has substantiated any allegations that there has been systemic or widespread sexual harassment at Activision Blizzard'," the videogame maker said in a statement on Friday.
|
Adds details of revised allegations, paragraph 3 Dec 15 (Reuters) - Activision Blizzard will pay roughly $50 million to settle a 2021 lawsuit by a California regulator that alleged the videogame maker discriminated against women employees, including denying them promotion opportunities and underpaying them. The remaining allegations resolved by the agreement included that Activision discriminated against women, including by denying promotion opportunities and paying them less than men for doing substantially similar work, the CRD said in a statement on Friday. "In the settlement agreement, the CRD expressly acknowledged that 'no court or independent investigation has substantiated any allegations that there has been systemic or widespread sexual harassment at Activision Blizzard'," the videogame maker said in a statement on Friday.
|
Adds details of revised allegations, paragraph 3 Dec 15 (Reuters) - Activision Blizzard will pay roughly $50 million to settle a 2021 lawsuit by a California regulator that alleged the videogame maker discriminated against women employees, including denying them promotion opportunities and underpaying them. The remaining allegations resolved by the agreement included that Activision discriminated against women, including by denying promotion opportunities and paying them less than men for doing substantially similar work, the CRD said in a statement on Friday. "In the settlement agreement, the CRD expressly acknowledged that 'no court or independent investigation has substantiated any allegations that there has been systemic or widespread sexual harassment at Activision Blizzard'," the videogame maker said in a statement on Friday.
|
Adds details of revised allegations, paragraph 3 Dec 15 (Reuters) - Activision Blizzard will pay roughly $50 million to settle a 2021 lawsuit by a California regulator that alleged the videogame maker discriminated against women employees, including denying them promotion opportunities and underpaying them. Activision will take additional steps to ensure fair pay and promotion practices and provide monetary relief to women who were employees or contract workers in California between Oct. 12, 2015, and Dec. 31, 2020, as part of the agreement, which is subject to court approval, the CRD statement said. "In the settlement agreement, the CRD expressly acknowledged that 'no court or independent investigation has substantiated any allegations that there has been systemic or widespread sexual harassment at Activision Blizzard'," the videogame maker said in a statement on Friday.
|
57e54fc0-4a0e-4a52-b7d7-ae467170d93f
|
711904.0
|
2023-12-13 00:00:00 UTC
|
Blackstone Inc. (BX) Increases Despite Market Slip: Here's What You Need to Know
|
DCOMP
|
https://www.nasdaq.com/articles/blackstone-inc.-bx-increases-despite-market-slip%3A-heres-what-you-need-to-know
|
nan
|
nan
|
In the latest trading session, Blackstone Inc. (BX) closed at $129.37, marking a +0.7% move from the previous day. The stock's performance was ahead of the S&P 500's daily loss of 0.01%. Elsewhere, the Dow saw an upswing of 0.15%, while the tech-heavy Nasdaq appreciated by 0.36%.
Shares of the investment manager have appreciated by 23.89% over the course of the past month, outperforming the Finance sector's gain of 8.98% and the S&P 500's gain of 5.21%.
Analysts and investors alike will be keeping a close eye on the performance of Blackstone Inc. in its upcoming earnings disclosure. The company is predicted to post an EPS of $1.04, indicating a 2.8% decline compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.55 billion, up 8.86% from the year-ago period.
BX's full-year Zacks Consensus Estimates are calling for earnings of $3.87 per share and revenue of $9.71 billion. These results would represent year-over-year changes of -25.15% and -22.89%, respectively.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Blackstone Inc. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there's been a 0.91% fall in the Zacks Consensus EPS estimate. Right now, Blackstone Inc. possesses a Zacks Rank of #5 (Strong Sell).
In the context of valuation, Blackstone Inc. is at present trading with a Forward P/E ratio of 33.22. Its industry sports an average Forward P/E of 10.42, so one might conclude that Blackstone Inc. is trading at a premium comparatively.
Investors should also note that BX has a PEG ratio of 3.16 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The average PEG ratio for the Financial - Miscellaneous Services industry stood at 1.15 at the close of the market yesterday.
The Financial - Miscellaneous Services industry is part of the Finance sector. With its current Zacks Industry Rank of 144, this industry ranks in the bottom 43% of all industries, numbering over 250.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow BX in the coming trading sessions, be sure to utilize Zacks.com.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Blackstone Inc. (BX) : 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.
|
To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system. The average PEG ratio for the Financial - Miscellaneous Services industry stood at 1.15 at the close of the market yesterday. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
|
In the latest trading session, Blackstone Inc. (BX) closed at $129.37, marking a +0.7% move from the previous day. The average PEG ratio for the Financial - Miscellaneous Services industry stood at 1.15 at the close of the market yesterday. Click to get this free report Blackstone Inc. (BX) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
With its current Zacks Industry Rank of 144, this industry ranks in the bottom 43% of all industries, numbering over 250. The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
|
In the latest trading session, Blackstone Inc. (BX) closed at $129.37, marking a +0.7% move from the previous day. With its current Zacks Industry Rank of 144, this industry ranks in the bottom 43% of all industries, numbering over 250. Free: See Our Top Stock and 4 Runners Up >> Want the latest recommendations from Zacks Investment Research?
|
fd9a05a0-b6e6-454d-8f3b-f9544c6ac31e
|
711905.0
|
2023-12-13 00:00:00 UTC
|
Siemens AG (SIEGY) Sees a More Significant Dip Than Broader Market: Some Facts to Know
|
DCOMP
|
https://www.nasdaq.com/articles/siemens-ag-siegy-sees-a-more-significant-dip-than-broader-market%3A-some-facts-to-know-0
|
nan
|
nan
|
The most recent trading session ended with Siemens AG (SIEGY) standing at $90.54, reflecting a -0.51% shift from the previouse trading day's closing. The stock fell short of the S&P 500, which registered a loss of 0.01% for the day. At the same time, the Dow added 0.15%, and the tech-heavy Nasdaq gained 0.36%.
Shares of the company witnessed a gain of 14.15% over the previous month, beating the performance of the Industrial Products sector with its gain of 8.56% and the S&P 500's gain of 5.21%.
Market participants will be closely following the financial results of Siemens AG in its upcoming release.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.34 per share and a revenue of $85.19 billion, indicating changes of +0.95% and +1.78%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for Siemens AG. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.46% higher within the past month. Right now, Siemens AG possesses a Zacks Rank of #3 (Hold).
Investors should also note Siemens AG's current valuation metrics, including its Forward P/E ratio of 17.04. For comparison, its industry has an average Forward P/E of 15.91, which means Siemens AG is trading at a premium to the group.
It's also important to note that SIEGY currently trades at a PEG ratio of 3.12. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Industrial Services industry held an average PEG ratio of 1.18.
The Industrial Services industry is part of the Industrial Products sector. With its current Zacks Industry Rank of 176, this industry ranks in the bottom 31% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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
Siemens AG (SIEGY) : 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.
|
To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system. Investors should also note Siemens AG's current valuation metrics, including its Forward P/E ratio of 17.04. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
|
The most recent trading session ended with Siemens AG (SIEGY) standing at $90.54, reflecting a -0.51% shift from the previouse trading day's closing. The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Click to get this free report Siemens AG (SIEGY) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
With its current Zacks Industry Rank of 176, this industry ranks in the bottom 31% of all industries, numbering over 250. The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
|
Investors should also note Siemens AG's current valuation metrics, including its Forward P/E ratio of 17.04. With its current Zacks Industry Rank of 176, this industry ranks in the bottom 31% of all industries, numbering over 250. Free: See Our Top Stock and 4 Runners Up >> Want the latest recommendations from Zacks Investment Research?
|
00639f84-81fb-48d3-b96c-dd8cb3f0b1c0
|
711906.0
|
2023-12-13 00:00:00 UTC
|
Dow Inc. (DOW) Ascends While Market Falls: Some Facts to Note
|
DCOMP
|
https://www.nasdaq.com/articles/dow-inc.-dow-ascends-while-market-falls%3A-some-facts-to-note
|
nan
|
nan
|
Dow Inc. (DOW) closed at $54.24 in the latest trading session, marking a +0.02% move from the prior day. This move outpaced the S&P 500's daily loss of 0.01%. On the other hand, the Dow registered a gain of 0.15%, and the technology-centric Nasdaq increased by 0.36%.
The the stock of materials science has risen by 5.42% in the past month, lagging the Basic Materials sector's gain of 7.1% and overreaching the S&P 500's gain of 5.21%.
The investment community will be closely monitoring the performance of Dow Inc. in its forthcoming earnings report. The company is scheduled to release its earnings on January 25, 2024. The company is predicted to post an EPS of $0.39, indicating a 15.22% decline compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $10.36 billion, down 12.63% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $2.22 per share and revenue of $44.36 billion, which would represent changes of -64.48% and -22.05%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Dow Inc. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.19% higher within the past month. Dow Inc. is holding a Zacks Rank of #3 (Hold) right now.
From a valuation perspective, Dow Inc. is currently exchanging hands at a Forward P/E ratio of 24.48. This indicates a premium in contrast to its industry's Forward P/E of 17.04.
We can also see that DOW currently has a PEG ratio of 4.9. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Chemical - Diversified was holding an average PEG ratio of 2.43 at yesterday's closing price.
The Chemical - Diversified industry is part of the Basic Materials sector. Currently, this industry holds a Zacks Industry Rank of 231, positioning it in the bottom 9% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
The company is predicted to post an EPS of $0.39, indicating a 15.22% decline compared to the equivalent quarter last year. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
|
Dow Inc. (DOW) closed at $54.24 in the latest trading session, marking a +0.02% move from the prior day. For the full year, the Zacks Consensus Estimates are projecting earnings of $2.22 per share and revenue of $44.36 billion, which would represent changes of -64.48% and -22.05%, respectively, from the prior year. Click to get this free report Dow Inc. (DOW) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
For the full year, the Zacks Consensus Estimates are projecting earnings of $2.22 per share and revenue of $44.36 billion, which would represent changes of -64.48% and -22.05%, respectively, from the prior year. Currently, this industry holds a Zacks Industry Rank of 231, positioning it in the bottom 9% of all 250+ industries. The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups.
|
Dow Inc. (DOW) closed at $54.24 in the latest trading session, marking a +0.02% move from the prior day. For the full year, the Zacks Consensus Estimates are projecting earnings of $2.22 per share and revenue of $44.36 billion, which would represent changes of -64.48% and -22.05%, respectively, from the prior year. The Zacks Consensus EPS estimate has moved 0.19% higher within the past month.
|
004ac589-b854-492e-88d8-54195f6038a0
|
711907.0
|
2023-12-13 00:00:00 UTC
|
Applied Digital Corporation (APLD) Sees a More Significant Dip Than Broader Market: Some Facts to Know
|
DCOMP
|
https://www.nasdaq.com/articles/applied-digital-corporation-apld-sees-a-more-significant-dip-than-broader-market%3A-some
|
nan
|
nan
|
The most recent trading session ended with Applied Digital Corporation (APLD) standing at $6.51, reflecting a -0.76% shift from the previouse trading day's closing. The stock fell short of the S&P 500, which registered a loss of 0.01% for the day. At the same time, the Dow added 0.15%, and the tech-heavy Nasdaq gained 0.36%.
Shares of the company witnessed a gain of 53.27% over the previous month, beating the performance of the Finance sector with its gain of 8.98% and the S&P 500's gain of 5.21%.
Market participants will be closely following the financial results of Applied Digital Corporation in its upcoming release. The company is forecasted to report an EPS of $0.01, showcasing a 103.45% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $56.76 million, showing a 359.97% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $0.18 per share and revenue of $351.23 million, which would represent changes of +136.73% and +534.07%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Applied Digital Corporation. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Applied Digital Corporation presently features a Zacks Rank of #3 (Hold).
With respect to valuation, Applied Digital Corporation is currently being traded at a Forward P/E ratio of 36.96. For comparison, its industry has an average Forward P/E of 10.42, which means Applied Digital Corporation is trading at a premium to the group.
The Financial - Miscellaneous Services industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 144, finds itself in the bottom 43% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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
Applied Digital Corporation (APLD) : 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.
|
Simultaneously, our latest consensus estimate expects the revenue to be $56.76 million, showing a 359.97% escalation compared to the year-ago quarter. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
|
The most recent trading session ended with Applied Digital Corporation (APLD) standing at $6.51, reflecting a -0.76% shift from the previouse trading day's closing. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Click to get this free report Applied Digital Corporation (APLD) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
The most recent trading session ended with Applied Digital Corporation (APLD) standing at $6.51, reflecting a -0.76% shift from the previouse trading day's closing. The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
|
The most recent trading session ended with Applied Digital Corporation (APLD) standing at $6.51, reflecting a -0.76% shift from the previouse trading day's closing. For the full year, the Zacks Consensus Estimates are projecting earnings of $0.18 per share and revenue of $351.23 million, which would represent changes of +136.73% and +534.07%, respectively, from the prior year. Free: See Our Top Stock and 4 Runners Up >> Want the latest recommendations from Zacks Investment Research?
|
9d427ddb-7758-41e7-b13f-8a507194eb3d
|
711908.0
|
2023-12-13 00:00:00 UTC
|
Judge says TikTok must turn meeting records over in US states probe
|
DCOMP
|
https://www.nasdaq.com/articles/judge-says-tiktok-must-turn-meeting-records-over-in-us-states-probe
|
nan
|
nan
|
By David Shepardson
Dec 15 (Reuters) - A state judge on Friday ordered TikTok to comply with a request from the North Carolina Attorney General's Office for records in a multistate investigation into whether the app puts young people at risk.
North Carolina Attorney General Josh Stein said the attorneys general investigating since 2022 have discovered TikTok had an archive of tens of thousands of recorded internal Zoom meetings that the company initially failed to disclose for nearly a year and a half.
The court order requires TikTok to turn over lists of all Zoom recordings that may help the attorneys general in their investigation, Stein said.
"TikTok does not get to choose which parts of the law it complies with," Stein said. "We’re going full steam ahead in our investigation to protect our kids.”
A TikTok spokesperson said on Friday it would appeal the ruling. The company has said previously it "has industry-leading safeguards for young people, including an automatic 60-minute time limit for users under 18 and parental controls for teen accounts."
In October, Utah sued TikTok, accusing it of harming children by intentionally keeping young users spending unhealthy amounts of time on the short-video sharing platform. Indiana and Arkansas previously filed similar suits.
TikTok, with more than 150 million U.S. users, is very popular among young people. Pew Research Center said 67% of U.S. teens ages 13 to 17 use TikTok, and 16% of all teens say they use the app almost constantly.
Utah's lawsuit said the videos leverage "highly powerful algorithms and manipulative design features, many of which mimic features of slot machines" and the result "of these manipulative tactics is that young consumers become hooked."
Arkansas also sued both TikTok and Facebook-parent Meta Platforms META.O in March "for pushing addictive platforms."
Last year, a group of Republican lawmakers said "many children are exposed to non-stop offerings of inappropriate content that TikTok’s algorithm force-feeds to them."
A Senate panel said the CEOs of TikTok, Meta, X (formerly Twitter), Snap SNAP.N and Discord will testify on online child sexual exploitation at a Jan. 31 hearing.
Legislation to give the Biden administration new tools to address foreign-owned apps like TikTok raising national security concerns has stalled.
(Reporting by David Shepardson; editing by Jonathan Oatis and Bill Berkrot)
((David.Shepardson@thomsonreuters.com; 2028988324;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
By David Shepardson Dec 15 (Reuters) - A state judge on Friday ordered TikTok to comply with a request from the North Carolina Attorney General's Office for records in a multistate investigation into whether the app puts young people at risk. The company has said previously it "has industry-leading safeguards for young people, including an automatic 60-minute time limit for users under 18 and parental controls for teen accounts." In October, Utah sued TikTok, accusing it of harming children by intentionally keeping young users spending unhealthy amounts of time on the short-video sharing platform.
|
By David Shepardson Dec 15 (Reuters) - A state judge on Friday ordered TikTok to comply with a request from the North Carolina Attorney General's Office for records in a multistate investigation into whether the app puts young people at risk. North Carolina Attorney General Josh Stein said the attorneys general investigating since 2022 have discovered TikTok had an archive of tens of thousands of recorded internal Zoom meetings that the company initially failed to disclose for nearly a year and a half. In October, Utah sued TikTok, accusing it of harming children by intentionally keeping young users spending unhealthy amounts of time on the short-video sharing platform.
|
By David Shepardson Dec 15 (Reuters) - A state judge on Friday ordered TikTok to comply with a request from the North Carolina Attorney General's Office for records in a multistate investigation into whether the app puts young people at risk. North Carolina Attorney General Josh Stein said the attorneys general investigating since 2022 have discovered TikTok had an archive of tens of thousands of recorded internal Zoom meetings that the company initially failed to disclose for nearly a year and a half. In October, Utah sued TikTok, accusing it of harming children by intentionally keeping young users spending unhealthy amounts of time on the short-video sharing platform.
|
By David Shepardson Dec 15 (Reuters) - A state judge on Friday ordered TikTok to comply with a request from the North Carolina Attorney General's Office for records in a multistate investigation into whether the app puts young people at risk. The company has said previously it "has industry-leading safeguards for young people, including an automatic 60-minute time limit for users under 18 and parental controls for teen accounts." In October, Utah sued TikTok, accusing it of harming children by intentionally keeping young users spending unhealthy amounts of time on the short-video sharing platform.
|
b7e36bbc-898b-4ed2-bdba-1935e7aaf564
|
711909.0
|
2023-12-13 00:00:00 UTC
|
Exxon Mobil ends talks with BlackRock for Italy LNG terminal sale
|
DCOMP
|
https://www.nasdaq.com/articles/exxon-mobil-ends-talks-with-blackrock-for-italy-lng-terminal-sale
|
nan
|
nan
|
By Sabrina Valle and Francesca Landini
HOUSTON, Dec 15 (Reuters) - Asset manager BlackRock Inc BLK.N has bowed out of talks to acquire Exxon Mobil Corp XOM.N's majority stake in Italy's main liquefied natural gas (LNG) import terminal, three people with knowledge of the matter said.
Global energy trader Vitol SA [RIC:RIC:VITOLV.UL] is among the bidders still in the running for the Adriatic LNG terminal, two of the people said. Italy is expected to increase its LNG imports to replace gas from Russia.
The end of BlackRock talks was first reported by Italian publication Sole 24. Exxon Mobil and BlackRock declined to comment. Vitol did not immediately respond to a request for comment.
Exxon in October said it had chosen BlackRock for exclusive talks. But the U.S. oil producer and the top U.S. investment management firm failed to reach an agreement and Exxon moved negotiations to the second highest bidder, the people said.
In March, Exxon said it was considering selling its 70.68% interest in the offshore terminal as part of its strategy to divest non-core assets.
A subsidiary of QatarEnergy [RIC:RIC:QATPE.UL] (22%) and Italian gas grid operator Snam SRG.MI (7.3%) owns the remaining stakes in the terminal, located about 9 miles (15 km) off the Veneto coastline.
At least four international groups had competed for the deal, with the entire regasification terminal said to be valued at about 800 million euros ($881 million), Reuters previously reported.
(Reporting by Sabrina Valle in Houston and Francesca Landini in Milan)
((sabrina.valle@tr.com; Twitter: @sabrinavalle;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
By Sabrina Valle and Francesca Landini HOUSTON, Dec 15 (Reuters) - Asset manager BlackRock Inc BLK.N has bowed out of talks to acquire Exxon Mobil Corp XOM.N's majority stake in Italy's main liquefied natural gas (LNG) import terminal, three people with knowledge of the matter said. But the U.S. oil producer and the top U.S. investment management firm failed to reach an agreement and Exxon moved negotiations to the second highest bidder, the people said. In March, Exxon said it was considering selling its 70.68% interest in the offshore terminal as part of its strategy to divest non-core assets.
|
By Sabrina Valle and Francesca Landini HOUSTON, Dec 15 (Reuters) - Asset manager BlackRock Inc BLK.N has bowed out of talks to acquire Exxon Mobil Corp XOM.N's majority stake in Italy's main liquefied natural gas (LNG) import terminal, three people with knowledge of the matter said. A subsidiary of QatarEnergy [RIC:RIC:QATPE.UL] (22%) and Italian gas grid operator Snam SRG.MI (7.3%) owns the remaining stakes in the terminal, located about 9 miles (15 km) off the Veneto coastline. (Reporting by Sabrina Valle in Houston and Francesca Landini in Milan) ((sabrina.valle@tr.com; Twitter: @sabrinavalle;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
By Sabrina Valle and Francesca Landini HOUSTON, Dec 15 (Reuters) - Asset manager BlackRock Inc BLK.N has bowed out of talks to acquire Exxon Mobil Corp XOM.N's majority stake in Italy's main liquefied natural gas (LNG) import terminal, three people with knowledge of the matter said. Global energy trader Vitol SA [RIC:RIC:VITOLV.UL] is among the bidders still in the running for the Adriatic LNG terminal, two of the people said. A subsidiary of QatarEnergy [RIC:RIC:QATPE.UL] (22%) and Italian gas grid operator Snam SRG.MI (7.3%) owns the remaining stakes in the terminal, located about 9 miles (15 km) off the Veneto coastline.
|
By Sabrina Valle and Francesca Landini HOUSTON, Dec 15 (Reuters) - Asset manager BlackRock Inc BLK.N has bowed out of talks to acquire Exxon Mobil Corp XOM.N's majority stake in Italy's main liquefied natural gas (LNG) import terminal, three people with knowledge of the matter said. Exxon Mobil and BlackRock declined to comment. Exxon in October said it had chosen BlackRock for exclusive talks.
|
ef9bba28-d2bd-4cda-a027-3cdc851c1a49
|
711910.0
|
2023-12-13 00:00:00 UTC
|
Why Alibaba Stock Crushed the Market Today
|
DCOMP
|
https://www.nasdaq.com/articles/why-alibaba-stock-crushed-the-market-today
|
nan
|
nan
|
A new top-down economic stimulus program from the Chinese government was stimulating interest in the country's stocks on Friday. One of the nation's big corporate champions, e-commerce giant Alibaba (NYSE: BABA), benefited handsomely from this. The shares closed the day almost 3% higher, comparing very favorably to the basically flat performance of the bellwether S&P 500 index.
China's new economic stimulus program
The government's initiative didn't specifically cover the tech sector Alibaba is a part of, but it did provide some modest optimism for the Chinese economy as a whole. The People's Bank of China will provide the nation's lenders with 800 billion yuan ($113 billion) worth of one-year loans in an attempt to boost the economy. Authorities also eased a clutch of regulations aimed at helping the troubled domestic real estate market.
Judging by the modest pop in Alibaba's price (and that for other Chinese tech titles), it seems investors are cautiously optimistic that these reforms will benefit the economy. And a rising Chinese tide lifts all boats in that sea, they're hoping.
This was evidenced by the market-beating performance of the country's other tech majors trading on foreign exchanges. JD.com, for example, notched a more than 4% improvement in stock price on Friday. Baidu rose by 1%, as did Chinese e-commerce stock of the moment PDD Holdings, known best as the operator of popular low-priced retail site Temu.
Carefully, not cheerfully, optimistic
Top-down initiatives, especially by the Chinese government, have a way of rallying stocks as a group. That dynamic was clearly in play with the country's well-known tech names at the end of the week. Yet the cautiously bullish reaction indicates some skepticism that the new measures will be game-changers; as ever, then, it's best to buy or sell such titles more on their fundamentals.
Should you invest $1,000 in Alibaba Group right now?
Before you buy stock in Alibaba Group, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Alibaba Group wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
See the 10 stocks
*Stock Advisor returns as of December 11, 2023
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Baidu and JD.com. The Motley Fool recommends Alibaba Group. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
China's new economic stimulus program The government's initiative didn't specifically cover the tech sector Alibaba is a part of, but it did provide some modest optimism for the Chinese economy as a whole. Judging by the modest pop in Alibaba's price (and that for other Chinese tech titles), it seems investors are cautiously optimistic that these reforms will benefit the economy. Baidu rose by 1%, as did Chinese e-commerce stock of the moment PDD Holdings, known best as the operator of popular low-priced retail site Temu.
|
China's new economic stimulus program The government's initiative didn't specifically cover the tech sector Alibaba is a part of, but it did provide some modest optimism for the Chinese economy as a whole. Before you buy stock in Alibaba Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Alibaba Group wasn't one of them. The Motley Fool recommends Alibaba Group.
|
China's new economic stimulus program The government's initiative didn't specifically cover the tech sector Alibaba is a part of, but it did provide some modest optimism for the Chinese economy as a whole. Before you buy stock in Alibaba Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Alibaba Group wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Eric Volkman has no position in any of the stocks mentioned.
|
Judging by the modest pop in Alibaba's price (and that for other Chinese tech titles), it seems investors are cautiously optimistic that these reforms will benefit the economy. Before you buy stock in Alibaba Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Alibaba Group wasn't one of them. The Motley Fool has positions in and recommends Baidu and JD.com.
|
c4716dc0-c811-493c-9954-f32bfb475670
|
711911.0
|
2023-12-13 00:00:00 UTC
|
FOCUS-Exxon's low US tax payments ruffle Biden's climate agenda
|
DCOMP
|
https://www.nasdaq.com/articles/focus-exxons-low-us-tax-payments-ruffle-bidens-climate-agenda
|
nan
|
nan
|
By Tim McLaughlin
Dec 15 (Reuters) - Exxon Mobil’s income tax payments to the U.S. government have dropped to 3% over the past five years – several times below the company’s 20-year average – on massive deductions passed under former President Donald Trump.
Corporate tax experts say Exxon could enjoy low taxes for several more years, at a time when the government needs more money to fund an ambitious fight against climate change. President Joe Biden’s minimum corporate tax is off to a shaky start and calculation of the 15% tax factors in the Trump accelerated depreciation deductions that Exxon used last year.
That lowered its tax rate to a rock-bottom 2.5% on domestic profit of $28.3 billion, according to the "current federal income tax expense" Exxon disclosed in its annual report.
“If you view the use of these tax breaks as a problem, Biden’s new minimum tax is unlikely to end that,” said Matt Gardner, a senior fellow at the nonpartisan Institute on Taxation of Economic Policy (ITEP) in Washington D.C.
In sharp contrast, the most valuable companies representing major sectors of the U.S. economy paid an average tax rate on domestic profits at least seven times higher than Exxon, according to a Reuters analysis of the companies' latest annual financial reports. The group includes Apple, Meta Platforms, JPMorgan Chase, Sherwin-Williams and Union Pacific.
Exxon’s recent tax advantage reveals how the U.S. tax code hinders the Biden administration’s push to be a world leader in limiting fossil fuels. The corporate minimum tax is the main source of revenue for the president’s green energy agenda in the 2022 Inflation Reduction Act.
The Internal Revenue Service (IRS), however, has delayed a roll out of the tax, which has been roiled by complexity and confusion, said Will McBride, vice president of tax policy at the Tax Foundation, a pro-business think tank.
“There is nothing in the (corporate minimum tax) to guarantee a 15% minimum rate,” McBride said.
The White House declined to comment for this story, but a spokesperson pointed to Biden's public commitment to end "tens of billions of dollars of federal tax subsidies for oil and gas companies."
Since 2003, Exxon’s current federal income tax expense – a proxy experts use to divine what companies pay on U.S. tax returns – averaged 17% for the 16 years the company generated a pre-tax profit from domestic operations, according to Exxon financial disclosures.
But since Trump’s Tax Cuts and Jobs Act became law in 2017, Exxon’s rate has plummeted to less than 3% in the three years when the company’s domestic operations showed a profit, the disclosures show.
Last year, for example, Exxon’s tax rate was 2.5%, or $696 million, on record pre-tax U.S. profit of $28.3 billion. Exxon would have paid nearly $6 billion at the federal statutory tax rate of 21%.
Exxon said, however, its U.S. income tax liability for 2022 was "several billion dollars" and the highest amount paid in more than 10 years. The company declined to elaborate why that amount was so much higher than the current federal income tax expense figure it provided to investors.
Before this year, Trump’s accelerated depreciation allowed companies to immediately deduct 100% of the billions of dollars many spend each year on property and equipment, up from 50% previously. The incentives, phased down to 80% this year, extend to all sectors of the economy, but they are amplified in the fossil fuel sector due to the capital-intensive nature of extracting oil and gas.
Exxon capitalized on the deductions in 2022, for example, after spending $9.5 billion on U.S.-based capital and exploration projects, including in the Permian Basin oil and gas field and on a Beaumont, Texas refinery expansion, company financial disclosures show.
“Sure enough, industry lobbyists are now back trying to get Congress to extend the tax break,” U.S. Senator Sheldon Whitehouse, a Rhode Island Democrat, told Reuters.
Russ Hamilton, an accounting professor at Southern Methodist University’s Cox School of Business, said that under normal circumstances the cumulative tax benefit from accelerated depreciation is meant to zero out over time as annual capital investments slow.
But if companies continue to spend money on large capital projects – like finding and developing new oil fields - payments on deferred income taxes can be postponed for years.
“These deferred income tax liabilities can go on forever," said Donald Williamson, an accounting professor at American University’s Kogod School of Business.
Exxon U.S. Income Tax: A 20-year history https://tmsnrt.rs/3RFH3nr
(Reporting By Tim McLaughlin in Boston; Editing by Richard Valdmanis and David Gregorio)
((tim.mclaughlin@thomsonreuters.com; +1 617-620-3471; Reuters Messaging: Tim.McLaughlin.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
By Tim McLaughlin Dec 15 (Reuters) - Exxon Mobil’s income tax payments to the U.S. government have dropped to 3% over the past five years – several times below the company’s 20-year average – on massive deductions passed under former President Donald Trump. The White House declined to comment for this story, but a spokesperson pointed to Biden's public commitment to end "tens of billions of dollars of federal tax subsidies for oil and gas companies." Russ Hamilton, an accounting professor at Southern Methodist University’s Cox School of Business, said that under normal circumstances the cumulative tax benefit from accelerated depreciation is meant to zero out over time as annual capital investments slow.
|
That lowered its tax rate to a rock-bottom 2.5% on domestic profit of $28.3 billion, according to the "current federal income tax expense" Exxon disclosed in its annual report. In sharp contrast, the most valuable companies representing major sectors of the U.S. economy paid an average tax rate on domestic profits at least seven times higher than Exxon, according to a Reuters analysis of the companies' latest annual financial reports. Since 2003, Exxon’s current federal income tax expense – a proxy experts use to divine what companies pay on U.S. tax returns – averaged 17% for the 16 years the company generated a pre-tax profit from domestic operations, according to Exxon financial disclosures.
|
President Joe Biden’s minimum corporate tax is off to a shaky start and calculation of the 15% tax factors in the Trump accelerated depreciation deductions that Exxon used last year. That lowered its tax rate to a rock-bottom 2.5% on domestic profit of $28.3 billion, according to the "current federal income tax expense" Exxon disclosed in its annual report. Since 2003, Exxon’s current federal income tax expense – a proxy experts use to divine what companies pay on U.S. tax returns – averaged 17% for the 16 years the company generated a pre-tax profit from domestic operations, according to Exxon financial disclosures.
|
By Tim McLaughlin Dec 15 (Reuters) - Exxon Mobil’s income tax payments to the U.S. government have dropped to 3% over the past five years – several times below the company’s 20-year average – on massive deductions passed under former President Donald Trump. “There is nothing in the (corporate minimum tax) to guarantee a 15% minimum rate,” McBride said. Exxon said, however, its U.S. income tax liability for 2022 was "several billion dollars" and the highest amount paid in more than 10 years.
|
2879b510-27fd-43de-bc00-69e9ebb8391e
|
711912.0
|
2023-12-13 00:00:00 UTC
|
Panasonic Corp. (PCRFY) Dips More Than Broader Market: What You Should Know
|
DCOMP
|
https://www.nasdaq.com/articles/panasonic-corp.-pcrfy-dips-more-than-broader-market%3A-what-you-should-know
|
nan
|
nan
|
Panasonic Corp. (PCRFY) closed the most recent trading day at $9.52, moving -0.73% from the previous trading session. The stock's change was less than the S&P 500's daily loss of 0.01%. Elsewhere, the Dow gained 0.15%, while the tech-heavy Nasdaq added 0.36%.
Prior to today's trading, shares of the company had gained 2.57% over the past month. This has lagged the Consumer Discretionary sector's gain of 7.96% and the S&P 500's gain of 5.21% in that time.
The investment community will be paying close attention to the earnings performance of Panasonic Corp. in its upcoming release.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.24 per share and a revenue of $57.02 billion, signifying shifts of +47.62% and -8.01%, respectively, from the last year.
Investors might also notice recent changes to analyst estimates for Panasonic Corp. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 22.37% higher. Panasonic Corp. is holding a Zacks Rank of #3 (Hold) right now.
Looking at valuation, Panasonic Corp. is presently trading at a Forward P/E ratio of 7.73. This indicates a discount in contrast to its industry's Forward P/E of 22.66.
It is also worth noting that PCRFY currently has a PEG ratio of 0.32. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Audio Video Production industry had an average PEG ratio of 3.97.
The Audio Video Production industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 239, which puts it in the bottom 6% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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
Panasonic Corp. (PCRFY) : 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.
|
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.24 per share and a revenue of $57.02 billion, signifying shifts of +47.62% and -8.01%, respectively, from the last year. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
|
Panasonic Corp. (PCRFY) closed the most recent trading day at $9.52, moving -0.73% from the previous trading session. By the end of yesterday's trading, the Audio Video Production industry had an average PEG ratio of 3.97. Click to get this free report Panasonic Corp. (PCRFY) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
This industry currently has a Zacks Industry Rank of 239, which puts it in the bottom 6% of all 250+ industries. The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
|
Panasonic Corp. (PCRFY) closed the most recent trading day at $9.52, moving -0.73% from the previous trading session. This industry currently has a Zacks Industry Rank of 239, which puts it in the bottom 6% of all 250+ industries. Free: See Our Top Stock and 4 Runners Up >> Want the latest recommendations from Zacks Investment Research?
|
39ef2144-e8e3-4a79-b783-1540672870ac
|
711913.0
|
2023-12-13 00:00:00 UTC
|
The Southern Company Just Gave Us a Hint About When Its Dividend Will Grow Again
|
DCOMP
|
https://www.nasdaq.com/articles/the-southern-company-just-gave-us-a-hint-about-when-its-dividend-will-grow-again
|
nan
|
nan
|
The Southern Company (NYSE: SO) has an enviable dividend track record in one way, and yet the dividend has been a less-than-stellar performer in another. But the next decade for this large regulated U.S. utility is likely to look very different from the last one.
That is good for dividend investors, with management spelling out a pretty clear target for the positive changes it sees ahead.
Rewarding dividend investors well even in hard times
Southern has increased its dividend annually for 22 consecutive years. But that's just the start of the dividend record here, since it has held steady or increased for a full 76 years.
That's a stat that even the most conservative dividend investor will find appealing. It highlights a commitment to returning value to investors via a growing dividend that few other companies can match.
Image source: Getty Images.
Notably, the utility has supported the dividend through good periods and bad. That includes the Great Recession, the coronavirus pandemic, and even the dramatic inflation uptick during the 1970s.
Southern is the kind of dividend stock that you buy as a foundation to a more broadly diversified portfolio. You don't expect it to be exciting, but you do expect it to be reliable.
Only over the past decade, this utility has been a bit of a laggard on the dividend front in an important way. The payout growth over that span has averaged only around 3% a year. In fairness, that's roughly enough to keep up with the historical rate of inflation growth over time. So the buying power of Southern's dividends hasn't declined, which is good. But investors generally hope for a little more.
So, all in, there's a lot to like about Southern's dividend even though there's one notable issue to complain about. That little niggle is about to change.
What's been going on at Southern
The big headwind for the utility over the past decade that has forced it to limit dividend growth is the Vogtle project. It includes two large-scale nuclear power plants, and it has been over budget and delayed multiple times.
To suggest that the construction process didn't go well would be an understatement; the original contractor declared bankruptcy (forcing Southern to take on that role), and it had to contend with the disruptions caused by a global pandemic.
That's the bad news, and it was the main reason Southern rode the brake on dividend growth, keeping it slow and steady. But the first of the two power plants is now attached to the grid, and the second one should be up and running in early 2024.
The utility estimates that the two plants, once fully operational, will add as much as $700 million to the company's cash flow from operations. There's a dual benefit, since the capital spending associated with Vogtle will go away and the power plants will start generating revenue.
That cash will be used in a few ways. Debt reduction and investment in other capital projects will be the first orders of business. But according to management, once the company lowers the payout ratio below 70%, dividend growth that aligns more closely with earnings growth is the target.
Right now, the payout ratio is projected by management to be around 77%, so don't expect an uptick in dividend growth in 2024. However, 2025 seems like a real possibility, with the payout ratio being the prime figure to monitor along the way.
SO data by YCharts.
A changed view of Southern
As the chart above shows, shares of Southern have largely bucked the broader downtrend in the utility sector, using the Vanguard Utilities ETF (NYSEMKT: VPU) as a proxy. That's likely because Wall Street was so down on the stock while it was muddling through the Vogtle project. Now that the project is nearly complete, investors are increasingly positive. It isn't the bargain it once was.
That said, if you have owned Southern through this difficult construction project, you are being rewarded for your patience today. And the reward looks likely to get even better when dividend growth moves out of the moribund range it has been stuck in for so long.
Meanwhile, if you don't own the utility and have a dividend growth mindset, you might want to put it on your radar screen. Management has provided a target (a sub-70% payout ratio) for when the dividend story should change in a very positive direction.
Should you invest $1,000 in Southern Company right now?
Before you buy stock in Southern Company, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Southern Company 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
Reuben Gregg Brewer has positions in Southern Company. 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.
|
What's been going on at Southern The big headwind for the utility over the past decade that has forced it to limit dividend growth is the Vogtle project. To suggest that the construction process didn't go well would be an understatement; the original contractor declared bankruptcy (forcing Southern to take on that role), and it had to contend with the disruptions caused by a global pandemic. That's the bad news, and it was the main reason Southern rode the brake on dividend growth, keeping it slow and steady.
|
What's been going on at Southern The big headwind for the utility over the past decade that has forced it to limit dividend growth is the Vogtle project. Before you buy stock in Southern Company, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Southern Company wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Reuben Gregg Brewer has positions in Southern Company.
|
Rewarding dividend investors well even in hard times Southern has increased its dividend annually for 22 consecutive years. What's been going on at Southern The big headwind for the utility over the past decade that has forced it to limit dividend growth is the Vogtle project. Before you buy stock in Southern Company, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Southern Company wasn't one of them.
|
Right now, the payout ratio is projected by management to be around 77%, so don't expect an uptick in dividend growth in 2024. Before you buy stock in Southern Company, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Southern Company wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Reuben Gregg Brewer has positions in Southern Company.
|
f43ed744-3995-4b68-b654-b23e7ac0af35
|
711914.0
|
2023-12-13 00:00:00 UTC
|
Why Clorox (CLX) Dipped More Than Broader Market Today
|
DCOMP
|
https://www.nasdaq.com/articles/why-clorox-clx-dipped-more-than-broader-market-today
|
nan
|
nan
|
Clorox (CLX) closed the most recent trading day at $141.91, moving -0.19% from the previous trading session. The stock's performance was behind the S&P 500's daily loss of 0.01%. Meanwhile, the Dow gained 0.15%, and the Nasdaq, a tech-heavy index, added 0.36%.
Heading into today, shares of the consumer products maker had gained 2.25% over the past month, lagging the Consumer Staples sector's gain of 2.74% and the S&P 500's gain of 5.21% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Clorox in its upcoming earnings disclosure. The company is predicted to post an EPS of $1.06, indicating an 8.16% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $1.77 billion, up 3.25% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.56 per share and a revenue of $6.99 billion, signifying shifts of -10.41% and -5.41%, respectively, from the last year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Clorox. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.19% higher. At present, Clorox boasts a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Clorox has a Forward P/E ratio of 31.16 right now. Its industry sports an average Forward P/E of 22.52, so one might conclude that Clorox is trading at a premium comparatively.
It's also important to note that CLX currently trades at a PEG ratio of 3.08. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As of the close of trade yesterday, the Soap and Cleaning Materials industry held an average PEG ratio of 3.21.
The Soap and Cleaning Materials industry is part of the Consumer Staples sector. With its current Zacks Industry Rank of 93, this industry ranks in the top 37% of all industries, numbering over 250.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The Clorox Company (CLX) : 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.
|
For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.56 per share and a revenue of $6.99 billion, signifying shifts of -10.41% and -5.41%, respectively, from the last year. As of the close of trade yesterday, the Soap and Cleaning Materials industry held an average PEG ratio of 3.21. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
|
Clorox (CLX) closed the most recent trading day at $141.91, moving -0.19% from the previous trading session. For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.56 per share and a revenue of $6.99 billion, signifying shifts of -10.41% and -5.41%, respectively, from the last year. Click to get this free report The Clorox Company (CLX) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
With its current Zacks Industry Rank of 93, this industry ranks in the top 37% of all industries, numbering over 250. The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
|
Clorox (CLX) closed the most recent trading day at $141.91, moving -0.19% from the previous trading session. With its current Zacks Industry Rank of 93, this industry ranks in the top 37% of all industries, numbering over 250. Free: See Our Top Stock and 4 Runners Up >> Want the latest recommendations from Zacks Investment Research?
|
81a63802-8fe7-4f82-8daf-e596a6329338
|
711915.0
|
2023-12-13 00:00:00 UTC
|
JPMorgan Chase & Co. (JPM) Ascends While Market Falls: Some Facts to Note
|
DCOMP
|
https://www.nasdaq.com/articles/jpmorgan-chase-co.-jpm-ascends-while-market-falls%3A-some-facts-to-note
|
nan
|
nan
|
JPMorgan Chase & Co. (JPM) closed the latest trading day at $165.23, indicating a +0.76% change from the previous session's end. This move outpaced the S&P 500's daily loss of 0.01%. At the same time, the Dow added 0.15%, and the tech-heavy Nasdaq gained 0.36%.
Prior to today's trading, shares of the company had gained 8.28% over the past month. This has lagged the Finance sector's gain of 8.98% and outpaced the S&P 500's gain of 5.21% in that time.
Analysts and investors alike will be keeping a close eye on the performance of JPMorgan Chase & Co. in its upcoming earnings disclosure. The company's earnings report is set to go public on January 12, 2024. The company is expected to report EPS of $3.72, up 4.2% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $38.83 billion, indicating a 12.4% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $16.83 per share and a revenue of $157.87 billion, representing changes of +39.21% and +22.67%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for JPMorgan Chase & Co. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.03% lower. JPMorgan Chase & Co. is holding a Zacks Rank of #3 (Hold) right now.
From a valuation perspective, JPMorgan Chase & Co. is currently exchanging hands at a Forward P/E ratio of 9.74. This signifies a discount in comparison to the average Forward P/E of 10.3 for its industry.
One should further note that JPM currently holds a PEG ratio of 1.95. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Banks - Major Regional stocks are, on average, holding a PEG ratio of 1.75 based on yesterday's closing prices.
The Banks - Major Regional industry is part of the Finance sector. With its current Zacks Industry Rank of 93, this industry ranks in the top 37% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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
JPMorgan Chase & Co. (JPM) : 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.
|
JPMorgan Chase & Co. (JPM) closed the latest trading day at $165.23, indicating a +0.76% change from the previous session's end. In the meantime, our current consensus estimate forecasts the revenue to be $38.83 billion, indicating a 12.4% growth compared to the corresponding quarter of the prior year. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
|
JPMorgan Chase & Co. (JPM) closed the latest trading day at $165.23, indicating a +0.76% change from the previous session's end. Banks - Major Regional stocks are, on average, holding a PEG ratio of 1.75 based on yesterday's closing prices. Click to get this free report JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
With its current Zacks Industry Rank of 93, this industry ranks in the top 37% of all industries, numbering over 250. The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
|
Prior to today's trading, shares of the company had gained 8.28% over the past month. Investors should also take note of any recent adjustments to analyst estimates for JPMorgan Chase & Co. With its current Zacks Industry Rank of 93, this industry ranks in the top 37% of all industries, numbering over 250.
|
9fe8ab05-0110-4d14-b13d-425765aca7be
|
711916.0
|
2023-12-13 00:00:00 UTC
|
Eli Lilly (LLY) Dips More Than Broader Market: What You Should Know
|
DCOMP
|
https://www.nasdaq.com/articles/eli-lilly-lly-dips-more-than-broader-market%3A-what-you-should-know
|
nan
|
nan
|
Eli Lilly (LLY) closed the latest trading day at $572.04, indicating a -0.28% change from the previous session's end. The stock's change was less than the S&P 500's daily loss of 0.01%. At the same time, the Dow added 0.15%, and the tech-heavy Nasdaq gained 0.36%.
Shares of the drugmaker witnessed a loss of 2.56% over the previous month, trailing the performance of the Medical sector with its gain of 5.79% and the S&P 500's gain of 5.21%.
The investment community will be closely monitoring the performance of Eli Lilly in its forthcoming earnings report. In that report, analysts expect Eli Lilly to post earnings of $2.77 per share. This would mark year-over-year growth of 32.54%. Simultaneously, our latest consensus estimate expects the revenue to be $8.87 billion, showing a 21.54% escalation compared to the year-ago quarter.
LLY's full-year Zacks Consensus Estimates are calling for earnings of $6.61 per share and revenue of $33.63 billion. These results would represent year-over-year changes of -16.75% and +17.82%, respectively.
It's also important for investors to be aware of any recent modifications to analyst estimates for Eli Lilly. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.23% lower within the past month. Eli Lilly is currently a Zacks Rank #3 (Hold).
In terms of valuation, Eli Lilly is presently being traded at a Forward P/E ratio of 86.83. This denotes a premium relative to the industry's average Forward P/E of 15.69.
It is also worth noting that LLY currently has a PEG ratio of 3.49. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Large Cap Pharmaceuticals was holding an average PEG ratio of 2.17 at yesterday's closing price.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 54, which puts it in the top 22% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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
Eli Lilly and Company (LLY) : 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.
|
Eli Lilly (LLY) closed the latest trading day at $572.04, indicating a -0.28% change from the previous session's end. Simultaneously, our latest consensus estimate expects the revenue to be $8.87 billion, showing a 21.54% escalation compared to the year-ago quarter. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
|
Eli Lilly (LLY) closed the latest trading day at $572.04, indicating a -0.28% change from the previous session's end. The Large Cap Pharmaceuticals was holding an average PEG ratio of 2.17 at yesterday's closing price. Click to get this free report Eli Lilly and Company (LLY) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
This industry currently has a Zacks Industry Rank of 54, which puts it in the top 22% of all 250+ industries. The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Click to get this free report Eli Lilly and Company (LLY) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
Eli Lilly (LLY) closed the latest trading day at $572.04, indicating a -0.28% change from the previous session's end. In that report, analysts expect Eli Lilly to post earnings of $2.77 per share. Eli Lilly is currently a Zacks Rank #3 (Hold).
|
27e5be48-280c-467f-868c-327c33633153
|
711917.0
|
2023-12-13 00:00:00 UTC
|
AbbVie (ABBV) Declines More Than Market: Some Information for Investors
|
DCOMP
|
https://www.nasdaq.com/articles/abbvie-abbv-declines-more-than-market%3A-some-information-for-investors
|
nan
|
nan
|
AbbVie (ABBV) closed the latest trading day at $154.04, indicating a -0.54% change from the previous session's end. This move lagged the S&P 500's daily loss of 0.01%. On the other hand, the Dow registered a gain of 0.15%, and the technology-centric Nasdaq increased by 0.36%.
Shares of the drugmaker witnessed a gain of 12.01% over the previous month, beating the performance of the Medical sector with its gain of 5.79% and the S&P 500's gain of 5.21%.
The investment community will be closely monitoring the performance of AbbVie in its forthcoming earnings report. The company is forecasted to report an EPS of $2.93, showcasing a 18.61% downward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $14.04 billion, showing a 7.15% drop compared to the year-ago quarter.
ABBV's full-year Zacks Consensus Estimates are calling for earnings of $11.21 per share and revenue of $54.06 billion. These results would represent year-over-year changes of -18.59% and -6.88%, respectively.
Any recent changes to analyst estimates for AbbVie should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.02% increase. AbbVie is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that AbbVie has a Forward P/E ratio of 13.81 right now. For comparison, its industry has an average Forward P/E of 15.69, which means AbbVie is trading at a discount to the group.
Also, we should mention that ABBV has a PEG ratio of 2.76. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Large Cap Pharmaceuticals industry had an average PEG ratio of 2.17.
The Large Cap Pharmaceuticals industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 54, positioning it in the top 22% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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
AbbVie Inc. (ABBV) : 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.
|
As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
|
AbbVie (ABBV) closed the latest trading day at $154.04, indicating a -0.54% change from the previous session's end. By the end of yesterday's trading, the Large Cap Pharmaceuticals industry had an average PEG ratio of 2.17. Click to get this free report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
Currently, this industry holds a Zacks Industry Rank of 54, positioning it in the top 22% of all 250+ industries. The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
|
AbbVie (ABBV) closed the latest trading day at $154.04, indicating a -0.54% change from the previous session's end. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.02% increase. Currently, this industry holds a Zacks Industry Rank of 54, positioning it in the top 22% of all 250+ industries.
|
b2d20436-32ab-4211-8c00-db1af1fca0f0
|
711918.0
|
2023-12-13 00:00:00 UTC
|
Why the Market Dipped But Griffon (GFF) Gained Today
|
DCOMP
|
https://www.nasdaq.com/articles/why-the-market-dipped-but-griffon-gff-gained-today
|
nan
|
nan
|
The latest trading session saw Griffon (GFF) ending at $56.59, denoting a +0.93% adjustment from its last day's close. This change outpaced the S&P 500's 0.01% loss on the day. Meanwhile, the Dow gained 0.15%, and the Nasdaq, a tech-heavy index, added 0.36%.
Prior to today's trading, shares of the garage door and building products maker had gained 24.6% over the past month. This has outpaced the Conglomerates sector's gain of 8.28% and the S&P 500's gain of 5.21% in that time.
Investors will be eagerly watching for the performance of Griffon in its upcoming earnings disclosure. The company is expected to report EPS of $0.78, down 9.3% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $597.26 million, down 8.03% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.62 per share and revenue of $2.6 billion. These totals would mark changes of +1.76% and -3.16%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for Griffon. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 13.04% upward. Currently, Griffon is carrying a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, Griffon is holding a Forward P/E ratio of 12.13. This indicates a discount in contrast to its industry's Forward P/E of 17.51.
It's also important to note that GFF currently trades at a PEG ratio of 0.72. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Diversified Operations industry currently had an average PEG ratio of 2.36 as of yesterday's close.
The Diversified Operations industry is part of the Conglomerates sector. Currently, this industry holds a Zacks Industry Rank of 77, positioning it in the top 31% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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
Griffon Corporation (GFF) : 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.
|
Prior to today's trading, shares of the garage door and building products maker had gained 24.6% over the past month. Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.62 per share and revenue of $2.6 billion. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
|
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.62 per share and revenue of $2.6 billion. Over the past month, the Zacks Consensus EPS estimate has shifted 13.04% upward. Click to get this free report Griffon Corporation (GFF) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
Currently, this industry holds a Zacks Industry Rank of 77, positioning it in the top 31% of all 250+ industries. The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
|
Investors should also take note of any recent adjustments to analyst estimates for Griffon. Currently, this industry holds a Zacks Industry Rank of 77, positioning it in the top 31% of all 250+ industries. Free: See Our Top Stock and 4 Runners Up >> Want the latest recommendations from Zacks Investment Research?
|
a3c53a6d-3df5-4880-a9a5-032cf4defa71
|
711919.0
|
2023-12-13 00:00:00 UTC
|
Why I Recently Bet Another $800 That This Beleaguered High-Yield Dividend Stock Will Turn Things Around
|
DCOMP
|
https://www.nasdaq.com/articles/why-i-recently-bet-another-%24800-that-this-beleaguered-high-yield-dividend-stock-will-turn
|
nan
|
nan
|
I've been a Medical Properties Trust (NYSE: MPW) shareholder since 2007. Until last year, the healthcare real estate investment trust (REIT) had been a great investment, with a solid track record of delivering market-beating total returns and dividend growth.
That all came crashing down in early 2022 as headwinds from higher interest rates and tenant issues started weighing heavily on the stock. The REIT now sits nearly 80% below its all-time high -- a plunge that pushed the yield on its reset dividend up past 12%. While I don't know if it will recover all its lost ground, I believe the hospital owner can turn things around. That's why I recently boosted my stake by $800. Here's why I believe that bet will pay off in the long run.
Getting healthier
Medical Properties Trust has faced two stiff headwinds over the past two years: tenant issues and financial concerns. The company has made progress in dealing with both over the past year.
It has worked closely with its two largest tenants (Steward Health Care and Prospect Medical) to assist them during their financial challenges. The REIT helped provide both with loans while deferring some of Prospect's rent. It also reorganized its investment in Prospect by exchanging hospitals for an interest in the company's valuable managed care business. The company has also reduced its exposure to those troubled tenants by selling properties leased to Prospect. Meanwhile, Steward sold its Utah operations to CommonSpirit, which is now one of the REIT's tenants.
Medical Properties Trust has also taken several steps to strengthen its financial foundations. It has sold several hospital properties and used the proceeds to pay down debt. It has addressed all its debt maturities through the end of next year. The REIT also cut its dividend by nearly 50%, enabling it to put more cash toward debt reduction. The company plans to sell more assets, including its stake in Prospect's managed care business. The overall goal is to strengthen its balance sheet further so that it can eventually start acquiring healthcare properties again.
Abating headwind
The recent surge in interest rates was a major reason Medical Properties Trust had to sell hospitals and reduce its debt load. The company borrowed a lot of money to fund acquisitions when rates were lower. Those debts have started to mature. While in the past, it typically has been able to refinance its maturing debts at comparable rates, its tenant issues and rising interest rates have made it too expensive to roll over those debts.
However, after almost two years during which the Federal Reserve rapidly boosted benchmark interest rates in its fight against high inflation, it appears that the central bank will start bringing them back down somewhat next year. The Federal Reserve recently suggested that it could cut rates three times in 2024. It now anticipates that the federal funds rate will end 2024 at around 4.6%, down from its current range of 5.25% to 5.5%. That should lower borrowing costs for companies, making it less painful to refinance lower-rate debt. In addition, interest rate cuts should boost the valuations of income-generating investments like REITs. Because of that, this headwind on the company's stock price could soon become a tailwind.
Valuable real estate
Medical Properties' stock price slump has weighed on its enterprise value, which has fallen to $12.8 billion. That's down from a peak of $24 billion in 2022.
The company's market valuation is now well below the value of the real estate assets on its balance sheet, which stood at $19 billion at the end of the third quarter. While rising interest rates have put some downward pressure on commercial real estate values, hospital values have held up relatively well. Medical Properties Trust has demonstrated that over the past couple of years by selling properties at or above the prices it paid for them, despite all its headwinds. Future sales could help further confirm the underlying value of its hospital portfolio.
Growing confidence in the turnaround
Medical Properties Trust has hit a rough patch over the past two years. However, I believe the company can turn things around. It has strategies in place to manage its balance sheet and tenant issues. Meanwhile, one of its biggest headwinds should start to ease next year. On top of that, it holds a valuable real estate portfolio. These factors give me the confidence that the share price should bounce back, which is why I recently added to my position.
Should you invest $1,000 in Medical Properties Trust right now?
Before you buy stock in Medical Properties Trust, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Medical Properties Trust 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
Matthew DiLallo has positions in Medical Properties Trust. 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.
|
Getting healthier Medical Properties Trust has faced two stiff headwinds over the past two years: tenant issues and financial concerns. Abating headwind The recent surge in interest rates was a major reason Medical Properties Trust had to sell hospitals and reduce its debt load. Valuable real estate Medical Properties' stock price slump has weighed on its enterprise value, which has fallen to $12.8 billion.
|
Until last year, the healthcare real estate investment trust (REIT) had been a great investment, with a solid track record of delivering market-beating total returns and dividend growth. While in the past, it typically has been able to refinance its maturing debts at comparable rates, its tenant issues and rising interest rates have made it too expensive to roll over those debts. Before you buy stock in Medical Properties Trust, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Medical Properties Trust wasn't one of them.
|
Abating headwind The recent surge in interest rates was a major reason Medical Properties Trust had to sell hospitals and reduce its debt load. Medical Properties Trust has demonstrated that over the past couple of years by selling properties at or above the prices it paid for them, despite all its headwinds. Before you buy stock in Medical Properties Trust, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Medical Properties Trust wasn't one of them.
|
While in the past, it typically has been able to refinance its maturing debts at comparable rates, its tenant issues and rising interest rates have made it too expensive to roll over those debts. Before you buy stock in Medical Properties Trust, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Medical Properties Trust wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Matthew DiLallo has positions in Medical Properties Trust.
|
7066736d-07c3-4fb1-b7ad-07adaffe421e
|
711920.0
|
2023-12-13 00:00:00 UTC
|
Worthington Industries (WOR) Gains As Market Dips: What You Should Know
|
DCOMP
|
https://www.nasdaq.com/articles/worthington-industries-wor-gains-as-market-dips%3A-what-you-should-know-0
|
nan
|
nan
|
Worthington Industries (WOR) closed the latest trading day at $57.33, indicating a +1.65% change from the previous session's end. The stock outperformed the S&P 500, which registered a daily loss of 0.01%. On the other hand, the Dow registered a gain of 0.15%, and the technology-centric Nasdaq increased by 0.36%.
Heading into today, shares of the metal manufacturer had lost 12.67% over the past month, lagging the Conglomerates sector's gain of 8.28% and the S&P 500's gain of 5.21% in that time.
The investment community will be paying close attention to the earnings performance of Worthington Industries in its upcoming release. The company is slated to reveal its earnings on December 19, 2023. It is anticipated that the company will report an EPS of $0.81, marking an 84.09% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $1.04 billion, down 11.96% from the prior-year quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $5.60 per share and a revenue of $4.9 billion, representing changes of -4.44% and -0.25%, respectively, from the prior year.
Any recent changes to analyst estimates for Worthington Industries should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there's been a 0.9% rise in the Zacks Consensus EPS estimate. Currently, Worthington Industries is carrying a Zacks Rank of #3 (Hold).
From a valuation perspective, Worthington Industries is currently exchanging hands at a Forward P/E ratio of 10.07. This indicates a discount in contrast to its industry's Forward P/E of 17.51.
The Diversified Operations industry is part of the Conglomerates sector. Currently, this industry holds a Zacks Industry Rank of 77, positioning it in the top 31% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Worthington Enterprises, Inc. (WOR) : Free Stock Analysis Report
To read this article on Zacks.com click here.
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.
|
Worthington Industries (WOR) closed the latest trading day at $57.33, indicating a +1.65% change from the previous session's end. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
|
Worthington Industries (WOR) closed the latest trading day at $57.33, indicating a +1.65% change from the previous session's end. The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Click to get this free report Worthington Enterprises, Inc. (WOR) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
Currently, this industry holds a Zacks Industry Rank of 77, positioning it in the top 31% of all 250+ industries. The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
|
Currently, Worthington Industries is carrying a Zacks Rank of #3 (Hold). Currently, this industry holds a Zacks Industry Rank of 77, positioning it in the top 31% of all 250+ industries. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
|
467e0d1d-4e3a-4373-87ca-e7432c838fcd
|
711921.0
|
2023-12-13 00:00:00 UTC
|
General Motors (GM) Cruise to Lay off 24% of Its Workforce
|
DCOMP
|
https://www.nasdaq.com/articles/general-motors-gm-cruise-to-lay-off-24-of-its-workforce
|
nan
|
nan
|
Reportedly, General Motors Company’s GM 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 pay checks till Feb 12, 2023. They will also receive an additional eight weeks of salary plus tenure-based severance.
Cruise recently 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 Cruise robotaxi unit.
Last month, GM announced to cut costs at Cruise, which lost over $700 million in the third quarter and $8 billion since 2016.
Per CNBC, Cruise aims to work on a fully driverless L4 service. It plans to relaunch ride-hailing in one city before expanding.
In August, robotaxi received approval for round-the-clock service in San Francisco. Since then, it has been called into question for safety concerns. After the accident, the California Department of Motor Vehicles asked Cruise to remove its driverless cars from the roads and called them a risk to the public. Also, the National Highway Traffic Safety Administration started an investigation into pedestrian risks at Cruise.
Per a California agency, Cruise could face $1.5 million in fines and additional sanctions over its failure to disclose accident details.
In October, Cruise announced a reorganization, more oversight from General Motors, an independent safety expert and an expanded probe into Cruise’s tech and safety systems by Exponent.
Zacks Rank & Key Picks
GM currently carries a Zacks Rank #3 (Hold).
Some better-ranked players in the auto space are Volvo VLVLY, Renault SARNLSYand BYD Company LimitedBYDDY, each sporting Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for VLVLY’s 2023 sales and earnings indicates year-over-year growth of 4.2% and 70.6%, respectively. The EPS estimates for 2023 and 2024 have increased 8 cents and 7 cents, respectively, in the past seven days.
The Zacks Consensus Estimate for RNLSY’s 2023 sales and earnings indicates year-over-year growth of 4.5% and 128.1%, respectively. The EPS estimate for 2024 has increased 2 cents in the past 60 days.
The Zacks Consensus Estimate for BYDDY’s 2023 sales indicates year-over-year growth of 160.2%. The EPS estimates for 2023 and 2024 have increased 59 cents and 55 cents, respectively, in the past 60 days.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
General Motors Company (GM) : Free Stock Analysis Report
AB Volvo (VLVLY) : Free Stock Analysis Report
RENAULT (RNLSY) : Free Stock Analysis Report
Byd Co., Ltd. (BYDDY) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
The 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, the California Department of Motor Vehicles asked Cruise to remove its driverless cars from the roads and called them a risk to the public. Some better-ranked players in the auto space are Volvo VLVLY, Renault SARNLSYand BYD Company LimitedBYDDY, each sporting Zacks Rank #1 (Strong Buy).
|
The Zacks Consensus Estimate for VLVLY’s 2023 sales and earnings indicates year-over-year growth of 4.2% and 70.6%, respectively. The Zacks Consensus Estimate for RNLSY’s 2023 sales and earnings indicates year-over-year growth of 4.5% and 128.1%, respectively. Click to get this free report General Motors Company (GM) : Free Stock Analysis Report AB Volvo (VLVLY) : Free Stock Analysis Report RENAULT (RNLSY) : Free Stock Analysis Report Byd Co., Ltd. (BYDDY) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
In October, Cruise announced a reorganization, more oversight from General Motors, an independent safety expert and an expanded probe into Cruise’s tech and safety systems by Exponent. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year. Click to get this free report General Motors Company (GM) : Free Stock Analysis Report AB Volvo (VLVLY) : Free Stock Analysis Report RENAULT (RNLSY) : Free Stock Analysis Report Byd Co., Ltd. (BYDDY) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
Per a California agency, Cruise could face $1.5 million in fines and additional sanctions over its failure to disclose accident details. In October, Cruise announced a reorganization, more oversight from General Motors, an independent safety expert and an expanded probe into Cruise’s tech and safety systems by Exponent. Zacks Rank & Key Picks
|
fe5ee74a-73c4-4827-8de0-1a34d1ef120c
|
711922.0
|
2023-12-13 00:00:00 UTC
|
Allegiant Travel (ALGT) Ascends While Market Falls: Some Facts to Note
|
DCOMP
|
https://www.nasdaq.com/articles/allegiant-travel-algt-ascends-while-market-falls%3A-some-facts-to-note
|
nan
|
nan
|
In the latest trading session, Allegiant Travel (ALGT) closed at $82.25, marking a +1.33% move from the previous day. The stock's change was more than the S&P 500's daily loss of 0.01%. Meanwhile, the Dow experienced a rise of 0.15%, and the technology-dominated Nasdaq saw an increase of 0.36%.
Heading into today, shares of the travel services company had gained 23.04% over the past month, outpacing the Transportation sector's gain of 9.83% and the S&P 500's gain of 5.21% in that time.
The investment community will be closely monitoring the performance of Allegiant Travel in its forthcoming earnings report. The company is predicted to post an EPS of -$0.66, indicating a 120.82% decline compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $599.9 million, reflecting a 1.91% fall from the equivalent quarter last year.
ALGT's full-year Zacks Consensus Estimates are calling for earnings of $7.13 per share and revenue of $2.5 billion. These results would represent year-over-year changes of +127.8% and +8.58%, respectively.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Allegiant Travel. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 4% lower. Allegiant Travel is currently sporting a Zacks Rank of #5 (Strong Sell).
Investors should also note Allegiant Travel's current valuation metrics, including its Forward P/E ratio of 11.38. For comparison, its industry has an average Forward P/E of 7.42, which means Allegiant Travel is trading at a premium to the group.
The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 195, which puts it in the bottom 23% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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
Allegiant Travel Company (ALGT) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
At the same time, our most recent consensus estimate is projecting a revenue of $599.9 million, reflecting a 1.91% fall from the equivalent quarter last year. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
|
In the latest trading session, Allegiant Travel (ALGT) closed at $82.25, marking a +1.33% move from the previous day. Heading into today, shares of the travel services company had gained 23.04% over the past month, outpacing the Transportation sector's gain of 9.83% and the S&P 500's gain of 5.21% in that time. Click to get this free report Allegiant Travel Company (ALGT) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year. Click to get this free report Allegiant Travel Company (ALGT) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
In the latest trading session, Allegiant Travel (ALGT) closed at $82.25, marking a +1.33% move from the previous day. This industry currently has a Zacks Industry Rank of 195, which puts it in the bottom 23% of all 250+ industries. The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups.
|
72e6d22a-2406-4917-888a-f3727c47de1d
|
711923.0
|
2023-12-13 00:00:00 UTC
|
Wabash National (WNC) Registers a Bigger Fall Than the Market: Important Facts to Note
|
DCOMP
|
https://www.nasdaq.com/articles/wabash-national-wnc-registers-a-bigger-fall-than-the-market%3A-important-facts-to-note
|
nan
|
nan
|
Wabash National (WNC) closed the latest trading day at $27.04, indicating a -1.02% change from the previous session's end. This change lagged the S&P 500's 0.01% loss on the day. Elsewhere, the Dow gained 0.15%, while the tech-heavy Nasdaq added 0.36%.
Shares of the maker of truck trailers witnessed a gain of 29.48% over the previous month, beating the performance of the Auto-Tires-Trucks sector with its gain of 4.86% and the S&P 500's gain of 5.21%.
Market participants will be closely following the financial results of Wabash National in its upcoming release. It is anticipated that the company will report an EPS of $0.89, marking a 5.95% rise compared to the same quarter of the previous year.
Any recent changes to analyst estimates for Wabash National should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. At present, Wabash National boasts a Zacks Rank of #3 (Hold).
In terms of valuation, Wabash National is currently trading at a Forward P/E ratio of 5.84. This valuation marks a discount compared to its industry's average Forward P/E of 13.6.
The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. With its current Zacks Industry Rank of 162, this industry ranks in the bottom 36% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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
Wabash National Corporation (WNC) : 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.
|
Wabash National (WNC) closed the latest trading day at $27.04, indicating a -1.02% change from the previous session's end. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
|
Wabash National (WNC) closed the latest trading day at $27.04, indicating a -1.02% change from the previous session's end. The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Click to get this free report Wabash National Corporation (WNC) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
With its current Zacks Industry Rank of 162, this industry ranks in the bottom 36% of all industries, numbering over 250. The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
|
Wabash National (WNC) closed the latest trading day at $27.04, indicating a -1.02% change from the previous session's end. Any recent changes to analyst estimates for Wabash National should also be noted by investors. With its current Zacks Industry Rank of 162, this industry ranks in the bottom 36% of all industries, numbering over 250.
|
ca9df2cd-e792-4d4d-b548-b21cf8f041b5
|
711924.0
|
2023-12-13 00:00:00 UTC
|
Corteva, Inc. (CTVA) Rises As Market Takes a Dip: Key Facts
|
DCOMP
|
https://www.nasdaq.com/articles/corteva-inc.-ctva-rises-as-market-takes-a-dip%3A-key-facts
|
nan
|
nan
|
Corteva, Inc. (CTVA) ended the recent trading session at $46.55, demonstrating a +0.02% swing from the preceding day's closing price. The stock outpaced the S&P 500's daily loss of 0.01%. Elsewhere, the Dow saw an upswing of 0.15%, while the tech-heavy Nasdaq appreciated by 0.36%.
Coming into today, shares of the agriculture had lost 0.92% in the past month. In that same time, the Consumer Staples sector gained 2.74%, while the S&P 500 gained 5.21%.
The investment community will be closely monitoring the performance of Corteva, Inc. in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $0.06, reflecting a 62.5% decrease from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $3.53 billion, indicating a 7.63% decline compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $2.59 per share and revenue of $17.11 billion, which would represent changes of -3% and -2%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Corteva, Inc. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.53% downward. Right now, Corteva, Inc. possesses a Zacks Rank of #4 (Sell).
With respect to valuation, Corteva, Inc. is currently being traded at a Forward P/E ratio of 17.95. This indicates no noticeable deviation in contrast to its industry's Forward P/E of 17.95.
We can additionally observe that CTVA currently boasts a PEG ratio of 1.39. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Agriculture - Operations was holding an average PEG ratio of 1.11 at yesterday's closing price.
The Agriculture - Operations industry is part of the Consumer Staples sector. This industry, currently bearing a Zacks Industry Rank of 154, finds itself in the bottom 39% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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
Corteva, Inc. (CTVA) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In the meantime, our current consensus estimate forecasts the revenue to be $3.53 billion, indicating a 7.63% decline compared to the corresponding quarter of the prior year. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
|
For the full year, the Zacks Consensus Estimates are projecting earnings of $2.59 per share and revenue of $17.11 billion, which would represent changes of -3% and -2%, respectively, from the prior year. Over the past month, the Zacks Consensus EPS estimate has shifted 0.53% downward. Click to get this free report Corteva, Inc. (CTVA) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
For the full year, the Zacks Consensus Estimates are projecting earnings of $2.59 per share and revenue of $17.11 billion, which would represent changes of -3% and -2%, respectively, from the prior year. The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
|
Corteva, Inc. (CTVA) ended the recent trading session at $46.55, demonstrating a +0.02% swing from the preceding day's closing price. The company's earnings per share (EPS) are projected to be $0.06, reflecting a 62.5% decrease from the same quarter last year. Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Corteva, Inc.
|
fa237930-8f84-42f4-9b1f-52b80074a60f
|
711925.0
|
2023-12-13 00:00:00 UTC
|
4 Unequaled Growth Stocks You'll Regret Not Buying in the Wake of the Nasdaq Bear Market Dip
|
DCOMP
|
https://www.nasdaq.com/articles/4-unequaled-growth-stocks-youll-regret-not-buying-in-the-wake-of-the-nasdaq-bear-market-0
|
nan
|
nan
|
It's been a truly banner year for Wall Street. All three major stock indexes have rallied strongly from their 2022 bear market lows, with the growth stock-fueled Nasdaq Composite (NASDAQINDEX: ^IXIC) leading the charge. Through the closing bell on Dec. 13, the Nasdaq was higher by 41% for the year.
Yet in spite of this massive return, Wall Street's favorite innovation-powered index remains 8% below its all-time closing high, set a little over two years ago. Though some traders are bound to view this as a lost period for growth stocks, long-term investors will wisely see this decline as an opportunity to build their stakes in fast-growing, high-quality businesses at a discount.
Image source: Getty Images.
What follows are four unequaled growth stocks you'll regret not buying in the wake of the Nasdaq bear market dip.
Alphabet
The first head-of-its-class stock to confidently add to your portfolio with the Nasdaq still well off of its all-time high is Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG), the company behind internet search engine Google and streaming platform YouTube, among other ventures.
The reason Alphabet stock isn't at an all-time high has to do with recessionary concerns. Alphabet generated almost 78% of its sales from advertising during the September-ended quarter. With a handful of money-based metrics suggesting an economic downturn is on the horizon, there's the very clear worry that ad spending will slow.
However, this is a two-sided coin for Alphabet, and it very much favors the patient. While recessions are inevitable, they tend to be short-lived. Only three of the 12 recessions following World War II lasted at least 12 months, with none surpassing 18 months. Despite being cyclical, ad-driven businesses benefit from long-winded economic expansions.
For more than a decade, Google has been Alphabet's foundational operating segment. As of November, it accounted for 91.54% of worldwide internet search share, according to GlobalStats. In fact, Google has been responsible for at least 90% of monthly internet search share dating back to the first quarter of 2015. This is going to remain a cash-cow segment for a long time to come.
From a growth perspective, what's really exciting for Alphabet is its cloud infrastructure service operations. Following years of losses, Google Cloud, the global No. 3 for cloud infrastructure service spending, has delivered three consecutive quarterly profits. Cloud margins are considerably higher than advertising margins, which clears a path for this segment to potentially become Alphabet's key driver of cash flow.
Despite a strong rally for Alphabet's stock in 2023, it remains historically inexpensive.
Okta
A second unequaled growth stock you'll regret not scooping up in the wake of the Nasdaq bear market drop is cybersecurity company Okta (NASDAQ: OKTA).
It's no secret why Okta's stock has been under pressure in recent weeks. In late September, the company was the target of hackers who breached its support systems and stole sensitive information. Okta confirmed in late November that all of its clients were affected. Though this could cost the identity verification solutions provider some customers in the very short-term, both Okta's platform and the dynamics of the cybersecurity industry are working in its favor.
With regard to the latter, businesses with an online or cloud-based presence don't have the luxury of choosing to go unprotected. Hackers and robots don't take time off when it comes to trying to steal enterprise and consumer data. As the movement of data into the cloud has accelerated, reliance on third-party providers like Okta has become even more pronounced.
Though Okta's platform was breached by hackers, it's only going to grow more efficient and effective over time. Okta's platform is cloud-native and reliant on artificial intelligence and machine learning to "evolve" and spot potential threats. Identity verification is an $80 billion addressable market that's still in its relative infancy.
The other key growth driver for Okta is its acquisition of Auth0, which was completed in February 2022. Despite higher-than-expected integration costs, this buyout is a building block for the company. It vastly expands the combined companies' opportunity in customer identity (a $30 billion addressable market), and meaningfully grows Okta's sales potential beyond the borders of the U.S. In other words, it should allow Okta to comfortably sustain a double-digit growth rate.
Image source: Getty Images.
Baidu
The third supercharged growth stock that's begging to be bought following the Nasdaq bear market decline is China-based internet search giant Baidu (NASDAQ: BIDU).
China stocks have had a rough couple of years. The world's No. 2 economy by gross domestic product struggled through three years of stringent COVID-19 lockdowns that crippled supply chains and capped consumer demand for goods and services. Even with these restrictions now lifted, it's taking time for the previously fast-growing Chinese economy to regain its swagger.
On the other hand, the same macro premise I described with Alphabet holds true with Baidu. Economic downturns tend to be short-lived, while periods of expansion can go on for years. It also doesn't hurt that China has consistently grown at a faster pace than most developed countries. With a burgeoning middle class, there's plenty of reason to be excited about high-growth China stocks if you're a long-term-minded investor.
Like Alphabet, Baidu has a veritable stranglehold on internet search market share. In November, it accounted for nearly 69% of search share for the world's No. 2 economy. With few exceptions, it's held a 60% to 85% search share in China over the past nine years. This makes it the logical go-to for advertisers and should afford the company exceptional ad-pricing power.
Baidu's AI-driven ventures are, arguably, even more compelling from an investment standpoint. Baidu is one of China's leading cloud-service providers, and Apollo Go is one of the world's top autonomous ride-hailing platforms. Baidu's non-online marketing segment has pretty consistently outpaced the growth of its search-driven segment.
At roughly 10 times forward-year earnings, Baidu is dirt cheap and ripe for the picking.
PayPal Holdings
A fourth unequaled growth stock you'll regret not buying in the wake of the Nasdaq bear market dip is fintech company PayPal Holdings (NASDAQ: PYPL).
An above-average inflation rate and the noted prospect of a U.S. recession have both worked against PayPal's stock over the past two years. Higher inflation threatens to reduce the purchasing power of low-earning workers, while recessions are known for declines in consumer and enterprise purchases. Since PayPal is predominantly a transaction-focused platform, fewer transactions would lead to a decline in gross profit for the company.
However, these fears haven't come to fruition. PayPal's key performance metrics continue to march higher, with total payment volume traversing its platforms consistently climbing by a double-digit percentage. It's important to recognize that we're still very early in the digital payment adoption cycle, and PayPal is leading that charge.
What's even more noteworthy for PayPal is that its users are more engaged than ever. As of the end of 2020, shortly after the COVID-19 pandemic began, active PayPal accounts were averaging just shy of 41 transactions over the trailing-12-month (TTM) period. Based on the company's third-quarter report (ended Sept. 30, 2023), its active accounts are now averaging closer to 57 transactions over the TTM. As a usage-driven model, this is excellent news for PayPal and its shareholders.
PayPal's new CEO, Alex Chriss, is making waves as well. Chriss has the knowledge to identify areas of growth for PayPal, but isn't afraid to reduce costs in order to bolster the company's operating margin. When coupled with an aggressive share repurchase program, PayPal stock is cheaper than it's ever been as a publicly traded company.
Should you invest $1,000 in Alphabet right now?
Before you buy stock in Alphabet, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Alphabet wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
See the 10 stocks
*Stock Advisor returns as of December 11, 2023
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Sean Williams has positions in Alphabet, Baidu, and PayPal. The Motley Fool has positions in and recommends Alphabet, Baidu, Okta, and PayPal. The Motley Fool recommends the following options: short December 2023 $67.50 puts on PayPal. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Though some traders are bound to view this as a lost period for growth stocks, long-term investors will wisely see this decline as an opportunity to build their stakes in fast-growing, high-quality businesses at a discount. 2 economy by gross domestic product struggled through three years of stringent COVID-19 lockdowns that crippled supply chains and capped consumer demand for goods and services. PayPal's key performance metrics continue to march higher, with total payment volume traversing its platforms consistently climbing by a double-digit percentage.
|
Alphabet The first head-of-its-class stock to confidently add to your portfolio with the Nasdaq still well off of its all-time high is Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG), the company behind internet search engine Google and streaming platform YouTube, among other ventures. It vastly expands the combined companies' opportunity in customer identity (a $30 billion addressable market), and meaningfully grows Okta's sales potential beyond the borders of the U.S. PayPal Holdings A fourth unequaled growth stock you'll regret not buying in the wake of the Nasdaq bear market dip is fintech company PayPal Holdings (NASDAQ: PYPL).
|
Alphabet The first head-of-its-class stock to confidently add to your portfolio with the Nasdaq still well off of its all-time high is Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG), the company behind internet search engine Google and streaming platform YouTube, among other ventures. Okta A second unequaled growth stock you'll regret not scooping up in the wake of the Nasdaq bear market drop is cybersecurity company Okta (NASDAQ: OKTA). Before you buy stock in Alphabet, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Alphabet wasn't one of them.
|
Okta A second unequaled growth stock you'll regret not scooping up in the wake of the Nasdaq bear market drop is cybersecurity company Okta (NASDAQ: OKTA). China stocks have had a rough couple of years. Before you buy stock in Alphabet, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Alphabet wasn't one of them.
|
3a0322f5-5f67-424c-8231-2bd91cedb445
|
711926.0
|
2023-12-13 00:00:00 UTC
|
5 Beaten-Down Stocks That Could Soar in 2024
|
DCOMP
|
https://www.nasdaq.com/articles/5-beaten-down-stocks-that-could-soar-in-2024
|
nan
|
nan
|
Now is a great time to make a list and check it twice -- but unlike Santa Claus, I'm not talking about a gift list. Instead, this list is all about stocks to buy in order to set yourself up for an exciting investment future. You should first prioritize buying shares of companies that have proven themselves by delivering earnings growth over time and that still offer solid long-term prospects.
Once you position these stocks as the backbone of your portfolio, you then may want to look for a few beaten-down stocks that might be ready for a rebound. But not just any beaten-down stocks. I'm talking about ones that have what it takes to grow earnings down the road. They may offer your portfolio an extra boost in 2024 as well as lasting growth. Let's check out five promising stocks that could soar as early as next year.
Image source: Getty Images.
1. Ginkgo Bioworks
Ginkgo Bioworks (NYSE: DNA) specializes in the engineering of organisms that helps players in various industries -- from pharma to materials -- develop their products. Using Ginkgo's optimized organisms, these customers can make gains in efficiency and quality.
This has helped Ginkgo land deals with some of the world's biggest companies, such as Pfizer. The pharma giant recently signed a deal -- worth as much as $331 million for Ginkgo -- to use Ginkgo's platform for the development of RNA medicines. And Ginkgo has seen growth in its active programs across sectors, with an increase of 36% in the most recent quarter year over year. The company also aims to grow its biosecurity business into a recurring revenue one.
Ginkgo isn't yet profitable but has more than $1 billion in cash to help sustain it along the path. Today, it's worth opening up a position in this organism specialist, trading at less than $2 a share.
2. Etsy
Etsy (NASDAQ: ETSY) offers sellers a platform to sell their handmade goods, which appealed to shoppers during the pandemic when they favored e-commerce. The good news is Etsy has kept those gains. For example, in the most recent quarter, it reported a double-digit four-year compound annual growth rate in revenue, gross merchandise sales, and adjusted EBITDA.
Of course, Etsy has faced some weakness in the past year as a tough economy weighed on demand for discretionary items. But the company has managed through this rough patch, and in the recent quarter reported a profit as well as a cash level of more than $1 billion. The company also said active buyers reached a record high of 92 million, showing shoppers are still flocking to Etsy. So, there's reason to be confident about the business moving forward.
As Etsy returns to its path of growth, the stock, which has fallen 30% this year, could take off -- and that makes it a great buy today, for only 17 times forward earnings estimates.
3. Teladoc Health
Teladoc Health (NYSE: TDOC) has become a giant in the world of telemedicine, serving more than half of Fortune 500 companies. But the company fell out of favor over the past couple of years as investors worried about whether it would reach profitability.
Teladoc took action, this year implementing a plan to balance revenue growth with efforts to become profitable. Things are moving in the right direction, with the company reporting results that met or beat expectations in the most recent quarter. The telemedicine player's focus on chronic care has driven revenue gains, showing that its investment in this area could pay off over time.
Most recently, Teladoc launched an operational review of its business to ensure it's keeping the focus on core products and to evaluate cost structure. This should help Teladoc further boost earnings and win the trust of shareholders.
Today, trading close to its lowest ever in relation to sales, Teladoc is a top stock to bet on for a rebound.
TDOC PS Ratio data by YCharts
4. Chewy
As investors fled stocks linked to consumer spending, they turned their backs on Chewy (NYSE: CHWY). But this e-commerce pet supplies shop deserves a second look. Here's why. Even in a difficult economic environment, Chewy has managed to grow net sales and the spend of its active customers.
And speaking of active customers, they have grown Chewy's Autoship -- a service that automatically reorders and send your favorite products to you -- into a key part of the company's business. Autoship sales climbed 13% in the most recent quarter and make up more than 76% of total sales.
Autoship's strength proves customers return to Chewy, and that's a positive sign for future revenue. Another reason to like Chewy today is its recent expansion into Canada, a market that could become just as significant as the U.S. for the company.
Finally, the e-commerce player reached a huge milestone last year when it became profitable. All of this makes Chewy an excellent growth stock to pick up now.
5. Intellia Therapeutics
Intellia Therapeutics (NASDAQ: NTLA) works in the hot area of gene editing, developing potential treatments that fix faulty genes responsible for disease.
The company's candidates remain in the clinical trial stage right now, but recent approvals of other companies' gene-editing therapies could offer Intellia a lift moving forward. That's because we now see regulators are willing to offer a nod to treatments based on this newish technology. CRISPR Therapeutics recently won the world's first authorization of a CRISPR-based gene editing treatment.
Intellia doesn't have to worry about competition from CRISPR Therapeutics, though, as the companies' programs address different diseases. And in more good news, Intellia's lead candidate, for transthyretin amyloidosis with cardiomyopathy, is beginning phase 3 studies before the end of this year.
Finally, Intellia looks financially solid, with more than $900 million in cash that should help support the company as it works to bring a first product to market.
So, in the new year, any good news from other gene-editing companies and/or progress in Intellia's own clinical trials could send the shares soaring.
Should you invest $1,000 in Ginkgo Bioworks right now?
Before you buy stock in Ginkgo Bioworks, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Ginkgo Bioworks 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
Adria Cimino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends CRISPR Therapeutics, Chewy, Etsy, Intellia Therapeutics, Pfizer, and Teladoc Health. 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.
|
For example, in the most recent quarter, it reported a double-digit four-year compound annual growth rate in revenue, gross merchandise sales, and adjusted EBITDA. As Etsy returns to its path of growth, the stock, which has fallen 30% this year, could take off -- and that makes it a great buy today, for only 17 times forward earnings estimates. And speaking of active customers, they have grown Chewy's Autoship -- a service that automatically reorders and send your favorite products to you -- into a key part of the company's business.
|
Intellia Therapeutics Intellia Therapeutics (NASDAQ: NTLA) works in the hot area of gene editing, developing potential treatments that fix faulty genes responsible for disease. So, in the new year, any good news from other gene-editing companies and/or progress in Intellia's own clinical trials could send the shares soaring. The Motley Fool has positions in and recommends CRISPR Therapeutics, Chewy, Etsy, Intellia Therapeutics, Pfizer, and Teladoc Health.
|
As Etsy returns to its path of growth, the stock, which has fallen 30% this year, could take off -- and that makes it a great buy today, for only 17 times forward earnings estimates. Before you buy stock in Ginkgo Bioworks, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Ginkgo Bioworks wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Adria Cimino has no position in any of the stocks mentioned.
|
As Etsy returns to its path of growth, the stock, which has fallen 30% this year, could take off -- and that makes it a great buy today, for only 17 times forward earnings estimates. Before you buy stock in Ginkgo Bioworks, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Ginkgo Bioworks wasn't one of them. The Motley Fool has positions in and recommends CRISPR Therapeutics, Chewy, Etsy, Intellia Therapeutics, Pfizer, and Teladoc Health.
|
494b5ec9-3bad-4e18-844c-0aac17495c7f
|
711927.0
|
2023-12-13 00:00:00 UTC
|
Rivian's (RIVN) Collaboration With AT&T Positions It for Growth
|
DCOMP
|
https://www.nasdaq.com/articles/rivians-rivn-collaboration-with-att-positions-it-for-growth
|
nan
|
nan
|
Electric vehicle maker Rivian Automotive RIVN has joined forces with telecom giant AT&T T. The deal with AT&T, set to be launched in early 2024, involves the integration of RIVN’s EVs into AT&T’s operational fleet. 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. This crucial role involves delivering over-the-air software updates, enhancing vehicle features and elevating the overall driving experience for Rivian's customers. This partnership reflects a deep integration of AT&T's connectivity solutions with Rivian's advanced vehicle technology.
The core of this deal lies in both companies' commitment to sustainability. Rivian, known for its innovative approach to EVs, is set to play a crucial role in reducing carbon emissions, especially given that commercial vans significantly contribute to CO2 emissions in the transportation sector. Hardmon Williams, senior vice president of AT&T's Connected Solutions, emphasized the importance of this pilot program in AT&T's journey toward a cleaner and more sustainable future.
After the conclusion of its exclusivity pact with Amazon AMZN, 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.Top of Form
Rivian currently carries a Zacks Rank #3 (Hold).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
AT&T Inc. (T) : 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.
|
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 crucial role involves delivering over-the-air software updates, enhancing vehicle features and elevating the overall driving experience for Rivian's customers. Hardmon Williams, senior vice president of AT&T's Connected Solutions, emphasized the importance of this pilot program in AT&T's journey toward a cleaner and more sustainable future.
|
This crucial role involves delivering over-the-air software updates, enhancing vehicle features and elevating the overall driving experience for Rivian's customers. Rivian, known for its innovative approach to EVs, is set to play a crucial role in reducing carbon emissions, especially given that commercial vans significantly contribute to CO2 emissions in the transportation sector. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report AT&T Inc. (T) : Free Stock Analysis Report Rivian Automotive, Inc. (RIVN) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
Electric vehicle maker Rivian Automotive RIVN has joined forces with telecom giant AT&T T. The deal with AT&T, set to be launched in early 2024, involves the integration of RIVN’s EVs into AT&T’s operational fleet. The ongoing relationship with Amazon, coupled with the new deal with AT&T, underscores Rivian's growing influence in the EV market.Top of Form Rivian currently carries a Zacks Rank #3 (Hold).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report AT&T Inc. (T) : Free Stock Analysis Report Rivian Automotive, Inc. (RIVN) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
This partnership reflects a deep integration of AT&T's connectivity solutions with Rivian's advanced vehicle technology. The core of this deal lies in both companies' commitment to sustainability. Free: See Our Top Stock and 4 Runners Up >> Want the latest recommendations from Zacks Investment Research?
|
33e0c1cc-5c3a-4d92-b166-f8b72ec0d653
|
711928.0
|
2023-12-13 00:00:00 UTC
|
4 Vanguard ETFs That Can Serve As a Complete Income and Capital Appreciation Portfolio
|
DCOMP
|
https://www.nasdaq.com/articles/4-vanguard-etfs-that-can-serve-as-a-complete-income-and-capital-appreciation-portfolio
|
nan
|
nan
|
Dividend stocks are often touted as a great way to build wealth. However, this is an overly simplistic, and often incorrect, viewpoint. Many dividend stocks lose money for investors over time, especially if the dividend is not reinvested.
This problem also plagues most income-oriented exchange-traded funds (ETFs). Moreover, some investors have resorted to using derivative strategies such as covered calls to boost their income from dividend stocks or income-oriented ETFs, which is usually a losing proposition due to the way this strategy works.
However, there is a simple and effective way to solve this problem for those who want to use dividend payments to supplement their retirement income. Some Vanguard ETFs that pay dividends have demonstrated the rare ability to provide both steady income and capital growth without relying on reinvesting the dividends. Furthermore, there is no need to use risky strategies such as put-underwriting to generate meaningful levels of income from an equity portfolio.
Image source: Getty Images.
To demonstrate, let's walk through an example comparing four Vanguard-indexed ETFs to four widely held blue chip dividend stocks.
The Vanguard dividend portfolio
For this example, I'm selecting four Vanguard ETFs that have a strong track record of both paying dividends and generating positive returns over the prior 10 years. Those ETFs are the Vanguard 500 Index Fund (NYSEMKT: VOO), Vanguard High Dividend Yield Index Fund (NYSEMKT: VYM), Vanguard International High Dividend Yield Fund (NASDAQ: VYMI), and Vanguard Dividend Appreciation Index Fund (NYSEMKT: VIG). The table below lays out the key metrics for each fund.
TICKER
INDEX TRACKED
YIELD (%)
ALPHA
BETA
EXPENSE RATIO (%)
VOO
S&P 500
1.48
0
1
0.03
VYM
FTSE High Dividend Yield Index
3.14
1.36
0.77
0.06
VYMI
FTSE All-World ex US High Dividend Yield Index
4.45
6.08
0.94
0.22
VIG
S&P U.S. Dividend Growers Index
1.92
0.86
-0.79
0.06
*Alpha and beta refer to the performance of the ETF relative to appropriate benchmarks over the past 36 months.
These four funds would have delivered the following results for an initial capital outlay of $250,000 per fund invested 10 years ago.
TICKER
TOTAL RETURNS SANS DIVIDENDS
TOTAL RETURN WITH DIVIDENDS REINVESTED/BEFORE TAXES
VOO
$604,960
$696,520
VYM
$423,440
$542,540
VYMI
$314,790
$431,560
VIG
$548,340
$638,930
Total
$1,891,530
$2,309,550
These four funds would generate $58,816 of annual dividend income before taxes after 10 years at their current yields. The best part, though, is that you would have almost doubled your initial investment even if you did not reinvest the dividends at the beginning. These diversified funds are also inherently less risky than individual stocks.
Let's do the same thought experiment using ExxonMobil (NYSE: XOM), Verizon Communications (NYSE: VZ), PepsiCo (NASDAQ: PEP), and Altria (NYSE: MO).
TICKER
TOTAL RETURNS SANS DIVIDENDS
TOTAL RETURN WITH DIVIDENDS REINVESTED/BEFORE TAXES
XOM
$263,900
$410,002
VZ
$195,210
$320,940
PEP
$515,940
$692,930
MO
$281,330
$514,180
Total
$1,256,380
$1,938,052
These four blue chip dividend stocks, at their current yields, would produce $106,633 of yearly dividend income before taxes in this hypothetical scenario of holding them for 10 years and reinvesting the dividends over this period. However, these four well-known dividend stocks would have markedly underperformed these four Vanguard ETFs in terms of both uninvested and reinvested dividend returns.
Key takeaway
One of the drawbacks of investing in individual stocks for future income generation is that a company may reduce or stop paying dividends. This risk is much lower for these Vanguard ETFs, but it could still occur in extreme global situations.
The main point, however, is that these Vanguard funds would have delivered positive returns over the prior 10 years, regardless of whether shareholders reinvested the dividend or not. This is not always the case for individual stocks -- even blue chip companies like the ones mentioned above.
For instance, Verizon would have lost money for shareholders who didn't reinvest the dividend over this 10-year hypothetical holding period. Moreover, academic research on the topic shows that this outcome is fairly common among dividend stocks, highlighting the advantages of buying diversified ETFs that pay regular cash distributions and that have low fees and tax liabilities.
Should you invest $1,000 in Vanguard S&P 500 ETF right now?
Before you buy stock in Vanguard S&P 500 ETF, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Vanguard S&P 500 ETF wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of the S&P 500 since 2002*.
See the 10 stocks
*Stock Advisor returns as of December 11, 2023
George Budwell has positions in Vanguard S&P 500 ETF. The Motley Fool has positions in and recommends Vanguard S&P 500 ETF, Vanguard Specialized Funds-Vanguard Dividend Appreciation ETF, and Vanguard Whitehall Funds-Vanguard High Dividend Yield ETF. The Motley Fool recommends Verizon Communications. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
S&P U.S. Dividend Growers Index 1.92 0.86 -0.79 0.06 *Alpha and beta refer to the performance of the ETF relative to appropriate benchmarks over the past 36 months. Key takeaway One of the drawbacks of investing in individual stocks for future income generation is that a company may reduce or stop paying dividends. Moreover, academic research on the topic shows that this outcome is fairly common among dividend stocks, highlighting the advantages of buying diversified ETFs that pay regular cash distributions and that have low fees and tax liabilities.
|
Those ETFs are the Vanguard 500 Index Fund (NYSEMKT: VOO), Vanguard High Dividend Yield Index Fund (NYSEMKT: VYM), Vanguard International High Dividend Yield Fund (NASDAQ: VYMI), and Vanguard Dividend Appreciation Index Fund (NYSEMKT: VIG). $281,330 $514,180 Total $1,256,380 $1,938,052 These four blue chip dividend stocks, at their current yields, would produce $106,633 of yearly dividend income before taxes in this hypothetical scenario of holding them for 10 years and reinvesting the dividends over this period. The Motley Fool has positions in and recommends Vanguard S&P 500 ETF, Vanguard Specialized Funds-Vanguard Dividend Appreciation ETF, and Vanguard Whitehall Funds-Vanguard High Dividend Yield ETF.
|
Those ETFs are the Vanguard 500 Index Fund (NYSEMKT: VOO), Vanguard High Dividend Yield Index Fund (NYSEMKT: VYM), Vanguard International High Dividend Yield Fund (NASDAQ: VYMI), and Vanguard Dividend Appreciation Index Fund (NYSEMKT: VIG). $281,330 $514,180 Total $1,256,380 $1,938,052 These four blue chip dividend stocks, at their current yields, would produce $106,633 of yearly dividend income before taxes in this hypothetical scenario of holding them for 10 years and reinvesting the dividends over this period. The Motley Fool has positions in and recommends Vanguard S&P 500 ETF, Vanguard Specialized Funds-Vanguard Dividend Appreciation ETF, and Vanguard Whitehall Funds-Vanguard High Dividend Yield ETF.
|
Those ETFs are the Vanguard 500 Index Fund (NYSEMKT: VOO), Vanguard High Dividend Yield Index Fund (NYSEMKT: VYM), Vanguard International High Dividend Yield Fund (NASDAQ: VYMI), and Vanguard Dividend Appreciation Index Fund (NYSEMKT: VIG). Before you buy stock in Vanguard S&P 500 ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Vanguard S&P 500 ETF wasn't one of them. The Motley Fool has positions in and recommends Vanguard S&P 500 ETF, Vanguard Specialized Funds-Vanguard Dividend Appreciation ETF, and Vanguard Whitehall Funds-Vanguard High Dividend Yield ETF.
|
900b1f65-5431-4119-b58f-397afd5e5525
|
711929.0
|
2023-12-13 00:00:00 UTC
|
Why NextEra Energy Partners Rallied This Week
|
DCOMP
|
https://www.nasdaq.com/articles/why-nextera-energy-partners-rallied-this-week
|
nan
|
nan
|
Shares of NextEra Energy Partners (NYSE: NEP) soared 16% this week, according to data from S&P Global Market Intelligence.
This yield company, whose model is to buy renewable-energy projects and pay out virtually all cash flow as distributions to unitholders, had fallen on hard times this year. Due to its need to consistently raise or refinance its capital, NextEra Partners is extremely sensitive to interest rates, so the summer's sharp rise in long-term rates caused the stock to crash.
But on Wednesday of this week, the Federal Reserve appeared to pivot its posture from a focus on how high to raise rates and toward when to cut them. That led to a relief rally in rate-sensitive stocks, including NextEra.
The Fed sees a pivot next year, with or without a recession
At this week's Fed meeting, the Fed left the federal funds rate unchanged. Following that meeting and Fed Chair Jerome Powell's press conference, 10-year Treasury bond yields fell sharply, reaching 3.93% by the end of trading Friday. That's in comparison to 4.27% to start the week and a recent multiyear peak of 4.99% in October.
Perhaps the most consequential part of the meeting was the Fed's "dot plot" for rate expectations going forward, showing three rate cuts in 2024 and another four in 2025. That's more cuts than the Fed had previously projected, thereby giving investors incremental confidence that the Fed would ease off its restrictive position soon without needing a recession and job losses to do so.
Thus, investors gained more confidence in the "soft-landing" scenario.
Lower interest rates would definitely be a boon to NextEra Energy Partners, which has to raise capital in order to fund the acquisition of new renewable-energy projects. The stock traded as high as $77 per share early in the year but has since cratered to just $30 despite this week's gains. This has largely been due to the rapid change in interest rates, which rocketed higher throughout the summer before peaking in October.
NEP data by YCharts.
Because NextEra either has to raise money from the debt markets or sell some of its stock to fund projects, a downward spiral in its stock price could be self-fulfilling. If the price goes low enough, the stock can become too cheap for the company to reasonably sell in order to buy more renewable wind- or solar-energy projects. And without any growth on the horizon, investors will have to take its current run-rate yield as their return.
As higher interest rates and a lower stock price emerged this year, management lowered the growth outlook for shareholder distributions in September from 12% to 6% going forward due to tighter financial conditions. But even though management was being honest with shareholders, that appeared to backfire, as NextEra's stock crashed even further, perhaps hampering the company's ability to buy projects at all. Even with this week's gains, shares are still far lower than they were prior to that announcement.
However, with the Fed easing off the brakes, the prospect of that rate-headwind trend reversing pushed NextEra's stock higher this week.
Image source: Getty Images.
Can NextEra grow from here?
With the stock around $30, NextEra is well off its recent low of $20 but still well below its 52-week highs and even well below the $48 price right before its September announcement. Thus, it remains to be seen if NextEra will be able to increase its dividend growth going forward.
On its recent quarterly-earnings report, management did announce a 6% dividend increase, in line with its new target given in September. New capital for projects will come from the recent sale of its natural gas pipeline assets, as well as some lower-cost repowering of existing wind projects, which will increase their efficiency. But there are only so many of these alternative financing or lower-capex options the company can pursue outside of selling more debt or stock.
At its current run rate of about $775 million in cash available for distribution (CAFD), NextEra's stock only trades around 3.6 times CAFD, which is cheap. But keep in mind, NextEra's enterprise value (EV), including debt, is much higher at around $9 billion, putting its EV-to-CAFD ratio at a more normal-looking 11.6.
That 9% or so CAFD yield is still attractive, although not screamingly cheap for a company that might have a hard time growing those payouts without a higher stock price. Thus, NextEra investors are really left with either the current 11% dividend payout or the hope its share price will climb in the future to more palatable levels where management can once again sell stock to fund growth. It's uncertain if and when that time will come, making NextEra shares still a risky proposition.
Should you invest $1,000 in NextEra Energy Partners right now?
Before you buy stock in NextEra Energy Partners, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and NextEra Energy Partners 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
Billy Duberstein has no position in any of the stocks mentioned. His clients may own shares of the companies 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.
|
This yield company, whose model is to buy renewable-energy projects and pay out virtually all cash flow as distributions to unitholders, had fallen on hard times this year. Following that meeting and Fed Chair Jerome Powell's press conference, 10-year Treasury bond yields fell sharply, reaching 3.93% by the end of trading Friday. Thus, NextEra investors are really left with either the current 11% dividend payout or the hope its share price will climb in the future to more palatable levels where management can once again sell stock to fund growth.
|
The Fed sees a pivot next year, with or without a recession At this week's Fed meeting, the Fed left the federal funds rate unchanged. As higher interest rates and a lower stock price emerged this year, management lowered the growth outlook for shareholder distributions in September from 12% to 6% going forward due to tighter financial conditions. Before you buy stock in NextEra Energy Partners, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and NextEra Energy Partners wasn't one of them.
|
Because NextEra either has to raise money from the debt markets or sell some of its stock to fund projects, a downward spiral in its stock price could be self-fulfilling. Before you buy stock in NextEra Energy Partners, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and NextEra Energy Partners wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Billy Duberstein has no position in any of the stocks mentioned.
|
Lower interest rates would definitely be a boon to NextEra Energy Partners, which has to raise capital in order to fund the acquisition of new renewable-energy projects. As higher interest rates and a lower stock price emerged this year, management lowered the growth outlook for shareholder distributions in September from 12% to 6% going forward due to tighter financial conditions. Before you buy stock in NextEra Energy Partners, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and NextEra Energy Partners wasn't one of them.
|
17007dcf-4d29-4cc4-8e92-c6b096853c4b
|
711930.0
|
2023-12-13 00:00:00 UTC
|
Is Take-Two Interactive Stock a Buy for 2024?
|
DCOMP
|
https://www.nasdaq.com/articles/is-take-two-interactive-stock-a-buy-for-2024
|
nan
|
nan
|
Take-Two Interactive (NASDAQ: TTWO) shareholders leveled up in 2023. The video game developer's stock beat a rallying stock market by a wide margin, gaining more than 50% through mid-December. For comparison, shares of rival Electronic Arts rose just 16% over that period.
Investors are more excited about Take-Two these days because they believe the company will soon challenge EA for its spot near the top of the video game industry. A schedule that is chock-full of new game releases will help, and so will growth from its Zynga franchises. But new investors today are being asked to a pay high premium for all that potential.
Take a bow
Take-Two's 2023 results weren't impressive, especially considering the stock's rally. Bookings, a measure of sales to consumers, fell by 4% in the most recent quarter. Most Wall Street pros are expecting revenue to rise by 4% for its fiscal 2024, which runs through March. That's slightly slower than the pace at which EA has been growing its sales.
The profit picture is even worse. Take-Two has generated significant losses over the past few quarters while EA has remained consistently profitable. Sure, much of that red ink was due to one-time charges around game delays, cancellations, and the integration of its Zynga acquisition. But its net losses doubled to $780 million over the past two quarters. Results like that are never what investors want to see.
The path forward
All that said, the video game stock's rally has been driven by expectations for growth, which are quite high. Executives predict that sales will jump by more than 40% to $8 billion in fiscal 2025 Q1, which begins in April. That year will see a packed release calendar of dozens of titles, including several major releases and some new intellectual properties. A fresh installment in the blockbuster Grand Theft Auto franchise, the first in a decade, could be one of them.
Executives say these releases are going to put Take-Two on a similar sales and profit footing as EA, which generates about $8 billion in annual sales today from its large and diverse portfolio. "We believe there are many exciting upcoming catalysts that will enable our company to achieve new record levels of financial performance," management said in its November shareholder presentation.
The risks
There are two main risks to investing in Take-Two in advance of this highly anticipated flood of content. The first is that the launches of one or more of the upcoming titles could be delayed, or that games could fail to meet the quality desires of players. The developer aims to avoid these issues, of course, but they are common enough events in the video game industry.
The second big risk is more concrete: Those who buy now may be paying too high a price for the stock. Take-Two is valued today as if it has already achieved EA's level of diversification and earnings power. Despite its much lower sales footprint and its recent unprofitability, Take-Two is trading at a price-to-sales ratio of 5 right now -- the same ratio as profitable EA.
That's an acceptable premium if you believe Take-Two's next 18 months of game releases will go off as planned and that consumer spending will hold up well through that time. If you're more risk-averse, though, you might consider watching this stock from the sidelines until shares become cheaper or the company's path toward sustainable profits becomes more clear.
Should you invest $1,000 in Take-Two Interactive Software right now?
Before you buy stock in Take-Two Interactive Software, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Take-Two Interactive Software wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
See the 10 stocks
*Stock Advisor returns as of December 11, 2023
Demitri Kalogeropoulos has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Take-Two Interactive Software. The Motley Fool recommends Electronic Arts. 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.
|
Investors are more excited about Take-Two these days because they believe the company will soon challenge EA for its spot near the top of the video game industry. "We believe there are many exciting upcoming catalysts that will enable our company to achieve new record levels of financial performance," management said in its November shareholder presentation. That's an acceptable premium if you believe Take-Two's next 18 months of game releases will go off as planned and that consumer spending will hold up well through that time.
|
Before you buy stock in Take-Two Interactive Software, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Take-Two Interactive Software wasn't one of them. The Motley Fool has positions in and recommends Take-Two Interactive Software. The Motley Fool recommends Electronic Arts.
|
Executives say these releases are going to put Take-Two on a similar sales and profit footing as EA, which generates about $8 billion in annual sales today from its large and diverse portfolio. Before you buy stock in Take-Two Interactive Software, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Take-Two Interactive Software wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Demitri Kalogeropoulos has no position in any of the stocks mentioned.
|
The path forward All that said, the video game stock's rally has been driven by expectations for growth, which are quite high. Executives say these releases are going to put Take-Two on a similar sales and profit footing as EA, which generates about $8 billion in annual sales today from its large and diverse portfolio. Before you buy stock in Take-Two Interactive Software, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Take-Two Interactive Software wasn't one of them.
|
0eca2c41-c365-4a36-a173-ae4cd7e05af9
|
711931.0
|
2023-12-13 00:00:00 UTC
|
US drillers cut oil and gas rigs for first time in five weeks - Baker Hughes
|
DCOMP
|
https://www.nasdaq.com/articles/us-drillers-cut-oil-and-gas-rigs-for-first-time-in-five-weeks-baker-hughes
|
nan
|
nan
|
Dec 15 (Reuters) - U.S. energy firms this week cut the number of oil and natural gas rigs operating for the first time in five weeks, energy services firm Baker Hughes BKR.O said in its closely followed report on Friday.
The oil and gas rig count, an early indicator of future output, fell by 3 to 623 in the week to Dec. 15. RIG-USA-BHI, RIG-OL-USA-BHI, RIG-GS-USA-BHI
Data provider Enverus, which publishes its own rig count data, said drillers cut five rigs in the week ended Dec. 13, cutting the total to 673. That put the overall count down about 2% in the last month and down about 22% year-over-year.
Baker Hughes said U.S. oil rigs fell 2 to 501 this week, while gas rigs were unchanged at 119.
That brings the rig count down from a post-pandemic high of 784 in December 2022 due to a drop in oil and gas prices.
U.S. oil futures CLc1were down about 11% so far this year after gaining 7% in 2022. U.S. gas futures NGc1, meanwhile, have plunged about 44% so far this year after rising about 20% last year.
With oil and gas prices down, 14 of the independent exploration and production companies tracked by U.S. financial services firm TD Cowen said they planned to cut spending by about 4% in 2024 versus 2023.
TD Cowen said 25 of the E&Ps it tracks said they planned to boost spending by about 20% in 2023 versus 2022 after increasing spending about 40% in 2022 and 4% in 2021.
Much of that extra 2023 spending, however, went to cover rising inflation-related costs for labor and equipment as many firms remain more focused on returning money to investors and paying down debt rather than boosting oil and gas production.
But even as some producers have cut back on new drilling over the past year, oil and gas output was still on track to hit record highs in 2023 and 2024 as firms complete work on their already drilled wells.
The total number of Drilled but Uncompleted (DUC) oil and gas wells dropped in October to the lowest since December 2013, according to the U.S. Energy Information Administration's (EIA) Drilling Productivity Report.
(Reporting by Scott DiSavino; Editing by Chizu Nomiyama)
((scott.disavino@thomsonreuters.com; +1 332 219 1922; Reuters Messaging: scott.disavino.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
That brings the rig count down from a post-pandemic high of 784 in December 2022 due to a drop in oil and gas prices. With oil and gas prices down, 14 of the independent exploration and production companies tracked by U.S. financial services firm TD Cowen said they planned to cut spending by about 4% in 2024 versus 2023. Much of that extra 2023 spending, however, went to cover rising inflation-related costs for labor and equipment as many firms remain more focused on returning money to investors and paying down debt rather than boosting oil and gas production.
|
Dec 15 (Reuters) - U.S. energy firms this week cut the number of oil and natural gas rigs operating for the first time in five weeks, energy services firm Baker Hughes BKR.O said in its closely followed report on Friday. Baker Hughes said U.S. oil rigs fell 2 to 501 this week, while gas rigs were unchanged at 119. With oil and gas prices down, 14 of the independent exploration and production companies tracked by U.S. financial services firm TD Cowen said they planned to cut spending by about 4% in 2024 versus 2023.
|
Dec 15 (Reuters) - U.S. energy firms this week cut the number of oil and natural gas rigs operating for the first time in five weeks, energy services firm Baker Hughes BKR.O said in its closely followed report on Friday. With oil and gas prices down, 14 of the independent exploration and production companies tracked by U.S. financial services firm TD Cowen said they planned to cut spending by about 4% in 2024 versus 2023. But even as some producers have cut back on new drilling over the past year, oil and gas output was still on track to hit record highs in 2023 and 2024 as firms complete work on their already drilled wells.
|
Dec 15 (Reuters) - U.S. energy firms this week cut the number of oil and natural gas rigs operating for the first time in five weeks, energy services firm Baker Hughes BKR.O said in its closely followed report on Friday. The oil and gas rig count, an early indicator of future output, fell by 3 to 623 in the week to Dec. 15. TD Cowen said 25 of the E&Ps it tracks said they planned to boost spending by about 20% in 2023 versus 2022 after increasing spending about 40% in 2022 and 4% in 2021.
|
a55500f3-3314-48cb-b1d6-0ed0d119e0a0
|
711932.0
|
2023-12-13 00:00:00 UTC
|
Technology Sector Update for 12/15/2023: PLTR, INTC, RCM
|
DCOMP
|
https://www.nasdaq.com/articles/technology-sector-update-for-12-15-2023%3A-pltr-intc-rcm
|
nan
|
nan
|
Tech stocks were mixed Friday afternoon, with the Technology Select Sector SPDR Fund (XLK) rising 0.7% and the SPDR S&P Semiconductor ETF (XSD) fractionally lower.
The Philadelphia Semiconductor index rose 0.9%.
In corporate news, Palantir (PLTR) said Friday it has received a one-year extension worth up to $115 million to its existing contract for the US Army's Vantage data-driven operations and decision-making platform. Its shares were down 0.5%.
Intel (INTC) shares gained almost 2% after Chief Executive Pat Gelsinger said the company has no plans to spin out its contract chip manufacturing unit as a separate entity, according to a Reuters report.
R1 RCM (RCM) was upgraded to overweight from equalweight by Morgan Stanley. Its shares were still shedding 1.5%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Tech stocks were mixed Friday afternoon, with the Technology Select Sector SPDR Fund (XLK) rising 0.7% and the SPDR S&P Semiconductor ETF (XSD) fractionally lower. In corporate news, Palantir (PLTR) said Friday it has received a one-year extension worth up to $115 million to its existing contract for the US Army's Vantage data-driven operations and decision-making platform. Intel (INTC) shares gained almost 2% after Chief Executive Pat Gelsinger said the company has no plans to spin out its contract chip manufacturing unit as a separate entity, according to a Reuters report.
|
Tech stocks were mixed Friday afternoon, with the Technology Select Sector SPDR Fund (XLK) rising 0.7% and the SPDR S&P Semiconductor ETF (XSD) fractionally lower. R1 RCM (RCM) was upgraded to overweight from equalweight by Morgan Stanley. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Tech stocks were mixed Friday afternoon, with the Technology Select Sector SPDR Fund (XLK) rising 0.7% and the SPDR S&P Semiconductor ETF (XSD) fractionally lower. In corporate news, Palantir (PLTR) said Friday it has received a one-year extension worth up to $115 million to its existing contract for the US Army's Vantage data-driven operations and decision-making platform. Intel (INTC) shares gained almost 2% after Chief Executive Pat Gelsinger said the company has no plans to spin out its contract chip manufacturing unit as a separate entity, according to a Reuters report.
|
Tech stocks were mixed Friday afternoon, with the Technology Select Sector SPDR Fund (XLK) rising 0.7% and the SPDR S&P Semiconductor ETF (XSD) fractionally lower. The Philadelphia Semiconductor index rose 0.9%. Its shares were down 0.5%.
|
4650815f-34ca-403f-a2e5-1e61364fd8bc
|
711933.0
|
2023-12-13 00:00:00 UTC
|
Consumer Sector Update for 12/15/2023: COST, GM, UL
|
DCOMP
|
https://www.nasdaq.com/articles/consumer-sector-update-for-12-15-2023%3A-cost-gm-ul
|
nan
|
nan
|
Consumer stocks were edging higher Friday afternoon, with the Consumer Staples Select Sector SPDR Fund (XLP) fractionally higher and the Consumer Discretionary Select Sector SPDR Fund (XLY) rising 0.2%.
In corporate news, Costco (COST) shares jumped 4.2% after its fiscal Q1 results exceeded expectations. The company reported fiscal Q1 earnings of $3.58 per diluted share. Analysts surveyed by Capital IQ expected $3.42. Revenue was $57.80 billion, compared with the analysts' estimate of $57.79 billion.
General Motors (GM) is planning to cut 1,300 jobs at two Michigan plants starting Jan. 1, the company said in state filings. Its shares fell 1.6%.
Unilever (UL) is in advanced stages to offload Elida Beauty business to private-equity firm Yellow Wood, Reuters reported Thursday. Unilever fell 0.9%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In corporate news, Costco (COST) shares jumped 4.2% after its fiscal Q1 results exceeded expectations. General Motors (GM) is planning to cut 1,300 jobs at two Michigan plants starting Jan. 1, the company said in state filings. Unilever (UL) is in advanced stages to offload Elida Beauty business to private-equity firm Yellow Wood, Reuters reported Thursday.
|
Consumer stocks were edging higher Friday afternoon, with the Consumer Staples Select Sector SPDR Fund (XLP) fractionally higher and the Consumer Discretionary Select Sector SPDR Fund (XLY) rising 0.2%. The company reported fiscal Q1 earnings of $3.58 per diluted share. Its shares fell 1.6%.
|
In corporate news, Costco (COST) shares jumped 4.2% after its fiscal Q1 results exceeded expectations. The company reported fiscal Q1 earnings of $3.58 per diluted share. Unilever (UL) is in advanced stages to offload Elida Beauty business to private-equity firm Yellow Wood, Reuters reported Thursday.
|
Consumer stocks were edging higher Friday afternoon, with the Consumer Staples Select Sector SPDR Fund (XLP) fractionally higher and the Consumer Discretionary Select Sector SPDR Fund (XLY) rising 0.2%. Its shares fell 1.6%. Unilever fell 0.9%.
|
8dd15a4c-6939-47cc-bcf7-87aa23fe0f9a
|
711934.0
|
2023-12-13 00:00:00 UTC
|
Will RH's 11.7% Rally Continue in 2024 Amid Tepid Projections?
|
DCOMP
|
https://www.nasdaq.com/articles/will-rhs-11.7-rally-continue-in-2024-amid-tepid-projections
|
nan
|
nan
|
RH's RH shares spiked 11.74% on Dec 14, after the Commerce Department reported an unexpected rise in U.S. retail sales, which increased 0.3% in November. This was better than the analysts’ expectation of 0.1% growth and a decline of 0.2% reported in October.
The upside was also contributed by the Federal Reserve’s recent decision to hold interest rates as the inflation rate is showing signs of ease. The committee members also expect at least three rate cuts in 2024.
Other home furnishing retailers like Williams-Sonoma, Inc. WSM, Fortune Brands Innovations, Inc. FBIN and Ethan Allen Interiors, Inc. ETD also gained 4.5%, 4.77% and 4.74%, respectively, in the last trading session after the news release.
In the past month, shares of RH rose 24.6%, outpacing WSM, FBIN and ETD’s 20.4%, 20.6% and 16.9% growth, respectively.
Image Source: Zacks Investment Research
This leading home furnishing retailer has undertaken various growth initiatives to drive profitability and stands out from its peers by expanding its presence across the globe.
A Look at the Factors Impacting RH's Business & Expectations
Unexpected higher expenses, encompassing international openings, expenditures linked to the impending acquisition of the New York Guesthouse property and unsuccessful endeavors to secure the iconic One Ocean Drive Miami Beach location negatively impacted RH’s third-quarter fiscal 2023 results. In early October, the company also faced increased challenges when mortgage rates rose more than 8% and the conflict in the Middle East escalated due to the Hamas’ invasion of Israel.
Recently, it posted lackluster third-quarter fiscal 2023 results, wherein it incurred an adjusted loss of 42 cents per share versus adjusted earnings of $4.26 in the year-ago period. Adjusted net revenues of $751 million declined 13.6% on a year-over-year basis.
Consequently, the company now expects revenues for the year to be in the range of $3.06-$3.08 billion. It now expects the adjusted operating margin to fall in the band of 13.6-14%.
RH currently carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings estimates for fiscal 2023 have moved south to $8.03 per share from $9.21 in the past seven days, indicating a 60% year-over-year decline on 14.6% lower revenues.
Nonetheless, the recent news, along with improving inflationary conditions and a strong job market, is likely to build strength for the company. In fact, RH anticipates an acceleration in demand trends during the first half of 2024 as it undergoes a product transformation, enhances in-stock availability, completes the reset of its Galleries and introduces new RH Modern and RH Outdoor Sourcebooks in the first quarter of fiscal 2024.
Let’s delve deeper into the factors likely to offset economic woes.
Strategic Transitional Initiatives: The company’s new strategic operating platform, which includes transitioning from a promotional to a membership model, a distribution center network redesign, the makeover of reverse logistics and outlet businesses and the re-conceptualization of home delivery and customer experience, is driving its performance. These initiatives have helped reduce costs and inventory levels while driving earnings and inventory turns.
RH plans to evolve from a home furnishing retailer to a luxury lifestyle brand over time with the help of Product Elevation, Gallery Transformation, Brand Elevation & Digital Reimagination and Global Expansion moves. The firm has plans to unveil a collection of new products, with more than 70 new furniture and upholstery collections across RH Interiors, Contemporary, Modern, Outdoor, Baby & Child and Teen in fiscal 2023.
The company expects its inflection point to reach its peak in the first half of 2024 as new collections fully ramp and another cycle of Sourcebook mailings begins. This will completely transform and refresh the assortment across its entire brand over 12 months.
Global Expansion Efforts: RH is steadfast in expanding its presence globally. The company's global expansion plan, local market initiatives and North American Gallery transformation present a multi-billion-dollar opportunity. During second-quarter fiscal 2023, it expanded its presence in the United Kingdom with the opening of RH England, located at the historic Aynho Park, a 17th-century estate spanning 73 acres.
Given its countryside setting, RH anticipates that most of its revenues will come from interior design and trade businesses, relying on building relationships with high-value repeat clients such as interior design firms and hospitality projects. The firm has also secured its first new location for a Design Studio in Palm Desert, which is scheduled to open in the first half of 2024.
RH focuses on several strategic initiatives that include occupancy leverage that it expects to gain from real estate transformation, product margin expansion as it continues to drive higher full-price selling in core business and cost savings from improvements in its operating platform and organizational structure. Although the company expects margin contraction in the near future, these moves are likely to boost its performance in the long term.
A Brief on the Abovementioned Stocks
Williams-Sonoma's earnings surpassed estimates in three of the trailing four quarters, delivering an average surprise of 8.9%. For fiscal 2023, the earnings expectation for WSM moved up to $14.49 per share from $13.92 in the past 30 days.
Fortune Brands Innovations' earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 10.6%. For 2023, the earnings expectation moved up to $3.88 per share from $3.87 in the past seven days.
Ethan Allen's earnings surpassed estimates in three of the trailing four quarters and missed on one occasion, delivering an average surprise of 8.9%. Earnings estimates for fiscal 2024 have decreased to $2.98 per share from $3.24 over the past 60 days.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Williams-Sonoma, Inc. (WSM) : Free Stock Analysis Report
RH (RH) : Free Stock Analysis Report
Ethan Allen Interiors Inc. (ETD) : Free Stock Analysis Report
Fortune Brands Innovations, Inc. (FBIN) : 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.
|
Other home furnishing retailers like Williams-Sonoma, Inc. WSM, Fortune Brands Innovations, Inc. FBIN and Ethan Allen Interiors, Inc. ETD also gained 4.5%, 4.77% and 4.74%, respectively, in the last trading session after the news release. Image Source: Zacks Investment Research This leading home furnishing retailer has undertaken various growth initiatives to drive profitability and stands out from its peers by expanding its presence across the globe. RH focuses on several strategic initiatives that include occupancy leverage that it expects to gain from real estate transformation, product margin expansion as it continues to drive higher full-price selling in core business and cost savings from improvements in its operating platform and organizational structure.
|
Other home furnishing retailers like Williams-Sonoma, Inc. WSM, Fortune Brands Innovations, Inc. FBIN and Ethan Allen Interiors, Inc. ETD also gained 4.5%, 4.77% and 4.74%, respectively, in the last trading session after the news release. RH plans to evolve from a home furnishing retailer to a luxury lifestyle brand over time with the help of Product Elevation, Gallery Transformation, Brand Elevation & Digital Reimagination and Global Expansion moves. Click to get this free report Williams-Sonoma, Inc. (WSM) : Free Stock Analysis Report RH (RH) : Free Stock Analysis Report Ethan Allen Interiors Inc. (ETD) : Free Stock Analysis Report Fortune Brands Innovations, Inc. (FBIN) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
A Look at the Factors Impacting RH's Business & Expectations Unexpected higher expenses, encompassing international openings, expenditures linked to the impending acquisition of the New York Guesthouse property and unsuccessful endeavors to secure the iconic One Ocean Drive Miami Beach location negatively impacted RH’s third-quarter fiscal 2023 results. In fact, RH anticipates an acceleration in demand trends during the first half of 2024 as it undergoes a product transformation, enhances in-stock availability, completes the reset of its Galleries and introduces new RH Modern and RH Outdoor Sourcebooks in the first quarter of fiscal 2024. Click to get this free report Williams-Sonoma, Inc. (WSM) : Free Stock Analysis Report RH (RH) : Free Stock Analysis Report Ethan Allen Interiors Inc. (ETD) : Free Stock Analysis Report Fortune Brands Innovations, Inc. (FBIN) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
RH plans to evolve from a home furnishing retailer to a luxury lifestyle brand over time with the help of Product Elevation, Gallery Transformation, Brand Elevation & Digital Reimagination and Global Expansion moves. RH focuses on several strategic initiatives that include occupancy leverage that it expects to gain from real estate transformation, product margin expansion as it continues to drive higher full-price selling in core business and cost savings from improvements in its operating platform and organizational structure. Earnings estimates for fiscal 2024 have decreased to $2.98 per share from $3.24 over the past 60 days.
|
cea79c5d-ed9f-4f92-a6ee-27a584ccbfe1
|
711935.0
|
2023-12-13 00:00:00 UTC
|
US rules could force early production halt to some gas vehicles -letter
|
DCOMP
|
https://www.nasdaq.com/articles/us-rules-could-force-early-production-halt-to-some-gas-vehicles-letter
|
nan
|
nan
|
By David Shepardson
WASHINGTON, Dec 15 (Reuters) - A group representing major automakers urged the Biden administration to make significant changes to three proposed vehicle rules, warning they could force car companies to hastily stop building some gas-powered vehicles.
The administration has proposed, among others, stringent rules that it estimates would result in 67% of new vehicles being electric by 2032.
The Alliance for Automotive Innovation, in a previously unreported letter to three cabinet agencies and the White House dated Wednesday and seen by Reuters, warned the proposed rules "could prematurely force abandonment of many internal combustion engine vehicles and their associated revenue, reducing the availability of capital necessary for automakers to fund the EV transition."
The agencies and White House did not immediately respond to requests for comment.
The alliance represents General Motors GM.N, Toyota Motor 7203.T, Volkswagen VOWG_p.DE, Ford Motor F.N, Stellantis STLAM.MI and others,
Automakers have been sounding the alarm about rules proposed by the Environmental Protection Agency (EPA), National Highway Traffic Safety Administration (NHTSA) and Energy Department, warning they could result in $14 billion in Corporate Average Fuel Economy (CAFE) fines, including $6.5 billion for GM and $3 billion for Stellantis.
The letter, signed by Alliance CEO John Bozzella, said the final rules expected in early 2024 will "effectively lock in the pace of automotive electrification."
He cited the "critical need" for government wide coordination at the most senior levels, and questioned if "substantive work to revise the proposed rulemakings" was taking place in any meaningful way.
GM CEO Mary Barra met with White House Chief of Staff Jeff Zients and environmental adviser Ali Zaidi on Wednesday, sources told Reuters, and they discussed a number of issues including vehicle regulations.
In a previously unreported meeting, EPA Administrator Michael Regan met with the auto alliance on Nov. 29, newly released records show.
The EPA has proposed requiring 56% cuts in vehicle emissions by 2032, resulting in 67% of new vehicles being electric by 2032.
NHTSA in July proposed hiking CAFE standards by 2032 to a fleet-wide average of 58 miles per gallon by boosting requirements 2% per year for passenger cars and 4% annually for pickup trucks and SUVs. U.S. automakers want the increase for trucks cut to 2% annually.
Referring to "overlapping, duplicative and sometimes conflicting objectives" in the rules, Bozzella also said that the Energy Department's proposed revision of EV compliance value calculations for NHTSA's CAFE program would devalue EV fuel economy by 72%.
The DOE proposal jeopardizes Biden's goal of 50% EV sales by 2030, Bozzella added, warning the rules could also "lead to investment decisions that move capital away from innovative EV technologies toward mature internal combustion technologies."
GM and Ford have in recent months slowed the pace of some EV production. Republicans in Congress are pushing to block EV regulations.
(Reporting by David Shepardson; Editing by Kirsten Donovan)
((David.Shepardson@thomsonreuters.com; 2028988324;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
The Alliance for Automotive Innovation, in a previously unreported letter to three cabinet agencies and the White House dated Wednesday and seen by Reuters, warned the proposed rules "could prematurely force abandonment of many internal combustion engine vehicles and their associated revenue, reducing the availability of capital necessary for automakers to fund the EV transition." GM CEO Mary Barra met with White House Chief of Staff Jeff Zients and environmental adviser Ali Zaidi on Wednesday, sources told Reuters, and they discussed a number of issues including vehicle regulations. NHTSA in July proposed hiking CAFE standards by 2032 to a fleet-wide average of 58 miles per gallon by boosting requirements 2% per year for passenger cars and 4% annually for pickup trucks and SUVs.
|
By David Shepardson WASHINGTON, Dec 15 (Reuters) - A group representing major automakers urged the Biden administration to make significant changes to three proposed vehicle rules, warning they could force car companies to hastily stop building some gas-powered vehicles. The Alliance for Automotive Innovation, in a previously unreported letter to three cabinet agencies and the White House dated Wednesday and seen by Reuters, warned the proposed rules "could prematurely force abandonment of many internal combustion engine vehicles and their associated revenue, reducing the availability of capital necessary for automakers to fund the EV transition." The alliance represents General Motors GM.N, Toyota Motor 7203.T, Volkswagen VOWG_p.DE, Ford Motor F.N, Stellantis STLAM.MI and others, Automakers have been sounding the alarm about rules proposed by the Environmental Protection Agency (EPA), National Highway Traffic Safety Administration (NHTSA) and Energy Department, warning they could result in $14 billion in Corporate Average Fuel Economy (CAFE) fines, including $6.5 billion for GM and $3 billion for Stellantis.
|
By David Shepardson WASHINGTON, Dec 15 (Reuters) - A group representing major automakers urged the Biden administration to make significant changes to three proposed vehicle rules, warning they could force car companies to hastily stop building some gas-powered vehicles. The Alliance for Automotive Innovation, in a previously unreported letter to three cabinet agencies and the White House dated Wednesday and seen by Reuters, warned the proposed rules "could prematurely force abandonment of many internal combustion engine vehicles and their associated revenue, reducing the availability of capital necessary for automakers to fund the EV transition." The alliance represents General Motors GM.N, Toyota Motor 7203.T, Volkswagen VOWG_p.DE, Ford Motor F.N, Stellantis STLAM.MI and others, Automakers have been sounding the alarm about rules proposed by the Environmental Protection Agency (EPA), National Highway Traffic Safety Administration (NHTSA) and Energy Department, warning they could result in $14 billion in Corporate Average Fuel Economy (CAFE) fines, including $6.5 billion for GM and $3 billion for Stellantis.
|
By David Shepardson WASHINGTON, Dec 15 (Reuters) - A group representing major automakers urged the Biden administration to make significant changes to three proposed vehicle rules, warning they could force car companies to hastily stop building some gas-powered vehicles. The Alliance for Automotive Innovation, in a previously unreported letter to three cabinet agencies and the White House dated Wednesday and seen by Reuters, warned the proposed rules "could prematurely force abandonment of many internal combustion engine vehicles and their associated revenue, reducing the availability of capital necessary for automakers to fund the EV transition." The EPA has proposed requiring 56% cuts in vehicle emissions by 2032, resulting in 67% of new vehicles being electric by 2032.
|
fb6d59d5-59ce-42e8-8068-1ffc24bbacda
|
711936.0
|
2023-12-13 00:00:00 UTC
|
Notable Friday Option Activity: DVN, TFC, TXN
|
DCOMP
|
https://www.nasdaq.com/articles/notable-friday-option-activity%3A-dvn-tfc-txn
|
nan
|
nan
|
Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Devon Energy Corp. (Symbol: DVN), where a total volume of 39,348 contracts has been traded thus far today, a contract volume which is representative of approximately 3.9 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 44.7% of DVN's average daily trading volume over the past month, of 8.8 million shares. Particularly high volume was seen for the $45 strike call option expiring February 16, 2024, with 1,971 contracts trading so far today, representing approximately 197,100 underlying shares of DVN. Below is a chart showing DVN's trailing twelve month trading history, with the $45 strike highlighted in orange:
Truist Financial Corp (Symbol: TFC) options are showing a volume of 41,723 contracts thus far today. That number of contracts represents approximately 4.2 million underlying shares, working out to a sizeable 44.7% of TFC's average daily trading volume over the past month, of 9.3 million shares. Particularly high volume was seen for the $35 strike call option expiring February 16, 2024, with 10,140 contracts trading so far today, representing approximately 1.0 million underlying shares of TFC. Below is a chart showing TFC's trailing twelve month trading history, with the $35 strike highlighted in orange:
And Texas Instruments Inc. (Symbol: TXN) saw options trading volume of 23,945 contracts, representing approximately 2.4 million underlying shares or approximately 44.6% of TXN's average daily trading volume over the past month, of 5.4 million shares. Particularly high volume was seen for the $195 strike call option expiring January 19, 2024, with 3,932 contracts trading so far today, representing approximately 393,200 underlying shares of TXN. Below is a chart showing TXN's trailing twelve month trading history, with the $195 strike highlighted in orange:
For the various different available expirations for DVN options, TFC options, or TXN options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
Also see:
Top Ten Hedge Funds Holding SNY
Institutional Holders of Airbnb
Walgreens Boots Alliance DMA
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Particularly high volume was seen for the $45 strike call option expiring February 16, 2024, with 1,971 contracts trading so far today, representing approximately 197,100 underlying shares of DVN. Particularly high volume was seen for the $35 strike call option expiring February 16, 2024, with 10,140 contracts trading so far today, representing approximately 1.0 million underlying shares of TFC. Particularly high volume was seen for the $195 strike call option expiring January 19, 2024, with 3,932 contracts trading so far today, representing approximately 393,200 underlying shares of TXN.
|
Below is a chart showing DVN's trailing twelve month trading history, with the $45 strike highlighted in orange: Truist Financial Corp (Symbol: TFC) options are showing a volume of 41,723 contracts thus far today. Particularly high volume was seen for the $35 strike call option expiring February 16, 2024, with 10,140 contracts trading so far today, representing approximately 1.0 million underlying shares of TFC. Below is a chart showing TFC's trailing twelve month trading history, with the $35 strike highlighted in orange: And Texas Instruments Inc. (Symbol: TXN) saw options trading volume of 23,945 contracts, representing approximately 2.4 million underlying shares or approximately 44.6% of TXN's average daily trading volume over the past month, of 5.4 million shares.
|
Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Devon Energy Corp. (Symbol: DVN), where a total volume of 39,348 contracts has been traded thus far today, a contract volume which is representative of approximately 3.9 million underlying shares (given that every 1 contract represents 100 underlying shares). Particularly high volume was seen for the $35 strike call option expiring February 16, 2024, with 10,140 contracts trading so far today, representing approximately 1.0 million underlying shares of TFC. Below is a chart showing TFC's trailing twelve month trading history, with the $35 strike highlighted in orange: And Texas Instruments Inc. (Symbol: TXN) saw options trading volume of 23,945 contracts, representing approximately 2.4 million underlying shares or approximately 44.6% of TXN's average daily trading volume over the past month, of 5.4 million shares.
|
Particularly high volume was seen for the $35 strike call option expiring February 16, 2024, with 10,140 contracts trading so far today, representing approximately 1.0 million underlying shares of TFC. Below is a chart showing TFC's trailing twelve month trading history, with the $35 strike highlighted in orange: And Texas Instruments Inc. (Symbol: TXN) saw options trading volume of 23,945 contracts, representing approximately 2.4 million underlying shares or approximately 44.6% of TXN's average daily trading volume over the past month, of 5.4 million shares. Below is a chart showing TXN's trailing twelve month trading history, with the $195 strike highlighted in orange: For the various different available expirations for DVN options, TFC options, or TXN options, visit StockOptionsChannel.com.
|
3a16ba8a-0c82-4be9-94da-51bde62da063
|
711937.0
|
2023-12-13 00:00:00 UTC
|
Noteworthy Friday Option Activity: MCD, DRI, USB
|
DCOMP
|
https://www.nasdaq.com/articles/noteworthy-friday-option-activity%3A-mcd-dri-usb
|
nan
|
nan
|
Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in McDonald's Corp (Symbol: MCD), where a total of 31,194 contracts have traded so far, representing approximately 3.1 million underlying shares. That amounts to about 97.4% of MCD's average daily trading volume over the past month of 3.2 million shares. Particularly high volume was seen for the $290 strike call option expiring December 15, 2023, with 13,221 contracts trading so far today, representing approximately 1.3 million underlying shares of MCD. Below is a chart showing MCD's trailing twelve month trading history, with the $290 strike highlighted in orange:
Darden Restaurants, Inc. (Symbol: DRI) saw options trading volume of 7,778 contracts, representing approximately 777,800 underlying shares or approximately 92.7% of DRI's average daily trading volume over the past month, of 839,455 shares. Especially high volume was seen for the $170 strike call option expiring December 15, 2023, with 1,004 contracts trading so far today, representing approximately 100,400 underlying shares of DRI. Below is a chart showing DRI's trailing twelve month trading history, with the $170 strike highlighted in orange:
And US Bancorp (Symbol: USB) options are showing a volume of 85,657 contracts thus far today. That number of contracts represents approximately 8.6 million underlying shares, working out to a sizeable 88.5% of USB's average daily trading volume over the past month, of 9.7 million shares. Particularly high volume was seen for the $45 strike call option expiring April 19, 2024, with 21,027 contracts trading so far today, representing approximately 2.1 million underlying shares of USB. Below is a chart showing USB's trailing twelve month trading history, with the $45 strike highlighted in orange:
For the various different available expirations for MCD options, DRI options, or USB options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
Also see:
BDC Baby Bonds and Preferreds
Funds Holding ALDW
Funds Holding EIGR
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Particularly high volume was seen for the $290 strike call option expiring December 15, 2023, with 13,221 contracts trading so far today, representing approximately 1.3 million underlying shares of MCD. Especially high volume was seen for the $170 strike call option expiring December 15, 2023, with 1,004 contracts trading so far today, representing approximately 100,400 underlying shares of DRI. Particularly high volume was seen for the $45 strike call option expiring April 19, 2024, with 21,027 contracts trading so far today, representing approximately 2.1 million underlying shares of USB.
|
Particularly high volume was seen for the $290 strike call option expiring December 15, 2023, with 13,221 contracts trading so far today, representing approximately 1.3 million underlying shares of MCD. Below is a chart showing MCD's trailing twelve month trading history, with the $290 strike highlighted in orange: Darden Restaurants, Inc. (Symbol: DRI) saw options trading volume of 7,778 contracts, representing approximately 777,800 underlying shares or approximately 92.7% of DRI's average daily trading volume over the past month, of 839,455 shares. Below is a chart showing DRI's trailing twelve month trading history, with the $170 strike highlighted in orange: And US Bancorp (Symbol: USB) options are showing a volume of 85,657 contracts thus far today.
|
Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in McDonald's Corp (Symbol: MCD), where a total of 31,194 contracts have traded so far, representing approximately 3.1 million underlying shares. Particularly high volume was seen for the $290 strike call option expiring December 15, 2023, with 13,221 contracts trading so far today, representing approximately 1.3 million underlying shares of MCD. Below is a chart showing MCD's trailing twelve month trading history, with the $290 strike highlighted in orange: Darden Restaurants, Inc. (Symbol: DRI) saw options trading volume of 7,778 contracts, representing approximately 777,800 underlying shares or approximately 92.7% of DRI's average daily trading volume over the past month, of 839,455 shares.
|
Particularly high volume was seen for the $290 strike call option expiring December 15, 2023, with 13,221 contracts trading so far today, representing approximately 1.3 million underlying shares of MCD. Below is a chart showing MCD's trailing twelve month trading history, with the $290 strike highlighted in orange: Darden Restaurants, Inc. (Symbol: DRI) saw options trading volume of 7,778 contracts, representing approximately 777,800 underlying shares or approximately 92.7% of DRI's average daily trading volume over the past month, of 839,455 shares. Especially high volume was seen for the $170 strike call option expiring December 15, 2023, with 1,004 contracts trading so far today, representing approximately 100,400 underlying shares of DRI.
|
43284e7a-a621-42ca-9609-86b85da2e418
|
711938.0
|
2023-12-13 00:00:00 UTC
|
Noteworthy Friday Option Activity: SYF, PANW, HD
|
DCOMP
|
https://www.nasdaq.com/articles/noteworthy-friday-option-activity%3A-syf-panw-hd
|
nan
|
nan
|
Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Synchrony Financial (Symbol: SYF), where a total of 42,357 contracts have traded so far, representing approximately 4.2 million underlying shares. That amounts to about 88.4% of SYF's average daily trading volume over the past month of 4.8 million shares. Especially high volume was seen for the $25 strike put option expiring June 21, 2024, with 12,500 contracts trading so far today, representing approximately 1.2 million underlying shares of SYF. Below is a chart showing SYF's trailing twelve month trading history, with the $25 strike highlighted in orange:
Palo Alto Networks, Inc (Symbol: PANW) saw options trading volume of 38,371 contracts, representing approximately 3.8 million underlying shares or approximately 70.6% of PANW's average daily trading volume over the past month, of 5.4 million shares. Especially high volume was seen for the $310 strike call option expiring December 15, 2023, with 3,525 contracts trading so far today, representing approximately 352,500 underlying shares of PANW. Below is a chart showing PANW's trailing twelve month trading history, with the $310 strike highlighted in orange:
And Home Depot Inc (Symbol: HD) options are showing a volume of 23,730 contracts thus far today. That number of contracts represents approximately 2.4 million underlying shares, working out to a sizeable 68.4% of HD's average daily trading volume over the past month, of 3.5 million shares. Especially high volume was seen for the $320 strike call option expiring March 15, 2024, with 1,009 contracts trading so far today, representing approximately 100,900 underlying shares of HD. Below is a chart showing HD's trailing twelve month trading history, with the $320 strike highlighted in orange:
For the various different available expirations for SYF options, PANW options, or HD options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
Also see:
PJC shares outstanding history
APRI market cap history
ETFs Holding HMY
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Especially high volume was seen for the $25 strike put option expiring June 21, 2024, with 12,500 contracts trading so far today, representing approximately 1.2 million underlying shares of SYF. Especially high volume was seen for the $310 strike call option expiring December 15, 2023, with 3,525 contracts trading so far today, representing approximately 352,500 underlying shares of PANW. Especially high volume was seen for the $320 strike call option expiring March 15, 2024, with 1,009 contracts trading so far today, representing approximately 100,900 underlying shares of HD.
|
Especially high volume was seen for the $25 strike put option expiring June 21, 2024, with 12,500 contracts trading so far today, representing approximately 1.2 million underlying shares of SYF. Below is a chart showing SYF's trailing twelve month trading history, with the $25 strike highlighted in orange: Palo Alto Networks, Inc (Symbol: PANW) saw options trading volume of 38,371 contracts, representing approximately 3.8 million underlying shares or approximately 70.6% of PANW's average daily trading volume over the past month, of 5.4 million shares. Below is a chart showing PANW's trailing twelve month trading history, with the $310 strike highlighted in orange: And Home Depot Inc (Symbol: HD) options are showing a volume of 23,730 contracts thus far today.
|
Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Synchrony Financial (Symbol: SYF), where a total of 42,357 contracts have traded so far, representing approximately 4.2 million underlying shares. Below is a chart showing SYF's trailing twelve month trading history, with the $25 strike highlighted in orange: Palo Alto Networks, Inc (Symbol: PANW) saw options trading volume of 38,371 contracts, representing approximately 3.8 million underlying shares or approximately 70.6% of PANW's average daily trading volume over the past month, of 5.4 million shares. That number of contracts represents approximately 2.4 million underlying shares, working out to a sizeable 68.4% of HD's average daily trading volume over the past month, of 3.5 million shares.
|
Especially high volume was seen for the $25 strike put option expiring June 21, 2024, with 12,500 contracts trading so far today, representing approximately 1.2 million underlying shares of SYF. Below is a chart showing SYF's trailing twelve month trading history, with the $25 strike highlighted in orange: Palo Alto Networks, Inc (Symbol: PANW) saw options trading volume of 38,371 contracts, representing approximately 3.8 million underlying shares or approximately 70.6% of PANW's average daily trading volume over the past month, of 5.4 million shares. Below is a chart showing HD's trailing twelve month trading history, with the $320 strike highlighted in orange: For the various different available expirations for SYF options, PANW options, or HD options, visit StockOptionsChannel.com.
|
bc7e4bb9-da12-4d5f-bba3-059380cc7535
|
711939.0
|
2023-12-13 00:00:00 UTC
|
Want to Be in the AI Millionaires Club? 3 Top Stocks You Need to Own Now
|
DCOMP
|
https://www.nasdaq.com/articles/want-to-be-in-the-ai-millionaires-club-3-top-stocks-you-need-to-own-now
|
nan
|
nan
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Artificial intelligence (AI) has been the dominant trade in 2023, with no shortage of AI stocks to buy. Just about any stock linked to AI has risen over the last 12 months, from heavyweights such as Microsoft (NASDAQ:MSFT) to smaller start-ups such as C3.ai (NYSE:AI). While some analysts say AI is played out and fully priced into the market, don’t believe it.
As technology that is in its infancy and likely to continue dominating society for the foreseeable future, AI can be expected to be a stock market driver for many years. Most companies are only now beginning to monetize the technology. And Fortune Business Insights expects theglobal marketfor AI to quadruple to $2 trillion by 2030. Want to be in the AI millionaires club? Here are three top stocks you need to own now.
Adobe (ADBE)
Source: Tattoboo / Shutterstock
Admittedly, its guidance for the coming year wasn’t great, but software giant Adobe (NASDAQ:ADBE) remains a great bet on the future of AI. Investors can now buy ADBE stock a little cheaper, with the share price down 6% after the company issued a weak outlook for 2024. Lost in the concern over the guidance was that Adobe’s fiscal fourth quarter earnings beat Wall Street forecasts, with the company reporting earnings per share (EPS) of $4.27 compared to the $4.14 that was anticipated.
Revenue in the latest quarter totaled $5.05 billion versus $5.03 billion that analysts estimated. The company’s revenue grew 12% from a year ago while its net income increased 26% to $1.48 billion, or $3.23 per share. During the quarter, Adobe increased the costs of some of its software subscriptions, notably those that now include AI. In the most recent quarter, Adobe’s Firefly generative AI feature became available in the company’s Photoshop and Illustrator programs, and it is now monetizing AI.
ADBE stock has increased 74% in 2023.
Apple (AAPL)
Source: sylv1rob1 / Shutterstock.com
For a less obvious AI play, consider consumer electronics giant Apple (NASDAQ:AAPL). In early 2024, the company will release its Vision Pro mixed reality headset, Apple’s first entirely new product since the launch of the Apple Watch in 2014. There’s speculation that the Vision Pro headset could be Apple’s push into video games and that the company is eyeing AI-based gaming as a future endeavor. Apple CEO Tim Cook has said that the company is investing in AI and already makes its own microchips for its iPhones and MacBook computers.
While we wait for Apple to clarify its intentions for AI, it’s important to note that the stock is on a tear, recently closing at an all-time high on a split-adjusted basis. Apple’s share price has now risen 59% in 2023, putting the company’s market capitalization at $3.08 trillion, the biggest of any publicly traded company. Over the past year, Apple’s market value has grown by nearly $1 trillion. Analysts see continued catalysts for AAPL stock from renewed growth in its iPhone sales and the continued expansion of its services arm, which includes its streaming platform. Plus, new AI products.
Advanced Micro Devices (AMD)
Source: Pamela Marciano / Shutterstock.com
Now for more or a slam dunk when it comes to AI. That would be chipmaker Advanced Micro Devices (NASDAQ:AMD). The company’s share price has gained 20% since the start of December when the company introduced a new series of microchips called the “Ryzen 8040,” aimed at boosting AI applications by up to 60%. The new chips will be incorporated into laptops and personal computers (PCs) made by companies such as Dell Technologies (NYSE:DELL) starting in early 2024.
AMD also announced that its new MI300X accelerator microchip is now available for sale. That chip is used in data centers and directly competes with Nvidia’s (NASDAQ:NVDA) AI data center chips. While investors and analysts love the new AI chips, they are also responding to AMD executives who recently said that they expect the AI data center chip to generate $2 billion of revenue for all of 2024. AMD stock is up 120% in 2023 with continued momentum behind it.
On the date of publication, Joel Baglole held long positions in MSFT, AAPL and NVDA. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.
More From InvestorPlace
Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.
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 Want to Be in the AI Millionaires Club? 3 Top Stocks You Need to Own Now 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.
|
As technology that is in its infancy and likely to continue dominating society for the foreseeable future, AI can be expected to be a stock market driver for many years. While we wait for Apple to clarify its intentions for AI, it’s important to note that the stock is on a tear, recently closing at an all-time high on a split-adjusted basis. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.
|
Adobe (ADBE) Source: Tattoboo / Shutterstock Admittedly, its guidance for the coming year wasn’t great, but software giant Adobe (NASDAQ:ADBE) remains a great bet on the future of AI. That chip is used in data centers and directly competes with Nvidia’s (NASDAQ:NVDA) AI data center chips. While investors and analysts love the new AI chips, they are also responding to AMD executives who recently said that they expect the AI data center chip to generate $2 billion of revenue for all of 2024.
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips Artificial intelligence (AI) has been the dominant trade in 2023, with no shortage of AI stocks to buy. In the most recent quarter, Adobe’s Firefly generative AI feature became available in the company’s Photoshop and Illustrator programs, and it is now monetizing AI. While investors and analysts love the new AI chips, they are also responding to AMD executives who recently said that they expect the AI data center chip to generate $2 billion of revenue for all of 2024.
|
ADBE stock has increased 74% in 2023. Apple (AAPL) Source: sylv1rob1 / Shutterstock.com For a less obvious AI play, consider consumer electronics giant Apple (NASDAQ:AAPL). AMD stock is up 120% in 2023 with continued momentum behind it.
|
35a183b9-7abc-40e3-9db8-6d0b6748f6bf
|
711940.0
|
2023-12-13 00:00:00 UTC
|
Noteworthy Friday Option Activity: RTX, MAR, APA
|
DCOMP
|
https://www.nasdaq.com/articles/noteworthy-friday-option-activity%3A-rtx-mar-apa
|
nan
|
nan
|
Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in RTX Corp (Symbol: RTX), where a total of 37,255 contracts have traded so far, representing approximately 3.7 million underlying shares. That amounts to about 54.2% of RTX's average daily trading volume over the past month of 6.9 million shares. Particularly high volume was seen for the $81 strike put option expiring December 29, 2023, with 5,003 contracts trading so far today, representing approximately 500,300 underlying shares of RTX. Below is a chart showing RTX's trailing twelve month trading history, with the $81 strike highlighted in orange:
Marriott International, Inc. (Symbol: MAR) saw options trading volume of 7,421 contracts, representing approximately 742,100 underlying shares or approximately 53.8% of MAR's average daily trading volume over the past month, of 1.4 million shares. Particularly high volume was seen for the $215 strike put option expiring December 15, 2023, with 4,025 contracts trading so far today, representing approximately 402,500 underlying shares of MAR. Below is a chart showing MAR's trailing twelve month trading history, with the $215 strike highlighted in orange:
And APA Corp (Symbol: APA) options are showing a volume of 19,393 contracts thus far today. That number of contracts represents approximately 1.9 million underlying shares, working out to a sizeable 49.7% of APA's average daily trading volume over the past month, of 3.9 million shares. Particularly high volume was seen for the $31 strike put option expiring January 26, 2024, with 10,018 contracts trading so far today, representing approximately 1.0 million underlying shares of APA. Below is a chart showing APA's trailing twelve month trading history, with the $31 strike highlighted in orange:
For the various different available expirations for RTX options, MAR options, or APA options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
Also see:
HSC Options Chain
IMPL Insider Buying
Top Ten Hedge Funds Holding CDI
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Particularly high volume was seen for the $81 strike put option expiring December 29, 2023, with 5,003 contracts trading so far today, representing approximately 500,300 underlying shares of RTX. Particularly high volume was seen for the $215 strike put option expiring December 15, 2023, with 4,025 contracts trading so far today, representing approximately 402,500 underlying shares of MAR. Particularly high volume was seen for the $31 strike put option expiring January 26, 2024, with 10,018 contracts trading so far today, representing approximately 1.0 million underlying shares of APA.
|
Particularly high volume was seen for the $81 strike put option expiring December 29, 2023, with 5,003 contracts trading so far today, representing approximately 500,300 underlying shares of RTX. Below is a chart showing RTX's trailing twelve month trading history, with the $81 strike highlighted in orange: Marriott International, Inc. (Symbol: MAR) saw options trading volume of 7,421 contracts, representing approximately 742,100 underlying shares or approximately 53.8% of MAR's average daily trading volume over the past month, of 1.4 million shares. Below is a chart showing MAR's trailing twelve month trading history, with the $215 strike highlighted in orange: And APA Corp (Symbol: APA) options are showing a volume of 19,393 contracts thus far today.
|
Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in RTX Corp (Symbol: RTX), where a total of 37,255 contracts have traded so far, representing approximately 3.7 million underlying shares. Below is a chart showing RTX's trailing twelve month trading history, with the $81 strike highlighted in orange: Marriott International, Inc. (Symbol: MAR) saw options trading volume of 7,421 contracts, representing approximately 742,100 underlying shares or approximately 53.8% of MAR's average daily trading volume over the past month, of 1.4 million shares. Particularly high volume was seen for the $31 strike put option expiring January 26, 2024, with 10,018 contracts trading so far today, representing approximately 1.0 million underlying shares of APA.
|
Below is a chart showing RTX's trailing twelve month trading history, with the $81 strike highlighted in orange: Marriott International, Inc. (Symbol: MAR) saw options trading volume of 7,421 contracts, representing approximately 742,100 underlying shares or approximately 53.8% of MAR's average daily trading volume over the past month, of 1.4 million shares. Particularly high volume was seen for the $31 strike put option expiring January 26, 2024, with 10,018 contracts trading so far today, representing approximately 1.0 million underlying shares of APA. Today's Most Active Call & Put Options of the S&P 500 » Also see: HSC Options Chain IMPL Insider Buying Top Ten Hedge Funds Holding CDI The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
07c4b5b7-a751-4c3c-85dc-e11132fbeb3f
|
711941.0
|
2023-12-13 00:00:00 UTC
|
3 Cryptos You Can Count On to Catapult You to Riches
|
DCOMP
|
https://www.nasdaq.com/articles/3-cryptos-you-can-count-on-to-catapult-you-to-riches
|
nan
|
nan
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Cryptocurrencies have been the place to be in 2023 and the current rally in digital tokens looks set to continue into the new year. News that the U.S. Federal Reserve is planning to cut rates in 2024 is the latest catalyst for crypto, as lower rates give investors the confidence to allocate capital to riskier assets. The price of cryptos large and small grew over the last 12 months on expectations the Securities and Exchange Commission (SEC) will soon approve cryptocurrency-based spot exchange-traded funds (ETFs). That development could lead to billions of dollars worth of inflows and improved investor sentiment. The gains in crypto during 2023 outpaced all other asset classes, including high-flying technology stocks. Here are three cryptos to get rich.
Ethereum (ETH-USD)
Source: shutterstock.com/BT Side
Analysts at JPMorgan Chase (NYSE:JPM) just issued a report forecasting Ethereum (ETH-USD) will outperform Bitcoin (BTC-USD) in 2024. JPMorgan says in a new outlook that Ethereum is likely to outperform all other cryptocurrencies in the coming year driven by its EIP-4844 upgrade expected to take place during the first half of next year. The new upgrade will enable Ethereum to process and hold more data, making the second-largest cryptocurrency by market capitalization more efficient.
“We believe that this upgrade will likely prove a bigger step towards improving Ethereum network activity, thus helping Ethereum to outperform,” says JPMorgan in its crypto report. Overall, the company said it is cautiously optimistic for the cryptocurrency market in 2024, noting that venture capital funding in the crypto space remains “tentative.” The price of ETH has risen by 92% so far this year.
Bitcoin (BTC-USD)
Source: Sittipong Phokawattana / Shutterstock.com
Even though it sees Ethereum outperforming, JPMorgan does acknowledge several catalysts looming on the horizon for Bitcoin, including the potential approval of exchange-traded funds (ETFs) and a reduction in interest rates. Indeed, cryptocurrency prices got a boost recently when the U.S. Federal Reserve pivoted away from its monetary tightening regime and said it now expects at least three interest rate cuts in 2024.
The price of Bitcoin, the largest cryptocurrency by market capitalization, is now up almost 160% this year and trading at $43,023.97. U.S. cryptocurrencies have rallied over the past two months on expectations that regulators will soon approve the first Bitcoin ETF. Some analysts see $44,000 as a key support level for Bitcoin and expect the next big run in the largest cryptocurrency to occur once the price breaks above $45,000 — a move that could occur before the end of the calendar year.
Solana (SOL-USD)
Source: Rcc_Btn / Shutterstock.com
As the cryptocurrency rally broadens out, the price of altcoin Solana (SOL-USD) has risen more than 400% over the last six months. Solana is currently trading at $75.62 per token, up almost 250% since October amid an ongoing rally in digital tokens. Solana’s price was also given a boost after well-known investor Cathie Wood praised its functionality and said the altcoin is superior to Ethereum — on which it is based. “Solana is even faster and cost-effective than Ether,” said Wood in an interview on CNBC.
Solana is now the sixth-largest cryptocurrency by market capitalization. Like Wood, many crypto analysts praise it as a faster and more efficient version of Ethereum. Market data shows that trading activity in Solana has been steadily growing throughout 2023. It’s a big reversal for Solana, whose price fell over 90% and traded below $10 in 2022. But now, Solana is one of the best-performing cryptos of 2023, having outpaced the price increases in both Bitcoin and Ethereum.
On the date of publication, Joel Baglole 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.
Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.
More From InvestorPlace
Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.
The #1 AI Investment Might Be This Company You’ve Never Heard Of
The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors
The post 3 Cryptos You Can Count On to Catapult You to Riches 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.
|
The price of cryptos large and small grew over the last 12 months on expectations the Securities and Exchange Commission (SEC) will soon approve cryptocurrency-based spot exchange-traded funds (ETFs). Overall, the company said it is cautiously optimistic for the cryptocurrency market in 2024, noting that venture capital funding in the crypto space remains “tentative.” The price of ETH has risen by 92% so far this year. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips Cryptocurrencies have been the place to be in 2023 and the current rally in digital tokens looks set to continue into the new year. Ethereum (ETH-USD) Source: shutterstock.com/BT Side Analysts at JPMorgan Chase (NYSE:JPM) just issued a report forecasting Ethereum (ETH-USD) will outperform Bitcoin (BTC-USD) in 2024. Solana (SOL-USD) Source: Rcc_Btn / Shutterstock.com As the cryptocurrency rally broadens out, the price of altcoin Solana (SOL-USD) has risen more than 400% over the last six months.
|
Overall, the company said it is cautiously optimistic for the cryptocurrency market in 2024, noting that venture capital funding in the crypto space remains “tentative.” The price of ETH has risen by 92% so far this year. The price of Bitcoin, the largest cryptocurrency by market capitalization, is now up almost 160% this year and trading at $43,023.97. Solana (SOL-USD) Source: Rcc_Btn / Shutterstock.com As the cryptocurrency rally broadens out, the price of altcoin Solana (SOL-USD) has risen more than 400% over the last six months.
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips Cryptocurrencies have been the place to be in 2023 and the current rally in digital tokens looks set to continue into the new year. Bitcoin (BTC-USD) Source: Sittipong Phokawattana / Shutterstock.com Even though it sees Ethereum outperforming, JPMorgan does acknowledge several catalysts looming on the horizon for Bitcoin, including the potential approval of exchange-traded funds (ETFs) and a reduction in interest rates. The price of Bitcoin, the largest cryptocurrency by market capitalization, is now up almost 160% this year and trading at $43,023.97.
|
490e6276-5fb9-49de-b9fa-8da07326c11a
|
711942.0
|
2023-12-13 00:00:00 UTC
|
3 Dividend Stock Cash Machines That Will Pay You Forever
|
DCOMP
|
https://www.nasdaq.com/articles/3-dividend-stock-cash-machines-that-will-pay-you-forever
|
nan
|
nan
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Cash flow is the lifeblood of durable dividend stocks. When it comes to dividend stocks, there’s an elite tier of companies I like to call the “cash machines.” These stocks have stood the test of time by generating hearty profits on a consistent basis. Further, these companies share that bounty with shareholders year in and year out. I’m talking about dividend aristocrats and kings – the stocks that have consistently raised their payouts for 25+ or 50+ straight years through recessions, wars, inflation spikes, you name it.
These evergreen dividend growers deserve special attention in your portfolio. Not only do they provide much-needed income you can actually live on during retirement, but they also provide your portfolio with some real stability via their steady payouts. And in turbulent market environments like we face today, having rock-solid stocks anchoring your portfolio is critical.
Let’s take a look!
Coca-Cola (KO)
Source: Fotazdymak / Shutterstock.com
Coca-Cola (NYSE:KO) should be one of the top three stocks on your list when looking for dividend aristocrats that churn out steady dividend income. We all know Coke – it’s a global brand that has stood the test of time. But, many investors overlook this company as a dividend play, even though it’s produced more than 61 years of consecutive dividend hikes. This dividend consistency makes KO an exceptional stock to buy and hold for the long-term.
Beyond its signature sodas, Coca-Cola owns other staple drink brands like Dasani, Sprite, and Fanta. This diversification provides cross-category durability to its cash flows. And despite its household name status, Coca-Cola still has an exciting growth runway. Analysts forecast ~7% annual EPS growth and ~5% revenue expansion through 2030, as emerging markets develop an insatiable thirst for its products.
Coca-Cola’s rock-solid balance sheet and cash flow metrics give me great confidence in its dividend staying power. Year-to-date, operating cash flow rose to $8.9 billion. Meanwhile, free cash flow jumped to over $7.9 million. With boatloads of cash pouring in, Coke has plenty of ammo to pad shareholders’ pockets for decades to come.
Trading at just 22-times earnings with a 3.1% forward yield, KO stock offers a compelling risk-reward option as a low volatility anchor for any dividend portfolio. The company’s brands have dominated for over a century, and Coca-Cola has a long history of raising its dividends over the past six decades. Thus, KO stock deserves its premium. I believe patient investors will be well-rewarded owning this stock for the long-term.
Emerson (EMR)
Source: Tada Images / Shutterstock.com
Lesser-known than Coke, but no less impressive as a cash machine, Emerson (NYSE:EMR) provides impressive dividend stability as one of America’s most diversified industrial giants. Emerson produces automation systems, valves, sensors, and measurement instrumentation across various sectors including oil/gas, chemical processing, food production, and more.
This diversification makes Emerson’s cash flows bulletproof. Even if one industry faces a downturn, Emerson’s clientele diversification will help the company power through challenging times and maintain its impressive 66-year streak of rising dividends.
Like Coca-Cola, Emerson also retains promising growth drivers that should fuel strong profit and cash flow growth for years to come. This year alone, analysts expect 18% earnings per share growth and 14% revenue growth, as industrial activity continues to rebound.
While Emerson’s most recent earnings disappointed due to persistent macro headwinds, I believe these are temporary setbacks. Zooming out, Emerson has historically exceeded earnings estimates by double-digit percentage points over numerous quarters. Its broad portfolio should drive cash flow growth over time, leading to a higher valuation.
Emerson provides tremendous defensiveness in this current market environment. This benefit, combination with the company’s earnings growth potential, means its current multiple of 17-times earnings seems dirt cheap. Set-and-forget dividend investors can count on this cash machine to continue delivering.
Visa (V)
Source: Kikinunchi / Shutterstock.com
Visa (NYSE:V) might seem like a surprise pick for dividend reliability. After all, its sub-1% yield doesn’t exactly scream “income stock.” But make no mistake about it – Visa is a cash cow that should flood your portfolio with total returns (dividends and capital appreciation) for decades to come. That’s thanks to its shareholder-friendly capital return program.
Raking in profit margins of more than 54% thanks to its duopoly in payment networks with Mastercard (NYSE:MA), Visa has churned out positive cash flow even during periods like the Great Recession and COVID-19 when consumer spending dried up. Because it simply facilitates transactions between merchants and banking partners rather than directly lending, Visa avoids risky credit exposure when downturns strike.
And with cash flows surging 150% over the past two years, what does Visa do with all its excess liquidity? It funnels billions back to shareholders through buybacks and dividends, rather than wasting it on low-return investments.
Buybacks might not provide immediate income like dividends, but they boost Visa’s earnings per share over time by reducing its share count. This should drive consistent capital gains for patient investors. Pair that with 16 years of consecutive dividend growth, and Visa offers reliable long-run returns.
So, while you sacrifice some current yield buying Visa, your total returns should handily beat the market if held for the long haul. Visa’s rock-solid business model and pristine balance sheet mean this cash machine won’t be slowing anytime soon. I’ll gladly let Visa’s management team allocate capital. They’ve done a tremendous job creating value the past decade. Notably, the company also recently announced a $25 billion stock buyback plan, furthering my thesis around this stock as a top shareholder-friendly giant to own for decades.
On the date of publication, Omor Ibne Ehsan 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.
Omor Ibne Ehsan is a writer at InvestorPlace. He is a self-taught investor with a focus on growth and cyclical stocks that have strong fundamentals, value, and long-term potential. He also has an interest in high-risk, high-reward investments such as cryptocurrencies and penny stocks. You can follow him on LinkedIn.
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. Here’s How to Get In.
The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors
The post 3 Dividend Stock Cash Machines That Will Pay You Forever 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.
|
Trading at just 22-times earnings with a 3.1% forward yield, KO stock offers a compelling risk-reward option as a low volatility anchor for any dividend portfolio. After all, its sub-1% yield doesn’t exactly scream “income stock.” But make no mistake about it – Visa is a cash cow that should flood your portfolio with total returns (dividends and capital appreciation) for decades to come. Raking in profit margins of more than 54% thanks to its duopoly in payment networks with Mastercard (NYSE:MA), Visa has churned out positive cash flow even during periods like the Great Recession and COVID-19 when consumer spending dried up.
|
Emerson (EMR) Source: Tada Images / Shutterstock.com Lesser-known than Coke, but no less impressive as a cash machine, Emerson (NYSE:EMR) provides impressive dividend stability as one of America’s most diversified industrial giants. This year alone, analysts expect 18% earnings per share growth and 14% revenue growth, as industrial activity continues to rebound. Pair that with 16 years of consecutive dividend growth, and Visa offers reliable long-run returns.
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips Cash flow is the lifeblood of durable dividend stocks. Coca-Cola (KO) Source: Fotazdymak / Shutterstock.com Coca-Cola (NYSE:KO) should be one of the top three stocks on your list when looking for dividend aristocrats that churn out steady dividend income. The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors The post 3 Dividend Stock Cash Machines That Will Pay You Forever appeared first on InvestorPlace.
|
Coca-Cola (KO) Source: Fotazdymak / Shutterstock.com Coca-Cola (NYSE:KO) should be one of the top three stocks on your list when looking for dividend aristocrats that churn out steady dividend income. This dividend consistency makes KO an exceptional stock to buy and hold for the long-term. This diversification makes Emerson’s cash flows bulletproof.
|
e3d9b62a-d457-4c2e-9df9-fcd12444c8bf
|
711943.0
|
2023-12-13 00:00:00 UTC
|
Webster Financial (WBS) Agrees to Acquire Ametros for $350M
|
DCOMP
|
https://www.nasdaq.com/articles/webster-financial-wbs-agrees-to-acquire-ametros-for-%24350m
|
nan
|
nan
|
Webster Financial Corporation WBS entered into an agreement to acquire Ametros Financial Corporation, a custodian and administrator of medical insurance claim settlements, in an all-cash deal worth $350 million. The transaction value is subject to customary adjustments.
The completion of the deal, subject to the satisfaction of the customary closing conditions and anti-trust review, is expected in the first quarter of 2024. Following the acquisition, Ametros will operate as a subsidiary of Webster Financial.
WBS' acquisition of Ametros is expected to enhance its expertise in healthcare financial services and provide a new source of non-interest income.
Moreover, the features of Ametros’ deposit balances add a significant value to WBS. Notably, its deposits are expected to witness a five-year compound annual growth rate of around 25%. It would also add low-cost and long-duration deposits to WBS’ deposit portfolio. Ametros’ deposits have an average cost of less than 10 basis points and an average duration of more than 20 years.
Over the past three years, Ametros’ deposits under custody have more than doubled and the average deposit balance per account was $33,000. As of December 2023, it had around $804 million in deposits under custody. This amount will become a part of WBS’ deposit balance post the closure of the deal.
Webster Financial's management anticipates the acquisition to be accretive to the Zacks Consensus Estimate for 2025 earnings by more than 2%. Also, it expects to generate an internal rate of return of more than 25% and recover its tangible book value dilution over a period of five years.
John Ciulla, the president and chief executive officer of Webster Financial stated, “This acquisition closely aligns with our strategic focus on building a diverse and unique funding base.”
He further added, “Ametros’ market position and value proposition for its clients and partners underpin a robust growth trajectory for this highly complementary business. Ametros builds on Webster’s history of developing non-traditional deposit verticals with a favorable financial profile, including HSA Bank and interLINK.”
WBS' shares have risen 35.1% over the past six months compared with the industry’s 15.3% growth.
Image Source: Zacks Investment Research
WBS presently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Inorganic Expansion Effort by Another Firm
In September 2023, Eastern Bankshares, Inc. EBC, the stock holding company for Eastern Bank, entered into an all-stock merger deal with Cambridge Bancorp CATC. Per the deal, CATC will merge with EBC. The completion of the deal, subject to the receipt of regulatory approvals by the shareholders of both companies, is expected in the first quarter of 2024.
Per the terms of the deal, which has been approved by the boards of both companies, Cambridge shareholders will receive 4.956 shares of Eastern common stock for each share of Cambridge common stock they own.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Webster Financial Corporation (WBS) : Free Stock Analysis Report
Cambridge Bancorp (CATC) : Free Stock Analysis Report
Eastern Bankshares, Inc. (EBC) : 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.
|
WBS' acquisition of Ametros is expected to enhance its expertise in healthcare financial services and provide a new source of non-interest income. John Ciulla, the president and chief executive officer of Webster Financial stated, “This acquisition closely aligns with our strategic focus on building a diverse and unique funding base.” He further added, “Ametros’ market position and value proposition for its clients and partners underpin a robust growth trajectory for this highly complementary business. Ametros builds on Webster’s history of developing non-traditional deposit verticals with a favorable financial profile, including HSA Bank and interLINK.” WBS' shares have risen 35.1% over the past six months compared with the industry’s 15.3% growth.
|
Inorganic Expansion Effort by Another Firm In September 2023, Eastern Bankshares, Inc. EBC, the stock holding company for Eastern Bank, entered into an all-stock merger deal with Cambridge Bancorp CATC. Per the terms of the deal, which has been approved by the boards of both companies, Cambridge shareholders will receive 4.956 shares of Eastern common stock for each share of Cambridge common stock they own. Click to get this free report Webster Financial Corporation (WBS) : Free Stock Analysis Report Cambridge Bancorp (CATC) : Free Stock Analysis Report Eastern Bankshares, Inc. (EBC) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
Ametros builds on Webster’s history of developing non-traditional deposit verticals with a favorable financial profile, including HSA Bank and interLINK.” WBS' shares have risen 35.1% over the past six months compared with the industry’s 15.3% growth. Per the terms of the deal, which has been approved by the boards of both companies, Cambridge shareholders will receive 4.956 shares of Eastern common stock for each share of Cambridge common stock they own. Click to get this free report Webster Financial Corporation (WBS) : Free Stock Analysis Report Cambridge Bancorp (CATC) : Free Stock Analysis Report Eastern Bankshares, Inc. (EBC) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
Following the acquisition, Ametros will operate as a subsidiary of Webster Financial. Over the past three years, Ametros’ deposits under custody have more than doubled and the average deposit balance per account was $33,000. Image Source: Zacks Investment Research WBS presently carries a Zacks Rank #3 (Hold).
|
01b0dcf1-60c4-4ef4-b414-d301c3aeb765
|
711944.0
|
2023-12-13 00:00:00 UTC
|
Why ChargePoint Stock Just Dropped 6%
|
DCOMP
|
https://www.nasdaq.com/articles/why-chargepoint-stock-just-dropped-6
|
nan
|
nan
|
File this story under the heading "All good things must come to an end." After a strong, Fed-news-inspired, two-day run that added more than 30% to its share price, electric vehicle charging company ChargePoint (NYSE: CHPT) is taking a breather on Friday.
Taking as its excuse a lowered (but still optimistic) price target from analysts at DA Davidson this morning, ChargePoint shares retreated 6.2% through noon ET.
Is this bad news?
I wouldn't call this "bad news," exactly. For one thing, Davidson apparently didn't give a whole lot of detail as to why it changed its price target on ChargePoint stock. All we know from StreetInsider.com, which covered the story today, is that Davidson analyst Matt Summerville has lowered his price target on ChargePoint from $10 a share to $4.
It's also worth pointing out that $4 is a price target fully 48% higher than where ChargePoint stock trades today, meaning the analyst remains very optimistic about the stock. And, of course, ChargePoint stock giving back a handful of percentage points today still leaves the shares trading 15% above where they began this week. That hardly seems a number worth complaining about.
So, is ChargePoint stock a buy?
That said, I wouldn't go so far as to say you should go out and buy ChargePoint either, even with Davidson saying the stock is nearly 50% undervalued. Why not? Well, not to put too fine a point on it, I think Davidson is dead wrong about ChargePoint.
Valued at more than $1.1 billion, but with losses of more than $440 million over the last 12 months (and growing) and $357 million in annual cash burn (also growing), ChargePoint looks likely to burn through the rest of its cash over the next 12 months. Granted, the company could still take on more debt, and interest rates on debt seem to be moderating a bit. Even so, with EV sales slowing, the revolution seemingly running out of steam, and a strong challenge from Tesla on charging standards complicating matters, things don't look too great for ChargePoint's business right now.
Call me a skeptic if you like, but I'd avoid this one.
Should you invest $1,000 in ChargePoint right now?
Before you buy stock in ChargePoint, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and ChargePoint 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
Rich Smith has no position in any of the stocks mentioned. 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.
|
After a strong, Fed-news-inspired, two-day run that added more than 30% to its share price, electric vehicle charging company ChargePoint (NYSE: CHPT) is taking a breather on Friday. Taking as its excuse a lowered (but still optimistic) price target from analysts at DA Davidson this morning, ChargePoint shares retreated 6.2% through noon ET. Even so, with EV sales slowing, the revolution seemingly running out of steam, and a strong challenge from Tesla on charging standards complicating matters, things don't look too great for ChargePoint's business right now.
|
Taking as its excuse a lowered (but still optimistic) price target from analysts at DA Davidson this morning, ChargePoint shares retreated 6.2% through noon ET. All we know from StreetInsider.com, which covered the story today, is that Davidson analyst Matt Summerville has lowered his price target on ChargePoint from $10 a share to $4. Before you buy stock in ChargePoint, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and ChargePoint wasn't one of them.
|
It's also worth pointing out that $4 is a price target fully 48% higher than where ChargePoint stock trades today, meaning the analyst remains very optimistic about the stock. Before you buy stock in ChargePoint, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and ChargePoint wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Rich Smith has no position in any of the stocks mentioned.
|
It's also worth pointing out that $4 is a price target fully 48% higher than where ChargePoint stock trades today, meaning the analyst remains very optimistic about the stock. Before you buy stock in ChargePoint, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and ChargePoint wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Rich Smith has no position in any of the stocks mentioned.
|
dc2f766a-8e62-4b78-a71c-3b03c89757b7
|
711945.0
|
2023-12-13 00:00:00 UTC
|
Costco’s earnings: Bulk buy blitz or bubble burst?
|
DCOMP
|
https://www.nasdaq.com/articles/costcos-earnings%3A-bulk-buy-blitz-or-bubble-burst
|
nan
|
nan
|
Costco Wholesale Corporation (NASDAQ: COST) is a retail sector titan synonymous with warehouses full of towering pallets and bargain-hunting bonanzas. Two significant announcements have investors and analysts a buzz: a massive $15 special dividend and an earnings beat that exceeded even the most optimistic expectations. The unexpected financial developments have caused a flurry of inquiries, leaving many wondering what lies beneath the surface of this retail giant's strategy.
Costco was founded in 1976 and has evolved from a humble warehouse in Seattle to a global behemoth with over 870 locations and millions of loyal members.
Its secret sauce: A unique value proposition built on membership. Costco members pay an annual fee to unlock a treasure trove of discounted goods, from everyday essentials to aspirational luxuries.
Costco's success is due to more than bulk purchases. Its meticulously crafted business model is also a key factor. Leveraging its massive buying power can secure rock-bottom prices from suppliers, which offers lower margins but higher volume, a delicate balance it has mastered. In addition, Costco has embraced the changing retail landscape. Its online platform caters to convenience-seekers, while its international expansion taps into global demand for value.
Decoding Costco's special dividend
The recent declaration of a special $15 dividend by Costco Wholesale Corporation sent seismic waves through the financial world. This unforeseen windfall, exceeding even the most hopeful analyst projections, sparked a firestorm of inquiries and conjecture. Was this a one-time celebration of the company's robust financial health or a strategic indicator of future dividend policy adjustments?
The shareholders were undoubtedly pleased with the generous dividend payout, which boosted immediate returns. However, there is some concern about its long-term sustainability. Could this be a sign that Costco will consider raising membership fees to maintain its newfound dividend generosity? While this would be unpopular with its loyal customer base, it could be seen as a necessary step to ensure the long-term stability of the dividend stream.
The unexpected dividend move also reignited the debate about Costco's overall investment proposition. Is it a haven of value, providing investors with a steady stream of reliable returns through its membership model and efficient operations? Or is it a hype-fueled bubble, vulnerable to market fluctuations and the possibility of unforeseen economic headwinds?
Investors must carefully weigh the potential rewards and risks of this intriguing conundrum. While the special dividend is undeniably attractive, it should not overshadow the need to thoroughly analyze the company's underlying financial health, future growth prospects and ability to navigate the volatile retail landscape.
Can Costco maintain its competitive edge?
Costco Wholesale Corporation symbolizes stability in an uncertain retail market sector. Its membership model, which emphasizes value and bulk purchasing, has secured a loyal customer base and helped it maintain its position as the leading warehouse club. However, the future of this dominance depends on its ability to navigate the constantly changing retail landscape.
Economic pressures pose a significant challenge. Declining consumer spending could erode the foundation of Costco's membership model. To counter this, the company must demonstrate agility in optimizing its product offerings, focusing on recession-proof categories and strategically-priced private labels to maintain margin stability and attract value-conscious shoppers.
The digital tsunami is another formidable force. E-commerce giants like Amazon (NASDAQ: AMZN) encroach on Costco's physical domain. This demands that Costco adapts to a robust omnichannel strategy. Costco must leverage its operational efficiency to optimize its supply chain and logistics. By achieving this goal, the company can offer competitive delivery options and a seamless online experience. Expanding its online platform with curated selections and exclusive member benefits can fortify its digital moat.
Despite these headwinds, Costco possesses unique strengths that offer a competitive edge. One of their biggest strengths is the fiercely loyal member base forged through years of shared savings and bulk-buying. This loyal army of followers proves the company's value proposition. Their loyalty translates into predictable revenue streams and a level of customer engagement that remains unmatched by Costco's online competitors.
Furthermore, Costco's operational excellence remains a cornerstone of its success. Decades of expertise in bulk buying have honed the company's supply chains. This enables Costco to achieve efficient procurement and cost control even in volatile markets. The company's operational agility allows it to adjust pricing strategies and product offerings with unparalleled swiftness, adapting to changing consumer demands and economic realities.
Predicting the future of Costco's competitive edge is challenging — economic headwinds, the digital tsunami and evolving consumer preferences all present significant challenges. However, Costco's commitment to value, its agile adaptation to market shifts, and its impregnable moat of loyal members offer compelling arguments for continued success.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Leveraging its massive buying power can secure rock-bottom prices from suppliers, which offers lower margins but higher volume, a delicate balance it has mastered. While the special dividend is undeniably attractive, it should not overshadow the need to thoroughly analyze the company's underlying financial health, future growth prospects and ability to navigate the volatile retail landscape. To counter this, the company must demonstrate agility in optimizing its product offerings, focusing on recession-proof categories and strategically-priced private labels to maintain margin stability and attract value-conscious shoppers.
|
While the special dividend is undeniably attractive, it should not overshadow the need to thoroughly analyze the company's underlying financial health, future growth prospects and ability to navigate the volatile retail landscape. The company's operational agility allows it to adjust pricing strategies and product offerings with unparalleled swiftness, adapting to changing consumer demands and economic realities. Predicting the future of Costco's competitive edge is challenging — economic headwinds, the digital tsunami and evolving consumer preferences all present significant challenges.
|
Decoding Costco's special dividend The recent declaration of a special $15 dividend by Costco Wholesale Corporation sent seismic waves through the financial world. Predicting the future of Costco's competitive edge is challenging — economic headwinds, the digital tsunami and evolving consumer preferences all present significant challenges. However, Costco's commitment to value, its agile adaptation to market shifts, and its impregnable moat of loyal members offer compelling arguments for continued success.
|
Its membership model, which emphasizes value and bulk purchasing, has secured a loyal customer base and helped it maintain its position as the leading warehouse club. Despite these headwinds, Costco possesses unique strengths that offer a competitive edge. Predicting the future of Costco's competitive edge is challenging — economic headwinds, the digital tsunami and evolving consumer preferences all present significant challenges.
|
0dee2991-2f77-4d85-bab0-b64eecc21f75
|
711946.0
|
2023-12-13 00:00:00 UTC
|
Financial Sector Update for 12/15/2023: COIN, AFL, TRUP, HRTG
|
DCOMP
|
https://www.nasdaq.com/articles/financial-sector-update-for-12-15-2023%3A-coin-afl-trup-hrtg
|
nan
|
nan
|
Financial stocks were decreasing in Friday afternoon trading, with the NYSE Financial Index down 0.8% and the Financial Select Sector SPDR Fund (XLF) off 0.7%.
The Philadelphia Housing Index and the Real Estate Select Sector SPDR Fund (XLRE) were shedding 1.7%.
Bitcoin (BTC-USD) was declining 2.5% to $41,972, and the yield for 10-year US Treasuries was fractionally down at 3.93%.
US industrial output increased 0.2% last month following a revised 0.9% fall in October, Federal Reserve data showed. The consensus was for production to gain 0.3%, according to a survey compiled by Bloomberg.
In corporate news, the US Securities and Exchange Commission on Friday denied Coinbase's (COIN) petition seeking new rules to govern the digital assets industry, saying existing laws and regulations already apply to the crypto securities markets. Coinbase shares dropped 3.5%.
Aflac (AFL) and Trupanion (TRUP) said Friday they have launched pet medical insurance products in the US and decided not to sell pet insurance in Japan to focus on the North American market. Trupanion shares slumped 8% and Aflac was down 1%.
Heritage Insurance (HRTG) tumbled 12% after saying it's launching an underwritten public offering of common shares.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
The Philadelphia Housing Index and the Real Estate Select Sector SPDR Fund (XLRE) were shedding 1.7%. US industrial output increased 0.2% last month following a revised 0.9% fall in October, Federal Reserve data showed. Heritage Insurance (HRTG) tumbled 12% after saying it's launching an underwritten public offering of common shares.
|
Financial stocks were decreasing in Friday afternoon trading, with the NYSE Financial Index down 0.8% and the Financial Select Sector SPDR Fund (XLF) off 0.7%. The Philadelphia Housing Index and the Real Estate Select Sector SPDR Fund (XLRE) were shedding 1.7%. Aflac (AFL) and Trupanion (TRUP) said Friday they have launched pet medical insurance products in the US and decided not to sell pet insurance in Japan to focus on the North American market.
|
Financial stocks were decreasing in Friday afternoon trading, with the NYSE Financial Index down 0.8% and the Financial Select Sector SPDR Fund (XLF) off 0.7%. In corporate news, the US Securities and Exchange Commission on Friday denied Coinbase's (COIN) petition seeking new rules to govern the digital assets industry, saying existing laws and regulations already apply to the crypto securities markets. Aflac (AFL) and Trupanion (TRUP) said Friday they have launched pet medical insurance products in the US and decided not to sell pet insurance in Japan to focus on the North American market.
|
Financial stocks were decreasing in Friday afternoon trading, with the NYSE Financial Index down 0.8% and the Financial Select Sector SPDR Fund (XLF) off 0.7%. Aflac (AFL) and Trupanion (TRUP) said Friday they have launched pet medical insurance products in the US and decided not to sell pet insurance in Japan to focus on the North American market. Trupanion shares slumped 8% and Aflac was down 1%.
|
75cb1b97-0f58-4368-b673-05f39718258b
|
711947.0
|
2023-12-13 00:00:00 UTC
|
Health Care Sector Update for 12/15/2023: ELV, CI, HCSG, ACIU, CBAY
|
DCOMP
|
https://www.nasdaq.com/articles/health-care-sector-update-for-12-15-2023%3A-elv-ci-hcsg-aciu-cbay
|
nan
|
nan
|
Health care stocks were slipping Friday afternoon, with the NYSE Health Care Index falling 1% and the Health Care Select Sector SPDR Fund (XLV) down past 1%.
The iShares Biotechnology ETF (IBB) fell 0.9%.
In corporate news, Health Care Service (HCSG) and Elevance Health (ELV) emerged as potential buyers of Cigna's (CI) Medicare Advantage business, Bloomberg reported Friday. Health Care Service shares were down 2%, Elevance Health stock was shedding nearly 3% and Cigna fell 2.4%.
AC Immune (ACIU) shares jumped about 6% after it said that a phase 2b trial to evaluate ACI-35.030 in people with preclinical Alzheimer's disease, or those individuals not yet showing symptoms, is set to be launched.
Cymabay Therapeutics (CBAY) shares added 1.3% it said Friday it filed a new drug application with the US Food and Drug Administration for drug candidate seladelpar to treat primary biliary cholangitis, including pruritus.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In corporate news, Health Care Service (HCSG) and Elevance Health (ELV) emerged as potential buyers of Cigna's (CI) Medicare Advantage business, Bloomberg reported Friday. AC Immune (ACIU) shares jumped about 6% after it said that a phase 2b trial to evaluate ACI-35.030 in people with preclinical Alzheimer's disease, or those individuals not yet showing symptoms, is set to be launched. Cymabay Therapeutics (CBAY) shares added 1.3% it said Friday it filed a new drug application with the US Food and Drug Administration for drug candidate seladelpar to treat primary biliary cholangitis, including pruritus.
|
Health care stocks were slipping Friday afternoon, with the NYSE Health Care Index falling 1% and the Health Care Select Sector SPDR Fund (XLV) down past 1%. In corporate news, Health Care Service (HCSG) and Elevance Health (ELV) emerged as potential buyers of Cigna's (CI) Medicare Advantage business, Bloomberg reported Friday. Health Care Service shares were down 2%, Elevance Health stock was shedding nearly 3% and Cigna fell 2.4%.
|
Health care stocks were slipping Friday afternoon, with the NYSE Health Care Index falling 1% and the Health Care Select Sector SPDR Fund (XLV) down past 1%. In corporate news, Health Care Service (HCSG) and Elevance Health (ELV) emerged as potential buyers of Cigna's (CI) Medicare Advantage business, Bloomberg reported Friday. Health Care Service shares were down 2%, Elevance Health stock was shedding nearly 3% and Cigna fell 2.4%.
|
Health Care Service shares were down 2%, Elevance Health stock was shedding nearly 3% and Cigna fell 2.4%. AC Immune (ACIU) shares jumped about 6% after it said that a phase 2b trial to evaluate ACI-35.030 in people with preclinical Alzheimer's disease, or those individuals not yet showing symptoms, is set to be launched. Cymabay Therapeutics (CBAY) shares added 1.3% it said Friday it filed a new drug application with the US Food and Drug Administration for drug candidate seladelpar to treat primary biliary cholangitis, including pruritus.
|
c1b70770-f1c0-43f6-9e2a-e26059a98d21
|
711948.0
|
2023-12-13 00:00:00 UTC
|
Lucid Motors Stock: What Went Wrong With This ‘Tesla Killer’?
|
DCOMP
|
https://www.nasdaq.com/articles/lucid-motors-stock%3A-what-went-wrong-with-this-tesla-killer
|
nan
|
nan
|
In June 2021, shortly after its mega listing, Lucid Motors (LCID) CEO Peter Rawlinson said in an interview that the company was looking to make the electric vehicle (EV) industry into a “two-horse race” – with Tesla (TSLA), of course, being the other horse in the race.
Cut to 2023, and Lucid is looking to produce only 8,000-8,500 cars this year – which is even below the 12,000 that it projected at the beginning of the year, and a tiny fraction of the 49,000 that it predicted in 2021 ahead of the SPAC merger.
Far from being a potential “Tesla killer,” as it was labeled by some, Lucid is now looking like an “also ran” - and many fear whether the company will even survive the current EV industry slump. The recent departure of its CFO Sherry House is not building any confidence, either.
Here’s how Lucid Motors went from being a market favorite to its current state, where the stock has sunk to near-record lows - and, as of this Monday's rebalancing, will also be booted from the Nasdaq-100 Index ($IUXX).
www.barchart.com
Lucid Motors Was the Largest SPAC Merger
Lucid went public in 2021, during a time of widespread euphoria toward green energy companies. It was the biggest special purpose acquisition company (SPAC) merger up until that point, before Grab (GRAB) took the honors later that year – and Churchill Capital IV stock soared 550% on rumors that it would merge with Lucid Motors. If anyone had any doubt about an EV bubble or a SPAC bubble, it became clearly apparent with Lucid’s mega-merger.
In a rare move, the investors in Lucid’s private investment in public equity (PIPE) transaction paid $15 per share, which - albeit below the then-SPAC stock price - was a 50% premium to the SPAC IPO price, and an affirmation by institutional investors (including Saudi Arabia’s sovereign wealth fund) in the company's valuation and outlook.
By November 2021, Lucid Motors' market cap topped $90 billion, and it looked set to join the league of $100 billion companies, like fellow EV startup Rivian (RIVN) - which also went public that month. In December 2021, Lucid joined the Nasdaq-100 as leading indices looked to make their composition more contemporary amid the green energy pivot.
Just over two years later, Lucid Motors will be removed from the Nasdaq-100 Index. More than just the regular rebalancing of the index, it’s a story of how the company - which is led by a former Tesla engineer, and seems to have a promising product in its Air sedan - has fallen out of favor with markets.
What Went Wrong with Lucid Motors?
Nothing much has actually gone right for Lucid Motors over the last couple of years. To begin with, the global automotive industry faced a severe supply-chain crisis in 2021, which negatively impacted production. The Fed’s relentless rate hikes since 2022, which have since lifted benchmark rates to their highest level dating back to 2007, haven’t helped matters either for growth names like Lucid Motors.
And for Lucid, the troubles are also company-specific. First, and as it has also acknowledged, it hasn’t been able to build brand equity to the extent it would have wanted, which has resulted in fewer-than-expected sales. Lucid’s perennial cash burn and multiple rounds of capital raises have meant that the outstanding share count has exploded, leading to dilution for existing shareholders.
In my view, Lucid was a bit too optimistic about its cars and abilities, which led it to overpromise and underdeliver on multiple occasions. A mere look at its merger presentation would tell us how generously it benchmarked itself to Tesla, both in terms of car quality as well as valuations. What a lot of “wannabe Teslas” failed to envision or incorporate was Tesla’s manufacturing prowess and the brand power - which has largely withstood the self-inflicted damage by CEO Elon Musk, whose “free speech absolutism” hasn’t gone down well with many potential Tesla buyers.
Will Lucid Motors Be Around by 2025?
While many EV and green energy companies might go bankrupt over the next couple of years, Lucid Motors might not - for the simple reason that it had a total liquidity of $5.45 billion at the end of September 2023, which it believes will fund the launch of its Gravity vehicles and also last into 2025.
www.barchart.com
It also has the “Saudi backstop,” as the oil-rich kingdom has so far looked amenable to fund Lucid Motors’ cash burn. Also, unlike many other startup EV companies that have, at best, “me-too” products - or worse, unviable and questionable products, Lucid Motors has a reasonably good offering. MotorTrend awarded the Car of the Year 2022 award to Lucid Air, and said, “The win affirms Lucid Air as the new EV benchmark, with the most advanced electric powertrain available today — technology wholly designed, developed, and manufactured in-house.” Luxury carmaker Aston Martin has also partnered with Lucid to buy electric motors and batteries, which provides credence to Lucid Motors’ claim that it offers a world-class product.
But for now, Lucid Motors is facing a severe demand crunch. While CEO Rawlinson had described low brand awareness, which he blamed for fewer sales, as an “entirely solvable problem,” it is proving to be a lot more complicated. While Lucid Motors could still be a multibagger if the management can execute well, with every passing day even the most ardent LCID stock bulls might be getting disenchanted with the company.
On the date of publication, Mohit Oberoi had a position in: RIVN . All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Here’s how Lucid Motors went from being a market favorite to its current state, where the stock has sunk to near-record lows - and, as of this Monday's rebalancing, will also be booted from the Nasdaq-100 Index ($IUXX). More than just the regular rebalancing of the index, it’s a story of how the company - which is led by a former Tesla engineer, and seems to have a promising product in its Air sedan - has fallen out of favor with markets. Lucid’s perennial cash burn and multiple rounds of capital raises have meant that the outstanding share count has exploded, leading to dilution for existing shareholders.
|
In June 2021, shortly after its mega listing, Lucid Motors (LCID) CEO Peter Rawlinson said in an interview that the company was looking to make the electric vehicle (EV) industry into a “two-horse race” – with Tesla (TSLA), of course, being the other horse in the race. By November 2021, Lucid Motors' market cap topped $90 billion, and it looked set to join the league of $100 billion companies, like fellow EV startup Rivian (RIVN) - which also went public that month. While many EV and green energy companies might go bankrupt over the next couple of years, Lucid Motors might not - for the simple reason that it had a total liquidity of $5.45 billion at the end of September 2023, which it believes will fund the launch of its Gravity vehicles and also last into 2025. www.barchart.com It also has the “Saudi backstop,” as the oil-rich kingdom has so far looked amenable to fund Lucid Motors’ cash burn.
|
www.barchart.com Lucid Motors Was the Largest SPAC Merger Lucid went public in 2021, during a time of widespread euphoria toward green energy companies. While many EV and green energy companies might go bankrupt over the next couple of years, Lucid Motors might not - for the simple reason that it had a total liquidity of $5.45 billion at the end of September 2023, which it believes will fund the launch of its Gravity vehicles and also last into 2025. www.barchart.com It also has the “Saudi backstop,” as the oil-rich kingdom has so far looked amenable to fund Lucid Motors’ cash burn. MotorTrend awarded the Car of the Year 2022 award to Lucid Air, and said, “The win affirms Lucid Air as the new EV benchmark, with the most advanced electric powertrain available today — technology wholly designed, developed, and manufactured in-house.” Luxury carmaker Aston Martin has also partnered with Lucid to buy electric motors and batteries, which provides credence to Lucid Motors’ claim that it offers a world-class product.
|
Cut to 2023, and Lucid is looking to produce only 8,000-8,500 cars this year – which is even below the 12,000 that it projected at the beginning of the year, and a tiny fraction of the 49,000 that it predicted in 2021 ahead of the SPAC merger. By November 2021, Lucid Motors' market cap topped $90 billion, and it looked set to join the league of $100 billion companies, like fellow EV startup Rivian (RIVN) - which also went public that month. Will Lucid Motors Be Around by 2025?
|
684dbbdc-c8bd-4260-836b-6c31a2ac0b16
|
711949.0
|
2023-12-13 00:00:00 UTC
|
The 7 Most Undervalued Dividend Stocks to Buy in December
|
DCOMP
|
https://www.nasdaq.com/articles/the-7-most-undervalued-dividend-stocks-to-buy-in-december
|
nan
|
nan
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
2023 has been mixed for growth stocks but I believe the worst is over. There is high optimism in the stock market as we end the year on a high note. However, if you want to secure your portfolio from such ups and downs and are looking for ways to generate passive income, considering top dividend stocks to buy is the best way forward.
But, all dividend stocks aren’t the same and some are more promising than many others. You need to look for companies that have shown steady growth, and resilience in the market and have a history of dividend payouts. Such companies will continue to reward shareholders, no matter how the market moves and you will be able to enjoy passive income while watching your investment grow. With that in mind, let’s take a look at the most undervalued dividend stocks to buy in December to enjoy a solid start to 2024.
PepsiCo (PEP)
Dividend Yield-3.01%
Source: 8ED8 / Shutterstock
When looking for stable companies to invest in, PepsiCo (NASDAQ:PEP) is the first one that comes to mind. One of the global leaders, the company has a diversified business which ensures steady income despite market turmoil. It is a dividend aristocrat which has raised dividends over the past 51 years.
Pepsi’s dividend yield is 3.01% and it paid a quarterly dividend of $1.27. Exchanging hands at $168 today, this is one stock that will continue giving. The company has a range of snacks and beverages that help maintain a steady cash flow and it enjoys brand loyalty like no other.
Irrespective of the country you are in, you will see a range of Pepsi products at the supermarket and this is proof of how well the company is expanding its reach. Even in times of high inflation, Pepsi saw steady revenue growth. This is a solid dividend stock to own this month.
Dividend stocks to buy: McDonald’s (MCD)
Dividend yield-2.30%
Source: Gargantiopa / Shutterstock
McDonald’s (NYSE:MCD) is another undervalued dividend stock that should be a part of your portfolio. The company has nailed the franchise business, and it enjoys high cash flow through the steady income and low operating costs. It aims to expand to 50,000 stores by 2027 and this could give the business a solid push. Trading at $290 today, MCD stock might look expensive but it is worth an investment.
The company has been paying dividends for over 40 years, and it enjoys a dividend yield of 2.30%. In the recent quarter, the company saw a 14% increase in revenue to hit $6.69 billion, and the EPS came in at $3.17 per share, up 18% year-over-year.
The management increased the quarterly dividend by 10% to $1.67 per share. McDonald’s has big expansion plans, and it continues to see revenue growth. This makes it a worthwhile investment.
Enterprise Products Partners (EPD)
Dividend yield- 7.55%
Source: Casimiro PT / Shutterstock.com
With a dividend yield as high as 7.55%, Enterprise Products Partners (NYSE:EPD) is one of the top dividend stocks to buy this December. It owns a diverse portfolio of assets which include natural gas pipelines, liquid pipelines, marine terminals, and NGL fractionators. It is steadily working towards growth and expansion and aims to build two plants in the Permian Basin which will have the processing ability to handle 300 million cubic feet per day.
Enterprise Products Partners charges a fee from companies to use its assets and this is how it maintains a steady revenue growth. The company has a solid balance sheet and low debt which helps it reward shareholders. EPD is one of the top dividend stocks to buy.
The management believes in rewarding shareholders and has paid consecutive dividends for the past 25 years. It has a dividend yield of 7.55% and pays a quarterly dividend of $0.50. For a stock trading at $26, the dividend yield is certainly impressive. You will not regret owning EPD stock for a long time.
AT&T (T)
Dividend yield- 6.67%
Source: Jonathan Weiss/Shutterstock
AT&T (NYSE:T) is far from done, and while the stock may be down, it isn’t out. One of the top passive income stocks, AT&T is in the news for the recent contract with Ericsson (NASDAQ:ERIC). This $14 million deal will be a game changer for the business and it has already given a boost to the stock.
Through this collaboration, AT&T aims to cover about 70% of its wireless traffic in the U.S. It aims to expand the 5G network, and this will help it reach more than 200 million people by the end of the year. The management stated that they are in line to generate $16.5 billion in free cash flow in the year.
Additionally, it is also growing its wireless subscriber base and has added more than 468,000 net phone subscribers in the third quarter. T stock is trading for $16.65 today and is up 5% over the past month. It enjoys a dividend yield of 6.67% and has announced a quarterly dividend of $0.28.
Dividend stocks to buy: Johnson & Johnson (JNJ)
Dividend yield- 3.03%
Source: Raihana Asral / Shutterstock.com
A leader in the healthcare sector, Johnson & Johnson (NYSE:JNJ) is a dividend aristocrat with a history of paying dividends for 51 consecutive years. The company has managed to sustain the dividends through its MedTech and innovative medicine portfolio which has a few stalwarts that continue to generate revenue.
Its MedTech segment reported $7.5 billion in sales, which was a 10% rise, and the innovative medicine segment reported a revenue of $13.9 billion, a 5.1% rise. The company is launching several new products that have shown early signs of success and could become strong income generators in the long term.
JNJ could bring stability to your portfolio and is a highly reliable name in the industry with a dividend yield of 3.03% and a quarterly dividend of $1.19. The management has rewarded shareholders, no matter the market situation and I strongly believe it will continue to do so. It is one of the top stocks in the healthcare sector to own.
Coca Cola (KO)
Dividend yield-3.12%
Source: Soloviov Vadym / Shutterstock.com
Pepsi’s biggest rival, Coca-Cola (NYSE:KO) is another household name that believes in rewarding shareholders. The beverage giant has a global presence, and is known for a wide range of beverages including several healthy drinks. It is exchanging hands at $59 and has a dividend yield of 3.12%. Coca-Cola announced a quarterly dividend of $0.46 and has paid handsome dividends for the past 60 years.
Fundamentally, it has managed to achieve 11% organic revenue growth in the third quarter, and it has achieved success and market share across new markets like Japan, ASEAN, South Pacific, and Latin America. Like Pepsi, it enjoys brand loyalty and global recognition.
It is also Warren Buffet’s favorite stock, and he has owned it the longest. Today, he holds 400 million KO shares which could generate billions in dividends annually. Coca-Cola can thrive, irrespective of where the market moves from now, and trading below $60, it looks highly undervalued today.
Procter & Gamble (PG)
Dividend yield- 2.60%
Source: Jonathan Weiss / Shutterstock.com
A globally recognized household name, Procter & Gamble (NYSE:PG) is a defensive stock. It owns some of the biggest consumer brands today and is recognized for a wide range of products that cater to individuals of all age groups.
We will never see a time when we do not need personal care items which means PG is never going to run out of business. The company has established a strong position in the industry and enjoys high brand loyalty. Due to the wide umbrella of brands, it enjoys steady revenue growth and predictable cash flow.
PG is trading at $144 today and has dropped 4% year-to-date. The stock is trading lower than the all-time high of $163 but has a long way to go. It has a dividend yield of 2.60% and announced a quarterly dividend of $0.94. As the economy improves and we see higher consumer spending, Procter & Gamble could see better days ahead.
On the date of publication, Vandita Jadeja 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.
Vandita Jadeja is a CPA and a freelance financial copywriter who loves to read and write about stocks. She believes in buying and holding for long term gains. Her knowledge of words and numbers helps her write clear stock analysis.
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. Here’s How to Get In.
The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors
The post The 7 Most Undervalued Dividend 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.
|
It is steadily working towards growth and expansion and aims to build two plants in the Permian Basin which will have the processing ability to handle 300 million cubic feet per day. It owns some of the biggest consumer brands today and is recognized for a wide range of products that cater to individuals of all age groups. 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.
|
Dividend stocks to buy: McDonald’s (MCD) Dividend yield-2.30% Source: Gargantiopa / Shutterstock McDonald’s (NYSE:MCD) is another undervalued dividend stock that should be a part of your portfolio. Dividend stocks to buy: Johnson & Johnson (JNJ) Dividend yield- 3.03% Source: Raihana Asral / Shutterstock.com A leader in the healthcare sector, Johnson & Johnson (NYSE:JNJ) is a dividend aristocrat with a history of paying dividends for 51 consecutive years. Procter & Gamble (PG) Dividend yield- 2.60% Source: Jonathan Weiss / Shutterstock.com A globally recognized household name, Procter & Gamble (NYSE:PG) is a defensive stock.
|
Dividend stocks to buy: McDonald’s (MCD) Dividend yield-2.30% Source: Gargantiopa / Shutterstock McDonald’s (NYSE:MCD) is another undervalued dividend stock that should be a part of your portfolio. Enterprise Products Partners (EPD) Dividend yield- 7.55% Source: Casimiro PT / Shutterstock.com With a dividend yield as high as 7.55%, Enterprise Products Partners (NYSE:EPD) is one of the top dividend stocks to buy this December. Dividend stocks to buy: Johnson & Johnson (JNJ) Dividend yield- 3.03% Source: Raihana Asral / Shutterstock.com A leader in the healthcare sector, Johnson & Johnson (NYSE:JNJ) is a dividend aristocrat with a history of paying dividends for 51 consecutive years.
|
The company has a range of snacks and beverages that help maintain a steady cash flow and it enjoys brand loyalty like no other. The company has been paying dividends for over 40 years, and it enjoys a dividend yield of 2.30%. Enterprise Products Partners (EPD) Dividend yield- 7.55% Source: Casimiro PT / Shutterstock.com With a dividend yield as high as 7.55%, Enterprise Products Partners (NYSE:EPD) is one of the top dividend stocks to buy this December.
|
df39ffb3-362d-4072-8971-e23ddce75e94
|
711950.0
|
2023-12-13 00:00:00 UTC
|
Darden (DRI) Q2 Earnings Beat Estimates, Revenues Lag, Rise Y/Y
|
DCOMP
|
https://www.nasdaq.com/articles/darden-dri-q2-earnings-beat-estimates-revenues-lag-rise-y-y
|
nan
|
nan
|
Darden Restaurants, Inc. DRI reported mixed second-quarter fiscal 2024 results, with earnings beating the Zacks Consensus Estimate and revenues missing the same. The metrics increased on a year-over-year basis.
Earnings & Revenues
During the fiscal second quarter, Darden reported adjusted earnings per share (EPS) of $1.84, beating the Zacks Consensus Estimate of $1.71. In the prior-year quarter, DRI reported an adjusted EPS of $1.52.
Darden Restaurants, Inc. Price, Consensus and EPS Surprise
Darden Restaurants, Inc. price-consensus-eps-surprise-chart | Darden Restaurants, Inc. Quote
Total sales during the quarter came in at $2,727.3 million, missing the consensus mark of $2,738 million. Sales increased 9.7% from the prior-year quarter’s level on solid blended same-restaurant sales of 2.8%. The opening of 78 company-owned Ruth's Chris Steak House restaurants and 45 other net new restaurants added to the positives.
Sales by Segments
Darden reports business under four segments — Olive Garden, LongHorn Steakhouse, Fine Dining, including The Capital Grille and Eddie V's and Other Business.
During the fiscal second quarter, sales at Olive Garden increased 6.3% year over year to $1,251.4 million. Our estimate for the metric was $1,150.5 million. Comps in the segment rose 4.1% year over year compared with 7.6% growth reported in the previous quarter.
At LongHorn Steakhouse, sales were up 7.1% year over year to $643 million. Our estimate for the metric was $622.2 million. Comps in the segment rose 4.9% year over year compared with a 7.3% growth reported in the previous quarter.
Sales in Fine Dining increased 57.4% year over year to $318 million. Our estimate for the metric was $412 million. Comps in the segment dropped 1.7% year over year against a 5.9% rise reported in the previous quarter.
Sales at Other Business rose 1.5% year over year to $514.9 million. Our estimate for the metric was $542.6 million. Comps in the Other Business declined 1.1% year over year against a 7.1% increase reported in the previous quarter.
Operating Highlights
In the fiscal second quarter, total operating costs and expenses increased 8.7% year over year to $2,448.8 million. The upside was primarily due to increased food and beverage costs, restaurant expenses and labor costs.
Balance Sheet
As of Nov 26, 2023, cash and cash equivalents came in at $195.7 million compared with $192.1 million as of Aug 27, 2023.
During the fiscal second quarter, inventories came in at $310.6 million compared with $287 million reported in the previous quarter. As of Nov 26, 2023, long-term debt was $1,368.4 million compared with $1,477.1 million as of Aug 27, 2023.
During the fiscal second quarter, Darden’s board of directors repurchased approximately 1.2 million shares of its common stock, worth approximately $181 million. As of Nov 26, the company stated the availability of approximately $328 million under the $1-billion repurchase program.
Darden declared a quarterly cash dividend of $1.31 per share. The dividend will be payable on Feb 1, 2024, to shareholders of record as of Jan 10, 2024.
Updated Fiscal 2024 Outlook
For fiscal 2024, the company expects total sales to be approximately $11.5 billion. Same-restaurant sales in fiscal 2024 are anticipated to be 2.5-3%. EPS from continuing operations are anticipated in the band of $8.75-$8.90 compared with the previous guidance of $8.55-$8.85.
The company expects to open 50-55 net new restaurants and projects a total capital spending of $600 million in fiscal 2024.
Zacks Rank & Key Picks
Darden currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the Zacks Retail-Wholesale sector are:
Brinker International, Inc. EAT currently sports a Zacks Rank #1 (Strong Buy). It has a trailing four-quarter earnings surprise of 223.6%, on average. The stock has gained 19.5% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for EAT’s 2024 sales and EPS suggests a rise of 5.1% and 26.2%, respectively, from the year-ago period’s levels.
Abercrombie & Fitch Co. ANF flaunts a Zacks Rank #1 at present. It has a trailing four-quarter earnings surprise of 713%, on average. Shares of ANF have surged 284.8% in the past year.
The Zacks Consensus Estimate for ANF’s 2023 sales and EPS suggests increases of 13.3% and 2,196%, respectively, from the year-ago period’s levels.
Beacon Roofing Supply, Inc. BECN carries a Zacks Rank #2 (Buy). It has a trailing four-quarter earnings surprise of 11.1%, on average. Shares of BECN have risen 53.9% in the past year.
The Zacks Consensus Estimate for BECN’s 2023 sales and EPS indicates 7.2% and 9% growth, respectively, from the year-ago period’s levels.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Abercrombie & Fitch Company (ANF) : Free Stock Analysis Report
Darden Restaurants, Inc. (DRI) : Free Stock Analysis Report
Brinker International, Inc. (EAT) : Free Stock Analysis Report
Beacon Roofing Supply, Inc. (BECN) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Darden Restaurants, Inc. DRI reported mixed second-quarter fiscal 2024 results, with earnings beating the Zacks Consensus Estimate and revenues missing the same. The Zacks Consensus Estimate for ANF’s 2023 sales and EPS suggests increases of 13.3% and 2,196%, respectively, from the year-ago period’s levels. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
|
Earnings & Revenues During the fiscal second quarter, Darden reported adjusted earnings per share (EPS) of $1.84, beating the Zacks Consensus Estimate of $1.71. Sales by Segments Darden reports business under four segments — Olive Garden, LongHorn Steakhouse, Fine Dining, including The Capital Grille and Eddie V's and Other Business. Click to get this free report Abercrombie & Fitch Company (ANF) : Free Stock Analysis Report Darden Restaurants, Inc. (DRI) : Free Stock Analysis Report Brinker International, Inc. (EAT) : Free Stock Analysis Report Beacon Roofing Supply, Inc. (BECN) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
Earnings & Revenues During the fiscal second quarter, Darden reported adjusted earnings per share (EPS) of $1.84, beating the Zacks Consensus Estimate of $1.71. During the fiscal second quarter, sales at Olive Garden increased 6.3% year over year to $1,251.4 million. Click to get this free report Abercrombie & Fitch Company (ANF) : Free Stock Analysis Report Darden Restaurants, Inc. (DRI) : Free Stock Analysis Report Brinker International, Inc. (EAT) : Free Stock Analysis Report Beacon Roofing Supply, Inc. (BECN) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
Earnings & Revenues During the fiscal second quarter, Darden reported adjusted earnings per share (EPS) of $1.84, beating the Zacks Consensus Estimate of $1.71. During the fiscal second quarter, sales at Olive Garden increased 6.3% year over year to $1,251.4 million. During the fiscal second quarter, inventories came in at $310.6 million compared with $287 million reported in the previous quarter.
|
6337b331-9f2e-4f60-b6ba-60b80b1dbe74
|
711951.0
|
2023-12-13 00:00:00 UTC
|
Apple sued with Visa, Mastercard in card-fee antitrust case
|
DCOMP
|
https://www.nasdaq.com/articles/apple-sued-with-visa-mastercard-in-card-fee-antitrust-case
|
nan
|
nan
|
By Mike Scarcella
Dec 15 (Reuters) - Apple, Visa and Mastercard have been hit with a new proposed class action that accuses them of conspiring to thwart competition for point-of-sale payment card network services, causing merchants to pay artificially higher fees for credit and debit transactions.
In a complaint filed in East St. Louis, Illinois, federal court on Thursday, beverage retailer Mirage Wine & Spirits said Apple AAPL.O struck unlawful agreements with Visa V.N and Mastercard MA.N to refrain from competing with the two credit card companies.
Visa and Mastercard in exchange paid Apple a portion of transaction fees for purchases made on their networks by consumers using Apple’s Mobile Wallet service, according to the lawsuit.
The complaint said Visa and Mastercard had paid Apple what amounted to a “very large and ongoing cash bribe” of hundreds of millions of dollars a year.
Unlike Apple's iPhones, Google's Android-based devices allow third-party mobile wallets, the lawsuit said.
Representatives for Apple, Visa and Mastercard did not immediately respond to requests for comment.
Lawyers representing Mirage Wine & Spirits also did not immediately comment. The lawsuit, brought on behalf of a proposed class of “at least many thousands” of merchants, seeks triple damages under U.S. antitrust law.
Cupertino, California-based Apple faces an array of legal actions over payments in the United States and Europe.
A U.S. judge in September said Apple must face claims from payment card issuers who sued the company for allegedly coercing iPhone consumers to use its Apple Pay mobile wallet. Venmo and Cash App in a lawsuit last month accused Apple of suppressing competition for peer-to-peer payments.
Last year, EU antitrust regulators accused Apple of taking steps to thwart rivals’ access to the technology at the center of tap-and-go transactions.
Reuters reported this week that Apple has offered to let rivals access its mobile payments systems used for mobile wallets, in a move that could resolve EU charges.
Visa and Mastercard also have faced myriad antitrust claims from merchants over transaction fees.
A U.S. appeals court in March upheld a $5.6 billion antitrust class-action settlement with more than 12 million retailers who claimed the two credit card companies unlawfully fixed fees for credit and debit cards.
The case is Mirage Wine + Spirit’s Inc v Apple Inc, U.S. District Court, Southern District of Illinois, No. 3:23-cv-03942.
Read more:
Venmo, Cash App users sue Apple over peer-to-peer payment fees
Apple is ordered to face Apple Pay antitrust lawsuit
Visa, MasterCard $5.6 bln settlement with retailers is upheld
(Reporting by Mike Scarcella)
((Mike.Scarcella@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
By Mike Scarcella Dec 15 (Reuters) - Apple, Visa and Mastercard have been hit with a new proposed class action that accuses them of conspiring to thwart competition for point-of-sale payment card network services, causing merchants to pay artificially higher fees for credit and debit transactions. In a complaint filed in East St. Louis, Illinois, federal court on Thursday, beverage retailer Mirage Wine & Spirits said Apple AAPL.O struck unlawful agreements with Visa V.N and Mastercard MA.N to refrain from competing with the two credit card companies. Last year, EU antitrust regulators accused Apple of taking steps to thwart rivals’ access to the technology at the center of tap-and-go transactions.
|
By Mike Scarcella Dec 15 (Reuters) - Apple, Visa and Mastercard have been hit with a new proposed class action that accuses them of conspiring to thwart competition for point-of-sale payment card network services, causing merchants to pay artificially higher fees for credit and debit transactions. A U.S. appeals court in March upheld a $5.6 billion antitrust class-action settlement with more than 12 million retailers who claimed the two credit card companies unlawfully fixed fees for credit and debit cards. Read more: Venmo, Cash App users sue Apple over peer-to-peer payment fees Apple is ordered to face Apple Pay antitrust lawsuit Visa, MasterCard $5.6 bln settlement with retailers is upheld (Reporting by Mike Scarcella) ((Mike.Scarcella@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
By Mike Scarcella Dec 15 (Reuters) - Apple, Visa and Mastercard have been hit with a new proposed class action that accuses them of conspiring to thwart competition for point-of-sale payment card network services, causing merchants to pay artificially higher fees for credit and debit transactions. Visa and Mastercard in exchange paid Apple a portion of transaction fees for purchases made on their networks by consumers using Apple’s Mobile Wallet service, according to the lawsuit. Read more: Venmo, Cash App users sue Apple over peer-to-peer payment fees Apple is ordered to face Apple Pay antitrust lawsuit Visa, MasterCard $5.6 bln settlement with retailers is upheld (Reporting by Mike Scarcella) ((Mike.Scarcella@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
By Mike Scarcella Dec 15 (Reuters) - Apple, Visa and Mastercard have been hit with a new proposed class action that accuses them of conspiring to thwart competition for point-of-sale payment card network services, causing merchants to pay artificially higher fees for credit and debit transactions. Visa and Mastercard in exchange paid Apple a portion of transaction fees for purchases made on their networks by consumers using Apple’s Mobile Wallet service, according to the lawsuit. Lawyers representing Mirage Wine & Spirits also did not immediately comment.
|
a5805b96-531a-489d-b9c8-f453432c7f94
|
711952.0
|
2023-12-13 00:00:00 UTC
|
CGI (GIB) Benefits From Expanding Clientele, Partner Base
|
DCOMP
|
https://www.nasdaq.com/articles/cgi-gib-benefits-from-expanding-clientele-partner-base-0
|
nan
|
nan
|
CGI Group GIB is benefiting from its strong portfolio and an expanding partner base. Through its recent partnership with Alphabet’s GOOGL cloud platform Google Cloud, CGI is set to launch the United Nations Industrial Development Organization (UNIDO) Sustainability Planet Platform.
This innovative platform leverages CGI and Alphabet’s cloud offering Google Cloud extensive geospatial and sociological data, combined with AI-generated forecasted data, to address sustainability challenges such as air pollution, rising temperatures and flooding.
The platform, aligned with UNIDO's mission to foster inclusive and sustainable industrial development, will provide member states and stakeholders with a comprehensive view of UNIDO's projects, partnerships, and industrial development statistics.
By integrating data from diverse sources, including satellite imagery, temperature data and UNIDO's project information, users can evaluate advancement toward Sustainable Development Goals (SDGs) at both country and sector levels.
This collaboration also involves CGI's Sustainability Exploration and Environmental Data Science (SEEDS) program, aiming to develop proof-of-concept solutions for the benefit of member states, businesses, and individuals, further supporting UNIDO's digital transformation efforts.
CGI Group, Inc. Price and Consensus
CGI Group, Inc. price-consensus-chart | CGI Group, Inc. Quote
CGI’s Robust Portfolio Drives Prospects
The latest move is in sync with CGI's efforts toward strengthening its competitive position and expanding its presence in the IT services landscape.
The addition of Alphabet and Microsoft MSFT expanded CGI’s partner base emphasizes its collaborative strength within the industry.
CGI expands its partnership with Google to enhance its PulseAI platform, leveraging Google Cloud's Vertex AI for industry-specific generative AI use cases and accelerating implementation through robust infrastructure, furthering innovation in responsible AI.
CGI announced its membership in the Microsoft Intelligent Security Association (MISA). This new partnership with MISA gives CGI access to Microsoft's security product line, allowing it to provide clients with higher value and comprehensive security.
In November, CGI launched a cloud-ready enterprise payments solution, CGI All Payments, on AWS Marketplace, streamlining payment procedures for banks and offering scalability, ISO 20022 standards compliance and cloud-based delivery.
CGI also partnered with All in Solutions LLC to form a joint venture, Adcredo IT Solutions. The joint venture has been formed to expand the company’s IT and consulting services for businesses.
CGI’s Outlook Strong
The company's fiscal 2024 plan includes continued investments in end-to-end services, allowing its consultants to bring CGI's full offering value proposition to clients. This is expected to help CGI win more deals.
As macroeconomic and geopolitical variables continue to change the IT services industry's consolidation operations, the company plans further investments in acquisitions in fiscal 2024.
The Zacks Consensus Estimate for first-quarter fiscal 2024 revenues is pegged at $2.59 billion, indicating 2.07% year-over-year growth. The consensus estimate for first-quarter earnings is pegged at $1.31 per share, indicating 7.38% year-over-year growth.
Zacks Rank & Stocks to Consider
Currently, GIB carries a Zacks Rank #4 (Sell).
CGI Group’s shares have returned 23.3% year to date compared with the Zacks Computer & Technology sector’s increase of 49.1%.
A better-ranked stock in the broader technology sector is Flex FLEX, which currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Flex’s shares have returned 33.6% on a year-to-date basis.
Long-term earnings growth rates for FLEX are pegged at 12.39%.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Flex Ltd. (FLEX) : Free Stock Analysis Report
CGI Group, Inc. (GIB) : 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.
|
This collaboration also involves CGI's Sustainability Exploration and Environmental Data Science (SEEDS) program, aiming to develop proof-of-concept solutions for the benefit of member states, businesses, and individuals, further supporting UNIDO's digital transformation efforts. The addition of Alphabet and Microsoft MSFT expanded CGI’s partner base emphasizes its collaborative strength within the industry. As macroeconomic and geopolitical variables continue to change the IT services industry's consolidation operations, the company plans further investments in acquisitions in fiscal 2024.
|
Through its recent partnership with Alphabet’s GOOGL cloud platform Google Cloud, CGI is set to launch the United Nations Industrial Development Organization (UNIDO) Sustainability Planet Platform. CGI’s Outlook Strong The company's fiscal 2024 plan includes continued investments in end-to-end services, allowing its consultants to bring CGI's full offering value proposition to clients. Click to get this free report Microsoft Corporation (MSFT) : Free Stock Analysis Report Flex Ltd. (FLEX) : Free Stock Analysis Report CGI Group, Inc. (GIB) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
CGI Group, Inc. Price and Consensus CGI Group, Inc. price-consensus-chart | CGI Group, Inc. Quote CGI’s Robust Portfolio Drives Prospects The latest move is in sync with CGI's efforts toward strengthening its competitive position and expanding its presence in the IT services landscape. CGI’s Outlook Strong The company's fiscal 2024 plan includes continued investments in end-to-end services, allowing its consultants to bring CGI's full offering value proposition to clients. Click to get this free report Microsoft Corporation (MSFT) : Free Stock Analysis Report Flex Ltd. (FLEX) : Free Stock Analysis Report CGI Group, Inc. (GIB) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
CGI Group GIB is benefiting from its strong portfolio and an expanding partner base. Zacks Rank & Stocks to Consider Currently, GIB carries a Zacks Rank #4 (Sell). A better-ranked stock in the broader technology sector is Flex FLEX, which currently sports a Zacks Rank #1 (Strong Buy).
|
a562ee6e-7223-4187-8510-c77e9f6d8cb7
|
711953.0
|
2023-12-13 00:00:00 UTC
|
Friday Sector Laggards: General Contractors & Builders, Education & Training Services
|
DCOMP
|
https://www.nasdaq.com/articles/friday-sector-laggards%3A-general-contractors-builders-education-training-services
|
nan
|
nan
|
In trading on Friday, general contractors & builders shares were relative laggards, down on the day by about 3%. Helping drag down the group were shares Hovnanian Enterprises down about 6.8% on the day.
Also lagging the market Friday are education & training services shares, down on the day by about 2.1% as a group, led down by American Public Education, trading lower by about 14.1% and Gaotu Techedu, trading lower by about 8.6%.
VIDEO: Friday Sector Laggards: General Contractors & Builders, Education & Training Services
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In trading on Friday, general contractors & builders shares were relative laggards, down on the day by about 3%. Also lagging the market Friday are education & training services shares, down on the day by about 2.1% as a group, led down by American Public Education, trading lower by about 14.1% and Gaotu Techedu, trading lower by about 8.6%. VIDEO: Friday Sector Laggards: General Contractors & Builders, Education & Training Services The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In trading on Friday, general contractors & builders shares were relative laggards, down on the day by about 3%. Also lagging the market Friday are education & training services shares, down on the day by about 2.1% as a group, led down by American Public Education, trading lower by about 14.1% and Gaotu Techedu, trading lower by about 8.6%. VIDEO: Friday Sector Laggards: General Contractors & Builders, Education & Training Services The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In trading on Friday, general contractors & builders shares were relative laggards, down on the day by about 3%. Also lagging the market Friday are education & training services shares, down on the day by about 2.1% as a group, led down by American Public Education, trading lower by about 14.1% and Gaotu Techedu, trading lower by about 8.6%. VIDEO: Friday Sector Laggards: General Contractors & Builders, Education & Training Services The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In trading on Friday, general contractors & builders shares were relative laggards, down on the day by about 3%. Helping drag down the group were shares Hovnanian Enterprises down about 6.8% on the day. Also lagging the market Friday are education & training services shares, down on the day by about 2.1% as a group, led down by American Public Education, trading lower by about 14.1% and Gaotu Techedu, trading lower by about 8.6%.
|
e74d90c8-9630-4258-9342-ed596f4ec9fd
|
711954.0
|
2023-12-13 00:00:00 UTC
|
Moderna (MRNA) Soars on Upbeat Data From Cancer Therapy Study
|
DCOMP
|
https://www.nasdaq.com/articles/moderna-mrna-soars-on-upbeat-data-from-cancer-therapy-study
|
nan
|
nan
|
Shares of Moderna MRNA were up 9.3% on Thursday after management reported median follow-up data of around three years from a mid-stage study on its individualized neoantigen therapy (INT) candidate mRNA-4157/V940 in melanoma indication. The candidate is being developed in collaboration with Merck MRK.
The phase IIb KEYNOTE-942 study evaluated the combination mRNA-4157 and Merck’s blockbuster immuno-oncology drug Keytruda in patients with resected high-risk melanoma (stage III/IV) following complete resection.
At a median planned follow-up of approximately three years, treatment with mRNA-4157/Keytruda combination reduced the risk of recurrence or death by 49% compared with those treated with Keytruda alone. Treatment with this combination also reduced the risk of developing distant metastasis or death by 62% compared with Keytruda alone.
We remind investors that Moderna/Merck had reported last year that the KEYNOTE-942 study achieved its primary endpoint of recurrence-free survival (RFS). Earlier this year, the companies reported two-year follow-up data from the KEYNOTE-942 study wherein treatment with the mRNA-4157/Keytruda combination cut the risks of recurrence/death by 44% and the risk of distant metastasis or death by 65%.
The above results demonstrate the significant benefit of combining mRNA-4157 with Keytruda over a longer period of time compared with Keytruda alone. Moderna’s share price likely rose on the back of this encouraging update.
Year to date, the stock has lost 52.2% compared with the industry’s 16.2% fall.
Image Source: Zacks Investment Research
Based on the two-year follow-up data from the KEYNOTE-942 study, Moderna/Merck initiated the pivotal phase III INTerpath-001 study in July, evaluating the mRNA-4157/Keytruda combination as an adjuvant treatment in patients with resected high-risk (Stage IIB-IV) melanoma.
Earlier this week, Moderna and Merck initiated a second pivotal late-stage study (INTerpath-002) evaluating the mRNA-4157/Keytruda combo in non-small cell lung cancer (NSCLC) indication. Over time, the companies intend to develop mRNA-4157 in other oncology indications.
Merck and Moderna entered a strategic partnership in 2016 to develop and commercialize mRNA-based therapeutics to treat various types of cancer. Last year, Merck exercised its option to develop the INT with Moderna. Per the terms of the collaboration, the companies will share costs and profits equally.
Unlike other therapies that are uniformly designed to treat all patients, INT aims to bring individualized treatment to cancer patients. mRNA-4157 is tailored for each patient based on the unique mutational signature of a patient's tumor.
As opposed to traditional medications, mRNA-based therapies teach the body how to make a specific protein that can help your immune system prevent or treat certain diseases.The COVID-19 pandemic demonstrated the potential of mRNA-based therapeutics. By way of COVID-19 vaccines, mRNA vaccines have generated immune responses against the virus at record-high levels compared with traditional protein-based and adeno-based vaccines.
Moderna, Inc. Price
Moderna, Inc. price | Moderna, Inc. Quote
Zacks Rank & Key Picks
Moderna currently carries a Zacks Rank #3 (Hold). A couple of better-ranked stocks in the overall healthcare sector include Galapagos GLPG and Ocuphire Pharma OCUP, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, Galapagos’ estimates for 2023 have improved from a loss of $1.96 per share to 79 cents. During the same period, loss estimates per share for 2024 have narrowed from $3.22 to $1.68. Galapagos’ shares have lost 9.2% in the year-to-date period.
Galapagos’ earnings beat estimates in three of the last four quarters while missing the estimates on one occasion. On average, the company witnessed an average surprise of 91.97%. In the last reported quarter, Galapagos’ earnings beat estimates by 140.78%.
In the past 60 days, Ocuphire’s estimates for 2023 have improved from a loss of 60 cents per share to 42 cents. During the same period, loss estimates per share for 2024 have narrowed from 85 cents to 57 cents. Shares of Ocuphire have lost 25.2% in the year-to-date period.
Ocuphire’s earnings beat estimates in three of the last four quarters while missing the estimates on one occasion. On average, the company witnessed an earnings surprise of 59.28%. In the last reported quarter, Ocuphire’s earnings beat estimates by 178.13%.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Merck & Co., Inc. (MRK) : Free Stock Analysis Report
Moderna, Inc. (MRNA) : Free Stock Analysis Report
Galapagos NV (GLPG) : Free Stock Analysis Report
Ocuphire Pharma, Inc. (OCUP) : 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.
|
Shares of Moderna MRNA were up 9.3% on Thursday after management reported median follow-up data of around three years from a mid-stage study on its individualized neoantigen therapy (INT) candidate mRNA-4157/V940 in melanoma indication. Earlier this week, Moderna and Merck initiated a second pivotal late-stage study (INTerpath-002) evaluating the mRNA-4157/Keytruda combo in non-small cell lung cancer (NSCLC) indication. A couple of better-ranked stocks in the overall healthcare sector include Galapagos GLPG and Ocuphire Pharma OCUP, each sporting a Zacks Rank #1 (Strong Buy) at present.
|
Image Source: Zacks Investment Research Based on the two-year follow-up data from the KEYNOTE-942 study, Moderna/Merck initiated the pivotal phase III INTerpath-001 study in July, evaluating the mRNA-4157/Keytruda combination as an adjuvant treatment in patients with resected high-risk (Stage IIB-IV) melanoma. Moderna, Inc. Price Moderna, Inc. price | Moderna, Inc. Quote Zacks Rank & Key Picks Moderna currently carries a Zacks Rank #3 (Hold). Click to get this free report Merck & Co., Inc. (MRK) : Free Stock Analysis Report Moderna, Inc. (MRNA) : Free Stock Analysis Report Galapagos NV (GLPG) : Free Stock Analysis Report Ocuphire Pharma, Inc. (OCUP) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
Image Source: Zacks Investment Research Based on the two-year follow-up data from the KEYNOTE-942 study, Moderna/Merck initiated the pivotal phase III INTerpath-001 study in July, evaluating the mRNA-4157/Keytruda combination as an adjuvant treatment in patients with resected high-risk (Stage IIB-IV) melanoma. Moderna, Inc. Price Moderna, Inc. price | Moderna, Inc. Quote Zacks Rank & Key Picks Moderna currently carries a Zacks Rank #3 (Hold). Click to get this free report Merck & Co., Inc. (MRK) : Free Stock Analysis Report Moderna, Inc. (MRNA) : Free Stock Analysis Report Galapagos NV (GLPG) : Free Stock Analysis Report Ocuphire Pharma, Inc. (OCUP) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
The candidate is being developed in collaboration with Merck MRK. Image Source: Zacks Investment Research Based on the two-year follow-up data from the KEYNOTE-942 study, Moderna/Merck initiated the pivotal phase III INTerpath-001 study in July, evaluating the mRNA-4157/Keytruda combination as an adjuvant treatment in patients with resected high-risk (Stage IIB-IV) melanoma. Moderna, Inc. Price Moderna, Inc. price | Moderna, Inc. Quote Zacks Rank & Key Picks Moderna currently carries a Zacks Rank #3 (Hold).
|
4f29ac3e-d383-433d-b805-ebdd5a20f619
|
711955.0
|
2023-12-13 00:00:00 UTC
|
Friday Sector Leaders: Shipping, Cigarettes & Tobacco Stocks
|
DCOMP
|
https://www.nasdaq.com/articles/friday-sector-leaders%3A-shipping-cigarettes-tobacco-stocks-0
|
nan
|
nan
|
In trading on Friday, shipping shares were relative leaders, up on the day by about 3%. Leading the group were shares of ZIM Integrated Shipping Services, up about 18.2% and shares of StealthGas up about 6.8% on the day.
Also showing relative strength are cigarettes & tobacco shares, up on the day by about 1.7% as a group, led by Ispire Technology, trading up by about 13.3% and Universal, trading up by about 1.2% on Friday.
VIDEO: Friday Sector Leaders: Shipping, Cigarettes & Tobacco Stocks
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In trading on Friday, shipping shares were relative leaders, up on the day by about 3%. Also showing relative strength are cigarettes & tobacco shares, up on the day by about 1.7% as a group, led by Ispire Technology, trading up by about 13.3% and Universal, trading up by about 1.2% on Friday. VIDEO: Friday Sector Leaders: Shipping, Cigarettes & Tobacco Stocks The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In trading on Friday, shipping shares were relative leaders, up on the day by about 3%. Also showing relative strength are cigarettes & tobacco shares, up on the day by about 1.7% as a group, led by Ispire Technology, trading up by about 13.3% and Universal, trading up by about 1.2% on Friday. VIDEO: Friday Sector Leaders: Shipping, Cigarettes & Tobacco Stocks The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In trading on Friday, shipping shares were relative leaders, up on the day by about 3%. Also showing relative strength are cigarettes & tobacco shares, up on the day by about 1.7% as a group, led by Ispire Technology, trading up by about 13.3% and Universal, trading up by about 1.2% on Friday. VIDEO: Friday Sector Leaders: Shipping, Cigarettes & Tobacco Stocks The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In trading on Friday, shipping shares were relative leaders, up on the day by about 3%. Leading the group were shares of ZIM Integrated Shipping Services, up about 18.2% and shares of StealthGas up about 6.8% on the day. Also showing relative strength are cigarettes & tobacco shares, up on the day by about 1.7% as a group, led by Ispire Technology, trading up by about 13.3% and Universal, trading up by about 1.2% on Friday.
|
f26ea06a-9985-4b0e-b77c-da30c83cc255
|
711956.0
|
2023-12-13 00:00:00 UTC
|
Britain's Metro Bank decides not to sell mortgage book
|
DCOMP
|
https://www.nasdaq.com/articles/britains-metro-bank-decides-not-to-sell-mortgage-book
|
nan
|
nan
|
Writes through, adds more detail from the statement and context
LONDON, Dec 15 (Reuters) - Britain's Metro Bank MTRO.L said on Friday it had abandoned its planned sale of a 3 billion pound ($3.8 billion) mortgage portfolio, citing market conditions.
The bank began exploring the potential sale in October, as part of urgent moves to bolster its balance sheet that led to a 925 million pound rescue package.
Metro said on Friday that this refinancing, which was backed by Colombian billionaire Jaime Gilinski, had given it renewed balance sheet strength.
"Given the prevailing market environment, it is in the best interests of shareholders to retain the existing loan portfolio," it said in a statement.
Metro announced a cost reduction plan in November that could see it lay off 20% of its workforce and axe some of its biggest customer benefits, including seven-day opening hours.
Sky News reported last month that Barclays BARC.L was in exclusive talks to buy the mortgage book. Other potential contenders had included Spain's SantanderSAN.MC.
($1 = 0.7868 pounds)
(Reporting by Sri Hari N S and Prerna Bedi in Bengaluru and Iain Withers in London; Editing by Krishna Chandra Eluri and Alexander Smith)
((SriHari.NS@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.
|
The bank began exploring the potential sale in October, as part of urgent moves to bolster its balance sheet that led to a 925 million pound rescue package. Metro said on Friday that this refinancing, which was backed by Colombian billionaire Jaime Gilinski, had given it renewed balance sheet strength. Metro announced a cost reduction plan in November that could see it lay off 20% of its workforce and axe some of its biggest customer benefits, including seven-day opening hours.
|
Writes through, adds more detail from the statement and context LONDON, Dec 15 (Reuters) - Britain's Metro Bank MTRO.L said on Friday it had abandoned its planned sale of a 3 billion pound ($3.8 billion) mortgage portfolio, citing market conditions. The bank began exploring the potential sale in October, as part of urgent moves to bolster its balance sheet that led to a 925 million pound rescue package. Metro said on Friday that this refinancing, which was backed by Colombian billionaire Jaime Gilinski, had given it renewed balance sheet strength.
|
Writes through, adds more detail from the statement and context LONDON, Dec 15 (Reuters) - Britain's Metro Bank MTRO.L said on Friday it had abandoned its planned sale of a 3 billion pound ($3.8 billion) mortgage portfolio, citing market conditions. The bank began exploring the potential sale in October, as part of urgent moves to bolster its balance sheet that led to a 925 million pound rescue package. ($1 = 0.7868 pounds) (Reporting by Sri Hari N S and Prerna Bedi in Bengaluru and Iain Withers in London; Editing by Krishna Chandra Eluri and Alexander Smith) ((SriHari.NS@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.
|
Writes through, adds more detail from the statement and context LONDON, Dec 15 (Reuters) - Britain's Metro Bank MTRO.L said on Friday it had abandoned its planned sale of a 3 billion pound ($3.8 billion) mortgage portfolio, citing market conditions. The bank began exploring the potential sale in October, as part of urgent moves to bolster its balance sheet that led to a 925 million pound rescue package. Metro said on Friday that this refinancing, which was backed by Colombian billionaire Jaime Gilinski, had given it renewed balance sheet strength.
|
d402e18a-fdac-4506-9f0f-7fe4eeb33e45
|
711957.0
|
2023-12-13 00:00:00 UTC
|
C3.ai Stock: Only Get In if You Can Hold for Years
|
DCOMP
|
https://www.nasdaq.com/articles/c3.ai-stock%3A-only-get-in-if-you-can-hold-for-years
|
nan
|
nan
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Want to get direct exposure to the artificial intelligence (AI) market? One simple way is to invest in enterprise AI software company C3.ai (NYSE:AI). However, there are both green flags and red flags with C3.ai, so consider your time horizon and risk tolerance if you plan to own AI stock.
Furthermore, don’t buy C3.ai stock unless you’re on board with the company’s investments in AI technology. C3.ai is spending money now in hopes that it will pay off later. There are no guarantees of success, so be patient and keep your position size small.
Good and Not-so-Good News for AI Stock Investors
First, I’ll start off with some positive data points from C3.ai’s second-quarter fiscal 2024 results. The company’s customer engagement grew 81% year over year (YOY), and C3.ai’s revenue increased 17% to $73.2 million. These stats suggest that the demand for enterprise AI software remains robust.
On the other hand, that revenue figure fell toward the lower end of C3.ai’s guidance range, which was previously set at $72.5 million to $76.5 million. Moreover, C3.ai’s $73.2 million in quarterly revenue missed Wall Street’s consensus call for $74.3 million.
As you can see, the good news isn’t all good. What about C3.ai’s bottom-line results, though? In Q2 FY2024, the company posted a GAAP earnings loss of 59 cents per share. On the other hand, C3.ai’s non-GAAP loss of 13 cents per share was better than the analysts’ consensus estimate of a loss of 18 cents per share.
What really concerned investors about C3.ai’s quarterly press release was the company’s forward guidance. For the current quarter, Wall Street called for a $21.1 million non-GAAP operating loss. In contrast, C3.ai disclosed its outlook for a much deeper non-GAAP operating loss of $40 million to $46 million.
Don’t Expect C3.ai’s Investments to Pay Off Immediately
Most likely, C3.ai’s disappointing current-quarter operating-loss guidance reflects the company’s expectation that it will spend a lot of money investing in AI technology. Referring to C3.ai and the company’s management, D.A. Davidson analyst Gil Luria elaborated on this topic:
“Management believes that given the opportunity ahead, it needs to deepen investments in application development, model engineering, lead generation, market awareness and customer success to capture market share.”
“Deepening investments” implies spending substantial capital today in hopes of better results down the line. Unfortunately, Luria added, “These investments are not expected to drive near term growth as management maintained its FY24 revenue guide.”
C3.ai CEO Tom Siebel seems unapologetic about freely spending money to develop the company. Referring to the company’s roughly $800 million in cash holdings, Siebel proclaimed, “I have almost $800 million in the bank… What else am I supposed to do with it? I’m investing it in the business.”
Actually, there’s no requirement that C3.ai must spend its money now. Hence, you’ll have to be willing to overlook a possible lack of financial discipline if you intend to invest in C3.ai.
Stay Small and Be Patient With C3.ai Stock
I’ve been bullish on C3.ai stock before, and I still like the company’s commitment to developing AI technology. However, it’s somewhat troubling that C3.ai is so eager to spend its cash now.
C3.ai’s capital outlays might not yield measurable results for months or even years. Therefore, investors should reduce their risk by only maintaining a small position in AI stock, and by only buying it if they’re prepared to stay in the trade for a long time.
On the date of publication, David Moadel 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.
David Moadel has provided compelling content – and crossed the occasional line – on behalf of Motley Fool, Crush the Street, Market Realist, TalkMarkets, TipRanks, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.
More From InvestorPlace
The #1 AI Investment Might Be This Company You’ve Never Heard Of
Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.
The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors
The post C3.ai Stock: Only Get In if You Can Hold for Years 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.
|
Good and Not-so-Good News for AI Stock Investors First, I’ll start off with some positive data points from C3.ai’s second-quarter fiscal 2024 results. Unfortunately, Luria added, “These investments are not expected to drive near term growth as management maintained its FY24 revenue guide.” C3.ai CEO Tom Siebel seems unapologetic about freely spending money to develop the company. David Moadel has provided compelling content – and crossed the occasional line – on behalf of Motley Fool, Crush the Street, Market Realist, TalkMarkets, TipRanks, Benzinga, and (of course) InvestorPlace.com.
|
Moreover, C3.ai’s $73.2 million in quarterly revenue missed Wall Street’s consensus call for $74.3 million. For the current quarter, Wall Street called for a $21.1 million non-GAAP operating loss. Davidson analyst Gil Luria elaborated on this topic: “Management believes that given the opportunity ahead, it needs to deepen investments in application development, model engineering, lead generation, market awareness and customer success to capture market share.” “Deepening investments” implies spending substantial capital today in hopes of better results down the line.
|
Don’t Expect C3.ai’s Investments to Pay Off Immediately Most likely, C3.ai’s disappointing current-quarter operating-loss guidance reflects the company’s expectation that it will spend a lot of money investing in AI technology. Davidson analyst Gil Luria elaborated on this topic: “Management believes that given the opportunity ahead, it needs to deepen investments in application development, model engineering, lead generation, market awareness and customer success to capture market share.” “Deepening investments” implies spending substantial capital today in hopes of better results down the line. Stay Small and Be Patient With C3.ai Stock I’ve been bullish on C3.ai stock before, and I still like the company’s commitment to developing AI technology.
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips Want to get direct exposure to the artificial intelligence (AI) market? Referring to the company’s roughly $800 million in cash holdings, Siebel proclaimed, “I have almost $800 million in the bank… What else am I supposed to do with it? Therefore, investors should reduce their risk by only maintaining a small position in AI stock, and by only buying it if they’re prepared to stay in the trade for a long time.
|
dc85d5d7-d01d-44aa-a578-4c7478377d61
|
711958.0
|
2023-12-13 00:00:00 UTC
|
Costco's (COST) Q1 Earnings Top, Comparable Sales Up 3.8%
|
DCOMP
|
https://www.nasdaq.com/articles/costcos-cost-q1-earnings-top-comparable-sales-up-3.8
|
nan
|
nan
|
Costco Wholesale Corporation COST reported first-quarter fiscal 2024 results, with the top and the bottom line beating the Zacks Consensus Estimate and increasing year over year. Comparable sales also showcased a year-over-year improvement. Management announced a special dividend, marking its fifth special dividend in the last 11 years.
Q1 in Details
Costco’s reported earnings of $3.58 per share compared with $3.07 million reported in the year-ago quarter. Excluding tax benefits, earnings came in at $3.48 million. The Zacks Consensus Estimate for the bottom line was pegged at $3.45 per share.
Total revenues — comprising net sales and membership fees — reached $57,799 million, up from $54,437 million reported in the year-ago quarter. This figure also surpassed the Zacks Consensus Estimate of $57,674.1 million.
Costco's net sales exhibited growth of 6.1% year over year to reach $56,717 million. Membership fees stood at $1,082 million, up from $1,000 million reported in the year-ago quarter.
Costco Wholesale Corporation Price, Consensus and EPS Surprise
Costco Wholesale Corporation price-consensus-eps-surprise-chart | Costco Wholesale Corporation Quote
Total company comparable sales increased 3.8% year over year. Excluding the impact of gasoline prices and foreign exchange, the adjusted figure increased 3.9% year over year.
The United States, Canada and Other International locations registered comparable sales growth of 2%, 6.4% and 11.2%, respectively. On an adjusted basis, comparable sales in the United States, Canada and Other International locations moved up 2.6%, 8.2% and 7.1%, respectively.
In the fiscal first quarter, Costco's comparable e-commerce sales grew 6.3%, while the adjusted figure increased 6.1%.
Selling, general and administrative came in at $5,358 million, up from $4,917 million reported in the year-ago quarter. As a percentage of net sales, the metric came in at 9.45%, up 25 basis points (bps) year over year.
Costco's reported gross margin of 11.04% expanded 43 bps year from 10.61% reported in the year-ago quarter. Operating income was $1,984 million, reflecting an increase from $1,751 million posted in the prior-year quarter.
Traffic or shopping frequency rose 4.7% globally and 3.6% in the United States. However, the company’s average transaction inched down 0.9% worldwide while dropping 1.6% in the United States.
Other Update
Costco currently operates 871 warehouses. These include 600 in the United States and Puerto Rico, 108 in Canada, 40 in Mexico, 33 in Japan, 29 in the U.K., 18 in Korea, 15 in Australia, 14 in Taiwan, five in China, four in Spain, two in France and one each in Iceland, New Zealand and Sweden. For the fiscal 2024, management expects to open 33 locations, which includes two relocations. In the fiscal second quarter, the company is planning to open four new locations.
The company unveiled a special cash dividend on the common stock of $15 per share, payable on Jan 12, 2024, to shareholders of record as of Dec 28.
Image Source: Zacks Investment Research
Financial Aspects
Costco ended the reported quarter with cash and cash equivalents of $17,011 million and long-term debt (excluding the current portion) of $5,866 million. The total equity was $26,147 million. For the 12 weeks ended Nov 26, 2023, net cash provided by operating activities stood at $4,651 million.
Management incurred capital expenditures of nearly $1.04 billion in the reported quarter. For fiscal 2024, the company expects capital expenditures in the range of $4.4-$4.6 billion.
Shares of this Zacks Rank #3 (Hold) company have increased 13.1% in the past three months compared with the industry’s growth of 12.2%.
Top 3 Picks
Regis Corporation RGS owns, franchises and operates beauty salons. RGS currently flaunts a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Regis Corp’s current fiscal year earnings suggests growth of 43.5% from the year-ago period’s reported figure. RGS has a trailing four-quarter earnings surprise of 22%, on average.
Target TGT, a general merchandise retailer, currently has a Zacks Rank #2 (Buy). TGT has a trailing four-quarter earnings surprise of 30.8%, on average.
The Zacks Consensus Estimate for Target’s current financial-year earnings suggests growth of 38.5% from the year-ago reported numbers.
MarineMax HZO, a recreational boat and yacht retailer and a superyacht services company, carries a Zacks Rank #2. MarineMax has a trailing four-quarter negative earnings surprise of 10.1% on average.
The Zacks Consensus Estimate for HZO’s current financial year sales suggests growth of 3.1% from the year-ago period’s figures.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Target Corporation (TGT) : Free Stock Analysis Report
Regis Corporation (RGS) : Free Stock Analysis Report
Costco Wholesale Corporation (COST) : Free Stock Analysis Report
MarineMax, Inc. (HZO) : 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.
|
These include 600 in the United States and Puerto Rico, 108 in Canada, 40 in Mexico, 33 in Japan, 29 in the U.K., 18 in Korea, 15 in Australia, 14 in Taiwan, five in China, four in Spain, two in France and one each in Iceland, New Zealand and Sweden. The Zacks Consensus Estimate for Regis Corp’s current fiscal year earnings suggests growth of 43.5% from the year-ago period’s reported figure. The Zacks Consensus Estimate for HZO’s current financial year sales suggests growth of 3.1% from the year-ago period’s figures.
|
Costco Wholesale Corporation Price, Consensus and EPS Surprise Costco Wholesale Corporation price-consensus-eps-surprise-chart | Costco Wholesale Corporation Quote Total company comparable sales increased 3.8% year over year. The Zacks Consensus Estimate for Regis Corp’s current fiscal year earnings suggests growth of 43.5% from the year-ago period’s reported figure. Click to get this free report Target Corporation (TGT) : Free Stock Analysis Report Regis Corporation (RGS) : Free Stock Analysis Report Costco Wholesale Corporation (COST) : Free Stock Analysis Report MarineMax, Inc. (HZO) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
Costco Wholesale Corporation COST reported first-quarter fiscal 2024 results, with the top and the bottom line beating the Zacks Consensus Estimate and increasing year over year. Costco Wholesale Corporation Price, Consensus and EPS Surprise Costco Wholesale Corporation price-consensus-eps-surprise-chart | Costco Wholesale Corporation Quote Total company comparable sales increased 3.8% year over year. Click to get this free report Target Corporation (TGT) : Free Stock Analysis Report Regis Corporation (RGS) : Free Stock Analysis Report Costco Wholesale Corporation (COST) : Free Stock Analysis Report MarineMax, Inc. (HZO) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
Q1 in Details Costco’s reported earnings of $3.58 per share compared with $3.07 million reported in the year-ago quarter. The United States, Canada and Other International locations registered comparable sales growth of 2%, 6.4% and 11.2%, respectively. Shares of this Zacks Rank #3 (Hold) company have increased 13.1% in the past three months compared with the industry’s growth of 12.2%.
|
c857b270-cd30-4490-8258-556f1895ef0b
|
711959.0
|
2023-12-13 00:00:00 UTC
|
US natgas prices climb 4% to one-week high with rising demand
|
DCOMP
|
https://www.nasdaq.com/articles/us-natgas-prices-climb-4-to-one-week-high-with-rising-demand
|
nan
|
nan
|
By Scott DiSavino
Dec 15 (Reuters) - U.S. natural gas futures climbed about 4% to a one-week high on Friday on forecasts for higher demand next week than previously expected and as record amounts of gas flow to liquefied natural gas (LNG) export plants.
That price increase came despite record gas production and forecasts for mild weather and lower heating demand in two weeks that should allow utilities to keep pulling less gas from storage than usual through the end of December.
Analysts forecast there was currently around 8.7% more gas in storage than usual for this time of year. EIA/GASNGAS/POLL
Front-month gas futures NGc1 for January delivery on the New York Mercantile Exchange (NYMEX) rose 9.9 cents, or 4.1%, to settle at $2.491 per million British thermal units (mmBtu), their highest close since Dec. 8.
That gain - the third daily price increase in a row - pushed the front-month out of technically oversold territory for the first time in eight days.
The contract, however, was still down about 3% this week, putting it down for a sixth week in a row for the first time since February.
Record production and ample gas in storage weighted on futures prices for weeks and prompted some traders to forecast that prices already peaked this winter (November-March) in November.
Investor interest in trading gas has increased in recent weeks with open interest in NYMEX futures on Dec. 13 at a 26-month high of 1.423 million contracts and shares outstanding in the U.S. Natural Gas Fund (UNG) UNG at a record 197.9 million contracts. UNG is an Exchange Traded Fund (ETF) designed to track the daily price movements of gas.
Analysts, meanwhile, said they expect U.S. prices to rise in coming years as new LNG export plants enter service in the U.S., Canada and Mexico to meet rising global demand for the fuel.
But expected delays at LNG export plants being built by Exxon Mobil XOM.N/QatarEnergy at Golden Pass in Texas and Venture Global LNG at Plaquemines in Louisiana have caused some analysts to reduce their forecasts for U.S. as demand and prices in 2024. NGAS/POLL
SUPPLY AND DEMAND
Financial firm LSEG said average gas output in the Lower 48 U.S. states rose to 108.5 bcfd so far in December from a record 108.3 bcfd in November.
Meteorologists projected the weather would remain mostly warmer than normal through at least Dec. 30.
But even though the weather will remain mild, LSEG forecast U.S. gas demand in the Lower 48, including exports, would rise from 125.1 bcfd this week 127.7 bcfd next week with the usual seasonal cooling at this time of year before sliding to 124.1 bcfd during the last week of the year when many businesses and government offices shut for the Christmas holiday.
The forecast for next week was higher than LSEG's outlook on Thursday.
Gas flows to the seven big U.S. LNG export plants rose to an average of 14.5 bcfd so far in December, up from a record 14.3 bcfd in November.
Week ended Dec 15 Forecast
Week ended Dec 8 Actual
Year ago Dec 15
Five-year average
Dec 15
U.S. weekly natgas storage change (bcf):
-80
-55
-82
-107
U.S. total natgas in storage (bcf):
3,584
3,664
3,337
3,297
U.S. total storage versus 5-year average
8.7%
7.6%
Global Gas Benchmark Futures ($ per mmBtu)
Current Day
Prior Day
This Month Last Year
Prior Year Average 2022
Five Year Average (2017-2021)
Henry Hub NGc1
2.40
2.39
5.77
6.54
2.89
Title Transfer Facility (TTF) TRNLTTFMc1
10.83
11.13
36.68
40.50
7.49
Japan Korea Marker (JKM) JKMc1
15.33
15.46
32.34
34.11
8.95
LSEG Heating (HDD), Cooling (CDD) and Total (TDD) Degree Days
Two-Week Total Forecast
Current Day
Prior Day
Prior Year
10-Year Norm
30-Year Norm
U.S. GFS HDDs
334
330
475
387
416
U.S. GFS CDDs
1
1
3
5
4
U.S. GFS TDDs
335
331
378
392
420
LSEG U.S. Weekly GFS Supply and Demand Forecasts
Prior Week
Current Week
Next Week
This Week Last Year
Five-Year (2018-2022) Average For Month
U.S. Supply (bcfd)
U.S. Lower 48 Dry Production
108.1
108.9
108.6
102.8
94.2
U.S. Imports from Canada8
8.8
8.6
8.7
10.0
9.1
U.S. LNG Imports
0.0
0.0
0.0
0.0
0.2
Total U.S. Supply
116.9
117.5
117.3
112.8
103.5
U.S. Demand (bcfd)
U.S. Exports to Canada
3.3
3.4
3.4
3.4
3.2
U.S. Exports to Mexico
3.9
3.8
4.6
5.2
5.0
U.S. LNG Exports
14.5
14.7
14.9
12.6
8.6
U.S. Commercial
13.2
13.8
14.1
15.4
14.6
U.S. Residential
20.9
22.3
22.8
25.8
24.7
U.S. Power Plant
33.2
34.2
34.9
30.4
28.6
U.S. Industrial
24.3
24.6
24.8
24.7
25.0
U.S. Plant Fuel
5.3
5.4
5.4
5.3
5.3
U.S. Pipe Distribution
2.7
2.7
2.8
2.7
2.9
U.S. Vehicle Fuel
0.1
0.1
0.1
0.1
0.1
Total U.S. Consumption
99.8
103.2
104.9
104.4
101.2
Total U.S. Demand
121.4
125.1
127.7
125.6
118.0
U.S. Northwest River Forecast Center (NWRFC) at The Dalles Dam
Current Day % of Normal Forecast
Prior Day % of Normal Forecast
2023
% of Normal Actual
2022 % of Normal Actual
2021 % of Normal Actual
Apr-Sep
82
83
83
107
81
Jan-Jul
81
81
77
102
79
Oct-Sep
81
82
76
103
81
U.S. weekly power generation percent by fuel - EIA
Week ended Dec 15
Week ended Dec 8
Week ended Dec 1
Week ended Nov 24
Week ended Nov 17
Wind
11
12
10
11
9
Solar
3
3
3
3
3
Hydro
6
5
6
6
6
Other
2
2
2
2
2
Petroleum
Natural Gas
41
40
42
39
42
Coal
17
17
17
16
17
Nuclear
20
21
20
22
21
SNL U.S. Natural Gas Next-Day Prices ($ per mmBtu)
Hub
Current Day
Prior Day
Henry Hub NG-W-HH-SNL
2.39
2.33
Transco Z6 New York NG-CG-NY-SNL
1.74
2.04
PG&E Citygate NG-CG-PGE-SNL
3.85
4.22
Eastern Gas (old Dominion South) NG-PCN-APP-SNL
1.64
1.74
Chicago Citygate NG-CG-CH-SNL
2.12
2.02
Algonquin Citygate NG-CG-BS-SNL
2.02
3.20
SoCal Citygate NG-SCL-CGT-SNL
3.60
4.25
Waha Hub NG-WAH-WTX-SNL
1.94
1.85
AECO NG-ASH-ALB-SNL
1.25
1.23
SNL U.S. Power Next-Day Prices ($ per megawatt-hour)
Hub
Current Day
Prior Day
New England EL-PK-NPMS-SNL
28.25
35.50
PJM West EL-PK-PJMW-SNL
32.50
38.25
Ercot North EL-PK-ERTN-SNL
22.00
23.50
Mid C EL-PK-MIDC-SNL
51.00
62.13
Palo Verde EL-PK-PLVD-SNL
52.25
56.25
SP-15 EL-PK-SP15-SNL
54.50
54.50
(Reporting by Scott DiSavino; editing by Diane Craft )
((scott.disavino@thomsonreuters.com; +1 332 219 1922; Reuters Messaging: scott.disavino.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
EIA/GASNGAS/POLL Front-month gas futures NGc1 for January delivery on the New York Mercantile Exchange (NYMEX) rose 9.9 cents, or 4.1%, to settle at $2.491 per million British thermal units (mmBtu), their highest close since Dec. 8. That gain - the third daily price increase in a row - pushed the front-month out of technically oversold territory for the first time in eight days. Consumption 99.8 103.2 104.9 104.4 101.2 Total U.S. Demand 121.4 125.1 127.7 125.6 118.0 U.S. Northwest River Forecast Center (NWRFC) at The Dalles Dam Current Day % of Normal Forecast Prior Day % of Normal Forecast 2023 % of Normal Actual 2022 % of Normal Actual 2021 % of Normal Actual Apr-Sep 82 83 83 107 81 Jan-Jul 81 81 77 102 79 Oct-Sep 81 82 76 103 81 U.S. weekly power generation percent by fuel - EIA Week ended Dec 15 Week ended Dec 8 Week ended Dec 1 Week ended Nov 24 Week ended Nov 17 Wind 11 12 10 11 9 Solar 3 3 3 3 3 Hydro 6 5 6 6 6 Other 2 2 2 2 2 Petroleum Natural Gas 41 40 42 39 42 Coal 17 17 17 16 17 Nuclear 20 21 20 22 21 SNL U.S. Natural Gas Next-Day Prices ($ per mmBtu) Hub Current Day Prior Day Henry Hub NG-W-HH-SNL 2.39 2.33 Transco Z6 New York NG-CG-NY-SNL 1.74 2.04 PG&E Citygate NG-CG-PGE-SNL 3.85 4.22 Eastern Gas (old Dominion South) NG-PCN-APP-SNL 1.64 1.74 Chicago Citygate NG-CG-CH-SNL 2.12 2.02 Algonquin Citygate NG-CG-BS-SNL 2.02 3.20 SoCal Citygate NG-SCL-CGT-SNL 3.60 4.25 Waha Hub NG-WAH-WTX-SNL 1.94 1.85
|
But even though the weather will remain mild, LSEG forecast U.S. gas demand in the Lower 48, including exports, would rise from 125.1 bcfd this week 127.7 bcfd next week with the usual seasonal cooling at this time of year before sliding to 124.1 bcfd during the last week of the year when many businesses and government offices shut for the Christmas holiday. Week ended Dec 15 Forecast Week ended Dec 8 Actual Year ago Dec 15 Five-year average Dec 15 U.S. weekly natgas storage change (bcf): -80 -55 -82 -107 U.S. total natgas in storage (bcf): 3,584 3,664 3,337 3,297 U.S. total storage versus 5-year average 8.7% 7.6% Global Gas Benchmark Futures ($ per mmBtu) Current Day Prior Day This Month Last Year Prior Year Average 2022 Five Year Average (2017-2021) Henry Hub NGc1 2.40 2.39 5.77 6.54 2.89 Title Transfer Facility (TTF) TRNLTTFMc1 10.83 11.13 36.68 40.50 7.49 Japan Korea Marker (JKM) JKMc1 15.33 15.46 32.34 34.11 8.95 LSEG Heating (HDD), Cooling (CDD) and Total (TDD) Degree Days Two-Week Total Forecast Current Day Prior Day Prior Year 10-Year Norm 30-Year Norm U.S. GFS HDDs 334 330 475 387 416 U.S. GFS CDDs 1 1 3 5 4 U.S. GFS TDDs 335 331 378 392 420 LSEG U.S. Weekly GFS Supply and Demand Forecasts Prior Week Current Week Next Week This Week Last Year Five-Year (2018-2022) Average For Month U.S. Supply (bcfd) U.S. Lower 48 Dry Production 108.1 108.9 108.6 102.8 94.2 U.S. Imports from Canada8 8.8 8.6 8.7 10.0 9.1 U.S. LNG Imports 0.0 0.0 0.0 0.0 0.2 Total U.S. Supply 116.9 117.5 117.3 112.8 103.5 U.S. Demand (bcfd) U.S. Exports to Canada 3.3 3.4 3.4 3.4 3.2 U.S. Exports to Mexico 3.9 3.8 4.6 5.2 5.0 U.S. LNG Exports 14.5 14.7 14.9 12.6 8.6 U.S. Commercial 13.2 13.8 14.1 15.4 14.6 U.S. Consumption 99.8 103.2 104.9 104.4 101.2 Total U.S. Demand 121.4 125.1 127.7 125.6 118.0 U.S. Northwest River Forecast Center (NWRFC) at The Dalles Dam Current Day % of Normal Forecast Prior Day % of Normal Forecast 2023 % of Normal Actual 2022 % of Normal Actual 2021 % of Normal Actual Apr-Sep 82 83 83 107 81 Jan-Jul 81 81 77 102 79 Oct-Sep 81 82 76 103 81 U.S. weekly power generation percent by fuel - EIA Week ended Dec 15 Week ended Dec 8 Week ended Dec 1 Week ended Nov 24 Week ended Nov 17 Wind 11 12 10 11 9 Solar 3 3 3 3 3 Hydro 6 5 6 6 6 Other 2 2 2 2 2 Petroleum Natural Gas 41 40 42 39 42 Coal 17 17 17 16 17 Nuclear 20 21 20 22 21 SNL U.S. Natural Gas Next-Day Prices ($ per mmBtu) Hub Current Day Prior Day Henry Hub NG-W-HH-SNL 2.39 2.33 Transco Z6 New York NG-CG-NY-SNL 1.74 2.04 PG&E Citygate NG-CG-PGE-SNL 3.85 4.22 Eastern Gas (old Dominion South) NG-PCN-APP-SNL 1.64 1.74 Chicago Citygate NG-CG-CH-SNL 2.12 2.02 Algonquin Citygate NG-CG-BS-SNL 2.02 3.20 SoCal Citygate NG-SCL-CGT-SNL 3.60 4.25 Waha Hub NG-WAH-WTX-SNL 1.94 1.85
|
But even though the weather will remain mild, LSEG forecast U.S. gas demand in the Lower 48, including exports, would rise from 125.1 bcfd this week 127.7 bcfd next week with the usual seasonal cooling at this time of year before sliding to 124.1 bcfd during the last week of the year when many businesses and government offices shut for the Christmas holiday. Week ended Dec 15 Forecast Week ended Dec 8 Actual Year ago Dec 15 Five-year average Dec 15 U.S. weekly natgas storage change (bcf): -80 -55 -82 -107 U.S. total natgas in storage (bcf): 3,584 3,664 3,337 3,297 U.S. total storage versus 5-year average 8.7% 7.6% Global Gas Benchmark Futures ($ per mmBtu) Current Day Prior Day This Month Last Year Prior Year Average 2022 Five Year Average (2017-2021) Henry Hub NGc1 2.40 2.39 5.77 6.54 2.89 Title Transfer Facility (TTF) TRNLTTFMc1 10.83 11.13 36.68 40.50 7.49 Japan Korea Marker (JKM) JKMc1 15.33 15.46 32.34 34.11 8.95 LSEG Heating (HDD), Cooling (CDD) and Total (TDD) Degree Days Two-Week Total Forecast Current Day Prior Day Prior Year 10-Year Norm 30-Year Norm U.S. GFS HDDs 334 330 475 387 416 U.S. GFS CDDs 1 1 3 5 4 U.S. GFS TDDs 335 331 378 392 420 LSEG U.S. Weekly GFS Supply and Demand Forecasts Prior Week Current Week Next Week This Week Last Year Five-Year (2018-2022) Average For Month U.S. Supply (bcfd) U.S. Lower 48 Dry Production 108.1 108.9 108.6 102.8 94.2 U.S. Imports from Canada8 8.8 8.6 8.7 10.0 9.1 U.S. LNG Imports 0.0 0.0 0.0 0.0 0.2 Total U.S. Supply 116.9 117.5 117.3 112.8 103.5 U.S. Demand (bcfd) U.S. Exports to Canada 3.3 3.4 3.4 3.4 3.2 U.S. Exports to Mexico 3.9 3.8 4.6 5.2 5.0 U.S. LNG Exports 14.5 14.7 14.9 12.6 8.6 U.S. Commercial 13.2 13.8 14.1 15.4 14.6 U.S. Consumption 99.8 103.2 104.9 104.4 101.2 Total U.S. Demand 121.4 125.1 127.7 125.6 118.0 U.S. Northwest River Forecast Center (NWRFC) at The Dalles Dam Current Day % of Normal Forecast Prior Day % of Normal Forecast 2023 % of Normal Actual 2022 % of Normal Actual 2021 % of Normal Actual Apr-Sep 82 83 83 107 81 Jan-Jul 81 81 77 102 79 Oct-Sep 81 82 76 103 81 U.S. weekly power generation percent by fuel - EIA Week ended Dec 15 Week ended Dec 8 Week ended Dec 1 Week ended Nov 24 Week ended Nov 17 Wind 11 12 10 11 9 Solar 3 3 3 3 3 Hydro 6 5 6 6 6 Other 2 2 2 2 2 Petroleum Natural Gas 41 40 42 39 42 Coal 17 17 17 16 17 Nuclear 20 21 20 22 21 SNL U.S. Natural Gas Next-Day Prices ($ per mmBtu) Hub Current Day Prior Day Henry Hub NG-W-HH-SNL 2.39 2.33 Transco Z6 New York NG-CG-NY-SNL 1.74 2.04 PG&E Citygate NG-CG-PGE-SNL 3.85 4.22 Eastern Gas (old Dominion South) NG-PCN-APP-SNL 1.64 1.74 Chicago Citygate NG-CG-CH-SNL 2.12 2.02 Algonquin Citygate NG-CG-BS-SNL 2.02 3.20 SoCal Citygate NG-SCL-CGT-SNL 3.60 4.25 Waha Hub NG-WAH-WTX-SNL 1.94 1.85
|
By Scott DiSavino Dec 15 (Reuters) - U.S. natural gas futures climbed about 4% to a one-week high on Friday on forecasts for higher demand next week than previously expected and as record amounts of gas flow to liquefied natural gas (LNG) export plants. But even though the weather will remain mild, LSEG forecast U.S. gas demand in the Lower 48, including exports, would rise from 125.1 bcfd this week 127.7 bcfd next week with the usual seasonal cooling at this time of year before sliding to 124.1 bcfd during the last week of the year when many businesses and government offices shut for the Christmas holiday. Week ended Dec 15 Forecast Week ended Dec 8 Actual Year ago Dec 15 Five-year average Dec 15 U.S. weekly natgas storage change (bcf): -80 -55 -82 -107 U.S. total natgas in storage (bcf): 3,584 3,664 3,337 3,297 U.S. total storage versus 5-year average 8.7% 7.6% Global Gas Benchmark Futures ($ per mmBtu) Current Day Prior Day This Month Last Year Prior Year Average 2022 Five Year Average (2017-2021) Henry Hub NGc1 2.40 2.39 5.77 6.54 2.89 Title Transfer Facility (TTF) TRNLTTFMc1 10.83 11.13 36.68 40.50 7.49 Japan Korea Marker (JKM) JKMc1 15.33 15.46 32.34 34.11 8.95 LSEG Heating (HDD), Cooling (CDD) and Total (TDD) Degree Days Two-Week Total Forecast Current Day Prior Day Prior Year 10-Year Norm 30-Year Norm U.S. GFS HDDs 334 330 475 387 416 U.S. GFS CDDs 1 1 3 5 4 U.S. GFS TDDs 335 331 378 392 420 LSEG U.S. Weekly GFS Supply and Demand Forecasts Prior Week Current Week Next Week This Week Last Year Five-Year (2018-2022) Average For Month U.S. Supply (bcfd) U.S. Lower 48 Dry Production 108.1 108.9 108.6 102.8 94.2 U.S. Imports from Canada8 8.8 8.6 8.7 10.0 9.1 U.S. LNG Imports 0.0 0.0 0.0 0.0 0.2 Total U.S. Supply 116.9 117.5 117.3 112.8 103.5 U.S. Demand (bcfd) U.S. Exports to Canada 3.3 3.4 3.4 3.4 3.2 U.S. Exports to Mexico 3.9 3.8 4.6 5.2 5.0 U.S. LNG Exports 14.5 14.7 14.9 12.6 8.6 U.S. Commercial 13.2 13.8 14.1 15.4 14.6 U.S.
|
eb34aa76-81f1-423d-a432-890b6491a828
|
711960.0
|
2023-12-13 00:00:00 UTC
|
Alphabet's (GOOGL) Google Boosts Gen AI Efforts With Duet AI
|
DCOMP
|
https://www.nasdaq.com/articles/alphabets-googl-google-boosts-gen-ai-efforts-with-duet-ai
|
nan
|
nan
|
Alphabet’s GOOGL Google 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.
Duet AI for developers provides developers with real-time code suggestions, chat assistance and enterprise-focused customization.
It focuses on code/boilerplate generation, inline code completion, code explanation and code security guardrails.
Google, in order to boost the capability of Duet AI for developers, has also partnered with 25 companies, including Confluent, HashiCorp and MongoDB, for datasets.
This is likely to aid developers in writing code for their platforms.
We believe that the latest move will likely help Google to compete against its peer Microsoft MSFT, which offers a similar software called Copilot through its subsidiary, GitHub, its in-house AI system that operates across most Office apps.
We note that the latest move has added strength to Google Cloud offerings as well as generative AI capabilities.
Google Cloud, which has become an integral part of Alphabet, 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 the Google Cloud is likely to aid Alphabet’s overall financial performance. This, in turn, is expected to instill investor optimism in the stock.
Our model projects Alphabet’s total 2023 revenues at $303.04 billion, indicating year-over-year growth of 7.1%.
Alphabet Inc. Price and Consensus
Alphabet Inc. price-consensus-chart | Alphabet Inc. Quote
Growing Generative AI Efforts
Apart from the latest move, the company recently introduced its new, advanced and powerful large language model, namely Gemini.
Gemini is available in three different sizes, Gemini Ultra, which is its largest and most capable one; Gemini Pro, designed to offer scalability across various applications; and Gemini Nano, which is designed for specific tasks and mobile devices.
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.
In addition, the company offers consulting services, which include advice and tools through which Google Cloud strives to aid clients in adopting generative AI techniques. These tools are designed to help customers boost automation in their business operations by generating content and summarizing information with the power of AI.
We believe Alphabet remains well-poised to capitalize on growth opportunities present in the booming generative AI market on the back of the abovementioned endeavors. Currently, the company carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
Per an Allied Market Research report, the global generative AI market’s value is likely to hit $191.8 billion by 2032, witnessing a CAGR of 34.1% between 2023 and 2032.
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.
Competitive Scenario
Given the upbeat scenario in the generative AI space, not only Google but also Microsoft, Amazon AMZN and Adobe ADBE 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.
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 (“FM”) from AI companies through an API. The company also made the Amazon Titan Embeddings model generally available. It added Meta’s Llama 2 to Amazon Bedrock as a new model, which will be available through API.
The e-commerce giant’s investment plans in Anthropic remain noteworthy. Amazon will invest $4 billion to acquire a minority stake in Anthropic. This investment will allow AWS to provide access to Anthropic’s future FMs to its customers. These FMs will be available through Amazon Bedrock.
Meanwhile, Adobe recently announced the commercial release of its family of creative, generative AI models — Firefly.
Adobe Firefly supports text prompts in over 100 languages, helps creators make several changes to their content, creates endless variations seamlessly and bolsters image generation capabilities.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Adobe Inc. (ADBE) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
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.
|
We believe that the latest move will likely help Google to compete against its peer Microsoft MSFT, which offers a similar software called Copilot through its subsidiary, GitHub, its in-house AI system that operates across most Office apps. In addition, the company offers consulting services, which include advice and tools through which Google Cloud strives to aid clients in adopting generative AI techniques. Adobe Firefly supports text prompts in over 100 languages, helps creators make several changes to their content, creates endless variations seamlessly and bolsters image generation capabilities.
|
Our model projects Google Cloud’s 2023 revenues at $32.5 billion, indicating year-over-year growth of 23.9%. Amazon’s AWS recently announced the general availability of its fully managed service called Amazon Bedrock. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Adobe Inc. (ADBE) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
Alphabet’s GOOGL Google 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. Competitive Scenario Given the upbeat scenario in the generative AI space, not only Google but also Microsoft, Amazon AMZN and Adobe ADBE are flexing muscles to bolster generative AI capabilities. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Adobe Inc. (ADBE) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
Alphabet’s GOOGL Google 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. We note that the latest move has added strength to Google Cloud offerings as well as generative AI capabilities. Google Cloud, which has become an integral part of Alphabet, reported revenues of $8.41 billion in the third quarter of 2023.
|
c6c50d76-8047-47f2-9569-3fb9a7d505e6
|
711961.0
|
2023-12-13 00:00:00 UTC
|
Down 80% in 2023, Is Fisker Stock a Buy for 2024?
|
DCOMP
|
https://www.nasdaq.com/articles/down-80-in-2023-is-fisker-stock-a-buy-for-2024
|
nan
|
nan
|
Fool.com contributor Parkev Tatevosian reviews Fisker Automotive (NYSE: FSR) and its longer-term prospects to answer whether investors should buy the electric vehicle (EV) stock for 2024.
*Stock prices used were the afternoon prices of Dec. 13, 2023. The video was published on Dec. 15, 2023.
Should you invest $1,000 in Fisker right now?
Before you buy stock in Fisker, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Fisker 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 no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Fool.com contributor Parkev Tatevosian reviews Fisker Automotive (NYSE: FSR) and its longer-term prospects to answer whether investors should buy the electric vehicle (EV) stock for 2024. The 10 stocks that made the cut could produce monster returns in the coming years. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services.
|
Before you buy stock in Fisker, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Fisker wasn't one of them. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Parkev Tatevosian, CFA has no position in any of the stocks mentioned.
|
Before you buy stock in Fisker, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Fisker 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 no position in any of the stocks mentioned.
|
Before you buy stock in Fisker, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Fisker wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Parkev Tatevosian, CFA has no position in any of the stocks mentioned. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services.
|
76f1651a-beee-4f1e-9aa6-e580ebdd8aba
|
711962.0
|
2023-12-13 00:00:00 UTC
|
Noteworthy Friday Option Activity: DE, NKE, GNRC
|
DCOMP
|
https://www.nasdaq.com/articles/noteworthy-friday-option-activity%3A-de-nke-gnrc
|
nan
|
nan
|
Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Deere & Co. (Symbol: DE), where a total volume of 10,159 contracts has been traded thus far today, a contract volume which is representative of approximately 1.0 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 43.1% of DE's average daily trading volume over the past month, of 2.4 million shares. Especially high volume was seen for the $440 strike put option expiring January 17, 2025, with 388 contracts trading so far today, representing approximately 38,800 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $440 strike highlighted in orange:
Nike (Symbol: NKE) saw options trading volume of 30,147 contracts, representing approximately 3.0 million underlying shares or approximately 42.5% of NKE's average daily trading volume over the past month, of 7.1 million shares. Particularly high volume was seen for the $118 strike put option expiring December 22, 2023, with 1,483 contracts trading so far today, representing approximately 148,300 underlying shares of NKE. Below is a chart showing NKE's trailing twelve month trading history, with the $118 strike highlighted in orange:
And Generac Holdings Inc (Symbol: GNRC) saw options trading volume of 5,271 contracts, representing approximately 527,100 underlying shares or approximately 42.3% of GNRC's average daily trading volume over the past month, of 1.2 million shares. Particularly high volume was seen for the $125 strike call option expiring December 15, 2023, with 559 contracts trading so far today, representing approximately 55,900 underlying shares of GNRC. Below is a chart showing GNRC's trailing twelve month trading history, with the $125 strike highlighted in orange:
For the various different available expirations for DE options, NKE options, or GNRC options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
Also see:
Cheap Blue Chip Stocks
Top Ten Hedge Funds Holding MSF
VUZI Historical Stock Prices
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Especially high volume was seen for the $440 strike put option expiring January 17, 2025, with 388 contracts trading so far today, representing approximately 38,800 underlying shares of DE. Particularly high volume was seen for the $118 strike put option expiring December 22, 2023, with 1,483 contracts trading so far today, representing approximately 148,300 underlying shares of NKE. Particularly high volume was seen for the $125 strike call option expiring December 15, 2023, with 559 contracts trading so far today, representing approximately 55,900 underlying shares of GNRC.
|
Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Deere & Co. (Symbol: DE), where a total volume of 10,159 contracts has been traded thus far today, a contract volume which is representative of approximately 1.0 million underlying shares (given that every 1 contract represents 100 underlying shares). Below is a chart showing DE's trailing twelve month trading history, with the $440 strike highlighted in orange: Nike (Symbol: NKE) saw options trading volume of 30,147 contracts, representing approximately 3.0 million underlying shares or approximately 42.5% of NKE's average daily trading volume over the past month, of 7.1 million shares. Below is a chart showing NKE's trailing twelve month trading history, with the $118 strike highlighted in orange: And Generac Holdings Inc (Symbol: GNRC) saw options trading volume of 5,271 contracts, representing approximately 527,100 underlying shares or approximately 42.3% of GNRC's average daily trading volume over the past month, of 1.2 million shares.
|
Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Deere & Co. (Symbol: DE), where a total volume of 10,159 contracts has been traded thus far today, a contract volume which is representative of approximately 1.0 million underlying shares (given that every 1 contract represents 100 underlying shares). Below is a chart showing DE's trailing twelve month trading history, with the $440 strike highlighted in orange: Nike (Symbol: NKE) saw options trading volume of 30,147 contracts, representing approximately 3.0 million underlying shares or approximately 42.5% of NKE's average daily trading volume over the past month, of 7.1 million shares. Below is a chart showing NKE's trailing twelve month trading history, with the $118 strike highlighted in orange: And Generac Holdings Inc (Symbol: GNRC) saw options trading volume of 5,271 contracts, representing approximately 527,100 underlying shares or approximately 42.3% of GNRC's average daily trading volume over the past month, of 1.2 million shares.
|
Below is a chart showing DE's trailing twelve month trading history, with the $440 strike highlighted in orange: Nike (Symbol: NKE) saw options trading volume of 30,147 contracts, representing approximately 3.0 million underlying shares or approximately 42.5% of NKE's average daily trading volume over the past month, of 7.1 million shares. Particularly high volume was seen for the $118 strike put option expiring December 22, 2023, with 1,483 contracts trading so far today, representing approximately 148,300 underlying shares of NKE. Below is a chart showing NKE's trailing twelve month trading history, with the $118 strike highlighted in orange: And Generac Holdings Inc (Symbol: GNRC) saw options trading volume of 5,271 contracts, representing approximately 527,100 underlying shares or approximately 42.3% of GNRC's average daily trading volume over the past month, of 1.2 million shares.
|
539b2a25-f4bd-46f7-8b0c-0d94142017d8
|
711963.0
|
2023-12-13 00:00:00 UTC
|
Warren Buffett Just Sold Shares of This Stock-Split Stock. Should You?
|
DCOMP
|
https://www.nasdaq.com/articles/warren-buffett-just-sold-shares-of-this-stock-split-stock.-should-you
|
nan
|
nan
|
When Warren Buffett buys or sells stocks, investors watch carefully. And for one good reason: The billionaire investor's track record of success. As chairman of Berkshire Hathaway, Buffett has delivered a compounded annual gain of more than 19% over 57 years, surpassing that of the S&P 500 index. The champion investor and his team have done this by choosing top quality stocks trading for reasonable prices.
In the most recent quarter, Buffett sold a number of stocks, in some cases completely closing out positions and in other cases just reducing his position. And a company on this list was one that, after years of stock market gains, completed a stock split last year.
I'm talking about e-commerce and cloud computing giant Amazon (NASDAQ: AMZN). Buffett didn't eliminate it from the portfolio, but instead reduced his position by 5%. Should you follow in his footsteps?
Amazon's stock split
So, first, let's talk about the stock split. These operations, often launched following a period of gains, are done to bring down the price of each individual share -- allowing a broader range of investors to invest in the stock (without having to opt for fractional shares). A company does this by issuing more shares to current holders, so the total market value of the company remains the same.
Amazon completed such an operation after its share price soared past $3,000. Today, the stock trades at nearly $150, after a 77% gain this year. A stock split generally is a sign a company has been doing well and management expects it has what it takes to continue advancing.
Now, let's consider Amazon's recent story. The e-commerce powerhouse struggled last year amid higher interest rates -- which drove up costs and weighed on the customer's wallet. And Amazon faced some internal challenges too, like overcapacity across its newly expanded fulfillment network.
Customers flocked to Amazon earlier during the pandemic, but the economic environment that followed hurt demand. As a result, Amazon last year reported its first loss in nearly a decade.
But, the company quickly got to work, revamping its cost structure and shifting investments into its highest-growth areas, such as technology infrastructure. The efforts are bearing fruit. This year, Amazon returned to profitability, cash flow shifted to a significant inflow from an outflow, and the company grew several other key financial metrics quarter after quarter.
Recovering ROIC
In the most recent quarter, net sales climbed 13% to more than $143 billion, and net income reached almost $10 billion. Even Amazon's return on invested capital (ROIC) started to recover. And generally, it takes time for a company to see the returns on its investments, so this metric doesn't usually soar overnight.
AMZN Return on Invested Capital data by YCharts
Amazon's new cost structure is helping the company manage through difficult times, and in a better economic environment, this structure should maximize Amazon's growth potential.
Now let's get back to Buffett's move -- and whether you should follow by either reducing your Amazon position or avoiding the shares. We don't know for sure why Buffett cut his position in Amazon, but it is important to note that he only reduced the holding by a small amount -- and he still owns 10 million shares.
This suggests the move may have been about locking in some profits and eventually reallocating the proceeds into another promising stock. And this doesn't mean Buffett or his team have lost faith in Amazon.
Should you follow Buffett?
So what should you do? If you own a considerable stake in Amazon and aim to free up some cash to invest in other stocks, you could consider selling a few shares. The stock has climbed quite a bit over time, so, like Warren Buffett, you might lock in some gains.
But in most cases, I would argue for holding on to Amazon stock. Considering the company's leadership in the two high-growth markets of e-commerce and cloud computing and its improved cost structure, Amazon has what it takes to continue growing earnings over time -- and that means the stock has plenty of fuel to power it higher over time, too.
Should you invest $1,000 in Amazon right now?
Before you buy stock in Amazon, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Amazon wasn't one of them. 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. Adria Cimino has positions in Amazon. The Motley Fool has positions in and recommends Amazon and Berkshire Hathaway. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
The e-commerce powerhouse struggled last year amid higher interest rates -- which drove up costs and weighed on the customer's wallet. But, the company quickly got to work, revamping its cost structure and shifting investments into its highest-growth areas, such as technology infrastructure. We don't know for sure why Buffett cut his position in Amazon, but it is important to note that he only reduced the holding by a small amount -- and he still owns 10 million shares.
|
When Warren Buffett buys or sells stocks, investors watch carefully. And a company on this list was one that, after years of stock market gains, completed a stock split last year. Before you buy stock in Amazon, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Amazon wasn't one of them.
|
Amazon's stock split So, first, let's talk about the stock split. Before you buy stock in Amazon, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Amazon wasn't one of them. 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.
|
In the most recent quarter, Buffett sold a number of stocks, in some cases completely closing out positions and in other cases just reducing his position. And a company on this list was one that, after years of stock market gains, completed a stock split last year. Considering the company's leadership in the two high-growth markets of e-commerce and cloud computing and its improved cost structure, Amazon has what it takes to continue growing earnings over time -- and that means the stock has plenty of fuel to power it higher over time, too.
|
f8303d87-d8a5-4d74-b546-171da69263ed
|
711964.0
|
2023-12-13 00:00:00 UTC
|
The 3 Best Christmas Stocks to Buy
|
DCOMP
|
https://www.nasdaq.com/articles/the-3-best-christmas-stocks-to-buy
|
nan
|
nan
|
With the weather cooling down for the winter holiday season, now may be the time to tune your radio to the three best Christmas stocks to buy. Fundamentally, as people slow down to reflect on what’s important in life – family, friends, and a general belief in the greater good – they may be more inclined to give their equity holdings a nice lift.
Known as the Santa Claus rally, the seasonal trend – with possible explanations stemming from broader feelings of optimism to more specific frameworks such as end-of-year tax considerations – can have a discernibly positive influence on the equities market. Therefore, investors may want to position themselves now into the so-called best Christmas stocks to buy.
Moreover, last year’s nod from Jolly Old Saint Nicholas left some investors with coal in their stockings. However, the mood this year seemingly represents a paradigm shift. Given the bad taste that some felt one year ago, bitter market participants may be looking to even the score. Cynically, that could turn out to be a brilliant catalyst for the three best Christmas stocks to buy mentioned below.
Lowe’s (NYSE:LOW)
Admittedly, home improvement retailer Lowe’s doesn’t exactly light up the holiday mood. When you think about the popular brand, many times, it’s because something unpleasant happened: your picket fence got blown over by a strong gust of wind or an unexpected failure caused your toilet to overflow, among other terrible things. Of course, we all want Santa to show up, but Murphy’s Law is never too far away.
Yet, the unpredictability of Mother Nature, especially with recent storms in the U.S. Eastern region, underscores a universal truth: weather conditions don’t care about our social gatherings and festivities. While it’s never fun to deal with these challenges, Lowe’s offers a reliable platform to acquire necessary tools and materials.
Further, inclement weather conditions and national emergencies have been known to bolster the home improvement retail industry. This is not just empty speculation.
On the financial front, investors should be encouraged by the consistency and predictability of the underlying business. For example, Lowe’s gross margin comes in at 33.7% as of its most recent quarter. That’s roughly in line with historical norms, both pre- and post-pandemic. And if you need a little more coaxing, Lowe’s offers a dividend yield of 2.06%.
What is the Price Target for Lowe’s Stock?
Turning to Wall Street, LOW stock has a Moderate Buy consensus rating based on 14 Buys, 10 Holds, and zero Sell ratings. The average LOW stock price target is $225.25, implying that shares are trading at about fair value.
Mondelez International (NASDAQ:MDLZ)
While Mondelez International doesn’t quite excite the senses for investors, as a play on the best Christmas stocks to buy, the confectionery specialist – which owns compelling brands such as Oreo – delivers the goods. On a fundamental level, the company stands poised to benefit from the trade-down effect or consumers seeking cheaper alternatives to previously purchased goods and services.
As you know, while the Federal Reserve has aggressively raised interest rates throughout 2022 and into the current year, inflation remains stubbornly elevated compared to pre-pandemic norms. Further, several companies across different industries are feeling the pinch of consumers tightening their belts, leading to mass layoffs. That, unfortunately, creates a self-fulfilling cycle of spending cuts for people and enterprises.
Under this scenario, getting your culinary delights from the grocery aisle – as opposed to an expensive retail food establishment – may be more palatable. Even better, Mondelez appears to be well-suited for this fading environment, making it one of the best Christmas stocks to buy.
Specifically, its gross margin has been rising (to 38.7% as of the most recent quarter). Therefore, the brand may be enjoying pricing power, meaning that consumers are flocking to Mondelez despite the broader impact of inflation. Also, MDLZ carries a dividend yield of 2.2%, providing a confidence boost.
What is the Price Target for Mondelez Stock?
Turning to Wall Street, MDLZ stock has a Strong Buy consensus rating based on 19 Buys, one Hold, and zero Sell ratings. The average MDLZ stock price target is $79.50, implying 12.4% upside potential.
PayPal Holdings (NASDAQ:PYPL)
With the top two ideas for the best Christmas stocks to buy, they present relatively sensible market acquisitions. However, if you want to dial up the risk-to-reward profile, you may consider digital payments specialist PayPal Holdings. A company that has been doing financial technology (fintech) before that term became popularized, PayPal naturally commands a strong market presence when it comes to payment alternatives.
However, PayPal was slow to respond to the buy now, pay later (BNPL) phenomenon. It was only in recent years that the company released its BNPL offering called Pay in 4. Conspicuously, though, such solutions emerged early last decade. With tech measured on an accelerated scale, to lose years to the competition represents a massive no-no.
That said, business leaders can’t afford to cry over spilled milk. Having learned from its mistakes, PayPal arguably stands in a position to leverage its global footprint to shake up the BNPL market. Even better, this year’s strong Black Friday sales, in large part, stemmed from BNPL use, according to The Wall Street Journal.
PayPal has an opportunity to shine. For investors, what makes PYPL enticing is its valuation. Right now, PYPL trades at only about 2.4x trailing-year sales. However, the software application industry runs an average revenue multiple of 4.07x.
What is the Price Target for PayPal Stock?
Turning to Wall Street, PYPL stock has a Moderate Buy consensus rating based on 20 Buys, 14 Holds, and zero Sell ratings. The average PYPL stock price target is $74.32, implying 21.5% upside potential.
The Takeaway: Load Up on the Best Christmas Stocks to Buy
While last year’s Santa Claus rally may have been a dud, renewed sentiment, along with the general rise of the festive mood, could translate to broader gains. Still, these specific ideas may benefit the most from the seasonal trend.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Known as the Santa Claus rally, the seasonal trend – with possible explanations stemming from broader feelings of optimism to more specific frameworks such as end-of-year tax considerations – can have a discernibly positive influence on the equities market. When you think about the popular brand, many times, it’s because something unpleasant happened: your picket fence got blown over by a strong gust of wind or an unexpected failure caused your toilet to overflow, among other terrible things. The Takeaway: Load Up on the Best Christmas Stocks to Buy While last year’s Santa Claus rally may have been a dud, renewed sentiment, along with the general rise of the festive mood, could translate to broader gains.
|
Turning to Wall Street, LOW stock has a Moderate Buy consensus rating based on 14 Buys, 10 Holds, and zero Sell ratings. Turning to Wall Street, MDLZ stock has a Strong Buy consensus rating based on 19 Buys, one Hold, and zero Sell ratings. Turning to Wall Street, PYPL stock has a Moderate Buy consensus rating based on 20 Buys, 14 Holds, and zero Sell ratings.
|
Turning to Wall Street, LOW stock has a Moderate Buy consensus rating based on 14 Buys, 10 Holds, and zero Sell ratings. Turning to Wall Street, MDLZ stock has a Strong Buy consensus rating based on 19 Buys, one Hold, and zero Sell ratings. Turning to Wall Street, PYPL stock has a Moderate Buy consensus rating based on 20 Buys, 14 Holds, and zero Sell ratings.
|
Therefore, investors may want to position themselves now into the so-called best Christmas stocks to buy. PayPal Holdings (NASDAQ:PYPL) With the top two ideas for the best Christmas stocks to buy, they present relatively sensible market acquisitions. What is the Price Target for PayPal Stock?
|
7f9733d0-44c4-452f-acb0-b100bc7250d4
|
711965.0
|
2023-12-13 00:00:00 UTC
|
Lufthansa to resume flights to Tel Aviv, US airlines remain on hold
|
DCOMP
|
https://www.nasdaq.com/articles/lufthansa-to-resume-flights-to-tel-aviv-us-airlines-remain-on-hold
|
nan
|
nan
|
Adds two U.S. carriers suspending flights through March 29, British Airways owner update
Dec 15 (Reuters) - Lufthansa LHAG.DE will resume flights to Tel Aviv starting Jan. 8, the airlinesaidon Friday, making it the one of the first major international carriers to announce a resumption in service cancelled in Octoberfollowing Hamas attacks.
While Israel did not close its airspace to civil flights after Hamas' gunmen stormed Israeli towns on Oct. 7, international airlines stopped flying to Ben Gurion Airport in Tel Aviv and to Lebanon.
Lufthansa said ithad resumed flights to Beirut on Friday along with Swiss Airlines and Eurowings.
Flights to Israel will be available for booking starting on Monday, Lufthansa said.
American Airlines AAL.O and Delta Air Lines DAL.N both said on Friday that they have cancelled flights to and from Tel Aviv through March 29. Delta said it continues "to evaluate conditions related to this service in particular".
United Airlines UAL.O said Friday its Tel Aviv flights will remain suspended until conditions permit.
British Airways has suspended flights to and from Tel Aviv through Jan. 10, Vueling until Jan 13 and Iberia Express until Feb 29, owner IAG ICAG.L said Friday.
Air France-KLM AIRF.PA, Ryanair RYA.I and EasyJet EZJ.L did not immediately respond to a Reuters request for comment on whether they would also resume flying to Israel.
(Reporting by Paolo Laudani, Joanna Plucinska and David Shepardson in Washington; Editing by Sarah Marsh, Jan Harvey, Peter Graff and Cynthia Osterman)
((Paolo.Laudani@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Adds two U.S. carriers suspending flights through March 29, British Airways owner update Dec 15 (Reuters) - Lufthansa LHAG.DE will resume flights to Tel Aviv starting Jan. 8, the airlinesaidon Friday, making it the one of the first major international carriers to announce a resumption in service cancelled in Octoberfollowing Hamas attacks. While Israel did not close its airspace to civil flights after Hamas' gunmen stormed Israeli towns on Oct. 7, international airlines stopped flying to Ben Gurion Airport in Tel Aviv and to Lebanon. British Airways has suspended flights to and from Tel Aviv through Jan. 10, Vueling until Jan 13 and Iberia Express until Feb 29, owner IAG ICAG.L said Friday.
|
Adds two U.S. carriers suspending flights through March 29, British Airways owner update Dec 15 (Reuters) - Lufthansa LHAG.DE will resume flights to Tel Aviv starting Jan. 8, the airlinesaidon Friday, making it the one of the first major international carriers to announce a resumption in service cancelled in Octoberfollowing Hamas attacks. United Airlines UAL.O said Friday its Tel Aviv flights will remain suspended until conditions permit. British Airways has suspended flights to and from Tel Aviv through Jan. 10, Vueling until Jan 13 and Iberia Express until Feb 29, owner IAG ICAG.L said Friday.
|
Adds two U.S. carriers suspending flights through March 29, British Airways owner update Dec 15 (Reuters) - Lufthansa LHAG.DE will resume flights to Tel Aviv starting Jan. 8, the airlinesaidon Friday, making it the one of the first major international carriers to announce a resumption in service cancelled in Octoberfollowing Hamas attacks. While Israel did not close its airspace to civil flights after Hamas' gunmen stormed Israeli towns on Oct. 7, international airlines stopped flying to Ben Gurion Airport in Tel Aviv and to Lebanon. American Airlines AAL.O and Delta Air Lines DAL.N both said on Friday that they have cancelled flights to and from Tel Aviv through March 29.
|
Adds two U.S. carriers suspending flights through March 29, British Airways owner update Dec 15 (Reuters) - Lufthansa LHAG.DE will resume flights to Tel Aviv starting Jan. 8, the airlinesaidon Friday, making it the one of the first major international carriers to announce a resumption in service cancelled in Octoberfollowing Hamas attacks. American Airlines AAL.O and Delta Air Lines DAL.N both said on Friday that they have cancelled flights to and from Tel Aviv through March 29. United Airlines UAL.O said Friday its Tel Aviv flights will remain suspended until conditions permit.
|
df70974e-c0aa-4ee9-a22c-4b3b3009bdaa
|
711966.0
|
2023-12-13 00:00:00 UTC
|
Dividends Aid Trinity (TRN) Amid Labor & Supply-Chain Woes
|
DCOMP
|
https://www.nasdaq.com/articles/dividends-aid-trinity-trn-amid-labor-supply-chain-woes
|
nan
|
nan
|
Trinity Industries, Inc. (TRN) is benefiting from shareholder-friendly initiatives, higher volumes of external deliveries and improved pricing and contributions from acquisitions. However, the company continues to grapple with supply-chain disruptions and labor shortages.
Let’s delve deeper to see why investors should retain the stock.
Trinity has been consistently making efforts to reward its shareholders through dividends and share buybacks, which are encouraging. On Dec 6, 2023, TRN’s board of directors announced a dividend hike of almost 8%, thereby raising its quarterly cash dividend from 26 cents per share to 28 cents. The raised dividend, reflecting Trinity’s 239th consecutively paid dividend, will be paid out on Jan 31, 2024, to all its shareholders of record as of Jan 12, 2024. The move reflects TRN’s intention to utilize free cash to enhance its shareholders’ returns.
During the first nine months of 2023, TRN rewarded its shareholders with $64.7 million in dividend payments (did not repurchase any shares during the said time frame). The company also rewarded its shareholders with $76.9 million in dividends and $51.8 million in share repurchases during 2022. During 2021, Trinity also rewarded its shareholders with $88.5 million in dividends and $833.4 million in share repurchases. Such initiatives boost investor confidence and positively impact the company’s bottom line.
Notably, shares of TRN have gained 19.7% over the past six months outperforming the industry’s increase of 12.5%.
Image Source: Zacks Investment Research
Higher volumes of external deliveries and improved pricing are driving revenues at the Rail Products Group. Segmental revenues increased 14.2% year over year in the third quarter owing to higher delivery volumes and a favorable mix of railcars sold. The surge aligned with our estimate for the reported quarter.
On the flip side,Trinity’s operations are being hurt by supply-chain disruptions and labor shortages. Notably, labor and supply-chain challenges faced by Trinity's Rail Products Group have been impacting deliveries and margins of the segment lately. Due to the headwinds, management now expects 2023 earnings per share in the range of $1.2-$1.35 (prior view: $1.35-$1.45 per share).
Zacks Rank and Stocks to Consider
Currently, Trinity carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the Zacks Transportationsector are Westinghouse Air Brake Technologies Corporation, operating as Wabtec Corporation WAB and SkyWest, Inc. SKYW. Each stock presently carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Wabtec has an expected earnings growth rate of 22.02% for the current year. WAB delivered a trailing four-quarter earnings surprise of 7.11%, on average.
The Zacks Consensus Estimate for WAB’s current-year earnings has improved 5.1% over the past 90 days. Shares of WAB have gained 21.8% year to date.
SkyWest's fleet-modernization efforts are commendable. The Zacks Consensus Estimate for SKYW’s current-year earnings has improved 31.5% over the past 90 days. Shares of SKYW have surged 202.1% year to date.
SKYW delivered a trailing four-quarter earnings surprise of 32.57%, on average.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Trinity Industries, Inc. (TRN) : Free Stock Analysis Report
SkyWest, Inc. (SKYW) : Free Stock Analysis Report
Westinghouse Air Brake Technologies Corporation (WAB) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks 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.
|
Trinity Industries, Inc. (TRN) is benefiting from shareholder-friendly initiatives, higher volumes of external deliveries and improved pricing and contributions from acquisitions. Image Source: Zacks Investment Research Higher volumes of external deliveries and improved pricing are driving revenues at the Rail Products Group. Notably, labor and supply-chain challenges faced by Trinity's Rail Products Group have been impacting deliveries and margins of the segment lately.
|
Image Source: Zacks Investment Research Higher volumes of external deliveries and improved pricing are driving revenues at the Rail Products Group. Some better-ranked stocks from the Zacks Transportationsector are Westinghouse Air Brake Technologies Corporation, operating as Wabtec Corporation WAB and SkyWest, Inc. SKYW. Click to get this free report Trinity Industries, Inc. (TRN) : Free Stock Analysis Report SkyWest, Inc. (SKYW) : Free Stock Analysis Report Westinghouse Air Brake Technologies Corporation (WAB) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
Zacks Rank and Stocks to Consider Currently, Trinity carries a Zacks Rank #3 (Hold). This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year. Click to get this free report Trinity Industries, Inc. (TRN) : Free Stock Analysis Report SkyWest, Inc. (SKYW) : Free Stock Analysis Report Westinghouse Air Brake Technologies Corporation (WAB) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
The Zacks Consensus Estimate for WAB’s current-year earnings has improved 5.1% over the past 90 days. The Zacks Consensus Estimate for SKYW’s current-year earnings has improved 31.5% over the past 90 days. Click to get this free report Trinity Industries, Inc. (TRN) : Free Stock Analysis Report SkyWest, Inc. (SKYW) : Free Stock Analysis Report Westinghouse Air Brake Technologies Corporation (WAB) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
3a9eee93-54bb-40ea-927e-36ac86e5b043
|
711967.0
|
2023-12-13 00:00:00 UTC
|
Want to Gain $1,000 of Annual Dividend Income in 2024? Invest $11,930 in These Unstoppable, High-Yield Dividend Stocks
|
DCOMP
|
https://www.nasdaq.com/articles/want-to-gain-%241000-of-annual-dividend-income-in-2024-invest-%2411930-in-these-unstoppable
|
nan
|
nan
|
If you're worried about having enough passive income after you retire, there are plenty of options. Purchasing real estate to rent out is a popular option, but those rental properties will generate losses if you can't maintain them and find tenants who can pay their bills.
If you're interested in truly passive income, consider these dividend-paying stocks. They offer such high yields that just $11,930 spread among them is all it takes to set yourself up with $1,000 of annual dividend income in 2024.
Image source: Getty Images.
Buying these stocks looks like a great deal that could keep getting better. These businesses have a history of increasing their payouts, so you're likely to receive significantly more than $1,000 annually once you're ready to retire.
AT&T
Shares of AT&T (NYSE: T) offer investors a big 6.7% dividend yield at recent prices. At this level, $5,004 is enough to secure a little over $333 in annual dividend payments from the telecom giant.
Landline subscriptions are in steep decline, but America's need for telecommunications services has risen steadily. Data-hungry artificial intelligence (AI) applications and 5G-enabled mobile devices are driving growth for AT&T at a steady pace.
In the third quarter, mobility-service revenue rose 3.7% year over year, and operating income from the segment was better than it's ever been. The real growth driver for AT&T these days is consumer broadband. Revenue from this segment rose 9.8% year over year in Q3 driven by 296,000 new AT&T Fiber subscriptions.
Q3 2023 was the 15th in a row with more than 200,000 new AT&T Fiber subscribers, and its consumer-broadband sales will likely rise even further in 2024. AT&T Fiber is currently able to serve around 24 million consumer and business locations, and it's on pace to reach more than 30 million by the end of 2025. The company also launched a fixed wireless residential service that's already available in about 30 locations.
AT&T generated a whopping $19.8 billion in free cash flow over the past year and needed just 41% of this sum to meet its dividend commitment. That leaves plenty of room to raise the payout in line with earnings growth in the years ahead.
PennantPark Floating Rate Capital
Ever since the Great Recession, large American banks subject to stricter regulations have been hesitant to lend to middle-market businesses. As a result, companies that record between $10 million and $1 billion in annual revenue are generally starved for capital and willing to pay business development companies (BDC) like PennantPark Floating Rate Capital (NYSE: PFLT) above-average interest rates.
As its name implies, PennantPark Floating Rate Capital is a lender that almost always lends at variable interest rates. This can make it hard for borrowers to repay debts if rates rise too fast, but with careful underwriting, floating-rate debt can also lead to very reliable cash flows.
At recent prices, PennantPark Floating Rate Capital offers investors a huge 10.3% dividend yield, and it distributes payments every month. At recent prices, $3,250 is enough to set yourself up with $333 in annual dividend payments from this stock in 2024.
PennantPark Floating Rate Capital raised its dividend payout by 7.9% in 2023, and further raises could be in the works. At the end of September, just 3 borrowers in this BDC's portfolio of 131 companies were on non-accrual status. With the variable interest rates they pay likely to fall significantly in 2024, cash flows ought to be relatively predictable for at least the next several years.
Altria Group
Shares of Altria Group (NYSE: MO) offer a juicy 9.2% dividend yield, so all it takes to secure $333 in annual dividend income from the stock at recent prices is about $3,680. Combustible cigarette sales have been in decline for decades, but this company's ability to raise the price of the leading Marlboro brand in the U.S. should let it continue a very long track record of consecutive annual payout increases.
In Q3, Altria estimated an 8% year-over-year decline in domestic cigarette volume. Thanks to rising sales of non-combustible products, price increases on Marlboros, and share repurchases, adjusted earnings per share during the first nine months of 2023 rose 3.3% year over year.
This August, Altria Group raised its dividend payout for the 58th time in 54 years. The company generated $8.5 billion in free cash flow over the past year but needed just $6.7 billion to meet its dividend commitment.
With extra cash flows to pay down debts and acquire new sources of growth, such as NJOY, the only e-vapor manufacturer with market authorizations from the U.S. Food and Drug Administration (FDA) for a pod-based, e-vapor product, investors can reasonably expect this stock to keep up its 54-year streak for at least another decade.
Should you invest $1,000 in AT&T right now?
Before you buy stock in AT&T, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and AT&T wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
See the 10 stocks
*Stock Advisor returns as of December 11, 2023
Cory Renauer has no position in any of the stocks mentioned. The Motley Fool has 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.
|
Purchasing real estate to rent out is a popular option, but those rental properties will generate losses if you can't maintain them and find tenants who can pay their bills. PennantPark Floating Rate Capital Ever since the Great Recession, large American banks subject to stricter regulations have been hesitant to lend to middle-market businesses. Combustible cigarette sales have been in decline for decades, but this company's ability to raise the price of the leading Marlboro brand in the U.S. should let it continue a very long track record of consecutive annual payout increases.
|
At recent prices, PennantPark Floating Rate Capital offers investors a huge 10.3% dividend yield, and it distributes payments every month. Altria Group Shares of Altria Group (NYSE: MO) offer a juicy 9.2% dividend yield, so all it takes to secure $333 in annual dividend income from the stock at recent prices is about $3,680. The company generated $8.5 billion in free cash flow over the past year but needed just $6.7 billion to meet its dividend commitment.
|
As a result, companies that record between $10 million and $1 billion in annual revenue are generally starved for capital and willing to pay business development companies (BDC) like PennantPark Floating Rate Capital (NYSE: PFLT) above-average interest rates. Altria Group Shares of Altria Group (NYSE: MO) offer a juicy 9.2% dividend yield, so all it takes to secure $333 in annual dividend income from the stock at recent prices is about $3,680. Before you buy stock in AT&T, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and AT&T wasn't one of them.
|
As a result, companies that record between $10 million and $1 billion in annual revenue are generally starved for capital and willing to pay business development companies (BDC) like PennantPark Floating Rate Capital (NYSE: PFLT) above-average interest rates. At recent prices, PennantPark Floating Rate Capital offers investors a huge 10.3% dividend yield, and it distributes payments every month. With the variable interest rates they pay likely to fall significantly in 2024, cash flows ought to be relatively predictable for at least the next several years.
|
d306e714-3024-4a9f-a17f-26b65d3ff66a
|
711968.0
|
2023-12-13 00:00:00 UTC
|
2 High-Yield Dividend Stocks to Buy Before 2024
|
DCOMP
|
https://www.nasdaq.com/articles/2-high-yield-dividend-stocks-to-buy-before-2024
|
nan
|
nan
|
The Dow Jones Industrial Average just reached a new all-time high, but there are still some stocks that look extremely attractive as we head into 2024. That's especially true when it comes to dividend stocks, and in this video clip, Fool.com contributors Matt Frankel and Tyler Crowe discuss two of their best dividend stock ideas right now.
*Stock prices used were the afternoon prices of Dec. 14, 2023. The video was published on Dec. 15, 2023.
Should you invest $1,000 in Ally Financial right now?
Before you buy stock in Ally Financial, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Ally Financial 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
Ally is an advertising partner of The Ascent, a Motley Fool company. Matthew Frankel, CFP® has positions in Ally Financial. Tyler Crowe has positions in Equinor Asa. The Motley Fool recommends Equinor Asa. The Motley Fool has a disclosure policy. Matthew Frankel is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
The Dow Jones Industrial Average just reached a new all-time high, but there are still some stocks that look extremely attractive as we head into 2024. The 10 stocks that made the cut could produce monster returns in the coming years. If you choose to subscribe through their link they will earn some extra money that supports their channel.
|
Before you buy stock in Ally Financial, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Ally Financial wasn't one of them. Matthew Frankel, CFP® has positions in Ally Financial. Tyler Crowe has positions in Equinor Asa.
|
That's especially true when it comes to dividend stocks, and in this video clip, Fool.com contributors Matt Frankel and Tyler Crowe discuss two of their best dividend stock ideas right now. Before you buy stock in Ally Financial, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Ally Financial wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Ally is an advertising partner of The Ascent, a Motley Fool company.
|
Before you buy stock in Ally Financial, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Ally Financial wasn't one of them. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*. Their opinions remain their own and are unaffected by The Motley Fool.
|
f14bc758-9ca4-42b2-a766-69d6ae15706e
|
711969.0
|
2023-12-13 00:00:00 UTC
|
Start 2024 Off Right With These 3 Energy Stocks
|
DCOMP
|
https://www.nasdaq.com/articles/start-2024-off-right-with-these-3-energy-stocks
|
nan
|
nan
|
The energy sector has had a down year in 2023. Rising interest rates and falling commodity prices weighed on the industry. While the S&P 500 has rallied more than 20% this year, energy stocks in that index are down by more than 3% on average.
However, while last year was a down year for the energy sector, 2024 could be a bounce-back year. Because of that, energy stocks could deliver strong total returns. NextEra Energy (NYSE: NEE), Brookfield Renewable (NYSE: BEP)(NYSE: BEPC), and Kinder Morgan (NYSE: KMI) stand out to a few Fool.com contributors as the best ones to buy heading into 2024. Here's why they think these energy stocks could put a charge in your portfolio next year.
NextEra Energy is targeting 10% dividend growth
Reuben Gregg Brewer (NextEra Energy): Looking at the energy sector from a broad perspective it includes boring utility stocks. But there's one utility stock that has proven it is anything but boring, at least on the dividend front, and that's NextEra Energy. This industry giant, with a market cap of $122 billion, has increased its dividend annually for 29 years and at a compound annual rate of 10% over the past decade. Those would be impressive stats for any company, let alone a utility.
The key to NextEra's success is that it is really two companies in one. The foundation is NextEra's regulated utility operations, which largely consists of Florida Power & Light. This is a slow and steady performer benefiting from operating in a state that's seen steady population growth. Regulated assets have monopolies in the areas they serve but must get the rates they charge and their investment plans approved by the government. While this generally leads to slow growth, that growth is fairly dependable regardless of the market environment.
On top of this slow and steady business, NextEra has built one of the world's largest clean energy companies. This business is expected to keep growing for years as the world shifts toward renewable power. To provide some scale to the opportunity, NextEra's renewable power business has 34 gigawatts of capacity today with plans to increase that by as much as 41 gigawatts by 2026.
At this point, management expects to increase the dividend by 10% at least until 2024 with earnings growth of between 6% and 8% a year expected through at least 2026. Meanwhile, the dividend yield is historically high today at 3.1%, suggesting the stock is on sale.
The power to continue growing in 2024
Neha Chamaria (Brookfield Renewable): Despite regaining some ground in recent weeks, shares of Brookfield Renewable have hugely underperformed the market in 2023. Rising interest rates are largely to blame as they can hinder plans for companies like Brookfield Renewable that bank on cheap debt to fund growth. The market's fears were exacerbated when Brookfield's peer NextEra Energy Partners slashed its growth targets in September, citing funding challenges in a high interest rate environment.
Yet, Brookfield Renewable hasn't stopped growing, and the drop in the renewable energy stock's price makes it an enticing energy stock now. In the nine months that ended Sept. 30, Brookfield's funds from operations (FFO) grew 7.7% year over year. Management didn't mince words, stating that it wasn't pleased to see its share price fall. Management's outlook for the business, however, is better than ever, and it remains focused on long-term growth.
It also sees plenty of opportunities to deploy capital at or above its target returns as demand for clean energy continues to rise even as several market participants find it harder to access capital amid high interest rates. In other words, Brookfield Renewable may not cut back on its growth spending in the near term, contrary to what the market fears.
Driven primarily by its development pipeline and acquisitions, Brookfield Renewable grew its FFO per unit by 10% annually over the past decade and is targeting a similar 10% or more annual FFO growth rate through 2028. It also expects to increase its dividend by 5% to 9% annually, hoping to deliver 12% to 15% total returns to shareholders. With Brookfield Renewable shares yielding 5%, investors who buy the stock now can expect strong returns in the long term.
There's lots of optionality heading into 2024
Matt DiLallo (Kinder Morgan): Kinder Morgan's energy infrastructure business generates very stable cash flow. The company gets two-thirds of its earnings from take-or-pay contracts and commodity-priced hedges, which lock in its cash flow. Meanwhile, another 26% is fee-based earnings with no commodity price exposure. That gives Kinder Morgan lots of visibility into its cash flow.
The pipeline giant expects to produce about $5 billion, or $2.21 per share, of distributable cash flow next year. That's 5% above what it anticipates producing this year. That predictability gave Kinder Morgan the confidence to increase its already high-yielding dividend (recently 6.4%) by another 1.8% for next year, extending its streak to seven straight years of dividend growth.
While its contracts lock in most of its cash flow, the company has lots of upside potential. Its current financial expectations don't include any impact from STX Midstream. The company recently agreed to buy the natural gas pipeline operation from NextEra Energy Partners in a $1.8 billion deal. It anticipates that the transaction will be accretive to its cash flow in 2024 and beyond.
Meanwhile, it has a lot of financial flexibility even after completing that sizable transaction, which should close in the first quarter of next year. Kinder Morgan is currently on track to end 2024 with a 3.8 times leverage ratio, well below its 4.5 times target. While the company will use some of its financial capacity to close the STX Midstream deal, the transaction will only increase its leverage ratio by 0.1 times next year while being leverage-neutral over the long term.
That gives Kinder Morgan lots of financial flexibility heading into 2024. It can opportunistically deploy that capacity on share repurchases, value-enhancing acquisitions like STX Midstream, and sanctioning additional high-return organic expansion projects. Future capital deployment could further boost its cash flow per share, giving Kinder Morgan more fuel to grow its dividend.
Should you invest $1,000 in NextEra Energy right now?
Before you buy stock in NextEra Energy, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and NextEra Energy wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
See the 10 stocks
*Stock Advisor returns as of December 11, 2023
Matthew DiLallo has positions in Brookfield Renewable, Brookfield Renewable Partners, Kinder Morgan, NextEra Energy, and NextEra Energy Partners. Neha Chamaria has no position in any of the stocks mentioned. Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Brookfield Renewable, Kinder Morgan, and NextEra Energy. The Motley Fool recommends Brookfield Renewable Partners. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
The market's fears were exacerbated when Brookfield's peer NextEra Energy Partners slashed its growth targets in September, citing funding challenges in a high interest rate environment. While the company will use some of its financial capacity to close the STX Midstream deal, the transaction will only increase its leverage ratio by 0.1 times next year while being leverage-neutral over the long term. It can opportunistically deploy that capacity on share repurchases, value-enhancing acquisitions like STX Midstream, and sanctioning additional high-return organic expansion projects.
|
NextEra Energy is targeting 10% dividend growth Reuben Gregg Brewer (NextEra Energy): Looking at the energy sector from a broad perspective it includes boring utility stocks. With Brookfield Renewable shares yielding 5%, investors who buy the stock now can expect strong returns in the long term. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Matthew DiLallo has positions in Brookfield Renewable, Brookfield Renewable Partners, Kinder Morgan, NextEra Energy, and NextEra Energy Partners.
|
NextEra Energy is targeting 10% dividend growth Reuben Gregg Brewer (NextEra Energy): Looking at the energy sector from a broad perspective it includes boring utility stocks. Before you buy stock in NextEra Energy, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and NextEra Energy wasn’t one of them. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Matthew DiLallo has positions in Brookfield Renewable, Brookfield Renewable Partners, Kinder Morgan, NextEra Energy, and NextEra Energy Partners.
|
Before you buy stock in NextEra Energy, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and NextEra Energy wasn’t one of them. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Matthew DiLallo has positions in Brookfield Renewable, Brookfield Renewable Partners, Kinder Morgan, NextEra Energy, and NextEra Energy Partners. The Motley Fool has positions in and recommends Brookfield Renewable, Kinder Morgan, and NextEra Energy.
|
96be7a96-c0da-44b6-8914-b5dbffb68a33
|
711970.0
|
2023-12-13 00:00:00 UTC
|
2 of This Year's Top Performers You'll Regret Not Buying Before Year-End
|
DCOMP
|
https://www.nasdaq.com/articles/2-of-this-years-top-performers-youll-regret-not-buying-before-year-end
|
nan
|
nan
|
Some investors love picking up shares of the latest top performers, with the idea of getting in on a stock that already has a lot of momentum. Other investors do just the opposite, fleeing these shares, thinking that they've climbed so much that they may be ready for a decline. After all, a stock generally doesn't advance nonstop forever without marking a pause.
Both moves could work out nicely or badly, and that's why it's important to consider your potential buys on a stock-by-stock basis. Let's zoom in on two of 2023's top performers, technology and consumer goods giants Amazon (NASDAQ: AMZN) and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL). In the case of both of these stocks, you'll probably regret it if you don't hop on the bandwagon and buy these shares before year-end. Let's find out why.
Image source: Getty Images.
Amazon
Amazon is a leader in two fast-growing markets: E-commerce and cloud computing. The company has a long track record of growth, but it did fall into some tough times over the past couple of years as the economic environment weighed on its costs and on its customers' buying power.
There is something positive about this difficult turn of events, though. It gave Amazon the push to improve its cost structure -- and it showed us as investors that the company is capable of taking the right actions to address problems and reignite growth. The company's efforts -- from cutting jobs to investing in only the highest growth areas and revamping its U.S. fulfillment network -- have been bearing fruit.
After reporting its first annual loss in nearly a decade last year, Amazon's earnings this year have strengthened from quarter to quarter. In the most recent period, the company reported gains across financial metrics, with net sales and net income climbing. And Amazon generated an inflow of cash -- in the billions -- versus a billion-dollar outflow in the year-earlier period.
The stock has advanced this year, and for good reason, considering all that I've just mentioned. But why should you buy the stock today? Because Amazon has plenty of gas in the tank to power more gains over time.
Yes, at a certain point, the stock likely will dip, but these points in time are impossible to predict. So, it's best to get in when a stock looks reasonably priced -- like Amazon today, trading at 55x times forward earnings estimates, reasonable for a growth stock with a fantastic track record -- and sit back to enjoy the long-term story.
Alphabet
You probably know Alphabet best through something you may use every day: Google search. Alphabet's Google is the world's top search engine, steadily holding on to 91% of the market. This could last for a couple of reasons.
First, Alphabet's moat, or competitive advantage, is its brand strength -- people routinely use Google to find information they need on the internet, so they're unlikely to switch out of that routine. Second, Alphabet's investments in artificial intelligence (AI) to continually improve its search platform should keep these already loyal users satisfied.
Why is it so important for Alphabet to stay on top in the search market? Because this keeps advertisers -- which contribute a significant amount to the company's revenue -- coming back.
During recent tough economic times, some investors worried that advertisers would drastically cut spending, and this would hurt Alphabet. But declines have been temporary and minimal, and in the most recent quarter, advertising and overall revenue advanced.
I mentioned AI earlier as something that will please those who use Google's search engine, but Alphabet also sees it as a tool that will help grow advertising. The company is using AI to help ads better target the right audience and to make the advertising process more efficient, so Alphabet's AI strengths will save advertisers time and likely deliver stronger results.
On top of this, Alphabet just launched its most powerful AI model, Gemini, which it aims to use across its products. So, stay tuned for more growth ahead.
You might expect a stock like Alphabet to cost a fortune, especially after this year's double-digit increase. But it actually trades for only 23x forward earnings estimates, a deal considering analysts' forecasts for double-digit annual growth over the coming five years.
Where to invest $1,000 right now
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for two decades, Motley Fool Stock Advisor, has more than tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Amazon made the list -- but there are 9 other stocks you may be overlooking.
See the 10 stocks
*Stock Advisor returns as of December 11, 2023
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Adria Cimino has positions in Amazon. The Motley Fool has positions in and recommends Alphabet and Amazon. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
The company has a long track record of growth, but it did fall into some tough times over the past couple of years as the economic environment weighed on its costs and on its customers' buying power. It gave Amazon the push to improve its cost structure -- and it showed us as investors that the company is capable of taking the right actions to address problems and reignite growth. The company's efforts -- from cutting jobs to investing in only the highest growth areas and revamping its U.S. fulfillment network -- have been bearing fruit.
|
Let's zoom in on two of 2023's top performers, technology and consumer goods giants Amazon (NASDAQ: AMZN) and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL). So, it's best to get in when a stock looks reasonably priced -- like Amazon today, trading at 55x times forward earnings estimates, reasonable for a growth stock with a fantastic track record -- and sit back to enjoy the long-term story. But it actually trades for only 23x forward earnings estimates, a deal considering analysts' forecasts for double-digit annual growth over the coming five years.
|
So, it's best to get in when a stock looks reasonably priced -- like Amazon today, trading at 55x times forward earnings estimates, reasonable for a growth stock with a fantastic track record -- and sit back to enjoy the long-term story. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Amazon made the list -- but there are 9 other stocks you may be overlooking. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors.
|
The company has a long track record of growth, but it did fall into some tough times over the past couple of years as the economic environment weighed on its costs and on its customers' buying power. The stock has advanced this year, and for good reason, considering all that I've just mentioned. Why is it so important for Alphabet to stay on top in the search market?
|
998b6b9a-6fc3-416a-bd19-7fde5d62b0f2
|
711971.0
|
2023-12-13 00:00:00 UTC
|
Validea John Neff Strategy Daily Upgrade Report - 12/16/2023
|
DCOMP
|
https://www.nasdaq.com/articles/validea-john-neff-strategy-daily-upgrade-report-12-16-2023
|
nan
|
nan
|
The following are today's upgrades for Validea's Low PE Investor model based on the published strategy of John Neff. This strategy looks for firms with persistent earnings growth that trade at a discount relative to their earnings growth and dividend yield.
NATIONAL GRID PLC (ADR) (NGG) is a large-cap value stock in the Electric Utilities industry. The rating according to our strategy based on John Neff changed from 58% to 77% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: National Grid plc is an energy company. The Company's businesses supply gas and electricity to various customers and communities. Its segments include UK Electricity Transmission, UK Electricity Distribution, UK Electricity System Operator, New England, and New York. The UK Electricity Transmission segment includes the high-voltage electricity transmission networks in England and Wales. The UK Electricity Distribution segment includes the electricity distribution networks of Western Power Distribution in East Midlands, West Midlands, and Southwest of England and South Wales. The UK Electricity System Operator segment is the Great Britain system operator. The New England segment is engaged in gas distribution networks, electricity distribution networks, and high-voltage electricity transmission networks in New England. The New York segment is engaged in gas distribution networks, electricity distribution networks, and high-voltage electricity transmission networks in New York.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E RATIO: PASS
EPS GROWTH: PASS
FUTURE EPS GROWTH: FAIL
SALES GROWTH: PASS
TOTAL RETURN/PE: PASS
FREE CASH FLOW: FAIL
EPS PERSISTENCE: FAIL
Detailed Analysis of NATIONAL GRID PLC (ADR)
NGG Guru Analysis
NGG Fundamental Analysis
DT MIDSTREAM INC (DTM) is a mid-cap value stock in the Natural Gas Utilities industry. The rating according to our strategy based on John Neff changed from 60% to 79% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: DT Midstream, Inc. is an owner, operator, and developer of an integrated portfolio of natural gas midstream assets. The Company operates through two segments: Pipeline and Gathering. The Pipeline segment owns and operates interstate and intrastate natural gas pipelines, storage systems, and natural gas gathering lateral pipelines. This segment also has interests in equity method investees that own and operate interstate natural gas pipelines. It is also engaged in the transportation and storage of natural gas for intermediate and end user customers. The Gathering segment owns and operates gas gathering systems. This segment is engaged in collecting natural gas from points at or near customers wells for delivery to plants for processing, to gathering pipelines for further gathering, or to pipelines for transportation, as well as associated ancillary services, including compression, dehydration, gas treatment, water impoundment, water storage, water transportation and sand mining.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E RATIO: PASS
EPS GROWTH: PASS
FUTURE EPS GROWTH: FAIL
SALES GROWTH: PASS
TOTAL RETURN/PE: PASS
FREE CASH FLOW: PASS
EPS PERSISTENCE: FAIL
Detailed Analysis of DT MIDSTREAM INC
DTM Guru Analysis
DTM Fundamental Analysis
ESSA BANCORP INC (ESSA) is a small-cap value stock in the Money Center Banks industry. The rating according to our strategy based on John Neff changed from 58% to 77% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: ESSA Bancorp, Inc. is a holding company for ESSA Bank & Trust (the Bank). The Bank is a chartered savings bank. The Bank has two regional offices in Allentown and Devon, and operates 21 community offices throughout the greater Pocono, Lehigh Valley, Scranton/Wilkes-Barre and suburban Philadelphia areas. The Bank's primary business consists of the taking of deposits and granting of loans to customers generally in Monroe, Northampton, Lehigh, Delaware, Chester, Montgomery, Lackawanna and Luzerne Counties, Pennsylvania. Its personal banking services include personal checking, personal savings, certificates of deposit, money market account, individual retirement accounts (IRAs), online banking, mobile banking, mobile deposit, online bill pay, e-statements, Zelle, Debit Mastercard and others. Its business banking services include business checking, IOLTA checking, government checking, commercial and industrial loans, commercial real estate loans, government financing and credit and others.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E RATIO: PASS
EPS GROWTH: PASS
FUTURE EPS GROWTH: FAIL
SALES GROWTH: PASS
TOTAL RETURN/PE: PASS
FREE CASH FLOW: FAIL
EPS PERSISTENCE: FAIL
Detailed Analysis of ESSA BANCORP INC
ESSA Guru Analysis
ESSA Fundamental Analysis
CHOICEONE FINANCIAL SERVICES INC (COFS) is a small-cap value stock in the Money Center Banks industry. The rating according to our strategy based on John Neff changed from 60% to 79% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: ChoiceOne Financial Services, Inc. is a financial holding company for ChoiceOne Bank (the Bank). The Company's subsidiary, ChoiceOne Bank is a full-service banking institution that offers a range of deposit, payment, credit and other financial services to all types of customers. Its services include time, savings, demand deposits, safe deposit services and automated transaction machine services. It offers both commercial and consumer loans to corporations, partnerships and individuals. Its commercial lending covers categories, such as business, industry, agricultural, construction, inventory and real estate. The Bank's consumer loan department makes direct and indirect loans to consumers and purchasers of residential and real property. The Bank's primary market area lies within Kent, Muskegon, Newaygo and Ottawa counties in western Michigan and Lapeer, Macomb, and St. Clair counties in southeastern Michigan. The Bank also offers trust and wealth management services.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E RATIO: PASS
EPS GROWTH: PASS
FUTURE EPS GROWTH: FAIL
SALES GROWTH: PASS
TOTAL RETURN/PE: PASS
FREE CASH FLOW: PASS
EPS PERSISTENCE: FAIL
Detailed Analysis of CHOICEONE FINANCIAL SERVICES INC
COFS Guru Analysis
COFS Fundamental Analysis
John Neff Portfolio
About John Neff: While known as the manager with whom many top managers entrusted their own money, Neff was far from the smooth-talking, high-profile Wall Streeter you might expect. He was mild-mannered and low-key, and the same might be said of the Windsor Fund that he managed for more than three decades. In fact, Neff himself described the fund as "relatively prosaic, dull, [and] conservative." There was nothing dull about his results, however. From 1964 to 1995, Neff guided Windsor to a 13.7 percent average annual return, easily outpacing the S&P 500's 10.6 percent return during that time. That 3.1 percentage point difference is huge over time -- a $10,000 investment in Windsor (with dividends reinvested) at the start of Neff's tenure would have ended up as more than $564,000 by the time he retired, more than twice what the same investment in the S&P would have yielded (about $233,000). Considering the length of his tenure, that track record may be the best ever for a manager of such a large fund.
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
The following are today's upgrades for Validea's Low PE Investor model based on the published strategy of John Neff. The Bank's primary business consists of the taking of deposits and granting of loans to customers generally in Monroe, Northampton, Lehigh, Delaware, Chester, Montgomery, Lackawanna and Luzerne Counties, Pennsylvania. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig.
|
Its personal banking services include personal checking, personal savings, certificates of deposit, money market account, individual retirement accounts (IRAs), online banking, mobile banking, mobile deposit, online bill pay, e-statements, Zelle, Debit Mastercard and others. Its business banking services include business checking, IOLTA checking, government checking, commercial and industrial loans, commercial real estate loans, government financing and credit and others. Detailed Analysis of ESSA BANCORP INC ESSA Guru Analysis ESSA Fundamental Analysis CHOICEONE FINANCIAL SERVICES INC (COFS) is a small-cap value stock in the Money Center Banks industry.
|
Its personal banking services include personal checking, personal savings, certificates of deposit, money market account, individual retirement accounts (IRAs), online banking, mobile banking, mobile deposit, online bill pay, e-statements, Zelle, Debit Mastercard and others. Detailed Analysis of ESSA BANCORP INC ESSA Guru Analysis ESSA Fundamental Analysis CHOICEONE FINANCIAL SERVICES INC (COFS) is a small-cap value stock in the Money Center Banks industry. Detailed Analysis of CHOICEONE FINANCIAL SERVICES INC COFS Guru Analysis COFS Fundamental Analysis John Neff Portfolio About John Neff: While known as the manager with whom many top managers entrusted their own money, Neff was far from the smooth-talking, high-profile Wall Streeter you might expect.
|
The Company's businesses supply gas and electricity to various customers and communities. This segment also has interests in equity method investees that own and operate interstate natural gas pipelines. Its business banking services include business checking, IOLTA checking, government checking, commercial and industrial loans, commercial real estate loans, government financing and credit and others.
|
0ff5c3f1-f825-4107-b162-32ac97127c75
|
711972.0
|
2023-12-13 00:00:00 UTC
|
Patients Regain Weight After They Quit Using Ozempic Rival Zepbound. Here's Why That Makes Eli Lilly Stock an Even Better Buy.
|
DCOMP
|
https://www.nasdaq.com/articles/patients-regain-weight-after-they-quit-using-ozempic-rival-zepbound.-heres-why-that-makes
|
nan
|
nan
|
Seemingly bad news can sometimes be really good news. I think a recent study for Eli Lilly's (NYSE: LLY) rival to Novo Nordisk's massively successful Ozempic and Wegovy provides a great case in point.
Results from the Surmount-4 clinical trial were published on the Journal of the American Medical Association's website on Dec. 11, 2023. Researchers found that patients who took Lilly's weight loss drug tirzepatide (marketed as Zepbound for weight loss and Mounjaro for type 2 diabetes) regained roughly half of their weight after they stopped taking the drug for one year.
Investors reacted negatively to the news. Lilly's share price fell around 5% before rebounding somewhat. However, my view is that there's more to the story that many investors are missing. Here's why the recent data actually makes Lilly stock an even better buy.
No Gilead effect here
To make my argument, let me first point to a completely opposite scenario that I think is instructive. A decade ago, Gilead Sciences (NASDAQ: GILD) won U.S. Food and Drug Administration (FDA) approval for Sovaldi. It was the first therapy that effectively cured hepatitis C for many patients.
Over the next few years, Gilead launched even more powerful combination therapies for treating hepatitis C virus (HCV) infection. Harvoni, Epclusa, and Biktarvy -- along with Sovaldi -- all became blockbusters. Gilead raked in money hand over fist.
Everything went great for Gilead Sciences for a while. But then, the company's sales began to decline, as did the price of the biotech stock. What happened?
A person who is cured of hep C doesn't need medications anymore. Gilead began to run out of patients for its HCV drugs.
GILD data by YCharts.
As I mentioned, this is the opposite scenario than we're seeing for Eli Lilly and Zepbound. Patients have ample motivation to continue taking Lilly's drug. If they don't, they're likely to regain their lost weight.
This means that Lilly isn't going to experience the "Gilead effect." Sales for Zepbound should remain strong as patients continue taking the drug to keep their weight down.
No one should have expected a different outcome, though. Research has also shown that patients who stop taking Novo Nordisk's Ozempic and Wegovy regain weight. In addition, Lilly Chief Scientific and Medical Officer Dan Skovronsky stated earlier this year that "unfortunately, tirzepatide is probably like every other drug we have which requires you to take it to continue to get the benefits." His use of the word "unfortunately" applies to patients and payers -- it's very fortunate for Lilly and its shareholders.
Lilly's abundance of riches
The combination of Mounjaro and Zepbound could generate peak annual sales of more than $50 billion if analysts' projections are on target. Lilly could very well soon have the world's best-selling drug.
But while Mounjaro/Zepbound is the company's crown jewel, Lilly has an abundance of riches in its current product lineup and pipeline. Verzenio is already a blockbuster in treating breast cancer, with sales skyrocketing 68% year over year in the third quarter of 2023. It's in late-stage testing for treating prostate cancer, as well.
Sales for two other cancer therapies -- Retevmo and Tyvyt -- soared at least 50% year over year in Q3. Lilly's type 2 diabetes drug Jardiance continues to perform well, with sales jumping 22% in the recent quarter. The company remains a major player in the autoimmune disease market with Taltz and Olumiant enjoying solid momentum.
The big drugmaker hopes to soon win FDA approval for donanemab in treating early stage Alzheimer's disease. It seeks to add another autoimmune disease drug to its portfolio with lebrikizumab in treating atopic dermatitis.
Lilly could further boost its type 2 diabetes and weight loss franchise with orforglipron, an oral therapy that's in phase 3 clinical studies. And those are just a few of the company's promising pipeline candidates.
That seemingly bad news with the data released recently about tirzepatide truly is good news for Eli Lilly. I expect that the drugmaker and its shareholders will have plenty of more good news on the way over the next few years.
Should you invest $1,000 in Eli Lilly right now?
Before you buy stock in Eli Lilly, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Eli Lilly wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
See the 10 stocks
*Stock Advisor returns as of December 11, 2023
Keith Speights has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Gilead Sciences. The Motley Fool recommends 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.
|
I think a recent study for Eli Lilly's (NYSE: LLY) rival to Novo Nordisk's massively successful Ozempic and Wegovy provides a great case in point. In addition, Lilly Chief Scientific and Medical Officer Dan Skovronsky stated earlier this year that "unfortunately, tirzepatide is probably like every other drug we have which requires you to take it to continue to get the benefits." Lilly's abundance of riches The combination of Mounjaro and Zepbound could generate peak annual sales of more than $50 billion if analysts' projections are on target.
|
Researchers found that patients who took Lilly's weight loss drug tirzepatide (marketed as Zepbound for weight loss and Mounjaro for type 2 diabetes) regained roughly half of their weight after they stopped taking the drug for one year. Research has also shown that patients who stop taking Novo Nordisk's Ozempic and Wegovy regain weight. Before you buy stock in Eli Lilly, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Eli Lilly wasn't one of them.
|
Researchers found that patients who took Lilly's weight loss drug tirzepatide (marketed as Zepbound for weight loss and Mounjaro for type 2 diabetes) regained roughly half of their weight after they stopped taking the drug for one year. That seemingly bad news with the data released recently about tirzepatide truly is good news for Eli Lilly. Before you buy stock in Eli Lilly, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Eli Lilly wasn't one of them.
|
Sales for Zepbound should remain strong as patients continue taking the drug to keep their weight down. I expect that the drugmaker and its shareholders will have plenty of more good news on the way over the next few years. Before you buy stock in Eli Lilly, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Eli Lilly wasn't one of them.
|
0c084621-7da4-4ab2-8581-8445573db1d3
|
711973.0
|
2023-12-13 00:00:00 UTC
|
Got $1,000? 5 Buffett Stocks to Buy and Hold Forever
|
DCOMP
|
https://www.nasdaq.com/articles/got-%241000-5-buffett-stocks-to-buy-and-hold-forever-9
|
nan
|
nan
|
If you want to know which rare coins are the best to own, examining the collection of one of the world's top coin collectors isn't a bad place to start. Ditto with stocks. You'll find plenty of great ideas among the stocks Warren Buffett has bought for Berkshire Hathaway's (NYSE: BRK.A) (NYSE: BRK.B) portfolio.
The good news is that you don't need a huge up-front investment to scoop up some of those stocks. Got $1,000? Here are five Buffett stocks to buy and hold forever.
1. Amazon
Buffett didn't personally make the call to buy shares of Amazon (NASDAQ: AMZN) for Berkshire's portfolio. One of the conglomerate's two investment managers initiated the position in Amazon. However, Buffett stated he was "too dumb" to invest in Amazon sooner.
I think Amazon is an ideal Buffett stock to buy and hold long term. The company has plenty of growth opportunities in its core e-commerce business. Its potential upside is even greater with Amazon Web Services, as the demand for artificial intelligence (AI) drives more organizations to the cloud. Amazon also continually looks for new markets to enter, with supply chain services and primary care standing out as two recent examples.
2. Bank of America
Bank of America (NYSE: BAC) ranks as the second-largest holding in Berkshire's portfolio. Although Buffett has exited positions in several bank stocks in recent years, he has retained and even added shares of BofA.
Banking and financial services are changing. However, BofA is navigating those changes exceptionally well, evidenced by its being named by Global Finance as one of the world's most innovative banks in 2023. This stock is attractively valued right now to boot, with a forward earnings multiple of around 9 times.
3. Markel Group
There's arguably no stock in Berkshire's portfolio more like Berkshire itself than Markel Group (NYSE: MKL). Both companies have core insurance businesses. Both also have extensive investment portfolios.
I like Markel Group as a stock to buy and hold over the long term in large part because it provides a lot of diversification. The company's Markel Ventures owns stakes in nearly 20 companies. Markel also holds positions in more than 100 stocks, notably including Berkshire Hathaway.
4. Mastercard
Buffett likes moats. There's no better attribute for a company to be able to survive and thrive for decades. It's unsurprising, therefore, that Berkshire owns nearly 4 million shares of Mastercard (NYSE: MA).
Mastercard actually has several moats. Its brand is widely recognized around the world. The company's extensive payments network gives it cost advantages over smaller rivals that might try to usurp the duopoly it enjoys with Visa. Perhaps most importantly, Mastercard has strong network effects. The more customers who use it for payment processing, the more merchants it attracts, and vice versa.
5. Moody's
Speaking of Buffett stocks with moats, we can't leave out Moody's (NYSE: MCO). The company is one of only a handful of credit rating agencies. Moody's and S&P Global's Standard & Poor's together command market shares of around 80%, with Fitch coming in a distant third with a market share of 15%.
The need for the services provided by Moody's won't go away. Instead, the demand should increase over the next decade and beyond with the expansion of emerging markets and the company's use of AI and other technology to improve its capabilities.
Should you invest $1,000 in Moody's right now?
Before you buy stock in Moody'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 Moody'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
Bank of America is an advertising partner of The Ascent, a Motley Fool company. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Keith Speights has positions in Amazon, Bank of America, Berkshire Hathaway, and Mastercard. The Motley Fool has positions in and recommends Amazon, Bank of America, Berkshire Hathaway, Markel Group, Mastercard, Moody's, S&P Global, and Visa. The Motley Fool recommends the following options: long January 2025 $370 calls on Mastercard and short January 2025 $380 calls on Mastercard. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Its potential upside is even greater with Amazon Web Services, as the demand for artificial intelligence (AI) drives more organizations to the cloud. I like Markel Group as a stock to buy and hold over the long term in large part because it provides a lot of diversification. The Motley Fool has positions in and recommends Amazon, Bank of America, Berkshire Hathaway, Markel Group, Mastercard, Moody's, S&P Global, and Visa.
|
Amazon Buffett didn't personally make the call to buy shares of Amazon (NASDAQ: AMZN) for Berkshire's portfolio. The Motley Fool has positions in and recommends Amazon, Bank of America, Berkshire Hathaway, Markel Group, Mastercard, Moody's, S&P Global, and Visa. The Motley Fool recommends the following options: long January 2025 $370 calls on Mastercard and short January 2025 $380 calls on Mastercard.
|
Before you buy stock in Moody'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 Moody's wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Bank of America is an advertising partner of The Ascent, a Motley Fool company. The Motley Fool has positions in and recommends Amazon, Bank of America, Berkshire Hathaway, Markel Group, Mastercard, Moody's, S&P Global, and Visa.
|
The company's Markel Ventures owns stakes in nearly 20 companies. Before you buy stock in Moody'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 Moody's wasn't one of them. The Motley Fool has positions in and recommends Amazon, Bank of America, Berkshire Hathaway, Markel Group, Mastercard, Moody's, S&P Global, and Visa.
|
b2116fed-3ef6-4d14-a74d-3079d191dbf2
|
711974.0
|
2023-12-13 00:00:00 UTC
|
Oil Prices and 1 Customer Are Taking a Toll on This Dividend Stock. Is It a Buy?
|
DCOMP
|
https://www.nasdaq.com/articles/oil-prices-and-1-customer-are-taking-a-toll-on-this-dividend-stock.-is-it-a-buy
|
nan
|
nan
|
Franco-Nevada (NYSE: FNV) is, at its core, a precious metals company. But it is not a miner; it is a streaming and royalty company, which means it provides cash up front to miners in exchange for the right to buy gold and silver in the future at advantaged prices. For more conservative investors, it is a good way to add precious metals to a portfolio for diversification purposes. Sixteen consecutive annual dividend increases prove that. But there are some nuances to consider here, and oil is a fundamental factor to keep in mind.
Franco-Nevada is lagging behind its peers
If you are looking at Franco-Nevada, you'll also find Royal Gold (NASDAQ: RGLD) and Wheaton Precious Metals (NYSE: WPM) interesting. These are the three largest companies in the streaming space. As the graphic below shows, Franco-Nevada has been a notable laggard of late, even as gold has been near record highs.
FNV data by YCharts.
This is what makes Franco-Nevada so interesting right now. Adding to the attractiveness is the company's 1.3% dividend yield. On an absolute level, that's tiny, but the purpose of this stock in a portfolio is really about adding diversification. The yield and the 16 years of annual dividend growth are icing on the cake for conservative income-focused investors. The yield, however, is the highest it has been in five years. It has also closed a gap that existed between Franco-Nevada, Royal Gold, and Wheaton. That suggests that Franco-Nevada is no longer being afforded a premium valuation.
FNV Dividend Yield data by YCharts.
If you are looking at the spike in gold and trying to find a way to invest in the space while generating a reliable stream of income, Franco-Nevada could be an attractive way to get that done.
Franco-Nevada is a bit different
There are a couple of reasons for Franco-Nevada's laggard performance. The first is a big-picture difference between this company and its closest peers. In addition to gold and silver streaming, Franco-Nevada also invests in energy projects using a similar business model. In total, energy made up around 17% of the company's revenue in the third quarter, so it isn't the most important part of the business, but it isn't inconsequential, either. Oil prices wax and wane over time, and they were down year over year in the quarter. So, this business has been a drag on performance of late.
Brent Crude Oil Spot Price data by YCharts.
The important thing to remember is that adding energy wasn't an accident. Franco-Nevada was purposefully looking to increase the diversification of its portfolio to help smooth out performance over the long term. Right now, oil is a relative headwind, but that hasn't always been the case. The two commodities often move in very different ways. For investors who place an emphasis on portfolio diversification, this will probably be a positive selling point.
The other big problem right now is Cobre Panama, a mine operated by First Quantum that accounts for 22% of Franco-Nevada's revenue. The mine has effectively been shut down because of social and legal issues. That has put material pressure on Franco-Nevada's stock price, even though that mine has historically been a good investment.
The company believes a worst-case scenario outcome, in which the miner has to go to arbitration to enforce its rights, would work out in favor of the miner, which is how similar situations have turned out in the past. While this is a notable issue right now, Franco-Nevada does not view it as a material long-term issue. However, taken together with the energy headwinds, it is helping to materially depress the stock price.
Taking a little risk with Franco-Nevada
Franco-Nevada is definitely not a risk-free investment, given that it generates revenues from volatile commodities like gold, silver, oil, and natural gas. However, it has a long history of rewarding investors well while navigating the inherent volatility of the precious metals and energy sectors. Right now, there is more uncertainty than usual thanks to the issues at the Cobre Panama mine. History suggests Franco-Nevada will weather the situation in stride. Given the stock's underperformance relative to peers, now could be a good time for dividend investors who think in decades to do a deep dive.
Should you invest $1,000 in Franco-Nevada right now?
Before you buy stock in Franco-Nevada, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Franco-Nevada 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
Reuben Gregg Brewer has positions in Franco-Nevada. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In addition to gold and silver streaming, Franco-Nevada also invests in energy projects using a similar business model. The other big problem right now is Cobre Panama, a mine operated by First Quantum that accounts for 22% of Franco-Nevada's revenue. However, it has a long history of rewarding investors well while navigating the inherent volatility of the precious metals and energy sectors.
|
Franco-Nevada is lagging behind its peers If you are looking at Franco-Nevada, you'll also find Royal Gold (NASDAQ: RGLD) and Wheaton Precious Metals (NYSE: WPM) interesting. Taking a little risk with Franco-Nevada Franco-Nevada is definitely not a risk-free investment, given that it generates revenues from volatile commodities like gold, silver, oil, and natural gas. Before you buy stock in Franco-Nevada, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Franco-Nevada wasn't one of them.
|
Franco-Nevada is lagging behind its peers If you are looking at Franco-Nevada, you'll also find Royal Gold (NASDAQ: RGLD) and Wheaton Precious Metals (NYSE: WPM) interesting. Taking a little risk with Franco-Nevada Franco-Nevada is definitely not a risk-free investment, given that it generates revenues from volatile commodities like gold, silver, oil, and natural gas. Before you buy stock in Franco-Nevada, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Franco-Nevada wasn't one of them.
|
Adding to the attractiveness is the company's 1.3% dividend yield. While this is a notable issue right now, Franco-Nevada does not view it as a material long-term issue. Before you buy stock in Franco-Nevada, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Franco-Nevada wasn't one of them.
|
dd0b69f1-4b43-4b5c-ab28-38eb8039de50
|
711975.0
|
2023-12-13 00:00:00 UTC
|
Better AI Stock: Amazon vs. Microsoft
|
DCOMP
|
https://www.nasdaq.com/articles/better-ai-stock%3A-amazon-vs.-microsoft
|
nan
|
nan
|
Amazon (NASDAQ: AMZN) and Microsoft (NASDAQ: MSFT) are the No. 1 and No. 2 companies, respectively, in the cloud infrastructure space. While Amazon pioneered the industry, Microsoft drove its recovery from the decline of the PC industry, primarily by pivoting to the cloud. Consequently, each stock has focused heavily on artificial intelligence (AI), a technology that relies heavily on the cloud for support.
Admittedly, both companies are among the largest companies in tech. Also, they both have large cash hoards and diverse income streams, so both AI stocks will likely outperform the S&P 500. Still, between the two, one probably holds the potential for higher returns.
Image source: Synergy Research Group.
The case for Amazon
Many investors consider Amazon an e-commerce company and may ignore Amazon Web Services (AWS), whose cloud platform drives most or all of its profits in most quarters. Nonetheless, Amazon pioneered the cloud industry and, as mentioned, has held on to its industry lead. It remains the leader, partially by excelling at AI. To that end, AWS leverages AI so its customers can create new AI-driven applications without worrying about infrastructure requirements.
Moreover, AWS's AI detects fraud, cybersecurity vulnerabilities, and issues with one's IT infrastructure. It can also analyze text and videos to extract key points.
Much of that functionality occurs through an AI application called machine learning (ML), which allows its AI to learn from mistakes and adapt systems without pre-programming. This can help resolve a business's problems, build and scale generative AI applications, and add AI to applications.
Although it generated only 16% of Amazon's revenue, AWS generated over $7 billion in operating income in the third quarter of 2023, well above the $4 billion combined for Amazon's two e-commerce segments. That resulted in a net income of almost $10 billion for the same timeframe, a considerable increase from the $3 billion earned in the same year-ago period.
Investors have caught on to Amazon's recovery and AI prowess in 2023, and the stock is up over 60% over the last year. And while some investors may wince at the 76 price-to-earnings (P/E) ratio, that earnings multiple is low by historical standards. With AI leading the way on the AWS side of the business, the company's fast-rising income could likely push the stock much higher.
Why investors might choose Microsoft
As mentioned, the cloud was Microsoft's saving grace. Once known for its PC operating systems and productivity software, its largest source of revenue now comes from its intelligent cloud segment, which supports Azure. Microsoft leverages Azure for applied AI services, cognitive functions, and ML. However, AI's reach affects virtually all parts of the company.
The company has integrated AI-related functionality into its productivity software. It accomplishes this through Microsoft Copilot, which helps users unlock productivity and skills through Word, Excel, and other applications. It also powers Business Chat, a large language model (LLM) that can produce output using one's data.
Furthermore, its LLM abilities were enhanced when it built an alliance with Open AI's Chat GPT. Thus, that technology supports Azure-related applications and the search functions in Bing Chat, which supports its chatbot.
Such functionality helped Microsoft generate more than $57 billion in revenue in the first quarter of fiscal 2024 (ended Sept. 30). And since it kept the cost of revenue growth to a minimal level, the $22 billion in net income in fiscal Q1 rose 27% from year-ago levels.
Like Amazon, Microsoft has benefited from the AI boom and the stock price increased more than 50% over the last 12 months. That resulted in a 36 P/E ratio, a historically high level over the last five years. Its AI prowess may have led to that multiple expansion, though the stock should keep rising despite that valuation.
Amazon or Microsoft?
Although both stocks should prosper, Amazon will likely drive higher shareholder returns. In Amazon's case, a comparatively small part of the company, AWS, drives most of its income increases, allowing it to maintain higher rates of earnings growth.
Admittedly, Amazon's higher P/E ratio may deter some investors. Still, its faster rate of profit growth will likely justify the higher earnings multiple as the reach of its AI tools grows.
Should you invest $1,000 in Amazon right now?
Before you buy stock in Amazon, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Amazon wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
See the 10 stocks
*Stock Advisor returns as of December 11, 2023
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Will Healy has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon and Microsoft. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Once known for its PC operating systems and productivity software, its largest source of revenue now comes from its intelligent cloud segment, which supports Azure. In Amazon's case, a comparatively small part of the company, AWS, drives most of its income increases, allowing it to maintain higher rates of earnings growth. Still, its faster rate of profit growth will likely justify the higher earnings multiple as the reach of its AI tools grows.
|
The case for Amazon Many investors consider Amazon an e-commerce company and may ignore Amazon Web Services (AWS), whose cloud platform drives most or all of its profits in most quarters. Once known for its PC operating systems and productivity software, its largest source of revenue now comes from its intelligent cloud segment, which supports Azure. Before you buy stock in Amazon, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Amazon wasn't one of them.
|
The case for Amazon Many investors consider Amazon an e-commerce company and may ignore Amazon Web Services (AWS), whose cloud platform drives most or all of its profits in most quarters. Although it generated only 16% of Amazon's revenue, AWS generated over $7 billion in operating income in the third quarter of 2023, well above the $4 billion combined for Amazon's two e-commerce segments. Before you buy stock in Amazon, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Amazon wasn't one of them.
|
The case for Amazon Many investors consider Amazon an e-commerce company and may ignore Amazon Web Services (AWS), whose cloud platform drives most or all of its profits in most quarters. Once known for its PC operating systems and productivity software, its largest source of revenue now comes from its intelligent cloud segment, which supports Azure. Amazon or Microsoft?
|
603ed4b4-7a3f-405d-bf74-bd74024128c6
|
711976.0
|
2023-12-13 00:00:00 UTC
|
This Precious Metals Stock Got Rocked by Silver
|
DCOMP
|
https://www.nasdaq.com/articles/this-precious-metals-stock-got-rocked-by-silver
|
nan
|
nan
|
Wheaton Precious Metals (NYSE: WPM) is a streaming and royalty company. It provides cash up front to miners in exchange for the right to buy silver and gold at reduced rates in the future. That locks in a profit when Wheaton sells the precious metals at currently prevailing rates. If you are looking for a precious metals investment, you should strongly consider Wheaton. But there are some factors to consider here, and tough results out of the company's silver business is a highlight on that front.
Wheaton avoids a lot of risks
Mining for precious metals is an expensive and risky thing. First, a company has to find a location where it thinks a mine can be built. Then, it needs to get permission to build that mine. After getting that OK, it has to actually build the mine. Only after it is built, usually at great expense and years later, does any revenue come in. Meanwhile, operating the mine comes with its own set of costs (salaries, for example) and potential problems (mine disasters). And, once the mine has run its course, the area has to be returned as closely as possible to its pre-mine state.
Image source: Getty Images.
There are a lot of things that can go wrong. Wheaton Precious Metals sidesteps many of these issues. It basically provides a set amount of cash up front that miners often use to help fund a mine development. That saves the miner from having to take on debt or sell stock to raise the needed cash. In exchange for the money, the miner agrees to sell Wheaton precious metals at reduced rates that effectively guarantee a profit when Wheaton sells the metal. It is pretty close to a win/win, noting that the metals Wheaton buys are often not the main metal produced by the mine.
For example, gold and silver are often found in copper mines. They are a relatively small component of the production and not the main focus of the miner, so selling these metals to Wheaton in advance isn't that big a deal. Wheaton benefits from buying it and doesn't have any financial risk beyond the initial investment it agreed to. If the mine stops producing for some reason or the production is curtailed, there will be less precious metal for it to buy, which is bad. But inflation, costs associated with adverse mine events, or employee salary issues have little to no impact on Wheaton.
Silver is a near-term problem
But, as noted, a mine stoppage will materially reduce the amount of silver and gold Wheaton can buy. That was a notable issue in the third quarter, as a 42% year-over-year decrease in silver production reduced the amount of silver that Wheaton was able to buy at reduced rates and then sell at higher spot rates. The drop came from two places -- the sale of a stream and a work stoppage at a mine. The second of those two headwinds has been resolved, but it highlights that Wheaton can't avoid all mining risks.
There's another silver headwind that is a bit more fundamental to the business. Although Wheaton gets advantageous pricing, which locks in a profit, it doesn't actually guarantee how much of a profit it will make. That's determined by the price of the metal being sold. Higher gold and silver prices generally lead to higher revenue for Wheaton. In the third quarter, silver prices were lower year over year.
Despite these two factors, silver revenue fell from $107 million in Q3 2022 to just $70 million in Q3 2023. That's a huge drop, totaling nearly 35%. Silver (about 30% of overall revenue), which was once the company's main focus, is currently a notable headwind to performance even as gold is trading near all-time highs.
The future is likely to be better
Given the resolution of the problems at the silver mine that was shuttered, Q3 is likely to be a low point for Wheaton Precious Metals' silver business. The future will brighten materially as the flow of silver from that asset picks up again. However, silver prices and the occasional hiccup at a mine can't be ignored because they can both have very real impacts on this streaming company's business. It is still a great way to add precious metals exposure to a portfolio for diversification purposes, but the third quarter shows that you can't avoid all of the risks of owning a precious metals company.
Should you invest $1,000 in Wheaton Precious Metals right now?
Before you buy stock in Wheaton Precious Metals, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Wheaton Precious Metals 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
Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
They are a relatively small component of the production and not the main focus of the miner, so selling these metals to Wheaton in advance isn't that big a deal. Silver (about 30% of overall revenue), which was once the company's main focus, is currently a notable headwind to performance even as gold is trading near all-time highs. However, silver prices and the occasional hiccup at a mine can't be ignored because they can both have very real impacts on this streaming company's business.
|
In exchange for the money, the miner agrees to sell Wheaton precious metals at reduced rates that effectively guarantee a profit when Wheaton sells the metal. Silver is a near-term problem But, as noted, a mine stoppage will materially reduce the amount of silver and gold Wheaton can buy. Before you buy stock in Wheaton Precious Metals, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Wheaton Precious Metals wasn't one of them.
|
In exchange for the money, the miner agrees to sell Wheaton precious metals at reduced rates that effectively guarantee a profit when Wheaton sells the metal. The future is likely to be better Given the resolution of the problems at the silver mine that was shuttered, Q3 is likely to be a low point for Wheaton Precious Metals' silver business. Before you buy stock in Wheaton Precious Metals, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Wheaton Precious Metals wasn't one of them.
|
Silver is a near-term problem But, as noted, a mine stoppage will materially reduce the amount of silver and gold Wheaton can buy. However, silver prices and the occasional hiccup at a mine can't be ignored because they can both have very real impacts on this streaming company's business. Before you buy stock in Wheaton Precious Metals, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Wheaton Precious Metals wasn't one of them.
|
2ce53431-1cc4-4c05-aa94-e5e8502e8259
|
711977.0
|
2023-12-13 00:00:00 UTC
|
Almost Half of Warren Buffett-led Berkshire Hathaway's $365 Billion Portfolio Is Invested in Only 1 Stock
|
DCOMP
|
https://www.nasdaq.com/articles/almost-half-of-warren-buffett-led-berkshire-hathaways-%24365-billion-portfolio-is-invested
|
nan
|
nan
|
Warren Buffett is arguably the greatest capital allocator ever. His track record at the helm of Berkshire Hathaway proves this: The conglomerate's shares have increased by 40,000% in the last 40 years.
Scouring Berkshire's equities portfolio for potential investments might be a smart idea for the average investor. By doing so, you'll quickly realize that about 49% of the massive $365 billion portfolio is invested in just one stock: Apple (NASDAQ: AAPL).
It's worth looking at some of the reasons Buffett decided to buy this FAANG stock in the first place. Then, by considering the situation today, investors can decide if Apple still makes for a smart investment.
Almost a no-brainer investment
Berkshire Hathaway first purchased shares of Apple during the first quarter of 2016. Since Jan. 1 of that year to Dec. 12 of this year, the iPhone maker's stock price has skyrocketed 639%. That easily outpaces the 190% rise of the Nasdaq Composite.
Looking back almost eight years, it's not hard to understand why Buffett was attracted to Apple as an investment opportunity. I think there were three key reasons.
For starters, Buffett realized that Apple wasn't just a typical tech business. Instead, it was one of the strongest consumer brands on the planet. And this supported Apple's economic moat, while giving the company proven pricing power.
Next, Apple is an extremely sound enterprise financially. In fiscal 2015 (ended Sept. 26 of that year), the business posted a gross margin of 40.1%, an operating margin of 30%, and free cash flow of $70 billion. And at the end of that fiscal year, it had $206 billion in cash, cash equivalents, and marketable securities on the balance sheet.
Lastly, while Buffett does appreciate wonderful businesses, he will not overpay for them. Apple shares traded at an average price-to-earnings (P/E) multiple of 10.6. In hindsight, that is a ridiculously cheap valuation, especially for such a dominant company.
In 2016, Apple hit on all of the characteristics that Buffett usually looks for in a stock. It was almost a no-brainer investment decision for the Oracle of Omaha at the time.
Is Apple a smart stock to buy right now?
Clearly, Apple worked out as a fantastic investment. And based on the dollar value of gains, it might be the most financially lucrative bet that Buffett has ever made. Even this year, the stock has soared 50%, so there is strong momentum.
Investors who have been on the sidelines might be looking at Apple as a potential buying opportunity right now. After all, it's still Berkshire's largest position by far. However, I don't believe this is a smart stock to buy.
Apple's current valuation isn't remotely as cheap as it was in early 2016. As of this writing, shares trade at a P/E of 31.8, triple the range that Buffett first purchased them at. All else equal, this introduces a major headwind for investors looking to produce solid returns, as the optimism is fully priced in.
And a valid argument can be made that Apple simply doesn't have the growth opportunities today that it did in years past, thanks to its already massive size. In each of the last four fiscal quarters, sales declined on a year-over-year basis, a sign that this is a mature business nowadays. Paying such a steep valuation seems like a mistake.
The way things stand, Apple stock just doesn't make for a smart investment.
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 11, 2023
Neil Patel and his clients have no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway. 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.
|
His track record at the helm of Berkshire Hathaway proves this: The conglomerate's shares have increased by 40,000% in the last 40 years. And a valid argument can be made that Apple simply doesn't have the growth opportunities today that it did in years past, thanks to its already massive size. In each of the last four fiscal quarters, sales declined on a year-over-year basis, a sign that this is a mature business nowadays.
|
By doing so, you'll quickly realize that about 49% of the massive $365 billion portfolio is invested in just one stock: Apple (NASDAQ: AAPL). Almost a no-brainer investment Berkshire Hathaway first purchased shares of Apple during the first quarter of 2016. 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 way things stand, Apple stock just doesn't make for a smart investment. Before you buy stock in Apple, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Apple wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Neil Patel and his clients have no position in any of the stocks mentioned.
|
Almost a no-brainer investment Berkshire Hathaway first purchased shares of Apple during the first quarter of 2016. 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.
|
700a4237-cb8b-484f-809b-458ef486fc21
|
711978.0
|
2023-12-13 00:00:00 UTC
|
Get Rich With This Boring but Unstoppable Stock
|
DCOMP
|
https://www.nasdaq.com/articles/get-rich-with-this-boring-but-unstoppable-stock
|
nan
|
nan
|
Do you enjoy investing? Or is it merely a means to an end?
It's fine if you're a so-called market junkie, following the market's daily headlines and keeping a constant eye out for the next hot story stock. There's also nothing wrong with a boring, passive approach to picking stocks. Indeed, often times the "less is more" crowd ends up with better returns than active investors.
There's a largely overlooked name more investors might want to consider adding to their portfolio regardless of their long-term goals and risk tolerances. Shares of boring payroll processor outfit Automatic Data Processing (NASDAQ: ADP) are up an incredible 240% for the past 10 years, with more of the same likely in the cards for the next 10.
Automatic Data Processing is on a roll
Shares of Automatic Data Processing -- you may know it better as just ADP -- have more than tripled in value since this point in 2013. For comparison, the S&P 500 is up roughly the same amount for the same time frame. Most of the S&P 500's gains were driven by growth stocks though, whereas ADP is more of a value name. Factoring in ADP's better dividend payments, what you're left with is a surprisingly strong performance from a stock not too many investors think much about.
Just as the name suggests, Automatic Data Processing offers a variety of processing services. It's best known for handling payroll duties for medium and large businesses, although that's far from all it does. The company provides a variety of other human resources services, too, like recruiting, benefits program management, employee time clocks, tax matters, contract worker paperwork, work-related credentials, and more. It's truly a turnkey HR solution for enterprises looking to focus more on their products and services and worry less about human logistics stuff.
Boring? You bet.
Don't presume there's no growth in a boring business though. Companies of all shapes and sizes are increasingly turning to third parties to handle increasingly complicated human resources functions. In step with its stock's 240% gain over the course of the past decade, ADP's annualized revenue has grown from $11 billion to more than $18 billion, while net income has exploded from a little over $1.4 billion per year to just under $3.5 billion. Per-share profits have grown even more thanks to big-time stock buybacks, from less than $3 then to $8.42 per share for the four-quarter stretch ending in September.
ADP Revenue (Quarterly) data by YCharts
Perhaps even more bullish than the company's long-term growth, however, is the consistency of its growth. Note that with the exception of 2013's reporting of revenue-crimping asset sales initiated in 2012 and the impact of COVID-19 shutdowns in the first half of 2020, Automatic Data Processing hasn't failed to report year-over-year sales growth in any quarter in years. Operating income and net income have grown almost as reliably.
This actually makes sense though. ADP's business model generates recurring revenue ultimately based on the scope of services performed. Its clients are billed on a monthly basis, and its revenue retention rate reached record-breaking levels of more than 92% during the fiscal year ending in June. Once a customer is on board, they tend to stay on board.
The kicker: Automatic Data Processing is sharing the wealth in the meantime, and has plenty of it to share. The stock's quarterly per-share dividend has grown from $0.435 10 years ago to $1.40 now. Even with that annualized growth rate of more than 12%, however, the dividend still only consumes around two-thirds of the company's profits. The rest of its earnings can be used to add value in other ways, like the aforementioned stock buybacks, the acquisition of other companies, or simply reinvesting in technologies that drive more growth.
Just buy ADP already and forget about it
If you're looking for thrills and entertainment, look elsewhere -- ADP doesn't offer it. The company isn't working on any game-changing technologies or miracle drugs. It's not dishing out double-digit revenue or earnings growth. By most measures, it's a relatively boring stock.
It's a boring stock, however, reflecting a powerhouse company operating in an industry with a strong foundation and lots of opportunity for continued expansion.
See, the world's always going to need workers, and there's little reason to think more and more companies aren't going to reach a point where they simply decide to punt most -- if not all -- of their human resources functions to third parties like ADP. In this vein, market research outfit Technavio believes this business is set to grow at an annual pace of 5.6% through 2027. Given its current dominating footprint, Automatic Data Processing is positioned to capture more than its fair share of this growth.
Just don't tarry if you want in. The stock's still trading where it was as of late 2021. It doesn't seem likely the market's going to let this one linger there for a whole lot longer though.
Should you invest $1,000 in Automatic Data Processing right now?
Before you buy stock in Automatic Data Processing, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Automatic Data Processing 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
James Brumley has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
The company provides a variety of other human resources services, too, like recruiting, benefits program management, employee time clocks, tax matters, contract worker paperwork, work-related credentials, and more. Its clients are billed on a monthly basis, and its revenue retention rate reached record-breaking levels of more than 92% during the fiscal year ending in June. See, the world's always going to need workers, and there's little reason to think more and more companies aren't going to reach a point where they simply decide to punt most -- if not all -- of their human resources functions to third parties like ADP.
|
Shares of boring payroll processor outfit Automatic Data Processing (NASDAQ: ADP) are up an incredible 240% for the past 10 years, with more of the same likely in the cards for the next 10. Just as the name suggests, Automatic Data Processing offers a variety of processing services. Before you buy stock in Automatic Data Processing, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Automatic Data Processing wasn't one of them.
|
Automatic Data Processing is on a roll Shares of Automatic Data Processing -- you may know it better as just ADP -- have more than tripled in value since this point in 2013. Before you buy stock in Automatic Data Processing, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Automatic Data Processing wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 11, 2023 James Brumley has no position in any of the stocks mentioned.
|
Don't presume there's no growth in a boring business though. ADP Revenue (Quarterly) data by YCharts Perhaps even more bullish than the company's long-term growth, however, is the consistency of its growth. Before you buy stock in Automatic Data Processing, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Automatic Data Processing wasn't one of them.
|
956b08fd-7f08-4466-a8cb-c647b377b089
|
711979.0
|
2023-12-13 00:00:00 UTC
|
Could Pfizer Stock Help You Become a Millionaire?
|
DCOMP
|
https://www.nasdaq.com/articles/could-pfizer-stock-help-you-become-a-millionaire-1
|
nan
|
nan
|
Having at least $1 million in the bank by retirement has long been a popular goal, but it isn't easy to accomplish. One of the best ways to do so is to invest in stocks, and the earlier one starts, the better. Naturally, all stocks aren't created equal, and while some will substantially contribute to making investors millionaires, others might do the opposite.
Which of these categories does pharmaceutical giant Pfizer (NYSE: PFE) fall into? Let's find out whether this drugmaker can help investors become part of the seven-figure club.
Pfizer's business is improving despite appearances
Suppose an investor starts with capital of $100,000 and has 20 years to reach $1 million. This would require a compound annual growth rate (CAGR) of 12.2%, which isn't easy to pull off. Investors might rightly be skeptical regarding Pfizer's ability to deliver such returns in the next two decades. For one, the company's performance has been catastrophic this year. Also, even in the past 20 years, Pfizer hasn't been able to beat the market -- quite the opposite, in fact.
PFE data by YCharts
However, if the past isn't a reliable predictor of future success, past failures shouldn't cause investors to conclude that Pfizer will continue to underperform the market over the long run. After all, a lot has happened with the drugmaker lately. CEO Albert Bourla said at the beginning of this year that Pfizer was entering the most crucial 18-month stretch in its (long) history.
Bourla was talking about the string of brand-new approvals and important label expansions the company was expecting this year, and so far, things have gone almost exactly as planned. Pfizer has launched seven new products, substantially beating its typical annual number of, at most, two. Pfizer's pipeline is vast and is only getting bigger thanks to acquisitions, including that of cancer expert Seagen.
Seagen has nearly 40 cancer-focused programs. This buyout could transform Pfizer into a leader in the field of oncology, especially as it combines its deep pockets with Seagen's proven innovative abilities in this area. The $43 billion Pfizer will pay in cash is possible thanks to its success in the COVID-19 market. So although its sales are declining this year because of a slowdown in vaccinations, the drugmaker is building a solid foundation for the future.
Pfizer's work along these lines didn't start with its coronavirus-related efforts. The company significantly altered its operations in the past few years, most notably by shedding some parts of its business that were doing little to contribute to revenue and earnings growth. Pfizer is a much stronger company with better prospects than just three years ago.
Dividends matter -- a lot
In my view, Pfizer can deliver somewhat average stock market returns in the next two decades. However, there is something else to consider when looking at a stock's performance, especially over such long periods: dividends. Over the past 20 years, Pfizer's returns with and without dividends (total returns include dividends) are night and day.
PFE data by YCharts
That's why maintaining a solid dividend program could be an important factor in helping Pfizer turn investors into millionaires in the future. The drugmaker has increased its payouts by just under 58% in the past decade, which is decent. Pfizer's current cash payout ratio of 112% also does not inspire confidence -- it signals that the company's current cash balance isn't enough to cover its dividends. Should investors worry about it? I think the answer is no.
Pfizer generated plenty of cash in the past two years thanks to its COVID-19 success, but it spent much of it on acquisitions. Pfizer's management is committed to growing dividends over time. Once the business stabilizes, new products start pulling their weight, and the company stops being severely affected by what transpired in the past two years -- which were highly abnormal -- Pfizer's cash payout ratio should get back to more reasonable levels.
In short, Pfizer is still a good dividend stock. Reinvesting the dividend should still be an excellent choice for long-term investors.
Don't give up on Pfizer too fast
While it is true that Pfizer has had issues this year, the company still has a lot to offer investors. Demand for innovative therapies will increase in the next two decades as the population ages. The drugmaker's strengthening lineup and pipeline, as well as its commitment to growing its dividend, should lead to much better performance soon. And over the next 20 years, my view is that it has an excellent chance of delivering a CAGR of 12.2% with dividends reinvested.
In short, Pfizer can help investors become millionaires.
Should you invest $1,000 in Pfizer right now?
Before you buy stock in Pfizer, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Pfizer wasn't one of them. 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 nearly quadrupled the return of S&P 500 since 2002*.
See the 10 stocks
*Stock Advisor returns as of December 7, 2023
Prosper Junior Bakiny has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Pfizer and Seagen. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
This buyout could transform Pfizer into a leader in the field of oncology, especially as it combines its deep pockets with Seagen's proven innovative abilities in this area. PFE data by YCharts That's why maintaining a solid dividend program could be an important factor in helping Pfizer turn investors into millionaires in the future. Once the business stabilizes, new products start pulling their weight, and the company stops being severely affected by what transpired in the past two years -- which were highly abnormal -- Pfizer's cash payout ratio should get back to more reasonable levels.
|
Over the past 20 years, Pfizer's returns with and without dividends (total returns include dividends) are night and day. Pfizer's current cash payout ratio of 112% also does not inspire confidence -- it signals that the company's current cash balance isn't enough to cover its dividends. Before you buy stock in Pfizer, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Pfizer wasn't one of them.
|
Over the past 20 years, Pfizer's returns with and without dividends (total returns include dividends) are night and day. Don't give up on Pfizer too fast While it is true that Pfizer has had issues this year, the company still has a lot to offer investors. Before you buy stock in Pfizer, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Pfizer wasn't one of them.
|
Dividends matter -- a lot In my view, Pfizer can deliver somewhat average stock market returns in the next two decades. However, there is something else to consider when looking at a stock's performance, especially over such long periods: dividends. Before you buy stock in Pfizer, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Pfizer wasn't one of them.
|
29d355e7-0032-4380-bd22-18e065daa443
|
711980.0
|
2023-12-13 00:00:00 UTC
|
This Week in ETFs: Themes ETFs Adds 8 New Funds
|
DCOMP
|
https://www.nasdaq.com/articles/this-week-in-etfs%3A-themes-etfs-adds-8-new-funds
|
nan
|
nan
|
The second full week of December saw a ramp-up in activity, with 20 launches and several closures. Newcomer ETF issuer Themes ETFs alone rolled out 8 new thematic ETFs. The week was also marked by launches from issuers such as BlackRock, Vanguard, Natixis, AllianceBernstein, Defiance, and InfraCap.
Themes’ new ETFs after making their debut last week and their respective expense ratios include the following:
Themes Cloud Computing ETF (CLOD), 0.35%
Themes Global Systematically Important Banks ETF (GSIB), 0.35%
Themes European Luxury ETF (FINE), 0.35%
Themes Gold Miners ETF (AUMI), 0.35%
Themes Natural Monopoly ETF (CZAR), 0.35%
Themes US Small Cap Cash Flow Champions ETF (SMFC), 0.29%
Themes US Cash Flow Champions ETF (USCF), 0.29%
Themes US R&D Champions ETF (USRD), 0.29%
The funds all track indexes provided by Solactive and are listed on the Nasdaq stock market.
More New ETFs
DWS also rolled out a fund during the week. The Xtrackers California Municipal Bond ETF (CA) tracks an index from ICE that covers debt issued by California’s state government and its agencies. The fund has an expense ratio of 0.15% and is listed on the Nasdaq stock market.
Finally, Touchstone launched the actively managed Touchstone Dynamic International ETF (TDI) on the Nasdaq stock exchange. The fund invests in foreign companies using a quantitative model that takes into account shifting risks, valuation, earnings, and company management among other criteria. It has an expense ratio of 0.65%.
Closures
A total of 17 ETFs closed during the week, with six owing to the maturing of some target maturity bond funds. Another handful of closures were also announced for early next year.
The week’s completed closures include the following:
Invesco BulletShares 2023 Corporate Bond ETF (BSCN)
Invesco BulletShares 2023 High Yield Corporate Bond ETF (BSJN)
Invesco BulletShares 2023 Municipal Bond ETF (BSMN)
iShares iBonds Dec 2023 Term Corporate ETF (IBDO)
iShares iBonds 2023 Term High Yield and Income ETF (IBHC)
iShares iBonds Dec 2023 Term Treasury ETF (IBTD)
JPMorgan Sustainable Consumption ETF (CIRC)
JPMorgan Social Advancement ETF (UPWD)
The Energy & Minerals Group EV, Solar & Battery Materials (Lithium, Nickel, Copper, Cobalt) Futures Strategy ETF (CHRG)
IQ U.S. Large Cap ETF (CLRG)
IQ Real Return ETF (CPI)
IQ Global Resources ETF (GRES)
IQ MacKay Multi-Sector Income ETF (MMSB)
IQ U.S. Mid Cap R&D Leaders ETF (MRND)
Roundhill BIG Bank ETF (BIGB)
Roundhill IO Digital Infrastructure ETF (BYTE)
Roundhill MEME ETF (MEME)
The following funds will cease to trade in the early months of next year:
Janus Henderson Sustainable & Impact Core Bond ETF (JIB)
V-Shares US Leadership Diversity ETF (VDNI)
V-Shares MSCI World ESG Materiality and Carbon Transition ETF (VMAT)
Other Changes
During the week two other ETFs made material changes during the week.
The FT Cboe Vest International Equity Buffer ETF - December (YDEC) changed its name to the FT Cboe Vest International Equity Moderate Buffer ETF – December today.
At the same time, the iShares North American Tech-Multimedia Networking ETF (IGN) changed its name and ticker to the iShares U.S. Digital Infrastructure and Real Estate ETF (DIGI). It switched its index from the S&P North American Technology Multimedia Networking Index to the S&P Data Center, Tower REIT, and Communications Equipment Index.
Next year at the start of February, the VictoryShares THB Mid Cap ESG ETF (MDCP) will change its name to the VictoryShares THB Mid Cap ETF.
For more news, information, and analysis, visit VettaFi | ETF Trends.
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.
|
The week was also marked by launches from issuers such as BlackRock, Vanguard, Natixis, AllianceBernstein, Defiance, and InfraCap. The FT Cboe Vest International Equity Buffer ETF - December (YDEC) changed its name to the FT Cboe Vest International Equity Moderate Buffer ETF – December today. Next year at the start of February, the VictoryShares THB Mid Cap ESG ETF (MDCP) will change its name to the VictoryShares THB Mid Cap ETF.
|
Themes’ new ETFs after making their debut last week and their respective expense ratios include the following: Themes Cloud Computing ETF (CLOD), 0.35% Themes Global Systematically Important Banks ETF (GSIB), 0.35% Themes European Luxury ETF (FINE), 0.35% Themes Gold Miners ETF (AUMI), 0.35% Themes Natural Monopoly ETF (CZAR), 0.35% Themes US Small Cap Cash Flow Champions ETF (SMFC), 0.29% Themes US Cash Flow Champions ETF (USCF), 0.29% Themes US R&D Champions ETF (USRD), 0.29% The funds all track indexes provided by Solactive and are listed on the Nasdaq stock market. The week’s completed closures include the following: Invesco BulletShares 2023 Corporate Bond ETF (BSCN) Invesco BulletShares 2023 High Yield Corporate Bond ETF (BSJN) Invesco BulletShares 2023 Municipal Bond ETF (BSMN) iShares iBonds Dec 2023 Term Corporate ETF (IBDO) iShares iBonds 2023 Term High Yield and Income ETF (IBHC) iShares iBonds Dec 2023 Term Treasury ETF (IBTD) JPMorgan Sustainable Consumption ETF (CIRC) JPMorgan Social Advancement ETF (UPWD) The Energy & Minerals Group EV, Solar & Battery Materials (Lithium, Nickel, Copper, Cobalt) Futures Strategy ETF (CHRG) IQ U.S. Large Cap ETF (CLRG) IQ Real Return ETF (CPI) IQ Global Resources ETF (GRES) IQ MacKay Multi-Sector Income ETF (MMSB) IQ U.S. Mid Cap R&D Leaders ETF (MRND) Roundhill BIG Bank ETF (BIGB) Roundhill IO Digital Infrastructure ETF (BYTE) Roundhill MEME ETF (MEME) The following funds will cease to trade in the early months of next year: Janus Henderson Sustainable & Impact Core Bond ETF (JIB) V-Shares US Leadership Diversity ETF (VDNI) V-Shares MSCI World ESG Materiality and Carbon Transition ETF (VMAT) Other Changes During the week two other ETFs made material changes during the week.
|
Themes’ new ETFs after making their debut last week and their respective expense ratios include the following: Themes Cloud Computing ETF (CLOD), 0.35% Themes Global Systematically Important Banks ETF (GSIB), 0.35% Themes European Luxury ETF (FINE), 0.35% Themes Gold Miners ETF (AUMI), 0.35% Themes Natural Monopoly ETF (CZAR), 0.35% Themes US Small Cap Cash Flow Champions ETF (SMFC), 0.29% Themes US Cash Flow Champions ETF (USCF), 0.29% Themes US R&D Champions ETF (USRD), 0.29% The funds all track indexes provided by Solactive and are listed on the Nasdaq stock market. The week’s completed closures include the following: Invesco BulletShares 2023 Corporate Bond ETF (BSCN) Invesco BulletShares 2023 High Yield Corporate Bond ETF (BSJN) Invesco BulletShares 2023 Municipal Bond ETF (BSMN) iShares iBonds Dec 2023 Term Corporate ETF (IBDO) iShares iBonds 2023 Term High Yield and Income ETF (IBHC) iShares iBonds Dec 2023 Term Treasury ETF (IBTD) JPMorgan Sustainable Consumption ETF (CIRC) JPMorgan Social Advancement ETF (UPWD) The Energy & Minerals Group EV, Solar & Battery Materials (Lithium, Nickel, Copper, Cobalt) Futures Strategy ETF (CHRG) IQ U.S. Large Cap ETF (CLRG) IQ Real Return ETF (CPI) IQ Global Resources ETF (GRES) IQ MacKay Multi-Sector Income ETF (MMSB) IQ U.S. Mid Cap R&D Leaders ETF (MRND) Roundhill BIG Bank ETF (BIGB) Roundhill IO Digital Infrastructure ETF (BYTE) Roundhill MEME ETF (MEME) The following funds will cease to trade in the early months of next year: Janus Henderson Sustainable & Impact Core Bond ETF (JIB) V-Shares US Leadership Diversity ETF (VDNI) V-Shares MSCI World ESG Materiality and Carbon Transition ETF (VMAT) Other Changes During the week two other ETFs made material changes during the week.
|
The second full week of December saw a ramp-up in activity, with 20 launches and several closures. Newcomer ETF issuer Themes ETFs alone rolled out 8 new thematic ETFs. The fund has an expense ratio of 0.15% and is listed on the Nasdaq stock market.
|
b2b5db36-fb0d-415f-97ef-5564c29b726c
|
711981.0
|
2023-12-13 00:00:00 UTC
|
Can Nvidia Stock Hit $1,000 in 2024?
|
DCOMP
|
https://www.nasdaq.com/articles/can-nvidia-stock-hit-%241000-in-2024
|
nan
|
nan
|
Leading accelerated computing player Nvidia (NASDAQ: NVDA) has emerged as a Wall Street darling amid the artificial intelligence (AI) frenzy of 2023. The launch of OpenAI's famous chatbot ChatGPT also highlighted the role of Nvidia's graphics processing units (GPUs) in training and deploying large language models (LLMs), which drive generative AI applications like ChatGPT. Subsequently, many enterprises started increasingly adopting generative AI technologies, further spurring demand for the company's AI chips. This has been a catalyst for Nvidia in 2023.
Nvidia's share price is up by nearly 219% this year, thanks to its position as a leading GPU provider in the ongoing AI revolution. Can the company continue this pace of share price growth and reach $1,000 per share in 2024? Let's find out.
Impressive financial performance
Nvidia has posted stellar financial performance in its fiscal 2024 third quarter (ending Oct. 29, 2023), with revenues soaring by 206% year over year to $18.1 billion and net income surging by 1,259% year over year to $9.2 billion.
The data center segment (which accounted for almost 80% of Nvidia's total revenues) saw revenues jump year over year by 279% to $14.5 billion. Additionally, while the company's gaming segment was grappling with an excessive inventory buildup of GPUs in the past year, it is now showing signs of recovery in line with the overall PC market. In the third quarter, the company's gaming business reported revenues of $2.86 billion, up 81% year over year.
Multiple AI-driven opportunities
Unsurprisingly, the data center business is the biggest near-term opportunity for Nvidia. CEO Jensen Huang expects data centers to spend nearly $1 trillion in the next four years on upgrading general computing to accelerated computing infrastructure -- thereby equipping themselves to handle complex AI workloads. With Nvidia accounting for nearly 91.4% of the enterprise GPU market (in 2021), the company's cutting-edge AI chips (H100 and upcoming H200) are well positioned to leverage this opportunity.
Furthermore, the demand for Nvidia's proprietary InfiniBand networking technology has grown fivefold year over year in the third quarter, to enhance scale and performance while training LLMs. At the end of the third quarter, Nvidia has already crossed the $10 billion annualized run rate for its networking solutions.
Rather than focusing only on hardware, Nvidia has also made significant strides in its software strategy. The company expects its software, support, and services offerings to rake in around $1 billion in annual revenues in fiscal 2024. Nvidia expects its DGX Cloud service and AI enterprise software to be used extensively to train and deploy LLMs.
Nvidia's software-hardware ecosystem has helped it build a highly sticky customer base.
High valuation may be a deterrent
As of this writing, Nvidia is trading at a price-to-sales (P/S) ratio of 25.9, far more than the median semiconductor industry valuation of 2.9. A few analysts also think that the company deserves this premium valuation based on its prowess in accelerated computing, market-leading AI-focused data center offerings, and stellar financial numbers.
However, some risks should not be ignored. The recent U.S. restrictions on the export of advanced AI chips to China are a significant challenge for the company. With several small chip players chasing Nvidia's nearly 90% share in the $7 billion Chinese chip market, the company's top line may take a hit in the coming quarters.
Nvidia's P/S ratio has also increased in tandem with the share price in 2023. Therefore, with the current valuation assuming near-perfect execution for the company, chances of future multiple expansion amid the current difficult geopolitical environment appear slim.
So let's assume that the average P/S ratio reverts to Nvidia's five-year average multiple of 22.58 (which is still quite high) in 2024. Analysts expect Nvidia's revenues to be nearly $90 billion in fiscal 2025 (ending Jan. 31, 2025). Multiplying these numbers gives us an estimate of Nvidia's market capitalization of $2 trillion in 2024 -- less than double the company's current market capitalization of $1.15 trillion. Assuming that the share count remains constant, we can expect Nvidia's share price to reach around $820 in the best scenarios.
Hence, even with highly optimistic back-of-napkin calculations, Nvidia does not seem to reach $1,000 per share in 2024. But that doesn't mean that there is no growth potential in this stock. A bullish price target of over $800 is also impressive -- suggesting an upside of more than 71% in the next 12 months.
As such, it makes sense for retail investors to consider buying a small stake in the stock, even at elevated levels.
Should you invest $1,000 in Nvidia right now?
Before you buy stock in Nvidia, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Nvidia wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
See the 10 stocks
*Stock Advisor returns as of December 11, 2023
Manali Bhade has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Leading accelerated computing player Nvidia (NASDAQ: NVDA) has emerged as a Wall Street darling amid the artificial intelligence (AI) frenzy of 2023. Additionally, while the company's gaming segment was grappling with an excessive inventory buildup of GPUs in the past year, it is now showing signs of recovery in line with the overall PC market. A few analysts also think that the company deserves this premium valuation based on its prowess in accelerated computing, market-leading AI-focused data center offerings, and stellar financial numbers.
|
Leading accelerated computing player Nvidia (NASDAQ: NVDA) has emerged as a Wall Street darling amid the artificial intelligence (AI) frenzy of 2023. Impressive financial performance Nvidia has posted stellar financial performance in its fiscal 2024 third quarter (ending Oct. 29, 2023), with revenues soaring by 206% year over year to $18.1 billion and net income surging by 1,259% year over year to $9.2 billion. With several small chip players chasing Nvidia's nearly 90% share in the $7 billion Chinese chip market, the company's top line may take a hit in the coming quarters.
|
Impressive financial performance Nvidia has posted stellar financial performance in its fiscal 2024 third quarter (ending Oct. 29, 2023), with revenues soaring by 206% year over year to $18.1 billion and net income surging by 1,259% year over year to $9.2 billion. The data center segment (which accounted for almost 80% of Nvidia's total revenues) saw revenues jump year over year by 279% to $14.5 billion. Before you buy stock in Nvidia, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Nvidia wasn't one of them.
|
The data center segment (which accounted for almost 80% of Nvidia's total revenues) saw revenues jump year over year by 279% to $14.5 billion. In the third quarter, the company's gaming business reported revenues of $2.86 billion, up 81% year over year. With Nvidia accounting for nearly 91.4% of the enterprise GPU market (in 2021), the company's cutting-edge AI chips (H100 and upcoming H200) are well positioned to leverage this opportunity.
|
1f603928-a70c-42bb-ac45-698c2b09c4a3
|
711982.0
|
2023-12-13 00:00:00 UTC
|
2 Hot Warren Buffett Stocks That Raised Their Dividends This Year
|
DCOMP
|
https://www.nasdaq.com/articles/2-hot-warren-buffett-stocks-that-raised-their-dividends-this-year
|
nan
|
nan
|
The equity portfolio of Warren Buffett's investment vehicle Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) is larger than the gross domestic products of many small countries. So you can imagine the rivers of dividend payments the portfolio takes in on an annual basis.
This year has been quite a gusher in that respect for Berkshire, as two of the portfolio's largest holdings declared dividend raises. Let's dig into the payout enhancements from those two big-name companies, Apple (NASDAQ: AAPL) and Bank of America (NYSE: BAC).
1. Apple
Of the two companies, Apple was the first to crank its distribution higher. It declared a 4% dividend raise in May, which pushed the quarterly payout to $0.24 per share. This doesn't exactly make it a high yielder at 0.5% based on the latest stock price.
Regardless, Apple is a cornerstone investment in Berkshire's stock portfolio, to the point where the tech giant comprises a whopping 49% of it. All told, the Berkshire Apple position is worth more than $178 billion at the current share price.
With that kind of commitment, you can bet that Buffett and company are among Apple's most significant and committed bulls. That belief in the company is paying off with the increased dividends -- the May raise marked the 11th year in a row it has upped the payout.
That low yield aside, in other ways Apple has been showing the characteristics of a mature dividend stock with modest growth (or even slight declines, as the company has reported in recent quarters).
Yet the foundational iPhone, now in its 15th (!) iteration, continues to be a hot seller, and services revenue keeps climbing to new highs. Meanwhile, as ever, management is doing a good job of keeping up those comparatively quite lofty net margins (26% in the most recently reported quarter).
We should never thoughtlessly copy the moves of a popular investor or portfolio manager. But Apple is a strong company that generates geysers of cash, and is happy to return a bit of it to its investors.
2. Bank of America
Any guesses as to which storied lender has the second-highest weighting in Berkshire's hallowed equity portfolio? Correct! It's Bank of America (NYSE: BAC), which comprises just under 9% of the total. After the Federal Reserve's recent set of (broadly quite successful) bank stress tests, Bank of America declared a dividend raise of 9%, to $0.24 per share per quarterly distribution. These days, that yields 3%.
The health of a bank is due to prudent management, of course, but it also depends rather heavily on the health of its economy.
Yes, Americans remain worried about inflation eating into their paychecks, but for the most part growth continues to be in the cards. When an economy is thriving, business and individual confidence tend to rise, and those entities are inclined to borrow more money. That, of course, is the core activity of traditional banks.
As a highly visible lender in the U.S., Bank of America has been reaping the benefits of being a major operator in the economy.
In its latest reported quarter, the company managed to increase both its loans and leases outstanding and its credit/debit card spend by around 3% from a year earlier. Not coincidentally, total revenue also advanced by that figure. Combined with increased efficiency engineered by a good management team, net income rose at a sturdy 10% clip.
Meanwhile, within the bank's results were some very encouraging developments. For example, it managed to increase its count of relationships in the lucrative global wealth and investment management segment by 20%. And its global markets division produced 8% growth in securities sales and trading revenue.
As long as the U.S. economy is more or less humming along, Bank of America should continue to do well. And Buffett and his team will continue to own plenty of it.
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 11, 2023
Bank of America is an advertising partner of The Ascent, a Motley Fool company. Eric Volkman has positions in Apple. The Motley Fool has positions in and recommends Apple, Bank of America, and Berkshire Hathaway. 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.
|
Let's dig into the payout enhancements from those two big-name companies, Apple (NASDAQ: AAPL) and Bank of America (NYSE: BAC). That low yield aside, in other ways Apple has been showing the characteristics of a mature dividend stock with modest growth (or even slight declines, as the company has reported in recent quarters). In its latest reported quarter, the company managed to increase both its loans and leases outstanding and its credit/debit card spend by around 3% from a year earlier.
|
The equity portfolio of Warren Buffett's investment vehicle Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) is larger than the gross domestic products of many small countries. After the Federal Reserve's recent set of (broadly quite successful) bank stress tests, Bank of America declared a dividend raise of 9%, to $0.24 per share per quarterly distribution. 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.
|
After the Federal Reserve's recent set of (broadly quite successful) bank stress tests, Bank of America declared a dividend raise of 9%, to $0.24 per share per quarterly distribution. Before you buy stock in Apple, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Apple wasn’t one of them. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Bank of America is an advertising partner of The Ascent, a Motley Fool company.
|
As long as the U.S. economy is more or less humming along, Bank of America should continue to do well. And Buffett and his team will continue to own plenty of it. The Motley Fool has positions in and recommends Apple, Bank of America, and Berkshire Hathaway.
|
f7bbd770-b90d-4e62-b839-f3c7aa2be61f
|
711983.0
|
2023-12-13 00:00:00 UTC
|
Up 94% in 2023, Can Tesla Stock Maintain the Momentum in 2024?
|
DCOMP
|
https://www.nasdaq.com/articles/up-94-in-2023-can-tesla-stock-maintain-the-momentum-in-2024
|
nan
|
nan
|
Fool.com contributor Parkev Tatevosian highlights the phenomenal year Tesla's (NASDAQ: TSLA) stock price had in 2023. Also, he includes a discussion of Tesla's longer-term prospects and answers if investors should buy the EV stock for 2024.
*Stock prices used were the afternoon prices of Dec. 13, 2023. The video was published on Dec. 15, 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
Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy.
Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Fool.com contributor Parkev Tatevosian highlights the phenomenal year Tesla's (NASDAQ: TSLA) stock price had in 2023. Also, he includes a discussion of Tesla's longer-term prospects and answers if investors should buy the EV stock for 2024. After all, the newsletter they have run for two decades, Motley Fool Stock Advisor, has more than tripled the market.
|
Fool.com contributor Parkev Tatevosian highlights the phenomenal year Tesla's (NASDAQ: TSLA) stock price had in 2023. 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 Parkev Tatevosian, CFA has no position in any of the stocks mentioned.
|
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 Parkev Tatevosian, CFA has no position in any of the stocks mentioned.
|
Fool.com contributor Parkev Tatevosian highlights the phenomenal year Tesla's (NASDAQ: TSLA) stock price had in 2023. The Motley Fool has positions in and recommends Tesla. His opinions remain his own and are unaffected by The Motley Fool.
|
e6852c1f-c728-42e7-9208-3533b310e541
|
711984.0
|
2023-12-13 00:00:00 UTC
|
Meet the Boring Stock That's Absolutely Crushing Amazon
|
DCOMP
|
https://www.nasdaq.com/articles/meet-the-boring-stock-thats-absolutely-crushing-amazon
|
nan
|
nan
|
When it comes to the stock performance of long-term investments, there aren't many stocks that can hold a candle to Amazon. Investors who bought shares in the e-commerce giant 10 years ago have gotten quite a windfall, reaping gains of more than 667% (as of Thursday's market close). This isn't surprising given its market dominance and consistent execution.
Investors might be surprised to learn that a particularly boring company, Axon Enterprise (NASDAQ: AXON), absolutely crushed Amazon's results over the past decade, generating gains of 1,530%. In fact, it's probably fair to say that many investors have never even heard of this company, though they're likely familiar with its flagship product.
Let's take a look at what Axon does, and why investors should give this compelling growth story a serious look.
Image source: Axon Industries.
Taser and more
Axon Enterprises is best known for its flagship Taser stun gun used by law enforcement, which still represents a large part of the company's business. In the third quarter, the Taser segment generated revenue that grew 12% year over year to $162.6 million, representing 39% of Axon's revenue. While Taser forms the foundation of Axon's business, the company has evolved over the years.
The company is also the market leader in body cameras worn by law enforcement officers, in-car cameras, and sensors that make up a vital part of its offerings. Revenue from the segment grew 45% year over year to $103 million in the third quarter, accounting for 25% of the company's revenue.
The largest opportunity, however, is Axon's cloud services, which offer a suite of digital evidence management, productivity, and real-time operations capabilities. This is unquestionably the company's fastest-growing segment, up 55% year over year to $148 million, representing 36% of its sales and within striking distance of becoming Axon's biggest revenue generator.
Perhaps as importantly, a growing portion of the revenue is recurring as more customers adopt Axon's subscription-based software-as-a-service (SaaS) offerings, laying a solid foundation for future growth.
Axon is a boring financial powerhouse
Axon's consistent financial results underpinned the stock's relentless climb higher. In the third quarter, the company generated total revenue that grew 33% year over year to $414 million, driven by gains across its product segments, as outlined above.
Lest there be any question, the recent results aren't an outlier, but part of a pattern of consistent and reliable, though somewhat boring, growth. In fact, over the past 10 years, Axon's revenue increased by 933%, a compound annual growth rate (CAGR) of 28%. At the same time, net income has increased by more than 1,000%, for a CAGR just short of 28%. As a result, the stock price has risen 1,500%, generating gains for investors of roughly 32% annually.
Furthermore, management expects the company's growth streak to continue. Axon just increased its guidance and is now forecasting full-year revenue of $1.55 billion, representing growth of 30%. This is up from the company's previous outlook, which called for growth of between 27% and 29%. Management is also guiding for a commensurate increase in operating profits, calling for a full-year adjusted EBITDA margin of 20.8%, up from its previous estimate of 20%.
Not bad for a boring company.
This could be just the beginning for Axon
As impressive as the past decade has been, Axon still has a vast, largely untapped opportunity. The company has achieved a market penetration of 35% in the U.S. for the Taser and just 14% for its body camera. There's also an ongoing international expansion that's just getting started. In its commonwealth countries, which include the United Kingdom, Canada, Australia, and New Zealand, penetration for the Taser and body cams has reached 22% and 30%, respectively, while in Europe it's 3% and 1%, respectively.
This helps to illustrate the significant market opportunity ahead. In all, management estimates its total addressable market, which includes Taser, body cameras, digital evidence management, and real-time operations and productivity software, at roughly $50 billion. When viewed in the context of its 2022 revenue of $1.2 billion, this shows the long runway ahead.
Finally, there's the matter of valuation. Axon is currently trading for 65 times forward earnings, higher than the forward price-to-earnings ratio of 55 for Amazon. However, given the fact that Axon stock has more than doubled the gains of Amazon, it's obviously deserving of a premium.
Now's the time to time to buy Axon stock, before the next decade of Amazon-crushing gains.
Should you invest $1,000 in Axon Enterprise right now?
Before you buy stock in Axon Enterprise, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Axon Enterprise 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. Danny Vena has positions in Amazon. The Motley Fool has positions in and recommends Amazon and Axon Enterprise. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
The largest opportunity, however, is Axon's cloud services, which offer a suite of digital evidence management, productivity, and real-time operations capabilities. Perhaps as importantly, a growing portion of the revenue is recurring as more customers adopt Axon's subscription-based software-as-a-service (SaaS) offerings, laying a solid foundation for future growth. In its commonwealth countries, which include the United Kingdom, Canada, Australia, and New Zealand, penetration for the Taser and body cams has reached 22% and 30%, respectively, while in Europe it's 3% and 1%, respectively.
|
Investors might be surprised to learn that a particularly boring company, Axon Enterprise (NASDAQ: AXON), absolutely crushed Amazon's results over the past decade, generating gains of 1,530%. In the third quarter, the Taser segment generated revenue that grew 12% year over year to $162.6 million, representing 39% of Axon's revenue. In all, management estimates its total addressable market, which includes Taser, body cameras, digital evidence management, and real-time operations and productivity software, at roughly $50 billion.
|
Investors might be surprised to learn that a particularly boring company, Axon Enterprise (NASDAQ: AXON), absolutely crushed Amazon's results over the past decade, generating gains of 1,530%. In the third quarter, the Taser segment generated revenue that grew 12% year over year to $162.6 million, representing 39% of Axon's revenue. Before you buy stock in Axon Enterprise, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Axon Enterprise wasn't one of them.
|
Investors might be surprised to learn that a particularly boring company, Axon Enterprise (NASDAQ: AXON), absolutely crushed Amazon's results over the past decade, generating gains of 1,530%. In the third quarter, the company generated total revenue that grew 33% year over year to $414 million, driven by gains across its product segments, as outlined above. Before you buy stock in Axon Enterprise, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Axon Enterprise wasn't one of them.
|
9643cab3-2f93-4c84-b83b-1f95b47557e2
|
711985.0
|
2023-12-13 00:00:00 UTC
|
2 Stocks to Buy Before They Take Off
|
DCOMP
|
https://www.nasdaq.com/articles/2-stocks-to-buy-before-they-take-off-3
|
nan
|
nan
|
Pinpointing which stocks are set for massive upside is key to becoming a successful investor. While you can never be certain what a stock will do, there are clues you can find that could lead you to those conclusions.
In my opinion, Amazon (NASDAQ: AMZN) and Airbnb (NASDAQ: ABNB) are set to take off in 2024. Both are well-positioned to grow in the coming year, and each also looks attractive from a valuation standpoint.
Amazon
Amazon stock has had a successful 2023, rising about 75%. With a year like that, many investors would be forgiven for thinking that Amazon is slated for a rough 2024. But they'd be wrong.
Amazon entered 2023 at an astonishingly low valuation. Unfortunately, none of us can return and take out a second mortgage to pile into it, so we're left with the next best thing: Buying it now.
For Amazon, 2023 has been a successful year primarily because it improved its efficiency. CEO Andy Jassy has been working on resolving some of the growth-at-all-costs measures that Jeff Bezos initiated before moving on from the CEO role. The job isn't finished yet, and Amazon is working on becoming even more efficient.
But the results so far have been outstanding. In Q3, Amazon produced an impressive $8.7 billion in free cash flow. It was the second straight quarter of Amazon producing positive cash flow following a period of negative results that began in 2021, and shows that its efficiency measures are working out.
This same effect can be seen in Amazon's rising operating margins.
AMZN Operating Margin (Quarterly) data by YCharts.
If Amazon can sustain these gains, it will piece together a full year of strong profits -- something it hasn't done. As a result, the market has yet to see Amazon's true potential, making it an exciting stock heading into 2024.
Airbnb
In the years since it became a public company, Airbnb hasn't received much respect from investors. Constant fears of recessions harming the business and municipalities banning short-term rentals have prevented the stock from reaching its potential.
Even though these fears and issues are still prevalent, they haven't affected Airbnb's business much. In Q3, revenue rose 18% year over year to $3.4 billion. Airbnb is also a cash flow machine, converting 38% of its revenue into free cash flow. This makes Airbnb one of the best cash-generating businesses out there, yet the company isn't valued like it.
Despite growing faster and having better margins than many tech giants (and Airbnb should be valued like a tech stock because the business is essentially travel booking software), Airbnb is valued at a much lower level.
MSFT Price to Free Cash Flow data by YCharts.
This makes Airbnb appear undervalued, and the management team agrees. In Q3, it spent $500 million on share repurchases -- well in excess of the $286 million it distributed in stock-based compensation. Over the past year, its buyback program has allowed Airbnb to reduce its outstanding share count by about 2.4%.
Over time, this should add significant value to its remaining outstanding shares. Plus, it's only spending around a third of its free cash flow output on buybacks, so it can stockpile plenty of cash for acquisitions and has lots of room to accelerate its pace of buybacks if management chooses to.
Will 2024 be the year Airbnb finally gets respect from Wall Street? I'm not sure. But with strong growth and stock buybacks powering improved earnings, right now looks like an excellent time to become an Airbnb shareholder.
Should you invest $1,000 in Amazon right now?
Before you buy stock in Amazon, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Amazon wasn't one of them. 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. Keithen Drury has positions in Airbnb and Amazon. The Motley Fool has positions in and recommends Airbnb and Amazon. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
It was the second straight quarter of Amazon producing positive cash flow following a period of negative results that began in 2021, and shows that its efficiency measures are working out. Constant fears of recessions harming the business and municipalities banning short-term rentals have prevented the stock from reaching its potential. But with strong growth and stock buybacks powering improved earnings, right now looks like an excellent time to become an Airbnb shareholder.
|
It was the second straight quarter of Amazon producing positive cash flow following a period of negative results that began in 2021, and shows that its efficiency measures are working out. AMZN Operating Margin (Quarterly) data by YCharts. Before you buy stock in Amazon, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Amazon wasn't one of them.
|
Amazon Amazon stock has had a successful 2023, rising about 75%. Before you buy stock in Amazon, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Amazon wasn't one of them. 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.
|
Amazon Amazon stock has had a successful 2023, rising about 75%. It was the second straight quarter of Amazon producing positive cash flow following a period of negative results that began in 2021, and shows that its efficiency measures are working out. Before you buy stock in Amazon, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Amazon wasn't one of them.
|
29bff1a6-bd8a-4462-9fae-3a59d0780252
|
711986.0
|
2023-12-13 00:00:00 UTC
|
Coca-Cola Doesn't Make Money Selling Cans of Soda. Here's What It Sells Instead.
|
DCOMP
|
https://www.nasdaq.com/articles/coca-cola-doesnt-make-money-selling-cans-of-soda.-heres-what-it-sells-instead.
|
nan
|
nan
|
Coca-Cola (NYSE: KO) doesn't even make most of the cans of Coca-Cola you see; it's making something else entirely. Most of the beverage giant's revenue comes from selling syrup and concentrates to bottlers, who are on the front lines selling Coca-Cola's products.
In this video, Travis Hoium explains how the business works and why Coca-Cola has outsourced bottling in the U.S. and around the world.
*Stock prices used were end-of-day prices of Dec. 12, 2023. The video was published on Dec. 13, 2023.
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
Travis Hoium has no position in any of the stocks mentioned. The Motley Fool recommends Kraft Heinz and recommends the following options: long January 2024 $47.50 calls on Coca-Cola. 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.
|
In this video, Travis Hoium explains how the business works and why Coca-Cola has outsourced bottling in the U.S. and around the world. 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.
|
In this video, Travis Hoium explains how the business works and why Coca-Cola has outsourced bottling in the U.S. and around the world. 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 Travis Hoium has no position in any of the stocks mentioned.
|
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 Travis Hoium has no position in any of the stocks mentioned.
|
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 no position in any of the stocks mentioned. Travis Hoium is an affiliate of The Motley Fool and may be compensated for promoting its services.
|
68041bd2-0d58-4c6e-b003-327650a18d58
|
711987.0
|
2023-12-13 00:00:00 UTC
|
McDonald's Makes a Wild Bet on the Future of Food
|
DCOMP
|
https://www.nasdaq.com/articles/mcdonalds-makes-a-wild-bet-on-the-future-of-food
|
nan
|
nan
|
The new CosMc's brand is here and McDonald's (NYSE: MCD) is making a big bet on the future of smaller-footprint, drink-centric products. It makes sense given the changes in consumer behavior over the past five years.
In this video, Travis Hoium goes over why McDonald's may be seeing opportunities in drinks and new restaurant brands that aren't focused on burgers and fries.
*Stock prices used were end-of-day prices of Dec. 12, 2023. The video was published on Dec. 13, 2023.
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
Travis Hoium has positions in Portillo's. The Motley Fool has positions in and recommends Chipotle Mexican Grill, Domino's Pizza, and Starbucks. 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.
|
The new CosMc's brand is here and McDonald's (NYSE: MCD) is making a big bet on the future of smaller-footprint, drink-centric products. In this video, Travis Hoium goes over why McDonald's may be seeing opportunities in drinks and new restaurant brands that aren't focused on burgers and fries. The Motley Fool has positions in and recommends Chipotle Mexican Grill, Domino's Pizza, and Starbucks.
|
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 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 Portillo's.
|
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. 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 Portillo's.
|
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 Travis Hoium has positions in Portillo's. Their opinions remain their own and are unaffected by The Motley Fool.
|
37a5c7f9-07ef-4daa-866d-bb2f97c0c9d7
|
711988.0
|
2023-12-13 00:00:00 UTC
|
Is Toast Stock a Buy?
|
DCOMP
|
https://www.nasdaq.com/articles/is-toast-stock-a-buy
|
nan
|
nan
|
Toast (NYSE: TOST) has been a poor-performing stock since coming public, but the business itself is doing well. More restaurants are adopting the company's technology and revenue growth has been astronomical.
In this video, Travis Hoium covers the company's growth and why investors will still want to be cautious with Toast stock.
*Stock prices used were end-of-day prices of Dec. 12, 2023. The video was published on Dec. 13, 2023.
Should you invest $1,000 in Toast right now?
Before you buy stock in Toast, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Toast 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 Block and PayPal. The Motley Fool has positions in and recommends Block and PayPal. The Motley Fool recommends Toast and recommends the following options: short December 2023 $67.50 puts on PayPal. 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.
|
Toast (NYSE: TOST) has been a poor-performing stock since coming public, but the business itself is doing well. In this video, Travis Hoium covers the company's growth and why investors will still want to be cautious with Toast stock. The 10 stocks that made the cut could produce monster returns in the coming years.
|
Before you buy stock in Toast, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Toast wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Travis Hoium has positions in Block and PayPal. The Motley Fool recommends Toast and recommends the following options: short December 2023 $67.50 puts on PayPal.
|
In this video, Travis Hoium covers the company's growth and why investors will still want to be cautious with Toast stock. Before you buy stock in Toast, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Toast wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Travis Hoium has positions in Block and PayPal.
|
In this video, Travis Hoium covers the company's growth and why investors will still want to be cautious with Toast stock. Before you buy stock in Toast, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Toast wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Travis Hoium has positions in Block and PayPal.
|
e5a87db8-35e5-4e26-8efa-d442f1ed1f65
|
711989.0
|
2023-12-13 00:00:00 UTC
|
Forget Aurora Cannabis: 1 Cannabis Stock With Far Better Prospects
|
DCOMP
|
https://www.nasdaq.com/articles/forget-aurora-cannabis%3A-1-cannabis-stock-with-far-better-prospects
|
nan
|
nan
|
Point ... counterpoint.
One week ago, I made the case for why Canadian cannabis stock Aurora Cannabis (NASDAQ: ACB) could be "a screaming buy" right now. And I have to say, the case seems strong.
Aurora Cannabis is just coming off a quarter in which it reported 30% year-over-year sales growth, a quarter in which it reported its highest level of gross profitability since mid-2020, and two straight quarters of historic levels of ... well, not profits exactly, but historically low losses on its business. Furthermore, with a plan to cut costs by a further $40 million per year, Aurora Cannabis might be able to push the company over the threshold to honest-to-goodness positive GAAP profits in 2025 or even 2024.
What's more, even if Aurora Cannabis fails to achieve profitability this year, or even next year, the company's management has already promised something arguably even more significant: To generate positive free cash flow in 2024, such that the company would become internally self-funding, and no longer need to take out loans, or sell stock, in order to keep itself solvent.
Long story short, there are many reasons to believe that Aurora Cannabis is on the cusp of becoming a great marijuana investment story.
But if you'll forgive me for pointing this out, there's one marijuana stock that I think is even better.
Introducing Green Thumb Industries
Along with its fellow Canadian cannabis company Canopy Growth (NASDAQ: CGC), which bears the inspired Toronto Stock Exchange ticker "WEED," Aurora Cannabis is probably one of the two best-known marijuana stocks on the market. With only $37 million in negative free cash flow so far this year, it's also burning a whole lot less cash than Canopy Growth (which has burned through $170 million).
And with its promise to turn free cash flow-positive in 2024, Aurora Cannabis appears well positioned to outperform its peer in coming years.
Yet even so, neither well-known Aurora Cannabis nor Canopy Growth strike me as the absolute best cannabis stock to own right now. Instead of either of these Nasdaq-listed Canadian stocks, I see a whole lot more potential in a lesser-known marijuana company that is listed in Canada, but headquartered in the United States -- Chicago-owned and operated Green Thumb Industries (OTC: GTBIF).
Compare the companies and you'll quickly see why. Whereas both Aurora Cannabis and Canopy Growth are still struggling to achieve positive earnings and positive free cash flow, Green Thumb has already achieved both these goals. For three straight years, from 2020 to 2022, it reported positive GAAP profits. (The company was also profitable last quarter, and analyst forecasts see positive earnings again through the end of this year.) In 2020, its free cash flow was also positive, and it came close in both 2021 and 2022.
Green Thumb is looking even closer today, with trailing 12-month results showing it just $20 million away from FCF-breakeven. And if analysts are right in their guesses, Green Thumb will succeed in regaining positive free cash flow status by next year at the latest. Forecasts compiled by S&P Global Market Intelligence, for example, show the company generating positive cash profits of $114 million in 2024 -- then more than doubling that number to pass $248 million in 2027.
Valuing Green Thumb Industries
At a valuation of $2.8 billion, Green Thumb currently trades for just 11 times 2027 free cash flow -- and barely 9 times 2027 free cash flow.
Admittedly, the stock looks a bit pricey at 64 times this year's forecast earnings. But when it comes to having "far better prospects" than Aurora Cannabis, which hasn't yet definitively proven it can turn a profit, I'd say that Green Thumb -- which has proven this -- probably fits that bill.
The wild card: Legalization
Final point: For investors who aren't yet entirely convinced that the U.S. government will never get around to officially legalizing marijuana at the federal level, I think it almost goes without saying that a U.S. company like Green Thumb is better positioned to capitalize upon such a development than foreign-based companies like Aurora Cannabis or Canopy Growth.
For one thing, there's the geographic proximity. For another, Green Thumb boasts a superior market capitalization of $2.7 billion -- making it three times bigger than Aurora Cannabis and Canopy Growth combined. For a third, Green Thumb already boasts annual sales in excess of $1 billion (versus about $600 million total between Aurora and Canopy). That's a pretty impressive achievement for a company selling marijuana in a country where it's "illegal," compared to two other companies selling it in places where it's "legal."
If it's prospects you want, just imagine how much more marijuana Green Thumb Industries will be able to sell, once it finally becomes legal to sell it on the U.S. national level.
10 stocks we like better than Green Thumb Industries
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Green Thumb Industries wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of December 4, 2023
Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Green Thumb Industries. 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.
|
Furthermore, with a plan to cut costs by a further $40 million per year, Aurora Cannabis might be able to push the company over the threshold to honest-to-goodness positive GAAP profits in 2025 or even 2024. Instead of either of these Nasdaq-listed Canadian stocks, I see a whole lot more potential in a lesser-known marijuana company that is listed in Canada, but headquartered in the United States -- Chicago-owned and operated Green Thumb Industries (OTC: GTBIF). For another, Green Thumb boasts a superior market capitalization of $2.7 billion -- making it three times bigger than Aurora Cannabis and Canopy Growth combined.
|
Aurora Cannabis is just coming off a quarter in which it reported 30% year-over-year sales growth, a quarter in which it reported its highest level of gross profitability since mid-2020, and two straight quarters of historic levels of ... well, not profits exactly, but historically low losses on its business. Whereas both Aurora Cannabis and Canopy Growth are still struggling to achieve positive earnings and positive free cash flow, Green Thumb has already achieved both these goals. Valuing Green Thumb Industries At a valuation of $2.8 billion, Green Thumb currently trades for just 11 times 2027 free cash flow -- and barely 9 times 2027 free cash flow.
|
What's more, even if Aurora Cannabis fails to achieve profitability this year, or even next year, the company's management has already promised something arguably even more significant: To generate positive free cash flow in 2024, such that the company would become internally self-funding, and no longer need to take out loans, or sell stock, in order to keep itself solvent. Introducing Green Thumb Industries Along with its fellow Canadian cannabis company Canopy Growth (NASDAQ: CGC), which bears the inspired Toronto Stock Exchange ticker "WEED," Aurora Cannabis is probably one of the two best-known marijuana stocks on the market. The wild card: Legalization Final point: For investors who aren't yet entirely convinced that the U.S. government will never get around to officially legalizing marijuana at the federal level, I think it almost goes without saying that a U.S. company like Green Thumb is better positioned to capitalize upon such a development than foreign-based companies like Aurora Cannabis or Canopy Growth.
|
What's more, even if Aurora Cannabis fails to achieve profitability this year, or even next year, the company's management has already promised something arguably even more significant: To generate positive free cash flow in 2024, such that the company would become internally self-funding, and no longer need to take out loans, or sell stock, in order to keep itself solvent. With only $37 million in negative free cash flow so far this year, it's also burning a whole lot less cash than Canopy Growth (which has burned through $170 million). (The company was also profitable last quarter, and analyst forecasts see positive earnings again through the end of this year.)
|
dca12acc-9b47-43ee-abbb-0f32f3735191
|
711990.0
|
2023-12-13 00:00:00 UTC
|
Planet Labs Is No Longer a Growth Stock
|
DCOMP
|
https://www.nasdaq.com/articles/planet-labs-is-no-longer-a-growth-stock
|
nan
|
nan
|
Bad news, investor: Planet Labs is probably not the space stock you're looking for anymore.
Once upon a time, Planet Labs (NYSE: PL) was a growth stock -- and boy oh boy was it ever growing fast!
Preparing for its December 2021 coming public via a special purpose acquisition company (SPAC) transaction, the owner of the world's largest constellation of Earth observation satellites laid out a story of consistent and enduring growth as it put its new IPO money to work. Accelerating from a mid-teens growth rate pre-IPO, Planet Labs would grow its sales at an annual compound rate of about 44% over a five-year time span. It would expand its non-GAAP gross-profit margins from 40% to 74%, turn free-cash-flow positive by 2024, and generate positive free cash flow of 20% or more.
Somewhere along the way, however, things went horribly wrong.
Stage 1: Trajectory nominal
Initially at least, this story appeared to be playing out according to plan. The company's first quarterly-earnings report as a public company showed Planet Labs posting impressive profits growth. Sales began accelerating toward the targeted 40% range as well. Planet Labs even won part of a massive U.S. National Reconnaissance Office (NRO) spy satellite contract that seemed likely to add hundreds of millions of dollars to its revenue stream.
By late 2022, however, worrisome trends began to emerge. After posting strong, 46% sales growth in its first post-IPO year, and a sizable expansion in profit margin, growth forecasts began to come down in a big way. 2023 growth would not be in the 40% range promised but somewhere in the low-to-mid-30s. And as 2022 shifted into 2023, that growth number got rolled back even further.
After growing 31% in 2023's first quarter, Planet Labs grew its revenues only 11% in Q2 this year. And when the company reported its latest sales last week, the number was again just 11% growth.
Q3: Planet Labs by the numbers
Don't get me wrong. Planet Lab's performance in fiscal Q3 2024 wasn't horrible. It was just...ho-hum.
Sales for the quarter came in near the high end of management's $54 million to $56 million projection -- $55.4 million, to be precise. Gross-profit margins maxed out management's guidance for a 50% to 52% range. And capital spending was much less than expected -- only $7.4 million according to data from S&P Global Market Intelligence, much less than management's capex prediction as high as $14 million.
That being said, with operating cash flow turning sharply negative in the quarter, Planet Labs remains far away from generating real free cash flow. Over the course of the quarter, the company burned $30.3 million, bringing total free cash flow for the year to date to negative $73 million. This was better than last year when Planet Labs burned $68.1 million over its first three quarters -- but not a lot better.
Meanwhile, Planet's 11% growth rate in fiscal Q3 2024 was a lot slower than the 57% growth rate it posted in last year's Q3. And profit margins on Planet's revenues actually slipped a bit. Gross-profit margin dropped two percentage points year over year. Non-GAAP gross margins declined by three percentage points.
From ho-hum to horrible
And it gets worse. Turning to guidance for the fourth and final quarter of its fiscal 2024, Planet Labs warned that sales are going to slow even further at the tail end of the year. Management is guiding for sales of $56 million to $59 million in Q4, with non-GAAP gross margins between 52% and 56%. So profit margins and sales will both grow sequentially. That's the good news. But sales will still rise only 8.5% year over year, continuing what's really starting to look like a trend of sharply decelerating growth.
And that's the bad news.
When all's said and done, it appears Planet Labs will end fiscal 2024 with a 15% sales-growth rate -- less than one-third of the 51% growth rate it was promising for this year back in 2021.
Is Planet Labs stock a sell?
And yet, despite all the bad news, I still own shares of Planet Labs stock myself.
Even if growth looks slow now, I have to figure that this space stock had some reason to believe it would be able to grow at 40%, 50%, and more. It may just need a bit more time than it (overoptimistically) thought it would need to get there. I figure I can give the company one more year to prove that it wasn't just whistling Dixie.
Also, to be honest, the company's not in such dire financial straits that I feel a need to sell immediately. Cash reserves ($300 million-plus) look ample to support an annualized cash-burn rate of $100 million or so for a few more years. Indeed, at last report, nearly half of Planet Labs' valuation is made up of cash in the bank, cash equivalents, and short-term securities.
I also still have hope that the company's vaunted NRO contract (which turns out to be worth about $146 million over its first five years) might turn out to be worth more than that if extended over a full decade. I may be wrong about that, but...fingers crossed.
Should you invest $1,000 in Planet Labs Pbc right now?
Before you buy stock in Planet Labs Pbc, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Planet Labs Pbc 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
Rich Smith has positions in Planet Labs Pbc. 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.
|
Preparing for its December 2021 coming public via a special purpose acquisition company (SPAC) transaction, the owner of the world's largest constellation of Earth observation satellites laid out a story of consistent and enduring growth as it put its new IPO money to work. Planet Labs even won part of a massive U.S. National Reconnaissance Office (NRO) spy satellite contract that seemed likely to add hundreds of millions of dollars to its revenue stream. Turning to guidance for the fourth and final quarter of its fiscal 2024, Planet Labs warned that sales are going to slow even further at the tail end of the year.
|
It would expand its non-GAAP gross-profit margins from 40% to 74%, turn free-cash-flow positive by 2024, and generate positive free cash flow of 20% or more. That being said, with operating cash flow turning sharply negative in the quarter, Planet Labs remains far away from generating real free cash flow. Before you buy stock in Planet Labs Pbc, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Planet Labs Pbc wasn't one of them.
|
Meanwhile, Planet's 11% growth rate in fiscal Q3 2024 was a lot slower than the 57% growth rate it posted in last year's Q3. When all's said and done, it appears Planet Labs will end fiscal 2024 with a 15% sales-growth rate -- less than one-third of the 51% growth rate it was promising for this year back in 2021. Before you buy stock in Planet Labs Pbc, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Planet Labs Pbc wasn't one of them.
|
Q3: Planet Labs by the numbers Don't get me wrong. Is Planet Labs stock a sell? Before you buy stock in Planet Labs Pbc, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Planet Labs Pbc wasn't one of them.
|
a8a5aa89-9c66-47c3-8313-9db3476088ec
|
711991.0
|
2023-12-13 00:00:00 UTC
|
The Best E-Commerce Company On the Planet That You Probably Haven't Heard Of Yet
|
DCOMP
|
https://www.nasdaq.com/articles/the-best-e-commerce-company-on-the-planet-that-you-probably-havent-heard-of-yet
|
nan
|
nan
|
If asked to name an e-commerce company, most investors will resort to names like Amazon, Shopify, Alibaba, and MercadoLibre. These are good answers, since all these companies have become successful on their turf.
Still, most investors would have left out one name that has become as successful as these incumbents but remains relatively low-profile. This article aims to bring the company -- the young and rising PDD Holdings (NASDAQ: PDD), better known as Pinduoduo -- onto investors' radar.
Image source: Getty Images.
An impeccable track record of growth
Founded in 2015, Pinduoduo had an unprecedented rise to become one of China's top three e-commerce platforms. Consider this. Alibaba and JD.com took nine and 13 years, respectively, to reach $100 billion in gross merchandise value (GMV). Comparatively, Pinduoduo achieved that in less than four years, by 2019. That year, it delivered a revenue of 30 billion yuan ($4.3 billion).
But it didn't stop there. By 2022, revenue had already reached 131 billion yuan ($18.9 billion). Pinduoduo's rise has resulted from having the right strategies and executing them well over time. For example, the company built its platform as a mobile-first when incumbents like Alibaba and JD.com grew their businesses mainly in the PC era, capturing new users who came online for the first time via cheap smartphones.
Pinduoduo also focused intensively on low prices, which attracted early users from rural areas. This low-price strategy became its hallmark as Pinduoduo expanded beyond its early cohort into the cities in recent years.
On top of that, Pinduoduo has used the proper marketing techniques at different stages of its development. For instance, in the early days, it encouraged existing customers to share deals and coupons with family and friends via WeChat to grow its user base. But as it gained scale, it started advertising nationally on TV to build consumer awareness and attract even more customers.
In short, Pinduoduo has demonstrated an incredible track record of execution in China. Now, it is using its experience over the years to build a cross-border e-commerce business (more in the next section).
Expanding into overseas markets
Pinduoduo's hyper-growth rate over the years means it is getting closer to the ceiling in its home market. It can still grow its revenue by expanding into new categories to capture a more significant customer wallet share. Still, it is unlikely to sustain its high growth rate unless it finds a new growth avenue.
Enter Temu. This online marketplace offers people a wide range of discounted products. Launched initially in the U.S. in September 2022, Temu uses Pinduoduo's experience and supply chain capabilities to provide products to overseas customers at rock-bottom prices. Temu also offers free standard shipping on all orders (free express shipping on orders above $129), guaranteed delivery time, 90-day free returns, and other perks to attract and retain customers.
While it's still early days, there are signs that the company is heading in the right direction. For example, Temu is already in 40 countries just a year after its launch. It has consistently occupied the top three positions of app downloads in the Google Play Store and Apple App Store while already surpassing 100 million active users in the U.S. by May 2023.
Still, there is plenty of work to do before Temu can become as successful overseas as its companion platform Pinduoduo is in China. For example, it needs to overcome its long delivery time (4-12 days for express shipping) before it can threaten incumbents like Amazon in the U.S. market. It also has to deal with other issues like low-quality and counterfeit products on its platform.
In other words, it will be a marathon (rather than a sprint) for Temu to build a sustainable cross-border e-commerce business. Fortunately, with its extensive supply chain, solid management know-how, and colossal cash hoard -- 203 billion yuan ($27.8 billion) in cash, cash equivalents, and short-term investments -- it has a decent shot at reaching that goal.
Pinduoduo is the stock to watch
It is rare to have a company that came from nowhere to dominate an industry with multiple incumbents. It's even rarer for the young company to achieve that feat in less than eight years.
Besides, Pinduoduo is now sitting on another vast opportunity to repeat its success in China in the overseas market via Temu. It's not a sure thing yet, but it's a massive optionality for investors. With so many good things going on for the company, investors should give it a closer look.
Should you invest $1,000 in PDD Holdings right now?
Before you buy stock in PDD Holdings, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and PDD Holdings wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of the S&P 500 since 2002*.
See the 10 stocks
*Stock Advisor returns as of December 11, 2023
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Lawrence Nga has positions in Alibaba Group and PDD Holdings. The Motley Fool has positions in and recommends Amazon, JD.com, MercadoLibre, and Shopify. The Motley Fool recommends Alibaba Group. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
For example, the company built its platform as a mobile-first when incumbents like Alibaba and JD.com grew their businesses mainly in the PC era, capturing new users who came online for the first time via cheap smartphones. For instance, in the early days, it encouraged existing customers to share deals and coupons with family and friends via WeChat to grow its user base. Launched initially in the U.S. in September 2022, Temu uses Pinduoduo's experience and supply chain capabilities to provide products to overseas customers at rock-bottom prices.
|
This article aims to bring the company -- the young and rising PDD Holdings (NASDAQ: PDD), better known as Pinduoduo -- onto investors' radar. Temu also offers free standard shipping on all orders (free express shipping on orders above $129), guaranteed delivery time, 90-day free returns, and other perks to attract and retain customers. Before you buy stock in PDD Holdings, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and PDD Holdings wasn't one of them.
|
This article aims to bring the company -- the young and rising PDD Holdings (NASDAQ: PDD), better known as Pinduoduo -- onto investors' radar. Before you buy stock in PDD Holdings, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and PDD Holdings wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 11, 2023 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors.
|
For example, it needs to overcome its long delivery time (4-12 days for express shipping) before it can threaten incumbents like Amazon in the U.S. market. With so many good things going on for the company, investors should give it a closer look. Before you buy stock in PDD Holdings, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and PDD Holdings wasn't one of them.
|
9877b59e-8293-4bb9-a870-67d70f14e4c2
|
711992.0
|
2023-12-13 00:00:00 UTC
|
Is Amazon Stock a Buy Now?
|
DCOMP
|
https://www.nasdaq.com/articles/is-amazon-stock-a-buy-now-13
|
nan
|
nan
|
It's not exactly a secret that Amazon (NASDAQ: AMZN) is one of the best-performing stocks of the past decade. Indeed, despite being a relatively young company, Amazon is one of the market's most rewarding stocks of all time.
As the old adage goes, though, past performance is no guarantee of future results. This company superficially seems to be running out of ways to keep growing at the same pace it has in the past. The stock's recent move to a new 52-week high further undermines the bullish case for stepping into it now.
Just don't talk yourself out of buying Amazon stock if you don't already own it. Its future may not look anywhere near as compelling as its past. However, the e-commerce giant has plenty of upside left to dish out to shareholders for a couple of reasons.
The business of selling stuff online is evolving
Amazon's highest-growth days are in the past. The stock's near-200,000% gain since it went public back in 1997 won't likely be repeated over the course of the next 26 years now that competitors are figuring out how to compete with Amazon. Much of the addressable e-commerce market has already been tapped anyway. Besides, between its competitive prices, a huge network of warehouses, and steep logistics expenses, it's not like profit margin rates were ever really all that great for Amazon's e-commerce operation.
But e-commerce isn't the core of this company's future, at least not directly. Rather, it's just a means to an end.
Amazon's been doing it for a while, but it's only been within the past couple of years that the e-commerce behemoth has made the most of its advertising opportunity by accepting payments from its third-party sellers in exchange for prominently featuring their particular products. If you've ever shopped at Amazon.com, there's a reason the "sponsored" listings are usually the first ones you see while searching. All told, Amazon collected a little over $12 billion worth of ad revenue during the three-month stretch that ended in September, bringing the trailing-12-month tally to $43.8 billion. That's up 22% year over year.
It's still only a drop in the bucket compared to the $528 billion worth of business Amazon is expected to do this year. This new business model changes everything about the company's existing business, however. Advertising revenue is high-margin revenue; it's conceivable that Amazon.com could generate more profit as an advertising platform than as an operator of an enormous online mall. Indeed, the company could lose money outright on the sale of goods and still more than offset those losses with ad revenue.
In this vein, market research outfit Insider Intelligence believes Amazon's advertising business will grow to just under $45 billion for the fiscal year ending this month, en route to $67.6 billion in 2025. Even then, though, it's just getting started. Insider Intelligence goes on to say the United States' entire retail media ad market -- the practice of charging brands to be featured at an online shopping website -- will swell from a total of $46.4 billion this year to over $109 billion in 2027.
Given that Amazon.com alone accounts for around 40% of the nation's e-commerce revenue and draws far more traffic than any of its rival shopping sites, it stands to reason that the company is positioned to capture more than its fair share of this growth.
We've only scratched the surface of the cloud computing market
The other reason Amazon stock is a buy despite the saturation of the low-margin e-commerce market: Cloud computing.
You likely know Amazon Web Services (AWS) is a contender in the cloud computing arena. Technology market research firm Canalys says Amazon's AWS leads this market, with a 31% share of worldwide cloud infrastructure revenue. What you may not realize is what impact it has on Amazon's bottom line. Although AWS's sales only make up around 16% of the company's top line, its cloud computing arm accounts for around three-fourths of Amazon's companywide profits -- a proportion that's been in place for several years now.
Amazon Web Services' contribution to the bottom line is only apt to get bigger as time marches on, too.
As big as the cloud computing market has already become, it's going to continue growing at a jaw-dropping clip for a while. Precedence Research believes the global cloud services market will expand at an annualized pace of 17% through 2023; Straits Research pegs the compound annual growth rate at nearly 19%. Both outlooks put the world's cloud computing market in the ballpark of $2 trillion by the early 2030s.
That's huge for Amazon. Even if the company loses a bit of its cloud market share, the industry's brewing expansion could nearly quadruple AWS' revenue during the next 10 years. Amazon Web Services' yearly operating profits should swell accordingly to around $100 billion.
Yes, Amazon stock is a buy now
Amazon stock's recent run-up is intimidating, to be sure, and so is its valuation. Shares are priced at a trailing price/earnings ratio of nearly 80 and a forward-looking P/E of nearly 40. Both are frothy by marketwide standards.
Amazon was never a stock that respected marketwide standards, though. It's always been priced richly and usually performed well despite its steep valuation. That's because investors are willing to pay for its above-average growth potential and the above-average assurance that Amazon will be able to deliver on its promise. That hasn't changed, even if the way it will achieve this growth has evolved away from e-commerce and toward business-oriented services.
This might help: Despite the stock's bullishness since October's low (and really, its late-2022 low), the analyst community still believes there's much more upside in store. Of the 57 analysts monitoring Amazon stock, 48 rate it a strong buy. The analyst community also sports a consensus price target of $176.44, nearly 20% above the stock's present price.
Take the hint.
Should you invest $1,000 in Amazon right now?
Before you buy stock in Amazon, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Amazon wasn't one of them. 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. James Brumley has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon. 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.
|
Amazon's been doing it for a while, but it's only been within the past couple of years that the e-commerce behemoth has made the most of its advertising opportunity by accepting payments from its third-party sellers in exchange for prominently featuring their particular products. Given that Amazon.com alone accounts for around 40% of the nation's e-commerce revenue and draws far more traffic than any of its rival shopping sites, it stands to reason that the company is positioned to capture more than its fair share of this growth. Although AWS's sales only make up around 16% of the company's top line, its cloud computing arm accounts for around three-fourths of Amazon's companywide profits -- a proportion that's been in place for several years now.
|
In this vein, market research outfit Insider Intelligence believes Amazon's advertising business will grow to just under $45 billion for the fiscal year ending this month, en route to $67.6 billion in 2025. Amazon Web Services' yearly operating profits should swell accordingly to around $100 billion. Before you buy stock in Amazon, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Amazon wasn't one of them.
|
We've only scratched the surface of the cloud computing market The other reason Amazon stock is a buy despite the saturation of the low-margin e-commerce market: Cloud computing. Yes, Amazon stock is a buy now Amazon stock's recent run-up is intimidating, to be sure, and so is its valuation. Before you buy stock in Amazon, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Amazon wasn't one of them.
|
In this vein, market research outfit Insider Intelligence believes Amazon's advertising business will grow to just under $45 billion for the fiscal year ending this month, en route to $67.6 billion in 2025. We've only scratched the surface of the cloud computing market The other reason Amazon stock is a buy despite the saturation of the low-margin e-commerce market: Cloud computing. Before you buy stock in Amazon, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Amazon wasn't one of them.
|
528eb7c2-eb9d-4953-b8fa-72c1161f38b2
|
711993.0
|
2023-12-13 00:00:00 UTC
|
Intel's New Server Chips Make Gains on AMD
|
DCOMP
|
https://www.nasdaq.com/articles/intels-new-server-chips-make-gains-on-amd
|
nan
|
nan
|
Emerald Rapids, the latest generation of Xeon server CPUs from Intel (NASDAQ: INTC), officially launched on Dec. 14. While Emerald Rapids uses the same Intel 7 manufacturing process as Sapphire Rapids, which launched in January, architectural changes, coupled with a vast increase in cache memory, deliver impressive performance gains.
Advanced Micro Devices' (NASDAQ: AMD) Genoa server CPUs still hold the advantage for workloads that can make good use of many cores. While Emerald Rapids chips go up to 64 cores, Genoa goes up to 96 cores.
But core count is only one part of the equation. The Tom's Hardware website ran the top-tier Platinum 8592+ from Intel's Emerald Rapids family through its paces, and the results make it clear that Intel has gained considerable ground on AMD.
Strong AI performance
Depending on the model, Emerald Rapids chips include various built-in accelerators aimed at specific types of workloads. The Platinum 8592+ includes each type of accelerator Intel offers, including one that accelerates AI workloads.
Along with the built-in AI accelerator, a few other changes helped Emerald Rapids deliver impressive performance gains. Intel switched up the design from Sapphire Rapids, moving to a simpler tile-based design that eliminates some issues with latency. For AI workloads, in particular, moving data quickly is paramount. The higher-end Emerald Rapids chips also offer more than triple the L3 cache as Sapphire Rapids.
Emerald Rapids puts up a strong showing in the AI workloads Tom's Hardware used in its review. Interestingly, AMD's 96-core Genoa chip falls flat in all the tests using the popular TensorFlow AI software, coming in dead last by a wide margin. The large number of cores and the latency introduced by AMD's tile-based design seem to be problematic for these workloads. Tom's Hardware was unable to test AI models that benefit the most from Emerald Rapids' built-in AI accelerators, but even so, the chips registered strong AI performance.
Emerald Rapids scores some wins outside of AI workloads, particularly in workloads that can't make good use of AMD's higher core counts without running into bottlenecks elsewhere. AMD's Genoa still reigns supreme in workloads like rendering, although Emerald Rapids makes significant gains over Sapphire Rapids in many areas and is competitive against AMD's 64-core models.
Concluded Tom's Hardware: "...the Emerald Rapids 8592+ grapples with AMD's competing 64-core models in a core-for-core battle that finds it winning in more than a few key areas."
Paving the way for Granite Rapids
Emerald Rapids improves Intel's position in the server CPU market, and it cements its lead over AMD in AI workloads. While the large language models that continually make headlines require powerful GPUs for both training and inference, many AI inference tasks are well suited to run on CPUs.
That's the market that Intel is going after with Emerald Rapids. In seven out of nine AI tests run by Tom's Hardware, Intel's chips come out on top, sometimes by a large margin.
AMD still holds the advantage in general-purpose computing, but Intel will look to change that in the first half of 2024 with Granite Rapids, the successor to Emerald Rapids. Granite Rapids will likely boost the core count considerably over Emerald Rapids, and the upcoming chips will be built on the Intel 3 manufacturing process. Intel will also launch Sierra Forest around the same time, a second family of server CPUs that use weaker cores but pack as many as 288 cores into a single chip.
Emerald Rapids certainly isn't a Genoa killer, but Intel has made impressive gains over Sapphire Rapids and wins against Genoa in a variety of workloads. Granite Rapids should bring even larger performance gains, although AMD is expected to launch its next-generation Turin server chips by the end of next year.
As AI workloads proliferate, Intel's Emerald Rapids should find plenty of customers looking to accelerate inference tasks.
Should you invest $1,000 in Intel right now?
Before you buy stock in Intel, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Intel wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
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
Timothy Green has positions in Intel. The Motley Fool has positions in and recommends Advanced Micro Devices. The Motley Fool recommends Intel and recommends the following options: long January 2023 $57.50 calls on Intel, long January 2025 $45 calls on Intel, and short February 2024 $47 calls on Intel. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Strong AI performance Depending on the model, Emerald Rapids chips include various built-in accelerators aimed at specific types of workloads. Interestingly, AMD's 96-core Genoa chip falls flat in all the tests using the popular TensorFlow AI software, coming in dead last by a wide margin. Granite Rapids should bring even larger performance gains, although AMD is expected to launch its next-generation Turin server chips by the end of next year.
|
Advanced Micro Devices' (NASDAQ: AMD) Genoa server CPUs still hold the advantage for workloads that can make good use of many cores. Strong AI performance Depending on the model, Emerald Rapids chips include various built-in accelerators aimed at specific types of workloads. The Motley Fool recommends Intel and recommends the following options: long January 2023 $57.50 calls on Intel, long January 2025 $45 calls on Intel, and short February 2024 $47 calls on Intel.
|
Paving the way for Granite Rapids Emerald Rapids improves Intel's position in the server CPU market, and it cements its lead over AMD in AI workloads. Emerald Rapids certainly isn't a Genoa killer, but Intel has made impressive gains over Sapphire Rapids and wins against Genoa in a variety of workloads. The Motley Fool recommends Intel and recommends the following options: long January 2023 $57.50 calls on Intel, long January 2025 $45 calls on Intel, and short February 2024 $47 calls on Intel.
|
While Emerald Rapids chips go up to 64 cores, Genoa goes up to 96 cores. In seven out of nine AI tests run by Tom's Hardware, Intel's chips come out on top, sometimes by a large margin. Granite Rapids will likely boost the core count considerably over Emerald Rapids, and the upcoming chips will be built on the Intel 3 manufacturing process.
|
21ab4358-fb73-4ce5-bcaa-422dea1a9dcb
|
711994.0
|
2023-12-13 00:00:00 UTC
|
3 Growth Stocks to Buy and Hold Forever
|
DCOMP
|
https://www.nasdaq.com/articles/3-growth-stocks-to-buy-and-hold-forever
|
nan
|
nan
|
When we own portions of outstanding businesses with outstanding managements, our favorite holding period is forever.
-- Warren Buffett's 1988 Berkshire Hathaway shareholder letter
When you invest with the mindset of holding for a lifetime, you think differently about the types of companies you want to invest in. While finding companies with a durable competitive advantage is important, identifying skilled CEOs can significantly increase your odds of success.
The following three companies have delivered terrific returns to shareholders and are run by talented leaders who deeply understand their respective markets. Investing alongside these CEOs could increase your net worth substantially if you can patiently hold shares for many years.
1. Nvidia
Nvidia (NASDAQ: NVDA) stock has been one of the standout performers in recent years. The company pioneered the graphics processing unit (GPU) over 20 years ago for artists and PC gamers. Until a few years ago, selling GPUs to the gaming market was Nvidia's largest business, but the history of the company shows that it has been very successful in adapting its core GPU technology to non-gaming markets.
Credit goes to the leadership of founder and CEO Jensen Huang, who has guided the company since 1993. On the company's fiscal third-quarter 2016earnings call Huang told analysts about the need for data centers to invest in GPUs to handle the massive data throughput of user-generated video content and the move to artificial intelligence (AI) to make smarter services.
Huang deeply understands the industry. Nvidia's earnings calls usually include insightful comments about technological trends and opportunities emerging on the horizon. An investor who was listening to thatearnings calland put $1,000 in Nvidia stock would currently have $62,000.
What is CEO Jensen Huang talking about now? He made this statement on the company's recent call in November. "Generative AI is the largest [market] expansion of software and hardware that we've seen in several decades," he said. Nvidia's data center business is reaping the returns of this booming demand, driving the company's revenue up 206% over the year-ago quarter. The data center segment now makes up 80% of Nvidia's business, and it is doing everything it can to meet the demand for advanced GPUs needed for AI.
Nvidia has always been on the cutting edge -- first with gaming graphics cards and now with AI chips and systems. It is arguably the most important tech company in the world. It provides the essential hardware cloud computing companies need so they can provide AI services to clients all over the world. If you have some extra cash, this stock is worth at least a small allocation in a well-rounded portfolio.
2. Constellation Software
Shares of Constellation Software (OTC: CNSWF) have rocketed over 1,200% over the last 10 years. It's one of the highest-performing software businesses that no one talks about on Wall Street. A handful of analysts cover the stock, yet this software conglomerate has grown revenue and free cash flow at 22% and 25%, respectively, over the last 10 years.
Constellation delivered these impressive returns by operating as a value investor in the vertical software market. It acquires small software companies at attractive valuations and never sells. These companies span just about every industry, from energy to healthcare to financial services.
The company was founded by Mark Leonard in 1995. Before that, Leonard spent more than a decade working in venture capital, which is known for making lots of bets on high-risk start-ups, but that's not how Leonard runs Constellation Software. He has established an incredible record of making value-based acquisitions that create lasting wealth for shareholders.
Despite acquiring dozens of software companies, Constellation still has some growth left in the tank. Revenue grew nearly 30% in 2022 after management spent $1.6 billion on acquisitions. The stock isn't cheap, trading at a high multiple of 31 times trailing free cash flow, but investors who patiently hold shares should see returns that roughly follow the growth of the business.
3. Tesla
Investing in companies that provide essential services is a great strategy to find long-term winners. We've seen how it worked out for Nvidia and Constellation Software, but the growth trajectory that Tesla (NASDAQ: TSLA) has been on puts those companies to shame.
Tesla's revenue has increased at a 69% annualized rate since 2013, and it continues to put up impressive numbers, with 70% growth in 2021, followed by 51% last year. The macroeconomic headwinds pushed growth down to single digits in the third quarter, but Tesla isn't done growing by a long shot.
Tesla has tangible advantages with its vast footprint of charging stations around the U.S. It is a testament to CEO Elon Musk's skills as a manager that the company has successfully competed against the leaders of the auto industry that have been around for more than a century and is achieving industry-leading profitability in the process.
It is not too late to buy Tesla stock. While the company currently sports a market cap (share price times total shares outstanding) of $800 billion, Tesla's growing capabilities in AI software and small market share in car sales across the entire auto industry suggest more growth ahead.
While electric cars are still a big opportunity, Tesla's work on humanoid robots and robotaxis also suggests a company that is potentially serving a market much broader than electric cars. Musk is positioning Tesla to offer a range of products over time that increase productivity and grow the global economy. If Musk's vision comes to reality, you may regret not buying the stock.
Should you invest $1,000 in Nvidia right now?
Before you buy stock in Nvidia, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Nvidia wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
See the 10 stocks
*Stock Advisor returns as of December 11, 2023
John Ballard has positions in Nvidia and Tesla. The Motley Fool has positions in and recommends Constellation Software, Nvidia, and Tesla. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
A handful of analysts cover the stock, yet this software conglomerate has grown revenue and free cash flow at 22% and 25%, respectively, over the last 10 years. The stock isn't cheap, trading at a high multiple of 31 times trailing free cash flow, but investors who patiently hold shares should see returns that roughly follow the growth of the business. It is a testament to CEO Elon Musk's skills as a manager that the company has successfully competed against the leaders of the auto industry that have been around for more than a century and is achieving industry-leading profitability in the process.
|
Until a few years ago, selling GPUs to the gaming market was Nvidia's largest business, but the history of the company shows that it has been very successful in adapting its core GPU technology to non-gaming markets. The stock isn't cheap, trading at a high multiple of 31 times trailing free cash flow, but investors who patiently hold shares should see returns that roughly follow the growth of the business. While the company currently sports a market cap (share price times total shares outstanding) of $800 billion, Tesla's growing capabilities in AI software and small market share in car sales across the entire auto industry suggest more growth ahead.
|
We've seen how it worked out for Nvidia and Constellation Software, but the growth trajectory that Tesla (NASDAQ: TSLA) has been on puts those companies to shame. While the company currently sports a market cap (share price times total shares outstanding) of $800 billion, Tesla's growing capabilities in AI software and small market share in car sales across the entire auto industry suggest more growth ahead. Before you buy stock in Nvidia, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Nvidia wasn't one of them.
|
While finding companies with a durable competitive advantage is important, identifying skilled CEOs can significantly increase your odds of success. Before you buy stock in Nvidia, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Nvidia wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 11, 2023 John Ballard has positions in Nvidia and Tesla.
|
ad80e29f-dea9-417a-ad5b-c613dd374a21
|
711995.0
|
2023-12-13 00:00:00 UTC
|
Will SoundHound AI Be the Best Artificial Intelligence (AI) Stock in 2024?
|
DCOMP
|
https://www.nasdaq.com/articles/will-soundhound-ai-be-the-best-artificial-intelligence-ai-stock-in-2024
|
nan
|
nan
|
Artificial intelligence (AI) has been the investment star of 2023, and 2024 will likely bring more of the same. This has people searching high and low to find the best AI stocks and buy them before the year ends.
One of those stocks is SoundHound AI (NASDAQ: SOUN), a company that specializes in (you guessed it) using AI to turn audio into data a model can use. But could this company be one of the best AI investments in 2024? Let's take a look.
SoundHound AI's products have a few target customers
SoundHound AI has been around for a while. It started with a group of students at Stanford in 2005. Over time, the company slowly evolved from a music recognition app into voice recognition software that multiple companies deploy.
Among the two main clients are automakers and restaurants. For restaurants, the value proposition is obvious: Soundhound AI's product can automate the order-taking experience in the drive-thru and store.
For example, SoundHound AI partnered with burger chain White Castle to automate its drive-thru experience. Compared to a human order-taker, SoundHound's product bested the baseline by taking and processing the order in under 60 seconds and achieving a 90% order completion rate. Although White Castle is a relatively small chain, if SoundHound's products are deployed by bigger chains nationwide, it could see significant revenue expansion.
To further bolster its offerings, SoundHound recently merged with SYNQ3, a voice AI leader in the restaurant industry. This adds more than 25 national and multinational customers to SoundHound's portfolio and also adds revenue synergies because the two were tackling different opportunities in the same space.
On the automotive side, SoundHound's products are used as digital assistants. Stellantis recently rolled out SoundHound AI's latest model in the European market. The AI integrates into the vehicle's assistant, allowing drivers to further increase the tasks they can accomplish without the use of their hands.
The investment story for Soundhound AI is there, but how are the financials?
SoundHound is losing a lot of money
Although the merger with SYNQ3 will change SoundHound's finances, the best investors have to go off of is its latest Q3 results. They were quite strong; SoundHound's revenue rose 19% year over year to $13.3 million. However, the biggest item to consider is SoundHound's backlog, which sits at $341 million.
That's a lot of revenue waiting to be recognized, and if SoundHound delivers on its products, it will be solid growth for the company.
Because SoundHound is still in the growth-at-all-costs phase of its business, it shouldn't surprise investors that it's losing money. In Q3, it had an operating loss of $14.5 million -- more than double its revenue. This may be concerning, as it would indicate SoundHound could go under. But, the company recently took on some debt to increase its cash balance, which is about $110 million.
That's enough to keep it afloat for some time, but with its successful product, it wouldn't be hard for SoundHound to raise more money.
The last item to consider is SoundHound's valuation. A stock with a great story and strong financials can still be a losing investment if it's not bought at the right price.
SOUN PS Ratio data by YCharts
At 12 times sales, SoundHound isn't cheap, but it's not expensive either. I think investors can purchase SoundHound shares as long as they're OK with the risks involved with a moon-shot-style investment. SoundHound AI may go to zero, or it could explode higher. Because of that, I'd keep my position relatively small, around 1%. That way, if it goes bust, it doesn't drastically harm the portfolio, but it could grow into a much larger position with some success.
But do I think it will be 2024's best AI stock? It's hard to tell. There are more surefire investments. But if it has a great year on the business side, it may take home that prize.
Should you invest $1,000 in SoundHound AI right now?
Before you buy stock in SoundHound AI, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and SoundHound AI 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 recommends Stellantis. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
This has people searching high and low to find the best AI stocks and buy them before the year ends. For restaurants, the value proposition is obvious: Soundhound AI's product can automate the order-taking experience in the drive-thru and store. SOUN PS Ratio data by YCharts At 12 times sales, SoundHound isn't cheap, but it's not expensive either.
|
One of those stocks is SoundHound AI (NASDAQ: SOUN), a company that specializes in (you guessed it) using AI to turn audio into data a model can use. For example, SoundHound AI partnered with burger chain White Castle to automate its drive-thru experience. Before you buy stock in SoundHound AI, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and SoundHound AI wasn't one of them.
|
One of those stocks is SoundHound AI (NASDAQ: SOUN), a company that specializes in (you guessed it) using AI to turn audio into data a model can use. SoundHound AI's products have a few target customers SoundHound AI has been around for a while. Before you buy stock in SoundHound AI, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and SoundHound AI wasn't one of them.
|
But could this company be one of the best AI investments in 2024? SoundHound AI's products have a few target customers SoundHound AI has been around for a while. Before you buy stock in SoundHound AI, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and SoundHound AI wasn't one of them.
|
bfd0ed54-2fa3-4a7f-ba39-f498da3637e2
|
711996.0
|
2023-12-13 00:00:00 UTC
|
3 Fantastic Stocks That Could Enjoy a Santa Claus Rally
|
DCOMP
|
https://www.nasdaq.com/articles/3-fantastic-stocks-that-could-enjoy-a-santa-claus-rally
|
nan
|
nan
|
You might think that the stock market would be really quiet during the holidays. After all, many investors are on vacation and take a break from buying and selling stocks. Interestingly, though, the S&P 500 often rises noticeably in the final five trading days of December and the first two days in January.
Three Motley Fool contributors think they've identified fantastic stocks that are especially likely to enjoy this kind of "Santa Claus rally." Here's why they picked AbbVie (NYSE: ABBV), CRISPR Therapeutics (NASDAQ: CRSP), and Pfizer (NYSE: PFE).
A rally has already begun for this stock
Keith Speights (AbbVie): We won't have to wait until after Christmas for one beaten-down stock to rally. The rally has already begun for AbbVie: Shares of the big drugmaker have jumped more than 10% since Thanksgiving. I think this momentum could continue into the new year.
Two big business-development deals appear to have renewed investors' interest in AbbVie. On Nov. 30, the company announced plans to buy ImmunoGen for $10.1 billion. A week later, AbbVie revealed that it intends to acquire Cerevel Therapeutics for $8.7 billion. Both transactions appear to be smart moves that will bolster AbbVie's pipeline and, in the case of ImmunoGen, add an approved cancer therapy with fast-growing sales to its lineup.
Speaking of cancer therapies, investors also have a reason to be optimistic about AbbVie's epcoritamab. The drugmaker recently announced positive results for the experimental bispecific antibody in a phase 1/2 study for treating relapsed/refractory follicular lymphoma. The therapy has already been approved in both the United States and the European Union in treating certain types of large B-cell lymphoma. Analysts project that epcoritamab could generate peak annual sales of close to $3 billion.
I also think that the increasing prospects of interest-rate cuts next year could entice some income investors to shift money into AbbVie stock. Lower rates will cause bond yields to fall, but could provide a catalyst for stocks. AbbVie's current dividend yield of 4% and its status as a Dividend King could be a winning combination for income investors seeking better alternatives to bonds.
This biotech already got a holiday gift
Prosper Junior Bakiny (CRISPR Therapeutics): The past few weeks have been eventful for CRISPR Therapeutics. The most crucial development for the company is that it finally earned approval for gene-editing therapy Casgevy as a treatment for sickle cell disease in the U.S. and the U.K., and for transfusion-dependent beta-thalassemia (TDT) in the U.K. A U.S. approval decision on the TDT indication is expected by March 30, 2024.
However, CRISPR Therapeutics' shares have been falling, probably partly because some investors decided to take their profits now that the biotech has achieved this important milestone. So why think CRISPR Therapeutics could profit from a Santa Claus rally?
These things are always hard to predict, but the feat the company just accomplished is nothing to sneeze at. It earned the world's first approval for a CRISPR-based gene-editing treatment -- a technique that recently won its creators a Nobel prize.
Furthermore, with a price tag of $2.2 million in the U.S., Casgevy's total addressable market is massive. Even with just the 32,000 patients it plans to target together with its partner, Vertex Pharmaceuticals (NASDAQ: VRTX), it comes out to a total of a little over $70 billion. That's before we consider that CRISPR Therapeutics and Vertex could target far more patients if given label expansions. Casgevy's peak sales probably won't come anywhere close to matching its full market opportunity, but they don't have to for CRISPR Therapeutics to be a big winner.
While it isn't surprising to see some investors jump on the opportunity to take some profits, others might soon decide to initiate positions given how promising CRISPR Therapeutics' prospects just became. This could be just the first of many approvals for breakthrough gene-editing therapies for the biotech.
That's why a Santa Claus rally could be in the cards for CRISPR Therapeutics. More importantly, long-term investors should stick with the stock regardless of what transpires in the next two weeks.
With a beaten-down valuation, this pharma could be due for a rally
David Jagielski (Pfizer): One underrated stock that investors have been dumping this year is Pfizer. The healthcare giant is on track to generate up to $61 billion in revenue this year -- more than it brought in before the pandemic. It's been busy loading up on acquisitions to bolster its growth prospects, but investors can't get past looming patent cliffs and the steep declines in COVID-related revenue this year.
While those are valid concerns, the stock should be trading at higher levels than it is now. If you ignore the brief market crash of 2020 when investors went into a panic about the coronavirus, then Pfizer's stock would be trading at near-seven-year lows right now.
But Pfizer's business isn't in peril the way it would have to be to justify the massive sell-off the stock has seen this year. Down 44%, it's trading at just 9 times forward earnings while the S&P 500 averages a multiple of 20.
The company has multiple growth catalysts it can tap into. CEO Albert Bourla has a plan to add $25 billion to the company's top line by 2030, through acquisitions and in-house drug development, to offset declines from patent cliffs and diminishing demand for COVID-related products.
Pfizer is coming off a tough quarter in which it reported a net loss of $2.4 billion for the period ending Oct. 1. But the big drugmaker is trimming costs and plans to shave $3.5 billion in annual expenses as it scales down its COVID operations.
Overall, I think this is still a top stock to own. Its valuation is attractive, and the dividend yield currently stands at 5.7%. Pfizer just might be ripe for the picking in a Santa Claus rally, as value investors recognize the great bargain offered by the stock.
Should you invest $1,000 in Pfizer right now?
Before you buy stock in Pfizer, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Pfizer wasn't one of them. 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
David Jagielski has no position in any of the stocks mentioned. Keith Speights has positions in AbbVie, Pfizer, and Vertex Pharmaceuticals. Prosper Junior Bakiny has positions in Vertex Pharmaceuticals. The Motley Fool has positions in and recommends CRISPR Therapeutics, Cerevel Therapeutics, Pfizer, and Vertex Pharmaceuticals. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Both transactions appear to be smart moves that will bolster AbbVie's pipeline and, in the case of ImmunoGen, add an approved cancer therapy with fast-growing sales to its lineup. It's been busy loading up on acquisitions to bolster its growth prospects, but investors can't get past looming patent cliffs and the steep declines in COVID-related revenue this year. CEO Albert Bourla has a plan to add $25 billion to the company's top line by 2030, through acquisitions and in-house drug development, to offset declines from patent cliffs and diminishing demand for COVID-related products.
|
Here's why they picked AbbVie (NYSE: ABBV), CRISPR Therapeutics (NASDAQ: CRSP), and Pfizer (NYSE: PFE). It's been busy loading up on acquisitions to bolster its growth prospects, but investors can't get past looming patent cliffs and the steep declines in COVID-related revenue this year. The Motley Fool has positions in and recommends CRISPR Therapeutics, Cerevel Therapeutics, Pfizer, and Vertex Pharmaceuticals.
|
A rally has already begun for this stock Keith Speights (AbbVie): We won't have to wait until after Christmas for one beaten-down stock to rally. Before you buy stock in Pfizer, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Pfizer wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 11, 2023 David Jagielski has no position in any of the stocks mentioned.
|
On Nov. 30, the company announced plans to buy ImmunoGen for $10.1 billion. Before you buy stock in Pfizer, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Pfizer wasn't one of them. The Motley Fool has positions in and recommends CRISPR Therapeutics, Cerevel Therapeutics, Pfizer, and Vertex Pharmaceuticals.
|
38525a38-9920-4bff-87bb-e78a98484383
|
711997.0
|
2023-12-13 00:00:00 UTC
|
Cathie Wood Just Made a Big Purchase of This Artificial Intelligence (AI) Stock. You Could Follow Her Lead for Less Than $20 per Share.
|
DCOMP
|
https://www.nasdaq.com/articles/cathie-wood-just-made-a-big-purchase-of-this-artificial-intelligence-ai-stock.-you-could
|
nan
|
nan
|
When it comes to artificial intelligence (AI), the "Magnificent Seven" stocks probably come to mind. The moniker includes the majority of megacap companies leading the AI revolution: Apple, Alphabet, Microsoft, Nvidia, Tesla, Meta Platforms, and Amazon.
One company that might be getting overlooked in the AI arms race is Palantir (NYSE: PLTR). While the data analytics company is best known for its close ties to the U.S. military and its allies, Palantir is far more than a government contractor. It has a growing presence in the private sector and works with customers across a variety of markets.
Yet despite this, the stock is trading roughly 50% below its all-time highs. And while some on Wall Street remain skeptical of Palantir's long-term potential, one notable investor in particular has been buying the dip. The funds of ARK Invest CEO Cathie Wood have ratcheted up their buying of Palantir as of late.
For the trading period between Dec. 6 and Dec. 15, Ark funds purchased 1.7 million shares in Palantir stock across three exchange-traded funds (ETFs). While the company represents only 1.2% of Ark's combined portfolio, it has a bigger position than most of the Magnificent Seven stocks.
With the stock trading for just $18 per share as of this writing, now is a terrific time to assess Palantir's prospects.
What's going on?
A recent bearish analyst report from investment bank William Blair spurred a sell-off in Palantir stock that wiped nearly $4 billion off its market capitalization.
PLTR Market Cap data by YCharts.
William Blair analyst Louie DiPalma expressed concerns about a contract that Palantir has with the U.S. Army, suggesting that the upcoming renewal of that contract may be for less than the original deal's value. As of this morning, Dec. 15, Palantir helped curtail those worries as the Army contract renewed for an additional year. While the initial deal was a multiyear contract, long-term investors shouldn't get hung up on the extension being for only one year. Rather, there are several reasons why investors should believe the sell-off was overblown and could be a buying opportunity.
Demand for AI-powered services is off the charts
It's important to keep in mind that the Army contract is just one deal. The advancements Palantir has made in artificial intelligence have led to a surge in demand for its services that I think is being overlooked. Earlier this year, it released a new product called the Palantir Artificial Intelligence Platform (AIP), which uses generative AI and large language models (LLMs) to help solve complex operational challenges.
While this may sound similar to the solutions offered by some of the big tech giants, Palantir may have an edge thanks to its creative lead generation strategy. The company has been hosting immersive seminars it calls "boot camps," at which prospective customers can test out its software platforms. The goal of these events is to quickly identify use cases for its services, giving Palantir an opportunity to sell products and expand sales to customers as time goes on.
While the boot camps are still a new innovation for the company, demand to attend them is off the charts. During Palantir's third-quarterearnings call Chief Technoloyg Officer Shyam Sankar said, "we're running more boot camps per month than we had U.S. commercial pilots all last year." The company had conducted boot camps for 200 organizations through November.
These boot camps represent a way for Palantir to potentially capture a piece of the growing AI market for little cost, and perhaps shorten its sales cycle significantly. As companies attend the seminars and convert into paying customers, Palantir has an opportunity to cross-sell and upsell products at a faster rate. In theory, this should help it accelerate its revenue growth while keeping its spending on sales, marketing, and customer retention low.
Is Palantir's valuation justified?
The chart below shows that Palantir's price-to-sales (P/S) ratio of 19 is currently well above its one-year average and inching toward prior highs. While this may seem a little rich, I see Palantir as deserving of a premium.
PLTR PS Ratio data by YCharts
Unlike many of its software-as-a-service (SaaS) cohorts, Palantir is already profitable on a GAAP (generally accepted accounting principles) basis. In fact, given its consistent profits, Palantir is eligible for inclusion in the S&P 500, a huge milestone for any company. The thing long-term investors should be considering here is the pace at which Palantir's offerings are being adopted and deployed.
For instance, during Q3 Palantir nearly tripled its AIP users. According to management, since its launch five months ago, 300 unique organizations have deployed AIP. While it's clear that the boot camps are driving interest in Palantir's products, investors should keep in mind that these prospects are contributing little to no revenue for Palantir today. Rather, it's the rising interest in attending and testing out AIP that could serve as a proxy of what Palantir's future could look like. It's these long-term secular tailwinds that attract investors like Wood, and underscore her conviction to buy when the stock falls off a cliff.
In the long run, Palantir's ability to accelerate revenue growth while also sustaining profits looks achievable. As the stock experiences some pronounced selling activity, now looks like an incredible opportunity to begin dollar-cost averaging into a long-term position for this AI disrupter.
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
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Adam Spatacco has positions in Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, Palantir Technologies, and Tesla. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Datadog, Meta Platforms, Microsoft, MongoDB, Nvidia, Palantir Technologies, ServiceNow, Snowflake, and Tesla. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Earlier this year, it released a new product called the Palantir Artificial Intelligence Platform (AIP), which uses generative AI and large language models (LLMs) to help solve complex operational challenges. PLTR PS Ratio data by YCharts Unlike many of its software-as-a-service (SaaS) cohorts, Palantir is already profitable on a GAAP (generally accepted accounting principles) basis. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Datadog, Meta Platforms, Microsoft, MongoDB, Nvidia, Palantir Technologies, ServiceNow, Snowflake, and Tesla.
|
The moniker includes the majority of megacap companies leading the AI revolution: Apple, Alphabet, Microsoft, Nvidia, Tesla, Meta Platforms, and Amazon. Adam Spatacco has positions in Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, Palantir Technologies, and Tesla. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Datadog, Meta Platforms, Microsoft, MongoDB, Nvidia, Palantir Technologies, ServiceNow, Snowflake, and Tesla.
|
While it's clear that the boot camps are driving interest in Palantir's products, investors should keep in mind that these prospects are contributing little to no revenue for Palantir today. Before you buy stock in Palantir Technologies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Palantir Technologies wasn't one of them. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Datadog, Meta Platforms, Microsoft, MongoDB, Nvidia, Palantir Technologies, ServiceNow, Snowflake, and Tesla.
|
PLTR Market Cap data by YCharts. While the boot camps are still a new innovation for the company, demand to attend them is off the charts. 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.
|
1395c358-3789-4411-9990-6f7f5910beb5
|
711998.0
|
2023-12-13 00:00:00 UTC
|
Smart City Innovators: 3 Stocks Building the Cities of Tomorrow
|
DCOMP
|
https://www.nasdaq.com/articles/smart-city-innovators%3A-3-stocks-building-the-cities-of-tomorrow
|
nan
|
nan
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
In view of developing times when city panorama becomes intelligent, everyone should know what is at stake in this revolution. The existence of smart cities goes beyond a trend—it’s the reality that defines our present and foresees the future. This transformation does not merely imply technological progress but constitutes a systematic effort toward reinventing city life. The trend is moving fast towards smart cities as people search for both sustainability and higher quality of life. In addition, in its course, canny investors opt for smart city stocks, an area of promise.
However, these are not merely investments but they mean being part of a vision. These stocks represent an uncommon chance to become a member of a cause that is redefining how we live, work and relate with each other within urban centers. This change towards wiser urban settlements is not a temporary phenomenon but a lasting move that constitutes another page of the book of urban development. Let’s then get into details of why smart cities do not just reshape geographical areas but also provide attractive business opportunities for visionary investors.
Cisco Systems (CSCO)
Source: Valeriya Zankovych / Shutterstock.com
Cisco Systems (NASDAQ:CSCO), a key player in the smart cities trend, has shown resilience in its financial performance over the years.
In October 2023, Cisco posted a strong first quarterly earnings that beat analyst predictions by posting a $1.11 EPS. Additionally, its revenue exceeded predictions at $14.69 billion, which equates to a 0.4% surprise.
Importantly, Cisco’s involvement in smart cities stocks is noteworthy. It provides modular networking and infrastructure solutions, crucial for creating cohesive and efficient urban environments. Cisco’s approach includes secure and scalable digital infrastructure, supporting the interconnected nature of smart cities. The company’s mass-scale infrastructure projects cater to governments and communities, emphasizing the importance of smart water solutions and software-defined networking. Additionally, Cisco’s Smart+ConnectedCity Infrastructure Management and Cisco Kinetic for Cities platforms play pivotal roles in managing diverse data inputs, vital for the adaptability of smart cities.
In general, Cisco Systems demonstrates a dedication to developing intelligent city systems by blending fiscal strength with creative options. The dual focus means that the company acts as an important player in the smart city landscape.
Siemens AG (SIEGY)
Source: shutterstock.com/nitpicker
Siemens (OTCMKTS:SIEGY), an electronics and electrical engineering global powerhouse, has had an excellent track record over the last five years, producing a return of 65%.
In September 2023, it reported quarterly earnings that were above expectations. The company posted an EPS of 2.17 Euros. In addition, revenue exceeded expectations reaching 21.39 billion Euros, an increase of 4%.
Siemens’ robust financials further bolster its strategic location in the growth area of smart cities. The company’s comprehensive report, “SMART COMMUNITIES: Rethinking Infrastructure,” outlines the company’s thought-provoking contributions to energy and water management. Through IoT integration, the company’s smart city technologies are essential in enhancing the systems’ reliability as well as operational decision-making.
The company has developed sustainable and efficient urban spaces in Vienna, Singapore, and the United Kingdom. Siemens’ smart city solutions, from smart grids to digitalization, are making international waves in these areas. In addition to making cities work better, these initiatives substantially cut down on operational expenses and carbon footprints.
Overall, Siemens is well-prepared to benefit from the smart cities wave going forward. A history of successful smart building technology and integration puts it at the apex of the market. Given Siemens’ strong financial performance and role as a history maker in this disruptive trend, investors looking for exposure to smart cities stocks will find the company attractive.
Honeywell International (HON)
Source: Shutterstock
Honeywell International (NASDAQ:HON) is a pioneer in the smart cities sector posting an impressive five-year return of 57%. This performance highlights how it has been instrumental in changing the face of urban scapes worldwide.
Over 100,000 sensors enabled by more than 100 million lives one can reach through the 70 Honeywell’s smart city systems created. The technological advances made are displayed through these deployments which in turn uplift urban resilience and city life quality.
Furthermore, Honeywell’s Smart City Accelerator Program with Accelerator for America demonstrates its dedication to urban future planning. This helps cities develop plans for transformational initiatives in formalizing their position when it comes to the smart cities craze. Other than that, Honeywell utilizes City Suite Software, which is an AI-based IoT platform, to combine vital infrastructure data to promote the management of city operations. In fact, this platform is part of Honeywell’s global influence in terms of smart city development which currently benefits 75 cities.
A proud global partner of the AHR Expo, Honeywell is at the forefront of discussions in urban innovation, reinforcing its commitment to viable, virtuous and sustainable urban ecosystems. Hence, this involvement makes Honeywell International significant among smart city stocks in the developing urban tech landscape and positions it as an integral player in shaping the future of smart cities.
On the publication date, Faizan Farooque did not hold (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.
Faizan Farooque is a contributing author for InvestorPlace.com and numerous other financial sites. Faizan has several years of experience in analyzing the stock market and was a former data journalist at S&P Global Market Intelligence. His passion is to help the average investor make more informed decisions regarding their portfolio.
More From InvestorPlace
The #1 AI Investment Might Be This Company You’ve Never Heard Of
Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.
The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors
The post Smart City Innovators: 3 Stocks Building the Cities of Tomorrow 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.
|
The company’s mass-scale infrastructure projects cater to governments and communities, emphasizing the importance of smart water solutions and software-defined networking. Given Siemens’ strong financial performance and role as a history maker in this disruptive trend, investors looking for exposure to smart cities stocks will find the company attractive. More From InvestorPlace The #1 AI Investment Might Be This Company You’ve Never Heard Of Musk’s “Project Omega” May Be Set to Mint New Millionaires.
|
Cisco Systems (CSCO) Source: Valeriya Zankovych / Shutterstock.com Cisco Systems (NASDAQ:CSCO), a key player in the smart cities trend, has shown resilience in its financial performance over the years. Honeywell International (HON) Source: Shutterstock Honeywell International (NASDAQ:HON) is a pioneer in the smart cities sector posting an impressive five-year return of 57%. Hence, this involvement makes Honeywell International significant among smart city stocks in the developing urban tech landscape and positions it as an integral player in shaping the future of smart cities.
|
Additionally, Cisco’s Smart+ConnectedCity Infrastructure Management and Cisco Kinetic for Cities platforms play pivotal roles in managing diverse data inputs, vital for the adaptability of smart cities. In fact, this platform is part of Honeywell’s global influence in terms of smart city development which currently benefits 75 cities. Hence, this involvement makes Honeywell International significant among smart city stocks in the developing urban tech landscape and positions it as an integral player in shaping the future of smart cities.
|
Siemens’ smart city solutions, from smart grids to digitalization, are making international waves in these areas. Over 100,000 sensors enabled by more than 100 million lives one can reach through the 70 Honeywell’s smart city systems created. Hence, this involvement makes Honeywell International significant among smart city stocks in the developing urban tech landscape and positions it as an integral player in shaping the future of smart cities.
|
1c0237f5-2ece-4a42-8c67-a975e29e9e64
|
711999.0
|
2023-12-13 00:00:00 UTC
|
Here's Why Investors Should Buy AECOM (ACM) Stock Right Now
|
DCOMP
|
https://www.nasdaq.com/articles/heres-why-investors-should-buy-aecom-acm-stock-right-now
|
nan
|
nan
|
AECOM ACM is capitalizing on increased infrastructure spending and a committed focus on digital initiatives, leading to a substantial rise in net service revenues and the growth of its backlog.
Shares of ACM have gained 7% in the past six months almost at par with the Zacks Engineering - R and D Services industry’s rise of 7.1%. Notably, in the past three months, ACM stock gained 9.7%, handily outperforming the industry’s 2% rise.
Earnings estimates for fiscal 2024 and 2025 have moved 2.3% and 3.4% upward over the past 60 days. This positive trend signifies bullish analysts’ sentiments, indicating robust fundamentals and the expectation of outperformance in the near term. The estimated figure indicates 17.5% and 12.2% year-over-year growth for fiscal 2024 and 2025, respectively.
Image Source: Zacks Investment Research
This Zacks Rank #2 (Buy) company also has a solid long-term earnings growth rate of 14.9%. The stock currently holds a VGM Score of A, supported by a Growth Score of B, a Momentum Score of C and a Value Score of B. Our research shows that stocks with a VGM Score of A or B, along with Zacks Rank #1 (Strong Buy) or 2, offer the best investment opportunities to investors.
Let’s Delve Into the Major Driving Factors
Strong Backlog Momentum: AECOM continues to demonstrate robust visibility with strong backlogs and pipelines anticipated for the upcoming quarters. In fiscal 2023, the total backlog reached $41.17 billion, reflecting growth from the prior year's $40.18 billion, with a significant 54.8% contribution from contracted backlog growth. Notably, the design contracted backlog for fiscal 2023 recorded a substantial 15% year-over-year increase.
Amidst a favorable funding landscape bolstered by the $1.2-trillion U.S. infrastructure bill, AECOM anticipates a sustained growth trajectory for its backlog.
Digital Innovation Drive: A key focus of AECOM's management is leveraging the company's scale and technical leadership through a streamlined operating model, fostering enhanced collaboration across the organization and driving digital innovation. Resource allocation is directed toward delivering comprehensive solutions to clients and markets.
The company's digital arm, Digital AECOM, equipped with a product portfolio for client digital transformations, is anticipated to play a pivotal role in achieving the targeted 17% segment adjusted operating margin by 2024. For fiscal 2023, an expected 40 basis points year-over-year increase in adjusted operating margin to 14.6% underscores this commitment to digital advancement.
Rising Demand Amid Infrastructure Boost: AECOM is experiencing heightened demand for its technical, advisory, and program management capabilities, aligning with an improved funding environment. The recent approval of the federal infrastructure bill in the United States and an increasing focus on Environmental, Social, and Governance (“ESG”)-related services contribute to the company's optimistic outlook for accelerated revenue growth in fiscal 2024. Maintaining growth across margin, adjusted EBITDA, and adjusted EPS remains a priority.
As part of its strategic priorities, AECOM is directing investments toward ESG initiatives. The company's industry-leading position in green building and design, environmental compliance and remediation, energy efficiency, and infrastructure resilience has been a significant factor in its continued success. This emphasis on ESG aligns with AECOM's strategy, contributing to sustained industry leadership and growth.
Recently, AECOM unveiled its long-term financial framework, underpinned by solid organic growth, a commitment to expand margins, strong free cash flow and an impressive return-based capital allocation policy (read more: AECOM Gives Long-Term Financial Goals, Retains FY24 View).
Commitment to Reward Shareholders: Last month, ACM announced a hike of 22% in its quarterly cash dividend and raised its share repurchase authorization to $1 billion. This well-known infrastructure consulting firm raised the quarterly dividend payout to 22 cents per share from 20 cents, consistent with its commitment to annual double-digit increases in the per-share value. The amount will be paid on Jan 19, 2024, to shareholders of record as of Jan 4.
Other Top-Ranked Stocks From the Construction Sector
EMCOR Group, Inc. EME currently sports a Zacks Rank of 1. Shares of the company have risen 23.3% in the past six months. You can see the complete list of today’s Zacks #1 Rank stocks here.
EME delivered a trailing four-quarter earnings surprise of 25%, on average. The Zacks Consensus Estimate for EME’s 2023 sales and earnings per share (EPS) indicates growth of 12% and 52.8%, respectively, from the previous year’s reported levels.
Acuity Brands, Inc. AYI currently carries a Zacks Rank of 2. AYI delivered a trailing four-quarter earnings surprise of 12%, on average.
The stock has gained 13.6% in the past six months. The Zacks Consensus Estimate for AYI’s fiscal 2024 sales and EPS indicates a decline of 3% and 4.7%, respectively, from a year ago.
Armstrong World Industries AWI currently carries a Zacks Rank #2. AWI delivered a trailing four-quarter earnings surprise of 7.9%, on average.
Shares of the company have gained 36.1% in the past six months. The Zacks Consensus Estimate for AWI’s 2023 sales and EPS indicates growth of 4.7% and 8.2%, respectively, from the previous year’s reported levels.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How To Profit From Trillions On Spending For Infrastructure >>
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
AECOM (ACM) : Free Stock Analysis Report
EMCOR Group, Inc. (EME) : Free Stock Analysis Report
Armstrong World Industries, Inc. (AWI) : Free Stock Analysis Report
Acuity Brands Inc (AYI) : 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.
|
AECOM ACM is capitalizing on increased infrastructure spending and a committed focus on digital initiatives, leading to a substantial rise in net service revenues and the growth of its backlog. The recent approval of the federal infrastructure bill in the United States and an increasing focus on Environmental, Social, and Governance (“ESG”)-related services contribute to the company's optimistic outlook for accelerated revenue growth in fiscal 2024. The company's industry-leading position in green building and design, environmental compliance and remediation, energy efficiency, and infrastructure resilience has been a significant factor in its continued success.
|
AECOM ACM is capitalizing on increased infrastructure spending and a committed focus on digital initiatives, leading to a substantial rise in net service revenues and the growth of its backlog. Image Source: Zacks Investment Research This Zacks Rank #2 (Buy) company also has a solid long-term earnings growth rate of 14.9%. Click to get this free report AECOM (ACM) : Free Stock Analysis Report EMCOR Group, Inc. (EME) : Free Stock Analysis Report Armstrong World Industries, Inc. (AWI) : Free Stock Analysis Report Acuity Brands Inc (AYI) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
AECOM ACM is capitalizing on increased infrastructure spending and a committed focus on digital initiatives, leading to a substantial rise in net service revenues and the growth of its backlog. Image Source: Zacks Investment Research This Zacks Rank #2 (Buy) company also has a solid long-term earnings growth rate of 14.9%. Click to get this free report AECOM (ACM) : Free Stock Analysis Report EMCOR Group, Inc. (EME) : Free Stock Analysis Report Armstrong World Industries, Inc. (AWI) : Free Stock Analysis Report Acuity Brands Inc (AYI) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
AECOM ACM is capitalizing on increased infrastructure spending and a committed focus on digital initiatives, leading to a substantial rise in net service revenues and the growth of its backlog. Amidst a favorable funding landscape bolstered by the $1.2-trillion U.S. infrastructure bill, AECOM anticipates a sustained growth trajectory for its backlog. Download FREE: How To Profit From Trillions On Spending For Infrastructure >> Want the latest recommendations from Zacks Investment Research?
|
41376cf4-ae9a-4d47-9566-d239a9902ca0
|
Subsets and Splits
No community queries yet
The top public SQL queries from the community will appear here once available.