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712000.0
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2023-12-13 00:00:00 UTC
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Lincoln National (LNC) Inks Deal to Sell Wealth Management Unit
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https://www.nasdaq.com/articles/lincoln-national-lnc-inks-deal-to-sell-wealth-management-unit
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Lincoln National Corporation LNC recently struck a stock purchase deal with the renowned wealth management solutions provider of the United States, Osaic, to divest two of its independent broker-dealer and registered investment advisory firms, Lincoln Financial Advisors Corporation (“LFA”) and Lincoln Financial Securities Corporation (“LFS”). The units form a part of the wealth management business of LNC and contain a combined nationwide network of around 1,450 financial professionals.
Subject to the satisfaction of customary closing conditions, the agreement is likely to be completed in the first half of 2024. Employees who work from home for the wealth management business of Lincoln National will undergo a smooth move to Osaic.
Once the transaction is completed, LNC is likely to receive a capital benefit of around $700 million. The agreement is expected to inflict no significant impact on the ongoing free cash flow or earnings. Management expects to leverage the derived amount primarily for expanding the risk-based capital (“RBC”) ratio. A part of it is also likely to be utilized for repaying the debts of Lincoln National.
Both the purposes seem to be time opportune. The RBC ratio is a measure of the adequacy of statutory capital and surplus with respect to investment and insurance risks for life insurance companies. A fall in the surplus of Lincoln National’s insurance subsidiaries will lead to a decline in their RBC ratios and subsequently, is expected to take a toll on the dividend-paying abilities. Hence, the RBC ratio plays a vital role in deciding the credit and financial strength ratings of LNC and its subsidiaries.
Such moves indicate how management targets to reach an RBC ratio of 400%, for which it has even temporality halted share buybacks till the end of 2023.
The decision to pay off debts with the transaction proceeds seems prudent in light of a considerable debt burden that paves the way for higher interest and debt expenses, which escalated 22% year over year in the first nine months of 2023. Lincoln National’s long-term debt amounted to $5.9 billion as of Sep 30, 2023. As the latest transaction will take care of bringing down the debt burden, LNC can direct its cash reserves to pursue growth investments.
Additionally, by getting rid of the wealth management business, the insurer showcases efforts to boost its focus on expanding its individual insurance solutions and workplace solutions businesses through the utilization of its solid distribution capabilities. Probably, to complement the endeavor, Lincoln National retains its wholesale distribution brand, Lincoln Financial Distributors, which provides an impetus to the organic growth of the company’s retail product suite.
Shares of Lincoln National have gained 11.1% in the past six months compared with the industry’s 10.7% growth.
Image Source: Zacks Investment Research
LNC currently has a Zacks Rank #5 (Strong Sell).
Stocks to Consider
Some better-ranked stocks in the insurance space are Assurant, Inc. AIZ, Reinsurance Group of America, Incorporated RGA and Primerica, Inc. PRI. While Assurant sports a Zacks Rank #1 (Strong Buy), Reinsurance Group and Primerica carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The bottom line of Assurant surpassed estimates in each of the last four quarters, the average surprise being 42.38%. The Zacks Consensus Estimate for AIZ’s 2023 earnings indicates 30.8% growth from the prior-year actual. The consensus mark for revenues suggests a 5.4% rise from the prior-year actual. The consensus estimate for AIZ’s 2023 earnings has moved 14.4% north in the past 60 days.
Reinsurance Group’s earnings beat estimates in three of the trailing four quarters and missed the mark once, the average surprise being 18.81%. The Zacks Consensus Estimate for RGA’s 2023 earnings implies 36.2% rise from the year-ago reported figure. The consensus mark for revenues implies 10.1% growth from the year-ago figure. The consensus mark for RGA’s 2023 earnings has moved 1.9% north in the past 30 days.
The bottom line of Primerica outpaced estimates in each of the trailing four quarters, the average surprise being 7.84%. The Zacks Consensus Estimate for PRI’s 2023 earnings suggests a 39.9% surge from the prior-year reported figure. The consensus mark for revenues implies 3.2% growth from the prior-year reported figure. The consensus mark for PRI’s 2023 earnings has moved 1.9% north in the past 60 days.
Shares of Assurant, Reinsurance Group and Primerica have gained 25%, 11.9% and 7.6%, respectively, in the past six months.
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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
Lincoln National Corporation (LNC) : Free Stock Analysis Report
Assurant, Inc. (AIZ) : Free Stock Analysis Report
Reinsurance Group of America, Incorporated (RGA) : Free Stock Analysis Report
Primerica, Inc. (PRI) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The units form a part of the wealth management business of LNC and contain a combined nationwide network of around 1,450 financial professionals. A fall in the surplus of Lincoln National’s insurance subsidiaries will lead to a decline in their RBC ratios and subsequently, is expected to take a toll on the dividend-paying abilities. As the latest transaction will take care of bringing down the debt burden, LNC can direct its cash reserves to pursue growth investments.
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While Assurant sports a Zacks Rank #1 (Strong Buy), Reinsurance Group and Primerica carry a Zacks Rank #2 (Buy) at present. The Zacks Consensus Estimate for RGA’s 2023 earnings implies 36.2% rise from the year-ago reported figure. Click to get this free report Lincoln National Corporation (LNC) : Free Stock Analysis Report Assurant, Inc. (AIZ) : Free Stock Analysis Report Reinsurance Group of America, Incorporated (RGA) : Free Stock Analysis Report Primerica, Inc. (PRI) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Lincoln National Corporation LNC recently struck a stock purchase deal with the renowned wealth management solutions provider of the United States, Osaic, to divest two of its independent broker-dealer and registered investment advisory firms, Lincoln Financial Advisors Corporation (“LFA”) and Lincoln Financial Securities Corporation (“LFS”). The Zacks Consensus Estimate for RGA’s 2023 earnings implies 36.2% rise from the year-ago reported figure. Click to get this free report Lincoln National Corporation (LNC) : Free Stock Analysis Report Assurant, Inc. (AIZ) : Free Stock Analysis Report Reinsurance Group of America, Incorporated (RGA) : Free Stock Analysis Report Primerica, Inc. (PRI) : Free Stock Analysis Report To read this article on Zacks.com click here.
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You can see the complete list of today’s Zacks #1 Rank stocks here. The consensus mark for RGA’s 2023 earnings has moved 1.9% north in the past 30 days. Click to get this free report Lincoln National Corporation (LNC) : Free Stock Analysis Report Assurant, Inc. (AIZ) : Free Stock Analysis Report Reinsurance Group of America, Incorporated (RGA) : Free Stock Analysis Report Primerica, Inc. (PRI) : Free Stock Analysis Report To read this article on Zacks.com click here.
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712001.0
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2023-12-13 00:00:00 UTC
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Renewable Energy Giants: 3 Stocks Outshining Solar and Wind
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https://www.nasdaq.com/articles/renewable-energy-giants%3A-3-stocks-outshining-solar-and-wind
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Certain renewable energy stocks have shown resilience in the face of cost increases in 2023. Between solar and wind energies, the former outshined the latter by large in January-August 2023 as it saw substantial growth. Utility-scale solar increased by 36% and small-scale by 20%, adding 9GW of solar capacity. In comparison, wind-generated a mere 2.8GW, trimming 57% off in the same period.
Solar’s growth was driven by federal investments in clean energy and the increasing demand for decarbonization from public and private entities. The Infrastructure Investment and Jobs Act (IIJA) and the Inflation Reduction Act (IRA) resulted in increased funding in specific areas. So, the clean hydrogen and storage sectors could also grow in 2024.
The Acts have created funding and tax incentives that could drive third-party-owned solar projects and make green hydrogen more cost-competitive. However, it presumes the Treasury Department will provide favorable guidance to unlock more investments and stimulate the hourly Renewable Energy Credit (REC) market. For context, clean hydrogen funding increased by 222% and storage by 51% since the IIJA/IRA’s inception.
Even the Energy Information Administration (EIA) forecasts that the future might belong to other facets of the energy sector. According to the agency, utility-scale, which includes storage and clean hydrogen, will continue to prosper at a projected growth of 17% next year. This means renewables could constitute nearly a quarter of all electricity generated in the US. Some of the top renewable energy stocks may benefit from the shift.
As federal, state, and corporate funding becomes available in the coming year, the continuous push may set the stage for growth among clean hydrogen and storage giants. Despite a turbulent year for many renewable energy stocks, Enersys, Bloom Energy, and Cummins have emerged as top renewable energy stocks due to their strategic positioning and robust growth.
Enersys (ENS)
Source: Just_Super / Shutterstock.com
Enersys (NYSE:ENS), a long-standing player in the energy storage business, has pivoted focus. It went from lead-acid batteries to lithium-ion and other high-power-density batteries and rigs.
The shift comes at a time when there is a growing demand for solutions in energy storage. The company has a well-established track record in energy storage, a steady income and customer base, and expertise in the storage field. It may be well-positioned to capitalize on the new trend.
In the last fiscal year, the company reported an impressive 86% growth in EPS and record sales. Despite the strong financials, ENS trades at a price-to-earnings (PE) ratio of 16, almost half the industry’s 35. This suggests that the price of the renewable energy stock may be undervalued, considering its growth potential.
Bloom Energy (BE)
Source: petrmalinak / Shutterstock
Next up is Bloom Energy (NYSE:BE). BE produces hydrogen fuel cells, a technology that is seeing increased interest as an energy storage mechanism. With an established client base and years of experience building fuel cells, Bloom Energy could be well-positioned to capture a growing market share.
They reported a 37% growth in Q3 revenue over the prior year, turning their bottom line positive. Although it doesn’t have a formal PE ratio due to its negative trailing twelve months, its consistent growth and positive adjusted EPS point to a promising future.
Year-to-date (YTD), the price of the renewable energy stock remains nearly 30% down, offering a bargain price.
Cummins (CMI)
Source: petrmalinak / Shutterstock
Cummins (NYSE:CMI) is last on the list of top renewable energy stocks. CMI is traditionally known for its diesel engines. However, it is now pivoting in the energy storage and hydrogen sectors. This adaptation to the energy transition puts Cummins in a prime position to take advantage of both renewable sectors.
The company reported a 15% increase in revenue in its latest report, with a significant 106% annual growth in its Accelera segment. Accelera supplies battery electric systems and electrolyzer installations. Despite the impressive numbers, Cummins trades at a PE of 11.8x, lower than the 17x average in the power technology sector, making it an attractive buy.
On the date of publication, Stavros Tousios 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.
Stavros Tousios, MBA, is the founder and chief analyst at Markets Untold. With expertise in FX, macros, equity analysis, and investment advisory, Stavros delivers investors strategic guidance and valuable insights.
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The post Renewable Energy Giants: 3 Stocks Outshining Solar and Wind appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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However, it presumes the Treasury Department will provide favorable guidance to unlock more investments and stimulate the hourly Renewable Energy Credit (REC) market. Although it doesn’t have a formal PE ratio due to its negative trailing twelve months, its consistent growth and positive adjusted EPS point to a promising future. 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 Renewable Energy Giants: 3 Stocks Outshining Solar and Wind appeared first on InvestorPlace.
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Despite a turbulent year for many renewable energy stocks, Enersys, Bloom Energy, and Cummins have emerged as top renewable energy stocks due to their strategic positioning and robust growth. Enersys (ENS) Source: Just_Super / Shutterstock.com Enersys (NYSE:ENS), a long-standing player in the energy storage business, has pivoted focus. Cummins (CMI) Source: petrmalinak / Shutterstock Cummins (NYSE:CMI) is last on the list of top renewable energy stocks.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Certain renewable energy stocks have shown resilience in the face of cost increases in 2023. Despite a turbulent year for many renewable energy stocks, Enersys, Bloom Energy, and Cummins have emerged as top renewable energy stocks due to their strategic positioning and robust growth. Cummins (CMI) Source: petrmalinak / Shutterstock Cummins (NYSE:CMI) is last on the list of top renewable energy stocks.
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So, the clean hydrogen and storage sectors could also grow in 2024. Despite a turbulent year for many renewable energy stocks, Enersys, Bloom Energy, and Cummins have emerged as top renewable energy stocks due to their strategic positioning and robust growth. However, it is now pivoting in the energy storage and hydrogen sectors.
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712002.0
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2023-12-13 00:00:00 UTC
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Afghanistan doubles Russian fuel imports, industry data shows
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https://www.nasdaq.com/articles/afghanistan-doubles-russian-fuel-imports-industry-data-shows
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MOSCOW, Dec 13 (Reuters) - Afghanistan's Taliban government doubled purchases of Russian liquefied petroleum gas (LPG) in the January-November period, according to industry data, as Russia redirects supplies away from Europe amid political fallout from the Ukraine conflict.
Russia has not formally recognised the Taliban as legitimate authorities in Afghanistan, but was one of the first countries to make contacts and clinch business deals with the movement following its return to power in 2021.
Last year, Afghanistan and Russia signed a deal on supplying gasoline, diesel, gas and wheat after Moscow offered the Taliban administration a discount to average global commodity prices.
The move was the first known major international economic deal struck by the Taliban since it returned to power.
According to industry data, Russian LPG supplies to Afghanistan by rail in January-November exceeded 176,000 tons, more than double the deliveries seen in the same period in 2022.
Half of the volumes were delivered from the Orenburg gas processing plant.
Russia's total LPG exports to Central Asia in the first 11 months of the year also doubled, to 390,100 tons.
LPG, or propane and butane, is mainly used as fuel for cars, heating and to produce other petrochemicals.
Russia's LPG exports, unlike oil, have not been targeted by Western sanctions. However, Russia has redirected its supplies away from Europe, including to Central Asia.
Russia's main LPG exporters are Gazprom GAZP.MM, Rosneft ROSN.MM, Lukoil LKOH.MM, Gazprom Neft SIBN.MM and Orsk refinery.
(Reporting by Reuters; writing by Vladimir Soldatkin Editing by Gareth Jones)
((vladimir.soldatkin@thomsonreuters.com; twitter: @vsoldatkin;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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MOSCOW, Dec 13 (Reuters) - Afghanistan's Taliban government doubled purchases of Russian liquefied petroleum gas (LPG) in the January-November period, according to industry data, as Russia redirects supplies away from Europe amid political fallout from the Ukraine conflict. Russia has not formally recognised the Taliban as legitimate authorities in Afghanistan, but was one of the first countries to make contacts and clinch business deals with the movement following its return to power in 2021. Last year, Afghanistan and Russia signed a deal on supplying gasoline, diesel, gas and wheat after Moscow offered the Taliban administration a discount to average global commodity prices.
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MOSCOW, Dec 13 (Reuters) - Afghanistan's Taliban government doubled purchases of Russian liquefied petroleum gas (LPG) in the January-November period, according to industry data, as Russia redirects supplies away from Europe amid political fallout from the Ukraine conflict. According to industry data, Russian LPG supplies to Afghanistan by rail in January-November exceeded 176,000 tons, more than double the deliveries seen in the same period in 2022. Russia's total LPG exports to Central Asia in the first 11 months of the year also doubled, to 390,100 tons.
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MOSCOW, Dec 13 (Reuters) - Afghanistan's Taliban government doubled purchases of Russian liquefied petroleum gas (LPG) in the January-November period, according to industry data, as Russia redirects supplies away from Europe amid political fallout from the Ukraine conflict. Russia has not formally recognised the Taliban as legitimate authorities in Afghanistan, but was one of the first countries to make contacts and clinch business deals with the movement following its return to power in 2021. Last year, Afghanistan and Russia signed a deal on supplying gasoline, diesel, gas and wheat after Moscow offered the Taliban administration a discount to average global commodity prices.
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MOSCOW, Dec 13 (Reuters) - Afghanistan's Taliban government doubled purchases of Russian liquefied petroleum gas (LPG) in the January-November period, according to industry data, as Russia redirects supplies away from Europe amid political fallout from the Ukraine conflict. Russia has not formally recognised the Taliban as legitimate authorities in Afghanistan, but was one of the first countries to make contacts and clinch business deals with the movement following its return to power in 2021. The move was the first known major international economic deal struck by the Taliban since it returned to power.
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309285c5-3805-403b-95b3-89a4a6e98786
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712003.0
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2023-12-13 00:00:00 UTC
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Oil & Gas Stock Roundup: M&A, Corporate Announcements Take Center Stage
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https://www.nasdaq.com/articles/oil-gas-stock-roundup%3A-ma-corporate-announcements-take-center-stage
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It was yet another week when both oil and natural gas prices posted losses.
The headlines revolved around energy producer Occidental Petroleum’s OXY $12 billion deal to acquire Texas shale driller CrownRock LP and American biggie ExxonMobil’s XOM five-year corporate plan. Developments associated with Chevron CVX, Phillips 66 PSX and Hess Corporation HES also grabbed attention.
Overall, it was a bearish seven-day period for the sector. West Texas Intermediate (WTI) crude futures decreased around 3.8% to close at $71.23 per barrel, while natural gas prices moved down 8.3% to end at $2.581 per million British thermal units (MMBtu).
The crude price action remained negative for the seventh week running on demand concerns after government data showed record-high production. Even the OPEC+ announcement of nearly 2 million barrels per day of additional production cuts was unable to shore up oil prices as the market looked for stronger commitments.
Meanwhile, natural gas slumped to a three-and-a-half-month low, overwhelmed by high production and insipid weather-related demand.
Recap of the Week’s Most Important Stories
1. Houston, TX-based energy company Occidental Petroleum has entered into a purchase agreement to acquire Midland-based oil and gas producer CrownRock L.P. The buyout will take place in a cash and stock deal worth approximately $12 billion, including the assumption of CrownRock’s outstanding debt.
Occidental plans to fund the acquisition by taking on $9.1 billion in new debt, issuing about $1.7 billion in common stock and taking over CrownRock's $1.2 billion in outstanding debt. With the fulfillment of normal closing requirements and the acquisition of regulatory clearances, the deal is expected to close in the first quarter of 2024.
This agreement enhances Occidental’s premier Permian portfolio with the addition of 170,000 barrels of oil equivalent per day (Mboed) of high-margin, lower-decline unconventional production and about 1,700 undeveloped sites in 2024. On a diluted share basis, higher free cash flow is anticipated, with $1 billion in the first year based on $70 per barrel WTI. (Occidental to Buy CrownRock in a $12B Cash & Stock Deal)
2. U.S. supermajor ExxonMobil expects a substantial rise in its earnings potential through 2027, with upstream earnings projected to more than double from the 2019 reported level. The outlook is underpinned by robust production growth in the Permian Basin and Guyana.
XOM mentioned that effective implementation of its strategic initiatives since 2019 enhanced its earnings capacity, contributing about $10 billion to its annual earnings and cash flow at a real Brent price of $60 per barrel. The company is progressing toward achieving an additional $14 billion in earnings and cash flow growth potential over the next four years.
The company predicts a production increase to 3.8 million barrels of oil equivalent per day (Boe/d) in 2024, up from this year’s 3.7 million Boe/d, as it places its confidence in growth from the Permian shale basin and Guyana. OM indicated that it anticipates maintaining a flat production until the end of this year, standing at 3.7 million Boe/d primarily due to its withdrawal from Russia. (ExxonMobil Expects Raised Earnings & Oil Production)
3. Small rival Chevron recently outlined its planned capital expenditure for 2024, focusing on strategic investments in both traditional and new energy sectors. The company expects to spend between $15.5 billion and $16.5 billion on capital projects for its consolidated subsidiaries, with an additional $3 billion allocated for affiliate ventures. This announcement not only signifies a financial plan but also serves as a roadmap for Chevron's commitment to sustainable growth and innovation.
Chevron's upstream spending for 2024 is poised at an impressive $14 billion, with a significant allocation to the United States. Approximately $6.5 billion is reserved for the development of the Zacks Rank #3 (Hold) company’s U.S. shale and tight portfolio. Within this, a noteworthy $5 billion is dedicated to the Permian Basin development, showcasing Chevron's commitment to harnessing the potential of this prolific resource.
You can see the complete list of today’s Zacks #1 Rank stocks here.
A substantial 25% of U.S. upstream Capex is reserved for projects in the Gulf of Mexico. Among these, the Anchor project stands out with an objective to achieve its first oil in 2024. Chevron's strategic investments in this region underscore its dedication to diversification and tapping into diverse energy sources. (Chevron Raises 2024 Capex, Eyes Lower Carbon Future)
4. Phillips 66 disclosed a 2024 capital budget of $2.2 billion, with $923 million allocated to sustaining capital and $1.3 billion for growth capital. The figure is lower than the downstream operator’s projected capital spending for 2023, which is estimated at $2.5 billion. The budget aligns with PSX’s strategic goal of returning $13-$15 billion to shareholders by the end of 2024.
The sustaining capital budget incorporates $300 million in efficiencies achieved through the company’s business transformation initiatives. Before the business transformation, Phillips 66 historically spent an average of $1 billion per year on sustaining capital. With the inclusion of DCP Midstream consolidation, an additional $200 million in sustaining capital is accounted for.
Phillips 66 intends to allocate $1.1 billion in Refining, with $412 million allocated for sustaining capital. The Refining growth capital of $654 million encompasses the completion of the San Francisco Refinery conversion in Rodeo, transforming it into one of the world’s largest renewable fuels facilities. The capital budget includes initiatives aimed at enhancing the refining performance. (Phillips 66 Announces $2.2B Capital Expenditure for 2024).
5. Chevron and Hess disclosed that they have received a request for additional information from the Federal Trade Commission (FTC) concerning the former’s planned $53 billion deal to acquire the upstream explorer. This disclosure, found in an 8-K filing, underscores the heightened regulatory scrutiny surrounding major business transactions.
The companies have pledged to respond promptly to the second request, emphasizing their commitment to working cooperatively with the FTC throughout the review process. It's worth noting that the Hart-Scott-Rodino waiting period is now extended until 30 days after both CVX and HES have substantially complied with this additional request.
As CVX and HES navigate the intricate web of regulatory requirements, transparency and cooperation with the FTC emerge as the cornerstones of a successful merger. The companies are positioned to demonstrate not only the strategic benefits of the deal but also their commitment to adhering to antitrust regulations and fostering a competitive marketplace. (Chevron-Hess' $53B Merger Faces Regulatory Scrutiny).
Price Performance
The following table shows the price movement of some major oil and gas players over the past week and during the last six months.
Company Last Week Last 6 Months
XOM -3.3% -7.2%
CVX -0.3% -9.1%
COP -2.7% +8%
OXY -3.7% -3.8%
SLB -6.4% +3.4%
RIG -10.8% -6.9%
VLO -2.8% +8.9%
MPC -5.5% +27.3%
With oil and gas moving down for the week, stocks were mostly negative. The Energy Select Sector SPDR — a popular way to track energy companies — fell 3.3% last week. But over the past six months, the sector tracker has increased 1.2%.
What’s Next in the Energy World?
As usual, market participants will closely track the regular releases to look for guidance on the direction of the commodities. In this context, the U.S. Government’s statistics on oil and natural gas — one of the few solid indicators that come out regularly — will be on energy traders' radar. Data on rig count from the oilfield service firm Baker Hughes, which is a pointer to the trends in U.S. crude/natural gas production, is closely followed, too.
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
Chevron Corporation (CVX) : Free Stock Analysis Report
Exxon Mobil Corporation (XOM) : Free Stock Analysis Report
Hess Corporation (HES) : Free Stock Analysis Report
Occidental Petroleum Corporation (OXY) : Free Stock Analysis Report
Phillips 66 (PSX) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The headlines revolved around energy producer Occidental Petroleum’s OXY $12 billion deal to acquire Texas shale driller CrownRock LP and American biggie ExxonMobil’s XOM five-year corporate plan. West Texas Intermediate (WTI) crude futures decreased around 3.8% to close at $71.23 per barrel, while natural gas prices moved down 8.3% to end at $2.581 per million British thermal units (MMBtu). This agreement enhances Occidental’s premier Permian portfolio with the addition of 170,000 barrels of oil equivalent per day (Mboed) of high-margin, lower-decline unconventional production and about 1,700 undeveloped sites in 2024.
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The headlines revolved around energy producer Occidental Petroleum’s OXY $12 billion deal to acquire Texas shale driller CrownRock LP and American biggie ExxonMobil’s XOM five-year corporate plan. Phillips 66 disclosed a 2024 capital budget of $2.2 billion, with $923 million allocated to sustaining capital and $1.3 billion for growth capital. Click to get this free report Chevron Corporation (CVX) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Hess Corporation (HES) : Free Stock Analysis Report Occidental Petroleum Corporation (OXY) : Free Stock Analysis Report Phillips 66 (PSX) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The company expects to spend between $15.5 billion and $16.5 billion on capital projects for its consolidated subsidiaries, with an additional $3 billion allocated for affiliate ventures. Phillips 66 disclosed a 2024 capital budget of $2.2 billion, with $923 million allocated to sustaining capital and $1.3 billion for growth capital. Click to get this free report Chevron Corporation (CVX) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Hess Corporation (HES) : Free Stock Analysis Report Occidental Petroleum Corporation (OXY) : Free Stock Analysis Report Phillips 66 (PSX) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The company predicts a production increase to 3.8 million barrels of oil equivalent per day (Boe/d) in 2024, up from this year’s 3.7 million Boe/d, as it places its confidence in growth from the Permian shale basin and Guyana. Phillips 66 disclosed a 2024 capital budget of $2.2 billion, with $923 million allocated to sustaining capital and $1.3 billion for growth capital. Download FREE: How To Profit From Trillions On Spending For Infrastructure >> Want the latest recommendations from Zacks Investment Research?
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d5d42bf4-a90b-4f49-a93d-88395d7c37dc
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712004.0
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2023-12-13 00:00:00 UTC
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Where Will Tesla Be in 10 Years?
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https://www.nasdaq.com/articles/where-will-tesla-be-in-10-years-0
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Quickly rising to become the most valuable automaker, Tesla's (NASDAQ: TSLA) journey has been nothing short of historic. Since making its public debut 14 years ago, Tesla's remarkable success has made it synonymous with the electric vehicle (EV) industry, paving the way for a more sustainable future.
While the company's ability to mass-produce EVs lies at the core of its success, there are several other technological frontiers Tesla is pioneering that will ensure it remains on its historic trajectory. Let's take a look at what the future holds for Tesla and where it could be in the next 10 years.
Image source: Getty Image.
EV growth continues
Thanks to its vertically integrated supply chain, strategic location of factories, and embrace of technology, Tesla has scaled its manufacturing process to become the top producer of EVs in the world. This unique business model has helped it go from producing just under 250,000 vehicles in 2018 to around 1.8 million in 2023.
While there are concerns that an increasing number of competitors are joining the EV race, they face an uphill battle to unseat Tesla. With the addition of a new factory in Mexico and possible future locations in Thailand and India, CEO Elon Musk seems to be set on accomplishing his ambitious goal of producing more than 20 million EVs in a year by 2030.
Image source: The Motley Fool.
Although this goal might be a bit overzealous, there is no doubt Tesla will increase its production capacity over the coming years and is still in a prime position to benefit from exponential growth of EV adoption. With estimates projecting that two-thirds of global auto sales will be EVs by 2030, I'd be willing to bet Tesla still reigns supreme over the market 10 years from now.
Creating the autonomous future
As it currently stands, Tesla generates the bulk of its profits from EVs. But should all go to plan, Musk believes the company's pursuit of autonomous driving will create a new lucrative business endeavor -- robotaxis.
Although Tesla still has some progress to make before completely eradicating the need for drivers, the company has made significant progress. Thanks to a major breakthrough with its full self-driving software, the launch of a robotaxi fleet is less of an if and more of a when.
Musk thinks that when robotaxis become a reality, it will be a moment talked about 100 years from now and the catalyst that could send Tesla to a $10 trillion valuation. And he isn't alone in this thinking. Based on a report from Ark Invest, analysts estimate that robotaxis could make up more than half of total revenue and bring in around $450 billion to $600 billion, a dramatic increase from Tesla's $80 billion in revenue today.
Musk predicts full autonomy for vehicles will be achieved in 2024. This is probably a bit optimistic, but based on Tesla's track record of achievement, it seems like a safe bet that the company will solve the autonomy problem in the next 10 years and eventually launch its robotaxi fleet.
A real long-term growth opportunity
Tesla has become the most valuable automaker and the seventh most valuable company globally for many reasons. With the ability to generate positive cash flow in the notoriously capital-intensive auto industry, Tesla is reinvesting profits to push technological boundaries, widen its economic moat, and cement its spot at the top.
Although recent economic challenges like inflation and high interest rates have dampened growth prospects in the near term, these will prove to be minor speed bumps on Tesla's journey. Few other companies hold as much long-term upside as Tesla. Don't be surprised if it becomes the most valuable company in the world a decade from now.
Where to invest $1,000 right now
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RJ Fulton has positions in Tesla. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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With the addition of a new factory in Mexico and possible future locations in Thailand and India, CEO Elon Musk seems to be set on accomplishing his ambitious goal of producing more than 20 million EVs in a year by 2030. This is probably a bit optimistic, but based on Tesla's track record of achievement, it seems like a safe bet that the company will solve the autonomy problem in the next 10 years and eventually launch its robotaxi fleet. With the ability to generate positive cash flow in the notoriously capital-intensive auto industry, Tesla is reinvesting profits to push technological boundaries, widen its economic moat, and cement its spot at the top.
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Quickly rising to become the most valuable automaker, Tesla's (NASDAQ: TSLA) journey has been nothing short of historic. Based on a report from Ark Invest, analysts estimate that robotaxis could make up more than half of total revenue and bring in around $450 billion to $600 billion, a dramatic increase from Tesla's $80 billion in revenue today. After all, the newsletter they have run for two decades, Motley Fool Stock Advisor, has more than tripled the market.
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Since making its public debut 14 years ago, Tesla's remarkable success has made it synonymous with the electric vehicle (EV) industry, paving the way for a more sustainable future. EV growth continues Thanks to its vertically integrated supply chain, strategic location of factories, and embrace of technology, Tesla has scaled its manufacturing process to become the top producer of EVs in the world. This is probably a bit optimistic, but based on Tesla's track record of achievement, it seems like a safe bet that the company will solve the autonomy problem in the next 10 years and eventually launch its robotaxi fleet.
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Let's take a look at what the future holds for Tesla and where it could be in the next 10 years. Image source: The Motley Fool. After all, the newsletter they have run for two decades, Motley Fool Stock Advisor, has more than tripled the market.
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712005.0
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2023-12-13 00:00:00 UTC
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Why Is Everyone Talking About Altria?
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https://www.nasdaq.com/articles/why-is-everyone-talking-about-altria
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If you are an income-focused investor, a stock with a 9.5% dividend yield is probably enticing. Add in the fact that the dividend has been increased every year for over a decade and the story gets even better. Now consider that the stock in question, Altria (NYSE: MO), hails from the generally conservative consumer staples sector and you might be ready to back up the truck.
But don't buy in just yet -- there's more you need to know.
Altria is an industry-leading company
To give credit where credit is due, Altria is the name to beat in the North American cigarette market. Its Marlboro brand has a 42.3% market share, which is an incredible number. Overall the company's market share is around 47%. Think about that for a second -- nearly half of all cigarettes sold in the United States are made by Altria.
Image source: Getty Images.
And while you might not think highly of smoking yourself, cigarettes are addictive, so there is a very loyal customer base. That is why Altria falls into the consumer staples category, since its products are bought regularly regardless of what is going on in the world. This steady demand is what has allowed the company to continually increase its prices and steadily increase its dividend over time. These facts are key fundamentals that back the "buy" story with Altria.
But there's a negative understory here that you really can't ignore. Cigarette smoking is coming under increasing pressure socially and from new products like vaping. So while Altria is a giant in the industry, there are very real reasons to be worried about the long-term future here.
Most investors should stay away from Altria
Investors favor consumer staples companies because of their slow and steady growth trends. While Altria's dividend suggests that story holds here as well, the truth is that Altria's business is in decline. The ability to push price increases through to consumers is what helps keep the dividend on the growth path. But at some point, the company won't be able to keep hiking prices to offset the volume declines it is seeing because the prices themselves will begin to add to the shift away from cigarettes.
Some numbers help. In the third quarter of 2023, cigarette volume declined 11.6% year over year. That's a massive drop in a single year and should worry investors.
The problem is that it isn't at all unusual. In 2022 volume fell 9.7%. In 2021 the volume decline was 7.5%. Like it or not, consumers are smoking less, and it is impacting Altria in a notable and ongoing way.
The most recent quarterly update was important because Altria noted that "the growth of illicit e-vapor products" was a key headwind, something it hasn't said in the past. Illicit e-vapor products are probably priced more cheaply than Altria's cigarettes, suggesting that price is finally becoming a bigger problem.
To be fair, Altria is trying to build up its own vape business, having recently bought the NJOY brand. But it has attempted to diversify into new areas before and failed, costing investors billions in one-time write-offs. And even if NJOY succeeds where other attempts fail, it will only offset the ongoing declines in traditional cigarettes, which are roughly 88% of the company's business. That's just too big a number to easily be replaced.
Not for risk-averse investors
Simply put, buying Altria risks owning a company that appears very close to bleeding its cash cow to death. The dividend doesn't appear to be at any risk today, but the high dividend yield is a signal from Wall Street that there is material uncertainty here.
It isn't hard to see the problem when you examine the volume trends in the company's most important business. Most investors will probably want to err on the side of caution and avoid Altria.
Should you invest $1,000 in Altria Group right now?
Before you buy stock in Altria Group, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Altria Group wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
See the 10 stocks
*Stock Advisor returns as of December 11, 2023
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.
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Now consider that the stock in question, Altria (NYSE: MO), hails from the generally conservative consumer staples sector and you might be ready to back up the truck. The most recent quarterly update was important because Altria noted that "the growth of illicit e-vapor products" was a key headwind, something it hasn't said in the past. Not for risk-averse investors Simply put, buying Altria risks owning a company that appears very close to bleeding its cash cow to death.
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The most recent quarterly update was important because Altria noted that "the growth of illicit e-vapor products" was a key headwind, something it hasn't said in the past. Illicit e-vapor products are probably priced more cheaply than Altria's cigarettes, suggesting that price is finally becoming a bigger problem. Before you buy stock in Altria Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Altria Group wasn't one of them.
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Altria is an industry-leading company To give credit where credit is due, Altria is the name to beat in the North American cigarette market. While Altria's dividend suggests that story holds here as well, the truth is that Altria's business is in decline. Before you buy stock in Altria Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Altria Group wasn't one of them.
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But don't buy in just yet -- there's more you need to know. Most investors should stay away from Altria Investors favor consumer staples companies because of their slow and steady growth trends. Before you buy stock in Altria Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Altria Group wasn't one of them.
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ffd98ce7-9f54-4dcd-8350-29bae4b3d6f8
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712006.0
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2023-12-13 00:00:00 UTC
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3 Gene-Editing Stocks With the Potential to Mint Millionaires
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https://www.nasdaq.com/articles/3-gene-editing-stocks-with-the-potential-to-mint-millionaires
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Gene editing stocks have received a lot of attention throughout 2023. The intense focus on gene editing therapies and CRISPR technology is likely only to increase moving forward: The U.S. Food and Drug Administration (FDA) just approved the world’s first medicine employing CRISPR technology.
The technology allows scientists to splice and edit the DNA in ways that were never possible before. CRISPR received the Nobel Prize in chemistry in 2020.
Since then many scientific and biopharmaceutical firms have continued to seek methods to commercialize the technology. It has the potential to cure a broad range of diseases. Given its recent approval by the FDA for use in treating sickle cell disease, it’s likely that more and more gene editing stocks are going to grow.
CRISPR Therapeutics (CRSP)
Source: rafapress / Shutterstock.com
CRISPR Therapeutics (NASDAQ:CRSP) Is the big winner as the first gene editing therapies come to market. The company developed one of the two FDA-approved therapies along with Vertex Pharmaceuticals (NASDAQ:VRTX). The other approved therapy was developed by Bluebird Bio (NASDAQ:BLUE).
However, The label for bluebird bio’s treatment included a warning that some patients who had received the treatment developed cancer. The markets did not respond well to the information and its shares fell by 1/3.
CRISPR Therapeutics developed its therapeutic For the treatment of sickle cell disease under the trade name Casgevy. The treatment uses a patient’s cell and is developed inside of a lab rather than inside their bodies. While that eliminates certain risks, it also requires chemotherapy. That is a significant downside for patients along with a $2.2 million price tag.
It is expected that some insurers will deny coverage of the therapy, limiting its potential commercial success. Further, The chemotherapy regimen required is very intensive and results in infertility. Regardless, CRISPR Therapeutics is first to the market and the company continues to develop other therapies for related blood disorders including beta thalassemia.
Caribou Biosciences (CRBU)
Source: Matej Kastelic / Shutterstock
Caribou Biosciences (NASDAQ:CRBU) continues to develop gene-edited therapies for the treatment of cancer. The firm’s pipeline of clinical trials spans three therapies in Stage 1.
The first is a study to try and find a treatment of refractory B cell Non-Hodgkin’s lymphoma. The other two programs are for myeloma and leukemia, respectively. The company anticipates that it will share FDA feedback regarding its lymphoma program by the end of the year. The company is currently enrolling patients in one of its other two programs and intends to begin enrollment of patients in the remaining program in 2024.
At the end of the third quarter of the company had $396.7 million in liquidity. The company expects that funding to keep it operational through the fourth quarter of 2025 at least. Caribou Biosciences’ shares currently trade for just below $6 and have the potential to multiply in value several times.
Intellia Therapeutics (NTLA)
Source: rafapress / Shutterstock.com
Intellia Therapeutics (NASDAQ:NTLA) has developed a pipeline of in-vivo and ex-vivo therapies, many in partnership with Regeneron (NASDAQ:REGN). In-vivo therapies deliver cells directly into the patient’s body whereas ex-vivo therapies remove those cells, modify them and reintroduce them into the patient’s body. CRISPR’s Casgevy is an example of an ex-vivo therapy.
Intellia Therapeutics’ lead program is NTLA-2001. The program is being studied for its efficacy in treating transthyretin amyloidosis. The disease is characterized by a buildup of abnormal proteins called fibrils. Those proteins can concentrate in the nerves and the heart, weakening its pumping mechanism.
The disease affects thousands of patients worldwide with those afflicted having a life expectancy of 2 to 15 years from diagnosis. Intellia Therapeutics and its NTLA-2001 program employ gene editing to reduce circulating levels of the abnormal protein. That program is currently approaching late stage clinical trials and if successful promises to multiply the value of NTLA stock.
On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks. Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.
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The post 3 Gene-Editing Stocks With the Potential to Mint Millionaires appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing. More From InvestorPlace ChatGPT IPO Could Shock the World, Make This Move Before the Announcement Musk’s “Project Omega” May Be Set to Mint New Millionaires. The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors The post 3 Gene-Editing Stocks With the Potential to Mint Millionaires appeared first on InvestorPlace.
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CRISPR Therapeutics (CRSP) Source: rafapress / Shutterstock.com CRISPR Therapeutics (NASDAQ:CRSP) Is the big winner as the first gene editing therapies come to market. Caribou Biosciences (CRBU) Source: Matej Kastelic / Shutterstock Caribou Biosciences (NASDAQ:CRBU) continues to develop gene-edited therapies for the treatment of cancer. Intellia Therapeutics (NTLA) Source: rafapress / Shutterstock.com Intellia Therapeutics (NASDAQ:NTLA) has developed a pipeline of in-vivo and ex-vivo therapies, many in partnership with Regeneron (NASDAQ:REGN).
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CRISPR Therapeutics (CRSP) Source: rafapress / Shutterstock.com CRISPR Therapeutics (NASDAQ:CRSP) Is the big winner as the first gene editing therapies come to market. Intellia Therapeutics (NTLA) Source: rafapress / Shutterstock.com Intellia Therapeutics (NASDAQ:NTLA) has developed a pipeline of in-vivo and ex-vivo therapies, many in partnership with Regeneron (NASDAQ:REGN). In-vivo therapies deliver cells directly into the patient’s body whereas ex-vivo therapies remove those cells, modify them and reintroduce them into the patient’s body.
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CRISPR Therapeutics developed its therapeutic For the treatment of sickle cell disease under the trade name Casgevy. The company anticipates that it will share FDA feedback regarding its lymphoma program by the end of the year. Intellia Therapeutics (NTLA) Source: rafapress / Shutterstock.com Intellia Therapeutics (NASDAQ:NTLA) has developed a pipeline of in-vivo and ex-vivo therapies, many in partnership with Regeneron (NASDAQ:REGN).
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2023-12-13 00:00:00 UTC
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3 No-Brainer Stocks to Buy With $10 Right Now
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https://www.nasdaq.com/articles/3-no-brainer-stocks-to-buy-with-%2410-right-now-0
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Over the span of a few months or a couple of years, Wall Street is highly unpredictable. Since this decade began, the ageless Dow Jones Industrial Average, broad-based S&P 500, and growth-fueled Nasdaq Composite have traded off bull and bear markets on a few occasions.
However, panning out drastically changes this perspective. Over multidecade periods, the stock market is a leading creator of wealth, with annualized returns that outpace the bond market, gold, oil, and housing. It means that any significant downturn in the major stock indexes represents a surefire buying opportunity for long-term investors -- and (hint, hint!) all three major stock indexes are currently below their all-time highs set roughly two years ago.
Image source: Getty Images.
What's particularly advantageous for retail investors is that most barriers to investment have been dismantled in recent years. A majority of online brokerages no longer charge commission fees for transactions on major U.S. exchanges, and they've also done away with minimum deposit requirements. When coupled with the ability to access fractional-share purchases, any amount of money -- even the $10 you have sitting in your wallet -- can be the ideal figure to put to work.
If you have $10 ready to invest, and this isn't cash you'll need to cover bills or other obligations, the following three stocks stand out as no-brainer buys right now.
Sirius XM Holdings
The first phenomenal stock you can add to your portfolio with just $10 is none other than satellite-radio operator Sirius XM Holdings (NASDAQ: SIRI).
Most radio operators generate a lot of their revenue from advertising. Though ad-driven operating models work great most of the time, they can struggle mightily when advertisers pare back their spending during inevitable contractions or recessions. With some key money-based metrics and predictive indicators calling for a possible U.S. recession in 2024, it's not surprising to see Sirius XM's stock weighed down.
However, lumping Sirius XM in with terrestrial and online radio operators would be a big mistake for a couple of reasons.
For one, Sirius XM's revenue channels are quite different from traditional radio operators. Through the first nine months of 2023, Sirius XM generated only 19% of its net sales from advertising (primarily via Pandora Media, which it acquired in 2019). By comparison, approximately 78% of net sales can be traced to subscriptions. Whereas advertisers are quick to pull the plug during economic contractions and recessions, subscribers are far less likely to cancel their service. This leads to predictable cash flow for Sirius XM in virtually any economic climate.
To build on the point above, Sirius XM's operating cash flow is buoyed by the predictability of some of its expenses. Although certain costs, such as royalties and programming/content, are going to deviate from quarter to quarter, transmission and equipment expenses are relatively fixed. As the company grows its subscriber count over time, operating margins should expand.
Don't overlook the obvious, either. Sirius XM is the only legally authorized satellite-radio operator. When push comes to shove, it's had no trouble passing along higher prices to its subscribers to offset the effects of inflation.
A forward price-to-earnings ratio of 15 represents the cheapest forward-year valuation for Sirius XM since it became a public company.
Redfin
A second no-brainer stock to buy with $10 right now is technology-driven real estate company Redfin (NASDAQ: RDFN).
There's no denying that the housing market is facing major challenges. According to Redfin's own data, the U.S. housing market, in 2023, was the least affordable it's ever been. A median-earning person would have had to spend 41.4% of their earnings on monthly housing costs. With mortgage rates soaring and most current homeowners locked in at a historically low rate, there's not much incentive for people to move at the moment.
While the housing market isn't going to turn on a dime, Redfin does have well-defined competitive advantages in place that can allow it to outperform over the long run.
The most front-and-center catalyst for Redfin is the company's pricing strategy. Whereas traditional real estate companies charge a listing fee/commission that commonly ranges between 2.5% and 3%, Redfin charges homebuyers and sellers either 1% (if they've previously done business with the company) or 1.5%. With the median-priced U.S. home clocking in at $408,806 in 2023, a difference of up to 2% on listing fees could save someone more than $8,000 compared to traditional real estate companies. This big difference is liable to net Redfin an increased share of existing home sales over time.
Something else to consider is that Redfin closed down its iBuying segment, RedfinNow, due to the recent unpredictability of home prices. With Redfin offloading properties in its portfolio, it'll have far more financial flexibility amid an uncertain economic climate.
But perhaps the top differentiating factor for Redfin is the company's technology-driven focus. Virtual home tours in 3D, as well as its Concierge services, which help sellers maximize the selling price of their home, are some examples of how Redfin is personalizing the homebuying and selling process.
Once again, don't expect Redfin's stock to turn on a dime. But with sustained competitive advantages in tow, the future is looking bright for this small-cap residential real estate stock.
The Nio ET7 sedan hit showrooms in March 2022. Image source: Nio.
Nio
The third no-brainer stock to buy with $10 right now is China-based electric vehicle (EV) maker Nio (NYSE: NIO).
Like the other companies on this list, Nio is contending with some speed bumps at the moment. It's attempting to grow itself from the ground up to mass production, which means it's losing quite a bit of money as it invests for the future. To add, there's been some global softening in EV demand, which has adversely impacted the entire EV industry.
Despite these headwinds, Nio offers a number of sustained catalysts that make it a magnificent stock to buy for patient investors.
To begin with, macrofactors favor Nio's success. Developed countries are eager to reduce their carbon footprint, and moving to clean-energy vehicles is a logical step. This natural shift in consumer and enterprise fleets, coupled with China reopening its economy following roughly three years of stringent COVID-19 lockdowns, creates a path for Nio to shine.
The end of China's zero-COVID mitigation strategy has been especially noticeable in Nio's monthly production figures. After averaging around 10,000 EVs delivered each month in 2022, Nio delivered an average of nearly 18,500 EVs each month during the third quarter. With supply chain issues melting away, it's possible Nio could reach an annual run rate of 600,000 units (50,000 EVs per month) within a year or two, depending on market conditions.
Innovation represents another reason long-term investors can confidently buy Nio stock. Nio recently switched its EVs to a second-generation platform (NT 2.0), which provides improved advanced driver-assistance systems. Since introducing models with NT 2.0, deliveries and demand have rapidly grown.
Lastly, Nio is absolutely swimming in cash. It closed out the September quarter with approximately $6.2 billion in cash, cash equivalents, and various short- and long-term investments. This hearty cash pile will provide a healthy buffer as Nio ramps up its production.
Should you invest $1,000 in Sirius XM right now?
Before you buy stock in Sirius XM, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Sirius XM wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
See the 10 stocks
*Stock Advisor returns as of December 7, 2023
Sean Williams has positions in Redfin and Sirius XM. The Motley Fool has positions in and recommends Nio and Redfin. The Motley Fool recommends the following options: short February 2024 $8 calls on Redfin. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Since this decade began, the ageless Dow Jones Industrial Average, broad-based S&P 500, and growth-fueled Nasdaq Composite have traded off bull and bear markets on a few occasions. This natural shift in consumer and enterprise fleets, coupled with China reopening its economy following roughly three years of stringent COVID-19 lockdowns, creates a path for Nio to shine. With supply chain issues melting away, it's possible Nio could reach an annual run rate of 600,000 units (50,000 EVs per month) within a year or two, depending on market conditions.
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Sirius XM Holdings The first phenomenal stock you can add to your portfolio with just $10 is none other than satellite-radio operator Sirius XM Holdings (NASDAQ: SIRI). This leads to predictable cash flow for Sirius XM in virtually any economic climate. Before you buy stock in Sirius XM, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Sirius XM wasn't one of them.
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Nio The third no-brainer stock to buy with $10 right now is China-based electric vehicle (EV) maker Nio (NYSE: NIO). Before you buy stock in Sirius XM, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Sirius XM wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 7, 2023 Sean Williams has positions in Redfin and Sirius XM.
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Nio The third no-brainer stock to buy with $10 right now is China-based electric vehicle (EV) maker Nio (NYSE: NIO). Should you invest $1,000 in Sirius XM right now? Before you buy stock in Sirius XM, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Sirius XM wasn't one of them.
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2023-12-13 00:00:00 UTC
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Is NextEra Energy Partners Going to $33? 1 Wall Street Analyst Thinks So.
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https://www.nasdaq.com/articles/is-nextera-energy-partners-going-to-%2433-1-wall-street-analyst-thinks-so.
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It wasn't long ago that the stock of NextEra Energy Partners (NYSE: NEP) was trading near $50 per share. Shares then tumbled in late September after the partnership slashed its expectations for the growth rate of distributions to shareholders.
Now Mizuho analyst Anthony Crowdell thinks shares have plunged too far. This week, Crowdell cut his firm's price target from $40 to $33, but reiterated a buy rating. That's because that still represents more than 20% upside for the shares.
Growth rate cut in half
Prior to the late September update, NextEra Partners told investors it expected to grow distributions to shareholders at an annual rate of 12% to 15% through 2026. In the second quarter, it did in fact declare a distribution boost of about 12% compared to last year. But it surprised investors in September by announcing a revision saying it would now target just 6% annual growth through at least 2026.
You can blame interest rates for the change. NextEra Partners is a limited partnership that acquires and owns clean energy projects for its parent company, NextEra Energy. It pays out its funds from operations to shareholders as a distribution. So it taps the debt and equity markets for capital to support its growth. With interest rates at the highest level in more than a decade, more money needs to go to debt repayments.
A buy rating makes sense
The Mizuho analyst reacted to that change by slashing his price target to $40 from $86 when NextEra Partners announced the change in distribution growth expectations. This week's cut to $33 per share reflects the feeling among investors that interest rates will remain higher than what has been the norm for the past decade.
But individual investors can take advantage of that feeling. That's because while still higher than in the recent past, there is also an overwhelming expectation that the direction for rates will be down from here. Inflation slowed to an annual rate of 3.1% in November, and many market followers expect the Federal Reserve to begin cutting rates next year.
Don't lose track of the fact that the distribution wasn't cut -- only the growth rate was cut. That means now is the time to get into income-oriented investments like NextEra Energy Partners. It may not take much good news on the interest rate front to see the gain of 20% or so that Mizuho predicts.
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.
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Howard Smith has positions in NextEra Energy. The Motley Fool has positions in and recommends NextEra Energy. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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It wasn't long ago that the stock of NextEra Energy Partners (NYSE: NEP) was trading near $50 per share. Shares then tumbled in late September after the partnership slashed its expectations for the growth rate of distributions to shareholders. This week's cut to $33 per share reflects the feeling among investors that interest rates will remain higher than what has been the norm for the past decade.
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Growth rate cut in half Prior to the late September update, NextEra Partners told investors it expected to grow distributions to shareholders at an annual rate of 12% to 15% through 2026. A buy rating makes sense The Mizuho analyst reacted to that change by slashing his price target to $40 from $86 when NextEra Partners announced the change in distribution growth expectations. 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.
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Growth rate cut in half Prior to the late September update, NextEra Partners told investors it expected to grow distributions to shareholders at an annual rate of 12% to 15% through 2026. A buy rating makes sense The Mizuho analyst reacted to that change by slashing his price target to $40 from $86 when NextEra Partners announced the change in distribution growth expectations. 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.
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Growth rate cut in half Prior to the late September update, NextEra Partners told investors it expected to grow distributions to shareholders at an annual rate of 12% to 15% through 2026. This week's cut to $33 per share reflects the feeling among investors that interest rates will remain higher than what has been the norm for the past decade. 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.
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712009.0
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2023-12-13 00:00:00 UTC
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Can Shiba Inu Reach $0.01?
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https://www.nasdaq.com/articles/can-shiba-inu-reach-%240.01-4
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Even though Shiba Inu (CRYPTO: SHIB) has likely been one of the most volatile cryptocurrencies out there, it has still been a big winner for those daring speculators who put their money behind it. Although the token is 89% below its peak price, it has crushed the stock market since its launch back in 2020.
Some fervent Shiba Inu bulls probably have their sights set on a much higher price target, though.
Can this dog-inspired cryptocurrency one day reach $0.01? This would translate to a monster gain of more than 1,000-fold from today's price. Let's dive in and find out if this is a possibility.
Overview of Shiba Inu
Shiba Inu was created to be more functional than its dog-themed rival, Dogecoin, which is its own blockchain. Shiba Inu, by contrast, was built on top of the Ethereum network. Because of this design decision, Shiba Inu works with smart contracts and decentralized applications.
People can use Shiba Inu's token to send or receive payments to others. And perhaps more meaningful, the token can be used to pay for things at select merchants. But according to cryptwerk.com, only 792 businesses accept payment with Shiba Inu, so it has barely made any headway in this area.
Developers recently launched Shibarium, which is a Layer-2 scaling solution that is meant to improve transaction speeds and lower fees for users. There has been heightened excitement around this update. And it could propel Shiba Inu's adoption in terms of non-fungible tokens or the metaverse. At least that's the hope of the network's supporters.
Despite the aims to raise the utility of Shiba Inu, it's worth mentioning that this token has really only been used as a tool for financial speculation. This is the case with all cryptocurrencies out there, including Bitcoin and Ethereum.
Missing the rally
It's disheartening for Shiba Inu believers to see that the token hasn't performed that well in 2023, rising just 20% (as of Dec. 12). The overall crypto market, on the other hand, has been a huge winner, going from $800 billion at the start of the year to almost $1.6 trillion today.
Moreover, both Bitcoin and Ethereum, as well as some of the largest tech stocks, have had wonderful runs this year.
Amid a resurgence in investor optimism and a risk-seeking attitude, it makes you wonder why Shiba Inu hasn't participated more in the stock and crypto rallies in 2023. If the token can't rise in this environment, what will it take for Shiba Inu to grow?
Avoid this token
Now that readers have a better understanding of Shiba Inu and its recent price performance, it's time to think critically about the possibility of the token soaring more than 1,000-fold and reaching $0.01.
To be clear, I don't think this is a possibility. And I wouldn't bet any money on this outcome happening.
Based on Shiba Inu's current token supply of 589 trillion, at a price of $0.01 per token, the total market cap would be roughly $5.9 trillion. It's wild to believe that a token with virtually no real-world utility can command this type of valuation.
Based on that gargantuan figure, Shiba Inu would be worth more than Apple, maybe the most successful business of all time based on its market valuation of about $3 trillion. This tech giant is a cultural icon with a powerful brand that sells incredibly popular hardware and software products. There's no rational way to believe that Shiba Inu is worth double that of an enterprise like this.
It's best not to get sucked into the hype and the allure of financial speculation. Investors should avoid this crypto like the plague.
10 stocks we like better than Shiba Inu
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 Shiba Inu 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 November 29, 2023
Neil Patel and his clients have positions in Bitcoin. The Motley Fool has positions in and recommends Apple, Bitcoin, and Ethereum. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Even though Shiba Inu (CRYPTO: SHIB) has likely been one of the most volatile cryptocurrencies out there, it has still been a big winner for those daring speculators who put their money behind it. Developers recently launched Shibarium, which is a Layer-2 scaling solution that is meant to improve transaction speeds and lower fees for users. Amid a resurgence in investor optimism and a risk-seeking attitude, it makes you wonder why Shiba Inu hasn't participated more in the stock and crypto rallies in 2023.
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Overview of Shiba Inu Shiba Inu was created to be more functional than its dog-themed rival, Dogecoin, which is its own blockchain. Avoid this token Now that readers have a better understanding of Shiba Inu and its recent price performance, it's time to think critically about the possibility of the token soaring more than 1,000-fold and reaching $0.01. Based on Shiba Inu's current token supply of 589 trillion, at a price of $0.01 per token, the total market cap would be roughly $5.9 trillion.
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Overview of Shiba Inu Shiba Inu was created to be more functional than its dog-themed rival, Dogecoin, which is its own blockchain. Avoid this token Now that readers have a better understanding of Shiba Inu and its recent price performance, it's time to think critically about the possibility of the token soaring more than 1,000-fold and reaching $0.01. Based on Shiba Inu's current token supply of 589 trillion, at a price of $0.01 per token, the total market cap would be roughly $5.9 trillion.
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Despite the aims to raise the utility of Shiba Inu, it's worth mentioning that this token has really only been used as a tool for financial speculation. Avoid this token Now that readers have a better understanding of Shiba Inu and its recent price performance, it's time to think critically about the possibility of the token soaring more than 1,000-fold and reaching $0.01. To be clear, I don't think this is a possibility.
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712010.0
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2023-12-13 00:00:00 UTC
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3 of the Most Attractive Dividend Stocks in the Consumer Staples Space
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https://www.nasdaq.com/articles/3-of-the-most-attractive-dividend-stocks-in-the-consumer-staples-space
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Consumer staples have been a defensive sector, especially during market downturns. Historically, they have outperformed the market during bear markets. Although consumer staples dividend stocks have underperformed year to date (YTD), they present a healthy risk-reward as we head into 2024.
So why have consumer staples underperformed, and why do they present opportunity? Rising yields have been one of the major headwinds. Since most investors own consumer staples dividend stocks for income, that thesis has come under pressure from rising yields. According to this JP Morgan report, bonds are now competitive with stocks.
Secondly, the emergence of GLP-1 drugs that help in weight loss has created a lot of apprehension. Notably, these drugs reduce appetite, meaning consumers eat less food and snacks. On the bright side, the selloff YTD has created some bargain opportunities in the packaged foods industry.
Quite possibly, the fear that GLPs will reduce demand is overblown. After all, less than 1% of the global population is on these drugs. Thus, consumer staples could rebound in 2024 as GLP-1 fears dissipate. Additionally, if the economy slows in 2024 consumer staples stocks with dividends could be the perfect defensive stocks.
Coca-Cola (KO)
Source: IgorGolovniov / Shutterstock.com
Coca-Cola (NYSE:KO) has had a pullback from 2023 highs as yields surged in the third quarter. The selloff leaves it in bargain territory with a healthy 3.1% dividend yield. Although it has rebounded from the lows, the risk-reward is still attractive heading into 2024.
The soft drink giant has always been a defensive stock that is ideal for a volatile economic environment. Generally, when economic conditions decline, consumers cut discretionary spending but keep spending on food and drinks. Moreover, the company is well-positioned to deliver under various market conditions.
From a fundamental standpoint, the valuation is reasonable. While the S&P 500 trades at 18.7 x forward earnings, Coca-Cola trades at 21 times. That’s a slight premium for a high-quality business with one of the best returns on equity. Furthermore, shareholders earn a growing 3.1% dividend yield that the company has increased for 61 consecutive years.
Despite the weight-loss drug fears, Coca-Cola has shown impressive revenue growth. Notably, growth has accelerated throughout 2023. Net revenue growth was 5%, 6%, and 8% in Q1, Q2 and Q3, respectively. For the year, management expects 10% to 11% organic revenue growth.
Additionally, free cash flow has strengthened with revenue growth. YTD, it has generated $7.9 billion in free cash flow, an increase of $636 million compared to the prior year’s period. Remarkably, for a company of its size, it also increased its value share in total nonalcoholic ready-to-drink beverages.
Given Coca-Cola’s brand strength, the company can continue to gain value and volume share. This, plus the earnings stability, means it’s one of the best consumer staples dividend stocks. If there is a recession, it can provide stability to your portfolio.
Unilever PLC (UL)
Source: BYonkruud / Shutterstock.com
Unilever PLC (NYSE:UL) has been a turnaround story for a while. Indeed, the company has lagged behind its primary competitor, Procter & Gamble (NYSE:PG). Due to poor operating performance relative to Procter, it trades at a meaningful discount. However, with an activist investor on the board, this gap can close in 2024.
Still, the company is a stalwart among consumer staples dividend stocks. Notably, over 80% of sales come from brands that are first or second place in their category. This strong market position highlights the strong brands the company owns.
To return to faster growth, management has initiated an action plan to improve performance. First, the company has decided to focus on its 30 major brands that account for over 70% of sales. With increased brand investment in power brands like Dove, the firm can accelerate growth.
Secondly, the company plans to improve gross margins and hence profitability. Management expects that premiumization efforts will enhance the product mix. Additionally, more productivity gains will materialize from operating efficiencies, network optimization, and competitive buying.
Under the new action plan, management expects 3-5% sales growth and margin expansion. If these plans succeed, UL stock is a bargain. It trades at 16 times 2023 earnings compared to Procter’s 20. That’s a significant gap that could close as management executes its action plan. Meanwhile, investors earn a 3.8% dividend as this turnaround takes shape.
Hershey (HSY)
Source: shutterstock.com/VG Foto
Hershey (NYSE:HSY) has been one of the most consistent consumer staples dividend stocks. Over the past five years, it has compounded revenues at a 7.5% annual rate. Moreover, the growth rate has accelerated over the last 3 years to 11.5%.
The revenue acceleration has flowed directly to the bottom line, showing incredible operating leverage. Net income grew at a 16.92% CAGR over the last three years. Notably, this is the highest growth rate among large-cap packaged foods and meat stocks.
Based on the -18 % selloff, one would assume the fortunes of one of the best consumer staple stocks with dividends have changed dramatically. However, this is not the case, as management provided robust 2023 guidance in the third quarter report. They expect adjusted earnings per share growth of 11% -12 % and EPS of $9.46 – $9.54.
In terms of dividends, Hershey pays a healthy quarterly dividend. Additionally, it has been a consistent dividend grower, raising the dividend for 14 consecutive years. The trailing dividend yield is a healthy 2.4%.
As of this writing, Hershey trades at 19 times 2023 EPS. That’s a discount to its historical P/E ratio. Consumers love Hershey bars, Kit Kats, and Twizzlers and will always return for more.
On the date of publication, Charles Munyi 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.
Charles Munyi has extensive writing experience in various industries, including personal finance, insurance, technology, wealth management and stock investing. He has written for a wide variety of financial websites including Benzinga, The Balance and Investopedia.
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The post 3 of the Most Attractive Dividend Stocks in the Consumer Staples Space appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Although consumer staples dividend stocks have underperformed year to date (YTD), they present a healthy risk-reward as we head into 2024. YTD, it has generated $7.9 billion in free cash flow, an increase of $636 million compared to the prior year’s period. Charles Munyi has extensive writing experience in various industries, including personal finance, insurance, technology, wealth management and stock investing.
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Although consumer staples dividend stocks have underperformed year to date (YTD), they present a healthy risk-reward as we head into 2024. Unilever PLC (UL) Source: BYonkruud / Shutterstock.com Unilever PLC (NYSE:UL) has been a turnaround story for a while. Under the new action plan, management expects 3-5% sales growth and margin expansion.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Consumer staples have been a defensive sector, especially during market downturns. Although consumer staples dividend stocks have underperformed year to date (YTD), they present a healthy risk-reward as we head into 2024. 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 of the Most Attractive Dividend Stocks in the Consumer Staples Space appeared first on InvestorPlace.
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Although consumer staples dividend stocks have underperformed year to date (YTD), they present a healthy risk-reward as we head into 2024. Since most investors own consumer staples dividend stocks for income, that thesis has come under pressure from rising yields. This, plus the earnings stability, means it’s one of the best consumer staples dividend stocks.
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0b38cc78-89f7-46b5-b31d-ab4dabc7dc36
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712011.0
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2023-12-13 00:00:00 UTC
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Goldman Sachs Says These 3 Healthcare Giants Look Very Attractive Right Now
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DCOMP
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https://www.nasdaq.com/articles/goldman-sachs-says-these-3-healthcare-giants-look-very-attractive-right-now
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Barring some outliers, the US large cap pharmaceutical group has underperformed the broader markets this year.
In a setting characterized by formidable macro factors, such as economic growth trends and the trajectory of interest rates, Goldman Sachs’ Chris Shibutani says the group has shown it is “unstable on a defensive basis.”
That has led to the overall lackluster performance in the market and has resulted in “steeper than average levels of relative valuation discounts.” For instance, while not quite at the level of the pandemic-era lows, global large cap pharma (again, sans some outliers) is currently trading substantially below the 10-year average historical discount to the S&P 500 of 14%.
But as is often the case, now is the time for savvy investors to take note. “Against this backdrop,” says the 5-star analyst, “the set-up into 2024 for US pharma could be viewed as attractive. A key factor in our view that could help propel healthier valuations remains the prospect of innovation, fueling new product cycles that have the potential to redefine market landscapes and growth trajectories.”
With this in mind, Shibutani has been pointing investors toward 3 healthcare giants with decent prospects ahead, so we decided to give them a closer look. All have underperformed this year, but Shibutani expects them to recover in 2024. To get an idea of what the rest of the Street makes of their chances, we also ran them through the TipRanks database. Here’s the lowdown.
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Merck & Company (MRK)
We’ll start with Merck, a leading pharmaceutical firm with global networks for both sales and research, wide-spread partnerships with other drug companies to facilitate research programs, and a market cap exceeding $264 billion. Merck’s name alone is worth plenty for reputation; the company created the wide-spread MMR vaccine that protects newborn infants against measles-mumps-rubella.
In today’s market, Merck is probably best-known for products like Gardasil, the widespread HPV vaccine that is used to protect women from virus-linked cervical cancers; Keytruda, the oncology-immunotherapy drug frequently used in the treatment of numerous malignancies; and Remicade, the biological anti-inflammatory drug used in the treatment of autoimmune conditions like Crohn’s or rheumatoid arthritis.
Merck’s global sales in 2022 totaled $59.3 billion, marking a 22% year-over-year increase. The company’s sales are lagging that pace slightly in 2023 – for the first nine months of this year, Merck’s total revenue comes to $45.66 billion, compared to $45.99 billion in the same period of last year. We should note that, year-to-date, Merck’s stock is down approximately 4%, an unfavorable comparison to the 20% year-to-date gain on the S&P 500.
At the same time, Merck’s report for 3Q23, the last released, shows solid year-over-year gains, with worldwide sales up 7% y/y to $16 billion, beating expectations by $730 million. The strong revenue was driven by solid sales in Keytruda (up 17% y/y), in Gardasil (up 13% y/y), and in the anti-COVID-19 drug Lagevrio (up 47% y/y). Quarterly sales for these three drugs totaled $9.54 billion. At the bottom line, Merck realized a non-GAAP earnings per share of $2.13, 18 cents better than had been expected.
For Shibutani, the key point to understand about Merck is the company’s overall sound position. He acknowledges that the firm will face loss of exclusivity (LOE) on several drugs in the near-term, but adds that it has both a solid portfolio of approved products and plenty of research projects in the pipeline. He says, “In an environment where end-of-decade LOEs remain a sticking point for much of US large cap pharma, we believe MRK has delivered effective superlative progress in terms of addressing concerns regarding the growth outlook for the company - through and beyond the Keytruda LOE. We further believe that MRK’s decision-making and execution on the business development front will increasingly be revealed as best-in-class amongst industry peers.”
For the near-term, and of interest to investors seeking an attractively priced entry point, Shibutani adds, “The relatively tempered share performance in the 2H23 has reflected in our view, the perception of a relative lack of headline generating catalysts. We see current levels as highly attractive, with the set-up for shares heading into 2024 framed by the opportunity for pipeline assets highlighted to become headliners, providing catalyst paths for a return to outperformance.”
All of this adds up to a Top Pick to go on Goldman’s Conviction List. The stock naturally gets a Buy rating, which Shibutani supplements with a $128 price target – implying a one-year upside potential of 23%. (To watch Shibutani’s track record, click here.)
The Strong Buy analyst consensus rating on Merck’s stock is based on 15 recent reviews that break down 13 to 2 in favor of Buy over Hold. The shares are trading for $104.36 and their $126.29 average price target suggests an increase of 21% in the coming 12 months. (See Merck’s stock forecast.)
AbbVie, Inc. (ABBV)
The second stock on our list of Goldman picks is AbbVie. This company has established itself as a leader in the research and development of biological anti-inflammatory medications, the class that has become prevalent in the treatment of autoimmune inflammatory disorders such as Crohn’s, ulcerative colitis, rheumatoid arthritis, and psoriasis. This puts AbbVie into direct competition with Merck’s Remicade.
We should note, however, that the market for such anti-inflammatory autoimmune drugs is both large and growing. According to Global Market Insights, it was thought to be worth $104 billion last year, and is expected to reach as high as $233.6 billion by 2032 – there is room here for both AbbVie and Merck to find customers. In addition, AbbVie has a larger portfolio of products in this niche, which has become something of a specialty for the company. AbbVie’s anti-inflammatory drugs include Humira, Skyrizi, and Rinvoq. The first of these was first approved for use in 2002, the latter two both in 2019.
AbbVie, which is based in North Chicago, Illinois, sees high potential for these drugs going forward – and the company, in its last quarterly report, revised its full-year 2023 earnings outlook upward accordingly, setting expectations for adjusted diluted EPS this year in the range of $11.19 to $11.23. This compares to the previous guidance of $10.86 to $11.06, and is well above the forecast number of $11.05.
Diving into that Q3 report, we find that AbbVie’s revenues and earnings in 3Q23 were both down y/y. The top line, showing revenue of $13.93 billion, was down 6%, while the bottom line, the adjusted diluted EPS of $2.95, was down more than 19%. Both figures beat expectations, however; revenue by $220 million and EPS by 8 cents per share. We should note here that shares in AbbVie have underperformed this year, and are down 2% overall.
In his write-up on AbbVie for Goldman, Shibutani takes an upbeat long-term view, basing his stance on the strength of the Humira-Skyrizi-Rinvoq stable of drugs. He writes, “As we exit 2023, ABBV’s delivery of more resilient than expected revenue performance for the Humira franchise in the face of multiple biosimilar entrants our confidence has increased in the potential for performance from growth products (Skyrizi, Rinvoq) and signature franchises (i.e., Botox) to generate an overall company growth profile heading through most of the remainder of the decade, that scales to management’s guidance, exceeds current Street expectations, and provides the basis for our view that ABBV’s current share price reflects underappreciation of the company’s improving growth outlook.”
This positive stance goes along with a Buy rating, an upgrade from Neutral, while Shibutani’s $173 price target points toward a one-year upside of 13%.
AbbVie has a Moderate Buy consensus rating from the Street, after picking up 13 recent analyst reviews, with 8 to Buy and 5 to Hold. The average target price of $170.25 suggests an increase of 11% from the current trading price of $153.24. (See AbbVie’s stock forecast.)
Pfizer (PFE)
We’ll wrap up this Goldman-backed list with Pfizer, the large-cap pharma that made headlines during the pandemic with its development of an early COVID-19 vaccine as well as the anti-viral drug Paxlovid. Pfizer, which boasts a $161 billion market cap, is one of the world’s premier biopharmaceutical firms. It has a long list of approved products on the market, and generated over $100 billion in revenue in 2022. The company defines its mission as creating a healthier world, and since the COVID pandemic, it has dedicated large resources to the combat of related highly contagious respiratory viral diseases.
In addition to its revenue-generating product lines, Pfizer has an active research pipeline that currently features 83 drug candidates in human clinical trials. Of these, 30 are at Phase 2, 23 are at Phase 3, and 4 are registrational, the final step before submitting applications for regulatory approval. The ‘areas of focus’ in Pfizer’s pipeline include anti-infectives and vaccines, inflammation and immunology, oncology, and rare diseases.
Leading-edge biotech research is a risky business, and Pfizer recently discontinued a clinical trial on a weight-loss drug, danuglipron. The drug had advanced through the Phase 2 stage – but while it achieved its primary endpoints in the study, there were high rates of side effects, including nausea and vomiting. The company chose not to pursue further research on this track.
That round of bad news comes after slowing sales year-to-date. Pfizer’s first three quarters this year all saw y/y declines in revenue. The company’s stock price reflects that – PFE is down 42% this year.
On a positive note, Pfizer received on December 12 regulatory approval from US government oversight agencies for its proposed merger-acquisition of the research-oriented biotech firm Seagen. The acquisition agreement is valued at $43 billion, and will add Seagen’s portfolio into Pfizer’s programs. Pfizer has said that it will create a dedicated cancer drugs operation from the expanded portfolio, and will split its business side into a US division and a global division.
Watching these developments, top analyst Shibutani notes first, that Pfizer’s share decline has tracked slowing sales of COVID-19 vaccines and treatments, and second, that there is reason for optimism here. He says, to start, “Acknowledging that PFE share performance has largely tracked expectations for sales from its COVID-19 franchise, we are constructive on the stock heading into 2024 following a material guidance reset in mid-October that, while negative and overdue, we believe better aligns management and investor expectations for Comirnaty (COVID-19 vaccine) and Paxlovid.”
Going on, Shibutani adds that Pfizer will be launching new products in the mid-term, and should expect returns from the Seagen deal: “Our positive outlook primarily derives from our view that COVID-19 revenues will be less debated on the forward, and we anticipate several of PFE’s bounty of new product launches will demonstrate success, heralded by commercial execution. We also believe that the potential closing of SGEN (expected by early 2024) and a return to a more balanced approach to capital allocation will represent a key strategic shift towards oncology and would achieve a significant portion of the company’s stated goal to acquire ~25bn in 2030 risk-adjusted revenue.”
With this in mind, Shibutani keeps his Buy rating on PFE, and although he has reduced his price target from $48 to $37, the new figure still indicates confidence in a 29% increase for the shares on the one-year horizon. (To watch Shibutani’s track record, click here.)
Turning now to the rest of the Street, where Pfizer gets a Moderate Buy consensus rating based on an additional 4 Buys and 8 Holds. The stock is selling for $28.58 and its $39.73 average price target implies a 39% increase from that level. (See Pfizer’s stock forecast.)
To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a tool that unites all of TipRanks’ equity insights.
Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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We see current levels as highly attractive, with the set-up for shares heading into 2024 framed by the opportunity for pipeline assets highlighted to become headliners, providing catalyst paths for a return to outperformance.” All of this adds up to a Top Pick to go on Goldman’s Conviction List. AbbVie, which is based in North Chicago, Illinois, sees high potential for these drugs going forward – and the company, in its last quarterly report, revised its full-year 2023 earnings outlook upward accordingly, setting expectations for adjusted diluted EPS this year in the range of $11.19 to $11.23. We also believe that the potential closing of SGEN (expected by early 2024) and a return to a more balanced approach to capital allocation will represent a key strategic shift towards oncology and would achieve a significant portion of the company’s stated goal to acquire ~25bn in 2030 risk-adjusted revenue.” With this in mind, Shibutani keeps his Buy rating on PFE, and although he has reduced his price target from $48 to $37, the new figure still indicates confidence in a 29% increase for the shares on the one-year horizon.
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Don’t miss Time to Hit Buy on These 2 Building Stocks, Says Deutsche Bank These 2 MedTech Stocks Look Too Cheap to Ignore, Says Morgan Stanley Morgan Stanley Says These 3 Semiconductor Stocks Are Hot Buys Right Now Merck & Company (MRK) We’ll start with Merck, a leading pharmaceutical firm with global networks for both sales and research, wide-spread partnerships with other drug companies to facilitate research programs, and a market cap exceeding $264 billion. AbbVie, which is based in North Chicago, Illinois, sees high potential for these drugs going forward – and the company, in its last quarterly report, revised its full-year 2023 earnings outlook upward accordingly, setting expectations for adjusted diluted EPS this year in the range of $11.19 to $11.23. Watching these developments, top analyst Shibutani notes first, that Pfizer’s share decline has tracked slowing sales of COVID-19 vaccines and treatments, and second, that there is reason for optimism here.
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Don’t miss Time to Hit Buy on These 2 Building Stocks, Says Deutsche Bank These 2 MedTech Stocks Look Too Cheap to Ignore, Says Morgan Stanley Morgan Stanley Says These 3 Semiconductor Stocks Are Hot Buys Right Now Merck & Company (MRK) We’ll start with Merck, a leading pharmaceutical firm with global networks for both sales and research, wide-spread partnerships with other drug companies to facilitate research programs, and a market cap exceeding $264 billion. He writes, “As we exit 2023, ABBV’s delivery of more resilient than expected revenue performance for the Humira franchise in the face of multiple biosimilar entrants our confidence has increased in the potential for performance from growth products (Skyrizi, Rinvoq) and signature franchises (i.e., Botox) to generate an overall company growth profile heading through most of the remainder of the decade, that scales to management’s guidance, exceeds current Street expectations, and provides the basis for our view that ABBV’s current share price reflects underappreciation of the company’s improving growth outlook.” This positive stance goes along with a Buy rating, an upgrade from Neutral, while Shibutani’s $173 price target points toward a one-year upside of 13%. He says, to start, “Acknowledging that PFE share performance has largely tracked expectations for sales from its COVID-19 franchise, we are constructive on the stock heading into 2024 following a material guidance reset in mid-October that, while negative and overdue, we believe better aligns management and investor expectations for Comirnaty (COVID-19 vaccine) and Paxlovid.” Going on, Shibutani adds that Pfizer will be launching new products in the mid-term, and should expect returns from the Seagen deal: “Our positive outlook primarily derives from our view that COVID-19 revenues will be less debated on the forward, and we anticipate several of PFE’s bounty of new product launches will demonstrate success, heralded by commercial execution.
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AbbVie, Inc. (ABBV) The second stock on our list of Goldman picks is AbbVie. According to Global Market Insights, it was thought to be worth $104 billion last year, and is expected to reach as high as $233.6 billion by 2032 – there is room here for both AbbVie and Merck to find customers. The company’s stock price reflects that – PFE is down 42% this year.
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ce73e4f4-4eb4-49b7-8be5-84cc79338d66
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712012.0
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2023-12-13 00:00:00 UTC
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Validea Motley Fool Strategy Daily Upgrade Report - 12/13/2023
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DCOMP
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https://www.nasdaq.com/articles/validea-motley-fool-strategy-daily-upgrade-report-12-13-2023
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nan
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nan
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The following are today's upgrades for Validea's Small-Cap Growth Investor model based on the published strategy of Motley Fool. This strategy looks for small cap growth stocks with solid fundamentals and strong price performance.
PERION NETWORK LTD (PERI) is a small-cap value stock in the Business Services industry. The rating according to our strategy based on Motley Fool changed from 45% to 72% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Perion Network Ltd is an Israel-based global technology. The Company delivers the digital advertising. ecosystem, providing brands, agencies and publishers with a holistic ability to identify and reach their customers across all channels with high-impact creative units that are orchestrated by its proprietary Intelligent Hub (iHUB), which offers cross-sell. Perion Network Ltd operates in three main pillars of digital advertising: ad search, social media, and display ,video or CTV. Another aspect of Perion's technological solutions, is SORT technology. SORT alternative technology is a machine learning model that analyzes millions of data combinations to create cookieless targeting groups consisting of people who think and react to ads like one another.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
PROFIT MARGIN: PASS
RELATIVE STRENGTH: FAIL
COMPARE SALES AND EPS GROWTH TO THE SAME PERIOD LAST YEAR: FAIL
INSIDER HOLDINGS: FAIL
CASH FLOW FROM OPERATIONS: PASS
PROFIT MARGIN CONSISTENCY: PASS
R&D AS A PERCENTAGE OF SALES: NEUTRAL
CASH AND CASH EQUIVALENTS: PASS
ACCOUNTS RECEIVABLE TO SALES: PASS
LONG TERM DEBT/EQUITY RATIO: PASS
"THE FOOL RATIO" (P/E TO GROWTH): PASS
AVERAGE SHARES OUTSTANDING: PASS
SALES: FAIL
DAILY DOLLAR VOLUME: PASS
PRICE: PASS
INCOME TAX PERCENTAGE: FAIL
Detailed Analysis of PERION NETWORK LTD
PERI Guru Analysis
PERI Fundamental Analysis
SKYLINE CHAMPION CORP (SKY) is a mid-cap growth stock in the Mobile Homes & RVs industry. The rating according to our strategy based on Motley Fool changed from 63% to 76% 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: Skyline Champion Corporation is a producer of factory-built housing in North America. The Company's segments include U.S. Factory-built Housing and Canadian Factory-built Housing. The U.S. Factory-built Housing segment includes manufacturing and retail housing operations. It offers a portfolio of manufactured and modular homes, park model RVs, accessory dwelling units and modular buildings for the multi-family and hospitality sectors. It builds homes under various brand names in the factory-built housing industry, including Skyline Homes, Champion Home Builders, Genesis Homes, Athens Park Models, Dutch Housing, Atlantic Homes, Excel Homes, Homes of Merit, New Era, Redman Homes, ScotBilt Homes, Shore Park, Silvercrest, and Titan Homes in the U.S., and Moduline and SRI Homes in western Canada. It operates a factory-direct manufactured home retail business, marketed under the Titan Factory Direct and Champion Homes Center brands, with over 31 sales centers spanning the United States.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
PROFIT MARGIN: PASS
RELATIVE STRENGTH: FAIL
COMPARE SALES AND EPS GROWTH TO THE SAME PERIOD LAST YEAR: FAIL
INSIDER HOLDINGS: FAIL
CASH FLOW FROM OPERATIONS: PASS
PROFIT MARGIN CONSISTENCY: PASS
R&D AS A PERCENTAGE OF SALES: NEUTRAL
CASH AND CASH EQUIVALENTS: PASS
INVENTORY TO SALES: PASS
ACCOUNTS RECEIVABLE TO SALES: PASS
LONG TERM DEBT/EQUITY RATIO: PASS
"THE FOOL RATIO" (P/E TO GROWTH): PASS
AVERAGE SHARES OUTSTANDING: PASS
SALES: FAIL
DAILY DOLLAR VOLUME: PASS
PRICE: PASS
INCOME TAX PERCENTAGE: PASS
Detailed Analysis of SKYLINE CHAMPION CORP
SKY Guru Analysis
SKY Fundamental Analysis
PRIMEENERGY RESOURCES CORP (PNRG) is a small-cap value stock in the Oil & Gas Operations industry. The rating according to our strategy based on Motley Fool changed from 65% to 79% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: PrimeEnergy Resources Corporation is an independent oil and natural gas company engaged in acquiring, developing, and producing oil and natural gas. It owns leasehold, mineral and royalty interests in producing and non-producing oil and gas properties across the United States, primarily in Oklahoma, and Texas. It operates approximately 630 active wells and owns non-operating interests and royalties in approximately 800 additional wells. It provides well-servicing support operations, site-preparation and construction services for oil and gas drilling and reworking operations, both in connection with its activities and providing contract services for third parties. It maintains an acreage position of approximately 16,940 gross acres in the Permian Basin of West Texas and eastern New Mexico, which is located in Reagan, Upton, Martin, and Midland counties. In Oklahoma, it is focused on the development of its reserves in Canadian, Grady, Kingfisher, Garfield, Major, and Garvin counties.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
PROFIT MARGIN: PASS
RELATIVE STRENGTH: FAIL
COMPARE SALES AND EPS GROWTH TO THE SAME PERIOD LAST YEAR: FAIL
INSIDER HOLDINGS: PASS
CASH FLOW FROM OPERATIONS: PASS
PROFIT MARGIN CONSISTENCY: PASS
R&D AS A PERCENTAGE OF SALES: NEUTRAL
CASH AND CASH EQUIVALENTS: PASS
ACCOUNTS RECEIVABLE TO SALES: PASS
LONG TERM DEBT/EQUITY RATIO: PASS
"THE FOOL RATIO" (P/E TO GROWTH): PASS
AVERAGE SHARES OUTSTANDING: PASS
SALES: PASS
DAILY DOLLAR VOLUME: FAIL
PRICE: PASS
INCOME TAX PERCENTAGE: FAIL
Detailed Analysis of PRIMEENERGY RESOURCES CORP
PNRG Guru Analysis
PNRG Fundamental Analysis
Motley Fool Portfolio
About Motley Fool: Brothers David and Tom Gardner often wear funny hats in public appearances, but they're hardly fools -- at least not the kind whose advice you should readily dismiss. The Gardners are the founders of the popular Motley Fool web site, which offers frank and often irreverent commentary on investing, the stock market, and personal finance. The Gardners' "Fool" really is a multi-media endeavor, offering not only its web content but also several books written by the brothers, a weekly syndicated newspaper column, and subscription newsletter services.
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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ecosystem, providing brands, agencies and publishers with a holistic ability to identify and reach their customers across all channels with high-impact creative units that are orchestrated by its proprietary Intelligent Hub (iHUB), which offers cross-sell. SORT alternative technology is a machine learning model that analyzes millions of data combinations to create cookieless targeting groups consisting of people who think and react to ads like one another. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig.
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Detailed Analysis of PERION NETWORK LTD PERI Guru Analysis PERI Fundamental Analysis SKYLINE CHAMPION CORP (SKY) is a mid-cap growth stock in the Mobile Homes & RVs industry. Detailed Analysis of SKYLINE CHAMPION CORP SKY Guru Analysis SKY Fundamental Analysis PRIMEENERGY RESOURCES CORP (PNRG) is a small-cap value stock in the Oil & Gas Operations industry. Detailed Analysis of PRIMEENERGY RESOURCES CORP PNRG Guru Analysis PNRG Fundamental Analysis Motley Fool Portfolio About Motley Fool: Brothers David and Tom Gardner often wear funny hats in public appearances, but they're hardly fools -- at least not the kind whose advice you should readily dismiss.
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Detailed Analysis of PERION NETWORK LTD PERI Guru Analysis PERI Fundamental Analysis SKYLINE CHAMPION CORP (SKY) is a mid-cap growth stock in the Mobile Homes & RVs industry. It builds homes under various brand names in the factory-built housing industry, including Skyline Homes, Champion Home Builders, Genesis Homes, Athens Park Models, Dutch Housing, Atlantic Homes, Excel Homes, Homes of Merit, New Era, Redman Homes, ScotBilt Homes, Shore Park, Silvercrest, and Titan Homes in the U.S., and Moduline and SRI Homes in western Canada. Detailed Analysis of SKYLINE CHAMPION CORP SKY Guru Analysis SKY Fundamental Analysis PRIMEENERGY RESOURCES CORP (PNRG) is a small-cap value stock in the Oil & Gas Operations industry.
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The following are today's upgrades for Validea's Small-Cap Growth Investor model based on the published strategy of Motley Fool. Company Description: Perion Network Ltd is an Israel-based global technology. Detailed Analysis of PRIMEENERGY RESOURCES CORP PNRG Guru Analysis PNRG Fundamental Analysis Motley Fool Portfolio About Motley Fool: Brothers David and Tom Gardner often wear funny hats in public appearances, but they're hardly fools -- at least not the kind whose advice you should readily dismiss.
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dadb77f7-a009-4689-acdc-0119ff1b1521
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712013.0
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2023-12-13 00:00:00 UTC
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Validea Joel Greenblatt Strategy Daily Upgrade Report - 12/13/2023
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DCOMP
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https://www.nasdaq.com/articles/validea-joel-greenblatt-strategy-daily-upgrade-report-12-13-2023
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nan
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nan
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The following are today's upgrades for Validea's Earnings Yield Investor model based on the published strategy of Joel Greenblatt. This value model looks for companies with high return on capital and earnings yields.
SEALED AIR CORP (SEE) is a mid-cap growth stock in the Containers & Packaging industry. The rating according to our strategy based on Joel Greenblatt changed from 70% to 80% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Sealed Air Corporation is a provider of packaging solutions integrating materials, automation, equipment, and services. The Company designs and delivers packaging solutions that preserve food, protect goods, automate packaging processes, and enable e-commerce and digital connectivity for packaged goods. The Company operates through two segments: Food, and Protective. The portfolio of packaging solutions includes CRYOVAC brand food packaging, LIQUIBOX fluids and liquids systems, SEE brand protective packaging, AUTOBAG brand automated systems, BUBBLE WRAP brand packaging, SEE Touchless Automation solutions and prismiq digital packaging and printing. The Company delivers its packaging solutions to an array of end markets including fresh proteins, foods, fluids, medical and healthcare, e-commerce, logistics and omnichannel fulfilment operations, and industrials. It provides temperature assurance packaging solutions under the Kevothermal and TempGuard brands.
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.
EARNINGS YIELD: NEUTRAL
RETURN ON TANGIBLE CAPITAL: NEUTRAL
FINAL RANKING: FAIL
Detailed Analysis of SEALED AIR CORP
SEE Guru Analysis
SEE Fundamental Analysis
DLH HOLDINGS CORP (DLHC) is a small-cap growth stock in the Healthcare Facilities industry. The rating according to our strategy based on Joel Greenblatt changed from 70% to 80% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: DLH Holdings Corp. is a provider of technology-enabled business process outsourcing, program management solutions, and public health research and analytics. The Company's services and solutions include Defense and Veteran Health Solutions, Human Services and Solutions, Public Health and Life Sciences and Infinibyte Cloud Services. Its Defense and Veteran Health Solutions provides critical healthcare, technology, and logistics solutions. Its Human Services and Solutions combines subject matter expertise in information technology and analytics to provide program monitoring and evaluation; electronic medical records migration; data collection and management; and nutritional and social health assessments. Its Public Health and Life Sciences solutions include clinical trials, epidemiology studies, advancing disease prevention methods and health promotion to at-risk communities. It also offers Infinibyte Cloud as a platform-as-a-service cloud service to United States government agencies.
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.
EARNINGS YIELD: NEUTRAL
RETURN ON TANGIBLE CAPITAL: NEUTRAL
FINAL RANKING: FAIL
Detailed Analysis of DLH HOLDINGS CORP
DLHC Guru Analysis
DLHC Fundamental Analysis
Joel Greenblatt Portfolio
Top Joel Greenblatt Stocks
About Joel Greenblatt: In his 2005 bestseller The Little Book That Beats The Market, hedge fund manager Joel Greenblatt laid out a stunningly simple way to beat the market using two -- and only two -- fundamental variables. The "Magic Formula," as he called it, produced back-tested returns of 30.8 percent per year from 1988 through 2004, more than doubling the S&P 500's 12.4 percent return during that time. Greenblatt also produced exceptional returns as managing partner at Gotham Capital, a New York City-based hedge fund he founded. The firm averaged a remarkable 40 percent annualized return over more than two decades.
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Company delivers its packaging solutions to an array of end markets including fresh proteins, foods, fluids, medical and healthcare, e-commerce, logistics and omnichannel fulfilment operations, and industrials. Its Human Services and Solutions combines subject matter expertise in information technology and analytics to provide program monitoring and evaluation; electronic medical records migration; data collection and management; and nutritional and social health assessments. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig.
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The portfolio of packaging solutions includes CRYOVAC brand food packaging, LIQUIBOX fluids and liquids systems, SEE brand protective packaging, AUTOBAG brand automated systems, BUBBLE WRAP brand packaging, SEE Touchless Automation solutions and prismiq digital packaging and printing. The Company's services and solutions include Defense and Veteran Health Solutions, Human Services and Solutions, Public Health and Life Sciences and Infinibyte Cloud Services. Detailed Analysis of DLH HOLDINGS CORP DLHC Guru Analysis DLHC Fundamental Analysis Joel Greenblatt Portfolio Top Joel Greenblatt Stocks About Joel Greenblatt: In his 2005 bestseller The Little Book That Beats The Market, hedge fund manager Joel Greenblatt laid out a stunningly simple way to beat the market using two -- and only two -- fundamental variables.
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The portfolio of packaging solutions includes CRYOVAC brand food packaging, LIQUIBOX fluids and liquids systems, SEE brand protective packaging, AUTOBAG brand automated systems, BUBBLE WRAP brand packaging, SEE Touchless Automation solutions and prismiq digital packaging and printing. The Company's services and solutions include Defense and Veteran Health Solutions, Human Services and Solutions, Public Health and Life Sciences and Infinibyte Cloud Services. Detailed Analysis of DLH HOLDINGS CORP DLHC Guru Analysis DLHC Fundamental Analysis Joel Greenblatt Portfolio Top Joel Greenblatt Stocks About Joel Greenblatt: In his 2005 bestseller The Little Book That Beats The Market, hedge fund manager Joel Greenblatt laid out a stunningly simple way to beat the market using two -- and only two -- fundamental variables.
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The following are today's upgrades for Validea's Earnings Yield Investor model based on the published strategy of Joel Greenblatt. The Company designs and delivers packaging solutions that preserve food, protect goods, automate packaging processes, and enable e-commerce and digital connectivity for packaged goods. The Company's services and solutions include Defense and Veteran Health Solutions, Human Services and Solutions, Public Health and Life Sciences and Infinibyte Cloud Services.
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b6d0d506-1311-4897-bdc3-52b7d0e9aa44
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712014.0
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2023-12-13 00:00:00 UTC
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A Market Crash Could Come -- Is MicroStrategy Stock Still a Buy?
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DCOMP
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https://www.nasdaq.com/articles/a-market-crash-could-come-is-microstrategy-stock-still-a-buy
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nan
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nan
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2022 was a brutal year for stocks as inflation, rising interest rates, and other macro challenges rattled the markets. Many of the stocks that were punished last year bounced back in 2023 as some of those headwinds stabilized, but the market could be due for another pullback in 2024 after the S&P 500 and Nasdaq Composite rose by about 20% and 30%, respectively, over the past 12 months.
If the market plunges again next year, its more speculative stocks could be the first to tumble. One of those is MicroStrategy (NASDAQ: MSTR), which saw its stock price nearly triple over the past 12 months as the value of its Bitcoin (CRYPTO: BTC) holdings rose.
Image source: Getty Images.
What does MicroStrategy do?
MicroStrategy was founded 34 years ago as a data mining and analytics company. It went public in 1998, and its stock soared from its split-adjusted IPO price of $60 to a record high of $3,130 near the apex of the dot-com bubble in early 2000.
But that bubble burst shortly after MicroStrategy's stock peaked, and the stock's decline was exacerbated by the unexpected restatement of its financial results for the previous two years. Those sudden revisions prompted the Securities and Exchange Commission to launch a probe into the company that eventually ended in a settlement.
Over the two decades that followed, MicroStrategy divested itself of some of its businesses and expanded its software into the mobile and cloud markets. However, the aging software company faced fierce competition from higher-growth analytics companies like Salesforce as well as expanding cloud infrastructure giants like Amazon Web Services and Microsoft Azure.
From a software maker to a Bitcoin hoarder
From 2010 to 2020, MicroStrategy's revenue only grew at a compound annual rate of 0.6%. It also turned unprofitable in 2020. That's why it might seem odd that its stock surged 172% in 2020.
That rally was completely driven by the company's abrupt decision to hoard Bitcoin as the cryptocurrency's price skyrocketed. It initially bought $250 million worth of Bitcoin in August 2020 and continued to purchase more over the following three years.
MicroStrategy's revenue rose by 6% to $511 million in 2021 as its software business stabilized in a post-pandemic market. However, its net loss widened from $7.5 million in 2020 to $535.5 million in 2021 as its Bitcoin impairment losses surged.
Bitcoin's price peaked at more than $65,000 in November 2021. But by the end of 2022, its price had dropped to about $16,000 as inflation, rising interest rates, and a marketwide shift away from risk assets crushed the cryptocurrency market. However, MicroStrategy was still holding 132,500 Bitcoin that it had acquired for an aggregate cost of $4 billion and at an average price of $30,100 per Bitcoin.
Meanwhile, MicroStrategy's core software business stayed sluggish as declining product license and support revenues offset its rising subscription revenue. As a result, its revenue fell by 2% to $499 million in 2022 and its net loss widened to $1.47 billion. Most of that loss was attributed to its $1.29 billion in Bitcoin impairment charges.
Does Bitcoin's rebound make MicroStrategy a buy?
MicroStrategy seemed to be on the ropes last year, but Bitcoin's recovery to about $42,000 brought back the bulls. By the end of Q3 2023, the company was holding 158,400 Bitcoin at an average purchase price of $29,586 with a market value of $4.7 billion. That's half the company's current enterprise value of $9.4 billion -- so if the token resumes its climb, that could certainly drive MicroStrategy's stock higher.
Its software business is also growing again. Its total revenue rose 1% year over year to $371.8 million in the first nine months of 2023 as its 38% growth in subscription revenue offset the declines in its product license and support revenues. It also generated a net profit of $340 million, compared to a net loss of $1.22 billion a year earlier, and its digital impairment losses declined 93% year over year.
For the full year, analysts expect MicroStrategy's revenue to rise 1% to $505 million as it generates a net profit of $334 million. But based on those estimates and its current enterprise value, it still doesn't seem like a bargain at 19 times this year's sales. Its high debt-to-equity ratio of 3.0 could also limit its potential for further share price gains as long as interest rates stay elevated.
Those weaknesses, along with management's odd decision to mix a slow-growth software business with a volatile Bitcoin-hoarding one, will likely make the stock an easy target for the bears if the market crashes again. So for now, I'd simply invest in higher-growth tech stocks or buy Bitcoin instead of betting on MicroStrategy's unbalanced approach to both markets.
Should you invest $1,000 in MicroStrategy right now?
Before you buy stock in MicroStrategy, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and MicroStrategy wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
See the 10 stocks
*Stock Advisor returns as of December 7, 2023
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Leo Sun has positions in Amazon. The Motley Fool has positions in and recommends Amazon, Bitcoin, Microsoft, and Salesforce. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Many of the stocks that were punished last year bounced back in 2023 as some of those headwinds stabilized, but the market could be due for another pullback in 2024 after the S&P 500 and Nasdaq Composite rose by about 20% and 30%, respectively, over the past 12 months. But by the end of 2022, its price had dropped to about $16,000 as inflation, rising interest rates, and a marketwide shift away from risk assets crushed the cryptocurrency market. Those weaknesses, along with management's odd decision to mix a slow-growth software business with a volatile Bitcoin-hoarding one, will likely make the stock an easy target for the bears if the market crashes again.
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However, its net loss widened from $7.5 million in 2020 to $535.5 million in 2021 as its Bitcoin impairment losses surged. Meanwhile, MicroStrategy's core software business stayed sluggish as declining product license and support revenues offset its rising subscription revenue. For the full year, analysts expect MicroStrategy's revenue to rise 1% to $505 million as it generates a net profit of $334 million.
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But that bubble burst shortly after MicroStrategy's stock peaked, and the stock's decline was exacerbated by the unexpected restatement of its financial results for the previous two years. It also generated a net profit of $340 million, compared to a net loss of $1.22 billion a year earlier, and its digital impairment losses declined 93% year over year. Before you buy stock in MicroStrategy, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and MicroStrategy wasn't one of them.
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What does MicroStrategy do? MicroStrategy's revenue rose by 6% to $511 million in 2021 as its software business stabilized in a post-pandemic market. By the end of Q3 2023, the company was holding 158,400 Bitcoin at an average purchase price of $29,586 with a market value of $4.7 billion.
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d6b483c0-53ae-4793-a405-1989aac8bb1d
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712015.0
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2023-12-13 00:00:00 UTC
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"Grand Theft Auto 6" Won't Launch Till 2025. Is Take-Two Stock Still a Buy?
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DCOMP
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https://www.nasdaq.com/articles/grand-theft-auto-6-wont-launch-till-2025.-is-take-two-stock-still-a-buy
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nan
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Its sales growth has been meager in 2023, and its net losses have been significant. And yet Take-Two Interactive's (NASDAQ: TTWO) stock still trounced the market this year by rising over 50% through early December.
That unlikely rally was sparked by soaring investor optimism around the video game developer's packed content pipeline. Management promised dozens of big franchise launches over the next two years that should help catapult the business to a leadership position in the industry.
One of the most anticipated of these launches is Grand Theft Auto 6, which follows the hugely successful GTA 5 that was released over a decade ago. But GTA 6 won't come out until sometime in 2025, investors have just learned. How might that release update impact the bullish investing thesis? Let's dive right in.
Take-Two's biggest hit
There's no question that Grand Theft Auto is the company's most valuable brand. Developed by its wholly owned game publisher Rockstar Games, the GTA brand has sold 400 million units to date and the most recent installment has sold nearly 200 million units in the decade since it launched. In its annual report, Take-Two describes the brand as a "uniquely original, popular, cultural phenomenon."
The franchise still plays a role in Take-Two's operating results today, highlighting the fact that video games have extended their useful lives well beyond simple annual refreshes. Executives credited GTA 5, along with Red Dead Redemption, as key reasons sales edged past expectations in fiscal Q2, which ran through late September.
Take-Two Interactive's packed pipeline
Take-Two's next year will be extremely busy for launches even without a GTA refresh. The company has 17 major releases in store through fiscal 2026, only three of which have received an official launch date. Investors were hopeful for a quicker release schedule, but they weren't banking on GTA coming out in 2024, too. After all, the company just said in March that development of the title was "well underway."
A slightly longer development time is preferable to rushing a release and then being forced to put out bug fixes. The worst-case scenario here would be for a buggy, low-quality launch title to harm Take-Two's biggest release in a decade and its most valuable franchise.
Looking ahead
While there's still a lot that investors don't know about Take-Two's release schedule over the next 18 months, management has said that the launches should push annual sales up to near $8 billion. Most Wall Street pros agree and see revenue rising by over 40% in the next fiscal year (which begins in early April). Gains of that magnitude would put Take-Two Interactive near Electronic Arts at the top of the video game industry's sales charts.
That doesn't make the stock an obvious buy, though. Take-Two shares are already valued close to EA's price-to-sales ratio even though investors have much less clarity about its growth potential in the coming quarters.
Those questions will be answered as new launch dates are revealed. Yet, as this latest GTA update shows, launch targets are often tentative and subject to delays. Investors should keep that risk in mind when deciding to rely on Take-Two's new releases for a big part of their investing theses.
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.
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*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.
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The franchise still plays a role in Take-Two's operating results today, highlighting the fact that video games have extended their useful lives well beyond simple annual refreshes. Executives credited GTA 5, along with Red Dead Redemption, as key reasons sales edged past expectations in fiscal Q2, which ran through late September. Looking ahead While there's still a lot that investors don't know about Take-Two's release schedule over the next 18 months, management has said that the launches should push annual sales up to near $8 billion.
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Take-Two's biggest hit There's no question that Grand Theft Auto is the company's most valuable brand. Take-Two Interactive's packed pipeline Take-Two's next year will be extremely busy for launches even without a GTA refresh. 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.
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Take-Two Interactive's packed pipeline Take-Two's next year will be extremely busy for launches even without a GTA refresh. Looking ahead While there's still a lot that investors don't know about Take-Two's release schedule over the next 18 months, management has said that the launches should push annual sales up to near $8 billion. 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.
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Investors were hopeful for a quicker release schedule, but they weren't banking on GTA coming out in 2024, too. 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.
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712016.0
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2023-12-13 00:00:00 UTC
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Is Block Stock a Buy?
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https://www.nasdaq.com/articles/is-block-stock-a-buy-4
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Investors might be discouraged that Block (NYSE: SQ) hasn't participated in the broader market's rally this year. It's not all bad news, as a solid opportunity is here.
From a pure valuation perspective, this fintech stock looks like a screaming buy. It's 76% below its peak price from mid-2021, and it trades at an attractive price-to-sales ratio of 2. This makes now a good time to add Block to your portfolio.
But there are other reasons to like the stock, too.
Growth is key to the story
The best way to think about Block is to basically view it as two distinct businesses operating under one roof.
The company caters to small businesses via its Square segment, which provides a wide range of hardware, software, and financial services that enable merchants to accept payments and handle various operational tasks.
There's also Cash App. It's a personal finance mobile app that can be a substitute for traditional banks for some consumers. Individuals can send or receive money, set up direct deposits from their employers, sign up for a Visa debit card, or buy stocks, all from an easy-to-use interface.
Like many of its fintech peers, growth has been the key to Block's story in recent years. Even in 2023, when higher interest rates and inflationary pressures are on everyone's mind, the business continues to expand.
Square and Cash App saw gross profit increase by 15% and 27%, respectively, in the the third quarter. These are still healthy gains.
However, what should excite investors is the management's long-term outlook. From a gross profit perspective, executives believe that Square has a total addressable market opportunity of $120 billion, while they think Cash App's opportunity stands at $70 billion.
Although it's always smart to take any leadership team's targets with a grain of salt, mainly because they are used to drive investor interest, there are two primary reasons to be bullish on Block's potential.
For starters, the company is focused first and foremost on providing an exceptional user experience. This means creating products and services that meet customer demand and are easy to use. By competing with legacy payment providers and banks that are not always easy to work with, Block has an advantage that will benefit it for a long time.
Block is also still primarily a domestic business, with 83% of Square's gross profit derived from the U.S. last quarter. To be clear, the company does have a presence in multiple countries. However, it has yet to make sizable inroads overseas. By successfully transplanting what has worked so well domestically to international markets, Block can continue its rapid growth.
Bitcoin bump
An investment in Block is also an indirect investment in the success of Bitcoin, the world's oldest and most valuable cryptocurrency. Some people who aren't familiar with the company might not understand this reality.
Jack Dorsey, Block's founder and chief executive officer, is committed to advancing the utility and adoption of Bitcoin. In fact, Block has two divisions, known as Spiral and TBD, that are entirely focused on working on Bitcoin-related projects.
But Cash App is where Bitcoin has the greatest financial impact on the company. In early 2018, Cash App started letting users buy and sell Bitcoin, collecting a tiny fee to provide this service.
The challenge is that financial results can be volatile, particularly as Bitcoin's price moves up and down violently, leading to unpredictable demand from Cash App customers.
This year, though, things have been trending in the right direction, with the top crypto's price soaring, leading to a 15% increase in Bitcoin gross profit for Cash App through the first nine months this year.
With the impending halving on the horizon in 2024 (which cuts Bitcoin's supply growth rate in half), coupled with the rising possibility of Bitcoin exchange-traded funds coming to market, this digital asset could experience a steady price surge. And Cash App could benefit.
This is just another reason investors should be optimistic about Block's prospects and buy shares.
10 stocks we like better than Block
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 Block 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 November 29, 2023
Neil Patel and his clients have positions in Bitcoin. The Motley Fool has positions in and recommends Bitcoin, Block, and Visa. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The company caters to small businesses via its Square segment, which provides a wide range of hardware, software, and financial services that enable merchants to accept payments and handle various operational tasks. Individuals can send or receive money, set up direct deposits from their employers, sign up for a Visa debit card, or buy stocks, all from an easy-to-use interface. Although it's always smart to take any leadership team's targets with a grain of salt, mainly because they are used to drive investor interest, there are two primary reasons to be bullish on Block's potential.
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Square and Cash App saw gross profit increase by 15% and 27%, respectively, in the the third quarter. From a gross profit perspective, executives believe that Square has a total addressable market opportunity of $120 billion, while they think Cash App's opportunity stands at $70 billion. This year, though, things have been trending in the right direction, with the top crypto's price soaring, leading to a 15% increase in Bitcoin gross profit for Cash App through the first nine months this year.
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From a gross profit perspective, executives believe that Square has a total addressable market opportunity of $120 billion, while they think Cash App's opportunity stands at $70 billion. This year, though, things have been trending in the right direction, with the top crypto's price soaring, leading to a 15% increase in Bitcoin gross profit for Cash App through the first nine months this year. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Block wasn't one of them!
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But Cash App is where Bitcoin has the greatest financial impact on the company. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Block wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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e0b89a89-8b25-4d1a-9410-1d8cbc5cb0ce
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712017.0
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2023-12-13 00:00:00 UTC
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US STOCKS-Futures inch higher, spotlight on PPI data, Fed's final verdict
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https://www.nasdaq.com/articles/us-stocks-futures-inch-higher-spotlight-on-ppi-data-feds-final-verdict
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For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
Pfizer down after bleak 2024 revenue forecast
Tesla slips after losing consumer tax credits for some vehicles
US Nov. PPI awaited at 8:30 a.m. ET
Fed monetary policy verdict due at 2:00 p.m. ET
Futures up: Dow 0.14%, S&P 0.13%, Nasdaq 0.24%
Updated at 7:00 a.m. ET/1200 GMT
By Shristi Achar A and Johann M Cherian
Dec 13 (Reuters) - U.S. stock index futures edged higher on Wednesday, as the Federal Reserve was widely expected to leave interest rates unchanged at its final monetary policy meeting of the year.
The recent slew of reports, including the consumer price index (CPI) data on Tuesday, have cemented expectations that interest rates have peaked, with traders also estimating potential rate cuts next year.
The upbeat sentiment also led Wall Street's main indexes to close at fresh 2023 highs on Tuesday.
All eyes are now on the producer price index (PPI) data for November, scheduled to be released at 8:30 a.m. ET, before the central bank's interest rate decision at the end of its two-day meeting, due at 2:00 p.m. ET.
Focus will also be on Fed Chair Jerome Powell's comments after the policy announcement and the release of the "dot plot", which could provide a glimpse into monetary policy trajectory.
"We expect Powell to push back on the aggressive rate cuts priced in. While the slowdown in inflation would be a welcome, we think it's too soon for the Fed to declare victory over inflation," said Mohit Kumar, chief economist Europe at Jefferies.
"Powell is likely to keep a balanced tone, stressing the data-dependent nature of Fed's decision-making, and argue that it would be too soon to discuss rate cuts."
Money markets have almost fully priced in the Fed holding rates at the current level of 5.25%-5.50% later in the day. Traders now see possible monetary easing next year, estimating a 76.6% chance of at least a 25-basis-point rate cut in May 2024, according to the CME's FedWatch tool.
The European Central Bank and the Bank of England are also scheduled to deliver their policy decisions later this week.
Meanwhile, nearly $5 trillion in U.S. stock options are due to expire on Friday, set to be the largest on record, which strategists said is likely to keep market volatility in check.
At 7:00 a.m. ET, Dow e-minis 1YMcv1 were up 51 points, or 0.14%, S&P 500 e-minis EScv1 were up 6.25 points, or 0.13%, and Nasdaq 100 e-minis NQcv1 were up 39.25 points, or 0.24%.
Among single stocks, TeslaTSLA.O slid 1.1% before the bell as the electric-vehicle maker will lose up to $7,500 federal tax credit for some Model 3 vehicles.
PfizerPFE.Ndropped 7.0% after the drugmaker forecast 2024 revenue below Wall Street expectations, while Southwest AirlinesLUV.Nslipped 1.4% after the carrier raised its forecast for fourth-quarter fuel costs.
Take-Two Interactive SoftwareTTWO.O added 3.1% as the video-game maker is set to be included in the Nasdaq 100 index .NDX, effective December 18.
Ford F.Ndipped 0.5%, after Exane BNP Paribas downgraded the automaker to "neutral" from "outperform".
(Reporting by Shristi Achar A in Bengaluru; Editing by Pooja Desai)
((Shristi.AcharA@thomsonreuters.com https://twitter.com/ShristiAchar;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Pfizer down after bleak 2024 revenue forecast Tesla slips after losing consumer tax credits for some vehicles US Nov. PPI awaited at 8:30 a.m. ET Futures up: Dow 0.14%, S&P 0.13%, Nasdaq 0.24% Updated at 7:00 a.m. ET/1200 GMT By Shristi Achar A and Johann M Cherian Dec 13 (Reuters) - U.S. stock index futures edged higher on Wednesday, as the Federal Reserve was widely expected to leave interest rates unchanged at its final monetary policy meeting of the year. Meanwhile, nearly $5 trillion in U.S. stock options are due to expire on Friday, set to be the largest on record, which strategists said is likely to keep market volatility in check.
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Pfizer down after bleak 2024 revenue forecast Tesla slips after losing consumer tax credits for some vehicles US Nov. PPI awaited at 8:30 a.m. The recent slew of reports, including the consumer price index (CPI) data on Tuesday, have cemented expectations that interest rates have peaked, with traders also estimating potential rate cuts next year. ET, before the central bank's interest rate decision at the end of its two-day meeting, due at 2:00 p.m.
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ET Futures up: Dow 0.14%, S&P 0.13%, Nasdaq 0.24% Updated at 7:00 a.m. ET/1200 GMT By Shristi Achar A and Johann M Cherian Dec 13 (Reuters) - U.S. stock index futures edged higher on Wednesday, as the Federal Reserve was widely expected to leave interest rates unchanged at its final monetary policy meeting of the year. The recent slew of reports, including the consumer price index (CPI) data on Tuesday, have cemented expectations that interest rates have peaked, with traders also estimating potential rate cuts next year. Focus will also be on Fed Chair Jerome Powell's comments after the policy announcement and the release of the "dot plot", which could provide a glimpse into monetary policy trajectory.
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Pfizer down after bleak 2024 revenue forecast Tesla slips after losing consumer tax credits for some vehicles US Nov. PPI awaited at 8:30 a.m. The recent slew of reports, including the consumer price index (CPI) data on Tuesday, have cemented expectations that interest rates have peaked, with traders also estimating potential rate cuts next year. ET, before the central bank's interest rate decision at the end of its two-day meeting, due at 2:00 p.m.
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41a41e5c-b9c5-4f49-a3df-9661f9b318fc
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712018.0
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2023-12-13 00:00:00 UTC
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Here's Why You Should Hold on to Baker Hughes (BKR) Stock Now
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https://www.nasdaq.com/articles/heres-why-you-should-hold-on-to-baker-hughes-bkr-stock-now-1
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Baker Hughes Company BKR has witnessed upward earnings estimate revisions for 2023 and 2024 in the past 60 days.
The company, currently carrying a Zacks Rank #3 (Hold), has gained 12% year to date compared with 1.2% growth of the composite stocks belonging to the industry.
Image Source: Zacks Investment Research
Factors Favoring the Stock
Baker Hughes, as an energy technology company, has a well-rounded portfolio, which extends across the energy and industrial value chain. The broad range enables BKR to capitalize on opportunities in different sectors, while minimizing risks linked to reliance on a singular market segment.
Baker Hughes demonstrated a robust performance in order acquisition and backlog management, particularly in Integrated Energy Technology and Subsea & Surface Pressure Systems. The company secured substantial awards in the LNG and subsea sectors, contributing to a resilient business outlook.
The company has experienced substantial growth in revenue, showcasing a strong financial performance. In the nine months leading up to Sep 30, 2023, total revenues amounted to $18,671 million, a notable increase from $15,251 million during the corresponding period in 2022. This upward trend underscores the company’s expansion in goods and services sales.
BKR boasts a sound balance sheet, with total assets reaching $36,550 million as of Sep 30, 2023. A substantial portion of these assets is represented by $3,201 million in cash and cash equivalents. The strong financial foundation enhances the company’s operational capabilities and provides a solid platform for strategic flexibility.
The company has consistently delivered value to its shareholders through dividend payments, with the most recent dividend standing at $0.58 per share. This underscores the company’s dedication to providing returns to shareholders and highlights its capacity to generate substantial cash flow.
Baker Hughes exhibited a robust financial performance by generating $2,130 million in net cash flows from operating activities for the nine months as of Sep 30, 2023. This substantial cash flow is instrumental in supporting operational needs, pursuing growth initiatives and facilitating returns to shareholders.
Given these tailwinds, Baker Hughes, one of the leading oilfield service players in the United States, is poised for an upside in the coming days.
Risks
Oil and gas companies are highly exposed to commodity price fluctuations, thereby making business for oilfield service providers extremely volatile. This is because oilfield service players like Baker Hughes help upstream energy players efficiently set up oil and gas wells. Baker Hughes’ beta of 1.40 further confirms that the company experiences greater volatility than the broader market.
Stocks to Consider
Investors interested in the energy sector might look at the following companies that presently carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
EOG Resources EOG boasts an appealing growth profile, delivers upper-quartile returns and is guided by a disciplined management team.
EOG Resources has a strong focus on returning capital to shareholders. From 1999 through 2024, the company has been committed to raising its regular dividend at a compound annual growth rate of 21%. EOG has never suspended or lowered its dividend, even during business turmoil, reflecting its solid underlying business.
Matador Resources Company MTDR is among the leading oil and gas explorers in the shale and unconventional resources in the United States.
Matador has raised its fixed quarterly cash dividend by 33% to 20 cents per share (80 cents per share annually). This marks the fourth increment in the company’s fixed dividend since its introduction in the first quarter of 2021. The decision to once again increase the dividend underscores Matador's growing financial and operational strength.
Antero Midstream Corporation AM is a leading provider of integrated and customized midstream services.
Antero Midstream stands out in the industry with its impressive environmental record. With a mere 0.031% methane leak loss rate, it boasts one of the lowest rates in the industry. This demonstrates a strong commitment to minimizing its environmental impacts and reducing greenhouse gas emissions. Additionally, an impressive 86% of wastewater received is either reused or recycled, showcasing their dedication to sustainable water management practices.
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
EOG Resources, Inc. (EOG) : Free Stock Analysis Report
Antero Midstream Corporation (AM) : Free Stock Analysis Report
Baker Hughes Company (BKR) : Free Stock Analysis Report
Matador Resources Company (MTDR) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Baker Hughes demonstrated a robust performance in order acquisition and backlog management, particularly in Integrated Energy Technology and Subsea & Surface Pressure Systems. Baker Hughes exhibited a robust financial performance by generating $2,130 million in net cash flows from operating activities for the nine months as of Sep 30, 2023. Risks Oil and gas companies are highly exposed to commodity price fluctuations, thereby making business for oilfield service providers extremely volatile.
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Baker Hughes exhibited a robust financial performance by generating $2,130 million in net cash flows from operating activities for the nine months as of Sep 30, 2023. Matador has raised its fixed quarterly cash dividend by 33% to 20 cents per share (80 cents per share annually). Click to get this free report EOG Resources, Inc. (EOG) : Free Stock Analysis Report Antero Midstream Corporation (AM) : Free Stock Analysis Report Baker Hughes Company (BKR) : Free Stock Analysis Report Matador Resources Company (MTDR) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The company, currently carrying a Zacks Rank #3 (Hold), has gained 12% year to date compared with 1.2% growth of the composite stocks belonging to the industry. Image Source: Zacks Investment Research Factors Favoring the Stock Baker Hughes, as an energy technology company, has a well-rounded portfolio, which extends across the energy and industrial value chain. Click to get this free report EOG Resources, Inc. (EOG) : Free Stock Analysis Report Antero Midstream Corporation (AM) : Free Stock Analysis Report Baker Hughes Company (BKR) : Free Stock Analysis Report Matador Resources Company (MTDR) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Baker Hughes exhibited a robust financial performance by generating $2,130 million in net cash flows from operating activities for the nine months as of Sep 30, 2023. EOG Resources has a strong focus on returning capital to shareholders. Download FREE: How To Profit From Trillions On Spending For Infrastructure >> Want the latest recommendations from Zacks Investment Research?
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2272b145-5e17-43d8-8b57-4cecba4278c5
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712019.0
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2023-12-13 00:00:00 UTC
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2 Reasons Why AMD Is a Better Artificial Intelligence (AI) Stock to Buy Than Nvidia -- and 2 Reasons Why It Isn't
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https://www.nasdaq.com/articles/2-reasons-why-amd-is-a-better-artificial-intelligence-ai-stock-to-buy-than-nvidia-and-2
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Which huge artificial intelligence (AI) chipmaker has the most momentum right now? It's not Nvidia (NASDAQ: NVDA). Sure, Nvidia's shares have more than tripled in 2023. Over the last three months, though, the stock is only up by the low-single digits.
Meanwhile, Advanced Micro Devices (NASDAQ: AMD) has more than doubled this year. And its stock has especially been on fire recently, jumping close to 30% over the last three months.
Investors have an interesting choice in picking between these two stocks. Here are two reasons why AMD is a better AI stock to buy than Nvidia -- and two reasons why it isn't.
Two reasons why AMD is better than Nvidia
1. Customers looking for an alternative
I'd argue that the top reason why AMD could be a better AI stock to buy than Nvidia right now is that customers are looking for an alternative to Nvidia's graphics processing units (GPUs). This presents a tremendous opportunity for AMD to step up to the plate.
We've already seen this happen in recent days. Both Meta Platforms and Microsoft plan to use AMD's new Instinct MI300X AI chip. This appears to be a clear sign that tech giants are trying not to rely exclusively on Nvidia.
The bottom line is that if AMD offers a viable cost-effective alternative to Nvidia, the company could have greater growth prospects than Nvidia does. And that could enable its stock to continue outperforming Nvidia like it's done over the last three months.
2. Diversification if the AI chip market gets bumpy
With Nvidia, you pretty much get GPUs and nothing but GPUs. At least, that's been the story so far for the company. Reuters reported in October that Nvidia has started designing central processing units (CPUs) using Arm's technology. We have yet to see the fruit of these reported efforts, though.
For now, Nvidia is more dependent on the AI chip market than AMD is. That's not a bad thing when the AI market is booming as it has been this year. However, there's something to be said in favor of the diversification that AMD offers. The company makes more types of chips that are used for a broader range of purposes. Should the AI market experience some bumps in the road, AMD could weather the volatility better than Nvidia.
Two reasons why AMD isn't better than Nvidia
1. Nvidia's dominant market share
Nvidia's GPUs remain the gold standard for training and powering AI applications. Unsurprisingly, the company dominates the AI chip market. Importantly, Nvidia isn't resting on its laurels. It is still investing heavily in research and development. It continues to roll out more powerful AI chips.
AMD probably won't dethrone Nvidia anytime soon. And unless it launches AI chips that are clearly superior to Nvidia's GPUs, any market share gains made by AMD likely won't hamper Nvidia's growth.
2. Nvidia is more attractively valued than AMD
Oftentimes, the up-and-coming rival is more of a bargain than the 800-pound gorilla in the industry. That isn't the case here. Nvidia is actually more attractively valued than AMD.
AMD stock currently trades at a forward price-to-earnings multiple of 36. Nvidia's shares trade at a much lower 23.6 times forward earnings.
The picture looks even better when we factor projected growth into the equation. AMD's price-to-earnings-to-growth (PEG) ratio is 1.9 compared to Nvidia's seemingly dirt cheap 0.47.
The easy solution for investors
Both AMD and Nvidia should also deliver strong growth as the demand for AI soars. The good news is that investors don't have to pick which company will be the biggest winner. Investors have an easy solution: Buy both stocks.
I think that AMD and Nvidia could experience more choppiness over the next few years. It's unrealistic to expect either stock to continue doubling or tripling every 12 months. For long-term investors, though, both stocks provide an opportunity to profit from the AI boom over the next decade and beyond.
Should you invest $1,000 in Advanced Micro Devices right now?
Before you buy stock in Advanced Micro Devices, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Advanced Micro Devices wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
See the 10 stocks
*Stock Advisor returns as of December 11, 2023
Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Keith Speights has positions in Meta Platforms and Microsoft. The Motley Fool has positions in and recommends Advanced Micro Devices, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Reuters reported in October that Nvidia has started designing central processing units (CPUs) using Arm's technology. The easy solution for investors Both AMD and Nvidia should also deliver strong growth as the demand for AI soars. The Motley Fool has positions in and recommends Advanced Micro Devices, Meta Platforms, Microsoft, and Nvidia.
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And unless it launches AI chips that are clearly superior to Nvidia's GPUs, any market share gains made by AMD likely won't hamper Nvidia's growth. Before you buy stock in Advanced Micro Devices, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Advanced Micro Devices wasn't one of them. The Motley Fool has positions in and recommends Advanced Micro Devices, Meta Platforms, Microsoft, and Nvidia.
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Customers looking for an alternative I'd argue that the top reason why AMD could be a better AI stock to buy than Nvidia right now is that customers are looking for an alternative to Nvidia's graphics processing units (GPUs). And unless it launches AI chips that are clearly superior to Nvidia's GPUs, any market share gains made by AMD likely won't hamper Nvidia's growth. Before you buy stock in Advanced Micro Devices, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Advanced Micro Devices wasn't one of them.
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Two reasons why AMD isn't better than Nvidia 1. And unless it launches AI chips that are clearly superior to Nvidia's GPUs, any market share gains made by AMD likely won't hamper Nvidia's growth. Before you buy stock in Advanced Micro Devices, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Advanced Micro Devices wasn't one of them.
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712020.0
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2023-12-13 00:00:00 UTC
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Surging Earnings Estimates Signal Upside for StoneCo Ltd. (STNE) Stock
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https://www.nasdaq.com/articles/surging-earnings-estimates-signal-upside-for-stoneco-ltd.-stne-stock
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Investors might want to bet on StoneCo Ltd. (STNE), as earnings estimates for this company have been showing solid improvement lately. The stock has already gained solid short-term price momentum, and this trend might continue with its still improving earnings outlook.
The upward trend in estimate revisions for this company reflects growing optimism of analysts on its earnings prospects, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- has this insight at its core.
The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.
For StoneCo Ltd. Strong agreement among the covering analysts in revising earnings estimates upward has resulted in meaningful improvement in consensus estimates for the next quarter and full year.
Current-Quarter Estimate Revisions
The company is expected to earn $0.26 per share for the current quarter, which represents a year-over-year change of +85.71%.
Over the last 30 days, one estimate has moved higher for StoneCo Ltd. compared to no negative revisions. As a result, the Zacks Consensus Estimate has increased 12.06%.
Current-Year Estimate Revisions
For the full year, the earnings estimate of $0.85 per share represents a change of +157.58% from the year-ago number.
In terms of estimate revisions, the trend for the current year also appears quite encouraging for StoneCo Ltd. Over the past month, three estimates have moved higher compared to no negative revisions, helping the consensus estimate increase 7.91%.
Favorable Zacks Rank
The promising estimate revisions have helped StoneCo Ltd. earn a Zacks Rank #1 (Strong Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.
Bottom Line
StoneCo Ltd. shares have added 23.8% over the past four weeks, suggesting that investors are betting on its impressive estimate revisions. So, you may consider adding it to your portfolio right away to benefit from its earnings growth prospects.
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
StoneCo Ltd. (STNE) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision. Bottom Line StoneCo Ltd. shares have added 23.8% over the past four weeks, suggesting that investors are betting on its impressive estimate revisions. 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.
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For StoneCo Ltd. Strong agreement among the covering analysts in revising earnings estimates upward has resulted in meaningful improvement in consensus estimates for the next quarter and full year. In terms of estimate revisions, the trend for the current year also appears quite encouraging for StoneCo Ltd. Over the past month, three estimates have moved higher compared to no negative revisions, helping the consensus estimate increase 7.91%. Favorable Zacks Rank The promising estimate revisions have helped StoneCo Ltd. earn a Zacks Rank #1 (Strong Buy).
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The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008. In terms of estimate revisions, the trend for the current year also appears quite encouraging for StoneCo Ltd. Over the past month, three estimates have moved higher compared to no negative revisions, helping the consensus estimate increase 7.91%. Favorable Zacks Rank The promising estimate revisions have helped StoneCo Ltd. earn a Zacks Rank #1 (Strong Buy).
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Investors might want to bet on StoneCo Ltd. (STNE), as earnings estimates for this company have been showing solid improvement lately. In terms of estimate revisions, the trend for the current year also appears quite encouraging for StoneCo Ltd. Over the past month, three estimates have moved higher compared to no negative revisions, helping the consensus estimate increase 7.91%. Download FREE: How To Profit From Trillions On Spending For Infrastructure >> Want the latest recommendations from Zacks Investment Research?
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5f63b29e-eff0-4cf2-9067-1b0f7a2937d3
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712021.0
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2023-12-13 00:00:00 UTC
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Brink's (BCO) Is a Great Choice for 'Trend' Investors, Here's Why
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DCOMP
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https://www.nasdaq.com/articles/brinks-bco-is-a-great-choice-for-trend-investors-heres-why-0
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nan
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nan
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Most of us have heard the dictum "the trend is your friend." And this is undeniably the key to success when it comes to short-term investing or trading. But it isn't easy to ensure the sustainability of a trend and profit from it.
The trend often reverses before exiting the trade, leading to a short-term capital loss for investors. So, for a profitable trade, one should confirm factors such as sound fundamentals, positive earnings estimate revisions, etc. that could keep the momentum in the stock alive.
Our "Recent Price Strength" screen, which is created on a unique short-term trading strategy, could be pretty useful in this regard. This predefined screen makes it really easy to shortlist the stocks that have enough fundamental strength to maintain their recent uptrend. Also, the screen passes only the stocks that are trading in the upper portion of their 52-week high-low range, which is usually an indicator of bullishness.
Brink's (BCO) is one of the several suitable candidates that passed through the screen. Here are the key reasons why it could be a profitable bet for "trend" investors.
A solid price increase over a period of 12 weeks reflects investors' continued willingness to pay more for the potential upside in a stock. BCO is quite a good fit in this regard, gaining 12.9% over this period.
However, it's not enough to look at the price change for around three months, as it doesn't reflect any trend reversal that might have happened in a shorter time frame. It's important for a potential winner to maintain the price trend. A price increase of 9.4% over the past four weeks ensures that the trend is still in place for the stock of this armored car company.
Moreover, BCO is currently trading at 95.8% of its 52-week High-Low Range, hinting that it can be on the verge of a breakout.
Looking at the fundamentals, the stock currently carries a Zacks Rank #2 (Buy), which means it is in the top 20% of more than the 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises -- the key factors that impact a stock's near-term price movements.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Another factor that confirms the company's fundamental strength is its Average Broker Recommendation of #1 (Strong Buy). This indicates that the brokerage community is highly optimistic about the stock's near-term price performance.
So, the price trend in BCO may not reverse anytime soon.
In addition to BCO, there are several other stocks that currently pass through our "Recent Price Strength" screen. You may consider investing in them and start looking for the newest stocks that fit these criteria.
This is not the only screen that could help you find your next winning stock pick. Based on your personal investing style, you may choose from over 45 Zacks Premium Screens that are strategically created to beat the market.
However, keep in mind that the key to a successful stock-picking strategy is to ensure that it produced profitable results in the past. You could easily do that with the help of the Zacks Research Wizard. In addition to allowing you to backtest the effectiveness of your strategy, the program comes loaded with some of our most successful stock-picking strategies.
Click here to sign up for a free trial to the Research Wizard today.
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
Brink's Company (The) (BCO) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
A solid price increase over a period of 12 weeks reflects investors' continued willingness to pay more for the potential upside in a stock. 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.
|
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Another factor that confirms the company's fundamental strength is its Average Broker Recommendation of #1 (Strong Buy). Click to get this free report Brink's Company (The) (BCO) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Looking at the fundamentals, the stock currently carries a Zacks Rank #2 (Buy), which means it is in the top 20% of more than the 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises -- the key factors that impact a stock's near-term price movements. The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Another factor that confirms the company's fundamental strength is its Average Broker Recommendation of #1 (Strong Buy).
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Our "Recent Price Strength" screen, which is created on a unique short-term trading strategy, could be pretty useful in this regard. In addition to BCO, there are several other stocks that currently pass through our "Recent Price Strength" screen. Download FREE: How To Profit From Trillions On Spending For Infrastructure >> Want the latest recommendations from Zacks Investment Research?
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179856de-5754-4a81-86de-7ad782de1c7d
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712022.0
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2023-12-13 00:00:00 UTC
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Curtiss-Wright (CW) Is a Great Choice for 'Trend' Investors, Here's Why
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DCOMP
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https://www.nasdaq.com/articles/curtiss-wright-cw-is-a-great-choice-for-trend-investors-heres-why-0
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nan
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nan
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While "the trend is your friend" when it comes to short-term investing or trading, timing entries into the trend is a key determinant of success. And increasing the odds of success by making sure the sustainability of a trend isn't easy.
Often, the direction of a stock's price movement reverses quickly after taking a position in it, making investors incur a short-term capital loss. So, it's important to ensure that there are enough factors -- such as sound fundamentals, positive earnings estimate revisions, etc. -- that could keep the momentum in the stock going.
Our "Recent Price Strength" screen, which is created on a unique short-term trading strategy, could be pretty useful in this regard. This predefined screen makes it really easy to shortlist the stocks that have enough fundamental strength to maintain their recent uptrend. Also, the screen passes only the stocks that are trading in the upper portion of their 52-week high-low range, which is usually an indicator of bullishness.
There are several stocks that passed through the screen and Curtiss-Wright (CW) is one of them. Here are the key reasons why this stock is a solid choice for "trend" investing.
A solid price increase over a period of 12 weeks reflects investors' continued willingness to pay more for the potential upside in a stock. CW is quite a good fit in this regard, gaining 7.8% over this period.
However, it's not enough to look at the price change for around three months, as it doesn't reflect any trend reversal that might have happened in a shorter time frame. It's important for a potential winner to maintain the price trend. A price increase of 3% over the past four weeks ensures that the trend is still in place for the stock of this engineering firm.
Moreover, CW is currently trading at 98.9% of its 52-week High-Low Range, hinting that it can be on the verge of a breakout.
Looking at the fundamentals, the stock currently carries a Zacks Rank #2 (Buy), which means it is in the top 20% of more than the 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises -- the key factors that impact a stock's near-term price movements.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Another factor that confirms the company's fundamental strength is its Average Broker Recommendation of #1 (Strong Buy). This indicates that the brokerage community is highly optimistic about the stock's near-term price performance.
So, the price trend in CW may not reverse anytime soon.
In addition to CW, there are several other stocks that currently pass through our "Recent Price Strength" screen. You may consider investing in them and start looking for the newest stocks that fit these criteria.
This is not the only screen that could help you find your next winning stock pick. Based on your personal investing style, you may choose from over 45 Zacks Premium Screens that are strategically created to beat the market.
However, keep in mind that the key to a successful stock-picking strategy is to ensure that it produced profitable results in the past. You could easily do that with the help of the Zacks Research Wizard. In addition to allowing you to backtest the effectiveness of your strategy, the program comes loaded with some of our most successful stock-picking strategies.
Click here to sign up for a free trial to the Research Wizard today.
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
Curtiss-Wright Corporation (CW) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Often, the direction of a stock's price movement reverses quickly after taking a position in it, making investors incur a short-term capital loss. A solid price increase over a period of 12 weeks reflects investors' continued willingness to pay more for the potential upside in a stock. 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.
|
Our "Recent Price Strength" screen, which is created on a unique short-term trading strategy, could be pretty useful in this regard. The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Another factor that confirms the company's fundamental strength is its Average Broker Recommendation of #1 (Strong Buy).
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Looking at the fundamentals, the stock currently carries a Zacks Rank #2 (Buy), which means it is in the top 20% of more than the 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises -- the key factors that impact a stock's near-term price movements. The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Another factor that confirms the company's fundamental strength is its Average Broker Recommendation of #1 (Strong Buy).
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Our "Recent Price Strength" screen, which is created on a unique short-term trading strategy, could be pretty useful in this regard. There are several stocks that passed through the screen and Curtiss-Wright (CW) is one of them. Download FREE: How To Profit From Trillions On Spending For Infrastructure >> Want the latest recommendations from Zacks Investment Research?
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ae817386-cbfb-4641-bcfa-74c7c980ddc8
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712023.0
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2023-12-13 00:00:00 UTC
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Here's Why Momentum in Erie Indemnity (ERIE) Should Keep going
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DCOMP
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https://www.nasdaq.com/articles/heres-why-momentum-in-erie-indemnity-erie-should-keep-going
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nan
|
nan
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Most of us have heard the dictum "the trend is your friend." And this is undeniably the key to success when it comes to short-term investing or trading. But it isn't easy to ensure the sustainability of a trend and profit from it.
The trend often reverses before exiting the trade, leading to a short-term capital loss for investors. So, for a profitable trade, one should confirm factors such as sound fundamentals, positive earnings estimate revisions, etc. that could keep the momentum in the stock alive.
Our "Recent Price Strength" screen, which is created on a unique short-term trading strategy, could be pretty useful in this regard. This predefined screen makes it really easy to shortlist the stocks that have enough fundamental strength to maintain their recent uptrend. Also, the screen passes only the stocks that are trading in the upper portion of their 52-week high-low range, which is usually an indicator of bullishness.
Erie Indemnity (ERIE) is one of the several suitable candidates that passed through the screen. Here are the key reasons why it could be a profitable bet for "trend" investors.
A solid price increase over a period of 12 weeks reflects investors' continued willingness to pay more for the potential upside in a stock. ERIE is quite a good fit in this regard, gaining 11.3% over this period.
However, it's not enough to look at the price change for around three months, as it doesn't reflect any trend reversal that might have happened in a shorter time frame. It's important for a potential winner to maintain the price trend. A price increase of 13.4% over the past four weeks ensures that the trend is still in place for the stock of this insurance company.
Moreover, ERIE is currently trading at 99.8% of its 52-week High-Low Range, hinting that it can be on the verge of a breakout.
Looking at the fundamentals, the stock currently carries a Zacks Rank #1 (Strong Buy), which means it is in the top 5% of more than the 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises -- the key factors that impact a stock's near-term price movements.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Another factor that confirms the company's fundamental strength is its Average Broker Recommendation of #1 (Strong Buy). This indicates that the brokerage community is highly optimistic about the stock's near-term price performance.
So, the price trend in ERIE may not reverse anytime soon.
In addition to ERIE, there are several other stocks that currently pass through our "Recent Price Strength" screen. You may consider investing in them and start looking for the newest stocks that fit these criteria.
This is not the only screen that could help you find your next winning stock pick. Based on your personal investing style, you may choose from over 45 Zacks Premium Screens that are strategically created to beat the market.
However, keep in mind that the key to a successful stock-picking strategy is to ensure that it produced profitable results in the past. You could easily do that with the help of the Zacks Research Wizard. In addition to allowing you to backtest the effectiveness of your strategy, the program comes loaded with some of our most successful stock-picking strategies.
Click here to sign up for a free trial to the Research Wizard today.
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
Erie Indemnity Company (ERIE) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
A solid price increase over a period of 12 weeks reflects investors' continued willingness to pay more for the potential upside in a stock. Based on your personal investing style, you may choose from over 45 Zacks Premium Screens that are strategically created to beat the market. 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.
|
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Another factor that confirms the company's fundamental strength is its Average Broker Recommendation of #1 (Strong Buy). Click to get this free report Erie Indemnity Company (ERIE) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Looking at the fundamentals, the stock currently carries a Zacks Rank #1 (Strong Buy), which means it is in the top 5% of more than the 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises -- the key factors that impact a stock's near-term price movements. The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Another factor that confirms the company's fundamental strength is its Average Broker Recommendation of #1 (Strong Buy).
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Our "Recent Price Strength" screen, which is created on a unique short-term trading strategy, could be pretty useful in this regard. In addition to ERIE, there are several other stocks that currently pass through our "Recent Price Strength" screen. Download FREE: How To Profit From Trillions On Spending For Infrastructure >> Want the latest recommendations from Zacks Investment Research?
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f20a7fb2-8827-42b7-bdda-4c2443ce449e
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712024.0
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2023-12-13 00:00:00 UTC
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Candel (CADL) Rises on FDA's Fast Track Status for CAN-2409
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DCOMP
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https://www.nasdaq.com/articles/candel-cadl-rises-on-fdas-fast-track-status-for-can-2409
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nan
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nan
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Candel Therapeutics, Inc. CADL announced that the FDA has granted Fast Track designation to its investigational adenovirus candidate CAN-2409 plus prodrug (valacyclovir) for the treatment of pancreatic ductal adenocarcinoma (PDAC). Shares of the company were up 20.6% on Dec 12 following the announcement of the news.
The Fast Track designation facilitates rapid development and expedites the review of drug candidates that are being developed to treat serious conditions and for which clinical data demonstrate the potential to address unmet medical needs. The goal is to make these treatments rapidly available to patients in need.
CAN-2409 is currently being evaluated in a phase II study for treating patients with PDAC and improve overall survival.
In November 2023, based on an interim analysis, CADL reported encouraging overall survival and immunological biomarker data from the phase II study evaluating CAN-2409 plus prodrug with standard of care — neoadjuvant chemoradiation followed by resection in borderline resectable non-metastatic PDAC.
Data from the same study demonstrated prolonged and sustained survival after experimental treatment with CAN-2409 in the given patient population.
Candel plans to announce updated overall survival data from the interim analysis of the above-mentioned study in the second quarter of 2024.
Shares of Candel have plunged 42.6% in the past year compared with the industry’s decline of 23.7%.
Image Source: Zacks Investment Research
Last month, CADL announced strategic restructuring and portfolio prioritization with a focus on its lead asset, CAN-2409, and the clinical development of another candidate, CAN-3110.
As part of the restructuring, the company reduced its current workforce by almost 50%, which is likely to reduce costs and operating expenses. This is likely to extend Candel’s cash runway into the fourth quarter of 2024.
The company expects key data readouts for CAN-2409 in non-small cell lung cancer and pancreatic cancer in the second quarter of 2024, while top-line data in prostate cancer is expected in the fourth quarter of 2024.
Candel is also advancing the development of CAN-3110 in recurrent high-grade glioma. Initial biomarker data on CAN-3110 is expected in the second half of 2024.
In the absence of a marketed product, the successful development of its pipeline candidates remains the key focus for this clinical-stage biopharmaceutical company.
Zacks Rank & Stocks to Consider
Candel currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the biotech sector are Journey Medical Corporation DERM, Entrada Therapeutics, Inc. TRDA and Puma Biotechnology, Inc. PBYI, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, estimates for Journey Medical’s 2023 loss per share have narrowed from $1.28 to 16 cents. Meanwhile, loss per share estimates for 2024 have narrowed from 41 cents to 35 cents. In the past year, shares of DERM have surged 320.8%.
Earnings of Journey Medical beat estimates in one of the last four quarters while missing the same on the remaining three occasions. DERM delivered a four-quarter earnings surprise of 118.25%, on average.
In the past 60 days, estimates for Entrada Therapeutics’ 2023 loss per share have narrowed from $2.07 to 9 cents. Meanwhile, loss per share estimates for 2024 have narrowed from $2.35 to $2.04. In the past year, shares of TRDA have decreased 34.5%.
Earnings of Entrada Therapeutics beat estimates in three of the last four quarters while missing the same on the remaining occasion. TRDA delivered a four-quarter average earnings surprise of 70.68%.
In the past 60 days, estimates for Puma Biotechnology’s 2023 earnings per share have improved from 67 cents to 72 cents. During the same period, earnings per share estimates for 2024 have moved up from 55 cents to 64 cents. In the past year, shares of PBYI have lost 24.1%.
Earnings of Puma Biotechnology beat estimates in three of the last four quarters while missing the same on the remaining occasion. PBYI delivered a four-quarter average earnings surprise of 76.55%.
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
Puma Biotechnology, Inc. (PBYI) : Free Stock Analysis Report
Journey Medical Corporation (DERM) : Free Stock Analysis Report
Candel Therapeutics, Inc. (CADL) : Free Stock Analysis Report
Entrada Therapeutics, Inc. (TRDA) : 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.
|
Candel Therapeutics, Inc. CADL announced that the FDA has granted Fast Track designation to its investigational adenovirus candidate CAN-2409 plus prodrug (valacyclovir) for the treatment of pancreatic ductal adenocarcinoma (PDAC). Image Source: Zacks Investment Research Last month, CADL announced strategic restructuring and portfolio prioritization with a focus on its lead asset, CAN-2409, and the clinical development of another candidate, CAN-3110. Some better-ranked stocks in the biotech sector are Journey Medical Corporation DERM, Entrada Therapeutics, Inc. TRDA and Puma Biotechnology, Inc. PBYI, each sporting a Zacks Rank #1 (Strong Buy).
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In November 2023, based on an interim analysis, CADL reported encouraging overall survival and immunological biomarker data from the phase II study evaluating CAN-2409 plus prodrug with standard of care — neoadjuvant chemoradiation followed by resection in borderline resectable non-metastatic PDAC. Some better-ranked stocks in the biotech sector are Journey Medical Corporation DERM, Entrada Therapeutics, Inc. TRDA and Puma Biotechnology, Inc. PBYI, each sporting a Zacks Rank #1 (Strong Buy). Click to get this free report Puma Biotechnology, Inc. (PBYI) : Free Stock Analysis Report Journey Medical Corporation (DERM) : Free Stock Analysis Report Candel Therapeutics, Inc. (CADL) : Free Stock Analysis Report Entrada Therapeutics, Inc. (TRDA) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The company expects key data readouts for CAN-2409 in non-small cell lung cancer and pancreatic cancer in the second quarter of 2024, while top-line data in prostate cancer is expected in the fourth quarter of 2024. In the past 60 days, estimates for Puma Biotechnology’s 2023 earnings per share have improved from 67 cents to 72 cents. Click to get this free report Puma Biotechnology, Inc. (PBYI) : Free Stock Analysis Report Journey Medical Corporation (DERM) : Free Stock Analysis Report Candel Therapeutics, Inc. (CADL) : Free Stock Analysis Report Entrada Therapeutics, Inc. (TRDA) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Candel plans to announce updated overall survival data from the interim analysis of the above-mentioned study in the second quarter of 2024. In the past 60 days, estimates for Puma Biotechnology’s 2023 earnings per share have improved from 67 cents to 72 cents. Download FREE: How To Profit From Trillions On Spending For Infrastructure >> Want the latest recommendations from Zacks Investment Research?
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527b889f-bf8e-43f8-9e35-1cb9fa30dfed
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712025.0
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2023-12-13 00:00:00 UTC
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Some of the Best Ideas from the 12th Annual Benchmark Discovery Conference
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DCOMP
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https://www.nasdaq.com/articles/some-of-the-best-ideas-from-the-12th-annual-benchmark-discovery-conference
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nan
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nan
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C
onference season in the investment industry may be starting to wind down, but several reputable and well-known names have just wrapped up their annual conferences. One of the most recent conferences to wrap up was the Discovery Conference, hosted by The Benchmark Company. The annual conference gives companies opportunities for one-on-one meetings with institutional investors from across the U.S. Here are some of the best ideas from this year's Discovery Conference.
SKYX Platforms
SKYX Platforms (SKYX) provides next-generation smart-home solutions for residential and commercial applications. The company has over 77 patents and patent-pending applications in the U.S. and globally, including 23 issued patents. SKYX Platforms also has a global licensing partnership with General Electric (GE).
Currently, the company is offering a ceiling platform for smart light fixtures, which it says is creating a new global electric safety standard. The Sky Smart Ceiling Plug is an open platform designed to seamlessly integrate into any type of lighting fixture, turning it into a smart light. According to the company, the Sky Smart Ceiling Plug won five Consumer Electronic Show (CES) Awards in 2023.
Beyond the Sky Smart Ceiling Plug for light fixtures, SKYX Platforms is also working on its All-in-One Safe-Smart Ceiling Platform, which it says “makes homes become smart in just minutes.”
Quantum Computing Inc.
Quantum Computing Inc. (QUBT) taps into one of the newest areas of technology under development. The company is developing a suite of full-stack quantum solutions for enterprise customers, including its EQC hardware, Qatalyst software and a range of professional services.
Technically speaking, a Quantum computer is one that utilizes quantum mechanics to solve problems that are so complex that standard computers can't crack them. In fact, quantum-computing technology received a major headline boost recently, when IBM (IBM) announced the first quantum computer with over 1,000 qubits, which Scientific American described as "the equivalent of the digital bits in an ordinary computer."
Quantum Computing Inc. offers free trials for remote access to its Dirac quantum computers to enterprises wanting to work on optimization problems. These trials include licenses for academic, testing and development purposes and a set allotment of computing time. Quantum Computing also offers Dirac-1 as a subscription service.
Dyadic
Dyadic (DYAI) is an interesting biotechnology company working on a wide range of products for human health, animal health and alternative proteins. First, the company is applying its proprietary and patented C1 technology to develop vaccines and antibodies for infectious diseases in humans.
During the first quarter, Dyadic began dosing in a Phase 1 clinical trial of DYAI-100, a COVID-19 booster vaccine candidate based on recombinant protein. The company expects the results from this first in-human trial to accelerate the adoption of the C1-cell protein production platform.
In addition to the COVID-19 vaccine, Dyadic is also developing several other vaccines for infectious diseases, including influenza, and other illnesses, including cancer. The company is using the same C1 platform to develop vaccines and antibodies for infectious diseases in animals, with a focus on Rift-Valley fever, salmonellosis, zoonotic influenza, West Nile virus, coronavirus, plague, rabies, Lyme disease and brucellosis.
Finally, Dyadic's alternative proteins program is aimed at reducing the cost of recombinant protein production using its proprietary Dapibus platform and other technologies in the search for non-pharmaceutical recombinant proteins. As part of this last program, Dyadic has launched a strategic partnership with a global food ingredient company and is exploring licensing and product opportunities in the alternative meat industry.
Ideal Power
Ideal Power (IPWR) has patented a unique bidirectional semiconductor power switch that's designed for applications in which energy efficiency is of the utmost importance. More specifically, the company's Bidirectional, Bipolar Junction Transistor, or B-TRAN, is designed for use in renewable-energy applications and energy storage, electric vehicles and EV chargers, data centers, solid-state circuit breakers, and other military and industrial uses.
Because it is bidirectional, just one B-TRAN can replace two or more conventional power switches in a wide array of applications. As a result, B-TRAN is not only eco-friendly but also extremely efficient, which makes it perfect for energy-efficient or green-energy devices. For example, EVs that utilize Ideal Power's technology have improved range. Additionally, the company's technology can boost the number of kilowatt hours that can be harvested from renewable-energy installations.
One reason B-TRAN is so energy-efficient is because of its unique, double-sided design, which significantly reduces conduction losses, the complexity of thermal management, and operating costs in AC power switching and control circuitry. Ideal Power's SymCool IQ Intelligent Power Module, which was launched recently, also uses its B-TRAN bidirectional power switch.
Know Labs
Know Labs (KNW) is developing non-invasive blood glucose monitoring solutions. The company's proprietary Bio-RFID is a technology platform that uses radio waves "to identify and measure what is going on inside your body." Know Labs' device can be integrated into a wide range of device types from wearable to mobile or bench-top form factors.
In fact, the company sees more than 100 potential applications for its Bio-RFID sensors, which can identify various molecules found in the body, including glucose, metabolized drugs, oxygen and alcohol. Given its ability to monitor glucose, diabetics may be particularly interested in these sensors because they do not require needles or even invasive transmitters to be placed on the body.
For this reason, it's easy to see why Know Labs is targeting blood glucose as its first priority. In fact, the Bio-RFID sensors don't even require test strips, lancets or other expensive consumable supplies. To use the sensors, the patient just needs to place one in their palm or hold the portable device to capture a spot reading of their blood glucose.
Know Labs has also developed a wearable glucose monitoring device called the UBand.
Investing in high-growth sectors
All the companies on this list operate in high-growth sectors and are developing cutting-edge technologies in their fields with the potential for tremendous gains in the future. For example, one estimate pegged the quantum-computing market at $812.6 million in revenue for 2022, with a projected compound annual growth rate (CAGR) of 22% between 2023 and 2030, bringing it to $8.2 billion in revenue.
Meanwhile, another estimate suggested the blood glucose monitoring device market was worth $12.5 billion in 2022 and projected a CAGR of 8.13% between 2023 and 2030. In fact, Know Labs could eventually address many more markets than just blood glucose monitoring with its technology, so these numbers probably represent only a fraction of the company’s potential total addressable market (TAM).
Ideal Power already addresses a large number of energy-efficient markets. However, one firm estimated that EVs alone represented a $49.1 billion market in 2022 and projected a CAGR of more than 15.5% between 2023 and 2032, making it worth $215.7 billion. Thus, Ideal Power’s TAM should be significantly larger than this one market alone.
Similarly, Dyadic is working on both vaccines and antibodies for infectious diseases and other illnesses in both humans and animals. However, considering only vaccines for infectious diseases, one estimate pegs the market at $77.6 billion in 2023 with a CAGR of 3.9% between 2023 and 2028, making it worth $93.8 billion.
Of course, despite the large TAMs these companies could see, investors are always advised to do their own due diligence before investing in any company or sector.
Ari Zoldan is CEO of Quantum Media Group, LLC, and Ideal Power is a client of Quantum Media Group. There is no connection between Quantum Computing Inc. and Quantum Media Group.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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As part of this last program, Dyadic has launched a strategic partnership with a global food ingredient company and is exploring licensing and product opportunities in the alternative meat industry. More specifically, the company's Bidirectional, Bipolar Junction Transistor, or B-TRAN, is designed for use in renewable-energy applications and energy storage, electric vehicles and EV chargers, data centers, solid-state circuit breakers, and other military and industrial uses. One reason B-TRAN is so energy-efficient is because of its unique, double-sided design, which significantly reduces conduction losses, the complexity of thermal management, and operating costs in AC power switching and control circuitry.
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Beyond the Sky Smart Ceiling Plug for light fixtures, SKYX Platforms is also working on its All-in-One Safe-Smart Ceiling Platform, which it says “makes homes become smart in just minutes.” Quantum Computing Inc. Quantum Computing Inc. (QUBT) taps into one of the newest areas of technology under development. Dyadic Dyadic (DYAI) is an interesting biotechnology company working on a wide range of products for human health, animal health and alternative proteins. Ideal Power Ideal Power (IPWR) has patented a unique bidirectional semiconductor power switch that's designed for applications in which energy efficiency is of the utmost importance.
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Beyond the Sky Smart Ceiling Plug for light fixtures, SKYX Platforms is also working on its All-in-One Safe-Smart Ceiling Platform, which it says “makes homes become smart in just minutes.” Quantum Computing Inc. Quantum Computing Inc. (QUBT) taps into one of the newest areas of technology under development. Ideal Power Ideal Power (IPWR) has patented a unique bidirectional semiconductor power switch that's designed for applications in which energy efficiency is of the utmost importance. In fact, Know Labs could eventually address many more markets than just blood glucose monitoring with its technology, so these numbers probably represent only a fraction of the company’s potential total addressable market (TAM).
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Beyond the Sky Smart Ceiling Plug for light fixtures, SKYX Platforms is also working on its All-in-One Safe-Smart Ceiling Platform, which it says “makes homes become smart in just minutes.” Quantum Computing Inc. Quantum Computing Inc. (QUBT) taps into one of the newest areas of technology under development. In addition to the COVID-19 vaccine, Dyadic is also developing several other vaccines for infectious diseases, including influenza, and other illnesses, including cancer. Meanwhile, another estimate suggested the blood glucose monitoring device market was worth $12.5 billion in 2022 and projected a CAGR of 8.13% between 2023 and 2030.
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ed508d5a-9f95-4e78-80c4-e75dc6ae27f6
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712026.0
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2023-12-13 00:00:00 UTC
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Earnings Estimates Rising for DocuSign (DOCU): Will It Gain?
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DCOMP
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https://www.nasdaq.com/articles/earnings-estimates-rising-for-docusign-docu%3A-will-it-gain
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nan
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nan
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Investors might want to bet on DocuSign (DOCU), as earnings estimates for this company have been showing solid improvement lately. The stock has already gained solid short-term price momentum, and this trend might continue with its still improving earnings outlook.
The upward trend in estimate revisions for this provider of electronic signature technology reflects growing optimism of analysts on its earnings prospects, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- has this insight at its core.
The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.
For DocuSign, strong agreement among the covering analysts in revising earnings estimates upward has resulted in meaningful improvement in consensus estimates for the next quarter and full year.
Current-Quarter Estimate Revisions
The company is expected to earn $0.63 per share for the current quarter, which represents a year-over-year change of -3.08%.
Over the last 30 days, seven estimates have moved higher for DocuSign compared to no negative revisions. As a result, the Zacks Consensus Estimate has increased 491.67%.
Current-Year Estimate Revisions
For the full year, the earnings estimate of $2.84 per share represents a change of +39.9% from the year-ago number.
In terms of estimate revisions, the trend for the current year also appears quite encouraging for DocuSign. Over the past month, eight estimates have moved higher compared to no negative revisions, helping the consensus estimate increase 37.42%.
Favorable Zacks Rank
The promising estimate revisions have helped DocuSign earn a Zacks Rank #1 (Strong Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.
Bottom Line
DocuSign shares have added 31.1% over the past four weeks, suggesting that investors are betting on its impressive estimate revisions. So, you may consider adding it to your portfolio right away to benefit from its earnings growth prospects.
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
DocuSign (DOCU) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision. Bottom Line DocuSign shares have added 31.1% over the past four weeks, suggesting that investors are betting on its impressive estimate revisions. 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.
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For DocuSign, strong agreement among the covering analysts in revising earnings estimates upward has resulted in meaningful improvement in consensus estimates for the next quarter and full year. Over the past month, eight estimates have moved higher compared to no negative revisions, helping the consensus estimate increase 37.42%. Favorable Zacks Rank The promising estimate revisions have helped DocuSign earn a Zacks Rank #1 (Strong Buy).
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The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008. For DocuSign, strong agreement among the covering analysts in revising earnings estimates upward has resulted in meaningful improvement in consensus estimates for the next quarter and full year. Favorable Zacks Rank The promising estimate revisions have helped DocuSign earn a Zacks Rank #1 (Strong Buy).
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Investors might want to bet on DocuSign (DOCU), as earnings estimates for this company have been showing solid improvement lately. For DocuSign, strong agreement among the covering analysts in revising earnings estimates upward has resulted in meaningful improvement in consensus estimates for the next quarter and full year. Download FREE: How To Profit From Trillions On Spending For Infrastructure >> Want the latest recommendations from Zacks Investment Research?
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5a17ea56-e112-4790-982f-cf8d681315e4
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712027.0
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2023-12-13 00:00:00 UTC
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QIAGEN's (QGEN) Strategic Alliances Aid Amid Macro Woes
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DCOMP
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https://www.nasdaq.com/articles/qiagens-qgen-strategic-alliances-aid-amid-macro-woes
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nan
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nan
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QIAGEN’s QGEN business has been getting a boost from its growing molecular diagnostic market, international expansion, expanded test menu and growth-driving strategic collaborations. Yet, macroeconomic headwinds impede growth. The stock currently carries a Zacks Rank #3 (Hold).
QIAGEN is progressing well with its testing menu expansion strategy, which is driving the company’s growth. In October 2023, QIAGEN launched the QuantiFERON-EBV RUO (Research Use Only) assay. This new addition to the QuantiFERON portfolio of assays is designed to support research into EBV infection and EBV-related malignancies. It utilizes highly specific EBV antigens to stimulate a cell-mediated immune response, offering a dynamic view of the host’s active immune engagement with the virus.
In September 2023, QIAGEN added two new nucleic acid extraction kits, extending its eco-friendly QIAwave product line. The two new kits are the QIAwave RNeasy Plus Mini Kit and the QIAwave DNA/RNA Mini Kit, eco-friendlier versions of the RNeasy Plus Mini Kit and the All DNA/RNA Mini Kit.
QIAGEN’s long-term business strategy involves entering into strategic alliances as well as marketing and distribution arrangements with academic, corporate and other partners relating to the development, commercialization, marketing and distribution of certain of their existing and potential products.
In October 2023, QIAGEN and Myriad Genetics collaborated to develop companion diagnostic tests in the field of cancer. The partnership aims to deliver innovative services and products to pharmaceutical companies, enabling the development and commercialization of proprietary cancer tests for the U.S. clinical market and providing distributable companion diagnostic test kits for theglobal market
QIAGEN’s NGS portfolio has been witnessing double-digit revenue growth over the past few quarters. Management aims to expand the NGS platform by rapidly scaling up the new Enterprise Genomics Services. It is also working on the launch of a range of new proprietary Digital NGS technology-based gene panels within the GeneReader system. QIAGEN’s latest partnerships with NHS England and Element Biosciences are expected to add further growth momentum within the genomics business.
QIAGEN is one of the top three providers of human identification solutions, which have included sample preparation and PCR kits. The company is now leveraging this position as it expands into next-generation sequencing-based applications with the recent acquisition of Verogen in early 2023. The acquisition is offering new ways to solve cases and bring resolution to those affected.
QIAGEN N.V. Price
QIAGEN N.V. price | QIAGEN N.V. Quote
On the flip side, QIAGEN currently markets products in more than 100 countries. Its international operations are subject to a variety of risks arising from the economy, political outlook, language and cultural barriers in the countries it operates. In many of the emerging markets, QIAGEN faces several risks, which include economies that may be dependent on only a few products and are, therefore subject to significant fluctuations. Weak legal systems may affect its ability to enforce contractual rights and exchange controls. Unstable governments and privatization or other government actions may affect the flow of goods and currency.
In the quarter under review, overall sales declined 11% at CER due to difficult year-over-year comparisons. In the year-ago quarter, the company had witnessed strong COVID-19 sales.
QIAGEN records more than 50% of its revenues from the international market. As a result, it is highly exposed to the risk of foreign currency movement. The situation may worsen with the strengthening of the domestic currency against high-focus nations. Any unanticipated currency headwinds in high-focus markets may drag down the top and bottom lines further in the future.
Foreign currency transactions resulted in a net loss of $9.0 million and $4.1 million in 2021 and 2020, respectively.
Key Picks
Some better-ranked stocks in the broader medical space are Insulet PODD, Haemonetics HAE and DexCom DXCM. While Insulet presently sports a Zacks Rank #1 (Strong Buy), Haemonetics and DexCom each carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Estimates for Insulet’s 2023 earnings per share have increased from $1.61 to $1.90 in the past 30 days. Shares of the company have decreased 40.9% in the past year compared with the industry’s decline of 7%.
PODD’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 105.1%. In the last reported quarter, it delivered an average earnings surprise of 77.4%.
Haemonetics’ stock has risen 11.6% in the past year. Earnings estimates for Haemonetics have increased from $3.82 to $3.86 for 2023 and from $4.07 to $4.11 for 2024 in the past 30 days.
HAE’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 16.1%. In the last reported quarter, it posted an earnings surprise of 5.3%.
Estimates for DexCom’s 2023 earnings per share have increased from $1.23 to $1.41 in the past 30 days. Shares of the company have fallen 7.8% in the past year compared with the industry’s decline of 7.1%.
DXCM’s earnings surpassed estimates in the trailing four quarters, the average surprise being 36.4%. In the last reported quarter, it delivered an average earnings surprise of 47.1%.
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
Haemonetics Corporation (HAE) : Free Stock Analysis Report
DexCom, Inc. (DXCM) : Free Stock Analysis Report
QIAGEN N.V. (QGEN) : Free Stock Analysis Report
Insulet Corporation (PODD) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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QIAGEN’s QGEN business has been getting a boost from its growing molecular diagnostic market, international expansion, expanded test menu and growth-driving strategic collaborations. The partnership aims to deliver innovative services and products to pharmaceutical companies, enabling the development and commercialization of proprietary cancer tests for the U.S. clinical market and providing distributable companion diagnostic test kits for theglobal market QIAGEN’s NGS portfolio has been witnessing double-digit revenue growth over the past few quarters. 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.
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QIAGEN’s QGEN business has been getting a boost from its growing molecular diagnostic market, international expansion, expanded test menu and growth-driving strategic collaborations. The partnership aims to deliver innovative services and products to pharmaceutical companies, enabling the development and commercialization of proprietary cancer tests for the U.S. clinical market and providing distributable companion diagnostic test kits for theglobal market QIAGEN’s NGS portfolio has been witnessing double-digit revenue growth over the past few quarters. Click to get this free report Haemonetics Corporation (HAE) : Free Stock Analysis Report DexCom, Inc. (DXCM) : Free Stock Analysis Report QIAGEN N.V. (QGEN) : Free Stock Analysis Report Insulet Corporation (PODD) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The partnership aims to deliver innovative services and products to pharmaceutical companies, enabling the development and commercialization of proprietary cancer tests for the U.S. clinical market and providing distributable companion diagnostic test kits for theglobal market QIAGEN’s NGS portfolio has been witnessing double-digit revenue growth over the past few quarters. QIAGEN N.V. Price QIAGEN N.V. price | QIAGEN N.V. Quote On the flip side, QIAGEN currently markets products in more than 100 countries. Click to get this free report Haemonetics Corporation (HAE) : Free Stock Analysis Report DexCom, Inc. (DXCM) : Free Stock Analysis Report QIAGEN N.V. (QGEN) : Free Stock Analysis Report Insulet Corporation (PODD) : Free Stock Analysis Report To read this article on Zacks.com click here.
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In October 2023, QIAGEN launched the QuantiFERON-EBV RUO (Research Use Only) assay. The partnership aims to deliver innovative services and products to pharmaceutical companies, enabling the development and commercialization of proprietary cancer tests for the U.S. clinical market and providing distributable companion diagnostic test kits for theglobal market QIAGEN’s NGS portfolio has been witnessing double-digit revenue growth over the past few quarters. Download FREE: How To Profit From Trillions On Spending For Infrastructure >> Want the latest recommendations from Zacks Investment Research?
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f81ffbfd-4387-4a42-982e-d9c2a6779877
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712028.0
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2023-12-13 00:00:00 UTC
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Terumo (TRUMY) Launches AZUR HydroPack in Embolotherapy Space
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DCOMP
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https://www.nasdaq.com/articles/terumo-trumy-launches-azur-hydropack-in-embolotherapy-space
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nan
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nan
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Terumo Medical Corporation (TRUMY) recently unveiled its AZUR HydroPack Peripheral Coil System in the United States. This marks significant progress in terms of the company's global presence as a leading player in embolotherapy solutions.
The coil system boasts a soft, universal-shaped platinum and hydrogel composition, which distinguishes it prominently in the peripheral coil market.
Advanced Hydrogel Technology
The AZUR HydroPack’s hydrogel technology creates a gel core that promotes new tissue growth, a departure from traditional platinum coils. This unique feature enhances efficiency and minimizes reperfusion, thus advancing patient outcomes.
According to Terumo, the coil's versatility and efficiency provide interventional radiologists and vascular surgeons with an ideal solution for diverse peripheral embolization procedures. With a .018" primary wind and lengths ranging from 5 to 60 cm, it is currently the longest gel core on the market, offering flexible sizing options. According to the company, the soft coil design paired with an enhanced pusher enables ease of delivery, optimized trackability and microcatheter stability.
Image Source: Zacks Investment Research
A Superior Solution
As the market for peripheral coil embolization expands, Terumo's AZUR HydroPack stands out with its advanced design and compatibility with microcatheters. The absence of vessel-diameter sizing requirements, except for the placement of an anchor coil, reduces inventory needs.
The AZUR HydroPack complements Terumo's embolotherapy portfolio, seamlessly fitting in with the AZUR CX Peripheral Coil System and AZUR Framing Coil System.
Market Prospects
Going by a report from Exactitude Consultancy, the embolotherapy market size is set to witness a CAGR of 8.1% from 2023 to 2030. As chronic diseases are becoming more prevalent, the market is expanding, driven by increased incidences of liver cancer and hepatocellular carcinoma. Factors such as the demand for minimally invasive procedures, higher disposable incomes and advanced technological breakthroughs contribute to market growth.
Share Price Performance
Shares of TRUMY have risen 10% in the past year against the industry’s 7.4% decline.
Zacks Rank and Key Picks
Terumo carries a Zacks Rank #4 (Sell) currently.
Some better-ranked stocks in the broader medical space are Insulet (PODD), Haemonetics (HAE) and DexCom (DXCM). While Insulet presently sports a Zacks Rank #1 (Strong Buy), Haemonetics and DexCom each carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Estimates for Insulet’s 2023 earnings per share have increased from $1.61 to $1.90 in the past 30 days. Shares of the company have decreased 40.9% in the past year compared with the industry’s decline of 7%.
PODD’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 105.1%. In the last reported quarter, it delivered an average earnings surprise of 77.4%.
Haemonetics’ stock has risen 11.6% in the past year. Earnings estimates for Haemonetics have increased from $3.82 to $3.86 for 2023 and from $4.07 to $4.11 for 2024 in the past 30 days.
HAE’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 16.1%. In the last reported quarter, it posted an earnings surprise of 5.3%.
Estimates for DexCom’s 2023 earnings per share have increased from $1.23 to $1.41 in the past 30 days. Shares of the company have fallen 7.8% in the past year compared with the industry’s decline of 7.1%.
DXCM’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 36.4%. In the last reported quarter, it delivered an average earnings surprise of 47.1%.
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
Haemonetics Corporation (HAE) : Free Stock Analysis Report
DexCom, Inc. (DXCM) : Free Stock Analysis Report
Insulet Corporation (PODD) : Free Stock Analysis Report
Terumo Corp. (TRUMY) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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According to Terumo, the coil's versatility and efficiency provide interventional radiologists and vascular surgeons with an ideal solution for diverse peripheral embolization procedures. Image Source: Zacks Investment Research A Superior Solution As the market for peripheral coil embolization expands, Terumo's AZUR HydroPack stands out with its advanced design and compatibility with microcatheters. 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.
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Terumo Medical Corporation (TRUMY) recently unveiled its AZUR HydroPack Peripheral Coil System in the United States. Image Source: Zacks Investment Research A Superior Solution As the market for peripheral coil embolization expands, Terumo's AZUR HydroPack stands out with its advanced design and compatibility with microcatheters. Click to get this free report Haemonetics Corporation (HAE) : Free Stock Analysis Report DexCom, Inc. (DXCM) : Free Stock Analysis Report Insulet Corporation (PODD) : Free Stock Analysis Report Terumo Corp. (TRUMY) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Image Source: Zacks Investment Research A Superior Solution As the market for peripheral coil embolization expands, Terumo's AZUR HydroPack stands out with its advanced design and compatibility with microcatheters. The AZUR HydroPack complements Terumo's embolotherapy portfolio, seamlessly fitting in with the AZUR CX Peripheral Coil System and AZUR Framing Coil System. Click to get this free report Haemonetics Corporation (HAE) : Free Stock Analysis Report DexCom, Inc. (DXCM) : Free Stock Analysis Report Insulet Corporation (PODD) : Free Stock Analysis Report Terumo Corp. (TRUMY) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Advanced Hydrogel Technology The AZUR HydroPack’s hydrogel technology creates a gel core that promotes new tissue growth, a departure from traditional platinum coils. Image Source: Zacks Investment Research A Superior Solution As the market for peripheral coil embolization expands, Terumo's AZUR HydroPack stands out with its advanced design and compatibility with microcatheters. Download FREE: How To Profit From Trillions On Spending For Infrastructure >> Want the latest recommendations from Zacks Investment Research?
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aef562d7-8877-4964-9321-d08e05456bf3
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712029.0
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2023-12-13 00:00:00 UTC
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Nokia (NOK) Trims Operating Margin Guidance, Revises Strategy
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DCOMP
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https://www.nasdaq.com/articles/nokia-nok-trims-operating-margin-guidance-revises-strategy
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nan
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nan
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Nokia Corporation NOK has released updated guidance with a revised operating margin outlook for fiscal 2026. The company also provided insights into its modified approach to business operations and preliminary assumptions for fiscal 2024.
Nokia’s business segments cater to distinct customer bases, each with unique research and development requirements, market fluctuations and different target margins. Moving forward, it has decided to grant more autonomy to its business verticals regarding investment decisions, growth strategies, portfolio management and strategic partnerships. Along with streamlining the operating model, Nokia will also disclose the cash flow and regional sales figures for each business group. This greater transparency will likely provide investors with enhanced clarity regarding each segment's financial performance.
The Mobile Network segment is witnessing a declining trend in 2023, and management anticipates that the market environment will likely remain unfavorable in this segment in the near future. AT&T’s decision to replace Nokia with a single vendor in the form of Ericsson is expected to have a negative impact on the top line. The slowdown in 5G deployment in India is also a concern.
Consequently, the operating margin is estimated to be in the low single digits in 2024. However, the company is taking various initiatives to boost resilience in its operations and improve profitability. It is also aiming to capitalize on fast-growing markets such as Cloud RAN, O-RAN, Enterprise and defense. In Mobile Networks, Nokia is optimistic about returning to faster-than-market growth in 2026, with a comparable operating margin range of 6-9%.
In 2024, the company is expecting mid-single-digit net sales growth (at constant currency) with steady operating profit in the Nokia Infrastructure segment. The positive momentum is supported by robust performance in optical networks and secured enterprise contracts in IP networks. Influx of government funding in the second half of 2024 will likely induce a recovery in the fixed networks. Backed by these positive factors, the Network Infrastructure division is expected to achieve an operating margin ranging from 12% to 15% by fiscal 2026.
In 2024, Nokia expects modest revenue growth in the Cloud and Network services, supported by the steady deployment of 5G core technology and strength in the enterprise sector. The company is focusing on integrating SaaS and Network as Code to bolster its business model. A strong focus on digital operations, private wireless, AI and analytics, security and 5G core will likely boost prospects.
The company has registered faster-than-market growth in these segments in recent periods and is aiming to sustain this favorable trend. In Cloud and Network services, a stable to slightly increasing operating margin is projected for 2024, with a comparable operating margin estimated in the range of 7-10% for fiscal 2026.
Nokia Technologies has secured long-term patent license agreements with major smartphone players like Apple and Samsung. The company is also extending its business presence into automotive, multimedia and consumer electronics. Nonetheless, the primary focus remains on resolving outstanding litigation issues with smartphone clients. Operating profit from this segment will likely exceed EUR 1 billion in 2024 upon the successful settlement of the litigation issue by the end of 2023. In 2026, management is expecting a comparable operating profit of more than EUR 1.1 billion.
For 2026, Nokia reduced its overall comparable operating margin target to at least 13% from the prior estimation of at least 14%. Weakness in the Mobile Networks vertical is expected to have a negative impact on operating profit. However, the company reiterated its revenue guidance, which is expected to grow faster than the market in 2026. The outlook for free cash flow is also kept unchanged and is expected at 55-85% conversion from comparable operating profit.
NOK aims to create new business and licensing opportunities in the consumer ecosystem. It facilitates its customers to move away from an economy-of-scale network operating model to demand-driven operations by offering easy programmability and flexible automation needed to support dynamic operations, reduce complexity and improve efficiency. It seeks to expand its business into targeted, high-growth and high-margin vertical markets to address growth opportunities beyond its traditional primary markets.
The stock has declined 36.3% in the past year against the industry’s growth of 0.1%.
Image Source: Zacks Investment Research
Nokia currently has a Zacks Rank #4 (Sell).
Stocks to Consider
Model N Inc MODN, carrying a Zacks Rank #2 (Buy) at present, delivered an earnings surprise of 20.78%, on average, in the trailing four quarters. In the last reported quarter, it pulled off an earnings surprise of 3.33%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
MODN provides revenue management solutions for life sciences and technology companies, including applications for configuration, price, quote, rebate management and regulatory compliance.
NVIDIA Corporation NVDA, currently carrying a Zacks Rank #2, delivered an earnings surprise of 18.99%, on average, in the trailing four quarters. In the last reported quarter, it pulled off an earnings surprise of 19.64%.
NVIDIA is the worldwide leader in visual computing technologies and the inventor of the graphic processing unit. Over the years, the company’s focus evolved from PC graphics to AI-based solutions that support high-performance computing, gaming and virtual reality platforms.
Arista Networks, Inc. ANET, carrying a Zacks Rank #2, is likely to benefit from strong momentum and diversification across its top verticals and product lines. The company has a software-driven, data-centric approach to help customers build their cloud architecture and enhance their cloud experience. Arista has delivered an earnings surprise of 12%, on average, in the trailing four quarters.
ANET holds a leadership position in 100-gigabit Ethernet switching share in port for the high-speed data center segment. Arista is gaining market traction in 200- and 400-gigabit high-performance switching products and is well-positioned for healthy growth in the data-driven cloud networking business with proactive platforms and predictive operations.
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
Nokia Corporation (NOK) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Model N, Inc. (MODN) : Free Stock Analysis Report
Arista Networks, Inc. (ANET) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Nokia’s business segments cater to distinct customer bases, each with unique research and development requirements, market fluctuations and different target margins. In 2024, Nokia expects modest revenue growth in the Cloud and Network services, supported by the steady deployment of 5G core technology and strength in the enterprise sector. Arista is gaining market traction in 200- and 400-gigabit high-performance switching products and is well-positioned for healthy growth in the data-driven cloud networking business with proactive platforms and predictive operations.
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In 2024, Nokia expects modest revenue growth in the Cloud and Network services, supported by the steady deployment of 5G core technology and strength in the enterprise sector. NVIDIA Corporation NVDA, currently carrying a Zacks Rank #2, delivered an earnings surprise of 18.99%, on average, in the trailing four quarters. Click to get this free report Nokia Corporation (NOK) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Model N, Inc. (MODN) : Free Stock Analysis Report Arista Networks, Inc. (ANET) : Free Stock Analysis Report To read this article on Zacks.com click here.
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In Cloud and Network services, a stable to slightly increasing operating margin is projected for 2024, with a comparable operating margin estimated in the range of 7-10% for fiscal 2026. It facilitates its customers to move away from an economy-of-scale network operating model to demand-driven operations by offering easy programmability and flexible automation needed to support dynamic operations, reduce complexity and improve efficiency. Click to get this free report Nokia Corporation (NOK) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Model N, Inc. (MODN) : Free Stock Analysis Report Arista Networks, Inc. (ANET) : Free Stock Analysis Report To read this article on Zacks.com click here.
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In 2024, the company is expecting mid-single-digit net sales growth (at constant currency) with steady operating profit in the Nokia Infrastructure segment. In 2026, management is expecting a comparable operating profit of more than EUR 1.1 billion. Download FREE: How To Profit From Trillions On Spending For Infrastructure >> Want the latest recommendations from Zacks Investment Research?
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2023-12-13 00:00:00 UTC
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LifeMD Agrees To Partner With Medifast For Weight Management Solutions, LifeMD Up In Pre-market
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https://www.nasdaq.com/articles/lifemd-agrees-to-partner-with-medifast-for-weight-management-solutions-lifemd-up-in-pre
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(RTTNews) - LifeMD, Inc. (LFMD), a provider of virtual primary care services, Wednesday announced an alliance with Medifast (MED), a health and wellness company known for its habit-based and coach-guided lifestyle solution OPTAVIA.
Following this news, LifeMD shares are trading at $9.60, up 18.52% in pre-market on the Nasdaq.
Under the agreement terms, Medifast will use LifeMD's virtual platform to provide OPTAVIA Clients access to a clinically supported weight management program, including GLP-1 medications.
On the other hand, LifeMD will offer its patients an independent OPTAVIA Coach and other lifestyle support services as part of its weight management program.
This partnership is expected to establish LifeMD in a market that is projected to reach $100 billion by 2030, according to research by Morgan Stanley.
Further, Medifast has invested $20 million into LifeMD, comprising of $10 million in contributions to support the collaboration and another $10 million into the purchase of LifeMD's common stock.
The two companies agreed to partner after the success of their pilot program. According to a recent Medifast-commissioned survey, over 40 percent of consumers with a BMI greater than 27 are interested in prescription weight-loss medication, with even higher interest among those needing to lose more than 35 pounds.
"Together, Medifast and LifeMD expect to offer a comprehensive health offering starting with weight management, built around a powerful model of support that includes an independent OPTAVIA Coach and a board-certified affiliated clinician," commented Dan Chard, Chairman and CEO of Medifast.
In pre-market activity, Medifast shares are trading at $77.03, up 2.15% on the New York Stock Exchange.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - LifeMD, Inc. (LFMD), a provider of virtual primary care services, Wednesday announced an alliance with Medifast (MED), a health and wellness company known for its habit-based and coach-guided lifestyle solution OPTAVIA. Under the agreement terms, Medifast will use LifeMD's virtual platform to provide OPTAVIA Clients access to a clinically supported weight management program, including GLP-1 medications. On the other hand, LifeMD will offer its patients an independent OPTAVIA Coach and other lifestyle support services as part of its weight management program.
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Under the agreement terms, Medifast will use LifeMD's virtual platform to provide OPTAVIA Clients access to a clinically supported weight management program, including GLP-1 medications. On the other hand, LifeMD will offer its patients an independent OPTAVIA Coach and other lifestyle support services as part of its weight management program. "Together, Medifast and LifeMD expect to offer a comprehensive health offering starting with weight management, built around a powerful model of support that includes an independent OPTAVIA Coach and a board-certified affiliated clinician," commented Dan Chard, Chairman and CEO of Medifast.
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Under the agreement terms, Medifast will use LifeMD's virtual platform to provide OPTAVIA Clients access to a clinically supported weight management program, including GLP-1 medications. Further, Medifast has invested $20 million into LifeMD, comprising of $10 million in contributions to support the collaboration and another $10 million into the purchase of LifeMD's common stock. "Together, Medifast and LifeMD expect to offer a comprehensive health offering starting with weight management, built around a powerful model of support that includes an independent OPTAVIA Coach and a board-certified affiliated clinician," commented Dan Chard, Chairman and CEO of Medifast.
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Following this news, LifeMD shares are trading at $9.60, up 18.52% in pre-market on the Nasdaq. Under the agreement terms, Medifast will use LifeMD's virtual platform to provide OPTAVIA Clients access to a clinically supported weight management program, including GLP-1 medications. On the other hand, LifeMD will offer its patients an independent OPTAVIA Coach and other lifestyle support services as part of its weight management program.
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712031.0
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2023-12-13 00:00:00 UTC
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This Hot REIT Stock Still Has 20% Upside, According to 1 Wall Street Analyst
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https://www.nasdaq.com/articles/this-hot-reit-stock-still-has-20-upside-according-to-1-wall-street-analyst
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One real estate investment trust (REIT) stock is gaining attention on Wall Street. That may be because it has soared nearly 20% since the end of October. Yet one Wall Street analyst thinks Realty Income (NYSE: O) shares could have another 20% left to run.
Shares of the REIT are rebounding from a decline earlier this fall that brought the stock to its lowest level in nearly four years. But Realty Income subsequently announced two investments that helped spur Wolfe Research analyst Andrew Rosivach to upgrade the stock last week to a price target of $66 per share. That represents a 20% gain from the recent price. Additionally, Exane BNP Paribas analyst Nate Crossett also just upgraded Realty Income and put a $63 price target on the stock.
Growing and diversifying
One catalyst of the recent decline in Realty shares was its announcement on Oct. 30 that it was acquiring fellow REIT Spirit Realty Capital in an all-stock transaction valued at about $9.3 billion. Those assets will compliment Realty's existing portfolio by adding more industrial properties and more geographic diversity.
Two weeks later, Realty announced a new joint venture with Digital Realty for data center development. Realty will hold an 80% equity interest in that venture. Realty management has been working to add more diverse properties as it grows. Earlier this year, the company announced its first investment in a large Las Vegas casino property, too.
A dividend stock to own
The company expects these growth initiatives will allow it to continue to increase its consistently rising dividend. Shareholders have long enjoyed a monthly dividend payment from Realty Income that has consistently increased for decades. Just yesterday, the company announced its 123rd dividend increase since 1994. The REIT yields about 5.5% at the recent stock price.
Wall Street is taking notice that the share price drop has presented investors with an opportunity to potentially see capital gains along with a steady, and growing, income stream. Investors who are paying attention should be taking advantage of that opportunity.
Should you invest $1,000 in Realty Income right now?
Before you buy stock in Realty Income, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Realty Income 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
Howard Smith has positions in Realty Income. The Motley Fool has positions in and recommends Digital Realty Trust and Realty Income. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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But Realty Income subsequently announced two investments that helped spur Wolfe Research analyst Andrew Rosivach to upgrade the stock last week to a price target of $66 per share. Additionally, Exane BNP Paribas analyst Nate Crossett also just upgraded Realty Income and put a $63 price target on the stock. Wall Street is taking notice that the share price drop has presented investors with an opportunity to potentially see capital gains along with a steady, and growing, income stream.
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One real estate investment trust (REIT) stock is gaining attention on Wall Street. Before you buy stock in Realty Income, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Realty Income wasn't one of them. The Motley Fool has positions in and recommends Digital Realty Trust and Realty Income.
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But Realty Income subsequently announced two investments that helped spur Wolfe Research analyst Andrew Rosivach to upgrade the stock last week to a price target of $66 per share. Before you buy stock in Realty Income, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Realty Income wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Howard Smith has positions in Realty Income.
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One real estate investment trust (REIT) stock is gaining attention on Wall Street. Wall Street is taking notice that the share price drop has presented investors with an opportunity to potentially see capital gains along with a steady, and growing, income stream. Before you buy stock in Realty Income, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Realty Income wasn't one of them.
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712032.0
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2023-12-13 00:00:00 UTC
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Why Pfizer Stock Is Sinking Today
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https://www.nasdaq.com/articles/why-pfizer-stock-is-sinking-today-1
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Shares of Pfizer (NYSE: PFE) were sinking 8.3% lower as of 11:25 a.m. ET on Wednesday. The sharp sell-off came after the drugmaker provided its guidance for full-year 2024.
Pfizer expects 2024 revenue of between $58.5 billion and $61.5 billion. This range includes a contribution of around $3.1 billion from the company's pending acquisition of Seagen. It reflects little to no year-over-year growth from Pfizer, which is on track to generate revenue of $58 billion to $61 billion in 2023.
The pharma giant also projects adjusted diluted earnings per share (EPS) of between $2.05 and $2.25 in 2024, again including the expected impact of the Seagen acquisition. Pfizer anticipates delivering adjusted diluted EPS of $1.45 to $1.65 in full-year 2023.
Why is Pfizer's 2024 outlook so weak?
Pfizer continues to experience a steep decline in sales for COVID-19 vaccine Comirnaty and antiviral drug Paxlovid. The company expects combined sales for the two products in 2024 will total only $8 billion, down from a projected $12.5 billion this year.
If the negative impact of its COVID-19 products is factored out, Pfizer's year-over-year operational revenue growth in 2024 should be between 8% and 10%. However, investors can't ignore the big hole that the slumping demand for Comirnaty and Paxlovid is causing.
Is Pfizer stock a buy on the pullback?
It's possible that we could see analyst downgrades for Pfizer after its disappointing 2024 guidance. However, some on Wall Street think the drugmaker's valuation is too compelling to pass up.
My view is that Pfizer isn't likely to rebound until it beats quarterly earnings estimates. When that might happen is anyone's guess. I think, though, that the stock should be attractive to income investors with its dividend yield now close to 6.3%. I also expect that Pfizer will return to solid growth once it moves past the challenging year-over-year comparisons for its COVID-19 products.
This stock isn't one to buy on the pullback for investors with a short-term focus. For those with a long-term perspective who are seeking juicy dividends, however, buying Pfizer after today's sell-off could be a smart move.
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
Keith Speights has positions in Pfizer. The Motley Fool has positions in and recommends Pfizer. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The pharma giant also projects adjusted diluted earnings per share (EPS) of between $2.05 and $2.25 in 2024, again including the expected impact of the Seagen acquisition. Pfizer continues to experience a steep decline in sales for COVID-19 vaccine Comirnaty and antiviral drug Paxlovid. I also expect that Pfizer will return to solid growth once it moves past the challenging year-over-year comparisons for its COVID-19 products.
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The pharma giant also projects adjusted diluted earnings per share (EPS) of between $2.05 and $2.25 in 2024, again including the expected impact of the Seagen acquisition. 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 Keith Speights has positions in Pfizer.
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Pfizer expects 2024 revenue of between $58.5 billion and $61.5 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. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Keith Speights has positions in Pfizer.
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The sharp sell-off came after the drugmaker provided its guidance for full-year 2024. The pharma giant also projects adjusted diluted earnings per share (EPS) of between $2.05 and $2.25 in 2024, again including the expected impact of the Seagen acquisition. 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.
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a2c4f8cd-e008-445e-8163-683a2bb20805
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712033.0
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2023-12-13 00:00:00 UTC
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Costco (COST) to Post Q1 Earnings: A Look at Comps Dynamics
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https://www.nasdaq.com/articles/costco-cost-to-post-q1-earnings%3A-a-look-at-comps-dynamics
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Market watchers are eagerly awaiting Costco Wholesale Corporation’s COST first-quarter fiscal 2024 results, scheduled to be reported on Dec 14 after the closing bell. This time too, investors’ focus will be on comparable store sales, the key metric to gauge the company’s performance.
Insights Into Comparable Sales
Before delving into the first quarter of fiscal 2024, let's revisit the fourth quarter of fiscal 2023.
In the last reported quarter, Costco's comparable sales performance displayed a diverse picture across regions. The United States witnessed a slight increase of 0.2% in comparable sales, while Canada experienced an increase of 1.8%. Costco's performance in Other International locations was robust, with a significant increase of 5.5%. Overall, the company managed to achieve modest growth of 1.1% in comparable sales.
Worldwide, there was a 5.2% increase in shopping frequency, with a 5% rise observed in the United States. In contrast, the average transaction or ticket size experienced a decrease of 3.9% globally and 4.5% in the United States.
As we turn our attention to the first quarter, it's important to consider the various factors influencing Costco's performance, such as consumer spending patterns, inflation trends, and ongoing strategic initiatives. Additionally, strong renewal rates and membership growth are likely to have contributed to sales.
For the quarter in focus, we anticipate an impressive 5.5% jump in net sales and a 5.2% increase in total membership fees. Costco's paid membership base has been witnessing a steady rise, driven by a growing customer base and remarkable renewal rates. We also project 4.1% growth in comparable sales for the first quarter.
A customer-centric approach, strategic pricing, merchandise initiatives and emphasis on memberships are likely to have contributed to Costco’s overall performance. We expect membership growth of 5.5% in the first quarter.
Costco Wholesale Corporation Price, Consensus and EPS Surprise
Costco Wholesale Corporation price-consensus-eps-surprise-chart | Costco Wholesale Corporation Quote
How Are Estimates Shaping Up?
The Zacks Consensus Estimate for revenues is pegged at $57.62 billion, indicating growth of 5.8% from the prior-year reported figure. The consensus mark for earnings per share has risen by a penny to $3.44 over the past 30 days. The figure suggests an increase of 11% from the year-ago period.
Our proven model predicts an earnings beat for Costco this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is the case here.
Costco has an Earnings ESP of +1.40% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
3 Other Stocks With the Favorable Combination
Here are three companies you may want to consider, as our model shows that these also have the right combination of elements to post an earnings beat:
Dollar Tree DLTR currently has an Earnings ESP of +0.25% and a Zacks Rank #3. The company is likely to register a bottom-line increase when it reports fourth-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for the quarterly earnings per share of $2.65 suggests an increase from $2.04 reported in the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
Dollar Tree’s top line is expected to increase year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $8.67 billion, which indicates a rise of 12.4% from the figure reported in the prior-year quarter.
Ross Stores ROST currently has an Earnings ESP of +0.14% and a Zacks Rank #3. The company is likely to register a bottom-line increase when it reports fourth-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for the quarterly earnings per share of $1.62 suggests an increase of 23.7% from the year-ago quarter.
Ross Stores’ top line is expected to ascend year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $5.75 billion, which indicates an increase of 10.2% from the figure reported in the prior-year quarter. Ross Stores has a trailing four-quarter earnings surprise of 7.8%, on average.
Target TGT currently has an Earnings ESP of +0.37% and a Zacks Rank #3. The company is likely to register a bottom-line increase when it reports fourth-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for the quarterly earnings per share of $2.38 suggests an increase of 25.9% from the year-ago quarter.
Target’s top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $31.88 billion, which indicates an increase of 1.6% from the figure reported in the prior-year quarter. Target has a trailing four-quarter earnings surprise of 30.8%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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
Target Corporation (TGT) : Free Stock Analysis Report
Dollar Tree, Inc. (DLTR) : Free Stock Analysis Report
Costco Wholesale Corporation (COST) : Free Stock Analysis Report
Ross Stores, Inc. (ROST) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Market watchers are eagerly awaiting Costco Wholesale Corporation’s COST first-quarter fiscal 2024 results, scheduled to be reported on Dec 14 after the closing bell. As we turn our attention to the first quarter, it's important to consider the various factors influencing Costco's performance, such as consumer spending patterns, inflation trends, and ongoing strategic initiatives. 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.
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Costco Wholesale Corporation Price, Consensus and EPS Surprise Costco Wholesale Corporation price-consensus-eps-surprise-chart | Costco Wholesale Corporation Quote How Are Estimates Shaping Up? The Zacks Consensus Estimate for the quarterly earnings per share of $2.65 suggests an increase from $2.04 reported in the year-ago quarter. Click to get this free report Target Corporation (TGT) : Free Stock Analysis Report Dollar Tree, Inc. (DLTR) : Free Stock Analysis Report Costco Wholesale Corporation (COST) : Free Stock Analysis Report Ross Stores, Inc. (ROST) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The Zacks Consensus Estimate for the quarterly earnings per share of $2.65 suggests an increase from $2.04 reported in the year-ago quarter. The Zacks Consensus Estimate for the quarterly earnings per share of $1.62 suggests an increase of 23.7% from the year-ago quarter. Click to get this free report Target Corporation (TGT) : Free Stock Analysis Report Dollar Tree, Inc. (DLTR) : Free Stock Analysis Report Costco Wholesale Corporation (COST) : Free Stock Analysis Report Ross Stores, Inc. (ROST) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Insights Into Comparable Sales Before delving into the first quarter of fiscal 2024, let's revisit the fourth quarter of fiscal 2023. We expect membership growth of 5.5% in the first quarter. Download FREE: How To Profit From Trillions On Spending For Infrastructure >> Want the latest recommendations from Zacks Investment Research?
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2023-12-13 00:00:00 UTC
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US STOCKS-Wall St edges up on cooling inflation, focus on Fed verdict
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https://www.nasdaq.com/articles/us-stocks-wall-st-edges-up-on-cooling-inflation-focus-on-fed-verdict
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For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
Pfizer at 10-yr low after bleak 2024 revenue forecast
Tesla down, to lose consumer tax credits on some models
US Nov PPI softer than expected
Fed monetary policy verdict due at 2:00 p.m. ET
Indexes up: Dow 0.05%, S&P 0.16%, Nasdaq 0.14%
Updated at 11:34 a.m. ET/ 1634 GMT
By Shristi Achar A and Johann M Cherian
Dec 13 (Reuters) - Wall Street's main indexes gained on Wednesday afternew data indicated inflation pressures were easing, ahead of the Federal Reserve's final monetary policy decision of the year, where it is widely expected to leave interest rates unchanged.
The Labor Department's report showed the Producer Price Index (PPI) for final demand rose 0.9% on an annual basis in November. Economists polled by Reuters had estimated a 1% advance.
On a month-on-month basis, producer prices were unchanged, against an estimated 0.1% increase.
The recent slew of reports, including the consumer price index (CPI) data on Tuesday, have cemented expectations that interest rates have peaked, with traders also estimating potential rate cuts next year.
All eyes are now on the central bank's interest-rate decision at the end of its two-day meeting, due at 2:00 p.m. ET.
Focus will also be on Fed Chair Jerome Powell's comments after the policy announcement and the release of the "dot plot", which could provide a glimpse into monetary policy trajectory.
"We don't think they (Federal Reserve) will go from a tightening bias to an easing bias," said Jim Smigiel, chief investment officer at SEI Investments.
"There would have to be a few meetings in between where Chair Powell would want to get the message across that they are now neutral, and we haven't really seen that yet."
Money markets have almost fully priced in the Fed holding rates at the current level of 5.25% to 5.50% later in the day. Traders now see a possible monetary easing next year, estimating a nearly 78% chance of at least a 25-basis-point rate cut in May 2024, according to the CME's FedWatch tool.
Meanwhile, nearly $5 trillion in U.S. stock options are due to expire on Friday, set to be the largest on record, which strategists said is likely to keep market volatility in check.
PfizerPFE.N dropped 9.6% to a 10-year low, after the drugmaker forecast 2024 revenue below Wall Street's expectations.
However, the health sector .SPXHC gained 0.4% overall, buoyed by a 9.7% rise in Vertex PharmaceuticalsVRTX.O, after the drugmaker's nerve-pain treatment succeeded in a mid-stage trial.
TeslaTSLA.Ofell 3.2% as the automaker will lose up to $7,500 in federal tax credits for some Model 3 vehicles. It also said it would recall more than two million vehicles in the U.S. fitted with its Autopilot system.
Among other stocks, Southwest AirlinesLUV.N slid 5.8% after the carrier raised its forecast for fourth-quarter fuel costs.
Advancing issues outnumbered decliners by a 1.36-to-1 ratio on the NYSE and by a 1.14-to-1 ratio on the Nasdaq.
The S&P index recorded 56 new 52-week highs and one new low, while the Nasdaq recorded 91 new highs and 108 new lows.
Inflation gauges https://tmsnrt.rs/3RBw4LD
(Reporting by Shristi Achar A and Johann M Cherian in Bengaluru; Editing by Pooja Desai)
((Shristi.AcharA@thomsonreuters.com https://twitter.com/ShristiAchar;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Pfizer at 10-yr low after bleak 2024 revenue forecast Tesla down, to lose consumer tax credits on some models US Nov PPI softer than expected Fed monetary policy verdict due at 2:00 p.m. ET Indexes up: Dow 0.05%, S&P 0.16%, Nasdaq 0.14% Updated at 11:34 a.m. ET/ 1634 GMT By Shristi Achar A and Johann M Cherian Dec 13 (Reuters) - Wall Street's main indexes gained on Wednesday afternew data indicated inflation pressures were easing, ahead of the Federal Reserve's final monetary policy decision of the year, where it is widely expected to leave interest rates unchanged. The Labor Department's report showed the Producer Price Index (PPI) for final demand rose 0.9% on an annual basis in November.
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Pfizer at 10-yr low after bleak 2024 revenue forecast Tesla down, to lose consumer tax credits on some models US Nov PPI softer than expected Fed monetary policy verdict due at 2:00 p.m. ET Indexes up: Dow 0.05%, S&P 0.16%, Nasdaq 0.14% Updated at 11:34 a.m. ET/ 1634 GMT By Shristi Achar A and Johann M Cherian Dec 13 (Reuters) - Wall Street's main indexes gained on Wednesday afternew data indicated inflation pressures were easing, ahead of the Federal Reserve's final monetary policy decision of the year, where it is widely expected to leave interest rates unchanged. PfizerPFE.N dropped 9.6% to a 10-year low, after the drugmaker forecast 2024 revenue below Wall Street's expectations.
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Pfizer at 10-yr low after bleak 2024 revenue forecast Tesla down, to lose consumer tax credits on some models US Nov PPI softer than expected Fed monetary policy verdict due at 2:00 p.m. ET Indexes up: Dow 0.05%, S&P 0.16%, Nasdaq 0.14% Updated at 11:34 a.m. ET/ 1634 GMT By Shristi Achar A and Johann M Cherian Dec 13 (Reuters) - Wall Street's main indexes gained on Wednesday afternew data indicated inflation pressures were easing, ahead of the Federal Reserve's final monetary policy decision of the year, where it is widely expected to leave interest rates unchanged. The recent slew of reports, including the consumer price index (CPI) data on Tuesday, have cemented expectations that interest rates have peaked, with traders also estimating potential rate cuts next year.
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ET Indexes up: Dow 0.05%, S&P 0.16%, Nasdaq 0.14% Updated at 11:34 a.m. ET/ 1634 GMT By Shristi Achar A and Johann M Cherian Dec 13 (Reuters) - Wall Street's main indexes gained on Wednesday afternew data indicated inflation pressures were easing, ahead of the Federal Reserve's final monetary policy decision of the year, where it is widely expected to leave interest rates unchanged. The recent slew of reports, including the consumer price index (CPI) data on Tuesday, have cemented expectations that interest rates have peaked, with traders also estimating potential rate cuts next year. "There would have to be a few meetings in between where Chair Powell would want to get the message across that they are now neutral, and we haven't really seen that yet."
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712035.0
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2023-12-13 00:00:00 UTC
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History Says the Nasdaq Could Jump 21% in 2024, and Here's the Growth Stock to Buy Now
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DCOMP
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https://www.nasdaq.com/articles/history-says-the-nasdaq-could-jump-21-in-2024-and-heres-the-growth-stock-to-buy-now
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nan
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When the Nasdaq-100 technology index plunged 33% (and into bear territory) in 2022, historical data pointed to a strong recovery in 2023. See, since the inception of the index 37 years ago, it has only fallen in consecutive years on one occasion: during the dot-com crash between 2000 and 2002.
True to form, the Nasdaq-100 has bounced back with a whopping 47% gain this year. But investors will be pleased to know that bodes very well for 2024. In fact, rebound years like 2023 have always been followed by another positive year.
There have been four such occurrences since 1986, and they delivered an average gain of 21.5%. That's the return investors could enjoy if history repeats.
Falling interest rates could send the market soaring in 2024
Consumers have been under pressure from elevated inflation and rising interest rates for the last two years. The U.S. Federal Reserve hiked rates at the fastest pace in its history between March 2022 and August 2023, sending the federal funds rate from a historic low of 0.25% to 5.50%.
Tech giant Amazon (NASDAQ: AMZN) has felt the pinch, because despite its heavily diversified business spanning cloud computing, streaming services, and digital advertising, e-commerce (retail) is still its largest source of revenue.
But the tide might be turning. Experts predict the Fed will cut interest rates five times in 2024, which will bring welcome relief to consumers across America. But that isn't the only reason to get excited about Amazon stock. Here's why it could be one of the best buys for the new year.
Image source: Getty Images.
Amazon's e-commerce segment could roar back to life in 2024
Amazon generated $220 billion in online sales during 2022, which was a drop of 1% compared to the prior year. But 2023 has been more positive as the pace of rate hikes slowed and more certainty crept into consumer households.
Through the first nine months of the year, Amazon's online sales have ticked up by 3.8%. While it seems like a modest increase, growth has accelerated in every quarter so far and hit 6% in Q3 (ended Sept. 30).
That acceleration bodes well heading into a new year with interest rate cuts on the horizon, because consumers will likely feel more confident about spending. But that isn't the only reason Amazon could do well in 2024; the company has also improved its processes to make its e-commerce business more efficient.
Earlier this year, Amazon split its U.S. national fulfillment network into eight regions. These regional clusters will hold more local inventory and streamline logistics so goods travel shorter distances to reach customers. The changes have already led to the fastest delivery times in Amazon's history, and the company believes this will lead to more sales. Plus, the increases in efficiency could save Amazon money over the long term.
Amazon is emerging as a leader in artificial intelligence
Amazon has spent much of 2023 focusing on artificial intelligence (AI), which could be one of its greatest financial opportunities ever. Most of the company's investments in AI are handled by its cloud computing division, Amazon Web Services (AWS), which manages the data centers and software applications required to serve businesses all over the world.
See, Amazon wants to dominate AI from top to bottom. It developed its own data center chips called Trainium and Inferentia, which are designed to compete with Nvidia's industry-leading hardware. Plus, Amazon wants to offer the most powerful large language models to businesses, so that they choose AWS when they want to develop their own AI applications.
To accelerate its progress, Amazon recently invested $4 billion in leading AI start-up Anthropic. As part of the deal, Anthropic will use AWS as its primary cloud provider, it will train its future large language models using Amazon's chips, and it will make those models available on the AWS platform for customers to use.
Depending which Wall Street forecast you rely upon, AI could add between $7 trillion and $200 trillion to global economic output over the next decade thanks to its ability to boost productivity. It's crucial for Amazon to stake a claim in that enormous market, considering its competitors -- namely, Microsoft Azure and Alphabet's Google Cloud -- are also investing billions of dollars in the space.
Why Amazon stock could be a top performer in 2024
Amazon is the cheapest stock among its trillion-dollar peers based on a traditional valuation metric called the price-to-sales (P/S) ratio. It measures a company's revenue compared to its market capitalization.
Based on Amazon's $570 billion in expected total revenue for 2023 and its current market cap of $1.5 trillion, its stock trades at a P/S ratio of just 2.6. By comparison:
Apple stock trades at a P/S ratio of 8.1.
Microsoft stock sports a P/S ratio of 12.8.
Alphabet (Google) stock trades at a P/S ratio of 6.2.
Nvidia stock has a P/S ratio of 36.3.
But here's the kicker: Amazon generates more revenue than all of them, including Apple, the largest company in the world (it produced $383 billion in sales in fiscal 2023 ended Sept. 30).
Growth is a key determinant of the P/S ratio; the faster a company grows, the higher the valuation investors are willing to pay. Amazon's total revenue decelerated in 2022 and only increased by 9%, partly because of its lagging e-commerce segment.
But the company is on track to boost its revenue by 11% in 2023, and it could grow by more than 11% in 2024, according to early estimates on Wall Street. By comparison, Apple is expected to increase its revenue by just 3.5% in its current fiscal 2024 year, and 5.7% in fiscal 2025.
But don't forget that Amazon is also positioning itself as a key player in the AI space, which could be the largest financial opportunity in the company's 29-year history. Therefore, I think its stock deserves more credit, and if it manages to close the P/S gap to its peers in 2024, that alone could drive significant gains for investors.
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 7, 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. Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Tech giant Amazon (NASDAQ: AMZN) has felt the pinch, because despite its heavily diversified business spanning cloud computing, streaming services, and digital advertising, e-commerce (retail) is still its largest source of revenue. Most of the company's investments in AI are handled by its cloud computing division, Amazon Web Services (AWS), which manages the data centers and software applications required to serve businesses all over the world. It's crucial for Amazon to stake a claim in that enormous market, considering its competitors -- namely, Microsoft Azure and Alphabet's Google Cloud -- are also investing billions of dollars in the space.
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Amazon's e-commerce segment could roar back to life in 2024 Amazon generated $220 billion in online sales during 2022, which was a drop of 1% compared to the prior year. Based on Amazon's $570 billion in expected total revenue for 2023 and its current market cap of $1.5 trillion, its stock trades at a P/S ratio of just 2.6. But here's the kicker: Amazon generates more revenue than all of them, including Apple, the largest company in the world (it produced $383 billion in sales in fiscal 2023 ended Sept. 30).
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Amazon's e-commerce segment could roar back to life in 2024 Amazon generated $220 billion in online sales during 2022, which was a drop of 1% compared to the prior year. Why Amazon stock could be a top performer in 2024 Amazon is the cheapest stock among its trillion-dollar peers based on a traditional valuation metric called the price-to-sales (P/S) ratio. Before you buy stock in Amazon, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Amazon wasn't one of them.
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Most of the company's investments in AI are handled by its cloud computing division, Amazon Web Services (AWS), which manages the data centers and software applications required to serve businesses all over the world. But here's the kicker: Amazon generates more revenue than all of them, including Apple, the largest company in the world (it produced $383 billion in sales in fiscal 2023 ended Sept. 30). Before you buy stock in Amazon, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Amazon wasn't one of them.
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0999ced3-321c-453d-bcfd-64fb11c8ca33
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712036.0
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2023-12-13 00:00:00 UTC
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2 Growth Stocks to Buy With $1,000 Right Now
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https://www.nasdaq.com/articles/2-growth-stocks-to-buy-with-%241000-right-now-3
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2023 started out on a gloomy note, as many investors expected the then-raging inflation crisis to result in a full-blown recession. Those fears never materialized, though. Instead, higher federal interest rates slowed down price increases, lifting a heavy yoke from the proverbial shoulders of growth stocks and other risk-laden investments. As a result, the stock market staged a solid rebound as the inflationary fears melted away, and the S&P 500 (SNPINDEX: ^GSPC) index now stands just 4% below the all-time highs of January 2022.
By some definitions, the stock market has entered a technical bull market, following the proper bear market of 2022. Based on the results of the last 12 bull markets, there should be plenty of sunshine to follow the recent rain. The five-year returns of the recorded bull markets worked out to an average gain of 169%, or an average of 28.7% per year.
With the idea of buying low and selling high (if you ever sell them at all), this could be the perfect time for putting your investable cash to good use. Even if you only have $1,000 to invest right now, you can start meaningful stock positions now. You can always add more money later, or simply sit back and watch your investment grow over the long haul.
For example, you should consider Nvidia (NASDAQ: NVDA) and CrowdStrike (NASDAQ: CRWD) -- two high-octane growth stocks with tremendously bright futures and very large market footprints. They are trading at high valuation ratios already, but for good reasons. Pouncing on these opportunities today should serve you well as the bull market gains momentum.
CrowdStrike: A calculated bet on AI and margin expansion
In the ever-evolving realm of cybersecurity, CrowdStrike (NASDAQ: CRWD) stands out not just as a player but an innovative leader. The company has been analyzing and solving data security threats with artificial intelligence (AI) since 2012.
New technology always ups the intensity of the cybersecurity arms race. Right now, both the heroes and the villains are gaining new insights from AI tools. Hackers use machine learning to overcome existing data safeguards, while security experts run deep learning analyses to put up effective shields against the new threats.
And with a substantial head start under its belt, CrowdStrike offers some of the fastest and most effective security responses on the market. Moreover, the company already built generative AI functions into its Falcon security system. The interactive AI chatbot, named Charlotte, helps CrowdStrike customers find holes in their data security. Soon, they will be able to build a custom tool to plug those holes.
"The first thing you could do is ask Charlotte, OK, what should we build?" CrowdStrike CFO Burt Podbere said at a recent industry conference. "Charlotte will give you an answer. And the next step would be, OK, Charlotte, build it for us. That's huge, right? That's going to save time, money, effort. That's not here today, asking Charlotte to build you the apps, but you can see where we're going."
So CrowdStrike is an AI-based security leader today, with ambitions for even greater cybersecurity solutions in the years ahead. The stock is not exactly cheap today, having gained 116% over the last year and trading at 21 times trailing sales, but you're paying that premium for a top-notch innovator with the rocket engines running at full blast. CrowdStrike's revenue and free cash flows are soaring:
CRWD Revenue (TTM) data by YCharts
Nvidia: An early leader in AI hardware
Graphics processing unit (GPU) specialist Nvidia looms large in the tech industry, and I mean really huge. The days of a small-cap company producing gaming-oriented graphics cards like the TNT and Riva 128 are long gone. Now, Nvidia sports a trillion-dollar market cap (and change) thanks to an early lead in the hardware portion of the current AI boom.
This transformation is rooted in strategic innovation and market-defining product releases. The latest feather in Nvidia's cap is in the field of semiconductors used for training the latest and greatest AI engines, including the software behind OpenAI's ChatGPT. Now, the company is enjoying an influx of orders for that hardware and its future iterations. Lots of large businesses are planning to match or outshine OpenAI's best AI efforts. That takes a boatload of high-priced AI accelerator cards, and Nvidia is the largest name in the game so far.
Nvidia thinks of these AI-training megasystems as AI factories. At another investor conference, Ian Buck from Nvidia's accelerated computing division explained that the leading cloud computing platforms are building massive AI factories right now. They will resell access to some of these systems and reserve other AI factories for their own use.
"We will see the enterprise become a significant portion in terms of consuming the factories," Buck said. "It's early days now, but that is definitely a trend that's catching on."
Smaller enterprises may build their own AI factories down the line, but this is how the AI industry is shaping up so far. And yes, Nvidia faces competition from Advanced Micro Devices and Intel, but these challengers can't match Nvidia's established AI market heft yet. Until AMD-powered or Intel-based supercomputers deliver the first market-beating AI factories with their own hardware, Nvidia has an iron grip on that crucial first-mover advantage.
So Nvidia's stock price has more than tripled in 2023 and its shares trade at a lofty 26 times sales -- a valuation typically reserved for hungry upstarts and not trillion-dollar giants. However, given its pivotal role in the AI revolution, its first-mover advantage, and the ever-increasing demand for its technology, Nvidia presents a compelling case for those willing to invest in a company that's shaping the future of technology.
The price of entry is high, but the potential rewards could be monumental for patient investors who understand the transformative power of AI and Nvidia's central role in it. You shouldn't go all-in on Nvidia, in case the company fumbles a future product launch or its rivals catch up too quickly. But this stock belongs in any serious AI investor's portfolio nowadays.
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 CrowdStrike 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
Anders Bylund has positions in Intel and Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices, CrowdStrike, and Nvidia. The Motley Fool recommends Intel and recommends the following options: long January 2023 $57.50 calls on Intel, long January 2025 $45 calls on Intel, and short February 2024 $47 calls on Intel. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Instead, higher federal interest rates slowed down price increases, lifting a heavy yoke from the proverbial shoulders of growth stocks and other risk-laden investments. The stock is not exactly cheap today, having gained 116% over the last year and trading at 21 times trailing sales, but you're paying that premium for a top-notch innovator with the rocket engines running at full blast. So Nvidia's stock price has more than tripled in 2023 and its shares trade at a lofty 26 times sales -- a valuation typically reserved for hungry upstarts and not trillion-dollar giants.
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CrowdStrike's revenue and free cash flows are soaring: CRWD Revenue (TTM) data by YCharts Nvidia: An early leader in AI hardware Graphics processing unit (GPU) specialist Nvidia looms large in the tech industry, and I mean really huge. The Motley Fool has positions in and recommends Advanced Micro Devices, CrowdStrike, and Nvidia. The Motley Fool recommends Intel and recommends the following options: long January 2023 $57.50 calls on Intel, long January 2025 $45 calls on Intel, and short February 2024 $47 calls on Intel.
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For example, you should consider Nvidia (NASDAQ: NVDA) and CrowdStrike (NASDAQ: CRWD) -- two high-octane growth stocks with tremendously bright futures and very large market footprints. CrowdStrike's revenue and free cash flows are soaring: CRWD Revenue (TTM) data by YCharts Nvidia: An early leader in AI hardware Graphics processing unit (GPU) specialist Nvidia looms large in the tech industry, and I mean really huge. And yes, Nvidia faces competition from Advanced Micro Devices and Intel, but these challengers can't match Nvidia's established AI market heft yet.
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Even if you only have $1,000 to invest right now, you can start meaningful stock positions now. Smaller enterprises may build their own AI factories down the line, but this is how the AI industry is shaping up so far. You shouldn't go all-in on Nvidia, in case the company fumbles a future product launch or its rivals catch up too quickly.
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712037.0
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2023-12-13 00:00:00 UTC
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The Implied Analyst 12-Month Target For VYM
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https://www.nasdaq.com/articles/the-implied-analyst-12-month-target-for-vym-1
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Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the Vanguard High Dividend Yield ETF (Symbol: VYM), we found that the implied analyst target price for the ETF based upon its underlying holdings is $119.65 per unit.
With VYM trading at a recent price near $108.71 per unit, that means that analysts see 10.06% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of VYM's underlying holdings with notable upside to their analyst target prices are Clearway Energy Inc (Symbol: CWEN), Tronox Holdings PLC (Symbol: TROX), and Albertsons Companies Inc (Symbol: ACI). Although CWEN has traded at a recent price of $24.56/share, the average analyst target is 15.75% higher at $28.43/share. Similarly, TROX has 14.28% upside from the recent share price of $12.50 if the average analyst target price of $14.29/share is reached, and analysts on average are expecting ACI to reach a target price of $25.11/share, which is 13.27% above the recent price of $22.17. Below is a twelve month price history chart comparing the stock performance of CWEN, TROX, and ACI:
Below is a summary table of the current analyst target prices discussed above:
NAME SYMBOL RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET
Vanguard High Dividend Yield ETF VYM $108.71 $119.65 10.06%
Clearway Energy Inc CWEN $24.56 $28.43 15.75%
Tronox Holdings PLC TROX $12.50 $14.29 14.28%
Albertsons Companies Inc ACI $22.17 $25.11 13.27%
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
10 ETFs With Most Upside To Analyst Targets »
Also see:
ASMI Historical Stock Prices
MESA Past Earnings
RLOG Videos
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Vanguard High Dividend Yield ETF VYM $108.71 $119.65 10.06% Clearway Energy Inc CWEN $24.56 $28.43 15.75% Tronox Holdings PLC TROX $12.50 $14.29 14.28% Albertsons Companies Inc ACI $22.17 $25.11 13.27% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? 10 ETFs With Most Upside To Analyst Targets » Also see: ASMI Historical Stock Prices MESA Past Earnings RLOG Videos The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Three of VYM's underlying holdings with notable upside to their analyst target prices are Clearway Energy Inc (Symbol: CWEN), Tronox Holdings PLC (Symbol: TROX), and Albertsons Companies Inc (Symbol: ACI). Similarly, TROX has 14.28% upside from the recent share price of $12.50 if the average analyst target price of $14.29/share is reached, and analysts on average are expecting ACI to reach a target price of $25.11/share, which is 13.27% above the recent price of $22.17. Vanguard High Dividend Yield ETF VYM $108.71 $119.65 10.06% Clearway Energy Inc CWEN $24.56 $28.43 15.75% Tronox Holdings PLC TROX $12.50 $14.29 14.28% Albertsons Companies Inc ACI $22.17 $25.11 13.27% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now?
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Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. Similarly, TROX has 14.28% upside from the recent share price of $12.50 if the average analyst target price of $14.29/share is reached, and analysts on average are expecting ACI to reach a target price of $25.11/share, which is 13.27% above the recent price of $22.17. A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past.
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Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. With VYM trading at a recent price near $108.71 per unit, that means that analysts see 10.06% upside for this ETF looking through to the average analyst targets of the underlying holdings. Vanguard High Dividend Yield ETF VYM $108.71 $119.65 10.06% Clearway Energy Inc CWEN $24.56 $28.43 15.75% Tronox Holdings PLC TROX $12.50 $14.29 14.28% Albertsons Companies Inc ACI $22.17 $25.11 13.27% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now?
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2023-12-13 00:00:00 UTC
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European shares edge higher as chemical makers rise; Fed rate verdict in focus
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https://www.nasdaq.com/articles/european-shares-edge-higher-as-chemical-makers-rise-fed-rate-verdict-in-focus
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By Ankika Biswas
Dec 13 (Reuters) - European shares edged up on Wednesday on a boost from chemical manufacturers even though investors broadly stayed away from risky bets ahead of the Federal Reserve's much-anticipated interest rate decision and policy outlook.
The pan-European STOXX 600 .STOXX rose 0.2% by 0915 GMT. Germany' benchmark DAX .GDAXI and France's CAC-40 .FCHI were up 0.1% and 0.3%, respectively, after scaling intraday record highs on Tuesday.
"There's quite a lot of risk event going on with the ECB next and we are just seeing caution ahead of that," said Daniela Hathorn, senior market analyst at Capital.com.
Investors have fully priced in a pause from the Fed later in the day, with Tuesday's U.S. inflation data doing little to alter rate cut bets for next year.
The focus will be on Chair Jerome Powell's commentary and the central bank's short-term rates projection for clues on the timing of policy easing.
"Powell would want to avoid all this speculation about rate cuts and focus more on the evolution of the economy... he's going to refrain from sounding too happy with the progress so far," Capital.com's Hathorn added.
Policy decisions from the European Central Bank and the Bank of England on Thursday are next in line, with both expected to hold rates steady.
BASF BASFn.DE jumped 3.7% after UBS upgraded the German chemicals giant's stock to "buy" from "sell", pushing the chemical sector .SX4P to the top of the gainers' list, up 1.3%. France's Arkema AKE.PArose 5.3%, helping the sector.
The healthcare sector .SXDP also gained 0.7%, with Novo Nordisk NOVOb.CO bouncing back 1.1% after falling on Tuesday on rival Eli Lilly's LLY.N read-across.
Zara owner InditexITX.MC climbed 1.6% to an all-time high, after the Spanish fashion retailer flagged strong trading into the key holiday season and raised its annual margin guidance.
EntainENT.L jumped 4.6% after the betting and gaming firm said CEO Jette Nygaard-Andersen was stepping down from the group with immediate effect.
Continental CONG.DE gained 3.7% after Bank of America Global Research upgraded the auto-parts maker to "buy" from "neutral".
On the flip side, energy stocks.SXEP lagged, down 0.5%, tracking weak oil prices, while telecommunications .SXKP lost 1%, set to extend declines from Tuesday, with Vodafone VOD.L down 2.3%.
NelNEL.OL dropped 10.9% to the bottom of STOXX 600 after the Norwegian hydrogen company said its client cancelled an order, which an analyst says reflects poor market conditions for the industry.
StorebrandSTB.OL shed 4.4% after the Norwegian insurer said it would be challenging to reach its 2023 profit ambition.
(Reporting by Ankika Biswas in Bengaluru; Editing by Eileen Soreng and Nivedita Bhattacharjee)
((Ankika.Biswas@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Ankika Biswas Dec 13 (Reuters) - European shares edged up on Wednesday on a boost from chemical manufacturers even though investors broadly stayed away from risky bets ahead of the Federal Reserve's much-anticipated interest rate decision and policy outlook. Zara owner InditexITX.MC climbed 1.6% to an all-time high, after the Spanish fashion retailer flagged strong trading into the key holiday season and raised its annual margin guidance. On the flip side, energy stocks.SXEP lagged, down 0.5%, tracking weak oil prices, while telecommunications .SXKP lost 1%, set to extend declines from Tuesday, with Vodafone VOD.L down 2.3%.
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By Ankika Biswas Dec 13 (Reuters) - European shares edged up on Wednesday on a boost from chemical manufacturers even though investors broadly stayed away from risky bets ahead of the Federal Reserve's much-anticipated interest rate decision and policy outlook. Investors have fully priced in a pause from the Fed later in the day, with Tuesday's U.S. inflation data doing little to alter rate cut bets for next year. Policy decisions from the European Central Bank and the Bank of England on Thursday are next in line, with both expected to hold rates steady.
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By Ankika Biswas Dec 13 (Reuters) - European shares edged up on Wednesday on a boost from chemical manufacturers even though investors broadly stayed away from risky bets ahead of the Federal Reserve's much-anticipated interest rate decision and policy outlook. Investors have fully priced in a pause from the Fed later in the day, with Tuesday's U.S. inflation data doing little to alter rate cut bets for next year. NelNEL.OL dropped 10.9% to the bottom of STOXX 600 after the Norwegian hydrogen company said its client cancelled an order, which an analyst says reflects poor market conditions for the industry.
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The pan-European STOXX 600 .STOXX rose 0.2% by 0915 GMT. The focus will be on Chair Jerome Powell's commentary and the central bank's short-term rates projection for clues on the timing of policy easing. Policy decisions from the European Central Bank and the Bank of England on Thursday are next in line, with both expected to hold rates steady.
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f38199d2-4725-4e89-ac25-242c9038aff6
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712039.0
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2023-12-13 00:00:00 UTC
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The War on Cash, Revisited
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DCOMP
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https://www.nasdaq.com/articles/the-war-on-cash-revisited
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In this podcast, Motley Fool analyst Jason Moser and Motley Fool contributor Matt Frankel discuss:
The state of the "War on Cash."
Embedded finance.
Two "toll booths" that aren't going away anytime soon.
To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. To get started investing, check out our quick-start guide to investing in stocks. A full transcript follows the video.
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This video was recorded on Dec. 03, 2023.
Jason Moser: War on cash basket of Mastercard, Visa, PayPal, Block in equal weightings. The inception date of July 24, 2017 is worth noting, this basket is still up 130% versus the market's 105%. Even with this pull back specifically, I'd look at companies like Block and PayPal, even with the pullback in companies like those, the basket is still outperforming.
Mary Long: I'm Mary Long and that's Jason Moser, a lead advisor here at The Fool, and our go to guy when we want to talk the war on cash. As we close out the year, we'll be bringing you some industry focus style episodes where a couple analysts get together to discuss standout stocks in a given industry. Today, Jason is joined by Matt Frankel to tackle the world of payments.
Jason Moser: Let's go ahead and just start this show off with, let's call it the big format, the war on cash basket. We get questions about this basket all the time. People are very interested in these companies. It's something we talked about for many years. As a reminder for listeners who may not be as familiar, we're talking about in specific Visa, Mastercard, PayPal, and Block. Those are the four companies that make up the official war on cash basket. Though hey, listen, we encourage all listeners, hey, get creative, make the war on cash basket that's right for you. It doesn't have to be those four. We've even talked about a war on cash basket Part 2 on these shows before. But Matt, we're gonna kick it off with these four specifically. I want to start with the two big toll boosts. Visa and Mastercard, because these are the ones that are always just in your face so obvious and yet some folks will say, these are companies that are headed the way the Dodo bird. Crypto and Web 3.0 they're going to obsolete these networks. But I tell you to this point met, it really doesn't feel that way at all.
Matt Frankel: We haven't revisited the war on cash basket in quite some time. We looked like mad geniuses for the war on cash basket in around 2021 for a while there. Now it's doing OK, but it's come back to Earth a little bit. But you mentioned Visa and Mastercard, and I don't want to get into what I think Crypto is going to do or not do because it's not that long of a show. But my short answer is both of these businesses are not going anywhere. We can cover them in one swoop because I'd say they're like 95% the same company.
Jason Moser: It does feel like this is a lows Home Depot situation. When you cover one, you cover the other. They're a little bit different but they're the two that really ruled the roost.
Matt Frankel: One is 30% bigger than the other, a lows Home Depot situation. The numbers look pretty similar. If I look at the most recent quarter, both of them grew revenue by the exact same amount, up 11%. Earnings were up 22% at Visa and 24% at Mastercard. Payment volume is enormous at these companies. Between the two of them they have, just doing the quick math in my head here, they have $22 trillion of annualized payment volume between the two of them.
Jason Moser: Wow.
Matt Frankel: It's roughly split 50, 50 between the US and international. There are 4.26 billion Visa cards in the world, between credit and debit cards, 3.26 billion Mastercards. These are massive payment networks. They are not going anywhere. What a lot of people don't realize is that the other companies we're going to talk about like PayPal and Block, as well as a lot of these Fintech start-ups and a lot of the Crypto companies, it's not an either or. Visa wants companies Block to do well because guess what? Those little cash cards have a Visa logo on them. They want these companies to do well, these Fintech start-ups, it's a win win situation. I call Visa and Mastercard the ultimate war on cash stocks because whatever Fintechs win the battle, Visa and Mastercard win too.
Jason Moser: Well, they've done a very good job I think through the years of finding new avenues or ways into that payments value chain. I think you make a very good point there in that you've got a lot of these new fangled Fintech companies, they're doing neat things. We'll talk about embedded finance to an extent here in a little bit as well. But they all rely on those rails at one point or another. You're seeing attempts at disruption there, you see things like Fed now and whatnot, trying to basically invent new sets of rails to give more choices, more options, quicker transmission of money finances. But it seems to boil down to the fact that these are two businesses, these rails in Visa and Mastercard are just inexorable parts of the value chain here when it comes to payments, no matter what the company.
Matt Frankel: It's also worth mentioning that Visa and Mastercard don't have their hands in some areas of finance yet especially person to person transfers, which PayPal and Block are both known for. That's a massive opportunity there. But you're right, they are the rails. It's not a complete duopoly, you have American Express and Discover in the US and in a lot of foreign markets, Visa and Mastercard are not the dominant players like they are here. If you go to some parts of the world, credit card acceptance isn't even that widespread yet.
Jason Moser: I've lived in a few of those places. [laughs]
Matt Frankel: You don't want to go backpacking through certain parts of Latin America and not have cash, it doesn't really work out that well in a lot of cases. But they're very mature and profitable businesses, very profitable. They have net margins that would make pretty much any other company jealous, but they're not mature to the point where they don't have any room to grow. There's a lot of international opportunity, I mentioned person to person payments. There's business to business transfers that are very prevalent that no one's really figured out how to make money off of yet. But they are definitely the rails and they're not going anywhere.
Jason Moser: I'm glad you mentioned earlier that, we look maybe a little bit more like geniuses with this war on cash basket, maybe a couple of years back. Obviously the performance was significantly higher than. It is worth noting this war on cash basket of Mastercard, Visa, PayPal, Block in equal weightings. The inception date of July 24th, 2017 is worth noting. This basket is still up 130% versus the market's 105%. Even with this pullback specifically, I mean, I'd look at companies like Block and PayPal, even with the pullback in companies like those, the basket is still outperforming. Let's go to PayPal because I think this is an interesting story from a number of angles. PayPal, you talk about a business with so much potential, but one that's clearly going through some growing pains. There's new leadership, hopefully there's new renewed focus there. But Matt why is the market so glass half empty on PayPal these days?
Matt Frankel: You mentioned the new leadership and that kind of is one of the things that I'm excited to see if their growth strategy is a little bit more like you said, focused. Their growth was very disjointed for a while. I don't know if you remember when they were trying to acquire Pinterest.
Jason Moser: I do. Well, it seems like it goes back to that phrase, everything app. They wanted to be this super app in doing everything for everyone. You know what, culturally, at least on this side of the world, it just doesn't seem like that's what consumers want.
Matt Frankel: I'm a big Pinterest shareholder, so I'll take it. But I was sitting there scratching my head like, what are they going to do with it? They were going to buy them out for $70 a share, it's also worth noting. It was a very disjointed growth strategy. I would call it all over the place. Some of their acquisition certainly made sense, like Honey definitely made sense as an acquisition whether or not they overpaid for is another conversation.
Matt Frankel: A lot of companies overpaid in 2021, 2022 for acquisitions just based on the valuation environment at the time. It's not that management made bad decisions. The other thing is PayPal had these very ambitious growth targets that it looked during the pandemic years like they were going to meet without any issue. For one, they have about 430 million active users right now. Their CEO, this was only a couple of years ago, said we're going to hit 750 million users in just a few years. Clearly that's been walked back a little bit since then. The strategy has definitely shifted from we're going to hit 750 million in a few years, then we're going to go on to one billion and we're just going to go from there. Now it's gone to we have 430 million good users let's figure out how to maximize them. The question is, can PayPal extract any more value out of its current user base. Venmo in particular, has been very slow to monetize, I would say. But the numbers look better than the stock price might lead you to believe. PayPal is growing. Not maybe as the market wants it to, the user base is actually declining a bit but the users that they have, they're doubling down on, they're more engaged. Total payment volume is up 15% year of a year. That's outpacing inflation. This isn't just inflation driven. Revenue is up 8% year every year. Non-transaction expenses, which has been a big focus area, there's down 12% year every year despite higher payment volume. That combination 20% earnings growth year over year, they're really engaging their members better. The average active PayPal account makes 56.6 transactions per quarter. That's 13% higher than a year ago. They're doing a great job of engagement. This is an absolute cash machine, this is a profitable business. A lot of people think of PayPal as a tech company, which in a lot of minds translates to unprofitable. They have roughly $15 million of cash on their balance sheet. They generate over $5 million of free cash flow annually, which right now they're putting it all into buybacks.
Jason Moser: I'm just going to say, we talk about how companies reinvest this capital, this cash flow. I mean, PayPal is really making a big effort here to buy back a lot of these shares right now. I mean, clearly they see at least some value in where the share is right now.
Matt Frankel: Yeah, I mean, they've retired 5% of their shares in the past year. They've spent $5.4 billion in buybacks during that period. Essentially, all their free cash flow is going into buybacks right now. Now my hope is that they find some bolt on acquisitions that could drive value. That's the preference. It's like Warren Buffett says, "Our first priority is figuring out how to maximize our current business then we'll worry about buybacks and things like that." But that tells me that they see a real deep value here if they're not doing anything else with their money. I mean, and I mentioned, they have a lot of cash on their balance sheet, so that gives them a cushion to spend their money on buybacks and still be able to pursue acquisitions or whatever if they arise. But this is a very cheap business. It trades for I think, less than 15 times forward earnings like 12 times for a while there. If you had told me that was going to be PayPal's valuation a couple of years ago, we would have both thought that was kind of a silly statement to make.
Jason Moser: It definitely seems like a bit of an overreaction to the downside there. I'm not saying that the market was necessarily rational in 2022 either. But yeah, it does feel like given, I mean, this is the company in a fundamentally a very good position, good financials, playing into a market where there are clear and obvious tailwinds that are not abating. Then it's going to really just boil down to new leadership. Seems like new leadership is some focus, they're trying to pull back from that super app aspiration. Really just dig down into what they do really well, which could work out very well for the company. I mean, these companies go through growing pains all the time. It's never a straight line up. Speaking of never a straight line up, I mean let's look at block here because this is another really interesting story to follow here. The Fintech formerly known as Square, now it's block and it's got Square, it's got cash app, it's got these crypto aspirations with Bitcoin. It's got title and music streaming. I'm not exactly sure what the focus there, so we talk about PayPal and maybe that we're a little bit relieved that it looks like this company is getting some focus back. I think it's a fair question to ask, at least with block, is this a company that is losing focus?
Matt Frankel: Well, as you know, I've been a block shareholder for the long haul. I bought two days. I'm right, two days after the IPO, I've written block from $9 a share all the way up to $280 a share and back to where it is now. I've been a fan of this company for a long time. The last time I saw you in person, we were interviewing Block co founder Jim Mckelvey.
Jason Moser: Oh yeah, that's right, that was a fun interview.
Matt Frankel: Their growth strategy over the past few years. I could also describe like PayPals, It's like all over the place. But they weren't just talking about making acquisitions that didn't make sense. They actually did a couple. You mentioned title, which I'm not really sure what the point of that was.
Jason Moser: Now that felt like either he was appeasing Jay Z, trying to kind of get tight in that club, or maybe this was just like a gamble on NFT's, which clearly that had worked out so well. But any which way you cut it, I just don't see the logic in that deal. But thankfully, they didn't pay an arm and a leg for Judge.
Matt Frankel: Speaking of paying an arm and a leg, I'm glad you just used it.
Jason Moser: I knew where this was going.
Matt Frankel: They also acquired After Pay which made sense. That is definitely a fit in the business. Not for $29 million.
Jason Moser: That was a lot.
Matt Frankel: It thankfully, it was an all stock deal so as their stock went down, the essential price they paid for the acquisition went down as well. I think it would be something like $6 million if you look at their current stock price, stop doing that, focus. That's kind of my point with with Jack Dorsey. The first line of his recent shareholder letter really made me smile. It said, "We've been quiet lately because we've been focused," and if you think about it, you really haven't heard any news from Block lately. You've heard a lot from PayPal, the new CEO, the management, shake up the strategy shift. You really haven't heard much from Block. They're really focusing their efforts and they're doing a lot of things that are very non Jack Dorsey esque, in the sense that, number 1, they're really focusing on controlling costs. He's generally a growth at all costs type of guy. They capped the number of employees they're going to have. They implemented a $1 million buyback program, which that's the first time I've ever heard the words buyback in block the same sentences. Unlike PayPal, their business is still growing very rapidly. Gross profit was up 21% year over year in the last quarter. Cash app is still growing. The payments ecosystem is still growing. The Afterpay integration actually looks like it's adding significant value to the business, but there is a long way to go when it comes to reaching profitability. Out of the four we've talked about so far, this is the least profitable by a long shot. Now, they could be very profitable today if they would stop pumping so much money into growth run in their expenses. I mentioned that's just now becoming a priority. They're a little late to the party with that.
Matt Frankel: I mentioned they did a $1 billion buyback authorization, that's not even going to cover their stock based compensation for the year. That's just really to offset it. Their share account is not going to go down even if they buy back $1 billion worth of stock. Things like that really need to be brought under control for this to really return to the level it was at before.
Jason Moser: I think that makes a lot of sense. I appreciate you bringing up the buy now, pay later stuff because I think in the very beginning stages of that market, I think we all probably looked at it at least with the healthy dose of skepticism. It seems ultimately like BNPL is more or less just credit card in a different name. But when you look at it, clearly consumers are looking at that more and more as an option, and retailers are looking at that more and more as an option. I said it before, if it's something that enables consumers to spend and it enables retailers to sell, then it's a value. If you look at the Adobe Analytics, they're talking about for Cyber Monday alone, BNPL is going to grow nearly 19% close to $785 million in sales. It's clearly an option that consumers are gravitating more and more toward. So even if block overpaid, which is obviously something that's debatable though, I think we probably would all agree they paid a lot. Maybe that is something that does pay off down the road. You look at the tail ones in that market, maybe it is something that ends up paying off. Matt, I wanted to dig into a few other companies in this space, companies that we like to follow tangentially, ones we don't get to talk as much about, but companies that probably many listeners are very familiar. We wanted to start with Marqeta, and I think it's a nice segue from Block into Marqeta because Marqeta in Block, they're joined at the hip, aren't they?
Matt Frankel: Yeah. Well, Block is their biggest customer, specifically the Cash App by far. Marqeta is a credit card infrastructure or a payment card infrastructure provider is the best way I could describe them. In addition to being the company that provides the technology behind the Cash App card, they also do things like they provide cards for Uber. If you ever do an Instacard grocery order, they're the company that allows your credit card to be used in store without you physically being there with your card. Your shopper can buy groceries on your behalf things like that. They provide the technology behind these things. Cash App makes up a big part of their revenue. It was a huge sigh of relief for investors when Cash App renewed its contract this year. That was up to expire. I think it's now renewed.
Jason Moser: Big deal.
Matt Frankel: That would have been a nail in the coffin. I think that's renewed through 2028, I believe.
Jason Moser: Four additional years, I believe.
Matt Frankel: As a result, the company reset this year. The renewal rates as is rather common when you sign a new contract, the initial rate goes down but you agreed to four more years. You saw their revenue decline by 43% year over year, but that doesn't tell the story about how the business is going. That's just because the Cash App rates went down quite a bit. If you look at the numbers, the payment volume through Marqeta's platform is up 33% year over year. They say, start judging our growth again in the third quarter of 2024. That'll be one year after the Cash App renewal. So you'll see year over year comparisons of revenue, they're really apples to apples comparisons. High gross margin business 67% gross margin. They have up $1.3 billion in cash, so they don't really have to worry about being profitable just yet. It's only a $3 billion market cap company, so that's a lot of cash on hand. On an adjusted basis, they're on the verge of profitability, but their growth has been very impressive. I'd like to see them continue to diversify their revenue away from Cash App. But really impressive business and it's a technology that is very much needed and is going to be increasingly needed as those type of businesses really expand.
Jason Moser: I suspect you're right. I mentioned embedded finance earlier in the show and that really is what Marqeta is. It's embedded finance. It's bringing those finance capabilities into apps that aren't necessarily Fintech companies. You mentioned Uber, DoorDash, companies like that that rely on drivers or delivery drivers going in there and picking up something and needing to charge it to a card then gets charged to the individual consumer buying the product or whatever. That embedded finance market, it's an interesting one. It really is growing as we see the mobile economy, the digital economy, the gig economy, continue to grow. It does feel like there's a lot of opportunity there for Marqeta and it was very good news to see them continuing that relationship with Block because I have a feeling that that should pay off down the road. Matt, Shift4 payments. This is not a business I'm as familiar with, one that you follow. What does Shift4 do and what do you like about them today?
Matt Frankel: They do payment processing and software for businesses. They're specifically concentrated in restaurants and hotels. They're the actual consumer-facing software terminals and things like that that you'll see when you go to pay for a hotel stay or things of that nature. Pretty big and successful company. A little over $5 billion market cap. So bigger than Marqeta and profitable on a gap basis. They have a 6% net profit margin in the past 12 months. It's a really successful business so far, very strong growth, payment processing volume is growing 36% year over year, 23% revenue growth. They get a percentage of transaction volume and some software revenue, things like that. Over the past five years, they've grown at a 48% annualized rate sustained over four years, and including in this slowdown, they're still growing. Their main focus is restaurants and hotels. They've expanded that quite a bit in the past couple of years. Stadiums and sporting venues are a big focus area for them. They recently acquired a company called Appetize that gets them into a lot more sports venues. I believe, if I remember correctly, that you're a golfer, I'm sure you've heard of Pebble Beach Resorts.
Jason Moser: You remember correctly.
Matt Frankel: Pebble Beach Resorts is a recent big winner that added Shift4 as their payment processing partner and non-profit organizations are another big vertical of theirs like habitat for you matter to use the Shift4 as their payment software. Interesting software play on the payments industry.
Jason Moser: Well finally met one that most listeners are probably pretty familiar with. May have heard of this company, Mercado Libre. It's what we talked about on occasion here. [laughs] It's not just a marketplace, this really is a Fintech play as well. How does Mercado Libre continue to gain share because it really feels like they have just got everything going in the right direction?
Matt Frankel: They keep building out their ecosystem and it's really impressive. Their profitability really has gotten much better in the past couple of years too. If I'm looking at some of these growth numbers, I'm thinking, what's the slowdown? On both sides of their business, you have the e-commerce platform, merchandise volumes up almost 60% year over year. It's not just inflation because let's be fair, they operate in some countries where inflation is way, Argentina, inflation is over 100% right now.
Jason Moser: That's such a bad deal what we've got going on here right now. [laughs]
Matt Frankel: It puts ours into perspective. But the number of items sold on the platform is up 26% year over year, so it's not just inflation. On the payment side, total payment volume on the Mercado Pago is up over 120% year over year. What's slowdown? If you look at their numbers, you would have no idea that's going on. Their credit business is doing well, Mercado Credito is doing well. Forgive my terrible Spanish accent.
My high school Spanish teacher would be very upset at me right now. But their credit portfolio is growing and performing to expectations. On the bottom line, they're very profitable. It's really rare you find a company growing revenue at almost 70% year over year with great bottom line profitability. They have an 18% operating margin, so it's a powerhouse business. I'm not surprised, it just recently hit a 52 week high. One of my largest investments and I'm sure a lot of people listening and people at the Fool could say the same. People always throw around this is an early stage Blank but this really is like an early stage Amazon, PayPal all rolled into one.
Jason Moser: Sounds familiar Matt. Well, listen, that's a lot of Fintech in a short amount of time. We're going to leave it there. But hey, thank you for making some time for us this week.
Matt Frankel: Thanks for having me. It's always good to get back together with you for a fun episode.
Mary Long: As always, people on the program may have interest in the stocks they talk about, and the Motley Fool may have formal recommendations for or against, so don't buy or sell stocks based solely on what you hear. I'm Mary Long. Thanks for listening. We'll see you tomorrow.
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Jason Moser has positions in Adobe, Amazon, Block, Home Depot, Marqeta, Mastercard, PayPal, and Visa. Mary Long has no position in any of the stocks mentioned. Matthew Frankel, CFP® has positions in Amazon, Block, MercadoLibre, PayPal, and Pinterest. The Motley Fool has positions in and recommends Adobe, Amazon, Bitcoin, Block, DoorDash, Home Depot, Mastercard, MercadoLibre, PayPal, Pinterest, and Visa. The Motley Fool recommends Marqeta and Shift4 Payments and recommends the following options: long January 2024 $420 calls on Adobe, long January 2025 $370 calls on Mastercard, short December 2023 $67.50 puts on PayPal, short January 2024 $430 calls on Adobe, 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.
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You're seeing attempts at disruption there, you see things like Fed now and whatnot, trying to basically invent new sets of rails to give more choices, more options, quicker transmission of money finances. Jason Moser: I'm glad you mentioned earlier that, we look maybe a little bit more like geniuses with this war on cash basket, maybe a couple of years back. The Motley Fool has positions in and recommends Adobe, Amazon, Bitcoin, Block, DoorDash, Home Depot, Mastercard, MercadoLibre, PayPal, Pinterest, and Visa.
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Jason Moser has positions in Adobe, Amazon, Block, Home Depot, Marqeta, Mastercard, PayPal, and Visa. The Motley Fool has positions in and recommends Adobe, Amazon, Bitcoin, Block, DoorDash, Home Depot, Mastercard, MercadoLibre, PayPal, Pinterest, and Visa. The Motley Fool recommends Marqeta and Shift4 Payments and recommends the following options: long January 2024 $420 calls on Adobe, long January 2025 $370 calls on Mastercard, short December 2023 $67.50 puts on PayPal, short January 2024 $430 calls on Adobe, and short January 2025 $380 calls on Mastercard.
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What a lot of people don't realize is that the other companies we're going to talk about like PayPal and Block, as well as a lot of these Fintech start-ups and a lot of the Crypto companies, it's not an either or. Matt, I wanted to dig into a few other companies in this space, companies that we like to follow tangentially, ones we don't get to talk as much about, but companies that probably many listeners are very familiar. It's a really successful business so far, very strong growth, payment processing volume is growing 36% year over year, 23% revenue growth.
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But they weren't just talking about making acquisitions that didn't make sense. You really haven't heard much from Block. Matt Frankel: I mentioned they did a $1 billion buyback authorization, that's not even going to cover their stock based compensation for the year.
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ca5ce55d-a88e-487f-b3ec-ff1ab5352d05
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712040.0
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2023-12-13 00:00:00 UTC
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UK payments regulator proposes cap on Mastercard, Visa cross-border fees
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DCOMP
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https://www.nasdaq.com/articles/uk-payments-regulator-proposes-cap-on-mastercard-visa-cross-border-fees
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By Iain Withers
LONDON, Dec 13 (Reuters) - Britain's payments regulator on Wednesday provisionally proposed a cap on cross-border interchange fees charged by Mastercard MA.N and Visa V.N on transactions made between the UK and European single market.
The Payment Systems Regulator (PSR) said a cap would protect businesses from overpaying, after it published interim findings of a market review on interchange fees charged since Brexit, when the bloc's longstanding cap ceased to apply in Britain.
UK lawmakers had piled pressure on the PSR to consider re-introducing a cap in Britain, and the watchdog said last year it would conduct two market reviews, but that an outcome could take years.
The PSR said the review focused on charges set by Mastercard and Visa, as they account for 99% of debit and credit card payments in the UK.
The watchdog said both companies had likely raised fees to an "unduly high level", costing UK businesses an extra 150-200 million pounds ($190-250 million) last year due to fee increases.
"In short, at this stage, we do not think this market is working well," PSR managing director Chris Hemsley said in a statement.
Under the proposals, the PSR would impose an initial time-limited cap of 0.2% on UK-European Economic Area debit transactions and 0.3% on credit transactions. A lasting cap would then be imposed once further analysis is carried out.
A spokesperson for Visa said the company strongly disputed the findings of the PSR's interim report and said the proposed remedies were "not justified".
"Accepting reliable, secure, and innovative digital payments represents enormous value to UK businesses, especially when selling overseas," the spokesperson said.
"These interchange rates apply to less than 2% of UK card payments - European (EEA) cardholders buying online from a UK seller - and reflect the fact that these transactions are more complex and carry far greater risk of fraud."
Mastercard did not immediately respond to a request for comment.
The PSR is inviting feedback on the proposals until the end of January, with a final report due in the first quarter of 2024.
A government commissioned report last month said Britain needs a "digital alternative" to relying on Visa and Mastercard regardless of what the PSR does, echoing longstanding ambitions in the EU for a "home grown" alternative to the American duo that has yet to emerge.
($1 = 0.7990 pounds)
(Additional reporting by Huw Jones, editing by Sinead Cruise)
((Iain.Withers@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Iain Withers LONDON, Dec 13 (Reuters) - Britain's payments regulator on Wednesday provisionally proposed a cap on cross-border interchange fees charged by Mastercard MA.N and Visa V.N on transactions made between the UK and European single market. The PSR said the review focused on charges set by Mastercard and Visa, as they account for 99% of debit and credit card payments in the UK. "Accepting reliable, secure, and innovative digital payments represents enormous value to UK businesses, especially when selling overseas," the spokesperson said.
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By Iain Withers LONDON, Dec 13 (Reuters) - Britain's payments regulator on Wednesday provisionally proposed a cap on cross-border interchange fees charged by Mastercard MA.N and Visa V.N on transactions made between the UK and European single market. The Payment Systems Regulator (PSR) said a cap would protect businesses from overpaying, after it published interim findings of a market review on interchange fees charged since Brexit, when the bloc's longstanding cap ceased to apply in Britain. The watchdog said both companies had likely raised fees to an "unduly high level", costing UK businesses an extra 150-200 million pounds ($190-250 million) last year due to fee increases.
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By Iain Withers LONDON, Dec 13 (Reuters) - Britain's payments regulator on Wednesday provisionally proposed a cap on cross-border interchange fees charged by Mastercard MA.N and Visa V.N on transactions made between the UK and European single market. The Payment Systems Regulator (PSR) said a cap would protect businesses from overpaying, after it published interim findings of a market review on interchange fees charged since Brexit, when the bloc's longstanding cap ceased to apply in Britain. UK lawmakers had piled pressure on the PSR to consider re-introducing a cap in Britain, and the watchdog said last year it would conduct two market reviews, but that an outcome could take years.
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By Iain Withers LONDON, Dec 13 (Reuters) - Britain's payments regulator on Wednesday provisionally proposed a cap on cross-border interchange fees charged by Mastercard MA.N and Visa V.N on transactions made between the UK and European single market. The Payment Systems Regulator (PSR) said a cap would protect businesses from overpaying, after it published interim findings of a market review on interchange fees charged since Brexit, when the bloc's longstanding cap ceased to apply in Britain. The PSR said the review focused on charges set by Mastercard and Visa, as they account for 99% of debit and credit card payments in the UK.
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0f210b4d-480d-4f41-9ee6-2ff2b4ef417c
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712041.0
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2023-12-13 00:00:00 UTC
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3 Dirt-Cheap Stocks to Buy Hand Over Fist Before the End of the Year
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DCOMP
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https://www.nasdaq.com/articles/3-dirt-cheap-stocks-to-buy-hand-over-fist-before-the-end-of-the-year
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nan
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When midnight strikes and we shift from 2023 to 2024, this year's cheap stocks won't automatically become expensive. So, you may be wondering why I say you should buy certain players hand over fist before the end of the year. That's because these stocks happen to be trading for very interesting prices right now, and their bright, long-term outlooks mean they could take off at any time.
That means it's a good idea to get in on these players as soon as possible, such as now, when you may be making some adjustments to your portfolio before the new year. So, which stocks should you scoop up? Three have missed out on this year's rally but have what it takes to win in the future. Let's check them out.
Image source: Getty Images.
1. Ginkgo Bioworks
Ginkgo Bioworks (NYSE: DNA) specializes in something that could help pharmaceutical and biotech companies discover the next blockbuster drug. This specialty assists companies in other industries too, from materials to food. Ginkgo engineers organisms that help in the design and production of these companies' products.
This organism specialist has signed partnerships with many pharma companies, including heavyweight Pfizer, and has seen an increase in active programs -- both in the pharmaceutical industry and overall. Total active programs climbed 36% in the most recent quarter year over year, and pharma programs increased 50%.
Ginkgo also has a biosecurity unit that aims to prevent the spread of pathogens, and Ginkgo is working to turn it into a recurrent revenue business. Meanwhile, the cell-engineering unit's revenue has advanced more than 50% in the most recent quarter. And the company has more than $1 billion in cash, which it says should support it along the path to profitability.
In the early chapters of Ginkgo's growth story and for less than $2 a share, it's worth taking a chance on this innovative player.
2. Moderna
Moderna's (NASDAQ: MRNA) COVID-19 vaccine boosted the stock earlier in the pandemic. But in recent times, the vaccine has done just the opposite. With vaccination demand on the decline as we head toward a post-pandemic world, investors have fled the stock. But there's reason for you to go against the crowd and pick up shares of this biotech stock.
Today, Moderna depends on the coronavirus vaccine for all of its product revenue, but that probably won't be the case for long. The company has many late-stage candidates in development and aims to launch as many as 15 new products in the coming five years. These products could generate as much as $30 billion in revenue a few years post-launch, Moderna predicts.
Even if Moderna only reaches part of its product-release goal, we could be looking at significant revenue growth over time. Meanwhile, the coronavirus vaccine may not bring in as much in revenue as it did earlier in the pandemic, but it still could remain an important product, generating recurrent revenue each vaccination season.
All of this means Moderna looks like a steal today, trading at only 8.5 times forward-earnings estimates.
3. Etsy
Today's economic environment, weighing on the consumer's wallet, hasn't favored discretionary spending. And that's hurt Etsy's (NASDAQ: ETSY) earnings and share performance in recent times. Etsy's e-commerce platform connects sellers of handmade items with buyers.
But Etsy has managed the difficult times well, keeping all of the revenue growth it gained in the early stages of the pandemic when people favored shopping online. And Etsy has offered us some positive signs in its recent earnings reports. For example, in the third quarter, the company reported a profit and an increase in gross merchandise sales, and active customers reached a record high. Etsy also maintains a high level of cash, closing out the quarter with about $1.1 billion.
Finally, one key element to like about Etsy is its capital-light business structure. This means that, to grow, Etsy doesn't need to make huge capital investments. This is a major advantage as it maximizes the company's ability to generate free cash flow: In the most recent quarter, Etsy transformed about 90% of adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) into free cash flow.
All of this makes Etsy a bargain at about 18 times forward-earnings estimates and a stock you'll want to buy hand over fist as you wrap up your 2023 investment year.
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 Etsy and Pfizer. The Motley Fool recommends Moderna. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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This organism specialist has signed partnerships with many pharma companies, including heavyweight Pfizer, and has seen an increase in active programs -- both in the pharmaceutical industry and overall. But Etsy has managed the difficult times well, keeping all of the revenue growth it gained in the early stages of the pandemic when people favored shopping online. All of this makes Etsy a bargain at about 18 times forward-earnings estimates and a stock you'll want to buy hand over fist as you wrap up your 2023 investment year.
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Total active programs climbed 36% in the most recent quarter year over year, and pharma programs increased 50%. This is a major advantage as it maximizes the company's ability to generate free cash flow: In the most recent quarter, Etsy transformed about 90% of adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) into free cash flow. 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.
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All of this makes Etsy a bargain at about 18 times forward-earnings estimates and a stock you'll want to buy hand over fist as you wrap up your 2023 investment year. 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.
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Today, Moderna depends on the coronavirus vaccine for all of its product revenue, but that probably won't be the case for long. All of this means Moderna looks like a steal today, trading at only 8.5 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.
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b684238c-ca90-4a0c-8779-03cc212464ff
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712042.0
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2023-12-13 00:00:00 UTC
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Best Growth Stocks to Buy for December 13th
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DCOMP
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https://www.nasdaq.com/articles/best-growth-stocks-to-buy-for-december-13th-1
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Here are three stocks with buy ranks and strong growth characteristics for investors to consider today, December 13th:
Arcos Dorados Holdings Inc. ARCO: This franchisee of McDonald’s restaurants carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 9.3% over the last 60 days.
Arcos Dorados Holdings Inc. Price and Consensus
Arcos Dorados Holdings Inc. price-consensus-chart | Arcos Dorados Holdings Inc. Quote
Arcos Dorados has a PEG ratio of 1.17 compared with 2.32 for the industry. The company possesses a Growth Score of A.
Arcos Dorados Holdings Inc. PEG Ratio (TTM)
Arcos Dorados Holdings Inc. peg-ratio-ttm | Arcos Dorados Holdings Inc. Quote
LegalZoom.com, Inc. LZ: This online platform for legal and compliance solutions carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 17.7% over the last 60 days.
LegalZoom.com, Inc. Price and Consensus
LegalZoom.com, Inc. price-consensus-chart | LegalZoom.com, Inc. Quote
LegalZoom has a PEG ratio of 0.49 compared with 0.76 for the industry. The company possesses a Growth Score of A.
LegalZoom.com, Inc. PEG Ratio (TTM)
LegalZoom.com, Inc. peg-ratio-ttm | LegalZoom.com, Inc. Quote
Park Hotels & Resorts Inc. PK: This publicly traded lodging REIT carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 3.1% over the last 60 days.
Park Hotels & Resorts Inc. Price and Consensus
Park Hotels & Resorts Inc. price-consensus-chart | Park Hotels & Resorts Inc. Quote
Park has a PEG ratio of 0.74 compared with 1.80 for the industry. The company possesses a Growth Score of B.
Park Hotels & Resorts Inc. PEG Ratio (TTM)
Park Hotels & Resorts Inc. peg-ratio-ttm | Park Hotels & Resorts Inc. Quote
See the full list of top ranked stocks here.
Learn more about the Growth score and how it is calculated here.
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
LegalZoom.com, Inc. (LZ) : Free Stock Analysis Report
Arcos Dorados Holdings Inc. (ARCO) : Free Stock Analysis Report
Park Hotels & Resorts Inc. (PK) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Here are three stocks with buy ranks and strong growth characteristics for investors to consider today, December 13th: Arcos Dorados Holdings Inc. ARCO: This franchisee of McDonald’s restaurants carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 9.3% over the last 60 days. 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.
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The company possesses a Growth Score of A. Arcos Dorados Holdings Inc. PEG Ratio (TTM) Arcos Dorados Holdings Inc. peg-ratio-ttm | Arcos Dorados Holdings Inc. Quote LegalZoom.com, Inc. LZ: This online platform for legal and compliance solutions carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 17.7% over the last 60 days. Park Hotels & Resorts Inc. PEG Ratio (TTM) Park Hotels & Resorts Inc. peg-ratio-ttm | Park Hotels & Resorts Inc. Quote See the full list of top ranked stocks here. Click to get this free report LegalZoom.com, Inc. (LZ) : Free Stock Analysis Report Arcos Dorados Holdings Inc. (ARCO) : Free Stock Analysis Report Park Hotels & Resorts Inc. (PK) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Arcos Dorados Holdings Inc. Price and Consensus Arcos Dorados Holdings Inc. price-consensus-chart | Arcos Dorados Holdings Inc. Quote Arcos Dorados has a PEG ratio of 1.17 compared with 2.32 for the industry. The company possesses a Growth Score of A. Arcos Dorados Holdings Inc. PEG Ratio (TTM) Arcos Dorados Holdings Inc. peg-ratio-ttm | Arcos Dorados Holdings Inc. Quote LegalZoom.com, Inc. LZ: This online platform for legal and compliance solutions carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 17.7% over the last 60 days. Click to get this free report LegalZoom.com, Inc. (LZ) : Free Stock Analysis Report Arcos Dorados Holdings Inc. (ARCO) : Free Stock Analysis Report Park Hotels & Resorts Inc. (PK) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The company possesses a Growth Score of A. LegalZoom.com, Inc. PEG Ratio (TTM) LegalZoom.com, Inc. peg-ratio-ttm | LegalZoom.com, Inc. Quote Park Hotels & Resorts Inc. PK: This publicly traded lodging REIT carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 3.1% over the last 60 days. Download FREE: How To Profit From Trillions On Spending For Infrastructure >> Want the latest recommendations from Zacks Investment Research? Click to get this free report LegalZoom.com, Inc. (LZ) : Free Stock Analysis Report Arcos Dorados Holdings Inc. (ARCO) : Free Stock Analysis Report Park Hotels & Resorts Inc. (PK) : Free Stock Analysis Report To read this article on Zacks.com click here.
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13cd1ac2-2535-469a-9b17-2aa54941fc54
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712043.0
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2023-12-13 00:00:00 UTC
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Ferrari and Philip Morris to collaborate to cut carbon footprint of Italian plants
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DCOMP
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https://www.nasdaq.com/articles/ferrari-and-philip-morris-to-collaborate-to-cut-carbon-footprint-of-italian-plants
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nan
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MILAN, Dec 13 (Reuters) - Luxury sportscar maker Ferrari RACE.MI said on Wednesday it would work with tobacco company Philip Morris International (PMI) PM.N to study ways in which they could cut the carbon footprint of their factories in Italy's Emilia-Romagna region.
Ferrari, known globally for its roaring petrol engines and prancing horse logo, is developing its first fully-electric car, expected in late 2025, and has made a pledge to become carbon-neutral by 2030.
Its new collaboration with PMI, dubbed Ferrari E-Lab, aims to identify solutions for industrial electrification in the areas of generation, storage, and transformation of renewable energy, the automaker said in a statement.
Ferrari and PMI have had a strategic partnership since 1973, which mainly developed into the Marlboro cigarette maker's sponsorship of Ferrari's Formula One team.
The new project will target the two companies' production complexes, located respectively in Maranello and Crespellano, about 30 kilometres (19 miles) apart.
A first study will explore the viability of long-term energy storage technologies and should be completed by the end of September 2024, Ferrari added.
No further details, including operational or financial ones, were provided.
"Our companies will collaborate to research new technology solutions to develop and optimise the use of energy in our industrial processes," Ferrari CEO Benedetto Vigna said.
PMI is "particularly interested in exploring the potential (that) industrial electrification could play in our strategy," the company's Senior Vice President Operations Scott Coutts said.
Almost 5,000 people are employed at the Ferrari facility in its hometown of Maranello, while over 2,000 people work at PMI in Crespellano.
Ferrari is now developing a new assembly plant called 'e-building' in Maranello, where last year it also installed a fuel cell plant that produces electricity without combustion and supplies 5% of the energy required by production operations.
(Reporting by Giulio Piovaccari, editing by Alvise Armellini)
((giulio.piovaccari@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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MILAN, Dec 13 (Reuters) - Luxury sportscar maker Ferrari RACE.MI said on Wednesday it would work with tobacco company Philip Morris International (PMI) PM.N to study ways in which they could cut the carbon footprint of their factories in Italy's Emilia-Romagna region. Ferrari, known globally for its roaring petrol engines and prancing horse logo, is developing its first fully-electric car, expected in late 2025, and has made a pledge to become carbon-neutral by 2030. Its new collaboration with PMI, dubbed Ferrari E-Lab, aims to identify solutions for industrial electrification in the areas of generation, storage, and transformation of renewable energy, the automaker said in a statement.
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A first study will explore the viability of long-term energy storage technologies and should be completed by the end of September 2024, Ferrari added. "Our companies will collaborate to research new technology solutions to develop and optimise the use of energy in our industrial processes," Ferrari CEO Benedetto Vigna said. Almost 5,000 people are employed at the Ferrari facility in its hometown of Maranello, while over 2,000 people work at PMI in Crespellano.
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MILAN, Dec 13 (Reuters) - Luxury sportscar maker Ferrari RACE.MI said on Wednesday it would work with tobacco company Philip Morris International (PMI) PM.N to study ways in which they could cut the carbon footprint of their factories in Italy's Emilia-Romagna region. Ferrari and PMI have had a strategic partnership since 1973, which mainly developed into the Marlboro cigarette maker's sponsorship of Ferrari's Formula One team. Ferrari is now developing a new assembly plant called 'e-building' in Maranello, where last year it also installed a fuel cell plant that produces electricity without combustion and supplies 5% of the energy required by production operations.
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MILAN, Dec 13 (Reuters) - Luxury sportscar maker Ferrari RACE.MI said on Wednesday it would work with tobacco company Philip Morris International (PMI) PM.N to study ways in which they could cut the carbon footprint of their factories in Italy's Emilia-Romagna region. Ferrari, known globally for its roaring petrol engines and prancing horse logo, is developing its first fully-electric car, expected in late 2025, and has made a pledge to become carbon-neutral by 2030. Its new collaboration with PMI, dubbed Ferrari E-Lab, aims to identify solutions for industrial electrification in the areas of generation, storage, and transformation of renewable energy, the automaker said in a statement.
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2040712c-cf4c-4a62-ba71-7bb8f0530908
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712044.0
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2023-12-13 00:00:00 UTC
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Warren Buffett Is Raking In Nearly $3.5 Billion in Annual Dividend Income From Just 4 Stocks
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DCOMP
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https://www.nasdaq.com/articles/warren-buffett-is-raking-in-nearly-%243.5-billion-in-annual-dividend-income-from-just-4
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It's safe to say that Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett knows a thing or two about investing. In his 58 years at the helm, he's overseen a greater than 4,300,000% aggregate gain in Berkshire's Class A shares (BRK.A), as well as doubled up the annualized total return, including dividends, of the widely followed S&P 500.
Lengthy books have been written on the core philosophies the Oracle of Omaha lives by, which includes thinking long-term and buying into great businesses with sustained catalysts at a fair price.
Berkshire Hathaway CEO Warren Buffett. Image source: The Motley Fool.
But what doesn't receive nearly enough credit for Buffett's nearly six decades of investment success is his penchant for buying dividend stocks. Companies that pay a regular dividend to their shareholders are usually profitable and time-tested. What's more, income stocks have a history of running circles around public companies that don't offer a payout in the return department.
A majority of the stocks currently held by Berkshire Hathaway pay a dividend, with Buffett's company set to collect close to $6 billion in income over the coming 12 months.
But what's truly surprising is how much of this income will derive from a small number of holdings. Warren Buffett and his team are set to rake in nearly $3.5 billion in annual dividend income from just four stocks over the next year.
Bank of America: $991,537,926 in annual dividend income
Berkshire Hathaway's No. 2 holding by market value, Bank of America (NYSE: BAC), will be doing the heaviest lifting of all when it comes to providing dividend income. The more than 1.03 billion shares Buffett's company owns of BofA will translate into almost $992 million in dividend income over the next 12 months.
The lure of bank stocks for Buffett has always been their cyclical ties and the recurring need for financial services. Though banks are cyclical, and will therefore contend with higher delinquency rates and loan losses during recessions, periods of economic expansion last considerably longer than downturns. Rather than foolishly trying to time when these downturns will occur, Buffett has wisely positioned Berkshire Hathaway in high-quality financial stocks, like BofA, to take advantage of long-winded expansions.
But there's more to Berkshire's No. 2 holding than just macroeconomic factors. Bank of America is also the most interest rate-sensitive of America's largest banks by assets. When interest rates change, no bank is more impacted than BofA.
Since March 2022, the nation's central bank has increased the federal funds rate by 525 basis points, which is the fastest pace of rate hikes in more than four decades. Every rate hike is leading to billions of dollars in added net interest income each quarter.
As I've previously pointed out, BofA has done an admirable job of digitizing its platform. Online and mobile-based transactions are considerably cheaper than in-person interactions. As more of its customers utilize digital transactions, Bank of America will be able to consolidate some of its physical branches and lower its expenses.
Apple: $878,937,967 in annual dividend income
Perhaps it comes as no surprise that tech stock Apple (NASDAQ: AAPL) plays a key role in Berkshire Hathaway's dividend income collection. Apple accounted for 49% of the company's nearly $366 billion of invested assets as of the closing bell on Dec. 8, 2023, making it the biggest holding by a considerable amount in Buffett's portfolio.
The $15 billion Apple is doling out in dividends annually is a reflection of its top-notch branding, as well as its cutting-edge innovation.
According to Kantar's 2023 BrandZ Rankings, Apple is the world's most valuable brand. It has an exceptionally loyal customer base, along with phenomenal pricing power. Meanwhile, Interbrand has listed Apple as the world's "best brand" for 11 consecutive years.
Beyond brand value, Apple is riding high thanks to its innovation. It's been a leading provider of smartphones for more than a decade, and it's led the way with tablets via the iPad. Moreover, CEO Tim Cook is overseeing the steady transition of Apple into a platforms-focused company. A subscription-driven model will further enhance customer loyalty and meaningfully improve the company's operating margin over the long term.
I'd be remiss if I didn't also mention Apple's unsurpassed capital-return program. In addition to its massive nominal-dollar dividend, Apple has repurchased in excess of $600 billion worth of its common stock since the start of 2013. Buffett has always appreciated a rock-solid share-buyback program.
Image source: Getty Images.
Occidental Petroleum: $843,396,739 in annual dividend income (including preferred stock dividends)
Buffett and his team will be raking in a boatload of dividend income from energy stock Occidental Petroleum (NYSE: OXY) over the next 12 months, with this income coming from two separate channels.
Berkshire Hathaway is expected to receive $164.2 million in dividend income from the nearly 228.1 million shares of Occidental common stock it owns. Every single share of common stock has been purchased since the start of 2022.
Buffett's company also holds $8.49 billion of preferred stock in Occidental yielding 8% that'll generate around $679.2 million in annual income. Berkshire originally held $10 billion in preferred stock tied to a 2019 deal that helped Occidental acquire Anadarko. However, Occidental has redeemed $1.51 billion of this preferred position, through Nov. 7.
What makes Occidental such an attractive investment to Buffett and his team is the expectation that the spot price of crude oil will remain above its historic average. Supporting this thesis is Russia's war with Ukraine, along with three years of capital underinvestment by energy companies caused by the COVID-19 pandemic. As long as crude oil supply remains tight, there's a good likelihood that the spot price of crude oil will stay elevated.
A higher spot price for crude oil is especially important for Occidental Petroleum. Although it's an integrated energy company, it generates the lion's share of its revenue from its drilling operations. This is to say that if the spot price of crude oil increases, Occidental's operating cash flow will benefit more than most other integrated oil and gas operators. Just keep in mind that the reciprocal would also be true -- a declining spot price for crude oil will disproportionately hurt Occidental's operating cash flow.
Coca-Cola: $736,000,000 in annual dividend income
The fourth stock that, collectively with Bank of America, Apple, and Occidental Petroleum, allows Buffett to rake in nearly $3.5 billion in annual dividend income is beverage stock Coca-Cola (NYSE: KO). Coca-Cola has raised its base annual payout for 61 consecutive years, and it's Berkshire's longest continuous holding (since 1988).
One reason Coke is such a phenomenal income producer is that it's a consumer staples stock. Regardless of how well or poorly the U.S. and global economy perform, consumers are going to need food and beverages. This creates a predictable demand floor for Coca-Cola each year.
Branding is another catalyst for Coca-Cola and its rock-solid payout. Coca-Cola has topped the annually released "Brand Footprint" report from Kantar as the most chosen brand for 10 years running, as of 2022. Coke has a well-recognized logo and its top-notch marketing efforts have helped it connect with young and mature audiences alike for decades.
Equally important, Coca-Cola brings virtually unmatched geographic diversity to the table. With the exception of North Korea, Cuba, and Russia (the latter of which is due to its aforementioned ongoing war with Ukraine), Coke is operating in every other country around the globe. It has 26 brands generating at least $1 billion in annual sales, and it's able to rely on emerging markets for a proverbial shot in the arm of organic growth.
Berkshire Hathaway's cost basis for its Coca-Cola shares is just $3.2475. Based on its $1.84-per-share annual payout, Buffett's company is netting almost a 57% yield on cost. Put another way, Coca-Cola's dividend income alone is more than doubling Berkshire's initial investment in the company every two years.
Should you invest $1,000 in Bank of America right now?
Before you buy stock in Bank of America, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Bank of America wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
See the 10 stocks
*Stock Advisor returns as of December 7, 2023
Bank of America is an advertising partner of The Ascent, a Motley Fool company. Sean Williams has positions in Bank of America. The Motley Fool has positions in and recommends Apple, Bank of America, and Berkshire Hathaway. The Motley Fool recommends Occidental Petroleum and recommends the following options: long January 2024 $47.50 calls on Coca-Cola. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In his 58 years at the helm, he's overseen a greater than 4,300,000% aggregate gain in Berkshire's Class A shares (BRK.A), as well as doubled up the annualized total return, including dividends, of the widely followed S&P 500. Lengthy books have been written on the core philosophies the Oracle of Omaha lives by, which includes thinking long-term and buying into great businesses with sustained catalysts at a fair price. Rather than foolishly trying to time when these downturns will occur, Buffett has wisely positioned Berkshire Hathaway in high-quality financial stocks, like BofA, to take advantage of long-winded expansions.
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A majority of the stocks currently held by Berkshire Hathaway pay a dividend, with Buffett's company set to collect close to $6 billion in income over the coming 12 months. Occidental Petroleum: $843,396,739 in annual dividend income (including preferred stock dividends) Buffett and his team will be raking in a boatload of dividend income from energy stock Occidental Petroleum (NYSE: OXY) over the next 12 months, with this income coming from two separate channels. Coca-Cola: $736,000,000 in annual dividend income The fourth stock that, collectively with Bank of America, Apple, and Occidental Petroleum, allows Buffett to rake in nearly $3.5 billion in annual dividend income is beverage stock Coca-Cola (NYSE: KO).
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Occidental Petroleum: $843,396,739 in annual dividend income (including preferred stock dividends) Buffett and his team will be raking in a boatload of dividend income from energy stock Occidental Petroleum (NYSE: OXY) over the next 12 months, with this income coming from two separate channels. Coca-Cola: $736,000,000 in annual dividend income The fourth stock that, collectively with Bank of America, Apple, and Occidental Petroleum, allows Buffett to rake in nearly $3.5 billion in annual dividend income is beverage stock Coca-Cola (NYSE: KO). Before you buy stock in Bank of America, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Bank of America wasn't one of them.
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Bank of America: $991,537,926 in annual dividend income Berkshire Hathaway's No. Buffett's company also holds $8.49 billion of preferred stock in Occidental yielding 8% that'll generate around $679.2 million in annual income. Branding is another catalyst for Coca-Cola and its rock-solid payout.
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55200bde-adfb-438d-b8a7-2095f4af7956
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712045.0
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2023-12-13 00:00:00 UTC
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A Bull Market Is Coming: 1 Stock-Split AI Growth Stock to Buy Now With $150 and Hold Forever
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DCOMP
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https://www.nasdaq.com/articles/a-bull-market-is-coming%3A-1-stock-split-ai-growth-stock-to-buy-now-with-%24150-and-hold
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Stock splits tend to happen after substantial and sustained share price appreciation, which rarely happens by accident. Indeed, when shares appreciate to the point where a stock split is necessary, it usually hints at some desirable quality in the underlying business, and that quality does not disappear after the split takes place.
In other words, winners tend to keep on winning. The companies listed below provide proof. All of them split their stocks in the last three years, and all of them outperformed the S&P 500 (SNPINDEX: ^GSPC) over the last five years.
Amazon: 20-for-1 split in June 2022
Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG): 20-for-1 split in July 2022
Nvidia: 4-for-1 split July 2021
Palo Alto Networks: 3-for-1 split in September 2022
Shopify: 10-for-1 split in June 2022
Tesla: 3-for-1 split in August 2022
The Trade Desk: 10-for-1 splits in June 2021
There are compelling reasons to own any of the stocks listed above, but Alphabet looks particularly attractive right now. The stock trades at less than $150 per share, making it widely affordable, and its valuation fails to fully account for growth prospects in digital advertising, cloud computing, and artificial intelligence (AI).
Moreover, now is a good time to put money into stocks. The S&P 500 is just four percentage points shy of bull market territory. That threshold is meaningful, because the index returned an average of 169% during past bull markets, and many stocks will undoubtedly soar during the next one.
How Alphabet makes money
Alphabet primarily makes money through Google, a subsidiary that recognizes two major revenue streams: (1) Google Services primarily consists of advertising through Google Search, YouTube, and third-party publishers, and (2) Google Cloud includes cloud infrastructure and platform services through Google Cloud Platform, and office productivity software through Google Workspace.
The chart below shows quarterly revenue in Google Services and Google Cloud over the last three years. It also shows the compound annual growth rate (CAGR) for each segment during that time.
Chart by Author.
The investment thesis for Alphabet centers on its leadership in digital advertising and its strong presence in cloud computing, two markets projected to grow quickly in the future. Specifically, Precedence Research expects the digital ad market to increase at 9.7% annually through 2032, while the cloud computing market should expand at 17% annually during the same period.
Alphabet is also leaning into machine learning (ML) and artificial intelligence (AI) across Google Services and Google Cloud to cement its strong position and extend its market share.
Google is the market leader in digital advertising
Google has a somewhat unique ability to engage consumers and source data due to its many popular platforms and web properties. The most widely adopted are Google Search, YouTube, and Android, but the company owns six products that serve over 2 billion users globally. That makes Google an irreplaceable advertising partner for brands, so much so that it holds about 29% market share in digital advertising worldwide.
Consultancy Gartner says Google is a leader in AI research, and the company is bringing that expertise to bear on its advertising ecosystem. For instance, Google is blending generative AI features into Google Search to improve the user experience and create new opportunities for advertisers to reach consumers. Google is also adding generative AI capabilities to Google Ads to automate marketing workflows like media content creation and copywriting.
Ultimately, that type of innovation could help Google maintain its dominance in digital advertising, and even extend its already prodigious market share.
Google is gaining market share in cloud computing
Google is the third-largest cloud infrastructure and platform services (CIPS) provider. It still trails Amazon and Microsoft by a wide margin, but the company has steadily gained market share due to investments in product development and go-to-market capabilities. Google Cloud Platform accounted for 11% of CIPS spending in the third quarter, up from 7% three years earlier.
Two areas where Google excels are big data and AI/ML. The company is a recognized leader in the AI infrastructure services market, and it has a strong presence in strategic platform services and cloud AI developer services. Management has outlined a product roadmap that plays into those strengths.
In March, Google began adding generative AI support to Vertex AI, its platform for training and deploying ML models and applications. Developers can now access and customize a growing list of pretrained models -- including PaLM 2 and Gemini from Google -- and incorporate them into generative AI applications for text, images, video, and audio.
In August, Google launched Duet AI for Google Workspace, a natural language interface that can automate workflows across its office productivity software. For instance, Duet AI can draft text in Google Docs, review emails in Gmail, create presentations in Google Slides, and organize data in Google Sheets.
Collectively, those AI innovations could draw more businesses to Google Cloud products in the coming years, and they could help the company better monetize its existing customers.
Why Alphabet stock is worth buying
To summarize, digital ad spending is forecast to increase by nearly 10% annually through 2032, and cloud computing spending is expected to increase by 17% annually during the same period. Alphabet has a strong presence in both spaces, so the company has a great shot at low-double-digit revenue growth during the next decade. Its historical financial performance backs that assessment.
With that in mind, its current valuation of 5.9 times sales looks relatively cheap, especially when the three-year and 10-year averages are both 6.4 times sales. Patient investors willing to hold their shares for at least five years should feel very comfortable buying a small position in this growth stock today.
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 7, 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. Trevor Jennewine has positions in Amazon, Nvidia, Shopify, Tesla, and The Trade Desk. The Motley Fool has positions in and recommends Alphabet, Amazon, Microsoft, Nvidia, Palo Alto Networks, Shopify, Tesla, and The Trade Desk. The Motley Fool recommends Gartner. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The stock trades at less than $150 per share, making it widely affordable, and its valuation fails to fully account for growth prospects in digital advertising, cloud computing, and artificial intelligence (AI). The investment thesis for Alphabet centers on its leadership in digital advertising and its strong presence in cloud computing, two markets projected to grow quickly in the future. Developers can now access and customize a growing list of pretrained models -- including PaLM 2 and Gemini from Google -- and incorporate them into generative AI applications for text, images, video, and audio.
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Amazon: 20-for-1 split in June 2022 Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG): 20-for-1 split in July 2022 Nvidia: 4-for-1 split July 2021 Palo Alto Networks: 3-for-1 split in September 2022 Shopify: 10-for-1 split in June 2022 Tesla: 3-for-1 split in August 2022 The Trade Desk: 10-for-1 splits in June 2021 There are compelling reasons to own any of the stocks listed above, but Alphabet looks particularly attractive right now. How Alphabet makes money Alphabet primarily makes money through Google, a subsidiary that recognizes two major revenue streams: (1) Google Services primarily consists of advertising through Google Search, YouTube, and third-party publishers, and (2) Google Cloud includes cloud infrastructure and platform services through Google Cloud Platform, and office productivity software through Google Workspace. The Motley Fool has positions in and recommends Alphabet, Amazon, Microsoft, Nvidia, Palo Alto Networks, Shopify, Tesla, and The Trade Desk.
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Amazon: 20-for-1 split in June 2022 Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG): 20-for-1 split in July 2022 Nvidia: 4-for-1 split July 2021 Palo Alto Networks: 3-for-1 split in September 2022 Shopify: 10-for-1 split in June 2022 Tesla: 3-for-1 split in August 2022 The Trade Desk: 10-for-1 splits in June 2021 There are compelling reasons to own any of the stocks listed above, but Alphabet looks particularly attractive right now. How Alphabet makes money Alphabet primarily makes money through Google, a subsidiary that recognizes two major revenue streams: (1) Google Services primarily consists of advertising through Google Search, YouTube, and third-party publishers, and (2) Google Cloud includes cloud infrastructure and platform services through Google Cloud Platform, and office productivity software through Google Workspace. Alphabet is also leaning into machine learning (ML) and artificial intelligence (AI) across Google Services and Google Cloud to cement its strong position and extend its market share.
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How Alphabet makes money Alphabet primarily makes money through Google, a subsidiary that recognizes two major revenue streams: (1) Google Services primarily consists of advertising through Google Search, YouTube, and third-party publishers, and (2) Google Cloud includes cloud infrastructure and platform services through Google Cloud Platform, and office productivity software through Google Workspace. Google is gaining market share in cloud computing Google is the third-largest cloud infrastructure and platform services (CIPS) provider. The company is a recognized leader in the AI infrastructure services market, and it has a strong presence in strategic platform services and cloud AI developer services.
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cf7153a0-9d4e-4397-852d-ba9c13f4d395
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712046.0
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2023-12-13 00:00:00 UTC
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Telefonica Deutschland: Management, Supervisory Boards Recommend Acceptance Of Acquisition Offer
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DCOMP
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https://www.nasdaq.com/articles/telefonica-deutschland%3A-management-supervisory-boards-recommend-acceptance-of-acquisition
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(RTTNews) - The Management Board and the Supervisory Board of Telefonica Deutschland (TELDF.OB, TFTHF.OB) issued their Joint Reasoned Statement on the voluntary public acquisition offer by Telefonica Local Services GmbH, of which Telefonica, S.A. is the sole shareholder, for all shares of Telefonica Deutschland not directly held by Telefonica Local Services against a cash consideration of 2.35 euros per share. The Management Board and the Supervisory Board consider the offer to be fair from a financial point of view.
The acceptance period for the offer has commenced with the publication of the offer document on 5 December 2023, and is expected to expire on 17 January 2024.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - The Management Board and the Supervisory Board of Telefonica Deutschland (TELDF.OB, TFTHF.OB) issued their Joint Reasoned Statement on the voluntary public acquisition offer by Telefonica Local Services GmbH, of which Telefonica, S.A. is the sole shareholder, for all shares of Telefonica Deutschland not directly held by Telefonica Local Services against a cash consideration of 2.35 euros per share. The acceptance period for the offer has commenced with the publication of the offer document on 5 December 2023, and is expected to expire on 17 January 2024. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - The Management Board and the Supervisory Board of Telefonica Deutschland (TELDF.OB, TFTHF.OB) issued their Joint Reasoned Statement on the voluntary public acquisition offer by Telefonica Local Services GmbH, of which Telefonica, S.A. is the sole shareholder, for all shares of Telefonica Deutschland not directly held by Telefonica Local Services against a cash consideration of 2.35 euros per share. The Management Board and the Supervisory Board consider the offer to be fair from a financial point of view. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - The Management Board and the Supervisory Board of Telefonica Deutschland (TELDF.OB, TFTHF.OB) issued their Joint Reasoned Statement on the voluntary public acquisition offer by Telefonica Local Services GmbH, of which Telefonica, S.A. is the sole shareholder, for all shares of Telefonica Deutschland not directly held by Telefonica Local Services against a cash consideration of 2.35 euros per share. The Management Board and the Supervisory Board consider the offer to be fair from a financial point of view. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - The Management Board and the Supervisory Board of Telefonica Deutschland (TELDF.OB, TFTHF.OB) issued their Joint Reasoned Statement on the voluntary public acquisition offer by Telefonica Local Services GmbH, of which Telefonica, S.A. is the sole shareholder, for all shares of Telefonica Deutschland not directly held by Telefonica Local Services against a cash consideration of 2.35 euros per share. The Management Board and the Supervisory Board consider the offer to be fair from a financial point of view. The acceptance period for the offer has commenced with the publication of the offer document on 5 December 2023, and is expected to expire on 17 January 2024.
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b68d0443-5b9a-45bd-a159-4eee92a87422
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712047.0
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2023-12-13 00:00:00 UTC
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Virtual Reality: 3 Stocks Creating New Worlds
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DCOMP
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https://www.nasdaq.com/articles/virtual-reality%3A-3-stocks-creating-new-worlds
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
In November 2023, the U.S. economy added 199,000 jobs, exceeding Wall Street predictions. Notably, overall employment now stands 2 million jobs higher than projected in January 2020 by the Congressional Budget Office. Additionally, the unemployment rate, anticipated to be 4.2 percent by the end of 2023, is currently at a near half-century low of 3.7 percent, showcasing the remarkable resilience and outperformance of the labor market. With the American economy increasingly performing better, now is the time to invest in the future of innovation and growth. Buy these virtual reality stocks to add great value to your portfolios in 2024.
Qualcomm (QCOM)
Source: Xixi Fu / Shutterstock.com
Qualcomm (NASDAQ:QCOM) is a semiconductor and software company, that also creates extended reality device processing units.
QCOM has robust financials. The company posted $8.6 billion revenue for Q4 2023, beating analyst expectations by $145.3 million. They also had signs of profitability with a 55.7% gross profit margin and a 27.4% levered FCF margin, both well above the sector median.
Qualcomm has partnered with BMW (OTCMKTS:BMWYY) to integrate its Snapdragon Digital Chassis Solution into BMW automobiles. This integration improves the user experience providing 5G connectivity to passengers and eventually will create autonomous driving capabilities for BMW cars. Qualcomm is also set to release a new, high-power processing unit in Q1 2024. A higher capability extended reality chip that can be mass-produced can improve both AR and VR experiences at an affordable price to customers.
All of these factors make Qualcomm one of the virtual reality stocks that investors want to buy ASAP.
Meta Platforms (META)
Source: Aleem Zahid Khan / Shutterstock.com
Meta Platforms (NASDAQ:META) is known for its major products, such as Facebook, Instagram, Oculus and Whatsapp. Many of their products are designed to connect people with their friends, families and co-workers across the world. And help them discover new products and services from local and global businesses while they are at it. META stock has been seeing strong recent growth, as the stock is up 154.49% YTD.
Recent financials for Meta have been sturdy. Their revenue in Q3 2023 of $34.15 billion was a increase of 23% year-over-year (YOY), beating the analyst expectations. The diluted EPS grew 167.68% YOY, its net income grew by 163.55%, and its net change in cash grew by 113.87%.
On Instagram and Facebook, Meta gains its profit from selling ads. One of Meta’s latest projects is a partnership with Amazon (NASDAQ:AMZN). The goal is to allow users to seamlessly shop and checkout on Amazon through Amazon ads placed on Meta products. This arrangement should benefit both Meta and Amazon and the users as it makes the shopping experience quicker and more convenient. The collaboration with Amazon will reinforce Meta Platforms’ bottom line.
Investors should buy in on META stock as the company is positioned to take over the global social media market.
Matterport (MTTR)
Source: II.studio / Shutterstock.com
Matterport (NASDAQ:MTTR) is the leading spatial data company that enables users to digitize their building, automatically create 3D tours, 4K print quality photos and more.
The company reported solid Q3 2023 financials, with a 6.97% YOY increase in revenue to $40.6 million. The company also recorded the highest revenue generated from its subscription model, reaching a record high of $22.9 million, a 20% YOY boost.
During Q3 2023, MTTR launched a new next-gen AI-powered real estate program, now running in beta. This program enables users to automate room measurements and layouts. This automation processes millions of 3D data points eliminating the need for manual measurements and reporting. The company also announced new collaborations and partnerships with many companies.
MTTR’s stock represents a good investment opportunity among virtual reality stocks due to its strong financial results, its new AI-powered real estate program and multiple collaborations and partnerships.
On the date of publication, Michael Que 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.
The researchers contributing to this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.
Michael Que is a financial writer with extensive experience in the technology industry, with his work featured on Seeking Alpha, Benzinga and MSN Money. He is the owner of Que Capital, a research firm that combines fundamental analysis with ESG factors to pick the best sustainable long-term investments.
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The post Virtual Reality: 3 Stocks Creating New Worlds appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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This integration improves the user experience providing 5G connectivity to passengers and eventually will create autonomous driving capabilities for BMW cars. More From InvestorPlace ChatGPT IPO Could Shock the World, Make This Move Before the Announcement Musk’s “Project Omega” May Be Set to Mint New Millionaires. The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors The post Virtual Reality: 3 Stocks Creating New Worlds appeared first on InvestorPlace.
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The company posted $8.6 billion revenue for Q4 2023, beating analyst expectations by $145.3 million. Matterport (MTTR) Source: II.studio / Shutterstock.com Matterport (NASDAQ:MTTR) is the leading spatial data company that enables users to digitize their building, automatically create 3D tours, 4K print quality photos and more. MTTR’s stock represents a good investment opportunity among virtual reality stocks due to its strong financial results, its new AI-powered real estate program and multiple collaborations and partnerships.
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Qualcomm (QCOM) Source: Xixi Fu / Shutterstock.com Qualcomm (NASDAQ:QCOM) is a semiconductor and software company, that also creates extended reality device processing units. Meta Platforms (META) Source: Aleem Zahid Khan / Shutterstock.com Meta Platforms (NASDAQ:META) is known for its major products, such as Facebook, Instagram, Oculus and Whatsapp. MTTR’s stock represents a good investment opportunity among virtual reality stocks due to its strong financial results, its new AI-powered real estate program and multiple collaborations and partnerships.
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META stock has been seeing strong recent growth, as the stock is up 154.49% YTD. Investors should buy in on META stock as the company is positioned to take over the global social media market. The company reported solid Q3 2023 financials, with a 6.97% YOY increase in revenue to $40.6 million.
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087516bc-c4e3-4b30-8177-a923c6cf8e01
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712048.0
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2023-12-13 00:00:00 UTC
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Generative Artificial Intelligence (AI) Is Exploding: 2 Stocks to Snag Now
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DCOMP
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https://www.nasdaq.com/articles/generative-artificial-intelligence-ai-is-exploding%3A-2-stocks-to-snag-now-0
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nan
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Artificial intelligence (AI) comes in different forms, but generative AI has been the focus for most mainstream developers this year. It's one of the few AI segments already bringing in revenue thanks to its ability to instantly create text, images, videos, and computer code, which consumers and businesses are finding incredibly valuable.
Startups like OpenAI (the creator of ChatGPT) and Anthropic have led the way on generative AI, but it's spreading through the technology sector like wildfire, with some of the world's largest companies investing billions of dollars in development. Two publicly traded companies emerging as superpowers in the generative AI industry are Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) and C3.ai (NYSE: AI).
Here's why investors should consider buying stakes in both of them right now.
Image source: Alphabet (Google).
1. Alphabet (Google) just unveiled Gemini, its most powerful AI so far
Alphabet has been working on AI for years. In fact, Google purchased DeepMind, a research and development company focused on building AI responsibly, way back in 2014. Nevertheless, investors still believed Alphabet was behind the curve when Microsoft (NASDAQ: MSFT) swooped in to acquire a $10 billion stake in OpenAI roughly a year ago.
Microsoft quickly integrated ChatGPT into its Bing search engine. It was initially perceived as a threat to the dominance of Google Search, which has a 91% market share. Simply put, prompting an AI chatbot for answers is a more convenient way to find information than entering a query into a traditional search engine and sifting through web pages.
Alphabet launched a speedy response to that threat. It now has a chatbot of its own called Bard, but the company also embedded AI into the traditional Google Search experience. Now, when users enter a query, the search engine often provides a text-based response at the top of the page to save them from clicking through to different web results.
Alphabet also just launched Gemini, the company's most powerful generative AI model yet. According to the company, it's the first model ever to outperform human experts on an MMLU (Massive Multitask Language Understanding) basis. In other words, it's smarter than humans in many academic disciplines like elementary mathematics, U.S. history, and computer science (among others).
Most importantly, Alphabet management says Gemini outperforms OpenAI's most advanced GPT-4 model across most text-based and multimodal (image, video, and audio) tasks. In a series of demonstrations, Gemini displayed an ability to understand all of those media formats with powerful reasoning. For example, when shown a drawing of a guitar, Gemini identified it and played its sound. When the user added a drawing of an amplifier, Gemini understood how that changed the guitar's sound.
Alphabet is monetizing its AI technology through its cloud computing platform for businesses, Google Cloud. But Microsoft is already seeing success embedding AI into applications like Word and Excel in exchange for an additional monthly fee. Considering there are an estimated 1.8 billion Gmail users and over 1 billion Google Docs users worldwide, Alphabet has a substantial monetization opportunity ahead.
Alphabet is on track to deliver $5.74 in earnings per share in 2023 (ending Dec. 31), giving its stock a price to earnings (P/E) ratio of just 23.4. That's cheaper than both Microsoft stock and the Nasdaq-100 index, which trade at P/E ratios of 36.2 and 28.3, respectively, making Alphabet one of the best value plays in the AI space.
2. C3.ai is an AI pioneer, and its sales growth is ramping up
C3.ai was founded in 2009 and it was an early provider of enterprise AI solutions. Today, it offers businesses over 40 different turnkey AI applications to help them harness the power of the technology without having to build it from scratch, which takes considerable time and resources. C3.ai specializes in predictive AI; its models help banks fight fraud, and they help oil and gas companies monitor thousands of pieces of equipment to help prevent failures.
The company launched C3 Generative AI earlier this year to capture the growing opportunity created by applications like ChatGPT. It's a highly advanced tool specifically designed for enterprises; almost any organization within any industry can embed it into their operations to create a powerful virtual assistant tailored to the specific needs of their business.
C3 Generative AI can ingest both structured and unstructured data, the latter of which is found in Word documents, PDFs, invoices, contracts, and other mediums. The company says two-thirds of data within most organizations is never utilized primarily because it's unstructured, but users can upload almost any document type to this new platform. From there, they can use the intuitive search and chat interface to generate more valuable and actionable insights than ever before.
C3.ai sells its AI applications to businesses directly, but it also has an extensive partner network that includes cloud giants like Google Cloud, Microsoft Azure, and Amazon Web Services (AWS). It just expanded its collaboration with AWS by creating C3 Generative AI: AWS Marketplace Edition, which will make C3.ai's generative AI directly available to millions of businesses on the world's largest cloud platform.
C3.ai is currently transitioning away from a subscription-based revenue model toward a consumption one instead, so that businesses only pay for what they use. This will dramatically reduce the time C3.ai spends negotiating with new customers, allowing them to sign up far more quickly.
This shift initially caused a slowdown in C3.ai's revenue growth (by design) while existing customers converted, but in the recent fiscal 2024 second quarter (ended Oct. 31), the company's sales jumped 17% year over year, which was the fastest pace in more than a year.
It could accelerate even further in the coming quarters, so investors have an opportunity to buy C3.ai stock right now ahead of a potential upswing in its business.
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 7, 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. Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, and Microsoft. The Motley Fool recommends C3.ai. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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It's one of the few AI segments already bringing in revenue thanks to its ability to instantly create text, images, videos, and computer code, which consumers and businesses are finding incredibly valuable. Startups like OpenAI (the creator of ChatGPT) and Anthropic have led the way on generative AI, but it's spreading through the technology sector like wildfire, with some of the world's largest companies investing billions of dollars in development. Simply put, prompting an AI chatbot for answers is a more convenient way to find information than entering a query into a traditional search engine and sifting through web pages.
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Alphabet is monetizing its AI technology through its cloud computing platform for businesses, Google Cloud. C3.ai sells its AI applications to businesses directly, but it also has an extensive partner network that includes cloud giants like Google Cloud, Microsoft Azure, and Amazon Web Services (AWS). Before you buy stock in Alphabet, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Alphabet wasn't one of them.
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Two publicly traded companies emerging as superpowers in the generative AI industry are Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) and C3.ai (NYSE: AI). Alphabet (Google) just unveiled Gemini, its most powerful AI so far Alphabet has been working on AI for 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.
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Alphabet also just launched Gemini, the company's most powerful generative AI model yet. Alphabet is monetizing its AI technology through its cloud computing platform for businesses, Google Cloud. Before you buy stock in Alphabet, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Alphabet wasn't one of them.
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3752a7d9-05f2-4b19-8c98-5af95c3c197e
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712049.0
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2023-12-13 00:00:00 UTC
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Waste Management Boosts Its Dividend: What Investors Should Know
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DCOMP
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https://www.nasdaq.com/articles/waste-management-boosts-its-dividend%3A-what-investors-should-know
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Waste Management (NYSE: WM) is flexing this week. Unfazed by the uncertain economy, the resilient trash, recycling, and natural gas business announced a 7.1% increase to its quarterly dividend rate and authorized $1.5 billion for share repurchases.
"The strong and consistent cash flow generation of our business allows WM to continue to fund all our capital allocation priorities," said Waste Management CEO Jim Fish in a press release on Monday.
Here's a closer look at WM's capital return program and why the company is confident enough to pay out even more capital to shareholders -- both directly and indirectly.
Returning cash to shareholders
WM's boosted dividend comes in at $0.75 per quarter, up from $0.70. This translates to $3 annually, giving the stock a dividend yield of 1.6%. Notably, this dividend yield currently exceeds the S&P 500's dividend yield of about 1.5%.
Long-term WM shareholders have been rewarded with an extended stretch of dividend growth. The company's latest increase marks the company's 21st consecutive year of dividend increases. More importantly, dividend growth should persist in the coming years. WM's payout ratio, or its trailing-12-month dividend payments as a percentage of earnings, is less than 50%. This means there's plenty of wiggle room for further increases, even if the company's earnings growth stalls.
Further, when paired with WM's steady and reliable cash flow stream, a payout ratio this low gives WM enough flexibility to return cash to shareholders in more ways than one. WM also said on Monday that it is refreshing its share repurchase authorization, announcing a new authorization of $1.5 billion to replace its previous $1.5 program. If the waste management specialist keeps up its current pace of buybacks, it will likely repurchase more than $1 billion worth of stock (management said it repurchased a total of $1.3 billion in 2023). A repurchase program this substantial will put a nice dent in share count over time, as WM's current market capitalization is just over $71 billion.
A resilient growth story
Fortunately, there's good reason to expect robust earnings and free cash flow growth from WM in the coming years. Signaling its growth aspirations to investors, the company changed its name from branding from its official name of Waste Management to just WM in 2022 as it is increasingly aiming to be much more than a waste company. WM has been making substantial investments in renewable natural gas (RNG) production -- created using processed biogas collected from its sprawling landfill network -- which is utilized by its fleet of trash trucks and, in some cases, converted into electricity.
"Our seventh renewable natural gas plant and the third of 20 facilities in our growth program is expected to be in service in January," said Fish in the company's third-quarterearnings callin late October. "And we have another four facilities on track for completion in 2024, including two of the largest projects in the portfolio, Fairless in Pennsylvania and Orchard Hills in Illinois."
Of course, this budding RNG operation is underpinned by the company's core waste business, which is arguably among the most resilient and reliable business models in the world.
Over the next five years, the current consensus analyst forecast calls for WM's earnings per share to compound at an average rate of 10% annually. And given the company's history of achieving steady top-line growth with its collection business and its nascent RNG business, this forecast seems achievable.
Altogether, WM's resilient business, latest dividend increase, and expected robust earnings-per-share growth over the next five years make the stock look attractive at its current valuation of 31 times earnings.
Should you invest $1,000 in Waste Management right now?
Before you buy stock in Waste Management, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Waste Management wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
See the 10 stocks
*Stock Advisor returns as of December 11, 2023
Daniel Sparks has no position in any of the stocks mentioned. His clients may own shares of the companies mentioned. The Motley Fool recommends Waste Management. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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"The strong and consistent cash flow generation of our business allows WM to continue to fund all our capital allocation priorities," said Waste Management CEO Jim Fish in a press release on Monday. WM has been making substantial investments in renewable natural gas (RNG) production -- created using processed biogas collected from its sprawling landfill network -- which is utilized by its fleet of trash trucks and, in some cases, converted into electricity. Altogether, WM's resilient business, latest dividend increase, and expected robust earnings-per-share growth over the next five years make the stock look attractive at its current valuation of 31 times earnings.
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Unfazed by the uncertain economy, the resilient trash, recycling, and natural gas business announced a 7.1% increase to its quarterly dividend rate and authorized $1.5 billion for share repurchases. Altogether, WM's resilient business, latest dividend increase, and expected robust earnings-per-share growth over the next five years make the stock look attractive at its current valuation of 31 times earnings. Before you buy stock in Waste Management, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Waste Management wasn't one of them.
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Signaling its growth aspirations to investors, the company changed its name from branding from its official name of Waste Management to just WM in 2022 as it is increasingly aiming to be much more than a waste company. Altogether, WM's resilient business, latest dividend increase, and expected robust earnings-per-share growth over the next five years make the stock look attractive at its current valuation of 31 times earnings. Before you buy stock in Waste Management, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Waste Management wasn't one of them.
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Unfazed by the uncertain economy, the resilient trash, recycling, and natural gas business announced a 7.1% increase to its quarterly dividend rate and authorized $1.5 billion for share repurchases. Altogether, WM's resilient business, latest dividend increase, and expected robust earnings-per-share growth over the next five years make the stock look attractive at its current valuation of 31 times earnings. Before you buy stock in Waste Management, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Waste Management wasn't one of them.
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e7cff62d-cdc9-4852-bd3c-fcb66a75e4d8
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712050.0
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2023-12-13 00:00:00 UTC
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Bear of the Day: Schneider National (SNDR)
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https://www.nasdaq.com/articles/bear-of-the-day%3A-schneider-national-sndr
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Schneider National, Inc. SNDR is just trying to make it through this down cycle in the freight industry. This Zacks Rank #5 (Strong Sell) is expected to see earnings fall 46.2% this year.
Schneider National provides surface transportation and logistics solutions in North America. It has been in business for 88 years. Schneider provides truckload, intermodal, and logistics services throughout the US, Canada and Mexico.
A Big Miss in the Third Quarter
On Nov 2, 2023, Schneider reported its third quarter 2023 earnings and missed big on the Zacks Consensus. Earnings were just $0.20 versus the Zacks Consensus of $0.38. That's a 47.4% miss.
The company didn't mince words about the quarter.
"Our enterprise experienced year over year declines in revenue and earnings in the third quarter, a period which we believe represents the most challenging phase of this prolonged freight recession," said Mark Rourke, President and Chief Executive Officer of Schneider.
"Our results were driven by ongoing price pressures primarily in our network businesses, as well as other headwinds such as fuel, bad debt, and lower equipment gains," he added.
Operating revenues fell 19% to $1.352 billion from $1.675 billion a year ago.
Truckload revenues (excluding fuel surcharge) fell 6% to $535.3 million year-over-year driven by unfavorable pricing in network, partially offset by the impact of organic dedicated growth and M&M Transport revenues.
Intermodal took a big hit, as revenues (excluding fuel surcharge) fell 21% to $263 million year-over-year drive by lower revenue per order and volume.
Logistics also struggled, with revenues (excluding fuel surcharge) falling 30%, or $138.2 million, to $326 million compared to third quarter of 2022. It was driven by decreased revenue per order, which Schneider says continues to be unfavorably impacted by lower market prices, and lower brokerage volumes which decreased 11% year over year.
Schneider Cuts Full Year Earnings Guidance
Given the difficult market conditions, it's not a surprise that Schneider cut its full year earnings guidance to a range of $1.40-$1.45 from its prior guidance of $1.75 to $1.90.
As a result, the analysts cut their earnings estimates for both this year and next.
7 estimates were lowered in the last 60 days pushing the 2023 Zacks Consensus down to $1.42 from $1.81. That's now within the new guidance range but it means earnings are expected to decline 46.2% as the company made $2.64 last year.
The analysts were equally as bearish on 2024. 7 estimates were also cut for next year which pushed the Zacks Consensus down to $1.77 from $2.24. But that's an earnings increase of 25% given the cuts to 2023.
Are Shares Cheap?
Given the bearishness, it's not surprising that the shares have sold off in the last 3 months and are down 12.7% during that time. Year-to-date they are up 2.7%, however.
Image Source: Zacks Investment Research
Are they cheap? Schneider trades with a forward P/E of 16.9. It also has a price-to-sales (P/S) ratio of just 0.8. A P/S ratio under 1.0 usually indicates a company is undervalued.
Schneider also has a price-to-book (P/B) ratio of 1.4. A P/B ratio under 3.0 can indicate that there is value.
The company is also shareholder friendly. It pays a dividend, currently yielding 1.5%. It also started a $150 million stock repurchase program in Feb 2023. As of Sep 30, 2023, it had repurchased $50.6 million year-to-date.
Investors interested in trucking and logistics, may want to wait on the sidelines for indications that the recovery in trucking is on its way before diving in.
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
Schneider National, Inc. (SNDR) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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"Our results were driven by ongoing price pressures primarily in our network businesses, as well as other headwinds such as fuel, bad debt, and lower equipment gains," he added. 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.
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Truckload revenues (excluding fuel surcharge) fell 6% to $535.3 million year-over-year driven by unfavorable pricing in network, partially offset by the impact of organic dedicated growth and M&M Transport revenues. Intermodal took a big hit, as revenues (excluding fuel surcharge) fell 21% to $263 million year-over-year drive by lower revenue per order and volume. It was driven by decreased revenue per order, which Schneider says continues to be unfavorably impacted by lower market prices, and lower brokerage volumes which decreased 11% year over year.
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On Nov 2, 2023, Schneider reported its third quarter 2023 earnings and missed big on the Zacks Consensus. "Our enterprise experienced year over year declines in revenue and earnings in the third quarter, a period which we believe represents the most challenging phase of this prolonged freight recession," said Mark Rourke, President and Chief Executive Officer of Schneider. It was driven by decreased revenue per order, which Schneider says continues to be unfavorably impacted by lower market prices, and lower brokerage volumes which decreased 11% year over year.
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On Nov 2, 2023, Schneider reported its third quarter 2023 earnings and missed big on the Zacks Consensus. As a result, the analysts cut their earnings estimates for both this year and next. Download FREE: How To Profit From Trillions On Spending For Infrastructure >> Want the latest recommendations from Zacks Investment Research?
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de43ac83-ab5f-44dc-910e-ddedb3dd52f1
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712051.0
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2023-12-13 00:00:00 UTC
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Why Medical Properties Trust Could Be Due for a Big Year in 2024
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https://www.nasdaq.com/articles/why-medical-properties-trust-could-be-due-for-a-big-year-in-2024
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Medical Properties Trust (NYSE: MPW) is a potentially enticing stock for dividend investors to consider. At nearly 13%, its yield looks astronomical when compared to the S&P 500, where the average payout is just 1.5%.
The healthcare-focused real estate investment trust (REIT) is in an industry that should be fairly stable to invest in now that pandemic pressures have eased and are no longer disrupting day-to-day operations for hospitals. But alas, investors remain hesitant to take a chance on this troubled REIT.
Next year, however, should be a much better one for the stock.
Medical Properties' valuation looks dirt cheap
Medical Properties Trust struggled to win over investors not just this year but in 2022 as well. Investors don't want to hear about dividend cuts or tenants having issues paying rent. And both issues have plagued the REIT, leading to a sharp drop in the stock's valuation.
The stock has lost 57% of its value so far in 2023. And that's after falling 53% in 2022. Since the start of 2022, shares of MPT are down 80%. It has been bad news on top of bad news for the business, leading to an incredibly low valuation. Today, the stock trades at 5.5 times its forward earnings and just 0.34 times its book value.
Investors are discounting the stock heavily, which is a sign that they are doubtful about the REIT's prospects heading not just into next year, but for the long run. And that could be a mistake.
Why the stock could do well in 2024
Medical Properties Trust hasn't done well this year, but investors in general haven't been bullish on REITs in recent years. The Real Estate Select Sector SPDR fund is down 27% since 2022 as rising interest rates made investors bearish on REITs, which normally make for good dividend stocks to own. And with Medical Properties Trust doing particularly poorly of late, investors have been even more punitive toward the stock.
But a contrarian case can be made for investing in the business. One argument is that interest rate cuts may be on the horizon. Because REITs fund their property purchases with debt, having loans where interest rates are dropping should provide some cost savings as the debt is refinanced. Goldman Sachs projects that there could be two rate cuts in 2024.
Another potential catalyst for Medical Properties Trust is that the company's dividend, while lower, is more sustainable given the company's financial performance. Over the first nine months of the year, the REIT reported funds from operations (FFO) of $1.24 per share. FFO is a key metric for REITs and is often used instead of net income to help assess the company's financial strength. FFO factors out depreciation and gains or losses, which can have significant impacts on typical accounting income. At $1.24, that averages out to a quarterly FFO of $0.41 -- far higher than the $0.15 quarterly dividend that Medical Properties Trust currently pays.
If investors feel more comfortable about the dividend, that should lead to more buying -- and a higher share price.
Should you invest in Medical Properties Trust?
Medical Properties Trust should have a better year in 2024. That's actually not a difficult prediction given how poorly the stock performed over the past two years. That being said, it's still not the safest of stocks to be holding right now. The company is planning to sell assets to improve liquidity and investors may still have doubts about whether its payout really is sustainable. But if the REIT can build on its recent results and continue to show that its dividend is safe, then investors are likely to start buying up this badly beaten-down stock. It may just be a question of how long that takes.
If you have a low risk tolerance, you may want to consider other dividend stocks. But if you're OK with the potential short-term volatility in the months ahead, Medical Properties Trust could be worth taking a long-term chance on given its incredibly low valuation.
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
David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Goldman Sachs 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.
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The Real Estate Select Sector SPDR fund is down 27% since 2022 as rising interest rates made investors bearish on REITs, which normally make for good dividend stocks to own. But if the REIT can build on its recent results and continue to show that its dividend is safe, then investors are likely to start buying up this badly beaten-down stock. But if you're OK with the potential short-term volatility in the months ahead, Medical Properties Trust could be worth taking a long-term chance on given its incredibly low valuation.
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It has been bad news on top of bad news for the business, leading to an incredibly low valuation. At $1.24, that averages out to a quarterly FFO of $0.41 -- far higher than the $0.15 quarterly dividend that Medical Properties Trust currently pays. 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.
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Medical Properties' valuation looks dirt cheap Medical Properties Trust struggled to win over investors not just this year but in 2022 as well. Why the stock could do well in 2024 Medical Properties Trust hasn't done well this year, but investors in general haven't been bullish on REITs in recent years. 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.
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Why the stock could do well in 2024 Medical Properties Trust hasn't done well this year, but investors in general haven't been bullish on REITs in recent years. But if you're OK with the potential short-term volatility in the months ahead, Medical Properties Trust could be worth taking a long-term chance on given its incredibly low valuation. 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.
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3fe2415d-8acf-4926-b8d6-cc9335913a80
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712052.0
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2023-12-13 00:00:00 UTC
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Sum Up The Parts: GNR Could Be Worth $63
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https://www.nasdaq.com/articles/sum-up-the-parts%3A-gnr-could-be-worth-%2463
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Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the SPDR S&P Global Natural Resources ETF (Symbol: GNR), we found that the implied analyst target price for the ETF based upon its underlying holdings is $62.82 per unit.
With GNR trading at a recent price near $54.22 per unit, that means that analysts see 15.87% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of GNR's underlying holdings with notable upside to their analyst target prices are ICL Group Ltd (Symbol: ICL), Wheaton Precious Metals Corp (Symbol: WPM), and ArcelorMittal SA (Symbol: MT). Although ICL has traded at a recent price of $4.89/share, the average analyst target is 32.52% higher at $6.48/share. Similarly, WPM has 18.46% upside from the recent share price of $46.37 if the average analyst target price of $54.93/share is reached, and analysts on average are expecting MT to reach a target price of $30.50/share, which is 17.90% above the recent price of $25.87. Below is a twelve month price history chart comparing the stock performance of ICL, WPM, and MT:
Below is a summary table of the current analyst target prices discussed above:
NAME SYMBOL RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET
SPDR S&P Global Natural Resources ETF GNR $54.22 $62.82 15.87%
ICL Group Ltd ICL $4.89 $6.48 32.52%
Wheaton Precious Metals Corp WPM $46.37 $54.93 18.46%
ArcelorMittal SA MT $25.87 $30.50 17.90%
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
10 ETFs With Most Upside To Analyst Targets »
Also see:
Dividend History
Institutional Holders of XUE
Top Ten Hedge Funds Holding CQH
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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SPDR S&P Global Natural Resources ETF GNR $54.22 $62.82 15.87% ICL Group Ltd ICL $4.89 $6.48 32.52% Wheaton Precious Metals Corp WPM $46.37 $54.93 18.46% ArcelorMittal SA MT $25.87 $30.50 17.90% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? 10 ETFs With Most Upside To Analyst Targets » Also see: Dividend History Institutional Holders of XUE Top Ten Hedge Funds Holding CQH The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Three of GNR's underlying holdings with notable upside to their analyst target prices are ICL Group Ltd (Symbol: ICL), Wheaton Precious Metals Corp (Symbol: WPM), and ArcelorMittal SA (Symbol: MT). Similarly, WPM has 18.46% upside from the recent share price of $46.37 if the average analyst target price of $54.93/share is reached, and analysts on average are expecting MT to reach a target price of $30.50/share, which is 17.90% above the recent price of $25.87. SPDR S&P Global Natural Resources ETF GNR $54.22 $62.82 15.87% ICL Group Ltd ICL $4.89 $6.48 32.52% Wheaton Precious Metals Corp WPM $46.37 $54.93 18.46% ArcelorMittal SA MT $25.87 $30.50 17.90% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now?
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Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. Similarly, WPM has 18.46% upside from the recent share price of $46.37 if the average analyst target price of $54.93/share is reached, and analysts on average are expecting MT to reach a target price of $30.50/share, which is 17.90% above the recent price of $25.87. A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past.
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With GNR trading at a recent price near $54.22 per unit, that means that analysts see 15.87% upside for this ETF looking through to the average analyst targets of the underlying holdings. Although ICL has traded at a recent price of $4.89/share, the average analyst target is 32.52% higher at $6.48/share. SPDR S&P Global Natural Resources ETF GNR $54.22 $62.82 15.87% ICL Group Ltd ICL $4.89 $6.48 32.52% Wheaton Precious Metals Corp WPM $46.37 $54.93 18.46% ArcelorMittal SA MT $25.87 $30.50 17.90% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now?
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2c4003f9-7ed8-40e2-aff1-c7526a2e6d3c
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712053.0
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2023-12-13 00:00:00 UTC
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Norway oil and gas investments set to soar in 2024, industry says
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https://www.nasdaq.com/articles/norway-oil-and-gas-investments-set-to-soar-in-2024-industry-says
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By Nerijus Adomaitis
OSLO, Dec 13 (Reuters) - Oil and gas companies operating in Norway are expected to invest 240 billion Norwegian crowns ($21.85 billion) in 2024, up from 220.5 billion in 2023, and more than previously expected, an industry group said on Wednesday.
Offshore Norway, which published the new forecast based on a survey of its members, had previously predicted 2024 oil and gas investments would amount to 194.3 billion crowns.
The rise was the result of new developments, increased scope of ongoing projects as well as inflation and a weak currency, the group said.
"In Norway there is high pressure in the (offshore drilling) rig market, but internationally the subsea market contributes to rising prices the most," Marius Andersen, chief economist at Offshore Norge, told Reuters.
In the years after 2024 investments will gradually decline, to 166.5 billion in 2028 as major projects are completed.
Significant oil and gas companies in Norway include Equinor EQNR.OL, Aker BP AKRBP.OL, Vaar VAR.OL, Conocophillips COP.N and Shell SHEL.L.
Norway is western Europe's largest oil and gas producer, with a total output of just over 4 million barrels of oil equivalents per day (boepd).
While the country aims to achieve net zero greenhouse gas emissions by 2050, it also continues to explore for and develop new oil and gas fields, including in the Arctic Barents Sea.
Offshore Norway expects spending on exploration and concept studies to increase to 31 billion crowns in 2024, up from 26.2 billion crowns in 2023.
It also expects slightly more than 40 exploration wells to be spudded next year compared to 32 wells so far this year.
($1 = 10.9847 Norwegian crowns)
(Reporting by Nerijus Adomaitis, editing by Terje Solsvik)
((terje.solsvik@thomsonreuters.com; +47 918 666 70))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Offshore Norway, which published the new forecast based on a survey of its members, had previously predicted 2024 oil and gas investments would amount to 194.3 billion crowns. The rise was the result of new developments, increased scope of ongoing projects as well as inflation and a weak currency, the group said. Significant oil and gas companies in Norway include Equinor EQNR.OL, Aker BP AKRBP.OL, Vaar VAR.OL, Conocophillips COP.N and Shell SHEL.L.
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By Nerijus Adomaitis OSLO, Dec 13 (Reuters) - Oil and gas companies operating in Norway are expected to invest 240 billion Norwegian crowns ($21.85 billion) in 2024, up from 220.5 billion in 2023, and more than previously expected, an industry group said on Wednesday. Offshore Norway, which published the new forecast based on a survey of its members, had previously predicted 2024 oil and gas investments would amount to 194.3 billion crowns. Significant oil and gas companies in Norway include Equinor EQNR.OL, Aker BP AKRBP.OL, Vaar VAR.OL, Conocophillips COP.N and Shell SHEL.L.
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By Nerijus Adomaitis OSLO, Dec 13 (Reuters) - Oil and gas companies operating in Norway are expected to invest 240 billion Norwegian crowns ($21.85 billion) in 2024, up from 220.5 billion in 2023, and more than previously expected, an industry group said on Wednesday. Offshore Norway, which published the new forecast based on a survey of its members, had previously predicted 2024 oil and gas investments would amount to 194.3 billion crowns. Offshore Norway expects spending on exploration and concept studies to increase to 31 billion crowns in 2024, up from 26.2 billion crowns in 2023.
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By Nerijus Adomaitis OSLO, Dec 13 (Reuters) - Oil and gas companies operating in Norway are expected to invest 240 billion Norwegian crowns ($21.85 billion) in 2024, up from 220.5 billion in 2023, and more than previously expected, an industry group said on Wednesday. The rise was the result of new developments, increased scope of ongoing projects as well as inflation and a weak currency, the group said. In the years after 2024 investments will gradually decline, to 166.5 billion in 2028 as major projects are completed.
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1bd588e5-1bab-4dc6-8f10-d13ebb6ee83d
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712054.0
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2023-12-13 00:00:00 UTC
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Payments regulator proposes cap on Mastercard, Visa cross-border fees
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https://www.nasdaq.com/articles/payments-regulator-proposes-cap-on-mastercard-visa-cross-border-fees
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nan
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LONDON, Dec 13 (Reuters) - Britain's payments regulator on Wednesday provisionally proposed a cap on cross-border interchange fees charged by Mastercard MA.N and Visa V.N on transactions made between the UK and European single market.
The Payment Systems Regulator (PSR) said a cap would protect businesses from overpaying, after it published interim findings of a market review on interchange fees charged since Brexit, when the bloc's payments rules ceased to apply in Britain.
The PSR said the review focused on charges set by Mastercard and Visa, as they account for 99% of debit and credit card payments in the UK.
The watchdog said both firms had likely raised fees to an "unduly high level", costing UK businesses and extra 150-200 million pounds due to fee increases.
Under the proposals, the PSR would impose an initial time-limited cap of 0.2% on UK-European Economic Area debit transactions and 0.3% on credit transactions. A lasting cap would then be imposed once further analysis is carried out.
A spokesperson for Visa said the company strongly disputed the findings of the PSR's interim report and said the proposed remedies were "not justified".
"Accepting reliable, secure, and innovative digital payments represents enormous value to UK businesses, especially when selling overseas," the spokesperson said.
"These interchange rates apply to less than 2% of UK card payments - European (EEA) cardholders buying online from a UK seller - and reflect the fact that these transactions are more complex and carry far greater risk of fraud."
Mastercard did not immeditately respond to a request for comment.
The PSR is inviting feedback on te proposals until the end of January.
(Reporting by Iain Withers, editing by Sinead Cruise)
((Iain.Withers@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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LONDON, Dec 13 (Reuters) - Britain's payments regulator on Wednesday provisionally proposed a cap on cross-border interchange fees charged by Mastercard MA.N and Visa V.N on transactions made between the UK and European single market. The PSR said the review focused on charges set by Mastercard and Visa, as they account for 99% of debit and credit card payments in the UK. "Accepting reliable, secure, and innovative digital payments represents enormous value to UK businesses, especially when selling overseas," the spokesperson said.
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LONDON, Dec 13 (Reuters) - Britain's payments regulator on Wednesday provisionally proposed a cap on cross-border interchange fees charged by Mastercard MA.N and Visa V.N on transactions made between the UK and European single market. The Payment Systems Regulator (PSR) said a cap would protect businesses from overpaying, after it published interim findings of a market review on interchange fees charged since Brexit, when the bloc's payments rules ceased to apply in Britain. "These interchange rates apply to less than 2% of UK card payments - European (EEA) cardholders buying online from a UK seller - and reflect the fact that these transactions are more complex and carry far greater risk of fraud."
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LONDON, Dec 13 (Reuters) - Britain's payments regulator on Wednesday provisionally proposed a cap on cross-border interchange fees charged by Mastercard MA.N and Visa V.N on transactions made between the UK and European single market. The Payment Systems Regulator (PSR) said a cap would protect businesses from overpaying, after it published interim findings of a market review on interchange fees charged since Brexit, when the bloc's payments rules ceased to apply in Britain. "These interchange rates apply to less than 2% of UK card payments - European (EEA) cardholders buying online from a UK seller - and reflect the fact that these transactions are more complex and carry far greater risk of fraud."
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LONDON, Dec 13 (Reuters) - Britain's payments regulator on Wednesday provisionally proposed a cap on cross-border interchange fees charged by Mastercard MA.N and Visa V.N on transactions made between the UK and European single market. The Payment Systems Regulator (PSR) said a cap would protect businesses from overpaying, after it published interim findings of a market review on interchange fees charged since Brexit, when the bloc's payments rules ceased to apply in Britain. The PSR said the review focused on charges set by Mastercard and Visa, as they account for 99% of debit and credit card payments in the UK.
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bdae41f1-09d1-467e-9a04-af84d4b63967
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712055.0
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2023-12-13 00:00:00 UTC
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Should You Invest Before the End of 2023, or Wait for the New Year? Here's What Warren Buffett Would Say
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https://www.nasdaq.com/articles/should-you-invest-before-the-end-of-2023-or-wait-for-the-new-year-heres-what-warren
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As investors evaluate and recalibrate to get ready for the stock market in 2024, the question on everyone's mind is: Buy now, or wait? The S&P 500 has been flirting with entering a bull market, but with persistent inflation, the corresponding high interest rates, and the subsequent retail crunch, investors haven't been enthusiastic enough about the potential in the new year to push it through.
When you need a good dose of investing wisdom, it's always a good idea to pull out the wise advice of legend Warren Buffett. Let's see what he might say about the right time to invest.
Don't wait for a bull market
As we teeter on the edge of a bear market, one thing Buffett would caution is to not get caught up in the hype of the bull market. "What could be more exhilarating than to participate in a bull market in which the rewards to owners of businesses become gloriously uncoupled from the plodding performances of the businesses themselves[?]" he acknowledges. "Unfortunately, however, stocks can't outperform businesses indefinitely." Buffett constantly urges investors to focus on business fundamentals, which will lead to stock performance over time, as opposed to stock hype, which will eventually disappear.
This could be a good time to invest, simply because many valuations are still low. When the bull market comes back, you'll want to avoid unreasonably high valuations. When you can't find undervalued stocks, Buffett would say not to buy at all. "When conditions are right," he said in a 1986 shareholder's letter, "that is when companies with good economics and good management sell well below intrinsic business value, stocks sometimes provide grand-slam home runs. But we currently find no equities that come close to meeting our tests."
Image source: Getty Images.
Actually, Buffett and his team haven't been buying too many stocks lately, being a net seller of stocks over the past few quarters. Part of that might be because with interest rates high, Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) can make a nice amount of interest on cash while keeping the cash ready to buy the right stocks when the opportunity arises.
Also keep in mind that when people talk about Buffett's portfolio and what he buys and sells, they're usually referring to Berkshire Hathaway, which is a holding company, not an individual portfolio. Buffett freely doles out excellent advice, but the right moves for a holding company with billions of dollars in equity that also owns several whole companies might be different than the right moves for your individual portfolio.
Does the stock market rise or fall with a new year?
There's a simple test to see if it makes sense to buy before the end of the old year or at the beginning of the new year. This is a chart of how the S&P 500 has performed over the past five years. You can see that, at least over these years, there's no distinct pattern of how the market performs leading up to a new year and at that start.
^SPX data by YCharts
One thing to notice is that despite several falls, notably the 2020 crash, the S&P 500 keeps getting back up and rising again. That's the power of long-term investing. It doesn't matter when you buy; the key is to get into the market when you can, buy stocks when the market presents opportunities, look for the right things when you buy, and then hold on.
Keep holding on
One of Buffett's most-quoted sayings is that his favorite holding period is forever. For complete context, what he actually said is: "When we own portions of outstanding businesses with outstanding managements, our favorite holding period is forever." He added: "There are only a handful of businesses about which we have strong long-term convictions." He certainly is not advising to hold every stock forever, and he sells stocks all the time. He is imploring investors to be discriminating about which stocks they buy, which reduces the chance that you'll need to sell.
If you have cash to buy stocks after setting aside an emergency fund and paying off debt, and you can identify great stocks to buy at the right valuation, the time to buy is now. If you haven't identified which stocks to buy to fit your portfolio needs, then wait -- not just for the new year, but for when the right opportunities come up.
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*Stock Advisor returns as of 12/4/2023
Jennifer Saibil has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends 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.
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As investors evaluate and recalibrate to get ready for the stock market in 2024, the question on everyone's mind is: Buy now, or wait? The S&P 500 has been flirting with entering a bull market, but with persistent inflation, the corresponding high interest rates, and the subsequent retail crunch, investors haven't been enthusiastic enough about the potential in the new year to push it through. ^SPX data by YCharts One thing to notice is that despite several falls, notably the 2020 crash, the S&P 500 keeps getting back up and rising again.
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When you can't find undervalued stocks, Buffett would say not to buy at all. Part of that might be because with interest rates high, Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) can make a nice amount of interest on cash while keeping the cash ready to buy the right stocks when the opportunity arises. For complete context, what he actually said is: "When we own portions of outstanding businesses with outstanding managements, our favorite holding period is forever."
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Actually, Buffett and his team haven't been buying too many stocks lately, being a net seller of stocks over the past few quarters. It doesn't matter when you buy; the key is to get into the market when you can, buy stocks when the market presents opportunities, look for the right things when you buy, and then hold on. If you have cash to buy stocks after setting aside an emergency fund and paying off debt, and you can identify great stocks to buy at the right valuation, the time to buy is now.
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He certainly is not advising to hold every stock forever, and he sells stocks all the time. If you haven't identified which stocks to buy to fit your portfolio needs, then wait -- not just for the new year, but for when the right opportunities come up. That's right -- they think these 10 stocks are even better buys.
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712056.0
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2023-12-13 00:00:00 UTC
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Transocean (RIG) Signs a $251M Contract for Barents Rig
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https://www.nasdaq.com/articles/transocean-rig-signs-a-%24251m-contract-for-barents-rig
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Transocean Ltd. RIG, an international provider of offshore contract drilling services for oil and gas wells, announced a significant contract for its Transocean Barents rig in the Romanian Black Sea.
The company revealed on Tuesday that it has inked a minimum 540-day contract with OMV Petrom S.A. at a daily rate of $465,000, excluding additional services. The program is slated to commence in the first quarter of 2025, marking a strategic move for Transocean into the challenging environmental conditions of the Romanian Black Sea.
The contract is expected to contribute approximately $251 million to Transocean's backlog, excluding full compensation for mobilization and a demobilization fee.
According to Transocean, the day rate for the contract includes provisions for additional services. Moreover, for each day beyond the initial 540 days, including two option periods, the operating day rate will increase to $480,000. This provides RIG with the potential for additional revenues if the contract extends beyond the originally stipulated duration.
Zacks Rank & Key Picks
Transocean currently carries a Zack Rank #3 (Hold).
Some better-ranked stocks in the energy sector are The Williams Companies, Inc. WMB, Matador Resources Company MTDR and Liberty Energy Inc. LBRT. While Williams Companies sports a Zacks Rank #1 (Strong Buy), both Matador Resources and Liberty Energy carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Williams Companies is well-positioned to capitalize on the anticipated substantial long-term growth in U.S. natural gas demand, thanks to its impressive portfolio of large-scale projects that create significant value. The company’s debt maturity profile is in good shape with its $4.5 billion revolver maturing in 2023.
WMB’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 13.68%.
Matador Resources is among the leading oil and gas explorers in the shale and unconventional resources in the United States. The company’s prime intention is to create more value for shareholders and generate lucrative returns from the capital invested in unconventional plays.
MTDR’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 13.89%.
Liberty Energy is a North American provider of hydraulic fracturing services to upstream energy operators. The company’s multi-basin presence offers an attractive upside opportunity compared with most of its peers. Its strong relationship with high-quality customers provides revenue visibility and business certainty.
LBRT’s earnings beat estimates in three of the trailing four quarters and missed once, delivering an average surprise of 9.88%.
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.
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Williams Companies, Inc. (The) (WMB) : Free Stock Analysis Report
Transocean Ltd. (RIG) : Free Stock Analysis Report
Matador Resources Company (MTDR) : Free Stock Analysis Report
Liberty Energy Inc. (LBRT) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The program is slated to commence in the first quarter of 2025, marking a strategic move for Transocean into the challenging environmental conditions of the Romanian Black Sea. The Williams Companies is well-positioned to capitalize on the anticipated substantial long-term growth in U.S. natural gas demand, thanks to its impressive portfolio of large-scale projects that create significant value. 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.
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Some better-ranked stocks in the energy sector are The Williams Companies, Inc. WMB, Matador Resources Company MTDR and Liberty Energy Inc. LBRT. While Williams Companies sports a Zacks Rank #1 (Strong Buy), both Matador Resources and Liberty Energy carry a Zacks Rank #2 (Buy) at present. Click to get this free report Williams Companies, Inc. (The) (WMB) : Free Stock Analysis Report Transocean Ltd. (RIG) : Free Stock Analysis Report Matador Resources Company (MTDR) : Free Stock Analysis Report Liberty Energy Inc. (LBRT) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Some better-ranked stocks in the energy sector are The Williams Companies, Inc. WMB, Matador Resources Company MTDR and Liberty Energy Inc. LBRT. While Williams Companies sports a Zacks Rank #1 (Strong Buy), both Matador Resources and Liberty Energy carry a Zacks Rank #2 (Buy) at present. Click to get this free report Williams Companies, Inc. (The) (WMB) : Free Stock Analysis Report Transocean Ltd. (RIG) : Free Stock Analysis Report Matador Resources Company (MTDR) : Free Stock Analysis Report Liberty Energy Inc. (LBRT) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Some better-ranked stocks in the energy sector are The Williams Companies, Inc. WMB, Matador Resources Company MTDR and Liberty Energy Inc. LBRT. While Williams Companies sports a Zacks Rank #1 (Strong Buy), both Matador Resources and Liberty Energy carry a Zacks Rank #2 (Buy) at present. Download FREE: How To Profit From Trillions On Spending For Infrastructure >> Want the latest recommendations from Zacks Investment Research?
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712057.0
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2023-12-13 00:00:00 UTC
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FOCUS-US employers hire virtual providers as weight-loss drug gatekeepers
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https://www.nasdaq.com/articles/focus-us-employers-hire-virtual-providers-as-weight-loss-drug-gatekeepers
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By Patrick Wingrove
Dec 13 (Reuters) - U.S. employers facing surging costs from paying for Novo Nordisk’s NOVOb.CO Wegovy and similar obesity drugs are hiring virtual healthcare providers like Teladoc TDOC.N to implement weight-loss management programs, a dozen consultants, pharmacy benefit managers, analysts, and providers told Reuters.
These programs may require diet and exercise before granting access to the medicines, and in some cases will become employees' sole covered option for medications like Wegovy and Eli Lilly’s LLY.N rival therapy Zepbound, which have list prices of more than $1,000 a month.
They could help companies cut costs by limiting employees to small networks of less expensive providers or by delaying prescriptions with lifestyle change mandates, one of the benefits consultants said.
Another consultant touted the benefits of such programs, saying diet and exercise regimens could lead to long-term improvements in patient health.
“Many (employers) were skeptical about the cost of these drugs at the beginning of the year, but that mindset has shifted. Employers and health plans are now increasingly more willing to cover them, with the right programs in place,” Teladoc executive Ananth Balasubramanian said in an interview.
More than a quarter of 152 employers surveyed by the Business Group on Health said they would use virtual providers to oversee obesity drug prescriptions next year.
Boeing BA.N, Hilton HLT.N, and Fortune Brands FBIN.N are among companies that have signed up for or expanded deals with virtual healthcare providers, according to sources familiar with the matter.
Truist analyst Jailendra Singh forecast the market for virtual obesity drug management could reach $700 million in 2024 and grow to as much as $9 billion longer term, assuming providers charge around $30 per member, per month, and $50 for physician appointments.
Reuters reported in June that the popularity of obesity medicines had U.S. employers rethinking insurance coverage, but most only required special authorization or had stopped covering diabetes drugs off-label for weight loss.
Healthcare benefits consultant Aon AON.N outlined ideas to manage use of these GLP-1 drugs through "step therapy" and narrow networks or "centers of excellence" in August in a 10-page document for corporate clients.
It suggested at least one to three months of lifestyle changes through programs from telehealth companies or pharmacy benefit managers (PBMs) before patients are prescribed the medicines, which would help them adopt long-term approaches to healthier nutrition and exercise and give them coaching and other support.
Wegovy and Zepbound belong to a class of drugs called GLP-1s developed for type 2 diabetes that reduce food cravings and cause the stomach to empty more slowly. They have been shown to reduce weight by an average of 15% and 20%, respectively in clinical trials.
American Medical Association President Jesse Ehrenfeld said selecting telehealth providers with no in-person care inappropriately steers patients away from their current physicians, threatening continuity of care.
“Telehealth should be a supplement to, not a replacement for, in-person provider networks," he said.
DIET AND EXERCISE
Step therapy, which first requires completion of a diet and exercise program and may limit the duration of the medicine's use, is the main service employers are seeking, according to three virtual healthcare providers.
Blue Cross Blue Shield of Michigan, a health insurer with more than 5 million members, said next year it will offer employer clients an option for patients to sign up for Teladoc’s weight management program that involves six months of diet and exercise before patients can get Wegovy or Zepbound.
They must continue the diet and exercise requirement in order to keep being prescribed the drugs.
Companies are also starting "centers of excellence" for weight loss that would limit who could prescribe the drugs.
Such specialized programs set up to even out service quality and save money on high cost-procedures like knee replacements are already common in fields like cardiology and bariatric surgery but are rarely administered virtually.
Richard Frank, an executive at virtual provider Vida Health, said his company planned to manage a weight-loss center of excellence for at least one of its clients next year. He said Vida will help improve patients' quality of life by getting them to focus on more than just weight loss.
Its step-therapy program wasn’t created to introduce hurdles, but to get patients the right care at the right time, he said.
Capital RX, a PBM with more than 200 clients covering around 2.4 million people, said about 20% of its clients were interested in centers of excellence for obesity.
BMO analyst Evan Seigerman said the market for GLP-1 obesity drugs will be supply driven next year and “roadblocks” like these are unlikely to impact Novo or Lilly sales.
Both Wegovy and Zepbound U.S. approvals included language that they should be used along with diet and exercise changes.
By using weight loss programs, employers could spread the cost of a drug or avoid paying for it entirely, said Jeff Levin Scherz at benefits consultant Willis Towers Watson WTW.O.
“They will delay eligibility, and by the time people are eligible, they might no longer be on the plan,” he said.
Adherence to weight-loss drugs is far higher with Wegovy than older medicines
Eli Lilly obesity drug now available in US pharmacies
US obesity docs expect Lilly weight-loss drug to show similar heart benefit as Wegovy
Lilly weight-loss drug gets US, UK approval to rival Wegovy https://www.reuters.com/business/healthcare-pharmaceuticals/us-fda-approves-lillys-weight-loss-drug-2023-11-08/
(Reporting by Patrick Wingrove in New York; editing by Caroline Humer and Bill Berkrot)
((Patrick.Wingrove@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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These programs may require diet and exercise before granting access to the medicines, and in some cases will become employees' sole covered option for medications like Wegovy and Eli Lilly’s LLY.N rival therapy Zepbound, which have list prices of more than $1,000 a month. Truist analyst Jailendra Singh forecast the market for virtual obesity drug management could reach $700 million in 2024 and grow to as much as $9 billion longer term, assuming providers charge around $30 per member, per month, and $50 for physician appointments. It suggested at least one to three months of lifestyle changes through programs from telehealth companies or pharmacy benefit managers (PBMs) before patients are prescribed the medicines, which would help them adopt long-term approaches to healthier nutrition and exercise and give them coaching and other support.
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By Patrick Wingrove Dec 13 (Reuters) - U.S. employers facing surging costs from paying for Novo Nordisk’s NOVOb.CO Wegovy and similar obesity drugs are hiring virtual healthcare providers like Teladoc TDOC.N to implement weight-loss management programs, a dozen consultants, pharmacy benefit managers, analysts, and providers told Reuters. Blue Cross Blue Shield of Michigan, a health insurer with more than 5 million members, said next year it will offer employer clients an option for patients to sign up for Teladoc’s weight management program that involves six months of diet and exercise before patients can get Wegovy or Zepbound. Adherence to weight-loss drugs is far higher with Wegovy than older medicines Eli Lilly obesity drug now available in US pharmacies US obesity docs expect Lilly weight-loss drug to show similar heart benefit as Wegovy Lilly weight-loss drug gets US, UK approval to rival Wegovy https://www.reuters.com/business/healthcare-pharmaceuticals/us-fda-approves-lillys-weight-loss-drug-2023-11-08/ (Reporting by Patrick Wingrove in New York; editing by Caroline Humer and Bill Berkrot) ((Patrick.Wingrove@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Patrick Wingrove Dec 13 (Reuters) - U.S. employers facing surging costs from paying for Novo Nordisk’s NOVOb.CO Wegovy and similar obesity drugs are hiring virtual healthcare providers like Teladoc TDOC.N to implement weight-loss management programs, a dozen consultants, pharmacy benefit managers, analysts, and providers told Reuters. Blue Cross Blue Shield of Michigan, a health insurer with more than 5 million members, said next year it will offer employer clients an option for patients to sign up for Teladoc’s weight management program that involves six months of diet and exercise before patients can get Wegovy or Zepbound. Adherence to weight-loss drugs is far higher with Wegovy than older medicines Eli Lilly obesity drug now available in US pharmacies US obesity docs expect Lilly weight-loss drug to show similar heart benefit as Wegovy Lilly weight-loss drug gets US, UK approval to rival Wegovy https://www.reuters.com/business/healthcare-pharmaceuticals/us-fda-approves-lillys-weight-loss-drug-2023-11-08/ (Reporting by Patrick Wingrove in New York; editing by Caroline Humer and Bill Berkrot) ((Patrick.Wingrove@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Patrick Wingrove Dec 13 (Reuters) - U.S. employers facing surging costs from paying for Novo Nordisk’s NOVOb.CO Wegovy and similar obesity drugs are hiring virtual healthcare providers like Teladoc TDOC.N to implement weight-loss management programs, a dozen consultants, pharmacy benefit managers, analysts, and providers told Reuters. Blue Cross Blue Shield of Michigan, a health insurer with more than 5 million members, said next year it will offer employer clients an option for patients to sign up for Teladoc’s weight management program that involves six months of diet and exercise before patients can get Wegovy or Zepbound. Companies are also starting "centers of excellence" for weight loss that would limit who could prescribe the drugs.
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2023-12-13 00:00:00 UTC
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FOCUS-EV charger station firms battle for prime locations in Europe, US
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https://www.nasdaq.com/articles/focus-ev-charger-station-firms-battle-for-prime-locations-in-europe-us
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By Nick Carey and Paul Lienert
LONDON/DETROIT, Dec 13 (Reuters) - Electric vehicle charging companies in Europe and the U.S. have started fighting over the best spots for fast public chargers, and industry watchers predict fresh rounds of consolidation as more big investors enter the fray.
Many current EV charger companies are backed by long-term investors, and more are expected to launch. Looming bans in various countries on cars powered by fossil fuels have made the sector more attractive to infrastructure investors like M&G's MNG.L Infracapital and Sweden's EQT.
"If you look at our customers, it's like a land grabbing game now," Tomi Ristimaki, CEO of Finnish EV charger manufacturer Kempower KEMPOWR.HE said. "Who gets the best locations now can guarantee electricity sales in the coming years."
A Reuters analysis showed there are more than 900 EV charging companies globally. The sector has attracted over $12 billion in venture capital funding since 2012, according to PitchBook.
As big investors fund more consolidation, "the fast-charging landscape will look pretty different from the landscape that exists today," said Michael Hughes, chief revenue and commercial officer for ChargePoint CHPT.N, one of the largest suppliers of EV charging equipment and software.
Corporations from Volkswagen VOWG_p.DE to BP BP.L and E.ON EONGn.DE have invested heavily in the industry, which has seen 85 acquisitions since 2017.
See graphic: https://tmsnrt.rs/3QJRvKz
There are more than 30 fast-charger operators in the UK alone. Two new ones launched last month: Australia’s Jolt, backed by BlackRock's infrastructure fund, and Zapgo, which has received 25 million pounds ($31.4 million) in funding from Canadian pension fund OPTrust.
In the U.S. market, Tesla TSLA.O is the biggest player, but more convenience stores and fuel stations will soon join the fray and the number of U.S. fast-charging networks will more than double to 54 in 2030 from 25 in 2022, said Loren McDonald, CEO of San Francisco-based research firm EVAdoption.
See graphic: https://tmsnrt.rs/3we1njJ
It can take four years for a properly placed EV charging station to become profitable once utilization hits around 15%. Charger companies complain red tape in Europe is slowing expansion. Still, the sector is viewed as a good bet by long-term infrastructure investors like Infracapital, which owns Norway's Recharge and has invested in Britain's Gridserve.
"With the right locations, long-term investments in (charging companies) absolutely make sense," said Christophe Bordes, managing director at Infracapital.
ChargePoint's Hughes believes larger players will start looking beyond existing sites for new real estate, purpose-built for mega-facilities with 20 or 30 fast-charge dispensers, surrounded by retailers and amenities.
"There's a race for space," he said, "but it will take longer than anybody expects to find, build and enable these new sites for the next generation of fast charging."
Competition for the best sites is becoming fierce and site hosts can switch between operators before settling on a winner.
"We like to say there's no such thing as a dead deal when you're talking to a site host," Blink Charging BLNK.O CEO Brendan Jones said.
"LOGOS WILL BE DIFFERENT"
Firms are also competing for exclusive contracts with hosts.
For instance, UK's InstaVolt - owned by EQT - has deals with companies like McDonald's MCD.N to build charging stations at their locations.
"If you can win that partnership, it's yours until you blow it," InstaVolt CEO Adrian Keen said.
With EQT's "deeper pockets," InstaVolt plans 10,000 chargers in the UK by 2030, has active chargers in Iceland, and has launched operations in Spain and Portugal, Keen said. Consolidation could start in the next year or so, he added.
"That might open up opportunities in the markets we're in, but also open the door to a new market for us," Keen said.
Utility EnBW's EBKG.DE charging unit has 3,500 EV charge points in Germany, about 20% of that market. It is investing 200 million euros ($215 million) annually to hit 30,000 charging points by 2030, leaning on local staff to fend off competition for sites.
The unit has also formed charging network partnerships in Austria, the Czech Republic and northern Italy, vice president of sales Lars Walch said.
While consolidation is coming, there will still be room for multiple operators, Walch said.
Norway, a leading EV market, has suffered from short-term "over-deployment" this year as companies raced to build out charging stations, Recharge CEO Hakon Vist said. The market added 2,000 new charge points to hit a total of 7,200, but EV sales were down 2.7% through October this year.
Recharge has around 20% market share in Norway, just behind Tesla.
"Some companies will find they're too small to meet customers' requirements and leave or sell," Vist said.
Others are launching companies knowing they could acquire others or be acquired themselves.
New UK entrant, OPTrust-backed Zapgo plans to target under-served parts of England's Southwest, offering landlords a slice of charging revenue to get good locations. It plans 4,000 chargers by 2030, said CEO Steve Leighton, who predicted consolidation "will all come down to money" later this decade.
"The funders who've got the deepest pockets will be running that consolidation," Leighton said, adding OPTrust "is big, but one of the larger infrastructure funds might come along and want to pick Zapgo up at some point."
The U.S. market will shift as convenience store chains like Circle K and Pilot Company, and retail giants like Walmart WMT.N invest massively in charging stations, EVAdoption's McDonald said.
"Like all industries started by a bunch of small startups, over time the big guys jump in and ... they consolidate," McDonald said. "At the end of this decade, the logos are going to be very different."
($1 = 0.9307 euros)
($1 = 0.7967 pounds)
Electric Vehicle Fast Charging Networks Electric Vehicle Fast Charging Networks https://tmsnrt.rs/3R00Mwk
Venture investment in EV charging startups Venture investment in EV charging startups https://tmsnrt.rs/3QObzvb
(Reporting By Nick Carey and Paul Lienert, editing by Ben Klayman and David Gregorio)
((nick.carey@thomsonreuters.com; +44 7385 414 954;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Nick Carey and Paul Lienert LONDON/DETROIT, Dec 13 (Reuters) - Electric vehicle charging companies in Europe and the U.S. have started fighting over the best spots for fast public chargers, and industry watchers predict fresh rounds of consolidation as more big investors enter the fray. In the U.S. market, Tesla TSLA.O is the biggest player, but more convenience stores and fuel stations will soon join the fray and the number of U.S. fast-charging networks will more than double to 54 in 2030 from 25 in 2022, said Loren McDonald, CEO of San Francisco-based research firm EVAdoption. Norway, a leading EV market, has suffered from short-term "over-deployment" this year as companies raced to build out charging stations, Recharge CEO Hakon Vist said.
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By Nick Carey and Paul Lienert LONDON/DETROIT, Dec 13 (Reuters) - Electric vehicle charging companies in Europe and the U.S. have started fighting over the best spots for fast public chargers, and industry watchers predict fresh rounds of consolidation as more big investors enter the fray. For instance, UK's InstaVolt - owned by EQT - has deals with companies like McDonald's MCD.N to build charging stations at their locations. ($1 = 0.9307 euros) ($1 = 0.7967 pounds) Electric Vehicle Fast Charging Networks Electric Vehicle Fast Charging Networks https://tmsnrt.rs/3R00Mwk Venture investment in EV charging startups Venture investment in EV charging startups https://tmsnrt.rs/3QObzvb (Reporting By Nick Carey and Paul Lienert, editing by Ben Klayman and David Gregorio) ((nick.carey@thomsonreuters.com; +44 7385 414 954;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Nick Carey and Paul Lienert LONDON/DETROIT, Dec 13 (Reuters) - Electric vehicle charging companies in Europe and the U.S. have started fighting over the best spots for fast public chargers, and industry watchers predict fresh rounds of consolidation as more big investors enter the fray. Norway, a leading EV market, has suffered from short-term "over-deployment" this year as companies raced to build out charging stations, Recharge CEO Hakon Vist said. ($1 = 0.9307 euros) ($1 = 0.7967 pounds) Electric Vehicle Fast Charging Networks Electric Vehicle Fast Charging Networks https://tmsnrt.rs/3R00Mwk Venture investment in EV charging startups Venture investment in EV charging startups https://tmsnrt.rs/3QObzvb (Reporting By Nick Carey and Paul Lienert, editing by Ben Klayman and David Gregorio) ((nick.carey@thomsonreuters.com; +44 7385 414 954;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Nick Carey and Paul Lienert LONDON/DETROIT, Dec 13 (Reuters) - Electric vehicle charging companies in Europe and the U.S. have started fighting over the best spots for fast public chargers, and industry watchers predict fresh rounds of consolidation as more big investors enter the fray. Many current EV charger companies are backed by long-term investors, and more are expected to launch. For instance, UK's InstaVolt - owned by EQT - has deals with companies like McDonald's MCD.N to build charging stations at their locations.
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600bf86e-282c-40cc-abd8-4dd0cb7720ad
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712059.0
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2023-12-13 00:00:00 UTC
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3 of the Most Attractive Dividend Stocks in the Energy Space
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DCOMP
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https://www.nasdaq.com/articles/3-of-the-most-attractive-dividend-stocks-in-the-energy-space
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The past few years have seen significant investment in the energy sector. While the industry is still in the growth phase, now is the best time to take your pick and enjoy an early mover advantage with energy stocks.
This is a decade defined by climate consciousness, and countries across the world are taking the necessary steps to achieve their long-term goals. The U.S. has a target of 100% carbon-free electricity by 2035 and has committed to triple the nuclear capacity by 2050. We also saw a soaring demand for solar energy this year which benefitted dividend stocks, and while it has subsided now, we could see it pick up in the coming months. If you want to make the most of the urgency surrounding climate change but also want to enjoy passive income, here are the three energy stocks with dividends to consider.
NextEra (NEE)
Source: madamF / Shutterstock.com
NextEra Energy (NYSE:NEE) is a magnificent stock to add to your portfolio for several reasons. The company has had an excellent year and enjoyed EPS growth in the first three quarters. It is also on track to achieve projections for 2023 overall. The company has been recently suffering due to concerns about the high-interest environment and issues related to funding but these are issues of the company’s affiliate NextEra Energy Partners, which is a solely renewable energy company and wouldn’t impact the growth of NextEra Energy.
NextEra Energy is a blend of both, a regulated utility company and a renewable energy company. As the largest electric utility in the country, it continues to generate steady revenue and is also involved in renewable energy sources like solar and wind. The company aims to achieve earnings growth at the rate of 6% to 8% through 2026.
NextEra Energy has a solid history of rewarding shareholders with regular dividends and it pays an above average dividend of 47 cents quarterly for a 3.13% yield. NEE stock is trading at $59 today, and looking at the strong history and annual earnings growth rate, it looks like a good bet. It aims to achieve a 10% dividend growth through 2024 at least. Guggenheim analyst has a price target of $70 for the stock with a buy rating while Citigroup has initiated coverage on the stock with a buy.
Enterprise Products Partners (EDP)
Source: Casimiro PT / Shutterstock.com
You can take home significant passive income by investing in Enterprise Products Partners (NYSE:EPD). The company has a dividend yield of 7.6% and has been increasing the dividend payouts for the past 26 years consecutively. The North America-based company has an impressive portfolio of assets which helps maintain steady cash flow. It charges a fee from companies who use its assets and this helps it ensure steady revenue. The company has an extensive pipeline network and is not exposed to the volatility in oil and gas prices.
In its third quarter results, EDP saw an EPS of 61 cents, and revenue hit $12 billion. The revenue has dropped 22% year-over-year but it should not be alarming as the dip could be temporary. It can also be attributed to the high interest rates, and this decline could be factored in the stock price already. Exchanging hands for $26, EDP stock is very close to the 52-week high and is up 8% year to date. Since the company makes money when others use its assets, there is little risk of losing your money. It has long-term contracts and a strong cash flow position.
Enterprise Products has recently announced four new production projects in the Permian Basin which will help expand the natural gas liquid operations. Since the company’s liquidity position is strong, it can continue to invest in infrastructure and assets. It also has a low-debt balance sheet which works in its favor.
I strongly believe that the company is in a position to sustain the dividends in the coming years. Buy the stock before it soars and enjoy passive income for years to come.
Brookfield Renewable Partners (BEP)
Source: IgorGolovniov / Shutterstock
One of the largest companies in the energy space is Brookfield Renewable Partners (NYSE:BEP). It manages several renewable energy sources including solar, wind and hydroelectric. With over $800 billion in assets under management, Brookfield is one of the strongest players in the industry today. BEP stock is exchanging hands for $25 today and has lost 2% of its value year to date. While it isn’t much, the stock still looks undervalued to me. If you look at the financials, there are many reasons to bet on the stock. It saw a 7% year-over-year rise in revenue to hit $1.18 billion.
The stock enjoys a dividend yield of 5.35% which is impressive. The company is profitable and this means it will not have to worry about borrowing for operations. It is also a sign that it will be able to continue rewarding shareholders for the coming quarters. Its diverse portfolio and impressive capacity make it worth an investment. It is a powerhouse of mergers and acquisitions, and the management aims a 12% to 15% return by increasing the assets. If it can achieve this double-digit return, it could see the stock move upwards.
BEP stock will not be this cheap forever. It could soar higher in 2024, and holding this stock for passive income can be a smart choice. A strong balance sheet, impressive projects, and a stable dividend make it a buy.
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.
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The post 3 of the Most Attractive Dividend Stocks in the Energy Space appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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While the industry is still in the growth phase, now is the best time to take your pick and enjoy an early mover advantage with energy stocks. We also saw a soaring demand for solar energy this year which benefitted dividend stocks, and while it has subsided now, we could see it pick up in the coming months. As the largest electric utility in the country, it continues to generate steady revenue and is also involved in renewable energy sources like solar and wind.
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NextEra (NEE) Source: madamF / Shutterstock.com NextEra Energy (NYSE:NEE) is a magnificent stock to add to your portfolio for several reasons. Enterprise Products Partners (EDP) Source: Casimiro PT / Shutterstock.com You can take home significant passive income by investing in Enterprise Products Partners (NYSE:EPD). Brookfield Renewable Partners (BEP) Source: IgorGolovniov / Shutterstock One of the largest companies in the energy space is Brookfield Renewable Partners (NYSE:BEP).
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips The past few years have seen significant investment in the energy sector. The company has been recently suffering due to concerns about the high-interest environment and issues related to funding but these are issues of the company’s affiliate NextEra Energy Partners, which is a solely renewable energy company and wouldn’t impact the growth of NextEra Energy. 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 of the Most Attractive Dividend Stocks in the Energy Space appeared first on InvestorPlace.
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It aims to achieve a 10% dividend growth through 2024 at least. Buy the stock before it soars and enjoy passive income for years to come. Brookfield Renewable Partners (BEP) Source: IgorGolovniov / Shutterstock One of the largest companies in the energy space is Brookfield Renewable Partners (NYSE:BEP).
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57cca6d3-ff4f-4e06-9b1b-2ae12e20bac4
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712060.0
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2023-12-13 00:00:00 UTC
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Sofi Stock: Buy, Sell, or Hold?
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DCOMP
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https://www.nasdaq.com/articles/sofi-stock%3A-buy-sell-or-hold-0
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nan
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With just three weeks left to the year, the S&P 500 hit a year-to-date high this week and is up about 21%. More investors may be more comfortable getting back into the market as economic indicators point toward a lower risk of a recession and moderating inflation. If these trends hold up, we could be on the cusp of a bull market, and you can get ready for rising prices by investing in top stocks at great prices right now.
SoFi Technologies (NASDAQ: SOFI) has had a phenomenal year and is up 73% in 2023. That's been fueled by incredible performance. But can investors expect more? Let's see if you can still buy shares, or if it's time to cash out.
How SoFi is building loyalty
SoFi has homed in on what's important to its core customers, and it's using that knowledge to expand and become increasingly relevant to how they manage their finances. It calls its strategy the financial services productivity loop, and it involves hooking customers into its system with high rates, low fees, and a simple, all-digital app, and then cross-selling new products and services to them. A Motley Fool survey found that user interface is the most important feature that a younger demographic looks for in an investing app, and that's where SoFi is a star.
This has been a critical shift in moving away from its roots as a student-loan operation into its newer iteration as a full financial services app. Lending is still an important segment of the business, but it has a different role now as one part of a whole that includes bank accounts, investing tools, insurance products, and more. This pivot is generating strong engagement and leading to higher sales, and it's trickling down into improved profitability.
Image source: SoFi Technologies.
A key result noted in this chart is that not only are non-lending products growing in addition to lending products, they are growing exponentially faster than lending products. In the third quarter, 67% of revenue came from non-lending products.
This strategy has been pivotal to SoFi's growth despite the student-loan repayment moratorium that ended in October; a well-rounded suite of products helps it thrive in different kinds of economies.
As the loan-repayment moratorium ends, and interest rates have stabilized, lending will contribute more value to the whole. SoFi Chief Executive Officer Anthony Noto pointed out that 77% of third-quarter adjusted net revenue in the lending segment was net interest income, which increased 90% over last year to $265 million. That was almost double expenses in this segment.
Higher engagement leads to improved profitability
That's how Noto is painting the picture of SoFi's path toward profitability. It's still investing in and laying the foundation of a powerhouse financial services company, attracting new members and getting closer to profitability at scale.
The company added 717,000 new customers in Q3, a 47% increase over last year. Deposits rose 23% year over year, or by $2.9 billion, to $15.7 billion, and deposits invested in loans or other assets lead to higher earnings through net interest income. Net interest income in the financial services segment increased 231% year over year in Q3, and it turned a positive contribution to profit for the first time.
Management reiterated that it expects to report positive net income in the 2023 fourth quarter.
Can SoFi stock continue to climb?
SoFi stock trades at a price-to-sales ratio of 3.8 at the current price. That's an attractive valuation for a high-growth stock. It has a huge growth runway, and it's on its way toward net profitability. If you sell now, you could pocket some gains, but you might be giving up on a huge opportunity over the long term. If you have some appetite for risk, I recommend buying SoFi stock.
Should you invest $1,000 in SoFi Technologies right now?
Before you buy stock in SoFi 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 SoFi 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 the S&P 500 since 2002*.
See the 10 stocks
*Stock Advisor returns as of December 7, 2023
Jennifer Saibil has positions in SoFi Technologies. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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A Motley Fool survey found that user interface is the most important feature that a younger demographic looks for in an investing app, and that's where SoFi is a star. Lending is still an important segment of the business, but it has a different role now as one part of a whole that includes bank accounts, investing tools, insurance products, and more. This strategy has been pivotal to SoFi's growth despite the student-loan repayment moratorium that ended in October; a well-rounded suite of products helps it thrive in different kinds of economies.
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SoFi Chief Executive Officer Anthony Noto pointed out that 77% of third-quarter adjusted net revenue in the lending segment was net interest income, which increased 90% over last year to $265 million. Net interest income in the financial services segment increased 231% year over year in Q3, and it turned a positive contribution to profit for the first time. Before you buy stock in SoFi 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 SoFi Technologies wasn't one of them.
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Net interest income in the financial services segment increased 231% year over year in Q3, and it turned a positive contribution to profit for the first time. Before you buy stock in SoFi 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 SoFi Technologies wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 7, 2023 Jennifer Saibil has positions in SoFi Technologies.
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Net interest income in the financial services segment increased 231% year over year in Q3, and it turned a positive contribution to profit for the first time. Before you buy stock in SoFi 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 SoFi Technologies wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 7, 2023 Jennifer Saibil has positions in SoFi Technologies.
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cf00dd66-7fd5-44bc-b8ed-3691d1b7629b
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712061.0
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2023-12-13 00:00:00 UTC
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New Strong Sell Stocks for December 13th
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DCOMP
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https://www.nasdaq.com/articles/new-strong-sell-stocks-for-december-13th-1
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Here are three stocks added to the Zacks Rank #5 (Strong Sell) List today:
LPL Financial Holdings Inc. LPLA is an integrated platform of brokerage and investment advisory services. The Zacks Consensus Estimate for its current year earnings has been revised 4% downward over the last 60 days.
Guess?, Inc. GES is an apparel and accessories company. The Zacks Consensus Estimate for its current year earnings has been revised 9.6% downward over the last 60 days.
Winnebago Industries, Inc. WGO is a recreation vehicles and marine products company. The Zacks Consensus Estimate for its current year earnings has been revised 5.6% downward over the last 60 days.
View the entire Zacks Rank #5 List.
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
Guess?, Inc. (GES) : Free Stock Analysis Report
LPL Financial Holdings Inc. (LPLA) : Free Stock Analysis Report
Winnebago Industries, Inc. (WGO) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Here are three stocks added to the Zacks Rank #5 (Strong Sell) List today: LPL Financial Holdings Inc. LPLA is an integrated platform of brokerage and investment advisory services. 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.
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Here are three stocks added to the Zacks Rank #5 (Strong Sell) List today: LPL Financial Holdings Inc. LPLA is an integrated platform of brokerage and investment advisory services. The Zacks Consensus Estimate for its current year earnings has been revised 4% downward over the last 60 days. Click to get this free report Guess?, Inc. (GES) : Free Stock Analysis Report LPL Financial Holdings Inc. (LPLA) : Free Stock Analysis Report Winnebago Industries, Inc. (WGO) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Here are three stocks added to the Zacks Rank #5 (Strong Sell) List today: LPL Financial Holdings Inc. LPLA is an integrated platform of brokerage and investment advisory services. The Zacks Consensus Estimate for its current year earnings has been revised 4% downward over the last 60 days. Click to get this free report Guess?, Inc. (GES) : Free Stock Analysis Report LPL Financial Holdings Inc. (LPLA) : Free Stock Analysis Report Winnebago Industries, Inc. (WGO) : Free Stock Analysis Report To read this article on Zacks.com click here.
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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 Guess?, Inc. (GES) : Free Stock Analysis Report LPL Financial Holdings Inc. (LPLA) : Free Stock Analysis Report Winnebago Industries, Inc. (WGO) : Free Stock Analysis Report To read this article on Zacks.com click here.
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bf0bbf51-1979-4a3e-9cf5-0798633d109f
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712062.0
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2023-12-13 00:00:00 UTC
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Better AI Stock: Nvidia vs. Palantir Technologies
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DCOMP
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https://www.nasdaq.com/articles/better-ai-stock%3A-nvidia-vs.-palantir-technologies
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nan
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Share prices of Nvidia (NASDAQ: NVDA) and Palantir Technologies (NYSE: PLTR) have been in red-hot form on the stock market this year, recording gains of 225% and 177%, respectively. That performance can be attributed, in part, to their artificial intelligence (AI)-related efforts. Both companies stand to gain from different aspects of the rapid adoption of this technology.
Nvidia is clocking astronomical growth thanks to the booming demand for AI hardware, such as data center graphics cards and server processors. Palantir is expected to win big thanks to the increased adoption of AI software.
If you were to choose one of these high-flying AI stocks for your portfolio today, which one should you buy? Let's find out.
The case for Nvidia
As already mentioned, AI supercharged Nvidia's growth, as evidenced by the company's recent quarterly results. Its fiscal 2024 third-quarter revenue (for the three months ended Oct. 29, 2023) was up a whopping 206% year over year to a record $18.1 billion. Much of that growth came from its data center business segment where revenue jumped 279% year over year to $14.5 billion, accounting for 80% of the top line.
The good news for Nvidia investors is that the company guided for even better growth in the current quarter. Its $20 billion revenue forecast points toward a 230% year-over-year increase. Also, it points toward a huge turnaround when compared to the 21% revenue drop the company witnessed in the same period last year when it was struggling to sell its gaming graphics cards owing to weak personal computer (PC) demand.
Demand for the company's data center graphics processing units (GPUs) is so strong that customers are reportedly having to wait for a year to get their hands on Nvidia's AI chips, according to market research firm Omdia. The firm estimates that Nvidia sold almost half a million units of its H100 and A100 data center GPUs in the previous quarter, driven by massive demand from the likes of Meta Platforms, Microsoft, Alphabet's Google, Amazon, Oracle, and others.
Nvidia expects to ship more than half a million units of its data center GPUs once again in the current quarter. This means Nvidia's data center GPU shipments in the final six months of the year could exceed a million units. What's more, Nvidia expects to triple its output of H100 GPUs in 2024 and has also announced a new, more powerful chip that it plans to manufacture in addition to the highly popular H100.
Not surprisingly, analysts forecast Nvidia will deliver yet another year of terrific growth in fiscal 2025, which will begin in February 2024, with an estimated jump of 57% in its top line to $92 billion. All this indicates that Nvidia stock could continue to head higher in 2024 thanks to its robust AI-fueled growth.
The case for Palantir Technologies
While investors consider Nvidia stock to capitalize on the booming demand for AI hardware, Palantir Technologies can help them benefit from the software side of things. Demand for AI software is expected to increase at an annual rate of 31% through 2027 to $251 billion at the end of the forecast period, according to IDC.
Artificial intelligence platforms, which allow organizations to develop AI models and applications, are expected to be the second-largest niche within the AI software market. IDC forecasts that the AI platforms market could grow at almost 36% a year. This bodes well for Palantir as the company was ranked the top vendor of AI platforms in 2021 by IDC in terms of market share and revenue.
The AI platforms market was worth $14 billion in 2021 and recorded 37% growth that year. Assuming it grows at an annual pace of 36% through 2027 as IDC predicts, it could generate annual revenue of $88 billion after four years. Palantir generated $2.1 billion in revenue in the trailing 12 months, which means that the growing demand for AI platform software has the potential to supercharge its growth.
That won't be surprising as Palantir is already witnessing healthy demand for its Artificial Intelligence Platform (AIP). The company claims that the number of customers using AIP tripled in the previous quarter and added that almost 300 organizations had used the product within five months of launch. And now, Palantir is looking to increase the reach of AIP by organizing boot camps wherein it will teach customers to quickly deploy AI use cases for their businesses.
So, Palantir could eventually turn out to be a top AI pick, but the reality is that the company is currently facing a slowdown. Tepid government spending means that Palantir's revenue in 2023 is expected to increase 16% year over year to $2.2 billion, down from the 24% growth it clocked in 2022. Investors, therefore, will have to wait for AI to start moving the needle for Palantir, and this isn't the only reason why it may lose out to Nvidia as the better AI pick.
The verdict
The big surge in these two stocks this year made each quite expensive. Palantir trades at over 19 times sales, while Nvidia is slightly more expensive at 26 times sales. Meanwhile, Palantir's trailing price-to-earnings (P/E) ratio stands at 253, which is way higher than Nvidia's trailing earnings multiple of 62.
Nvidia is the cheaper stock on a forward earnings basis as well, with a multiple of 55 as compared to Palantir's forward P/E ratio of 69. What's more, both companies are almost equally matched as far as the forward price-to-sales ratio is concerned.
NVDA PS Ratio (Forward) data by YCharts.
All this strongly suggests Nvidia is the less expensive AI stock of the two companies being discussed here and the better pick. The semiconductor giant is already growing at a terrific pace, and its valuation is relatively more attractive. Palantir, on the other hand, has yet to make the most of the huge opportunity in AI software, leaving investors with an easy decision to make about which one of these two companies they should be buying right now.
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 7, 2023
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Meta Platforms, Microsoft, Nvidia, Oracle, and Palantir Technologies. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Also, it points toward a huge turnaround when compared to the 21% revenue drop the company witnessed in the same period last year when it was struggling to sell its gaming graphics cards owing to weak personal computer (PC) demand. Demand for the company's data center graphics processing units (GPUs) is so strong that customers are reportedly having to wait for a year to get their hands on Nvidia's AI chips, according to market research firm Omdia. The firm estimates that Nvidia sold almost half a million units of its H100 and A100 data center GPUs in the previous quarter, driven by massive demand from the likes of Meta Platforms, Microsoft, Alphabet's Google, Amazon, Oracle, and others.
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Nvidia is clocking astronomical growth thanks to the booming demand for AI hardware, such as data center graphics cards and server processors. Palantir generated $2.1 billion in revenue in the trailing 12 months, which means that the growing demand for AI platform software has the potential to supercharge its growth. The Motley Fool has positions in and recommends Alphabet, Amazon, Meta Platforms, Microsoft, Nvidia, Oracle, and Palantir Technologies.
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Demand for the company's data center graphics processing units (GPUs) is so strong that customers are reportedly having to wait for a year to get their hands on Nvidia's AI chips, according to market research firm Omdia. The case for Palantir Technologies While investors consider Nvidia stock to capitalize on the booming demand for AI hardware, Palantir Technologies can help them benefit from the software side of things. Before you buy stock in Nvidia, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Nvidia wasn't one of them.
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Palantir generated $2.1 billion in revenue in the trailing 12 months, which means that the growing demand for AI platform software has the potential to supercharge its growth. All this strongly suggests Nvidia is the less expensive AI stock of the two companies being discussed here and the better pick. Before you buy stock in Nvidia, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Nvidia wasn't one of them.
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6192caa0-03a0-466d-b244-0d26f38c6623
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712063.0
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2023-12-13 00:00:00 UTC
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5 Top Bank Stocks to Buy Now, According to Analysts – December 2023
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DCOMP
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https://www.nasdaq.com/articles/5-top-bank-stocks-to-buy-now-according-to-analysts-december-2023
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nan
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nan
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Bank stocks have witnessed a challenging 2023, facing significant unrealized losses, rising deposit costs, and sluggish loan growth. These pressures stemmed from the Federal Reserve's aggressive rate hikes to combat inflation. However, the possibility of rate cuts starting next year has fostered optimism within the sector. Thus, with potential rate cuts and improving economic conditions, the banking sector offers promising opportunities for investors.
To help identify what could be the best bank stocks for your portfolio, we have leveraged the TipRanks Stock Screener tool. These stocks have received a Strong buy rating from analysts and boast an Outperform Smart Score (i.e., 8, 9, or 10) on TipRanks, which points to their potential to beat the broader market. Further, analysts’ price targets reflect an upside potential of more than 10%.
According to the screener, the following stocks have the potential to grow and are analysts’ favorites.
Old Second Bancorp (NASDAQ:OSBC) – The stock has an average price target of $17.75, which implies a 15.64% upside potential from current levels. Also, its Smart Score of “Perfect 10” is encouraging.
Essent Group (NYSE:ESNT) – The stock’s price forecast of $56.60 implies nearly 13% upside potential. On TipRanks, ESNT earns a Smart Score of eight.
Bank of NT Butterfield & Son (NYSE:NTB) – The stock’s average price target of $35.25 implies a consensus upside of 14.1% and carries a Smart Score of eight.
The Bancorp (NASDAQ:TBBK) – TBBK stock’s average price target implies a consensus upside of 25%. Moreover, it has an outperforming Smart Score of nine.
Veritex (NASDAQ:VBTX) – The stock’s price forecast of $23.75 implies a nearly 13% upside. VBTX stock has a Smart Score of eight.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Bank stocks have witnessed a challenging 2023, facing significant unrealized losses, rising deposit costs, and sluggish loan growth. These stocks have received a Strong buy rating from analysts and boast an Outperform Smart Score (i.e., 8, 9, or 10) on TipRanks, which points to their potential to beat the broader market. Bank of NT Butterfield & Son (NYSE:NTB) – The stock’s average price target of $35.25 implies a consensus upside of 14.1% and carries a Smart Score of eight.
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Further, analysts’ price targets reflect an upside potential of more than 10%. Essent Group (NYSE:ESNT) – The stock’s price forecast of $56.60 implies nearly 13% upside potential. The Bancorp (NASDAQ:TBBK) – TBBK stock’s average price target implies a consensus upside of 25%.
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These stocks have received a Strong buy rating from analysts and boast an Outperform Smart Score (i.e., 8, 9, or 10) on TipRanks, which points to their potential to beat the broader market. Old Second Bancorp (NASDAQ:OSBC) – The stock has an average price target of $17.75, which implies a 15.64% upside potential from current levels. Bank of NT Butterfield & Son (NYSE:NTB) – The stock’s average price target of $35.25 implies a consensus upside of 14.1% and carries a Smart Score of eight.
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Further, analysts’ price targets reflect an upside potential of more than 10%. On TipRanks, ESNT earns a Smart Score of eight. Bank of NT Butterfield & Son (NYSE:NTB) – The stock’s average price target of $35.25 implies a consensus upside of 14.1% and carries a Smart Score of eight.
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35eee6c4-b0dd-415b-ae20-3497b180dac9
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712064.0
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2023-12-13 00:00:00 UTC
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ABBV, NVO, or LLY: Which Healthcare Stock Could Generate the Highest Returns?
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https://www.nasdaq.com/articles/abbv-nvo-or-lly%3A-which-healthcare-stock-could-generate-the-highest-returns
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Healthcare companies are not completely immune to macro pressures but are generally more resilient compared to companies in other sectors. This is because of the essential nature of medicines and services offered by healthcare companies. Moreover, several healthcare companies are developing various treatments to address unmet medical needs, which is expected to drive their long-term growth. Using TipRanks’ Stock Comparison Tool, we placed AbbVie (NYSE:ABBV), Novo Nordisk (NYSE:NVO), and Eli Lilly (NYSE:LLY) against each other to find the healthcare stock that could fetch the most attractive returns as per Wall Street analysts.
AbbVie (NYSE:ABBV)
AbbVie investors have been worried about the impact of the loss of exclusivity of the company’s blockbuster rheumatoid arthritis drug Humira. In Q3 2023, Humira’s revenue declined 36.2% to $3.55 billion. However, the company is confident about mitigating the impact of Humira’s lower revenue with growing sales of other drugs like immunology treatments Skyrizi and Rinvoq.
Additionally, AbbVie recently announced two major acquisitions that are expected to boost the company’s growth in the times ahead. AbbVie is acquiring ImmunoGen for $10 billion to accelerate its entry into the ovarian cancer commercial market.
Earlier this month, the company announced the buyout of Cerevel Therapeutics for $8.7 billion, with the acquisition expected to enhance its neuroscience pipeline.
Is ABBV Stock a Buy or Sell?
On Monday, Goldman Sachs analyst Chris Shibutani upgraded AbbVie to Buy from Hold with a price target of $173. The analyst thinks that Humira’s sales have held up better than he expected despite competition from multiple biosimilars. Shibutani also noted the strong performance of AbbVi’s immunology treatments, Rinvoq and Skyrizi. He also expects AbbVie’s aesthetics franchise to reaccelerate next year, fueled by Botox’s dominant position in the industry.
Wall Street has a Moderate Buy consensus rating on Abbvie based on eight Buys and five Holds. The average price target of $170.25 implies 11.1% upside. Shares are down 5% year-to-date. ABBV offers a dividend yield of 4%.
Novo Nordisk (NYSE:NVO)
Denmark-based Novo Nordisk had a strong run this year, thanks to the buzz around the company’s weight loss drugs Wegovy and Ozempic. The company’s sales in the first nine months of 2023 increased 29% to 166.4 billion Danish Kroner, while operating profit rose 31% to 75.8 billion Danish Kroner. Novo Nordisk’s solid results were driven by a 36% rise in the sales of its Diabetes and Obesity care portfolio.
Looking ahead, the company aims to bolster its leadership in diabetes care, with a goal to reach aglobal marketvalue share of more than one-third by 2025. The company is also targeting obesity drug sales of 25 billion Danish Kroner by 2025. In the first nine months of 2023, NVO’s obesity care sales rose by 167% to 30.4 billion Danish Kroner.
What is the Price Target for Novo Nordisk Stock?
Earlier this month, Cantor Fitzgerald analyst Louise Chen initiated coverage on Novo Nordisk stock with a Buy rating and a price target of $120. Chen expects the demand for obesity drugs to remain attractive in the years ahead. The sales (annualized) for this category are already more than $10 billion.
The analyst estimates sales to grow to $100 billion over the next 5 to 7 years, reflecting nearly 40% to 60% CAGR (compound annual growth rate). Chen expects NVO to be an “outsized beneficiary” of this robust sales trend, given its leadership, which is currently a duopoly with Eli Lilly.
Overall, Novo Nordisk scores Wall Street’s Strong Buy consensus rating based on four unanimous Buys. The average price target of $116.67 implies 21.3% upside potential. Shares have risen over 42% since the start of this year.
Eli Lilly (NYSE:LLY)
Eli Lilly shares have rallied about 60% year-to-date due to the optimism around tirzepatide, which has been approved for diabetes (Mounjaro) and weight loss (Zepbound). However, on Monday, LLY stock declined 2.3% following the release of data that indicated that patients who took Zepbound regained about 14% of their weight over a period of about one year.
However, BMO Capital analyst Evan David Seigerman noted that this data was initially announced in October and was well-received back then. He thinks that the concern over post-treatment weight regain is “overblown,” with the pullback in the stock presenting a buying opportunity.
Coming to recent performance, Eli Lilly reported better-than-expected Q3 2023 results, driven by a 37% growth in its revenue to $9.5 billion. The top line gained from robust sales of its diabetes drug Mounjaro and higher revenue from several other treatments, including breast cancer pill Verzenio and diabetes drug Jardiance. The company is confident about the road ahead, supported by a robust pipeline that it continues to enhance through internal drug development and strategic acquisitions.
Is Eli Lilly a Good Stock to Buy?
On Tuesday, Morgan Stanley analyst Terence Flynn increased the price target for LLY stock to $727 from $722 and maintained a Buy rating. While providing a 2024 outlook for the North American biopharma sector, Flynn highlighted four themes – “diabesity,” product cycles, policy, and rates. For Eli Lilly, the analyst expects "another year of dispersion" and recommends investors to continue to focus on companies that can deliver growth in the second half of the decade.
Including Flynn, 19 analysts have a Buy rating on Eli Lilly stock, while one has a Hold recommendation. At $650.17, the average LLY price target implies 11.3% upside potential.
Conclusion
Wall Street is highly bullish on the prospects of Novo Nordisk and Eli Lilly but cautiously optimistic about AbbVie. Currently, analysts see higher upside potential in Novo Nordisk’s stock, thanks to the stellar demand for its weight loss drugs.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Earlier this month, Cantor Fitzgerald analyst Louise Chen initiated coverage on Novo Nordisk stock with a Buy rating and a price target of $120. The company is confident about the road ahead, supported by a robust pipeline that it continues to enhance through internal drug development and strategic acquisitions. For Eli Lilly, the analyst expects "another year of dispersion" and recommends investors to continue to focus on companies that can deliver growth in the second half of the decade.
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Using TipRanks’ Stock Comparison Tool, we placed AbbVie (NYSE:ABBV), Novo Nordisk (NYSE:NVO), and Eli Lilly (NYSE:LLY) against each other to find the healthcare stock that could fetch the most attractive returns as per Wall Street analysts. Overall, Novo Nordisk scores Wall Street’s Strong Buy consensus rating based on four unanimous Buys. At $650.17, the average LLY price target implies 11.3% upside potential.
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Using TipRanks’ Stock Comparison Tool, we placed AbbVie (NYSE:ABBV), Novo Nordisk (NYSE:NVO), and Eli Lilly (NYSE:LLY) against each other to find the healthcare stock that could fetch the most attractive returns as per Wall Street analysts. Novo Nordisk (NYSE:NVO) Denmark-based Novo Nordisk had a strong run this year, thanks to the buzz around the company’s weight loss drugs Wegovy and Ozempic. Earlier this month, Cantor Fitzgerald analyst Louise Chen initiated coverage on Novo Nordisk stock with a Buy rating and a price target of $120.
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The company is also targeting obesity drug sales of 25 billion Danish Kroner by 2025. Earlier this month, Cantor Fitzgerald analyst Louise Chen initiated coverage on Novo Nordisk stock with a Buy rating and a price target of $120. Eli Lilly (NYSE:LLY) Eli Lilly shares have rallied about 60% year-to-date due to the optimism around tirzepatide, which has been approved for diabetes (Mounjaro) and weight loss (Zepbound).
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5ed9e2a5-e9de-45d6-8c21-44f8b6ed793b
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712065.0
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2023-12-13 00:00:00 UTC
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FedEx (FDX) to Report Q2 Earnings: Is a Beat in the Offing?
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DCOMP
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https://www.nasdaq.com/articles/fedex-fdx-to-report-q2-earnings%3A-is-a-beat-in-the-offing
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FedEx Corporation FDX is set to release second-quarter fiscal 2024 (ended November 30, 2023) results on Dec 19, 2023, after market close.
FDX has an impressive surprise record, with its earnings per share surpassing the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 16.94%.
FedEx Corporation Price and EPS Surprise
FedEx Corporation price-eps-surprise | FedEx Corporation Quote
Given this backdrop, let's examine the factors that are likely to have influenced FedEx’s performance in the soon-to-be-reported quarter.
Like the past few quarters, we expect lackluster shipping demand to have hurt FedEx’s performance in second-quarter fiscal 2024. The performance of the Express unit, FDX's largest segment, is likely to have been severely hurt due to the demand-induced volume weakness. We anticipate revenues from the Express unit to be down 4.3% from the second-quarter fiscal 2023 actuals.
To navigate the weaker-than-expected business environment, FDX has been cutting costs. We expect total operating expenses (adjusted) to decline 3.9% from the year-ago actuals, driven by the company’s cost-saving plan. FDX’s cost-cutting efforts are likely to have aided its bottom-line performance in the to-be-reported quarter. The Zacks Consensus Estimate for second-quarter fiscal 2024 earnings per share has been revised 1.5% upward in the past 60 days.
What Does the Zacks Model Say?
Our proven model conclusively predicts an earnings beat for FedEx this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings surprise, as is the case here.
Earnings ESP: FedEx has an Earnings ESP of +2.48% as the Most Accurate Estimate is pegged at $4.24, 11 cents above the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: FedEx currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Highlights of Q1 Earnings
FedEx's first-quarter fiscal 2024 earnings per share (excluding 32 cents from non-recurring items) of $4.55 beat the Zacks Consensus Estimate of $3.70. The bottom line improved year over year.
Revenues of $21,681 million lagged the Zacks Consensus Estimate of $21,836.6 million and decreased 6.5% from the year-ago quarter’s reported figure. Quarterly results were favorably impacted by the execution of the company's DRIVE program initiatives and continued focus on revenue quality. The improvement in operating results was partially offset by ongoing demand weakness.
Recent Results of Industry Peers
Below we present the latest quarterly results of United Parcel Service UPS and Air Transport Services ATSG, which belong to the same industry as FedEx.
UPS reported third-quarter 2023 earnings per share of $1.57, beating the Zacks Consensus Estimate of $1.53. However, the company’s earnings declined 47.5% year over year. Revenues of $21,061 million lagged the Zacks Consensus Estimate of $21,538.7 million and decreased 12.8% year over year.
UPS generated $7,827 million of net cash from operating activities in the first nine months of 2023. Capital expenditure was $3,109 million. The free cash flow was $4,887 million. The overall adjusted operating profit fell 48.7% year over year to $1,615 million.
Air Transport Services' third-quarter 2023 quarterly earnings per share (excluding 8 cents from non-recurring items) of 32 cents missed the Zacks Consensus Estimate of 49 cents and declined 46.7% year over year. Revenues of $523.1 million surpassed the Zacks Consensus Estimate of $522.7 million and rose 1.2% year over year.
Adjusted EBITDA plunged 16% year over year to $137 million. The operating cash flow fell to $117.5 million from $147.9 million a year ago. In the third quarter, the adjusted free cash flow was $68.8 million compared with $91.4 million in the prior 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
United Parcel Service, Inc. (UPS) : Free Stock Analysis Report
FedEx Corporation (FDX) : Free Stock Analysis Report
Air Transport Services Group, Inc (ATSG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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FedEx Corporation FDX is set to release second-quarter fiscal 2024 (ended November 30, 2023) results on Dec 19, 2023, after market close. FDX has an impressive surprise record, with its earnings per share surpassing the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 16.94%. 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.
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Highlights of Q1 Earnings FedEx's first-quarter fiscal 2024 earnings per share (excluding 32 cents from non-recurring items) of $4.55 beat the Zacks Consensus Estimate of $3.70. Air Transport Services' third-quarter 2023 quarterly earnings per share (excluding 8 cents from non-recurring items) of 32 cents missed the Zacks Consensus Estimate of 49 cents and declined 46.7% year over year. Click to get this free report United Parcel Service, Inc. (UPS) : Free Stock Analysis Report FedEx Corporation (FDX) : Free Stock Analysis Report Air Transport Services Group, Inc (ATSG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Revenues of $21,061 million lagged the Zacks Consensus Estimate of $21,538.7 million and decreased 12.8% year over year. Air Transport Services' third-quarter 2023 quarterly earnings per share (excluding 8 cents from non-recurring items) of 32 cents missed the Zacks Consensus Estimate of 49 cents and declined 46.7% year over year. Click to get this free report United Parcel Service, Inc. (UPS) : Free Stock Analysis Report FedEx Corporation (FDX) : Free Stock Analysis Report Air Transport Services Group, Inc (ATSG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Like the past few quarters, we expect lackluster shipping demand to have hurt FedEx’s performance in second-quarter fiscal 2024. However, the company’s earnings declined 47.5% year over year. Download FREE: How To Profit From Trillions On Spending For Infrastructure >> Want the latest recommendations from Zacks Investment Research?
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f6d4ba7c-f446-40fa-8cd2-59cf87fc6690
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712066.0
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2023-12-13 00:00:00 UTC
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Australian shares end higher; all eyes on Fed policy decision
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https://www.nasdaq.com/articles/australian-shares-end-higher-all-eyes-on-fed-policy-decision
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By Shivangi Lahiri
Dec 13 (Reuters) - Australian shares ended higher on Wednesday, with financials and mining stocks leading gains, while investors awaited the U.S. Federal Reserve's policy decision for clues on the interest rate trajectory.
The S&P/ASX 200 index .AXJO closed 0.3% up at 7,257.80 - its highest closing level in nearly three months. The benchmark rose for a fourth consecutive session. It had ended 0.5% higher on Tuesday.
Markets are waiting for the outcome of the Fed's two-day meeting, ending on Wednesday, where the central bank is widely expected to keep interest rates unchanged.
Investors will look for clues on the Fed's timing for rate cuts, even as U.S. inflation unexpectedly rose in November, dampening hopes of the central bank pivoting to cuts early next year.
"Any data that confirms policy rates have peaked in the U.S. or Australia will support both bond and equity markets, especially if that data relates to easing pressure on inflation from a looser stance in the labour market," said Kerry Craig,global marketstrategist at J.P. Morgan.
In Sydney, financials .AXFJ closed 0.6% higher, with the 'Big Four' banks rising between 0.5% and 1%.
Heavyweight mining stocks .AXMM advanced 0.2% as iron ore futures jumped. IRONORE/
Fortescue FMG.AX rose 1.3% to hit a record high, Rio Tinto RIO.AX jumped 1% to a two-year high, and BHP Group BHP.AXgained 0.6%.
"The U.S. dollar is likely to continue to weaken and buoy commodity prices, in turn supporting Australia's mining stocks," said Tina Teng, market analyst at CMC Markets.
The U.S. dollar is trading flat at 103.86.
The healthcare sub-index .AXHJ also closed up 1.1%.
In contrast, energy stocks .AXEJ slipped 0.8% after oil prices fell over 3% overnight on oversupply concerns. O/R
Among individual stocks, Sigma Healthcare SIG.AXreported its best day ever, soaring as much as 76% and closing up 48.1% after the company said it would merge with Chemist Warehouse Group to form an A$8.8 billion ($5.77 billion) entity.
New Zealand's benchmark S&P/NZX 50 index .NZ50 ended 0.8% higher at 11,475.77 points.
(Reporting by Shivangi Lahiri in Bengaluru; Editing by Sonia Cheema)
((shivangi.lahiri@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Shivangi Lahiri Dec 13 (Reuters) - Australian shares ended higher on Wednesday, with financials and mining stocks leading gains, while investors awaited the U.S. Federal Reserve's policy decision for clues on the interest rate trajectory. Markets are waiting for the outcome of the Fed's two-day meeting, ending on Wednesday, where the central bank is widely expected to keep interest rates unchanged. In contrast, energy stocks .AXEJ slipped 0.8% after oil prices fell over 3% overnight on oversupply concerns.
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By Shivangi Lahiri Dec 13 (Reuters) - Australian shares ended higher on Wednesday, with financials and mining stocks leading gains, while investors awaited the U.S. Federal Reserve's policy decision for clues on the interest rate trajectory. "The U.S. dollar is likely to continue to weaken and buoy commodity prices, in turn supporting Australia's mining stocks," said Tina Teng, market analyst at CMC Markets. New Zealand's benchmark S&P/NZX 50 index .NZ50 ended 0.8% higher at 11,475.77 points.
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By Shivangi Lahiri Dec 13 (Reuters) - Australian shares ended higher on Wednesday, with financials and mining stocks leading gains, while investors awaited the U.S. Federal Reserve's policy decision for clues on the interest rate trajectory. "Any data that confirms policy rates have peaked in the U.S. or Australia will support both bond and equity markets, especially if that data relates to easing pressure on inflation from a looser stance in the labour market," said Kerry Craig,global marketstrategist at J.P. Morgan. "The U.S. dollar is likely to continue to weaken and buoy commodity prices, in turn supporting Australia's mining stocks," said Tina Teng, market analyst at CMC Markets.
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In Sydney, financials .AXFJ closed 0.6% higher, with the 'Big Four' banks rising between 0.5% and 1%. "The U.S. dollar is likely to continue to weaken and buoy commodity prices, in turn supporting Australia's mining stocks," said Tina Teng, market analyst at CMC Markets. New Zealand's benchmark S&P/NZX 50 index .NZ50 ended 0.8% higher at 11,475.77 points.
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936296d6-03a0-4733-9116-e17a34315d23
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712067.0
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2023-12-13 00:00:00 UTC
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Pharming To Develop Leniolisib For Additional PIDs Beyond APDS; Phase 2 Trial To Initiate In Q2
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https://www.nasdaq.com/articles/pharming-to-develop-leniolisib-for-additional-pids-beyond-apds-phase-2-trial-to-initiate
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(RTTNews) - Dutch biopharmaceutical company Pharming Group N.V. (PHAR) announced Wednesday its plans to develop leniolisib for additional primary immunodeficiencies or PIDs beyond activated phosphoinositide 3-kinase delta syndrome or APDS.
As part of its expansion plans for its rare disease pipeline, the company said it has engaged with the US Food and Drug Administration and has received feedback on its plans to develop leniolisib for PID disorders with immune dysregulation.
The FDA recently reviewed a Phase 2, proof of concept, clinical trial protocol in PIDs with immune dysregulation linked to PI3K? signaling submitted under the existing leniolisib IND.
Pharming noted that Joenja (leniolisib) is an oral small molecule phosphoinositide 3-kinase delta (PI3K?) inhibitor approved in the US as the first and only targeted treatment of activated phosphoinositide 3-kinase delta (PI3Kd) syndrome (APDS) in adult and pediatric patients 12 years of age and older.
Pharming said the Phase 2 clinical trial will evaluate leniolisib in PIDs with immune dysregulation linked to PI3K? signaling in lymphocytes, with similar clinical phenotypes to APDS.
The Phase 2 clinical trial, a single arm, open-label, dose range-finding study, will be conducted in around 12 patients, starting in the second quarter of 2024.
The objectives for the trial will be to assess safety and tolerability, pharmacokinetics, pharmacodynamics, and explore clinical efficacy of leniolisib in this new PID population. The trial has been designed to inform a subsequent Phase 3 program, the company noted.
Jocelyn Farmer, Director, Clinical Immunodeficiency Program, Beth Israel Lahey Health, said, "PI3K? is an important regulator of lymphocytes, and unbalanced PI3K? signaling in lymphocytes is a key signature of immune dysregulation among PID patients who develop lymphoproliferative and autoimmune disease. Therefore, I am very excited to see Pharming progressing the evaluation of the PI3K? inhibitor leniolisib into PIDs beyond the FDA-approved APDS indication, where it promises an opportunity to provide critical benefit to patients with a large, currently unmet, clinical need."
In Tuesday's after hours trading on Nasdaq, Pharming Group shares were at $10.64, down 4.3 percent.
For More Such Health News, visit rttnews.com
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - Dutch biopharmaceutical company Pharming Group N.V. (PHAR) announced Wednesday its plans to develop leniolisib for additional primary immunodeficiencies or PIDs beyond activated phosphoinositide 3-kinase delta syndrome or APDS. inhibitor approved in the US as the first and only targeted treatment of activated phosphoinositide 3-kinase delta (PI3Kd) syndrome (APDS) in adult and pediatric patients 12 years of age and older. inhibitor leniolisib into PIDs beyond the FDA-approved APDS indication, where it promises an opportunity to provide critical benefit to patients with a large, currently unmet, clinical need."
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(RTTNews) - Dutch biopharmaceutical company Pharming Group N.V. (PHAR) announced Wednesday its plans to develop leniolisib for additional primary immunodeficiencies or PIDs beyond activated phosphoinositide 3-kinase delta syndrome or APDS. inhibitor approved in the US as the first and only targeted treatment of activated phosphoinositide 3-kinase delta (PI3Kd) syndrome (APDS) in adult and pediatric patients 12 years of age and older. Pharming said the Phase 2 clinical trial will evaluate leniolisib in PIDs with immune dysregulation linked to PI3K?
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(RTTNews) - Dutch biopharmaceutical company Pharming Group N.V. (PHAR) announced Wednesday its plans to develop leniolisib for additional primary immunodeficiencies or PIDs beyond activated phosphoinositide 3-kinase delta syndrome or APDS. As part of its expansion plans for its rare disease pipeline, the company said it has engaged with the US Food and Drug Administration and has received feedback on its plans to develop leniolisib for PID disorders with immune dysregulation. Pharming said the Phase 2 clinical trial will evaluate leniolisib in PIDs with immune dysregulation linked to PI3K?
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Pharming said the Phase 2 clinical trial will evaluate leniolisib in PIDs with immune dysregulation linked to PI3K? signaling in lymphocytes, with similar clinical phenotypes to APDS. signaling in lymphocytes is a key signature of immune dysregulation among PID patients who develop lymphoproliferative and autoimmune disease.
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4b1290f4-b49f-47b4-8fca-ef8170d4e628
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712068.0
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2023-12-13 00:00:00 UTC
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With Macau Business Picking Up Pace, Will Wynn Stock Recover To Pre-Inflation Shock Highs Of $140?
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https://www.nasdaq.com/articles/with-macau-business-picking-up-pace-will-wynn-stock-recover-to-pre-inflation-shock-highs
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Wynn stock (NASDAQ:WYNN) currently trades at $84 per share, roughly 40% below its pre-inflation shock high of $140 seen on March 17, 2021. The stock has been impacted by the Macau operations, which saw business largely collapse over 2021 and 2022, due to stringent Covid-19 restrictions which hurt tourist inflows into the region. Now things have recovered strongly in Macau in recent quarters. With China easing Covid-19 restrictions, overall visitors to Macau reached about 8.3 million over Q3 2023, compared to just about 5 million in Q1. However, Wynn’s recovery in Macau has been a bit more mixed compared to other players. One of its two properties in the region, the Wynn Macau, has seen a weaker recovery, although Wynn Palace is faring better. Overall, it appears that the company might be losing some market share in the Macau market post the recovery. That said, the stock was trading at a low of about $57 in June 2022 and has jumped about 47% from these levels to almost $84 due to improvements in Macau and strength in the company’s Las Vegas operations.
Looking over a slightly longer period, WYNN stock has faced a notable decline of 25% from levels of $115 in early January 2021 to around $85 now, vs. an increase of about 25% for the S&P 500 over this roughly 3-year period. However, the decrease in WYNN stock has been far from consistent. Returns for the stock were -25% in 2021, -3% in 2022, and 2% in 2023 (YTD). In comparison, returns for the S&P 500 have been 27% in 2021, -19% in 2022, and 20% in 2023 (YTD) – indicating that WYNN underperformed the S&P in 2021 and 2023.
In fact, consistently beating the S&P 500 – in good times and bad – has been difficult over recent years for individual stocks; for heavyweights in the Consumer Discretionary sector including AMZN, TSLA, and HD, and even for the megacap stars GOOG, MSFT, and AAPL. In contrast, the Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has outperformed the S&P 500 each year over the same period. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride as evident in HQ Portfolio performance metrics. Given the current uncertain macroeconomic environment with high oil prices and elevated interest rates, could WYNN face a similar situation as it did in 2021 and 2023 and underperform the S&P over the next 12 months – or will it see a recovery?
Returning to the pre-inflation shock level means that Wynn stock will have to gain about 66% if the stock recovers from $84 currently to its pre-shock highs of $140 per share. While the stock may recover to those levels, we presently estimate Wynn’s valuation to be around $109 per share, about 30% ahead of the current market price. While we believe that Wynn could see gains, we think that the upside for the company in the near term could be limited by concerns about the global economy and a potential slowdown in consumer spending. Our detailed analysis of Wynn upside post-inflation shock captures trends in the company’s stock during the turbulent market conditions seen over 2022. It compares these trends to the stock’s performance during the 2008 recession.
2022 Inflation Shock
Timeline of Inflation Shock So Far:
2020 – early 2021: An increase in money supply to cushion the impact of lockdowns led to high demand for goods; producers were unable to match up.
Early 2021: Shipping snarls and worker shortages from the coronavirus pandemic continue to hurt the supply
April 2021: Inflation rates cross 4% and increase rapidly
Early 2022: Energy and food prices spike due to the Russian invasion of Ukraine. Fed begins its rate hike process
June 2022: Inflation levels peak at 9% – the highest level in 40 years. S&P 500 index declines more than 20% from peak levels.
July – September 2022: Fed hikes interest rates aggressively – resulting in an initial recovery in the S&P 500 followed by another sharp decline
October 2022: Fed continues rate hike process; improving market sentiments help S&P500 recoup some of its losses.
Since August 2023: the Fed has kept interest rates unchanged to quell fears of a recession, although another rate hike remains in the cards.
In contrast, here’s how WYNN stock and the broader market performed during the 2007/2008 crisis.
Timeline of 2007-08 Crisis
10/1/2007: Approximate pre-crisis peak in S&P 500 index
9/1/2008 – 10/1/2008: Accelerated market decline corresponding to Lehman bankruptcy filing (9/15/08)
3/1/2009: Approximate bottoming out of S&P 500 index
12/31/2009: Initial recovery to levels before accelerated decline (around 9/1/2008)
Wynn Stock and S&P 500 Performance During 2007-08 Crisis
WYNN stock declined from nearly $164 in October 2007 to $21 in March 2009 (as the markets bottomed out), implying that the stock lost over 85% of its value through the drawdown. However, the stock rebounded strongly to over $58 by early 2010, an increase of about 178%. The S&P 500 Index saw a decline of 51%, falling from levels of 1,540 in September 2007 to 757 in March 2009. It then rallied 48% between March 2009 and January 2010 to reach 1,124.
Wynn Fundamentals Over Recent Years
Wynn’s revenues declined from around $6.6 billion in 2019 to about $2.10 billion in 2020 as the spread of COVID-19 impacted gaming and hospitality-related revenues. The number recovered to $3.8 billion in 2021 and stood at $3.75 billion in 2022, as a recovery in the U.S. was partly offset by weakness in Macau. While the company posted a profit of over $300 million in 2019, it has remained loss-making over the last three years, as the pandemic weighed on its business. Net losses stood at about $700 million in 2022. However, the company is on track to post a profit in 2023.
Conclusion
With the Fed’s efforts to tame runaway inflation rates helping market sentiment, Wynn (WYNN) stock has the potential for gains once fears of a potential recession are allayed.
Returns Dec 2023
MTD [1] 2023
YTD [1] 2017-23
Total [2]
WYNN Return 0% 2% -3%
S&P 500 Return 1% 20% 106%
Trefis Reinforced Value Portfolio 1% 30% 565%
[1] Month-to-date and year-to-date as of 12/11/2023
[2] Cumulative total returns since the end of 2016
Invest with Trefis Market-Beating Portfolios
See all Trefis Price Estimates
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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That said, the stock was trading at a low of about $57 in June 2022 and has jumped about 47% from these levels to almost $84 due to improvements in Macau and strength in the company’s Las Vegas operations. In fact, consistently beating the S&P 500 – in good times and bad – has been difficult over recent years for individual stocks; for heavyweights in the Consumer Discretionary sector including AMZN, TSLA, and HD, and even for the megacap stars GOOG, MSFT, and AAPL. Given the current uncertain macroeconomic environment with high oil prices and elevated interest rates, could WYNN face a similar situation as it did in 2021 and 2023 and underperform the S&P over the next 12 months – or will it see a recovery?
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Wynn stock (NASDAQ:WYNN) currently trades at $84 per share, roughly 40% below its pre-inflation shock high of $140 seen on March 17, 2021. July – September 2022: Fed hikes interest rates aggressively – resulting in an initial recovery in the S&P 500 followed by another sharp decline October 2022: Fed continues rate hike process; improving market sentiments help S&P500 recoup some of its losses. Timeline of 2007-08 Crisis 10/1/2007: Approximate pre-crisis peak in S&P 500 index 9/1/2008 – 10/1/2008: Accelerated market decline corresponding to Lehman bankruptcy filing (9/15/08) 3/1/2009: Approximate bottoming out of S&P 500 index 12/31/2009: Initial recovery to levels before accelerated decline (around 9/1/2008) Wynn Stock and S&P 500 Performance During 2007-08 Crisis WYNN stock declined from nearly $164 in October 2007 to $21 in March 2009 (as the markets bottomed out), implying that the stock lost over 85% of its value through the drawdown.
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Returning to the pre-inflation shock level means that Wynn stock will have to gain about 66% if the stock recovers from $84 currently to its pre-shock highs of $140 per share. Timeline of 2007-08 Crisis 10/1/2007: Approximate pre-crisis peak in S&P 500 index 9/1/2008 – 10/1/2008: Accelerated market decline corresponding to Lehman bankruptcy filing (9/15/08) 3/1/2009: Approximate bottoming out of S&P 500 index 12/31/2009: Initial recovery to levels before accelerated decline (around 9/1/2008) Wynn Stock and S&P 500 Performance During 2007-08 Crisis WYNN stock declined from nearly $164 in October 2007 to $21 in March 2009 (as the markets bottomed out), implying that the stock lost over 85% of its value through the drawdown. Conclusion With the Fed’s efforts to tame runaway inflation rates helping market sentiment, Wynn (WYNN) stock has the potential for gains once fears of a potential recession are allayed.
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Wynn stock (NASDAQ:WYNN) currently trades at $84 per share, roughly 40% below its pre-inflation shock high of $140 seen on March 17, 2021. With China easing Covid-19 restrictions, overall visitors to Macau reached about 8.3 million over Q3 2023, compared to just about 5 million in Q1. Overall, it appears that the company might be losing some market share in the Macau market post the recovery.
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b61de963-adc3-4dad-8828-83c51df66e2b
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712069.0
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2023-12-13 00:00:00 UTC
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After A 17% Fall This Year Is Alaska Air A Better Pick Than United Airlines Stock?
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DCOMP
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https://www.nasdaq.com/articles/after-a-17-fall-this-year-is-alaska-air-a-better-pick-than-united-airlines-stock
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nan
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nan
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Given its better prospects, we believe Alaska Air stock (NYSE: ALK) is a better pick than its peer, United Airlines stock (NASDAQ: UAL). UAL is trading at a marginally lower valuation of 0.3x revenues than 0.4x for ALK. In the sections below, we discuss why we believe that ALK will offer better returns than UAL in the next three years. We compare a slew of factors, such as historical revenue growth, stock returns, and valuation, in an interactive dashboard analysis of United Airlines vs. Alaska Air: Which Stock Is A Better Bet? Parts of the analysis are summarized below.
UAL stock has seen a decline of 10% from levels of $45 in early January 2021 to around $40 now. In comparison, ALK stock has suffered a sharp decline of 30% from levels of $50 in early January 2021 to around $35 now, vs. an increase of about 25% for the S&P 500 over this roughly three-year period.
However, the decrease in UAL and ALK stocks have been far from consistent. Returns for UAL were 1% in 2021, -14% in 2022, and 9% in 2023 (YTD), while returns for ALK stock were 0% in 2021, -18% in 2022, and -17% in 2023 (YTD). In comparison, returns for the S&P 500 have been 27% in 2021, -19% in 2022, and 20% in 2023 (YTD) – indicating that both UAL and ALK underperformed the S&P in 2021 and 2023.
In fact, consistently beating the S&P 500 – in good times and bad – has been difficult over recent years for individual stocks; for heavyweights in the Industrials sector including BA, UNP, and UPS, and even for the megacap stars GOOG, TSLA, and MSFT. In contrast, the Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has outperformed the S&P 500 each year over the same period. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride as evident in HQ Portfolio performance metrics.
Given the current uncertain macroeconomic environment with high oil prices and elevated interest rates, could UAL and ALK face a similar situation as they did in 2021 and 2023 and underperform the S&P over the next 12 months – or will they see a recovery? We expect a rebound in both stocks in the next three years, but ALK will likely fare better between the two.
Alaska Air stock has declined 6% this month after its announcement of Hawaiian Air acquisition for $1.9 billion, reflecting a 270% premium to the market price before the announcement. While this figure optically appears to be high, it is 0.7x sales, including Hawaiian Air’s debt.
1. United Airlines’ Revenue Growth Is Slightly Better
United Airlines’ revenue growth has been slightly better, with a 26% average annual growth rate in the last three years, compared to 23% for Alaska Air.
The rise in revenues for both airlines over the recent years can be attributed to a rebound in air travel demand, with passenger traffic and ticket yield rising meaningfully in recent years.
For perspective, United Airlines’ available seat miles (ASM) plunged 37% between 2019 and 2021, but surged 39% y-o-y in 2022. The company’s passenger revenue per available seat mile (PRASM) declined 37% between 2019 and 2021 before rising 43% in 2022.
In comparison, Alaska Air’s ASM declined 21% between 2019 and 2021 but surged 16% in 2022. Similarly, its PRASM fell 11% between 2019 and 2021 but rose 35% y-o-y in 2022.
Looking at the last twelve months, United Airlines’ 29% sales growth has fared better than 14% for Alaska Air.
The demand for air travel is expected to remain high in the near term, boding well for both stocks in the near future. However, the average yield has cooled in the recent past while overall capacity has expanded.
For perspective, United Airlines’ revenue of $14.5 billion in Q3’23 was up 12.5% y-o-y. The company reported a 16% rise in available seat miles, while the load factor was down 90 bps, and passenger revenue per available seat mile also declined 1%. Similarly, Alaska Air’s revenue of $2.8 billion in Q3’23 was also flat y-o-y. Although the company reported a 14% rise in available seat miles, the load factor was down 190 bps, and yield declined 10%, weighing on its overall top-line growth.
Our United Airlines Revenue Comparison and Alaska Air Revenue Comparison dashboards provide more insight into the companies’ sales.
Looking forward, we expect United Airlines to see better revenue growth than Alaska Air.
2. United Airlines Is More Profitable
United Airlines’ operating margin slid from 9% in 2019 to -49% in 2020 before recovering to 1% in 2022. In comparison, Alaska Air’s operating margin plunged from 12% in 2019 to -50% in 2020 before recovering to 1% in 2022.
Looking at the last twelve-month period, United Airlines’ operating margin of 5% fares better than 1% for Alaska Air.
Alaska Air’s margin metric is partly being weighed down by the costs associated with the retirement of its Airbus fleet. Looking forward, the company is likely to have a better margin profile with lower costs associated with pilot training.
Our United Airlines Operating Income Comparison and Alaska Air Operating Income Comparison dashboards have more details.
3. Both Airlines Have High Debt Levels
Looking at financial risk, both are risky bets. Alaska Airlines’ 148% debt as a percentage of equity is lower than 220% for United Airlines, while its 16% cash as a percentage of assets is lower than 23% for the latter, implying that Alaska Air has a comparatively better debt position, but United Airlines has a better cash cushion.
The high debt-to-equity figures for both airlines can be attributed to much higher debt levels compared to their market capitalizations ($13 billion for UAL and $5 billion for ALK).
United Airlines’ total debt increased from $15 billion in 2019 to $31 billion in 2022, while its total cash increased from around $2 billion to $9 billion over the same period. However, the rise in cash balance is partly due to additional debt raised, given the $4 billion negative operating cash flows in 2020.
In comparison, Alaska Air’s total debt increased from $3.2 billion in 2019 to $4.1 billion now, while its cash increased from $1.5 billion to $2.5 billion over the same period. The rise in cash balance is partly due to additional debt raised, given the $4 billion negative operating cash flows in 2020.
4. The Net of It All
We see that United Airlines has seen superior revenue growth and is more profitable. On the other hand, Alaska Air has a comparatively better debt position.
Looking at prospects, using P/S as a base, due to high fluctuations in P/E and P/EBIT, we believe Alaska Air will likely offer better returns over the next three years, primarily due to its better expected revenue growth.
If we compare the current valuation multiples to the historical averages, ALK fares better. United Airlines stock trades at 0.3x sales compared to its last five-year average of 0.6x, and Alaska Air stock trades at 0.4x revenues vs. the last five-year average of 1.1x.
Our United Airlines (UAL) Valuation Ratios Comparison and Alaska Air (ALK) Valuation Ratios Comparison have more details.
The table below summarizes our revenue and return expectations for both companies over the next three years and points to an expected return of 9% for United Airlines and 29% return for Alaska Air over this period, based on Trefis Machine Learning analysis – United Airlines vs. Alaska Air – which also provides more details on how we arrive at these numbers.
While ALK may outperform UAL in the next three years, it is helpful to see how United Airlines’ Peers fare on metrics that matter. You will find other valuable comparisons for companies across industries at Peer Comparisons.
Returns Dec 2023
MTD [1] 2023
YTD [1] 2017-23
Total [2]
UAL Return 4% 9% -44%
ALK Return -6% -17% -60%
S&P 500 Return 1% 20% 106%
Trefis Reinforced Value Portfolio 1% 30% 565%
[1] Month-to-date and year-to-date as of 12/11/2023
[2] Cumulative total returns since the end of 2016
Invest with Trefis Market-Beating Portfolios
See all Trefis Price Estimates
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In comparison, ALK stock has suffered a sharp decline of 30% from levels of $50 in early January 2021 to around $35 now, vs. an increase of about 25% for the S&P 500 over this roughly three-year period. In fact, consistently beating the S&P 500 – in good times and bad – has been difficult over recent years for individual stocks; for heavyweights in the Industrials sector including BA, UNP, and UPS, and even for the megacap stars GOOG, TSLA, and MSFT. Given the current uncertain macroeconomic environment with high oil prices and elevated interest rates, could UAL and ALK face a similar situation as they did in 2021 and 2023 and underperform the S&P over the next 12 months – or will they see a recovery?
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Our United Airlines Operating Income Comparison and Alaska Air Operating Income Comparison dashboards have more details. Our United Airlines (UAL) Valuation Ratios Comparison and Alaska Air (ALK) Valuation Ratios Comparison have more details. The table below summarizes our revenue and return expectations for both companies over the next three years and points to an expected return of 9% for United Airlines and 29% return for Alaska Air over this period, based on Trefis Machine Learning analysis – United Airlines vs. Alaska Air – which also provides more details on how we arrive at these numbers.
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United Airlines’ Revenue Growth Is Slightly Better United Airlines’ revenue growth has been slightly better, with a 26% average annual growth rate in the last three years, compared to 23% for Alaska Air. Alaska Airlines’ 148% debt as a percentage of equity is lower than 220% for United Airlines, while its 16% cash as a percentage of assets is lower than 23% for the latter, implying that Alaska Air has a comparatively better debt position, but United Airlines has a better cash cushion. The table below summarizes our revenue and return expectations for both companies over the next three years and points to an expected return of 9% for United Airlines and 29% return for Alaska Air over this period, based on Trefis Machine Learning analysis – United Airlines vs. Alaska Air – which also provides more details on how we arrive at these numbers.
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We compare a slew of factors, such as historical revenue growth, stock returns, and valuation, in an interactive dashboard analysis of United Airlines vs. Alaska Air: Which Stock Is A Better Bet? Looking forward, we expect United Airlines to see better revenue growth than Alaska Air. The table below summarizes our revenue and return expectations for both companies over the next three years and points to an expected return of 9% for United Airlines and 29% return for Alaska Air over this period, based on Trefis Machine Learning analysis – United Airlines vs. Alaska Air – which also provides more details on how we arrive at these numbers.
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437e3971-5747-4971-a744-6cf35197639b
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712070.0
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2023-12-13 00:00:00 UTC
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Google, Meta, Qualcomm team up to push for open digital ecosystems
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DCOMP
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https://www.nasdaq.com/articles/google-meta-qualcomm-team-up-to-push-for-open-digital-ecosystems
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nan
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nan
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By Foo Yun Chee
BRUSSELS, Dec 13 (Reuters) - Alphabet's GOOGL.O Google, Meta Platforms META.O, Qualcomm QCOM.O and seven other tech companies on Wednesday teamed up to push for open digital ecosystems in response to new EU tech rules in a move that may also take the edge of possible future legislation.
Calling itself the Coalition for Open Digital Ecosystems (CODE), the group said it wants to promote more open platforms and systems to boost growth and innovation in Europe.
The group said it will work with academics, policymakers and companies on digital openness and how this can be achieved in Europe "through the implementation of the Digital Markets Act (DMA) and in future EU regulatory framework developments".
The DMA requires gatekeepers -- tech giants that control access to their platforms -- to allow third parties to inter-operate with the gatekeeper's own services and allow their business users to promote their offer and conclude contracts with their customers outside the gatekeeper's platform.
"We have had a number of conversations in the past few months about what 'good' looks like when it comes to digital ecosystems in Europe, what fosters innovation, and what will positively impact competitiveness. We think openness is the crucial element," Lynx founder Stan Larroque said in a statement.
Other members of the group are Chinese smart devices maker Honor, China's Lenovo 0992.HK, French augmented reality start-up Lynx, U.S. telecoms equipment maker Motorola MSI.N, UK electronics maker Nothing, Norwegian tech company Opera and German messaging services provider Wire.
The Coalition said it aims to open up digital ecosystems through cross-industry collaboration and promote seamless connectivity and interoperable systems, among others.
(Reporting by Foo Yun Chee; Editing by Aurora Ellis)
((foo.yunchee@thomsonreuters.com; +32 2 585 2866; Reuters Messaging: foo.yunchee.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.
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By Foo Yun Chee BRUSSELS, Dec 13 (Reuters) - Alphabet's GOOGL.O Google, Meta Platforms META.O, Qualcomm QCOM.O and seven other tech companies on Wednesday teamed up to push for open digital ecosystems in response to new EU tech rules in a move that may also take the edge of possible future legislation. "We have had a number of conversations in the past few months about what 'good' looks like when it comes to digital ecosystems in Europe, what fosters innovation, and what will positively impact competitiveness. The Coalition said it aims to open up digital ecosystems through cross-industry collaboration and promote seamless connectivity and interoperable systems, among others.
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By Foo Yun Chee BRUSSELS, Dec 13 (Reuters) - Alphabet's GOOGL.O Google, Meta Platforms META.O, Qualcomm QCOM.O and seven other tech companies on Wednesday teamed up to push for open digital ecosystems in response to new EU tech rules in a move that may also take the edge of possible future legislation. Calling itself the Coalition for Open Digital Ecosystems (CODE), the group said it wants to promote more open platforms and systems to boost growth and innovation in Europe. (Reporting by Foo Yun Chee; Editing by Aurora Ellis) ((foo.yunchee@thomsonreuters.com; +32 2 585 2866; Reuters Messaging: foo.yunchee.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.
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By Foo Yun Chee BRUSSELS, Dec 13 (Reuters) - Alphabet's GOOGL.O Google, Meta Platforms META.O, Qualcomm QCOM.O and seven other tech companies on Wednesday teamed up to push for open digital ecosystems in response to new EU tech rules in a move that may also take the edge of possible future legislation. Calling itself the Coalition for Open Digital Ecosystems (CODE), the group said it wants to promote more open platforms and systems to boost growth and innovation in Europe. The group said it will work with academics, policymakers and companies on digital openness and how this can be achieved in Europe "through the implementation of the Digital Markets Act (DMA) and in future EU regulatory framework developments".
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By Foo Yun Chee BRUSSELS, Dec 13 (Reuters) - Alphabet's GOOGL.O Google, Meta Platforms META.O, Qualcomm QCOM.O and seven other tech companies on Wednesday teamed up to push for open digital ecosystems in response to new EU tech rules in a move that may also take the edge of possible future legislation. Calling itself the Coalition for Open Digital Ecosystems (CODE), the group said it wants to promote more open platforms and systems to boost growth and innovation in Europe. The DMA requires gatekeepers -- tech giants that control access to their platforms -- to allow third parties to inter-operate with the gatekeeper's own services and allow their business users to promote their offer and conclude contracts with their customers outside the gatekeeper's platform.
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1252f19c-57e6-487d-b992-20f837094b69
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712071.0
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2023-12-13 00:00:00 UTC
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UniCredit (UNCFF) is on the Move, Here's Why the Trend Could be Sustainable
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DCOMP
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https://www.nasdaq.com/articles/unicredit-uncff-is-on-the-move-heres-why-the-trend-could-be-sustainable-1
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nan
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nan
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Most of us have heard the dictum "the trend is your friend." And this is undeniably the key to success when it comes to short-term investing or trading. But it isn't easy to ensure the sustainability of a trend and profit from it.
The trend often reverses before exiting the trade, leading to a short-term capital loss for investors. So, for a profitable trade, one should confirm factors such as sound fundamentals, positive earnings estimate revisions, etc. that could keep the momentum in the stock alive.
Our "Recent Price Strength" screen, which is created on a unique short-term trading strategy, could be pretty useful in this regard. This predefined screen makes it really easy to shortlist the stocks that have enough fundamental strength to maintain their recent uptrend. Also, the screen passes only the stocks that are trading in the upper portion of their 52-week high-low range, which is usually an indicator of bullishness.
UniCredit (UNCFF) is one of the several suitable candidates that passed through the screen. Here are the key reasons why it could be a profitable bet for "trend" investors.
A solid price increase over a period of 12 weeks reflects investors' continued willingness to pay more for the potential upside in a stock. UNCFF is quite a good fit in this regard, gaining 18.5% over this period.
However, it's not enough to look at the price change for around three months, as it doesn't reflect any trend reversal that might have happened in a shorter time frame. It's important for a potential winner to maintain the price trend. A price increase of 2.3% over the past four weeks ensures that the trend is still in place for the stock of this company.
Moreover, UNCFF is currently trading at 95.4% of its 52-week High-Low Range, hinting that it can be on the verge of a breakout.
Looking at the fundamentals, the stock currently carries a Zacks Rank #1 (Strong Buy), which means it is in the top 5% of more than the 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises -- the key factors that impact a stock's near-term price movements.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Another factor that confirms the company's fundamental strength is its Average Broker Recommendation of #1 (Strong Buy). This indicates that the brokerage community is highly optimistic about the stock's near-term price performance.
So, the price trend in UNCFF may not reverse anytime soon.
In addition to UNCFF, there are several other stocks that currently pass through our "Recent Price Strength" screen. You may consider investing in them and start looking for the newest stocks that fit these criteria.
This is not the only screen that could help you find your next winning stock pick. Based on your personal investing style, you may choose from over 45 Zacks Premium Screens that are strategically created to beat the market.
However, keep in mind that the key to a successful stock-picking strategy is to ensure that it produced profitable results in the past. You could easily do that with the help of the Zacks Research Wizard. In addition to allowing you to backtest the effectiveness of your strategy, the program comes loaded with some of our most successful stock-picking strategies.
Click here to sign up for a free trial to the Research Wizard today.
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 >>
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UniCredit (UNCFF) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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A solid price increase over a period of 12 weeks reflects investors' continued willingness to pay more for the potential upside in a stock. Based on your personal investing style, you may choose from over 45 Zacks Premium Screens that are strategically created to beat the market. 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.
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The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Another factor that confirms the company's fundamental strength is its Average Broker Recommendation of #1 (Strong Buy). Click to get this free report UniCredit (UNCFF) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Looking at the fundamentals, the stock currently carries a Zacks Rank #1 (Strong Buy), which means it is in the top 5% of more than the 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises -- the key factors that impact a stock's near-term price movements. The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Another factor that confirms the company's fundamental strength is its Average Broker Recommendation of #1 (Strong Buy).
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Our "Recent Price Strength" screen, which is created on a unique short-term trading strategy, could be pretty useful in this regard. In addition to UNCFF, there are several other stocks that currently pass through our "Recent Price Strength" screen. Download FREE: How To Profit From Trillions On Spending For Infrastructure >> Want the latest recommendations from Zacks Investment Research?
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68011337-356a-4301-8d17-58acb8a150be
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712072.0
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2023-12-13 00:00:00 UTC
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Fast-paced Momentum Stock DecisionPoint Systems Inc. (DPSI) Is Still Trading at a Bargain
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DCOMP
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https://www.nasdaq.com/articles/fast-paced-momentum-stock-decisionpoint-systems-inc.-dpsi-is-still-trading-at-a-bargain-1
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nan
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nan
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Momentum investors typically don't time the market or "buy low and sell high." In other words, they avoid betting on cheap stocks and waiting long for them to recover. Instead, they believe that "buying high and selling higher" is the way to make far more money in lesser time.
Everyone likes betting on fast-moving trending stocks, but it isn't easy to determine the right entry point. These stocks often lose momentum when their future growth potential fails to justify their swelled-up valuation. In that phase, investors find themselves invested in shares that have limited to no upside or even a downside. So, betting on a stock just by looking at the traditional momentum parameters could be risky at times.
It could be safer to invest in bargain stocks that have been witnessing price momentum recently. While the Zacks Momentum Style Score (part of the Zacks Style Scores system), which pays close attention to trends in a stock's price or earnings, is pretty useful in identifying great momentum stocks, our 'Fast-Paced Momentum at a Bargain' screen comes handy in spotting fast-moving stocks that are still attractively priced.
DecisionPoint Systems Inc. (DPSI) is one of the several great candidates that made it through the screen. While there are numerous reasons why this stock is a great choice, here are the most vital ones:
Investors' growing interest in a stock is reflected in its recent price increase. A price change of 3.5% over the past four weeks positions the stock of this company well in this regard.
While any stock can see a spike in price for a short period, it takes a real momentum player to deliver positive returns for a longer time frame. DPSI meets this criterion too, as the stock gained 1.5% over the past 12 weeks.
Moreover, the momentum for DPSI is fast paced, as the stock currently has a beta of 1.77. This indicates that the stock moves 77% higher than the market in either direction.
Given this price performance, it is no surprise that DPSI has a Momentum Score of A, which indicates that this is the right time to enter the stock to take advantage of the momentum with the highest probability of success.
In addition to a favorable Momentum Score, an upward trend in earnings estimate revisions has helped DPSI earn a Zacks Rank #2 (Buy). Our research shows that the momentum-effect is quite strong among Zacks Rank #1 and #2 stocks. That's because as covering analysts raise their earnings estimates for a stock, more and more investors take an interest in it, helping its price race to keep up. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Most importantly, despite possessing fast-paced momentum features, DPSI is trading at a reasonable valuation. In terms of Price-to-Sales ratio, which is considered as one of the best valuation metrics, the stock looks quite cheap now. DPSI is currently trading at 0.42 times its sales. In other words, investors need to pay only 42 cents for each dollar of sales.
So, DPSI appears to have plenty of room to run, and that too at a fast pace.
In addition to DPSI, there are several other stocks that currently pass through our 'Fast-Paced Momentum at a Bargain' screen. You may consider investing in them and start looking for the newest stocks that fit these criteria.
This is not the only screen that could help you find your next winning stock pick. Based on your personal investing style, you may choose from over 45 Zacks Premium Screens that are strategically created to beat the market.
However, keep in mind that the key to a successful stock-picking strategy is to ensure that it produced profitable results in the past. You could easily do that with the help of the Zacks Research Wizard. In addition to allowing you to backtest the effectiveness of your strategy, the program comes loaded with some of our most successful stock-picking strategies.
Click here to sign up for a free trial to the Research Wizard today.
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
DecisionPoint Systems Inc. (DPSI) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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While any stock can see a spike in price for a short period, it takes a real momentum player to deliver positive returns for a longer time frame. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Most importantly, despite possessing fast-paced momentum features, DPSI is trading at a reasonable valuation. 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.
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While the Zacks Momentum Style Score (part of the Zacks Style Scores system), which pays close attention to trends in a stock's price or earnings, is pretty useful in identifying great momentum stocks, our 'Fast-Paced Momentum at a Bargain' screen comes handy in spotting fast-moving stocks that are still attractively priced. In addition to a favorable Momentum Score, an upward trend in earnings estimate revisions has helped DPSI earn a Zacks Rank #2 (Buy). Click to get this free report DecisionPoint Systems Inc. (DPSI) : Free Stock Analysis Report To read this article on Zacks.com click here.
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While the Zacks Momentum Style Score (part of the Zacks Style Scores system), which pays close attention to trends in a stock's price or earnings, is pretty useful in identifying great momentum stocks, our 'Fast-Paced Momentum at a Bargain' screen comes handy in spotting fast-moving stocks that are still attractively priced. Given this price performance, it is no surprise that DPSI has a Momentum Score of A, which indicates that this is the right time to enter the stock to take advantage of the momentum with the highest probability of success. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Most importantly, despite possessing fast-paced momentum features, DPSI is trading at a reasonable valuation.
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Given this price performance, it is no surprise that DPSI has a Momentum Score of A, which indicates that this is the right time to enter the stock to take advantage of the momentum with the highest probability of success. In addition to DPSI, there are several other stocks that currently pass through our 'Fast-Paced Momentum at a Bargain' screen. Download FREE: How To Profit From Trillions On Spending For Infrastructure >> Want the latest recommendations from Zacks Investment Research?
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b27642d6-8f86-4a50-bc7b-ce3faa58d978
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712073.0
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2023-12-13 00:00:00 UTC
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U.S. Bancorp (USB) Cheers Investor With 2.1% Dividend Hike
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https://www.nasdaq.com/articles/u.s.-bancorp-usb-cheers-investor-with-2.1-dividend-hike
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U.S. Bancorp USB declared a quarterly cash dividend of 49 cents per share, marking an increase of 2.1% from the prior quarter. The dividend will be paid out on Jan 16, 2024, to shareholders of record as of Dec 29, 2023.
Prior to the recent hike, USB raised its dividend in September 2022 by 4.3% to 48 cents per share. Also, the company has a five-year annualized dividend growth of 5.7%. Currently, its payout ratio is 42% of earnings.
Considering yesterday’s closing price of $40.45, USB’s dividend yield is pegged at 4.84%, which is above the industry average of 3.90%.
Apart from regular dividend hikes, USB has a share repurchase program in place.However, owing to the MUFG Union Bank acquisition deal, U.S. Bancorp suspended share repurchases at the beginning of third-quarter 2021. The company is continuing the suspension as it intends to accrete its capital amid the likelihood of stringent regulatory capital requirements.
Nonetheless, given its consistent earnings and decent liquidity position, we believe that capital deployment activities might be sustainable and boost investor confidence in the stock.
U.S. Bancorp has a strong balance sheet. As of Sep 30, the company had a long-term debt of $43.07 billion. Cash and due from banks of $64.35 billion reflected a strong liquidity position. Hence, with a record of impressive earnings strength and decent cash levels, it carries low credit risk, and has a lesser likelihood of defaulting interest and debt repayments if the economic situation worsens.
Finally, the company enjoys long-term investment-grade credit ratings of A, A+ and A3 from Standard & Poor’s, Fitch, and Moody’s, respectively. This renders U.S. Bancorp favorable access to debt at attractive rates.
USB has experienced strong growth in average loans and deposits in the past few years, as it has continued to expand and deepen relationships with current customers, as well as acquire new customers and market share. Notably, the company’s average deposits and loans witnessed a three-year compound annual growth rate (CAGR) of 10.5% and 14.6%, respectively, in 2022. The rising trend for both metrics continued in the first nine months of 2023.
The company is expected to sustain its capital distribution activities, given a robust capital position, operational strength, and lower debt-equity and dividend payout ratios than its peers. Through this, U.S. Bancorp will keep enhancing shareholder value.
Over the past six months, USB shares have gained 26% compared with the industry’s rise of 10.3%.
Image Source: Zacks Investment Research
U.S. Bancorp currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Banks Taking Similar Steps
United Bankshares, Inc. UBSI announced a hike in its quarterly dividend for the 50th consecutive year. The company declared a quarterly cash dividend of 37 cents per share, marking an increase of 2.8% from the prior quarter. The dividend will be paid out on Jan 2, 2024, to shareholders of record as of Dec 8.
Richard M. Adams, Jr., UBSI’s chief executive officer, stated, "Fifty years of dividend growth is a testament to our proven track record as a high performing company with a low risk profile."
Bank OZK OZK declared a quarterly cash dividend of 37 cents per share, marking an increase of 2.8% from the prior quarter. The dividend was paid out on Oct 20 to shareholders of record as of Oct 30. This represents the 53rd consecutive quarter of a dividend hike.
Prior to the recent hike, OZK raised its dividend by 2.8% to 36 cents per share in July 2023. Also, the company has a five-year annualized dividend growth of 10.6%. Currently, the company's payout ratio is 26% of earnings.
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
U.S. Bancorp (USB) : Free Stock Analysis Report
United Bankshares, Inc. (UBSI) : Free Stock Analysis Report
Bank OZK (OZK) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Hence, with a record of impressive earnings strength and decent cash levels, it carries low credit risk, and has a lesser likelihood of defaulting interest and debt repayments if the economic situation worsens. Richard M. Adams, Jr., UBSI’s chief executive officer, stated, "Fifty years of dividend growth is a testament to our proven track record as a high performing company with a low risk profile." 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.
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U.S. Bancorp USB declared a quarterly cash dividend of 49 cents per share, marking an increase of 2.1% from the prior quarter. Bank OZK OZK declared a quarterly cash dividend of 37 cents per share, marking an increase of 2.8% from the prior quarter. Click to get this free report U.S. Bancorp (USB) : Free Stock Analysis Report United Bankshares, Inc. (UBSI) : Free Stock Analysis Report Bank OZK (OZK) : Free Stock Analysis Report To read this article on Zacks.com click here.
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U.S. Bancorp USB declared a quarterly cash dividend of 49 cents per share, marking an increase of 2.1% from the prior quarter. The company declared a quarterly cash dividend of 37 cents per share, marking an increase of 2.8% from the prior quarter. Click to get this free report U.S. Bancorp (USB) : Free Stock Analysis Report United Bankshares, Inc. (UBSI) : Free Stock Analysis Report Bank OZK (OZK) : Free Stock Analysis Report To read this article on Zacks.com click here.
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As of Sep 30, the company had a long-term debt of $43.07 billion. Over the past six months, USB shares have gained 26% compared with the industry’s rise of 10.3%. Download FREE: How To Profit From Trillions On Spending For Infrastructure >> Want the latest recommendations from Zacks Investment Research?
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fee31955-0569-4100-bde8-5d6a56c7b634
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712074.0
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2023-12-13 00:00:00 UTC
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Asset manager Bayview explores sale of insurance arm Oceanview
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https://www.nasdaq.com/articles/asset-manager-bayview-explores-sale-of-insurance-arm-oceanview
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By David French and Pablo Mayo Cerqueiro
Dec 13 (Reuters) - Credit investment firm Bayview Asset Management told Reuters it has put its insurance arm Oceanview Holdings up for sale, in what could be the latest chapter of dealmaking in North America's life insurance and annuities sector.
The sale process comes amid strong appetite from private equity firms and other asset managers for the fee revenue that comes from managing life insurance assets. There are now fewer opportunities to snap up such assets because high interest rates make it easier for insurers to generate enough returns without divesting them.
As a result, buyers are increasingly seeking to acquire the insurers themselves.
"Recently, several parties have made unsolicited indications of interest to purchase Oceanview at a significant premium to book value. Bayview has engaged an adviser to evaluate what potential transactions, if any, should be considered," a Bayview spokesperson said.
The spokesperson declined to comment on the potential deal price, and did not name the adviser. People familiar with the matter said Oceanview has a book value around $1 billion, and so the offers at a premium would value it higher.
New York-based Bayview created Oceanview in 2018, funding it initially with $1 billion in equity capital.
Oceanview currently consists of a U.S. annuities provider with close to $8 billion in assets and a reinsurance company.
Dealmaking in this space has been robust. Life insurer National Western Life Group NWLI.Oagreed in October to sell itself to Prosperity Life for $1.9 billion, while Brookfield Reinsurance said in July it would pay $4.3 billion to acquire annuities provider American Equity Life AEL.N.
Reuters reported in August that Monument Re, a Bermuda-based consolidator of old life insurance portfolios, had appointed bankers to explore strategic options.
(Reporting by David French in New York and Pablo Mayo Cerqueiro in London Editing by Marguerita Choy)
((davidj.french@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By David French and Pablo Mayo Cerqueiro Dec 13 (Reuters) - Credit investment firm Bayview Asset Management told Reuters it has put its insurance arm Oceanview Holdings up for sale, in what could be the latest chapter of dealmaking in North America's life insurance and annuities sector. There are now fewer opportunities to snap up such assets because high interest rates make it easier for insurers to generate enough returns without divesting them. Reuters reported in August that Monument Re, a Bermuda-based consolidator of old life insurance portfolios, had appointed bankers to explore strategic options.
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By David French and Pablo Mayo Cerqueiro Dec 13 (Reuters) - Credit investment firm Bayview Asset Management told Reuters it has put its insurance arm Oceanview Holdings up for sale, in what could be the latest chapter of dealmaking in North America's life insurance and annuities sector. The sale process comes amid strong appetite from private equity firms and other asset managers for the fee revenue that comes from managing life insurance assets. Life insurer National Western Life Group NWLI.Oagreed in October to sell itself to Prosperity Life for $1.9 billion, while Brookfield Reinsurance said in July it would pay $4.3 billion to acquire annuities provider American Equity Life AEL.N.
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By David French and Pablo Mayo Cerqueiro Dec 13 (Reuters) - Credit investment firm Bayview Asset Management told Reuters it has put its insurance arm Oceanview Holdings up for sale, in what could be the latest chapter of dealmaking in North America's life insurance and annuities sector. The sale process comes amid strong appetite from private equity firms and other asset managers for the fee revenue that comes from managing life insurance assets. Life insurer National Western Life Group NWLI.Oagreed in October to sell itself to Prosperity Life for $1.9 billion, while Brookfield Reinsurance said in July it would pay $4.3 billion to acquire annuities provider American Equity Life AEL.N.
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By David French and Pablo Mayo Cerqueiro Dec 13 (Reuters) - Credit investment firm Bayview Asset Management told Reuters it has put its insurance arm Oceanview Holdings up for sale, in what could be the latest chapter of dealmaking in North America's life insurance and annuities sector. Bayview has engaged an adviser to evaluate what potential transactions, if any, should be considered," a Bayview spokesperson said. Life insurer National Western Life Group NWLI.Oagreed in October to sell itself to Prosperity Life for $1.9 billion, while Brookfield Reinsurance said in July it would pay $4.3 billion to acquire annuities provider American Equity Life AEL.N.
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bcdb038f-994c-4aa4-bc69-85118c0bbc41
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712075.0
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2023-12-13 00:00:00 UTC
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Zacks.com featured highlights include e.l.f. Beauty, Griffon and Shift4 Payments
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https://www.nasdaq.com/articles/zacks.com-featured-highlights-include-e.l.f.-beauty-griffon-and-shift4-payments
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For Immediate Release
Chicago, IL – December 13, 2023 – Stocks in this week’s article are e.l.f. Beauty ELF, Griffon GFF and Shift4 Payments FOUR.
3 Must-Buy Efficient Stocks to Increase Your Portfolio Returns
A company with a high-efficiency level is expected to provide stellar returns as it is believed to be positively correlated with price performance. In fact, efficiency level, which measures a company's capability to transform available input into output, is often considered an important parameter for gauging its potential to make profits.
However, at times it becomes difficult to measure the efficiency level of a company. This is why one must consider popular efficiency ratios while selecting stocks.
These efficiency ratios are:
Receivables Turnover: This is the ratio of 12-month sales to four-quarter average receivables. It shows a company's potential to extend its credit and collect debt in terms of that credit. A high receivables turnover ratio or the "accounts receivable turnover ratio" or "debtor's turnover ratio" is desirable as it shows that the company is capable of collecting its accounts receivables or that it has quality customers.
Asset Utilization: This ratio indicates a company's capability to convert assets into output and is thus a widely known measure of efficiency level. It is calculated by dividing total sales over the past 12 months by the last four-quarter average of total assets. Like the above ratios, high asset utilization may indicate that a company is efficient.
Inventory Turnover: The ratio of the 12-month cost of goods sold (COGS) to a four-quarter average inventory is considered one of the most popular efficiency ratios. It indicates a company's ability to maintain a suitable inventory position. While a high value indicates that the company has a relatively low level of inventory compared to COGS, a low value indicates that the company is facing declining sales, which has resulted in excess inventory.
Operating Margin: This efficiency measure is the ratio of operating income over the past 12 months to sales over the same period. It measures a company's ability to control operating expenses. Hence, a high value of the ratio may indicate that the company manages its operating expenses more efficiently than its peers.
Screening Criteria
In addition to the above-mentioned ratios, we have added a favorable Zacks Rank — Zacks Rank #1 (Strong Buy) — to the screen to make this strategy more profitable. You can see the complete list of today's Zacks #1 Rank stocks here.
Inventory Turnover, Receivables Turnover, Asset Utilization, and Operating Margin greater than the industry average
(Values of these ratios higher than industry averages may indicate that the efficiency level of the company is higher than its peers.)
The use of these few criteria narrowed down the universe of over 7,906 stocks to eight.
Here are the top three stocks that made it through the screen:
e.l.f. Beauty operates as a cosmetic company. ELF has an average four-quarter positive earnings surprise of 90.1%.
Griffon is a diversified management and holding company conducting business through wholly-owned subsidiaries. GFF has an average four-quarter positive earnings surprise of 28.6%.
Shift4 Payments is a provider of integrated payment processing and technology solutions. FOUR has an average four-quarter positive earnings surprise of nearly 25%.
You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Click here to sign up for a free trial to the Research Wizard today.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2196526/3-must-buy-efficient-stocks-to-increase-your-portfolio-returns
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
About Screen of the Week
Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine. But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.
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Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Contact: Jim Giaquinto
Company: Zacks.com
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Email: pr@zacks.com
Visit: https://www.zacks.com/
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
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
e.l.f. Beauty (ELF) : Free Stock Analysis Report
Griffon Corporation (GFF) : Free Stock Analysis Report
Shift4 Payments, Inc. (FOUR) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In fact, efficiency level, which measures a company's capability to transform available input into output, is often considered an important parameter for gauging its potential to make profits. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. 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.
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A high receivables turnover ratio or the "accounts receivable turnover ratio" or "debtor's turnover ratio" is desirable as it shows that the company is capable of collecting its accounts receivables or that it has quality customers. Inventory Turnover, Receivables Turnover, Asset Utilization, and Operating Margin greater than the industry average (Values of these ratios higher than industry averages may indicate that the efficiency level of the company is higher than its peers.) Beauty (ELF) : Free Stock Analysis Report Griffon Corporation (GFF) : Free Stock Analysis Report Shift4 Payments, Inc. (FOUR) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Inventory Turnover, Receivables Turnover, Asset Utilization, and Operating Margin greater than the industry average (Values of these ratios higher than industry averages may indicate that the efficiency level of the company is higher than its peers.) For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2196526/3-must-buy-efficient-stocks-to-increase-your-portfolio-returns Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. Beauty (ELF) : Free Stock Analysis Report Griffon Corporation (GFF) : Free Stock Analysis Report Shift4 Payments, Inc. (FOUR) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Hence, a high value of the ratio may indicate that the company manages its operating expenses more efficiently than its peers. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. Download FREE: How To Profit From Trillions On Spending For Infrastructure >> Want the latest recommendations from Zacks Investment Research?
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5b70a6c5-62aa-4e54-ac3a-7862b527e90e
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712076.0
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2023-12-13 00:00:00 UTC
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Alphabet's Bard Chatbot Is Getting an Upgrade -- and Investors Could, Too
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https://www.nasdaq.com/articles/alphabets-bard-chatbot-is-getting-an-upgrade-and-investors-could-too
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The artificial intelligence (AI) wars are here. Microsoft and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) are among the big names fighting for supremacy in this new tech battleground. Both companies have chatbots, both have AI-powered office products, and there will likely be even more ways for these two companies to compete within the AI arena in the future.
It has now been over a year since OpenAI's ChatGPT first entered the mainstream. Alphabet, through Google, launched Bard months later, but it has not been nearly as popular.
However, that could change. Bard is getting an upgrade now that Google has released an updated AI model, one that should intensify the competition between ChatGPT-4 and Bard.
Gemini is here
Google recently unveiled Gemini, its latest AI model. There are three variations of it: Nano, Pro, and Ultra. The Nano model focuses on efficiency and is available on the company's Pixel 8 Pro phones, whereas the Ultra version is the largest and most capable model.
Bard will now have access to Gemini Pro, which is the mid-range AI model. Google says this is the biggest upgrade it has made to its chatbot. And next year, Google will launch Bard Advanced, which utilizes Gemini Ultra. According to Google's tests, Gemini Ultra outperformed ChatGPT-4 on 30 out of 32 benchmarks.
In addition to Bard, Google says Gemini will also be available in other services, including Search, Chrome, and Duet AI, which powers its office productivity software.
Why this could give Alphabet's stock a boost
The huge popularity of ChatGPT-4 has undoubtedly played a key role in Microsoft's rising valuation this year. It has invested billions in OpenAI, the company that created ChatGPT.
And when OpenAI fired CEO Sam Altman last month, Microsoft jumped at the chance to hire the former OpenAI CEO. Ultimately, he would return to OpenAI as CEO, but it highlighted just how closely the ties are between the two companies.
That relationship likely plays a big role in why investors are willing to pay such a large premium for Microsoft's stock. At 36 times earnings, it's trading at a much higher premium than Alphabet, which sports a multiple of 26. This difference in their respective price-to-earnings valuations is at a 10-year high.
Investors have typically paid more of a premium for Alphabet. But between a weak ad market in 2022 and Microsoft appearing to have the upper hand in AI (at least initially), growth investors appear to have gravitated more toward the Redmond giant.
Fundamental Chart data by YCharts
If Bard proves to be a more formidable chatbot thanks to Gemini, and it can indeed perform better than ChatGPT-4, that could swing the pendulum back into Alphabet's favor and lead to more investors buying up the relatively cheap AI stock.
Is Alphabet stock a buy?
Shares of both Alphabet and Microsoft are up more than 50% this year. But with Alphabet trading at a noticeably lower valuation, it may be the better AI stock to buy right now. ChatGPT-4 is the big chatbot today, but this is still the early innings of what may prove to be a long race in AI.
While I wouldn't buy Alphabet's stock based purely on the rollout of Gemini, it does look like the better investment option today. Counting out this top tech stock in the AI wars this early could prove to be a big mistake for investors.
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. David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet and Microsoft. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In addition to Bard, Google says Gemini will also be available in other services, including Search, Chrome, and Duet AI, which powers its office productivity software. Why this could give Alphabet's stock a boost The huge popularity of ChatGPT-4 has undoubtedly played a key role in Microsoft's rising valuation this year. Fundamental Chart data by YCharts If Bard proves to be a more formidable chatbot thanks to Gemini, and it can indeed perform better than ChatGPT-4, that could swing the pendulum back into Alphabet's favor and lead to more investors buying up the relatively cheap AI stock.
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Alphabet, through Google, launched Bard months later, but it has not been nearly as popular. While I wouldn't buy Alphabet's stock based purely on the rollout of Gemini, it does look like the better investment option today. Before you buy stock in Alphabet, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Alphabet wasn't one of them.
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Fundamental Chart data by YCharts If Bard proves to be a more formidable chatbot thanks to Gemini, and it can indeed perform better than ChatGPT-4, that could swing the pendulum back into Alphabet's favor and lead to more investors buying up the relatively cheap AI stock. Before you buy stock in Alphabet, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Alphabet wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors.
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But with Alphabet trading at a noticeably lower valuation, it may be the better AI stock to buy right now. Counting out this top tech stock in the AI wars this early could prove to be a big mistake for investors. Before you buy stock in Alphabet, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Alphabet wasn't one of them.
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712077.0
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2023-12-13 00:00:00 UTC
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Is Adyen Stock a Buy?
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https://www.nasdaq.com/articles/is-adyen-stock-a-buy-0
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As of this writing, Adyen's (OTC: ADYE.Y) stock has declined 6% this year. That's a terrible showing when compared to the 21% rise of the S&P 500 and the 38% jump in the Nasdaq Composite Index. Even more striking, Adyen shares are roughly 60% below their all-time high.
However, investor optimism seems to be skyrocketing for this payments business. Since the company provided its latest financial update on Nov. 8, the shares have soared more than 35%.
So, is it time to buy this fintech stock? Let's take a closer look.
Favorable trends
Adyen provides a single platform to help large enterprises accept payments through different channels and in different localities.
There's no question about the presence of product-market fit, and Adyen's growth has been exceptional. The business handled $70 billion in payment volume in the first six months of 2018, a figure that soared to $426 billion in the first half of this year. During this same five-year stretch, revenue ballooned 373%.
There are many tailwinds that have bolstered Adyen over the years. Of course, the rise of cashless transactions across the global economy is one of them. Yet even in the U.S., 58% of consumers still use cash for some or all of their transactions in a typical week (data from 2022), according to the Pew Research Center.
There are other factors helping Adyen. The rising complexity of the payments value chain, with what seems like a never-ending list of service providers all trying to make do, makes Adyen's one-stop solution compelling. The globalization of commerce, coupled with varying regulatory frameworks in different geographies, also helps the business attract customers.
There's no reason to believe that these trends are going to slow anytime soon. Management believes this to be the case, too. They expect Adyen's revenue to rise at a compound annual rate in the mid-20% range through 2026. This could lead revenue to double.
Critical service provider
A telltale sign of the quality of a business is to ask what would happen if Adyen ceased to exist. In this hypothetical scenario, the company's customer base would all experience substantial disruptions to their operations. How would they process transactions and collect payments? It would be a nightmare.
With that in mind, it's clear that Adyen is a mission-critical service provider for its customers. And this helps explain why the company possesses an economic moat, making it hard for rivals to unseat it.
Adyen is winning over large and well-established companies, like Microsoft, Uber, and McDonald's, because of its data advantage. Being able to process so many transactions lets Adyen better mitigate risk. Moreover, as Adyen continues to process more payment volume, its technology, fraud detection, and authorization rates will only improve. This benefits every customer the business has.
The fact that Adyen's founders, Pieter van der Does and Arnout Schuijff, have built such a thriving business in less than a decade is truly remarkable. If it continues on this trajectory, it's easy to envision the company being a dominant force in the years ahead.
Compelling valuation
A business that checks the boxes from a qualitative perspective, as Adyen appears to, may not always make the stock a no-brainer buy. Understanding the valuation is very important. The last thing you want to do is overpay.
Adyen shares are currently trading at a price-to-sales (P/S) multiple of 6.5, which is below its historical average of 10.6. For value-conscious investors, that P/S ratio might still be too expensive. But when you consider all the favorable attributes this company has, perhaps it's still a good idea to buy the stock at these levels.
Should you invest $1,000 in Adyen right now?
Before you buy stock in Adyen, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Adyen 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
Neil Patel and his clients have no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Adyen, Microsoft, and Uber Technologies. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Favorable trends Adyen provides a single platform to help large enterprises accept payments through different channels and in different localities. The fact that Adyen's founders, Pieter van der Does and Arnout Schuijff, have built such a thriving business in less than a decade is truly remarkable. Compelling valuation A business that checks the boxes from a qualitative perspective, as Adyen appears to, may not always make the stock a no-brainer buy.
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Moreover, as Adyen continues to process more payment volume, its technology, fraud detection, and authorization rates will only improve. Before you buy stock in Adyen, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Adyen wasn't one of them. The Motley Fool has positions in and recommends Adyen, Microsoft, and Uber Technologies.
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The rising complexity of the payments value chain, with what seems like a never-ending list of service providers all trying to make do, makes Adyen's one-stop solution compelling. Compelling valuation A business that checks the boxes from a qualitative perspective, as Adyen appears to, may not always make the stock a no-brainer buy. Before you buy stock in Adyen, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Adyen wasn't one of them.
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How would they process transactions and collect payments? Before you buy stock in Adyen, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Adyen wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 7, 2023 Neil Patel and his clients have no position in any of the stocks mentioned.
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8a8e2159-8eee-4a9f-9ce4-feabaaed82a5
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712078.0
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2023-12-13 00:00:00 UTC
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Zacks Investment Ideas feature highlights: Lennar and Toll Brothers
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https://www.nasdaq.com/articles/zacks-investment-ideas-feature-highlights%3A-lennar-and-toll-brothers
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For Immediate Release
Chicago, IL – December 13, 2023 – Today, Zacks Investment Ideas feature highlights Lennar LEN and Toll Brothers TOL.
Market Rally Grows as Breadth Improves: Stocks to Watch
"If everyone is thinking alike, then somebody isn't thinking." –George S. Patton
The rally off the October lows has taken many investors by surprise. Just as the bears were ready to claim victory, the Dow surged to within 1% of its all-time high! The market's recent breadth expansion is bullish as sectors like financials, health care, and industrials rally strongly from oversold levels. More stocks have reestablished uptrends and a healthy percentage are hitting 52-week highs.
The rebound points to a higher probability that we will ultimately eclipse the all-time highs for the major indexes in the near future. The S&P 500 is just about 4% away from its own all-time high set back in January of 2022. The previous 14 times that the blue-chip index went at least a full year without a new high and then finally made one, a year later it was higher 13/14 times and up nearly 15% on average.
Outside of large-caps, small-caps are beginning to show signs out outperformance. We'd like to see these smaller companies continue to do well, as the improvement speaks to increased odds that this rally will be sustainable. The Russell 2000 index is up about 15% from the October lows, displaying resilience as inflation and yields falter.
Cooling Inflation Trend Continues
This morning's release of the November Consumer Price Index (CPI) showed that prices rose 3.1% over the past year, a slight deceleration from October's 3.2% annual gain. The figure was in line with estimates, as lower energy costs held the headline figure in check. Core CPI, which strips out the more volatile food and energy components, rose at a 4% annual pace, matching the increase in October.
Tomorrow is the culmination of the FOMC two-day policy meeting, the last one of the year. Another rate pause is all but assured as markets are pricing in a roughly 99% likelihood that the Fed will stand pat. Chairman Jerome Powell stated recently that it's "premature" to discuss rate cuts; the fact is that the economy has shown it can weather a higher interest rate environment. The central bank is looking to avoid an inflation resurgence, similar to what happened in the '70s.
Powell will likely leave the door open for additional rate hikes as the Fed sticks to its data-dependent path. Last week we learned that the U.S. economy added 199,000 jobs in November, ahead of the 190k estimate. The unemployment rate fell to 3.7%, reflecting signs that the labor market may not be cooling as quickly as many had anticipated. Treasury yields continue to hover near multi-month lows.
Homebuilders Break Out
Homebuilder stocks are one group outside of tech that surged this year amid low existing inventory and a declining interest rate outlook. The Zacks Building Products – Homebuilder industry has returned nearly 70% this year, handily outpacing the market
Despite the impressive performance, stocks in this group remain relatively undervalued.
This industry currently ranks in the top 29% out of more than 250 Zacks Ranked Industries. Because it is ranked in the top half of all Zacks Ranked Industries, we expect this group to outperform the market over the next 3 to 6 months.
Quantitative research studies suggest that approximately half of a stock's price appreciation is due to its industry grouping. In fact, the top 50% of Zacks Ranked Industries outperforms the bottom 50% by a factor of more than 2 to 1. By focusing on leading stocks within the top 50% of Zacks Ranked Industries, we can dramatically improve our stock-picking success.
One well-known homebuilder that has led the charge during the recent rally is Lennar. LEN is currently a Zacks Rank #2 (Buy). The stock has broken out and is hitting a series of 52-week highs ahead of its fiscal Q4 earnings report, slated for Thursday after the close. Lennar shares have rewarded investors this year with a 56% return.
Analysts covering Lennar have increased their Q4 EPS estimates by 0.87% in the past 60 days. The Zacks Consensus Estimate now stands at $4.64/share, which reflects negative growth of -7.87% relative to the year-ago period. Projected revenues of $10.34 billion would mark a 1.62% improvement versus the same quarter last year.
Another established homebuilder that has widely outperformed this year is Toll Brothers. TOL stock has surged nearly 90% year-to-date. Even with the impressive rebound, TOL shares are trading at just a 7.59 forward P/E. Operating on the luxury end of the market, Toll Brothers is currently a Zacks Rank #3 (Hold).
The stock market rally has taken hold as we near the midpoint of December. The major indexes remain at year-to-date highs are tracking closer to their all-time highs; many individual stocks have broken out, while others are approaching breakout levels.
Other pockets of the market outside of tech are showing strength as the rally broadens out. Make sure you're taking advantage of all that Zacks has to offer to uncover leading stocks like the aforementioned homebuilders.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
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Media Contact
Zacks Investment Research
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
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
Toll Brothers Inc. (TOL) : Free Stock Analysis Report
Lennar Corporation (LEN) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Zacks Building Products – Homebuilder industry has returned nearly 70% this year, handily outpacing the market Despite the impressive performance, stocks in this group remain relatively undervalued. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. 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.
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Cooling Inflation Trend Continues This morning's release of the November Consumer Price Index (CPI) showed that prices rose 3.1% over the past year, a slight deceleration from October's 3.2% annual gain. The Zacks Building Products – Homebuilder industry has returned nearly 70% this year, handily outpacing the market Despite the impressive performance, stocks in this group remain relatively undervalued. Click to get this free report Toll Brothers Inc. (TOL) : Free Stock Analysis Report Lennar Corporation (LEN) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The Zacks Building Products – Homebuilder industry has returned nearly 70% this year, handily outpacing the market Despite the impressive performance, stocks in this group remain relatively undervalued. Because it is ranked in the top half of all Zacks Ranked Industries, we expect this group to outperform the market over the next 3 to 6 months. Click to get this free report Toll Brothers Inc. (TOL) : Free Stock Analysis Report Lennar Corporation (LEN) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The major indexes remain at year-to-date highs are tracking closer to their all-time highs; many individual stocks have broken out, while others are approaching breakout levels. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. Download FREE: How To Profit From Trillions On Spending For Infrastructure >> Want the latest recommendations from Zacks Investment Research?
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712079.0
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2023-12-13 00:00:00 UTC
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ABM Industries (ABM) Tops Q4 Earnings and Revenue Estimates
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https://www.nasdaq.com/articles/abm-industries-abm-tops-q4-earnings-and-revenue-estimates
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ABM Industries (ABM) came out with quarterly earnings of $1.01 per share, beating the Zacks Consensus Estimate of $0.93 per share. This compares to earnings of $0.89 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 8.60%. A quarter ago, it was expected that this provider of cleaning and other maintenance services for commercial buildings, hospitals and airports would post earnings of $0.88 per share when it actually produced earnings of $0.79, delivering a surprise of -10.23%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
ABM Industries, which belongs to the Zacks Building Products - Maintenance Service industry, posted revenues of $2.09 billion for the quarter ended October 2023, surpassing the Zacks Consensus Estimate by 2.77%. This compares to year-ago revenues of $2.01 billion. The company has topped consensus revenue estimates two times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
ABM Industries shares have lost about 0.1% since the beginning of the year versus the S&P 500's gain of 20.9%.
What's Next for ABM Industries?
While ABM Industries has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for ABM Industries: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.73 on $2 billion in revenues for the coming quarter and $3.29 on $8.09 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Building Products - Maintenance Service is currently in the top 1% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Paychex (PAYX), another stock in the broader Zacks Business Services sector, has yet to report results for the quarter ended November 2023. The results are expected to be released on December 21.
This payroll processor and human-resources services provider is expected to post quarterly earnings of $1.07 per share in its upcoming report, which represents a year-over-year change of +8.1%. The consensus EPS estimate for the quarter has been revised 0.1% lower over the last 30 days to the current level.
Paychex's revenues are expected to be $1.27 billion, up 6.5% from the year-ago quarter.
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
ABM Industries Incorporated (ABM) : Free Stock Analysis Report
Paychex, Inc. (PAYX) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. This payroll processor and human-resources services provider is expected to post quarterly earnings of $1.07 per share in its upcoming report, which represents a year-over-year change of +8.1%. 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.
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ABM Industries, which belongs to the Zacks Building Products - Maintenance Service industry, posted revenues of $2.09 billion for the quarter ended October 2023, surpassing the Zacks Consensus Estimate by 2.77%. The current consensus EPS estimate is $0.73 on $2 billion in revenues for the coming quarter and $3.29 on $8.09 billion in revenues for the current fiscal year. Click to get this free report ABM Industries Incorporated (ABM) : Free Stock Analysis Report Paychex, Inc. (PAYX) : Free Stock Analysis Report To read this article on Zacks.com click here.
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ABM Industries (ABM) came out with quarterly earnings of $1.01 per share, beating the Zacks Consensus Estimate of $0.93 per share. ABM Industries, which belongs to the Zacks Building Products - Maintenance Service industry, posted revenues of $2.09 billion for the quarter ended October 2023, surpassing the Zacks Consensus Estimate by 2.77%. Click to get this free report ABM Industries Incorporated (ABM) : Free Stock Analysis Report Paychex, Inc. (PAYX) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. Download FREE: How To Profit From Trillions On Spending For Infrastructure >> Want the latest recommendations from Zacks Investment Research?
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fb2c5348-5fc0-4aeb-8d44-d1972b1089ec
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712080.0
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2023-12-13 00:00:00 UTC
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Prediction: 2024 Will Be PayPal's Rebound Year
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https://www.nasdaq.com/articles/prediction%3A-2024-will-be-paypals-rebound-year
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nan
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Being a PayPal (NASDAQ: PYPL) investor has been painful the past few years. If you initiated a position in the summer of 2017, you saw the stock nearly gain 500%, only to crash back down to the same levels at which you bought it. However, back then, PayPal's quarterly total payment volume was only $106 billion versus the $388 billion it processes in each quarter now.
So, how can a stock trade at the same levels despite incredible business growth? It all concerns sentiment and expectations, and PayPal's are incredibly low. However, I think this could all turn around in 2024, making it a great year to own PayPal stock.
PayPal has made many blunders in the past few years
In 2017, PayPal was still a strong pick for a company that could capture the growing mobile payments market. Now, it has clearly lost ground to apps the phone creators champion.
This part of the pessimistic view has weighed on the stock. Another has been PayPal's falling transaction margin. For the second quarter of 2017, PayPal's transaction margin was 56.3%. In Q3 2023, this figure had fallen to 45.4%, a notable decline. This has significantly narrowed PayPal's gross margins.
Data source: YCharts.
A large part of this is the rise of Venmo, one of the most popular peer-to-peer payment services. PayPal has struggled to monetize Venmo, as it doesn't charge fees for the service (unless the user instantly transfers money to a bank). The gains would be incredible if PayPal could figure out how to monetize it. PayPal has also had other blunders along the way, like losing its place as the sole payments processor for online market operator eBay and attempting to purchase the billboard site Pinterest.
This adds up to a company many have lost faith in despite PayPal consistently increasing revenue and profit. As a result, PayPal has transitioned from a growth stock to a value stock, but there is still an investible business here.
PayPal is a great value investment
In Q3, PayPal's revenue rose 8% year over year. While this isn't market-beating growth, revenue isn't everything. With focussed buybacks and improved efficiencies, a skillful management team can turn high-single-digit percentage growth into market-beating double-digit percentage earnings growth.
Fortunately, PayPal has been doing that. While PayPal's earnings per share (EPS) figure declined year over year (due to a one-time boost PayPal had in Q3 2022), its operating margin has widening after dipping in 2022 (which accelerated PayPal's sell-off).
Data source: YCharts
This is also a focus for new Chief Executive Officer Alex Chriss, who stated on PayPal's recent conference call: "We will become leaner, more efficient, and more effective, driving greater velocity, innovation, and impact for customers." If PayPal can expand its margins with steady revenue growth, it might be able to increase earnings growth at a double-digit percentage pace.
PayPal is also reducing its share count because it believes the stock is trading at a deep discount to its intrinsic value. Over the past 12 months, PayPal has repurchased 75 million shares for about $5.4 billion, reducing the shares outstanding by about 5%. By cutting the share count, PayPal guarantees EPS growth of 5.3% if the net income is unchanged.
While that exact interaction didn't happen in Q3, that's what will happen over the long term if PayPal continues on this trajectory. So, PayPal could produce market-beating earnings growth, which should keep its valuation in line with the broader market. However, that's hasn't happened.
Data source: YCharts.
Compared to the S&P 500, which trades at about 25 times trailing and 21 times forward earnings, PayPal's shares are trading at a substantial discount. That makes it a real bargain.
Will PayPal ever return to its former growth stock glory? Probably not. But with these prices and a plan to increase earnings at a market-beating pace, it can still beat the market. I think PayPal will rebound in 2024 because the bar is set quite low compared to the rest of the market.
Should you invest $1,000 in PayPal right now?
Before you buy stock in PayPal, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and PayPal wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
See the 10 stocks
*Stock Advisor returns as of December 7, 2023
Keithen Drury has positions in PayPal. The Motley Fool has positions in and recommends PayPal. The Motley Fool recommends the following options: short December 2023 $67.50 puts on PayPal. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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PayPal has struggled to monetize Venmo, as it doesn't charge fees for the service (unless the user instantly transfers money to a bank). PayPal has also had other blunders along the way, like losing its place as the sole payments processor for online market operator eBay and attempting to purchase the billboard site Pinterest. Data source: YCharts This is also a focus for new Chief Executive Officer Alex Chriss, who stated on PayPal's recent conference call: "We will become leaner, more efficient, and more effective, driving greater velocity, innovation, and impact for customers."
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With focussed buybacks and improved efficiencies, a skillful management team can turn high-single-digit percentage growth into market-beating double-digit percentage earnings growth. While PayPal's earnings per share (EPS) figure declined year over year (due to a one-time boost PayPal had in Q3 2022), its operating margin has widening after dipping in 2022 (which accelerated PayPal's sell-off). Before you buy stock in PayPal, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and PayPal wasn't one of them.
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PayPal is a great value investment In Q3, PayPal's revenue rose 8% year over year. While PayPal's earnings per share (EPS) figure declined year over year (due to a one-time boost PayPal had in Q3 2022), its operating margin has widening after dipping in 2022 (which accelerated PayPal's sell-off). Before you buy stock in PayPal, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and PayPal wasn't one of them.
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While this isn't market-beating growth, revenue isn't everything. If PayPal can expand its margins with steady revenue growth, it might be able to increase earnings growth at a double-digit percentage pace. Before you buy stock in PayPal, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and PayPal wasn't one of them.
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712081.0
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2023-12-13 00:00:00 UTC
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Japan picks three winners in 2nd offshore wind power tender
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https://www.nasdaq.com/articles/japan-picks-three-winners-in-2nd-offshore-wind-power-tender
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By Yuka Obayashi
TOKYO, Dec 13 (Reuters) - Japan's industry and land ministries on Wednesday picked three consortia, including one featuring Germany's RWE RWEG.DE and its partners, to operate offshore wind farms in the second round of a public auction.
They said they would award a fourth wind farm that was part of the tender at a later date.
The results of the second major round under a new law to promote wind power were closely watched by energy companies at home and abroad, after the first round was dominated by Mitsubishi Corp 8058.T.
Japan's offshore wind power market is set to grow as the government aims to have 10 gigawatts (GW) of offshore wind farm deals by 2030, and up to 45 GW by 2040, as part of its decarbonisation push.
The winner of a 315-megawatt (MW) wind farm off the coast of Oga-Katagami-Akita in Akita prefecture in northern Japan was a consortium of JERA, Electric Power Development (J-Power) 9513.T, Itochu 8001.T and Tohoku Electric Power 9506.T.
Another consortium of Mitsui & Co 8031.T, RWE and Osaka Gas 9532.T won a 684 MW wind farm off the coast of Murakami-Tainai in Niigata prefecture in northern Japan.
A third group of Sumitomo Corp 8053.T and Tokyo Electric Power's 9501.T renewable power unit won a 420 MW wind farm off the coast of Enoshima in Nagasaki prefecture in southwestern Japan.
The three projects are all bottom-fixed type wind farms and scheduled to start operation between June 2028 and August 2029.
The JERA consortium and the Sumitomo group plan to use Vestas VWS.CO wind turbines, while the Mitsui consortium plans to install General Electric GE.N turbines.
Two to four groups bid on each of the three blocks. The winners achieved the highest evaluation score in terms of bidding price and business feasibility among other criteria, said Takahiro Ishii, director of the wind energy policy office at the industry ministry.
"We have selected the best plans to help achieve Japan's 2030 energy mix goal and curb the public burden of the renewable energy levy," he said.
The ministries plan to announce the winner of the remaining 356 MW farm off the coast of Happo-Noshiro in Akita prefecture in March 2024, as revisions to the plan are needed by the potential operator because the timing of the use of a port overlapped with another Akita project.
(Reporting by Yuka Obayashi Editing by Christian Schmollinger and Mark Potter)
((Yuka.Obayashi@thomsonreuters.com; +813-4520-1265;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Yuka Obayashi TOKYO, Dec 13 (Reuters) - Japan's industry and land ministries on Wednesday picked three consortia, including one featuring Germany's RWE RWEG.DE and its partners, to operate offshore wind farms in the second round of a public auction. Another consortium of Mitsui & Co 8031.T, RWE and Osaka Gas 9532.T won a 684 MW wind farm off the coast of Murakami-Tainai in Niigata prefecture in northern Japan. The winners achieved the highest evaluation score in terms of bidding price and business feasibility among other criteria, said Takahiro Ishii, director of the wind energy policy office at the industry ministry.
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The winner of a 315-megawatt (MW) wind farm off the coast of Oga-Katagami-Akita in Akita prefecture in northern Japan was a consortium of JERA, Electric Power Development (J-Power) 9513.T, Itochu 8001.T and Tohoku Electric Power 9506.T. A third group of Sumitomo Corp 8053.T and Tokyo Electric Power's 9501.T renewable power unit won a 420 MW wind farm off the coast of Enoshima in Nagasaki prefecture in southwestern Japan. The JERA consortium and the Sumitomo group plan to use Vestas VWS.CO wind turbines, while the Mitsui consortium plans to install General Electric GE.N turbines.
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Japan's offshore wind power market is set to grow as the government aims to have 10 gigawatts (GW) of offshore wind farm deals by 2030, and up to 45 GW by 2040, as part of its decarbonisation push. The winner of a 315-megawatt (MW) wind farm off the coast of Oga-Katagami-Akita in Akita prefecture in northern Japan was a consortium of JERA, Electric Power Development (J-Power) 9513.T, Itochu 8001.T and Tohoku Electric Power 9506.T. A third group of Sumitomo Corp 8053.T and Tokyo Electric Power's 9501.T renewable power unit won a 420 MW wind farm off the coast of Enoshima in Nagasaki prefecture in southwestern Japan.
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The winner of a 315-megawatt (MW) wind farm off the coast of Oga-Katagami-Akita in Akita prefecture in northern Japan was a consortium of JERA, Electric Power Development (J-Power) 9513.T, Itochu 8001.T and Tohoku Electric Power 9506.T. The JERA consortium and the Sumitomo group plan to use Vestas VWS.CO wind turbines, while the Mitsui consortium plans to install General Electric GE.N turbines. The winners achieved the highest evaluation score in terms of bidding price and business feasibility among other criteria, said Takahiro Ishii, director of the wind energy policy office at the industry ministry.
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712082.0
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2023-12-13 00:00:00 UTC
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Can Tesla Stock Reach $300 in 2024?
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https://www.nasdaq.com/articles/can-tesla-stock-reach-%24300-in-2024
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Tesla (NASDAQ: TSLA) has been one of the hottest stocks to own over the past five years, but it has taken shareholders on quite a roller-coaster ride along the way. In 2023 alone, Tesla has gone from $108 to $293 to its current price of about $240.
That's a lot of movement, but investors really want to know where the stock is heading in 2024. If it enters next year at $240, it would require a 25% gain to reach $300 -- a market-beating return. So, can Tesla do that next year? Let's find out.
Tesla is succeeding against legacy automakers
Tesla electric vehicles are some of the most popular on the market. In 2023 so far, the Tesla Model Y and Model 3 are the fourth and twelfth best-selling vehicles in the U.S. When you remove pickups from the equation, the Model Y becomes the best-selling vehicle in the U.S.
That's an impressive feat, showing that Tesla's vehicles are a top choice among consumers. But what many investors may be worried about is what happens when legacy automakers start producing their models at full scale. But as one indicator of Tesla's success, the Ford Mustang Mach-E production numbers were recently reduced to meet demand, which shows that consumers aren't going to flock to legacy producers when their model arrives.
Tesla has also launched the long-awaited Cybertruck. This is an important product, as pickups made by the Big Three automakers have long topped the charts as the best-selling vehicles in the U.S. Furthermore, pickups have much better gross profit margins than standard passenger vehicles, and if Tesla prices the Cybertruck right, it could enjoy those profits as well.
This is critical, as Tesla desperately needs a gross margin boost.
Tesla's margins have fallen to legacy levels
To stay competitive in the EV space, Tesla has dropped the prices of its vehicles to capture market share. With many consumers focusing on the monthly payment rather than the sticker price, Tesla had to cut the vehicle price to compensate for the higher interest rates.
While this has allowed Tesla to continue its growth (Tesla's deliveries were up 27% in Q3), it has come at the cost of profits.
TSLA Gross Profit Margin (Quarterly) data by YCharts
As another headwind to Tesla's profit picture, the $7,500 EV tax credit created by the Inflation Reduction Act will likely be reduced in 2024 because of where Tesla sources and creates its batteries. If Tesla cuts the price to compensate for this credit loss, its gross margin could take another hit, which may be enough to send it into an unprofitable state.
Tesla's margins being the primary factor separating it from legacy automakers is a huge problem for investors. Tesla's stock also carries an ultra-premium valuation into 2024, as 78 times trailing earnings is expensive no matter which company you're talking about.
TSLA PE Ratio data by YCharts
Furthermore, this is among the highest valuations the stock has achieved this year, showing that it's expensive from a historical perspective, too.
So, could Tesla stock defy the odds and hit $300? With Tesla stock, anything is possible as history has shown again and again.
If the Cybertruck rollout goes well and boosts Tesla's margins and the Federal Reserve cuts interest rates (allowing Tesla to raise prices to keep the monthly payment the same), Tesla stock could take off. Conversely, if neither of those factors occurs in 2024, Tesla shareholders may be in for a rough ride.
While there's a chance Tesla stock could reach $300, there's an equally strong chance of it hitting $200 or lower. Regardless, Tesla has proven itself to be a powerhouse in the EV space, and interest rates will come down eventually, allowing it to raise prices.
So, with the five-year picture still looking strong, I'll remain a buyer of Tesla stock until something derails this investment thesis over a long-term investing horizon.
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 7, 2023
Keithen Drury has positions in Tesla. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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But as one indicator of Tesla's success, the Ford Mustang Mach-E production numbers were recently reduced to meet demand, which shows that consumers aren't going to flock to legacy producers when their model arrives. Tesla's stock also carries an ultra-premium valuation into 2024, as 78 times trailing earnings is expensive no matter which company you're talking about. TSLA PE Ratio data by YCharts Furthermore, this is among the highest valuations the stock has achieved this year, showing that it's expensive from a historical perspective, too.
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With many consumers focusing on the monthly payment rather than the sticker price, Tesla had to cut the vehicle price to compensate for the higher interest rates. TSLA Gross Profit Margin (Quarterly) data by YCharts As another headwind to Tesla's profit picture, the $7,500 EV tax credit created by the Inflation Reduction Act will likely be reduced in 2024 because of where Tesla sources and creates its batteries. If the Cybertruck rollout goes well and boosts Tesla's margins and the Federal Reserve cuts interest rates (allowing Tesla to raise prices to keep the monthly payment the same), Tesla stock could take off.
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Tesla's margins have fallen to legacy levels To stay competitive in the EV space, Tesla has dropped the prices of its vehicles to capture market share. TSLA Gross Profit Margin (Quarterly) data by YCharts As another headwind to Tesla's profit picture, the $7,500 EV tax credit created by the Inflation Reduction Act will likely be reduced in 2024 because of where Tesla sources and creates its batteries. If the Cybertruck rollout goes well and boosts Tesla's margins and the Federal Reserve cuts interest rates (allowing Tesla to raise prices to keep the monthly payment the same), Tesla stock could take off.
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Furthermore, pickups have much better gross profit margins than standard passenger vehicles, and if Tesla prices the Cybertruck right, it could enjoy those profits as well. With many consumers focusing on the monthly payment rather than the sticker price, Tesla had to cut the vehicle price to compensate for the higher interest rates. TSLA PE Ratio data by YCharts Furthermore, this is among the highest valuations the stock has achieved this year, showing that it's expensive from a historical perspective, too.
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f88a7f59-6b3d-4cbc-a214-feb0eec1a166
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712083.0
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2023-12-13 00:00:00 UTC
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Do Options Traders Know Something About InMode (INMD) Stock We Don't?
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https://www.nasdaq.com/articles/do-options-traders-know-something-about-inmode-inmd-stock-we-dont
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Investors in InMode Ltd. INMD need to pay close attention to the stock based on moves in the options market lately. That is because the Jan 19, 2024 $105.00 Call had some of the highest implied volatility of all equity options today.
What is Implied Volatility?
Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
What do the Analysts Think?
Clearly, options traders are pricing in a big move for InMode shares, but what is the fundamental picture for the company? Currently, InMode is a Zacks Rank #4 (Sell) in the Medical - Products industry that ranks in the Bottom 45% of our Zacks Industry Rank. Over the last 30 days, no analysts have increased the earnings estimates for the current quarter, while one has revised the estimates downwards. The net effect has taken our Zacks Consensus Estimate for the current quarter from 71 cents per share to 62 cents in that period.
Given the way analysts feel InMode right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.
Looking to Trade Options?
Check out the simple yet high-powered approach that Zacks Executive VP Kevin Matras has used to close recent double and triple-digit winners. In addition to impressive profit potential, these trades can actually reduce your risk.
Click to see the trades now >>
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
InMode Ltd. (INMD) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. Check out the simple yet high-powered approach that Zacks Executive VP Kevin Matras has used to close recent double and triple-digit winners. 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.
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Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. Click to get this free report InMode Ltd. (INMD) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. Given the way analysts feel InMode right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium.
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Given the way analysts feel InMode right now, this huge implied volatility could mean there’s a trade developing. Looking to Trade Options? Download FREE: How To Profit From Trillions On Spending For Infrastructure >> Want the latest recommendations from Zacks Investment Research?
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354e1134-e3a6-4657-bf86-bb7e514e4e6e
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712084.0
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2023-12-13 00:00:00 UTC
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2 Incredible Growth Stocks to Buy Before 2023 Is Over
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https://www.nasdaq.com/articles/2-incredible-growth-stocks-to-buy-before-2023-is-over
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After some big sell-offs last year, 2023 has generally been a very strong year for growth stocks. The growth-heavy Nasdaq Composite index has rallied roughly 30% year to date, and it's possible that the impressive performance will continue. Yet, the index is still down 10% from its high. With many analysts expecting that the Federal Reserve will pivot to cutting interest rates in 2024, more strong momentum for growth stocks could be on the horizon.
If you're on the hunt for opportunities, read on to see why two Motley Fool contributors think that investing in these top stocks before this year is over would be a great move.
Investors won't want to miss this growth trend
Keith Noonan: CrowdStrike (NASDAQ: CRWD) is a leading provider of cybersecurity software for businesses and institutions. With the help of various service modules provided through the company's artificial intelligence (AI)-powered Falcon platform, organizations can better position themselves to fend off attacks from cybercriminals. CrowdStrike's AI systems learn and evolve with each new threat they encounter, and the company is perfectly positioned to benefit from growing demand for cybersecurity protections.
The industry leader is already doing an impressive job of building out its recurring sales base. CrowdStrike sells multiple subscription service modules through its Falcon platform, and growth for annual recurring revenue (ARR) bodes well for the company's long-term performance because it establishes an effective floor for performance and opens the door for continued expansion.
CrowdStrike's ARR grew 35% year over year to reach $3.15 billion at the end of its third quarter. This growth was in line with the 35% increase for quarterly revenue, which brought period sales to $786 million. Not only does generating the large majority of its revenue from subscriptions help to make its revenue performance more dependable and predictable, but it also helps cut down on sales and marketing costs.
Along with expanding gross margins and strong sales growth, efficiency initiatives helped the company improve its bottom line. Non-GAAP (adjusted) earnings per share jumped 105% year over year to reach $0.82, and the company swung to a profit of $3.2 million in the quarter -- improving from a loss of $56.4 million in last year's quarter.
CrowdStrike's Q3 performance once again demonstrated the business's resilience. Strong demand for high-performance cybersecurity services has continued even in periods when macroeconomic uncertainty has prompted some businesses to take more cautious approaches to spending. It's a mission-critical need that well-run organizations can't afford to ignore.
With CrowdStrike stock still down 17% from its high even after an impressive rally, there's a good chance long-term investors can still score big wins with the stock.
The worst is likely behind The House of Mouse
Parkev Tatevosian: If there is one growth stock I recommend owning before 2023 is over, it would be Walt Disney (NYSE: DIS). The House of Mouse was devastated at the onset of the COVID-19 pandemic because many of its businesses relied on bringing large groups of people together. It also tried a CEO transition that did not go so well.
But Bob Iger is back at the helm after passing the reins to Bob Chapek for a while. Iger has done an excellent job cleaning up costs since returning. Meanwhile, the pandemic has receded, and Disney's businesses like theme parks, hotels, and cruises are thriving.
In its fiscal 2023, which ended on Sept. 30, Disney's revenue increased by 7.5% to $89 billion. More importantly, Disney's operating income rose to $9 billion. That said, the operating income figure is still below the peak of $14.8 billion in 2018. Of course, that was before Disney started investing aggressively in its transition to a streaming content business model. Thankfully, management has noted that after years of investment, the streaming segment could reach profitability in 2024.
I don't expect Disney's operating income to approach the $14.8 billion mark reached in 2018. Still, given how well Disney's theme park segment is doing, plus the progress in its streaming segment, where losses are expected to turn to gains, I wouldn't be surprised if Disney's operating income is in the double-digit billions in 2024. That being the case, I would want to own Disney stock before the start of 2024.
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 CrowdStrike made the list -- but there are 9 other stocks you may be overlooking.
See the 10 stocks
*Stock Advisor returns as of December 7, 2023
Keith Noonan has positions in CrowdStrike and Walt Disney. Parkev Tatevosian, CFA has positions in Walt Disney. The Motley Fool has positions in and recommends CrowdStrike and Walt Disney. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Investors won't want to miss this growth trend Keith Noonan: CrowdStrike (NASDAQ: CRWD) is a leading provider of cybersecurity software for businesses and institutions. With the help of various service modules provided through the company's artificial intelligence (AI)-powered Falcon platform, organizations can better position themselves to fend off attacks from cybercriminals. CrowdStrike's AI systems learn and evolve with each new threat they encounter, and the company is perfectly positioned to benefit from growing demand for cybersecurity protections.
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CrowdStrike sells multiple subscription service modules through its Falcon platform, and growth for annual recurring revenue (ARR) bodes well for the company's long-term performance because it establishes an effective floor for performance and opens the door for continued expansion. I don't expect Disney's operating income to approach the $14.8 billion mark reached in 2018. See the 10 stocks *Stock Advisor returns as of December 7, 2023 Keith Noonan has positions in CrowdStrike and Walt Disney.
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Non-GAAP (adjusted) earnings per share jumped 105% year over year to reach $0.82, and the company swung to a profit of $3.2 million in the quarter -- improving from a loss of $56.4 million in last year's quarter. Still, given how well Disney's theme park segment is doing, plus the progress in its streaming segment, where losses are expected to turn to gains, I wouldn't be surprised if Disney's operating income is in the double-digit billions in 2024. See the 10 stocks *Stock Advisor returns as of December 7, 2023 Keith Noonan has positions in CrowdStrike and Walt Disney.
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After some big sell-offs last year, 2023 has generally been a very strong year for growth stocks. See the 10 stocks *Stock Advisor returns as of December 7, 2023 Keith Noonan has positions in CrowdStrike and Walt Disney. The Motley Fool has positions in and recommends CrowdStrike and Walt Disney.
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5581b835-a7d3-4d34-8ce7-f1912352d76a
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712085.0
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2023-12-13 00:00:00 UTC
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LyondellBasell (LYB) Transforms Maritime Waste to New Plastics
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https://www.nasdaq.com/articles/lyondellbasell-lyb-transforms-maritime-waste-to-new-plastics
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LyondellBasell Industries N.V. LYB has participated in a ground-breaking value chain collaboration aimed at transforming maritime waste into innovative plastics. A renowned German OEM and a specialized recycling company with expertise in mechanically recycling plastic waste are involved in this collaboration.
Recycling marine plastic has only historically been used by the automotive industry to create fibers for new car parts. But now that CirculenRecover PPC TRC 2179N is available, this recycling can be utilized for injection molding for the first time. This innovation creates new opportunities for using recycled plastics.
End-of-life fishing nets are gathered and carefully sorted by type as part of this collaboration. After that, they undergo processing to produce a premium plastic recycle. This recycled material is combined with virgin compounds by LyondellBasell to create the grade CirculenRecover PPC TRC 2179N.
The injection-molded parts composed of CirculenRecover PPC TRC 2179N are trim pieces utilized in the interior of different car models' visible sections. The automotive industry will be able to use this development to increase environmental responsibility and sustainability on a large scale.
Shares of LyondellBasell have gained 9.5% over the past year against a 13.7% decline of its industry.
Image Source: Zacks Investment Research
The company, on its third-quarter call, said that it anticipates seasonally lower demand across most industries in the fourth quarter. Higher feedstock costs, new industry capacity and slowing Chinese demand growth continue to put pressure on global olefins and polyolefins margins. Following the end of the summer driving season, oxyfuels and refining margins are projected to fall.
Nonetheless, oxyfuel margins are expected to remain significantly higher than historical averages. LyondellBasell plans to operate its assets in line with market demand during the fourth quarter, with average operating rates of 85% for North American olefins and polyolefins (O&P) assets, 75% for European O&P assets and 70% for Intermediates & Derivatives assets.
LyondellBasell Industries N.V. Price and Consensus
LyondellBasell Industries N.V. price-consensus-chart | LyondellBasell Industries N.V. Quote
Zacks Rank & Key Picks
LyondellBasell currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the basic materials space include Denison Mines Corp. DNN, Axalta Coating Systems Ltd. AXTA and Hawkins, Inc. HWKN.
Denison Mines has a projected earnings growth rate of 100% for the current year. It currently carries a Zacks Rank #1 (Strong Buy). DNN delivered a trailing four-quarter earnings surprise of roughly 225%, on average. The stock is up around 58.8% in a year. You can see the complete list of today’s Zacks #1 Rank stocks here.
Axalta has a projected earnings growth rate of 5.4% for the current year. It currently carries a Zacks Rank #1. AXTA delivered a trailing four-quarter earnings surprise of roughly 6.7%, on average. The stock is up around 23.7% in a year.
Hawkins has a projected earnings growth rate of 21% for the current year. It currently carries a Zacks Rank #2 (Buy). Hawkins delivered a trailing four-quarter earnings surprise of roughly 27.5%, on average. HWKN shares are up around 61% in a 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
LyondellBasell Industries N.V. (LYB) : Free Stock Analysis Report
Denison Mine Corp (DNN) : Free Stock Analysis Report
Axalta Coating Systems Ltd. (AXTA) : Free Stock Analysis Report
Hawkins, Inc. (HWKN) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Image Source: Zacks Investment Research The company, on its third-quarter call, said that it anticipates seasonally lower demand across most industries in the fourth quarter. Higher feedstock costs, new industry capacity and slowing Chinese demand growth continue to put pressure on global olefins and polyolefins margins. 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.
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LyondellBasell Industries N.V. Price and Consensus LyondellBasell Industries N.V. price-consensus-chart | LyondellBasell Industries N.V. Quote Zacks Rank & Key Picks LyondellBasell currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the basic materials space include Denison Mines Corp. DNN, Axalta Coating Systems Ltd. AXTA and Hawkins, Inc. HWKN. Click to get this free report LyondellBasell Industries N.V. (LYB) : Free Stock Analysis Report Denison Mine Corp (DNN) : Free Stock Analysis Report Axalta Coating Systems Ltd. (AXTA) : Free Stock Analysis Report Hawkins, Inc. (HWKN) : Free Stock Analysis Report To read this article on Zacks.com click here.
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LyondellBasell Industries N.V. Price and Consensus LyondellBasell Industries N.V. price-consensus-chart | LyondellBasell Industries N.V. Quote Zacks Rank & Key Picks LyondellBasell currently carries a Zacks Rank #3 (Hold). The 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. Click to get this free report LyondellBasell Industries N.V. (LYB) : Free Stock Analysis Report Denison Mine Corp (DNN) : Free Stock Analysis Report Axalta Coating Systems Ltd. (AXTA) : Free Stock Analysis Report Hawkins, Inc. (HWKN) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Recycling marine plastic has only historically been used by the automotive industry to create fibers for new car parts. The stock is up around 58.8% in a year. The stock is up around 23.7% in a year.
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712086.0
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2023-12-13 00:00:00 UTC
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PPG Opens $17M Aerospace Application Support Center in France
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DCOMP
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https://www.nasdaq.com/articles/ppg-opens-%2417m-aerospace-application-support-center-in-france
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nan
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nan
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PPG Industries Inc. PPG has opened a $17 million aerospace application support center (ASC) in Toulouse, France. The facility offers aerospace materials filling and packaging capabilities, including coatings and sealants for a wide range of aircraft, as well as technical support and a laboratory. ASC Toulouse's strategic location allows it to provide faster product deliveries to aerospace customers in southern Europe and North Africa.
This new facility is expected to significantly improve PPG's responsiveness and customer support capabilities, while also allowing the company's unique materials to be qualified earlier in the product development cycle.
The ASC includes a laboratory for developing aerospace materials, a color blending area for coatings and a spray booth for hands-on paint application training. It also has touch-up kit filling lines, a transparencies inspection cell, customized packaging for third-party products, chemical management resources and a customer service center.
Shares of PPG have gained 9.5% over the past year compared with a 10.4% rise of its industry.
Image Source: Zacks Investment Research
PPG expects total organic sales to be up or down a low single-digit percent in the fourth quarter. The company's projected adjusted EPS for the fourth quarter is in the range of $1.44-$1.50. For the full year, the company raised its adjusted EPS projection to the band of $7.58-$7.64.
PPG Industries, Inc. Price and Consensus
PPG Industries, Inc. price-consensus-chart | PPG Industries, Inc. Quote
Zacks Rank & Key Picks
PPG currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the basic materials space include Denison Mines Corp. DNN, Axalta Coating Systems Ltd. AXTA and Hawkins, Inc. HWKN.
Denison Mines has a projected earnings growth rate of 100% for the current year. It currently carries a Zacks Rank #1 (Strong Buy). DNN delivered a trailing four-quarter earnings surprise of roughly 225%, on average. The stock is up around 56.4% in a year. You can see the complete list of today’s Zacks #1 Rank stocks here.
Axalta has a projected earnings growth rate of 5.4% for the current year. It currently carries a Zacks Rank #1. AXTA delivered a trailing four-quarter earnings surprise of roughly 6.7%, on average. The stock is up around 27.9% in a year.
Hawkins has a projected earnings growth rate of 21% for the current year. It currently carries a Zacks Rank #2 (Buy). Hawkins delivered a trailing four-quarter earnings surprise of roughly 27.5%, on average. HWKN shares are up around 61% in a 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
PPG Industries, Inc. (PPG) : Free Stock Analysis Report
Denison Mine Corp (DNN) : Free Stock Analysis Report
Axalta Coating Systems Ltd. (AXTA) : Free Stock Analysis Report
Hawkins, Inc. (HWKN) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The facility offers aerospace materials filling and packaging capabilities, including coatings and sealants for a wide range of aircraft, as well as technical support and a laboratory. This new facility is expected to significantly improve PPG's responsiveness and customer support capabilities, while also allowing the company's unique materials to be qualified earlier in the product development cycle. The ASC includes a laboratory for developing aerospace materials, a color blending area for coatings and a spray booth for hands-on paint application training.
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PPG Industries, Inc. Price and Consensus PPG Industries, Inc. price-consensus-chart | PPG Industries, Inc. Quote Zacks Rank & Key Picks PPG currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the basic materials space include Denison Mines Corp. DNN, Axalta Coating Systems Ltd. AXTA and Hawkins, Inc. HWKN. Click to get this free report PPG Industries, Inc. (PPG) : Free Stock Analysis Report Denison Mine Corp (DNN) : Free Stock Analysis Report Axalta Coating Systems Ltd. (AXTA) : Free Stock Analysis Report Hawkins, Inc. (HWKN) : Free Stock Analysis Report To read this article on Zacks.com click here.
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PPG Industries, Inc. Price and Consensus PPG Industries, Inc. price-consensus-chart | PPG Industries, Inc. Quote Zacks Rank & Key Picks PPG currently carries a Zacks Rank #3 (Hold). 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. Click to get this free report PPG Industries, Inc. (PPG) : Free Stock Analysis Report Denison Mine Corp (DNN) : Free Stock Analysis Report Axalta Coating Systems Ltd. (AXTA) : Free Stock Analysis Report Hawkins, Inc. (HWKN) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The stock is up around 56.4% in a year. The stock is up around 27.9% in a year. Download FREE: How To Profit From Trillions On Spending For Infrastructure >> Want the latest recommendations from Zacks Investment Research?
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f0affddf-d58b-413c-a721-69a65f0a5218
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712087.0
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2023-12-13 00:00:00 UTC
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Despite Fast-paced Momentum, SSAB (SSAAY) Is Still a Bargain Stock
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DCOMP
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https://www.nasdaq.com/articles/despite-fast-paced-momentum-ssab-ssaay-is-still-a-bargain-stock
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nan
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nan
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Momentum investors typically don't time the market or "buy low and sell high." In other words, they avoid betting on cheap stocks and waiting long for them to recover. Instead, they believe that "buying high and selling higher" is the way to make far more money in lesser time.
Who doesn't like betting on fast-moving trending stocks? But determining the right entry point isn't easy. Often, these stocks lose momentum once their valuation moves ahead of their future growth potential. In such a situation, investors find themselves loaded up on expensive shares with limited to no upside or even a downside. So, going all-in on momentum could be risky at times.
A safer approach could be investing in bargain stocks with recent price momentum. While the Zacks Momentum Style Score (part of the Zacks Style Scores system) helps identify great momentum stocks by paying close attention to trends in a stock's price or earnings, our 'Fast-Paced Momentum at a Bargain' screen comes handy in spotting fast-moving stocks that are still attractively priced.
SSAB (SSAAY) is one of the several great candidates that made it through the screen. While there are numerous reasons why this stock is a great choice, here are the most vital ones:
Investors' growing interest in a stock is reflected in its recent price increase. A price change of 9.3% over the past four weeks positions the stock of this company well in this regard.
While any stock can see a spike in price for a short period, it takes a real momentum player to deliver positive returns for a longer time frame. SSAAY meets this criterion too, as the stock gained 38.5% over the past 12 weeks.
Moreover, the momentum for SSAAY is fast paced, as the stock currently has a beta of 1.37. This indicates that the stock moves 37% higher than the market in either direction.
Given this price performance, it is no surprise that SSAAY has a Momentum Score of B, which indicates that this is the right time to enter the stock to take advantage of the momentum with the highest probability of success.
In addition to a favorable Momentum Score, an upward trend in earnings estimate revisions has helped SSAAY earn a Zacks Rank #2 (Buy). Our research shows that the momentum-effect is quite strong among Zacks Rank #1 and #2 stocks. That's because as covering analysts raise their earnings estimates for a stock, more and more investors take an interest in it, helping its price race to keep up. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Most importantly, despite possessing fast-paced momentum features, SSAAY is trading at a reasonable valuation. In terms of Price-to-Sales ratio, which is considered as one of the best valuation metrics, the stock looks quite cheap now. SSAAY is currently trading at 0.65 times its sales. In other words, investors need to pay only 65 cents for each dollar of sales.
So, SSAAY appears to have plenty of room to run, and that too at a fast pace.
In addition to SSAAY, there are several other stocks that currently pass through our 'Fast-Paced Momentum at a Bargain' screen. You may consider investing in them and start looking for the newest stocks that fit these criteria.
This is not the only screen that could help you find your next winning stock pick. Based on your personal investing style, you may choose from over 45 Zacks Premium Screens that are strategically created to beat the market.
However, keep in mind that the key to a successful stock-picking strategy is to ensure that it produced profitable results in the past. You could easily do that with the help of the Zacks Research Wizard. In addition to allowing you to backtest the effectiveness of your strategy, the program comes loaded with some of our most successful stock-picking strategies.
Click here to sign up for a free trial to the Research Wizard today.
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
SSAB (SSAAY) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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While any stock can see a spike in price for a short period, it takes a real momentum player to deliver positive returns for a longer time frame. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Most importantly, despite possessing fast-paced momentum features, SSAAY is trading at a reasonable valuation. 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.
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While the Zacks Momentum Style Score (part of the Zacks Style Scores system) helps identify great momentum stocks by paying close attention to trends in a stock's price or earnings, our 'Fast-Paced Momentum at a Bargain' screen comes handy in spotting fast-moving stocks that are still attractively priced. In addition to a favorable Momentum Score, an upward trend in earnings estimate revisions has helped SSAAY earn a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Most importantly, despite possessing fast-paced momentum features, SSAAY is trading at a reasonable valuation.
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While the Zacks Momentum Style Score (part of the Zacks Style Scores system) helps identify great momentum stocks by paying close attention to trends in a stock's price or earnings, our 'Fast-Paced Momentum at a Bargain' screen comes handy in spotting fast-moving stocks that are still attractively priced. Given this price performance, it is no surprise that SSAAY has a Momentum Score of B, which indicates that this is the right time to enter the stock to take advantage of the momentum with the highest probability of success. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Most importantly, despite possessing fast-paced momentum features, SSAAY is trading at a reasonable valuation.
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Given this price performance, it is no surprise that SSAAY has a Momentum Score of B, which indicates that this is the right time to enter the stock to take advantage of the momentum with the highest probability of success. In addition to SSAAY, there are several other stocks that currently pass through our 'Fast-Paced Momentum at a Bargain' screen. Download FREE: How To Profit From Trillions On Spending For Infrastructure >> Want the latest recommendations from Zacks Investment Research?
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faeb1d99-f905-4717-8b8a-072c43b075f7
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712088.0
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2023-12-13 00:00:00 UTC
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Centene (CNC) Unveils its 2024 Projections: Key Takeaways
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DCOMP
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https://www.nasdaq.com/articles/centene-cnc-unveils-its-2024-projections%3A-key-takeaways
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nan
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nan
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Centene Corporation CNC revealed its 2024 outlook at an investor event, reaffirming its 2023 guidance. Emphasizing improving profitability, the company expressed its intent to enhance the repurchase program. The stock surged 2.8% yesterday following the better-than-expected bottom-line guidance.
2023 Guidance Reaffirmed
The company continues to expect premium and service revenues within $137.5-$139.5 billion, up from the 2022 figure of $135.5 billion. Adjusted EPS is projected to be at least $6.60, suggesting a significant improvement from the 2022 reported figure of $5.78. The Zacks Consensus Estimate for the same is currently pegged at $6.66 per share. The company also reiterated its HBR guidance in the band of 87.1-87.7%.
2024 Outlook
Centene expects total revenues within $142.5-$145.5 billion, lower than the 2023 expected figure of $149-$151 billion. The company estimates premium and service revenues to be in the $132-$135 billion range, also lower than the 2023 guided range. Factors contributing to the year-over-year decline may include Medicaid redeterminations and the reduction of specific Medicare Advantage products. This decline will be partially offset by certain contract wins.
Centene's 2024 adjusted EPS is projected to exceed $6.70, indicating growth from 2023 estimates despite a decline in revenues. This underscores positive operational momentum. The 2024 adjusted EPS guidance surpasses the Zacks Consensus Estimate of $6.68 per share. CEO Sarah London expects adjusted profit to achieve an average annual growth of 12-15% over the long term, as reported by Reuters.
Centene expects the health benefits ratio to be within 87.3-87.9% in 2024, signaling a deterioration from the 2023 estimated range. The company also estimates the adjusted SG&A expense ratio to be in the 8.4-9% range. It projects the adjusted effective tax rate to be within 24.1-25.1%.
Diluted shares outstanding for 2024 are expected at 522.2-525.2 million. The board has authorized a new $4 billion additional fund for the share buyback program, which had around $1.2 billion left.
Price Performance
Centene’s shares have gained 18.1% in the past six months compared with the industry’s 17% rise.
Image Source: Zacks Investment Research
Zacks Rank & Other Key Picks
Centene currently carries a Zacks Rank #2 (Buy). Some other top-ranked stocks in the broader medical space are HealthEquity, Inc. HQY, Enovis Corporation ENOV and Motus GI Holdings, Inc. MOTS, each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for HealthEquity’s current-year earnings is pegged at $2.8 per share, indicating 52.9% year-over-year growth. HQY has witnessed four upward estimate revisions in the past week against none in the opposite direction. It beat earnings estimates in all the past four quarters, with an average surprise of 16.5%.
The Zacks Consensus Estimate for Enovis’ current-year earnings implies a 4.9% increase from the year-ago reported figure. The consensus mark for its current-year revenues is pegged at $1.7 billion. ENOV beat earnings estimates in all the last four quarters, with an average surprise of 11%.
The Zacks Consensus Estimate for Motus GI’s 2023 bottom line suggests a 67.2% year-over-year improvement. MOTS has witnessed one upward estimate revision over the past 30 days against no movement in the opposite direction. It beat earnings estimates in all the last four quarters, with an average surprise of 40.2%.
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
Centene Corporation (CNC) : Free Stock Analysis Report
HealthEquity, Inc. (HQY) : Free Stock Analysis Report
Motus GI Holdings, Inc. (MOTS) : Free Stock Analysis Report
Enovis Corporation (ENOV) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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CEO Sarah London expects adjusted profit to achieve an average annual growth of 12-15% over the long term, as reported by Reuters. Some other top-ranked stocks in the broader medical space are HealthEquity, Inc. HQY, Enovis Corporation ENOV and Motus GI Holdings, Inc. MOTS, each carrying a Zacks Rank #2 at present. 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.
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Some other top-ranked stocks in the broader medical space are HealthEquity, Inc. HQY, Enovis Corporation ENOV and Motus GI Holdings, Inc. MOTS, each carrying a Zacks Rank #2 at present. The Zacks Consensus Estimate for HealthEquity’s current-year earnings is pegged at $2.8 per share, indicating 52.9% year-over-year growth. Click to get this free report Centene Corporation (CNC) : Free Stock Analysis Report HealthEquity, Inc. (HQY) : Free Stock Analysis Report Motus GI Holdings, Inc. (MOTS) : Free Stock Analysis Report Enovis Corporation (ENOV) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The 2024 adjusted EPS guidance surpasses the Zacks Consensus Estimate of $6.68 per share. The Zacks Consensus Estimate for HealthEquity’s current-year earnings is pegged at $2.8 per share, indicating 52.9% year-over-year growth. Click to get this free report Centene Corporation (CNC) : Free Stock Analysis Report HealthEquity, Inc. (HQY) : Free Stock Analysis Report Motus GI Holdings, Inc. (MOTS) : Free Stock Analysis Report Enovis Corporation (ENOV) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Centene's 2024 adjusted EPS is projected to exceed $6.70, indicating growth from 2023 estimates despite a decline in revenues. The 2024 adjusted EPS guidance surpasses the Zacks Consensus Estimate of $6.68 per share. Download FREE: How To Profit From Trillions On Spending For Infrastructure >> Want the latest recommendations from Zacks Investment Research?
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41c8fc78-ebb4-4f97-945f-f248de09e009
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712089.0
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2023-12-13 00:00:00 UTC
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2 Artificial Intelligence Stocks to Buy Hand Over Fist in 2024
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DCOMP
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https://www.nasdaq.com/articles/2-artificial-intelligence-stocks-to-buy-hand-over-fist-in-2024
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nan
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nan
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For the past few years, Wall Street has witnessed several hot investment trends -- be it cannabis, the metaverse, cryptocurrency, blockchain, cloud computing, and now artificial intelligence (AI). While some have lost steam, others seem to be dramatically impacting our daily lives.
AI falls into the latter category. With enterprises investing heavily in AI technologies, the world now seems to be on the cusp of a transformational technological leap. Investors keen on riding this secular trend can consider purchasing stakes in high-quality AI stocks such as Advanced Micro Devices (NASDAQ: AMD) and CrowdStrike (NASDAQ: CRWD). Here's why.
Advanced Micro Devices
After a lackluster performance in 2022, shares of semiconductor giant Advanced Micro Devices have made a strong recovery and are up by nearly 100% so far in 2023. However, there are still many reasons the stock could go even higher in the coming months.
First, AMD's data center segment reported an impressive 21% sequential growth in revenue to $1.6 billion thanks to the widespread adoption of its third- and fourth-generation Epyc-brand processors by enterprises, cloud computing infrastructure providers, and AI infrastructure providers. According to Mercury Research, in the third quarter the company witnessed improvements of 5.8 percentage points in unit share and 1.7 percentage points in revenue share in the global server central processing unit (CPU) market.
AMD has further expanded its Epyc server CPU portfolio by introducing more efficient Genoa and Bergamo variants for certain complex workloads. Hence, the company stands a solid chance to remain a dominant presence in the server CPU market.
Second, AMD is also focusing on the early ramp of its next-generation Instinct MI300 graphics processing units (GPUs), optimized for high-performance computing and AI workloads in the cloud. The company expects its data center GPU revenue to be $400 million in the fourth quarter and $2 billion in 2024, driven mainly by the increasing adoption of MI300 GPU accelerators in AI and machine learning applications.
With demand for AI chips far outpacing supply, customers may choose the MI300 GPU as an alternative to Nvidia's famous H100 chip. AMD has also enhanced performance and added several features to its ROCm (Radeon Open Compute) software platform, which can be used to optimally program MI300 GPUs for complex workloads. Against this backdrop, MI300 GPUs can emerge as AMD's major future growth catalyst.
Lastly, the PC market seems to be on the verge of recovery, starting in the fourth quarter and continuing throughout 2024. The growth in the PC market is expected to be partly driven by increasing demand for AI processors and AI-enabled PCs.
AMD is well-positioned to benefit from this industrywide trend thanks to the robust uptake of its Ryzen 7000 series PC processors, including Ryzen AI on-chip accelerators. All these tailwinds make AMD an attractive AI stock now.
CrowdStrike
Leading endpoint security player CrowdStrike has come out with impressive third-quarter fiscal 2024 results (ended Oct. 31), with revenue and earnings surpassing consensus estimates and record free cash flow of $239 million. The company has also guided for a solid 35% year over year in revenue to $3.05 billion for the full fiscal 2024 -- an impressive feat at a time when enterprises have been scrutinizing their cybersecurity budgets. This highlights the resilience and growth potential of CrowdStrike, even in an environment marred by difficult macros and geopolitical tensions.
CrowdStrike's multi-modular Falcon platform (comprising 27 modules) has emerged as a major beneficiary of the increasing adoption of cybersecurity solutions -- considered mission-critical infrastructure across industries and sectors in the current digitized world. Besides endpoint security (which involves protecting devices and network access points from malicious actors), the Falcon platform offers other solutions, such as cloud security, identity protection, observability, threat intelligence, and data protection.
By catering to all the enterprises' cybersecurity needs with its highly scalable, easily deployable, and unified AI-driven Falcon platform, CrowdStrike has made its solutions essential to its clients' technology infrastructures, ensuring a sticky customer base. The company has also been quite successful in cross-selling additional Falcon modules to existing clients. This is evident, considering 63% of the subscription customers were using five or more Falcon modules, up from 60% in the same quarter of the prior year.
CrowdStrike is also benefiting from a network effect. The company uses insights derived from its AI-driven Threat Graph (which processes trillions of cyberthreat-related data signals weekly) to train the Falcon platform, making it smarter and more intelligent in identifying and thwarting potential threats. A superior product attracts even more customers, meaning a bigger data pool for its Threat Graph. This virtuous cycle has been a solid positive for the company.
Cybersecurity companies are also investing heavily in generative AI technologies to analyze vast amounts of data with predictive models and identify and mitigate cyber risks. Canalys expects over 70% of businesses will use generative AI tools in their cybersecurity offerings in the next five years.
Unsurprisingly, CrowdStrike has also been integrating generative AI into its core cybersecurity offerings to enhance its threat detection and response mechanisms further. In May, the company introduced Charlotte AI, a generative AI-powered virtual cybersecurity analyst, to help users of all skill levels detect and remediate cyberthreats effectively.
With solid brand positioning, improving financials, and impressive AI initiatives, CrowdStrike seems to be a compelling stock to buy now.
Should you invest $1,000 in Advanced Micro Devices right now?
Before you buy stock in Advanced Micro Devices, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Advanced Micro Devices wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
See the 10 stocks
*Stock Advisor returns as of December 7, 2023
Manali Bhade has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, CrowdStrike, and Nvidia. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For the past few years, Wall Street has witnessed several hot investment trends -- be it cannabis, the metaverse, cryptocurrency, blockchain, cloud computing, and now artificial intelligence (AI). CrowdStrike's multi-modular Falcon platform (comprising 27 modules) has emerged as a major beneficiary of the increasing adoption of cybersecurity solutions -- considered mission-critical infrastructure across industries and sectors in the current digitized world. By catering to all the enterprises' cybersecurity needs with its highly scalable, easily deployable, and unified AI-driven Falcon platform, CrowdStrike has made its solutions essential to its clients' technology infrastructures, ensuring a sticky customer base.
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First, AMD's data center segment reported an impressive 21% sequential growth in revenue to $1.6 billion thanks to the widespread adoption of its third- and fourth-generation Epyc-brand processors by enterprises, cloud computing infrastructure providers, and AI infrastructure providers. According to Mercury Research, in the third quarter the company witnessed improvements of 5.8 percentage points in unit share and 1.7 percentage points in revenue share in the global server central processing unit (CPU) market. The company expects its data center GPU revenue to be $400 million in the fourth quarter and $2 billion in 2024, driven mainly by the increasing adoption of MI300 GPU accelerators in AI and machine learning applications.
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Investors keen on riding this secular trend can consider purchasing stakes in high-quality AI stocks such as Advanced Micro Devices (NASDAQ: AMD) and CrowdStrike (NASDAQ: CRWD). First, AMD's data center segment reported an impressive 21% sequential growth in revenue to $1.6 billion thanks to the widespread adoption of its third- and fourth-generation Epyc-brand processors by enterprises, cloud computing infrastructure providers, and AI infrastructure providers. Before you buy stock in Advanced Micro Devices, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Advanced Micro Devices wasn't one of them.
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The company has also guided for a solid 35% year over year in revenue to $3.05 billion for the full fiscal 2024 -- an impressive feat at a time when enterprises have been scrutinizing their cybersecurity budgets. Should you invest $1,000 in Advanced Micro Devices right now? Before you buy stock in Advanced Micro Devices, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Advanced Micro Devices wasn't one of them.
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08ee81e4-6a01-4d30-bc2a-50a05ea8dac8
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712090.0
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2023-12-13 00:00:00 UTC
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Better Growth Stock: Vertex Pharmaceuticals or Exact Sciences?
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DCOMP
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https://www.nasdaq.com/articles/better-growth-stock%3A-vertex-pharmaceuticals-or-exact-sciences
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nan
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nan
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Outperforming the benchmark S&P 500 index over a long period is a formidable challenge. This task becomes even more daunting when choosing stocks from the healthcare sector, where the competitive landscape is constantly evolving due to patent expirations, technological breakthroughs, and political headwinds. Unicorns do indeed exist in the dynamic healthcare sector, however. The rare disease specialist Vertex Pharmaceuticals (NASDAQ: VRTX) and the molecular cancer diagnostic stalwart Exact Sciences (NASDAQ: EXAS) are two of the best examples.
Over the past 10 years, both of these cutting-edge healthcare companies have delivered significant excess returns for their shareholders, relative to the total returns of the S&P 500. That's no easy task, given that less than 3% of all stocks have consistently outperformed this bellwether index since 1926.
What's the secret to their success? Vertex has built a dominant position in the area of therapeutics for cystic fibrosis (CF), a genetically based condition with few treatment competitors, and has strong pricing power and robust demand. Exact, for its part, is a pioneer in the field of next-generation cancer diagnostics, spearheaded by its home-based colon cancer screening test, Cologuard. Thanks to their focus on innovation, each company has generated double-digit revenue growth in recent years, which has been the foundation for their market-beating performances.
Image source: Getty Images.
Which of these top-performing healthcare stocks is the better buy now? Let's dig deeper to find out.
The case for Vertex
Vertex is a leading developer of rare disease drugs, which are known for their strong pricing power and commercial longevity. The company has launched four major cystic fibrosis drugs through its efforts, and its newest product in this setting, Trikafta, makes up almost 90% of its total sales at the moment. Even so, this exceptionally high revenue concentration is not a particularly big risk factor for Vertex, because it has no serious rivals in this area. In addition, Wall Street analysts expect the company to maintain its dominance in this rare disease drug market for a long time.
Vertex has been wisely using its unusual competitive position to expand beyond CF. Vertex and partner CRISPR Therapeutics (NASDAQ: CRSP) recently landed the first regulatory approvals for a gene-edited product, and it has ongoing clinical studies in the areas of diabetes, pain, as well as a progressive type of kidney disease. To fund these trials, the biotech has been spending almost a third of its total sales on research and development in 2023. That's among the highest R&D spends as a percent of total sales in the entire industry.
Additionally, Vertex is already cash-flow-positive, despite its heavy investments in next-generation pipeline candidates. And its only major risk factor is its pipeline, which hasn't delivered a recent blockbuster outside of CF. Vertex and CRISPR aim to change this situation with their recently approved rare blood disease therapy Casgevy, but a quick ramp for this gene-edited medicine is highly unlikely for a variety of reasons.
The case for Exact
Since its commercial launch in the U.S. in 2014, Cologuard has established a new market for home-based colon cancer testing. Over this period, Exact has also acquired several advanced platforms to develop a diverse portfolio of next-generation cancer diagnostics, completed a successful trial of an improved version of Cologuard, and accumulated a large cash position of more than $734 million as of the last quarter.
Digging deeper, Exact's income statement reflects its focus on innovation and its key operating goal of creating a viable economic moat in the long run. The company invests about 16% of its annual revenue in research and development, which is modestly higher than the average among its immediate peer group. Through this hefty investment, Exact is attempting to build a portfolio capable of dominating the home-based cancer screening market for years to come, which represents a multibillion-dollar-a-year commercial opportunity.
All that being said, Exact is still far from profitable, and most analysts believe that its next major growth driver -- a multicancer early detection test -- will take several years to reach the market. Additionally, some analysts have raised concerns that competitors may soon start to cut into Cologuard's market share. That's far from a surefire outcome, given Cologuard's first-mover advantage. But this is a risk factor prospective investors should consider before buying shares.
Verdict
If you have funds to buy both stocks, that's probably the smart move. Both of these biotechs are investing heavily in future products that could dominate their markets for long periods. However, Vertex is arguably the modestly better buy in this head-to-head matchup. The company is a growth powerhouse, it already generates healthy levels of free cash flow, and its pipeline might be woefully underappreciated by this market. That's a winning combination, to put it mildly.
Should you invest $1,000 in Exact Sciences right now?
Before you buy stock in Exact Sciences, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Exact Sciences 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
George Budwell has positions in CRISPR Therapeutics. The Motley Fool has positions in and recommends CRISPR Therapeutics and Vertex Pharmaceuticals. The Motley Fool recommends Exact Sciences. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Vertex has built a dominant position in the area of therapeutics for cystic fibrosis (CF), a genetically based condition with few treatment competitors, and has strong pricing power and robust demand. Vertex and partner CRISPR Therapeutics (NASDAQ: CRSP) recently landed the first regulatory approvals for a gene-edited product, and it has ongoing clinical studies in the areas of diabetes, pain, as well as a progressive type of kidney disease. Over this period, Exact has also acquired several advanced platforms to develop a diverse portfolio of next-generation cancer diagnostics, completed a successful trial of an improved version of Cologuard, and accumulated a large cash position of more than $734 million as of the last quarter.
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Exact, for its part, is a pioneer in the field of next-generation cancer diagnostics, spearheaded by its home-based colon cancer screening test, Cologuard. Through this hefty investment, Exact is attempting to build a portfolio capable of dominating the home-based cancer screening market for years to come, which represents a multibillion-dollar-a-year commercial opportunity. Before you buy stock in Exact Sciences, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Exact Sciences wasn't one of them.
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The rare disease specialist Vertex Pharmaceuticals (NASDAQ: VRTX) and the molecular cancer diagnostic stalwart Exact Sciences (NASDAQ: EXAS) are two of the best examples. Over this period, Exact has also acquired several advanced platforms to develop a diverse portfolio of next-generation cancer diagnostics, completed a successful trial of an improved version of Cologuard, and accumulated a large cash position of more than $734 million as of the last quarter. Before you buy stock in Exact Sciences, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Exact Sciences wasn't one of them.
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Thanks to their focus on innovation, each company has generated double-digit revenue growth in recent years, which has been the foundation for their market-beating performances. Which of these top-performing healthcare stocks is the better buy now? Before you buy stock in Exact Sciences, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Exact Sciences wasn't one of them.
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849c6d0c-0260-412a-b235-24435f451940
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712091.0
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2023-12-13 00:00:00 UTC
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Why Fast-paced Mover Cemtrex Inc. (CETX) Is a Great Choice for Value Investors
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DCOMP
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https://www.nasdaq.com/articles/why-fast-paced-mover-cemtrex-inc.-cetx-is-a-great-choice-for-value-investors
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nan
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nan
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Momentum investors typically don't time the market or "buy low and sell high." In other words, they avoid betting on cheap stocks and waiting long for them to recover. Instead, they believe that "buying high and selling higher" is the way to make far more money in lesser time.
Everyone likes betting on fast-moving trending stocks, but it isn't easy to determine the right entry point. These stocks often lose momentum when their future growth potential fails to justify their swelled-up valuation. In that phase, investors find themselves invested in shares that have limited to no upside or even a downside. So, betting on a stock just by looking at the traditional momentum parameters could be risky at times.
It could be safer to invest in bargain stocks that have been witnessing price momentum recently. While the Zacks Momentum Style Score (part of the Zacks Style Scores system), which pays close attention to trends in a stock's price or earnings, is pretty useful in identifying great momentum stocks, our 'Fast-Paced Momentum at a Bargain' screen comes handy in spotting fast-moving stocks that are still attractively priced.
Cemtrex Inc. (CETX) is one of the several great candidates that made it through the screen. While there are numerous reasons why this stock is a great choice, here are the most vital ones:
Investors' growing interest in a stock is reflected in its recent price increase. A price change of 14.9% over the past four weeks positions the stock of this company well in this regard.
While any stock can see a spike in price for a short period, it takes a real momentum player to deliver positive returns for a longer time frame. CETX meets this criterion too, as the stock gained 4.8% over the past 12 weeks.
Moreover, the momentum for CETX is fast paced, as the stock currently has a beta of 2.27. This indicates that the stock moves 127% higher than the market in either direction.
Given this price performance, it is no surprise that CETX has a Momentum Score of A, which indicates that this is the right time to enter the stock to take advantage of the momentum with the highest probability of success.
In addition to a favorable Momentum Score, an upward trend in earnings estimate revisions has helped CETX earn a Zacks Rank #2 (Buy). Our research shows that the momentum-effect is quite strong among Zacks Rank #1 and #2 stocks. That's because as covering analysts raise their earnings estimates for a stock, more and more investors take an interest in it, helping its price race to keep up. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Most importantly, despite possessing fast-paced momentum features, CETX is trading at a reasonable valuation. In terms of Price-to-Sales ratio, which is considered as one of the best valuation metrics, the stock looks quite cheap now. CETX is currently trading at 0.10 times its sales. In other words, investors need to pay only 10 cents for each dollar of sales.
So, CETX appears to have plenty of room to run, and that too at a fast pace.
In addition to CETX, there are several other stocks that currently pass through our 'Fast-Paced Momentum at a Bargain' screen. You may consider investing in them and start looking for the newest stocks that fit these criteria.
This is not the only screen that could help you find your next winning stock pick. Based on your personal investing style, you may choose from over 45 Zacks Premium Screens that are strategically created to beat the market.
However, keep in mind that the key to a successful stock-picking strategy is to ensure that it produced profitable results in the past. You could easily do that with the help of the Zacks Research Wizard. In addition to allowing you to backtest the effectiveness of your strategy, the program comes loaded with some of our most successful stock-picking strategies.
Click here to sign up for a free trial to the Research Wizard today.
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
Cemtrex Inc. (CETX) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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While any stock can see a spike in price for a short period, it takes a real momentum player to deliver positive returns for a longer time frame. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Most importantly, despite possessing fast-paced momentum features, CETX is trading at a reasonable valuation. 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.
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While the Zacks Momentum Style Score (part of the Zacks Style Scores system), which pays close attention to trends in a stock's price or earnings, is pretty useful in identifying great momentum stocks, our 'Fast-Paced Momentum at a Bargain' screen comes handy in spotting fast-moving stocks that are still attractively priced. In addition to a favorable Momentum Score, an upward trend in earnings estimate revisions has helped CETX earn a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Most importantly, despite possessing fast-paced momentum features, CETX is trading at a reasonable valuation.
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While the Zacks Momentum Style Score (part of the Zacks Style Scores system), which pays close attention to trends in a stock's price or earnings, is pretty useful in identifying great momentum stocks, our 'Fast-Paced Momentum at a Bargain' screen comes handy in spotting fast-moving stocks that are still attractively priced. Given this price performance, it is no surprise that CETX has a Momentum Score of A, which indicates that this is the right time to enter the stock to take advantage of the momentum with the highest probability of success. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Most importantly, despite possessing fast-paced momentum features, CETX is trading at a reasonable valuation.
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Given this price performance, it is no surprise that CETX has a Momentum Score of A, which indicates that this is the right time to enter the stock to take advantage of the momentum with the highest probability of success. In addition to CETX, there are several other stocks that currently pass through our 'Fast-Paced Momentum at a Bargain' screen. Download FREE: How To Profit From Trillions On Spending For Infrastructure >> Want the latest recommendations from Zacks Investment Research?
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99a46cb7-56f7-47ee-9dab-4c23862a9706
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712092.0
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2023-12-13 00:00:00 UTC
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Is Carnival Stock a Buy in 2024?
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DCOMP
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https://www.nasdaq.com/articles/is-carnival-stock-a-buy-in-2024
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nan
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nan
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With its shares up by a whopping 127% this year, Carnival Corp. (NYSE: CCL) is no doubt making a lot of shareholders happy. But while the international cruise operator has made great strides since the depths of the pandemic, it is still far from reaching safe waters. That's because while growth and profitability are improving, management of its huge debt load remains an uphill battle.
Let's explore what's ahead for the cruise line and whether it has a chance to navigate to a better place next year.
An impressive operational rebound
The COVID-19 pandemic hit few industries harder than ocean cruising -- particularly after a no-sail order by the Centers for Disease Control and Prevention (CDC) grounded U.S. operations for much of 2020 and 2021. That said, Carnival's third-quarter earnings demonstrate how far the company has recovered from this challenging period.
Q3 revenue hit an all-time high of $6.9 billion amid soaring passenger ticket and onboard sales (food, drinks, and entertainment on the cruise ships). To put this number in context, Carnival generated just $6.5 billion in the third quarter of 2019, before the pandemic. And the company has finally returned to profitability under generally accepted accounting principles (GAAP) with $1.07 billion in net income.
Although profits are 41% lower than the $1.8 billion generated this time in 2019, this is still an important milestone in Carnival's turnaround. Net income and, perhaps more importantly, operating income mean the cruise operator will be less reliant on outside sources of cash like debt or equity dilution to fund its operations and pay down its debt.
What comes next in 2024?
But Carnival's long-term situation isn't all champagne and caviar. Going into 2024, the company still has a big problem with its balance sheet. As of the third quarter, long-term debt stands at $29.5 billion, which is uncomfortably high for a company with a market capitalization of just $24 billion. And even though Carnival is profitable now, it still has substantial cash outflows related to debt servicing and capital expenditure.
Image source: Getty Images.
Third-quarter interest expense stood at over $500 million and will likely exceed $2 billion annually. An additional $2 billion in debt will mature in 2024. And Carnival expects to spend $4.1 billion on capital expenditures related to building new vessels and maintaining its aging fleet. The newfound profitability will help it manage these obligations. But there probably won't be much cash left over for investors in 2024 and beyond -- until management finally begins to extinguish the debt burden.
Looking closer at the valuation
With a forward price-to-sales (P/S) multiple of about 1.1, Carnival stock is cheaper than the S&P 500 average of 2.5. But this metric only tells one side of the story. When you buy shares in a company, you also get exposure to its debt. And in Carnival's case, this will be an ongoing drag on its cash flow and the amount of value left over for shareholders.
When taking Carnival's balance sheet into account with a metric called enterprise value (which adds market cap to debt minus cash), Carnival's P/S multiple more than doubles to 2.7. And this looks like a high price to pay for a stock that is still in recovery mode.
Should you invest $1,000 in Carnival Corp. right now?
Before you buy stock in Carnival Corp., consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Carnival Corp. wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
See the 10 stocks
*Stock Advisor returns as of December 7, 2023
Will Ebiefung has no position in any of the stocks mentioned. The Motley Fool recommends Carnival Corp. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Q3 revenue hit an all-time high of $6.9 billion amid soaring passenger ticket and onboard sales (food, drinks, and entertainment on the cruise ships). And the company has finally returned to profitability under generally accepted accounting principles (GAAP) with $1.07 billion in net income. And Carnival expects to spend $4.1 billion on capital expenditures related to building new vessels and maintaining its aging fleet.
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Net income and, perhaps more importantly, operating income mean the cruise operator will be less reliant on outside sources of cash like debt or equity dilution to fund its operations and pay down its debt. As of the third quarter, long-term debt stands at $29.5 billion, which is uncomfortably high for a company with a market capitalization of just $24 billion. Before you buy stock in Carnival Corp., consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Carnival Corp. wasn't one of them.
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Net income and, perhaps more importantly, operating income mean the cruise operator will be less reliant on outside sources of cash like debt or equity dilution to fund its operations and pay down its debt. When taking Carnival's balance sheet into account with a metric called enterprise value (which adds market cap to debt minus cash), Carnival's P/S multiple more than doubles to 2.7. Before you buy stock in Carnival Corp., consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Carnival Corp. wasn't one of them.
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As of the third quarter, long-term debt stands at $29.5 billion, which is uncomfortably high for a company with a market capitalization of just $24 billion. Before you buy stock in Carnival Corp., consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Carnival Corp. wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 7, 2023 Will Ebiefung has no position in any of the stocks mentioned.
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dcbe643b-2684-4a12-b706-fdfed9b2aacc
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712093.0
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2023-12-13 00:00:00 UTC
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Want $500 in Annual Passive Income? Invest $11,000 in These 2 Dividend Stocks
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DCOMP
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https://www.nasdaq.com/articles/want-%24500-in-annual-passive-income-invest-%2411000-in-these-2-dividend-stocks
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nan
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nan
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Owning a diversified portfolio of high-quality dividend stocks is a great way for investors to minimize risk and build a reliable stream of passive income. But to build a high-performance dividend portfolio with set-it-and-forget-it characteristics, investors still have to be selective.
At their current share prices, Verizon Communications (NYSE: VZ) and McDonald's (NYSE: MCD) have an average yield of 4.6%, so investing $11,000 evenly between them would net you passive income of more than $500 annually. Even better, there's a good chance that both of these industry-leading companies will continue to increase their payouts each year.
If you're aiming to build up your passive income stream, two Motley Fool contributors believe that investing in these top dividend stocks would be a smart move.
One of the best dividend stocks in the S&P 500
Keith Noonan: Verizon stock boasts an impressive 7% dividend yield at today's prices. Even after a recent rally, the stock price is still down roughly 4% across 2023's trading. Strikingly, the company's share price is also down roughly 40% from its high.
Competition in the telecom space, high interest rates leading to greater debt-related expenses, and other factors have caused the stock to struggle in recent years. But the combination of the stock's weak performance and management's regular payout hikes has had the effect of elevating Verizon's dividend yield.
The telecom giant currently offers the second-highest yield of any company in the S&P 500 index, trailing only Walgreens Boots Alliance, which currently yields roughly 8.4%. However, Verizon's payout looks much more sustainable over the long term -- and I think the communications leader stands out as a top play for investors seeking dependable passive income generation.
Verizon expects to generate roughly $18 billion in free cash flow this year. Meanwhile, it anticipates distributing roughly $11 billion worth of dividends to shareholders. With its payout ratio sitting at roughly 61%, Verizon's dividend is safely covered -- and there's a good chance that management will continue to increase the payout annually.
In addition to having one of the highest overall yields in the S&P 500, Verizon has the longest active payout-hiking streak of any U.S. telecom company -- 17 years -- and cost-cutting and efficiency initiatives should pave the way for further hikes even if it is unable to achieve substantial sales growth in the near term.
VZ PE Ratio (Forward 1y) data by YCharts.
Beyond offering one of the most attractive dividend yields on the market, Verizon stock also looks quite cheaply valued. Trading at less than 8.2 times next year's expected earnings, the company's current valuation leaves room for capital appreciation that could add to the returns shareholders will bank from its dependable dividend.
McDonald's could generate passive income for decades more
Parkev Tatevosian: McDonald's is one of my favorite stocks right now for income investors. The company made prudent decisions during the depths of the pandemic that are likely to keep benefiting it over the longer term. Specifically, its investments in digital platforms helped expand each restaurant's geographic reach, reduced the demands on its employees, and increased convenience for customers. The ability to order McDonald's for delivery or pickup from its app has been an unequivocal success, increasing convenience for customers, while lowering costs for the business (fewer cashiers needed).
Already, McDonald's has increased its dividend per share from $3.12 in 2013 to $5.66 in 2022. That's a healthy increase. (Forgive me for using the words healthy and McDonald's in the same article.) More importantly, McDonald's supported its rising dividends with profit growth. Over that same period, its earnings per share rose from $5.55 to $8.33.
In other words, McDonald's dividends are sustainable for the long run at these levels. At the current share price, they yield a solid 2.2% and the stock trades at reasonable earnings multiples.
MCD PE Ratio (Forward 1y) data by YCharts.
That's critical because paying dividends in excess of earnings is a policy that no company can sustain for long. Eventually, such a business will deplete its savings and reach the limits of borrowing capacity. Therefore, passive income investors can be encouraged by McDonald's situation, in which dividend growth is well supported by rising earnings. Moreover, McDonald's stock is not prohibitively expensive, trading at a forward price-to-earnings ratio of 22.8.
Should you invest $1,000 in Verizon Communications right now?
Before you buy stock in Verizon Communications, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Verizon Communications wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
See the 10 stocks
*Stock Advisor returns as of December 11, 2023
Keith Noonan has no position in any of the stocks mentioned. Parkev Tatevosian, CFA has no position in any of the stocks mentioned. 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.
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In addition to having one of the highest overall yields in the S&P 500, Verizon has the longest active payout-hiking streak of any U.S. telecom company -- 17 years -- and cost-cutting and efficiency initiatives should pave the way for further hikes even if it is unable to achieve substantial sales growth in the near term. Trading at less than 8.2 times next year's expected earnings, the company's current valuation leaves room for capital appreciation that could add to the returns shareholders will bank from its dependable dividend. The ability to order McDonald's for delivery or pickup from its app has been an unequivocal success, increasing convenience for customers, while lowering costs for the business (fewer cashiers needed).
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At their current share prices, Verizon Communications (NYSE: VZ) and McDonald's (NYSE: MCD) have an average yield of 4.6%, so investing $11,000 evenly between them would net you passive income of more than $500 annually. If you're aiming to build up your passive income stream, two Motley Fool contributors believe that investing in these top dividend stocks would be a smart move. Before you buy stock in Verizon Communications, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Verizon Communications wasn't one of them.
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One of the best dividend stocks in the S&P 500 Keith Noonan: Verizon stock boasts an impressive 7% dividend yield at today's prices. Before you buy stock in Verizon Communications, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Verizon Communications wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Keith Noonan has no position in any of the stocks mentioned.
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At their current share prices, Verizon Communications (NYSE: VZ) and McDonald's (NYSE: MCD) have an average yield of 4.6%, so investing $11,000 evenly between them would net you passive income of more than $500 annually. However, Verizon's payout looks much more sustainable over the long term -- and I think the communications leader stands out as a top play for investors seeking dependable passive income generation. Already, McDonald's has increased its dividend per share from $3.12 in 2013 to $5.66 in 2022.
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abe97de5-9155-4f55-891e-7d0957c8326d
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712094.0
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2023-12-13 00:00:00 UTC
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VersaBank (VBNK) Surpasses Q4 Earnings Estimates
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DCOMP
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https://www.nasdaq.com/articles/versabank-vbnk-surpasses-q4-earnings-estimates
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nan
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VersaBank (VBNK) came out with quarterly earnings of $0.35 per share, beating the Zacks Consensus Estimate of $0.32 per share. This compares to earnings of $0.17 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 9.38%. A quarter ago, it was expected that this company would post earnings of $0.31 per share when it actually produced earnings of $0.28, delivering a surprise of -9.68%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
VersaBank, which belongs to the Zacks Banks - Foreign industry, posted revenues of $21.49 million for the quarter ended October 2023, missing the Zacks Consensus Estimate by 3.49%. This compares to year-ago revenues of $18.22 million. The company has topped consensus revenue estimates two times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
VersaBank shares have added about 6.5% since the beginning of the year versus the S&P 500's gain of 20.9%.
What's Next for VersaBank?
While VersaBank has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for VersaBank: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.32 on $22.79 million in revenues for the coming quarter and $1.50 on $99.09 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Foreign is currently in the bottom 46% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the broader Zacks Finance sector, The Bank of New York Mellon Corporation (BK), has yet to report results for the quarter ended December 2023. The results are expected to be released on January 12.
This company is expected to post quarterly earnings of $1.11 per share in its upcoming report, which represents a year-over-year change of -14.6%. The consensus EPS estimate for the quarter has been revised 0.6% lower over the last 30 days to the current level.
The Bank of New York Mellon Corporation's revenues are expected to be $4.28 billion, up 9.3% from the year-ago quarter.
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
VersaBank (VBNK) : Free Stock Analysis Report
The Bank of New York Mellon Corporation (BK) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. Another stock from the broader Zacks Finance sector, The Bank of New York Mellon Corporation (BK), has yet to report results for the quarter ended December 2023. 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.
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VersaBank, which belongs to the Zacks Banks - Foreign industry, posted revenues of $21.49 million for the quarter ended October 2023, missing the Zacks Consensus Estimate by 3.49%. The current consensus EPS estimate is $0.32 on $22.79 million in revenues for the coming quarter and $1.50 on $99.09 million in revenues for the current fiscal year. Click to get this free report VersaBank (VBNK) : Free Stock Analysis Report The Bank of New York Mellon Corporation (BK) : Free Stock Analysis Report To read this article on Zacks.com click here.
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VersaBank (VBNK) came out with quarterly earnings of $0.35 per share, beating the Zacks Consensus Estimate of $0.32 per share. VersaBank, which belongs to the Zacks Banks - Foreign industry, posted revenues of $21.49 million for the quarter ended October 2023, missing the Zacks Consensus Estimate by 3.49%. Click to get this free report VersaBank (VBNK) : Free Stock Analysis Report The Bank of New York Mellon Corporation (BK) : Free Stock Analysis Report To read this article on Zacks.com click here.
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VersaBank (VBNK) came out with quarterly earnings of $0.35 per share, beating the Zacks Consensus Estimate of $0.32 per share. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Download FREE: How To Profit From Trillions On Spending For Infrastructure >> Want the latest recommendations from Zacks Investment Research?
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390f97e2-e960-4ecf-89bd-df03b63f1e12
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712095.0
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2023-12-13 00:00:00 UTC
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Are Options Traders Betting on a Big Move in Netflix (NFLX) Stock?
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DCOMP
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https://www.nasdaq.com/articles/are-options-traders-betting-on-a-big-move-in-netflix-nflx-stock-1
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nan
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Investors in Netflix, Inc. NFLX need to pay close attention to the stock based on moves in the options market lately. That is because the Jan 19, 2024 $20 Call had some of the highest implied volatility of all equity options today.
What is Implied Volatility?
Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
What do the Analysts Think?
Clearly, options traders are pricing in a big move for Netflix shares, but what is the fundamental picture for the company? Currently, Netflix is a Zacks Rank #3 (Hold) in the Broadcast Radio and Television industry that ranks in the Top 34% of our Zacks Industry Rank. Over the last 60 days, the Zacks Consensus Estimate for the current quarter has moved from $2.21 per share to $2.18 in that period.
Given the way analysts feel about Netflix right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.
Looking to Trade Options?
Check out the simple yet high-powered approach that Zacks Executive VP Kevin Matras has used to close recent double and triple-digit winners. In addition to impressive profit potential, these trades can actually reduce your risk.
Click to see the trades now >>
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
Netflix, Inc. (NFLX) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. Check out the simple yet high-powered approach that Zacks Executive VP Kevin Matras has used to close recent double and triple-digit winners. 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.
|
Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. Click to get this free report Netflix, Inc. (NFLX) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. Given the way analysts feel about Netflix right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium.
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Given the way analysts feel about Netflix right now, this huge implied volatility could mean there’s a trade developing. Looking to Trade Options? Download FREE: How To Profit From Trillions On Spending For Infrastructure >> Want the latest recommendations from Zacks Investment Research?
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dba2aa03-59d8-4a47-bf2b-6884d745bacc
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712096.0
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2023-12-13 00:00:00 UTC
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Pre-Market Most Active for Dec 13, 2023 : STTK, CCCC, PFE, TQQQ, ARCC, SQQQ, TSLA, GOTU, NIO, HLX, PLTR, F
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DCOMP
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https://www.nasdaq.com/articles/pre-market-most-active-for-dec-13-2023-%3A-sttk-cccc-pfe-tqqq-arcc-sqqq-tsla-gotu-nio-hlx
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The NASDAQ 100 Pre-Market Indicator is up 40.53 to 16,394.78. The total Pre-Market volume is currently 47,727,789 shares traded.
The following are the most active stocks for the pre-market session:
Shattuck Labs, Inc. (STTK) is +2.2 at $4.31, with 11,885,590 shares traded. As reported in the last short interest update the days to cover for STTK is 16.162017; this calculation is based on the average trading volume of the stock.
C4 Therapeutics, Inc. (CCCC) is +0.43 at $2.77, with 11,217,260 shares traded. As reported in the last short interest update the days to cover for CCCC is 8.628582; this calculation is based on the average trading volume of the stock.
Pfizer, Inc. (PFE) is -1.74 at $26.84, with 5,480,819 shares traded. PFE's current last sale is 72.54% of the target price of $37.
ProShares UltraPro QQQ (TQQQ) is +0.31 at $47.39, with 2,080,655 shares traded. This represents a 194.35% increase from its 52 Week Low.
Ares Capital Corporation (ARCC) is unchanged at $20.12, with 2,012,736 shares traded. As reported in the last short interest update the days to cover for ARCC is 8.193096; this calculation is based on the average trading volume of the stock.
ProShares UltraPro Short QQQ (SQQQ) is -0.1 at $14.80, with 1,402,949 shares traded., following a 52-week high recorded in prior regular session.
Tesla, Inc. (TSLA) is -2.66 at $234.35, with 1,248,903 shares traded. TSLA's current last sale is 93.74% of the target price of $250.
Gaotu Techedu Inc. (GOTU) is +0.23 at $3.67, with 1,120,494 shares traded. GOTU's current last sale is 159.57% of the target price of $2.3.
NIO Inc. (NIO) is -0.06 at $7.21, with 663,680 shares traded. NIO's current last sale is 69.33% of the target price of $10.4.
Helix Energy Solutions Group, Inc. (HLX) is +0.38 at $9.62, with 655,338 shares traded. As reported by Zacks, the current mean recommendation for HLX is in the "buy range".
Palantir Technologies Inc. (PLTR) is +0.0597 at $17.56, with 438,625 shares traded. PLTR's current last sale is 109.75% of the target price of $16.
Ford Motor Company (F) is -0.02 at $11.14, with 378,673 shares traded. F's current last sale is 79.57% of the target price of $14.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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As reported in the last short interest update the days to cover for STTK is 16.162017; this calculation is based on the average trading volume of the stock. As reported in the last short interest update the days to cover for CCCC is 8.628582; this calculation is based on the average trading volume of the stock. As reported in the last short interest update the days to cover for ARCC is 8.193096; this calculation is based on the average trading volume of the stock.
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As reported in the last short interest update the days to cover for STTK is 16.162017; this calculation is based on the average trading volume of the stock. As reported in the last short interest update the days to cover for CCCC is 8.628582; this calculation is based on the average trading volume of the stock. As reported in the last short interest update the days to cover for ARCC is 8.193096; this calculation is based on the average trading volume of the stock.
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The total Pre-Market volume is currently 47,727,789 shares traded. As reported in the last short interest update the days to cover for STTK is 16.162017; this calculation is based on the average trading volume of the stock. As reported in the last short interest update the days to cover for CCCC is 8.628582; this calculation is based on the average trading volume of the stock.
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The following are the most active stocks for the pre-market session: PFE's current last sale is 72.54% of the target price of $37. TSLA's current last sale is 93.74% of the target price of $250.
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bc755680-9035-4935-b3fc-a7167c5dda2c
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712097.0
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2023-12-13 00:00:00 UTC
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REV Group (REVG) Surpasses Q4 Earnings and Revenue Estimates
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DCOMP
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https://www.nasdaq.com/articles/rev-group-revg-surpasses-q4-earnings-and-revenue-estimates-0
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nan
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nan
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REV Group (REVG) came out with quarterly earnings of $0.53 per share, beating the Zacks Consensus Estimate of $0.34 per share. This compares to earnings of $0.28 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 55.88%. A quarter ago, it was expected that this company would post earnings of $0.25 per share when it actually produced earnings of $0.35, delivering a surprise of 40%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
REV Group, which belongs to the Zacks Transportation - Services industry, posted revenues of $693.3 million for the quarter ended October 2023, surpassing the Zacks Consensus Estimate by 5.33%. This compares to year-ago revenues of $623.6 million. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
REV Group shares have added about 35.2% since the beginning of the year versus the S&P 500's gain of 20.9%.
What's Next for REV Group?
While REV Group has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for REV Group: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.20 on $587.62 million in revenues for the coming quarter and $1.55 on $2.67 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Transportation - Services is currently in the bottom 16% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the broader Zacks Transportation sector, Delta Air Lines (DAL), has yet to report results for the quarter ended December 2023.
This airline is expected to post quarterly earnings of $1.15 per share in its upcoming report, which represents a year-over-year change of -22.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Delta Air Lines' revenues are expected to be $13.89 billion, up 3.4% from the year-ago quarter.
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
REV Group, Inc. (REVG) : Free Stock Analysis Report
Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. Another stock from the broader Zacks Transportation sector, Delta Air Lines (DAL), has yet to report results for the quarter ended December 2023. 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.
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REV Group, which belongs to the Zacks Transportation - Services industry, posted revenues of $693.3 million for the quarter ended October 2023, surpassing the Zacks Consensus Estimate by 5.33%. The current consensus EPS estimate is $0.20 on $587.62 million in revenues for the coming quarter and $1.55 on $2.67 billion in revenues for the current fiscal year. Click to get this free report REV Group, Inc. (REVG) : Free Stock Analysis Report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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REV Group (REVG) came out with quarterly earnings of $0.53 per share, beating the Zacks Consensus Estimate of $0.34 per share. REV Group, which belongs to the Zacks Transportation - Services industry, posted revenues of $693.3 million for the quarter ended October 2023, surpassing the Zacks Consensus Estimate by 5.33%. Click to get this free report REV Group, Inc. (REVG) : Free Stock Analysis Report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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REV Group (REVG) came out with quarterly earnings of $0.53 per share, beating the Zacks Consensus Estimate of $0.34 per share. While REV Group has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? Download FREE: How To Profit From Trillions On Spending For Infrastructure >> Want the latest recommendations from Zacks Investment Research?
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74e52db1-4562-4f2a-8d09-86bd16d86baa
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712098.0
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2023-12-13 00:00:00 UTC
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Charles River (CRL) Expands 3D In Vitro Services Via New Deal
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DCOMP
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https://www.nasdaq.com/articles/charles-river-crl-expands-3d-in-vitro-services-via-new-deal
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nan
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nan
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Charles River Laboratories International, Inc. CRL entered into an agreement with German biotech company, CELLphenomics. Through the partnership, Charles River clients will have access to CELLphenomics’ proprietary 3D tumor model platform, PD3D, expanding Charles River’s 3D in vitro testing services to further optimize oncological approaches for its clients.
The recent development will fortify the company’s Discovery and Safety Assessment (DSA) segment.
About CELLphenomics
CELLphenomics offers the world’s largest collection of complex in vitro models of rare and ultra-rare tumors like sarcomas or thymomas. The service-based biotechnology company has a continuously growing biobank, comprising more than 500 complex in vitro models from more than 20 tumor entities.
Image Source: Zacks Investment Research
CELLphenomics has developed a custom mid-throughput screening platform that blends complex cell culture models with advanced automation and a streamlined analysis pipeline. The proprietary, precision medicine PD3D platform offers mid-throughput efficacy testing, drug combination screening, toxicity profiling, target validation, drug sensitivity correlation with clinical response and biomarker identification.
News in Detail
Leveraging CELLphenomics technology, Charles River will now have a novel in vitro option for identifying therapeutics for rare and ultra-rare disease types.
The agreement will also give CELLphenomics access to Charles River’s genomically annotated and in vivo characterized cancer model database to develop PD3D models. The database is comprised of more than 700 tumor models, including patient-derived xenografts (PDX), cell lines and cell line-derived xenografts. These models have been extensively profiled for histological features, molecular data and sensitivity to standard-of-care compounds, allowing a precise selection of suitable tumor models for preclinical anti-cancer agent testing.
The biological advantages of PDX include the retention of histological and genetic characteristics of the donor tumor and the preservation of cell-autonomous heterogeneity. The merge of both biobanks will significantly increase the translational relevance of the in vitro and in vivo platforms offered by Charles River CELLphenomics.
More in the News
Charles River is excited about the integration of CELLphenomics’ tumor model platform into the existing portfolio of products and services of the Discovery Services business. The company offers a range of cancer cell-based assays, including PDX assays and assays representing the entire tumor microenvironment. Hence, therapies are not only tested for their effect on real patient materials but also for their interaction with the human immune system.
Industry Prospects
Per a Research report, the global 3D cell culture market was valued at $1.42 billion in 2022 and is expected to witness a CAGR of 14.1% by 2032.
Recent Development in the DSA Segment
Last month, CRL and Aitia, a leader in the application of Causal AI and Digital Twins, announced a strategic partnership, which includes the co-development of PDX Digital Twins for in vivo oncology research. Through the partnership, Aitia will have access to Charles River’s Artificial Intelligence (AI) powered drug solution platform, Logica, for the optimized discovery and early development of multiple therapeutic programs for neurodegenerative disease and oncology.
In September 2023, Charles River and Related Sciences announced a multi-program collaboration agreement to apply Logica across several previously undrugged targets in Retated Sciences’ portfolio, including cancer immunotherapy, autoimmunity and inflammatory diseases.
Price Performance
Over the past six months, Charles River shares have gained 1.6% against the industry’s decline of 2.7%.
Zacks Rank and Key Picks
Charles River currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space are Haemonetics HAE, Insulet PODD and DexCom DXCM. Haemonetics and DexCom each presently carry a Zacks Rank #2 (Buy), and Insulet sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Haemonetics’ stock has gained 6.3% in the past year. Earnings estimates for Haemonetics have increased from $3.86 to $3.89 in 2023 and $4.11 to $4.15 in 2024 in the past 30 days.
HAE’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 16.1%. In the last reported quarter, it posted an earnings surprise of 5.3%.
Estimates for Insulet’s 2023 earnings per share have remained unchanged at $1.91 in the past 30 days. Shares of the company have dropped 36.7% in the past year compared with the industry’s decline of 8.1%.
PODD’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 105.1%. In the last reported quarter, it delivered an average earnings surprise of 77.4%.
Estimates for DexCom’s 2023 earnings per share have increased from $1.41 to $1.43 in the past 30 days and to $1.44 in the past seven days. Shares of the company have fallen 2.0% in the past year compared with the industry’s decline of 7.7%.
DXCM’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 36.4%. In the last reported quarter, it delivered an average earnings surprise of 47.1%.
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
Haemonetics Corporation (HAE) : Free Stock Analysis Report
DexCom, Inc. (DXCM) : Free Stock Analysis Report
Charles River Laboratories International, Inc. (CRL) : Free Stock Analysis Report
Insulet Corporation (PODD) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Image Source: Zacks Investment Research CELLphenomics has developed a custom mid-throughput screening platform that blends complex cell culture models with advanced automation and a streamlined analysis pipeline. News in Detail Leveraging CELLphenomics technology, Charles River will now have a novel in vitro option for identifying therapeutics for rare and ultra-rare disease types. Through the partnership, Aitia will have access to Charles River’s Artificial Intelligence (AI) powered drug solution platform, Logica, for the optimized discovery and early development of multiple therapeutic programs for neurodegenerative disease and oncology.
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Through the partnership, Charles River clients will have access to CELLphenomics’ proprietary 3D tumor model platform, PD3D, expanding Charles River’s 3D in vitro testing services to further optimize oncological approaches for its clients. Image Source: Zacks Investment Research CELLphenomics has developed a custom mid-throughput screening platform that blends complex cell culture models with advanced automation and a streamlined analysis pipeline. Click to get this free report Haemonetics Corporation (HAE) : Free Stock Analysis Report DexCom, Inc. (DXCM) : Free Stock Analysis Report Charles River Laboratories International, Inc. (CRL) : Free Stock Analysis Report Insulet Corporation (PODD) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Through the partnership, Charles River clients will have access to CELLphenomics’ proprietary 3D tumor model platform, PD3D, expanding Charles River’s 3D in vitro testing services to further optimize oncological approaches for its clients. The agreement will also give CELLphenomics access to Charles River’s genomically annotated and in vivo characterized cancer model database to develop PD3D models. Click to get this free report Haemonetics Corporation (HAE) : Free Stock Analysis Report DexCom, Inc. (DXCM) : Free Stock Analysis Report Charles River Laboratories International, Inc. (CRL) : Free Stock Analysis Report Insulet Corporation (PODD) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The agreement will also give CELLphenomics access to Charles River’s genomically annotated and in vivo characterized cancer model database to develop PD3D models. Haemonetics’ stock has gained 6.3% in the past year. Download FREE: How To Profit From Trillions On Spending For Infrastructure >> Want the latest recommendations from Zacks Investment Research?
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88d2c419-fc9f-4e8c-85db-b8718f32c4b9
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712099.0
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2023-12-13 00:00:00 UTC
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Is the Options Market Predicting a Spike in Perion Network (PERI) Stock?
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DCOMP
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https://www.nasdaq.com/articles/is-the-options-market-predicting-a-spike-in-perion-network-peri-stock
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nan
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nan
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Investors in Perion Network Ltd. PERI need to pay close attention to the stock based on moves in the options market lately. That is because the Jan 19, 2024 $12.50 Call had some of the highest implied volatility of all equity options today.
What is Implied Volatility?
Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
What do the Analysts Think?
Clearly, options traders are pricing in a big move for Perion Network shares, but what is the fundamental picture for the company? Currently, Perion Network is a Zacks Rank #3 (Hold) in the Internet - Content industry that ranks in the Bottom 44% of our Zacks Industry Rank. Over the last 60 days, two analysts have increased their earnings estimates for the current quarter, while none have revised their estimates downward. The net effect has taken our Zacks Consensus Estimate for the current quarter from 95 cents per share to 97 cents in that period.
Given the way analysts feel about Perion Network right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.
Looking to Trade Options?
Check out the simple yet high-powered approach that Zacks Executive VP Kevin Matras has used to close recent double and triple-digit winners. In addition to impressive profit potential, these trades can actually reduce your risk.
Click to see the trades now >>
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
Perion Network Ltd (PERI) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. Check out the simple yet high-powered approach that Zacks Executive VP Kevin Matras has used to close recent double and triple-digit winners. 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.
|
Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. Click to get this free report Perion Network Ltd (PERI) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. Given the way analysts feel about Perion Network right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium.
|
Given the way analysts feel about Perion Network right now, this huge implied volatility could mean there’s a trade developing. Looking to Trade Options? Download FREE: How To Profit From Trillions On Spending For Infrastructure >> Want the latest recommendations from Zacks Investment Research?
|
8fc82987-a7c3-4885-9824-70742a381cc1
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